OLD SECOND BANCORP INC, 10-K filed on 3/6/2025
Annual Report
v3.25.0.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Mar. 05, 2025
Jun. 30, 2024
Document and Entity Information      
Document Type 10-K    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2024    
Entity File Number 000-10537    
Entity Registrant Name OLD SECOND BANCORP INC    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 36-3143493    
Entity Address, Address Line One 37 South River Street    
Entity Address, City or Town Aurora    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60507    
City Area Code (630)    
Local Phone Number 892-0202    
Title of 12(b) Security Common Stock    
Trading Symbol OSBC    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 636.0
Entity Common Stock, Shares Outstanding   45,047,151  
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000357173    
Amendment Flag false    
Auditor Name Plante & Moran PLLC    
Auditor Firm ID 166    
Auditor Location Chicago, Illinois    
Documents Incorporated by Reference

Certain information required by Part III of this Annual Report on Form 10-K is incorporated by reference from the registrant's definitive proxy statement relating to the 2025 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates.

    
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets    
Cash and due from banks $ 52,175 $ 55,534
Interest earning deposits with financial institutions 47,154 44,611
Cash and cash equivalents 99,329 100,145
Securities available-for-sale, at fair value 1,161,701 1,192,829
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock 19,441 33,355
Loans held-for-sale 1,556 1,322
Loans 3,981,336 4,042,953
Less: allowance for credit losses on loans 43,619 44,264
Net loans 3,937,717 3,998,689
Premises and equipment, net 87,311 79,310
Other real estate owned 21,617 5,123
Mortgage servicing rights, at fair value 10,374 10,344
Goodwill 93,260 86,478
Core deposit intangible 22,031 11,217
Bank-owned life insurance ("BOLI") 112,751 109,318
Deferred tax assets, net 26,619 31,077
Other assets 55,670 63,592
Total assets 5,649,377 5,722,799
Deposits:    
Noninterest bearing demand 1,704,920 1,834,891
Interest bearing:    
Savings, NOW, and money market 2,315,134 2,207,949
Time 748,677 527,906
Total deposits 4,768,731 4,570,746
Securities sold under repurchase agreements 36,657 26,470
Other short-term borrowings 20,000 405,000
Junior subordinated debentures 25,773 25,773
Subordinated debentures 59,467 59,382
Other liabilities 67,715 58,147
Total liabilities 4,978,343 5,145,518
Stockholders' Equity    
Common stock 44,908 44,705
Additional paid-in capital 205,284 202,223
Retained earnings 469,165 393,311
Accumulated other comprehensive loss (47,748) (62,781)
Treasury stock (575) (177)
Total stockholders' equity 671,034 577,281
Total liabilities and stockholders' equity $ 5,649,377 $ 5,722,799
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Consolidated Balance Sheets    
Common stock, Par value (in dollars per share) $ 1.00 $ 1.00
Common stock, Shares authorized 60,000,000 60,000,000
Common stock, Shares issued 44,907,619 44,705,150
Common stock, Shares outstanding 44,873,467 44,697,917
Treasury stock, Shares 34,152 7,233
v3.25.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest and dividend income      
Loans, including fees $ 253,319 $ 244,187 $ 176,379
Loans held-for-sale 94 91 130
Securities:      
Taxable 34,656 37,940 31,566
Tax exempt 5,164 5,329 5,287
Dividends from FHLBC and FRBC stock 2,278 1,920 936
Interest bearing deposits with financial institutions 2,393 2,503 2,175
Total interest and dividend income 297,904 291,970 216,473
Interest expense      
Savings, NOW, and money market deposits 17,866 8,761 1,900
Time deposits 20,147 6,636 1,448
Securities sold under repurchase agreements 337 93 40
Other short-term borrowings 14,607 18,774 480
Junior subordinated debentures 1,127 1,095 1,136
Subordinated debentures 2,185 2,185 2,185
Senior notes   2,408 2,682
Notes payable and other borrowings   87 446
Total interest expense 56,269 40,039 10,317
Net interest and dividend income 241,635 251,931 206,156
Provision for credit losses 12,750 16,501 6,550
Net interest and dividend income after provision for credit losses 228,885 235,430 199,606
Noninterest income      
Mortgage servicing rights mark to market (loss) gain (723) (1,425) 3,177
Net gain on sales of mortgage loans 1,805 1,477 2,022
Securities losses, net   (4,148) (944)
Change in cash surrender value of BOLI 3,619 2,120 718
Death benefit realized on BOLI 905    
Card related income 10,114 10,051 10,989
Other income 4,218 4,196 5,243
Total noninterest income 43,819 34,179 43,116
Noninterest expense      
Salaries and employee benefits 98,025 88,566 86,573
Occupancy, furniture and equipment 16,159 14,437 14,992
Computer and data processing 9,473 7,277 15,795
FDIC insurance 2,543 2,705 2,401
Net teller & bill paying 2,244 2,115 3,730
General bank insurance 1,268 1,212 1,221
Amortization of core deposit intangible 2,440 2,461 2,626
Advertising expense 1,243 721 589
Card related expense 5,555 5,123 4,348
Legal fees 1,326 927 873
Consulting & management fees 2,496 2,415 2,425
Other real estate expense, net 2,220 399 130
Other expense 14,756 16,843 15,470
Total noninterest expense 159,748 145,201 151,173
Income before income taxes 112,956 124,408 91,549
Provision for income taxes 27,692 32,679 24,144
Net income $ 85,264 $ 91,729 $ 67,405
Basic earnings per share $ 1.90 $ 2.05 $ 1.51
Diluted earnings per share 1.87 2.02 1.49
Dividends declared per share $ 0.21 $ 0.20 $ 0.20
Wealth management      
Noninterest income      
Service charges on deposits $ 11,426 $ 9,803 $ 9,887
Service charges on deposits      
Noninterest income      
Service charges on deposits 10,226 9,817 9,562
Secondary mortgage fees      
Noninterest income      
Service charges on deposits 287 259 332
Mortgage servicing income      
Noninterest income      
Service charges on deposits $ 1,942 $ 2,029 $ 2,130
v3.25.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Consolidated Statements of Comprehensive Income (Loss)      
Net Income (Loss) $ 85,264 $ 91,729 $ 67,405
Unrealized holding gains (losses) on available-for-sale securities arising during the period 15,525 35,160 (139,876)
Related tax (expense) benefit (4,347) (9,889) 39,166
Holding gains (losses), after tax, on available-for-sale securities 11,178 25,271 (100,710)
Less: Reclassification adjustment for the net gains (losses) realized during the period      
Net realized losses   (4,148) (944)
Related tax benefit   1,117 265
Net realized losses, after tax   (3,031) (679)
Other comprehensive income (loss) on available-for-sale securities 11,178 28,302 (100,031)
Changes in fair value of derivatives used for cash flow hedges 5,333 2,851 (2,579)
Related tax (expense) benefit (1,478) (810) 718
Other comprehensive income on cash flow hedges 3,855 2,041 (1,861)
Total other comprehensive income (loss) 15,033 30,343 (101,892)
Total comprehensive income $ 100,297 $ 122,072 $ (34,487)
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income $ 85,264,000 $ 91,729,000 $ 67,405,000
Adjustments to reconcile net income to net cash provided by operating activities:      
Net premium / discount amortization on securities 2,651,000 3,317,000 5,217,000
Securities losses, net   4,148,000 944,000
Provision for credit losses 12,750,000 16,501,000 6,550,000
Originations of loans held-for-sale (58,011,000) (52,091,000) (76,607,000)
Proceeds from sales of loans held-for-sale 58,818,000 52,186,000 81,776,000
Net gains on sales of mortgage loans (1,805,000) (1,477,000) (2,022,000)
Mortgage servicing rights mark to market loss 723,000 1,425,000 (3,177,000)
Net accretion of discount on loans and unfunded commitments (422,000) (3,067,000) (6,339,000)
Net change in cash surrender value of BOLI (3,619,000) (2,120,000) (718,000)
Net gains on sale of other real estate owned (390,000) (256,000) (163,000)
Provision for other real estate owned valuation losses 1,744,000 269,000 104,000
Depreciation of fixed assets and amortization of leasehold improvements 5,591,000 4,485,000 4,085,000
Amortization of operating lease right-of-use asset 1,129,000 758,000 174,000
Net gains on disposal and transfer of fixed assets (31,311) (623,000) (2,017,000)
Loss on lease termination 46,500    
Amortization of core deposit intangibles 2,440,000 2,461,000 2,626,000
Change in current income taxes receivable 5,991,000 (4,872,000) 12,048,000
Deferred tax expense (benefit) (1,367,000) 1,857,000 969,000
Change in accrued interest receivable and other assets 4,135,000 (6,639,000) (1,114,000)
Accretion of purchase accounting adjustment on time deposits (235,000) (1,226,000) (1,582,000)
Change in accrued interest payable and other liabilities 13,486,000 6,511,000 6,416,000
Payments on operating lease payable (1,270,000) (478,000) (191,000)
Stock based compensation 3,914,000 3,603,000 2,960,000
Net cash provided by operating activities 131,533,000 116,401,000 97,344,000
Cash flows from investing activities      
Proceeds from maturities and calls, including pay down of securities available-for-sale 304,167,000 186,049,000 279,848,000
Proceeds from sales of securities available-for-sale 5,331,000 205,738,000 30,981,000
Purchases of securities available-for-sale (265,496,000) (13,414,000) (301,649,000)
Net redemptions (purchases) of FHLBC/FRBC stock 13,914,000 (12,825,000) (7,273,000)
Net change in loans 34,710,000 (197,574,000) (443,904,000)
Purchases of BOLI policies (1,050,000) (590,000) (590,000)
Proceeds from claims on BOLI, net of claims receivable 1,236,000    
Proceeds from sales of other real estate owned, net of participations and improvements 3,235,000 2,005,000 941,000
Proceeds from disposition of premises and equipment   4,542,000 13,346,000
Net purchases of premises and equipment (10,787,000) (12,376,000) (4,332,000)
Cash received from (paid for) acquisition, net 237,441,000   (146,000)
Net cash provided by (used in) investing activities 322,701,000 161,555,000 (432,778,000)
Cash flows from financing activities      
Net change in deposits (69,776,000) (538,751,000) (353,927,000)
Net change in securities sold under repurchase agreements 10,187,000 (5,686,000) (18,181,000)
Net change in other short-term borrowings (385,000,000) 315,000,000 90,000,000
Repayment of term note   (9,000,000) (4,000,000)
Net change in notes payable and other borrowings, excluding term note     (6,056,000)
Repayment of senior notes   (45,000,000)  
Dividends paid on common stock (9,413,000) (8,946,000) (8,877,000)
Purchase of treasury stock (1,048,000) (605,000) (455,000)
Net cash used in financing activities (455,050,000) (292,988,000) (301,496,000)
Net change in cash and cash equivalents (816,000) (15,032,000) (636,930,000)
Cash and cash equivalents at beginning of period 100,145,000 115,177,000 752,107,000
Cash and cash equivalents at end of period 99,329,000 100,145,000 115,177,000
Supplemental cash flow information      
Income taxes paid, net 23,034,000 35,670,000 11,232,000
Interest paid for deposits 36,915,000 14,210,000 3,418,000
Interest paid for borrowings 18,360,000 24,238,000 6,777,000
Non-cash transfer of loans to other real estate owned 21,083,000 5,580,000 87,000
Non-cash transfer of fixed assets to other assets 1,129,000 582,000 $ 4,568,000
Operating leases recognized $ 1,250,000 $ 6,745,000  
v3.25.0.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive (Loss) Income
Treasury Stock
Total
Balance at Dec. 31, 2021 $ 44,705 $ 202,443 $ 252,011 $ 8,768 $ (5,900) $ 502,027
Increase (Decrease) in Stockholders' Equity            
Net income     67,405     67,405
Other comprehensive income (loss), net of tax       (101,892)   (101,892)
Dividends declared on common stock     (8,904)     (8,904)
Vesting of restricted stock   (3,127)     3,127  
Stock based compensation   2,960       2,960
Purchase of treasury stock from taxes withheld on stock awards         (455) (455)
Balance at Dec. 31, 2022 44,705 202,276 310,512 (93,124) (3,228) 461,141
Increase (Decrease) in Stockholders' Equity            
Net income     91,729     91,729
Other comprehensive income (loss), net of tax       30,343   30,343
Dividends declared on common stock     (8,930)     (8,930)
Vesting of restricted stock   (3,656)     3,656  
Stock based compensation   3,603       3,603
Purchase of treasury stock from taxes withheld on stock awards         (605) (605)
Balance at Dec. 31, 2023 44,705 202,223 393,311 (62,781) (177) 577,281
Increase (Decrease) in Stockholders' Equity            
Net income     85,264     85,264
Other comprehensive income (loss), net of tax       15,033   15,033
Dividends declared on common stock     (9,410)     (9,410)
Vesting of restricted stock 203 (853)     650  
Stock based compensation   3,914       3,914
Purchase of treasury stock from taxes withheld on stock awards         (1,048) (1,048)
Balance at Dec. 31, 2024 $ 44,908 $ 205,284 $ 469,165 $ (47,748) $ (575) $ 671,034
v3.25.0.1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance $ 577,281 $ 461,141 $ 502,027
Other comprehensive income (loss), net of tax 15,033 30,343 (101,892)
Balance $ 671,034 $ 577,281 $ 461,141
Dividend declared and paid (per share) $ 0.21 $ 0.20 $ 0.20
Total Accumulated Other Comprehensive Income/(Loss)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance $ (62,781) $ (93,124) $ 8,768
Other comprehensive income (loss), net of tax 15,033 30,343 (101,892)
Balance (47,748) (62,781) (93,124)
Accumulated Unrealized Gain (Loss) on Securities Available-for-Sale      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance (60,590) (88,892) 11,139
Other comprehensive income (loss), net of tax 11,178 28,302 (100,031)
Balance (49,412) (60,590) (88,892)
Accumulated Unrealized Gain (Loss) on Derivative Instruments      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance (2,191) (4,232) (2,371)
Other comprehensive income (loss), net of tax 3,855 2,041 (1,861)
Balance $ 1,664 $ (2,191) $ (4,232)
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Summary of Significant Accounting Policies  
Summary of Significant Accounting Policies

Note 1: Summary of Significant Accounting Policies

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Nature of Operations - Old Second Bancorp, Inc. (the “Company”) is a corporation organized under the laws of the State of Delaware in 1981 that serves as the bank holding company for its wholly-owned subsidiary bank, Old Second National Bank.  Old Second National Bank (the “Bank”) is a national banking association headquartered in Aurora, Illinois, that operates through 53 banking centers located in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois.  The Bank is a full-service banking business, offering a broad range of deposit products, trust and wealth management services, and lending services, including commercial, residential and consumer loans. We also offer a full complement of electronic banking services, such as online and mobile banking and corporate cash management products.

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The consolidated financial statements of the Company include the financial statements of the Bank and its wholly-owned subsidiaries, River Street Advisors, LLC, an investment advisory/management service company, Old Second Affordable Housing Fund, L.L.C., which provides down payment assistance for home ownership to qualified individuals, and Station I, LLC, Station II, LLC, and Station III, LLC, which hold property acquired by the Bank through foreclosure or in the ordinary course of collecting a debt previously contracted with borrowers.  The Company uses the accrual basis of accounting for financial reporting purposes.  Certain amounts in prior year financial statements have been reclassified to conform to the 2024 presentation.

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Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.  Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates.

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Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions.  Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements.

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Segment Reporting –The Company has one operating segment, which is community banking.  While our management monitors the revenue streams of our various products and services, the Company’s operations are managed and financial performance is evaluated on a company-wide basis.  Accordingly, all of the Company’s operations are considered to be aggregated in one reportable segment.

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Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois.  These banking centers surround or are within the Chicago metropolitan area.  Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within this market.  There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector.

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Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-earning deposits in other financial institutions, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell.  The classification of cash and cash equivalents includes those assets held in the form of cash or liquid instruments with an original maturity of 90 days or less.

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Securities – All of the Company’s securities are classified as available-for-sale, and are carried at fair value, with unrealized gains or losses, net of tax, recorded in stockholders’ equity as a separate component of accumulated other comprehensive (loss) income.

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Realized securities gains or losses, which are reported in securities losses, net, in the Consolidated Statements of Income, are recognized on a trade date basis and are determined using the specific identification method.  Discounts are accreted into interest income over the estimated life of the related security and premiums are amortized into income to the earlier of the call date or estimated life of the related security using the level yield method.

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The Company has made a policy election to exclude accrued interest income from the amortized cost basis of available-for-sale debt securities and report accrued interest separately in other assets in the Consolidated Balance Sheets. A debt security is placed on nonaccrual status at the time we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest for a security placed on nonaccrual is reversed against interest income. Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable.

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For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security, prior to the recovery of its amortized cost basis. If either of the above criteria is met, the security’s amortized cost basis is written down to fair value through earnings. When the criteria above is not met, we evaluate whether the decline in fair value is the result of credit losses or other factors. In making this assessment, we review changes to the rating of the security by a rating agency, an increase in defaults on the underlying collateral, and the extent to which the securities are issued by the federal government or its agencies, including the amount of the guarantee issued by those agencies, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded through earnings, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive (loss) income, net of taxes.  

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Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

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Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“FRBC”).  Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership.  The FHLBC is a governmental sponsored entity.  The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment.  FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts.  FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.  The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC.  The Company records dividends in income on the ex-dividend date.  FRBC stock is redeemable at par, and therefore fair value equals cost.

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Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market.  Residential mortgage loans eligible for sale in the secondary market are carried at fair market value.  The fair value of loans held-for-sale is determined using quoted secondary market prices on similar loans.

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Mortgage loans held for sale are generally sold with servicing rights retained.  The carrying value of mortgage loans is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related sold loan.

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Loans – Loans held-for-investment are carried at the principal amount outstanding, net of premiums and discounts associated with acquisition date fair value adjustments on acquired loans, deferred loan fees and costs, and any direct principal charge-offs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets in the Consolidated Balance Sheets.

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Interest income on loans is accrued based on principal amounts outstanding.  Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred and amortized over the life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment.  Other related fees are recognized as fee income when earned.

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Past Due and Nonaccrual Loans

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Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Generally, loans are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed.  Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash basis method, interest income is recorded when the payment is received in cash. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due.

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Purchase Credit Deteriorated (PCD) Loans

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Purchased credit deteriorated loans (“PCD loans”) are purchased loans, that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on an individual loan basis from an evaluation of each specific loan and its related credit metrics. The sum of the loan’s purchase price and initial allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into interest income over the life of the loan.  Expected cash flows in excess of the amount paid are recorded as interest income over the remaining life of the loans (accretable yield).  The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

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Subsequent changes to the allowance for credit losses are recorded through provision for credit losses. Over the life of the loan, expected cash flows continue to be estimated.  If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for credit losses.  If the present value of expected cash flows is greater than the carrying value, it is recognized as part of future interest income.

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Non-Purchase Credit Deteriorated (Non-PCD) Loans

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Non-purchased credit deteriorated loans (“non-PCD loans”) are purchased loans, that, as of the date of acquisition, have not experienced a significant deterioration in credit quality since origination, as determined by the Company’s assessment. An allowance for credit losses is determined using the same methodology as other loans held for investment, and no allowance is established as a Day One fair valuation allowance. The sum of the loan’s purchase price net of any related credit and interest rate premium or discount becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a discount or premium, which is comprised of an interest component and a credit component, and is accreted or amortized into interest income over the life of the loan.  Expected cash flows in excess of the amount paid are recorded as interest income over the remaining life of the loans (accretable yield).  The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

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A subsequent Day Two adjustment on non-PCD loans is recorded to the allowance for credit losses immediately after acquisition, which reflects the future estimated lifetime credit losses on the non-PCD loans, recorded through the provision for credit losses. Over the life of the loan, expected cash flows continue to be estimated.  If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for credit losses.  If the present value of expected cash flows is greater than the carrying value, it is recognized as part of future interest income.

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Allowance for Credit Losses (“ACL”)

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ACL on Loans

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The ACL on loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans.  The Company’s estimate of the ACL for loans reflects losses expected over the remaining contractual life of the loans. The contractual term does not consider extensions, renewals or modifications.

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Determination of the ACL on loans is inherently subjective in nature since it requires significant estimates and management judgment, and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses.  While management utilizes its best judgment and information available, the ultimate adequacy of the ACL is dependent upon a variety of factors beyond the Company’s direct control, including, but not limited to, the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience for prior periods that are determined to have like characteristics with the current period such as pre-recessionary, recessionary, or recovery periods, portfolio growth and concentration risk, management and staffing changes, the interpretation of loan risk classifications by regulatory authorities and other credit market factors.  While each component of the ACL on loans is determined separately, the entire balance is available for the entire loan portfolio.

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The ACL methodology consists of measuring loans on a collective (pool) basis when similar risk characteristics exist.  The type of credit composition and risk characteristics of each portfolio segment are as follows:

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Commercial loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other commercial and industrial business loans.  Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners.  Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower.  The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors.  Minimum standards and underwriting guidelines have been established for all commercial loan types.  The Company classifies five different risk levels for this segment to assign a loss rate based on historical losses, and may utilize qualitative overlays to align historical loss experience with expectations during the forecast period.  

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Lease financing receivables – Lease financing receivables are subject to underwriting standards and processes similar to commercial loans.  These loans are often secured by equipment or transportation assets, and are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower.  The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors.   The Company’s historical loss rates are utilized from the prior periods which align to the current unemployment projections for the next twelve months.  

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Real estate - commercial loans – Real estate - commercial loans are subject to underwriting standards and processes similar to commercial and industrial loans.  These are loans secured by mortgages on real estate collateral.  Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property.  Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market, such as geographic location and/or property type.  The real estate – commercial segments utilized for the ACL on loans are:

●CRE owner occupied – the Company classifies five different risk levels within this segment to assign a loss rate based on historical losses, as well as utilizing a forecasted average unemployment rate and Gross Domestic Product (“GDP”) for the next twelve months as a loss driver.
●CRE investor – the Company classifies five different risk levels within this segment to assign a loss rate based on historical losses, as well as utilizing a forecasted average unemployment rate and GDP for the next twelve months as a loss driver.  The primary difference between this segment and CRE owner occupied is within the slightly elevated historical loss rates.

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Real estate - construction loans – The Company defines real estate - construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement or development of real estate in which the Company holds a mortgage.  Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely.  The Company’s historical loss rates are utilized from the prior periods which align to the current unemployment projections for the next twelve months.  

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Real estate - residential loans – These are loans that are extended to purchase or refinance family residential dwellings.  Residential real estate loans are considered homogenous in nature.  Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower. The real estate – residential segments utilized for the ACL on loans are:

●Residential owner-occupied – these loans are secured by 1-4 family residential dwellings that are primary or secondary residences and the Company holds a first lien position. The Company applies historical loss rates from periods with like characteristics as the current period, with a longer remaining life than other segments, due to the often longer-term nature of these loans.
●Residential investor – these loans are secured by 1-4 family residential dwellings that are not a primary or secondary residence and the Company holds a first lien position. The Company applies historical loss rates from periods with like characteristics as the current period, with a slightly longer remaining life than other segments, but shorter duration than residential owner-occupied.
●Multifamily – these loans are secured by 5+ unit residential dwellings and the Company typically holds a first lien position. The Company classifies five different risk levels within this segment to assign a loss rate based on historical losses, as well as utilizing a forecasted average unemployment rate and GDP for the next twelve months as a loss driver.

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Home equity lines of credit (“HELOCs”)  – These are lines of credit that are extended to refinance 1-4 family residential dwellings, or to finance the borrower’s needs and collateralized by the borrower’s residence.  These lines may be fixed or variable in nature, and the home serving as collateral may also have a first lien outstanding. The Company’s historical loss rates are utilized from the prior periods which align to the current unemployment projections for the next twelve months.

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Consumer loans – Consumer loans include loans extended primarily for consumer and household purposes.  These also include overdrafts and other items not captured by the definitions above.  The primary loss driver for this segment is the unemployment rate forecast for the next twelve months.

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The methodologies used for calculating the ACL on each loan segment include (i) a migration analysis for commercial, CRE owner occupied, CRE investor, and multifamily segments; (ii) a static pool analysis for construction, leases, residential investor, residential owner occupied and the HELOC segments; and (iii) a WARM (weighted average remaining maturity) methodology is used for consumer segments.  The forecast period used for each segment calculation was one year, with an immediate reversion to historical loss rates following this one year period. In addition, the Company applies qualitative adjustments to each different loan, as described below.

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The qualitative factors applied to each loan portfolio consist of the impact of other internal and external qualitative and credit market factors as assessed by management through a detailed loan review, ACL analysis and credit discussions.  These internal and external qualitative and credit market factors include:

●changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices;
●changes in international, national, regional, and local conditions (specific factors which impact portfolios or discrepancies with national economic factors which are utilized within the economic forecast);
●changes in the experience, depth and ability of lending management;
●changes in the volume and severity of past due loans and other similar loan conditions;
●changes in the nature and volume of the loan portfolio and terms of loans;
●the existence and effect of any concentrations of credit and changes in the levels of such concentrations (this characteristic requires any portfolio exceeding 25% of capital to have a factor considered unless the pool is otherwise well diversified or holds a relatively low inherent risk);
●effects of other external factors, such as competition, legal or regulatory factors, on the level of estimated credit losses;
●changes in the quality of our loan review functions; and
●changes in the value of underlying collateral for collateral dependent loans.

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The impact of the above listed internal and external qualitative and credit market risk factors is assessed within predetermined ranges to adjust the ACL totals calculated.  Changes in the above factors are assessed no less than quarterly, and directly impact the total estimated credit losses recorded.  

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Loans that do not share risk characteristics are evaluated on an individual basis. Such loans evaluated individually are not also included in the collective evaluation. The amount of expected credit loss is measured based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. When management determines that foreclosure is probable, the amount of credit loss is determined using the fair value of collateral, less costs to sell.

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Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed, while recoveries of amounts previously charged-off are credited to the ACL.  Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off.  Approved releases from previously established ACL reserves authorized under our ACL methodology also reduce the ACL.  Additions to the ACL are established through the provision for credit losses on loans, which is charged to expense.

 

The Company’s ACL methodology is intended to reflect all loan portfolio risk, but management recognizes the inability to accurately depict all future credit losses in a current ACL estimate, as the impact of various factors cannot be fully known.  Accrued interest receivable on loans is excluded from the amortized cost basis of financing receivables for the purpose of determining the allowance for credit losses.  

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ACL on Unfunded Loan Commitments

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The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.  The ACL related to off-balance sheet credit exposures, which is within other liabilities on the Company’s Consolidated Balance Sheets, is estimated at each balance sheet date under the CECL model, and is adjusted as determined necessary through the provision for credit losses on the income statement.  The estimate for ACL on unfunded loan commitments includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.  

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Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization.  Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets.  Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals.  Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years or longer under limited circumstances; and furniture and equipment, 3 to 10 years.  Fixed Assets Held for Sale totaling $1.4 million are reported within other assets in the Consolidated Balance Sheets. Gains and losses on dispositions are included in other noninterest expense in the Consolidated Statements of Income.  Maintenance and repairs are charged to operating expenses as incurred, while improvements that conform to definitions of tangible property improvements are capitalized and depreciated over the estimated remaining life.

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Whenever events or changes in circumstances dictate, the Company tests its long-lived assets for impairment by determining whether the sum of the estimated undiscounted future cash flows attributable to a long-lived asset or asset group is less than the carrying value of the long-lived asset or asset group through a probability-weighted approach.  In the event the carrying amount of the long-lived asset or asset group is not recoverable, an impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value.

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All of the Company’s leases are classified as operating leases at inception. The Company leases certain branch locations and equipment; leased equipment is primarily Automated Teller Machines (ATMs).  The Company records leases on the balance sheet in the form of a lease liability at the present value of future minimum payments under the terms of the lease and as a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset if it should arise. The discount rate used in determining the lease liability is based on the incremental borrowing rates the Company could obtain for similar loans as of the date of the commencement or renewal. The Company does not record short-term leases with an initial lease term of one year or less on the Consolidated Balance Sheets.

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At lease inception, the Company determines the lease term by considering the noncancelable lease term and all option renewal periods the Company deems reasonably certain to renew. The lease term is also used to calculate the straight-line basis. Leasehold improvements are amortized over the shorter of the useful life or the estimated lease term.

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Operating lease expense consists of a single lease cost allocated over the remaining lease term on a straight-line basis, and any impairment of the right-of-use asset.  Lease expense is included in occupancy, furniture, and equipment on the Company’s Consolidated Statements of Income. The Company’s variable lease expense includes items such as common area maintenance, utilities, parking, and property taxes, which are reported within occupancy, furniture, and equipment on the Consolidated Statements of Income.

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Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at the fair value of the property when acquired, less estimated costs to sell, establishing a new cost basis.  Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement.  Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the ACL.  Any reduction in OREO carrying value within 90 days of transfer to OREO would be charged to the ACL.  If the fair value of the property when acquired, less estimated costs to sell, is greater than the net book value of the loan, a gain on transfer is recorded. If a determination is made more than 90 days after the transfer to OREO that the fair value for the OREO property has declined, an OREO valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell.  Such declines are included in other noninterest expense in the Consolidated Statements of Income.  A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer of the loan to OREO.  Operating costs after acquisition are also expensed.

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Mortgage Servicing Rights (“MSRs”) – The Bank is also involved in the business of servicing mortgage loans.  Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors.  MSRs represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities.

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Mortgage loans that the Company is servicing for others aggregated to $709.1 million and $737.2 million at December 31, 2024, and 2023, respectively.  Mortgage loans that the Company is servicing for others are not included in the Consolidated Balance Sheets.  Fees received in connection with servicing loans for others are recognized as earned.  Loan servicing costs are charged to expense as incurred.

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Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained.  Servicing rights are initially recorded at fair value with the effect recorded in net gains on sales of mortgage loans in the Consolidated Statements of Income.  Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income.  The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses.

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Servicing fee income, which is included in the Consolidated Statements of Income as mortgage servicing income, is recorded for fees earned for servicing loans.  The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned.

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Under the fair value measurement method, the Company measures mortgage servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes these changes in MSRs mark to market values in the Consolidated Statements of Income.  The fair values of MSRs are subject to significant fluctuations as a result of interest rates, changes in estimated and actual prepayment speeds and default rates and losses.

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Transfers of Financial Assets – The Company accounts for transfers and servicing of financial assets in accordance with FASB ASC 860, Transfers and Servicing. Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free from conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

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Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan.

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The Company sells financial assets in the normal course of business, the majority of which are related to residential mortgage loan sales through established programs, and commercial loan sales through participation agreements. In accordance with accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses.

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When the Company sells financial assets, it may retain servicing rights and/or other interests in the financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the servicing right recognized, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests held by the Company are carried at the lower of cost or fair value, with the exception of mortgage servicing rights related to sales of residential mortgage loans, which are carried at fair value.

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Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary.  These policies are recorded as an asset on the Consolidated Balance Sheets at their cash surrender value (“CSV”) or the amount that could be realized upon immediate liquidation.  The change in CSV is recorded as an increase in cash surrender value of BOLI in the Consolidated Statements of Income in noninterest income.  In addition, insurance proceeds received, net of the original premium investment, are recorded as death benefit realized on BOLI in the Consolidated Statements of Income in noninterest income.

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Goodwill and Core Deposit Intangible – Goodwill is the excess of an acquisition’s purchase price over the fair value of identified net assets acquired in an acquisition and is evaluated at least annually for impairment.  The Company performs its annual evaluation for goodwill impairment at November 30 each year and may elect to perform a quantitative or qualitative analysis or first conduct a qualitative analysis to determine if a quantitative analysis is necessary. In addition, the Company evaluates goodwill impairment on an interim basis if events or changes in circumstances indicate the asset might be impaired.  The factors reviewed by the Company when completing a qualitative analysis include, but are not limited to, macroeconomic data, industry specific data, current market conditions, and the Company’s overall financial performance.

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The Company performed a qualitative assessment of goodwill as of November 30, 2024 which resulted in the fair value of the Company exceeding the carrying value; therefore, it was determined goodwill was not impaired at December 31, 2024.  On November 30, 2023, the Company performed a qualitative assessment of goodwill from which we concluded it was more likely than not that goodwill was not impaired as of December 31, 2023. A quantitative assessment is performed every third year as a matter of periodic practice rather than as a response to a qualitative assessment or triggering event.

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The core deposit intangible (“CDI”) is being amortized on an accelerated method over a ten year estimated useful life.   As of December 31, 2024, CDI totaled $22.0 million compared to $11.2 million at December 31, 2023.  The total CDI amount reflects the transaction with First Merchants Bank in 2024, the acquisition of West Suburban in 2021 as well as ABC Bank in 2018, and the Talmer Bank branch purchase in 2016.  Total CDI amortization expense of $2.4 million, $2.5 million, and $2.6 million was recorded in 2024, 2023, and 2022, respectively. The expected future annual amortization expense for each of the next five years (2025-2029) is approximately $4.1 million, $3.7 million, $3.3 million, $2.9 million, and $2.6 million, respectively.

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Debt Issuance Costs – Costs associated with the issuance of debt are presented in the Consolidated Balance Sheets as a direct reduction from the carrying value of that debt liability.  The deferred issuance costs are amortized over the life of the related debt instrument, and included within the debt’s interest expense.  

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Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.  Management does not believe there are such matters that will have a material effect on the financial statements.

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Noninterest Income – The Company recognizes revenue when the performance obligations related to the transfer of goods or services are satisfied.  Certain obligations are satisfied at one point in time, while other obligations may be satisfied over a period of time.  Revenues are segregated based on the nature of the product or service offered. Wealth management fees, service charges on deposits and card related income are included as components of noninterest income in the Consolidated Statements of Income.

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Wealth management – includes fees generated from personal, commercial and institutional clients.  The Company also provides asset management services, cash management services and income tax reporting.  Revenue is recognized over the period of time in which these services are performed.

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Service charges on deposits – includes fees and income received by the Company for performing various services, such as deposit account maintenance fees, overdraft coverage and processing fees, stop payment charges, and other deposit account related services. Revenue is recognized based on the service agreement in place, and is recorded when the service is provided to the customer. This item is net of any service charge refunds or return charge refunds.

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Card related income – includes interchange fees earned on debit cards and credit cards, ATM/ITM related fee income, and gift card related income.  Annual fees and interest income on card-related products are recognized within interest income in accordance with ASC 310.  The Company recognizes card related income when the cardholder’s transaction with the merchant or ATM/ITM occurs, thus satisfying the performance obligation.  Card related expenses, such as disbursements to the payment network, reward program costs, and other operational costs are carried within card related expense, as a component of noninterest expense, on the Consolidated Statements of Income.

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Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred.

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Equity Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant.  A binomial model is utilized to estimate the fair value of stock options, which utilizes assumptions for expected volatilities based on the previous five-year historical volatilities of the Company's common stock.  Historical data is used to estimate option exercise rates and post-vesting termination behavior, and the risk-free interest rate for the expected term of the option is based on the Treasury yield curve in effect at the time of grant.  The market price of the Company’s common stock at the date of grant is used for restricted stock awards, which include restricted stock units.  Compensation cost is recognized over the required service period, generally defined as the vesting period, and is net of a 5% forfeiture assumption for group grants.  Upon vesting, compensation costs for the award expense is trued up based on actual forfeitures incurred.  Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the Consolidated Statements of Income.  The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award.  If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as a credit to income tax expense.

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Income Taxes – The Company files income tax returns in the U.S. federal jurisdiction, and in the states of Illinois, Arizona, California, Florida, Indiana, Michigan, New Hampshire, Ohio, Pennsylvania, Tennessee, Texas, and Wisconsin.  The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return.  Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.  Any change in tax rates will be recorded in the period in which the law is enacted.

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Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled.

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As of December 31, 2024 and 2023, the Company evaluated tax positions taken for filings with the Internal Revenue Service and all state jurisdictions in which it operates.  The Company believes that income tax filing positions will be sustained under examination and does not anticipate any adjustments that would result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows.  Accordingly, the Company has not recorded any material reserves or related accruals for interest and penalties for uncertain tax positions at December 31, 2024 and 2023.  The Company is no longer subject to examination by the Internal Revenue Service for tax years prior to 2021.  State statutes vary, but generally, the Company is no longer subject to state tax examinations for tax years ended prior to 2020.

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Earnings Per Common Share (“EPS”) – Basic EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding for the period.  Diluted EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding plus the number of additional common shares that would have been outstanding if the dilutive potential shares had been issued.  The Company’s potential common shares represent shares issuable under its long-term incentive compensation plans.  

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Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Balance Sheets.  Treasury stock issued is valued based on the “last in, first out” inventory method.  The difference between the consideration received upon issuance and the carrying value is charged or credited to additional paid-in capital.

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Mortgage Banking Derivatives – As part of the ongoing residential mortgage business, the Company enters into mortgage banking derivatives such as forward contracts and interest rate lock commitments. The derivatives and loans held-for-sale are carried at fair value with the changes in fair value recorded in current earnings. The net gain or loss on mortgage banking derivatives is included in net gains on sales of loans in the Consolidated Statements of Income.

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Derivative Financial Instruments – The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies.  These derivative financial instruments consist primarily of interest rate swaps. The Company records all derivatives on the balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and whether the Company has elected to designate a derivative as a hedging relationship and apply hedge accounting.  A further consideration involves a determination on whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting.  Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges.  Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge.  The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

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If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued, and the adjustment to fair value of the derivative instrument is recorded in earnings.  For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative is deferred and reported as a component of accumulated other comprehensive income, which is a component of stockholders’ equity, until such time the hedged transaction affects earnings.  For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense.  Counterparty risk with loan customers is managed through loan covenant agreements and, as such, does not have a significant impact on the fair value of the swaps.  Counterparty risk with other banks is managed through bilateral collateralization agreements.  Deferred gains and losses from derivatives not accounted for as hedges and that are terminated are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability.

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Comprehensive Income – Comprehensive income is the total of reported earnings for all other revenues, expenses, gains, and losses that are not reported in earnings under GAAP.  The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income (Loss): (i) changes in unrealized gains or losses on securities available-for-sale, and (ii) the effective portion of a derivative used to hedge cash flows.

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Recent Accounting Pronouncements – The following is a summary of recent accounting pronouncements that have impacted or could potentially affect the Company:  

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ASU 2023-06 – On October 9, 2023, the FASB issued ASU 2023-06 “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. The amendments in the ASU modify the disclosure or presentation requirements of a variety of topics in the codification. Certain of the amendments represent clarifications to, or technical corrections of, the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The amendments in this ASU are not expected to have a material impact on the financial statements of the Company.

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ASU 2023-09 – On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The 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 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The amendments 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 (national), 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 5 percent of total income taxes paid (net of refunds received). The amendments also require that all entities disclose the following information: (1) Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and (2) Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU 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. Retrospective application is permitted. The Company will adopt this ASU for the reporting period beginning January 1, 2025, and does not expect the amendments to have a material impact to the financial statements of the Company.

​

​

ASU 2024-01 – On March 21, 2024, the FASB issued ASU 2024-01 “Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards”, which clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and, therefore is within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. ASU 2024-01 was effective January 1, 2025, including interim periods, and is not expected to have a material impact on the financial statements of the Company.

​

ASU 2024-02 – On March 29, 2024, the FASB issued ASU 2024-02 “Codification Improvements – Amendments to Remove References to the Concepts Statements”, which amends the codification to remove references to various concept statements and impacts a variety of topics in the codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 was effective January 1, 2025, and is not expected to have a material impact the financial statements of the Company.

​

ASU 2024-03 – On November 4, 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. This ASU requires public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Specifically, they will be required to: (1) Disclose the amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements. (2) Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. (3) Disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and is not expected to have a material impact on the financial statements of the Company.  

​

Subsequent Events

​

On January 21, 2025, the Company’s Board of Directors declared a cash dividend of $0.06 per share payable on February 10, 2025, to stockholders of record as of January 31, 2025.

​

On February 24, 2025, Old Second and Bancorp Financial, Inc. (“Bancorp Financial”) entered into an Agreement and Plan of Merger (the “merger agreement”).  The merger agreement provides that, upon the terms and subject to the conditions set forth therein, Bancorp Financial will merge with and into Old Second, with Old Second continuing as the surviving entity (the “merger”).  Immediately following the merger, Evergreen Bank Group (“Evergreen Bank”), an Illinois state-chartered bank and wholly-owned subsidiary of Bancorp Financial, will merge with and into Old Second National Bank, a national banking association and wholly-owned subsidiary of Old Second, with Old Second National Bank continuing as the surviving bank (the “bank merger”).

 ​

Subject to the terms and conditions of the merger agreement, at the effective time of the merger, each Bancorp Financial stockholder will receive 2.5814 shares of Old Second common stock and $15.93 in cash  for each share of Bancorp Financial common stock owned by the stockholder.  Holders of Bancorp Financial common stock, subject to certain exceptions, will also be entitled to receive cash in lieu of fractional shares of Old Second common stock.

​

The parties to the merger expect to complete the merger in the third quarter of 2025, subject to satisfaction of closing conditions, including receipt of customary required regulatory approvals and the approval of the merger agreement by the Bancorp Financial stockholders.
v3.25.0.1
Acquisition
 12 Months Ended
Dec. 31, 2024
Acquisition  
Acquisition

Note 2: Acquisition

​

On December 6, 2024, the Company completed its purchase of five Illinois branch locations in the southeast Chicago metropolitan statistical area from First Merchants Bank, the wholly owned subsidiary of First Merchants Corporation.  This acquisition brought increased scale as the Company expanded its current branch network in the Chicago market.  At closing, the Company recorded $24.8 million of assets, including $7.1 million of loans and $3.9 million of premises and equipment, and $268.0 million of deposits, net of fair value adjustments.

​

The Company recorded the estimate of fair value based on initial valuations available at December 6, 2024. Estimated fair values are subject to adjustment for up to one year after December 6, 2024. Based on current valuations, $13.3 million of core deposit intangible was recorded. Goodwill of $6.8 million was ultimately recorded from the branch purchase transaction. None of the $6.8 million of goodwill recorded is expected to be deductible for income tax purposes.

​

The following table provides the purchase price allocation as of the December 6, 2024 branch purchase transaction with First Merchants Bank, including the assets acquired and liabilities assumed at their estimated fair values as of that date, as recorded by the Company.

​

​

​

​

​

First Merchants Transaction Summary

As of Date of Transaction

​

​

​

​

​

​

December 6, 2024

Assets

​

​

​

Cash and due from banks

​

$

419

Loans, net of purchase accounting adjustments

​

​

7,149

Premises and equipment

​

​

3,934

Core deposit intangible

​

​

13,254

Other assets

​

​

19

Total assets

​

$

24,775

​

​

​

​

Liabilities

​

​

​

Noninterest bearing demand

​

$

26,497

Savings, NOW and money market

​

​

157,126

Time

​

​

84,373

Total deposits

​

​

267,996

Other liabilities

​

​

585

Total liabilities

​

​

268,581

​

​

​

​

Cash consideration received

​

​

(237,023)

Total liabilities assumed and cash consideration received for transaction

​

$

31,558

Goodwill

​

$

6,783

​

Expenses related to the First Merchants Bank branch transaction totaled $1.9 million during the year ended December 31, 2024, and are reported within noninterest expense based on the line items impacted, which are primarily salaries and employee benefits, occupancy, furniture and equipment, computer and data processing, legal fees, and other expense in the Consolidated Statements of Income.

​

All acquired loans are considered non-PCD as none of the loans met the definition of a purchase credit deteriorated loan.
v3.25.0.1
Cash and Due from Banks
 12 Months Ended
Dec. 31, 2024
Cash and Due from Banks.  
Cash and Due from Banks

Note 3: Cash and Due from Banks

​

Total cash and cash equivalents were $99.3 million and $100.1 million at December 31, 2024 and 2023, respectively.

​

The nature of the Company’s business requires that it maintain amounts with other banks and federal funds which, at times, may exceed federally insured limits.  Management monitors these correspondent relationships, and the Company has not experienced any losses in such accounts.  

​
v3.25.0.1
Securities
 12 Months Ended
Dec. 31, 2024
Securities  
Securities

​

Note 4: Securities

​

The following table summarizes the amortized cost and fair value of the securities portfolio at December 31, 2024 and 2023 and the corresponding amounts of gross unrealized gains and losses were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

​

Gross

​

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2024

    

Cost1

    

Gains

    

Losses

​

Value

Securities available-for-sale

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

193,902

​

$

700

​

$

(459)

​

$

194,143

U.S. government agencies

​

​

39,202

​

​

-

​

​

(1,388)

​

​

37,814

U.S. government agencies mortgage-backed

​

​

112,241

​

​

-

​

​

(11,964)

​

​

100,277

States and political subdivisions

​

​

226,969

​

​

264

​

​

(11,777)

​

​

215,456

Collateralized mortgage obligations

​

​

411,170

​

​

647

​

​

(43,201)

​

​

368,616

Asset-backed securities

​

​

64,215

​

​

69

​

​

(1,981)

​

​

62,303

Collateralized loan obligations

​

​

182,629

​

​

472

​

​

(9)

​

​

183,092

Total securities available-for-sale

​

$

1,230,328

​

$

2,152

​

$

(70,779)

​

$

1,161,701

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

​

Gross

​

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2023

    

Cost1

    

Gains

    

Losses

​

Value

Securities available-for-sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

174,602

​

$

-

​

$

(5,028)

​

$

169,574

U.S. government agencies

​

​

60,011

​

​

-

​

​

(3,052)

​

​

56,959

U.S. government agencies mortgage-backed

​

​

118,492

​

​

-

​

​

(12,122)

​

​

106,370

States and political subdivisions

​

​

236,072

​

​

1,325

​

​

(10,332)

​

​

227,065

Collateralized mortgage obligations

​

​

442,987

​

​

421

​

​

(50,864)

​

​

392,544

Asset-backed securities

​

​

71,616

​

​

42

​

​

(3,222)

​

​

68,436

Collateralized loan obligations

​

​

173,201

​

​

30

​

​

(1,350)

​

​

171,881

Total securities available-for-sale

​

$

1,276,981

​

$

1,818

​

$

(85,970)

​

$

1,192,829

​

​

​

​

​

​

​

​

​

​

​

​

​

1 Excludes interest receivable of $7.1 million and $6.6 million at December 31, 2024 and December 31, 2023, respectively, that is recorded in other assets on the Consolidated Balance Sheets.

​

FHLBC stock was $4.5 million and $18.5 million at December 31, 2024 and December 31, 2023, respectively.  FRBC stock was $14.9 million at December 31, 2024 and December 31, 2023. Our FHLBC stock is necessary to maintain access to FHLBC advances.  

​

Securities valued at $717.5 million as of December 31, 2024, were pledged to secure deposits and borrowings, and for other purposes, a decrease from $810.2 million at year-end 2023.

​

The fair value, amortized cost and weighted average yield of debt securities at December 31, 2024 by contractual maturity, were as follows in the table below.  Securities not due at a single maturity date are shown separately.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

​

​

​

Amortized

​

Average

​

​

Fair

​

Securities available-for-sale

    

Cost

    

Yield

​

    

Value

  

Due in one year or less

​

$

94,725

​

2.94

%

​

$

94,598

​

Due after one year through five years

​

​

154,689

​

3.64

​

​

​

153,679

​

Due after five years through ten years

​

​

100,601

​

2.91

​

​

​

94,215

​

Due after ten years

​

​

110,058

​

3.20

​

​

​

104,921

​

​

​

​

460,073

​

3.23

​

​

​

447,413

​

Mortgage-backed and collateralized mortgage obligations

​

​

523,411

​

2.57

​

​

​

468,893

​

Asset-backed securities

​

​

64,215

​

3.70

​

​

​

62,303

​

Collateralized loan obligations

​

​

182,629

​

6.08

​

​

​

183,092

​

Total securities available-for-sale

​

$

1,230,328

​

3.40

%

​

$

1,161,701

​

​

​

As of December 31, 2024, the Company has no securities issued from one originator, other than the U.S. Government and its agencies, that individually amounted to over 10% of the Company’s stockholders equity.  

​

Securities with unrealized losses with no corresponding allowance for credit losses at December 31, 2024 and 2023 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less than 12 months

​

12 months or more

​

​

​

​

​

​

​

​

December 31, 2024

​

in an unrealized loss position

​

in an unrealized loss position

​

Total

​

​

Number of

​

Unrealized

​

Fair

​

Number of

​

Unrealized

​

Fair

​

Number of

​

Unrealized

​

Fair

Securities available-for-sale

    

Securities

   

Losses

   

Value

   

Securities

   

Losses

   

Value

   

Securities

   

Losses

   

Value

U.S. Treasuries

​

4

​

$

72

​

$

49,788

​

1

​

$

387

​

$

49,547

​

5

​

$

459

​

$

99,335

U.S. government agencies

​

-

​

​

-

​

​

-

​

8

​

​

1,388

​

​

37,814

​

8

​

​

1,388

​

​

37,814

U.S. government agencies mortgage-backed

​

1

​

​

447

​

​

10,296

​

128

​

​

11,517

​

​

89,981

​

129

​

​

11,964

​

​

100,277

States and political subdivisions

​

31

​

​

455

​

​

85,457

​

27

​

​

11,322

​

​

111,308

​

58

​

​

11,777

​

​

196,765

Collateralized mortgage obligations

​

3

​

​

24

​

​

5,107

​

139

​

​

43,177

​

​

328,708

​

142

​

​

43,201

​

​

333,815

Asset-backed securities

​

2

​

​

4

​

​

1,068

​

13

​

​

1,977

​

​

50,198

​

15

​

​

1,981

​

​

51,266

Collateralized loan obligations

​

4

​

​

8

​

​

31,440

​

1

​

​

1

​

​

227

​

5

​

​

9

​

​

31,667

Total securities available-for-sale

​

45

​

$

1,010

​

$

183,156

​

317

​

$

69,769

​

$

667,783

​

362

​

$

70,779

​

$

850,939

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less than 12 months

​

12 months or more

​

​

​

​

​

​

​

​

December 31, 2023

​

in an unrealized loss position

​

in an unrealized loss position

​

Total

​

​

Number of

​

Unrealized

​

​

Fair

​

Number of

​

Unrealized

​

​

Fair

​

Number of

​

Unrealized

​

​

Fair

Securities available-for-sale

    

Securities

   

Losses

   

​

Value

   

Securities

   

Losses

   

​

Value

   

Securities

   

Losses

   

​

Value

U.S. Treasuries

​

-

​

$

-

​

$

-

​

4

​

$

5,028

​

$

169,574

​

4

​

$

5,028

​

$

169,574

U.S. government agencies

​

-

​

​

-

​

​

-

​

9

​

​

3,052

​

​

56,959

​

9

​

​

3,052

​

​

56,959

U.S. government agencies mortgage-backed

​

-

​

​

-

​

​

-

​

128

​

​

12,122

​

​

106,370

​

128

​

​

12,122

​

​

106,370

States and political subdivisions

​

12

​

​

137

​

​

27,974

​

25

​

​

10,195

​

​

106,138

​

37

​

​

10,332

​

​

134,112

Collateralized mortgage obligations

​

2

​

​

8

​

​

734

​

143

​

​

50,856

​

​

376,236

​

145

​

​

50,864

​

​

376,970

Asset-backed securities

​

-

​

​

-

​

​

-

​

19

​

​

3,222

​

​

63,941

​

19

​

​

3,222

​

​

63,941

Collateralized loan obligations

​

-

​

​

-

​

​

-

​

25

​

​

1,350

​

​

150,902

​

25

​

​

1,350

​

​

150,902

Total securities available-for-sale

​

14

​

$

145

​

$

28,708

​

353

​

$

85,825

​

$

1,030,120

​

367

​

$

85,970

​

$

1,058,828

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Available-for-sale debt securities in unrealized loss positions are evaluated for allowance related to credit losses at least quarterly. The analysis consists of screening all securities to determine if the bonds have market value loss exceeding 5% of book value and if that loss exceeds $200,000. Two other aspects of each security are assessed. The first is whether a security carries a government guarantee. If the security is backed by a 100% U.S. Government or U.S. Agency guarantee, then no allowance for credit loss would be considered necessary, since ultimately principal and interest of the investment would be paid. For securities that carried a U.S. Government guarantee of less than 100%, an allowance for credit loss analysis is performed. In the case of a partial government guarantee, the loss amount is assumed to be the percentage not guaranteed multiplied by the gain or loss on the position. In addition, a calculation is performed to estimate the amount of value change attributable to movements in interest rates. If the devaluation of a security is due to rate changes, then no allowance would be considered necessary. However, if a payment collected on a particular bond is less than the expected amount, individual credit analysis is conducted on that position. Furthermore, for positions whose market valuations are not directly attributable to movements in interest rates, even if all scheduled payments have been received, credit analysis is performed on each position.

​

The following table presents net realized gains (losses) on securities available-for-sale for the years ended:  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

​

December 31, 

​

Securities available-for-sale

    

2024

    

2023

 

2022

​

Proceeds from sales of securities

​

$

5,331

​

$

205,738

​

$

30,981

​

Gross realized gains on securities

​

 

1

​

 

-

​

 

-

​

Gross realized losses on securities

​

 

(1)

​

 

(4,148)

​

 

(944)

​

Net realized losses

​

$

—

​

$

(4,148)

​

$

(944)

​

Income tax benefit on net realized losses

​

$

—

​

$

1,117

​

$

265

​

Effective tax rate applied

​

​

N/M

%

​

26.9

%

​

28.1

%

​

N/M – Not Meaningful

​

​
v3.25.0.1
Loans and Allowance for Credit Losses on Loans
 12 Months Ended
Dec. 31, 2024
Loans and Allowance for Credit Losses on Loans  
Loans and Allowance for Credit Losses on Loans

Note 5: Loans and Allowance for Credit Losses on Loans

​

The composition of loans by portfolio segment as of December 31, were as follows:

​

​

​

​

​

​

​

​

​

    

December 31, 2024

    

December 31, 2023

Commercial

​

$

800,476

​

$

841,697

Leases

​

​

491,748

​

​

398,223

Commercial real estate – investor

​

​

1,078,829

​

​

1,034,424

Commercial real estate – owner occupied

​

​

683,283

​

​

796,538

Construction

​

​

201,716

​

​

165,380

Residential real estate – investor

​

​

49,598

​

​

52,595

Residential real estate – owner occupied

​

​

206,949

​

​

226,248

Multifamily

​

​

351,325

​

​

401,696

HELOC

​

​

103,388

​

​

103,237

Other 1

​

​

14,024

​

​

22,915

Total loans

​

​

3,981,336

​

​

4,042,953

Allowance for credit losses on loans

​

​

(43,619)

​

​

(44,264)

Net loans 2

​

$

3,937,717

​

$

3,998,689

​

1  Unless otherwise noted, the “Other” segment includes consumer loans and overdrafts in this table and in subsequent tables within Note 5 - Loans and Allowance for Credit Losses on Loans.

​

2  Excludes accrued interest receivable of $17.5 million and $20.5 million at December 31, 2024 and December 31, 2023, respectively, which is recorded in other assets on the Consolidated Balance Sheets.

​

The methodologies used for calculating the ACL on each loan segment include (i) a migration analysis for commercial, CRE owner occupied, CRE investor, and multifamily segments; (ii) a static pool analysis for lease financing receivables, construction, residential investor, residential owner occupied and the HELOC segments; and (iii) a WARM (weighted average remaining maturity) methodology is used for consumer segments.  The forecast period used for each segment calculation was one year, with an immediate reversion to historical loss rates following this one year period.  The economic factors management has selected include the civilian unemployment rate and real gross domestic product supplemented with local unemployment factors. These factors are evaluated and updated quarterly. Additionally, management uses qualitative adjustments to the loss estimates in certain cases as determined necessary. These qualitative adjustments are applied by pooled loan segment and have been made for both increased and decreased risk due to loan quality trends, collateral risk, or other risks management determines are not adequately captured in loss estimation.  Loans that do not share risk characteristics are evaluated on an individual basis and excluded from the pooled loan evaluation.  The amount of expected loss for loans analyzed individually is determined by discounted cash flow or the fair value of the underlying collateral less applicable costs to sell.

​

It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained.  The type of collateral, when required, will vary from liquid assets to real estate.  The Company’s access to collateral, in the event of borrower default, is assured through adherence to lending laws, the Company’s lending standards and credit monitoring procedures.  Although the Bank makes loans primarily within its market area, there are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector.  The real estate related categories above represent 67.2% and 68.8% of the portfolio at December 31, 2024 and December 31, 2023, respectively, and include a mix of owner and non-owner occupied commercial real estate, residential, construction and multifamily loans.  

​

​

​

The following tables represent the activity in the ACL for loans for the years ended December 31, 2024, 2023 and 2022:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning

​

Provision for

​

​

​

​

​

Ending

​

​

Balance

​

(Release of)

​

​

​

​

​

Balance

Allowance for credit losses

   

January 1, 2024

   

Credit Losses

   

Charge-offs

   

Recoveries

   

December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

$

3,998

​

$

12,352

​

$

8,686

​

$

149

​

$

7,813

Leases

​

​

2,952

​

​

(770)

​

​

149

​

​

103

​

​

2,136

Commercial real estate – investor

​

​

17,105

​

​

1,594

​

​

4,596

​

​

425

​

​

14,528

Commercial real estate – owner occupied

​

​

12,280

​

​

(997)

​

​

5,154

​

​

3,907

​

​

10,036

Construction

​

​

1,038

​

​

2,543

​

​

-

​

​

-

​

​

3,581

Residential real estate – investor

​

​

669

​

​

(141)

​

​

-

​

​

25

​

​

553

Residential real estate – owner occupied

​

​

1,821

​

​

(106)

​

​

242

​

​

36

​

​

1,509

Multifamily

​

​

2,728

​

​

(852)

​

​

-

​

​

-

​

​

1,876

HELOC

​

​

1,656

​

​

(169)

​

​

-

​

​

91

​

​

1,578

Other

​

​

17

​

​

130

​

​

284

​

​

146

​

​

9

Total

​

$

44,264

​

$

13,584

​

$

19,111

​

$

4,882

​

$

43,619

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning

​

Provision for

​

​

​

​

​

​

Ending

Allowance for credit losses

​

Balance

​

(Release of)

​

​

​

​

​

​

Balance

​

   

January 1, 2023

   

Credit Losses

   

Charge-offs

   

Recoveries

   

​

December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

$

11,968

​

$

(7,717)

​

$

885

​

$

632

​

$

3,998

Leases

​

​

2,865

​

​

850

​

​

882

​

​

119

​

​

2,952

Commercial real estate – investor

​

​

10,674

​

​

18,170

​

​

11,816

​

​

77

​

​

17,105

Commercial real estate – owner occupied

​

​

15,001

​

​

7,941

​

​

10,691

​

​

29

​

​

12,280

Construction

​

​

1,546

​

​

(608)

​

​

-

​

​

100

​

​

1,038

Residential real estate – investor

​

​

768

​

​

(129)

​

​

-

​

​

30

​

​

669

Residential real estate – owner occupied

​

​

2,046

​

​

(304)

​

​

-

​

​

79

​

​

1,821

Multifamily

​

​

2,453

​

​

275

​

​

-

​

​

-

​

​

2,728

HELOC

​

​

1,806

​

​

(255)

​

​

-

​

​

105

​

​

1,656

Other

​

​

353

​

​

(137)

​

​

368

​

​

169

​

​

17

Total

​

$

49,480

​

$

18,086

​

$

24,642

​

$

1,340

​

$

44,264

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning

​

Provision for

​

​

​

​

​

​

​

​

Ending

Allowance for credit losses

​

Balance

​

(Release of)

​

​

​

​

​

​

​

​

Balance

​

   

January 1, 2022

   

Credit Losses

​

Charge-offs

​

Recoveries

​

   

December 31, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

$

11,751

​

$

273

​

$

151

​

$

95

​

$

11,968

Leases

​

​

3,480

​

​

(246)

​

​

371

​

​

2

​

​

2,865

Commercial real estate – investor

​

​

10,795

​

​

1,199

​

​

1,401

​

​

81

​

​

10,674

Commercial real estate – owner occupied

​

​

4,913

​

​

10,117

​

​

133

​

​

104

​

​

15,001

Construction

​

​

3,373

​

​

(1,827)

​

​

-

​

​

-

​

​

1,546

Residential real estate – investor

​

​

760

​

​

(22)

​

​

-

​

​

30

​

​

768

Residential real estate – owner occupied

​

​

2,832

​

​

(1,010)

​

​

2

​

​

226

​

​

2,046

Multifamily

​

​

3,675

​

​

(1,285)

​

​

-

​

​

63

​

​

2,453

HELOC

​

​

2,510

​

​

(844)

​

​

-

​

​

140

​

​

1,806

Other

​

​

192

​

​

395

​

​

402

​

​

168

​

​

353

Total

​

$

44,281

​

$

6,750

​

$

2,460

​

$

909

​

$

49,480

​

​

​

The following table presents the collateral dependent loans and the related ACL allocated by segment of loans as of December 31:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Accounts

​

​

​

​

​

​

​

ACL

December 31, 2024

​

Real Estate

​

Receivable

​

Equipment

​

Other

​

Total

​

Allocation

Commercial

​

$

-

​

$

6,491

​

$

-

​

$

-

​

$

6,491

​

$

2,448

Leases

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Commercial real estate – investor

​

​

1,644

​

​

-

​

​

-

​

​

-

​

​

1,644

​

​

-

Commercial real estate – owner occupied

​

​

10,018

​

​

-

​

​

-

​

​

-

​

​

10,018

​

​

3,951

Construction

​

​

5,800

​

​

-

​

​

-

​

​

-

​

​

5,800

​

​

792

Residential real estate – investor

​

​

404

​

​

-

​

​

-

​

​

-

​

​

404

​

​

-

Residential real estate – owner occupied

​

​

1,056

​

​

-

​

​

-

​

​

-

​

​

1,056

​

​

-

Multifamily

​

​

836

​

​

-

​

​

-

​

​

-

​

​

836

​

​

-

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Other

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total

​

$

19,758

​

$

6,491

​

$

-

​

$

-

​

$

26,249

​

$

7,191

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Accounts

​

​

​

​

​

​

​

ACL

December 31, 2023

​

Real Estate

​

Receivable

​

Equipment

​

Other

​

Total

​

Allocation

Commercial

​

$

837

​

$

797

​

$

-

​

$

-

​

$

1,634

​

$

2

Leases

​

​

-

​

​

-

​

​

321

​

​

-

​

​

321

​

​

320

Commercial real estate – investor

​

​

15,735

​

​

-

​

​

-

​

​

-

​

​

15,735

​

​

3,656

Commercial real estate – owner occupied

​

​

34,894

​

​

-

​

​

-

​

​

-

​

​

34,894

​

​

3,900

Construction

​

​

7,162

​

​

-

​

​

-

​

​

-

​

​

7,162

​

​

-

Residential real estate – investor

​

​

422

​

​

-

​

​

-

​

​

-

​

​

422

​

​

-

Residential real estate – owner occupied

​

​

1,506

​

​

-

​

​

-

​

​

-

​

​

1,506

​

​

-

Multifamily

​

​

1,402

​

​

-

​

​

-

​

​

-

​

​

1,402

​

​

-

HELOC

​

​

39

​

​

-

​

​

-

​

​

-

​

​

39

​

​

-

Other

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total

​

$

61,997

​

$

797

​

$

321

​

$

-

​

$

63,115

​

$

7,878

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Aged analysis of past due loans by class of loans as of December 31, 2024 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

90 days or

​

​

​

​

​

​

​

​

90 Days or

​

​

​

​

​

​

​

​

​

​

Greater Past

​

​

30-59 Days

​

60-89 Days

​

Greater Past

​

Total Past

​

​

​

​

​

​

​

Due and

December 31, 2024

​

Past Due

    

Past Due

    

Due

    

Due

    

Current

    

Total Loans

    

Accruing

Commercial

​

$

219

​

$

95

​

$

6,963

​

$

7,277

​

$

793,199

​

$

800,476

​

$

1,397

Leases

​

​

1,438

​

​

372

​

​

352

​

​

2,162

​

​

489,586

​

​

491,748

​

​

-

Commercial real estate – investor

​

​

2,021

​

​

402

​

​

-

​

​

2,423

​

​

1,076,406

​

​

1,078,829

​

​

-

Commercial real estate – owner occupied

​

​

1,123

​

​

2,479

​

​

43

​

​

3,645

​

​

679,638

​

​

683,283

​

​

-

Construction

​

​

-

​

​

-

​

​

5,799

​

​

5,799

​

​

195,917

​

​

201,716

​

​

-

Residential real estate – investor

​

​

763

​

​

-

​

​

439

​

​

1,202

​

​

48,396

​

​

49,598

​

​

-

Residential real estate – owner occupied

​

​

2,489

​

​

90

​

​

509

​

​

3,088

​

​

203,861

​

​

206,949

​

​

-

Multifamily

​

​

-

​

​

233

​

​

1,040

​

​

1,273

​

​

350,052

​

​

351,325

​

​

-

HELOC

​

​

109

​

​

74

​

​

202

​

​

385

​

​

103,003

​

​

103,388

​

​

39

Other

​

​

13

​

​

10

​

​

-

​

​

23

​

​

14,001

​

​

14,024

​

​

-

Total

​

$

8,175

​

$

3,755

​

$

15,347

​

$

27,277

​

$

3,954,059

​

$

3,981,336

​

$

1,436

​

Aged analysis of past due loans by class of loans as of December 31, 2023 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

90 days or

​

​

​

​

​

​

​

​

90 Days or

​

​

​

​

​

​

​

​

​

​

Greater Past

​

​

30-59 Days

​

60-89 Days

​

Greater Past

​

Total Past

​

​

​

​

​

​

​

Due and

December 31, 2023

​

Past Due

    

Past Due

    

Due

    

Due

    

Current

    

Total Loans

    

Accruing

Commercial

​

$

982

​

$

-

​

$

1,228

​

$

2,210

​

$

839,487

​

$

841,697

​

$

1,155

Leases

​

​

599

​

​

-

​

​

347

​

​

946

​

​

397,277

​

​

398,223

​

​

-

Commercial real estate – investor

​

​

1,209

​

​

-

​

​

6,087

​

​

7,296

​

​

1,027,128

​

​

1,034,424

​

​

-

Commercial real estate – owner occupied

​

​

2,103

​

​

3,726

​

​

15,645

​

​

21,474

​

​

775,064

​

​

796,538

​

​

-

Construction

​

​

2,540

​

​

307

​

​

7,161

​

​

10,008

​

​

155,372

​

​

165,380

​

​

-

Residential real estate – investor

​

​

540

​

​

579

​

​

168

​

​

1,287

​

​

51,308

​

​

52,595

​

​

-

Residential real estate – owner occupied

​

​

553

​

​

125

​

​

1,944

​

​

2,622

​

​

223,626

​

​

226,248

​

​

-

Multifamily

​

​

1,085

​

​

-

​

​

233

​

​

1,318

​

​

400,378

​

​

401,696

​

​

-

HELOC

​

​

565

​

​

1,396

​

​

269

​

​

2,230

​

​

101,007

​

​

103,237

​

​

41

Other

​

​

-

​

​

1

​

​

-

​

​

1

​

​

22,914

​

​

22,915

​

​

-

Total

​

$

10,176

​

$

6,134

​

$

33,082

​

$

49,392

​

$

3,993,561

​

$

4,042,953

​

$

1,196

​

​

​

The following table presents all nonaccrual loans and loans on nonaccrual for which there was no related allowance for credit losses as of:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nonaccrual loan detail

    

December 31, 2024

    

With no ACL

​

December 31, 2023

    

With no ACL

Commercial

​

$

5,591

​

$

497

​

$

870

​

$

870

Leases

​

​

523

​

​

523

​

​

639

​

​

318

Commercial real estate – investor

​

​

1,981

​

​

1,981

​

​

16,572

​

​

8,926

Commercial real estate – owner occupied

​

​

10,604

​

​

1,407

​

​

34,946

​

​

8,429

Construction

​

​

5,800

​

​

-

​

​

7,162

​

​

7,162

Residential real estate – investor

​

​

1,158

​

​

1,158

​

​

1,331

​

​

1,331

Residential real estate – owner occupied

​

​

1,653

​

​

1,653

​

​

3,078

​

​

3,078

Multifamily

​

​

1,165

​

​

1,165

​

​

1,775

​

​

1,775

HELOC

​

​

366

​

​

366

​

​

1,210

​

​

1,210

Other

​

​

10

​

​

10

​

​

-

​

​

-

Total

​

$

28,851

​

$

8,760

​

$

67,583

​

$

33,099

​

The Company recognized $815,000 and $1.9 million of interest on nonaccrual loans during the years ended December 31, 2024 and 2023, respectively.  The amount of accrued interest reversed against interest income totaled $4.2 million and $1.3 million for the years ended December 31, 2024 and 2023, respectively.

​

Credit Quality Indicators:

​

The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends.  This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages.  Loans with a classified risk rating are reviewed quarterly regardless of size or loan type.  The Company uses the following definitions for classified risk ratings:

​

Special Mention.  Loans classified as special mention have a potential weakness that deserves management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date.

​

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

​

Doubtful.  Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

​

Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated.

​

​

​

Credit quality indicators by class of loans as of December 31, 2024 were as follows in the vintage table below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Revolving
Loans

  

Revolving
Loans
Converted
To Term
Loans

  

Total

Commercial

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

299,863

​

$

176,549

​

$

56,619

​

$

18,679

​

$

4,999

​

$

6,527

​

$

201,514

​

$

1,279

​

$

766,029

Special Mention

​

​

3,864

​

​

1,629

​

​

127

​

​

176

​

​

-

​

​

-

​

​

3,903

​

​

-

​

​

9,699

Substandard

​

​

-

​

​

14

​

​

4,169

​

​

77

​

​

-

​

​

-

​

​

19,102

​

​

-

​

​

23,362

Doubtful

​

​

-

​

​

-

​

​

-

​

​

1,386

​

​

-

​

​

-

​

​

-

​

​

-

​

​

1,386

Total commercial

​

​

303,727

​

​

178,192

​

​

60,915

​

​

20,318

​

​

4,999

​

​

6,527

​

​

224,519

​

​

1,279

​

​

800,476

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Leases

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

239,664

​

​

151,372

​

$

66,379

​

​

24,546

​

​

6,145

​

​

2,298

​

​

-

​

​

-

​

​

490,404

Special Mention

​

​

-

​

​

-

​

​

821

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

821

Substandard

​

​

-

​

​

-

​

​

523

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

523

Total leases

​

​

239,664

​

​

151,372

​

​

67,723

​

​

24,546

​

​

6,145

​

​

2,298

​

​

-

​

​

-

​

​

491,748

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

243,983

​

​

159,008

​

​

305,506

​

​

191,651

​

​

90,245

​

​

67,143

​

​

6,804

​

​

-

​

​

1,064,340

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

335

​

​

1,645

​

​

-

​

​

-

​

​

-

​

​

12,509

​

​

-

​

​

-

​

​

14,489

Total commercial real estate – investor

​

​

244,318

​

​

160,653

​

​

305,506

​

​

191,651

​

​

90,245

​

​

79,652

​

​

6,804

​

​

-

​

​

1,078,829

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

91,012

​

​

114,255

​

​

133,488

​

​

121,652

​

​

77,919

​

​

82,820

​

​

14,284

​

​

-

​

​

635,430

Special Mention

​

​

-

​

​

1,162

​

​

7,908

​

​

7,500

​

​

3,033

​

​

631

​

​

-

​

​

-

​

​

20,234

Substandard

​

​

-

​

​

125

​

​

1,168

​

​

11,241

​

​

9,897

​

​

5,188

​

​

-

​

​

-

​

​

27,619

Total commercial real estate – owner occupied

​

​

91,012

​

​

115,542

​

​

142,564

​

​

140,393

​

​

90,849

​

​

88,639

​

​

14,284

​

​

-

​

​

683,283

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

44,699

​

​

27,928

​

​

83,222

​

​

17,747

​

​

82

​

​

1,081

​

​

468

​

​

-

​

​

175,227

Special Mention

​

​

-

​

​

-

​

​

6,794

​

​

-

​

​

-

​

​

344

​

​

-

​

​

-

​

​

7,138

Substandard

​

​

-

​

​

-

​

​

19,351

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

19,351

Total construction

​

​

44,699

​

​

27,928

​

​

109,367

​

​

17,747

​

​

82

​

​

1,425

​

​

468

​

​

-

​

​

201,716

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

5,595

​

​

3,833

​

​

13,366

​

​

8,060

​

​

5,693

​

​

9,813

​

​

1,548

​

​

-

​

​

47,908

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

375

​

​

532

​

​

-

​

​

783

​

​

-

​

​

-

​

​

1,690

Total residential real estate – investor

​

​

5,595

​

​

3,833

​

​

13,741

​

​

8,592

​

​

5,693

​

​

10,596

​

​

1,548

​

​

-

​

​

49,598

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

11,609

​

​

29,670

​

​

35,786

​

​

32,760

​

​

22,996

​

​

71,507

​

​

770

​

​

-

​

​

205,098

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

151

​

​

-

​

​

1,700

​

​

-

​

​

-

​

​

1,851

Total residential real estate – owner occupied

​

​

11,609

​

​

29,670

​

​

35,786

​

​

32,911

​

​

22,996

​

​

73,207

​

​

770

​

​

-

​

​

206,949

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multifamily

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

39,133

​

​

68,781

​

​

68,032

​

​

100,049

​

​

29,060

​

​

44,735

​

​

370

​

​

-

​

​

350,160

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

962

​

​

-

​

​

203

​

​

-

​

​

-

​

​

-

​

​

1,165

Total multifamily

​

​

39,133

​

​

68,781

​

​

68,994

​

​

100,049

​

​

29,263

​

​

44,735

​

​

370

​

​

-

​

​

351,325

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HELOC

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

2,602

​

​

2,561

​

​

2,118

​

​

383

​

​

1,383

​

​

3,752

​

​

90,042

​

​

-

​

​

102,841

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

-

​

​

39

​

​

214

​

​

294

​

​

-

​

​

547

Total HELOC

​

​

2,602

​

​

2,561

​

​

2,118

​

​

383

​

​

1,422

​

​

3,966

​

​

90,336

​

​

-

​

​

103,388

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

6,521

​

​

1,559

​

​

1,438

​

​

639

​

​

92

​

​

7

​

​

3,758

​

​

​

​

​

14,014

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

​

​

​

-

Substandard

​

​

-

​

​

5

​

​

5

​

​

-

​

​

-

​

​

-

​

​

-

​

​

​

​

​

10

Total other

​

​

6,521

​

​

1,564

​

​

1,443

​

​

639

​

​

92

​

​

7

​

​

3,758

​

​

-

​

​

14,024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

984,681

​

​

735,516

​

​

765,954

​

​

516,166

​

​

238,614

​

​

289,683

​

​

319,558

​

​

1,279

​

​

3,851,451

Special Mention

​

​

3,864

​

​

2,791

​

​

15,650

​

​

7,676

​

​

3,033

​

​

975

​

​

3,903

​

​

-

​

​

37,892

Substandard

​

​

335

​

​

1,789

​

​

26,553

​

​

12,001

​

​

10,139

​

​

20,394

​

​

19,396

​

​

-

​

​

90,607

Doubtful

​

​

-

​

​

-

​

​

-

​

​

1,386

​

​

-

​

​

-

​

​

-

​

​

-

​

​

1,386

Total loans

​

$

988,880

​

$

740,096

​

$

808,157

​

$

537,229

​

$

251,786

​

$

311,052

​

$

342,857

​

$

1,279

​

$

3,981,336

​

​

​

Credit quality indicators by class of loans as of December 31, 2023 were as follows in the vintage table below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Revolving
Loans

  

Revolving
Loans
Converted
To Term
Loans

  

Total

Commercial

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

318,569

​

$

136,668

​

$

35,901

​

$

11,983

​

$

18,390

​

$

3,426

​

$

298,931

​

$

1,408

​

$

825,276

Special Mention

​

​

-

​

​

2,737

​

​

707

​

​

171

​

​

-

​

​

-

​

​

4,392

​

​

-

​

​

8,007

Substandard

​

​

-

​

​

2,099

​

​

146

​

​

-

​

​

199

​

​

-

​

​

5,970

​

​

-

​

​

8,414

Total commercial

​

​

318,569

​

​

141,504

​

​

36,754

​

​

12,154

​

​

18,589

​

​

3,426

​

​

309,293

​

​

1,408

​

​

841,697

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Leases

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

219,163

​

​

113,074

​

$

42,275

​

​

14,663

​

​

6,975

​

​

1,255

​

​

-

​

​

-

​

​

397,405

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

407

​

​

203

​

​

-

​

​

208

​

​

-

​

​

-

​

​

-

​

​

818

Total leases

​

​

219,163

​

​

113,481

​

​

42,478

​

​

14,663

​

​

7,183

​

​

1,255

​

​

-

​

​

-

​

​

398,223

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

159,654

​

​

367,512

​

​

218,084

​

​

108,384

​

​

54,322

​

​

63,281

​

​

8,122

​

​

-

​

​

979,359

Special Mention

​

​

-

​

​

-

​

​

11,267

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

11,267

Substandard

​

​

-

​

​

-

​

​

838

​

​

5,327

​

​

15,658

​

​

9,648

​

​

12,327

​

​

-

​

​

43,798

Total commercial real estate – investor

​

​

159,654

​

​

367,512

​

​

230,189

​

​

113,711

​

​

69,980

​

​

72,929

​

​

20,449

​

​

-

​

​

1,034,424

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

124,059

​

​

134,383

​

​

177,553

​

​

103,109

​

​

42,839

​

​

91,062

​

​

33,243

​

​

-

​

​

706,248

Special Mention

​

​

1,650

​

​

17,415

​

​

9,585

​

​

3,128

​

​

218

​

​

3,681

​

​

-

​

​

-

​

​

35,677

Substandard

​

​

-

​

​

14,630

​

​

18,817

​

​

4,571

​

​

14,809

​

​

1,786

​

​

-

​

​

-

​

​

54,613

Total commercial real estate – owner occupied

​

​

125,709

​

​

166,428

​

​

205,955

​

​

110,808

​

​

57,866

​

​

96,529

​

​

33,243

​

​

-

​

​

796,538

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

42,808

​

​

66,513

​

​

32,942

​

​

100

​

​

1,593

​

​

1,083

​

​

3,186

​

​

-

​

​

148,225

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

9,993

​

​

-

​

​

7,162

​

​

-

​

​

-

​

​

17,155

Total construction

​

​

42,808

​

​

66,513

​

​

32,942

​

​

10,093

​

​

1,593

​

​

8,245

​

​

3,186

​

​

-

​

​

165,380

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

5,062

​

​

14,434

​

​

9,027

​

​

6,227

​

​

6,508

​

​

8,469

​

​

1,471

​

​

-

​

​

51,198

Special Mention

​

​

-

​

​

-

​

​

66

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

66

Substandard

​

​

-

​

​

390

​

​

-

​

​

-

​

​

408

​

​

533

​

​

-

​

​

-

​

​

1,331

Total residential real estate – investor

​

​

5,062

​

​

14,824

​

​

9,093

​

​

6,227

​

​

6,916

​

​

9,002

​

​

1,471

​

​

-

​

​

52,595

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

32,574

​

​

41,528

​

​

40,335

​

​

25,322

​

​

14,233

​

​

68,277

​

​

763

​

​

-

​

​

223,032

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

191

​

​

685

​

​

2,340

​

​

-

​

​

-

​

​

3,216

Total residential real estate – owner occupied

​

​

32,574

​

​

41,528

​

​

40,335

​

​

25,513

​

​

14,918

​

​

70,617

​

​

763

​

​

-

​

​

226,248

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multifamily

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

55,310

​

​

79,060

​

​

123,834

​

​

72,539

​

​

12,231

​

​

40,825

​

​

562

​

​

-

​

​

384,361

Special Mention

​

​

-

​

​

168

​

​

13,425

​

​

322

​

​

1,645

​

​

-

​

​

-

​

​

-

​

​

15,560

Substandard

​

​

-

​

​

1,009

​

​

-

​

​

-

​

​

-

​

​

766

​

​

-

​

​

-

​

​

1,775

Total multifamily

​

​

55,310

​

​

80,237

​

​

137,259

​

​

72,861

​

​

13,876

​

​

41,591

​

​

562

​

​

-

​

​

401,696

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HELOC

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

2,735

​

​

2,679

​

​

490

​

​

1,757

​

​

1,756

​

​

2,995

​

​

89,161

​

​

-

​

​

101,573

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

25

​

​

1

​

​

41

​

​

24

​

​

184

​

​

1,389

​

​

-

​

​

1,664

Total HELOC

​

​

2,735

​

​

2,704

​

​

491

​

​

1,798

​

​

1,780

​

​

3,179

​

​

90,550

​

​

-

​

​

103,237

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

4,060

​

​

2,278

​

​

1,569

​

​

153

​

​

85

​

​

73

​

​

14,697

​

​

-

​

​

22,915

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total other

​

​

4,060

​

​

2,278

​

​

1,569

​

​

153

​

​

85

​

​

73

​

​

14,697

​

​

-

​

​

22,915

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

963,994

​

​

958,129

​

​

682,010

​

​

344,237

​

​

158,932

​

​

280,746

​

​

450,136

​

​

1,408

​

​

3,839,592

Special Mention

​

​

1,650

​

​

20,320

​

​

35,050

​

​

3,621

​

​

1,863

​

​

3,681

​

​

4,392

​

​

-

​

​

70,577

Substandard

​

​

-

​

​

18,560

​

​

20,005

​

​

20,123

​

​

31,991

​

​

22,419

​

​

19,686

​

​

-

​

​

132,784

Total loans

​

$

965,644

​

$

997,009

​

$

737,065

​

$

367,981

​

$

192,786

​

$

306,846

​

$

474,214

​

$

1,408

​

$

4,042,953

​

​

​

​

The gross charge-offs activity by loan type and year of origination for the year ended December 31, 2024 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

  

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Total

Commercial

​

$

31

​

$

7,205

​

$

756

​

$

670

​

$

-

​

$

24

​

$

8,686

Leases

​

​

-

​

​

-

​

​

96

​

​

53

​

​

-

​

​

-

​

​

149

Commercial real estate – investor

​

​

-

​

​

-

​

​

4,128

​

​

452

​

​

16

​

​

-

​

​

4,596

Commercial real estate – owner occupied

​

​

-

​

​

​

​

​

-

​

​

5,135

​

​

-

​

​

19

​

​

5,154

Construction

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – investor

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

242

​

​

242

Multifamily

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Other

​

​

5

​

​

-

​

​

-

​

​

-

​

​

-

​

​

279

​

​

284

Total

​

$

36

​

$

7,205

​

$

4,980

​

$

6,310

​

$

16

​

$

564

​

$

19,111

​

The gross charge-offs activity by loan type and year of origination for the year ended December 31, 2023 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

  

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Total

Commercial

​

$

-

​

$

-

​

$

466

​

$

364

​

$

-

​

$

55

​

$

885

Leases

​

​

-

​

​

870

​

​

-

​

​

-

​

​

12

​

​

-

​

​

882

Commercial real estate – investor

​

​

123

​

​

8,352

​

​

71

​

​

3,270

​

​

-

​

​

-

​

​

11,816

Commercial real estate – owner occupied

​

​

-

​

​

22

​

​

178

​

​

6,947

​

​

3,512

​

​

32

​

​

10,691

Construction

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – investor

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Multifamily

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Other

​

​

-

​

​

3

​

​

27

​

​

6

​

​

-

​

​

332

​

​

368

Total

​

$

123

​

$

9,247

​

$

742

​

$

10,587

​

$

3,524

​

$

419

​

$

24,642

​

The Company had $469,000 and $170,000 in consumer mortgage loans in the process of foreclosure as of December 31, 2024 and December 31, 2023, respectively.  

​

Fifteen loans, totaling $46.9 million in aggregate, were modified and experiencing financial difficulty during the year ended December 31, 2024. Eighteen loans, totaling $41.7 million in aggregate, were modified which were experiencing financial difficulty during the year ended December 31, 2023. None of the loans modified while experiencing financial difficulty are in payment default as of December 31, 2024, and there were three loans past due while experiencing financial difficulty for a total of $2.0 million as of December 31, 2023.

​

The following tables presents the amortized costs basis of loans at December 31, 2024 and December 31, 2023 that were both experiencing financial difficulty and modified during the years ended December 31, 2024 and December 31, 2023 by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to amortized costs basis of each class of financing receivable is also presented below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

Term Extension

​

Combination - Term Extension, Interest Rate, and Payment Delay

​

Combination - Term Extension and Interest Rate

​

Combination - Term Extension and Payment 1

​

Total Modifications

​

Total Class of Financing Receivable

Commercial

​

$

3,385

​

$

3,794

​

$

-

​

$

-

​

$

7,179

​

0.9%

Commercial real estate – investor

​

​

12,509

​

​

-

​

​

-

​

​

-

​

​

12,509

​

1.2%

Commercial real estate – owner occupied

​

​

22,210

​

​

415

​

​

3,206

​

​

209

​

​

26,040

​

3.8%

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

0.0%

Multifamily

​

​

-

​

​

1,197

​

​

-

​

​

-

​

​

1,197

​

0.3%

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

0.0%

Total

​

$

38,104

​

$

5,406

​

$

3,206

​

$

209

​

$

46,925

​

1.2%

1 Payment modifications are either contractual delays in payment or a modification of the payment amount.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Term Extension

​

Combination - Term Extension, Interest Rate, and Payment Delay

​

Combination - Term Extension and Interest Rate

​

Combination - Term Extension and Payment 1

​

Total Modifications

​

Total Class of Financing Receivable

Commercial

​

$

3,000

​

$

-

​

$

979

​

$

-

​

$

3,979

​

0.5%

Commercial real estate – investor

​

​

13,521

​

​

-

​

​

-

​

​

7,646

​

​

21,167

​

2.0%

Commercial real estate – owner occupied

​

​

16,082

​

​

-

​

​

-

​

​

-

​

​

16,082

​

2.0%

Residential real estate – owner occupied

​

​

119

​

​

-

​

​

-

​

​

-

​

​

119

​

0.1%

Multifamily

​

​

233

​

​

-

​

​

-

​

​

-

​

​

233

​

0.1%

HELOC

​

​

166

​

​

-

​

​

-

​

​

-

​

​

166

​

0.2%

Total

​

$

33,121

​

$

-

​

$

979

​

$

7,646

​

$

41,746

​

1.0%

1 Payment modifications are either contractual delays in payment or a modification of the payment amount.

​

​

The Company closely monitors the performance of loan modifications to borrowers experiencing financial difficulty. The following tables presents the performance of loans that have been modified as of December 31, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

30-59 days past due

​

60-89 Days Past Due

​

90 Days or Greater Past Due

​

Total Past Due

​

Current

​

Total Modifications

Commercial

​

$

-

​

$

-

​

$

-

​

$

-

​

$

7,179

​

$

7,179

Commercial real estate – investor

​

​

-

​

​

-

​

​

-

​

​

-

​

​

12,509

​

​

12,509

Commercial real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

26,040

​

​

26,040

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Multifamily

​

​

-

​

​

-

​

​

-

​

​

-

​

​

1,197

​

​

1,197

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total

​

$

-

​

$

-

​

$

-

​

$

-

​

$

46,925

​

$

46,925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

30-59 days past due

​

60-89 Days Past Due

​

90 Days or Greater Past Due

​

Total Past Due

​

Current

​

Total Modifications

Commercial

​

$

-

​

$

-

​

$

979

​

$

979

​

$

3,000

​

$

3,979

Commercial real estate – investor

​

​

838

​

​

-

​

​

-

​

​

838

​

​

20,329

​

​

21,167

Commercial real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

16,082

​

​

16,082

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

119

​

​

119

Multifamily

​

​

-

​

​

-

​

​

233

​

​

233

​

​

-

​

​

233

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

166

​

​

166

Total

​

$

838

​

$

-

​

$

1,212

​

$

2,050

​

$

39,696

​

$

41,746

​

The following table summarizes the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the period ended December 31, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

Weighted-Average Term Extension (In Months)

​

Weighted-Average Interest Rate Change

​

Weighted-Average Delay of Payment (In Months)

Commercial

​

​

6.49

​

​

0.50

%

​

​

4.00

Commercial real estate – investor

​

​

6.00

​

​

-

​

​

​

-

Commercial real estate – owner occupied

​

​

8.59

​

​

0.15

​

​

​

-

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

​

-

Multifamily

​

​

60.00

​

​

2.75

​

​

​

-

HELOC

​

​

-

​

​

-

​

​

​

-

Total

​

​

8.89

​

​

0.69

%

​

​

4.00

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Weighted-Average Term Extension (In Months)

​

Weighted-Average Interest Rate Change

​

Weighted-Average Delay of Payment (In Months)

Commercial

​

​

8.31

​

​

5.00

%

​

​

-

Commercial real estate – investor

​

​

9.96

​

​

-

​

​

​

7.00

Commercial real estate – owner occupied

​

​

11.65

​

​

-

​

​

​

-

Residential real estate – owner occupied

​

​

39.00

​

​

-

​

​

​

-

Multifamily

​

​

21.00

​

​

-

​

​

​

-

HELOC

​

​

24.00

​

​

-

​

​

​

-

Total

​

​

10.65

​

​

5.00

%

​

​

7.00

​

Loans to principal officers, directors, and their affiliates, which are made in the ordinary course of business, as of December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

 

Beginning balance

​

$

-

​

$

8,483

​

New loans, including acquired related party loans

​

 

-

​

 

30

​

Repayments and other reductions

​

 

-

​

 

(30)

​

Change in related party status

​

 

-

​

 

(8,483)

​

Ending balance

​

$

-

​

$

-

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Other Real Estate Owned
 12 Months Ended
Dec. 31, 2024
Other Real Estate Owned  
Other Real Estate Owned

Note 6: Other Real Estate Owned

​

Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Twelve Months Ended

​

    

December 31, 

Other real estate owned

    

2024

    

2023

​

2022

Balance at beginning of period

​

$

5,123

​

$

1,561

​

$

2,356

Property additions, net of participation sold

​

​

21,083

​

​

5,580

​

​

87

Less:

​

​

​

​

​

​

​

​

​

Proceeds from property disposals, net of participation sold and gains/losses

​

​

2,845

​

​

1,749

​

​

778

Period valuation write-down

​

​

1,744

​

​

269

​

​

104

Balance at end of period

​

$

21,617

​

$

5,123

​

$

1,561

​

Activity in the valuation allowance was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Twelve Months Ended

​

    

December 31, 

​

    

2024

    

2023

  

2022

Balance at beginning of period

​

$

118

​

$

856

​

$

1,179

Provision for unrealized losses

​

​

1,744

​

​

269

​

​

104

Reductions taken on sales

​

​

-

​

​

(1,007)

​

​

(427)

Balance at end of period

​

$

1,862

​

$

118

​

$

856

​

​

​

​

​

​

​

​

​

​

​

Expenses related to OREO, net of lease revenue includes:

​

​

​

​

​

​

​

​

​

​

​

​

​

Twelve Months Ended

​

    

December 31, 

​

    

2024

    

2023

​

2022

Gain on sales, net

​

$

(390)

​

$

(256)

​

$

(163)

Provision for unrealized losses

​

​

1,744

​

​

269

​

​

104

Operating expenses

​

​

1,801

​

​

434

​

​

193

Less:

​

​

​

​

​

​

​

​

​

Lease revenue

​

​

935

​

​

48

​

​

4

Net OREO expense

​

$

2,220

​

$

399

​

$

130

​
v3.25.0.1
Premises and Equipment
 12 Months Ended
Dec. 31, 2024
Premises and Equipment  
Premises and Equipment

Note 7: Premises and Equipment

​

Premises and equipment at December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

​

​

​

   

​

​

   

Accumulated

   

​

​

   

​

​

   

Accumulated

   

​

​

   

​

​

​

​

​

​

Depreciation/

​

Net Book

​

​

​

​

Depreciation/

​

Net Book

​

​

​

​

Cost

​

Amortization

​

Value

​

Cost

​

Amortization

​

Value

​

​

Land

​

$

30,981

​

$

-

​

$

30,981

​

$

29,741

​

$

-

​

$

29,741

​

​

Buildings

​

 

61,428

​

 

27,413

​

 

34,015

​

 

58,311

​

 

25,911

​

 

32,400

​

​

Leasehold improvements

​

 

10,341

​

 

2,112

​

 

8,229

​

 

7,785

​

 

1,574

​

 

6,211

​

​

Furniture and equipment

​

 

63,884

​

 

49,798

​

 

14,086

​

 

57,447

​

​

46,489

​

 

10,958

​

​

Total Premises and Equipment

​

$

166,634

​

$

79,323

​

$

87,311

​

$

153,284

​

$

73,974

​

$

79,310

​

​

​

The Company had $1.4 million and $1.0 million of fixed assets held for sale as of December 31, 2024 and 2023, respectively.  These fixed assets held for sale are reported with other assets on the Consolidated Balance Sheets.  

​

The Company enters into lease arrangements in the normal course of business primarily for branch locations and certain ATMs. The Company’s leases have remaining terms ranging from six-months to 19.4 years, some of which include options to extend between five and ten years, ATMs leases are generally short-term in nature. All of our leases are operating leases.

​

At December 31, 2024, the Company had lease liabilities totaling $12.5 million and right-of-use assets totaling $7.4 million related to operating leases.  At December 31, 2023, the Company had lease liabilities totaling $11.6 million and right-of-use assets totaling $7.1 million related to operating leases.  Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively.

​

​

​

Right-of-use asset and lease obligations by type of property are listed below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

Right-of-Use Asset

​

Lease Liability

​

Weight Average Lease Term in Years

​

Weight Average Discount Rate

Operating Leases

​

​

​

​

​

​

​

​

​

​

​

​

Land and building leases

​

$

7,359

​

$

12,465

​

​

13.7

​

4.72

%

Total operating leases

​

$

7,359

​

$

12,465

​

​

13.7

​

4.72

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Right-of-Use Asset

​

Lease Liability

​

Weight Average Lease Term in Years

​

Weight Average Discount Rate

Operating Leases

​

​

​

​

​

​

​

​

​

​

​

​

Land and building leases

​

$

7,093

​

$

11,578

​

​

12.5

​

4.65

%

Total operating leases

​

$

7,093

​

$

11,578

​

​

12.5

​

4.65

%

​

During 2024, there was one lease termination with a right-of-use asset and lease liability balance of $68,333 and fees paid of $46,500, resulting in a loss of $46,500.

​

During 2024, there was one sale leaseback specific to a branch location. The transaction occurred with an unrelated party at arm’s length, there were no concessions or favorable terms on either the sale price or the subsequent lease terms. We recorded a gain of $31,311 to net gain/(loss) on sale of fixed assets, net of closing costs on the consolidated statements of income. The terms of the lease are 20 years with an escalating rent schedule, and there are no lease incentives.  The calculation of the lease liability utilized an incremental borrowing rate of 4.61%.

​

Operating lease costs are listed below:

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

​

2022

Operating lease cost

​

$

1,337

​

$

988

​

$

716

Short-term lease cost

​

​

54

​

​

64

​

​

60

Total operating lease cost

​

$

1,391

​

$

1,052

​

$

776

​

There were no sales and leaseback transactions, leverage leases, lease transactions with related parties or leases that had not yet been commenced during the periods ending December 31, 2024 or 2023.

​

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability as of December 31, 2024, is listed below.

​

​

​

​

​

Lease payments

​

​

​

Due in one year or less

​

$

2,095

Due in one year through two years

​

​

1,903

Due in two years through three years

​

​

1,847

Due in three years through four years

​

​

1,756

Due in four years through five years

​

​

1,692

Thereafter

​

​

5,824

Total lease payments

​

​

15,117

Discount on cash flows

​

​

(2,652)

Total lease liabilities

​

$

12,465

​
v3.25.0.1
Deposits
 12 Months Ended
Dec. 31, 2024
Deposits  
Deposits

​

Note 8: Deposits

​

Major classifications of deposits at December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

  

Noninterest bearing demand

​

$

1,704,920

​

$

1,834,891

​

Savings

​

​

932,201

​

​

971,334

​

NOW accounts

​

​

621,434

​

​

565,375

​

Money market accounts

​

​

761,499

​

​

671,240

​

Certificates of deposit of less than $100,000

​

​

352,526

​

​

266,035

​

Certificates of deposit of $100,000 through $250,000

​

​

270,837

​

​

180,289

​

Certificates of deposit of more than $250,000

​

​

125,314

​

​

81,582

​

Total deposits

​

$

4,768,731

​

$

4,570,746

​

​

​

​

​

​

​

​

​

​

The Company had $29.8 million and $30.7 million in listing service deposits as of December 31, 2024 and 2023, respectively.  Deposits held by senior officers and directors, including their related interests, totaled $11.0 million and $12.0 million as of December 31, 2024 and 2023, respectively.

​

At December 31, 2024, scheduled maturities of time deposits were as follows:

​

​

​

​

​

​

2025

    

$

700,746

​

2026

​

 

27,775

​

2027

​

 

7,645

​

2028

​

 

8,130

​

2029

​

 

4,381

​

Total time deposits

​

$

748,677

​

​
v3.25.0.1
Borrowings
 12 Months Ended
Dec. 31, 2024
Borrowings  
Borrowings

Note 9: Borrowings

​

The following table is a summary of borrowings as of December 31, 2024:

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

  

Securities sold under repurchase agreements

​

$

36,657

​

$

26,470

​

Other short-term borrowings

​

​

20,000

​

​

405,000

​

Junior subordinated debentures1

​

​

25,773

​

​

25,773

​

Subordinated debentures

​

​

59,467

​

​

59,382

​

Total borrowings

​

$

141,897

​

$

516,625

​

​

​

​

​

​

​

​

​

1 See Note 10: Junior Subordinated Debentures, below.

​

The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities.  These transactions consistently mature within 1 to 90 days from the transaction date and are governed by sweep repurchase agreements.  All sweep repurchase agreements are treated as financings secured by U.S. government agencies, collateralized mortgage obligations, mortgage-backed securities and/or highly-rated issues of State and political subdivisions, and had a carrying amount of $36.7 million and $26.5 million at December 31, 2024 and 2023, respectively.  The fair value of the pledged collateral was $73.6 million and $45.7 million at December 31, 2024 and December 31, 2023, respectively.  At December 31, 2024, there were no customers with secured balances exceeding 10% of stockholders’ equity.

​

The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC. Total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of December 31, 2024, the Bank had $20.0 million in short-term advances outstanding under the FHLBC. There were $405.0 million in short-term advances as of December 31, 2023. FHLBC stock held at December 31, 2024 was valued at $4.5 million, and any potential FHLBC advances were collateralized by loans and securities with a principal balance of $1.41 billion, which carried a FHLBC-calculated combined value of $942.8 million. As of December 31, 2023, FHLBC stock owned by the Bank was valued at $18.5 million and the principal balance of loans and securities pledged was $1.46 billion.  Based on the total amount of loans and securities pledged, the Bank had a total borrowing capacity at the FHLBC of $942.8 million and a remaining funding availability of $922.8 million on December 31, 2024.

​

​

​

In the second quarter of 2021, we entered into Subordinated Note Purchase Agreements with certain qualified institutional buyers pursuant to which we sold and issued $60.0 million in aggregate principal amount of our 3.50% Fixed-to-Floating Rate Subordinated Notes due April 15, 2031 (the “Notes”).  We sold the Notes to eligible purchasers in a private offering, and the proceeds of this issuance are intended to be used for general corporate purposes, which may include, without limitation, the redemption of existing senior debt, common stock repurchases and strategic acquisitions.  The Notes bear interest at a fixed annual rate of 3.50% through April 14, 2026, payable semi-annually in arrears.  As of April 15, 2026 forward, the interest rate on the Notes will generally reset quarterly to a rate equal to Three-Month Term SOFR (as defined by the Note) plus 273 basis points, payable quarterly in arrears.  The Notes have a stated maturity of April 15, 2031, and are redeemable, in whole are in part, on April 15, 2026, or any interest payment date thereafter, and at any time upon the occurrence of certain events.  The subordinated debentures outstanding, net of deferred issuance costs, totaled $59.5 million and $59.4 million as of December 31, 2024 and 2023, respectively.

​

The Company issued senior notes in December 2016 with a ten-year maturity, and terms included interest payable semiannually at 5.75% for five years.  On June 30, 2023, the Company redeemed all of the $45.0 million senior notes. Upon redemption, the related deferred debt issuance costs of $362,000 was also recorded as interest expense, resulting in an effective cost of this debt issuance of 12.85% for the second quarter of 2023.

​

On February 24, 2023, we paid off the remaining $9.0 million balance in notes payable related to a $20.0 million dollar term note originated with a correspondent bank in the first quarter of 2020, to facilitate the redemption of our Old Second Capital Trust I trust preferred securities and related junior subordinated debentures, completed on March 2, 2020.

​

The Company has an undrawn line of credit of $30.0 million with a correspondent bank to be used for short-term funding needs; advances under this line can be outstanding up to 360 days from the date of issuance.  This line of credit has not been utilized since early 2019.

​

Scheduled maturities and weighted average rates of borrowings for the years ended December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

 

​

​

​

​

​

Weighted

​

​

​

​

Weighted

 

​

​

​

​

​

Average

​

​

​

​

Average

 

​

    

Balance

    

Rate

    

Balance

    

Rate

 

2024

​

$

-

 

-

%

$

431,470

​

4.98

%  

2025

​

​

56,657

​

2.47

​

​

-

 

-

​

2026

​

 

-

 

-

​

 

-

 

-

​

2027

​

 

-

 

-

​

 

-

​

-

​

2028

​

 

-

 

-

​

 

-

 

-

​

2029

​

 

-

 

-

​

 

-

​

-

​

Thereafter

​

 

85,240

 

3.89

​

 

85,155

 

4.10

​

Total borrowings

​

$

141,897

 

3.32

%  

$

516,625

 

4.84

%

​
v3.25.0.1
Junior Subordinated Debentures
 12 Months Ended
Dec. 31, 2024
Junior Subordinated Debentures  
Junior Subordinated Debentures

Note 10: Junior Subordinated Debentures

​

The Company issued $25.0 million of cumulative trust preferred securities through a private placement completed by an additional, unconsolidated subsidiary, Old Second Capital Trust II, in April 2007. These trust preferred securities mature in 30 years, but subject to regulatory approval, can be called in whole or in part on a quarterly basis commencing June 15, 2017.  The quarterly cash distributions on the securities were fixed at 6.77% through June 15, 2017, distributions subsequently moved to a floating rate of 150 basis points over three-month LIBOR, and finally 150 basis points over three-month SOFR following the sunset of LIBOR.  Upon conversion to a floating rate, a cash flow hedge was initiated which resulted in the total interest rate paid on the debt of 4.37% and 4.25% as of December 31, 2024 and December 31, 2023, respectively. The Company issued a new $25.8 million subordinated debenture to the Old Second Capital Trust II in return for the aggregate net proceeds of this trust preferred offering.  The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities.  

​

The junior subordinated debentures issued by the Company are disclosed on the Consolidated Balance Sheets, and the related interest expense for each issuance is included in the Consolidated Statements of Income.  As of December 31, 2024 and 2023, the remaining unamortized debt issuance costs related to the junior subordinated debentures were less than $1,000 and are included as a reduction to the balance of the junior subordinated debentures on the Consolidated Balance Sheets. The remaining deferred issuance costs on the junior subordinated debentures related to the issuance of Old Second Capital Trust II will be amortized to interest expense over the remainder of the 30-year term of the notes and are included in the Consolidated Statements of Income.

​
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

​

Note 11: Income Taxes

​

Income tax expense (benefit) for the years ending December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Current federal

​

$

22,011

​

$

20,724

​

$

13,241

Current state

​

​

7,048

​

​

10,098

​

​

6,209

Deferred federal

​

​

(1,419)

​

​

1,964

​

​

3,338

Deferred state

​

​

52

​

​

(107)

​

​

1,356

Total income tax expense

​

$

27,692

​

$

32,679

​

$

24,144

​

​

​

​

​

​

​

​

​

​

​

The following were the components of the deferred tax assets and liabilities as of December 31:

​

​

​

​

​

​

​

​

​

    

2024

    

2023

Accrued bonus

​

$

2,601

​

$

2,500

Allowance for credit losses

​

​

12,241

​

​

13,077

Deferred compensation

​

​

2,100

​

​

1,622

Stock based compensation

​

​

1,920

​

​

1,768

Business combination adjustments

​

​

-

​

​

270

Lease liability

​

​

3,315

​

​

3,201

Other assets

​

​

2,357

​

​

1,602

Total deferred tax assets

​

​

24,534

​

​

24,040

​

​

​

​

​

​

​

Accumulated depreciation on premises and equipment

​

​

(5,844)

​

​

(5,454)

Goodwill amortization/impairment

​

​

(604)

​

​

(465)

Mortgage servicing rights

​

​

(2,728)

​

​

(2,842)

Amortization of core deposit intangible

​

​

(2,248)

​

​

(2,987)

Right of use asset

​

​

(1,972)

​

​

(1,969)

Acquired securities

​

​

(1,997)

​

​

(2,376)

Other liabilities

​

​

(1,090)

​

​

(1,263)

Total deferred tax liabilities

​

​

(16,483)

​

​

(17,356)

Net deferred tax asset before adjustments related to other comprehensive income

​

​

8,051

​

​

6,684

Tax effect of adjustments related to other comprehensive income

​

​

18,568

​

​

24,393

Net deferred tax asset

​

$

26,619

​

$

31,077

​

​

​

​

​

​

​

​

At December 31, 2024, the Company had no federal net operating loss carryforward and no state net operating loss carryforward.

​

Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31, due to the following:

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Tax at statutory federal income tax rate

​

$

23,721

​

$

26,126

​

$

19,225

Nontaxable interest income, net of disallowed interest deduction

​

​

(820)

​

​

(947)

​

​

(1,097)

BOLI income

​

​

(950)

​

​

(445)

​

​

(151)

State income taxes, net of federal benefit

​

​

5,775

​

​

7,911

​

​

6,091

Stock based compensation

​

​

(139)

​

​

(132)

​

​

(43)

Other, net

​

​

105

​

​

166

​

​

119

Total tax at effective tax rate

​

$

27,692

​

$

32,679

​

$

24,144

​

​

​

​

​

​

​

​

​

​

​

The Company evaluated positive and negative evidence in order to determine if it was more likely than not that the deferred tax asset would be recovered through future income.  Significant positive evidence evaluated included recent and projected earnings, strong asset quality and capital position.  No significant negative evidence was noted.

​

The Company and its subsidiaries are subject to U.S. federal income tax as well as various state taxing jurisdictions. The Company is no longer subject to examination for tax years prior to 2021.
v3.25.0.1
Equity Compensation Plans
 12 Months Ended
Dec. 31, 2024
Equity Compensation Plans  
Equity Compensation Plans

​

Note 12: Equity Compensation Plans

​

Stock-based awards are outstanding under the Company’s 2019 Equity Incentive Plan, as amended and restated (the “2019 Plan”).  The 2019 Plan was originally approved at the May 2019 annual stockholders’ meeting and authorized 600,000 shares, and at the May 2021 annual stockholders’ meeting, the Company obtained stockholder approval to increase the number of shares of common stock authorized for issuance under the plan by 1,200,000 shares, from 600,000 shares to 1,800,000 shares.  Following the approval of the 2019 Plan, no further awards will be granted under any other prior plan.  

​

The 2019 Plan authorizes the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights (“SARs”).  Awards may be granted to selected directors, officers, employees or eligible service providers under the 2019 Plan at the discretion of the Compensation Committee of the Company’s Board of Directors.  As of December 31, 2024, 745,588 shares remained available for issuance under the 2019 Plan.

​

The Company has granted only restricted stock units under the 2019 Equity Incentive Plan.

​

Generally, restricted stock and restricted stock units granted under the 2019 Plan vest three years from the grant date, but the Compensation Committee of the Company’s Board of Directors has discretionary authority to change the terms of particular awards including the vesting schedule.

​

Under the 2019 Plan, unless otherwise provided in an award agreement, upon the occurrence of a change in control, all stock options and SARs then held by the participant will become fully exercisable immediately, and all stock awards and cash incentive awards will become fully earned and vested immediately if, (i) the 2019 Plan is not an obligation of the successor entity following a change in control or (ii) the 2019 Plan is an obligation of the successor entity following a change in control and the participant incurs a termination of service without cause or for good reason following the change in control.  Notwithstanding the immediately preceding sentence, if the vesting of an award is conditioned upon the achievement of performance measures, then such vesting will generally be subject to the following: if, at the time of the change in control, the performance measures are less than 50% attained (pro rata based upon the time of the period through the change in control), the award will become vested and exercisable on a fractional basis with the numerator being equal to the percentage of attainment and the denominator being 50%; and if, at the time of the change in control, the performance measures are at least 50% attained (pro rata based upon the time of the period through the change in control), the award will become fully earned and vested immediately upon the change in control.

​

Awards of restricted stock units under the 2019 Plan generally entitled holders to voting and dividend rights upon grant and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period.  Awards of restricted stock units under the 2019 Plan are also subject to forfeiture until certain restrictions have lapsed including employment for a specific period, but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units.  

​

Total compensation cost that has been charged for the 2019 Plan was $4.1 million, $3.6 million and $3.0 million for the years ending December 31, 2024, 2023 and 2022, respectively.

​

There were 339,235 and 240,149 restricted stock units granted during the years ending December 31, 2024 and 2023, respectively. Compensation expense is recognized over the vesting period of the restricted stock unit based on the market value of the award on the grant date.

A summary of changes in the Company’s unvested restricted awards for the year ending December 31, 2024, is as follows:

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

​

​

Weighted

​

​

Restricted

​

Average

​

​

Stock Shares

​

Grant Date

​

    

and Units

    

Fair Value

Unvested at January 1

​

709,237

​

$

14.26

Granted

​

339,235

​

​

13.44

Vested

​

(248,386)

​

​

11.54

Forfeited

​

(21,808)

​

​

15.10

Unvested at December 31

​

778,278

​

$

14.75

​

​

​

​

​

​

​

Total unrecognized compensation cost of restricted stock unit awards was $4.2 million as of December 31, 2024, which is expected to be recognized over a weighted-average period of 1.73 years.

​

​
v3.25.0.1
Earnings Per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share  
Earnings Per Share

​

Note 13: Earnings Per Share

​

The earnings per share, both basic and diluted, are included below as of December 31, (in thousands except for per share data):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

    

2024

    

2023

  

2022

Basic earnings per share:

​

​

​

​

​

​

​

​

​

​

Weighted-average common shares outstanding

​

​

​

44,828,290

​

​

44,663,722

​

​

44,526,655

Net income

​

​

$

85,264

​

$

91,729

​

$

67,405

Basic earnings per share

​

​

$

1.90

​

$

2.05

​

$

1.51

​

​

​

​

​

​

​

​

​

​

​

Diluted earnings per share:

​

​

​

​

​

​

​

​

​

​

Weighted-average common shares outstanding

​

​

​

44,828,290

​

​

44,663,722

​

​

44,526,655

Dilutive effect of unvested restricted awards 1

​

​

​

811,061

​

​

731,288

​

​

686,433

Diluted average common shares outstanding

​

​

​

45,639,351

​

​

45,395,010

​

​

45,213,088

​

​

​

​

​

​

​

​

​

​

​

Net Income

​

​

$

85,264

​

$

91,729

​

$

67,405

Diluted earnings per share

​

​

$

1.87

​

$

2.02

​

$

1.49

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1 Includes the common stock equivalents for restricted share rights that are dilutive.

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Commitments
 12 Months Ended
Dec. 31, 2024
Commitments  
Commitments

Note 14: Commitments

​

In the normal course of business, there are outstanding commitments that are not reflected in the Consolidated Financial Statements.  Commitments include financial instruments that involve, to varying degrees, elements of credit, interest rate, and liquidity risk.  In management’s opinion, these do not represent unusual risks and management does not anticipate significant losses as a result of these transactions.  The Company uses the same credit policies in making commitments and conditional obligations for borrowers as it does for on-balance sheet instruments.

​

The following table is a summary of financial instrument commitments as of December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

December 31, 2023

​

​

    

Fixed

    

Variable

    

Total

    

Fixed

    

Variable

    

Total

  

Letters of credit:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Borrower:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial standby

​

$

188

​

$

16,322

​

$

16,510

​

$

173

​

$

16,621

​

$

16,794

​

Performance standby

​

​

552

​

​

10,207

​

​

10,759

​

​

562

​

​

13,689

​

​

14,251

​

​

​

​

740

​

​

26,529

​

​

27,269

​

​

735

​

​

30,310

​

​

31,045

​

Non-borrower:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Performance standby

​

​

-

​

​

67

​

​

67

​

​

-

​

​

67

​

​

67

​

Total letters of credit

​

$

740

​

$

26,596

​

$

27,336

​

$

735

​

$

30,377

​

$

31,112

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Unused loan commitments:

​

$

163,282

​

$

616,533

​

$

779,815

​

$

140,305

​

$

694,960

​

$

835,265

​

​

The Bank occupies facilities under long-term operating leases, some of which include provisions for future rent increases.  In addition, the Company leases space at sites that house automatic teller machines (ATMs). The Company also receives rental income on certain leased properties.  As of December 31, 2024, aggregate future minimum rental income to be received under noncancelable leases totaled $420,000.  Total facility net operating lease expense or revenue recorded under all operating leases was a net expense of $1.2 million in 2024, $844,000 in 2023, and $396,000 in 2022.  Total ATM lease expense, including the costs related to servicing those ATM’s, was $2.4 million in 2024, $2.1 million in 2023, and $1.9 million in 2022.

​

​

​

The following table below is the estimated aggregate minimum annual rental commitments at December 31, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2030

​

2025

​

2026

​

2027

​

2028

​

2029

​

and thereafter

Rental commitment

$

2,149

​

$

1,945

​

$

1,877

​

$

1,758

​

$

1,692

​

$

5,824

​

Legal proceedings

​

The Company and its subsidiaries, from time to time, pursue collection suits and other actions that arise in the ordinary course of business against their borrowers and are defendants in legal actions arising from normal business activities.  Management, after consultation with legal counsel, believes that the ultimate liabilities, if any, resulting from these actions will not have a material adverse effect on the financial position of the Bank or on the consolidated financial position of the Company based on all known information at this time.
v3.25.0.1
Regulatory & Capital Matters
 12 Months Ended
Dec. 31, 2024
Regulatory & Capital Matters  
Regulatory & Capital Matters

Note 15: Regulatory & Capital Matters

​

The Bank is subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighted Bank assets, developed by the Office of the Comptroller of the Currency (the “OCC”) and the other bank regulatory agencies.  In connection with the current economic environment, the Bank’s current level of nonperforming assets and the risk-based capital guidelines, the Bank’s board of directors’ guidelines are for the Bank to maintain a Tier 1 leverage capital ratio at or above eight percent (8%) and a total risk-based capital ratio at or above twelve percent (12%).  The Bank currently exceeds those thresholds.

​

Bank holding companies are required to maintain minimum levels of capital in accordance with capital guidelines implemented by the Board of Governors of the Federal Reserve System.  The general bank and holding company capital adequacy guidelines in force as of the periods reported are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of December 31, 2024, and December 31, 2023.

​

In July 2013, the U.S. federal banking authorities issued final rules (the “Basel III Rules”) establishing more stringent regulatory capital requirements for U.S. banking institutions, which went into effect on January 1, 2015.  A detailed discussion of the Basel III Rules is included in Part I, Item 1 of the annual report under the heading “Supervision and Regulation.”

​

The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies.  The capital ratios below are calculated pursuant to the capital requirements in effect for the periods reported below.

​

​

Capital levels and industry defined regulatory minimum required levels at December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum Capital

​

Well Capitalized

​

​

​

​

​

​

​

​

​

Adequacy with Capital

​

Under Prompt Corrective

​

​

​

Actual

​

Conservation Buffer, if applicable1

​

Action Provisions2

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

​

2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common equity tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

607,294

​

12.82

%

​

$

331,596

​

7.00

%

​

​

N/A

​

N/A

​

Old Second Bank

​

​

610,285

​

12.89

​

​

​

331,419

​

7.00

​

​

$

307,747

​

6.50

%

Total capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

736,492

​

15.54

​

​

​

497,630

​

10.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

654,484

​

13.82

​

​

​

497,256

​

10.50

​

​

​

473,577

​

10.00

​

Tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

632,294

​

13.34

​

​

​

402,886

​

8.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

610,285

​

12.89

​

​

​

402,438

​

8.50

​

​

​

378,765

​

8.00

​

Tier 1 capital to average assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

632,294

​

11.30

​

​

​

223,821

​

4.00

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

610,285

​

10.90

​

​

​

223,958

​

4.00

​

​

​

279,947

​

5.00

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common equity tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

547,721

​

11.37

%

​

$

337,207

​

7.00

%

​

​

N/A

​

N/A

​

Old Second Bank

​

​

592,413

​

12.32

​

​

​

336,598

​

7.00

​

​

$

312,556

​

6.50

%

Total capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

677,076

​

14.06

​

​

​

505,640

​

10.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

636,768

​

13.24

​

​

​

504,990

​

10.50

​

​

​

480,943

​

10.00

​

Tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

572,721

​

11.89

​

​

​

409,430

​

8.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

592,413

​

12.32

​

​

​

408,727

​

8.50

​

​

​

384,684

​

8.00

​

Tier 1 capital to average assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

572,721

​

10.06

​

​

​

227,722

​

4.00

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

592,413

​

10.41

​

​

​

227,632

​

4.00

​

​

​

284,540

​

5.00

​

​

1 Amounts are shown inclusive of a capital conservation buffer of 2.50%.

2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.”

​

As part of its response to the impact of the COVID-19 pandemic, in the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provided banking organizations that adopted CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we elected to utilize the five-year CECL transition.  The cumulative amount that is not recognized in regulatory capital, in addition to the $3.8 million Day 1 impact of CECL adoption, has been phased in at 25% per year beginning January 1, 2022. As of December 31, 2024, the capital measures of the Company above include $951,000, which is the Day 1 impact to retained earnings and 25% of the increase in the allowance for credit losses during 2020 and 2021, excluding PCD loans and acquisition related adjustments.

​

Dividend Restrictions

​

In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a Bank without prior regulatory approval.  Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years, subject to the capital requirements described above.  As of December 31, 2024, the Company had total dividend availability of $107.8 million from the Bank, per regulatory guidelines.  Pursuant to the Basel III rules that were fully phased-in at January 1, 2019, the Bank must keep a capital conservation buffer of 2.5% on all risk-based capital requirements in order to avoid additional limitations on capital distributions.

v3.25.0.1
Mortgage Banking Derivatives
 12 Months Ended
Dec. 31, 2024
Mortgage Banking Derivatives.  
Mortgage Banking Derivatives  
Mortgage Banking Derivatives

​

Note 16: Mortgage Banking Derivatives

​

Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives.  It is the Company’s practice to sell mortgage-backed securities (“MBS”) contracts for the future delivery to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans.  These contracts are also derivatives and collectively with the forward commitments for the future delivery of mortgage loans are considered forward contracts.  These mortgage banking derivatives, which are not designated in hedge relationships using the accepted accounting for derivative instruments and hedging activities at December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

 

Forward contracts:

​

​

​

​

​

​

​

Notional amount

​

$

5,500

​

$

6,000

​

Fair value

​

 

10

​

 

(46)

​

​

​

​

​

​

​

​

​

Rate lock commitments:

​

​

​

​

​

​

​

Notional amount

​

$

3,167

​

$

1,312

​

Fair value

​

 

45

​

 

36

​

​

Fair values were estimated based on changes in mortgage interest rates from the date of the commitments.  The Company sold $58.0 million in loans to investors receiving proceeds of $58.8 million and resulting in a gain on sale of $1.8 million for the year ended December 31, 2024. Sales to investors included $45.0 million, or 77.9% to FNMA and $7.5 million, or 13.0%, to FHLMC for the year ended December 31, 2024. No other individual investor was sold more than 10% of the total loans sold.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Measurements  
Fair Value Measurements

​

Note 17: Fair Value Measurements

​

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  The fair value hierarchy established by the Company also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  Three levels of inputs that may be used to measure fair value are:

​

Level 1:  Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

​

Level 2:  Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

​

Level 3:  Significant unobservable inputs that reflect a company’s own view about the assumptions that market participants would use in pricing an asset or liability.

​

There were no transfers between levels during the period ending December 31, 2024, however the Company reclassified one states and political subdivision security to an asset-backed security in all periods presented. During the period ending December 31, 2023, $14.9 million of asset-backed securities and $6.8 million of collateralized mortgage obligations were transferred to Level 2 from Level 3.

​

​

​

The majority of securities are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy.  Both market and income valuation approaches are utilized.  Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value.  The Company uses the following methods and significant assumptions to estimate fair value:

​

●Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark spreads, market valuations of like securities, like securities groupings and matrix pricing.
●Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date.
●States and political subdivisions are largely grouped by characteristics (e.g., geographical data and source of revenue in trade dissemination systems).  Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities.
●Auction rate asset backed securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics.
●Annually every security holding is priced by a pricing service independent of the regular and recurring pricing services used.  The independent service provides a measurement to indicate if the price assigned by the regular service is within or outside of a reasonable range.  Management reviews this report and applies judgment in adjusting calculations at year end related to securities pricing.
●Residential mortgage loans available for sale in the secondary market are carried at fair market value.  The fair value of loans held-for-sale is determined using quoted secondary market prices.
●Lending related commitments to fund certain residential mortgage loans, e.g., residential mortgage loans with locked interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors as well as forward commitments for future delivery of MBS are considered derivatives.  Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management.
●The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income.  The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value.  The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates  to widely available published industry data for reasonableness.
●Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves.
●The fair value of individually evaluated loans with specific allocations of the ACL is essentially based on recent real estate appraisals or the fair value of the collateralized asset.  These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.  Adjustments are made in the appraisal process by the appraisers to reflect differences between the available comparable sales and income data.  Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.
●Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of carrying amount or fair value, less costs to sell.  Fair values are based on third party appraisals of the property, resulting in a Level 3 classification.  In cases where the carrying amount exceeds the fair value, less costs to sell, a valuation loss is recognized.

​

​

​

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

​

The tables below present the balance of assets and liabilities at December 31, measured by the Company at fair value on a recurring basis are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Securities available-for-sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

194,143

​

$

-

​

$

-

​

$

194,143

U.S. government agencies

​

​

-

​

​

37,814

​

​

-

​

​

37,814

U.S. government agencies mortgage-backed

​

​

-

​

​

100,277

​

​

-

​

​

100,277

States and political subdivisions

​

​

-

​

​

203,560

​

​

11,896

​

​

215,456

Collateralized mortgage obligations

​

​

-

​

​

368,616

​

​

-

​

​

368,616

Asset-backed securities

​

​

-

​

​

59,049

​

​

3,254

​

​

62,303

Collateralized loan obligations

​

​

-

​

​

183,092

​

​

-

​

​

183,092

Loans held-for-sale

​

​

-

​

​

1,556

​

​

-

​

​

1,556

Mortgage servicing rights

​

​

-

​

​

-

​

​

10,374

​

​

10,374

Interest rate derivatives 

​

​

-

​

​

5,526

​

​

-

​

​

5,526

Mortgage banking derivatives

​

​

-

​

​

55

​

​

-

​

​

55

Total

​

$

194,143

​

$

959,545

​

$

25,524

​

$

1,179,212

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap agreements, including risk participation agreements

​

$

-

​

$

3,192

​

$

-

​

$

3,192

Total

​

$

-

​

$

3,192

​

$

-

​

$

3,192

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Securities available-for-sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

169,574

​

$

-

​

$

-

​

$

169,574

U.S. government agencies

​

​

-

​

​

56,959

​

​

-

​

​

56,959

U.S. government agencies mortgage-backed

​

​

-

​

​

106,370

​

​

-

​

​

106,370

States and political subdivisions

​

​

-

​

​

214,006

​

​

13,059

​

​

227,065

Collateralized mortgage obligations

​

​

-

​

​

392,544

​

​

-

​

​

392,544

Asset-backed securities

​

​

-

​

​

66,166

​

​

2,270

​

​

68,436

Collateralized loan obligations

​

​

-

​

​

171,881

​

​

-

​

​

171,881

Loans held-for-sale

​

​

-

​

​

1,322

​

​

-

​

​

1,322

Mortgage servicing rights

​

​

-

​

​

-

​

​

10,344

​

​

10,344

Interest rate derivatives

​

​

-

​

​

5,391

​

​

-

​

​

5,391

Total

​

$

169,574

​

$

1,014,639

​

$

25,673

​

$

1,209,886

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap agreements, including risk participation agreements

​

$

-

​

$

8,324

​

$

-

​

$

8,324

Mortgage banking derivatives

​

​

-

​

​

10

​

​

-

​

​

10

Total

​

$

-

​

$

8,334

​

$

-

​

$

8,334

​

​

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2024

​

​

Securities available-for-sale

​

​

​

​

​

​

​

States and

​

Mortgage

​

​

Asset-backed

​

Political

​

Servicing

​

   

Securities

​

Subdivisions

   

Rights

Beginning balance January 1, 2024

​

$

2,270

​

$

13,059

​

$

10,344

Transfers out of Level 3

​

​

-

​

​

-

​

​

-

Total gains or losses

​

​

​

​

​

​

​

​

​

Included in earnings

​

​

-

​

​

(125)

​

​

(160)

Included in other comprehensive income

​

​

(69)

​

​

(444)

​

​

-

Purchases, issuances, sales, and settlements

​

​

​

​

​

​

​

​

​

Purchases

​

​

1,209

​

​

-

​

​

-

Issuances

​

​

-

​

​

-

​

​

753

Settlements

​

​

(156)

​

​

(594)

​

​

(563)

Ending balance December 31, 2024

​

$

3,254

​

$

11,896

​

$

10,374

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2023

​

​

​

​

Securities available-for-sale

​

​

​

​

​

​

​

​

Collateralized

​

States and

​

Mortgage

​

​

​

Asset-backed

​

Mortgage

​

Political

​

Servicing

​

​

    

Securities

​

Obligations

​

Subdivisions

    

Rights

    

Beginning balance January 1, 2023

​

$

16,740

​

$

6,770

​

$

12,501

​

$

11,189

​

Transfers into Level 3

​

​

-

​

​

-

​

​

-

​

​

-

​

Transfers out of Level 3

​

​

(14,885)

​

​

(6,764)

​

​

-

​

​

-

​

Total gains or losses

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in earnings

​

​

(11)

​

​

-

​

​

(135)

​

​

(924)

​

Included in other comprehensive income

​

​

239

​

​

(6)

​

​

998

​

​

-

​

Purchases, issuances, sales, and settlements

​

​

​

​

​

​

​

​

​

​

​

​

​

Purchases

​

​

782

​

​

-

​

​

-

​

​

-

​

Issuances

​

​

-

​

​

-

​

​

-

​

​

580

​

Settlements

​

​

(595)

​

​

-

​

​

(305)

​

​

(501)

​

Ending balance December 31, 2023

​

$

2,270

​

$

-

​

$

13,059

​

$

10,344

​

​

​

The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

Measured at fair value

​

​

​

​

​

​

Significant Unobservable

​

​

​

Average

on a recurring basis:

   

Fair Value

   

Valuation Methodology

   

Inputs

   

Range of Input

   

of Inputs

​

​

​

​

​

​

​

​

​

​

​

​

​

States and political subdivisions

​

$

11,896

​

Discounted Cash Flow

​

Discount Rate

​

5.3 –5.4%

​

5.4

%

​

​

​

​

​

​

​

Liquidity Premium

​

0.5 – 0.5%

​

0.5

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Asset-backed securities

​

$

3,254

​

Discounted Cash Flow

​

Discount Rate

​

4.9 – 4.9% 

​

4.9

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage servicing rights

​

$

10,374

​

Discounted Cash Flow

​

Discount Rate

​

 9.0 – 11.0% 

​

9.0

%

​

​

​

​

​

​

​

Prepayment Speed

​

0.0 – 31.5%

​

6.9

%

​

​

​

​

​

​

​

​

​

​

​

​

​

The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

Measured at fair value

​

​

​

​

​

​

Significant Unobservable

​

​

​

Average

on a recurring basis:

   

Fair Value

   

Valuation Methodology

   

Inputs

   

Range of Input

   

of Inputs

​

​

​

​

​

​

​

​

​

​

​

​

​

States and political subdivisions

​

$

13,059

​

Discounted Cash Flow

​

Discount Rate

​

3.2 – 5.4%

​

4.7

%

​

​

​

​

​

​

​

Liquidity Premium

​

0.5 – 0.5%

​

0.5

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Asset-backed securities

​

$

2,270

​

Discounted Cash Flow

​

Discount Rate

​

5.6 – 5.6%

​

5.6

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage servicing rights

​

$

10,344

​

Discounted Cash Flow

​

Discount Rate

​

 9.0 – 11.0% 

​

9.0

%

​

​

​

​

​

​

​

Prepayment Speed

​

5.1 – 33.0%

​

6.6

%

​

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:

​

The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP.  These assets consist of individually evaluated loans and OREO.  For assets measured at fair value on a nonrecurring basis at December 31, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Individually evaluated loans1

​

$

-

​

$

-

​

$

19,058

​

$

19,058

Other real estate owned, net2

​

​

-

​

​

-

​

​

21,617

​

​

21,617

Total

​

$

-

​

$

-

​

$

40,675

​

$

40,675

​

1Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans and to a lesser extent the discounted cash flow, had a carrying amount of $26.2 million and a valuation allowance of $7.2 million, resulting in a decrease of specific allocations within the provision for credit losses of $3.9 million for the year ending December 31, 2024.

​

2OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $21.6 million, which is made up of the outstanding balance of $23.5 million, net of a valuation allowance of $1.9 million, at December 31, 2024.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Individually evaluated loans1

​

$

-

​

$

-

​

$

66,180

​

$

66,180

Other real estate owned, net2

​

​

-

​

​

-

​

​

5,123

​

​

5,123

Total

​

$

-

​

$

-

​

$

71,303

​

$

71,303

​

1Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans and to a lesser extent the discounted cash flow, had a carrying amount of $77.3 million and a valuation allowance of $11.1 million, resulting in an increase of specific allocations within the provision for credit losses of $6.5 million for the year ending December 31, 2023.

​

2OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $5.1 million, which is made up of the outstanding balance of $5.2 million, net of a valuation allowance of $118,000 at December 31, 2023.

​

These OREO and individually evaluated loan valuations include assumptions related to cash flow projections, discount rates, and recent comparable sales.  The numerical range of unobservable inputs for these valuation assumptions are not meaningful.
v3.25.0.1
Fair Values of Financial Instruments
 12 Months Ended
Dec. 31, 2024
Fair Values of Financial Instruments  
Fair Values of Financial Instruments

Note 18: Fair Value of Financial Instruments

​

The estimated fair values approximate carrying amount for all items except those described in the following table.  Securities available-for-sale fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security.  The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable and can only be sold to the FHLBC or another member institution at par.  FHLBC stock is carried at cost and considered a Level 2 fair value.  For December 31, 2024 and 2023, the fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. The fair value of time deposits is estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities.  The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities.  The fair value of off balance sheet volume is not considered material. The fair value of mortgage banking derivatives is discussed in Note 16: Mortgage Banking Derivatives, above.

​

The carrying amount and estimated fair values of financial instruments at December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

Carrying

​

Fair

​

​

​

​

​

​

​

​

​

​

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

​

$

52,175

​

$

52,175

​

$

52,175

​

$

-

​

$

-

Interest earning deposits with financial institutions

​

​

47,154

​

​

47,154

​

​

47,154

​

​

-

​

​

-

Securities available-for-sale

​

​

1,161,701

​

​

1,161,701

​

​

194,143

​

​

952,408

​

​

15,150

FHLBC and FRBC stock

​

​

19,441

​

​

19,441

​

​

-

​

​

19,441

​

​

-

Loans held-for-sale

​

​

1,556

​

​

1,556

​

​

-

​

​

1,556

​

​

-

Net loans

​

​

3,937,717

​

​

3,818,303

​

​

-

​

​

-

​

​

3,818,303

Interest rate swap and rate cap agreements

​

​

5,498

​

​

5,498

​

​

-

​

​

5,498

​

​

-

Interest rate lock commitments and forward contracts

​

​

55

​

​

55

​

​

-

​

​

55

​

​

-

Interest receivable on securities and loans

​

​

24,598

​

​

24,598

​

​

-

​

​

24,598

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest bearing deposits

​

$

1,704,920

​

$

1,704,920

​

$

1,704,920

​

$

-

​

$

-

Interest bearing deposits

​

​

3,063,811

​

​

3,056,180

​

​

-

​

​

3,056,180

​

​

-

Securities sold under repurchase agreements

​

​

36,657

​

​

36,657

​

​

-

​

​

36,657

​

​

-

Other short-term borrowings

​

​

20,000

​

​

20,000

​

​

-

​

​

20,000

​

​

-

Junior subordinated debentures

​

​

25,773

​

​

21,444

​

​

-

​

​

21,444

​

​

-

Subordinated debentures

​

​

59,467

​

​

54,533

​

​

-

​

​

54,533

​

​

-

Interest rate swap and rate cap agreements

​

​

3,187

​

​

3,187

​

​

-

​

​

3,187

​

​

-

Interest payable on deposits and borrowings

​

​

3,871

​

​

3,871

​

​

-

​

​

3,871

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

Carrying

​

Fair

​

​

​

​

​

​

​

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

​

$

55,534

​

$

55,534

​

$

55,534

​

$

-

​

$

-

Interest earning deposits with financial institutions

​

​

44,611

​

​

44,611

​

​

44,611

​

​

-

​

​

-

Securities available-for-sale

​

​

1,192,829

​

​

1,192,829

​

​

169,574

​

​

1,007,926

​

​

15,329

FHLBC and FRBC stock

​

​

33,355

​

​

33,355

​

​

-

​

​

33,355

​

​

-

Loans held-for-sale

​

​

1,322

​

​

1,322

​

​

-

​

​

1,322

​

​

-

Net loans

​

​

3,998,689

​

​

3,876,381

​

​

-

​

​

-

​

​

3,876,381

Interest rate swap and rate cap agreements

​

​

5,302

​

​

5,302

​

​

-

​

​

5,302

​

​

-

Interest receivable on securities and loans

​

​

27,159

​

​

27,159

​

​

-

​

​

27,159

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest bearing deposits

​

$

1,834,891

​

$

1,834,891

​

$

1,834,891

​

$

-

​

$

-

Interest bearing deposits

​

​

2,735,855

​

​

2,726,223

​

​

-

​

​

2,726,223

​

​

-

Securities sold under repurchase agreements

​

​

26,470

​

​

26,470

​

​

-

​

​

26,470

​

​

-

Other short-term borrowings

​

​

405,000

​

​

405,000

​

​

-

​

​

405,000

​

​

-

Junior subordinated debentures

​

​

25,773

​

​

20,361

​

​

-

​

​

20,361

​

​

-

Subordinated debentures

​

​

59,382

​

​

47,982

​

​

-

​

​

47,982

​

​

-

Interest rate swap and rate cap agreements

​

​

8,324

​

​

8,324

​

​

-

​

​

8,324

​

​

-

Interest rate lock commitments and forward contracts

​

​

10

​

​

10

​

​

-

​

​

10

​

​

-

Interest payable on deposits and borrowings

​

​

2,962

​

​

2,962

​

​

-

​

​

2,962

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
 12 Months Ended
Dec. 31, 2024
Derivative Excluding Mortgage Banking Derivatives  
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions  
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions

Note 19: Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions

​

Risk Management Objective of Using Derivatives

​

The Company is exposed to certain risk arising from both its business operations and economic conditions.  The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments.  Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.  The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loan portfolio.  

​

Cash Flow Hedges of Interest Rate Risk

​

The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. The aggregate fair value of the swaps are recorded in other assets or other liabilities with changes in fair value recorded in other comprehensive income, net of tax.  The amount included in other comprehensive income would be reclassified to current earnings should all or a portion of the hedge no longer be considered effective.  For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest income or interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are received on the variable rate loan pools or paid on the Company’s fixed-rate borrowings.

​

Interest rate swaps with notional amounts totaling $300.0 million as of both December 31, 2024 and 2023, were designated as cash flow hedges of certain variable rate commercial and commercial real estate loan pools.  Each of these hedges were executed to pay variable and receive fixed rate cash flows.  Each of these hedges was determined to be effective during all periods presented and the Company expects the hedges to remain effective during the remaining terms of the swaps.  

​

An interest rate swap with a notional amount of $25.8 million as of December 31, 2024 and 2023, is designated as a cash flow hedge of junior subordinated debentures and was executed to pay fixed and receive variable rate cash flows.  The hedge was determined to be effective during all periods presented and the Company expects the hedge to remain effective during the remaining terms of the swap.

​

​

​

During the next twelve months, the Company estimates that an additional $1.5 million will be reclassified as an increase to interest expense and an additional $404,000 will be reclassified as an increase to interest income.  

​

Non-designated Hedges

​

Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers.  The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. The notional amounts of interest rate swaps with its loan customers as of December 31, 2024 and 2023 were $121.2 million and $104.8 million, respectively. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions.  As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings.

​

At December 31, 2024, the Company had $2.3 million of cash collateral pledged with one correspondent financial institution and held $5.2 million of cash pledged from two correspondent financial institutions to support the interest rate swap activity during 2024. At December 31, 2023, the Company had $7.3 million of cash collateral pledged with two correspondent financial institutions and held $4.1 million of cash pledged from one correspondent financial institution to support the interest rate swap activity during 2023. No investment securities were required to be pledged to any correspondent financial institution during 2024 or 2023. The Company offsets derivative assets and liabilities that are subject to a master netting arrangement.

​

The Company also grants mortgage loan interest rate lock commitments to borrowers, subject to normal loan underwriting standards.  The interest rate risk associated with these loan interest rate lock commitments is managed with contracts for future deliveries of loans as well as selling forward mortgage-backed securities contracts.  Loan interest rate lock commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The notional amount of these commitments at December 31, 2024 and 2023 were $8.7 million and $8.4 million, respectively.  Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking revenue.  Fair values are estimated based on observable changes in mortgage interest rates including mortgage-backed securities prices from the date of the commitment.

​

​

​

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheets as of December 31, were as follows:

​

Fair Value of Derivative Instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

No. of Trans.

​

Notional Amount $

​

Balance Sheet Location

Fair Value $

​

Balance Sheet Location

Fair Value $

Derivatives designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swap agreements

5

​

325,774

​

Other Assets

3,823

​

Other Liabilities

1,512

Total derivatives designated as hedging instruments

​

​

​

​

​

3,823

​

​

1,512

​

​

​

​

​

​

​

​

​

​

Derivatives not designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swaps with commercial loan customers and rate cap

13

​

154,137

​

Other Assets

1,675

​

Other Liabilities

1,675

Interest rate lock commitments and forward contracts

30

​

8,667

​

Other Assets

55

​

Other Liabilities

-

Other contracts

5

​

58,259

​

Other Assets

28

​

Other Liabilities

5

Total derivatives not designated as hedging instruments

​

​

​

​

​

1,758

​

​

1,680

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

No. of Trans.

​

Notional Amount $

​

Balance Sheet Location

Fair Value $

​

Balance Sheet Location

Fair Value $

Derivatives designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swap agreements

5

​

325,774

​

Other Assets

2,576

​

Other Liabilities

5,598

Total derivatives designated as hedging instruments

​

​

​

​

​

2,576

​

​

5,598

​

​

​

​

​

​

​

​

​

​

Derivatives not designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swaps with commercial loan customers

17

​

104,777

​

Other Assets

2,726

​

Other Liabilities

2,726

Interest rate lock commitments and forward contracts

24

​

8,375

​

Other Assets

(10)

​

Other Liabilities

-

Other contracts

4

​

44,790

​

Other Assets

89

​

Other Liabilities

-

Total derivatives not designated as hedging instruments

​

​

​

​

​

2,805

​

​

2,726

​

Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting

​

The fair value and cash flow hedge accounting related to derivatives covered under ASC Subtopic 815-20 impacted Accumulated Other Comprehensive Income (“AOCI”) and the Income Statement.  The gain recognized in AOCI on derivatives totaled $1.7 million as of December 31, 2024, and loss recognized in AOCI on derivatives totaled $2.2 million, and $4.2 million as of December 31, 2023, and 2022, respectively.  The amount of the loss reclassified from AOCI to interest expense on the income statement totaled $6.0 million, $5.6 million and $373,000 for the years ended December 31, 2024, 2023, and 2022, respectively.

​

Credit-risk-related Contingent Features

​

For derivative transactions involving counterparties who are lending customers of the Company, the derivative credit exposure is managed through the normal credit review and monitoring process, which may include collateralization, financial covenants and/or financial guarantees of affiliated parties.  Agreements with such customers require that losses associated with derivative transactions receive payment priority from any funds recovered should a customer default and ultimate disposition of collateral or guarantees occur.

​

Credit exposure to broker/dealer counterparties is managed through agreements with each derivative counterparty that require collateralization of fair value gains owed by such counterparties.  Some small degree of credit exposure exists due to timing differences between when a gain may occur and the subsequent point in time that collateral is delivered to secure that gain.  This is monitored by the Company and procedures are in place to minimize this exposure.  Such agreements also require the Company to collateralize counterparties in circumstances wherein the fair value of the derivatives result in loss to the Company.

​

​

​

Other provisions of such agreements define certain events that may lead to the declaration of default and/or the early termination of the derivative transaction(s), including the following:

●if the Company either defaults or is capable of being declared in default on any of its indebtedness (exclusive of deposit obligations);
●if a merger occurs that materially changes the Company's creditworthiness in an adverse manner; or
●if certain specified adverse regulatory actions occur, such as the issuance of a Cease and Desist Order, or citations for actions considered Unsafe and Unsound or that may lead to the termination of deposit insurance coverage by the Federal Deposit Insurance Corporation.
v3.25.0.1
Preferred Stock
 12 Months Ended
Dec. 31, 2024
Preferred Stock.  
Preferred Stock

​

Note 20: Preferred Stock

​

Preferred stock of 300,000 shares is authorized but unissued as of December 31, 2024 and 2023.  

​
v3.25.0.1
Parent Company Condensed Financial Information
 12 Months Ended
Dec. 31, 2024
Parent Company Condensed Financial Information  
Parent Company Condensed Financial Information

Note 21: Parent Company Condensed Financial Information

​

Condensed Balance Sheets for the years ended December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

 

Assets

​

​

​

​

​

​

​

Noninterest bearing deposit with bank subsidiary

​

$

78,007

​

$

36,686

​

Investment in subsidiaries

​

 

671,894

​

 

620,663

​

Other assets

​

 

7,457

​

 

6,183

​

Total assets

​

$

757,358

​

$

663,532

​

​

​

​

​

​

​

​

​

Liabilities and Stockholders’ Equity

​

​

​

​

​

​

​

Junior subordinated debentures

​

$

25,773

​

$

25,773

​

Subordinated debt

​

 

59,467

​

 

59,382

​

Senior notes

​

​

-

​

​

-

​

Notes payable

​

​

-

​

​

-

​

Other liabilities

​

 

1,084

​

 

1,096

​

Stockholders’ equity

​

 

671,034

​

 

577,281

​

Total liabilities and stockholders' equity

​

$

757,358

​

$

663,532

​

​

Condensed Statements of Income for the years ended December 31 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Operating Income

​

​

​

​

​

​

​

​

​

Cash dividends received from subsidiaries

​

$

55,000

​

$

65,000

​

$

40,000

Other income

​

 

59

​

 

67

​

 

29

Total operating income

​

 

55,059

​

 

65,067

​

 

40,029

Operating Expenses

​

​

​

​

​

​

​

​

​

Junior subordinated debentures

​

 

1,127

​

 

1,095

​

 

1,136

Subordinated debt

​

​

2,185

​

​

2,185

​

​

2,185

Senior notes

​

​

-

​

​

2,408

​

​

2,682

Notes payable

​

 

-

​

 

87

​

 

385

Other expenses

​

 

6,209

​

 

5,947

​

 

5,086

Total operating expense

​

 

9,521

​

 

11,722

​

 

11,474

Income before income taxes and equity in undistributed net income of subsidiaries

​

 

45,538

​

 

53,345

​

 

28,555

Income tax benefit

​

 

(2,644)

​

 

(3,309)

​

 

(3,216)

Income before equity in undistributed net income of subsidiaries

​

 

48,182

​

 

56,654

​

 

31,771

Equity in undistributed net income of subsidiaries

​

 

37,082

​

 

35,075

​

 

35,634

Net income available to common stockholders

​

$

85,264

​

$

91,729

​

$

67,405

​

​

​

Condensed Statements of Cash Flows for the years ended December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Cash Flows from Operating Activities

​

​

​

​

​

​

​

​

​

Net Income

​

$

85,264

​

$

91,729

​

$

67,405

Adjustments to reconcile net income to net cash from operating activities:

​

​

​

​

​

​

​

​

​

Equity in undistributed net income of subsidiaries

​

 

(37,082)

​

 

(35,075)

​

 

(35,634)

Provision for deferred tax (benefit) expense

​

 

(152)

​

 

(513)

​

 

91

Change in taxes payable

​

 

(250)

​

 

794

​

 

(4,694)

Change in other assets

​

 

12

​

 

(43)

​

 

12

Stock-based compensation

​

 

3,914

​

 

3,603

​

 

2,960

Other, net

​

 

76

​

 

575

​

 

(2,753)

Net cash provided by operating activities

​

 

51,782

​

 

61,070

​

 

27,387

​

​

​

​

​

​

​

​

​

​

Cash Flows from Investing Activities

​

​

​

​

​

​

​

​

​

Cash paid for acquisition, net of cash and cash equivalents retained

​

 

-

​

 

-

​

 

-

Net cash provided by (used in) investing activities

​

 

-

​

 

-

​

 

-

​

​

​

​

​

​

​

​

​

​

Cash Flows from Financing Activities

​

​

​

​

​

​

​

​

​

Dividend paid on common stock

​

​

(9,413)

​

​

(8,946)

​

​

(8,877)

Purchases of treasury stock

​

 

(1,048)

​

 

(605)

​

 

(455)

Repayment of term note

​

​

-

​

​

(9,000)

​

​

(4,000)

Repayment of senior note

​

​

-

​

​

(45,000)

​

​

-

Net cash used in financing activities

​

 

(10,461)

​

 

(63,551)

​

 

(13,332)

Net change in cash and cash equivalents

​

 

41,321

​

 

(2,481)

​

 

14,055

Cash and cash equivalents at beginning of year

​

 

36,686

​

 

39,167

​

 

25,112

Cash and cash equivalents at end of year

​

$

78,007

​

$

36,686

​

$

39,167

​

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Employee Benefit Plans  
Employee Benefit Plans

Note 22: Employee Benefit Plans

​

Old Second Bancorp, Inc. Employees 401(k) Savings Plan and Trust

The Company sponsors a qualified, tax-exempt defined contribution plan (the “401(k) Plan”) qualifying under section 401(k) of the Internal Revenue Code.  Virtually all employees are eligible to participate after meeting certain age and service requirements. Eligible employees are permitted to contribute up to a dollar limit set by law of their compensation to the 401(k) Plan.  For the years ended December 31, 2024, 2023 and 2022, a discretionary match equal to 100% of the first 3% and 50% of the next 2% was made to participants of the 401(k) Plan.  Participants are 100% vested in the discretionary matching contributions.  Participants can choose between several different investment options under the 401(k) Plan, including shares of the Company’s common stock.  An additional component of the 401(k) Plan arrangement allows the Company to make annual discretionary profit sharing contributions based on the Company’s profitability in a given year, and on each participant’s annual compensation.  The Company elected not to make a discretionary profit sharing contribution for the years end December 31, 2024, 2023 and 2022.

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The total expense relating to the 401(k) Plan was approximately $2.3 million in 2024, $2.2 million in 2023 and $2.0 million in 2022.

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Old Second Bancorp, Inc. Voluntary Deferred Compensation Plan for Executives and Directors

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The Company sponsors a deferred compensation plan, which is a means by which certain executives and directors may voluntarily defer a portion of their salary, bonus and directors fees, as applicable.  This plan is an unfunded, nonqualified deferred compensation arrangement.  Company obligations under this arrangement of $8.0 million and $5.9 million as of December 31, 2024 and 2023, respectively, are included in other liabilities.

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v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Information  
Segment Information

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Note 23: Segment Information

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Various identifiable operating segments provide a variety of revenue streams including loans, deposits, and wealth management services. The Company’s Chief Operating Decision Maker (CODM) is the Chief Financial Officer.

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Through our wholly-owned subsidiary, Old Second National Bank, we offer a wide variety of community banking services primarily throughout the Chicagoland area, including commercial and consumer lending and deposit services, and a wide array of wealth management services. The accounting policies for the services discussed here are the same as those described in Note 1: Summary of Significant Accounting Policies.  We earn interest income on portfolio loans, fee income on loan originations and commitments, fees charged on certain deposit accounts, as well as fees related to wealth management services.

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Although information is available on each of the individual revenue streams, the CODM manages, allocates resources, and evaluates performance on a company-wide basis. The CODM uses consolidated net income to evaluate the financial performance of the Company’s business along with budget to actual results in assessing the Company’s performance and in determining the allocation of resources whether it be to reinvest in the Company or deploy capital in order to maximize shareholder value. The chief operating decision maker uses consolidated net income and return on average assets to benchmark the Company against competitors as well as against prior periods.

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On a regular basis the CODM is provided consolidated income and expense, assets, liabilities, and equity, in the same manner that is presented publicly on the Consolidated Statements of Income and Consolidated Balance Sheets, to assess performance and allocate resources throughout the Company. Further, additional internal financial information is provided to the CODM in order to assess credit quality in each of our lending segments. Accordingly, the Company has determined that it has only one reportable segment, Community Banking.

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v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 85,264 $ 91,729 $ 67,405
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 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
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management Strategy And Governance [Abstract]  
Cybersecurity Risk Management Processes For Assessing Identifying And Managing Threats [Text Block]

Risk Management and Strategy

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Cybersecurity risk is the risk of exposure to harm or loss resulting from misuse or abuse of technology by malicious actors. Cybersecurity risk is an important and continuously evolving focus for us as significant resources are devoted to protecting and enhancing the security of computer systems, software, networks, storage devices, and other technology assets. Security efforts are designed to protect against, among other things, cybersecurity attacks by unauthorized parties attempting to obtain access to confidential information, destroy data, disrupt or degrade service, sabotage systems or cause other damage. We recognize the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of our data.  We have experienced, and expect that we will continue to experience, a higher volume and complexity of cyber-attacks. We have implemented precautionary measures and controls reasonably designed that follow the National Institute of Standards and Technology (NIST) and other industry standards to address this increased risk.

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Managing Material Risks & Integrated Overall Risk Management

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We have strategically integrated cybersecurity risk management into our broader risk management framework to promote a company-wide culture of cybersecurity risk management. This integration ensures that cybersecurity considerations are an integral part of our decision-making processes at every level. Our risk management team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our strategic objectives, business environment and operational needs.

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Engage Third-parties on Risk Management

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Ongoing business expansions may expose us to potential new threats as well as expanded regulatory scrutiny including the introduction of new cybersecurity requirements. We continue to make significant investments in enhancing our cyber defense-in-depth capabilities and to strengthen our partnerships with the appropriate government and law enforcement agencies and other businesses in order to understand the full spectrum of cybersecurity risks in the operating environment, enhance defenses and improve resiliency against cybersecurity threats.  Recognizing the complexity and evolving nature of cybersecurity threats, we engage with a range of external experts, including cybersecurity assessors, consultants, and auditors in evaluating and testing our risk management systems. These partnerships enable us to leverage specialized knowledge and insights, ensuring our cybersecurity strategies and processes. Our collaboration with these third-parties includes regular audits, threat assessments, and consultation on security enhancements.

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Oversee Third-party Risk

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Third parties with which the Company does business or that facilitate the organization’s business activities (e.g., vendors, supply chain, exchanges, clearing houses, etc.) are also sources of cybersecurity risk. Third-party cybersecurity incidents such as system breakdowns or failures, misconduct by the employees of such parties, or cyber-attacks, including ransomware and supply-chain compromises, could affect their ability to deliver a product or service or result in lost or compromised information. Because we are aware of the risks associated with third-party service providers, we implement stringent processes to oversee and manage these risks. We conduct thorough security assessments of all third-party providers before engagement and maintain ongoing monitoring to ensure compliance with our cybersecurity standards. Monitoring includes quarterly assessments by our Chief Information Security Officer (“CISO”) and on an ongoing basis by our security engineers. This approach is designed to mitigate risks related to data breaches or other security incidents originating from third-parties.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

We have strategically integrated cybersecurity risk management into our broader risk management framework to promote a company-wide culture of cybersecurity risk management. This integration ensures that cybersecurity considerations are an integral part of our decision-making processes at every level. Our risk management team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our strategic objectives, business environment and operational needs.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight And Identification Processes [Flag] true
Cybersecurity Risk Materially Affected Or Reasonably Likely To Materially Affect Registrant [Flag] false
Cybersecurity Risk Board Of Directors Oversight [Text Block]

Our Board of Directors is acutely aware of the critical nature of managing risks associated with cybersecurity threats. Our Board has established robust oversight mechanisms to ensure effective governance in managing risks associated with cybersecurity threats because we recognize the significance of these threats to our operational integrity and stakeholder confidence.

Board of Directors Oversight

Our Information Technology Steering Committee (“ITSC”) is central to the Board’s oversight of cybersecurity risks, which are incorporated into our overall risk management program overseen by our Board Risk Committee. These Committees meet no less than quarterly and are composed of board members with diverse expertise including risk management, technology, and finance, equipping them to oversee cybersecurity risks effectively. While, as of the date of this Annual Report on Form 10-K, we have not encountered cybersecurity challenges that have materially impaired our operations or financial standing, our systems and those of our customers and third-party service providers are under constant threat and it is possible that we could experience a significant event in the future.

Reporting to Board of Directors

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The CISO, in his capacity, regularly informs the ITSC and Board Risk Committee of all aspects related to cybersecurity risks and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks we face. Furthermore, significant cybersecurity matters and strategic risk management decisions are escalated to the Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues.
Cybersecurity Risk Board Committee Or Subcommittee Responsible For Oversight [Text Block] Information Technology Steering Committee
Cybersecurity Risk Process For Informing Board Committee Or Subcommittee Responsible For Oversight [Text Block] The Chief Risk Officer (“CRO”) and the CISO play a pivotal role in informing the ITSC and Board Risk Committee on cybersecurity risks. Comprehensive briefings are presented to the ITSC and Board Risk Committee on a regular basis, with a minimum frequency of quarterly. These briefings encompass a broad range of topics, including:
●Maturity of our cyber landscape commensurate to inherent risks of environment;  
●Emerging threats;
●Status of ongoing cybersecurity initiatives and strategies;
●Incident reports and learnings from any cybersecurity events;
●Compliance with regulatory requirements and industry standards; and
●Results of internal and external testing of cybersecurity controls.
The CISO, in his capacity, regularly informs the ITSC and Board Risk Committee of all aspects related to cybersecurity risks and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks we face. Furthermore, significant cybersecurity matters and strategic risk management decisions are escalated to the Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues
Cybersecurity Risk Role Of Management [Text Block]

Management’s Role Managing Risk

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While the ITSC and our Board of Directors to which it reports oversees cybersecurity risk management, management is responsible for the day-to-day cybersecurity risk management processes. The Chief Risk Officer (“CRO”) and the CISO play a pivotal role in informing the ITSC and Board Risk Committee on cybersecurity risks. Comprehensive briefings are presented to the ITSC and Board Risk Committee on a regular basis, with a minimum frequency of quarterly. These briefings encompass a broad range of topics, including:

​

●Maturity of our cyber landscape commensurate to inherent risks of environment;  
●Emerging threats;
●Status of ongoing cybersecurity initiatives and strategies;
●Incident reports and learnings from any cybersecurity events;
●Compliance with regulatory requirements and industry standards; and
●Results of internal and external testing of cybersecurity controls.

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In addition to our scheduled meetings, CISO maintains an ongoing dialogue with management and the Board of Directors regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity domain, ensuring the Board’s oversight is proactive and responsive. The CISO actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives. This involvement ensures that cybersecurity considerations are integrated into our broader strategic objectives. The CISO conducts a quarterly review of our cybersecurity posture and the effectiveness of our risk management strategies. This review helps in identifying areas for improvement and ensuring the alignment of cybersecurity efforts with the overall risk management framework.

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Risk Management Personnel

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Primary responsibility for assessing, monitoring and managing our cybersecurity risks rests with the CISO. With over 30 years of experience in the field of cybersecurity and operational risk, he brings a wealth of expertise to his role. His background includes extensive experience as an enterprise CISO and holds several certifications including ISACA’s, CISM and CRISC and is well-recognized within the industry. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our CISO oversees our governance programs, tests our compliance with standards, remediates known risks, and leads our employee cybersecurity training program.

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The CISO is responsible for identifying technology and cybersecurity risks and is responsible for the controls to manage threats. To help safeguard the confidentiality, integrity and availability of our infrastructure, resources and information, we maintain an Information Security Program designed to prevent, detect, and respond to cyberattacks. The ITSC and Board of Directors is periodically provided with updates on the Information Security Program, recommended changes, cybersecurity policies and practices, ongoing efforts to improve security, as well as our efforts regarding significant cybersecurity events.

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The CISO manages the Security Operations Center (SOC) and is responsible for implementing and maintaining controls designed to detect and defend us against cyber-attacks and includes a dedicated function for incident response and ongoing monitoring for cybersecurity threats and vulnerabilities, including those among the Bank’s third-party suppliers. The CISO conducts a quarterly review of our inherent risk posture against the effectiveness of our cyber risk management strategies. This review helps in measuring the effectiveness of controls and identifying areas for improvement ensuring cyber controls is commensurate with our inherent risk profile and the Board’s risk appetite.

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Monitoring Cybersecurity Incidents

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The CISO continually monitors for the latest developments in cybersecurity, including potential threats and innovative risk management techniques. We deploy defense-in-depth safeguards that are designed to protect our information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, access controls, and ongoing vulnerability assessments as well as ongoing acquisition of knowledge crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. The CISO implements and oversees processes for the regular monitoring of our information systems. This includes the deployment of advanced security measures and regular system audits to identify potential vulnerabilities. In the event of a cybersecurity incident, the CISO is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and prevent escalation of any loss or damage from the cybersecurity incident.  The Incident Response Plan is continually updated in response to an ever-changing threat landscape to provide long-term strategies for remediation, prevention of future incidents and resiliency to all types of threats. The incident response teams (i) include subject matter experts to address cyber threats and (ii) includes representatives from the accounting team to monitor threat escalation and identify events that may warrant Board notification and a Form 8-K cybersecurity notice.

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Reporting to Board of Directors

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The CISO, in his capacity, regularly informs the ITSC and Board Risk Committee of all aspects related to cybersecurity risks and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks we face. Furthermore, significant cybersecurity matters and strategic risk management decisions are escalated to the Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues.
Cybersecurity Risk Management Positions Or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions Or Committees Responsible [Text Block] CISO
Cybersecurity Risk Management Expertise Of Management Responsible [Text Block]

Primary responsibility for assessing, monitoring and managing our cybersecurity risks rests with the CISO. With over 30 years of experience in the field of cybersecurity and operational risk, he brings a wealth of expertise to his role. His background includes extensive experience as an enterprise CISO and holds several certifications including ISACA’s, CISM and CRISC and is well-recognized within the industry. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our CISO oversees our governance programs, tests our compliance with standards, remediates known risks, and leads our employee cybersecurity training program.

​

The CISO is responsible for identifying technology and cybersecurity risks and is responsible for the controls to manage threats. To help safeguard the confidentiality, integrity and availability of our infrastructure, resources and information, we maintain an Information Security Program designed to prevent, detect, and respond to cyberattacks. The ITSC and Board of Directors is periodically provided with updates on the Information Security Program, recommended changes, cybersecurity policies and practices, ongoing efforts to improve security, as well as our efforts regarding significant cybersecurity events.

​

The CISO manages the Security Operations Center (SOC) and is responsible for implementing and maintaining controls designed to detect and defend us against cyber-attacks and includes a dedicated function for incident response and ongoing monitoring for cybersecurity threats and vulnerabilities, including those among the Bank’s third-party suppliers. The CISO conducts a quarterly review of our inherent risk posture against the effectiveness of our cyber risk management strategies. This review helps in measuring the effectiveness of controls and identifying areas for improvement ensuring cyber controls is commensurate with our inherent risk profile and the Board’s risk appetite.
Cybersecurity Risk Process For Informing Management Or Committees Responsible [Text Block]

The CISO continually monitors for the latest developments in cybersecurity, including potential threats and innovative risk management techniques. We deploy defense-in-depth safeguards that are designed to protect our information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, access controls, and ongoing vulnerability assessments as well as ongoing acquisition of knowledge crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. The CISO implements and oversees processes for the regular monitoring of our information systems. This includes the deployment of advanced security measures and regular system audits to identify potential vulnerabilities. In the event of a cybersecurity incident, the CISO is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and prevent escalation of any loss or damage from the cybersecurity incident.  The Incident Response Plan is continually updated in response to an ever-changing threat landscape to provide long-term strategies for remediation, prevention of future incidents and resiliency to all types of threats. The incident response teams (i) include subject matter experts to address cyber threats and (ii) includes representatives from the accounting team to monitor threat escalation and identify events that may warrant Board notification and a Form 8-K cybersecurity notice.
Cybersecurity Risk Management Positions Or Committees Responsible Report To Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Summary of Significant Accounting Policies  
Nature of Operations

Nature of Operations - Old Second Bancorp, Inc. (the “Company”) is a corporation organized under the laws of the State of Delaware in 1981 that serves as the bank holding company for its wholly-owned subsidiary bank, Old Second National Bank.  Old Second National Bank (the “Bank”) is a national banking association headquartered in Aurora, Illinois, that operates through 53 banking centers located in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois.  The Bank is a full-service banking business, offering a broad range of deposit products, trust and wealth management services, and lending services, including commercial, residential and consumer loans. We also offer a full complement of electronic banking services, such as online and mobile banking and corporate cash management products.

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The consolidated financial statements of the Company include the financial statements of the Bank and its wholly-owned subsidiaries, River Street Advisors, LLC, an investment advisory/management service company, Old Second Affordable Housing Fund, L.L.C., which provides down payment assistance for home ownership to qualified individuals, and Station I, LLC, Station II, LLC, and Station III, LLC, which hold property acquired by the Bank through foreclosure or in the ordinary course of collecting a debt previously contracted with borrowers.  The Company uses the accrual basis of accounting for financial reporting purposes.  Certain amounts in prior year financial statements have been reclassified to conform to the 2024 presentation.
Use of Estimates

Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.  Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates.
Principles of Consolidation

Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions.  Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements.
Segment Reporting

Segment Reporting –The Company has one operating segment, which is community banking.  While our management monitors the revenue streams of our various products and services, the Company’s operations are managed and financial performance is evaluated on a company-wide basis.  Accordingly, all of the Company’s operations are considered to be aggregated in one reportable segment.
Concentration of Credit Risk

Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois.  These banking centers surround or are within the Chicago metropolitan area.  Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within this market.  There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector.
Cash and Cash Equivalents

Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-earning deposits in other financial institutions, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell.  The classification of cash and cash equivalents includes those assets held in the form of cash or liquid instruments with an original maturity of 90 days or less.
Securities

Securities – All of the Company’s securities are classified as available-for-sale, and are carried at fair value, with unrealized gains or losses, net of tax, recorded in stockholders’ equity as a separate component of accumulated other comprehensive (loss) income.

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Realized securities gains or losses, which are reported in securities losses, net, in the Consolidated Statements of Income, are recognized on a trade date basis and are determined using the specific identification method.  Discounts are accreted into interest income over the estimated life of the related security and premiums are amortized into income to the earlier of the call date or estimated life of the related security using the level yield method.

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The Company has made a policy election to exclude accrued interest income from the amortized cost basis of available-for-sale debt securities and report accrued interest separately in other assets in the Consolidated Balance Sheets. A debt security is placed on nonaccrual status at the time we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest for a security placed on nonaccrual is reversed against interest income. Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable.

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For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security, prior to the recovery of its amortized cost basis. If either of the above criteria is met, the security’s amortized cost basis is written down to fair value through earnings. When the criteria above is not met, we evaluate whether the decline in fair value is the result of credit losses or other factors. In making this assessment, we review changes to the rating of the security by a rating agency, an increase in defaults on the underlying collateral, and the extent to which the securities are issued by the federal government or its agencies, including the amount of the guarantee issued by those agencies, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded through earnings, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive (loss) income, net of taxes.  

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Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Federal Home Loan Bank and Federal Reserve Bank Stock

Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“FRBC”).  Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership.  The FHLBC is a governmental sponsored entity.  The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment.  FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts.  FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.  The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC.  The Company records dividends in income on the ex-dividend date.  FRBC stock is redeemable at par, and therefore fair value equals cost.
Loans Held-for-Sale

Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market.  Residential mortgage loans eligible for sale in the secondary market are carried at fair market value.  The fair value of loans held-for-sale is determined using quoted secondary market prices on similar loans.

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Mortgage loans held for sale are generally sold with servicing rights retained.  The carrying value of mortgage loans is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related sold loan.
Loans

Loans – Loans held-for-investment are carried at the principal amount outstanding, net of premiums and discounts associated with acquisition date fair value adjustments on acquired loans, deferred loan fees and costs, and any direct principal charge-offs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets in the Consolidated Balance Sheets.

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Interest income on loans is accrued based on principal amounts outstanding.  Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred and amortized over the life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment.  Other related fees are recognized as fee income when earned.

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Past Due and Nonaccrual Loans

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Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Generally, loans are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed.  Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash basis method, interest income is recorded when the payment is received in cash. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due.

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Purchase Credit Deteriorated (PCD) Loans

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Purchased credit deteriorated loans (“PCD loans”) are purchased loans, that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on an individual loan basis from an evaluation of each specific loan and its related credit metrics. The sum of the loan’s purchase price and initial allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into interest income over the life of the loan.  Expected cash flows in excess of the amount paid are recorded as interest income over the remaining life of the loans (accretable yield).  The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

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Subsequent changes to the allowance for credit losses are recorded through provision for credit losses. Over the life of the loan, expected cash flows continue to be estimated.  If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for credit losses.  If the present value of expected cash flows is greater than the carrying value, it is recognized as part of future interest income.

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Non-Purchase Credit Deteriorated (Non-PCD) Loans

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Non-purchased credit deteriorated loans (“non-PCD loans”) are purchased loans, that, as of the date of acquisition, have not experienced a significant deterioration in credit quality since origination, as determined by the Company’s assessment. An allowance for credit losses is determined using the same methodology as other loans held for investment, and no allowance is established as a Day One fair valuation allowance. The sum of the loan’s purchase price net of any related credit and interest rate premium or discount becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a discount or premium, which is comprised of an interest component and a credit component, and is accreted or amortized into interest income over the life of the loan.  Expected cash flows in excess of the amount paid are recorded as interest income over the remaining life of the loans (accretable yield).  The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

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A subsequent Day Two adjustment on non-PCD loans is recorded to the allowance for credit losses immediately after acquisition, which reflects the future estimated lifetime credit losses on the non-PCD loans, recorded through the provision for credit losses. Over the life of the loan, expected cash flows continue to be estimated.  If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for credit losses.  If the present value of expected cash flows is greater than the carrying value, it is recognized as part of future interest income.
Allowance for Credit Losses ("ACL")

Allowance for Credit Losses (“ACL”)

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ACL on Loans

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The ACL on loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans.  The Company’s estimate of the ACL for loans reflects losses expected over the remaining contractual life of the loans. The contractual term does not consider extensions, renewals or modifications.

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Determination of the ACL on loans is inherently subjective in nature since it requires significant estimates and management judgment, and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses.  While management utilizes its best judgment and information available, the ultimate adequacy of the ACL is dependent upon a variety of factors beyond the Company’s direct control, including, but not limited to, the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience for prior periods that are determined to have like characteristics with the current period such as pre-recessionary, recessionary, or recovery periods, portfolio growth and concentration risk, management and staffing changes, the interpretation of loan risk classifications by regulatory authorities and other credit market factors.  While each component of the ACL on loans is determined separately, the entire balance is available for the entire loan portfolio.

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The ACL methodology consists of measuring loans on a collective (pool) basis when similar risk characteristics exist.  The type of credit composition and risk characteristics of each portfolio segment are as follows:
Lease financing receivables

Lease financing receivables – Lease financing receivables are subject to underwriting standards and processes similar to commercial loans.  These loans are often secured by equipment or transportation assets, and are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower.  The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors.   The Company’s historical loss rates are utilized from the prior periods which align to the current unemployment projections for the next twelve months.  
Premises and Equipment

Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization.  Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets.  Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals.  Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years or longer under limited circumstances; and furniture and equipment, 3 to 10 years.  Fixed Assets Held for Sale totaling $1.4 million are reported within other assets in the Consolidated Balance Sheets. Gains and losses on dispositions are included in other noninterest expense in the Consolidated Statements of Income.  Maintenance and repairs are charged to operating expenses as incurred, while improvements that conform to definitions of tangible property improvements are capitalized and depreciated over the estimated remaining life.

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Whenever events or changes in circumstances dictate, the Company tests its long-lived assets for impairment by determining whether the sum of the estimated undiscounted future cash flows attributable to a long-lived asset or asset group is less than the carrying value of the long-lived asset or asset group through a probability-weighted approach.  In the event the carrying amount of the long-lived asset or asset group is not recoverable, an impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value.

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All of the Company’s leases are classified as operating leases at inception. The Company leases certain branch locations and equipment; leased equipment is primarily Automated Teller Machines (ATMs).  The Company records leases on the balance sheet in the form of a lease liability at the present value of future minimum payments under the terms of the lease and as a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset if it should arise. The discount rate used in determining the lease liability is based on the incremental borrowing rates the Company could obtain for similar loans as of the date of the commencement or renewal. The Company does not record short-term leases with an initial lease term of one year or less on the Consolidated Balance Sheets.

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At lease inception, the Company determines the lease term by considering the noncancelable lease term and all option renewal periods the Company deems reasonably certain to renew. The lease term is also used to calculate the straight-line basis. Leasehold improvements are amortized over the shorter of the useful life or the estimated lease term.

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Operating lease expense consists of a single lease cost allocated over the remaining lease term on a straight-line basis, and any impairment of the right-of-use asset.  Lease expense is included in occupancy, furniture, and equipment on the Company’s Consolidated Statements of Income. The Company’s variable lease expense includes items such as common area maintenance, utilities, parking, and property taxes, which are reported within occupancy, furniture, and equipment on the Consolidated Statements of Income.
Other Real Estate Owned ("OREO")

Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at the fair value of the property when acquired, less estimated costs to sell, establishing a new cost basis.  Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement.  Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the ACL.  Any reduction in OREO carrying value within 90 days of transfer to OREO would be charged to the ACL.  If the fair value of the property when acquired, less estimated costs to sell, is greater than the net book value of the loan, a gain on transfer is recorded. If a determination is made more than 90 days after the transfer to OREO that the fair value for the OREO property has declined, an OREO valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell.  Such declines are included in other noninterest expense in the Consolidated Statements of Income.  A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer of the loan to OREO.  Operating costs after acquisition are also expensed.

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Mortgage Servicing Rights ("MSRs")

Mortgage Servicing Rights (“MSRs”) – The Bank is also involved in the business of servicing mortgage loans.  Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors.  MSRs represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities.

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Mortgage loans that the Company is servicing for others aggregated to $709.1 million and $737.2 million at December 31, 2024, and 2023, respectively.  Mortgage loans that the Company is servicing for others are not included in the Consolidated Balance Sheets.  Fees received in connection with servicing loans for others are recognized as earned.  Loan servicing costs are charged to expense as incurred.

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Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained.  Servicing rights are initially recorded at fair value with the effect recorded in net gains on sales of mortgage loans in the Consolidated Statements of Income.  Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income.  The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses.

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Servicing fee income, which is included in the Consolidated Statements of Income as mortgage servicing income, is recorded for fees earned for servicing loans.  The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned.

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Under the fair value measurement method, the Company measures mortgage servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes these changes in MSRs mark to market values in the Consolidated Statements of Income.  The fair values of MSRs are subject to significant fluctuations as a result of interest rates, changes in estimated and actual prepayment speeds and default rates and losses.

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Transfers of Financial Assets – The Company accounts for transfers and servicing of financial assets in accordance with FASB ASC 860, Transfers and Servicing. Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free from conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

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Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan.

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The Company sells financial assets in the normal course of business, the majority of which are related to residential mortgage loan sales through established programs, and commercial loan sales through participation agreements. In accordance with accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses.

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When the Company sells financial assets, it may retain servicing rights and/or other interests in the financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the servicing right recognized, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests held by the Company are carried at the lower of cost or fair value, with the exception of mortgage servicing rights related to sales of residential mortgage loans, which are carried at fair value.
Bank-Owned Life Insurance ("BOLI")

Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary.  These policies are recorded as an asset on the Consolidated Balance Sheets at their cash surrender value (“CSV”) or the amount that could be realized upon immediate liquidation.  The change in CSV is recorded as an increase in cash surrender value of BOLI in the Consolidated Statements of Income in noninterest income.  In addition, insurance proceeds received, net of the original premium investment, are recorded as death benefit realized on BOLI in the Consolidated Statements of Income in noninterest income.
Goodwill and Core Deposit Intangible

Goodwill and Core Deposit Intangible – Goodwill is the excess of an acquisition’s purchase price over the fair value of identified net assets acquired in an acquisition and is evaluated at least annually for impairment.  The Company performs its annual evaluation for goodwill impairment at November 30 each year and may elect to perform a quantitative or qualitative analysis or first conduct a qualitative analysis to determine if a quantitative analysis is necessary. In addition, the Company evaluates goodwill impairment on an interim basis if events or changes in circumstances indicate the asset might be impaired.  The factors reviewed by the Company when completing a qualitative analysis include, but are not limited to, macroeconomic data, industry specific data, current market conditions, and the Company’s overall financial performance.

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The Company performed a qualitative assessment of goodwill as of November 30, 2024 which resulted in the fair value of the Company exceeding the carrying value; therefore, it was determined goodwill was not impaired at December 31, 2024.  On November 30, 2023, the Company performed a qualitative assessment of goodwill from which we concluded it was more likely than not that goodwill was not impaired as of December 31, 2023. A quantitative assessment is performed every third year as a matter of periodic practice rather than as a response to a qualitative assessment or triggering event.

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The core deposit intangible (“CDI”) is being amortized on an accelerated method over a ten year estimated useful life.   As of December 31, 2024, CDI totaled $22.0 million compared to $11.2 million at December 31, 2023.  The total CDI amount reflects the transaction with First Merchants Bank in 2024, the acquisition of West Suburban in 2021 as well as ABC Bank in 2018, and the Talmer Bank branch purchase in 2016.  Total CDI amortization expense of $2.4 million, $2.5 million, and $2.6 million was recorded in 2024, 2023, and 2022, respectively. The expected future annual amortization expense for each of the next five years (2025-2029) is approximately $4.1 million, $3.7 million, $3.3 million, $2.9 million, and $2.6 million, respectively.
Debt Issuance Costs Debt Issuance Costs – Costs associated with the issuance of debt are presented in the Consolidated Balance Sheets as a direct reduction from the carrying value of that debt liability.  The deferred issuance costs are amortized over the life of the related debt instrument, and included within the debt’s interest expense.
Loss Contingencies

Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.  Management does not believe there are such matters that will have a material effect on the financial statements.
Noninterest Income

Noninterest Income – The Company recognizes revenue when the performance obligations related to the transfer of goods or services are satisfied.  Certain obligations are satisfied at one point in time, while other obligations may be satisfied over a period of time.  Revenues are segregated based on the nature of the product or service offered. Wealth management fees, service charges on deposits and card related income are included as components of noninterest income in the Consolidated Statements of Income.

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Wealth management – includes fees generated from personal, commercial and institutional clients.  The Company also provides asset management services, cash management services and income tax reporting.  Revenue is recognized over the period of time in which these services are performed.

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Service charges on deposits – includes fees and income received by the Company for performing various services, such as deposit account maintenance fees, overdraft coverage and processing fees, stop payment charges, and other deposit account related services. Revenue is recognized based on the service agreement in place, and is recorded when the service is provided to the customer. This item is net of any service charge refunds or return charge refunds.

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Card related income – includes interchange fees earned on debit cards and credit cards, ATM/ITM related fee income, and gift card related income.  Annual fees and interest income on card-related products are recognized within interest income in accordance with ASC 310.  The Company recognizes card related income when the cardholder’s transaction with the merchant or ATM/ITM occurs, thus satisfying the performance obligation.  Card related expenses, such as disbursements to the payment network, reward program costs, and other operational costs are carried within card related expense, as a component of noninterest expense, on the Consolidated Statements of Income.

Advertising Costs

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Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred.
Equity Incentive Plan

Equity Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant.  A binomial model is utilized to estimate the fair value of stock options, which utilizes assumptions for expected volatilities based on the previous five-year historical volatilities of the Company's common stock.  Historical data is used to estimate option exercise rates and post-vesting termination behavior, and the risk-free interest rate for the expected term of the option is based on the Treasury yield curve in effect at the time of grant.  The market price of the Company’s common stock at the date of grant is used for restricted stock awards, which include restricted stock units.  Compensation cost is recognized over the required service period, generally defined as the vesting period, and is net of a 5% forfeiture assumption for group grants.  Upon vesting, compensation costs for the award expense is trued up based on actual forfeitures incurred.  Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the Consolidated Statements of Income.  The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award.  If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as a credit to income tax expense.
Income Taxes

Income Taxes – The Company files income tax returns in the U.S. federal jurisdiction, and in the states of Illinois, Arizona, California, Florida, Indiana, Michigan, New Hampshire, Ohio, Pennsylvania, Tennessee, Texas, and Wisconsin.  The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return.  Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.  Any change in tax rates will be recorded in the period in which the law is enacted.

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Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled.

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As of December 31, 2024 and 2023, the Company evaluated tax positions taken for filings with the Internal Revenue Service and all state jurisdictions in which it operates.  The Company believes that income tax filing positions will be sustained under examination and does not anticipate any adjustments that would result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows.  Accordingly, the Company has not recorded any material reserves or related accruals for interest and penalties for uncertain tax positions at December 31, 2024 and 2023.  The Company is no longer subject to examination by the Internal Revenue Service for tax years prior to 2021.  State statutes vary, but generally, the Company is no longer subject to state tax examinations for tax years ended prior to 2020.
Earnings Per Common Share ("EPS")

Earnings Per Common Share (“EPS”) – Basic EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding for the period.  Diluted EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding plus the number of additional common shares that would have been outstanding if the dilutive potential shares had been issued.  The Company’s potential common shares represent shares issuable under its long-term incentive compensation plans.  
Treasury Stock

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Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Balance Sheets.  Treasury stock issued is valued based on the “last in, first out” inventory method.  The difference between the consideration received upon issuance and the carrying value is charged or credited to additional paid-in capital.
Derivative Financial Instruments

Derivative Financial Instruments – The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies.  These derivative financial instruments consist primarily of interest rate swaps. The Company records all derivatives on the balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and whether the Company has elected to designate a derivative as a hedging relationship and apply hedge accounting.  A further consideration involves a determination on whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting.  Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges.  Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge.  The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

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If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued, and the adjustment to fair value of the derivative instrument is recorded in earnings.  For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative is deferred and reported as a component of accumulated other comprehensive income, which is a component of stockholders’ equity, until such time the hedged transaction affects earnings.  For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense.  Counterparty risk with loan customers is managed through loan covenant agreements and, as such, does not have a significant impact on the fair value of the swaps.  Counterparty risk with other banks is managed through bilateral collateralization agreements.  Deferred gains and losses from derivatives not accounted for as hedges and that are terminated are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability.
Comprehensive Income

Comprehensive Income – Comprehensive income is the total of reported earnings for all other revenues, expenses, gains, and losses that are not reported in earnings under GAAP.  The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income (Loss): (i) changes in unrealized gains or losses on securities available-for-sale, and (ii) the effective portion of a derivative used to hedge cash flows.
Recent Accounting Pronouncements

Recent Accounting Pronouncements – The following is a summary of recent accounting pronouncements that have impacted or could potentially affect the Company:  

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ASU 2023-06 – On October 9, 2023, the FASB issued ASU 2023-06 “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. The amendments in the ASU modify the disclosure or presentation requirements of a variety of topics in the codification. Certain of the amendments represent clarifications to, or technical corrections of, the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The amendments in this ASU are not expected to have a material impact on the financial statements of the Company.

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ASU 2023-09 – On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The 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 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The amendments 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 (national), 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 5 percent of total income taxes paid (net of refunds received). The amendments also require that all entities disclose the following information: (1) Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and (2) Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU 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. Retrospective application is permitted. The Company will adopt this ASU for the reporting period beginning January 1, 2025, and does not expect the amendments to have a material impact to the financial statements of the Company.

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ASU 2024-01 – On March 21, 2024, the FASB issued ASU 2024-01 “Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards”, which clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and, therefore is within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. ASU 2024-01 was effective January 1, 2025, including interim periods, and is not expected to have a material impact on the financial statements of the Company.

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ASU 2024-02 – On March 29, 2024, the FASB issued ASU 2024-02 “Codification Improvements – Amendments to Remove References to the Concepts Statements”, which amends the codification to remove references to various concept statements and impacts a variety of topics in the codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 was effective January 1, 2025, and is not expected to have a material impact the financial statements of the Company.

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ASU 2024-03 – On November 4, 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. This ASU requires public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Specifically, they will be required to: (1) Disclose the amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements. (2) Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. (3) Disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and is not expected to have a material impact on the financial statements of the Company.  
Subsequent Events

Subsequent Events

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On January 21, 2025, the Company’s Board of Directors declared a cash dividend of $0.06 per share payable on February 10, 2025, to stockholders of record as of January 31, 2025.

On February 24, 2025, Old Second and Bancorp Financial, Inc. (“Bancorp Financial”) entered into an Agreement and Plan of Merger (the “merger agreement”).  The merger agreement provides that, upon the terms and subject to the conditions set forth therein, Bancorp Financial will merge with and into Old Second, with Old Second continuing as the surviving entity (the “merger”).  Immediately following the merger, Evergreen Bank Group (“Evergreen Bank”), an Illinois state-chartered bank and wholly-owned subsidiary of Bancorp Financial, will merge with and into Old Second National Bank, a national banking association and wholly-owned subsidiary of Old Second, with Old Second National Bank continuing as the surviving bank (the “bank merger”).

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Subject to the terms and conditions of the merger agreement, at the effective time of the merger, each Bancorp Financial stockholder will receive 2.5814 shares of Old Second common stock and $15.93 in cash  for each share of Bancorp Financial common stock owned by the stockholder.  Holders of Bancorp Financial common stock, subject to certain exceptions, will also be entitled to receive cash in lieu of fractional shares of Old Second common stock.

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The parties to the merger expect to complete the merger in the third quarter of 2025, subject to satisfaction of closing conditions, including receipt of customary required regulatory approvals and the approval of the merger agreement by the Bancorp Financial stockholders.
Mortgage Banking Derivatives.  
Summary of Significant Accounting Policies  
Derivative Financial Instruments

Mortgage Banking Derivatives – As part of the ongoing residential mortgage business, the Company enters into mortgage banking derivatives such as forward contracts and interest rate lock commitments. The derivatives and loans held-for-sale are carried at fair value with the changes in fair value recorded in current earnings. The net gain or loss on mortgage banking derivatives is included in net gains on sales of loans in the Consolidated Statements of Income.
Commercial  
Summary of Significant Accounting Policies  
Loans Commercial loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other commercial and industrial business loans.  Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners.  Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower.  The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors.  Minimum standards and underwriting guidelines have been established for all commercial loan types.  The Company classifies five different risk levels for this segment to assign a loss rate based on historical losses, and may utilize qualitative overlays to align historical loss experience with expectations during the forecast period.
Real estate - commercial loans  
Summary of Significant Accounting Policies  
Loans

Real estate - commercial loans – Real estate - commercial loans are subject to underwriting standards and processes similar to commercial and industrial loans.  These are loans secured by mortgages on real estate collateral.  Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property.  Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market, such as geographic location and/or property type.  The real estate – commercial segments utilized for the ACL on loans are:

●CRE owner occupied – the Company classifies five different risk levels within this segment to assign a loss rate based on historical losses, as well as utilizing a forecasted average unemployment rate and Gross Domestic Product (“GDP”) for the next twelve months as a loss driver.
●CRE investor – the Company classifies five different risk levels within this segment to assign a loss rate based on historical losses, as well as utilizing a forecasted average unemployment rate and GDP for the next twelve months as a loss driver.  The primary difference between this segment and CRE owner occupied is within the slightly elevated historical loss rates.
Real estate - residential loans  
Summary of Significant Accounting Policies  
Loans

Real estate - residential loans – These are loans that are extended to purchase or refinance family residential dwellings.  Residential real estate loans are considered homogenous in nature.  Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower. The real estate – residential segments utilized for the ACL on loans are:

●Residential owner-occupied – these loans are secured by 1-4 family residential dwellings that are primary or secondary residences and the Company holds a first lien position. The Company applies historical loss rates from periods with like characteristics as the current period, with a longer remaining life than other segments, due to the often longer-term nature of these loans.
●Residential investor – these loans are secured by 1-4 family residential dwellings that are not a primary or secondary residence and the Company holds a first lien position. The Company applies historical loss rates from periods with like characteristics as the current period, with a slightly longer remaining life than other segments, but shorter duration than residential owner-occupied.
●Multifamily – these loans are secured by 5+ unit residential dwellings and the Company typically holds a first lien position. The Company classifies five different risk levels within this segment to assign a loss rate based on historical losses, as well as utilizing a forecasted average unemployment rate and GDP for the next twelve months as a loss driver.
Consumer  
Summary of Significant Accounting Policies  
Loans

Home equity lines of credit (“HELOCs”)  – These are lines of credit that are extended to refinance 1-4 family residential dwellings, or to finance the borrower’s needs and collateralized by the borrower’s residence.  These lines may be fixed or variable in nature, and the home serving as collateral may also have a first lien outstanding. The Company’s historical loss rates are utilized from the prior periods which align to the current unemployment projections for the next twelve months.

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Consumer loans – Consumer loans include loans extended primarily for consumer and household purposes.  These also include overdrafts and other items not captured by the definitions above.  The primary loss driver for this segment is the unemployment rate forecast for the next twelve months.

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The methodologies used for calculating the ACL on each loan segment include (i) a migration analysis for commercial, CRE owner occupied, CRE investor, and multifamily segments; (ii) a static pool analysis for construction, leases, residential investor, residential owner occupied and the HELOC segments; and (iii) a WARM (weighted average remaining maturity) methodology is used for consumer segments.  The forecast period used for each segment calculation was one year, with an immediate reversion to historical loss rates following this one year period. In addition, the Company applies qualitative adjustments to each different loan, as described below.

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The qualitative factors applied to each loan portfolio consist of the impact of other internal and external qualitative and credit market factors as assessed by management through a detailed loan review, ACL analysis and credit discussions.  These internal and external qualitative and credit market factors include:

●changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices;
●changes in international, national, regional, and local conditions (specific factors which impact portfolios or discrepancies with national economic factors which are utilized within the economic forecast);
●changes in the experience, depth and ability of lending management;
●changes in the volume and severity of past due loans and other similar loan conditions;
●changes in the nature and volume of the loan portfolio and terms of loans;
●the existence and effect of any concentrations of credit and changes in the levels of such concentrations (this characteristic requires any portfolio exceeding 25% of capital to have a factor considered unless the pool is otherwise well diversified or holds a relatively low inherent risk);
●effects of other external factors, such as competition, legal or regulatory factors, on the level of estimated credit losses;
●changes in the quality of our loan review functions; and
●changes in the value of underlying collateral for collateral dependent loans.

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The impact of the above listed internal and external qualitative and credit market risk factors is assessed within predetermined ranges to adjust the ACL totals calculated.  Changes in the above factors are assessed no less than quarterly, and directly impact the total estimated credit losses recorded.  

​

Loans that do not share risk characteristics are evaluated on an individual basis. Such loans evaluated individually are not also included in the collective evaluation. The amount of expected credit loss is measured based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. When management determines that foreclosure is probable, the amount of credit loss is determined using the fair value of collateral, less costs to sell.

​

Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed, while recoveries of amounts previously charged-off are credited to the ACL.  Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off.  Approved releases from previously established ACL reserves authorized under our ACL methodology also reduce the ACL.  Additions to the ACL are established through the provision for credit losses on loans, which is charged to expense.

 

The Company’s ACL methodology is intended to reflect all loan portfolio risk, but management recognizes the inability to accurately depict all future credit losses in a current ACL estimate, as the impact of various factors cannot be fully known.  Accrued interest receivable on loans is excluded from the amortized cost basis of financing receivables for the purpose of determining the allowance for credit losses.  

​

ACL on Unfunded Loan Commitments

​

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.  The ACL related to off-balance sheet credit exposures, which is within other liabilities on the Company’s Consolidated Balance Sheets, is estimated at each balance sheet date under the CECL model, and is adjusted as determined necessary through the provision for credit losses on the income statement.  The estimate for ACL on unfunded loan commitments includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.  
Real estate - construction | Real estate - commercial loans  
Summary of Significant Accounting Policies  
Loans Real estate - construction loans – The Company defines real estate - construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement or development of real estate in which the Company holds a mortgage.  Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely.  The Company’s historical loss rates are utilized from the prior periods which align to the current unemployment projections for the next twelve months.
v3.25.0.1
Acquisition (Tables)
 12 Months Ended
Dec. 31, 2024
Acquisition  
Summary of acquisition

​

​

​

​

​

First Merchants Transaction Summary

As of Date of Transaction

​

​

​

​

​

​

December 6, 2024

Assets

​

​

​

Cash and due from banks

​

$

419

Loans, net of purchase accounting adjustments

​

​

7,149

Premises and equipment

​

​

3,934

Core deposit intangible

​

​

13,254

Other assets

​

​

19

Total assets

​

$

24,775

​

​

​

​

Liabilities

​

​

​

Noninterest bearing demand

​

$

26,497

Savings, NOW and money market

​

​

157,126

Time

​

​

84,373

Total deposits

​

​

267,996

Other liabilities

​

​

585

Total liabilities

​

​

268,581

​

​

​

​

Cash consideration received

​

​

(237,023)

Total liabilities assumed and cash consideration received for transaction

​

$

31,558

Goodwill

​

$

6,783
v3.25.0.1
Securities (Tables)
 12 Months Ended
Dec. 31, 2024
Securities  
Schedule of amortized cost and fair value of the securities portfolio and corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

​

Gross

​

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2024

    

Cost1

    

Gains

    

Losses

​

Value

Securities available-for-sale

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

193,902

​

$

700

​

$

(459)

​

$

194,143

U.S. government agencies

​

​

39,202

​

​

-

​

​

(1,388)

​

​

37,814

U.S. government agencies mortgage-backed

​

​

112,241

​

​

-

​

​

(11,964)

​

​

100,277

States and political subdivisions

​

​

226,969

​

​

264

​

​

(11,777)

​

​

215,456

Collateralized mortgage obligations

​

​

411,170

​

​

647

​

​

(43,201)

​

​

368,616

Asset-backed securities

​

​

64,215

​

​

69

​

​

(1,981)

​

​

62,303

Collateralized loan obligations

​

​

182,629

​

​

472

​

​

(9)

​

​

183,092

Total securities available-for-sale

​

$

1,230,328

​

$

2,152

​

$

(70,779)

​

$

1,161,701

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

​

Gross

​

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2023

    

Cost1

    

Gains

    

Losses

​

Value

Securities available-for-sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

174,602

​

$

-

​

$

(5,028)

​

$

169,574

U.S. government agencies

​

​

60,011

​

​

-

​

​

(3,052)

​

​

56,959

U.S. government agencies mortgage-backed

​

​

118,492

​

​

-

​

​

(12,122)

​

​

106,370

States and political subdivisions

​

​

236,072

​

​

1,325

​

​

(10,332)

​

​

227,065

Collateralized mortgage obligations

​

​

442,987

​

​

421

​

​

(50,864)

​

​

392,544

Asset-backed securities

​

​

71,616

​

​

42

​

​

(3,222)

​

​

68,436

Collateralized loan obligations

​

​

173,201

​

​

30

​

​

(1,350)

​

​

171,881

Total securities available-for-sale

​

$

1,276,981

​

$

1,818

​

$

(85,970)

​

$

1,192,829

​

​

​

​

​

​

​

​

​

​

​

​

​

1 Excludes interest receivable of $7.1 million and $6.6 million at December 31, 2024 and December 31, 2023, respectively, that is recorded in other assets on the Consolidated Balance Sheets.
Schedule of fair value, amortized cost and weighted average yield of debt securities by contractual maturity along with securities not due at a single maturity date, primarily mortgage-backed securities (MBS), asset-backed securities, and collateralized loan obligations

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

​

​

​

Amortized

​

Average

​

​

Fair

​

Securities available-for-sale

    

Cost

    

Yield

​

    

Value

  

Due in one year or less

​

$

94,725

​

2.94

%

​

$

94,598

​

Due after one year through five years

​

​

154,689

​

3.64

​

​

​

153,679

​

Due after five years through ten years

​

​

100,601

​

2.91

​

​

​

94,215

​

Due after ten years

​

​

110,058

​

3.20

​

​

​

104,921

​

​

​

​

460,073

​

3.23

​

​

​

447,413

​

Mortgage-backed and collateralized mortgage obligations

​

​

523,411

​

2.57

​

​

​

468,893

​

Asset-backed securities

​

​

64,215

​

3.70

​

​

​

62,303

​

Collateralized loan obligations

​

​

182,629

​

6.08

​

​

​

183,092

​

Total securities available-for-sale

​

$

1,230,328

​

3.40

%

​

$

1,161,701

​
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position

Securities with unrealized losses with no corresponding allowance for credit losses at December 31, 2024 and 2023 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less than 12 months

​

12 months or more

​

​

​

​

​

​

​

​

December 31, 2024

​

in an unrealized loss position

​

in an unrealized loss position

​

Total

​

​

Number of

​

Unrealized

​

Fair

​

Number of

​

Unrealized

​

Fair

​

Number of

​

Unrealized

​

Fair

Securities available-for-sale

    

Securities

   

Losses

   

Value

   

Securities

   

Losses

   

Value

   

Securities

   

Losses

   

Value

U.S. Treasuries

​

4

​

$

72

​

$

49,788

​

1

​

$

387

​

$

49,547

​

5

​

$

459

​

$

99,335

U.S. government agencies

​

-

​

​

-

​

​

-

​

8

​

​

1,388

​

​

37,814

​

8

​

​

1,388

​

​

37,814

U.S. government agencies mortgage-backed

​

1

​

​

447

​

​

10,296

​

128

​

​

11,517

​

​

89,981

​

129

​

​

11,964

​

​

100,277

States and political subdivisions

​

31

​

​

455

​

​

85,457

​

27

​

​

11,322

​

​

111,308

​

58

​

​

11,777

​

​

196,765

Collateralized mortgage obligations

​

3

​

​

24

​

​

5,107

​

139

​

​

43,177

​

​

328,708

​

142

​

​

43,201

​

​

333,815

Asset-backed securities

​

2

​

​

4

​

​

1,068

​

13

​

​

1,977

​

​

50,198

​

15

​

​

1,981

​

​

51,266

Collateralized loan obligations

​

4

​

​

8

​

​

31,440

​

1

​

​

1

​

​

227

​

5

​

​

9

​

​

31,667

Total securities available-for-sale

​

45

​

$

1,010

​

$

183,156

​

317

​

$

69,769

​

$

667,783

​

362

​

$

70,779

​

$

850,939

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less than 12 months

​

12 months or more

​

​

​

​

​

​

​

​

December 31, 2023

​

in an unrealized loss position

​

in an unrealized loss position

​

Total

​

​

Number of

​

Unrealized

​

​

Fair

​

Number of

​

Unrealized

​

​

Fair

​

Number of

​

Unrealized

​

​

Fair

Securities available-for-sale

    

Securities

   

Losses

   

​

Value

   

Securities

   

Losses

   

​

Value

   

Securities

   

Losses

   

​

Value

U.S. Treasuries

​

-

​

$

-

​

$

-

​

4

​

$

5,028

​

$

169,574

​

4

​

$

5,028

​

$

169,574

U.S. government agencies

​

-

​

​

-

​

​

-

​

9

​

​

3,052

​

​

56,959

​

9

​

​

3,052

​

​

56,959

U.S. government agencies mortgage-backed

​

-

​

​

-

​

​

-

​

128

​

​

12,122

​

​

106,370

​

128

​

​

12,122

​

​

106,370

States and political subdivisions

​

12

​

​

137

​

​

27,974

​

25

​

​

10,195

​

​

106,138

​

37

​

​

10,332

​

​

134,112

Collateralized mortgage obligations

​

2

​

​

8

​

​

734

​

143

​

​

50,856

​

​

376,236

​

145

​

​

50,864

​

​

376,970

Asset-backed securities

​

-

​

​

-

​

​

-

​

19

​

​

3,222

​

​

63,941

​

19

​

​

3,222

​

​

63,941

Collateralized loan obligations

​

-

​

​

-

​

​

-

​

25

​

​

1,350

​

​

150,902

​

25

​

​

1,350

​

​

150,902

Total securities available-for-sale

​

14

​

$

145

​

$

28,708

​

353

​

$

85,825

​

$

1,030,120

​

367

​

$

85,970

​

$

1,058,828

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
Schedule of securities available for sale net realized gains (losses)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

​

December 31, 

​

Securities available-for-sale

    

2024

    

2023

 

2022

​

Proceeds from sales of securities

​

$

5,331

​

$

205,738

​

$

30,981

​

Gross realized gains on securities

​

 

1

​

 

-

​

 

-

​

Gross realized losses on securities

​

 

(1)

​

 

(4,148)

​

 

(944)

​

Net realized losses

​

$

—

​

$

(4,148)

​

$

(944)

​

Income tax benefit on net realized losses

​

$

—

​

$

1,117

​

$

265

​

Effective tax rate applied

​

​

N/M

%

​

26.9

%

​

28.1

%
v3.25.0.1
Loans and Allowance for Credit Losses on Loans (Tables)
 12 Months Ended
Dec. 31, 2024
Loans and Allowance for Credit Losses on Loans  
Schedule of major classifications of loans

​

​

​

​

​

​

​

​

​

    

December 31, 2024

    

December 31, 2023

Commercial

​

$

800,476

​

$

841,697

Leases

​

​

491,748

​

​

398,223

Commercial real estate – investor

​

​

1,078,829

​

​

1,034,424

Commercial real estate – owner occupied

​

​

683,283

​

​

796,538

Construction

​

​

201,716

​

​

165,380

Residential real estate – investor

​

​

49,598

​

​

52,595

Residential real estate – owner occupied

​

​

206,949

​

​

226,248

Multifamily

​

​

351,325

​

​

401,696

HELOC

​

​

103,388

​

​

103,237

Other 1

​

​

14,024

​

​

22,915

Total loans

​

​

3,981,336

​

​

4,042,953

Allowance for credit losses on loans

​

​

(43,619)

​

​

(44,264)

Net loans 2

​

$

3,937,717

​

$

3,998,689

​

1  Unless otherwise noted, the “Other” segment includes consumer loans and overdrafts in this table and in subsequent tables within Note 5 - Loans and Allowance for Credit Losses on Loans.

​

2  Excludes accrued interest receivable of $17.5 million and $20.5 million at December 31, 2024 and December 31, 2023, respectively, which is recorded in other assets on the Consolidated Balance Sheets.
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment

​

​

​

The following tables represent the activity in the ACL for loans for the years ended December 31, 2024, 2023 and 2022:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning

​

Provision for

​

​

​

​

​

Ending

​

​

Balance

​

(Release of)

​

​

​

​

​

Balance

Allowance for credit losses

   

January 1, 2024

   

Credit Losses

   

Charge-offs

   

Recoveries

   

December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

$

3,998

​

$

12,352

​

$

8,686

​

$

149

​

$

7,813

Leases

​

​

2,952

​

​

(770)

​

​

149

​

​

103

​

​

2,136

Commercial real estate – investor

​

​

17,105

​

​

1,594

​

​

4,596

​

​

425

​

​

14,528

Commercial real estate – owner occupied

​

​

12,280

​

​

(997)

​

​

5,154

​

​

3,907

​

​

10,036

Construction

​

​

1,038

​

​

2,543

​

​

-

​

​

-

​

​

3,581

Residential real estate – investor

​

​

669

​

​

(141)

​

​

-

​

​

25

​

​

553

Residential real estate – owner occupied

​

​

1,821

​

​

(106)

​

​

242

​

​

36

​

​

1,509

Multifamily

​

​

2,728

​

​

(852)

​

​

-

​

​

-

​

​

1,876

HELOC

​

​

1,656

​

​

(169)

​

​

-

​

​

91

​

​

1,578

Other

​

​

17

​

​

130

​

​

284

​

​

146

​

​

9

Total

​

$

44,264

​

$

13,584

​

$

19,111

​

$

4,882

​

$

43,619

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning

​

Provision for

​

​

​

​

​

​

Ending

Allowance for credit losses

​

Balance

​

(Release of)

​

​

​

​

​

​

Balance

​

   

January 1, 2023

   

Credit Losses

   

Charge-offs

   

Recoveries

   

​

December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

$

11,968

​

$

(7,717)

​

$

885

​

$

632

​

$

3,998

Leases

​

​

2,865

​

​

850

​

​

882

​

​

119

​

​

2,952

Commercial real estate – investor

​

​

10,674

​

​

18,170

​

​

11,816

​

​

77

​

​

17,105

Commercial real estate – owner occupied

​

​

15,001

​

​

7,941

​

​

10,691

​

​

29

​

​

12,280

Construction

​

​

1,546

​

​

(608)

​

​

-

​

​

100

​

​

1,038

Residential real estate – investor

​

​

768

​

​

(129)

​

​

-

​

​

30

​

​

669

Residential real estate – owner occupied

​

​

2,046

​

​

(304)

​

​

-

​

​

79

​

​

1,821

Multifamily

​

​

2,453

​

​

275

​

​

-

​

​

-

​

​

2,728

HELOC

​

​

1,806

​

​

(255)

​

​

-

​

​

105

​

​

1,656

Other

​

​

353

​

​

(137)

​

​

368

​

​

169

​

​

17

Total

​

$

49,480

​

$

18,086

​

$

24,642

​

$

1,340

​

$

44,264

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning

​

Provision for

​

​

​

​

​

​

​

​

Ending

Allowance for credit losses

​

Balance

​

(Release of)

​

​

​

​

​

​

​

​

Balance

​

   

January 1, 2022

   

Credit Losses

​

Charge-offs

​

Recoveries

​

   

December 31, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

$

11,751

​

$

273

​

$

151

​

$

95

​

$

11,968

Leases

​

​

3,480

​

​

(246)

​

​

371

​

​

2

​

​

2,865

Commercial real estate – investor

​

​

10,795

​

​

1,199

​

​

1,401

​

​

81

​

​

10,674

Commercial real estate – owner occupied

​

​

4,913

​

​

10,117

​

​

133

​

​

104

​

​

15,001

Construction

​

​

3,373

​

​

(1,827)

​

​

-

​

​

-

​

​

1,546

Residential real estate – investor

​

​

760

​

​

(22)

​

​

-

​

​

30

​

​

768

Residential real estate – owner occupied

​

​

2,832

​

​

(1,010)

​

​

2

​

​

226

​

​

2,046

Multifamily

​

​

3,675

​

​

(1,285)

​

​

-

​

​

63

​

​

2,453

HELOC

​

​

2,510

​

​

(844)

​

​

-

​

​

140

​

​

1,806

Other

​

​

192

​

​

395

​

​

402

​

​

168

​

​

353

Total

​

$

44,281

​

$

6,750

​

$

2,460

​

$

909

​

$

49,480
Schedule of collateral dependent loans and related loan allowances.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Accounts

​

​

​

​

​

​

​

ACL

December 31, 2024

​

Real Estate

​

Receivable

​

Equipment

​

Other

​

Total

​

Allocation

Commercial

​

$

-

​

$

6,491

​

$

-

​

$

-

​

$

6,491

​

$

2,448

Leases

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Commercial real estate – investor

​

​

1,644

​

​

-

​

​

-

​

​

-

​

​

1,644

​

​

-

Commercial real estate – owner occupied

​

​

10,018

​

​

-

​

​

-

​

​

-

​

​

10,018

​

​

3,951

Construction

​

​

5,800

​

​

-

​

​

-

​

​

-

​

​

5,800

​

​

792

Residential real estate – investor

​

​

404

​

​

-

​

​

-

​

​

-

​

​

404

​

​

-

Residential real estate – owner occupied

​

​

1,056

​

​

-

​

​

-

​

​

-

​

​

1,056

​

​

-

Multifamily

​

​

836

​

​

-

​

​

-

​

​

-

​

​

836

​

​

-

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Other

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total

​

$

19,758

​

$

6,491

​

$

-

​

$

-

​

$

26,249

​

$

7,191

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Accounts

​

​

​

​

​

​

​

ACL

December 31, 2023

​

Real Estate

​

Receivable

​

Equipment

​

Other

​

Total

​

Allocation

Commercial

​

$

837

​

$

797

​

$

-

​

$

-

​

$

1,634

​

$

2

Leases

​

​

-

​

​

-

​

​

321

​

​

-

​

​

321

​

​

320

Commercial real estate – investor

​

​

15,735

​

​

-

​

​

-

​

​

-

​

​

15,735

​

​

3,656

Commercial real estate – owner occupied

​

​

34,894

​

​

-

​

​

-

​

​

-

​

​

34,894

​

​

3,900

Construction

​

​

7,162

​

​

-

​

​

-

​

​

-

​

​

7,162

​

​

-

Residential real estate – investor

​

​

422

​

​

-

​

​

-

​

​

-

​

​

422

​

​

-

Residential real estate – owner occupied

​

​

1,506

​

​

-

​

​

-

​

​

-

​

​

1,506

​

​

-

Multifamily

​

​

1,402

​

​

-

​

​

-

​

​

-

​

​

1,402

​

​

-

HELOC

​

​

39

​

​

-

​

​

-

​

​

-

​

​

39

​

​

-

Other

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total

​

$

61,997

​

$

797

​

$

321

​

$

-

​

$

63,115

​

$

7,878

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
Schedule of aged analysis of past due loans by class of loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

90 days or

​

​

​

​

​

​

​

​

90 Days or

​

​

​

​

​

​

​

​

​

​

Greater Past

​

​

30-59 Days

​

60-89 Days

​

Greater Past

​

Total Past

​

​

​

​

​

​

​

Due and

December 31, 2024

​

Past Due

    

Past Due

    

Due

    

Due

    

Current

    

Total Loans

    

Accruing

Commercial

​

$

219

​

$

95

​

$

6,963

​

$

7,277

​

$

793,199

​

$

800,476

​

$

1,397

Leases

​

​

1,438

​

​

372

​

​

352

​

​

2,162

​

​

489,586

​

​

491,748

​

​

-

Commercial real estate – investor

​

​

2,021

​

​

402

​

​

-

​

​

2,423

​

​

1,076,406

​

​

1,078,829

​

​

-

Commercial real estate – owner occupied

​

​

1,123

​

​

2,479

​

​

43

​

​

3,645

​

​

679,638

​

​

683,283

​

​

-

Construction

​

​

-

​

​

-

​

​

5,799

​

​

5,799

​

​

195,917

​

​

201,716

​

​

-

Residential real estate – investor

​

​

763

​

​

-

​

​

439

​

​

1,202

​

​

48,396

​

​

49,598

​

​

-

Residential real estate – owner occupied

​

​

2,489

​

​

90

​

​

509

​

​

3,088

​

​

203,861

​

​

206,949

​

​

-

Multifamily

​

​

-

​

​

233

​

​

1,040

​

​

1,273

​

​

350,052

​

​

351,325

​

​

-

HELOC

​

​

109

​

​

74

​

​

202

​

​

385

​

​

103,003

​

​

103,388

​

​

39

Other

​

​

13

​

​

10

​

​

-

​

​

23

​

​

14,001

​

​

14,024

​

​

-

Total

​

$

8,175

​

$

3,755

​

$

15,347

​

$

27,277

​

$

3,954,059

​

$

3,981,336

​

$

1,436

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

90 days or

​

​

​

​

​

​

​

​

90 Days or

​

​

​

​

​

​

​

​

​

​

Greater Past

​

​

30-59 Days

​

60-89 Days

​

Greater Past

​

Total Past

​

​

​

​

​

​

​

Due and

December 31, 2023

​

Past Due

    

Past Due

    

Due

    

Due

    

Current

    

Total Loans

    

Accruing

Commercial

​

$

982

​

$

-

​

$

1,228

​

$

2,210

​

$

839,487

​

$

841,697

​

$

1,155

Leases

​

​

599

​

​

-

​

​

347

​

​

946

​

​

397,277

​

​

398,223

​

​

-

Commercial real estate – investor

​

​

1,209

​

​

-

​

​

6,087

​

​

7,296

​

​

1,027,128

​

​

1,034,424

​

​

-

Commercial real estate – owner occupied

​

​

2,103

​

​

3,726

​

​

15,645

​

​

21,474

​

​

775,064

​

​

796,538

​

​

-

Construction

​

​

2,540

​

​

307

​

​

7,161

​

​

10,008

​

​

155,372

​

​

165,380

​

​

-

Residential real estate – investor

​

​

540

​

​

579

​

​

168

​

​

1,287

​

​

51,308

​

​

52,595

​

​

-

Residential real estate – owner occupied

​

​

553

​

​

125

​

​

1,944

​

​

2,622

​

​

223,626

​

​

226,248

​

​

-

Multifamily

​

​

1,085

​

​

-

​

​

233

​

​

1,318

​

​

400,378

​

​

401,696

​

​

-

HELOC

​

​

565

​

​

1,396

​

​

269

​

​

2,230

​

​

101,007

​

​

103,237

​

​

41

Other

​

​

-

​

​

1

​

​

-

​

​

1

​

​

22,914

​

​

22,915

​

​

-

Total

​

$

10,176

​

$

6,134

​

$

33,082

​

$

49,392

​

$

3,993,561

​

$

4,042,953

​

$

1,196

​
Schedule of loans on nonaccrual for which there was no related allowance

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nonaccrual loan detail

    

December 31, 2024

    

With no ACL

​

December 31, 2023

    

With no ACL

Commercial

​

$

5,591

​

$

497

​

$

870

​

$

870

Leases

​

​

523

​

​

523

​

​

639

​

​

318

Commercial real estate – investor

​

​

1,981

​

​

1,981

​

​

16,572

​

​

8,926

Commercial real estate – owner occupied

​

​

10,604

​

​

1,407

​

​

34,946

​

​

8,429

Construction

​

​

5,800

​

​

-

​

​

7,162

​

​

7,162

Residential real estate – investor

​

​

1,158

​

​

1,158

​

​

1,331

​

​

1,331

Residential real estate – owner occupied

​

​

1,653

​

​

1,653

​

​

3,078

​

​

3,078

Multifamily

​

​

1,165

​

​

1,165

​

​

1,775

​

​

1,775

HELOC

​

​

366

​

​

366

​

​

1,210

​

​

1,210

Other

​

​

10

​

​

10

​

​

-

​

​

-

Total

​

$

28,851

​

$

8,760

​

$

67,583

​

$

33,099
Schedule of credit quality indicators by class of loans

Credit quality indicators by class of loans as of December 31, 2024 were as follows in the vintage table below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Revolving
Loans

  

Revolving
Loans
Converted
To Term
Loans

  

Total

Commercial

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

299,863

​

$

176,549

​

$

56,619

​

$

18,679

​

$

4,999

​

$

6,527

​

$

201,514

​

$

1,279

​

$

766,029

Special Mention

​

​

3,864

​

​

1,629

​

​

127

​

​

176

​

​

-

​

​

-

​

​

3,903

​

​

-

​

​

9,699

Substandard

​

​

-

​

​

14

​

​

4,169

​

​

77

​

​

-

​

​

-

​

​

19,102

​

​

-

​

​

23,362

Doubtful

​

​

-

​

​

-

​

​

-

​

​

1,386

​

​

-

​

​

-

​

​

-

​

​

-

​

​

1,386

Total commercial

​

​

303,727

​

​

178,192

​

​

60,915

​

​

20,318

​

​

4,999

​

​

6,527

​

​

224,519

​

​

1,279

​

​

800,476

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Leases

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

239,664

​

​

151,372

​

$

66,379

​

​

24,546

​

​

6,145

​

​

2,298

​

​

-

​

​

-

​

​

490,404

Special Mention

​

​

-

​

​

-

​

​

821

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

821

Substandard

​

​

-

​

​

-

​

​

523

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

523

Total leases

​

​

239,664

​

​

151,372

​

​

67,723

​

​

24,546

​

​

6,145

​

​

2,298

​

​

-

​

​

-

​

​

491,748

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

243,983

​

​

159,008

​

​

305,506

​

​

191,651

​

​

90,245

​

​

67,143

​

​

6,804

​

​

-

​

​

1,064,340

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

335

​

​

1,645

​

​

-

​

​

-

​

​

-

​

​

12,509

​

​

-

​

​

-

​

​

14,489

Total commercial real estate – investor

​

​

244,318

​

​

160,653

​

​

305,506

​

​

191,651

​

​

90,245

​

​

79,652

​

​

6,804

​

​

-

​

​

1,078,829

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

91,012

​

​

114,255

​

​

133,488

​

​

121,652

​

​

77,919

​

​

82,820

​

​

14,284

​

​

-

​

​

635,430

Special Mention

​

​

-

​

​

1,162

​

​

7,908

​

​

7,500

​

​

3,033

​

​

631

​

​

-

​

​

-

​

​

20,234

Substandard

​

​

-

​

​

125

​

​

1,168

​

​

11,241

​

​

9,897

​

​

5,188

​

​

-

​

​

-

​

​

27,619

Total commercial real estate – owner occupied

​

​

91,012

​

​

115,542

​

​

142,564

​

​

140,393

​

​

90,849

​

​

88,639

​

​

14,284

​

​

-

​

​

683,283

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

44,699

​

​

27,928

​

​

83,222

​

​

17,747

​

​

82

​

​

1,081

​

​

468

​

​

-

​

​

175,227

Special Mention

​

​

-

​

​

-

​

​

6,794

​

​

-

​

​

-

​

​

344

​

​

-

​

​

-

​

​

7,138

Substandard

​

​

-

​

​

-

​

​

19,351

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

19,351

Total construction

​

​

44,699

​

​

27,928

​

​

109,367

​

​

17,747

​

​

82

​

​

1,425

​

​

468

​

​

-

​

​

201,716

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

5,595

​

​

3,833

​

​

13,366

​

​

8,060

​

​

5,693

​

​

9,813

​

​

1,548

​

​

-

​

​

47,908

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

375

​

​

532

​

​

-

​

​

783

​

​

-

​

​

-

​

​

1,690

Total residential real estate – investor

​

​

5,595

​

​

3,833

​

​

13,741

​

​

8,592

​

​

5,693

​

​

10,596

​

​

1,548

​

​

-

​

​

49,598

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

11,609

​

​

29,670

​

​

35,786

​

​

32,760

​

​

22,996

​

​

71,507

​

​

770

​

​

-

​

​

205,098

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

151

​

​

-

​

​

1,700

​

​

-

​

​

-

​

​

1,851

Total residential real estate – owner occupied

​

​

11,609

​

​

29,670

​

​

35,786

​

​

32,911

​

​

22,996

​

​

73,207

​

​

770

​

​

-

​

​

206,949

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multifamily

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

39,133

​

​

68,781

​

​

68,032

​

​

100,049

​

​

29,060

​

​

44,735

​

​

370

​

​

-

​

​

350,160

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

962

​

​

-

​

​

203

​

​

-

​

​

-

​

​

-

​

​

1,165

Total multifamily

​

​

39,133

​

​

68,781

​

​

68,994

​

​

100,049

​

​

29,263

​

​

44,735

​

​

370

​

​

-

​

​

351,325

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HELOC

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

2,602

​

​

2,561

​

​

2,118

​

​

383

​

​

1,383

​

​

3,752

​

​

90,042

​

​

-

​

​

102,841

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

-

​

​

39

​

​

214

​

​

294

​

​

-

​

​

547

Total HELOC

​

​

2,602

​

​

2,561

​

​

2,118

​

​

383

​

​

1,422

​

​

3,966

​

​

90,336

​

​

-

​

​

103,388

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

6,521

​

​

1,559

​

​

1,438

​

​

639

​

​

92

​

​

7

​

​

3,758

​

​

​

​

​

14,014

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

​

​

​

-

Substandard

​

​

-

​

​

5

​

​

5

​

​

-

​

​

-

​

​

-

​

​

-

​

​

​

​

​

10

Total other

​

​

6,521

​

​

1,564

​

​

1,443

​

​

639

​

​

92

​

​

7

​

​

3,758

​

​

-

​

​

14,024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

984,681

​

​

735,516

​

​

765,954

​

​

516,166

​

​

238,614

​

​

289,683

​

​

319,558

​

​

1,279

​

​

3,851,451

Special Mention

​

​

3,864

​

​

2,791

​

​

15,650

​

​

7,676

​

​

3,033

​

​

975

​

​

3,903

​

​

-

​

​

37,892

Substandard

​

​

335

​

​

1,789

​

​

26,553

​

​

12,001

​

​

10,139

​

​

20,394

​

​

19,396

​

​

-

​

​

90,607

Doubtful

​

​

-

​

​

-

​

​

-

​

​

1,386

​

​

-

​

​

-

​

​

-

​

​

-

​

​

1,386

Total loans

​

$

988,880

​

$

740,096

​

$

808,157

​

$

537,229

​

$

251,786

​

$

311,052

​

$

342,857

​

$

1,279

​

$

3,981,336

​

​

​

Credit quality indicators by class of loans as of December 31, 2023 were as follows in the vintage table below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Revolving
Loans

  

Revolving
Loans
Converted
To Term
Loans

  

Total

Commercial

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

318,569

​

$

136,668

​

$

35,901

​

$

11,983

​

$

18,390

​

$

3,426

​

$

298,931

​

$

1,408

​

$

825,276

Special Mention

​

​

-

​

​

2,737

​

​

707

​

​

171

​

​

-

​

​

-

​

​

4,392

​

​

-

​

​

8,007

Substandard

​

​

-

​

​

2,099

​

​

146

​

​

-

​

​

199

​

​

-

​

​

5,970

​

​

-

​

​

8,414

Total commercial

​

​

318,569

​

​

141,504

​

​

36,754

​

​

12,154

​

​

18,589

​

​

3,426

​

​

309,293

​

​

1,408

​

​

841,697

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Leases

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

219,163

​

​

113,074

​

$

42,275

​

​

14,663

​

​

6,975

​

​

1,255

​

​

-

​

​

-

​

​

397,405

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

407

​

​

203

​

​

-

​

​

208

​

​

-

​

​

-

​

​

-

​

​

818

Total leases

​

​

219,163

​

​

113,481

​

​

42,478

​

​

14,663

​

​

7,183

​

​

1,255

​

​

-

​

​

-

​

​

398,223

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

159,654

​

​

367,512

​

​

218,084

​

​

108,384

​

​

54,322

​

​

63,281

​

​

8,122

​

​

-

​

​

979,359

Special Mention

​

​

-

​

​

-

​

​

11,267

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

11,267

Substandard

​

​

-

​

​

-

​

​

838

​

​

5,327

​

​

15,658

​

​

9,648

​

​

12,327

​

​

-

​

​

43,798

Total commercial real estate – investor

​

​

159,654

​

​

367,512

​

​

230,189

​

​

113,711

​

​

69,980

​

​

72,929

​

​

20,449

​

​

-

​

​

1,034,424

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

124,059

​

​

134,383

​

​

177,553

​

​

103,109

​

​

42,839

​

​

91,062

​

​

33,243

​

​

-

​

​

706,248

Special Mention

​

​

1,650

​

​

17,415

​

​

9,585

​

​

3,128

​

​

218

​

​

3,681

​

​

-

​

​

-

​

​

35,677

Substandard

​

​

-

​

​

14,630

​

​

18,817

​

​

4,571

​

​

14,809

​

​

1,786

​

​

-

​

​

-

​

​

54,613

Total commercial real estate – owner occupied

​

​

125,709

​

​

166,428

​

​

205,955

​

​

110,808

​

​

57,866

​

​

96,529

​

​

33,243

​

​

-

​

​

796,538

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

42,808

​

​

66,513

​

​

32,942

​

​

100

​

​

1,593

​

​

1,083

​

​

3,186

​

​

-

​

​

148,225

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

9,993

​

​

-

​

​

7,162

​

​

-

​

​

-

​

​

17,155

Total construction

​

​

42,808

​

​

66,513

​

​

32,942

​

​

10,093

​

​

1,593

​

​

8,245

​

​

3,186

​

​

-

​

​

165,380

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – investor

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

5,062

​

​

14,434

​

​

9,027

​

​

6,227

​

​

6,508

​

​

8,469

​

​

1,471

​

​

-

​

​

51,198

Special Mention

​

​

-

​

​

-

​

​

66

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

66

Substandard

​

​

-

​

​

390

​

​

-

​

​

-

​

​

408

​

​

533

​

​

-

​

​

-

​

​

1,331

Total residential real estate – investor

​

​

5,062

​

​

14,824

​

​

9,093

​

​

6,227

​

​

6,916

​

​

9,002

​

​

1,471

​

​

-

​

​

52,595

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate – owner occupied

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

32,574

​

​

41,528

​

​

40,335

​

​

25,322

​

​

14,233

​

​

68,277

​

​

763

​

​

-

​

​

223,032

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

191

​

​

685

​

​

2,340

​

​

-

​

​

-

​

​

3,216

Total residential real estate – owner occupied

​

​

32,574

​

​

41,528

​

​

40,335

​

​

25,513

​

​

14,918

​

​

70,617

​

​

763

​

​

-

​

​

226,248

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multifamily

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

55,310

​

​

79,060

​

​

123,834

​

​

72,539

​

​

12,231

​

​

40,825

​

​

562

​

​

-

​

​

384,361

Special Mention

​

​

-

​

​

168

​

​

13,425

​

​

322

​

​

1,645

​

​

-

​

​

-

​

​

-

​

​

15,560

Substandard

​

​

-

​

​

1,009

​

​

-

​

​

-

​

​

-

​

​

766

​

​

-

​

​

-

​

​

1,775

Total multifamily

​

​

55,310

​

​

80,237

​

​

137,259

​

​

72,861

​

​

13,876

​

​

41,591

​

​

562

​

​

-

​

​

401,696

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HELOC

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

2,735

​

​

2,679

​

​

490

​

​

1,757

​

​

1,756

​

​

2,995

​

​

89,161

​

​

-

​

​

101,573

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

25

​

​

1

​

​

41

​

​

24

​

​

184

​

​

1,389

​

​

-

​

​

1,664

Total HELOC

​

​

2,735

​

​

2,704

​

​

491

​

​

1,798

​

​

1,780

​

​

3,179

​

​

90,550

​

​

-

​

​

103,237

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

4,060

​

​

2,278

​

​

1,569

​

​

153

​

​

85

​

​

73

​

​

14,697

​

​

-

​

​

22,915

Special Mention

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Substandard

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total other

​

​

4,060

​

​

2,278

​

​

1,569

​

​

153

​

​

85

​

​

73

​

​

14,697

​

​

-

​

​

22,915

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

963,994

​

​

958,129

​

​

682,010

​

​

344,237

​

​

158,932

​

​

280,746

​

​

450,136

​

​

1,408

​

​

3,839,592

Special Mention

​

​

1,650

​

​

20,320

​

​

35,050

​

​

3,621

​

​

1,863

​

​

3,681

​

​

4,392

​

​

-

​

​

70,577

Substandard

​

​

-

​

​

18,560

​

​

20,005

​

​

20,123

​

​

31,991

​

​

22,419

​

​

19,686

​

​

-

​

​

132,784

Total loans

​

$

965,644

​

$

997,009

​

$

737,065

​

$

367,981

​

$

192,786

​

$

306,846

​

$

474,214

​

$

1,408

​

$

4,042,953
Schedule of gross charge-offs

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

  

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Total

Commercial

​

$

31

​

$

7,205

​

$

756

​

$

670

​

$

-

​

$

24

​

$

8,686

Leases

​

​

-

​

​

-

​

​

96

​

​

53

​

​

-

​

​

-

​

​

149

Commercial real estate – investor

​

​

-

​

​

-

​

​

4,128

​

​

452

​

​

16

​

​

-

​

​

4,596

Commercial real estate – owner occupied

​

​

-

​

​

​

​

​

-

​

​

5,135

​

​

-

​

​

19

​

​

5,154

Construction

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – investor

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

242

​

​

242

Multifamily

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Other

​

​

5

​

​

-

​

​

-

​

​

-

​

​

-

​

​

279

​

​

284

Total

​

$

36

​

$

7,205

​

$

4,980

​

$

6,310

​

$

16

​

$

564

​

$

19,111

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

  

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Total

Commercial

​

$

-

​

$

-

​

$

466

​

$

364

​

$

-

​

$

55

​

$

885

Leases

​

​

-

​

​

870

​

​

-

​

​

-

​

​

12

​

​

-

​

​

882

Commercial real estate – investor

​

​

123

​

​

8,352

​

​

71

​

​

3,270

​

​

-

​

​

-

​

​

11,816

Commercial real estate – owner occupied

​

​

-

​

​

22

​

​

178

​

​

6,947

​

​

3,512

​

​

32

​

​

10,691

Construction

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – investor

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Multifamily

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Other

​

​

-

​

​

3

​

​

27

​

​

6

​

​

-

​

​

332

​

​

368

Total

​

$

123

​

$

9,247

​

$

742

​

$

10,587

​

$

3,524

​

$

419

​

$

24,642
Schedule of class of financing receivable

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

Term Extension

​

Combination - Term Extension, Interest Rate, and Payment Delay

​

Combination - Term Extension and Interest Rate

​

Combination - Term Extension and Payment 1

​

Total Modifications

​

Total Class of Financing Receivable

Commercial

​

$

3,385

​

$

3,794

​

$

-

​

$

-

​

$

7,179

​

0.9%

Commercial real estate – investor

​

​

12,509

​

​

-

​

​

-

​

​

-

​

​

12,509

​

1.2%

Commercial real estate – owner occupied

​

​

22,210

​

​

415

​

​

3,206

​

​

209

​

​

26,040

​

3.8%

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

0.0%

Multifamily

​

​

-

​

​

1,197

​

​

-

​

​

-

​

​

1,197

​

0.3%

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

0.0%

Total

​

$

38,104

​

$

5,406

​

$

3,206

​

$

209

​

$

46,925

​

1.2%

1 Payment modifications are either contractual delays in payment or a modification of the payment amount.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Term Extension

​

Combination - Term Extension, Interest Rate, and Payment Delay

​

Combination - Term Extension and Interest Rate

​

Combination - Term Extension and Payment 1

​

Total Modifications

​

Total Class of Financing Receivable

Commercial

​

$

3,000

​

$

-

​

$

979

​

$

-

​

$

3,979

​

0.5%

Commercial real estate – investor

​

​

13,521

​

​

-

​

​

-

​

​

7,646

​

​

21,167

​

2.0%

Commercial real estate – owner occupied

​

​

16,082

​

​

-

​

​

-

​

​

-

​

​

16,082

​

2.0%

Residential real estate – owner occupied

​

​

119

​

​

-

​

​

-

​

​

-

​

​

119

​

0.1%

Multifamily

​

​

233

​

​

-

​

​

-

​

​

-

​

​

233

​

0.1%

HELOC

​

​

166

​

​

-

​

​

-

​

​

-

​

​

166

​

0.2%

Total

​

$

33,121

​

$

-

​

$

979

​

$

7,646

​

$

41,746

​

1.0%

1 Payment modifications are either contractual delays in payment or a modification of the payment amount.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

30-59 days past due

​

60-89 Days Past Due

​

90 Days or Greater Past Due

​

Total Past Due

​

Current

​

Total Modifications

Commercial

​

$

-

​

$

-

​

$

-

​

$

-

​

$

7,179

​

$

7,179

Commercial real estate – investor

​

​

-

​

​

-

​

​

-

​

​

-

​

​

12,509

​

​

12,509

Commercial real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

26,040

​

​

26,040

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Multifamily

​

​

-

​

​

-

​

​

-

​

​

-

​

​

1,197

​

​

1,197

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

​

​

-

Total

​

$

-

​

$

-

​

$

-

​

$

-

​

$

46,925

​

$

46,925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

30-59 days past due

​

60-89 Days Past Due

​

90 Days or Greater Past Due

​

Total Past Due

​

Current

​

Total Modifications

Commercial

​

$

-

​

$

-

​

$

979

​

$

979

​

$

3,000

​

$

3,979

Commercial real estate – investor

​

​

838

​

​

-

​

​

-

​

​

838

​

​

20,329

​

​

21,167

Commercial real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

16,082

​

​

16,082

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

-

​

​

-

​

​

119

​

​

119

Multifamily

​

​

-

​

​

-

​

​

233

​

​

233

​

​

-

​

​

233

HELOC

​

​

-

​

​

-

​

​

-

​

​

-

​

​

166

​

​

166

Total

​

$

838

​

$

-

​

$

1,212

​

$

2,050

​

$

39,696

​

$

41,746

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

Weighted-Average Term Extension (In Months)

​

Weighted-Average Interest Rate Change

​

Weighted-Average Delay of Payment (In Months)

Commercial

​

​

6.49

​

​

0.50

%

​

​

4.00

Commercial real estate – investor

​

​

6.00

​

​

-

​

​

​

-

Commercial real estate – owner occupied

​

​

8.59

​

​

0.15

​

​

​

-

Residential real estate – owner occupied

​

​

-

​

​

-

​

​

​

-

Multifamily

​

​

60.00

​

​

2.75

​

​

​

-

HELOC

​

​

-

​

​

-

​

​

​

-

Total

​

​

8.89

​

​

0.69

%

​

​

4.00

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Weighted-Average Term Extension (In Months)

​

Weighted-Average Interest Rate Change

​

Weighted-Average Delay of Payment (In Months)

Commercial

​

​

8.31

​

​

5.00

%

​

​

-

Commercial real estate – investor

​

​

9.96

​

​

-

​

​

​

7.00

Commercial real estate – owner occupied

​

​

11.65

​

​

-

​

​

​

-

Residential real estate – owner occupied

​

​

39.00

​

​

-

​

​

​

-

Multifamily

​

​

21.00

​

​

-

​

​

​

-

HELOC

​

​

24.00

​

​

-

​

​

​

-

Total

​

​

10.65

​

​

5.00

%

​

​

7.00
Schedule of loans to principal officers, directors, and their affiliates, made in the ordinary course of business

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

 

Beginning balance

​

$

-

​

$

8,483

​

New loans, including acquired related party loans

​

 

-

​

 

30

​

Repayments and other reductions

​

 

-

​

 

(30)

​

Change in related party status

​

 

-

​

 

(8,483)

​

Ending balance

​

$

-

​

$

-

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Other Real Estate Owned (Tables)
 12 Months Ended
Dec. 31, 2024
Other Real Estate Owned  
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve

​

​

​

​

​

​

​

​

​

​

​

​

​

Twelve Months Ended

​

    

December 31, 

Other real estate owned

    

2024

    

2023

​

2022

Balance at beginning of period

​

$

5,123

​

$

1,561

​

$

2,356

Property additions, net of participation sold

​

​

21,083

​

​

5,580

​

​

87

Less:

​

​

​

​

​

​

​

​

​

Proceeds from property disposals, net of participation sold and gains/losses

​

​

2,845

​

​

1,749

​

​

778

Period valuation write-down

​

​

1,744

​

​

269

​

​

104

Balance at end of period

​

$

21,617

​

$

5,123

​

$

1,561
Schedule of activity in valuation allowance

​

​

​

​

​

​

​

​

​

​

​

​

​

Twelve Months Ended

​

    

December 31, 

​

    

2024

    

2023

  

2022

Balance at beginning of period

​

$

118

​

$

856

​

$

1,179

Provision for unrealized losses

​

​

1,744

​

​

269

​

​

104

Reductions taken on sales

​

​

-

​

​

(1,007)

​

​

(427)

Balance at end of period

​

$

1,862

​

$

118

​

$

856

​

​

​

​

​

​

​

​

​

​
Schedule of expenses related to foreclosed assets, net of lease revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

Twelve Months Ended

​

    

December 31, 

​

    

2024

    

2023

​

2022

Gain on sales, net

​

$

(390)

​

$

(256)

​

$

(163)

Provision for unrealized losses

​

​

1,744

​

​

269

​

​

104

Operating expenses

​

​

1,801

​

​

434

​

​

193

Less:

​

​

​

​

​

​

​

​

​

Lease revenue

​

​

935

​

​

48

​

​

4

Net OREO expense

​

$

2,220

​

$

399

​

$

130

​
v3.25.0.1
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Premises and Equipment  
Schedule of components of premises and equipment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

​

​

​

   

​

​

   

Accumulated

   

​

​

   

​

​

   

Accumulated

   

​

​

   

​

​

​

​

​

​

Depreciation/

​

Net Book

​

​

​

​

Depreciation/

​

Net Book

​

​

​

​

Cost

​

Amortization

​

Value

​

Cost

​

Amortization

​

Value

​

​

Land

​

$

30,981

​

$

-

​

$

30,981

​

$

29,741

​

$

-

​

$

29,741

​

​

Buildings

​

 

61,428

​

 

27,413

​

 

34,015

​

 

58,311

​

 

25,911

​

 

32,400

​

​

Leasehold improvements

​

 

10,341

​

 

2,112

​

 

8,229

​

 

7,785

​

 

1,574

​

 

6,211

​

​

Furniture and equipment

​

 

63,884

​

 

49,798

​

 

14,086

​

 

57,447

​

​

46,489

​

 

10,958

​

​

Total Premises and Equipment

​

$

166,634

​

$

79,323

​

$

87,311

​

$

153,284

​

$

73,974

​

$

79,310

​

​
Schedule of Right-of-use asset and lease obligations by type of property

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

Right-of-Use Asset

​

Lease Liability

​

Weight Average Lease Term in Years

​

Weight Average Discount Rate

Operating Leases

​

​

​

​

​

​

​

​

​

​

​

​

Land and building leases

​

$

7,359

​

$

12,465

​

​

13.7

​

4.72

%

Total operating leases

​

$

7,359

​

$

12,465

​

​

13.7

​

4.72

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Right-of-Use Asset

​

Lease Liability

​

Weight Average Lease Term in Years

​

Weight Average Discount Rate

Operating Leases

​

​

​

​

​

​

​

​

​

​

​

​

Land and building leases

​

$

7,093

​

$

11,578

​

​

12.5

​

4.65

%

Total operating leases

​

$

7,093

​

$

11,578

​

​

12.5

​

4.65

%
Schedule of operating lease costs

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

​

2022

Operating lease cost

​

$

1,337

​

$

988

​

$

716

Short-term lease cost

​

​

54

​

​

64

​

​

60

Total operating lease cost

​

$

1,391

​

$

1,052

​

$

776
Schedule of maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability as of December 31, 2024, is listed below.

​

​

​

​

​

Lease payments

​

​

​

Due in one year or less

​

$

2,095

Due in one year through two years

​

​

1,903

Due in two years through three years

​

​

1,847

Due in three years through four years

​

​

1,756

Due in four years through five years

​

​

1,692

Thereafter

​

​

5,824

Total lease payments

​

​

15,117

Discount on cash flows

​

​

(2,652)

Total lease liabilities

​

$

12,465

​
v3.25.0.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2024
Deposits  
Schedule of major classifications of deposits

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

  

Noninterest bearing demand

​

$

1,704,920

​

$

1,834,891

​

Savings

​

​

932,201

​

​

971,334

​

NOW accounts

​

​

621,434

​

​

565,375

​

Money market accounts

​

​

761,499

​

​

671,240

​

Certificates of deposit of less than $100,000

​

​

352,526

​

​

266,035

​

Certificates of deposit of $100,000 through $250,000

​

​

270,837

​

​

180,289

​

Certificates of deposit of more than $250,000

​

​

125,314

​

​

81,582

​

Total deposits

​

$

4,768,731

​

$

4,570,746

​

​

​

​

​

​

​

​

​
Summary of scheduled maturities of time deposits

​

​

​

​

​

​

2025

    

$

700,746

​

2026

​

 

27,775

​

2027

​

 

7,645

​

2028

​

 

8,130

​

2029

​

 

4,381

​

Total time deposits

​

$

748,677

​

​
v3.25.0.1
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2024
Borrowings  
Summary of borrowings and junior subordinated debentures

The following table is a summary of borrowings as of December 31, 2024:

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

  

Securities sold under repurchase agreements

​

$

36,657

​

$

26,470

​

Other short-term borrowings

​

​

20,000

​

​

405,000

​

Junior subordinated debentures1

​

​

25,773

​

​

25,773

​

Subordinated debentures

​

​

59,467

​

​

59,382

​

Total borrowings

​

$

141,897

​

$

516,625

​

​

​

​

​

​

​

​

​

1 See Note 10: Junior Subordinated Debentures, below.
Summary of scheduled maturities and weighted average rates of borrowings

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

 

​

​

​

​

​

Weighted

​

​

​

​

Weighted

 

​

​

​

​

​

Average

​

​

​

​

Average

 

​

    

Balance

    

Rate

    

Balance

    

Rate

 

2024

​

$

-

 

-

%

$

431,470

​

4.98

%  

2025

​

​

56,657

​

2.47

​

​

-

 

-

​

2026

​

 

-

 

-

​

 

-

 

-

​

2027

​

 

-

 

-

​

 

-

​

-

​

2028

​

 

-

 

-

​

 

-

 

-

​

2029

​

 

-

 

-

​

 

-

​

-

​

Thereafter

​

 

85,240

 

3.89

​

 

85,155

 

4.10

​

Total borrowings

​

$

141,897

 

3.32

%  

$

516,625

 

4.84

%

​
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Schedule of components of income tax expense (benefit)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Current federal

​

$

22,011

​

$

20,724

​

$

13,241

Current state

​

​

7,048

​

​

10,098

​

​

6,209

Deferred federal

​

​

(1,419)

​

​

1,964

​

​

3,338

Deferred state

​

​

52

​

​

(107)

​

​

1,356

Total income tax expense

​

$

27,692

​

$

32,679

​

$

24,144

​

​

​

​

​

​

​

​

​

​
Schedule of components of deferred tax assets and liabilities

​

​

​

​

​

​

​

​

​

    

2024

    

2023

Accrued bonus

​

$

2,601

​

$

2,500

Allowance for credit losses

​

​

12,241

​

​

13,077

Deferred compensation

​

​

2,100

​

​

1,622

Stock based compensation

​

​

1,920

​

​

1,768

Business combination adjustments

​

​

-

​

​

270

Lease liability

​

​

3,315

​

​

3,201

Other assets

​

​

2,357

​

​

1,602

Total deferred tax assets

​

​

24,534

​

​

24,040

​

​

​

​

​

​

​

Accumulated depreciation on premises and equipment

​

​

(5,844)

​

​

(5,454)

Goodwill amortization/impairment

​

​

(604)

​

​

(465)

Mortgage servicing rights

​

​

(2,728)

​

​

(2,842)

Amortization of core deposit intangible

​

​

(2,248)

​

​

(2,987)

Right of use asset

​

​

(1,972)

​

​

(1,969)

Acquired securities

​

​

(1,997)

​

​

(2,376)

Other liabilities

​

​

(1,090)

​

​

(1,263)

Total deferred tax liabilities

​

​

(16,483)

​

​

(17,356)

Net deferred tax asset before adjustments related to other comprehensive income

​

​

8,051

​

​

6,684

Tax effect of adjustments related to other comprehensive income

​

​

18,568

​

​

24,393

Net deferred tax asset

​

$

26,619

​

$

31,077

​

​

​

​

​

​

​
Schedule of difference between effective tax rates from federal statutory rates

Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31, due to the following:

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Tax at statutory federal income tax rate

​

$

23,721

​

$

26,126

​

$

19,225

Nontaxable interest income, net of disallowed interest deduction

​

​

(820)

​

​

(947)

​

​

(1,097)

BOLI income

​

​

(950)

​

​

(445)

​

​

(151)

State income taxes, net of federal benefit

​

​

5,775

​

​

7,911

​

​

6,091

Stock based compensation

​

​

(139)

​

​

(132)

​

​

(43)

Other, net

​

​

105

​

​

166

​

​

119

Total tax at effective tax rate

​

$

27,692

​

$

32,679

​

$

24,144

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Equity Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2024
Equity Compensation Plans  
Summary of changes in nonvested shares of restricted share rights

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

​

​

Weighted

​

​

Restricted

​

Average

​

​

Stock Shares

​

Grant Date

​

    

and Units

    

Fair Value

Unvested at January 1

​

709,237

​

$

14.26

Granted

​

339,235

​

​

13.44

Vested

​

(248,386)

​

​

11.54

Forfeited

​

(21,808)

​

​

15.10

Unvested at December 31

​

778,278

​

$

14.75

​

​

​

​

​

​
v3.25.0.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share  
Schedule of earnings per share

The earnings per share, both basic and diluted, are included below as of December 31, (in thousands except for per share data):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

    

2024

    

2023

  

2022

Basic earnings per share:

​

​

​

​

​

​

​

​

​

​

Weighted-average common shares outstanding

​

​

​

44,828,290

​

​

44,663,722

​

​

44,526,655

Net income

​

​

$

85,264

​

$

91,729

​

$

67,405

Basic earnings per share

​

​

$

1.90

​

$

2.05

​

$

1.51

​

​

​

​

​

​

​

​

​

​

​

Diluted earnings per share:

​

​

​

​

​

​

​

​

​

​

Weighted-average common shares outstanding

​

​

​

44,828,290

​

​

44,663,722

​

​

44,526,655

Dilutive effect of unvested restricted awards 1

​

​

​

811,061

​

​

731,288

​

​

686,433

Diluted average common shares outstanding

​

​

​

45,639,351

​

​

45,395,010

​

​

45,213,088

​

​

​

​

​

​

​

​

​

​

​

Net Income

​

​

$

85,264

​

$

91,729

​

$

67,405

Diluted earnings per share

​

​

$

1.87

​

$

2.02

​

$

1.49

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1 Includes the common stock equivalents for restricted share rights that are dilutive.

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Commitments (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments  
Schedule of contractual commitments due to letters of credit

The following table is a summary of financial instrument commitments as of December 31, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

December 31, 2023

​

​

    

Fixed

    

Variable

    

Total

    

Fixed

    

Variable

    

Total

  

Letters of credit:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Borrower:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial standby

​

$

188

​

$

16,322

​

$

16,510

​

$

173

​

$

16,621

​

$

16,794

​

Performance standby

​

​

552

​

​

10,207

​

​

10,759

​

​

562

​

​

13,689

​

​

14,251

​

​

​

​

740

​

​

26,529

​

​

27,269

​

​

735

​

​

30,310

​

​

31,045

​

Non-borrower:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Performance standby

​

​

-

​

​

67

​

​

67

​

​

-

​

​

67

​

​

67

​

Total letters of credit

​

$

740

​

$

26,596

​

$

27,336

​

$

735

​

$

30,377

​

$

31,112

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Unused loan commitments:

​

$

163,282

​

$

616,533

​

$

779,815

​

$

140,305

​

$

694,960

​

$

835,265

​
Schedule of estimated aggregate minimum annual rent commitments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2030

​

2025

​

2026

​

2027

​

2028

​

2029

​

and thereafter

Rental commitment

$

2,149

​

$

1,945

​

$

1,877

​

$

1,758

​

$

1,692

​

$

5,824
v3.25.0.1
Regulatory & Capital Matters (Tables)
 12 Months Ended
Dec. 31, 2024
Regulatory & Capital Matters  
Schedule of capital levels and industry defined regulatory minimum required levels

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum Capital

​

Well Capitalized

​

​

​

​

​

​

​

​

​

Adequacy with Capital

​

Under Prompt Corrective

​

​

​

Actual

​

Conservation Buffer, if applicable1

​

Action Provisions2

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

​

2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common equity tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

607,294

​

12.82

%

​

$

331,596

​

7.00

%

​

​

N/A

​

N/A

​

Old Second Bank

​

​

610,285

​

12.89

​

​

​

331,419

​

7.00

​

​

$

307,747

​

6.50

%

Total capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

736,492

​

15.54

​

​

​

497,630

​

10.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

654,484

​

13.82

​

​

​

497,256

​

10.50

​

​

​

473,577

​

10.00

​

Tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

632,294

​

13.34

​

​

​

402,886

​

8.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

610,285

​

12.89

​

​

​

402,438

​

8.50

​

​

​

378,765

​

8.00

​

Tier 1 capital to average assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

632,294

​

11.30

​

​

​

223,821

​

4.00

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

610,285

​

10.90

​

​

​

223,958

​

4.00

​

​

​

279,947

​

5.00

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common equity tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

547,721

​

11.37

%

​

$

337,207

​

7.00

%

​

​

N/A

​

N/A

​

Old Second Bank

​

​

592,413

​

12.32

​

​

​

336,598

​

7.00

​

​

$

312,556

​

6.50

%

Total capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

677,076

​

14.06

​

​

​

505,640

​

10.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

636,768

​

13.24

​

​

​

504,990

​

10.50

​

​

​

480,943

​

10.00

​

Tier 1 capital to risk weighted assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

572,721

​

11.89

​

​

​

409,430

​

8.50

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

592,413

​

12.32

​

​

​

408,727

​

8.50

​

​

​

384,684

​

8.00

​

Tier 1 capital to average assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

572,721

​

10.06

​

​

​

227,722

​

4.00

​

​

​

N/A

​

N/A

​

Old Second Bank

​

​

592,413

​

10.41

​

​

​

227,632

​

4.00

​

​

​

284,540

​

5.00

​

​

1 Amounts are shown inclusive of a capital conservation buffer of 2.50%.

2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.”

​
v3.25.0.1
Mortgage Banking Derivatives (Tables)
 12 Months Ended
Dec. 31, 2024
Not Designated as Hedging Instrument | Mortgage Banking Derivatives.  
Mortgage Banking Derivatives  
Schedule of the effect of fair value and cash flow hedge accounting

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

 

Forward contracts:

​

​

​

​

​

​

​

Notional amount

​

$

5,500

​

$

6,000

​

Fair value

​

 

10

​

 

(46)

​

​

​

​

​

​

​

​

​

Rate lock commitments:

​

​

​

​

​

​

​

Notional amount

​

$

3,167

​

$

1,312

​

Fair value

​

 

45

​

 

36

​
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Measurements  
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Securities available-for-sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

194,143

​

$

-

​

$

-

​

$

194,143

U.S. government agencies

​

​

-

​

​

37,814

​

​

-

​

​

37,814

U.S. government agencies mortgage-backed

​

​

-

​

​

100,277

​

​

-

​

​

100,277

States and political subdivisions

​

​

-

​

​

203,560

​

​

11,896

​

​

215,456

Collateralized mortgage obligations

​

​

-

​

​

368,616

​

​

-

​

​

368,616

Asset-backed securities

​

​

-

​

​

59,049

​

​

3,254

​

​

62,303

Collateralized loan obligations

​

​

-

​

​

183,092

​

​

-

​

​

183,092

Loans held-for-sale

​

​

-

​

​

1,556

​

​

-

​

​

1,556

Mortgage servicing rights

​

​

-

​

​

-

​

​

10,374

​

​

10,374

Interest rate derivatives 

​

​

-

​

​

5,526

​

​

-

​

​

5,526

Mortgage banking derivatives

​

​

-

​

​

55

​

​

-

​

​

55

Total

​

$

194,143

​

$

959,545

​

$

25,524

​

$

1,179,212

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap agreements, including risk participation agreements

​

$

-

​

$

3,192

​

$

-

​

$

3,192

Total

​

$

-

​

$

3,192

​

$

-

​

$

3,192

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Securities available-for-sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

169,574

​

$

-

​

$

-

​

$

169,574

U.S. government agencies

​

​

-

​

​

56,959

​

​

-

​

​

56,959

U.S. government agencies mortgage-backed

​

​

-

​

​

106,370

​

​

-

​

​

106,370

States and political subdivisions

​

​

-

​

​

214,006

​

​

13,059

​

​

227,065

Collateralized mortgage obligations

​

​

-

​

​

392,544

​

​

-

​

​

392,544

Asset-backed securities

​

​

-

​

​

66,166

​

​

2,270

​

​

68,436

Collateralized loan obligations

​

​

-

​

​

171,881

​

​

-

​

​

171,881

Loans held-for-sale

​

​

-

​

​

1,322

​

​

-

​

​

1,322

Mortgage servicing rights

​

​

-

​

​

-

​

​

10,344

​

​

10,344

Interest rate derivatives

​

​

-

​

​

5,391

​

​

-

​

​

5,391

Total

​

$

169,574

​

$

1,014,639

​

$

25,673

​

$

1,209,886

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap agreements, including risk participation agreements

​

$

-

​

$

8,324

​

$

-

​

$

8,324

Mortgage banking derivatives

​

​

-

​

​

10

​

​

-

​

​

10

Total

​

$

-

​

$

8,334

​

$

-

​

$

8,334
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2024

​

​

Securities available-for-sale

​

​

​

​

​

​

​

States and

​

Mortgage

​

​

Asset-backed

​

Political

​

Servicing

​

   

Securities

​

Subdivisions

   

Rights

Beginning balance January 1, 2024

​

$

2,270

​

$

13,059

​

$

10,344

Transfers out of Level 3

​

​

-

​

​

-

​

​

-

Total gains or losses

​

​

​

​

​

​

​

​

​

Included in earnings

​

​

-

​

​

(125)

​

​

(160)

Included in other comprehensive income

​

​

(69)

​

​

(444)

​

​

-

Purchases, issuances, sales, and settlements

​

​

​

​

​

​

​

​

​

Purchases

​

​

1,209

​

​

-

​

​

-

Issuances

​

​

-

​

​

-

​

​

753

Settlements

​

​

(156)

​

​

(594)

​

​

(563)

Ending balance December 31, 2024

​

$

3,254

​

$

11,896

​

$

10,374

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2023

​

​

​

​

Securities available-for-sale

​

​

​

​

​

​

​

​

Collateralized

​

States and

​

Mortgage

​

​

​

Asset-backed

​

Mortgage

​

Political

​

Servicing

​

​

    

Securities

​

Obligations

​

Subdivisions

    

Rights

    

Beginning balance January 1, 2023

​

$

16,740

​

$

6,770

​

$

12,501

​

$

11,189

​

Transfers into Level 3

​

​

-

​

​

-

​

​

-

​

​

-

​

Transfers out of Level 3

​

​

(14,885)

​

​

(6,764)

​

​

-

​

​

-

​

Total gains or losses

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in earnings

​

​

(11)

​

​

-

​

​

(135)

​

​

(924)

​

Included in other comprehensive income

​

​

239

​

​

(6)

​

​

998

​

​

-

​

Purchases, issuances, sales, and settlements

​

​

​

​

​

​

​

​

​

​

​

​

​

Purchases

​

​

782

​

​

-

​

​

-

​

​

-

​

Issuances

​

​

-

​

​

-

​

​

-

​

​

580

​

Settlements

​

​

(595)

​

​

-

​

​

(305)

​

​

(501)

​

Ending balance December 31, 2023

​

$

2,270

​

$

-

​

$

13,059

​

$

10,344

​
Schedule of quantitative information about level 3 fair value measurements

​

The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

Measured at fair value

​

​

​

​

​

​

Significant Unobservable

​

​

​

Average

on a recurring basis:

   

Fair Value

   

Valuation Methodology

   

Inputs

   

Range of Input

   

of Inputs

​

​

​

​

​

​

​

​

​

​

​

​

​

States and political subdivisions

​

$

11,896

​

Discounted Cash Flow

​

Discount Rate

​

5.3 –5.4%

​

5.4

%

​

​

​

​

​

​

​

Liquidity Premium

​

0.5 – 0.5%

​

0.5

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Asset-backed securities

​

$

3,254

​

Discounted Cash Flow

​

Discount Rate

​

4.9 – 4.9% 

​

4.9

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage servicing rights

​

$

10,374

​

Discounted Cash Flow

​

Discount Rate

​

 9.0 – 11.0% 

​

9.0

%

​

​

​

​

​

​

​

Prepayment Speed

​

0.0 – 31.5%

​

6.9

%

​

​

​

​

​

​

​

​

​

​

​

​

​

The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

Measured at fair value

​

​

​

​

​

​

Significant Unobservable

​

​

​

Average

on a recurring basis:

   

Fair Value

   

Valuation Methodology

   

Inputs

   

Range of Input

   

of Inputs

​

​

​

​

​

​

​

​

​

​

​

​

​

States and political subdivisions

​

$

13,059

​

Discounted Cash Flow

​

Discount Rate

​

3.2 – 5.4%

​

4.7

%

​

​

​

​

​

​

​

Liquidity Premium

​

0.5 – 0.5%

​

0.5

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Asset-backed securities

​

$

2,270

​

Discounted Cash Flow

​

Discount Rate

​

5.6 – 5.6%

​

5.6

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage servicing rights

​

$

10,344

​

Discounted Cash Flow

​

Discount Rate

​

 9.0 – 11.0% 

​

9.0

%

​

​

​

​

​

​

​

Prepayment Speed

​

5.1 – 33.0%

​

6.6

%
Schedule of assets measured at fair value on a nonrecurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Individually evaluated loans1

​

$

-

​

$

-

​

$

19,058

​

$

19,058

Other real estate owned, net2

​

​

-

​

​

-

​

​

21,617

​

​

21,617

Total

​

$

-

​

$

-

​

$

40,675

​

$

40,675

​

1Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans and to a lesser extent the discounted cash flow, had a carrying amount of $26.2 million and a valuation allowance of $7.2 million, resulting in a decrease of specific allocations within the provision for credit losses of $3.9 million for the year ending December 31, 2024.

​

2OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $21.6 million, which is made up of the outstanding balance of $23.5 million, net of a valuation allowance of $1.9 million, at December 31, 2024.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Individually evaluated loans1

​

$

-

​

$

-

​

$

66,180

​

$

66,180

Other real estate owned, net2

​

​

-

​

​

-

​

​

5,123

​

​

5,123

Total

​

$

-

​

$

-

​

$

71,303

​

$

71,303

​

1Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans and to a lesser extent the discounted cash flow, had a carrying amount of $77.3 million and a valuation allowance of $11.1 million, resulting in an increase of specific allocations within the provision for credit losses of $6.5 million for the year ending December 31, 2023.

​

2OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $5.1 million, which is made up of the outstanding balance of $5.2 million, net of a valuation allowance of $118,000 at December 31, 2023.
v3.25.0.1
Fair Values of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Values of Financial Instruments  
Schedule of carrying amount and estimated fair values of financial instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

Carrying

​

Fair

​

​

​

​

​

​

​

​

​

​

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

​

$

52,175

​

$

52,175

​

$

52,175

​

$

-

​

$

-

Interest earning deposits with financial institutions

​

​

47,154

​

​

47,154

​

​

47,154

​

​

-

​

​

-

Securities available-for-sale

​

​

1,161,701

​

​

1,161,701

​

​

194,143

​

​

952,408

​

​

15,150

FHLBC and FRBC stock

​

​

19,441

​

​

19,441

​

​

-

​

​

19,441

​

​

-

Loans held-for-sale

​

​

1,556

​

​

1,556

​

​

-

​

​

1,556

​

​

-

Net loans

​

​

3,937,717

​

​

3,818,303

​

​

-

​

​

-

​

​

3,818,303

Interest rate swap and rate cap agreements

​

​

5,498

​

​

5,498

​

​

-

​

​

5,498

​

​

-

Interest rate lock commitments and forward contracts

​

​

55

​

​

55

​

​

-

​

​

55

​

​

-

Interest receivable on securities and loans

​

​

24,598

​

​

24,598

​

​

-

​

​

24,598

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest bearing deposits

​

$

1,704,920

​

$

1,704,920

​

$

1,704,920

​

$

-

​

$

-

Interest bearing deposits

​

​

3,063,811

​

​

3,056,180

​

​

-

​

​

3,056,180

​

​

-

Securities sold under repurchase agreements

​

​

36,657

​

​

36,657

​

​

-

​

​

36,657

​

​

-

Other short-term borrowings

​

​

20,000

​

​

20,000

​

​

-

​

​

20,000

​

​

-

Junior subordinated debentures

​

​

25,773

​

​

21,444

​

​

-

​

​

21,444

​

​

-

Subordinated debentures

​

​

59,467

​

​

54,533

​

​

-

​

​

54,533

​

​

-

Interest rate swap and rate cap agreements

​

​

3,187

​

​

3,187

​

​

-

​

​

3,187

​

​

-

Interest payable on deposits and borrowings

​

​

3,871

​

​

3,871

​

​

-

​

​

3,871

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

Carrying

​

Fair

​

​

​

​

​

​

​

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

​

$

55,534

​

$

55,534

​

$

55,534

​

$

-

​

$

-

Interest earning deposits with financial institutions

​

​

44,611

​

​

44,611

​

​

44,611

​

​

-

​

​

-

Securities available-for-sale

​

​

1,192,829

​

​

1,192,829

​

​

169,574

​

​

1,007,926

​

​

15,329

FHLBC and FRBC stock

​

​

33,355

​

​

33,355

​

​

-

​

​

33,355

​

​

-

Loans held-for-sale

​

​

1,322

​

​

1,322

​

​

-

​

​

1,322

​

​

-

Net loans

​

​

3,998,689

​

​

3,876,381

​

​

-

​

​

-

​

​

3,876,381

Interest rate swap and rate cap agreements

​

​

5,302

​

​

5,302

​

​

-

​

​

5,302

​

​

-

Interest receivable on securities and loans

​

​

27,159

​

​

27,159

​

​

-

​

​

27,159

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest bearing deposits

​

$

1,834,891

​

$

1,834,891

​

$

1,834,891

​

$

-

​

$

-

Interest bearing deposits

​

​

2,735,855

​

​

2,726,223

​

​

-

​

​

2,726,223

​

​

-

Securities sold under repurchase agreements

​

​

26,470

​

​

26,470

​

​

-

​

​

26,470

​

​

-

Other short-term borrowings

​

​

405,000

​

​

405,000

​

​

-

​

​

405,000

​

​

-

Junior subordinated debentures

​

​

25,773

​

​

20,361

​

​

-

​

​

20,361

​

​

-

Subordinated debentures

​

​

59,382

​

​

47,982

​

​

-

​

​

47,982

​

​

-

Interest rate swap and rate cap agreements

​

​

8,324

​

​

8,324

​

​

-

​

​

8,324

​

​

-

Interest rate lock commitments and forward contracts

​

​

10

​

​

10

​

​

-

​

​

10

​

​

-

Interest payable on deposits and borrowings

​

​

2,962

​

​

2,962

​

​

-

​

​

2,962

​

​

-

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables)
 12 Months Ended
Dec. 31, 2024
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions  
Schedule of fair value of derivative financial instruments as well as their classification on the Balance Sheet

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

No. of Trans.

​

Notional Amount $

​

Balance Sheet Location

Fair Value $

​

Balance Sheet Location

Fair Value $

Derivatives designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swap agreements

5

​

325,774

​

Other Assets

3,823

​

Other Liabilities

1,512

Total derivatives designated as hedging instruments

​

​

​

​

​

3,823

​

​

1,512

​

​

​

​

​

​

​

​

​

​

Derivatives not designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swaps with commercial loan customers and rate cap

13

​

154,137

​

Other Assets

1,675

​

Other Liabilities

1,675

Interest rate lock commitments and forward contracts

30

​

8,667

​

Other Assets

55

​

Other Liabilities

-

Other contracts

5

​

58,259

​

Other Assets

28

​

Other Liabilities

5

Total derivatives not designated as hedging instruments

​

​

​

​

​

1,758

​

​

1,680

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

No. of Trans.

​

Notional Amount $

​

Balance Sheet Location

Fair Value $

​

Balance Sheet Location

Fair Value $

Derivatives designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swap agreements

5

​

325,774

​

Other Assets

2,576

​

Other Liabilities

5,598

Total derivatives designated as hedging instruments

​

​

​

​

​

2,576

​

​

5,598

​

​

​

​

​

​

​

​

​

​

Derivatives not designated as hedging instruments

​

​

​

​

​

​

​

​

​

Interest rate swaps with commercial loan customers

17

​

104,777

​

Other Assets

2,726

​

Other Liabilities

2,726

Interest rate lock commitments and forward contracts

24

​

8,375

​

Other Assets

(10)

​

Other Liabilities

-

Other contracts

4

​

44,790

​

Other Assets

89

​

Other Liabilities

-

Total derivatives not designated as hedging instruments

​

​

​

​

​

2,805

​

​

2,726
v3.25.0.1
Parent Company Condensed Financial Information (Tables)
 12 Months Ended
Dec. 31, 2024
Parent Company Condensed Financial Information  
Schedule of condensed balance sheets

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

 

Assets

​

​

​

​

​

​

​

Noninterest bearing deposit with bank subsidiary

​

$

78,007

​

$

36,686

​

Investment in subsidiaries

​

 

671,894

​

 

620,663

​

Other assets

​

 

7,457

​

 

6,183

​

Total assets

​

$

757,358

​

$

663,532

​

​

​

​

​

​

​

​

​

Liabilities and Stockholders’ Equity

​

​

​

​

​

​

​

Junior subordinated debentures

​

$

25,773

​

$

25,773

​

Subordinated debt

​

 

59,467

​

 

59,382

​

Senior notes

​

​

-

​

​

-

​

Notes payable

​

​

-

​

​

-

​

Other liabilities

​

 

1,084

​

 

1,096

​

Stockholders’ equity

​

 

671,034

​

 

577,281

​

Total liabilities and stockholders' equity

​

$

757,358

​

$

663,532

​
Schedule of condensed statements of operations

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Operating Income

​

​

​

​

​

​

​

​

​

Cash dividends received from subsidiaries

​

$

55,000

​

$

65,000

​

$

40,000

Other income

​

 

59

​

 

67

​

 

29

Total operating income

​

 

55,059

​

 

65,067

​

 

40,029

Operating Expenses

​

​

​

​

​

​

​

​

​

Junior subordinated debentures

​

 

1,127

​

 

1,095

​

 

1,136

Subordinated debt

​

​

2,185

​

​

2,185

​

​

2,185

Senior notes

​

​

-

​

​

2,408

​

​

2,682

Notes payable

​

 

-

​

 

87

​

 

385

Other expenses

​

 

6,209

​

 

5,947

​

 

5,086

Total operating expense

​

 

9,521

​

 

11,722

​

 

11,474

Income before income taxes and equity in undistributed net income of subsidiaries

​

 

45,538

​

 

53,345

​

 

28,555

Income tax benefit

​

 

(2,644)

​

 

(3,309)

​

 

(3,216)

Income before equity in undistributed net income of subsidiaries

​

 

48,182

​

 

56,654

​

 

31,771

Equity in undistributed net income of subsidiaries

​

 

37,082

​

 

35,075

​

 

35,634

Net income available to common stockholders

​

$

85,264

​

$

91,729

​

$

67,405
Schedule of condensed statements of cash Flows

​

​

​

​

​

​

​

​

​

​

​

​

    

2024

    

2023

    

2022

Cash Flows from Operating Activities

​

​

​

​

​

​

​

​

​

Net Income

​

$

85,264

​

$

91,729

​

$

67,405

Adjustments to reconcile net income to net cash from operating activities:

​

​

​

​

​

​

​

​

​

Equity in undistributed net income of subsidiaries

​

 

(37,082)

​

 

(35,075)

​

 

(35,634)

Provision for deferred tax (benefit) expense

​

 

(152)

​

 

(513)

​

 

91

Change in taxes payable

​

 

(250)

​

 

794

​

 

(4,694)

Change in other assets

​

 

12

​

 

(43)

​

 

12

Stock-based compensation

​

 

3,914

​

 

3,603

​

 

2,960

Other, net

​

 

76

​

 

575

​

 

(2,753)

Net cash provided by operating activities

​

 

51,782

​

 

61,070

​

 

27,387

​

​

​

​

​

​

​

​

​

​

Cash Flows from Investing Activities

​

​

​

​

​

​

​

​

​

Cash paid for acquisition, net of cash and cash equivalents retained

​

 

-

​

 

-

​

 

-

Net cash provided by (used in) investing activities

​

 

-

​

 

-

​

 

-

​

​

​

​

​

​

​

​

​

​

Cash Flows from Financing Activities

​

​

​

​

​

​

​

​

​

Dividend paid on common stock

​

​

(9,413)

​

​

(8,946)

​

​

(8,877)

Purchases of treasury stock

​

 

(1,048)

​

 

(605)

​

 

(455)

Repayment of term note

​

​

-

​

​

(9,000)

​

​

(4,000)

Repayment of senior note

​

​

-

​

​

(45,000)

​

​

-

Net cash used in financing activities

​

 

(10,461)

​

 

(63,551)

​

 

(13,332)

Net change in cash and cash equivalents

​

 

41,321

​

 

(2,481)

​

 

14,055

Cash and cash equivalents at beginning of year

​

 

36,686

​

 

39,167

​

 

25,112

Cash and cash equivalents at end of year

​

$

78,007

​

$

36,686

​

$

39,167

​

​

​

​

​

​

​

​

​

​

​
v3.25.0.1
Summary of Significant Accounting Policies (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Feb. 24, 2025
$ / shares
shares
Mar. 31, 2025
$ / shares
Dec. 31, 2024
USD ($)
segment
Center
$ / shares
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Number of banking centers | Center     53    
Operating segment | segment     1    
Reportable Segment | segment     1    
Deferred tax assets     $ 24,534 $ 24,040  
90-Days or Greater Past Due Loans          
Period from due date after which accrual of interest income is discontinued     90 days    
Goodwill and Core Deposit Intangible          
Amortization of core deposit intangible     $ 2,440 $ 2,461 $ 2,626
Expected future annual amortization expense:          
Percentage of forfeiture assumption for group grant     5.00%    
Dividends declared per share | $ / shares     $ 0.21 $ 0.20 $ 0.20
Core Deposits          
Goodwill and Core Deposit Intangible          
Carrying value of the intangible asset     $ 22,000 $ 11,200  
Amortization of core deposit intangible     2,400 $ 2,500 $ 2,600
Expected future annual amortization expense:          
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2025     4,100    
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2026     3,700    
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2027     3,300    
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2028     2,900    
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2029     $ 2,600    
GCFC/ABC Bank | Core Deposits          
Goodwill and Core Deposit Intangible          
Useful life (in years)     10 years    
Subsequent Event | O 2025 Q1 Dividends          
Expected future annual amortization expense:          
Dividends declared date   Jan. 21, 2025      
Dividends declared per share | $ / shares   $ 0.06      
Dividends payable date   Feb. 10, 2025      
Dividends record date   Jan. 31, 2025      
Subsequent Event | Bancorp Financial          
Expected future annual amortization expense:          
Number of Shares receive | shares 2.5814        
Cash consideration per share | $ / shares $ 15.93        
v3.25.0.1
Summary of Significant Accounting Policies - Premises and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Transfers and Servicing of Financial Assets    
Mortgage loans serviced for others $ 709.1 $ 737.2
Other Assets    
Premises and equipment    
Fixed Assets Held for Sale $ 1.4 $ 1.0
Buildings | Minimum    
Premises and equipment    
Useful lives 25 years  
Buildings | Maximum    
Premises and equipment    
Useful lives 40 years  
Building Improvements | Minimum    
Premises and equipment    
Useful lives 3 years  
Building Improvements | Maximum    
Premises and equipment    
Useful lives 15 years  
Furniture and equipment | Minimum    
Premises and equipment    
Useful lives 3 years  
Furniture and equipment | Maximum    
Premises and equipment    
Useful lives 10 years  
v3.25.0.1
Acquisition (Details)
$ in Thousands
 12 Months Ended
Dec. 06, 2024
USD ($)
location
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Liabilities      
Goodwill   $ 93,260 $ 86,478
First Merchants Corporation      
Assets      
Cash and due from banks $ 419    
Loans, net of purchase accounting adjustments 7,149    
Premises and equipment 3,934    
Core deposit intangible 13,254    
Other assets 19    
Total assets 24,775    
Liabilities      
Noninterest bearing demand 26,497    
Savings, NOW and money market 157,126    
Time 84,373    
Total deposits 267,996    
Other liabilities 585    
Total liabilities 268,581    
Cash consideration received (237,023)    
Total liabilities assumed and cash consideration received for transaction 31,558    
Goodwill $ 6,783    
Number of branches acquired | location 5    
Measurement period 1 year    
Expenses related to acquisition   $ 1,900  
v3.25.0.1
Cash and Due from Banks (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Cash and Due from Banks.    
Cash and cash equivalents $ 99,329 $ 100,145
v3.25.0.1
Securities - Amortized Cost and Fair Value (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
item
Dec. 31, 2023
USD ($)
Securities Available-for-Sale    
Amortized Cost $ 1,230,328,000 $ 1,276,981,000
Gross Unrealized Gains 2,152,000 1,818,000
Gross Unrealized Losses (70,779,000) (85,970,000)
Securities available-for-sale 1,161,701,000 1,192,829,000
Accrued interest receivable 7,100,000 6,600,000
FHLB and FRB Stock    
FHLBC stock 4,500,000 18,500,000
FRBC stock 14,900,000 14,900,000
Securities pledged to secure deposits and for other purposes $ 717,500,000 810,200,000
Other disclosures    
Number of securities issued from originators 0  
Number of originators | item 1  
Minimum percentage of securities investment 10.00%  
US government and agencies debt securities, percentage of guarantee 100.00%  
US government and agencies debt securities, threshold percentage of guarantee for allowance of credit loss 100.00%  
U.S. Treasury    
Securities Available-for-Sale    
Amortized Cost $ 193,902,000 174,602,000
Gross Unrealized Gains 700,000  
Gross Unrealized Losses (459,000) (5,028,000)
Securities available-for-sale 194,143,000 169,574,000
U.S. government agencies    
Securities Available-for-Sale    
Amortized Cost 39,202,000 60,011,000
Gross Unrealized Losses (1,388,000) (3,052,000)
Securities available-for-sale 37,814,000 56,959,000
U.S. government agencies mortgage-backed    
Securities Available-for-Sale    
Amortized Cost 112,241,000 118,492,000
Gross Unrealized Losses (11,964,000) (12,122,000)
Securities available-for-sale 100,277,000 106,370,000
States and political subdivisions    
Securities Available-for-Sale    
Amortized Cost 226,969,000 236,072,000
Gross Unrealized Gains 264,000 1,325,000
Gross Unrealized Losses (11,777,000) (10,332,000)
Securities available-for-sale 215,456,000 227,065,000
Collateralized mortgage obligations    
Securities Available-for-Sale    
Amortized Cost 411,170,000 442,987,000
Gross Unrealized Gains 647,000 421,000
Gross Unrealized Losses (43,201,000) (50,864,000)
Securities available-for-sale 368,616,000 392,544,000
Asset-backed Securities    
Securities Available-for-Sale    
Amortized Cost 64,215,000 71,616,000
Gross Unrealized Gains 69,000 42,000
Gross Unrealized Losses (1,981,000) (3,222,000)
Securities available-for-sale 62,303,000 68,436,000
Collateralized loan obligations.    
Securities Available-for-Sale    
Amortized Cost 182,629,000 173,201,000
Gross Unrealized Gains 472,000 30,000
Gross Unrealized Losses (9,000) (1,350,000)
Securities available-for-sale $ 183,092,000 $ 171,881,000
Minimum    
Other disclosures    
Debt securities, available-for-sale, allowance for credit loss, percent of market value loss 5.00%  
Debt securities, available-for-sale, allowance for credit loss, market value loss $ 200,000  
v3.25.0.1
Securities - Contractual Maturities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Securities Available-for-Sale, Amortized Cost    
Due in one year or less $ 94,725  
Due after one year through five years 154,689  
Due after five years through ten years 100,601  
Due after ten years 110,058  
Debt securities excluding securities not due at a single maturity date 460,073  
Total $ 1,230,328 $ 1,276,981
Securities Available-for-Sale, Weighted Average Yield    
Due in one year or less (as a percent) 2.94%  
Due after one year through five years (as a percent) 3.64%  
Due after five years through ten years (as a percent) 2.91%  
Due after ten years (as a percent) 3.20%  
Debt securities (as a percent) 3.23%  
Total (as a percent) 3.40%  
Securities Available-for-Sale, Fair Value    
Due in one year or less $ 94,598  
Due after one year through five years 153,679  
Due after five years through ten years 94,215  
Due after ten years 104,921  
Debt securities 447,413  
Debt Securities, Available-for-sale, Total 1,161,701 1,192,829
Mortgage-backed and collateralized mortgage obligations    
Securities Available-for-Sale, Amortized Cost    
Securities not due at a single maturity date $ 523,411  
Securities Available-for-Sale, Weighted Average Yield    
Securities not due at a single maturity date, Weighted Average Yield (as a percent) 2.57%  
Securities Available-for-Sale, Fair Value    
Securities not due at a single maturity date $ 468,893  
Asset-backed Securities    
Securities Available-for-Sale, Amortized Cost    
Securities not due at a single maturity date 64,215  
Total $ 64,215 71,616
Securities Available-for-Sale, Weighted Average Yield    
Securities not due at a single maturity date, Weighted Average Yield (as a percent) 3.70%  
Securities Available-for-Sale, Fair Value    
Securities not due at a single maturity date $ 62,303  
Debt Securities, Available-for-sale, Total 62,303 68,436
Collateralized loan obligations.    
Securities Available-for-Sale, Amortized Cost    
Securities not due at a single maturity date 182,629  
Total $ 182,629 173,201
Securities Available-for-Sale, Weighted Average Yield    
Securities not due at a single maturity date, Weighted Average Yield (as a percent) 6.08%  
Securities Available-for-Sale, Fair Value    
Securities not due at a single maturity date $ 183,092  
Debt Securities, Available-for-sale, Total $ 183,092 $ 171,881
v3.25.0.1
Securities - Unrealized Loss Positions (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
security
Dec. 31, 2023
USD ($)
security
Securities Available-for-Sale, Number of Securities    
Less than 12 months in an unrealized loss position | security 45 14
Greater than 12 months in an unrealized loss position | security 317 353
Total | security 362 367
Securities Available-for-Sale, Unrealized Losses    
Less than 12 months in an unrealized loss position $ 1,010 $ 145
Greater than 12 months in an unrealized loss position 69,769 85,825
Total 70,779 85,970
Securities Available-for-Sale, Fair Value    
Less than 12 months in an unrealized loss position 183,156 28,708
Greater than 12 months in an unrealized loss position 667,783 1,030,120
Total 850,939 1,058,828
Credit losses were determined $ 0 $ 0
U.S. Treasury    
Securities Available-for-Sale, Number of Securities    
Less than 12 months in an unrealized loss position | security 4  
Greater than 12 months in an unrealized loss position | security 1 4
Total | security 5 4
Securities Available-for-Sale, Unrealized Losses    
Less than 12 months in an unrealized loss position $ 72  
Greater than 12 months in an unrealized loss position 387 $ 5,028
Total 459 5,028
Securities Available-for-Sale, Fair Value    
Less than 12 months in an unrealized loss position 49,788  
Greater than 12 months in an unrealized loss position 49,547 169,574
Total $ 99,335 $ 169,574
U.S. government agencies    
Securities Available-for-Sale, Number of Securities    
Greater than 12 months in an unrealized loss position | security 8 9
Total | security 8 9
Securities Available-for-Sale, Unrealized Losses    
Greater than 12 months in an unrealized loss position $ 1,388 $ 3,052
Total 1,388 3,052
Securities Available-for-Sale, Fair Value    
Greater than 12 months in an unrealized loss position 37,814 56,959
Total $ 37,814 $ 56,959
Mortgage Backed Securities, Issued by US Government Agencies    
Securities Available-for-Sale, Number of Securities    
Less than 12 months in an unrealized loss position | security 1  
Greater than 12 months in an unrealized loss position | security 128 128
Total | security 129 128
Securities Available-for-Sale, Unrealized Losses    
Less than 12 months in an unrealized loss position $ 447  
Greater than 12 months in an unrealized loss position 11,517 $ 12,122
Total 11,964 12,122
Securities Available-for-Sale, Fair Value    
Less than 12 months in an unrealized loss position 10,296  
Greater than 12 months in an unrealized loss position 89,981 106,370
Total $ 100,277 $ 106,370
States and political subdivisions    
Securities Available-for-Sale, Number of Securities    
Less than 12 months in an unrealized loss position | security 31 12
Greater than 12 months in an unrealized loss position | security 27 25
Total | security 58 37
Securities Available-for-Sale, Unrealized Losses    
Less than 12 months in an unrealized loss position $ 455 $ 137
Greater than 12 months in an unrealized loss position 11,322 10,195
Total 11,777 10,332
Securities Available-for-Sale, Fair Value    
Less than 12 months in an unrealized loss position 85,457 27,974
Greater than 12 months in an unrealized loss position 111,308 106,138
Total $ 196,765 $ 134,112
Collateralized mortgage obligations    
Securities Available-for-Sale, Number of Securities    
Less than 12 months in an unrealized loss position | security 3 2
Greater than 12 months in an unrealized loss position | security 139 143
Total | security 142 145
Securities Available-for-Sale, Unrealized Losses    
Less than 12 months in an unrealized loss position $ 24 $ 8
Greater than 12 months in an unrealized loss position 43,177 50,856
Total 43,201 50,864
Securities Available-for-Sale, Fair Value    
Less than 12 months in an unrealized loss position 5,107 734
Greater than 12 months in an unrealized loss position 328,708 376,236
Total $ 333,815 $ 376,970
Asset-backed Securities    
Securities Available-for-Sale, Number of Securities    
Less than 12 months in an unrealized loss position | security 2  
Greater than 12 months in an unrealized loss position | security 13 19
Total | security 15 19
Securities Available-for-Sale, Unrealized Losses    
Less than 12 months in an unrealized loss position $ 4  
Greater than 12 months in an unrealized loss position 1,977 $ 3,222
Total 1,981 3,222
Securities Available-for-Sale, Fair Value    
Less than 12 months in an unrealized loss position 1,068  
Greater than 12 months in an unrealized loss position 50,198 63,941
Total $ 51,266 $ 63,941
Collateralized loan obligations.    
Securities Available-for-Sale, Number of Securities    
Less than 12 months in an unrealized loss position | security 4  
Greater than 12 months in an unrealized loss position | security 1 25
Total | security 5 25
Securities Available-for-Sale, Unrealized Losses    
Less than 12 months in an unrealized loss position $ 8  
Greater than 12 months in an unrealized loss position 1 $ 1,350
Total 9 1,350
Securities Available-for-Sale, Fair Value    
Less than 12 months in an unrealized loss position 31,440  
Greater than 12 months in an unrealized loss position 227 150,902
Total $ 31,667 $ 150,902
v3.25.0.1
Securities - Realized Gain (Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Securities      
Proceeds from sales of securities $ 5,331 $ 205,738 $ 30,981
Gross realized gains on securities 1    
Gross realized losses on securities $ (1) (4,148) (944)
Net realized losses   (4,148) (944)
Income tax benefit on net realized losses   $ 1,117 $ 265
Effective tax rate applied   26.90% 28.10%
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Loans        
Total Loans $ 3,981,336 $ 4,042,953    
Allowance for credit losses (43,619) (44,264) $ (49,480) $ (44,281)
Net loans 3,937,717 3,998,689    
Commercial        
Loans        
Total Loans 800,476 841,697    
Allowance for credit losses (7,813) (3,998) (11,968) (11,751)
Leases        
Loans        
Total Loans 491,748 398,223    
Allowance for credit losses (2,136) (2,952) (2,865) (3,480)
Commercial real estate - Investor        
Loans        
Total Loans 1,078,829 1,034,424    
Allowance for credit losses (14,528) (17,105) (10,674) (10,795)
Commercial real estate - Owner occupied        
Loans        
Total Loans 683,283 796,538    
Allowance for credit losses (10,036) (12,280) (15,001) (4,913)
Construction        
Loans        
Total Loans 201,716 165,380    
Allowance for credit losses   (1,038) (1,546)  
Residential real estate - Investor        
Loans        
Total Loans 49,598 52,595    
Allowance for credit losses (553) (669) (768) (760)
Residential real estate - Owner occupied        
Loans        
Total Loans 206,949 226,248    
Allowance for credit losses (1,509) (1,821) (2,046) (2,832)
Multifamily        
Loans        
Total Loans 351,325 401,696    
Allowance for credit losses (1,876) (2,728) (2,453) (3,675)
HELOC        
Loans        
Total Loans 103,388 103,237    
Allowance for credit losses (1,578) (1,656) $ (1,806) $ (2,510)
Others        
Loans        
Total Loans $ 14,024 $ 22,915    
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Loans    
Loans and leases receivable, accrued interest receivable $ 17.5 $ 20.5
Real estate | Loan receivables | Customer Concentration Risk    
Loans    
Loans receivable as a percentage of total portfolio 67.20% 68.80%
v3.25.0.1
Loans and Allowance for Credit Losses on Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance $ 44,264 $ 49,480 $ 44,281
Provision for (Release of) Credit Losses 13,584 18,086 6,750
Charge-offs 19,111 24,642 2,460
Recoveries 4,882 1,340 909
Financing Receivable, Allowance for Credit Loss, Ending Balance 43,619 44,264 49,480
Commercial      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 3,998 11,968 11,751
Provision for (Release of) Credit Losses 12,352 (7,717) 273
Charge-offs 8,686 885 151
Recoveries 149 632 95
Financing Receivable, Allowance for Credit Loss, Ending Balance 7,813 3,998 11,968
Leases      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 2,952 2,865 3,480
Provision for (Release of) Credit Losses (770) 850 (246)
Charge-offs 149 882 371
Recoveries 103 119 2
Financing Receivable, Allowance for Credit Loss, Ending Balance 2,136 2,952 2,865
Commercial real estate - Investor      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 17,105 10,674 10,795
Provision for (Release of) Credit Losses 1,594 18,170 1,199
Charge-offs 4,596 11,816 1,401
Recoveries 425 77 81
Financing Receivable, Allowance for Credit Loss, Ending Balance 14,528 17,105 10,674
Commercial real estate - Owner occupied      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 12,280 15,001 4,913
Provision for (Release of) Credit Losses (997) 7,941 10,117
Charge-offs 5,154 10,691 133
Recoveries 3,907 29 104
Financing Receivable, Allowance for Credit Loss, Ending Balance 10,036 12,280 15,001
Real estate - construction      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 1,038 1,546 3,373
Provision for (Release of) Credit Losses 2,543   (1,827)
Financing Receivable, Allowance for Credit Loss, Ending Balance 3,581 1,038 1,546
Construction      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 1,038 1,546  
Provision for (Release of) Credit Losses   (608)  
Recoveries   100  
Financing Receivable, Allowance for Credit Loss, Ending Balance   1,038 1,546
Residential real estate - Investor      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 669 768 760
Provision for (Release of) Credit Losses (141) (129) (22)
Recoveries 25 30 30
Financing Receivable, Allowance for Credit Loss, Ending Balance 553 669 768
Residential real estate - Owner occupied      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 1,821 2,046 2,832
Provision for (Release of) Credit Losses (106) (304) (1,010)
Charge-offs 242   2
Recoveries 36 79 226
Financing Receivable, Allowance for Credit Loss, Ending Balance 1,509 1,821 2,046
Multifamily      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 2,728 2,453 3,675
Provision for (Release of) Credit Losses (852) 275 (1,285)
Recoveries     63
Financing Receivable, Allowance for Credit Loss, Ending Balance 1,876 2,728 2,453
HELOC      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 1,656 1,806 2,510
Provision for (Release of) Credit Losses (169) (255) (844)
Recoveries 91 105 140
Financing Receivable, Allowance for Credit Loss, Ending Balance 1,578 1,656 1,806
Other      
Allowance for loan losses:      
Financing Receivable, Allowance for Credit Loss, Beginning Balance 17 353 192
Provision for (Release of) Credit Losses 130 (137) 395
Charge-offs 284 368 402
Recoveries 146 169 168
Financing Receivable, Allowance for Credit Loss, Ending Balance $ 9 $ 17 $ 353
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Loans        
Total loans, including deferred loan loan costs and PCI $ 3,937,717 $ 3,998,689    
ACL Allocation 43,619 44,264 $ 49,480 $ 44,281
Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 26,249 63,115    
Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 19,758 61,997    
Accounts Receivable | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 6,491 797    
Equipment | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI   321    
Collateral        
Loans        
ACL Allocation 7,191 7,878    
Commercial        
Loans        
ACL Allocation 7,813 3,998 11,968 11,751
Commercial | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 6,491 1,634    
Commercial | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI   837    
Commercial | Accounts Receivable | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 6,491 797    
Commercial | Collateral        
Loans        
ACL Allocation 2,448 2    
Leases        
Loans        
ACL Allocation 2,136 2,952 2,865 3,480
Leases | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI   321    
Leases | Equipment | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI   321    
Leases | Collateral        
Loans        
ACL Allocation   320    
Commercial real estate - Investor        
Loans        
ACL Allocation 14,528 17,105 10,674 10,795
Commercial real estate - Investor | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 1,644 15,735    
Commercial real estate - Investor | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 1,644 15,735    
Commercial real estate - Investor | Collateral        
Loans        
ACL Allocation   3,656    
Commercial real estate - Owner occupied        
Loans        
ACL Allocation 10,036 12,280 15,001 4,913
Commercial real estate - Owner occupied | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 10,018 34,894    
Commercial real estate - Owner occupied | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 10,018 34,894    
Commercial real estate - Owner occupied | Collateral        
Loans        
ACL Allocation 3,951 3,900    
Construction        
Loans        
ACL Allocation   1,038 1,546  
Construction | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 5,800 7,162    
Construction | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 5,800 7,162    
Construction | Collateral        
Loans        
ACL Allocation 792      
Residential real estate - Investor        
Loans        
ACL Allocation 553 669 768 760
Residential real estate - Investor | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 404 422    
Residential real estate - Investor | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 404 422    
Residential real estate - Owner occupied        
Loans        
ACL Allocation 1,509 1,821 2,046 2,832
Residential real estate - Owner occupied | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 1,056 1,506    
Residential real estate - Owner occupied | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 1,056 1,506    
Multifamily        
Loans        
ACL Allocation 1,876 2,728 2,453 3,675
Multifamily | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 836 1,402    
Multifamily | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI 836 1,402    
HELOC        
Loans        
ACL Allocation 1,578 1,656 1,806 2,510
HELOC | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI   39    
HELOC | Real Estate | Asset Pledged as Collateral without Right        
Loans        
Total loans, including deferred loan loan costs and PCI   39    
Other        
Loans        
ACL Allocation $ 9 $ 17 $ 353 $ 192
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Aged analysis of past due loans    
Total Loans $ 3,981,336 $ 4,042,953
Recorded Investment 90 days or Greater Past Due and Accruing 1,436 1,196
Special Mention    
Aged analysis of past due loans    
Total Loans 37,892 70,577
Financial Asset, Past Due    
Aged analysis of past due loans    
Current 27,277 49,392
30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 8,175 10,176
60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 3,755 6,134
90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 15,347 33,082
Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 3,954,059 3,993,561
Commercial    
Aged analysis of past due loans    
Total Loans 800,476 841,697
Recorded Investment 90 days or Greater Past Due and Accruing 1,397 1,155
Commercial | Special Mention    
Aged analysis of past due loans    
Total Loans 9,699 8,007
Commercial | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 7,277 2,210
Commercial | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 219 982
Commercial | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 95  
Commercial | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 6,963 1,228
Commercial | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 793,199 839,487
Leases    
Aged analysis of past due loans    
Total Loans 491,748 398,223
Leases | Special Mention    
Aged analysis of past due loans    
Total Loans 821  
Leases | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 2,162 946
Leases | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 1,438 599
Leases | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 372  
Leases | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 352 347
Leases | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 489,586 397,277
Commercial real estate - Investor    
Aged analysis of past due loans    
Total Loans 1,078,829 1,034,424
Commercial real estate - Investor | Special Mention    
Aged analysis of past due loans    
Total Loans   11,267
Commercial real estate - Investor | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 2,423 7,296
Commercial real estate - Investor | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 2,021 1,209
Commercial real estate - Investor | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 402  
Commercial real estate - Investor | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current   6,087
Commercial real estate - Investor | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 1,076,406 1,027,128
Commercial real estate - Owner occupied    
Aged analysis of past due loans    
Total Loans 683,283 796,538
Commercial real estate - Owner occupied | Special Mention    
Aged analysis of past due loans    
Total Loans 20,234 35,677
Commercial real estate - Owner occupied | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 3,645 21,474
Commercial real estate - Owner occupied | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 1,123 2,103
Commercial real estate - Owner occupied | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 2,479 3,726
Commercial real estate - Owner occupied | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 43 15,645
Commercial real estate - Owner occupied | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 679,638 775,064
Real estate - construction    
Aged analysis of past due loans    
Total Loans 201,716 165,380
Real estate - construction | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 5,799 10,008
Real estate - construction | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current   2,540
Real estate - construction | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current   307
Real estate - construction | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 5,799 7,161
Real estate - construction | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 195,917 155,372
Residential real estate - Investor    
Aged analysis of past due loans    
Total Loans 49,598 52,595
Residential real estate - Investor | Special Mention    
Aged analysis of past due loans    
Total Loans   66
Residential real estate - Investor | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 1,202 1,287
Residential real estate - Investor | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 763 540
Residential real estate - Investor | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current   579
Residential real estate - Investor | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 439 168
Residential real estate - Investor | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 48,396 51,308
Residential real estate - Owner occupied    
Aged analysis of past due loans    
Total Loans 206,949 226,248
Residential real estate - Owner occupied | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 3,088 2,622
Residential real estate - Owner occupied | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 2,489 553
Residential real estate - Owner occupied | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 90 125
Residential real estate - Owner occupied | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 509 1,944
Residential real estate - Owner occupied | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 203,861 223,626
Multifamily    
Aged analysis of past due loans    
Total Loans 351,325 401,696
Multifamily | Special Mention    
Aged analysis of past due loans    
Total Loans   15,560
Multifamily | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 1,273 1,318
Multifamily | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current   1,085
Multifamily | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 233  
Multifamily | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 1,040 233
Multifamily | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 350,052 400,378
HELOC    
Aged analysis of past due loans    
Total Loans 103,388 103,237
Recorded Investment 90 days or Greater Past Due and Accruing 39 41
HELOC | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 385 2,230
HELOC | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 109 565
HELOC | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 74 1,396
HELOC | 90 Days or Greater Past Due    
Aged analysis of past due loans    
Current 202 269
HELOC | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current 103,003 101,007
Other    
Aged analysis of past due loans    
Total Loans 14,024 22,915
Other | Financial Asset, Past Due    
Aged analysis of past due loans    
Current 23 1
Other | 30 to 59 Days Past Due    
Aged analysis of past due loans    
Current 13  
Other | 60 to 89 Days Past Due    
Aged analysis of past due loans    
Current 10 1
Other | Financial Asset, Not Past Due    
Aged analysis of past due loans    
Current $ 14,001 $ 22,914
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Nonaccruals (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Nonaccrual loans    
Nonaccrual $ 28,851,000 $ 67,583,000
Nonaccrual with no ACL 8,760,000 33,099,000
Interest on nonaccrual loans 815,000 1,900,000
Accrued interest reversed against interest income 4,200,000 1,300,000
Commercial    
Nonaccrual loans    
Nonaccrual 5,591,000 870,000
Nonaccrual with no ACL 497,000 870,000
Leases    
Nonaccrual loans    
Nonaccrual 523,000 639,000
Nonaccrual with no ACL 523,000 318,000
Commercial real estate - Investor    
Nonaccrual loans    
Nonaccrual 1,981,000 16,572,000
Nonaccrual with no ACL 1,981,000 8,926,000
Commercial real estate - Owner occupied    
Nonaccrual loans    
Nonaccrual 10,604,000 34,946,000
Nonaccrual with no ACL 1,407,000 8,429,000
Real estate - construction    
Nonaccrual loans    
Nonaccrual 5,800,000 7,162,000
Nonaccrual with no ACL   7,162,000
Residential real estate - Investor    
Nonaccrual loans    
Nonaccrual 1,158,000 1,331,000
Nonaccrual with no ACL 1,158,000 1,331,000
Residential real estate - Owner occupied    
Nonaccrual loans    
Nonaccrual 1,653,000 3,078,000
Nonaccrual with no ACL 1,653,000 3,078,000
Multifamily    
Nonaccrual loans    
Nonaccrual 1,165,000 1,775,000
Nonaccrual with no ACL 1,165,000 1,775,000
HELOC    
Nonaccrual loans    
Nonaccrual 366,000 1,210,000
Nonaccrual with no ACL 366,000 $ 1,210,000
Other    
Nonaccrual loans    
Nonaccrual 10,000  
Nonaccrual with no ACL $ 10,000  
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 $ 988,880,000 $ 965,644,000
2023 / 2022 740,096,000 997,009,000
2022/ 2021 808,157,000 737,065,000
2021 / 2020 537,229,000 367,981,000
2020/ 2019 251,786,000 192,786,000
Prior 311,052,000 306,846,000
Revolving Loans 342,857,000 474,214,000
Revolving Loans Converted To Term Loans 1,279,000 1,408,000
Total Loans 3,981,336,000 4,042,953,000
Minimum    
The gross charge-offs activity by loan type and year of origination    
Loan commitment for inclusion in credit quality analysis 50,000  
Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 984,681,000 963,994,000
2023 / 2022 735,516,000 958,129,000
2022/ 2021 765,954,000 682,010,000
2021 / 2020 516,166,000 344,237,000
2020/ 2019 238,614,000 158,932,000
Prior 289,683,000 280,746,000
Revolving Loans 319,558,000 450,136,000
Revolving Loans Converted To Term Loans 1,279,000 1,408,000
Total Loans 3,851,451,000 3,839,592,000
Special Mention    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 3,864,000 1,650,000
2023 / 2022 2,791,000 20,320,000
2022/ 2021 15,650,000 35,050,000
2021 / 2020 7,676,000 3,621,000
2020/ 2019 3,033,000 1,863,000
Prior 975,000 3,681,000
Revolving Loans 3,903,000 4,392,000
Total Loans 37,892,000 70,577,000
Substandard    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 335,000  
2023 / 2022 1,789,000 18,560,000
2022/ 2021 26,553,000 20,005,000
2021 / 2020 12,001,000 20,123,000
2020/ 2019 10,139,000 31,991,000
Prior 20,394,000 22,419,000
Revolving Loans 19,396,000 19,686,000
Total Loans 90,607,000 132,784,000
Doubtful [Member]    
The gross charge-offs activity by loan type and year of origination    
2021 / 2020 1,386,000  
Total Loans 1,386,000  
Commercial    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 303,727,000 318,569,000
2023 / 2022 178,192,000 141,504,000
2022/ 2021 60,915,000 36,754,000
2021 / 2020 20,318,000 12,154,000
2020/ 2019 4,999,000 18,589,000
Prior 6,527,000 3,426,000
Revolving Loans 224,519,000 309,293,000
Revolving Loans Converted To Term Loans 1,279,000 1,408,000
Total Loans 800,476,000 841,697,000
Commercial | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 299,863,000 318,569,000
2023 / 2022 176,549,000 136,668,000
2022/ 2021 56,619,000 35,901,000
2021 / 2020 18,679,000 11,983,000
2020/ 2019 4,999,000 18,390,000
Prior 6,527,000 3,426,000
Revolving Loans 201,514,000 298,931,000
Revolving Loans Converted To Term Loans 1,279,000 1,408,000
Total Loans 766,029,000 825,276,000
Commercial | Special Mention    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 3,864,000  
2023 / 2022 1,629,000 2,737,000
2022/ 2021 127,000 707,000
2021 / 2020 176,000 171,000
Revolving Loans 3,903,000 4,392,000
Total Loans 9,699,000 8,007,000
Commercial | Substandard    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022 14,000 2,099,000
2022/ 2021 4,169,000 146,000
2021 / 2020 77,000  
2020/ 2019   199,000
Revolving Loans 19,102,000 5,970,000
Total Loans 23,362,000 8,414,000
Commercial | Doubtful [Member]    
The gross charge-offs activity by loan type and year of origination    
2021 / 2020 1,386,000  
Total Loans 1,386,000  
Real estate - residential loans    
The gross charge-offs activity by loan type and year of origination    
Mortgage loans in process of foreclosure 469,000 170,000
Leases    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 239,664,000 219,163,000
2023 / 2022 151,372,000 113,481,000
2022/ 2021 67,723,000 42,478,000
2021 / 2020 24,546,000 14,663,000
2020/ 2019 6,145,000 7,183,000
Prior 2,298,000 1,255,000
Total Loans 491,748,000 398,223,000
Leases | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 239,664,000 219,163,000
2023 / 2022 151,372,000 113,074,000
2022/ 2021 66,379,000 42,275,000
2021 / 2020 24,546,000 14,663,000
2020/ 2019 6,145,000 6,975,000
Prior 2,298,000 1,255,000
Total Loans 490,404,000 397,405,000
Leases | Special Mention    
The gross charge-offs activity by loan type and year of origination    
2022/ 2021 821,000  
Total Loans 821,000  
Leases | Substandard    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022   407,000
2022/ 2021 523,000 203,000
2020/ 2019   208,000
Total Loans 523,000 818,000
Commercial real estate - Investor    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 244,318,000 159,654,000
2023 / 2022 160,653,000 367,512,000
2022/ 2021 305,506,000 230,189,000
2021 / 2020 191,651,000 113,711,000
2020/ 2019 90,245,000 69,980,000
Prior 79,652,000 72,929,000
Revolving Loans 6,804,000 20,449,000
Total Loans 1,078,829,000 1,034,424,000
Commercial real estate - Investor | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 243,983,000 159,654,000
2023 / 2022 159,008,000 367,512,000
2022/ 2021 305,506,000 218,084,000
2021 / 2020 191,651,000 108,384,000
2020/ 2019 90,245,000 54,322,000
Prior 67,143,000 63,281,000
Revolving Loans 6,804,000 8,122,000
Total Loans 1,064,340,000 979,359,000
Commercial real estate - Investor | Special Mention    
The gross charge-offs activity by loan type and year of origination    
2022/ 2021   11,267,000
Total Loans   11,267,000
Commercial real estate - Investor | Substandard    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 335,000  
2023 / 2022 1,645,000  
2022/ 2021   838,000
2021 / 2020   5,327,000
2020/ 2019   15,658,000
Prior 12,509,000 9,648,000
Revolving Loans   12,327,000
Total Loans 14,489,000 43,798,000
Commercial real estate - Owner occupied    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 91,012,000 125,709,000
2023 / 2022 115,542,000 166,428,000
2022/ 2021 142,564,000 205,955,000
2021 / 2020 140,393,000 110,808,000
2020/ 2019 90,849,000 57,866,000
Prior 88,639,000 96,529,000
Revolving Loans 14,284,000 33,243,000
Total Loans 683,283,000 796,538,000
Commercial real estate - Owner occupied | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 91,012,000 124,059,000
2023 / 2022 114,255,000 134,383,000
2022/ 2021 133,488,000 177,553,000
2021 / 2020 121,652,000 103,109,000
2020/ 2019 77,919,000 42,839,000
Prior 82,820,000 91,062,000
Revolving Loans 14,284,000 33,243,000
Total Loans 635,430,000 706,248,000
Commercial real estate - Owner occupied | Special Mention    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023   1,650,000
2023 / 2022 1,162,000 17,415,000
2022/ 2021 7,908,000 9,585,000
2021 / 2020 7,500,000 3,128,000
2020/ 2019 3,033,000 218,000
Prior 631,000 3,681,000
Total Loans 20,234,000 35,677,000
Commercial real estate - Owner occupied | Substandard    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022 125,000 14,630,000
2022/ 2021 1,168,000 18,817,000
2021 / 2020 11,241,000 4,571,000
2020/ 2019 9,897,000 14,809,000
Prior 5,188,000 1,786,000
Total Loans 27,619,000 54,613,000
Construction    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 44,699,000 42,808,000
2023 / 2022 27,928,000 66,513,000
2022/ 2021 109,367,000 32,942,000
2021 / 2020 17,747,000 10,093,000
2020/ 2019 82,000 1,593,000
Prior 1,425,000 8,245,000
Revolving Loans 468,000 3,186,000
Total Loans 201,716,000 165,380,000
Construction | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 44,699,000 42,808,000
2023 / 2022 27,928,000 66,513,000
2022/ 2021 83,222,000 32,942,000
2021 / 2020 17,747,000 100,000
2020/ 2019 82,000 1,593,000
Prior 1,081,000 1,083,000
Revolving Loans 468,000 3,186,000
Total Loans 175,227,000 148,225,000
Construction | Special Mention    
The gross charge-offs activity by loan type and year of origination    
2022/ 2021 6,794,000  
Prior 344,000  
Total Loans 7,138,000  
Construction | Substandard    
The gross charge-offs activity by loan type and year of origination    
2022/ 2021 19,351,000  
2021 / 2020   9,993,000
Prior   7,162,000
Total Loans 19,351,000 17,155,000
Residential real estate - Investor    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 5,595,000 5,062,000
2023 / 2022 3,833,000 14,824,000
2022/ 2021 13,741,000 9,093,000
2021 / 2020 8,592,000 6,227,000
2020/ 2019 5,693,000 6,916,000
Prior 10,596,000 9,002,000
Revolving Loans 1,548,000 1,471,000
Total Loans 49,598,000 52,595,000
Residential real estate - Investor | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 5,595,000 5,062,000
2023 / 2022 3,833,000 14,434,000
2022/ 2021 13,366,000 9,027,000
2021 / 2020 8,060,000 6,227,000
2020/ 2019 5,693,000 6,508,000
Prior 9,813,000 8,469,000
Revolving Loans 1,548,000 1,471,000
Total Loans 47,908,000 51,198,000
Residential real estate - Investor | Special Mention    
The gross charge-offs activity by loan type and year of origination    
2022/ 2021   66,000
Total Loans   66,000
Residential real estate - Investor | Substandard    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022   390,000
2022/ 2021 375,000  
2021 / 2020 532,000  
2020/ 2019   408,000
Prior 783,000 533,000
Total Loans 1,690,000 1,331,000
Residential real estate - Owner occupied    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 11,609,000 32,574,000
2023 / 2022 29,670,000 41,528,000
2022/ 2021 35,786,000 40,335,000
2021 / 2020 32,911,000 25,513,000
2020/ 2019 22,996,000 14,918,000
Prior 73,207,000 70,617,000
Revolving Loans 770,000 763,000
Total Loans 206,949,000 226,248,000
Residential real estate - Owner occupied | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 11,609,000 32,574,000
2023 / 2022 29,670,000 41,528,000
2022/ 2021 35,786,000 40,335,000
2021 / 2020 32,760,000 25,322,000
2020/ 2019 22,996,000 14,233,000
Prior 71,507,000 68,277,000
Revolving Loans 770,000 763,000
Total Loans 205,098,000 223,032,000
Residential real estate - Owner occupied | Substandard    
The gross charge-offs activity by loan type and year of origination    
2021 / 2020 151,000 191,000
2020/ 2019   685,000
Prior 1,700,000 2,340,000
Total Loans 1,851,000 3,216,000
Multifamily    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 39,133,000 55,310,000
2023 / 2022 68,781,000 80,237,000
2022/ 2021 68,994,000 137,259,000
2021 / 2020 100,049,000 72,861,000
2020/ 2019 29,263,000 13,876,000
Prior 44,735,000 41,591,000
Revolving Loans 370,000 562,000
Total Loans 351,325,000 401,696,000
Multifamily | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 39,133,000 55,310,000
2023 / 2022 68,781,000 79,060,000
2022/ 2021 68,032,000 123,834,000
2021 / 2020 100,049,000 72,539,000
2020/ 2019 29,060,000 12,231,000
Prior 44,735,000 40,825,000
Revolving Loans 370,000 562,000
Total Loans 350,160,000 384,361,000
Multifamily | Special Mention    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022   168,000
2022/ 2021   13,425,000
2021 / 2020   322,000
2020/ 2019   1,645,000
Total Loans   15,560,000
Multifamily | Substandard    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022   1,009,000
2022/ 2021 962,000  
2020/ 2019 203,000  
Prior   766,000
Total Loans 1,165,000 1,775,000
HELOC    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 2,602,000 2,735,000
2023 / 2022 2,561,000 2,704,000
2022/ 2021 2,118,000 491,000
2021 / 2020 383,000 1,798,000
2020/ 2019 1,422,000 1,780,000
Prior 3,966,000 3,179,000
Revolving Loans 90,336,000 90,550,000
Total Loans 103,388,000 103,237,000
HELOC | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 2,602,000 2,735,000
2023 / 2022 2,561,000 2,679,000
2022/ 2021 2,118,000 490,000
2021 / 2020 383,000 1,757,000
2020/ 2019 1,383,000 1,756,000
Prior 3,752,000 2,995,000
Revolving Loans 90,042,000 89,161,000
Total Loans 102,841,000 101,573,000
HELOC | Substandard    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022   25,000
2022/ 2021   1,000
2021 / 2020   41,000
2020/ 2019 39,000 24,000
Prior 214,000 184,000
Revolving Loans 294,000 1,389,000
Total Loans 547,000 1,664,000
Other    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 6,521,000 4,060,000
2023 / 2022 1,564,000 2,278,000
2022/ 2021 1,443,000 1,569,000
2021 / 2020 639,000 153,000
2020/ 2019 92,000 85,000
Prior 7,000 73,000
Revolving Loans 3,758,000 14,697,000
Total Loans 14,024,000 22,915,000
Other | Pass    
The gross charge-offs activity by loan type and year of origination    
2024 / 2023 6,521,000 4,060,000
2023 / 2022 1,559,000 2,278,000
2022/ 2021 1,438,000 1,569,000
2021 / 2020 639,000 153,000
2020/ 2019 92,000 85,000
Prior 7,000 73,000
Revolving Loans 3,758,000 14,697,000
Total Loans 14,014,000 $ 22,915,000
Other | Substandard    
The gross charge-offs activity by loan type and year of origination    
2023 / 2022 5,000  
2022/ 2021 5,000  
Total Loans $ 10,000  
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Charge-offs Activity by Loan Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loans by risk rating      
2024 / 2023 $ 36 $ 123  
2023 / 2022 7,205 9,247  
2022 / 2021 4,980 742  
2021 / 2020 6,310 10,587  
2020 / 2019 16 3,524  
Prior 564 419  
Total 19,111 24,642 $ 2,460
Commercial      
Loans by risk rating      
2024 / 2023 31    
2023 / 2022 7,205    
2022 / 2021 756 466  
2021 / 2020 670 364  
Prior 24 55  
Total 8,686 885 151
Leases      
Loans by risk rating      
2023 / 2022   870  
2022 / 2021 96    
2021 / 2020 53    
2020 / 2019   12  
Total 149 882 371
Commercial real estate - Investor      
Loans by risk rating      
2024 / 2023   123  
2023 / 2022   8,352  
2022 / 2021 4,128 71  
2021 / 2020 452 3,270  
2020 / 2019 16    
Total 4,596 11,816 1,401
Commercial real estate - Owner occupied      
Loans by risk rating      
2023 / 2022   22  
2022 / 2021   178  
2021 / 2020 5,135 6,947  
2020 / 2019   3,512  
Prior 19 32  
Total 5,154 10,691 133
Residential real estate - Owner occupied      
Loans by risk rating      
Prior 242    
Total 242   2
Other      
Loans by risk rating      
2024 / 2023 5    
2023 / 2022   3  
2022 / 2021   27  
2021 / 2020   6  
Prior 279 332  
Total $ 284 $ 368 $ 402
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Loan Modifications (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
contract
loan
Dec. 31, 2023
USD ($)
loan
Financing Receivable    
Total Loans modified $ 0 $ 2,000
Total Loans modified $ 46,925 $ 41,746
Total Loan Segment Modified to Total Loan Segment 1.20% 1.00%
Weighted-Average Term Extension (In Months) 8 months 27 days 10 months 19 days
Weighted-Average Interest Rate Change 0.69% 5.00%
Weighted-Average Delay of Payment (In Months) 4 months 7 months
Number of payment modification | loan 15 18
Number of contracts | contract 3  
30 to 59 Days Past Due    
Financing Receivable    
Total Loans modified   $ 838
90 Days or Greater Past Due    
Financing Receivable    
Total Loans modified   1,212
Total Past Due    
Financing Receivable    
Total Loans modified   2,050
Current    
Financing Receivable    
Total Loans modified $ 46,925 39,696
Term Extension    
Financing Receivable    
Total Loans modified 38,104 33,121
Combination - Term Extension and Payment Delay    
Financing Receivable    
Total Loans modified 5,406  
Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction    
Financing Receivable    
Total Loans modified 3,206 979
Combination - Term Extension and Payment Modification    
Financing Receivable    
Total Loans modified 209 7,646
Commercial    
Financing Receivable    
Total Loans modified $ 7,179 $ 3,979
Total Loan Segment Modified to Total Loan Segment 0.90% 0.50%
Weighted-Average Term Extension (In Months) 6 months 14 days 8 months 9 days
Weighted-Average Interest Rate Change 0.50% 5.00%
Weighted-Average Delay of Payment (In Months) 4 months  
Commercial | 90 Days or Greater Past Due    
Financing Receivable    
Total Loans modified   $ 979
Commercial | Total Past Due    
Financing Receivable    
Total Loans modified   979
Commercial | Current    
Financing Receivable    
Total Loans modified $ 7,179 3,000
Commercial | Term Extension    
Financing Receivable    
Total Loans modified 3,385 3,000
Commercial | Combination - Term Extension and Payment Delay    
Financing Receivable    
Total Loans modified 3,794  
Commercial | Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction    
Financing Receivable    
Total Loans modified   979
Commercial real estate - Investor    
Financing Receivable    
Total Loans modified $ 12,509 $ 21,167
Total Loan Segment Modified to Total Loan Segment 1.20% 2.00%
Weighted-Average Term Extension (In Months) 6 months 9 months 29 days
Weighted-Average Delay of Payment (In Months)   7 months
Commercial real estate - Investor | 30 to 59 Days Past Due    
Financing Receivable    
Total Loans modified   $ 838
Commercial real estate - Investor | Total Past Due    
Financing Receivable    
Total Loans modified   838
Commercial real estate - Investor | Current    
Financing Receivable    
Total Loans modified $ 12,509 20,329
Commercial real estate - Investor | Term Extension    
Financing Receivable    
Total Loans modified 12,509 13,521
Commercial real estate - Investor | Combination - Term Extension and Payment Modification    
Financing Receivable    
Total Loans modified   7,646
Commercial real estate - Owner occupied    
Financing Receivable    
Total Loans modified $ 26,040 $ 16,082
Total Loan Segment Modified to Total Loan Segment 3.80% 2.00%
Weighted-Average Term Extension (In Months) 8 months 17 days 11 months 19 days
Weighted-Average Interest Rate Change 0.15%  
Commercial real estate - Owner occupied | Current    
Financing Receivable    
Total Loans modified $ 26,040 $ 16,082
Commercial real estate - Owner occupied | Term Extension    
Financing Receivable    
Total Loans modified 22,210 16,082
Commercial real estate - Owner occupied | Combination - Term Extension and Payment Delay    
Financing Receivable    
Total Loans modified 415  
Commercial real estate - Owner occupied | Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction    
Financing Receivable    
Total Loans modified 3,206  
Commercial real estate - Owner occupied | Combination - Term Extension and Payment Modification    
Financing Receivable    
Total Loans modified $ 209  
Residential real estate - Owner occupied    
Financing Receivable    
Total Loans modified   $ 119
Total Loan Segment Modified to Total Loan Segment 0.00% 0.10%
Weighted-Average Term Extension (In Months)   39 months
Residential real estate - Owner occupied | Current    
Financing Receivable    
Total Loans modified   $ 119
Residential real estate - Owner occupied | Term Extension    
Financing Receivable    
Total Loans modified   119
Multifamily    
Financing Receivable    
Total Loans modified $ 1,197 $ 233
Total Loan Segment Modified to Total Loan Segment 0.30% 0.10%
Weighted-Average Term Extension (In Months) 60 months 21 months
Weighted-Average Interest Rate Change 2.75%  
Multifamily | 90 Days or Greater Past Due    
Financing Receivable    
Total Loans modified   $ 233
Multifamily | Total Past Due    
Financing Receivable    
Total Loans modified   233
Multifamily | Current    
Financing Receivable    
Total Loans modified $ 1,197  
Multifamily | Term Extension    
Financing Receivable    
Total Loans modified   233
Multifamily | Combination - Term Extension and Payment Delay    
Financing Receivable    
Total Loans modified $ 1,197  
HELOC    
Financing Receivable    
Total Loans modified   $ 166
Total Loan Segment Modified to Total Loan Segment 0.00% 0.20%
Weighted-Average Term Extension (In Months)   24 months
HELOC | Current    
Financing Receivable    
Total Loans modified   $ 166
HELOC | Term Extension    
Financing Receivable    
Total Loans modified   $ 166
v3.25.0.1
Loans and Allowance for Credit Losses on Loans - Related Parties (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Loans to principal officers, directors, and their affiliates  
Beginning balance $ 8,483
New loans, including acquired related party loans 30
Repayments and other reductions (30)
Change in related party status $ (8,483)
v3.25.0.1
Other Real Estate Owned (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve      
Balance at beginning of period $ 5,123 $ 1,561 $ 2,356
Property additions, net of acquisition adjustments and participation 21,083 5,580 87
Less: Proceeds from property disposals, net of participation sold and gains/losses 2,845 1,749 778
Less: Period valuation write-down 1,744 269 104
Balance at end of period 21,617 5,123 1,561
Activity in the valuation allowance      
Balance at beginning of period 118 856 1,179
Provision for unrealized losses 1,744 269 104
Reductions taken on sales   (1,007) (427)
Balance at end of period 1,862 118 856
Expenses related to foreclosed assets, net of lease revenue      
Gain on sales, net (390) (256) (163)
Provision for unrealized losses 1,744 269 104
Operating expenses 1,801 434 193
Less: Lease revenue 935 48 4
Net OREO expense $ 2,220 $ 399 $ 130
v3.25.0.1
Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Premises and equipment    
Cost $ 166,634 $ 153,284
Accumulated Depreciation/Amortization 79,323 73,974
Net Book Value 87,311 79,310
Land    
Premises and equipment    
Cost 30,981 29,741
Net Book Value 30,981 29,741
Buildings    
Premises and equipment    
Cost 61,428 58,311
Accumulated Depreciation/Amortization 27,413 25,911
Net Book Value 34,015 32,400
Leasehold improvements    
Premises and equipment    
Cost 10,341 7,785
Accumulated Depreciation/Amortization 2,112 1,574
Net Book Value 8,229 6,211
Furniture and equipment    
Premises and equipment    
Cost 63,884 57,447
Accumulated Depreciation/Amortization 49,798 46,489
Net Book Value $ 14,086 $ 10,958
v3.25.0.1
Premises and Equipment - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
lease
item
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Premises and equipment      
Leases options to extend true    
Lessee lease liability, Operating $ 12,465,000 $ 11,578,000  
Right of use assets, Operating $ 7,359,000 7,093,000  
Number of lease terminated | lease 1    
Amount of terminated lease liability $ 68,333    
Amount of terminated right-of-use asset 68,333    
Fees paid 46,500    
Loss on termination of lease $ (46,500)    
Number of sale leaseback transaction | item 1    
Net gain/(loss) on sale of fixed assets $ 31,311 623,000 $ 2,017,000
Terms of lease 20 years    
Sale leaseback transaction, lease incentives $ 0    
Percentage of incremental borrowing rate 4.61%    
Minimum      
Premises and equipment      
Leases remaining term 6 months    
Renewal term of lease 5 years    
Maximum      
Premises and equipment      
Leases remaining term 19 years 4 months 24 days    
Renewal term of lease 10 years    
Other Assets      
Premises and equipment      
Fixed Assets Held for Sale $ 1,400,000 $ 1,000,000.0  
v3.25.0.1
Premises and Equipment - Right-of-use asset and lease obligations by type of property (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Premises and Equipment    
Right-of-Use Asset $ 7,359 $ 7,093
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets. Other Assets.
Lease Liability $ 12,465 $ 11,578
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
Weight Average Lease Term in Years 13 years 8 months 12 days 12 years 6 months
Weight Average Discount Rate 4.72% 4.65%
Land and building leases    
Premises and Equipment    
Right-of-Use Asset $ 7,359 $ 7,093
Lease Liability $ 12,465 $ 11,578
Weight Average Lease Term in Years 13 years 8 months 12 days 12 years 6 months
Weight Average Discount Rate 4.72% 4.65%
v3.25.0.1
Premises and Equipment - Operating lease costs (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Premises and Equipment      
Operating lease cost $ 1,337,000 $ 988,000 $ 716,000
Short-term lease cost 54,000 64,000 60,000
Total operating lease cost 1,391,000 1,052,000 $ 776,000
Lease transactions with related party $ 0 $ 0  
v3.25.0.1
Premises and Equipment - Maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Lease payments    
Due in one year or less $ 2,095  
Due in one year through two years 1,903  
Due in two years through three years 1,847  
Due in three years through four years 1,756  
Due in four years through five years 1,692  
Thereafter 5,824  
Total lease payments 15,117  
Discount on cash flows (2,652)  
Lease Liability $ 12,465 $ 11,578
v3.25.0.1
Deposits - Classifications of Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deposits    
Noninterest bearing demand $ 1,704,920 $ 1,834,891
Savings 932,201 971,334
NOW accounts 621,434 565,375
Money market accounts 761,499 671,240
Certificates of deposit of less than $100,000 352,526 266,035
Certificates of deposit of $100,000 through $250,000 270,837 180,289
Certificates of deposit of more than $250,000 125,314 81,582
Total deposits $ 4,768,731 $ 4,570,746
v3.25.0.1
Deposits - Scheduled maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Brokered certificates    
Brokered certificates of deposit $ 29,800 $ 30,700
Deposits held by senior officers and directors, including their related interests 11,000 12,000
Time Deposit Maturities    
2025 700,746  
2026 27,775  
2027 7,645  
2028 8,130  
2029 4,381  
Total $ 748,677 $ 527,906
v3.25.0.1
Borrowings - Summary (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Borrowings    
Total borrowings $ 141,897 $ 516,625
Securities sold under repurchase agreements    
Borrowings    
Total borrowings 36,657 26,470
Other short-term borrowings    
Borrowings    
Total borrowings 20,000 405,000
Junior Subordinated Debentures    
Borrowings    
Total borrowings 25,773 25,773
Subordinated debentures    
Borrowings    
Total borrowings $ 59,467 $ 59,382
v3.25.0.1
Borrowings - Additional information (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 24, 2023
USD ($)
Dec. 31, 2016
Jun. 30, 2023
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2024
USD ($)
customer
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Borrowings              
Threshold percentage of stockholders' equity         10.00%    
Borrowings at FHLBC as percentage of total assets         35.00%    
FHLBC stock         $ 4,500 $ 18,500  
Proceeds from term note         30,000    
Repayment of term note           9,000 $ 4,000
Outstanding, net of deferred issuance costs         59,500 59,400  
Asset Pledged as Collateral with Right | Securities sold under repurchase agreements              
Borrowings              
Investment securities pledged with financial institutions, dollars         73,600 45,700  
Securities sold under repurchase agreements              
Borrowings              
Investment securities pledged with financial institutions, dollars         $ 36,700 26,500  
Number of customers having secured balances exceeding specified percentage of stockholders equity | customer         0    
Securities sold under repurchase agreements | Minimum              
Borrowings              
Maturity         1 day    
Securities sold under repurchase agreements | Maximum              
Borrowings              
Maturity         90 days    
Federal Home Loan Bank Advances              
Borrowings              
Borrowings at FHLBC as percentage of book value of certain mortgage loans         60.00%    
FHLBC advance amount         $ 20,000 405,000  
FHLBC stock         4,500 18,500  
Principal balance of loans collateralized         1,410,000 $ 1,460,000  
Maximum borrowing capacity         942,800,000    
Combined collateral value         942,800    
Amount available for additional borrowings         $ 922,800    
Senior notes              
Borrowings              
Interest rate (as a percent)   5.75%          
Debt Instrument, Term   10 years          
Interest rate term   5 years          
Debt issuance costs     $ 362        
Debt instrument redemption price, percentage     12.85%        
Debt redeemed amount     $ 45,000        
Term Debt              
Borrowings              
Repayment of term note $ 9,000            
Face amount $ 20,000            
Subordinated Notes Due 2031              
Borrowings              
Interest rate (as a percent)       3.50%      
Face amount       $ 60,000      
Subordinated Notes Due 2031 | Three Months Secured Overnight Financing Rate              
Borrowings              
Basis points added to reference rate (as a percent)       2.73%      
v3.25.0.1
Borrowings - Maturities and Weighted Average Rates (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Scheduled maturities and weighted average rates of borrowings    
Year one   $ 431,470
Year two $ 56,657  
Thereafter 85,240 85,155
Total borrowings $ 141,897 $ 516,625
Weighted Average Rate    
Year one (as a percent)   4.98%
Year two (as a percent) 2.47%  
Thereafter (as a percent) 3.89% 4.10%
Total borrowings (as a percent) 3.32% 4.84%
v3.25.0.1
Junior Subordinated Debentures - Issuance (Details) - USD ($)
$ in Thousands
 1 Months Ended 6 Months Ended 7 Months Ended 12 Months Ended
Jun. 15, 2017
Apr. 30, 2007
Jun. 15, 2017
Dec. 31, 2017
Dec. 31, 2024
Dec. 31, 2023
Junior subordinated debentures            
Junior subordinated debentures         $ 25,773 $ 25,773
Old Second Capital Trust II            
Junior subordinated debentures            
Proceeds from sale of cumulative trust preferred securities   $ 25,000        
Maturity Period         30 years  
Cash distribution fixed rate of trust preferred securities (as a percent)     6.77%      
Basis points added to cash distribution floating rate base (as a percent) 1.50%     1.50%    
Cash distribution, floating rate base three-month       three-month SOFR  
Amortization period         30 years  
Old Second Capital Trust II | Debt Instrument, Redemption, Period One            
Junior subordinated debentures            
Interest rate (as a percent)         4.37% 4.25%
Junior Subordinated Debentures            
Junior subordinated debentures            
Junior Subordinated Debentures issuance cost         $ 1,000 $ 1,000
Junior Subordinated Debentures | Old Second Capital Trust II            
Junior subordinated debentures            
Junior subordinated debentures         $ 25,800  
v3.25.0.1
Income Taxes - Components (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Components of income tax expense (benefit)      
Current federal $ 22,011 $ 20,724 $ 13,241
Current state 7,048 10,098 6,209
Deferred federal (1,419) 1,964 3,338
Deferred state 52 (107) 1,356
Total tax at effective tax rate 27,692 32,679 $ 24,144
Deferred tax assets      
Accrued Bonus 2,601 2,500  
Allowance for credit losses 12,241 13,077  
Deferred compensation 2,100 1,622  
Stock based compensation 1,920 1,768  
Business combination adjustments   270  
Lease liability 3,315 3,201  
Other assets 2,357 1,602  
Total deferred tax assets 24,534 24,040  
Deferred tax liabilities      
Accumulated depreciation on premises and equipment (5,844) (5,454)  
Goodwill amortization/impairment (604) (465)  
Mortgage servicing rights (2,728) (2,842)  
Amortization of core deposit intangible (2,248) (2,987)  
Right of use asset (1,972) (1,969)  
Acquired Securities (1,997) (2,376)  
Other liabilities (1,090) (1,263)  
Total deferred tax liabilities (16,483) (17,356)  
Net deferred tax asset before adjustments related to other comprehensive income 8,051 6,684  
Tax effect of adjustments related to other comprehensive income 18,568 24,393  
Net deferred tax asset 26,619 $ 31,077  
Federal      
Deferred tax liabilities      
Net operating loss carryforward, which may be carried forward indefinitely 0    
State and Local Jurisdiction      
Deferred tax liabilities      
Net operating loss carryforward $ 0    
v3.25.0.1
Income Taxes - Components of Deferred Income Tax Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Difference between effective tax rates and federal statutory rates applied to financial statement income      
Tax at statutory federal income tax rate $ 23,721 $ 26,126 $ 19,225
Nontaxable interest income, net of disallowed interest deduction (820) (947) (1,097)
BOLI Income (950) (445) (151)
State income taxes, net of federal benefit 5,775 7,911 6,091
Stock based compensation (139) (132) (43)
Other, net 105 166 119
Total tax at effective tax rate $ 27,692 $ 32,679 $ 24,144
v3.25.0.1
Equity Compensation Plans (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
May 31, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
May 31, 2019
Equity Compensation Plans          
Total compensation cost   $ 4.1 $ 3.6 $ 3.0  
Vesting percentage , fully vest , performance measure   50.00%      
Minimum          
Equity Compensation Plans          
Vesting percentage , fully vest , performance measure   50.00%      
Maximum          
Equity Compensation Plans          
Vesting percentage , pro rata , performance measure   50.00%      
2019 Plan          
Equity Compensation Plans          
Number of shares authorized 1,800,000       600,000
Increase in number of shares authorized 1,200,000        
Number of shares available for issuance   745,588      
Restricted Stock and Restricted Stock Units | 2019 Plan          
Equity Compensation Plans          
Vesting period   3 years      
v3.25.0.1
Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Changes in unvested awards    
Nonvested at the beginning of the period (in shares) 709,237  
Granted (in shares) 339,235 240,149
Vested (in shares) (248,386)  
Forfeited (in shares) (21,808)  
Nonvested at the end of the period (in shares) 778,278 709,237
Weighted Average Grant Date Fair Value    
Nonvested at the beginning of the period (in dollars per share) $ 14.26  
Granted (in dollars per share) 13.44  
Vested (in dollars per share) 11.54  
Forfeited (in dollars per share) 15.10  
Nonvested at the end of the period (in dollars per share) $ 14.75 $ 14.26
Additional information    
Total unrecognized compensation cost of restricted awards $ 4.2  
Expected weighted-average period for recognition of unrecognized compensation 1 year 8 months 23 days  
v3.25.0.1
Earnings Per Share - Reconciliation (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Basic earnings per share:      
Weighted-average common shares outstanding 44,828,290 44,663,722 44,526,655
Net income $ 85,264 $ 91,729 $ 67,405
Basic earnings per share $ 1.90 $ 2.05 $ 1.51
Diluted earnings per share:      
Weighted-average common shares outstanding 44,828,290 44,663,722 44,526,655
Diluted average common shares outstanding 45,639,351 45,395,010 45,213,088
Diluted earnings per share $ 1.87 $ 2.02 $ 1.49
Restricted Stock and Restricted Stock Units      
Diluted earnings per share:      
Dilutive effect of share-based payment awards (in shares) 811,061 731,288 686,433
v3.25.0.1
Commitments - Summary of Financial Instrument Commitments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fixed Letters of Credit    
Financial instrument commitments    
Financial instrument commitments $ 740 $ 735
Fixed Letters of Credit | Commitments to Extend Credit to Borrowers [Member]    
Financial instrument commitments    
Financial instrument commitments 740 735
Fixed Letters of Credit | Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit    
Financial instrument commitments    
Financial instrument commitments 188 173
Fixed Letters of Credit | Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee    
Financial instrument commitments    
Financial instrument commitments 552 562
Fixed Letters of Credit | Unused lines of Credit    
Financial instrument commitments    
Loan commitments 163,282 140,305
Variable Letters of Credit    
Financial instrument commitments    
Financial instrument commitments 26,596 30,377
Variable Letters of Credit | Commitments to Extend Credit to Borrowers [Member]    
Financial instrument commitments    
Financial instrument commitments 26,529 30,310
Variable Letters of Credit | Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit    
Financial instrument commitments    
Financial instrument commitments 16,322 16,621
Variable Letters of Credit | Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee    
Financial instrument commitments    
Financial instrument commitments 10,207 13,689
Variable Letters of Credit | Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee    
Financial instrument commitments    
Financial instrument commitments 67 67
Variable Letters of Credit | Unused lines of Credit    
Financial instrument commitments    
Loan commitments 616,533 694,960
Letter of Credit    
Financial instrument commitments    
Financial instrument commitments 27,336 31,112
Letter of Credit | Commitments to Extend Credit to Borrowers [Member]    
Financial instrument commitments    
Financial instrument commitments 27,269 31,045
Letter of Credit | Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit    
Financial instrument commitments    
Financial instrument commitments 16,510 16,794
Letter of Credit | Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee    
Financial instrument commitments    
Financial instrument commitments 10,759 14,251
Letter of Credit | Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee    
Financial instrument commitments    
Financial instrument commitments 67 67
Letter of Credit | Unused lines of Credit    
Financial instrument commitments    
Loan commitments $ 779,815 $ 835,265
v3.25.0.1
Commitments - Lease Commitments and Legal Proceedings (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Estimated aggregate minimum annual rental commitments      
Aggregate future minimum rental income receivable under noncancelable leases $ 420,000    
Total facility net operating lease revenue/expense 1,200,000 $ 844,000 $ 396,000
Total ATM lease expense 2,400,000 $ 2,100,000 $ 1,900,000
2025 2,149,000    
2026 1,945,000    
2027 1,877,000    
2028 1,758,000    
2029 1,692,000    
2030 and thereafter $ 5,824,000    
v3.25.0.1
Regulatory & Capital Matters (Details)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Regulatory & Capital Matters          
Tier 1 capital leverage ratio (as a percent)       0.1130 0.1006
Risk-based capital ratio (as a percent)       0.1554 0.1406
Phase out of impact of allowance for credit loss         $ 3,800,000
Percentage of increase in the allowance for credit losses 25.00% 25.00% 25.00%    
Deferment of impact on retained earnings       $ 951,000  
Subsidiaries          
Regulatory & Capital Matters          
Tier 1 capital leverage ratio (as a percent)       0.1090 0.1041
Risk-based capital ratio (as a percent)       0.1382 0.1324
Minimum | Subsidiaries          
Regulatory & Capital Matters          
Tier 1 capital leverage ratio (as a percent)       0.08  
Risk-based capital ratio (as a percent)       0.12  
v3.25.0.1
Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Common equity tier 1 capital to risk weighted assets    
Actual $ 607,294 $ 547,721
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable $ 331,596 $ 337,207
Common equity tier 1 capital to risk weighted assets, Ratio    
Actual (as a percent) 0.1282% 0.1137%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.07% 0.07%
Total capital to risk weighted assets, Amount    
Actual at period end $ 736,492 $ 677,076
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable $ 497,630 $ 505,640
Total capital to risk weighted assets, Ratio    
Risk-based capital ratio (as a percent) 0.1554 0.1406
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.1050 0.1050
Tier 1 capital to risk weighted assets, Amount    
Actual $ 632,294 $ 572,721
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable $ 402,886 $ 409,430
Tier 1 capital to risk weighted assets, Ratio    
Actual (as a percent) 0.1334 0.1189
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.0850 0.0850
Tier 1 capital to average assets, Amount    
Actual $ 632,294 $ 572,721
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable $ 223,821 $ 227,722
Tier 1 capital to average assets, Ratio    
Tier 1 capital leverage ratio (as a percent) 0.1130 0.1006
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.0400 0.0400
Subsidiaries    
Common equity tier 1 capital to risk weighted assets    
Actual $ 610,285 $ 592,413
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable 331,419 336,598
Minimum Required to Be Well Capitalized $ 307,747 $ 312,556
Common equity tier 1 capital to risk weighted assets, Ratio    
Actual (as a percent) 0.1289% 0.1232%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.07% 0.07%
Minimum Required to Be Well Capitalized (as a percent) 0.065% 0.065%
Total capital to risk weighted assets, Amount    
Actual at period end $ 654,484 $ 636,768
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable 497,256 504,990
Minimum Required to Be Well Capitalized $ 473,577 $ 480,943
Total capital to risk weighted assets, Ratio    
Risk-based capital ratio (as a percent) 0.1382 0.1324
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.1050 0.1050
Minimum Required to Be Well Capitalized (as a percent) 0.1000 0.1000
Tier 1 capital to risk weighted assets, Amount    
Actual $ 610,285 $ 592,413
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable 402,438 408,727
Minimum Required to Be Well Capitalized $ 378,765 $ 384,684
Tier 1 capital to risk weighted assets, Ratio    
Actual (as a percent) 0.1289 0.1232
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.0850 0.0850
Minimum Required to Be Well Capitalized (as a percent) 0.0800 0.0800
Tier 1 capital to average assets, Amount    
Actual $ 610,285 $ 592,413
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable 223,958 227,632
Minimum Required to Be Well Capitalized $ 279,947 $ 284,540
Tier 1 capital to average assets, Ratio    
Tier 1 capital leverage ratio (as a percent) 0.1090 0.1041
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) 0.0400 0.0400
Minimum Required to Be Well Capitalized (as a percent) 0.0500 0.0500
v3.25.0.1
Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Dividend Restrictions and Deferrals  
Number of previous years retained profit considered for dividend payment 2 years
Payments of dividends $ 107.8
Minimum capital requirements, minimum percentage required 2.50%
v3.25.0.1
Mortgage Banking Derivatives (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mortgage Banking Derivatives      
Amount of loans sold to investors $ 58,000    
Proceeds from sale of loan to investors 58,818 $ 52,186 $ 81,776
Gain on sale of loan 1,805 1,477 $ 2,022
Federal National Mortgage Association [Member]      
Mortgage Banking Derivatives      
Amount of loans sold to investors $ 45,000    
Federal National Mortgage Association [Member] | Customer Concentration Risk | Loan receivables      
Mortgage Banking Derivatives      
Percentage of concentration risk 77.90%    
Federal Home Loan Mortgage Corporation [Member]      
Mortgage Banking Derivatives      
Amount of loans sold to investors $ 7,500    
Federal Home Loan Mortgage Corporation [Member] | Customer Concentration Risk | Loan receivables      
Mortgage Banking Derivatives      
Percentage of concentration risk 13.00%    
Not Designated as Hedging Instrument | Forward Contracts [Member]      
Mortgage Banking Derivatives      
Notional or Contractual Amount $ 5,500 6,000  
Fair value 10 (46)  
Not Designated as Hedging Instrument | Interest Rate Lock Commitments [Member]      
Mortgage Banking Derivatives      
Notional or Contractual Amount 3,167 1,312  
Fair value $ 45 $ 36  
v3.25.0.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]    
Fair value transfer assets into level 3 $ 0  
Asset-backed Securities    
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]    
Fair value transfer assets out of level 3   $ 14,885
Collateralized loan obligations.    
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]    
Fair value transfer assets out of level 3   $ 6,764
v3.25.0.1
Fair Value Measurements - Recurring (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Securities available-for-sale $ 1,161,701 $ 1,192,829
Mortgage servicing rights 10,374 10,344
U.S. Treasury    
Assets:    
Securities available-for-sale 194,143 169,574
U.S. government agencies    
Assets:    
Securities available-for-sale 37,814 56,959
States and political subdivisions    
Assets:    
Securities available-for-sale 215,456 227,065
Collateralized mortgage obligations    
Assets:    
Securities available-for-sale 368,616 392,544
Asset-backed Securities    
Assets:    
Securities available-for-sale 62,303 68,436
Collateralized loan obligations.    
Assets:    
Securities available-for-sale 183,092 171,881
Fair Value, Inputs, Level 1    
Assets:    
Securities available-for-sale 194,143 169,574
Fair Value, Inputs, Level 2    
Assets:    
Securities available-for-sale 952,408 1,007,926
Loans held-for-sale 1,556 1,322
Interest rate derivatives 5,498 5,302
Liabilities:    
Mortgage banking derivatives 3,187 8,324
Fair Value, Inputs, Level 3    
Assets:    
Securities available-for-sale 15,150 15,329
Fair Value, Measurements, Recurring    
Assets:    
Loans held-for-sale 1,556 1,322
Mortgage servicing rights 10,374 10,344
Total financial assets 1,179,212 1,209,886
Liabilities:    
Mortgage banking derivatives   10
Total 3,192 8,334
Fair Value, Measurements, Recurring | Interest rate swap agreements, including risk participation agreement    
Assets:    
Interest rate derivatives   5,391
Liabilities:    
Mortgage banking derivatives 3,192 8,324
Fair Value, Measurements, Recurring | Forward Contracts    
Assets:    
Interest rate derivatives 55  
Fair Value, Measurements, Recurring | Interest Rate Products    
Assets:    
Interest rate derivatives 5,526  
Fair Value, Measurements, Recurring | U.S. Treasury    
Assets:    
Securities available-for-sale 194,143 169,574
Fair Value, Measurements, Recurring | U.S. government agencies    
Assets:    
Securities available-for-sale 37,814 56,959
Fair Value, Measurements, Recurring | Mortgage Backed Securities, Issued by US Government Agencies    
Assets:    
Securities available-for-sale 100,277 106,370
Fair Value, Measurements, Recurring | States and political subdivisions    
Assets:    
Securities available-for-sale 215,456 227,065
Fair Value, Measurements, Recurring | Collateralized mortgage obligations    
Assets:    
Securities available-for-sale 368,616 392,544
Fair Value, Measurements, Recurring | Asset-backed Securities    
Assets:    
Securities available-for-sale 62,303 68,436
Fair Value, Measurements, Recurring | Collateralized loan obligations.    
Assets:    
Securities available-for-sale 183,092 171,881
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1    
Assets:    
Total financial assets 194,143 169,574
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. Treasury    
Assets:    
Securities available-for-sale 194,143 169,574
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2    
Assets:    
Loans held-for-sale 1,556 1,322
Total financial assets 959,545 1,014,639
Liabilities:    
Mortgage banking derivatives   10
Total 3,192 8,334
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest rate swap agreements, including risk participation agreement    
Assets:    
Interest rate derivatives   5,391
Liabilities:    
Mortgage banking derivatives 3,192 8,324
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Forward Contracts    
Assets:    
Interest rate derivatives 55  
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest Rate Products    
Assets:    
Interest rate derivatives 5,526  
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. government agencies    
Assets:    
Securities available-for-sale 37,814 56,959
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage Backed Securities, Issued by US Government Agencies    
Assets:    
Securities available-for-sale 100,277 106,370
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | States and political subdivisions    
Assets:    
Securities available-for-sale 203,560 214,006
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations    
Assets:    
Securities available-for-sale 368,616 392,544
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset-backed Securities    
Assets:    
Securities available-for-sale 59,049 66,166
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Collateralized loan obligations.    
Assets:    
Securities available-for-sale 183,092 171,881
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3    
Assets:    
Mortgage servicing rights 10,374 10,344
Total financial assets 25,524 25,673
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | States and political subdivisions    
Assets:    
Securities available-for-sale 11,896 13,059
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Asset-backed Securities    
Assets:    
Securities available-for-sale $ 3,254 $ 2,270
v3.25.0.1
Fair Value Measurements - Changes in Level 3 (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Changes in Level 3    
Transfers into Level 3 $ 0  
Asset-backed Securities    
Changes in Level 3    
Beginning balance 2,270 $ 16,740
Transfers out of Level 3   (14,885)
Total gains or losses    
Included in earnings   (11)
Included in other comprehensive income (69) 239
Purchases, issuances, sales, and settlements    
Purchases 1,209 782
Settlements (156) (595)
Ending balance 3,254 2,270
Collateralized loan obligations.    
Changes in Level 3    
Beginning balance   6,770
Transfers out of Level 3   (6,764)
Total gains or losses    
Included in other comprehensive income   (6)
States and political subdivisions    
Changes in Level 3    
Beginning balance 13,059 12,501
Total gains or losses    
Included in earnings (125) (135)
Included in other comprehensive income (444) 998
Purchases, issuances, sales, and settlements    
Settlements (594) (305)
Ending balance 11,896 13,059
Mortgage Servicing rights    
Changes in Level 3    
Beginning balance 10,344 11,189
Total gains or losses    
Included in earnings (160) (924)
Purchases, issuances, sales, and settlements    
Issuances 753 580
Settlements (563) (501)
Ending balance $ 10,374 $ 10,344
v3.25.0.1
Fair Value Measurements - Quantitative and Qualitative Information (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Quantitative information about Level 3 fair value measurements    
Mortgage servicing rights, fair value $ 10,374 $ 10,344
Securities available-for-sale, at fair value 1,161,701 1,192,829
Fair Value, Inputs, Level 3    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 15,150 15,329
Asset-backed Securities    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 62,303 68,436
States and political subdivisions    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 215,456 227,065
Collateralized mortgage obligations    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 368,616 392,544
Fair Value, Measurements, Recurring    
Quantitative information about Level 3 fair value measurements    
Mortgage servicing rights, fair value 10,374 10,344
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3    
Quantitative information about Level 3 fair value measurements    
Mortgage servicing rights, fair value 10,374 10,344
Fair Value, Measurements, Recurring | Asset-backed Securities    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 62,303 68,436
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 3    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 3,254 2,270
Fair Value, Measurements, Recurring | States and political subdivisions    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 215,456 227,065
Fair Value, Measurements, Recurring | States and political subdivisions | Fair Value, Inputs, Level 3    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 11,896 13,059
Fair Value, Measurements, Recurring | Collateralized mortgage obligations    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value 368,616 392,544
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value $ 3,254 $ 2,270
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.049 0.056
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.049 0.056
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.049 0.056
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3    
Quantitative information about Level 3 fair value measurements    
Mortgage servicing rights, fair value $ 10,374 $ 10,344
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum    
Quantitative information about Level 3 fair value measurements    
Servicing Asset, Measurement Input 0.090 0.090
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum    
Quantitative information about Level 3 fair value measurements    
Servicing Asset, Measurement Input 0.110 0.110
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average    
Quantitative information about Level 3 fair value measurements    
Servicing Asset, Measurement Input 0.090 0.090
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3    
Quantitative information about Level 3 fair value measurements    
Securities available-for-sale, at fair value $ 11,896 $ 13,059
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.053 0.032
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.054 0.054
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.054 0.047
Fair Value, Measurements, Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum    
Quantitative information about Level 3 fair value measurements    
Servicing Asset, Measurement Input 0.000 0.051
Fair Value, Measurements, Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum    
Quantitative information about Level 3 fair value measurements    
Servicing Asset, Measurement Input 0.315 0.330
Fair Value, Measurements, Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average    
Quantitative information about Level 3 fair value measurements    
Servicing Asset, Measurement Input 0.069 0.066
Fair Value, Measurements, Recurring | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.005 0.005
Fair Value, Measurements, Recurring | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.005 0.005
Fair Value, Measurements, Recurring | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average    
Quantitative information about Level 3 fair value measurements    
Debt Securities, Measurement Input 0.005 0.005
v3.25.0.1
Fair Value Measurements - Nonrecurring (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets and liabilities measured at fair value        
Valuation allowance $ 26,200,000      
Carrying value of other real estate owned 21,617,000 $ 5,123,000 $ 1,561,000 $ 2,356,000
OREO Valuation allowance 1,862,000 118,000 $ 856,000 $ 1,179,000
Impaired Loans | Reported Value Measurement        
Assets and liabilities measured at fair value        
Increase (decrease) of specific allocations within the provision for loan losses   6,500,000    
Fair Value, Measurements, Nonrecurring        
Assets and liabilities measured at fair value        
Total 40,675,000 71,303,000    
Fair Value, Measurements, Nonrecurring | Impaired Loans        
Assets and liabilities measured at fair value        
Total 19,058,000 66,180,000    
Valuation allowance 7,200,000 11,100,000    
Increase (decrease) of specific allocations within the provision for loan losses 3,900,000      
Fair Value, Measurements, Nonrecurring | Impaired Loans | Reported Value Measurement        
Assets and liabilities measured at fair value        
Total 26,200,000 77,300,000    
Fair Value, Measurements, Nonrecurring | Other Real Estate Owned        
Assets and liabilities measured at fair value        
Total 21,617,000 5,123,000    
Carrying value of other real estate owned 21,600,000 5,100,000    
Outstanding balance 23,500,000 5,200,000    
OREO Valuation allowance 1,900,000 118,000    
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3        
Assets and liabilities measured at fair value        
Total 40,675,000 71,303,000    
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Impaired Loans        
Assets and liabilities measured at fair value        
Total 19,058,000 66,180,000    
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Other Real Estate Owned        
Assets and liabilities measured at fair value        
Total $ 21,617,000 $ 5,123,000    
v3.25.0.1
Fair Values of Financial Instruments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financial assets:    
Cash and due from banks $ 52,175 $ 55,534
Interest earning deposits with financial institutions 47,154 44,611
Securities available-for-sale 1,161,701 1,192,829
FHLBC and FRBC Stock 19,441 33,355
Mortgage servicing rights 10,374 10,344
Financial liabilities:    
Noninterest bearing deposits 1,704,920 1,834,891
Other short-term borrowings 20,000 405,000
Junior subordinated debentures $ 25,773 $ 25,773
Derivative Asset Statement Of Financial Position Extensible Enumeration Not Disclosed Flag true  
Derivative Liability Statement Of Financial Position Extensible Enumeration Not Disclosed Flag true true
Reported Value Measurement    
Financial assets:    
Cash and due from banks $ 52,175 $ 55,534
Interest earning deposits with financial institutions 47,154 44,611
Securities available-for-sale 1,161,701 1,192,829
FHLBC and FRBC Stock 19,441 33,355
Loans held for sale 1,556 1,322
Net loans 3,937,717 3,998,689
Interest rate swap and rate cap agreements 5,498 5,302
Interest rate lock commitments and forward contracts 55  
Interest receivable on securities and loans 24,598 27,159
Financial liabilities:    
Noninterest bearing deposits 1,704,920 1,834,891
Interest bearing deposits 3,063,811 2,735,855
Securities sold under repurchase agreements 36,657 26,470
Other short-term borrowings 20,000 405,000
Junior subordinated debentures 25,773 25,773
Subordinated debentures 59,467 59,382
Interest rate swap and rate cap agreements 3,187 8,324
Interest rate lock commitments and forward contracts   10
Interest payable on deposits and borrowings 3,871 2,962
Estimate of Fair Value Measurement    
Financial assets:    
Cash and due from banks 52,175 55,534
Interest earning deposits with financial institutions 47,154 44,611
Securities available-for-sale 1,161,701 1,192,829
FHLBC and FRBC Stock 19,441 33,355
Loans held for sale 1,556 1,322
Net loans 3,818,303 3,876,381
Interest rate swap and rate cap agreements 5,498 5,302
Interest rate lock commitments and forward contracts 55  
Interest receivable on securities and loans 24,598 27,159
Financial liabilities:    
Noninterest bearing deposits 1,704,920 1,834,891
Interest bearing deposits 3,056,180 2,726,223
Securities sold under repurchase agreements 36,657 26,470
Other short-term borrowings 20,000 405,000
Junior subordinated debentures 21,444 20,361
Subordinated debentures 54,533 47,982
Interest rate swap and rate cap agreements 3,187 8,324
Interest rate lock commitments and forward contracts   10
Interest payable on deposits and borrowings 3,871 2,962
Fair Value, Inputs, Level 1    
Financial assets:    
Cash and due from banks 52,175 55,534
Interest earning deposits with financial institutions 47,154 44,611
Securities available-for-sale 194,143 169,574
Financial liabilities:    
Noninterest bearing deposits 1,704,920 1,834,891
Fair Value, Inputs, Level 2    
Financial assets:    
Securities available-for-sale 952,408 1,007,926
FHLBC and FRBC Stock 19,441 33,355
Loans held for sale 1,556 1,322
Interest rate swap and rate cap agreements 5,498 5,302
Interest rate lock commitments and forward contracts 55  
Interest receivable on securities and loans 24,598 27,159
Financial liabilities:    
Interest bearing deposits 3,056,180 2,726,223
Securities sold under repurchase agreements 36,657 26,470
Other short-term borrowings 20,000 405,000
Junior subordinated debentures 21,444 20,361
Subordinated debentures 54,533 47,982
Interest rate swap and rate cap agreements 3,187 8,324
Interest rate lock commitments and forward contracts   10
Interest payable on deposits and borrowings 3,871 2,962
Fair Value, Inputs, Level 3    
Financial assets:    
Securities available-for-sale 15,150 15,329
Net loans $ 3,818,303 $ 3,876,381
v3.25.0.1
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Fair Value of Derivatives (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
item
Dec. 31, 2024
USD ($)
item
Dec. 31, 2023
USD ($)
item
Two financial institutions      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Cash collateral pledged with financial institutions, dollars $ 2,300,000 $ 2,300,000 $ 7,300,000
Number of financial institutions in which cash collateral pledged | item   1 2
Interest Rate Swap      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Investment securities pledged with financial institutions, dollars $ 0 $ 0 $ 0
Number of financial institutions in which cash collateral pledged 5,200,000 2 1
Interest Rate Swap | Two financial institutions      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Cash collateral pledged with financial institutions, dollars     $ 4,100,000
Designated as Hedging Instrument      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Derivative assets designated as hedging instruments, fair value $ 3,823,000 $ 3,823,000 2,576,000
Derivative liabilities designated as hedging instruments, fair value $ 1,512,000 $ 1,512,000 $ 5,598,000
Designated as Hedging Instrument | Interest Rate Products | OSBC Affiliates      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Derivative, number of transactions | item 5 5 5
Notional amount $ 325,774,000 $ 325,774,000 $ 325,774,000
Derivative assets designated as hedging instruments, fair value 3,823,000 3,823,000 2,576,000
Derivative liabilities designated as hedging instruments, fair value 1,512,000 1,512,000 5,598,000
Designated as Hedging Instrument | Interest Rate Swap | Cash flow hedges of certain variable rate commercial and commercial real estate loan pools      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Notional amount 300,000,000.0 300,000,000.0 300,000,000.0
Designated as Hedging Instrument | Interest Rate Swap | Cash flow hedge of junior subordinated debentures and was executed to pay fixed and receive variable rate cash flows      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Notional amount 25,800,000 25,800,000 25,800,000
Not Designated as Hedging Instrument      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Derivative assets designated as hedging instruments, fair value 1,758,000 1,758,000 2,805,000
Derivative liabilities designated as hedging instruments, fair value $ 1,680,000 $ 1,680,000 $ 2,726,000
Not Designated as Hedging Instrument | Interest Rate Products | Commercial Loan Customers      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Derivative, number of transactions | item 13 13 17
Notional amount $ 154,137,000 $ 154,137,000 $ 104,777,000
Derivative assets designated as hedging instruments, fair value 1,675,000 1,675,000 2,726,000
Derivative liabilities designated as hedging instruments, fair value 1,675,000 1,675,000 2,726,000
Not Designated as Hedging Instrument | Interest Rate Swap      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Notional amount 121,200,000 121,200,000 104,800,000
Not Designated as Hedging Instrument | Commitments.      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Notional amount $ 8,700,000 $ 8,700,000 $ 8,400,000
Not Designated as Hedging Instrument | Interest Rate Lock Commitments and Forward Contracts.      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Derivative, number of transactions | item 30 30 24
Notional amount $ 8,667,000 $ 8,667,000 $ 8,375,000
Derivative assets designated as hedging instruments, fair value $ 55,000 $ 55,000 $ 10,000
Not Designated as Hedging Instrument | Other Contracts      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Derivative, number of transactions | item 5 5 4
Notional amount $ 58,259,000 $ 58,259,000 $ 44,790,000
Derivative assets designated as hedging instruments, fair value 28,000 28,000 89,000
Derivative liabilities designated as hedging instruments, fair value 5,000 5,000  
Not Designated as Hedging Instrument | Forward Contracts      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Notional amount 5,500,000 5,500,000 $ 6,000,000
Interest Income      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Amount to be reclassified as an decrease to interest expense during the next twelve months 404,000 404,000  
Interest Expense      
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Amount to be reclassified as an decrease to interest expense during the next twelve months $ 1,500,000 $ 1,500,000  
v3.25.0.1
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Effect of Fair Value (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions      
Amount of gain reclassified from AOCI to interest income $ 1,700,000 $ (2,200,000) $ (4,200,000)
Amount of Gain or (Loss) Recognized in Income on Derivative $ (6,000,000.0) $ (5,600,000) $ (373,000)
v3.25.0.1
Preferred Stock (Details) - shares
Dec. 31, 2024
Dec. 31, 2023
Preferred Stock.    
Preferred stock, Shares authorized 300,000 300,000
v3.25.0.1
Parent Company Condensed Financial Information - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets        
Other assets $ 55,670 $ 63,592    
Total assets 5,649,377 5,722,799    
Liabilities and Stockholders' Equity        
Junior subordinated debentures 25,773 25,773    
Subordinated debt 59,467 59,382    
Other liabilities 67,715 58,147    
Stockholders' equity 671,034 577,281 $ 461,141 $ 502,027
Total liabilities and stockholders' equity 5,649,377 5,722,799    
Parent Company        
Assets        
Noninterest bearing deposit with bank subsidiary 78,007 36,686    
Investment in subsidiaries 671,894 620,663    
Other assets 7,457 6,183    
Total assets 757,358 663,532    
Liabilities and Stockholders' Equity        
Junior subordinated debentures 25,773 25,773    
Subordinated debt 59,467 59,382    
Other liabilities 1,084 1,096    
Stockholders' equity 671,034 577,281    
Total liabilities and stockholders' equity $ 757,358 $ 663,532    
v3.25.0.1
Parent Company Condensed Financial Information - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating Expenses      
Junior subordinated debentures $ 1,127 $ 1,095 $ 1,136
Subordinated debentures 2,185 2,185 2,185
Senior notes   2,408 2,682
Income before income taxes and equity in undistributed net income of subsidiaries 112,956 124,408 91,549
Income tax benefit 27,692 32,679 24,144
Net income 85,264 91,729 67,405
Parent Company      
Operating Income      
Cash dividends received from subsidiaries 55,000 65,000 40,000
Other income 59 67 29
Total operating income 55,059 65,067 40,029
Operating Expenses      
Junior subordinated debentures 1,127 1,095 1,136
Subordinated debentures 2,185 2,185 2,185
Senior notes   2,408 2,682
Notes payable   87 385
Other expenses 6,209 5,947 5,086
Total operating expense 9,521 11,722 11,474
Income before income taxes and equity in undistributed net income of subsidiaries 45,538 53,345 28,555
Income tax benefit (2,644) (3,309) (3,216)
Income before equity in undistributed net income of subsidiaries 48,182 56,654 31,771
Equity in undistributed net income of subsidiaries 37,082 35,075 35,634
Net income $ 85,264 $ 91,729 $ 67,405
v3.25.0.1
Parent Company Condensed Financial Information - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash Flows from Operating Activities      
Net Income (Loss) $ 85,264 $ 91,729 $ 67,405
Adjustments to reconcile net income to net cash from operating activities:      
Change in taxes payable 5,991 (4,872) 12,048
Stock based compensation 3,914 3,603 2,960
Net cash provided by operating activities 131,533 116,401 97,344
Cash Flows from Investing Activities      
Cash received from (paid for) acquisition, net 237,441   (146)
Net cash provided by (used in) investing activities 322,701 161,555 (432,778)
Cash Flows from Financing Activities      
Dividends paid on common stock (9,413) (8,946) (8,877)
Purchases of treasury stock (1,048) (605) (455)
Repayment of term note     (6,056)
Repayment of senior notes   (45,000)  
Net cash used in financing activities (455,050) (292,988) (301,496)
Net change in cash and cash equivalents (816) (15,032) (636,930)
Cash and cash equivalents at beginning of period 100,145 115,177 752,107
Cash and cash equivalents at end of period 99,329 100,145 115,177
Parent Company      
Cash Flows from Operating Activities      
Net Income (Loss) 85,264 91,729 67,405
Adjustments to reconcile net income to net cash from operating activities:      
Equity in undistributed net income of subsidiaries (37,082) (35,075) (35,634)
Provision for deferred tax (benefit) expense (152) (513) 91
Change in taxes payable (250) 794 (4,694)
Change in other assets 12 (43) 12
Stock based compensation 3,914 3,603 2,960
Other, net 76 575 (2,753)
Net cash provided by operating activities 51,782 61,070 27,387
Cash Flows from Financing Activities      
Dividend paid on common stock (9,413) (8,946) (8,877)
Purchases of treasury stock (1,048) (605) (455)
Repayment of term note   (9,000) (4,000)
Repayment of senior notes   (45,000)  
Net cash used in financing activities (10,461) (63,551) (13,332)
Net change in cash and cash equivalents 41,321 (2,481) 14,055
Cash and cash equivalents at beginning of period 36,686 39,167 25,112
Cash and cash equivalents at end of period $ 78,007 $ 36,686 $ 39,167
v3.25.0.1
Employee Benefit Plans (Details) - USD ($)
$ in Millions
 12 Months Ended 36 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2024
Employee Benefit Plans        
Expense relating to the 401(k) plan $ 2.3 $ 2.2 $ 2.0  
Company obligations under Voluntary Deferred Compensation Plan for Executives $ 8.0 $ 5.9   $ 8.0
Old Second Bancorp Inc Employees 401(k) Savings Plan and Trust        
Employee Benefit Plans        
Company's discretionary matching contributions to the Plan (as a percent) 100.00% 100.00% 100.00%  
Company's discretionary matching contributions to the Plan (as a percent)       50.00%
Percentage of compensation contributed to the Plan matched by employer (as a percent)       2.00%
Percentage of compensation contributed to the Plan matched by employer 3.00% 3.00% 3.00%  
Participants vesting as percentage of discretionary matching contributions 100.00%      
v3.25.0.1
Segment Information (Details)
 12 Months Ended
Dec. 31, 2024
segment
Segment Information  
Number of reportable segment 1