0000721994-23-000014 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 15, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	0-11487
Entity Registrant Name	LAKELAND FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-1559596
Entity Address, Address Line One	202 East Center Street
Entity Address, Address Line Two	P.O. Box 1387
Entity Address, City or Town	Warsaw
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46581
City Area Code	574
Local Phone Number	267-6144
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	LKFN
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 1,614,362,675
Entity Common Stock, Shares Outstanding		25,428,963
Documents Incorporated by Reference	Part III - Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on April 11, 2023 are incorporated by reference into Part III hereof.
Entity Central Index Key	0000721994
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Crowe LLP
Auditor Firm ID	173
Auditor Location	South Bend, Indiana

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 80,992	$ 51,830
Short-term investments	49,290	631,410
Total cash and cash equivalents	130,282	683,240
Securities available-for-sale, at fair value	1,185,528	1,398,558
Securities held-to-maturity, at amortized cost (fair value of $111,029 and $0 respectively)	128,242	0
Real estate mortgage loans held-for-sale	357	7,470
Loans, net of allowance for credit losses of $72,606 and $67,773	4,637,790	4,220,068
Land, premises and equipment, net	58,097	59,309
Bank owned life insurance	108,407	97,652
Federal Reserve and Federal Home Loan Bank Stock	15,795	13,772
Accrued interest receivable	27,994	17,674
Goodwill	4,970	4,970
Other assets	134,909	54,610
Total assets	6,432,371	6,557,323
LIABILITIES
Noninterest bearing deposits	1,736,761	1,895,481
Interest bearing deposits	3,723,859	3,839,926
Total deposits	5,460,620	5,735,407
Federal Funds purchased	22,000	0
Federal Home Loan Bank advances	275,000	75,000
Total borrowings	297,000	75,000
Accrued interest payable	3,186	2,619
Other liabilities	102,678	39,391
Total liabilities	5,863,484	5,852,417
Commitments, off-balance sheet risks and contingencies (Notes 1 and 17)
STOCKHOLDERS’ EQUITY
Common stock	127,004	120,615
Retained earnings	646,100	583,134
Accumulated other comprehensive income (loss)	(188,923)	16,093
Treasury stock, at cost (475,902 shares and 476,816 shares as of December 31, 2022 and 2021, respectively)	(15,383)	(15,025)
Total stockholders’ equity	568,798	704,817
Noncontrolling interest	89	89
Total equity	568,887	704,906
Total liabilities and equity	$ 6,432,371	$ 6,557,323

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Securities held-to-maturity	$ 111,029	$ 0
Loans, net of allowance for credit losses	$ 72,606	$ 67,773
Common stock, shares authorized (in shares)	90,000,000	90,000,000
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares issued (in shares)	25,825,127	25,777,609
Common stock, shares outstanding (in shares)	25,349,225	25,300,793
Treasury stock, at cost (in shares)	475,902	476,816

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest and fees on loans
Taxable	$ 202,004	$ 170,081	$ 176,538
Tax exempt	1,664	470	647
Interest and dividends on securities
Taxable	14,132	9,086	6,973
Tax exempt	19,553	13,033	8,577
Other interest income	2,214	549	368
Total interest income	239,567	193,219	193,103
Interest on deposits	36,281	14,827	29,342
Interest on borrowings
Short-term	272	7	506
Long-term	127	297	247
Total interest expense	36,680	15,131	30,095
NET INTEREST INCOME	202,887	178,088	163,008
Provision for credit losses	9,375	1,077	14,770
CREDIT LOSSES	193,512	177,011	148,238
NONINTEREST INCOME
Wealth advisory fees	8,636	8,750	7,468
Investment brokerage fees	2,318	1,975	1,670
Service charges on deposit accounts	11,595	10,608	10,110
Loan and service fees	12,214	11,922	10,085
Merchant and interchange fee income	3,560	3,023	2,408
Bank owned life insurance income	432	2,467	2,105
Interest rate swap fee income	579	1,035	5,089
Mortgage banking income	633	1,418	3,911
Net securities gains	21	797	433
Other income	1,874	2,725	3,564
Total noninterest income	41,862	44,720	46,843
NONINTEREST EXPENSE
Salaries and employee benefits	58,530	57,882	49,413
Net occupancy expense	6,287	5,728	5,851
Equipment costs	5,763	5,530	5,766
Data processing fees and supplies	12,826	12,674	11,864
Corporate and business development	5,198	4,262	3,093
FDIC insurance and other regulatory fees	1,999	2,242	1,707
Professional fees	6,483	7,064	5,314
Other expense	13,124	8,905	8,197
Total noninterest expense	110,210	104,287	91,205
INCOME BEFORE INCOME TAX EXPENSE	125,164	117,444	103,876
Income tax expense	21,347	21,711	19,539
NET INCOME	$ 103,817	$ 95,733	$ 84,337
BASIC WEIGHTED AVERAGE COMMON SHARES (in shares)	25,528,328	25,475,994	25,469,242
BASIC EARNINGS PER COMMON SHARE (in USD per share)	$ 4.07	$ 3.76	$ 3.31
DILUTED WEIGHTED AVERAGE COMMON SHARES (in shares)	25,712,538	25,620,105	25,573,941
DILUTED EARNINGS PER COMMON SHARE (in USD per share)	$ 4.04	$ 3.74	$ 3.30

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 103,817	$ 95,733	$ 84,337
Change in available-for-sale and transferred securities:
Unrealized holding gain (loss) on securities available-for-sale arising during the period	(261,256)	(14,553)	20,148
Reclassification adjustment for amortization of unrealized losses on securities transferred to held-to-maturity	1,518	0	0
Reclassification adjustment for gains included in net income	(21)	(797)	(433)
Net securities gain (loss) activity during the period	(259,759)	(15,350)	19,715
Tax effect	54,549	3,224	(4,140)
Net of tax amount	(205,210)	(12,126)	15,575
Defined benefit pension plans:
Net gain (loss) on defined benefit pension plans	115	390	(105)
Amortization of net actuarial loss	144	242	251
Net gain (loss) on activity during the period	259	632	146
Tax effect	(65)	(157)	(36)
Net of tax amount	194	475	110
Total other comprehensive income (loss), net of tax	(205,016)	(11,651)	15,685
Comprehensive income (loss)	$ (101,199)	$ 84,082	$ 100,022

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Noncontrolling Interest
Balance (in shares) at Dec. 31, 2019				25,444,275
Balance at Dec. 31, 2019	$ 598,100		$ 598,011	$ 114,858	$ 475,247	$ 12,059	$ (4,153)	$ 89
Increase (Decrease) in Stockholders' Equity
Net income	84,337		84,337		84,337
Other comprehensive income (loss), net of tax	15,685		15,685			15,685
Cash dividends declared	(30,579)		(30,579)		(30,579)
Treasury shares purchased under share repurchase plan (in shares)				(289,101)
Treasury shares purchased under share repurchase plan	(10,012)		(10,012)	$ 0			(10,012)
Treasury shares purchased under deferred directors' plan (in shares)				(11,566)
Treasury shares purchased under deferred directors' plan	0		0	$ 535			(535)
Treasury shares sold and distributed under deferred directors' plan (in shares)				5,748
Treasury shares sold and distributed under deferred directors' plan	0		0	$ (119)			119
Stock activity under equity incentive plans (in shares)				90,392
Stock activity under equity incentive plans	(2,137)		(2,137)	$ (2,137)
Stock based compensation expense	1,790		1,790	$ 1,790
Balance (in shares) at Dec. 31, 2020				25,239,748
Balance at Dec. 31, 2020	657,184	$ (6,951)	657,095	$ 114,927	529,005	27,744	(14,581)	89
Increase (Decrease) in Stockholders' Equity
Net income	95,733		95,733		95,733
Other comprehensive income (loss), net of tax	(11,651)		(11,651)			(11,651)
Cash dividends declared	(34,653)		(34,653)		(34,653)
Treasury shares purchased under deferred directors' plan (in shares)				(8,820)
Treasury shares purchased under deferred directors' plan	0		0	$ 559			(559)
Treasury shares sold and distributed under deferred directors' plan (in shares)				5,664
Treasury shares sold and distributed under deferred directors' plan	0		0	$ (115)			115
Stock activity under equity incentive plans (in shares)				64,201
Stock activity under equity incentive plans	(1,914)		(1,914)	$ (1,914)
Stock based compensation expense	7,158		7,158	$ 7,158
Balance (in shares) at Dec. 31, 2021				25,300,793
Balance at Dec. 31, 2021	$ 704,906		704,817	$ 120,615	583,134	16,093	(15,025)	89
Increase (Decrease) in Stockholders' Equity
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Net income	$ 103,817		103,817		103,817
Other comprehensive income (loss), net of tax	(205,016)		(205,016)			(205,016)
Cash dividends declared	(40,851)		(40,851)		(40,851)
Treasury shares purchased under deferred directors' plan (in shares)				(7,641)
Treasury shares purchased under deferred directors' plan	0		0	$ 579			(579)
Treasury shares sold and distributed under deferred directors' plan (in shares)				8,555
Treasury shares sold and distributed under deferred directors' plan	0		0	$ (221)			221
Stock activity under equity incentive plans (in shares)				47,518
Stock activity under equity incentive plans	(1,780)		(1,780)	$ (1,780)
Stock based compensation expense	7,811		7,811	$ 7,811
Balance (in shares) at Dec. 31, 2022				25,349,225
Balance at Dec. 31, 2022	$ 568,887		$ 568,798	$ 127,004	$ 646,100	$ (188,923)	$ (15,383)	$ 89

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends declared, per share (in USD per share)	$ 1.60	$ 1.36	$ 1.20

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 103,817	$ 95,733	$ 84,337
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	6,020	6,105	6,042
Provision for loan losses	9,375	1,077	14,770
Net loss on sale and write down of other real estate owned	96	67	0
Amortization of loan servicing rights	757	2,282	772
Net change in loan servicing rights valuation allowance	(715)	0	715
Loans originated for sale, including participations	(28,666)	(119,439)	(117,600)
Net gain on sales of loans	(1,028)	(4,376)	(4,510)
Proceeds from sale of loans, including participations	36,454	126,391	114,244
Net (gain) loss on sale of premises and equipment	7	43	86
Net (gain) loss on sales and calls of securities available-for-sale	(21)	(797)	(433)
Net securities amortization	6,342	4,959	3,998
Stock based compensation expense	7,811	7,158	1,790
Earnings on life insurance	(432)	(2,467)	(2,105)
Gain on life insurance	0	(415)	(730)
Tax benefit of stock award issuances	(514)	(330)	(71)
Net change:
Interest receivable and other assets	(10,711)	(1,852)	(6,315)
Interest payable and other liabilities	40,750	(371)	(7,762)
Total adjustments	65,525	18,035	2,891
Net cash from operating activities	169,342	113,768	87,228
Cash flows from investing activities:
Proceeds from sale of securities available- for-sale	25,332	13,964	8,018
Proceeds from maturities, calls and principal paydowns of securities available-for-sale	108,129	137,812	97,998
Proceeds from maturities, calls and principal paydowns of securities held-to-maturity	30	0	0
Purchases of securities available-for-sale	(315,272)	(835,001)	(216,478)
Purchase of life insurance	(10,808)	(711)	(10,409)
Net (increase) decrease in total loans	(427,097)	356,660	(587,377)
Proceeds from sales of land, premises and equipment	6	8	658
Purchases of land, premises and equipment	(4,821)	(6,167)	(5,719)
Proceeds from redemption of Federal Home Loan Bank stock	932	0	0
Purchases of Federal Home Loan Bank stock	(2,955)	0	0
Proceeds from sales of other real estate owned	0	946	0
Proceeds from life insurance	0	943	1,285
Net cash from investing activities	(626,524)	(331,546)	(712,024)
Cash flows from financing activities:
Net increase (decrease) in total deposits	(274,787)	698,602	902,986
Net increase (decrease) in short-term borrowings	22,000	(10,500)	10,500
Payments on short-term FHLB borrowings	0	0	(170,000)
Proceeds from short-term FHLB borrowings	275,000	0	0
Payments on long-term FHLB borrowings	(75,000)	0	0
Proceeds from long-term FHLB borrowings	0	0	75,000
Common dividends paid	(40,838)	(34,640)	(30,566)
Preferred dividends paid	(13)	(13)	(13)
Payments related to equity incentive plan	(1,780)	(1,914)	(2,137)
Purchase of treasury stock	(579)	(559)	(10,547)
Sales of treasury stock	221	115	119
Net cash from financing activities	(95,776)	651,091	775,342
Net change in cash and cash equivalents	(552,958)	433,313	150,546
Beginning balance	683,240	249,927	99,381
Ending balance	130,282	683,240	249,927
Cash paid during the year for:
Interest	36,113	18,471	35,740
Income taxes	20,580	25,947	19,355
Supplemental non-cash disclosures:
Loans transferred to other real estate owned	0	893	35
Property transferred to held for sale	0	0	0
Right-of-use assets obtained in exchange for lease liabilities	$ 1,612	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation: The consolidated financial statements include Lakeland Financial Corporation (the “Holding Company”) and its wholly owned subsidiaries, Lake City Bank (the “Bank”) and LCB Risk Management, Inc., together referred to as (the “Company”). On December 18, 2006, LCB Investments II, Inc. was formed as a wholly owned subsidiary of the Bank incorporated in Nevada to manage a portion of the Bank’s investment portfolio beginning in 2007. On December 21, 2006, LCB Funding, Inc., a real estate investment trust incorporated in Maryland, was formed as a wholly owned subsidiary of LCB Investments II, Inc. On December 28, 2012, LCB Risk Management, Inc., a captive insurance company incorporated in Nevada, was formed as a wholly owned subsidiary of the Holding Company. All intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through the Bank, a full-service commercial bank with 52 branch offices in fifteen counties in Northern and Central Indiana. The Company provides commercial, retail, trust and investment services to its customers. Commercial products include commercial loans and technology-driven solutions to meet commercial customers’ treasury management needs such as mobile business banking and online treasury management services. Retail banking clients are provided a wide array of traditional retail banking services, including lending, deposit and investment services. Retail lending programs are focused on mortgage loans, home equity lines of credit and traditional retail installment loans. The Company provides credit card services to retail and commercial customers through its retail card program and merchant processing activity. The Company provides wealth advisory and trust clients with traditional personal and corporate trust services. The Company also provides retail brokerage services, including an array of financial and investment products such as annuities and life insurance. Other financial instruments, which represent potential concentrations of credit risk, include deposit accounts in other financial institutions. Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. Cash Flows: Cash and cash equivalents include cash, demand deposits in other financial institutions and short-term investments and certificates of deposit with maturities of 90 days or less. Cash flows are reported net for customer loan and deposit transactions, and certain short-term borrowings. Securities: Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. Securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Purchase premiums or discounts are recognized in interest income using the interest method over the terms of the securities or over estimated lives for mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, nature of the security, the underlying collateral, and the financial condition of the issuer, among other factors. If this assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and a valuation allowance for securities losses is recorded for the credit loss, limited by the amount that the fair value is less than the NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) amortized cost basis. Any impairment that has not been recorded through a valuation allowance for securities losses is recognized in other comprehensive income (loss). Changes in the valuation allowance for securities losses are recorded as a component of credit loss expense. Losses are charged against the valuation allowance for securities losses when management believes the uncollectibility of the security is confirmed or when either criteria regarding intent or requirement to sell is met. A portion of the municipal bond portfolio is classified as held-to-maturity. The Company measures expected credit losses on investment securities held-to-maturity on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in the Company's portfolio have been insignificant. After completing this assessment, the Company determined any credit losses as of December 31, 2022 were not material to the consolidated financial statements. Real Estate Mortgage Loans Held-for-Sale: Loans held for sale are reported at the lower of cost or fair value on an aggregate basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loan sales occur on the delivery date agreed to in the relevant commitment agreement. The Company retains servicing on the majority of loans sold. The carrying value of loans sold is reduced by the amount allocated to the servicing right. The gain or loss on the sale of loans is the difference between the carrying value of the loans sold and the funds received from the sale. Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an allowance for credit losses. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. All classes of commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage loans for which collateral is insufficient to cover all principal and accrued interest are reclassified as nonaccrual loans, on or before the date when the loan becomes 90 days delinquent. When a loan is classified as a nonaccrual loan, interest on the loan is no longer accrued, all unpaid accrued interest is reversed and interest income is subsequently recorded on the cash-basis or cost-recovery method. Accrual status is resumed when all contractually due payments are brought current and future payments are reasonably assured. Other consumer loans are not placed on a nonaccrual status since these loans are charged-off when they have been delinquent from 90 to 180 days, and when the related collateral, if any, is not sufficient to offset the indebtedness. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated and individually analyzed loans. The recorded investment in loans is the loan balance net of unamortized deferred loan fees and costs. The total amount of accrued interest on loans as of December 31, 2022 and 2021 was $18.4 million and $10.0 million. Allowance for Credit Losses: The allowance for credit losses is a valuation allowance to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management's judgment, should be charged against the allowance. A provision for credit losses is taken based on management's ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company's control. The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) with current and forecasted economic conditions that may affect borrowers' ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default ("PD/LGD") model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification to a borrower experiencing financial difficulty or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a loss rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee's Summary of Economic Projections, as well as portfolio trends based on the risks present for each portfolio segment. These environmental factors include consideration of portfolio trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover expected losses within the loan portfolio. Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other, and a consensus is reached by credit administration and the loan officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer's cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring. Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool's probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool. The historical loss rates are all supplemented with consideration of economic conditions and portfolio trends. The risk characteristics of each of the identified portfolio segments are as follows: Commercial and Industrial - Borrowers may be subject to industry conditions including decreases in product demand; increase in material or other production costs that cannot be immediately recaptured in the sales or distribution cycle; interest rate increases that could have an adverse impact on profitability; non-payment of credit that has been extended under normal vendor terms for goods sold or services; and interruption related to the importing or exporting of production materials or sold products. Commercial Real Estate and Multi-Family Residential - Borrowers may be subject to potential adverse market conditions that cause a decrease in market value or lease rates; the potential for environmental impairment from events occurring on subject or neighboring properties; and obsolescence in location or function. Multi-Family Residential is also subject to adverse market conditions associated with a change in governmental or personal funding sources for tenants; over supply of units in a specific region; a shift in population; and reputational risks. Construction and Land Development risks include slower absorption than anticipated on speculative projects; deterioration in market conditions that may impact a project's value; unforeseen costs not considered in the original construction budget; or any other factors that may impact the completion or success of the project. Agri-business and Agricultural - Borrowers may be subject to adverse market or weather conditions including changes in local or foreign demand; lower yields than anticipated; political or other impact on storage, distribution or use; foreign trade policies including tariffs; and exposure to increasing commodity prices which result in higher production, distribution or exporting costs. Other Commercial - Borrowers may be subject to an interruption in the flow of funds to states and other political subdivisions for the purpose of debt repayments on loans held by the Bank. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Consumer 1-4 Family Mortgage - Borrowers may be subject to adverse employment conditions in the local economy leading to increased default rates; decreased market values from oversupply in a geographic area; and impact to the borrowers' ability to maintain payments in the event of incremental rate increases on adjustable rate mortgages. Other Consumer - Borrowers may be subject to adverse employment conditions in the local economy which may lead to higher default rates; and decreases in the value of underlying collateral. A loan is individually analyzed for specific allocation when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Allocations are analyzed individually or in total for smaller-balance loans of similar nature such as all classes of consumer 1-4 family and other consumer loans, and individually for all classes of commercial and industrial, commercial real estate and multi-family, agribusiness and agricultural and other commercial loans. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. Factors considered by management in determining individual evaluation include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as individually evaluated. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is individually evaluated, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral less anticipated costs to sell. All classes of commercial and industrial, commercial real estate and multifamily residential, agribusiness and agricultural, other commercial, consumer 1-4 family mortgage loans and other consumer loans that become delinquent beyond 90 days are analyzed and a charge-off is taken when it is determined that the underlying collateral, if any, is not sufficient to offset the indebtedness. Loans, for which the terms have been modified for borrowers experiencing financial difficulties and a concession has been granted that could materially change the Company's expected future cash flows, are classified as individually evaluated and may be either accruing or non-accruing. Modifications to borrowers experiencing financial difficulties on nonaccrual status follow the same policy as described above for other loans. Individual evaluation for modifications to borrowers experiencing financial difficulty is measured at the present value of estimated future cash flows using the loan’s effective rate at inception or at discounted collateral value for collateral dependent loans. Due to the imprecise nature of estimating the allowance for credit losses, the Company's allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company's judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income. For off balance sheet credit exposures outlined in the ASC at 326-20-30-11, it is the Company's position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded. Investments in Limited Partnerships: The Company enters into and invests in limited partnerships in order to invest in affordable housing projects to support Community Reinvestment Act activities and secondarily to obtain available tax benefits. The Company also invests in Small Business Investment Company Program funds. The Company is a limited partner in these investments and, as such, the Company is not involved in the management or operation of such investments. These investments are accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the partnership’s earnings or losses in its income statement and adjusts the carrying amount of the investments on the consolidated balance sheet. These investments are evaluated for impairment when events indicate the carrying amount may not be recoverable. The investments recorded at December 31, 2022 and 2021 were $12.2 million and $9.4 million, respectively and are included with other assets in the consolidated balance sheet. The Company also has a commitment to fund an additional $3.9 million at December 31, 2022 in six of the limited partnerships compared to $2.2 million in five of the limited partnerships at December 31, 2021, which is included with other liabilities in the consolidated balance sheet. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Foreclosed Assets: Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs incurred after acquisition are expensed. At December 31, 2022 and 2021, the balance of other real estate owned was $100,000 and $196,000, respectively, and is included with other assets on the consolidated balance sheet. Land, Premises and Equipment, Net: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the useful lives of the assets. Premises and improvements assets have useful lives between 5 and 40 years. Equipment and furniture assets have useful lives between 3 and 7 years. Loan Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in mortgage banking income. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The amortization of servicing rights is netted against mortgage banking income. Servicing fees were $1.2 million for the years ended 2022, 2021 and 2020. Late fees and ancillary fees related to loan servicing are not material. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as loan type, term and interest rate. Any impairment of a grouping is reported as a valuation allowance, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in the valuation allowance are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The carrying value of mortgage servicing rights, which is included with other assets in the consolidated balance sheet, was $2.7 million and $2.4 million as of December 31, 2022 and 2021, respectively. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $364.3 million and $375.4 million at December 31, 2022 and 2021, respectively. Custodial escrow balances maintained in connection with serviced loans were $1.7 million at year end 2022 and 2021. Servicing fee income (loss), which is included in loan and service fees on the income statement, is recorded for fees earned for servicing loans. Fees earned for servicing loans are based on a contractual percentage of the outstanding principal amount of the loan and are recorded as income when earned. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Mortgage Banking Derivatives: Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in fair values of these derivatives are included in mortgage banking income. Interest Rate Swap Derivatives: The Company offers a derivative product to certain creditworthy commercial banking customers. This product allows the commercial banking customers to enter into an agreement with the Company to swap a variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the borrower’s interest rate exposure. The extension of credit incurred in connection with these derivative products is subject to the same approval and underwriting standards as traditional credit products. The Company limits its risk exposure by simultaneously entering into a similar, offsetting swap agreement with a separate, well-capitalized and highly rated counterparty previously approved by the Company’s Asset Liability Committee. By using these interest rate swap arrangements, the Company is also better insulated from the interest rate risk associated with underwriting fixed-rate loans and is better able to meet customer demand for fixed rate loans. These derivative contracts are not designated against specific assets or liabilities and, therefore, do not qualify for hedge accounting. The derivatives are recorded as assets and liabilities on the balance sheet at fair value with changes in fair value recorded in non-interest income for both the commercial banking customer swaps and the related offsetting swaps. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820), resulting in some potential volatility in earnings each period. The notional amount of the combined interest rate swaps with customers and counterparties at December 31, 2022 and 2021 was $760.5 million and $796.0 million, respectively. The fair value of the interest rate swap asset was $36.9 million and $14.3 million and the fair value of the interest rate swap liability was $36.9 million and $14.3 million at December 31, 2022 and 2021, respectively. The Company was a party in risk participation transactions of interest rate swaps. There were no total notional swaps at December 31, 2022 compared to $4.6 million at December 31, 2021. Bank Owned Life Insurance: At December 31, 2022 and 2021, the Company owned $102.5 million and $91.1 million, respectively, of life insurance policies on certain officers to provide a life insurance benefit for these officers. At December 31, 2022 and 2021, the Company also owned $5.9 million and $6.6 million, respectively, of variable life insurance on certain officers related to a deferred compensation plan. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, i.e., the cash surrender value adjusted for other changes or other amounts due that are probable at settlement. Goodwill and Other Intangible Assets: All goodwill on the Company’s consolidated balance sheet resulted from business combinations prior to January 1, 2009 and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is not amortized, but assessed at least annually for impairment and any such impairment would be recognized in the period identified. FHLB and Federal Reserve Bank Stock: FHLB and Federal Reserve Bank stock are carried at cost in other assets, classified as a restricted security and are periodically evaluated for impairment based on ultimate recoverability of par value. Both cash and stock dividends are reported as income. Long-term Assets: Premises and equipment, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. There was no such impairment identified for the years ended December 31, 2022, 2021 and 2020. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Benefit Plans: The Company has a noncontributory defined benefit pension plan, which covered substantially all employees until the plan was frozen effective April 1, 2000. Funding of the plan equals or exceeds the minimum funding requirement determined by the actuary. Pension expense is the net of interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Benefits are based on years of service and compensation levels. The Company maintains a 401(k) profit sharing plan for all employees meeting certain age and service requirements. The Company contributions are based upon the percentage of budgeted net income earned during the year. An employee deferred compensation plan is available to certain employees with returns based on investments in mutual funds. The Company maintains a directors’ deferred compensation plan. Effective January 1, 2003, the directors’ deferred compensation plan was amended to restrict the deferral to be in stock only and deferred directors’ fees are included in equity. The Company acquires shares on the open market and records such shares as treasury stock. Revenue Recognition: All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following is a description of principal activities from which we generate revenue. Revenues are recognized as the Company satisfies its obligations with our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. Wealth advisory fees The Company provides wealth advisory services to its customers and earns fees from its contracts with trust customers to manage assets for investment and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted monthly, quarterly, or annual services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed. Other related services, such as escrow accounts that are based on a fixed schedule, are recognized when the services are rendered. Investment brokerage services The Company provides investment brokerage services through a full service brokerage and investment and advisory firm, Cetera Investment Services LLC (“Cetera”). The Company receives commissions from Cetera on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are generally paid by the 5th business day of the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the Cetera and (ii) does not control the services to the customers, investment brokerage service fees are presented net of Cetera’s related costs. Service charges on deposit accounts The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s balance. Interchange income The Company provides the ability to transact on certain deposit accounts through the use of debit cards by outsourcing the services through third party service providers. Performance obligations are met on a transactional basis and income is recognized monthly based on transaction type and volume. Under the accounting standards in effect in the prior period, revenue was previously recognized net of the third party’s costs. Under ASC 606, fees from interchange income related to its customers use of debit cards will be reported gross in loan and service fees under noninterest income. The cost of using third party providers for these interchange services are reported in data processing fees and supplies under noninterest expense. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Gain on sale of other real estate owned ("OREO") financed by seller On occasion, the Company underwrites a loan to purchase property owned by the Company. Under ASC 606, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Debit card incentive rebates The Company receives incentive rebates based on debit card transaction volume. Performance obligations are met on a transactional basis and income is recognized monthly based on transaction volume. Under ASC 606, these rebates related to debit card transaction volume are reported as a contra expense in data processing fees and supplies under noninterest expense. Stock Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant adjusted for the present value of expected dividends is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Certain of the restricted stock awards are performance based, as more fully discussed in Note 14 – Stock Based Compensation. Income Taxes: Annual consolidated federal and state income tax returns are filed by the Company. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Income tax expense is recorded based on the amount of taxes due on its tax return plus net deferred taxes computed based upon the expected future tax consequences of temporary differences between carrying amounts and tax basis of assets and liabilities, using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is more likely of being realized on examination than not. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Off-Balance Sheet Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The fair value of standby letters of credit is recorded as a liability during the commitment period. Earnings Per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, restricted stock awards and warrants. Earnings and dividends per share are restated for all stock splits and dividends through the date of issue of the financial statements. The common shares included in treasury stock for 2022 and 2021 were 475,902 and 476,816 shares, respectively. Common stock that has been purchased under the directors’ deferred compensation plan, described above, is included in the treasury stock total and represented 186,801 and 187,715 shares of treasury stock as of December 31, 2022 and 2021, respectively. Because these shares are held in trust for the participants, NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) they are treated as outstanding when computing the weighted-average common shares outstanding for the calculation of both basic and diluted earnings per share. During the year ended December 31, 2020, the Company repurchased 289,101 of its common shares at a weighted average price of $34.63 per share. Treasury stock is carried at cost. Comprehensive Income (Loss): Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, reclassification adjustments for securities transferred to held-to-maturity, reclassification adjustments for gains on the sale of available-for-sale securities and changes in the funded status of the pension plan, which are also recognized as separate components of equity. 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. The Bank discovered potentially fraudulent activity by a former treasury management client involving multiple banks. The former client subsequently filed several related bankruptcy cases, captioned In re Interlogic Outsourcing, Inc., et al., which are pending in the United States Bankruptcy Court for the Western District of Michigan. On April 27, 2021, the bankruptcy court entered an order approving an amended plan of liquidation, which was filed by the former client, other debtors and bankruptcy plan proponents, and approving the consolidation of the assets in the aforementioned cases under the Khan IOI Consolidated Estate Trust. On August 9, 2021, the liquidating trustee for the bankruptcy estates filed a complaint against the Bank and the Company, and agreed to stay prosecution of the action through August 31, 2022. The original complaint focused on a series of business transactions among the client, related entities and the Bank, which the liquidating trustee alleged are voidable under applicable federal bankruptcy and state law. The complaint also addressed treatment of the Bank's claims filed in the bankruptcy cases. On August 31, 2022, the trustee filed his amended complaint against the former client, the Bank, the Company, four officers of the Bank and one independent director of the Bank. The amended complaint alleges that the former client engaged in a check kiting scheme involving multiple banks. The amended complaint alleges that a series of business transactions among the client, his related entities and the Bank are voidable under applicable bankruptcy and state laws. The amended complaint also alleges that the Bank, the Company and the five individual bank representatives who are named as defendants violated various federal and state laws in assisting the former client in his check kiting scheme. On October 26, 2022, the trustee filed his second amended complaint which was virtually identical to his amended complaint. On January 5, 2023, the Bank, the Company and the five individual bank representatives filed motions to dismiss the second amended complaint. The motions are being briefed and will then be considered by the court. Based on current information, we have determined that a material loss is neither probable nor estimable at this time, and the Bank, the Company and the five individual Bank representatives who are named as defendants intend to vigorously defend themselves against all allegations asserted in this amended complaint. Restrictions on Cash: The Federal Reserve Bank eliminated the reserve requirement for all depository institutions in March of 2020. Therefore, the Company was not required to have cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at December 31, 2022 and 2021. Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to its stockholders. These restrictions currently pose no practical limit on the ability of the Bank or Company to pay dividends at historical levels. Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 5 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Operating Segments: The Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. All of the Company’s financial service operations are similar and considered by management to be aggregated into one reportable operating segment. While the Company has assigned certain management responsibilities by region and business-line, the Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. The majority of the Company’s revenue is from the business of banking and the Company’s assigned regions have similar economic characteristics, products, services and customers. Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment. Newly Issued Accounting Standards: On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to a planned adoption of reference rates which could include Secured Overnight Financing Rate ("SOFR"), amongst others. The Company has identified certain loans that renewed prior to 2021 and obtained updated reference rate language at the time of the renewal. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company's policy is to adhere to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. The Company is working to transition LIBOR-based loans to an alternative reference rate before June 30, 2023. On December 22, 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848", which definitively provided a sunset date of December 31, 2024 for the relief guidance allowed under Topic 848. The ASU was effective immediately upon issuance. The Company adopted the LIBOR transition relief allowed under this standard, and does not expect final adoption to have a material impact on the consolidated financial statements. On March 28, 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (ASC 815): Fair Value Hedging - Portfolio Layer Method." ASC 815 currently permits only prepayable financial assets and one or more beneficial interests secured by a portfolio of prepayable financial instruments to be included in a last-of-layer closed portfolio. The amendment in this update allows nonrepayable financial assets to also be included in a closed portfolio hedged using the portfolio layer method. That expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. On March 31, 2022, the FASB issued ASU 2022-02, "Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures." The guidance amends ASC 326 to eliminate the accounting guidance for TDR's by creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying TDR recognition and measurement guidance, creditors will determine whether a modification results in a new loan or continuation of an existing loan. These amendments are intended to enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, the amendments to ASC 326 require that an entity disclose current-period gross write-offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and and class of financing receivable by year of origination. The guidance is only for entities that have adopted the amendments in update 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption using prospective application, including adoption in an interim period where the guidance should be applied as of the beginning of the fiscal year, is permitted. The Company elected to early adopt the provisions of the ASU related to modifications made to borrowers experiencing financial difficulty during the second quarter of 2022, with retrospective application to January 1, 2022. Adoption of this portion of the standard did not have a material impact on the consolidated financial statements. The Company is currently assessing the impact of the vintage disclosure provisions of ASU 2022-02 on its disclosures; however, the Company does not expect the adoption of this portion of the standard to have a material impact on the consolidated financial statements. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Newly Proposed Accounting Standards On August 22, 2022, the FASB released a proposed ASU, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)." The amendments in this proposed update would permit reporting entities to account for their tax equity investments, regardless of the program from which the tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). A reporting entity would make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than to apply the proportional amortization method at the reporting entity level or to individual investments. The proposal would require specific disclosures for all tax equity investments in a program to which an entity has elected to apply the proportional amortization method. The proposed amendments call for application on a modified prospective or a retrospective basis. The proposed ASU includes an effective date for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2023. The Company plans to assess the impact of the proposed amendments on the consolidated financial statements once the final ASU is issued. On October 6, 2022, the FASB released a proposed ASU, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments in this proposed update would improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis. Significant expense categories and amounts subject to disclosure would be derived from expenses that are (1) regularly reported to an entity's chief operating decision-maker (CODM) and (2) included in a segment's reported measure of profit or loss. Public entities would also be required to disclose an amount for other segment items by reportable segment and a description of composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. The amendment would also require all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 to be disclosed for interim periods. Additionally, the proposed amendments would also require the disclosure of the name and title of the CODM. The proposed amendments call for retrospective application. The proposed ASU does not yet include an effective date. The Company plans to assess the impact of the proposed amendments on the consolidated financial statements once the final ASU is issued. Reclassifications: Certain amounts appearing in the financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders’ equity as previously reported.

SECURITIES

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

SECURITIES

Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other investment securities are classified as available-for-sale securities.

Available-for-Sale Securities

Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31, 2022 and 2021 is provided in the tables on the next page.

NOTE 2 – SECURITIES (continued)


(dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
2022
U.S. Treasury securities	$	3,057	$	0	$	(23)	$	0	$	3,034
U.S. government sponsored agencies	156,184		0		(29,223)		0		126,961
Mortgage-backed securities: residential	578,175		67		(85,934)		0		492,308
Mortgage-backed securities: commercial	0		0		0		0		0
State and municipal securities	663,367		157		(100,299)		0		563,225
Total	$	1,400,783	$	224	$	(215,479)	$	0	$	1,185,528

2021
U.S. Treasury securities	$	900	$	0	$	0	$	0	$	900
U.S. government sponsored agencies	145,858		39		(2,445)		0		143,452
Mortgage-backed securities: residential	487,157		4,455		(4,936)		0		486,676
Mortgage-backed securities: commercial	522		1		0		0		523
State and municipal securities	742,532		25,749		(1,274)		0		767,007
Total	$	1,376,969	$	30,244	$	(8,655)	$	0	$	1,398,558

Held-to-Maturity Securities

Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross gains and unrealized gains and losses at December 31, 2022 is presented in the table below.


(dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
2022
State and municipal securities	$	128,242	$	0	$	(17,213)	$	0	$	111,029

On April 1, 2022, the Company elected to transfer securities from available-for-sale to held-to-maturity as an overall balance sheet management strategy. The fair value of securities transferred was $127.0 million from available-for-sale to held-to-maturity. The unrealized loss on the securities transferred from available-for-sale to held-to-maturity was $24.4 million ($19.3 million, net of tax) based on the fair value of the securities on the transfer date and was $22.9 million ($18.1 million, net of tax) at December 31, 2022. The Company has the current intent and ability to hold the transferred securities until maturity. Any net unrealized gain or loss on the transferred securities included in accumulated other comprehensive income (loss) at the time of the transfer will be amortized over the remaining life of the underlying security as an adjustment to the yield on those securities. There were no securities transferred from available-for-sale to held-to-maturity during the year ended December 31, 2021 and there were no securities classified as held-to-maturity at December 31, 2021.

Information regarding the fair value and amortized cost of available-for-sale and held-to-maturity debt securities by maturity as of December 31, 2022 is presented on the next page. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without prepayment penalty.

NOTE 2 – SECURITIES (continued)


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,073	$	3,059	$	0	$	0
Due after one year through five years	6,443		6,431		0		0
Due after five years through ten years	57,481		55,437		0		0
Due after ten years	755,611		628,293		128,242		111,029
	822,608		693,220		128,242		111,029
Mortgage-backed securities	578,175		492,308		0		0
Total debt securities	$	1,400,783	$	1,185,528	$	128,242	$	111,029

Security proceeds, gross gains and gross losses for 2022, 2021 and 2020 were as follows:


(dollars in thousands)	2022		2021		2020
Sales of securities available-for-sale
Proceeds	$	25,332	$	13,964	$	8,018
Gross gains	140		797		433
Gross losses	(119)		0		0
Number of securities	30		9		17

In accordance with ASU No. 2017-8, purchase premiums for callable securities are amortized to the earliest call date and premiums on non-callable securities as well as discounts are recognized in interest income using the interest method over the terms of the securities or over the estimated lives of mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date.

Securities with fair values of $298.2 million and $300.8 million were pledged as of December 31, 2022 and 2021, respectively, as collateral for borrowings from the FHLB and Federal Reserve Bank and for other purposes as permitted or required by law.

Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities

Information regarding available-for-sale securities securities with unrealized losses as of December 31, 2022 and 2021 is presented below. The tables distribute the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.


	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2022
U.S. Treasury securities	$	3,034	$	23	$	0	$	0	$	3,034	$	23
U.S. government sponsored agencies	8,420		1,350		118,541		27,873		126,961		29,223
Mortgage-backed securities: residential	165,897		18,637		323,727		67,297		489,624		85,934

State and municipal securities	277,967		33,405		244,436		66,894		522,403		100,299
Total temporarily impaired	$	455,318	$	53,415	$	686,704	$	162,064	$	1,142,022	$	215,479

2021
U.S. government sponsored agencies	$	85,968	$	1,364	$	28,676	$	1,081	$	114,644	$	2,445
Mortgage-backed securities: residential	272,264		4,076		22,792		860		295,056		4,936

State and municipal securities	138,659		1,274		0		0		138,659		1,274
Total temporarily impaired	$	496,891	$	6,714	$	51,468	$	1,941	$	548,359	$	8,655

NOTE 2 – SECURITIES (continued)

Information regarding held-to-maturity securities with unrealized losses as of December 31, 2022 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more. No investment securities were designated as held-to-maturity at December 31, 2021.


	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2022
State and municipal securities	$	0	$	0	$	111,029	$	17,213	$	111,029	$	17,213

The number of securities with unrealized losses as of December 31, 2022 and 2021 is presented below.


	Available-for-Sale			Held-to-Maturity
	Less than 12 months	12 months or more	Total	Less than 12 months	12 months or more	Total
2022
U.S. Treasury securities	7	0	7	0	0	0
U.S. government sponsored agencies	1	16	17	0	0	0
Mortgage-backed securities: residential	95	41	136	0	0	0

State and municipal securities	269	223	492	0	41	41
Total temporarily impaired	372	280	652	0	41	41

2021
U.S. government sponsored agencies	8	5	13	0	0	0
Mortgage-backed securities: residential	29	3	32	0	0	0

State and municipal securities	80	0	80	0	0	0
Total temporarily impaired	117	8	125	0	0	0

Available-for-sale and held-to-maturity debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement. For available-for sale debt securities that do not meet the criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, management compares 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, limited to the amount that the fair value of the security is less than its amortized cost basis. For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.

No allowance for credit losses for available-for-sale securities was recorded at December 31, 2022 or 2021. No allowance for credit losses for held-to-maturity debt securities was recorded at December 31, 2022. Accrued interest receivable on available-for-sale and held-to-maturity debt securities totaled $8.9 million and $7.4 million at December 31, 2022 and 2021, respectively, and is excluded from the estimate of credit losses.

Ninety-nine percent of the securities are backed by the U.S. government, government agencies, government sponsored agencies or are rated above investment grade with a long history of no credit losses, except for certain non-local or local municipal securities, which are not rated.

Prior to the adoption of ASC 326, there was no other-than-tempoarary impairment ("OTTI") recorded during the year ended December 31, 2020.

LOANS

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

LOANS

– LOANS

Total loans outstanding as of the years ended December 31, 2022 and 2021 consisted of the following:


(dollars in thousands)	2022		2021
Commercial and industrial loans:
Working capital lines of credit loans	$	650,948	$	652,861
Non-working capital loans	842,101		736,608
Total commercial and industrial loans	1,493,049		1,389,469

Commercial real estate and multi-family residential loans:
Construction and land development loans	517,664		379,813
Owner occupied loans	758,091		739,371
Nonowner occupied loans	706,107		588,458
Multi-family loans	197,232		247,204
Total commercial real estate and multi-family residential loans	2,179,094		1,954,846

Agri-business and agricultural loans:
Loans secured by farmland	201,200		206,331
Loans for agricultural production	230,888		239,494
Total agri-business and agricultural loans	432,088		445,825

Other commercial loans	113,593		73,490
Total commercial loans	4,217,824		3,863,630

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	212,742		176,561
Open end and junior lien loans	175,575		156,238
Residential construction and land development loans	19,249		11,921
Total consumer 1-4 family mortgage loans	407,566		344,720

Other consumer loans	88,075		82,755
Total consumer loans	495,641		427,475
Gross loans	4,713,465		4,291,105
Less: Allowance for credit losses	(72,606)		(67,773)
Net deferred loan fees	(3,069)		(3,264)
Loans, net	$	4,637,790	$	4,220,068

The recorded investment in loans does not include accrued interest, which totaled $18.4 million and $10.0 million at December 31, 2022 and 2021, respectively.

The Company had $306,000 and $350,000 in residential real estate loans in process of foreclosure as of December 31, 2022 and 2021, respectively.

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

12 Months Ended

Dec. 31, 2022

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

The Company adopted ASC 326 using the modified retrospective for all financial assets measured at amortized cost. Results for reporting periods after January 1, 2021 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP.

The following table presents the activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2022 and 2021:


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multi-family Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
2022
Beginning balance	$	30,595	$	26,535	$	5,034	$	1,146	$	2,866	$	1,147	$	450	$	67,773
Provision for credit losses	8,646		1,179		(605)		(229)		125		155		104		9,375
Loans charged-off	(4,022)		(597)		0		0		(42)		(473)		0		(5,134)
Recoveries	71		277		0		0		52		192		0		592
Net loans (charged-off) recovered	(3,951)		(320)		0		0		10		(281)		0		(4,542)
Ending balance	$	35,290	$	27,394	$	4,429	$	917	$	3,001	$	1,021	$	554	$	72,606


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multi-family Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
2021
Beginning balance	$	28,333	$	22,907	$	3,043	$	416	$	2,619	$	951	$	3,139	$	61,408
Impact of adopting ASC 326	4,312		4,316		1,060		941		953		349		(2,881)		9,050
Provision for credit losses	1,966		(632)		611		(211)		(777)		(72)		192		1,077
Loans charged-off	(5,575)		(70)		0		0		(51)		(287)		0		(5,983)
Recoveries	1,559		14		320		0		122		206		0		2,221
Net loans (charged-off) recovered	(4,016)		(56)		320		0		71		(81)		0		(3,762)
Ending balance	$	30,595	$	26,535	$	5,034	$	1,146	$	2,866	$	1,147	$	450	$	67,773

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000.

The Company uses the following definitions for 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 or of the institution’s credit position 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 as the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

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

Loans are considered to be "Pass" rated when they are reviewed as part of the previously described process and do not meet the criteria above with the exception of consumer troubled debt restructurings, which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with “Not Rated” loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status.

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

The following tables summarize the risk category of loans by loan segment and origination date as of December 31, 2022 and 2021. Balances presented are at the amortized cost basis by origination year.


(dollars in thousands)	2022		2021		2020		2019		2018		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	2,207	$	2,718	$	1,601	$	0	$	0	$	0	$	6,526	$	597,108	$	603,634
Special Mention	0		0		0		0		0		0		0		36,410		36,410
Substandard	200		0		0		300		0		0		500		10,495		10,995


Total	2,407		2,718		1,601		300		0		0		7,026		644,013		651,039
Non-working capital loans:
Pass	272,273		124,600		91,850		47,711		9,981		13,670		560,085		240,490		800,575
Special Mention	448		1,620		0		109		159		2,961		5,297		2,153		7,450
Substandard	11,831		872		5,021		194		1,351		3,979		23,248		4,171		27,419

Not Rated	2,891		1,550		1,254		413		120		23		6,251		0		6,251
Total	287,443		128,642		98,125		48,427		11,611		20,633		594,881		246,814		841,695
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	26,889		19,944		14,026		356		0		0		61,215		453,953		515,168




Total	26,889		19,944		14,026		356		0		0		61,215		453,953		515,168
Owner occupied loans:
Pass	113,656		179,014		139,880		97,353		65,519		97,335		692,757		40,533		733,290
Special Mention	2,960		7,608		0		446		1,491		8,054		20,559		0		20,559
Substandard	308		105		1,491		373		1,161		229		3,667		0		3,667


Total	116,924		186,727		141,371		98,172		68,171		105,618		716,983		40,533		757,516
Nonowner occupied loans:
Pass	194,294		125,190		134,661		91,907		15,109		64,874		626,035		68,603		694,638
Special Mention	0		11,024		0		0		0		0		11,024		0		11,024



Total	194,294		136,214		134,661		91,907		15,109		64,874		637,059		68,603		705,662
Multi-family loans:
Pass	38,460		25,741		36,929		35,695		2,046		28,866		167,737		7,349		175,086
Special Mention	21,855		0		0		0		0		0		21,855		0		21,855



Total	60,315		25,741		36,929		35,695		2,046		28,866		189,592		7,349		196,941
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	38,344		28,684		29,741		9,656		8,145		19,638		134,208		63,094		197,302
Special Mention	260		0		1,676		1,780		0		15		3,731		0		3,731
Substandard	0		0		0		0		0		145		145		0		145


Total	38,604		28,684		31,417		11,436		8,145		19,798		138,084		63,094		201,178
Loans for agricultural production:
Pass	6,040		30,262		22,167		3,625		9,248		4,539		75,881		143,599		219,480
Special Mention	947		243		7,262		928		0		0		9,380		2,129		11,509



Total	6,987		30,505		29,429		4,553		9,248		4,539		85,261		145,728		230,989
Other commercial loans:
Pass	27,097		4,815		17,911		147		931		10,985		61,886		48,295		110,181
Special Mention	0		0		0		0		0		3,160		3,160		0		3,160



Total	27,097		4,815		17,911		147		931		14,145		65,046		48,295		113,341
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans
Pass	8,768		12,809		12,289		4,805		4,045		3,860		46,576		5,634		52,210
Special Mention	0		0		552		0		0		0		552		0		552
Substandard	0		0		0		0		83		1,944		2,027		0		2,027

Not Rated	57,404		44,331		20,023		5,936		2,970		27,004		157,668		0		157,668
Total	66,172		57,140		32,864		10,741		7,098		32,808		206,823		5,634		212,457
Open end and junior lien loans
Pass	137		541		357		63		75		0		1,173		5,841		7,014

Substandard	0		0		0		31		49		0		80		111		191

Not Rated	44,472		13,597		3,014		3,616		1,476		2,252		68,427		101,750		170,177
Total	44,609		14,138		3,371		3,710		1,600		2,252		69,680		107,702		177,382
Residential construction loans




Not Rated	14,463		2,167		897		291		129		1,223		19,170		0		19,170
Total	14,463		2,167		897		291		129		1,223		19,170		0		19,170
Other consumer loans
Pass	1,344		1,841		432		600		0		948		5,165		16,152		21,317

Substandard	0		0		0		210		0		0		210		0		210

Not Rated	24,395		14,563		9,168		3,606		2,755		1,352		55,839		10,492		66,331
Total	25,739		16,404		9,600		4,416		2,755		2,300		61,214		26,644		87,858

TOTAL	$	911,943	$	653,839	$	552,202	$	310,151	$	126,843	$	297,056	$	2,852,034	$	1,858,362	$	4,710,396

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)


(dollars in thousands)	2021		2020		2019		2018		2017		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	3,699	$	830	$	3,360	$	0	$	0	$	0	$	7,889	$	558,634	$	566,523
Special Mention	0		0		0		0		0		0		0		60,441		60,441
Substandard	0		0		35		0		0		0		35		25,928		25,963


Total	3,699		830		3,395		0		0		0		7,924		645,003		652,927
Non-working capital loans:
Pass	185,374		139,157		79,477		38,899		19,415		18,489		480,811		203,794		684,605
Special Mention	17,728		0		225		979		2,350		1,426		22,708		0		22,708
Substandard	2,996		6,948		1,091		2,534		5,465		426		19,460		3,321		22,781

Not Rated	2,265		1,758		837		563		128		14		5,565		0		5,565
Total	208,363		147,863		81,630		42,975		27,358		20,355		528,544		207,115		735,659
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	35,136		30,224		1,276		998		0		0		67,634		310,396		378,030




Total	35,136		30,224		1,276		998		0		0		67,634		310,396		378,030
Owner occupied loans:
Pass	135,861		169,404		124,117		85,070		78,155		93,925		686,532		29,611		716,143
Special Mention	6,555		0		880		933		7,387		1,235		16,990		0		16,990
Substandard	489		1,570		909		1,758		694		238		5,658		0		5,658


Total	142,905		170,974		125,906		87,761		86,236		95,398		709,180		29,611		738,791
Nonowner occupied loans:
Pass	146,342		154,433		107,262		19,054		31,023		59,154		517,268		44,362		561,630
Special Mention	11,825		331		0		0		0		14,253		26,409		0		26,409



Total	158,167		154,764		107,262		19,054		31,023		73,407		543,677		44,362		588,039
Multi-family loans:
Pass	84,678		53,195		36,575		12,286		14,574		9,793		211,101		13,434		224,535
Special Mention	0		0		0		0		22,252		0		22,252		0		22,252



Total	84,678		53,195		36,575		12,286		36,826		9,793		233,353		13,434		246,787
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	47,532		37,035		16,249		10,469		10,454		17,021		138,760		61,774		200,534
Special Mention	0		1,985		2,303		0		180		30		4,498		918		5,416
Substandard	207		0		0		0		0		145		352		0		352


Total	47,739		39,020		18,552		10,469		10,634		17,196		143,610		62,692		206,302
Loans for agricultural production:
Pass	36,238		25,855		4,224		11,072		1,331		4,178		82,898		138,142		221,040
Special Mention	448		8,642		1,171		0		0		0		10,261		8,272		18,533



Total	36,686		34,497		5,395		11,072		1,331		4,178		93,159		146,414		239,573
Other commercial loans:
Pass	6,556		21,111		3,243		1,273		8,592		7,460		48,235		21,145		69,380
Special Mention	0		0		0		0		0		3,798		3,798		0		3,798



Total	6,556		21,111		3,243		1,273		8,592		11,258		52,033		21,145		73,178
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans
Pass	14,635		16,173		5,312		5,903		3,049		3,221		48,293		5,005		53,298

Substandard	0		0		0		0		0		1,274		1,274		0		1,274

Not Rated	45,089		27,738		9,248		5,217		7,628		26,321		121,241		482		121,723
Total	59,724		43,911		14,560		11,120		10,677		30,816		170,808		5,487		176,295
Open end and junior lien loans
Pass	679		379		159		313		0		0		1,530		5,074		6,604

Substandard	0		0		0		0		0		0		0		98		98

Not Rated	21,945		5,624		5,987		3,899		1,653		1,526		40,634		110,523		151,157
Total	22,624		6,003		6,146		4,212		1,653		1,526		42,164		115,695		157,859
Residential construction loans




Not Rated	7,926		1,537		960		138		171		1,125		11,857		0		11,857
Total	7,926		1,537		960		138		171		1,125		11,857		0		11,857
Other consumer loans
Pass	3,401		957		1,523		0		1,155		0		7,036		12,998		20,034

Substandard	36		23		230		0		0		0		289		0		289

Not Rated	21,652		14,931		7,474		5,844		1,890		1,203		52,994		9,227		62,221
Total	25,089		15,911		9,227		5,844		3,045		1,203		60,319		22,225		82,544

TOTAL	$	839,292	$	719,840	$	414,127	$	207,202	$	217,546	$	266,255	$	2,664,262	$	1,623,579	$	4,287,841

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

As of December 31, 2022 and 2021, $1.5 million and $26.2 million, respectively, in PPP loans were included in the "Pass" category of non-working capital commercial and industrial loans. These loans were included in this risk rating category because they are fully guaranteed by the Small Business Administration ("SBA").

Nonaccrual and Past Due Loans:

For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and the payments are reasonably assured.

The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2022 and 2021 by class of loans and loans past due 90 days or more and still accruing by class of loan:


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
2022
Commercial and industrial loans:
Working capital lines of credit loans	$	649,529	$	68	$	0	$	649,597	$	1,442	$	0	$	651,039
Non-working capital loans	830,033		39		1		830,073		11,622		727		841,695
Commercial real estate and multi-family residential loans:
Construction and land development loans	515,168		0		0		515,168		0		0		515,168
Owner occupied loans	754,451		0		0		754,451		3,065		1,469		757,516
Nonowner occupied loans	705,662		0		0		705,662		0		0		705,662
Multi-family loans	196,941		0		0		196,941		0		0		196,941
Agri-business and agricultural loans:
Loans secured by farmland	201,033		0		0		201,033		145		0		201,178
Loans for agricultural production	230,989		0		0		230,989		0		0		230,989
Other commercial loans	113,341		0		0		113,341		0		0		113,341
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	211,736		306		122		212,164		293		225		212,457
Open end and junior lien loans	176,758		436		0		177,194		188		188		177,382
Residential construction loans	19,170		0		0		19,170		0		0		19,170
Other consumer loans	87,333		316		0		87,649		209		6		87,858
Total	$	4,692,144	$	1,165	$	123	$	4,693,432	$	16,964	$	2,615	$	4,710,396

As of December 31, 2022, there were an insignificant number of loans 30-89 days past due or greater than 89 days past due on nonaccrual. Additionally, interest income recognized on nonaccrual loans was insignificant during the year ended December 31, 2022.

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
2021
Commercial and industrial loans:
Working capital lines of credit loans	$	652,903	$	24	$	0	$	646,961	$	5,966	$	5,200	$	652,927
Non-working capital loans	735,658		1		0		731,063		4,596		229		735,659
Commercial real estate and multi-family residential loans:
Construction and land development loans	378,030		0		0		378,030		0		0		378,030
Owner occupied loans	738,791		0		0		735,157		3,634		2,129		738,791
Nonowner occupied loans	588,039		0		0		588,039		0		0		588,039
Multi-family loans	246,787		0		0		246,787		0		0		246,787
Agri-business and agricultural loans:
Loans secured by farmland	206,302		0		0		205,967		335		0		206,302
Loans for agricultural production	239,573		0		0		239,573		0		0		239,573
Other commercial loans	73,178		0		0		73,178		0		0		73,178
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	175,678		500		117		176,240		55		55		176,295
Open end and junior lien loans	157,729		130		0		157,761		98		98		157,859
Residential construction loans	11,857		0		0		11,857		0		0		11,857
Other consumer loans	82,472		72		0		82,255		289		0		82,544
Total	$	4,286,997	$	727	$	117	$	4,272,868	$	14,973	$	7,711	$	4,287,841

As of December 31, 2021, there were an insignificant number of loans 30-89 days past due or greater than 89 days past due on nonaccrual. Additionally, interest income recognized on nonaccrual loans was insignificant during the year ended December 31, 2021.

When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant year over year changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value.

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

The following tables present the amortized cost basis of collateral dependent loans by class of loan as of December 31, 2022 and 2021:


(dollars in thousands)	Real Estate		General Business Assets		Other		Total
2022
Commercial and industrial loans:
Working capital lines of credit loans	$	50	$	5,402	$	0	$	5,452
Non-working capital loans	544		18,109		229		18,882
Commercial real estate and multi-family residential loans:
Owner occupied loans	413		1,491		1,161		3,065
Nonowner occupied loans	0		0		0		0
Agri-business and agricultural loans:
Loans secured by farmland	0		145		0		145
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,030		0		0		2,030
Open end and junior lien loans	188		0		0		188
Other consumer loans	0		0		7		7
Total	$	3,225	$	25,147	$	1,397	$	29,769


(dollars in thousands)	Real Estate		General Business Assets		Other		Total
2021
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	5,966	$	0	$	5,966
Non-working capital loans	1,606		9,475		229		11,310
Commercial real estate and multi-family residential loans:
Owner occupied loans	1,435		1,505		1,161		4,101
Nonowner occupied loans	0		0		0		0
Agri-business and agricultural loans:
Loans secured by farmland	190		145		0		335
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	3,081		0		0		3,081
Open end and junior lien loans	98		0		0		98
Other consumer loans	0		0		59		59
Total	$	6,410	$	17,091	$	1,449	$	24,950

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

Modifications Made to Borrowers Experiencing Financial Difficulty

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification.

Occasionally, the Company modifies loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, the Company may allow a borrower to to make interest only payments for a specified period of time.

During the year ended December 31, 2022, no loans received a material modification based on borrower financial difficulty.

Troubled Debt Restructurings (Prior to January 1, 2022):

Prior to the partial adoption of ASU 2022-02 on January 1, 2022, which had an immaterial impact on the Company's allowance for credit losses, troubled debt restructured loans were included in the total for individually analyzed loans. The following are disclosures related to troubled debt restructured loans in prior periods.

Troubled debt restructured loans are included in the totals for individually analyzed loans. The Company has allocated $5.8 million of specific allocations to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2021. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.


(dollars in thousands)	December 31, 2021
Accruing troubled debt restructured loans	$	5,121
Nonaccrual troubled debt restructured loans	6,218
Total troubled debt restructured loans	$	11,339

During the year ending December 31, 2021, certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal payment for some period; terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal.

Additional concessions were granted to borrowers during 2021 with previously identified troubled debt restructured loans. There were 8 loans with recorded investments totaling $2.2 million where collateral values or cash flows were insufficient to support the loans. These troubled debt restructured loans with additional concessions decreased the allowance by $423,000 and resulted in no charge-offs for the year ending December 31, 2021. These concessions are not included in the table on the next page.

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2021:


						Modified Repayment Terms
(dollars in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Extension Period or Range (in months)
Troubled Debt Restructurings
Consumer 1-4 family loans:
Closed end first mortgage loans	2	$	217	$	217	2	172-204
Total	2	$	217	$	217	2	172-204

For the period ending December 31, 2021, the troubled debt restructurings described above had no impact to the allowance and no charge-offs were recorded.

As of December 31, 2021, one retail loan in the amount of $11,000 had a COVID-19 related deferral. In accordance with Section 4013 of the CARES Act, this deferral was not considered to be a troubled debt restructuring. This provision was effective until its expiration on January 1, 2022 under the Consolidated Appropriations Act, 2021.

During the year ended December 31, 2020, certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal repayment for some period; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal.

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2020:


						Modified Repayment Terms
(dollars in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Extension Period or Range (in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Working capital lines of credit loans	1	$	250	$	315	1	0
Non-working capital lines of credit loans	2	4,288		3,691		2	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	1	1,528		1,527		1	0
Total	4	$	6,066	$	5,533	4	0

For the period ending December 31, 2020, the troubled debt restructurings described above had no impact to the allowance and no charge-offs were recorded.

As of December 31, 2020, total deferrals attributed to COVID-19 were $100.7 million representing 49 borrowers. This represented 2.2% of the total loan portfolio. Of that 22 were commercial loan borrowers representing $98.2 million in loans, or 2.3% of commercial loans, and 27 were retail loan borrowers representing $2.5 million, or 0.7% of total retail loans. The majority of all loan deferrals were for a period of 90 days. Of the total commercial deferrals attributed to COVID-19, $11.9 million represented a first deferral action, $22.8 million represented a second deferral action, $41.9 million represented a third deferral action and $24.1 million represented a fourth deferral action. Two borrowers represented 90% of the fourth deferral population and were commercial real estate nonowner occupied loans supported by adequate collateral and personal guarantors and consist of loans to the hotel and accommodation industry. All COVID-19 related loan deferrals were on accrual status, as each deferral was individually analyzed, and management determined that all contractual cashflows were collectable at that

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

time. In accordance with Section 4013 of the CARES Act, these were not considered to be troubled debt restructurings and were excluded from the table above.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the period ending December 31, 2021 and 2020.

Allowance for Loan Losses (Prior to January 1, 2021)

Prior to the adoption of ASC 326 on January 1, 2021 the Company calculated the allowance for loan losses using the incurred losses methodology. The following tables are disclosures related to the allowance for loan losses in prior periods.

The following tables present the activity and balance in the allowance for loan losses by portfolio segment for the year ended December 31, 2020. PPP loans are fully guaranteed by the SBA and have not been allocated for within the allowance for loan losses.


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multi-family Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Beginning balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652
Provision for loan losses	6,640		6,868		(826)		(31)		341		959		819		14,770
Loans charged-off	(4,524)		(72)		0		0		(141)		(516)		0		(5,253)
Recoveries	428		315		0		0		333		163		0		1,239
Net loans (charged-off) recovered	(4,096)		243		0		0		192		(353)		0		(4,014)
Ending balance	$	28,333	$	22,907	$	3,043	$	416	$	2,619	$	951	$	3,139	$	61,408

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2020:


(dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	375	$	0	$	0
Non-working capital loans	816		21		21
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,156		13		12
Agri-business and agricultural loans:
Loans secured by farmland	283		0		0
Loans for agricultural production	4		0		0
Consumer 1-4 family loans:
Closed end first mortgage loans	291		3		2
Open end and junior lien loans	49		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	2,433		0		0
Non-working capital loans	11,579		287		287
Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans	3,156		30		30
Agri-business and agricultural loans:
Loans secured by farmland	147		0		0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,557		36		33
Open end and junior lien loans	481		0		0
Residential construction loans	35		0		0
Other consumer loans	0		0		0
Total	$	23,362	$	390	$	385

Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

FAIR VALUE

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (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. There are three levels of inputs that may be used to measure fair values:

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

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

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

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Securities: Securities available-for-sale are valued primarily by a third party pricing service. The fair values of securities available-for-sale are determined on a recurring basis by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or pricing models which utilize significant observable inputs such as matrix pricing. This is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). These models utilize the market approach with standard inputs that include, but are not limited to benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain municipal securities that are not rated and observable inputs about the specific issuer are not available, fair values are estimated using observable data from other municipal securities presumed to be similar or other market data on other non-rated municipal securities (Level 3 inputs).

The Company’s Finance Department, which is responsible for all accounting and SEC compliance, and the Company’s Treasury Department, which is responsible for investment portfolio management and asset/liability modeling, are the two areas that determine the Company’s valuation policies and procedures. Both of these areas report directly to the Executive Vice President and Chief Financial Officer of the Company. For assets or liabilities that may be considered for Level 3 fair value measurement on a recurring basis, these two departments and the Executive Vice President and Chief Financial Officer determine the appropriate level of the assets or liabilities under consideration. If there are assets or liabilities that are determined to be Level 3 by this group, the Risk Management Committee of the Company and the Audit Committee of the board of directors (the “Board”) are made aware of such assets at their next scheduled meeting.

Securities pricing is obtained on securities from a third party pricing service and all security prices are tested annually against prices from another third party provider and reviewed with a market value price tolerance variance that varies by sector: municipal securities +/- 5%, government agency/MBS/CMO +/-3% and U.S. treasuries +/-1%. If any securities fall outside the tolerance threshold and have a variance of $100,000 or more, a determination of materiality is made for the amount over the threshold. Any security that would have a material threshold difference would be further investigated to determine why the variance exists and if any action is needed concerning the security pricing for that individual security. Changes in market value are reviewed monthly in aggregate by security type and any material differences are reviewed to determine why they exist. At least annually, the pricing methodology of the pricing service is received and reviewed to support the fair value levels used by the Company. A detailed pricing evaluation is requested and reviewed on any security determined to be fair valued using unobservable inputs by the pricing service.

Mortgage banking derivative: The fair values of mortgage banking derivatives are based on observable market data as of the measurement date (Level 2).

Interest rate swap derivatives: Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing

NOTE 5 – FAIR VALUE (continued)

services. The fair value of interest rate swap derivatives is determined by pricing or valuation models using observable market data as of the measurement date (Level 2).

Collateral dependent loans: Collateral dependent loans with specific allocations of the allowance for credit losses generally based on the fair value of the underlying collateral when repayment is expected solely from the collateral. Fair value is determined using several methods. Generally, the fair value of real estate is based on appraisals by qualified third party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and result in a Level 3 classification of the inputs for determining fair value. In addition, the Company’s management routinely applies internal discount factors to the value of appraisals used in the fair value evaluation of collateral dependent loans. The deductions to the appraisals take into account changing business factors and market conditions, as well as value impairment in cases where the appraisal date predates a likely change in market conditions. Commercial real estate is generally discounted from its appraised value by 30-50% with the higher discounts applied to real estate that is determined to have a thin trading market or to be specialized collateral. In addition to real estate, the Company’s management evaluates other types of collateral as follows: (a) raw materials inventory is discounted from its cost or book value by 40%-60%, depending on the marketability of the goods (b) finished goods are generally discounted by 40%-60%, depending on the ease of marketability, cost of transportation or scope of use of the finished good (c) work in process inventory is typically discounted by 60%-100%, depending on the length of manufacturing time, types of components used in the completion process, and the breadth of the user base (d) equipment is valued at a percentage of depreciated book value or recent appraised value, if available, and is typically discounted at 20%-50% after various considerations including age and condition of the equipment, marketability, breadth of use, and whether the equipment includes unique components or add-ons; and (e) marketable securities are discounted by 10%-30%, depending on the type of investment, age of valuation report and general market conditions. This methodology is based on a market approach and typically results in a Level 3 classification of the inputs for determining fair value.

Mortgage servicing rights: As of December 31, 2022, the fair value of the Company’s Level 3 servicing assets for residential mortgage loans (“MSRs”) was $2.7 million, carried at amortized cost and no valuation reserve. These residential mortgage loans have a weighted average interest rate of 3.5%, a weighted average maturity of 21 years and are secured by homes generally within the Company’s market area of Northern Indiana and Indianapolis. A valuation model is used to estimate fair value by stratifying the portfolios on the basis of certain risk characteristics, including loan type and interest rate. Impairment is estimated based on an income approach. The inputs used include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, ancillary income, late fees, and float income. The most significant assumption used to value MSRs is prepayment rate. Prepayment rates are estimated based on published industry consensus prepayment rates. The most significant unobservable assumption is the discount rate. At December 31, 2022, the constant prepayment speed (“PSA”) used was 159 and discount rate used was 9.5%. At December 31, 2021, the PSA used was 249 and the discount rate used was 9.5%.

Other real estate owned: Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned are measured at the lower of carrying amount or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are reviewed by the Company’s internal appraisal officer. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable properties used to determine value. Such adjustments are usually significant and result in a Level 3 classification. In addition, the Company’s management may apply discount factors to the appraisals to take into account changing business factors and market conditions, as well as value impairment in cases where the appraisal date predates a likely change in market conditions. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized.

Real estate mortgage loans held-for-sale: Real estate mortgage loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments, from third party investors, and result in a Level 2 classification.

NOTE 5 – FAIR VALUE (continued)

The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021:


	2022
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
U.S. Treasury securities	$	3,034	$	0	$	0	$	3,034
U.S. government sponsored agency securities	0		126,961		0		126,961
Mortgage-backed securities: residential	0		492,308		0		492,308

State and municipal securities	0		561,150		2,075		563,225
Total Available-for-Sale Securities	3,034		1,180,419		2,075		1,185,528
Mortgage banking derivative	0		43		0		43
Interest rate swap derivative	0		36,920		0		36,920
Total assets	$	3,034	$	1,217,382	$	2,075	$	1,222,491

Liabilities:

Interest rate swap derivative	$	0	$	36,921	$	0	$	36,921
Total liabilities	$	0	$	36,921	$	0	$	36,921


	2021
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
U.S. Treasury securities	$	900	$	0	$	0	$	900
U.S. government sponsored agency securities	0		143,452		0		143,452
Mortgage-backed securities: residential	0		486,676		0		486,676
Mortgage-backed securities: commercial	0		523		0		523
State and municipal securities	0		764,964		2,043		767,007
Total Available-for-Sale Securities	900		1,395,615		2,043		1,398,558
Mortgage banking derivative	0		398		0		398
Interest rate swap derivative	0		14,309		0		14,309
Total assets	$	900	$	1,410,322	$	2,043	$	1,413,265

Liabilities:
Mortgage banking derivative	$	0	$	2	$	0	$	2
Interest rate swap derivative	0		14,329		0		14,329
Total liabilities	$	0	$	14,331	$	0	$	14,331

The fair value of Level 3 available-for-sale securities was immaterial to warrant additional recurring fair value disclosures as of December 31, 2022 and 2021.

NOTE 5 – FAIR VALUE (continued)

The tables below present the amount of assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021:


	2022
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Collateral dependent loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	3,178	$	3,178
Non-working capital loans	0		0		8,354		8,354
Commercial real estate and multi-family residential loans:
Owner occupied loans	0		0		425		425
Agri-business and agricultural loans:
Loans secured by farmland	0		0		35		35




Total collateral dependent loans	$	0	$	0	$	11,992	$	11,992
Other real estate owned	0		0		100		100
Total assets	$	0	$	0	$	12,092	$	12,092


	2021
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Collateral dependent loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	247	$	247
Non-working capital loans	0		0		5,095		5,095
Commercial real estate and multi-family residential loans:

Owner occupied loans	0		0		791		791
Agri-business and agricultural loans:
Loans secured by farmland	0		0		231		231




Total collateral dependent loans	$	0	$	0	$	6,364	$	6,364
Other real estate owned	0		0		196		196
Total assets	$	0	$	0	$	6,560	$	6,560

NOTE 5 – FAIR VALUE (continued)

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2022:

(dollars in thousands)

Fair Value

Valuation Methodology

Unobservable Inputs

Average

Range of Inputs

Collateral dependent loans:

Commercial and industrial

11,532

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

62%

29%-99%

Collateral dependent loans:

Commercial real estate and multi-family residential

425

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

57%

37%-76%

Collateral dependent loans:

Agri-business and agricultural

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

76%

Other real estate owned

100

Appraisals

Discount to reflect current market conditions and ultimate collectability

68%

NOTE 5 – FAIR VALUE (continued)

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2021:

(dollars in thousands)

Fair Value

Valuation Methodology

Unobservable Inputs

Average

Range of Inputs

Collateral dependent loans:

Commercial and industrial

5,342

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

65%

22%-99%

Collateral dependent loans:

Commercial real estate

791

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

51%

34%-68%

Collateral dependent loans:

Agri-business and agricultural

231

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

35%

3% - 68%

Other real estate owned

196

Appraisals

Discount to reflect current market conditions and ultimate collectability

38%

NOTE 5 – FAIR VALUE (continued)

The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2022 and 2021. Items which are not financial instruments are not included.


	2022
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	130,282	$	129,069	$	1,213	$	0	$	130,282
Securities available-for-sale	1,185,528		3,034		1,180,419		2,075		1,185,528
Securities held-to-maturity	128,242		0		111,029		0		111,029
Real estate mortgages held-for-sale	357		0		372		0		372
Loans, net	4,637,790		0		0		4,454,678		4,454,678
Mortgage banking derivative	43		0		43		0		43
Interest rate swap derivative	36,920		0		36,920		0		36,920
Federal Reserve and Federal Home Loan Bank Stock	15,795		N/A		N/A		N/A		N/A
Accrued interest receivable	27,994		0		9,598		18,396		27,994
Financial Liabilities:
Certificates of deposit	626,186		0		621,206		0		621,206
All other deposits	4,834,434		4,834,434		0		0		4,834,434
Federal Funds purchased	22,000		22,000		0		0		22,000
Federal Home Loan Bank advances	275,000		275,000		0		0		275,000

Interest rate swap derivative	36,921		0		36,921		0		36,921
Standby letters of credit	249		0		0		249		249
Accrued interest payable	3,186		486		2,700		0		3,186

NOTE 5 – FAIR VALUE (continued)


	2021
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	683,240	$	681,286	$	1,954	$	0	$	683,240
Securities available-for-sale	1,398,558		900		1,395,615		2,043		1,398,558
Real estate mortgages held-for-sale	7,470		0		7,634		0		7,634
Loans, net	4,220,068		0		0		4,144,000		4,144,000
Mortgage banking derivative	398		0		398		0		398
Interest rate swap derivative	14,309		0		14,309		0		14,309
Federal Reserve and Federal Home Loan Bank Stock	13,772		N/A		N/A		N/A		N/A
Accrued interest receivable	17,674		0		7,689		9,985		17,674
Financial Liabilities:
Certificates of deposit	829,518		0		833,617		0		833,617
All other deposits	4,905,889		4,905,889		0		0		4,905,889

Federal Home Loan Bank advances	75,000		0		66,118		0		66,118
Mortgage banking derivative	2		0		2		0		2
Interest rate swap derivative	14,329		0		14,329		0		14,329
Standby letters of credit	272		0		0		272		272
Accrued interest payable	2,619		84		2,535		0		2,619

LAND, PREMISES AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

LAND, PREMISES AND EQUIPMENT, NET

Land, premises and equipment and related accumulated depreciation were as follows at December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Land	$	12,472	$	12,472
Premises and improvements	61,185		58,716
Equipment and furniture	37,460		39,278
Total cost	111,117		110,466
Less accumulated depreciation	53,020		51,157
Land, premises and equipment, net	$	58,097	$	59,309

The Company had no land, premises and equipment held for sale and included in other assets as of December 31, 2022 and 2021.

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill There have been no changes in the $5.0 million carrying amount of goodwill since 2002. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2022, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. The Company’s annual impairment analysis was performed as of May 31, 2022. Circumstances did not substantially change during the second half of the year such that the Company believed it was necessary to perform an additional impairment analysis.

DEPOSITS

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

DEPOSITS

The following table details total deposits as of December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Non-interest bearing demand deposits	$	1,736,761	$	1,895,481
Savings and transaction accounts:
Savings deposits	403,773		409,343
Interest bearing demand deposits	2,693,900		2,601,065
Time deposits:
Other time deposits	170,759		202,395
Deposits of $100,000 to $250,000	185,194		227,606
Deposits of $250,000 or more	270,233		399,517
Total deposits	$	5,460,620	$	5,735,407

NOTE 8 – DEPOSITS (continued)

At December 31, 2022, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Maturing in 2023	$	379,460
Maturing in 2024	206,081
Maturing in 2025	15,132
Maturing in 2026	12,583
Maturing in 2027	12,546
Thereafter	384
Total time deposits	$	626,186

During 2022 and 2021 the Bank entered into agreements with IntraFi Network relative to their Insured Cash Sweep One-Way Buy program. As of December 31, 2022 and 2021 the total amount available to the Bank via this program was $100.0 million, of which, $10.0 million was drawn.

BORROWINGS

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

BORROWINGS

The following table details outstanding advances with the Federal Home Loan Bank ("FHLB") of Indianapolis for the years ended December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
FHLB of Indianapolis Bullet Advance, 4.21%, Due January 5, 2023	$	275,000	$	0
FHLB of Indianapolis Putable Advance, 0.39%, Due March 4, 2030, Called June 6, 2022	0		75,000
Total FHLB advances	$	275,000	75,000

The advance outstanding at December 31, 2022 was a fixed-rate bullet advance and could not be prepaid by the Company without a penalty. The note required payment at maturity and was secured by residential real estate loans and securities with a carrying value of $549.0 million at December 31, 2022.

The advance outstanding at December 31, 2021 was a ten-year fixed-rate putable advance and could not be prepaid by the Company without penalty. The FHLB exercised the putable option on the advance during the second quarter of 2022 and the advance was repaid by the Company. The note was secured by residential real estate loans and securities with a carrying value of $478.4 million at December 31, 2021.

At December 31, 2022 and 2021, the Company owned $12.4 million and $10.4 million, respectively, of FHLB stock which also secures debts owed to the FHLB. The Company is authorized by the Board to borrow up to $800.0 million at the FHLB, but availability is limited to $66.5 million based on collateral and outstanding borrowings. Federal Reserve Discount Window borrowings were secured by commercial loans and investment securities with a carrying value of $928.6 million and $804.4 million as of December 31, 2022 and 2021. The Company had a borrowing capacity of $758.3 million and $616.5 million at the Federal Reserve Bank as of December 31, 2022 and 2021, respectively. There were no borrowings outstanding at the Federal Reserve Bank at December 31, 2022 and 2021.

The Company had $350.0 million of availability in federal funds lines with eleven correspondent banks as of December 31, 2022 and 2021; $22.0 million and $0 were drawn upon as of December 31, 2022 and 2021, respectively. The Bank is also a member of the American Financial Exchange (AFX) where overnight fed funds purchased can be obtained from other banks on the Exchange that have approved the Bank for an unsecured, overnight line. These funds are only available if the approving banks have an ‘offer’ out to sell that day. The total amount approved for the Bank via AFX banks was $319.0 million at December 31, 2022 and 2021. There were no amounts drawn as of December 31, 2022 and 2021.

NOTE 9 – BORROWINGS (continued)

On August 2, 2019 the Company entered into an unsecured revolving credit agreement with another financial institution allowing the Company to borrow up to $30.0 million; this credit agreement was subsequently amended and renewed on July 30, 2022. Funds provided under the agreement may be used to repurchase shares of the Company’s common stock under the share repurchase program, which was reauthorized by the Company’s board of directors on April 13, 2021 and expires on April 30, 2023, and for general operations. The credit agreement includes a negative pledge agreement whereby the Company agrees not to pledge or otherwise encumber the stock of the Bank. The credit agreement has a one year term which may be amended, extended, modified or renewed. There were no outstanding borrowings on the credit agreement at December 31, 2022 and 2021, respectively.

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

PENSION AND OTHER POSTRETIREMENT PLANS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT PLANS

In April 2000, the Lakeland Financial Corporation Pension Plan was frozen. The Company also maintains a Supplemental Executive Retirement Plan (“SERP”) for select officers that was established as a funded, non-qualified deferred compensation plan. Currently, six retired officers are the only participants in the SERP. The measurement date for both the pension plan and SERP is December 31, 2022 and 2021.

Information as to the Company’s employee benefit plans at December 31, 2022 and 2021 is as follows:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2022		2021		2022		2021
Change in benefit obligation:
Beginning benefit obligation	$	2,298	$	2,710	$	867	$	968
Interest cost	53		52		20		18
Actuarial (gain) loss	(611)		(153)		(52)		13
Benefits paid	(194)		(311)		(135)		(132)
Ending benefit obligation	1,546		2,298		700		867

Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets	2,303		2,349		848		879
Actual return	(289)		265		(107)		101
Employer contribution	0		0		0		0
Benefits paid	(194)		(311)		(135)		(132)
Ending plan assets	1,820		2,303		606		848
Funded status at end of year	$	274	$	5	$	(94)	$	(19)

Amounts recognized in the consolidated balance sheets consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2022		2021		2022		2021
Funded status included in other liabilities	$	274	$	5	$	(94)	$	(19)

Amounts recognized in accumulated other comprehensive income consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2022		2021		2022		2021
Net actuarial loss	$	538	$	852	$	487	$	431

The accumulated benefit obligation for the pension plan was $1.5 million and $2.3 million for December 31, 2022 and 2021, respectively. The accumulated benefit obligation for the SERP was $700,000 and $867,000 for December 31, 2022 and 2021, respectively.

NOTE 10 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

Net period benefit cost and other amounts recognized in other comprehensive income (loss) include the following:


	Pension Benefits						SERP Benefits
(dollars in thousands)	2022		2021		2020		2022		2021		2020
Net pension expense:
Service cost	$	0	$	0	$	0	$	0	$	0	$	0
Interest cost	53		52		75		20		18		27
Expected return on plan assets	(130)		(133)		(140)		(45)		(47)		(51)
Recognized net actuarial (gain) loss	99		160		171		45		82		80
Settlement cost	23		65		115		0		0		0
Net pension expense	$	45	$	144	$	221	$	20	$	53	$	56

Net (gain) loss	$	(215)	$	(350)	$	69	$	100	$	(40)	$	36
Amortization of net loss	(99)		(160)		(171)		(45)		(82)		(80)
Total recognized in other comprehensive income (loss)	(314)		(510)		(102)		55		(122)		(44)
Total recognized in net pension expense and other comprehensive income (loss)	$	(269)	$	(366)	$	119	$	75	$	(69)	$	12

The estimated net loss (gain) for the defined benefit pension plan and SERP that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is ($31,000) for the pension plan and $37,000 for the SERP. The settlement costs in 2022, 2021 and 2020 were related to participants taking lump sum distributions from the pension plan during those years.

For 2022, 2021 and 2020, the assumed form of payment elected by active participants upon retirement was a lump sum to reflect participant trends. The lump sum assumed interest rates, below, for December 31, 2022, 2021 and 2020 reflect the mortality table in effect for 2022, 2021 and 2020, respectively. For 2022, the mortality assumption was the PRI-2012 White Collar Mortality Table, with full generational Projection Scale MP-2021 as of December 31, 2022. For 2021, the mortality assumption was changed to the PRI-2012 White Collar Mortality Table, with full generational Projection Scale MP-2021 as of December 31, 2021, to reflect improved mortality expectations. For 2020, the mortality assumption was the PRI-2012 White Collar Mortality Table, with full generational Projection Scale MP-2020 as of December 31, 2020.

NOTE 10 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)


	Pension Benefits						SERP Benefits
	2022		2021		2020		2022		2021		2020
The following assumptions were used in calculating the net benefit obligation:

Weighted average discount rate	5.03	%	2.49	%	2.08	%	5.03	%	2.49	%	2.08	%
Rate of increase in future compensation	N/A		N/A		N/A		N/A		N/A		N/A
Lump sum assumed interest rates First 5 years	5.10	%	0.87	%	0.53	%	N/A		N/A		N/A
Next 15 years	5.83	%	2.74	%	2.31	%	N/A		N/A		N/A
All future years	5.68	%	3.16	%	3.09	%	N/A		N/A		N/A

The following assumptions were used in calculating the net pension expense:

Weighted average discount rate	2.49	%	2.08	%	2.98	%	2.49	%	2.08	%	2.98	%
Rate of increase in future compensation	N/A		N/A		N/A		N/A		N/A		N/A
Expected long-term rate of return	6.50	%	6.50	%	6.50	%	6.50	%	6.50	%	6.50	%

Pension Plan and SERP Assets

The Company’s investment strategies are to invest in a prudent manner for the purpose of providing benefits to participants in the pension plan and the SERP. The investment strategies are targeted to maximize the total return of the portfolio net of inflation, spending and expenses. Risk is controlled through diversification of asset types and investments in domestic and international equities and fixed income securities. The target allocations for plan assets are shown in the tables below. Equity securities primarily include investments in common stocks. Debt securities include government agency and commercial bonds. Other investments consist of money market mutual funds.

The weighted average expected long-term rate of return on pension plan and SERP assets is developed in consultation with the plans actuary. It is primarily based upon industry trends and consensus rates of return which are then adjusted to reflect the specific asset allocations and historical rates of return of the Company’s plan assets. The following assumptions were used in determining the total long-term rate of return: equity securities were assumed to have a long-term rate of return of approximately 8.85% and debt securities were assumed to have a long-term rate of return of approximately 3.00%. These rates of return were adjusted to reflect an approximate target allocation of 60% equity securities and 40% debt securities with a small downward adjustment due to investments in the “Other” category, which consist of low yielding money market mutual funds.

Certain asset types and investment strategies are prohibited including, the investment in commodities, options, futures, short sales, margin transactions and non-marketable securities.

NOTE 10 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

The Company’s pension plan asset allocation at year end 2022 and 2021, target allocation for 2023, and expected long-term rate of return by asset category are as follows:


	Target Allocation				Percentage of Plan Assets at Year End				Weighted Average Expected Long-Term Rate of Return
Asset Category	2023				2022		2021
Equity securities	55	-	65	%	60	%	61	%	8.85	%
Debt securities	35	-	45	%	39	%	37	%	3.00	%
Other	5	-	10	%	1	%	2	%	0.10	%
Total					100	%	100	%	6.50	%

The Company’s SERP plan asset allocation at year end 2022 and 2021, target allocation for 2023, and expected long-term rate of return by asset category are as follows:


	Target Allocation				Percentage of Plan Assets at Year End				Weighted Average Expected Long-Term Rate of Return
Asset Category	2023				2022		2021
Equity securities	55	-	65	%	62	%	59	%	8.85	%
Debt securities	35	-	45	%	35	%	36	%	3.00	%
Other	5	-	10	%	3	%	5	%	0.10	%
Total					100	%	100	%	6.50	%

Fair Value of Pension Plan and SERP Assets

Fair value is the exchange price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. Also, a fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Equity and debt securities: The fair values of securities are determined on a recurring basis by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or pricing models, which utilize significant observable inputs such as matrix pricing. This is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

NOTE 10 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

The fair values of the Company’s pension plan assets at December 31, 2022, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	718	$	718	$	0	$	0
Equity securities - US mid cap stock mutual funds	43		43		0		0
Equity securities - US small cap stock mutual funds	131		131		0		0
Equity securities - international stock mutual funds	158		158		0		0
Equity securities - emerging markets stock mutual funds	34		34		0		0
Debt securities - intermediate term bond mutual funds	232		232		0		0
Debt securities - short term bond mutual funds	484		484		0		0
Cash - money market account	20		20		0		0
Total	$	1,820	$	1,820	$	0	$	0

The fair values of the Company’s pension plan assets at December 31, 2021, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	923	$	923	$	0	$	0
Equity securities - US mid cap stock mutual funds	104		104		0		0
Equity securities - US small cap stock mutual funds	106		106		0		0
Equity securities - international stock mutual funds	193		193		0		0
Equity securities - emerging markets stock mutual funds	73		73		0		0
Debt securities - intermediate term bond mutual funds	273		273		0		0
Debt securities - short term bond mutual funds	572		572		0		0
Cash - money market account	59		59		0		0
Total	$	2,303	$	2,303	$	0	$	0

There were no Level 2 or 3 securities during either year.

NOTE 10 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

The fair values of the Company’s SERP assets at December 31, 2022, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	249	$	249	$	0	$	0
Equity securities - US mid cap stock mutual funds	16		16		0		0
Equity securities - US small cap stock mutual funds	43		43		0		0
Equity securities - emerging markets stock mutual funds	12		12		0		0
Equity securities - international stock mutual funds	57		57		0		0
Debt securities - intermediate term bond mutual funds	63		63		0		0
Debt securities - short term bond mutual funds	149		149		0		0
Cash - money market account	17		17		0		0
Total	$	606	$	606	$	0	$	0

The fair values of the Company’s SERP assets at December 31, 2021, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	327	$	327	$	0	$	0
Equity securities - US mid cap stock mutual funds	38		38		0		0
Equity securities - US small cap stock mutual funds	38		38		0		0
Equity securities - emerging markets stock mutual funds	27		27		0		0
Equity securities - international stock mutual funds	71		71		0		0
Debt securities - intermediate term bond mutual funds	85		85		0		0
Debt securities - short term bond mutual funds	222		222		0		0
Cash - money market account	40		40		0		0
Total	$	848	$	848	$	0	$	0

Total SERP plan assets available for benefits also include $1,000 in accrued interest and dividend income.

There were no Level 2 or 3 securities during either year.

Contributions

The Company did not contribute to its pension or SERP plans in 2022.

NOTE 10 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

Estimated Future Benefit Payments

The following benefit payments are expected to be paid over the next ten years:


Plan Year	Pension Benefits		SERP Benefits
(dollars in thousands)
2023	$	198	$	130
2024	168		122
2025	177		112
2026	218		101
2027	141		90
2028-2032	544		262

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

OTHER BENEFIT PLANS	12 Months Ended
OTHER BENEFIT PLANS	Dec. 31, 2022
OTHER BENEFIT PLANS
OTHER BENEFIT PLANS	OTHER BENEFIT PLANS 401(k) Plan The Company maintains a 401(k) profit sharing plan for all employees meeting certain age and service requirements. The 401(k) plan allows employee contributions up to the maximum amount allowable under the Internal Revenue Code, which are matched based upon the percentage of budgeted net income earned during the year on the first 6% of the compensation contributed. The expense recognized from matching was $2.4 million, $2.3 million and $1.9 million in 2022, 2021 and 2020, respectively. Deferred Compensation Plan Effective January 1, 2004, the Company adopted the Lake City Bank Deferred Compensation Plan. The purpose of the deferred compensation plan is to extend full 401(k) type retirement benefits to certain individuals without regard to statutory limitations under tax qualified plans. A liability is accrued by the Company for its obligation under this plan. The expense recognized was ($1.0 million), $1.2 million and $1.0 million during the years ended December 31, 2022, 2021 and 2020, respectively. This resulted in a deferred compensation liability of $6.1 million and $7.0 million as of year end 2022 and 2021, respectively. The deferred compensation plan is funded solely by participant contributions and does not receive a Company match. Employee Agreements Under employment agreements with certain executives, certain events leading to separation from the Company could result in cash payments totaling $5.4 million as of December 31, 2022. On December 31, 2022, no amounts were accrued on these contingent obligations. Directors’ Deferred Compensation and Cash Plans The Company maintains a directors’ deferred compensation plan and a cash plan. The amount owed to directors for fees under the deferred directors’ compensation and cash plans as of December 31, 2022 and 2021 was $5.6 million and $5.2 million, respectively. The related expense for the deferred directors’ compensation and cash plans for the years ended December 31, 2022, 2021 and 2020 was $458,000, $482,000 and $505,000, respectively.

INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

Income tax expense for the years ended December 31, 2022, 2021 and 2020 consisted of the following:


(dollars in thousands)	2022		2021		2020
Current federal	$	22,825	$	21,329	$	20,032
Deferred federal	(2,327)		(1,249)		(1,688)

Current state	1,297		1,892		1,484
Deferred state	(448)		(261)		(289)
Total income tax expense	$	21,347	$	21,711	$	19,539

The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes were as follows:


(dollars in thousands)	2022		2021		2020
Income taxes at statutory federal rate of 21%	$	26,284	$	24,663	$	21,814
Increase (decrease) in taxes resulting from:
Tax exempt income	(4,438)		(2,822)		(1,925)
Nondeductible expense	159		116		117
State income tax, net of federal tax effect	671		1,288		944
Captive insurance premium income	(417)		(303)		(227)
Tax credits	(586)		(578)		(540)
Bank owned life insurance	(78)		(596)		(595)
Long-term incentive plan and deferred compensation	(530)		(274)		(58)
Nondeductible compensation expense	181		156		0
Other	101		61		9
Total income tax expense	$	21,347	$	21,711	$	19,539

NOTE 12 – INCOME TAXES (continued)

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2022 and 2021 consisted of the following:


(dollars in thousands)	2022		2021
Deferred tax assets:
Bad debts	$	18,561	$	17,321
Pension and deferred compensation liability	2,272		2,351
Nonaccrual loan interest	256		600
Long-term incentive plan	2,894		1,896
Lease liability	1,354		1,078
Deferred loan fees	572		771
Accrued legal reserve	819		0
Other	1,130		191
	27,858		24,208
Deferred tax liabilities:
Depreciation	4,257		4,279
Loan servicing rights	694		717
State taxes	786		679
Intangible assets	1,270		1,270
REIT spillover dividend	1,290		1,180
Prepaid expenses	988		952
Lease right of use	1,354		1,078
Other	585		194
	11,224		10,349
Valuation allowance	0		0
Net deferred tax asset	$	16,634	$	13,859

In addition to the net deferred tax assets included above, the deferred income tax asset (liability) allocated to the unrealized net gain (loss) on securities available-for-sale included in equity was $50.0 million and ($4.5 million) for 2022 and 2021, respectively. The deferred income tax asset allocated to the pension plan and SERP included in equity was $255,000 and $319,000 for 2022 and 2021, respectively.

The Company evaluated its deferred tax asset at year end 2022 and has concluded that it is more likely than not that it will be realized. The Company expects to have taxable income in the future such that the deferred tax asset will be realized. Therefore, no valuation allowance is required.

Unrecognized Tax Benefits

The Company did not have any unrecognized tax benefits at December 31, 2022 or 2021. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months.

No interest or penalties were recorded in the income statement and no amount was accrued for interest and penalties for the periods ending December 31, 2022, 2021 and 2020. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in its income taxes accounts.

The Company and its subsidiaries file a consolidated U.S. federal tax return and a combined unitary return in the States of Indiana and Michigan. These returns are subject to examinations by authorities for all years after 2018.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2022

RELATED PARTY TRANSACTIONS

Loans to principal officers, directors, and their affiliates as of December 31, 2022 and 2021 were as follows:


(dollars in thousands)	2022		2021
Beginning balance	$	99,865	$	104,694
New loans and advances	54,085		74,115
Effect of changes in related parties	(10,463)		(62)
Repayments and renewals	(30,052)		(78,882)
Ending balance	$	113,435	$	99,865

Deposits from principal officers, directors, and their affiliates at year end 2022 and 2021 were $16.2 million and $30.2 million, respectively.

The Company and Bank are an investor in certain funds managed by Centerfield Capital (“Centerfield”), a private equity investment firm. Faraz Abbasi, a director of the Company, is a Managing Partner and an owner of Centerfield. As of December 31, 2022 and 2021, the Company had an aggregate investment balance of approximately $2.3 million in such funds, which are included in other assets on the consolidated balance sheet, and had remaining commitments to invest up to approximately $2.8 million and $3.2 million, respectively. Under the terms of the applicable funds, Centerfield is entitled to customary management fees with respect to the amounts under management and investment gains, and it is estimated that Mr. Abbasi’s interest in such fees was less than $25,000 annually for the years ended December 31, 2022 and 2021.

STOCK BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

Effective April 8, 2008, the Company adopted the Lakeland Financial Corporation 2008 Equity Incentive Plan (the “2008 Plan”), which was approved by the Company’s stockholders. At its inception there were 1,125,000 shares of common stock reserved for grants of stock options, stock appreciation rights, stock awards and cash incentive awards to employees of the Company, its subsidiaries and Board. Effective April 9, 2013, the Company adopted the Lakeland Financial Corporation 2013 Equity Incentive Plan (the “2013 Plan”), which was also approved by the Company’s stockholders. At its inception the remaining shares of common stock available to grant under the 2008 Plan of 435,867 were transferred to the 2013 Plan and reserved for grants of stock options, stock appreciation rights, stock awards and cash incentive awards to employees of the Company, its subsidiaries and Board. Non-vested shares from the 2008 Plan that were unused at vesting were added to the shares available to grant of the 2013 Plan. Effective April 12, 2017, the Company adopted the Lakeland Financial Corporation 2017 Equity Incentive Plan (the “2017 Plan”), which was also approved by the Company’s stockholders and does not permit share recycling. At its inception there were 1,000,000 shares of common stock reserved for grants of stock options, stock appreciation rights, stock awards and cash incentive awards to employees of the Company, its subsidiaries and Board. As of December 31, 2022, 387,388 shares were available for future grants in the 2017 Plan, which is the only active plan. Certain stock awards provide for accelerated vesting if there is a change in control. The Company has a policy of issuing new shares to satisfy exercises of stock awards.

Included in net income for the years ended December 31, 2022, 2021 and 2020 was employee stock compensation expense of $7.8 million, $7.2 million and $1.8 million, and a related tax benefit of $2.0 million, $1.8 million and $0.5 million, respectively.

Stock Options

The equity incentive plan requires that the exercise price for options be the market price on the date the options are granted. The maximum option term is ten years and the awards usually vest over three years. The fair value of each stock option is estimated with the Black-Scholes pricing model, using the following weighted-average assumptions as of the grant date for stock options granted during the years presented. Expected volatilities are based on historical volatility of the Company’s stock over the immediately preceding expected life period, as well as other factors known on the grant date that would have a significant effect on the stock price during the expected life period. The expected stock option life used is the historical option life of the similar employee base or Board. The turnover rate is based on historical data of the similar employee base as a group

NOTE 14 – STOCK BASED COMPENSATION (continued)

and the Board as a group. The risk-free interest rate is the Treasury rate on the date of grant corresponding to the expected life period of the stock option.

There were no stock option grants or modifications in 2022, 2021 or 2020. As of December 31, 2022, there was no unrecognized compensation cost related to non-vested stock options granted under the plan.

There were no options exercised during the years ended December 31, 2022, 2021 or 2020.

Restricted Stock Awards and Units

The fair value of restricted stock awards and units is the closing price of the Company’s common stock on the date of grant adjusted for the present value of expected dividends. The restricted stock awards fully vest after one year or more of service, determined at the grant date, with the exception of 14,300 shares granted to non-employee directors of the Board included as vested, below, which vested on the grant date.

A summary of the changes in the Company’s non-vested shares for the year follows:


Nonvested Shares	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2022	1,500	$	44.10
Granted	37,957	76.02
Vested	(15,876)	72.84
Forfeited	(516)	76.33
Nonvested at December 31, 2022	23,065	$	76.13

As of December 31, 2022, there was $1.2 million unrecognized compensation cost related to non-vested shares granted under the plan. The cost is expected to be recognized over a weighted period of 2 years. The total fair value of shares vested during the years ended December 31, 2022, 2021 and 2020 was $1.2 million, $1.1 million and $0.7 million, respectively.

Performance Stock Units

The fair value of stock awards is the closing price of the Company’s common stock on the date of grant, adjusted for the present value of expected dividends. The expected dividend rate is assumed to be the most recent dividend rate declared by the Board on the grant date. The grant date fair value of stock awards is assumed at the target payout rate. The stock awards fully vest on the third anniversary of the grant date. The 2022-2024, 2021-2023 and 2020-2022 Long-Term Incentive Plans must be paid in stock and have performance conditions which include revenue growth, diluted earnings per share growth and average return on beginning equity. Shares granted below include the number of shares assumed granted based on actual performance criteria of the 2022-2024, 2021-2023 and 2020-2022 Long-Term Incentive Plans at December 31, 2022.


Nonvested Shares	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2022	271,770	$	49.83
Granted, net	92,713	72.80
Vested	(53,670)	43.44
Forfeited	(6,192)	57.45
Nonvested at December 31, 2022	304,621	$	57.79

As of December 31, 2022, there was $6.6 million of total unrecognized compensation cost related to non-vested shares granted under the plan. The cost is expected to be recognized over a weighted period of 2 years. The total fair value of shares vested during the year ended December 31, 2022, 2021 and 2020 was $4.3 million, $5.2 million and $5.7 million, respectively. During the years ended December 31, 2022, 2021 and 2020, 53,670, 83,216 and 120,204 shares vested, respectively.

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

12 Months Ended

Dec. 31, 2022

Capital Requirements and Restrictions On Retained Earnings [Abstract]

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

The Company became a financial holding company effective May 30, 2012 and is now required to be well capitalized under the applicable regulatory guidelines. The Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet certain heightened minimum capital requirements can initiate certain mandatory, and possibly discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors.

The capital adequacy requirements were heightened by the Basel III Rule, previously defined, which went into effect on January 1, 2015 with a phase-in period for certain aspects of the rule through 2019. Under the Basel III rule, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer was phased in from 0.00% for 2015 to 2.50% by 2019. The capital conservation buffer for 2022 and 2021 was 2.50%. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. The quantitative measures established by regulation to ensure capital adequacy that were in effect on December 31, 2022 and 2021, require the Company and the Bank to maintain minimum capital amounts and ratios (set forth in the following table) of Total, Tier I and Common Equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined in the regulation), and of Tier I capital (as defined in the regulation) to average assets (as defined). Management believes, as of the years ended December 31, 2022 and 2021, that the Company and the Bank met all capital adequacy requirements to which they are subject.

NOTE 15 – CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (continued)

As of December 31, 2022, the most recent notification from the federal regulators categorized the Company and the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum Total risk-based capital ratios, Tier I risk-based capital ratios and Tier I leverage capital ratios as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Company and the Bank’s category.


	Actual				Minimum Required For Capital Adequacy Purposes				For Capital Adequacy Purposes Plus Capital Conservation Buffer				Minimum "Required" to Be "Well" Capitalized Under "Prompt" Corrective Action Regulations
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2022
Total Capital (to Risk Weighted Assets)
Consolidated	$	821,008	15.07	%	$	435,786	8.00	%	$	571,969	N/A		N/A		N/A
Bank	$	801,044	14.74	%	$	434,758	8.00	%	$	570,620	10.50	%	$	543,448	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	752,751	13.82	%	$	326,840	6.00	%	$	463,023	N/A		N/A		N/A
Bank	$	732,966	13.49	%	$	326,069	6.00	%	$	461,930	8.50	%	$	434,758	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	752,751	13.82	%	$	245,130	4.50	%	$	381,313	N/A		N/A		N/A
Bank	$	732,966	13.49	%	$	244,551	4.50	%	$	380,413	7.00	%	$	353,241	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	752,751	11.50	%	$	261,859	4.00	%	$	261,859	N/A		N/A		N/A
Bank	$	732,966	11.22	%	$	261,222	4.00	%	$	261,222	4.00	%	$	326,527	5.00	%

As of December 31, 2021
Total Capital (to Risk Weighted Assets)
Consolidated	$	744,421	15.35	%	$	388,020	8.00	%	$	509,276	N/A		N/A		N/A
Bank	$	726,091	15.01	%	$	387,118	8.00	%	$	508,093	10.50	%	$	483,898	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	683,754	14.10	%	$	291,015	6.00	%	$	412,271	N/A		N/A		N/A
Bank	$	665,424	13.75	%	$	290,339	6.00	%	$	411,313	8.50	%	$	387,118	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	683,754	14.10	%	$	218,261	4.50	%	$	339,518	N/A		N/A		N/A
Bank	$	665,424	13.75	%	$	217,754	4.50	%	$	338,729	7.00	%	$	314,534	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	683,754	10.73	%	$	254,898	4.00	%	$	254,898	N/A		N/A		N/A
Bank	$	665,424	10.46	%	$	254,425	4.00	%	$	254,425	4.00	%	$	318,030	5.00	%

The Bank is required to obtain the approval of the Indiana Department of Financial Institutions for the payment of any dividend if the total amount of all dividends declared by the Bank during the calendar year, including the proposed dividend, would exceed the sum of the retained net income for the year-to-date combined with the retained net income for the previous two years. Indiana law defines “retained net income” to mean the net income of a specified period, calculated under the consolidated report of income instructions, less the total amount of all dividends declared for the specified period. As of December 31, 2022, approximately $121.1 million was available to be paid as dividends to the Company by the Bank.

The payment of dividends by any financial institution or its holding company is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. As described above, the Bank exceeded its minimum capital requirements under applicable guidelines as of December 31, 2022. Notwithstanding the availability of funds for dividends, however, the FDIC may prohibit the payment of any dividends by the Bank if the FDIC determines such payment would constitute an unsafe or unsound practice.

OFFSETTING ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2022

OFFSETTING ASSETS AND LIABILITIES

OFFSETTING ASSETS AND LIABILITIES

The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at December 31, 2022 and 2021.


	2022
	Gross Amounts of Recognized Assets/ Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
(dollars in thousands)							Financial Instruments		Cash Collateral Position		Net Amount
Assets
Interest Rate Swap Derivatives	$	36,920	$	0	$	36,920	$	0	$	(34,185)	$	2,735
Total Assets	$	36,920	$	0	$	36,920	$	0	$	(34,185)	$	2,735
Liabilities
Interest Rate Swap Derivatives	$	36,921	$	0	$	36,921	$	0	$	(90)	$	36,831
Total Liabilities	$	36,921	$	0	$	36,921	$	0	$	(90)	$	36,831


	2021
	Gross Amounts of Recognized Assets/ Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
(dollars in thousands)							Financial Instruments		Cash Collateral Position		Net Amount
Assets
Interest Rate Swap Derivatives	$	14,309	$	0	$	14,309	$	0	$	(2,255)	$	12,054
Total Assets	$	14,309	$	0	$	14,309	$	0	$	(2,255)	$	12,054
Liabilities
Interest Rate Swap Derivatives	$	14,329	$	0	$	14,329	$	0	$	(7,995)	$	6,334
Total Liabilities	$	14,329	$	0	$	14,329	$	0	$	(7,995)	$	6,334

If an event of default occurs causing an early termination of an interest rate swap derivative, any early termination amount payable to one party by the other party may be reduced by set-off against any other amount payable by the one party to the other party. If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions.

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

During the normal course of business, the Company becomes a party to financial instruments with off-balance sheet risk in order to meet the financing needs of its customers. These financial instruments include commitments to make loans and open-ended revolving lines of credit. Amounts as of the years ended December 31, 2022 and 2021, were as follows:


	2022				2021
(dollars in thousands)	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commercial loan lines of credit	$	140,022	$	2,129,211	$	79,792	$	1,850,719
Standby letters of credit	0		48,406		0		55,336
Real estate mortgage loans	377		5,668		7,906		14,216
Real estate construction mortgage loans	2,212		9,043		2,402		3,213
Home equity mortgage open-ended revolving lines	0		341,622		0		306,124
Consumer loan open-ended revolving lines	0		25,916		0		23,287
Total	$	142,611	$	2,559,866	$	90,100	$	2,252,895

The index on variable rate commercial loan commitments is principally the national prime rate. Interest rate ranges on commitments and open-ended revolving lines of credit for years ended December 31, 2022 and 2021, were as follows:


	2022		2021
	Fixed Rate	Variable Rate	Fixed Rate	Variable Rate
Commercial loan	1.99-14.50%	1.63-13.00%	1.99-14.50%	1.11-10.00%
Real estate mortgage loan	0.00-7.00%	3.13-12.50%	2.50-3.75%	3.00-8.25%
Consumer loan open-ended revolving line	15.00%	7.00-15.00%	15.00%	3.25-15.00%

Commitments, excluding open-ended revolving lines, generally have fixed expiration dates of one year or less. Open-ended revolving lines are monitored for proper performance and compliance on a monthly basis. Since many commitments expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company follows the same credit policy (including requiring collateral, if deemed appropriate) to make such commitments as it follows for those loans that are recorded in its financial statements.

The Company’s exposure to credit losses in the event of nonperformance is represented by the contractual amount of the commitments. Management does not expect any significant losses as a result of these commitments.

PARENT COMPANY STATEMENTS

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY STATEMENTS

The Company operates primarily in the banking industry, which accounts for substantially all of its revenues, operating income and assets. Presented below are parent only financial statements:

CONDENSED BALANCE SHEETS


	December 31,
(dollars in thousands)	2022		2021
ASSETS
Deposits with Lake City Bank	$	386	$	834
Deposits with other depository institutions	1,954		2,459
Cash	2,340		3,293
Investments in banking subsidiary	549,031		686,487
Investments in other subsidiaries	3,845		3,468
Other assets	13,819		11,830
Total assets	$	569,035	$	705,078
LIABILITIES
Dividends payable and other liabilities	$	237	$	261

STOCKHOLDERS’ EQUITY	568,798		704,817
Total liabilities and stockholders’ equity	$	569,035	$	705,078

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)


	Years Ended December 31,
(dollars in thousands)	2022		2021		2020
Dividends from Lake City Bank	$	40,590	$	47,355	$	32,079
Dividends from non-bank subsidiaries	1,300		1,035		1,300
Other income	1		3		0
Interest expense	0		(7)		0
Miscellaneous expense	(8,795)		(8,133)		(3,935)
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES	33,096		40,253		29,444
Income tax benefit	2,770		2,360		1,065
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES	35,866		42,613		30,509
Equity in undistributed income of subsidiaries	67,951		53,120		53,828
NET INCOME	$	103,817	$	95,733	$	84,337
COMPREHENSIVE INCOME (LOSS)	$	(101,199)	$	84,082	$	100,022

NOTE 18 – PARENT COMPANY STATEMENTS (continued)

CONDENSED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(dollars in thousands)	2022		2021		2020
Cash flows from operating activities:
Net income	$	103,817	$	95,733	$	84,337
Adjustments to net cash from operating activities:
Equity in undistributed income of subsidiaries	(67,951)		(53,120)		(53,828)
Other changes	6,157		5,177		1,257
Net cash from operating activities	42,023		47,790		31,766
Cash flows from financing activities

Proceeds from (payments on) short-term borrowings	0		(10,500)		10,500
Payments related to equity incentive plans	(1,780)		(1,914)		(2,137)
Purchase of treasury stock	(579)		(559)		(10,547)
Sales of treasury stock	221		115		119
Dividends paid	(40,838)		(34,640)		(30,566)
Cash flows from financing activities	(42,976)		(47,498)		(32,631)
Net increase (decrease) in cash and cash equivalents	(953)		292		(865)
Cash and cash equivalents at beginning of the year	3,293		3,001		3,866
Cash and cash equivalents at end of the year	$	2,340	$	3,293	$	3,001

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Following are the factors used in the earnings per share computations:


(dollars in thousand except share and per share data)	2022		2021		2020
Basic earnings per common share:
Net income	$	103,817	$	95,733	$	84,337
Weighted-average common shares outstanding	25,528,328		25,475,994		25,469,242
Basic earnings per common share	$	4.07	$	3.76	$	3.31
Diluted earnings per common share:
Net income	$	103,817	$	95,733	$	84,337
Weighted-average common shares outstanding for basic earnings per common share	25,528,328		25,475,994		25,469,242
Add: Dilutive effect of assumed exercises of stock options and awards	184,210		144,111		104,699
Average shares and dilutive potential common shares	25,712,538		25,620,105		25,573,941
Diluted earnings per common share	$	4.04	$	3.74	$	3.30

There were no antidilutive stock options for 2022, 2021 and 2020.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2022

OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for December 31, 2022 and 2021, all shown net of tax:


(dollars in thousands)	Unrealized Gains and (Losses) on Available-for-Sales Securities		Defined Benefit Pension Items		Total
Balance at January 1, 2022	$	17,056	$	(963)	$	16,093
Other comprehensive income (loss) before reclassification	(206,392)		86		(206,306)
Amounts reclassified from accumulated other comprehensive income (loss)	1,182		108		1,290
Net current period other comprehensive income (loss)	(205,210)		194		(205,016)
Balance at December 31, 2022	$	(188,154)	$	(769)	$	(188,923)


(dollars in thousands)	Unrealized Gains and (Losses) on Available-for-Sales Securities		Defined Benefit Pension Items		Total
Balance at January 1, 2021	$	29,182	$	(1,438)	$	27,744
Other comprehensive income (loss) before reclassification	(11,496)		293		(11,203)
Amounts reclassified from accumulated other comprehensive income (loss)	(630)		182		(448)
Net current period other comprehensive income (loss)	(12,126)		475		(11,651)
Balance at December 31, 2021	$	17,056	$	(963)	$	16,093

NOTE 20 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (continued)

Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2022, 2021 and 2020 are as follows:


Details about Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income (Loss)		Affected Line Item in the Statement Where Net Income is Presented
2022
(dollars in thousands)
Amortization of unrealized losses on held-to-maturity securities	$	(1,518)	Interest income
Realized gains and (losses) on available-for-sale securities	21		Net securities gains
Tax effect	315		Income tax expense
Subtotal	(1,182)		Net of tax
Amortization of defined benefit pension items(1)	(144)		Salaries and employee benefits
Tax effect	36		Income tax expense
Subtotal	(108)		Net of tax
Total reclassifications for the period	$	(1,290)	Net income


2021
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	797	Net securities gains
Tax effect	(167)		Income tax expense
Subtotal	630		Net of tax
Amortization of defined benefit pension items(1)	(242)		Salaries and employee benefits
Tax effect	60		Income tax expense
Subtotal	(182)		Net of tax
Total reclassifications for the period	$	448	Net income


2020
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	433	Net securities gains
Tax effect	(91)		Income tax expense
Subtotal	342		Net of tax
Amortization of defined benefit pension items(1)	(251)		Salaries and employee benefits
Tax effect	63		Income tax expense
Subtotal	(188)		Net of tax
Total reclassifications for the period	$	154	Net income

(1)Included in the computation of net pension plan expense as more fully discussed in Note 10 – Pension and Other Postretirement Plans.

SELECTED QUARTERLY DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2022

Selected Quarterly Financial Information [Abstract]

SELECTED QUARTERLY DATA (UNAUDITED)

SELECTED QUARTERLY DATA (UNAUDITED) (in thousands except per share data)


2022	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
Interest income	$	75,353	$	62,558	$	53,622	$	48,034
Interest expense	18,516		10,066		4,944		3,154
Net interest income	56,837		52,492		48,678		44,880
Provision for credit losses	8,958		0		0		417
Net interest income after provision	47,879		52,492		48,678		44,463
Noninterest income	10,519		10,164		10,492		10,687
Noninterest expense	27,434		27,894		27,913		26,969
Income tax expense	4,987		6,237		5,584		4,539
Net income	$	25,977	$	28,525	$	25,673	$	23,642

Basic earnings per common share	$	1.02	$	1.12	$	1.00	$	0.93
Diluted earnings per common share	$	1.01	$	1.11	$	1.00	$	0.92


2021	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
Interest income	$	48,322	$	49,295	$	47,625	$	47,977
Interest expense	3,315		3,554		3,964		4,298
Net interest income	45,007		45,741		43,661		43,679
Provision for credit losses	0		1,300		(1,700)		1,477
Net interest income after provision	45,007		44,441		45,361		42,202
Noninterest income	9,709		11,114		11,340		12,557
Noninterest expense	24,926		25,967		26,648		26,746
Income tax expense	5,507		5,469		5,705		5,030
Net income	$	24,283	$	24,119	$	24,348	$	22,983

Basic earnings per common share	$	0.95	$	0.95	$	0.96	$	0.90
Diluted earnings per common share	$	0.95	$	0.94	$	0.95	$	0.90

LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASESThe Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2037 and some include renewal options. Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs. In many cases, rentals are subject to increase in relation to a cost-of-living index. The Company accounts for lease and non-lease components together as a single lease component. The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a right-of-use (“ROU”) lease assets and are included in other assets on the consolidated balance sheet. The Company’s corresponding lease obligations are included in other liabilities on the consolidated balance sheet. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

NOTE 22 - LEASES (continued)

Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as practical expedient of the lease standard.

The following is a maturity analysis of the operating lease liabilities as of December 31, 2022:


Years ending December 31, (in thousands)	Operating Lease Obligation
2023	$	727
2024	744
2025	756
2026	731
2027	753
2028 and thereafter	2,185
Total undiscounted lease payments	5,896
Less imputed interest	(600)
Lease liability	$	5,296
Right-of-use asset	$	5,296


	Year Ended		Year Ended		Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Lease cost
Operating lease cost	$	667	$	536	$	536
Short-term lease cost	22		24		24
Total lease cost	$	689	$	560	$	560


Other information
Operating cash outflows from operating leases	$	667		$	536		$	536
Weighted-average remaining lease term - operating leases	7.3			7.9			8.8
Weighted average discount rate - operating leases	2.5		%	2.8		%	2.8		%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Nature of Operations and Principles of Consolidation	Nature of Operations and Principles of Consolidation: The consolidated financial statements include Lakeland Financial Corporation (the “Holding Company”) and its wholly owned subsidiaries, Lake City Bank (the “Bank”) and LCB Risk Management, Inc., together referred to as (the “Company”). On December 18, 2006, LCB Investments II, Inc. was formed as a wholly owned subsidiary of the Bank incorporated in Nevada to manage a portion of the Bank’s investment portfolio beginning in 2007. On December 21, 2006, LCB Funding, Inc., a real estate investment trust incorporated in Maryland, was formed as a wholly owned subsidiary of LCB Investments II, Inc. On December 28, 2012, LCB Risk Management, Inc., a captive insurance company incorporated in Nevada, was formed as a wholly owned subsidiary of the Holding Company. All intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through the Bank, a full-service commercial bank with 52 branch offices in fifteen counties in Northern and Central Indiana. The Company provides commercial, retail, trust and investment services to its customers. Commercial products include commercial loans and technology-driven solutions to meet commercial customers’ treasury management needs such as mobile business banking and online treasury management services. Retail banking clients are provided a wide array of traditional retail banking services, including lending, deposit and investment services. Retail lending programs are focused on mortgage loans, home equity lines of credit and traditional retail installment loans. The Company provides credit card services to retail and commercial customers through its retail card program and merchant processing activity. The Company provides wealth advisory and trust clients with traditional personal and corporate trust services. The Company also provides retail brokerage services, including an array of financial and investment products such as annuities and life insurance. Other financial instruments, which represent potential concentrations of credit risk, include deposit accounts in other financial institutions.
Use of Estimates	Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ.
Cash Flows	Cash Flows: Cash and cash equivalents include cash, demand deposits in other financial institutions and short-term investments and certificates of deposit with maturities of 90 days or less. Cash flows are reported net for customer loan and deposit transactions, and certain short-term borrowings.
Securities	Securities: Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. Securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Purchase premiums or discounts are recognized in interest income using the interest method over the terms of the securities or over estimated lives for mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, nature of the security, the underlying collateral, and the financial condition of the issuer, among other factors. If this assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and a valuation allowance for securities losses is recorded for the credit loss, limited by the amount that the fair value is less than the NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) amortized cost basis. Any impairment that has not been recorded through a valuation allowance for securities losses is recognized in other comprehensive income (loss). Changes in the valuation allowance for securities losses are recorded as a component of credit loss expense. Losses are charged against the valuation allowance for securities losses when management believes the uncollectibility of the security is confirmed or when either criteria regarding intent or requirement to sell is met. A portion of the municipal bond portfolio is classified as held-to-maturity. The Company measures expected credit losses on investment securities held-to-maturity on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in the Company's portfolio have been insignificant. After completing this assessment, the Company determined any credit losses as of December 31, 2022 were not material to the consolidated financial statements.
Real Estate Mortgage Loans Held for Sale	Real Estate Mortgage Loans Held-for-Sale: Loans held for sale are reported at the lower of cost or fair value on an aggregate basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loan sales occur on the delivery date agreed to in the relevant commitment agreement. The Company retains servicing on the majority of loans sold. The carrying value of loans sold is reduced by the amount allocated to the servicing right. The gain or loss on the sale of loans is the difference between the carrying value of the loans sold and the funds received from the sale.
Loans	Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an allowance for credit losses. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. All classes of commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage loans for which collateral is insufficient to cover all principal and accrued interest are reclassified as nonaccrual loans, on or before the date when the loan becomes 90 days delinquent. When a loan is classified as a nonaccrual loan, interest on the loan is no longer accrued, all unpaid accrued interest is reversed and interest income is subsequently recorded on the cash-basis or cost-recovery method. Accrual status is resumed when all contractually due payments are brought current and future payments are reasonably assured. Other consumer loans are not placed on a nonaccrual status since these loans are charged-off when they have been delinquent from 90 to 180 days, and when the related collateral, if any, is not sufficient to offset the indebtedness. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated and individually analyzed loans. The recorded investment in loans is the loan balance net of unamortized deferred loan fees and costs. The total amount of accrued interest on loans as of December 31, 2022 and 2021 was $18.4 million and $10.0 million.
Allowance for Credit Losses	Allowance for Credit Losses: The allowance for credit losses is a valuation allowance to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management's judgment, should be charged against the allowance. A provision for credit losses is taken based on management's ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company's control. The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) with current and forecasted economic conditions that may affect borrowers' ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default ("PD/LGD") model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification to a borrower experiencing financial difficulty or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a loss rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee's Summary of Economic Projections, as well as portfolio trends based on the risks present for each portfolio segment. These environmental factors include consideration of portfolio trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover expected losses within the loan portfolio. Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other, and a consensus is reached by credit administration and the loan officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer's cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring. Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool's probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool. The historical loss rates are all supplemented with consideration of economic conditions and portfolio trends. The risk characteristics of each of the identified portfolio segments are as follows: Commercial and Industrial - Borrowers may be subject to industry conditions including decreases in product demand; increase in material or other production costs that cannot be immediately recaptured in the sales or distribution cycle; interest rate increases that could have an adverse impact on profitability; non-payment of credit that has been extended under normal vendor terms for goods sold or services; and interruption related to the importing or exporting of production materials or sold products. Commercial Real Estate and Multi-Family Residential - Borrowers may be subject to potential adverse market conditions that cause a decrease in market value or lease rates; the potential for environmental impairment from events occurring on subject or neighboring properties; and obsolescence in location or function. Multi-Family Residential is also subject to adverse market conditions associated with a change in governmental or personal funding sources for tenants; over supply of units in a specific region; a shift in population; and reputational risks. Construction and Land Development risks include slower absorption than anticipated on speculative projects; deterioration in market conditions that may impact a project's value; unforeseen costs not considered in the original construction budget; or any other factors that may impact the completion or success of the project. Agri-business and Agricultural - Borrowers may be subject to adverse market or weather conditions including changes in local or foreign demand; lower yields than anticipated; political or other impact on storage, distribution or use; foreign trade policies including tariffs; and exposure to increasing commodity prices which result in higher production, distribution or exporting costs. Other Commercial - Borrowers may be subject to an interruption in the flow of funds to states and other political subdivisions for the purpose of debt repayments on loans held by the Bank. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Consumer 1-4 Family Mortgage - Borrowers may be subject to adverse employment conditions in the local economy leading to increased default rates; decreased market values from oversupply in a geographic area; and impact to the borrowers' ability to maintain payments in the event of incremental rate increases on adjustable rate mortgages. Other Consumer - Borrowers may be subject to adverse employment conditions in the local economy which may lead to higher default rates; and decreases in the value of underlying collateral. A loan is individually analyzed for specific allocation when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Allocations are analyzed individually or in total for smaller-balance loans of similar nature such as all classes of consumer 1-4 family and other consumer loans, and individually for all classes of commercial and industrial, commercial real estate and multi-family, agribusiness and agricultural and other commercial loans. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. Factors considered by management in determining individual evaluation include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as individually evaluated. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is individually evaluated, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral less anticipated costs to sell. All classes of commercial and industrial, commercial real estate and multifamily residential, agribusiness and agricultural, other commercial, consumer 1-4 family mortgage loans and other consumer loans that become delinquent beyond 90 days are analyzed and a charge-off is taken when it is determined that the underlying collateral, if any, is not sufficient to offset the indebtedness. Loans, for which the terms have been modified for borrowers experiencing financial difficulties and a concession has been granted that could materially change the Company's expected future cash flows, are classified as individually evaluated and may be either accruing or non-accruing. Modifications to borrowers experiencing financial difficulties on nonaccrual status follow the same policy as described above for other loans. Individual evaluation for modifications to borrowers experiencing financial difficulty is measured at the present value of estimated future cash flows using the loan’s effective rate at inception or at discounted collateral value for collateral dependent loans. Due to the imprecise nature of estimating the allowance for credit losses, the Company's allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company's judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income. For off balance sheet credit exposures outlined in the ASC at 326-20-30-11, it is the Company's position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. The Company uses the following definitions for 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 or of the institution’s credit position 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 as the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued) Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans are considered to be "Pass" rated when they are reviewed as part of the previously described process and do not meet the criteria above with the exception of consumer troubled debt restructurings, which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with “Not Rated” loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status.
Investments in Limited Partnerships	Investments in Limited Partnerships: The Company enters into and invests in limited partnerships in order to invest in affordable housing projects to support Community Reinvestment Act activities and secondarily to obtain available tax benefits. The Company also invests in Small Business Investment Company Program funds. The Company is a limited partner in these investments and, as such, the Company is not involved in the management or operation of such investments. These investments are accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the partnership’s earnings or losses in its income statement and adjusts the carrying amount of the investments on the consolidated balance sheet. These investments are evaluated for impairment when events indicate the carrying amount may not be recoverable. The investments recorded at December 31, 2022 and 2021 were $12.2 million and $9.4 million, respectively and are included with other assets in the consolidated balance sheet. The Company also has a commitment to fund an additional $3.9 million at December 31, 2022 in six of the limited partnerships compared to $2.2 million in five of the limited partnerships at December 31, 2021, which is included with other liabilities in the consolidated balance sheet. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Foreclosed Assets	Foreclosed Assets: Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs incurred after acquisition are expensed. At December 31, 2022 and 2021, the balance of other real estate owned was $100,000 and $196,000, respectively, and is included with other assets on the consolidated balance sheet.
Land, Premises and Equipment, Net	Land, Premises and Equipment, Net: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the useful lives of the assets. Premises and improvements assets have useful lives between 5 and 40 years. Equipment and furniture assets have useful lives between 3 and 7 years.
Loan Servicing Rights	Loan Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in mortgage banking income. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The amortization of servicing rights is netted against mortgage banking income. Servicing fees were $1.2 million for the years ended 2022, 2021 and 2020. Late fees and ancillary fees related to loan servicing are not material. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as loan type, term and interest rate. Any impairment of a grouping is reported as a valuation allowance, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in the valuation allowance are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The carrying value of mortgage servicing rights, which is included with other assets in the consolidated balance sheet, was $2.7 million and $2.4 million as of December 31, 2022 and 2021, respectively. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $364.3 million and $375.4 million at December 31, 2022 and 2021, respectively. Custodial escrow balances maintained in connection with serviced loans were $1.7 million at year end 2022 and 2021. Servicing fee income (loss), which is included in loan and service fees on the income statement, is recorded for fees earned for servicing loans. Fees earned for servicing loans are based on a contractual percentage of the outstanding principal amount of the loan and are recorded as income when earned.
Transfers of Financial Assets	Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Mortgage Banking Derivatives	Mortgage Banking Derivatives: Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in fair values of these derivatives are included in mortgage banking income.
Interest Rate Swap Derivatives	Interest Rate Swap Derivatives: The Company offers a derivative product to certain creditworthy commercial banking customers. This product allows the commercial banking customers to enter into an agreement with the Company to swap a variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the borrower’s interest rate exposure. The extension of credit incurred in connection with these derivative products is subject to the same approval and underwriting standards as traditional credit products. The Company limits its risk exposure by simultaneously entering into a similar, offsetting swap agreement with a separate, well-capitalized and highly rated counterparty previously approved by the Company’s Asset Liability Committee. By using these interest rate swap arrangements, the Company is also better insulated from the interest rate risk associated with underwriting fixed-rate loans and is better able to meet customer demand for fixed rate loans. These derivative contracts are not designated against specific assets or liabilities and, therefore, do not qualify for hedge accounting. The derivatives are recorded as assets and liabilities on the balance sheet at fair value with changes in fair value recorded in non-interest income for both the commercial banking customer swaps and the related offsetting swaps. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820), resulting in some potential volatility in earnings each period. The notional amount of the combined interest rate swaps with customers and counterparties at December 31, 2022 and 2021 was $760.5 million and $796.0 million, respectively. The fair value of the interest rate swap asset was $36.9 million and $14.3 million and the fair value of the interest rate swap liability was $36.9 million and $14.3 million at December 31, 2022 and 2021, respectively. The Company was a party in risk participation transactions of interest rate swaps. There were no total notional swaps at December 31, 2022 compared to $4.6 million at December 31, 2021.
Bank Owned Life Insurance	Bank Owned Life Insurance: At December 31, 2022 and 2021, the Company owned $102.5 million and $91.1 million, respectively, of life insurance policies on certain officers to provide a life insurance benefit for these officers. At December 31, 2022 and 2021, the Company also owned $5.9 million and $6.6 million, respectively, of variable life insurance on certain officers related to a deferred compensation plan. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, i.e., the cash surrender value adjusted for other changes or other amounts due that are probable at settlement.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets: All goodwill on the Company’s consolidated balance sheet resulted from business combinations prior to January 1, 2009 and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is not amortized, but assessed at least annually for impairment and any such impairment would be recognized in the period identified.
FHLB and Federal Reserve Bank Stock	FHLB and Federal Reserve Bank Stock: FHLB and Federal Reserve Bank stock are carried at cost in other assets, classified as a restricted security and are periodically evaluated for impairment based on ultimate recoverability of par value. Both cash and stock dividends are reported as income.
Long-term Assets	Long-term Assets: Premises and equipment, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. There was no such impairment identified for the years ended December 31, 2022, 2021 and 2020.
Benefit Plans	Benefit Plans: The Company has a noncontributory defined benefit pension plan, which covered substantially all employees until the plan was frozen effective April 1, 2000. Funding of the plan equals or exceeds the minimum funding requirement determined by the actuary. Pension expense is the net of interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Benefits are based on years of service and compensation levels. The Company maintains a 401(k) profit sharing plan for all employees meeting certain age and service requirements. The Company contributions are based upon the percentage of budgeted net income earned during the year. An employee deferred compensation plan is available to certain employees with returns based on investments in mutual funds. The Company maintains a directors’ deferred compensation plan. Effective January 1, 2003, the directors’ deferred compensation plan was amended to restrict the deferral to be in stock only and deferred directors’ fees are included in equity. The Company acquires shares on the open market and records such shares as treasury stock.
Revenue Recognition	Revenue Recognition: All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following is a description of principal activities from which we generate revenue. Revenues are recognized as the Company satisfies its obligations with our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. Wealth advisory fees The Company provides wealth advisory services to its customers and earns fees from its contracts with trust customers to manage assets for investment and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted monthly, quarterly, or annual services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed. Other related services, such as escrow accounts that are based on a fixed schedule, are recognized when the services are rendered. Investment brokerage services The Company provides investment brokerage services through a full service brokerage and investment and advisory firm, Cetera Investment Services LLC (“Cetera”). The Company receives commissions from Cetera on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are generally paid by the 5th business day of the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the Cetera and (ii) does not control the services to the customers, investment brokerage service fees are presented net of Cetera’s related costs. Service charges on deposit accounts The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s balance. Interchange income The Company provides the ability to transact on certain deposit accounts through the use of debit cards by outsourcing the services through third party service providers. Performance obligations are met on a transactional basis and income is recognized monthly based on transaction type and volume. Under the accounting standards in effect in the prior period, revenue was previously recognized net of the third party’s costs. Under ASC 606, fees from interchange income related to its customers use of debit cards will be reported gross in loan and service fees under noninterest income. The cost of using third party providers for these interchange services are reported in data processing fees and supplies under noninterest expense. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Gain on sale of other real estate owned ("OREO") financed by seller On occasion, the Company underwrites a loan to purchase property owned by the Company. Under ASC 606, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Debit card incentive rebates The Company receives incentive rebates based on debit card transaction volume. Performance obligations are met on a transactional basis and income is recognized monthly based on transaction volume. Under ASC 606, these rebates related to debit card transaction volume are reported as a contra expense in data processing fees and supplies under noninterest expense.
Stock Based Compensation	Stock Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant adjusted for the present value of expected dividends is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Certain of the restricted stock awards are performance based, as more fully discussed in Note 14 – Stock Based Compensation.
Income Taxes	Income Taxes: Annual consolidated federal and state income tax returns are filed by the Company. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Income tax expense is recorded based on the amount of taxes due on its tax return plus net deferred taxes computed based upon the expected future tax consequences of temporary differences between carrying amounts and tax basis of assets and liabilities, using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is more likely of being realized on examination than not. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Off-Balance Sheet Financial Instruments	Off-Balance Sheet Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. The fair value of standby letters of credit is recorded as a liability during the commitment period.
Earnings Per Common Share	Earnings Per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, restricted stock awards and warrants. Earnings and dividends per share are restated for all stock splits and dividends through the date of issue of the financial statements. The common shares included in treasury stock for 2022 and 2021 were 475,902 and 476,816 shares, respectively. Common stock that has been purchased under the directors’ deferred compensation plan, described above, is included in the treasury stock total and represented 186,801 and 187,715 shares of treasury stock as of December 31, 2022 and 2021, respectively. Because these shares are held in trust for the participants, NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) they are treated as outstanding when computing the weighted-average common shares outstanding for the calculation of both basic and diluted earnings per share. During the year ended December 31, 2020, the Company repurchased 289,101 of its common shares at a weighted average price of $34.63 per share. Treasury stock is carried at cost.
Comprehensive Income (Loss)	Comprehensive Income (Loss): Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, reclassification adjustments for securities transferred to held-to-maturity, reclassification adjustments for gains on the sale of available-for-sale securities and changes in the funded status of the pension plan, which are also recognized as separate components of equity.
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. The Bank discovered potentially fraudulent activity by a former treasury management client involving multiple banks. The former client subsequently filed several related bankruptcy cases, captioned In re Interlogic Outsourcing, Inc., et al., which are pending in the United States Bankruptcy Court for the Western District of Michigan. On April 27, 2021, the bankruptcy court entered an order approving an amended plan of liquidation, which was filed by the former client, other debtors and bankruptcy plan proponents, and approving the consolidation of the assets in the aforementioned cases under the Khan IOI Consolidated Estate Trust. On August 9, 2021, the liquidating trustee for the bankruptcy estates filed a complaint against the Bank and the Company, and agreed to stay prosecution of the action through August 31, 2022. The original complaint focused on a series of business transactions among the client, related entities and the Bank, which the liquidating trustee alleged are voidable under applicable federal bankruptcy and state law. The complaint also addressed treatment of the Bank's claims filed in the bankruptcy cases. On August 31, 2022, the trustee filed his amended complaint against the former client, the Bank, the Company, four officers of the Bank and one independent director of the Bank. The amended complaint alleges that the former client engaged in a check kiting scheme involving multiple banks. The amended complaint alleges that a series of business transactions among the client, his related entities and the Bank are voidable under applicable bankruptcy and state laws. The amended complaint also alleges that the Bank, the Company and the five individual bank representatives who are named as defendants violated various federal and state laws in assisting the former client in his check kiting scheme. On October 26, 2022, the trustee filed his second amended complaint which was virtually identical to his amended complaint. On January 5, 2023, the Bank, the Company and the five individual bank representatives filed motions to dismiss the second amended complaint. The motions are being briefed and will then be considered by the court. Based on current information, we have determined that a material loss is neither probable nor estimable at this time, and the Bank, the Company and the five individual Bank representatives who are named as defendants intend to vigorously defend themselves against all allegations asserted in this amended complaint.
Restrictions on Cash	Restrictions on Cash: The Federal Reserve Bank eliminated the reserve requirement for all depository institutions in March of 2020. Therefore, the Company was not required to have cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at December 31, 2022 and 2021.
Dividend Restriction	Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to its stockholders. These restrictions currently pose no practical limit on the ability of the Bank or Company to pay dividends at historical levels.
Fair Value of Financial Instruments	Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 5 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.
Operating Segments	Operating Segments: The Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. All of the Company’s financial service operations are similar and considered by management to be aggregated into one reportable operating segment. While the Company has assigned certain management responsibilities by region and business-line, the Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. The majority of the Company’s revenue is from the business of banking and the Company’s assigned regions have similar economic characteristics, products, services and customers. Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment.
Newly Issued But Not Yet Effective Accounting Standards	Newly Issued Accounting Standards: On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to a planned adoption of reference rates which could include Secured Overnight Financing Rate ("SOFR"), amongst others. The Company has identified certain loans that renewed prior to 2021 and obtained updated reference rate language at the time of the renewal. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company's policy is to adhere to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. The Company is working to transition LIBOR-based loans to an alternative reference rate before June 30, 2023. On December 22, 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848", which definitively provided a sunset date of December 31, 2024 for the relief guidance allowed under Topic 848. The ASU was effective immediately upon issuance. The Company adopted the LIBOR transition relief allowed under this standard, and does not expect final adoption to have a material impact on the consolidated financial statements. On March 28, 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (ASC 815): Fair Value Hedging - Portfolio Layer Method." ASC 815 currently permits only prepayable financial assets and one or more beneficial interests secured by a portfolio of prepayable financial instruments to be included in a last-of-layer closed portfolio. The amendment in this update allows nonrepayable financial assets to also be included in a closed portfolio hedged using the portfolio layer method. That expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. On March 31, 2022, the FASB issued ASU 2022-02, "Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures." The guidance amends ASC 326 to eliminate the accounting guidance for TDR's by creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying TDR recognition and measurement guidance, creditors will determine whether a modification results in a new loan or continuation of an existing loan. These amendments are intended to enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, the amendments to ASC 326 require that an entity disclose current-period gross write-offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and and class of financing receivable by year of origination. The guidance is only for entities that have adopted the amendments in update 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption using prospective application, including adoption in an interim period where the guidance should be applied as of the beginning of the fiscal year, is permitted. The Company elected to early adopt the provisions of the ASU related to modifications made to borrowers experiencing financial difficulty during the second quarter of 2022, with retrospective application to January 1, 2022. Adoption of this portion of the standard did not have a material impact on the consolidated financial statements. The Company is currently assessing the impact of the vintage disclosure provisions of ASU 2022-02 on its disclosures; however, the Company does not expect the adoption of this portion of the standard to have a material impact on the consolidated financial statements. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Newly Proposed Accounting Standards On August 22, 2022, the FASB released a proposed ASU, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)." The amendments in this proposed update would permit reporting entities to account for their tax equity investments, regardless of the program from which the tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). A reporting entity would make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than to apply the proportional amortization method at the reporting entity level or to individual investments. The proposal would require specific disclosures for all tax equity investments in a program to which an entity has elected to apply the proportional amortization method. The proposed amendments call for application on a modified prospective or a retrospective basis. The proposed ASU includes an effective date for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2023. The Company plans to assess the impact of the proposed amendments on the consolidated financial statements once the final ASU is issued. On October 6, 2022, the FASB released a proposed ASU, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments in this proposed update would improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis. Significant expense categories and amounts subject to disclosure would be derived from expenses that are (1) regularly reported to an entity's chief operating decision-maker (CODM) and (2) included in a segment's reported measure of profit or loss. Public entities would also be required to disclose an amount for other segment items by reportable segment and a description of composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. The amendment would also require all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 to be disclosed for interim periods. Additionally, the proposed amendments would also require the disclosure of the name and title of the CODM. The proposed amendments call for retrospective application. The proposed ASU does not yet include an effective date. The Company plans to assess the impact of the proposed amendments on the consolidated financial statements once the final ASU is issued.
Reclassifications	Reclassifications: Certain amounts appearing in the financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders’ equity as previously reported.

SECURITIES (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Summary of Available-For-Sale Securities

NOTE 2 – SECURITIES (continued)


(dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
2022
U.S. Treasury securities	$	3,057	$	0	$	(23)	$	0	$	3,034
U.S. government sponsored agencies	156,184		0		(29,223)		0		126,961
Mortgage-backed securities: residential	578,175		67		(85,934)		0		492,308
Mortgage-backed securities: commercial	0		0		0		0		0
State and municipal securities	663,367		157		(100,299)		0		563,225
Total	$	1,400,783	$	224	$	(215,479)	$	0	$	1,185,528

2021
U.S. Treasury securities	$	900	$	0	$	0	$	0	$	900
U.S. government sponsored agencies	145,858		39		(2,445)		0		143,452
Mortgage-backed securities: residential	487,157		4,455		(4,936)		0		486,676
Mortgage-backed securities: commercial	522		1		0		0		523
State and municipal securities	742,532		25,749		(1,274)		0		767,007
Total	$	1,376,969	$	30,244	$	(8,655)	$	0	$	1,398,558

Schedule of Debt Securities, Held-to-Maturity


(dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
2022
State and municipal securities	$	128,242	$	0	$	(17,213)	$	0	$	111,029

Schedule of Available-For-Sale Securities By Maturity


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,073	$	3,059	$	0	$	0
Due after one year through five years	6,443		6,431		0		0
Due after five years through ten years	57,481		55,437		0		0
Due after ten years	755,611		628,293		128,242		111,029
	822,608		693,220		128,242		111,029
Mortgage-backed securities	578,175		492,308		0		0
Total debt securities	$	1,400,783	$	1,185,528	$	128,242	$	111,029

Schedule of Sales of Securities Available For Sale

Security proceeds, gross gains and gross losses for 2022, 2021 and 2020 were as follows:


(dollars in thousands)	2022		2021		2020
Sales of securities available-for-sale
Proceeds	$	25,332	$	13,964	$	8,018
Gross gains	140		797		433
Gross losses	(119)		0		0
Number of securities	30		9		17

Schedule of Available-For-Sale Securities Continuous Unrealized Loss Position


	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2022
U.S. Treasury securities	$	3,034	$	23	$	0	$	0	$	3,034	$	23
U.S. government sponsored agencies	8,420		1,350		118,541		27,873		126,961		29,223
Mortgage-backed securities: residential	165,897		18,637		323,727		67,297		489,624		85,934

State and municipal securities	277,967		33,405		244,436		66,894		522,403		100,299
Total temporarily impaired	$	455,318	$	53,415	$	686,704	$	162,064	$	1,142,022	$	215,479

2021
U.S. government sponsored agencies	$	85,968	$	1,364	$	28,676	$	1,081	$	114,644	$	2,445
Mortgage-backed securities: residential	272,264		4,076		22,792		860		295,056		4,936

State and municipal securities	138,659		1,274		0		0		138,659		1,274
Total temporarily impaired	$	496,891	$	6,714	$	51,468	$	1,941	$	548,359	$	8,655

Schedule of Debt Securities, Held-To-Maturity, Unrealized Loss Position, Fair Value


	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2022
State and municipal securities	$	0	$	0	$	111,029	$	17,213	$	111,029	$	17,213

Schedule of Quantitative Disclosure of Available-For-Sale Securities

The number of securities with unrealized losses as of December 31, 2022 and 2021 is presented below.


	Available-for-Sale			Held-to-Maturity
	Less than 12 months	12 months or more	Total	Less than 12 months	12 months or more	Total
2022
U.S. Treasury securities	7	0	7	0	0	0
U.S. government sponsored agencies	1	16	17	0	0	0
Mortgage-backed securities: residential	95	41	136	0	0	0

State and municipal securities	269	223	492	0	41	41
Total temporarily impaired	372	280	652	0	41	41

2021
U.S. government sponsored agencies	8	5	13	0	0	0
Mortgage-backed securities: residential	29	3	32	0	0	0

State and municipal securities	80	0	80	0	0	0
Total temporarily impaired	117	8	125	0	0	0

LOANS (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Loans

Total loans outstanding as of the years ended December 31, 2022 and 2021 consisted of the following:


(dollars in thousands)	2022		2021
Commercial and industrial loans:
Working capital lines of credit loans	$	650,948	$	652,861
Non-working capital loans	842,101		736,608
Total commercial and industrial loans	1,493,049		1,389,469

Commercial real estate and multi-family residential loans:
Construction and land development loans	517,664		379,813
Owner occupied loans	758,091		739,371
Nonowner occupied loans	706,107		588,458
Multi-family loans	197,232		247,204
Total commercial real estate and multi-family residential loans	2,179,094		1,954,846

Agri-business and agricultural loans:
Loans secured by farmland	201,200		206,331
Loans for agricultural production	230,888		239,494
Total agri-business and agricultural loans	432,088		445,825

Other commercial loans	113,593		73,490
Total commercial loans	4,217,824		3,863,630

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	212,742		176,561
Open end and junior lien loans	175,575		156,238
Residential construction and land development loans	19,249		11,921
Total consumer 1-4 family mortgage loans	407,566		344,720

Other consumer loans	88,075		82,755
Total consumer loans	495,641		427,475
Gross loans	4,713,465		4,291,105
Less: Allowance for credit losses	(72,606)		(67,773)
Net deferred loan fees	(3,069)		(3,264)
Loans, net	$	4,637,790	$	4,220,068

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Tables)

12 Months Ended

Dec. 31, 2022

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Schedule of Allowance For Loan Losses and Recorded Investment In Loans By Portfolio Segment

The following table presents the activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2022 and 2021:


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multi-family Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
2022
Beginning balance	$	30,595	$	26,535	$	5,034	$	1,146	$	2,866	$	1,147	$	450	$	67,773
Provision for credit losses	8,646		1,179		(605)		(229)		125		155		104		9,375
Loans charged-off	(4,022)		(597)		0		0		(42)		(473)		0		(5,134)
Recoveries	71		277		0		0		52		192		0		592
Net loans (charged-off) recovered	(3,951)		(320)		0		0		10		(281)		0		(4,542)
Ending balance	$	35,290	$	27,394	$	4,429	$	917	$	3,001	$	1,021	$	554	$	72,606


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multi-family Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
2021
Beginning balance	$	28,333	$	22,907	$	3,043	$	416	$	2,619	$	951	$	3,139	$	61,408
Impact of adopting ASC 326	4,312		4,316		1,060		941		953		349		(2,881)		9,050
Provision for credit losses	1,966		(632)		611		(211)		(777)		(72)		192		1,077
Loans charged-off	(5,575)		(70)		0		0		(51)		(287)		0		(5,983)
Recoveries	1,559		14		320		0		122		206		0		2,221
Net loans (charged-off) recovered	(4,016)		(56)		320		0		71		(81)		0		(3,762)
Ending balance	$	30,595	$	26,535	$	5,034	$	1,146	$	2,866	$	1,147	$	450	$	67,773


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multi-family Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Beginning balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652
Provision for loan losses	6,640		6,868		(826)		(31)		341		959		819		14,770
Loans charged-off	(4,524)		(72)		0		0		(141)		(516)		0		(5,253)
Recoveries	428		315		0		0		333		163		0		1,239
Net loans (charged-off) recovered	(4,096)		243		0		0		192		(353)		0		(4,014)
Ending balance	$	28,333	$	22,907	$	3,043	$	416	$	2,619	$	951	$	3,139	$	61,408

Risk Category of Loans By Loan Segment and Origination


(dollars in thousands)	2022		2021		2020		2019		2018		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	2,207	$	2,718	$	1,601	$	0	$	0	$	0	$	6,526	$	597,108	$	603,634
Special Mention	0		0		0		0		0		0		0		36,410		36,410
Substandard	200		0		0		300		0		0		500		10,495		10,995


Total	2,407		2,718		1,601		300		0		0		7,026		644,013		651,039
Non-working capital loans:
Pass	272,273		124,600		91,850		47,711		9,981		13,670		560,085		240,490		800,575
Special Mention	448		1,620		0		109		159		2,961		5,297		2,153		7,450
Substandard	11,831		872		5,021		194		1,351		3,979		23,248		4,171		27,419

Not Rated	2,891		1,550		1,254		413		120		23		6,251		0		6,251
Total	287,443		128,642		98,125		48,427		11,611		20,633		594,881		246,814		841,695
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	26,889		19,944		14,026		356		0		0		61,215		453,953		515,168




Total	26,889		19,944		14,026		356		0		0		61,215		453,953		515,168
Owner occupied loans:
Pass	113,656		179,014		139,880		97,353		65,519		97,335		692,757		40,533		733,290
Special Mention	2,960		7,608		0		446		1,491		8,054		20,559		0		20,559
Substandard	308		105		1,491		373		1,161		229		3,667		0		3,667


Total	116,924		186,727		141,371		98,172		68,171		105,618		716,983		40,533		757,516
Nonowner occupied loans:
Pass	194,294		125,190		134,661		91,907		15,109		64,874		626,035		68,603		694,638
Special Mention	0		11,024		0		0		0		0		11,024		0		11,024



Total	194,294		136,214		134,661		91,907		15,109		64,874		637,059		68,603		705,662
Multi-family loans:
Pass	38,460		25,741		36,929		35,695		2,046		28,866		167,737		7,349		175,086
Special Mention	21,855		0		0		0		0		0		21,855		0		21,855



Total	60,315		25,741		36,929		35,695		2,046		28,866		189,592		7,349		196,941
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	38,344		28,684		29,741		9,656		8,145		19,638		134,208		63,094		197,302
Special Mention	260		0		1,676		1,780		0		15		3,731		0		3,731
Substandard	0		0		0		0		0		145		145		0		145


Total	38,604		28,684		31,417		11,436		8,145		19,798		138,084		63,094		201,178
Loans for agricultural production:
Pass	6,040		30,262		22,167		3,625		9,248		4,539		75,881		143,599		219,480
Special Mention	947		243		7,262		928		0		0		9,380		2,129		11,509



Total	6,987		30,505		29,429		4,553		9,248		4,539		85,261		145,728		230,989
Other commercial loans:
Pass	27,097		4,815		17,911		147		931		10,985		61,886		48,295		110,181
Special Mention	0		0		0		0		0		3,160		3,160		0		3,160



Total	27,097		4,815		17,911		147		931		14,145		65,046		48,295		113,341
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans
Pass	8,768		12,809		12,289		4,805		4,045		3,860		46,576		5,634		52,210
Special Mention	0		0		552		0		0		0		552		0		552
Substandard	0		0		0		0		83		1,944		2,027		0		2,027

Not Rated	57,404		44,331		20,023		5,936		2,970		27,004		157,668		0		157,668
Total	66,172		57,140		32,864		10,741		7,098		32,808		206,823		5,634		212,457
Open end and junior lien loans
Pass	137		541		357		63		75		0		1,173		5,841		7,014

Substandard	0		0		0		31		49		0		80		111		191

Not Rated	44,472		13,597		3,014		3,616		1,476		2,252		68,427		101,750		170,177
Total	44,609		14,138		3,371		3,710		1,600		2,252		69,680		107,702		177,382
Residential construction loans




Not Rated	14,463		2,167		897		291		129		1,223		19,170		0		19,170
Total	14,463		2,167		897		291		129		1,223		19,170		0		19,170
Other consumer loans
Pass	1,344		1,841		432		600		0		948		5,165		16,152		21,317

Substandard	0		0		0		210		0		0		210		0		210

Not Rated	24,395		14,563		9,168		3,606		2,755		1,352		55,839		10,492		66,331
Total	25,739		16,404		9,600		4,416		2,755		2,300		61,214		26,644		87,858

TOTAL	$	911,943	$	653,839	$	552,202	$	310,151	$	126,843	$	297,056	$	2,852,034	$	1,858,362	$	4,710,396

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (continued)


(dollars in thousands)	2021		2020		2019		2018		2017		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	3,699	$	830	$	3,360	$	0	$	0	$	0	$	7,889	$	558,634	$	566,523
Special Mention	0		0		0		0		0		0		0		60,441		60,441
Substandard	0		0		35		0		0		0		35		25,928		25,963


Total	3,699		830		3,395		0		0		0		7,924		645,003		652,927
Non-working capital loans:
Pass	185,374		139,157		79,477		38,899		19,415		18,489		480,811		203,794		684,605
Special Mention	17,728		0		225		979		2,350		1,426		22,708		0		22,708
Substandard	2,996		6,948		1,091		2,534		5,465		426		19,460		3,321		22,781

Not Rated	2,265		1,758		837		563		128		14		5,565		0		5,565
Total	208,363		147,863		81,630		42,975		27,358		20,355		528,544		207,115		735,659
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	35,136		30,224		1,276		998		0		0		67,634		310,396		378,030




Total	35,136		30,224		1,276		998		0		0		67,634		310,396		378,030
Owner occupied loans:
Pass	135,861		169,404		124,117		85,070		78,155		93,925		686,532		29,611		716,143
Special Mention	6,555		0		880		933		7,387		1,235		16,990		0		16,990
Substandard	489		1,570		909		1,758		694		238		5,658		0		5,658


Total	142,905		170,974		125,906		87,761		86,236		95,398		709,180		29,611		738,791
Nonowner occupied loans:
Pass	146,342		154,433		107,262		19,054		31,023		59,154		517,268		44,362		561,630
Special Mention	11,825		331		0		0		0		14,253		26,409		0		26,409



Total	158,167		154,764		107,262		19,054		31,023		73,407		543,677		44,362		588,039
Multi-family loans:
Pass	84,678		53,195		36,575		12,286		14,574		9,793		211,101		13,434		224,535
Special Mention	0		0		0		0		22,252		0		22,252		0		22,252



Total	84,678		53,195		36,575		12,286		36,826		9,793		233,353		13,434		246,787
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	47,532		37,035		16,249		10,469		10,454		17,021		138,760		61,774		200,534
Special Mention	0		1,985		2,303		0		180		30		4,498		918		5,416
Substandard	207		0		0		0		0		145		352		0		352


Total	47,739		39,020		18,552		10,469		10,634		17,196		143,610		62,692		206,302
Loans for agricultural production:
Pass	36,238		25,855		4,224		11,072		1,331		4,178		82,898		138,142		221,040
Special Mention	448		8,642		1,171		0		0		0		10,261		8,272		18,533



Total	36,686		34,497		5,395		11,072		1,331		4,178		93,159		146,414		239,573
Other commercial loans:
Pass	6,556		21,111		3,243		1,273		8,592		7,460		48,235		21,145		69,380
Special Mention	0		0		0		0		0		3,798		3,798		0		3,798



Total	6,556		21,111		3,243		1,273		8,592		11,258		52,033		21,145		73,178
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans
Pass	14,635		16,173		5,312		5,903		3,049		3,221		48,293		5,005		53,298

Substandard	0		0		0		0		0		1,274		1,274		0		1,274

Not Rated	45,089		27,738		9,248		5,217		7,628		26,321		121,241		482		121,723
Total	59,724		43,911		14,560		11,120		10,677		30,816		170,808		5,487		176,295
Open end and junior lien loans
Pass	679		379		159		313		0		0		1,530		5,074		6,604

Substandard	0		0		0		0		0		0		0		98		98

Not Rated	21,945		5,624		5,987		3,899		1,653		1,526		40,634		110,523		151,157
Total	22,624		6,003		6,146		4,212		1,653		1,526		42,164		115,695		157,859
Residential construction loans




Not Rated	7,926		1,537		960		138		171		1,125		11,857		0		11,857
Total	7,926		1,537		960		138		171		1,125		11,857		0		11,857
Other consumer loans
Pass	3,401		957		1,523		0		1,155		0		7,036		12,998		20,034

Substandard	36		23		230		0		0		0		289		0		289

Not Rated	21,652		14,931		7,474		5,844		1,890		1,203		52,994		9,227		62,221
Total	25,089		15,911		9,227		5,844		3,045		1,203		60,319		22,225		82,544

TOTAL	$	839,292	$	719,840	$	414,127	$	207,202	$	217,546	$	266,255	$	2,664,262	$	1,623,579	$	4,287,841

Aging of the Recorded Investment in Past Due Loans


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
2022
Commercial and industrial loans:
Working capital lines of credit loans	$	649,529	$	68	$	0	$	649,597	$	1,442	$	0	$	651,039
Non-working capital loans	830,033		39		1		830,073		11,622		727		841,695
Commercial real estate and multi-family residential loans:
Construction and land development loans	515,168		0		0		515,168		0		0		515,168
Owner occupied loans	754,451		0		0		754,451		3,065		1,469		757,516
Nonowner occupied loans	705,662		0		0		705,662		0		0		705,662
Multi-family loans	196,941		0		0		196,941		0		0		196,941
Agri-business and agricultural loans:
Loans secured by farmland	201,033		0		0		201,033		145		0		201,178
Loans for agricultural production	230,989		0		0		230,989		0		0		230,989
Other commercial loans	113,341		0		0		113,341		0		0		113,341
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	211,736		306		122		212,164		293		225		212,457
Open end and junior lien loans	176,758		436		0		177,194		188		188		177,382
Residential construction loans	19,170		0		0		19,170		0		0		19,170
Other consumer loans	87,333		316		0		87,649		209		6		87,858
Total	$	4,692,144	$	1,165	$	123	$	4,693,432	$	16,964	$	2,615	$	4,710,396


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
2021
Commercial and industrial loans:
Working capital lines of credit loans	$	652,903	$	24	$	0	$	646,961	$	5,966	$	5,200	$	652,927
Non-working capital loans	735,658		1		0		731,063		4,596		229		735,659
Commercial real estate and multi-family residential loans:
Construction and land development loans	378,030		0		0		378,030		0		0		378,030
Owner occupied loans	738,791		0		0		735,157		3,634		2,129		738,791
Nonowner occupied loans	588,039		0		0		588,039		0		0		588,039
Multi-family loans	246,787		0		0		246,787		0		0		246,787
Agri-business and agricultural loans:
Loans secured by farmland	206,302		0		0		205,967		335		0		206,302
Loans for agricultural production	239,573		0		0		239,573		0		0		239,573
Other commercial loans	73,178		0		0		73,178		0		0		73,178
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	175,678		500		117		176,240		55		55		176,295
Open end and junior lien loans	157,729		130		0		157,761		98		98		157,859
Residential construction loans	11,857		0		0		11,857		0		0		11,857
Other consumer loans	82,472		72		0		82,255		289		0		82,544
Total	$	4,286,997	$	727	$	117	$	4,272,868	$	14,973	$	7,711	$	4,287,841

Amortized Cost Basis of Collateral Dependent Loans

The following tables present the amortized cost basis of collateral dependent loans by class of loan as of December 31, 2022 and 2021:


(dollars in thousands)	Real Estate		General Business Assets		Other		Total
2022
Commercial and industrial loans:
Working capital lines of credit loans	$	50	$	5,402	$	0	$	5,452
Non-working capital loans	544		18,109		229		18,882
Commercial real estate and multi-family residential loans:
Owner occupied loans	413		1,491		1,161		3,065
Nonowner occupied loans	0		0		0		0
Agri-business and agricultural loans:
Loans secured by farmland	0		145		0		145
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,030		0		0		2,030
Open end and junior lien loans	188		0		0		188
Other consumer loans	0		0		7		7
Total	$	3,225	$	25,147	$	1,397	$	29,769


(dollars in thousands)	Real Estate		General Business Assets		Other		Total
2021
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	5,966	$	0	$	5,966
Non-working capital loans	1,606		9,475		229		11,310
Commercial real estate and multi-family residential loans:
Owner occupied loans	1,435		1,505		1,161		4,101
Nonowner occupied loans	0		0		0		0
Agri-business and agricultural loans:
Loans secured by farmland	190		145		0		335
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	3,081		0		0		3,081
Open end and junior lien loans	98		0		0		98
Other consumer loans	0		0		59		59
Total	$	6,410	$	17,091	$	1,449	$	24,950

Troubled Debt Restructuring


(dollars in thousands)	December 31, 2021
Accruing troubled debt restructured loans	$	5,121
Nonaccrual troubled debt restructured loans	6,218
Total troubled debt restructured loans	$	11,339

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2021:


						Modified Repayment Terms
(dollars in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Extension Period or Range (in months)
Troubled Debt Restructurings
Consumer 1-4 family loans:
Closed end first mortgage loans	2	$	217	$	217	2	172-204
Total	2	$	217	$	217	2	172-204

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2020:


						Modified Repayment Terms
(dollars in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Extension Period or Range (in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Working capital lines of credit loans	1	$	250	$	315	1	0
Non-working capital lines of credit loans	2	4,288		3,691		2	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	1	1,528		1,527		1	0
Total	4	$	6,066	$	5,533	4	0

Loans Individually Evaluated for Impairment

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2020:


(dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	375	$	0	$	0
Non-working capital loans	816		21		21
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,156		13		12
Agri-business and agricultural loans:
Loans secured by farmland	283		0		0
Loans for agricultural production	4		0		0
Consumer 1-4 family loans:
Closed end first mortgage loans	291		3		2
Open end and junior lien loans	49		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	2,433		0		0
Non-working capital loans	11,579		287		287
Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans	3,156		30		30
Agri-business and agricultural loans:
Loans secured by farmland	147		0		0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,557		36		33
Open end and junior lien loans	481		0		0
Residential construction loans	35		0		0
Other consumer loans	0		0		0
Total	$	23,362	$	390	$	385

FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis

The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021:


	2022
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
U.S. Treasury securities	$	3,034	$	0	$	0	$	3,034
U.S. government sponsored agency securities	0		126,961		0		126,961
Mortgage-backed securities: residential	0		492,308		0		492,308

State and municipal securities	0		561,150		2,075		563,225
Total Available-for-Sale Securities	3,034		1,180,419		2,075		1,185,528
Mortgage banking derivative	0		43		0		43
Interest rate swap derivative	0		36,920		0		36,920
Total assets	$	3,034	$	1,217,382	$	2,075	$	1,222,491

Liabilities:

Interest rate swap derivative	$	0	$	36,921	$	0	$	36,921
Total liabilities	$	0	$	36,921	$	0	$	36,921


	2021
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
U.S. Treasury securities	$	900	$	0	$	0	$	900
U.S. government sponsored agency securities	0		143,452		0		143,452
Mortgage-backed securities: residential	0		486,676		0		486,676
Mortgage-backed securities: commercial	0		523		0		523
State and municipal securities	0		764,964		2,043		767,007
Total Available-for-Sale Securities	900		1,395,615		2,043		1,398,558
Mortgage banking derivative	0		398		0		398
Interest rate swap derivative	0		14,309		0		14,309
Total assets	$	900	$	1,410,322	$	2,043	$	1,413,265

Liabilities:
Mortgage banking derivative	$	0	$	2	$	0	$	2
Interest rate swap derivative	0		14,329		0		14,329
Total liabilities	$	0	$	14,331	$	0	$	14,331

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

The tables below present the amount of assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021:


	2022
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Collateral dependent loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	3,178	$	3,178
Non-working capital loans	0		0		8,354		8,354
Commercial real estate and multi-family residential loans:
Owner occupied loans	0		0		425		425
Agri-business and agricultural loans:
Loans secured by farmland	0		0		35		35




Total collateral dependent loans	$	0	$	0	$	11,992	$	11,992
Other real estate owned	0		0		100		100
Total assets	$	0	$	0	$	12,092	$	12,092


	2021
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Collateral dependent loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	247	$	247
Non-working capital loans	0		0		5,095		5,095
Commercial real estate and multi-family residential loans:

Owner occupied loans	0		0		791		791
Agri-business and agricultural loans:
Loans secured by farmland	0		0		231		231




Total collateral dependent loans	$	0	$	0	$	6,364	$	6,364
Other real estate owned	0		0		196		196
Total assets	$	0	$	0	$	6,560	$	6,560

Schedule of Fair Value Measured on Nonrecurring Basis Valuation Techniques

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2022:

(dollars in thousands)

Fair Value

Valuation Methodology

Unobservable Inputs

Average

Range of Inputs

Collateral dependent loans:

Commercial and industrial

11,532

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

62%

29%-99%

Collateral dependent loans:

Commercial real estate and multi-family residential

425

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

57%

37%-76%

Collateral dependent loans:

Agri-business and agricultural

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

76%

Other real estate owned

100

Appraisals

Discount to reflect current market conditions and ultimate collectability

68%

NOTE 5 – FAIR VALUE (continued)

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2021:

(dollars in thousands)

Fair Value

Valuation Methodology

Unobservable Inputs

Average

Range of Inputs

Collateral dependent loans:

Commercial and industrial

5,342

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

65%

22%-99%

Collateral dependent loans:

Commercial real estate

791

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

51%

34%-68%

Collateral dependent loans:

Agri-business and agricultural

231

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

35%

3% - 68%

Other real estate owned

196

Appraisals

Discount to reflect current market conditions and ultimate collectability

38%

Schedule of Fair Values and the Related Carrying Values of Financial Instruments


	2022
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	130,282	$	129,069	$	1,213	$	0	$	130,282
Securities available-for-sale	1,185,528		3,034		1,180,419		2,075		1,185,528
Securities held-to-maturity	128,242		0		111,029		0		111,029
Real estate mortgages held-for-sale	357		0		372		0		372
Loans, net	4,637,790		0		0		4,454,678		4,454,678
Mortgage banking derivative	43		0		43		0		43
Interest rate swap derivative	36,920		0		36,920		0		36,920
Federal Reserve and Federal Home Loan Bank Stock	15,795		N/A		N/A		N/A		N/A
Accrued interest receivable	27,994		0		9,598		18,396		27,994
Financial Liabilities:
Certificates of deposit	626,186		0		621,206		0		621,206
All other deposits	4,834,434		4,834,434		0		0		4,834,434
Federal Funds purchased	22,000		22,000		0		0		22,000
Federal Home Loan Bank advances	275,000		275,000		0		0		275,000

Interest rate swap derivative	36,921		0		36,921		0		36,921
Standby letters of credit	249		0		0		249		249
Accrued interest payable	3,186		486		2,700		0		3,186

NOTE 5 – FAIR VALUE (continued)


	2021
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	683,240	$	681,286	$	1,954	$	0	$	683,240
Securities available-for-sale	1,398,558		900		1,395,615		2,043		1,398,558
Real estate mortgages held-for-sale	7,470		0		7,634		0		7,634
Loans, net	4,220,068		0		0		4,144,000		4,144,000
Mortgage banking derivative	398		0		398		0		398
Interest rate swap derivative	14,309		0		14,309		0		14,309
Federal Reserve and Federal Home Loan Bank Stock	13,772		N/A		N/A		N/A		N/A
Accrued interest receivable	17,674		0		7,689		9,985		17,674
Financial Liabilities:
Certificates of deposit	829,518		0		833,617		0		833,617
All other deposits	4,905,889		4,905,889		0		0		4,905,889

Federal Home Loan Bank advances	75,000		0		66,118		0		66,118
Mortgage banking derivative	2		0		2		0		2
Interest rate swap derivative	14,329		0		14,329		0		14,329
Standby letters of credit	272		0		0		272		272
Accrued interest payable	2,619		84		2,535		0		2,619

LAND, PREMISES AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Summary of Land, Premises And Equipment

Land, premises and equipment and related accumulated depreciation were as follows at December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Land	$	12,472	$	12,472
Premises and improvements	61,185		58,716
Equipment and furniture	37,460		39,278
Total cost	111,117		110,466
Less accumulated depreciation	53,020		51,157
Land, premises and equipment, net	$	58,097	$	59,309

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

Schedule of Certain Deposits

The following table details total deposits as of December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Non-interest bearing demand deposits	$	1,736,761	$	1,895,481
Savings and transaction accounts:
Savings deposits	403,773		409,343
Interest bearing demand deposits	2,693,900		2,601,065
Time deposits:
Other time deposits	170,759		202,395
Deposits of $100,000 to $250,000	185,194		227,606
Deposits of $250,000 or more	270,233		399,517
Total deposits	$	5,460,620	$	5,735,407

Schedule of Deposit Maturities

At December 31, 2022, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Maturing in 2023	$	379,460
Maturing in 2024	206,081
Maturing in 2025	15,132
Maturing in 2026	12,583
Maturing in 2027	12,546
Thereafter	384
Total time deposits	$	626,186

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Short-Term Debt

The following table details outstanding advances with the Federal Home Loan Bank ("FHLB") of Indianapolis for the years ended December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
FHLB of Indianapolis Bullet Advance, 4.21%, Due January 5, 2023	$	275,000	$	0
FHLB of Indianapolis Putable Advance, 0.39%, Due March 4, 2030, Called June 6, 2022	0		75,000
Total FHLB advances	$	275,000	75,000

PENSION AND OTHER POSTRETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Schedule of Changes in Projected Benefit Obligations and Plan Assets

Information as to the Company’s employee benefit plans at December 31, 2022 and 2021 is as follows:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2022		2021		2022		2021
Change in benefit obligation:
Beginning benefit obligation	$	2,298	$	2,710	$	867	$	968
Interest cost	53		52		20		18
Actuarial (gain) loss	(611)		(153)		(52)		13
Benefits paid	(194)		(311)		(135)		(132)
Ending benefit obligation	1,546		2,298		700		867

Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets	2,303		2,349		848		879
Actual return	(289)		265		(107)		101
Employer contribution	0		0		0		0
Benefits paid	(194)		(311)		(135)		(132)
Ending plan assets	1,820		2,303		606		848
Funded status at end of year	$	274	$	5	$	(94)	$	(19)

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the consolidated balance sheets consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2022		2021		2022		2021
Funded status included in other liabilities	$	274	$	5	$	(94)	$	(19)

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2022		2021		2022		2021
Net actuarial loss	$	538	$	852	$	487	$	431

Schedule of Components of Net Periodic Benefit Cost

Net period benefit cost and other amounts recognized in other comprehensive income (loss) include the following:


	Pension Benefits						SERP Benefits
(dollars in thousands)	2022		2021		2020		2022		2021		2020
Net pension expense:
Service cost	$	0	$	0	$	0	$	0	$	0	$	0
Interest cost	53		52		75		20		18		27
Expected return on plan assets	(130)		(133)		(140)		(45)		(47)		(51)
Recognized net actuarial (gain) loss	99		160		171		45		82		80
Settlement cost	23		65		115		0		0		0
Net pension expense	$	45	$	144	$	221	$	20	$	53	$	56

Net (gain) loss	$	(215)	$	(350)	$	69	$	100	$	(40)	$	36
Amortization of net loss	(99)		(160)		(171)		(45)		(82)		(80)
Total recognized in other comprehensive income (loss)	(314)		(510)		(102)		55		(122)		(44)
Total recognized in net pension expense and other comprehensive income (loss)	$	(269)	$	(366)	$	119	$	75	$	(69)	$	12

Schedule of Assumptions Used in Calculating the Net Benefit Obligation


	Pension Benefits						SERP Benefits
	2022		2021		2020		2022		2021		2020
The following assumptions were used in calculating the net benefit obligation:

Weighted average discount rate	5.03	%	2.49	%	2.08	%	5.03	%	2.49	%	2.08	%
Rate of increase in future compensation	N/A		N/A		N/A		N/A		N/A		N/A
Lump sum assumed interest rates First 5 years	5.10	%	0.87	%	0.53	%	N/A		N/A		N/A
Next 15 years	5.83	%	2.74	%	2.31	%	N/A		N/A		N/A
All future years	5.68	%	3.16	%	3.09	%	N/A		N/A		N/A

The following assumptions were used in calculating the net pension expense:

Weighted average discount rate	2.49	%	2.08	%	2.98	%	2.49	%	2.08	%	2.98	%
Rate of increase in future compensation	N/A		N/A		N/A		N/A		N/A		N/A
Expected long-term rate of return	6.50	%	6.50	%	6.50	%	6.50	%	6.50	%	6.50	%

Schedule of Allocation of Plan Assets

The Company’s pension plan asset allocation at year end 2022 and 2021, target allocation for 2023, and expected long-term rate of return by asset category are as follows:


	Target Allocation				Percentage of Plan Assets at Year End				Weighted Average Expected Long-Term Rate of Return
Asset Category	2023				2022		2021
Equity securities	55	-	65	%	60	%	61	%	8.85	%
Debt securities	35	-	45	%	39	%	37	%	3.00	%
Other	5	-	10	%	1	%	2	%	0.10	%
Total					100	%	100	%	6.50	%

The Company’s SERP plan asset allocation at year end 2022 and 2021, target allocation for 2023, and expected long-term rate of return by asset category are as follows:


	Target Allocation				Percentage of Plan Assets at Year End				Weighted Average Expected Long-Term Rate of Return
Asset Category	2023				2022		2021
Equity securities	55	-	65	%	62	%	59	%	8.85	%
Debt securities	35	-	45	%	35	%	36	%	3.00	%
Other	5	-	10	%	3	%	5	%	0.10	%
Total					100	%	100	%	6.50	%

Schedule Of Fair Values Of Pension Plan and Postretirement Plan Assets By Asset Category

The fair values of the Company’s pension plan assets at December 31, 2022, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	718	$	718	$	0	$	0
Equity securities - US mid cap stock mutual funds	43		43		0		0
Equity securities - US small cap stock mutual funds	131		131		0		0
Equity securities - international stock mutual funds	158		158		0		0
Equity securities - emerging markets stock mutual funds	34		34		0		0
Debt securities - intermediate term bond mutual funds	232		232		0		0
Debt securities - short term bond mutual funds	484		484		0		0
Cash - money market account	20		20		0		0
Total	$	1,820	$	1,820	$	0	$	0

The fair values of the Company’s pension plan assets at December 31, 2021, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	923	$	923	$	0	$	0
Equity securities - US mid cap stock mutual funds	104		104		0		0
Equity securities - US small cap stock mutual funds	106		106		0		0
Equity securities - international stock mutual funds	193		193		0		0
Equity securities - emerging markets stock mutual funds	73		73		0		0
Debt securities - intermediate term bond mutual funds	273		273		0		0
Debt securities - short term bond mutual funds	572		572		0		0
Cash - money market account	59		59		0		0
Total	$	2,303	$	2,303	$	0	$	0

The fair values of the Company’s SERP assets at December 31, 2022, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	249	$	249	$	0	$	0
Equity securities - US mid cap stock mutual funds	16		16		0		0
Equity securities - US small cap stock mutual funds	43		43		0		0
Equity securities - emerging markets stock mutual funds	12		12		0		0
Equity securities - international stock mutual funds	57		57		0		0
Debt securities - intermediate term bond mutual funds	63		63		0		0
Debt securities - short term bond mutual funds	149		149		0		0
Cash - money market account	17		17		0		0
Total	$	606	$	606	$	0	$	0

The fair values of the Company’s SERP assets at December 31, 2021, by asset category are as follows:


Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	327	$	327	$	0	$	0
Equity securities - US mid cap stock mutual funds	38		38		0		0
Equity securities - US small cap stock mutual funds	38		38		0		0
Equity securities - emerging markets stock mutual funds	27		27		0		0
Equity securities - international stock mutual funds	71		71		0		0
Debt securities - intermediate term bond mutual funds	85		85		0		0
Debt securities - short term bond mutual funds	222		222		0		0
Cash - money market account	40		40		0		0
Total	$	848	$	848	$	0	$	0

Schedule of Expected Benefit Payments

The following benefit payments are expected to be paid over the next ten years:


Plan Year	Pension Benefits		SERP Benefits
(dollars in thousands)
2023	$	198	$	130
2024	168		122
2025	177		112
2026	218		101
2027	141		90
2028-2032	544		262

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Income tax expense for the years ended December 31, 2022, 2021 and 2020 consisted of the following:


(dollars in thousands)	2022		2021		2020
Current federal	$	22,825	$	21,329	$	20,032
Deferred federal	(2,327)		(1,249)		(1,688)

Current state	1,297		1,892		1,484
Deferred state	(448)		(261)		(289)
Total income tax expense	$	21,347	$	21,711	$	19,539

Schedule of Differences In Taxes From Continuing Operations

The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes were as follows:


(dollars in thousands)	2022		2021		2020
Income taxes at statutory federal rate of 21%	$	26,284	$	24,663	$	21,814
Increase (decrease) in taxes resulting from:
Tax exempt income	(4,438)		(2,822)		(1,925)
Nondeductible expense	159		116		117
State income tax, net of federal tax effect	671		1,288		944
Captive insurance premium income	(417)		(303)		(227)
Tax credits	(586)		(578)		(540)
Bank owned life insurance	(78)		(596)		(595)
Long-term incentive plan and deferred compensation	(530)		(274)		(58)
Nondeductible compensation expense	181		156		0
Other	101		61		9
Total income tax expense	$	21,347	$	21,711	$	19,539

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2022 and 2021 consisted of the following:


(dollars in thousands)	2022		2021
Deferred tax assets:
Bad debts	$	18,561	$	17,321
Pension and deferred compensation liability	2,272		2,351
Nonaccrual loan interest	256		600
Long-term incentive plan	2,894		1,896
Lease liability	1,354		1,078
Deferred loan fees	572		771
Accrued legal reserve	819		0
Other	1,130		191
	27,858		24,208
Deferred tax liabilities:
Depreciation	4,257		4,279
Loan servicing rights	694		717
State taxes	786		679
Intangible assets	1,270		1,270
REIT spillover dividend	1,290		1,180
Prepaid expenses	988		952
Lease right of use	1,354		1,078
Other	585		194
	11,224		10,349
Valuation allowance	0		0
Net deferred tax asset	$	16,634	$	13,859

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Related Party Transactions

Loans to principal officers, directors, and their affiliates as of December 31, 2022 and 2021 were as follows:


(dollars in thousands)	2022		2021
Beginning balance	$	99,865	$	104,694
New loans and advances	54,085		74,115
Effect of changes in related parties	(10,463)		(62)
Repayments and renewals	(30,052)		(78,882)
Ending balance	$	113,435	$	99,865

STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Restricted Stock Awards and Units

A summary of the changes in the Company’s non-vested shares for the year follows:


Nonvested Shares	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2022	1,500	$	44.10
Granted	37,957	76.02
Vested	(15,876)	72.84
Forfeited	(516)	76.33
Nonvested at December 31, 2022	23,065	$	76.13

Schedule of Nonvested Performance-based Units

Shares granted below include the number of shares assumed granted based on actual performance criteria of the 2022-2024, 2021-2023 and 2020-2022 Long-Term Incentive Plans at December 31, 2022.


Nonvested Shares	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2022	271,770	$	49.83
Granted, net	92,713	72.80
Vested	(53,670)	43.44
Forfeited	(6,192)	57.45
Nonvested at December 31, 2022	304,621	$	57.79

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)

12 Months Ended

Dec. 31, 2022

Capital Requirements and Restrictions On Retained Earnings [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

There have been no conditions or events since that notification that management believes have changed the Company and the Bank’s category.


	Actual				Minimum Required For Capital Adequacy Purposes				For Capital Adequacy Purposes Plus Capital Conservation Buffer				Minimum "Required" to Be "Well" Capitalized Under "Prompt" Corrective Action Regulations
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2022
Total Capital (to Risk Weighted Assets)
Consolidated	$	821,008	15.07	%	$	435,786	8.00	%	$	571,969	N/A		N/A		N/A
Bank	$	801,044	14.74	%	$	434,758	8.00	%	$	570,620	10.50	%	$	543,448	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	752,751	13.82	%	$	326,840	6.00	%	$	463,023	N/A		N/A		N/A
Bank	$	732,966	13.49	%	$	326,069	6.00	%	$	461,930	8.50	%	$	434,758	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	752,751	13.82	%	$	245,130	4.50	%	$	381,313	N/A		N/A		N/A
Bank	$	732,966	13.49	%	$	244,551	4.50	%	$	380,413	7.00	%	$	353,241	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	752,751	11.50	%	$	261,859	4.00	%	$	261,859	N/A		N/A		N/A
Bank	$	732,966	11.22	%	$	261,222	4.00	%	$	261,222	4.00	%	$	326,527	5.00	%

As of December 31, 2021
Total Capital (to Risk Weighted Assets)
Consolidated	$	744,421	15.35	%	$	388,020	8.00	%	$	509,276	N/A		N/A		N/A
Bank	$	726,091	15.01	%	$	387,118	8.00	%	$	508,093	10.50	%	$	483,898	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	683,754	14.10	%	$	291,015	6.00	%	$	412,271	N/A		N/A		N/A
Bank	$	665,424	13.75	%	$	290,339	6.00	%	$	411,313	8.50	%	$	387,118	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	683,754	14.10	%	$	218,261	4.50	%	$	339,518	N/A		N/A		N/A
Bank	$	665,424	13.75	%	$	217,754	4.50	%	$	338,729	7.00	%	$	314,534	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	683,754	10.73	%	$	254,898	4.00	%	$	254,898	N/A		N/A		N/A
Bank	$	665,424	10.46	%	$	254,425	4.00	%	$	254,425	4.00	%	$	318,030	5.00	%

OFFSETTING ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

OFFSETTING ASSETS AND LIABILITIES

Schedule of Offsetting Assets And Liability


	2022
	Gross Amounts of Recognized Assets/ Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
(dollars in thousands)							Financial Instruments		Cash Collateral Position		Net Amount
Assets
Interest Rate Swap Derivatives	$	36,920	$	0	$	36,920	$	0	$	(34,185)	$	2,735
Total Assets	$	36,920	$	0	$	36,920	$	0	$	(34,185)	$	2,735
Liabilities
Interest Rate Swap Derivatives	$	36,921	$	0	$	36,921	$	0	$	(90)	$	36,831
Total Liabilities	$	36,921	$	0	$	36,921	$	0	$	(90)	$	36,831


	2021
	Gross Amounts of Recognized Assets/ Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
(dollars in thousands)							Financial Instruments		Cash Collateral Position		Net Amount
Assets
Interest Rate Swap Derivatives	$	14,309	$	0	$	14,309	$	0	$	(2,255)	$	12,054
Total Assets	$	14,309	$	0	$	14,309	$	0	$	(2,255)	$	12,054
Liabilities
Interest Rate Swap Derivatives	$	14,329	$	0	$	14,329	$	0	$	(7,995)	$	6,334
Total Liabilities	$	14,329	$	0	$	14,329	$	0	$	(7,995)	$	6,334

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Financial Instruments Commitments

These financial instruments include commitments to make loans and open-ended revolving lines of credit. Amounts as of the years ended December 31, 2022 and 2021, were as follows:


	2022				2021
(dollars in thousands)	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commercial loan lines of credit	$	140,022	$	2,129,211	$	79,792	$	1,850,719
Standby letters of credit	0		48,406		0		55,336
Real estate mortgage loans	377		5,668		7,906		14,216
Real estate construction mortgage loans	2,212		9,043		2,402		3,213
Home equity mortgage open-ended revolving lines	0		341,622		0		306,124
Consumer loan open-ended revolving lines	0		25,916		0		23,287
Total	$	142,611	$	2,559,866	$	90,100	$	2,252,895

Schedule Of Rate Of Interest Percentage Financial Instruments


	2022		2021
	Fixed Rate	Variable Rate	Fixed Rate	Variable Rate
Commercial loan	1.99-14.50%	1.63-13.00%	1.99-14.50%	1.11-10.00%
Real estate mortgage loan	0.00-7.00%	3.13-12.50%	2.50-3.75%	3.00-8.25%
Consumer loan open-ended revolving line	15.00%	7.00-15.00%	15.00%	3.25-15.00%

PARENT COMPANY STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Balance Sheet

CONDENSED BALANCE SHEETS


	December 31,
(dollars in thousands)	2022		2021
ASSETS
Deposits with Lake City Bank	$	386	$	834
Deposits with other depository institutions	1,954		2,459
Cash	2,340		3,293
Investments in banking subsidiary	549,031		686,487
Investments in other subsidiaries	3,845		3,468
Other assets	13,819		11,830
Total assets	$	569,035	$	705,078
LIABILITIES
Dividends payable and other liabilities	$	237	$	261

STOCKHOLDERS’ EQUITY	568,798		704,817
Total liabilities and stockholders’ equity	$	569,035	$	705,078

Schedule of Condensed of Income and Comprehensive Income Statement

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)


	Years Ended December 31,
(dollars in thousands)	2022		2021		2020
Dividends from Lake City Bank	$	40,590	$	47,355	$	32,079
Dividends from non-bank subsidiaries	1,300		1,035		1,300
Other income	1		3		0
Interest expense	0		(7)		0
Miscellaneous expense	(8,795)		(8,133)		(3,935)
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES	33,096		40,253		29,444
Income tax benefit	2,770		2,360		1,065
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES	35,866		42,613		30,509
Equity in undistributed income of subsidiaries	67,951		53,120		53,828
NET INCOME	$	103,817	$	95,733	$	84,337
COMPREHENSIVE INCOME (LOSS)	$	(101,199)	$	84,082	$	100,022

Schedule of Condensed Cash Flow Statement

CONDENSED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(dollars in thousands)	2022		2021		2020
Cash flows from operating activities:
Net income	$	103,817	$	95,733	$	84,337
Adjustments to net cash from operating activities:
Equity in undistributed income of subsidiaries	(67,951)		(53,120)		(53,828)
Other changes	6,157		5,177		1,257
Net cash from operating activities	42,023		47,790		31,766
Cash flows from financing activities

Proceeds from (payments on) short-term borrowings	0		(10,500)		10,500
Payments related to equity incentive plans	(1,780)		(1,914)		(2,137)
Purchase of treasury stock	(579)		(559)		(10,547)
Sales of treasury stock	221		115		119
Dividends paid	(40,838)		(34,640)		(30,566)
Cash flows from financing activities	(42,976)		(47,498)		(32,631)
Net increase (decrease) in cash and cash equivalents	(953)		292		(865)
Cash and cash equivalents at beginning of the year	3,293		3,001		3,866
Cash and cash equivalents at end of the year	$	2,340	$	3,293	$	3,001

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares

Following are the factors used in the earnings per share computations:


(dollars in thousand except share and per share data)	2022		2021		2020
Basic earnings per common share:
Net income	$	103,817	$	95,733	$	84,337
Weighted-average common shares outstanding	25,528,328		25,475,994		25,469,242
Basic earnings per common share	$	4.07	$	3.76	$	3.31
Diluted earnings per common share:
Net income	$	103,817	$	95,733	$	84,337
Weighted-average common shares outstanding for basic earnings per common share	25,528,328		25,475,994		25,469,242
Add: Dilutive effect of assumed exercises of stock options and awards	184,210		144,111		104,699
Average shares and dilutive potential common shares	25,712,538		25,620,105		25,573,941
Diluted earnings per common share	$	4.04	$	3.74	$	3.30

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2022

OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income

The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for December 31, 2022 and 2021, all shown net of tax:


(dollars in thousands)	Unrealized Gains and (Losses) on Available-for-Sales Securities		Defined Benefit Pension Items		Total
Balance at January 1, 2022	$	17,056	$	(963)	$	16,093
Other comprehensive income (loss) before reclassification	(206,392)		86		(206,306)
Amounts reclassified from accumulated other comprehensive income (loss)	1,182		108		1,290
Net current period other comprehensive income (loss)	(205,210)		194		(205,016)
Balance at December 31, 2022	$	(188,154)	$	(769)	$	(188,923)


(dollars in thousands)	Unrealized Gains and (Losses) on Available-for-Sales Securities		Defined Benefit Pension Items		Total
Balance at January 1, 2021	$	29,182	$	(1,438)	$	27,744
Other comprehensive income (loss) before reclassification	(11,496)		293		(11,203)
Amounts reclassified from accumulated other comprehensive income (loss)	(630)		182		(448)
Net current period other comprehensive income (loss)	(12,126)		475		(11,651)
Balance at December 31, 2021	$	17,056	$	(963)	$	16,093

Schedule of Reclassification Out of Accumulated Other comprehensive income

Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2022, 2021 and 2020 are as follows:


Details about Accumulated Other Comprehensive Income Components	Amount Reclassified From Accumulated Other Comprehensive Income (Loss)		Affected Line Item in the Statement Where Net Income is Presented
2022
(dollars in thousands)
Amortization of unrealized losses on held-to-maturity securities	$	(1,518)	Interest income
Realized gains and (losses) on available-for-sale securities	21		Net securities gains
Tax effect	315		Income tax expense
Subtotal	(1,182)		Net of tax
Amortization of defined benefit pension items(1)	(144)		Salaries and employee benefits
Tax effect	36		Income tax expense
Subtotal	(108)		Net of tax
Total reclassifications for the period	$	(1,290)	Net income


2021
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	797	Net securities gains
Tax effect	(167)		Income tax expense
Subtotal	630		Net of tax
Amortization of defined benefit pension items(1)	(242)		Salaries and employee benefits
Tax effect	60		Income tax expense
Subtotal	(182)		Net of tax
Total reclassifications for the period	$	448	Net income


2020
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	433	Net securities gains
Tax effect	(91)		Income tax expense
Subtotal	342		Net of tax
Amortization of defined benefit pension items(1)	(251)		Salaries and employee benefits
Tax effect	63		Income tax expense
Subtotal	(188)		Net of tax
Total reclassifications for the period	$	154	Net income

(1)Included in the computation of net pension plan expense as more fully discussed in Note 10 – Pension and Other Postretirement Plans.

SELECTED QUARTERLY DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2022

Selected Quarterly Financial Information [Abstract]

Schedule of Quarterly Financial Information


2022	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
Interest income	$	75,353	$	62,558	$	53,622	$	48,034
Interest expense	18,516		10,066		4,944		3,154
Net interest income	56,837		52,492		48,678		44,880
Provision for credit losses	8,958		0		0		417
Net interest income after provision	47,879		52,492		48,678		44,463
Noninterest income	10,519		10,164		10,492		10,687
Noninterest expense	27,434		27,894		27,913		26,969
Income tax expense	4,987		6,237		5,584		4,539
Net income	$	25,977	$	28,525	$	25,673	$	23,642

Basic earnings per common share	$	1.02	$	1.12	$	1.00	$	0.93
Diluted earnings per common share	$	1.01	$	1.11	$	1.00	$	0.92


2021	4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
Interest income	$	48,322	$	49,295	$	47,625	$	47,977
Interest expense	3,315		3,554		3,964		4,298
Net interest income	45,007		45,741		43,661		43,679
Provision for credit losses	0		1,300		(1,700)		1,477
Net interest income after provision	45,007		44,441		45,361		42,202
Noninterest income	9,709		11,114		11,340		12,557
Noninterest expense	24,926		25,967		26,648		26,746
Income tax expense	5,507		5,469		5,705		5,030
Net income	$	24,283	$	24,119	$	24,348	$	22,983

Basic earnings per common share	$	0.95	$	0.95	$	0.96	$	0.90
Diluted earnings per common share	$	0.95	$	0.94	$	0.95	$	0.90

LEASES (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Maturity Analysis of the Operating Lease Liabilities

The following is a maturity analysis of the operating lease liabilities as of December 31, 2022:


Years ending December 31, (in thousands)	Operating Lease Obligation
2023	$	727
2024	744
2025	756
2026	731
2027	753
2028 and thereafter	2,185
Total undiscounted lease payments	5,896
Less imputed interest	(600)
Lease liability	$	5,296
Right-of-use asset	$	5,296

Schedule of Lease Cost


	Year Ended		Year Ended		Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Lease cost
Operating lease cost	$	667	$	536	$	536
Short-term lease cost	22		24		24
Total lease cost	$	689	$	560	$	560


Other information
Operating cash outflows from operating leases	$	667		$	536		$	536
Weighted-average remaining lease term - operating leases	7.3			7.9			8.8
Weighted average discount rate - operating leases	2.5		%	2.8		%	2.8		%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 31, 2022 USD ($) branchOffice county segment shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($) $ / shares shares
Summary Of Significant Accounting Policies [Line Items]
Number of branch offices \| branchOffice	52
Number of counties where branch offices are located \| county	15
Investment loans excluding accrued interest	$ 18,400,000	$ 10,000,000.0
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Interest Receivable	Interest Receivable
Threshold for loans individually analyzed for impairment	$ 250,000
Investment in limited partnerships	12,200,000	$ 9,400,000
Commitment to fund limited partnerships	3,900,000	2,200,000
Balance of real estate owned	100,000	196,000
Loan servicing fees	$ 1,200,000	$ 1,200,000	$ 1,200,000
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Mortgage banking income	Mortgage banking income	Mortgage banking income
Mortgage servicing rights	$ 2,700,000	$ 2,400,000
Unpaid principal balances	364,300,000	375,400,000
Escrow deposit	1,700,000	1,700,000
Bank owned life insurance	108,407,000	97,652,000
Goodwill, Impaired, Accumulated Impairment Loss	$ 0	$ 0	$ 0
Treasury stock (in shares) \| shares	475,902	476,816
Shares purchased under director deferred compensation plan included in treasury stock (in shares) \| shares	186,801	187,715
Repurchased common shares (in shares) \| shares			289,101
Weighted average price (in USD per share) \| $ / shares			$ 34.63
Number of reportable operating segments \| segment	1
Interest Rate Swap
Summary Of Significant Accounting Policies [Line Items]
Notional amount	$ 760,500,000	$ 796,000,000.0
Fair value of interest rate swap asset	36,900,000	14,300,000
Fair value of interest rate swap liability	36,900,000	14,300,000
Amount of risk participation transactions	0	4,600,000
Life Insurance \| Officer
Summary Of Significant Accounting Policies [Line Items]
Bank owned life insurance	102,500,000	91,100,000
Deferred Compensation \| Officer
Summary Of Significant Accounting Policies [Line Items]
Bank owned life insurance	$ 5,900,000	$ 6,600,000
Premises and Improvements \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Useful life	5 years
Premises and Improvements \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Useful life	40 years
Furniture Assets \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Useful life	3 years
Furniture Assets \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Useful life	7 years

SECURITIES - Summary of Available For Sale Securities (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities
Amortized Cost	$ 1,400,783,000	$ 1,376,969,000
Gross Unrealized Gain	224,000	30,244,000
Gross Unrealized Losses	(215,479,000)	(8,655,000)
Allowance for Credit Losses	0	0
Fair Value	1,185,528,000	1,398,558,000
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	128,242,000	0
Allowance for Credit Losses	0
U.S. Treasury securities
Schedule of Available-for-sale Securities
Amortized Cost	3,057,000	900,000
Gross Unrealized Gain	0	0
Gross Unrealized Losses	(23,000)	0
Allowance for Credit Losses	0	0
Fair Value	3,034,000	900,000
U.S. government sponsored agencies
Schedule of Available-for-sale Securities
Amortized Cost	156,184,000	145,858,000
Gross Unrealized Gain	0	39,000
Gross Unrealized Losses	(29,223,000)	(2,445,000)
Allowance for Credit Losses	0	0
Fair Value	126,961,000	143,452,000
Mortgage-backed securities: residential
Schedule of Available-for-sale Securities
Amortized Cost	578,175,000	487,157,000
Gross Unrealized Gain	67,000	4,455,000
Gross Unrealized Losses	(85,934,000)	(4,936,000)
Allowance for Credit Losses	0	0
Fair Value	492,308,000	486,676,000
Mortgage-backed securities: commercial
Schedule of Available-for-sale Securities
Amortized Cost	0	522,000
Gross Unrealized Gain	0	1,000
Gross Unrealized Losses	0	0
Allowance for Credit Losses	0	0
Fair Value	0	523,000
State and municipal securities
Schedule of Available-for-sale Securities
Amortized Cost	663,367,000	742,532,000
Gross Unrealized Gain	157,000	25,749,000
Gross Unrealized Losses	(100,299,000)	(1,274,000)
Allowance for Credit Losses	0	0
Fair Value	563,225,000	$ 767,007,000
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	128,242,000
Gross Unrealized Gain	0
Gross Unrealized Losses	(17,213,000)
Allowance for Credit Losses	0
Fair Value	$ 111,029,000

SECURITIES - Additional Information (Details) - USD ($)	Dec. 31, 2022	Apr. 01, 2022	Dec. 31, 2021
Information related to available for sale securities
Fair value of held-to-maturity securities transferred from available-for sale		$ 127,000,000
Unrealized loss of held-to-maturity securities transferred from available-for sale	$ 22,900,000	24,400,000
Unrealized loss of held-to-maturity securities transferred from available-for sale, net of tax	18,100,000	$ 19,300,000
Available-for-sale Securities pledged as collateral	298,200,000		$ 300,800,000
Debt securities, available-for-sale, allowance for credit loss	0		0
Debt securities, held-to-maturity, allowance for credit loss	0
Accrued interest receivable on available-for-sale and held-to-maturity debt securities	$ 8,900,000		$ 7,400,000
Securities backed by government or investment grade	99.00%

SECURITIES - Schedule of Available For Sale Securities By Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Amortized Cost
Due in one year or less	$ 3,073
Due after one year through five years	6,443
Due after five years through ten years	57,481
Due after ten years	755,611
Total debt securities, gross	822,608
Mortgage-backed securities	578,175
Amortized Cost	1,400,783	$ 1,376,969
Fair Value
Due in one year or less	3,059
Due after one year through five years	6,431
Due after five years through ten years	55,437
Due after ten years	628,293
Total debt securities, gross	693,220
Mortgage-backed securities	492,308
Total debt securities	1,185,528	1,398,558
Amortized Cost
Due in one year or less	0
Due after one year through five years	0
Due after five years through ten years	0
Due after ten years	128,242
Total held-to-maturity securities, gross	128,242
Mortgage-backed securities	0
Amortized cost	128,242
Fair Value
Due in one year or less	0
Due after one year through five years	0
Due after five years through ten years	0
Due after ten years	111,029
Total held-to-maturity securities, gross	111,029
Mortgage-backed securities	0
Fair value	$ 111,029	$ 0

SECURITIES - Schedule of Sales of Securities Available For Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Sales of securities available-for-sale
Proceeds	$ 25,332	$ 13,964	$ 8,018
Gross gains	140	797	433
Gross losses	$ (119)	$ 0	$ 0
Number of securities (in shares)	30	9	17

SECURITIES - Schedule of Available For Sale of Securities Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	$ 455,318	$ 496,891
12 months or more, Fair value	686,704	51,468
Total Fair Value	1,142,022	548,359
Less than 12 Months, Unrealized Losses	53,415	6,714
12 Months or more, Unrealized Losses	162,064	1,941
Total Unrealized Losses	215,479	8,655
U.S. Treasury securities
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	3,034
12 months or more, Fair value	0
Total Fair Value	3,034
Less than 12 Months, Unrealized Losses	23
12 Months or more, Unrealized Losses	0
Total Unrealized Losses	23
U.S. government sponsored agencies
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	8,420	85,968
12 months or more, Fair value	118,541	28,676
Total Fair Value	126,961	114,644
Less than 12 Months, Unrealized Losses	1,350	1,364
12 Months or more, Unrealized Losses	27,873	1,081
Total Unrealized Losses	29,223	2,445
Mortgage-backed securities: residential
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	165,897	272,264
12 months or more, Fair value	323,727	22,792
Total Fair Value	489,624	295,056
Less than 12 Months, Unrealized Losses	18,637	4,076
12 Months or more, Unrealized Losses	67,297	860
Total Unrealized Losses	85,934	4,936
State and municipal securities
Schedule of Available-for-sale Securities
Less than 12 months, Fair Value	277,967	138,659
12 months or more, Fair value	244,436	0
Total Fair Value	522,403	138,659
Less than 12 Months, Unrealized Losses	33,405	1,274
12 Months or more, Unrealized Losses	66,894	0
Total Unrealized Losses	$ 100,299	$ 1,274

SECURITIES - Schedule of Held-to-Maturity of Securities Continuous Unrealized Loss Position (Details) - State and municipal securities $ in Thousands	Dec. 31, 2022 USD ($)
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 Months, Fair Value	$ 0
Less than 12 Months, Unrealized Losses	0
12 Months or Longer, Fair Value	111,029
12 Months or Longer, Unrealized Losses	17,213
Total Fair Value	111,029
Total Unrealized Losses	$ 17,213

SECURITIES - Quantitative Disclosure of Available For Sale of Securities (Details) - position	Dec. 31, 2022	Dec. 31, 2021
Number of securities with unrealized losses [Abstract]
Less than 12 months	372	117
12 months or more	280	8
Total	652	125
U.S. Treasury securities
Number of securities with unrealized losses [Abstract]
Less than 12 months	7
12 months or more	0
Total	7
U.S. government sponsored agencies
Number of securities with unrealized losses [Abstract]
Less than 12 months	1	8
12 months or more	16	5
Total	17	13
Mortgage-backed securities: residential
Number of securities with unrealized losses [Abstract]
Less than 12 months	95	29
12 months or more	41	3
Total	136	32
State and municipal securities
Number of securities with unrealized losses [Abstract]
Less than 12 months	269	80
12 months or more	223	0
Total	492	80

SECURITIES - Quantitative Disclosure of Held to Maturity Securities (Details) - position	Dec. 31, 2022	Dec. 31, 2021
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 months	0	0
12 months or more	41	0
Total	41	0
U.S. Treasury securities
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 months	0
12 months or more	0
Total	0
U.S. government sponsored agencies
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 months	0	0
12 months or more	0	0
Total	0	0
Mortgage-backed securities: residential
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 months	0	0
12 months or more	0	0
Total	0	0
State and municipal securities
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 months	0	0
12 months or more	41	0
Total	41	0

LOANS - Total Loans Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 4,710,396	$ 4,287,841
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, Fee, and Loan in Process	4,713,465	4,291,105
Less: Allowance for credit losses	(72,606)	(67,773)	$ (61,408)	$ (50,652)
Net deferred loan fees	(3,069)	(3,264)
Loans, net	4,637,790	4,220,068
Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	4,217,824	3,863,630
Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	495,641	427,475
Other consumer loans \| Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	88,075	82,755
Commercial and Industrial \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,493,049	1,389,469
Less: Allowance for credit losses	(35,290)	(30,595)	(28,333)	(25,789)
Commercial and Industrial \| Working capital lines of credit loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	650,948	652,861
Commercial and Industrial \| Non-working capital loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	842,101	736,608
Commercial real estate and multi-family residential loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	2,179,094	1,954,846
Commercial real estate and multi-family residential loans \| Construction and land development loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	517,664	379,813
Commercial real estate and multi-family residential loans \| Owner occupied loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	758,091	739,371
Commercial real estate and multi-family residential loans \| Nonowner occupied loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	706,107	588,458
Commercial real estate and multi-family residential loans \| Multi-family loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	197,232	247,204
Agri-business and Agricultural \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	432,088	445,825
Less: Allowance for credit losses	(4,429)	(5,034)	$ (3,043)	$ (3,869)
Agri-business and Agricultural \| Loans secured by farmland \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	201,200	206,331
Agri-business and Agricultural \| Loans for agricultural production \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	230,888	239,494
Other commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	113,341	73,178
Other commercial loans \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	113,593	73,490
Consumer 1-4 Family Mortgage \| Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	407,566	344,720
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans \| Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	212,742	176,561
Consumer 1-4 Family Mortgage \| Open end and junior lien loans \| Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	175,575	156,238
Consumer 1-4 Family Mortgage \| Residential construction and land development loans \| Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 19,249	$ 11,921

LOANS - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Investment loans excluding accrued interest	$ 18,400	$ 10,000
Residential real estate loans in process of foreclosure	$ 306	$ 350

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Post adoption of ASC 326
Beginning balance	$ 67,773	$ 61,408	$ 50,652
Provision for credit losses	9,375	1,077	14,770
Loans charged-off	(5,134)	(5,983)	(5,253)
Recoveries	592	2,221	1,239
Net loans (charged-off) recovered	(4,542)	(3,762)	(4,014)
Ending balance	72,606	67,773	61,408
Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		9,050
Ending balance			9,050
Commercial and Industrial \| Total commercial loans
Post adoption of ASC 326
Beginning balance	30,595	28,333	25,789
Provision for credit losses	8,646	1,966	6,640
Loans charged-off	(4,022)	(5,575)	(4,524)
Recoveries	71	1,559	428
Net loans (charged-off) recovered	(3,951)	(4,016)	(4,096)
Ending balance	35,290	30,595	28,333
Commercial and Industrial \| Total commercial loans \| Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		4,312
Ending balance			4,312
Commercial Real Estate and Multi-family Residential \| Total commercial loans
Post adoption of ASC 326
Beginning balance	26,535	22,907	15,796
Provision for credit losses	1,179	(632)	6,868
Loans charged-off	(597)	(70)	(72)
Recoveries	277	14	315
Net loans (charged-off) recovered	(320)	(56)	243
Ending balance	27,394	26,535	22,907
Commercial Real Estate and Multi-family Residential \| Total commercial loans \| Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		4,316
Ending balance			4,316
Agri-business and Agricultural \| Total commercial loans
Post adoption of ASC 326
Beginning balance	5,034	3,043	3,869
Provision for credit losses	(605)	611	(826)
Loans charged-off	0	0	0
Recoveries	0	320	0
Net loans (charged-off) recovered	0	320	0
Ending balance	4,429	5,034	3,043
Agri-business and Agricultural \| Total commercial loans \| Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		1,060
Ending balance			1,060
Other Commercial \| Total commercial loans
Post adoption of ASC 326
Beginning balance	1,146	416	447
Provision for credit losses	(229)	(211)	(31)
Loans charged-off	0	0	0
Recoveries	0	0	0
Net loans (charged-off) recovered	0	0	0
Ending balance	917	1,146	416
Other Commercial \| Total commercial loans \| Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		941
Ending balance			941
Consumer 1-4 Family Mortgage \| Other consumer loans
Post adoption of ASC 326
Beginning balance	2,866	2,619	2,086
Provision for credit losses	125	(777)	341
Loans charged-off	(42)	(51)	(141)
Recoveries	52	122	333
Net loans (charged-off) recovered	10	71	192
Ending balance	3,001	2,866	2,619
Consumer 1-4 Family Mortgage \| Other consumer loans \| Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		953
Ending balance			953
Other Consumer \| Other consumer loans
Post adoption of ASC 326
Beginning balance	1,147	951	345
Provision for credit losses	155	(72)	959
Loans charged-off	(473)	(287)	(516)
Recoveries	192	206	163
Net loans (charged-off) recovered	(281)	(81)	(353)
Ending balance	1,021	1,147	951
Other Consumer \| Other consumer loans \| Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		349
Ending balance			349
Unallocated
Post adoption of ASC 326
Beginning balance	450	3,139	2,320
Provision for credit losses	104	192	819
Loans charged-off	0	0	0
Recoveries	0	0	0
Net loans (charged-off) recovered	0	0	0
Ending balance	$ 554	450	3,139
Unallocated \| Cumulative Effect, Period of Adoption, Adjustment
Post adoption of ASC 326
Beginning balance		$ (2,881)
Ending balance			$ (2,881)

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) loan borrower	Dec. 31, 2020 USD ($) borrower
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan amount of credit quality analysis	$ 250,000
Loans modified In troubled debt restructured loans		$ 2,200,000
Number of loans modified \| loan		8
Increase in allowance for loan loss		$ (423,000)
Financing receivable, loan portfolio, deferrals, COVID-19		11,000	$ 100,700,000
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower			49
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)			2.20%
Financing receivable, loan portfolio, deferrals, COVID-19, period			90 days
Total commercial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, loan portfolio, deferrals, COVID-19			$ 98,200,000
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower			22
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)			2.30%
Loans under second deferral action			$ 22,800,000
Loans under first deferral action			11,900,000
Loans under third deferral action			41,900,000
Loans under fourth deferral action			24,100,000
Total consumer loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans modified In troubled debt restructured loans		$ 5,800,000
Financing receivable, loan portfolio, deferrals, COVID-19			$ 2,500,000
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower		1	27
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)			0.70%
PPP \| Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans receivable before allowance for credit loss	$ 1,500,000	$ 26,200,000
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower			2
Financing receivable loan portfolio deferrals covid19 loans under fourth deferral action, percentage			90.00%

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Risk Category of Loans by Loan Segment and Origination (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	$ 911,943	$ 839,292
Year Two	653,839	719,840
Year Three	552,202	414,127
Year Four	310,151	207,202
Year Five	126,843	217,546
Prior	297,056	266,255
Term Total	2,852,034	2,664,262
Revolving	1,858,362	1,623,579
Gross loans	4,710,396	4,287,841
Commercial and Industrial \| Working capital lines of credit loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	2,407	3,699
Year Two	2,718	830
Year Three	1,601	3,395
Year Four	300	0
Year Five	0	0
Prior	0	0
Term Total	7,026	7,924
Revolving	644,013	645,003
Gross loans	651,039	652,927
Commercial and Industrial \| Working capital lines of credit loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	2,207	3,699
Year Two	2,718	830
Year Three	1,601	3,360
Year Four	0	0
Year Five	0	0
Prior	0	0
Term Total	6,526	7,889
Revolving	597,108	558,634
Gross loans	603,634	566,523
Commercial and Industrial \| Working capital lines of credit loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Term Total	0	0
Revolving	36,410	60,441
Gross loans	36,410	60,441
Commercial and Industrial \| Working capital lines of credit loans \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	200	0
Year Two	0	0
Year Three	0	35
Year Four	300	0
Year Five	0	0
Prior	0	0
Term Total	500	35
Revolving	10,495	25,928
Gross loans	10,995	25,963
Commercial and Industrial \| Non-working capital loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	287,443	208,363
Year Two	128,642	147,863
Year Three	98,125	81,630
Year Four	48,427	42,975
Year Five	11,611	27,358
Prior	20,633	20,355
Term Total	594,881	528,544
Revolving	246,814	207,115
Gross loans	841,695	735,659
Commercial and Industrial \| Non-working capital loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	272,273	185,374
Year Two	124,600	139,157
Year Three	91,850	79,477
Year Four	47,711	38,899
Year Five	9,981	19,415
Prior	13,670	18,489
Term Total	560,085	480,811
Revolving	240,490	203,794
Gross loans	800,575	684,605
Commercial and Industrial \| Non-working capital loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	448	17,728
Year Two	1,620	0
Year Three	0	225
Year Four	109	979
Year Five	159	2,350
Prior	2,961	1,426
Term Total	5,297	22,708
Revolving	2,153	0
Gross loans	7,450	22,708
Commercial and Industrial \| Non-working capital loans \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	11,831	2,996
Year Two	872	6,948
Year Three	5,021	1,091
Year Four	194	2,534
Year Five	1,351	5,465
Prior	3,979	426
Term Total	23,248	19,460
Revolving	4,171	3,321
Gross loans	27,419	22,781
Commercial and Industrial \| Non-working capital loans \| Not Rated
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	2,891	2,265
Year Two	1,550	1,758
Year Three	1,254	837
Year Four	413	563
Year Five	120	128
Prior	23	14
Term Total	6,251	5,565
Revolving	0	0
Gross loans	6,251	5,565
Commercial Real Estate and Multi-family Residential \| Construction and land development loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	26,889	35,136
Year Two	19,944	30,224
Year Three	14,026	1,276
Year Four	356	998
Year Five	0	0
Prior	0	0
Term Total	61,215	67,634
Revolving	453,953	310,396
Gross loans	515,168	378,030
Commercial Real Estate and Multi-family Residential \| Construction and land development loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	26,889	35,136
Year Two	19,944	30,224
Year Three	14,026	1,276
Year Four	356	998
Year Five	0	0
Prior	0	0
Term Total	61,215	67,634
Revolving	453,953	310,396
Gross loans	515,168	378,030
Commercial Real Estate and Multi-family Residential \| Owner occupied loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	116,924	142,905
Year Two	186,727	170,974
Year Three	141,371	125,906
Year Four	98,172	87,761
Year Five	68,171	86,236
Prior	105,618	95,398
Term Total	716,983	709,180
Revolving	40,533	29,611
Gross loans	757,516	738,791
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	113,656	135,861
Year Two	179,014	169,404
Year Three	139,880	124,117
Year Four	97,353	85,070
Year Five	65,519	78,155
Prior	97,335	93,925
Term Total	692,757	686,532
Revolving	40,533	29,611
Gross loans	733,290	716,143
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	2,960	6,555
Year Two	7,608	0
Year Three	0	880
Year Four	446	933
Year Five	1,491	7,387
Prior	8,054	1,235
Term Total	20,559	16,990
Revolving	0	0
Gross loans	20,559	16,990
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	308	489
Year Two	105	1,570
Year Three	1,491	909
Year Four	373	1,758
Year Five	1,161	694
Prior	229	238
Term Total	3,667	5,658
Revolving	0	0
Gross loans	3,667	5,658
Commercial Real Estate and Multi-family Residential \| Nonowner occupied loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	194,294	158,167
Year Two	136,214	154,764
Year Three	134,661	107,262
Year Four	91,907	19,054
Year Five	15,109	31,023
Prior	64,874	73,407
Term Total	637,059	543,677
Revolving	68,603	44,362
Gross loans	705,662	588,039
Commercial Real Estate and Multi-family Residential \| Nonowner occupied loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	194,294	146,342
Year Two	125,190	154,433
Year Three	134,661	107,262
Year Four	91,907	19,054
Year Five	15,109	31,023
Prior	64,874	59,154
Term Total	626,035	517,268
Revolving	68,603	44,362
Gross loans	694,638	561,630
Commercial Real Estate and Multi-family Residential \| Nonowner occupied loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0	11,825
Year Two	11,024	331
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	14,253
Term Total	11,024	26,409
Revolving	0	0
Gross loans	11,024	26,409
Commercial Real Estate and Multi-family Residential \| Multi-family loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	60,315	84,678
Year Two	25,741	53,195
Year Three	36,929	36,575
Year Four	35,695	12,286
Year Five	2,046	36,826
Prior	28,866	9,793
Term Total	189,592	233,353
Revolving	7,349	13,434
Gross loans	196,941	246,787
Commercial Real Estate and Multi-family Residential \| Multi-family loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	38,460	84,678
Year Two	25,741	53,195
Year Three	36,929	36,575
Year Four	35,695	12,286
Year Five	2,046	14,574
Prior	28,866	9,793
Term Total	167,737	211,101
Revolving	7,349	13,434
Gross loans	175,086	224,535
Commercial Real Estate and Multi-family Residential \| Multi-family loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	21,855	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	22,252
Prior	0	0
Term Total	21,855	22,252
Revolving	0	0
Gross loans	21,855	22,252
Agri-business and Agricultural \| Loans secured by farmland
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	38,604	47,739
Year Two	28,684	39,020
Year Three	31,417	18,552
Year Four	11,436	10,469
Year Five	8,145	10,634
Prior	19,798	17,196
Term Total	138,084	143,610
Revolving	63,094	62,692
Gross loans	201,178	206,302
Agri-business and Agricultural \| Loans secured by farmland \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	38,344	47,532
Year Two	28,684	37,035
Year Three	29,741	16,249
Year Four	9,656	10,469
Year Five	8,145	10,454
Prior	19,638	17,021
Term Total	134,208	138,760
Revolving	63,094	61,774
Gross loans	197,302	200,534
Agri-business and Agricultural \| Loans secured by farmland \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	260	0
Year Two	0	1,985
Year Three	1,676	2,303
Year Four	1,780	0
Year Five	0	180
Prior	15	30
Term Total	3,731	4,498
Revolving	0	918
Gross loans	3,731	5,416
Agri-business and Agricultural \| Loans secured by farmland \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0	207
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	145	145
Term Total	145	352
Revolving	0	0
Gross loans	145	352
Agri-business and Agricultural \| Loans for agricultural production
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	6,987	36,686
Year Two	30,505	34,497
Year Three	29,429	5,395
Year Four	4,553	11,072
Year Five	9,248	1,331
Prior	4,539	4,178
Term Total	85,261	93,159
Revolving	145,728	146,414
Gross loans	230,989	239,573
Agri-business and Agricultural \| Loans for agricultural production \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	6,040	36,238
Year Two	30,262	25,855
Year Three	22,167	4,224
Year Four	3,625	11,072
Year Five	9,248	1,331
Prior	4,539	4,178
Term Total	75,881	82,898
Revolving	143,599	138,142
Gross loans	219,480	221,040
Agri-business and Agricultural \| Loans for agricultural production \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	947	448
Year Two	243	8,642
Year Three	7,262	1,171
Year Four	928	0
Year Five	0	0
Prior	0	0
Term Total	9,380	10,261
Revolving	2,129	8,272
Gross loans	11,509	18,533
Other commercial loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	27,097	6,556
Year Two	4,815	21,111
Year Three	17,911	3,243
Year Four	147	1,273
Year Five	931	8,592
Prior	14,145	11,258
Term Total	65,046	52,033
Revolving	48,295	21,145
Gross loans	113,341	73,178
Other commercial loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	27,097	6,556
Year Two	4,815	21,111
Year Three	17,911	3,243
Year Four	147	1,273
Year Five	931	8,592
Prior	10,985	7,460
Term Total	61,886	48,235
Revolving	48,295	21,145
Gross loans	110,181	69,380
Other commercial loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	3,160	3,798
Term Total	3,160	3,798
Revolving	0	0
Gross loans	3,160	3,798
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	66,172	59,724
Year Two	57,140	43,911
Year Three	32,864	14,560
Year Four	10,741	11,120
Year Five	7,098	10,677
Prior	32,808	30,816
Term Total	206,823	170,808
Revolving	5,634	5,487
Gross loans	212,457	176,295
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	8,768	14,635
Year Two	12,809	16,173
Year Three	12,289	5,312
Year Four	4,805	5,903
Year Five	4,045	3,049
Prior	3,860	3,221
Term Total	46,576	48,293
Revolving	5,634	5,005
Gross loans	52,210	53,298
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0
Year Two	0
Year Three	552
Year Four	0
Year Five	0
Prior	0
Term Total	552
Revolving	0
Gross loans	552
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	83	0
Prior	1,944	1,274
Term Total	2,027	1,274
Revolving	0	0
Gross loans	2,027	1,274
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans \| Not Rated
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	57,404	45,089
Year Two	44,331	27,738
Year Three	20,023	9,248
Year Four	5,936	5,217
Year Five	2,970	7,628
Prior	27,004	26,321
Term Total	157,668	121,241
Revolving	0	482
Gross loans	157,668	121,723
Consumer 1-4 Family Mortgage \| Open end and junior lien loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	44,609	22,624
Year Two	14,138	6,003
Year Three	3,371	6,146
Year Four	3,710	4,212
Year Five	1,600	1,653
Prior	2,252	1,526
Term Total	69,680	42,164
Revolving	107,702	115,695
Gross loans	177,382	157,859
Consumer 1-4 Family Mortgage \| Open end and junior lien loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	137	679
Year Two	541	379
Year Three	357	159
Year Four	63	313
Year Five	75	0
Prior	0	0
Term Total	1,173	1,530
Revolving	5,841	5,074
Gross loans	7,014	6,604
Consumer 1-4 Family Mortgage \| Open end and junior lien loans \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	31	0
Year Five	49	0
Prior	0	0
Term Total	80	0
Revolving	111	98
Gross loans	191	98
Consumer 1-4 Family Mortgage \| Open end and junior lien loans \| Not Rated
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	44,472	21,945
Year Two	13,597	5,624
Year Three	3,014	5,987
Year Four	3,616	3,899
Year Five	1,476	1,653
Prior	2,252	1,526
Term Total	68,427	40,634
Revolving	101,750	110,523
Gross loans	170,177	151,157
Consumer 1-4 Family Mortgage \| Residential construction loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	14,463	7,926
Year Two	2,167	1,537
Year Three	897	960
Year Four	291	138
Year Five	129	171
Prior	1,223	1,125
Term Total	19,170	11,857
Revolving	0	0
Gross loans	19,170	11,857
Consumer 1-4 Family Mortgage \| Residential construction loans \| Not Rated
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	14,463	7,926
Year Two	2,167	1,537
Year Three	897	960
Year Four	291	138
Year Five	129	171
Prior	1,223	1,125
Term Total	19,170	11,857
Revolving	0	0
Gross loans	19,170	11,857
Consumer 1-4 Family Mortgage \| Other consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	25,739	25,089
Year Two	16,404	15,911
Year Three	9,600	9,227
Year Four	4,416	5,844
Year Five	2,755	3,045
Prior	2,300	1,203
Term Total	61,214	60,319
Revolving	26,644	22,225
Gross loans	87,858	82,544
Consumer 1-4 Family Mortgage \| Other consumer loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	1,344	3,401
Year Two	1,841	957
Year Three	432	1,523
Year Four	600	0
Year Five	0	1,155
Prior	948	0
Term Total	5,165	7,036
Revolving	16,152	12,998
Gross loans	21,317	20,034
Consumer 1-4 Family Mortgage \| Other consumer loans \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	0	36
Year Two	0	23
Year Three	0	230
Year Four	210	0
Year Five	0	0
Prior	0	0
Term Total	210	289
Revolving	0	0
Gross loans	210	289
Consumer 1-4 Family Mortgage \| Other consumer loans \| Not Rated
Financing Receivable, Credit Quality Indicator [Line Items]
Year One	24,395	21,652
Year Two	14,563	14,931
Year Three	9,168	7,474
Year Four	3,606	5,844
Year Five	2,755	1,890
Prior	1,352	1,203
Term Total	55,839	52,994
Revolving	10,492	9,227
Gross loans	$ 66,331	$ 62,221

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Collateral Dependent Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	$ 3,225	$ 6,410
General Business Assets	25,147	17,091
Other	1,397	1,449
Total	29,769	24,950
Commercial and Industrial \| Working capital lines of credit loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	50	0
General Business Assets	5,402	5,966
Other	0	0
Total	5,452	5,966
Commercial and Industrial \| Non-working capital loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	544	1,606
General Business Assets	18,109	9,475
Other	229	229
Total	18,882	11,310
Commercial Real Estate and Multi-family Residential \| Owner occupied loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	413	1,435
General Business Assets	1,491	1,505
Other	1,161	1,161
Total	3,065	4,101
Commercial Real Estate and Multi-family Residential \| Nonowner occupied loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	0	0
General Business Assets	0	0
Other	0	0
Total	0	0
Agri-business and Agricultural \| Loans secured by farmland
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	0	190
General Business Assets	145	145
Other	0	0
Total	145	335
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	2,030	3,081
General Business Assets	0	0
Other	0	0
Total	2,030	3,081
Consumer 1-4 Family Mortgage \| Open end and junior lien loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	188	98
General Business Assets	0	0
Other	0	0
Total	188	98
Consumer 1-4 Family Mortgage \| Other consumer loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Real Estate	0	0
General Business Assets	0	0
Other	7	59
Total	$ 7	$ 59

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Troubled Debt Restructuring (Details) $ in Thousands	Dec. 31, 2021 USD ($)
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY
Accruing troubled debt restructured loans	$ 5,121
Nonaccrual troubled debt restructured loans	6,218
Total troubled debt restructured loans	$ 11,339

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Loans by Class Modified as Troubled Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Financing Receivable, Modifications
Number of Loans \| loan	8
Pre-Modification Outstanding Recorded Investment		$ 6,066
Post-Modification Outstanding Recorded Investment		$ 5,533
All Modifications
Financing Receivable, Modifications
Number of Loans \| loan		4
Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans \| loan		4
Extension Period or Range (in months)		0 days
Consumer 1-4 Family Mortgage
Financing Receivable, Modifications
Number of Loans \| loan	2
Pre-Modification Outstanding Recorded Investment	$ 217
Post-Modification Outstanding Recorded Investment	$ 217
Consumer 1-4 Family Mortgage \| Minimum
Financing Receivable, Modifications
Extension Period or Range (in months)	172 years
Consumer 1-4 Family Mortgage \| Maximum
Financing Receivable, Modifications
Extension Period or Range (in months)	204 years
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans
Financing Receivable, Modifications
Number of Loans \| loan	2
Pre-Modification Outstanding Recorded Investment	$ 217
Post-Modification Outstanding Recorded Investment	$ 217
Commercial and Industrial \| Working capital lines of credit loans
Financing Receivable, Modifications
Pre-Modification Outstanding Recorded Investment		$ 250
Post-Modification Outstanding Recorded Investment		$ 315
Commercial and Industrial \| Working capital lines of credit loans \| All Modifications
Financing Receivable, Modifications
Number of Loans \| loan		1
Commercial and Industrial \| Working capital lines of credit loans \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans \| loan		1
Extension Period or Range (in months)		0 days
Commercial and Industrial \| Non-working capital loans
Financing Receivable, Modifications
Pre-Modification Outstanding Recorded Investment		$ 4,288
Post-Modification Outstanding Recorded Investment		$ 3,691
Commercial and Industrial \| Non-working capital loans \| All Modifications
Financing Receivable, Modifications
Number of Loans \| loan		2
Commercial and Industrial \| Non-working capital loans \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans \| loan		2
Extension Period or Range (in months)		0 days
Commercial Real Estate and Multi-family Residential \| Owner occupied loans
Financing Receivable, Modifications
Pre-Modification Outstanding Recorded Investment		$ 1,528
Post-Modification Outstanding Recorded Investment		$ 1,527
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| All Modifications
Financing Receivable, Modifications
Number of Loans \| loan		1
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans \| loan		1
Extension Period or Range (in months)		0 days

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	$ 67,773	$ 61,408	$ 50,652
Provision for loan losses	9,375	1,077	14,770
Loans charged-off	(5,134)	(5,983)	(5,253)
Recoveries	592	2,221	1,239
Net loans (charged-off) recovered	(4,542)	(3,762)	(4,014)
Ending balance	72,606	67,773	61,408
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment			23,362
Interest Income Recognized			390
Cash Basis Interest Income Recognized			385
Total consumer loans
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with an allowance recorded			0
Interest Income Recognized with an allowance recorded			0
Cash basis interest income recognized with an allowance recorded			0
Commercial and Industrial \| Working capital lines of credit loans
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			375
Average Recorded Investment with an allowance recorded			2,433
Interest Income Recognized with no related allowance recorded			0
Interest Income Recognized with an allowance recorded			0
Cash basis interest income recognized with no related allowance recorded			0
Cash basis interest income recognized with an allowance recorded			0
Commercial and Industrial \| Non-working capital loans
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			816
Average Recorded Investment with an allowance recorded			11,579
Interest Income Recognized with no related allowance recorded			21
Interest Income Recognized with an allowance recorded			287
Cash basis interest income recognized with no related allowance recorded			21
Cash basis interest income recognized with an allowance recorded			287
Commercial Real Estate and Multi-family Residential \| Owner occupied loans
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			2,156
Average Recorded Investment with an allowance recorded			3,156
Interest Income Recognized with no related allowance recorded			13
Interest Income Recognized with an allowance recorded			30
Cash basis interest income recognized with no related allowance recorded			12
Cash basis interest income recognized with an allowance recorded			30
Agri-business and Agricultural \| Loans secured by farmland
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			283
Average Recorded Investment with an allowance recorded			147
Interest Income Recognized with no related allowance recorded			0
Interest Income Recognized with an allowance recorded			0
Cash basis interest income recognized with no related allowance recorded			0
Cash basis interest income recognized with an allowance recorded			0
Agri-business and Agricultural \| Loans for agricultural production
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			4
Interest Income Recognized with no related allowance recorded			0
Cash basis interest income recognized with no related allowance recorded			0
Consumer 1-4 Family Mortgage \| Closed end first mortgage loans
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			291
Average Recorded Investment with an allowance recorded			1,557
Interest Income Recognized with no related allowance recorded			3
Interest Income Recognized with an allowance recorded			36
Cash basis interest income recognized with no related allowance recorded			2
Cash basis interest income recognized with an allowance recorded			33
Consumer 1-4 Family Mortgage \| Open end and junior lien loans
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			49
Average Recorded Investment with an allowance recorded			481
Interest Income Recognized with no related allowance recorded			0
Interest Income Recognized with an allowance recorded			0
Cash basis interest income recognized with no related allowance recorded			0
Cash basis interest income recognized with an allowance recorded			0
Consumer 1-4 Family Mortgage \| Residential construction loans
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with an allowance recorded			35
Interest Income Recognized with an allowance recorded			0
Cash basis interest income recognized with an allowance recorded			0
Unallocated
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	450	3,139	2,320
Provision for loan losses	104	192	819
Loans charged-off	0	0	0
Recoveries	0	0	0
Net loans (charged-off) recovered	0	0	0
Ending balance	554	450	3,139
Total commercial loans \| Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	30,595	28,333	25,789
Provision for loan losses	8,646	1,966	6,640
Loans charged-off	(4,022)	(5,575)	(4,524)
Recoveries	71	1,559	428
Net loans (charged-off) recovered	(3,951)	(4,016)	(4,096)
Ending balance	35,290	30,595	28,333
Total commercial loans \| Commercial Real Estate and Multi-family Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	26,535	22,907	15,796
Provision for loan losses	1,179	(632)	6,868
Loans charged-off	(597)	(70)	(72)
Recoveries	277	14	315
Net loans (charged-off) recovered	(320)	(56)	243
Ending balance	27,394	26,535	22,907
Total commercial loans \| Agri-business and Agricultural
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	5,034	3,043	3,869
Provision for loan losses	(605)	611	(826)
Loans charged-off	0	0	0
Recoveries	0	320	0
Net loans (charged-off) recovered	0	320	0
Ending balance	4,429	5,034	3,043
Total commercial loans \| Other Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	1,146	416	447
Provision for loan losses	(229)	(211)	(31)
Loans charged-off	0	0	0
Recoveries	0	0	0
Net loans (charged-off) recovered	0	0	0
Ending balance	917	1,146	416
Total consumer loans \| Consumer 1-4 Family Mortgage
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	2,866	2,619	2,086
Provision for loan losses	125	(777)	341
Loans charged-off	(42)	(51)	(141)
Recoveries	52	122	333
Net loans (charged-off) recovered	10	71	192
Ending balance	3,001	2,866	2,619
Total consumer loans \| Other Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	1,147	951	345
Provision for loan losses	155	(72)	959
Loans charged-off	(473)	(287)	(516)
Recoveries	192	206	163
Net loans (charged-off) recovered	(281)	(81)	(353)
Ending balance	$ 1,021	$ 1,147	$ 951

FAIR VALUE - Additional Information (Details)	12 Months Ended
FAIR VALUE - Additional Information (Details)	Dec. 31, 2022 USD ($) prepaymentSpeed	Dec. 31, 2021 prepaymentSpeed
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	3.50%
Mortgage servicing rights	$ 2,700,000
Weighted average maturity of residential mortgages	21 years
Prepayment speed used in unobservable assumptions \| prepaymentSpeed	159	249
Discount rate used to estimate fair value	9.50%	9.50%
Minimum
Assets Pledged As Collateral For Loans Receivable [Line Items]
Amount of variance	$ 100,000
Minimum \| Commercial Real Estates \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	30.00%
Minimum \| Inventory Finished Goods \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	40.00%
Minimum \| Finished Goods \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	40.00%
Minimum \| Inventory Work In Process \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	60.00%
Minimum \| Equipment \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	20.00%
Minimum \| Marketable Securities \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	10.00%
Maximum \| Commercial Real Estates \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	50.00%
Maximum \| Inventory Finished Goods \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	60.00%
Maximum \| Finished Goods \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	60.00%
Maximum \| Inventory Work In Process \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	100.00%
Maximum \| Equipment \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	50.00%
Maximum \| Marketable Securities \| Level 3
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of discount from appraised value (in hundredths)	30.00%
Municipal Notes \| Minimum
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of variance	5.00%
Municipal Notes \| Maximum
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of variance	5.00%
US Government Agencies Short-term Debt Securities \| Minimum
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of variance	(3.00%)
U.S. Treasury securities \| Minimum
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of variance	(1.00%)
U.S. Treasury securities \| Maximum
Assets Pledged As Collateral For Loans Receivable [Line Items]
Percentage of variance	(1.00%)

FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets:
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Mortgage banking derivative	$ 36,920	$ 14,309
Derivative Liability, Statement of Financial Position [Extensible Enumeration]		Other liabilities
Liabilities:
Mortgage banking derivative	36,921	$ 14,329
Fair Value, Measurements, Recurring
Assets:
U.S. Treasury securities	3,034	900
U.S. government sponsored agency securities	126,961	143,452
Mortgage-backed securities: residential	492,308	486,676
Mortgage-backed securities: commercial		523
State and municipal securities	563,225	767,007
Total Available-for-Sale Securities	1,185,528	1,398,558
Mortgage banking derivative	43	398
Interest rate swap derivative	36,920	14,309
Total assets	1,222,491	1,413,265
Liabilities:
Mortgage banking derivative		2
Interest rate swap derivative	36,921	14,329
Total liabilities	36,921	14,331
Level 1 \| Fair Value, Measurements, Recurring
Assets:
U.S. Treasury securities	3,034	900
U.S. government sponsored agency securities	0	0
Mortgage-backed securities: residential	0	0
Mortgage-backed securities: commercial		0
State and municipal securities	0	0
Total Available-for-Sale Securities	3,034	900
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Total assets	3,034	900
Liabilities:
Mortgage banking derivative		0
Interest rate swap derivative	0	0
Total liabilities	0	0
Level 2 \| Fair Value, Measurements, Recurring
Assets:
U.S. Treasury securities	0	0
U.S. government sponsored agency securities	126,961	143,452
Mortgage-backed securities: residential	492,308	486,676
Mortgage-backed securities: commercial		523
State and municipal securities	561,150	764,964
Total Available-for-Sale Securities	1,180,419	1,395,615
Mortgage banking derivative	43	398
Interest rate swap derivative	36,920	14,309
Total assets	1,217,382	1,410,322
Liabilities:
Mortgage banking derivative		2
Interest rate swap derivative	36,921	14,329
Total liabilities	36,921	14,331
Level 3 \| Fair Value, Measurements, Recurring
Assets:
U.S. Treasury securities	0	0
U.S. government sponsored agency securities	0	0
Mortgage-backed securities: residential	0	0
Mortgage-backed securities: commercial		0
State and municipal securities	2,075	2,043
Total Available-for-Sale Securities	2,075	2,043
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Total assets	2,075	2,043
Liabilities:
Mortgage banking derivative		0
Interest rate swap derivative	0	0
Total liabilities	$ 0	$ 0

FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	$ 11,992	$ 6,364
Other real estate owned	100	196
Total assets	12,092	6,560
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Other real estate owned	0	0
Total assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Other real estate owned	0	0
Total assets	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	11,992	6,364
Other real estate owned	100	196
Total assets	12,092	6,560
Commercial and Industrial \| Working capital lines of credit loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	3,178	247
Commercial and Industrial \| Working capital lines of credit loans \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Commercial and Industrial \| Working capital lines of credit loans \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Commercial and Industrial \| Working capital lines of credit loans \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	3,178	247
Commercial and Industrial \| Non-working capital loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	8,354	5,095
Commercial and Industrial \| Non-working capital loans \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Commercial and Industrial \| Non-working capital loans \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Commercial and Industrial \| Non-working capital loans \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	8,354	5,095
Commercial Real Estate and Multi-family Residential \| Owner occupied loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	425	791
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Commercial Real Estate and Multi-family Residential \| Owner occupied loans \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	425	791
Agri-business and agricultural \| Loans secured by farmland
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	35	231
Agri-business and agricultural \| Loans secured by farmland \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Agri-business and agricultural \| Loans secured by farmland \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	0	0
Agri-business and agricultural \| Loans secured by farmland \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total collateral dependent loans	$ 35	$ 231

FAIR VALUE - Valuation Methodology and Unobservable Inputs for Level 3 Assets (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Total collateral dependent loans	$ 11,992	$ 6,364
Commercial and Industrial \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Total collateral dependent loans	$ 11,532	$ 5,342
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions
Commercial and Industrial \| Weighted Average \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.62	65
Commercial and Industrial \| Minimum \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.29	22
Commercial and Industrial \| Maximum \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.99	99
Commercial Real Estate and Multi-family Residential \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Total collateral dependent loans	$ 425	$ 791
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions
Commercial Real Estate and Multi-family Residential \| Weighted Average \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.57	51
Commercial Real Estate and Multi-family Residential \| Minimum \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.37	34
Commercial Real Estate and Multi-family Residential \| Maximum \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.76	68
Agri-business and agricultural \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Total collateral dependent loans	$ 35	$ 231
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions and ultimate collectability
Agri-business and agricultural \| Weighted Average \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.76	35
Agri-business and agricultural \| Minimum \| Measurement Input, Discount Rate \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs		0.03
Agri-business and agricultural \| Maximum \| Measurement Input, Discount Rate \| Valuation, Collateral Based Measurements
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs		0.68
Other real estate owned \| Valuation, Cost Approach
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Total collateral dependent loans	$ 100	$ 196
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions and ultimate collectability
Other real estate owned \| Weighted Average \| Valuation, Cost Approach
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs	0.68	0.38

FAIR VALUE - Estimated Fair Values and the Related Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial Assets:
Securities held-to-maturity	$ 111,029	$ 0
Carrying Value
Financial Assets:
Cash and cash equivalents	130,282	683,240
Securities available-for-sale	1,185,528	1,398,558
Securities held-to-maturity	128,242
Real estate mortgages held-for-sale	357	7,470
Loans, net	4,637,790	4,220,068
Mortgage banking derivative	43	398
Interest rate swap derivative	36,920	14,309
Federal Reserve and Federal Home Loan Bank Stock	15,795	13,772
Accrued interest receivable	27,994	17,674
Financial Liabilities:
Certificates of deposit	626,186	829,518
All other deposits	4,834,434	4,905,889
Federal Funds purchased	22,000
Federal Home Loan Bank advances	275,000	75,000
Mortgage banking derivative		2
Fair value of interest rate swap liability	36,921	14,329
Standby letters of credit	249	272
Accrued interest payable	3,186	2,619
Estimated Fair Value
Financial Assets:
Cash and cash equivalents	130,282	683,240
Securities available-for-sale	1,185,528	1,398,558
Securities held-to-maturity	111,029
Real estate mortgages held-for-sale	372	7,634
Loans, net	4,454,678	4,144,000
Mortgage banking derivative	43	398
Interest rate swap derivative	36,920	14,309
Accrued interest receivable	27,994	17,674
Financial Liabilities:
Certificates of deposit	621,206	833,617
All other deposits	4,834,434	4,905,889
Federal Funds purchased	22,000
Federal Home Loan Bank advances	275,000	66,118
Mortgage banking derivative		2
Fair value of interest rate swap liability	36,921	14,329
Standby letters of credit	249	272
Accrued interest payable	3,186	2,619
Level 1 \| Estimated Fair Value
Financial Assets:
Cash and cash equivalents	129,069	681,286
Securities available-for-sale	3,034	900
Securities held-to-maturity	0
Real estate mortgages held-for-sale	0	0
Loans, net	0	0
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Accrued interest receivable	0	0
Financial Liabilities:
Certificates of deposit	0	0
All other deposits	4,834,434	4,905,889
Federal Funds purchased	22,000
Federal Home Loan Bank advances	275,000	0
Mortgage banking derivative		0
Fair value of interest rate swap liability	0	0
Standby letters of credit	0	0
Accrued interest payable	486	84
Level 2 \| Estimated Fair Value
Financial Assets:
Cash and cash equivalents	1,213	1,954
Securities available-for-sale	1,180,419	1,395,615
Securities held-to-maturity	111,029
Real estate mortgages held-for-sale	372	7,634
Loans, net	0	0
Mortgage banking derivative	43	398
Interest rate swap derivative	36,920	14,309
Accrued interest receivable	9,598	7,689
Financial Liabilities:
Certificates of deposit	621,206	833,617
All other deposits	0	0
Federal Funds purchased	0
Federal Home Loan Bank advances	0	66,118
Mortgage banking derivative		2
Fair value of interest rate swap liability	36,921	14,329
Standby letters of credit	0	0
Accrued interest payable	2,700	2,535
Level 3 \| Estimated Fair Value
Financial Assets:
Cash and cash equivalents	0	0
Securities available-for-sale	2,075	2,043
Securities held-to-maturity	0
Real estate mortgages held-for-sale	0	0
Loans, net	4,454,678	4,144,000
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Accrued interest receivable	18,396	9,985
Financial Liabilities:
Certificates of deposit	0	0
All other deposits	0	0
Federal Funds purchased	0
Federal Home Loan Bank advances	0	0
Mortgage banking derivative		0
Fair value of interest rate swap liability	0	0
Standby letters of credit	249	272
Accrued interest payable	$ 0	$ 0

LAND, PREMISES AND EQUIPMENT, NET - Summary of Land, Premises And Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Land	$ 12,472	$ 12,472
Premises and improvements	61,185	58,716
Equipment and furniture	37,460	39,278
Total cost	111,117	110,466
Less accumulated depreciation	53,020	51,157
Land, premises and equipment, net	$ 58,097	$ 59,309

GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) $ in Millions	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Carrying amount of goodwill	$ 5.0

DEPOSITS - Summary of Certain Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Non-interest bearing demand deposits	$ 1,736,761	$ 1,895,481
Savings and transaction accounts:
Savings deposits	403,773	409,343
Interest bearing demand deposits	3,723,859	3,839,926
Time deposits:
Other time deposits	170,759	202,395
Deposits of $100,000 to $250,000	185,194	227,606
Deposits of $250,000 or more	270,233	399,517
Total deposits	5,460,620	5,735,407
Interest bearing demand deposits
Savings and transaction accounts:
Interest bearing demand deposits	$ 2,693,900	$ 2,601,065

DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Deposits [Abstract]
2023	$ 379,460
2024	206,081
2025	15,132
2026	12,583
2027	12,546
Thereafter	384
Total time deposits	$ 626,186

DEPOSITS - Additional information (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
Total amount available to the bank	$ 100.0
Total amount drawn		$ 10.0

BORROWINGS - Short-Term Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Total FHLB advances	$ 275,000	$ 75,000
FHLB of Indianapolis Bullet Advance, 4.21%, Due January 5, 2023
Short-term Debt [Line Items]
Total FHLB advances	$ 275,000	0
Interest rate	4.21%
FHLB of Indianapolis Putable Advance, 0.39%, Due March 4, 2030, Called June 6, 2022
Short-term Debt [Line Items]
Total FHLB advances	$ 0	$ 75,000
Interest rate	0.39%

BORROWINGS - Additional Information (Details)	12 Months Ended
BORROWINGS - Additional Information (Details)	Dec. 31, 2022 USD ($) bank	Dec. 31, 2021 USD ($) bank	Aug. 02, 2019 USD ($)
Debt Instrument [Line Items]
Residential real estate loans and securities pledged as collateral for FHLB advances, carrying value	$ 549,000,000	$ 478,400,000
FHLB stock	12,400,000	10,400,000
FHLB borrowing capacity, authorized	800,000,000.0	800,000,000.0
Current borrowing capacity	66,500,000	66,500,000
Commercial loans pledged as collateral for federal reserve discount window	928,600,000	804,400,000
Federal reserve borrowing capacity	758,300,000	616,500,000
Remaining borrowing capacity	$ 350,000,000.0	$ 350,000,000.0
Number of banks \| bank	11	11
Proceeds from lines of credit	$ 22,000,000	$ 0
Federal Funds purchased	22,000,000	0
Unsecured revolving credit agreement
Debt Instrument [Line Items]
Borrowing capacity			$ 30,000,000.0
American Financial Exchange
Debt Instrument [Line Items]
Remaining borrowing capacity	319,000,000.0	319,000,000.0
Federal Funds purchased	$ 0	$ 0

PENSION AND OTHER POSTRETIREMENT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Pension Benefits
Change in benefit obligation:
Beginning benefit obligation	$ 2,298	$ 2,710
Interest cost	53	52	$ 75
Actuarial (gain) loss	(611)	(153)
Benefits paid	(194)	(311)
Ending benefit obligation	1,546	2,298	2,710
Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets	2,303	2,349
Actual return	(289)	265
Employer contribution	0	0
Benefits paid	(194)	(311)
Ending plan assets	1,820	2,303	2,349
Funded status at end of year	274	5
SERP Benefits
Change in benefit obligation:
Beginning benefit obligation	867	968
Interest cost	20	18	27
Actuarial (gain) loss	(52)	13
Benefits paid	(135)	(132)
Ending benefit obligation	700	867	968
Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets	848	879
Actual return	(107)	101
Employer contribution	0	0
Benefits paid	(135)	(132)
Ending plan assets	606	848	$ 879
Funded status at end of year	$ (94)	$ (19)

PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Funded status included in other liabilities	$ 274	$ 5
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Funded status included in other liabilities	$ 94	$ 19

PENSION AND OTHER POSTRETIREMENT PLANS - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ (194)	$ (475)	$ (110)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	538	852
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ 487	$ 431

PENSION AND OTHER POSTRETIREMENT PLANS - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	8.85%
Target allocation	60.00%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	3.00%
Target allocation	40.00%
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 1,500	$ 2,300
Expected amortization next fiscal year	$ (31)
Weighted Average Expected Long-Term Rate of Return	6.50%	6.50%	6.50%
Pension Benefits \| Other
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	0.10%
Pension Benefits \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	8.85%
Pension Benefits \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	3.00%
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 700	$ 867
Expected amortization next fiscal year	$ 37
Weighted Average Expected Long-Term Rate of Return	6.50%	6.50%	6.50%
SERP Benefits \| Other
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	0.10%
SERP Benefits \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	8.85%
SERP Benefits \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	3.00%

PENSION AND OTHER POSTRETIREMENT PLANS - Components of net periodic benefit cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net pension expense:
Net (gain) loss	$ (115)	$ (390)	$ 105
Pension Benefits
Net pension expense:
Service cost	0	0	0
Interest cost	53	52	75
Expected return on plan assets	(130)	(133)	(140)
Recognized net actuarial (gain) loss	99	160	171
Settlement cost	23	65	115
Net pension expense	45	144	221
Net (gain) loss	(215)	(350)	69
Amortization of net loss	(99)	(160)	(171)
Total recognized in other comprehensive income (loss)	(314)	(510)	(102)
Total recognized in net pension expense and other comprehensive income (loss)	$ (269)	$ (366)	$ 119
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
SERP Benefits
Net pension expense:
Service cost	$ 0	$ 0	$ 0
Interest cost	20	18	27
Expected return on plan assets	(45)	(47)	(51)
Recognized net actuarial (gain) loss	45	82	80
Settlement cost	0	0	0
Net pension expense	20	53	56
Net (gain) loss	100	(40)	36
Amortization of net loss	(45)	(82)	(80)
Total recognized in other comprehensive income (loss)	55	(122)	(44)
Total recognized in net pension expense and other comprehensive income (loss)	$ 75	$ (69)	$ 12
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent

PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Assumptions Used in Calculating the Net Benefit Obligation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Weighted average discount rate	5.03%	2.49%	2.08%
Rate of increase in future compensation, lump sum assumed interest rates first 5 years	5.10%	0.87%	0.53%
Rate of increase in future compensation, lump sum assumed interest rates next 15 years	5.83%	2.74%	2.31%
Rate of increase in future compensation, lump sum assumed interest rates all future years	5.68%	3.16%	3.09%
Weighted average discount rate	2.49%	2.08%	2.98%
Expected long-term rate of return	6.50%	6.50%	6.50%
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Weighted average discount rate	5.03%	2.49%	2.08%
Weighted average discount rate	2.49%	2.08%	2.98%
Expected long-term rate of return	6.50%	6.50%	6.50%

PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Allocation of Plan Assets (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	8.85%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Weighted Average Expected Long-Term Rate of Return	3.00%
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	100.00%	100.00%
Weighted Average Expected Long-Term Rate of Return	6.50%	6.50%	6.50%
Pension Benefits \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	60.00%	61.00%
Weighted Average Expected Long-Term Rate of Return	8.85%
Pension Benefits \| Equity securities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	55.00%
Pension Benefits \| Equity securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	65.00%
Pension Benefits \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	39.00%	37.00%
Weighted Average Expected Long-Term Rate of Return	3.00%
Pension Benefits \| Debt securities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	35.00%
Pension Benefits \| Debt securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	45.00%
Pension Benefits \| Other
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	1.00%	2.00%
Weighted Average Expected Long-Term Rate of Return	0.10%
Pension Benefits \| Other \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	5.00%
Pension Benefits \| Other \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	10.00%
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	100.00%	100.00%
Weighted Average Expected Long-Term Rate of Return	6.50%	6.50%	6.50%
SERP Benefits \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	62.00%	59.00%
Weighted Average Expected Long-Term Rate of Return	8.85%
SERP Benefits \| Equity securities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	55.00%
SERP Benefits \| Equity securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	65.00%
SERP Benefits \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	35.00%	36.00%
Weighted Average Expected Long-Term Rate of Return	3.00%
SERP Benefits \| Debt securities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	35.00%
SERP Benefits \| Debt securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	45.00%
SERP Benefits \| Other
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year End	3.00%	5.00%
Weighted Average Expected Long-Term Rate of Return	0.10%
SERP Benefits \| Other \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	5.00%
SERP Benefits \| Other \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	10.00%

PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Expected Benefit Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Pension Benefits
2023	$ 198
2024	168
2025	177
2026	218
2027	141
2028-2032	544
SERP Benefits
2023	130
2024	122
2025	112
2026	101
2027	90
2028-2032	$ 262

OTHER BENEFIT PLANS - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
401(K) Plan
Summary of Other Benefit Plan [Line Items]
Maximum employee contributions	6.00%
Plan expense	$ 2,400	$ 2,300	$ 1,900
Lake City Bank Deferred Compensation Plan
Summary of Other Benefit Plan [Line Items]
Plan expense	(1,000)	1,200	1,000
Deferred compensation liability	6,100	7,000
Executive
Summary of Other Benefit Plan [Line Items]
Potential cash payment under employment agreements	5,400
Director
Summary of Other Benefit Plan [Line Items]
Deferred compensation liability	5,600	5,200
Compensation expense	$ 458	$ 482	$ 505

INCOME TAXES - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Current federal									$ 22,825	$ 21,329	$ 20,032
Deferred federal									(2,327)	(1,249)	(1,688)
Current state									1,297	1,892	1,484
Deferred state									(448)	(261)	(289)
Total income tax expense	$ 4,987	$ 6,237	$ 5,584	$ 4,539	$ 5,507	$ 5,469	$ 5,705	$ 5,030	$ 21,347	$ 21,711	$ 19,539

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Statutory percentage rate of provision	21.00%
Deferred income tax asset (liability) allocated to unrealized net gain (loss) on securities available-for-sale	$ 50,000,000.0	$ (4,500,000)
Deferred income tax asset allocated to pension plan and SERP	255,000	319,000
Unrecognized Tax Benefits	0	0
Interest and penalties related to unrecognized tax benefits	$ 0	$ 0	$ 0

INCOME TAXES - Computation of Differences Between Financial Statement Tax Expense And Amounts (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income taxes at statutory federal rate of 21%									$ 26,284	$ 24,663	$ 21,814
Increase (decrease) in taxes resulting from:
Tax exempt income									(4,438)	(2,822)	(1,925)
Nondeductible expense									159	116	117
State income tax, net of federal tax effect									671	1,288	944
Captive insurance premium income									(417)	(303)	(227)
Tax credits									(586)	(578)	(540)
Bank owned life insurance									(78)	(596)	(595)
Long-term incentive plan and deferred compensation									(530)	(274)	(58)
Nondeductible compensation expense									181	156	0
Other									101	61	9
Total income tax expense	$ 4,987	$ 6,237	$ 5,584	$ 4,539	$ 5,507	$ 5,469	$ 5,705	$ 5,030	$ 21,347	$ 21,711	$ 19,539

INCOME TAXES - Summary of Net Deferred Tax Asset And Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Bad debts	$ 18,561	$ 17,321
Pension and deferred compensation liability	2,272	2,351
Nonaccrual loan interest	256	600
Long-term incentive plan	2,894	1,896
Lease liability	1,354	1,078
Deferred loan fees	572	771
Accrued legal reserve	819	0
Other	1,130	191
Deferred tax asset	27,858	24,208
Deferred tax liabilities:
Depreciation	4,257	4,279
Loan servicing rights	694	717
State taxes	786	679
Intangible assets	1,270	1,270
REIT spillover dividend	1,290	1,180
Prepaid expenses	988	952
Lease right of use	1,354	1,078
Other	585	194
Deferred tax liability	11,224	10,349
Valuation allowance	0	0
Net deferred tax asset	$ 16,634	$ 13,859

RELATED PARTY TRANSACTIONS - Summary of Loans To Related Party (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable, Related Parties [Roll Forward]
Beginning balance	$ 99,865	$ 104,694
New loans and advances	54,085	74,115
Effect of changes in related parties	(10,463)	(62)
Repayments and renewals	(30,052)	(78,882)
Ending balance	$ 113,435	$ 99,865

RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Deposits from principal officers, directors and affiliates	$ 16,200	$ 30,200
Investment in limited partnerships	12,200	9,400
Equity method investment, remaining commitments	2,800	3,200
Investment banking, advisory, brokerage, and underwriting fees and commissions	8,636	8,750	$ 7,468
Director
Related Party Transaction [Line Items]
Investment in limited partnerships	2,300	2,300
Investment banking, advisory, brokerage, and underwriting fees and commissions	$ 25	$ 25

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.17)
-URI https://asc.fasb.org/extlink&oid=126734703&loc=d3e572229-122910

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.15(3),(4))
-URI https://asc.fasb.org/extlink&oid=126897435&loc=d3e534808-122878

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

+ Details

STOCK BASED COMPENSATION - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Apr. 12, 2017	Apr. 09, 2013	Apr. 08, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)						1,125,000
Shares available for grant (in shares)	387,388
Employee stock compensation	$ 7,800,000	$ 7,200,000	$ 1,800,000
Employee stock compensation, tax benefit	$ 2,000,000	$ 1,800,000	$ 500,000
Options granted (in shares)	0	0	0
Modifications of options (in shares)	0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award term	10 years
Award vesting period	3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	37,957
Unrecognized compensation cost related to non-vested shares	$ 1,200,000
Fair value of shares vested	$ 1,200,000	$ 1,100,000	$ 700,000
Shares vested (in shares)	15,876
Restricted Stock \| Non-Employee Directors Of The Board
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	14,300
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares vested	$ 4,300,000	$ 5,200,000	$ 5,700,000
Unrecognized compensation cost related to options	$ 6,600,000
Unrecognized compensation cost, period for recognition	2 years
Shares vested (in shares)	53,670	83,216	120,204
2013 Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)					435,867
2017 Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)				1,000,000

STOCK BASED COMPENSATION - Summary Of Changes In Company's Nonvested Shares (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Restricted Stock
Shares
Beginning balance (in shares) \| shares	1,500
Granted (in shares) \| shares	37,957
Vested (in shares) \| shares	(15,876)
Forfeited (in shares) \| shares	(516)
Ending balance (in shares) \| shares	23,065
Weighted-Average Grant-Date Fair Value
Beginning balance (in USD per share) \| $ / shares	$ 44.10
Granted (in USD per share) \| $ / shares	76.02
Vested (in USD per share) \| $ / shares	72.84
Forfeited (in USD per share) \| $ / shares	76.33
Ending balance (in USD per share) \| $ / shares	$ 76.13
Performance Stock Units
Shares
Beginning balance (in shares) \| shares	271,770
Granted (in shares) \| shares	92,713
Vested (in shares) \| shares	(53,670)
Forfeited (in shares) \| shares	(6,192)
Ending balance (in shares) \| shares	304,621
Weighted-Average Grant-Date Fair Value
Beginning balance (in USD per share) \| $ / shares	$ 49.83
Granted (in USD per share) \| $ / shares	72.80
Vested (in USD per share) \| $ / shares	43.44
Forfeited (in USD per share) \| $ / shares	57.45
Ending balance (in USD per share) \| $ / shares	$ 57.79

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019	Dec. 31, 2015
Capital Requirements and Restrictions On Retained Earnings [Abstract]
Capital conservation buffer	2.50%	2.50%	2.50%	0.00%
Amount available for dividends	$ 121,100.0

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Summary Of Capital Adequacy Requirements (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consolidated
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets), Actual Amount	$ 821,008	$ 744,421
Total Capital (to Risk Weighted Assets), Actual Ratio	0.1507	0.1535
Tier I Capital (to Risk Weighted Assets), Actual Amount	$ 752,751	$ 683,754
Tier I Capital (to Risk Weighted Assets), Actual Ratio	0.1382	0.1410
Common Equity Tier 1 (CET1), Actual Amount	$ 752,751	$ 683,754
Common Equity Tier 1 (CET1), Actual Ratio	13.82%	14.10%
Tier I Capital (to Average Assets), Actual Amount	$ 752,751	$ 683,754
Tier I Capital (to Average Assets), Actual Ratio	0.1150	0.1073
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 435,786	$ 388,020
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	0.0800	0.0800
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 326,840	$ 291,015
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	0.0600	0.0600
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Amount	$ 245,130	$ 218,261
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Ratio	4.50%	4.50%
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 261,859	$ 254,898
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Ratio	0.0400	0.0400
Excess Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 571,969	$ 509,276
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	463,023	412,271
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	381,313	339,518
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	261,859	254,898
Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets), Actual Amount	$ 801,044	$ 726,091
Total Capital (to Risk Weighted Assets), Actual Ratio	0.1474	0.1501
Tier I Capital (to Risk Weighted Assets), Actual Amount	$ 732,966	$ 665,424
Tier I Capital (to Risk Weighted Assets), Actual Ratio	0.1349	0.1375
Common Equity Tier 1 (CET1), Actual Amount	$ 732,966	$ 665,424
Common Equity Tier 1 (CET1), Actual Ratio	13.49%	13.75%
Tier I Capital (to Average Assets), Actual Amount	$ 732,966	$ 665,424
Tier I Capital (to Average Assets), Actual Ratio	0.1122	0.1046
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 434,758	$ 387,118
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	0.0800	0.0800
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 326,069	$ 290,339
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	0.0600	0.0600
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Amount	$ 244,551	$ 217,754
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Ratio	4.50%	4.50%
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 261,222	$ 254,425
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Ratio	0.0400	0.0400
Excess Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 570,620	$ 508,093
Excess Capital to Risk Weighted Assets, For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio	0.1050	0.1050
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 461,930	$ 411,313
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio	0.0850	0.0850
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 380,413	$ 338,729
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio	7.00%	7.00%
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 261,222	$ 254,425
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio	0.0400	0.0400
Total Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 543,448	$ 483,898
Total Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.1000	0.1000
Tier I Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 434,758	$ 387,118
Tier I Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.0800	0.0800
Common Equity Tier 1 (CET1), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 353,241	$ 314,534
Common Equity Tier 1 (CET1), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	6.50%	6.50%
Tier I Capital (to Average Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 326,527	$ 318,030
Tier I Capital (to Average Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.0500	0.0500

OFFSETTING ASSETS AND LIABILITIES - Schedule of Offsetting of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Gross Amounts of Recognized Assets/ Liabilities	$ 36,920	$ 14,309
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts presented in the Statement of Financial Position	36,920	14,309
Gross amounts not offset in the statement of financial position, financial instruments	0	0
Gross amounts not offset in the statement of financial position, cash collateral position	(34,185)	(2,255)
Net Amount	2,735	12,054
Liabilities
Gross Amounts of Recognized Assets/ Liabilities	36,921	14,329
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts presented in the Statement of Financial Position	36,921	14,329
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	0	0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position	(90)	(7,995)
Net Amount	36,831	6,334
Interest Rate Swap
Assets
Gross Amounts of Recognized Assets/ Liabilities	36,920	14,309
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts presented in the Statement of Financial Position	36,920	14,309
Gross amounts not offset in the statement of financial position, financial instruments	0	0
Gross amounts not offset in the statement of financial position, cash collateral position	(34,185)	(2,255)
Net Amount	2,735	12,054
Liabilities
Gross Amounts of Recognized Assets/ Liabilities	36,921	14,329
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts presented in the Statement of Financial Position	36,921	14,329
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	0	0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position	(90)	(7,995)
Net Amount	$ 36,831	$ 6,334

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES - Commitments To Make Loans And Open Ended Revolving Lines Of Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	$ 142,611	$ 90,100
Variable Rate	2,559,866	2,252,895
Total commercial loans
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	140,022	79,792
Variable Rate	2,129,211	1,850,719
Standby letters of credit
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	0	0
Variable Rate	48,406	55,336
Real estate mortgage loans
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	377	7,906
Variable Rate	5,668	14,216
Real estate construction mortgage loans
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	2,212	2,402
Variable Rate	9,043	3,213
Home equity mortgage open-ended revolving lines
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	0	0
Variable Rate	341,622	306,124
Total consumer loans
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	0	0
Variable Rate	$ 25,916	$ 23,287

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES - Interest Rate Ranges On Commitments And Open Ended Revolving Lines Of Credit (Details)	Dec. 31, 2022	Dec. 31, 2021
Total commercial loans \| Minimum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	1.99%	1.99%
Variable Rate	1.63%	1.11%
Total commercial loans \| Maximum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	14.50%	14.50%
Variable Rate	13.00%	10.00%
Real estate mortgage loans \| Minimum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	0.00%	2.50%
Variable Rate	3.13%	3.00%
Real estate mortgage loans \| Maximum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	7.00%	3.75%
Variable Rate	12.50%	8.25%
Total consumer loans
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	15.00%	15.00%
Total consumer loans \| Minimum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Variable Rate	7.00%	3.25%
Total consumer loans \| Maximum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Variable Rate	15.00%	15.00%

PARENT COMPANY STATEMENTS - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Other assets	$ 134,909	$ 54,610
Total assets	6,432,371	6,557,323
LIABILITIES
STOCKHOLDERS’ EQUITY	568,798	704,817
Total liabilities and equity	6,432,371	6,557,323
Parent Company \| Reportable Legal Entities
ASSETS
Deposits with Lake City Bank	386	834
Deposits with other depository institutions	1,954	2,459
Cash	2,340	3,293
Investments in banking subsidiary	549,031	686,487
Investments in other subsidiaries	3,845	3,468
Other assets	13,819	11,830
Total assets	569,035	705,078
LIABILITIES
Dividends payable and other liabilities	237	261
STOCKHOLDERS’ EQUITY	568,798	704,817
Total liabilities and equity	$ 569,035	$ 705,078

PARENT COMPANY STATEMENTS - CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Financial Statements, Captions [Line Items]
Other income									$ 1,874	$ 2,725	$ 3,564
Interest expense	$ (18,516)	$ (10,066)	$ (4,944)	$ (3,154)	$ (3,315)	$ (3,554)	$ (3,964)	$ (4,298)	(36,680)	(15,131)	(30,095)
Income tax benefit	(4,987)	(6,237)	(5,584)	(4,539)	(5,507)	(5,469)	(5,705)	(5,030)	(21,347)	(21,711)	(19,539)
NET INCOME	$ 25,977	$ 28,525	$ 25,673	$ 23,642	$ 24,283	$ 24,119	$ 24,348	$ 22,983	103,817	95,733	84,337
COMPREHENSIVE INCOME (LOSS)									(101,199)	84,082	100,022
Reportable Legal Entities \| Parent Company
Condensed Financial Statements, Captions [Line Items]
Other income									1	3	0
Interest expense									0	(7)	0
Miscellaneous expense									(8,795)	(8,133)	(3,935)
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES									33,096	40,253	29,444
Income tax benefit									2,770	2,360	1,065
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES									35,866	42,613	30,509
Equity in undistributed income of subsidiaries									67,951	53,120	53,828
NET INCOME									103,817	95,733	84,337
COMPREHENSIVE INCOME (LOSS)									(101,199)	84,082	100,022
Reportable Legal Entities \| Parent Company \| Lake City Bank
Condensed Financial Statements, Captions [Line Items]
Dividends from Lake City Bank, Lakeland Statutory Trust II									40,590	47,355	32,079
Reportable Legal Entities \| Parent Company \| Non-bank Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Dividends from Lake City Bank, Lakeland Statutory Trust II									$ 1,300	$ 1,035	$ 1,300

PARENT COMPANY STATEMENTS - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 25,977	$ 28,525	$ 25,673	$ 23,642	$ 24,283	$ 24,119	$ 24,348	$ 22,983	$ 103,817	$ 95,733	$ 84,337
Adjustments to net cash from operating activities:
Net cash from operating activities									169,342	113,768	87,228
Cash flows from financing activities
Purchase of treasury stock									(579)	(559)	(10,547)
Sales of treasury stock									221	115	119
Net cash from financing activities									(95,776)	651,091	775,342
Net change in cash and cash equivalents									(552,958)	433,313	150,546
Beginning balance				683,240				249,927	683,240	249,927	99,381
Ending balance	130,282				683,240				130,282	683,240	249,927
Reportable Legal Entities \| Parent Company
Cash flows from operating activities:
Net income									103,817	95,733	84,337
Adjustments to net cash from operating activities:
Equity in undistributed income of subsidiaries									(67,951)	(53,120)	(53,828)
Other changes									6,157	5,177	1,257
Net cash from operating activities									42,023	47,790	31,766
Cash flows from financing activities
Proceeds from (payments on) short-term borrowings									0	(10,500)	10,500
Payments related to equity incentive plans									(1,780)	(1,914)	(2,137)
Purchase of treasury stock									(579)	(559)	(10,547)
Sales of treasury stock									221	115	119
Dividends paid									(40,838)	(34,640)	(30,566)
Net cash from financing activities									(42,976)	(47,498)	(32,631)
Net change in cash and cash equivalents									(953)	292	(865)
Beginning balance				$ 3,293				$ 3,001	3,293	3,001	3,866
Ending balance	$ 2,340				$ 3,293				$ 2,340	$ 3,293	$ 3,001

EARNINGS PER SHARE - Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income	$ 25,977	$ 28,525	$ 25,673	$ 23,642	$ 24,283	$ 24,119	$ 24,348	$ 22,983	$ 103,817	$ 95,733	$ 84,337
Weighted-average common shares outstanding (in shares)									25,528,328	25,475,994	25,469,242
Basic earnings per common share (in USD per share)	$ 1.02	$ 1.12	$ 1.00	$ 0.93	$ 0.95	$ 0.95	$ 0.96	$ 0.90	$ 4.07	$ 3.76	$ 3.31
Diluted earnings per common share:
Net income	$ 25,977	$ 28,525	$ 25,673	$ 23,642	$ 24,283	$ 24,119	$ 24,348	$ 22,983	$ 103,817	$ 95,733	$ 84,337
Add: Dilutive effect of assumed exercises of stock options and awards (in shares)									184,210	144,111	104,699
Weighted Average Number of Shares Outstanding, Diluted, Total									25,712,538	25,620,105	25,573,941
Diluted earnings per common share (in USD per share)	$ 1.01	$ 1.11	$ 1.00	$ 0.92	$ 0.95	$ 0.94	$ 0.95	$ 0.90	$ 4.04	$ 3.74	$ 3.30
Number of antidilutive stock options									0	0	0

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	$ 704,906	$ 657,184	$ 598,100
Other comprehensive income (loss) before reclassification	(206,306)	(11,203)
Amounts reclassified from accumulated other comprehensive income (loss)	1,290	(448)
Net current period other comprehensive income (loss)	(205,016)	(11,651)	15,685
Balance	568,887	704,906	657,184
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	16,093	27,744
Balance	(188,923)	16,093	27,744
Unrealized Gains and (Losses) on Available-for-Sales Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	17,056	29,182
Other comprehensive income (loss) before reclassification	(206,392)	(11,496)
Amounts reclassified from accumulated other comprehensive income (loss)	1,182	(630)
Net current period other comprehensive income (loss)	(205,210)	(12,126)
Balance	(188,154)	17,056	29,182
Defined Benefit Pension Items
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance	(963)	(1,438)
Other comprehensive income (loss) before reclassification	86	293
Amounts reclassified from accumulated other comprehensive income (loss)	108	182
Net current period other comprehensive income (loss)	194	475
Balance	$ (769)	$ (963)	$ (1,438)

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(1)
-URI https://asc.fasb.org/extlink&oid=128097895&loc=SL121327923-165333

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=128097895&loc=SL121327923-165333

+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	$ 56,837	$ 52,492	$ 48,678	$ 44,880	$ 45,007	$ 45,741	$ 43,661	$ 43,679	$ 202,887	$ 178,088	$ 163,008
Net securities gains									21	797	433
Income tax expense	4,987	6,237	5,584	4,539	5,507	5,469	5,705	5,030	21,347	21,711	19,539
Other expense									13,124	8,905	8,197
NET INCOME	$ 25,977	$ 28,525	$ 25,673	$ 23,642	$ 24,283	$ 24,119	$ 24,348	$ 22,983	103,817	95,733	84,337
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
NET INCOME									(1,290)	448	154
Reclassification out of Accumulated Other Comprehensive Income \| Unrealized Gains and (Losses) on Available-for-Sales Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income									(1,518)
Net securities gains									21	797	433
Income tax expense									315	(167)	(91)
NET INCOME									(1,182)	630	342
Reclassification out of Accumulated Other Comprehensive Income \| Defined Benefit Pension Items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense									36	60	63
Other expense									(144)	(242)	(251)
NET INCOME									$ (108)	$ (182)	$ (188)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

SELECTED QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Selected Quarterly Financial Information [Abstract]
Interest income	$ 75,353	$ 62,558	$ 53,622	$ 48,034	$ 48,322	$ 49,295	$ 47,625	$ 47,977	$ 239,567	$ 193,219	$ 193,103
Interest expense	18,516	10,066	4,944	3,154	3,315	3,554	3,964	4,298	36,680	15,131	30,095
NET INTEREST INCOME	56,837	52,492	48,678	44,880	45,007	45,741	43,661	43,679	202,887	178,088	163,008
Provision for credit losses	8,958	0	0	417	0	1,300	(1,700)	1,477	9,375	1,077	14,770
CREDIT LOSSES	47,879	52,492	48,678	44,463	45,007	44,441	45,361	42,202	193,512	177,011	148,238
Noninterest income	10,519	10,164	10,492	10,687	9,709	11,114	11,340	12,557
Noninterest expense	27,434	27,894	27,913	26,969	24,926	25,967	26,648	26,746	110,210	104,287	91,205
Income tax expense	4,987	6,237	5,584	4,539	5,507	5,469	5,705	5,030	21,347	21,711	19,539
NET INCOME	$ 25,977	$ 28,525	$ 25,673	$ 23,642	$ 24,283	$ 24,119	$ 24,348	$ 22,983	$ 103,817	$ 95,733	$ 84,337
Basic earnings per common share (in USD per share)	$ 1.02	$ 1.12	$ 1.00	$ 0.93	$ 0.95	$ 0.95	$ 0.96	$ 0.90	$ 4.07	$ 3.76	$ 3.31
Diluted earnings per common share (in USD per share)	$ 1.01	$ 1.11	$ 1.00	$ 0.92	$ 0.95	$ 0.94	$ 0.95	$ 0.90	$ 4.04	$ 3.74	$ 3.30

LEASES - Maturity Analysis (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2023	$ 727
2024	744
2025	756
2026	731
2027	753
2028 and thereafter	2,185
Total undiscounted lease payments	5,896
Less imputed interest	(600)
Lease liability	5,296
Right-of-use asset	$ 5,296
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost	$ 667	$ 536	$ 536
Short-term lease cost	22	24	24
Total lease cost	$ 689	$ 560	$ 560

LEASES - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating cash outflows from operating leases	$ 667	$ 536	$ 536
Weighted-average remaining lease term - operating leases	7 years 3 months 18 days	7 years 10 months 24 days	8 years 9 months 18 days
Weighted average discount rate - operating leases	2.50%	2.80%	2.80%

PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Fair Values of Pension Plan and Postretirement Plan Assets by Asset Category (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	$ 1,820	$ 2,303
Pension Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	718	923
Pension Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	43	104
Pension Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	131	106
Pension Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	158	193
Pension Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	34	73
Pension Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	232	273
Pension Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	484	572
Pension Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	20	59
SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	606	848
SERP Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	249	327
SERP Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	16	38
SERP Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	43	38
SERP Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	57	71
SERP Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	12	27
SERP Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	63	85
SERP Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	149	222
SERP Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	17	40
SERP Benefits \| Interest and dividend income
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets		1
Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	1,820	2,303
Level 1 \| Pension Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	718	923
Level 1 \| Pension Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	43	104
Level 1 \| Pension Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	131	106
Level 1 \| Pension Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	158	193
Level 1 \| Pension Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	34	73
Level 1 \| Pension Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	232	273
Level 1 \| Pension Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	484	572
Level 1 \| Pension Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	20	59
Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	606	848
Level 1 \| SERP Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	249	327
Level 1 \| SERP Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	16	38
Level 1 \| SERP Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	43	38
Level 1 \| SERP Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	57	71
Level 1 \| SERP Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	12	27
Level 1 \| SERP Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	63	85
Level 1 \| SERP Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	149	222
Level 1 \| SERP Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	17	40
Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| Pension Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 2 \| SERP Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| Pension Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Equity securities - US large cap common stocks
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Equity securities - US mid cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Equity securities - US small cap stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Equity securities - international stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Equity securities - emerging markets stock mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Debt securities - intermediate term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Debt securities - short term bond mutual funds
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Level 3 \| SERP Benefits \| Cash - money market account
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	$ 0	$ 0