0001104659-21-026486 | 10-K | XBRL Viewer

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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2020	Feb. 17, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Transition Report	false
Document Period End Date	Dec. 31, 2020
Entity File Number	0-11487
Entity Address, Address Line Two	P.O. Box 1387
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, 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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,289,469
Entity Central Index Key	0000721994
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Public Float			$ 1,111,392,010
Document Annual Report	true
ICFR Auditor Attestation Flag	true

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 74,457	$ 68,605
Short-term investments	175,470	30,776
Total cash and cash equivalents	249,927	99,381
Securities available-for-sale (carried at fair value)	734,845	608,233
Real estate mortgage loans held-for-sale	11,218	4,527
Loans, net of allowance for loan losses of $61,408 and $50,652	4,587,748	4,015,176
Land, premises and equipment, net	59,298	60,365
Bank owned life insurance	95,227	83,848
Federal Reserve and Federal Home Loan Bank Stock	13,772	13,772
Accrued interest receivable	18,761	15,391
Goodwill	4,970	4,970
Other assets	54,669	41,082
Total assets	5,830,435	4,946,745
LIABILITIES
Noninterest bearing deposits	1,538,331	983,307
Interest bearing deposits	3,498,474	3,150,512
Total deposits	5,036,805	4,133,819
Borrowings
Federal Home Loan Bank advances	75,000	170,000
Miscellaneous borrowings	10,500
Total borrowings	85,500	170,000
Accrued interest payable	5,959	11,604
Other liabilities	44,987	33,222
Total liabilities	5,173,251	4,348,645
Commitments, off-balance sheet risks and contingencies (Notes 1 and 18)
STOCKHOLDERS' EQUITY
Common stock: 90,000,000 shares authorized, no par value 25,713,408 shares issued and 25,239,748 outstanding as of December 31, 2020 25,623,016 shares issued and 25,444,275 outstanding as of December 31, 2019	114,927	114,858
Retained earnings	529,005	475,247
Accumulated other comprehensive income	27,744	12,059
Treasury stock, at cost (473,660 shares and 178,741 shares as of December 31, 2020 and 2019, respectively)	(14,581)	(4,153)
Total stockholders' equity	657,095	598,011
Noncontrolling interest	89	89
Total equity	657,184	598,100
Total liabilities and equity	$ 5,830,435	$ 4,946,745

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Valuation allowance	$ 61,408	$ 50,652
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)	25,713,408	25,623,016
Common stock, shares outstanding (in shares)	25,239,748	25,444,275
Treasury stock, at cost	473,660	178,741

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest and fees on loans
Taxable	$ 176,538	$ 196,733	$ 181,451
Tax exempt	647	951	814
Interest and dividends on securities
Taxable	6,973	8,909	9,717
Tax exempt	8,577	7,127	6,079
Interest on short-term investments	368	1,490	909
Total interest income	193,103	215,210	198,970
Interest on deposits	29,342	57,148	44,913
Interest on borrowings
Short-term	506	1,311	1,143
Long-term	247	1,704	1,643
Total interest expense	30,095	60,163	47,699
NET INTEREST INCOME	163,008	155,047	151,271
Provision for loan losses	14,770	3,235	6,400
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	148,238	151,812	144,871
NONINTEREST INCOME
Wealth advisory fees	7,468	6,835	6,344
Investment brokerage fees	1,670	1,687	1,458
Service charges on deposit accounts	10,110	15,717	15,831
Loan and service fees	10,085	9,911	9,291
Merchant and interchange fee income	2,408	2,641	2,461
Bank owned life insurance income	2,105	1,890	1,244
Interest rate swap fee income	5,089	1,691	475
Mortgage banking income	3,911	1,626	1,150
Net securities gains (losses)	433	142	(50)
Other income	3,564	2,857	2,098
Total noninterest income	46,843	44,997	40,302
NONINTEREST EXPENSE
Salaries and employee benefits	49,413	48,742	47,645
Net occupancy expense	5,851	5,295	5,149
Equipment costs	5,766	5,521	5,243
Data processing fees and supplies	11,864	10,407	9,685
Corporate and business development	3,093	4,371	5,066
FDIC insurance and other regulatory fees	1,707	638	1,701
Professional fees	5,314	4,644	3,798
Other expense	8,197	9,806	7,942
Total noninterest expense	91,205	89,424	86,229
INCOME BEFORE INCOME TAX EXPENSE	103,876	107,385	98,944
Income tax expense	19,539	20,338	18,533
NET INCOME	$ 84,337	$ 87,047	$ 80,411
BASIC WEIGHTED AVERAGE COMMON SHARES	25,469,242	25,588,404	25,288,533
BASIC EARNINGS PER COMMON SHARE	$ 3.31	$ 3.40	$ 3.18
DILUTED WEIGHTED AVERAGE COMMON SHARES	25,573,941	25,758,893	25,727,831
DILUTED EARNINGS PER COMMON SHARE	$ 3.30	$ 3.38	$ 3.13
Wealth advisory fees
NONINTEREST INCOME
Wealth advisory fees	$ 7,468	$ 6,835	$ 6,344

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 84,337	$ 87,047	$ 80,411
Change in securities available-for-sale:
Unrealized holding gain (loss) on securities available-for-sale arising during the period	20,148	23,438	(7,339)
Reclassification adjustment for (gains) losses included in net income	(433)	(142)	50
Net securities gain (loss) activity during the period	19,715	23,296	(7,289)
Tax effect	(4,140)	(4,893)	1,637
Net of tax amount	15,575	18,403	(5,652)
Defined benefit pension plans:
Net gain (loss) on defined benefit pension plans	(105)	(409)	269
Amortization of net actuarial loss	251	205	266
Net gain (loss) on activity during the period	146	(204)	535
Tax effect	(36)	51	(163)
Net of tax amount	110	(153)	372
Total other comprehensive income (loss), net of tax	15,685	18,250	(5,280)
Comprehensive income	$ 100,022	$ 105,297	$ 75,131

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings Adoption of ASU 2017-08	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total Stockholders' Equity Adoption of ASU 2017-08	Total Stockholders' Equity	Noncontrolling Interest	Adoption of ASU 2017-08	Total
Balance at Dec. 31, 2017	$ 108,862		$ 363,794	$ (670)	$ (3,408)		$ 468,578	$ 89		$ 468,667
Balance (in shares) at Dec. 31, 2017	25,025,933
Increase (Decrease) in Stockholders' Equity
Net income			80,411				80,411			80,411
Other comprehensive income (loss), net of tax				(5,280)			(5,280)			(5,280)
Cash dividends declared			(25,291)				(25,291)			(25,291)
Treasury shares purchased under deferred directors' plan	$ (463)				463		0
Treasury shares purchased under deferred directors' plan (in shares)	(9,625)
Treasury shares sold and distributed under deferred directors' plan	$ (115)				115		0
Treasury shares sold and distributed under deferred directors' plan (in shares)	5,636
Stock activity under equity compensation plans	$ 2,435						2,435			2,435
Stock activity under equity compensation plans (in shares)	106,829
Stock based compensation expense	$ 5,608						5,608			5,608
Balance (Accounting Standards Update 2018-02) at Dec. 31, 2018			173	(173)			0
Balance (Accounting Standards Update 2014-09) at Dec. 31, 2018			24				24			24
Balance (Accounting Standards Update 2016-01) at Dec. 31, 2018			68	(68)			0
Balance at Dec. 31, 2018	$ 112,383		419,179	(6,191)	(3,756)		521,615	89		521,704
Balance (in shares) at Dec. 31, 2018	25,128,773
Increase (Decrease) in Stockholders' Equity
Net income			87,047				87,047			87,047
Other comprehensive income (loss), net of tax				18,250			18,250			18,250
Cash dividends declared			(29,652)				(29,652)			(29,652)
Cashless exercise of warrants							0
Cashless exercise of warrants (in shares)	224,066
Treasury shares purchased under deferred directors' plan	$ (515)				515		0
Treasury shares purchased under deferred directors' plan (in shares)	(11,481)
Treasury shares sold and distributed under deferred directors' plan	$ (118)				118		0
Treasury shares sold and distributed under deferred directors' plan (in shares)	5,699
Stock activity under equity compensation plans	$ 2,109						2,109			2,109
Stock activity under equity compensation plans (in shares)	97,218
Stock based compensation expense	$ 4,187						4,187			4,187
Balance (Accounting Standards Update 2016-01) at Dec. 31, 2019		$ (1,327)				$ (1,327)			$ (1,327)
Balance at Dec. 31, 2019	$ 114,858		475,247	12,059	(4,153)		598,011	89		598,100
Balance (in shares) at Dec. 31, 2019	25,444,275
Increase (Decrease) in Stockholders' Equity
Cumulative period adjustment made to retained earnings										475,247
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	$ 0				(10,012)		(10,012)			(10,012)
Treasury shares purchased under share repurchase plan (in shares)	(289,101)
Treasury shares purchased under deferred directors' plan	$ (535)				535		0
Treasury shares purchased under deferred directors' plan (in shares)	(11,566)
Treasury shares sold and distributed under deferred directors' plan	$ (119)				119		0
Treasury shares sold and distributed under deferred directors' plan (in shares)	5,748
Stock activity under equity compensation plans	$ 2,137						2,137			2,137
Stock activity under equity compensation plans (in shares)	90,392
Stock based compensation expense	$ 1,790						1,790			1,790
Balance at Dec. 31, 2020	$ 114,927		$ 529,005	$ 27,744	$ (14,581)		$ 657,095	$ 89		657,184
Balance (in shares) at Dec. 31, 2020	25,239,748
Increase (Decrease) in Stockholders' Equity
Cumulative period adjustment made to retained earnings										$ 529,005

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends declared, per share	$ 1.20	$ 1.16	$ 1.00

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 84,337,000	$ 87,047,000	$ 80,411,000
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	6,042,000	5,930,000	5,654,000
Provision for loan losses	14,770,000	3,235,000	6,400,000
Net loss on sale and write down of other real estate owned	0	0	16,000
Amortization of loan servicing rights	772,000	528,000	503,000
Net change in loan servicing rights valuation allowance	715,000	0	0
Loans originated for sale	(117,600,000)	(66,008,000)	(49,816,000)
Net gain on sales of loans	(4,510,000)	(2,043,000)	(1,713,000)
Proceeds from sale of loans	114,244,000	64,820,000	51,715,000
Net (gain) loss on sale of premises and equipment	86,000	(3,000)	1,000
Net (gain) loss on sales and calls of securities available-for-sale	(433,000)	(142,000)	50,000
Net amortization of available -for-sale securities	3,998,000	3,947,000	3,177,000
Stock based compensation expense	1,790,000	4,187,000	5,608,000
Earnings on life insurance	(2,105,000)	(1,890,000)	(1,244,000)
Gain on life insurance	(730,000)	(841,000)	(206,000)
Tax benefit of stock award issuances	(71,000)	(529,000)	(761,000)
Net change:
Interest receivable and other assets	(6,315,000)	(4,733,000)	(3,301,000)
Interest payable and other liabilities	(7,762,000)	6,534,000	8,481,000
Total adjustments	2,891,000	12,992,000	24,564,000
Net cash from operating activities	87,228,000	100,039,000	104,975,000
Cash flows from investing activities:
Proceeds from sale of securities available-for-sale	8,018,000	57,114,000	15,302,000
Proceeds from maturities, calls and principal paydowns of securities available-for-sale	97,998,000	67,818,000	53,817,000
Purchases of securities available-for-sale	(216,478,000)	(129,453,000)	(126,551,000)
Purchase of life insurance	(10,409,000)	(5,552,000)	(423,000)
Net increase in total loans	(587,377,000)	(152,119,000)	(101,670,000)
Proceeds from sales of land, premises and equipment	658,000	14,000	461,000
Purchases of land, premises and equipment	(5,719,000)	(7,998,000)	(7,968,000)
Proceeds from sales of other real estate owned	0	0	21,000
Proceeds from life insurance	1,285,000	1,483,000	569,000
Net cash from investing activities	(712,024,000)	(168,693,000)	(166,442,000)
Cash flows from financing activities:
Net increase in total deposits	902,986,000	89,754,000	35,410,000
Net increase (decrease) in short-term borrowings	10,500,000	(75,555,000)	174,903,000
Payments on short-term FHLB borrowings	(170,000,000)	0	(80,000,000)
Payments on long-term FHLB borrowings	0	0	(30,000)
Proceeds from long-term FHLB borrowings	75,000,000	0	0
Payments on subordinated debentures	0	(30,928,000)	0
Common dividends paid	(30,566,000)	(29,639,000)	(25,278,000)
Preferred dividends paid	(13,000)	(13,000)	(13,000)
Payments related to equity incentive plan	(2,137,000)	(2,109,000)	(2,435,000)
Purchase of treasury stock	(10,547,000)	(515,000)	(463,000)
Sales of treasury stock	119,000	118,000	115,000
Net cash from financing activities	775,342,000	(48,887,000)	102,209,000
Net change in cash and cash equivalents	150,546,000	(117,541,000)	40,742,000
Cash and cash equivalents at beginning of the year	99,381,000	216,922,000	176,180,000
Cash and cash equivalents at end of the year	249,927,000	99,381,000	216,922,000
Cash paid during the period for:
Interest	35,740,000	58,964,000	43,606,000
Income taxes	19,335,000	21,035,000	19,033,000
Supplemental non-cash disclosures:
Loans transferred to other real estate owned	35,000	0	316,000
Property transferred to held for sale	0	0	221,000
Right-of-use assets obtained in exchange for lease liabilities	$ 0	$ 5,483,000	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – 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 50 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 internet business banking and on-line 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 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 amount of impairment is split into two components as follows: 1) other-than-temporary impairment (OTTI) related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities which are included in other assets, are carried at fair value with changes in fair value recorded through earnings.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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 loan 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 for impairment and individually classified impaired 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, 2020 and 2019 was $14.6 million and $11.5 million.

Allowance for Loan Losses:

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the inability to fully collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company has an established process to determine the adequacy of the allowance for loan losses that generally includes consideration of the following factors: changes in the nature and volume of the loan portfolio, overall portfolio quality and current economic conditions that may affect the borrowers’ ability to repay. Consideration is not limited to these factors, although they represent the most commonly cited factors. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available or as future events change. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience, subject to a floor, adjusted for current factors. A detailed analysis is performed on loans that are classified but determined not to be impaired which incorporates different scenarios where the risk that the borrower will be unable or unwilling to repay its debt in full or on time is combined with an estimate of loss in the event the borrower cannot pay to develop non-specific allocations for such loan pools. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent three years, subject to a floor. This loss experience is supplemented with other qualitative factors based on the risks present for each portfolio segment. These factors include consideration of the following: levels of, and trends in, delinquencies and impaired loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial, consumer 1-4 family mortgage and other consumer. The risk characteristics of each of the identified portfolio segments are as follows:

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Commercial and Industrial – Borrowers may be subject to industry conditions including decreases in product demand; increases 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 the uninterrupted flow of funds to states and other political subdivisions for the purpose of debt repayments on loans held by the Bank.

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 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 impaired 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. Loans, for which the terms have been modified and a concession has been granted for borrowers experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired and may be either accruing or non-accruing. Nonaccrual troubled debt restructurings follow the same policy as described above for other loans. Impairment for troubled debt restructurings 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. Impairment is evaluated 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, agri-business 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 impairment 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 impaired. 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 impaired, 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 if repayment is expected solely from the collateral. All classes of commercial and industrial, commercial real estate and multifamily residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage 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.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Troubled debt restructured loans are considered for removal from troubled debt restructuring status in the year following modification or at time of subsequent restructuring for loans with cumulative principal forgiveness if the interest rate is considered a market rate at the time of modification and it has been performing according to the terms of the modification for a reasonable period of time long enough to observe an ability to repay under the modified terms. If removed from troubled debt restructuring status, the loan continues to be evaluated for impairment with either 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. In addition, troubled debt restructured loans with subsequent modifications that do not have cumulative principal forgiveness are considered for removal from troubled debt restructuring status at the time of the subsequent modification if the following circumstances exist: (1) at the time of the subsequent restructuring, the borrower is not experiencing financial difficulties; (2) under the terms of the subsequent restructuring agreement no concession has been granted to the borrower; and (3) the subsequent restructuring agreement includes market terms that are no less favorable than those that would be offered for comparable new debt. Upon meeting these criteria, the loan is no longer individually evaluated for impairment and is no longer disclosed as a troubled debt restructuring.

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 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, 2020 and 2019 were $9.2 million and $6.7 million, respectively and are included with other assets in the consolidated balance sheet. The Company also has a commitment to fund an additional $2.6 million at December 31, 2020 in two of the limited partnerships compared to $1.6 million at December 31, 2019, which is included with other liabilities in the consolidated balance sheet.

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, 2020 and 2019, the balance of other real estate owned was $316,000 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 totaled $1.2 million, $1.1 million and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Late fees and ancillary fees related to loan servicing are not material.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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 $3.5 million and $3.8 million as of December 31, 2020 and 2019, respectively.

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $351.0 million and $337.9 million at December 31, 2020 and 2019. Custodial escrow balances maintained in connection with serviced loans were $1.7 million and $1.6 million at year end 2020 and 2019, respectively.

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.

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.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The notional amount of the combined interest rate swaps with customers and counterparties at December 31, 2020 and 2019 was $819.1 million and $349.6 million, respectively. The fair value of the interest rate swap asset was $21.8 million and $7.3 million and the fair value of the interest rate swap liability was $21.8 million and $7.9 million at December 31, 2020 and 2019, respectively.

The Company is a party in risk participation transactions of interest rate swaps, which had a total notional amount of $5.0 million at December 31, 2020.

Bank Owned Life Insurance:

At December 31, 2020 and 2019, the Company owned $90.4 million and $79.8 million, respectively, of life insurance policies on certain officers to provide a life insurance benefit for these officers. At December 31, 2020 and 2019, the Company also owned $4.8 million and $4.0 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 will 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.

Repurchase Agreements:

Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. This product was discontinued during 2019.

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.

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.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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 15 – 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 2020 and 2019 were 473,660 and 178,741 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 184,559 and 178,741 shares of treasury stock as of December 31, 2020 and 2019, respectively. Because these shares are held in trust for the participants, 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:

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale and changes in the funded status of the pension plan, which are also recognized as separate components of equity.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Loss Contingencies:

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

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 year-end 2020. The Company was required to have $28.9 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at year end 2019. The Company met this requirement for 2019.

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.

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.

Adoption of New Accounting Standards:

In January 2017, the FASB issued ASU No. 2017-04 “Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment.” These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this new accounting standard on January 1, 2020. Adopting this standard did not have an impact on the Company’s financial condition or results of operations.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” These amendments modify the disclosure requirements in Topic 820 as follows:

Removals: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements.

Modifications: for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.

Additions: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.

The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should all be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted ASU 2018-13 on January 1, 2020 and it did not have a material impact on its financial condition or results of operations.

In August 2018, the FASB issued ASU No. 2018-15 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contact with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. Early adoption is permitted. The Company adopted ASU 2018-15 on January 1, 2020 and it did not have a material impact on its financial condition or results of operations.

Newly Issued But Not Yet Effective Accounting Standards:

In June 2016, the FASB issued guidance related to credit losses on financial instruments. This update, commonly referred to as the CECL methodology, will change the accounting for credit losses on loans and debt securities. Under the new guidance, the Company’s measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. For loans, this measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model previously required, but still permitted, under GAAP, which delays recognition until it is probable a loss has been incurred. In addition, the guidance will modify the other-than-temporary impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which will allow for reversal of credit impairments in future periods. This guidance is effective, subject to optional delay discussed below, for the Company for fiscal years beginning after December 15, 2019, including interim periods in those fiscal years.

The Company implemented the CECL methodology and ran it concurrently with the historical incurred method. Under a provision provided by the CARES Act, the Company elected to delay the adoption of FASB’s new rule covering the CECL standard. On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, 2021. This law extended relief for troubled debt restructurings and provided for further delay of the current expected credit losses adoption under the CARES Act to January 1, 2022, with early adoption permitted. The Company elected to remain on the incurred loan loss methodology for 2020. The Company will adopt the CECL standard during the first quarter of 2021, effective January 1, 2021.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The Company’s day one adjustment to the allowance for credit losses will be an increase in the allowance for credit losses of $9.1 million an offset, net of taxes, to stockholders’ equity. The calculation will require approval by the loan review committee and board of directors in accordance with the Company’s internal controls over financial reporting. Additionally, the Company has evaluated the need to recognize an allowance for credit impairment for available-for-sale debt securities. The impact on available-for-sale debt securities is subject to a limitation, which is based on the fair value of the debt securities. When evaluating the credit quality of our existing portfolio, the Company does not expect the allowance for credit impairment for available-for-sale securities to be significant.

The future impact of CECL on the Company’s allowance for credit losses and provision expense subsequent to the initial adoption will depend on changes in the loan portfolio, economic conditions and refinements to key assumptions including economic forecasting and qualitative factors.

In August 2018, the FASB issued ASU 2018-14 “Compensation — Retirement Benefits — Defined Benefit Plans — General (Topic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans.” The ASU updates the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans by adding, clarifying and removing certain disclosures. These amendments are effective for fiscal years ending after December 15, 2020, for public business entities, and are to be applied on a retrospective basis to all periods presented. Management has reviewed the standard and does not anticipate ASU 2018-14 will have a material impact on its financial statements.

In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” These amendments remove specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences where there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. It also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacts changes in tax laws in interim periods. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is assessing ASU 2019-12 and its impact on its financial statements.

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 other indexes. The Company has identified loans that will renew prior to 2021 and will obtain updated reference rate language at the time of renewal. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop internal milestones during this transitional period. The Company has adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The guidance under ASC-848 will be available for a limited time, generally through December 31, 2022. The Company expects to adopt the LIBOR transition relief allowed under this standard.

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, 2020

SECURITIES

SECURITIES

NOTE 2 – SECURITIES

Information related to the fair value and amortized cost of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at December 31 is provided in the tables below.


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gain		Losses		Value
2020
U.S. government sponsored agencies	$	36,492	$	56	$	(61)	$	36,487
Mortgage-backed securities: residential		270,231		9,289		(17)		279,503
Mortgage-backed securities: commercial		35,877		1,004		—		36,881
State and municipal securities		355,306		26,696		(28)		381,974
Total	$	697,906	$	37,045	$	(106)	$	734,845

2019
Mortgage-backed securities: residential	$	283,817	$	4,751	$	(387)	$	288,181
Mortgage-backed securities: commercial		36,712		262		(2)		36,972
State and municipal securities		270,480		12,828		(228)		283,080
Total	$	591,009	$	17,841	$	(617)	$	608,233

Information regarding the fair value and amortized cost of available-for-sale debt securities by maturity as of December 31, 2020, is presented below. 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.


	Amortized		Fair
(dollars in thousands)	Cost		Value
Due in one year or less	$	2,164	$	2,175
Due after one year through five years		11,543		11,850
Due after five years through ten years		35,829		37,960
Due after ten years		342,262		366,476
		391,798		418,461
Mortgage-backed securities		306,108		316,384
Total debt securities	$	697,906	$	734,845

Security proceeds, gross gains and gross losses for 2020, 2019 and 2018 were as follows:



(dollars in thousands)	2020		2019		2018
Sales of securities available-for-sale
Proceeds	$	8,018	$	57,114	$	15,302
Gross gains		433		279		21
Gross losses		—		(137)		(71)
Number of securities		17		46		29

Securities with carrying values of $382.7 million and $59.3 million were pledged as of December 31, 2020 and 2019, respectively, as collateral for borrowings from the FHLB and Federal Reserve Bank and for other purposes as permitted or required by law.

Information regarding securities with unrealized losses as of December 31, 2020 and 2019, 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
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
2020
U.S. government sponsored agencies	$	19,800	$	61	$	—	$	—	$	19,800	$	61
Mortgage-backed securities: residential		3		—		3,112		17		3,115		17
Mortgage-backed securities: commercial		—		—		—		—		—		—
State and municipal securities		6,921		28		—		—		6,921		28
Total temporarily impaired	$	26,724	$	89	$	3,112	$	17	$	29,836	$	106

2019
Mortgage-backed securities: residential	$	23,436	$	112	$	14,174	$	275	$	37,610	$	387
Mortgage-backed securities: commercial		4,591		2		—		—		4,591		2
State and municipal securities		14,188		228		—		—		14,188		228
Total temporarily impaired	$	42,215	$	342	$	14,174	$	275	$	56,389	$	617

NOTE 2 – SECURITIES (continued)

The number of securities with unrealized losses as of December 31, 2020 and 2019 is presented below.


	Less than	12 months
	12 months	or more	Total
2020
U.S. government sponsored agencies	3	—	3
Mortgage-backed securities: residential	2	1	3
Mortgage-backed securities: commercial	—	—	—
State and municipal securities	2	—	2
Total temporarily impaired	7	1	8

2019
Mortgage-backed securities: residential	7	6	13
Mortgage-backed securities: commercial	1	—	1
State and municipal securities	11	—	11
Total temporarily impaired	19	6	25

There were no debt securities with credit losses recognized in income during 2020, 2019 or 2018.

Ninety-nine percent of the securities are backed by the U.S. government, government agencies, government sponsored agencies or are rated above investment grade, except for certain non-local or local municipal securities, which are not rated. For the government, government agencies, government-sponsored agencies and municipal securities, based on credit risk monitoring of municipal securities portfolio, management did not have concerns of credit losses and there was nothing to indicate that full principal will not be received. Management considered any unrealized losses on these securities to be primarily interest rate driven and does not expect material losses given current market conditions unless the securities are sold. However, at this time management does not have the intent to sell and it is more likely than not that it will not be required to sell these securities before the recovery of their amortized cost basis.

The Company does not have a history of actively trading securities, but keeps the securities available-for-sale should liquidity for interest rate risk management or other needs develop that would warrant the sale of securities. While these securities are held in the available-for-sale portfolio, it is management’s current intent and ability to hold them until a recovery in fair value or maturity.

LOANS

12 Months Ended

Dec. 31, 2020

LOANS

LOANS

NOTE 3 – LOANS

Total loans outstanding as of the years ended December 31, 2020 and 2019 consisted of the following:



(dollars in thousands)	2020		2019
Commercial and industrial loans:
Working capital lines of credit loans	$	626,023	$	709,849
Non-working capital loans		1,165,355		717,019
Total commercial and industrial loans		1,791,378		1,426,868

Commercial real estate and multi-family residential loans:
Construction and land development loans		362,653		287,641
Owner occupied loans		648,019		573,665
Nonowner occupied loans		579,625		571,364
Multi-family loans		304,717		240,652
Total commercial real estate and multi-family residential loans		1,895,014		1,673,322

Agri-business and agricultural loans:
Loans secured by farmland		195,410		174,380
Loans for agricultural production		234,234		205,151
Total agri-business and agricultural loans		429,644		379,531

Other commercial loans		94,013		112,302
Total commercial loans		4,210,049		3,592,023

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		167,847		177,227
Open end and junior lien loans		163,664		186,552
Residential construction and land development loans		12,007		12,966
Total consumer 1-4 family mortgage loans		343,518		376,745

Other consumer loans		103,616		98,617
Total consumer loans		447,134		475,362
Gross loans		4,657,183		4,067,385
Less: Allowance for loan losses		(61,408)		(50,652)
Net deferred loan fees		(8,027)		(1,557)
Loans, net	$	4,587,748	$	4,015,176

The recorded investment in loans does not include accrued interest.

The Company had $19,000 and $1.6 million in residential real estate loans in process of foreclosure as of December 31, 2020 and 2019, respectively.

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

12 Months Ended

Dec. 31, 2020

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

NOTE 4 – ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

The following tables present the activity and balance in the allowance for loan losses by portfolio segment for the year ended December 31, 2020, 2019 and 2018. PPP loans are fully guaranteed by the United States Small Business Administration and have not been allocated for within the allowance for loan losses.

Commercial

Real Estate

Commercial

and

Agri-business

Consumer

and

Multi-family

and

Other

1-4 Family

Other

(dollars in thousands)

Industrial

Residential

Agricultural

Commercial

Mortgage

Consumer

Unallocated

Total

December 31, 2020

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)

—

(141)

(516)

—

(5,253)

Recoveries

428

315

—

333

163

—

1,239

Net loans (charged-off) recovered

(4,096)

243

—

192

(353)

—

(4,014)

Ending balance

28,333

22,907

3,043

416

2,619

951

3,139

61,408


			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2019
Beginning balance	$	22,518	$	15,393	$	4,305	$	368	$	2,292	$	283	$	3,294	$	48,453
Provision for loan losses		4,259		259		(444)		79		(219)		275		(974)		3,235
Loans charged-off		(1,447)		(17)		—		—		(110)		(336)		—		(1,910)
Recoveries		459		161		8		—		123		123		—		874
Net loans (charged-off) recovered		(988)		144		8		—		13		(213)		—		(1,036)
Ending balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652


			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2018
Beginning balance	$	21,097	$	14,714	$	4,920	$	577	$	2,768	$	379	$	2,666	$	47,121
Provision for loan losses		5,884		1,140		(657)		(209)		(536)		150		628		6,400
Loans charged-off		(5,215)		(491)		—		—		(48)		(357)		—		(6,111)
Recoveries		752		30		42		—		108		111		—		1,043
Net loans (charged-off) recovered		(4,463)		(461)		42		—		60		(246)		—		(5,068)
Ending balance	$	22,518	$	15,393	$	4,305	$	368	$	2,292	$	283	$	3,294	$	48,453

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

The following tables present balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2020 and 2019:

Commercial

Real Estate

Commercial

and

Agri-business

Consumer

and

Multi-family

and

Other

1-4 Family

Other

(dollars in thousands)

Industrial

Residential

Agricultural

Commercial

Mortgage

Consumer

Unallocated

Total

December 31, 2020

Allowance for loan losses:

Ending allowance balance attributable to loans:

Individually evaluated for impairment

6,310

1,377

—

270

—

8,041

Collectively evaluated for impairment

22,023

21,530

2,959

416

2,349

951

3,139

53,367

Total ending allowance balance

28,333

22,907

3,043

416

2,619

951

3,139

61,408

Loans:

Loans individually evaluated for impairment

12,533

5,518

428

—

1,700

—

20,179

Loans collectively evaluated for impairment

1,772,393

1,887,054

429,234

93,912

342,999

103,385

—

4,628,977

Total ending loans balance

1,784,926

1,892,572

429,662

93,912

344,699

103,385

—

4,649,156


			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2019
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,324	$	538	$	90	$	—	$	426	$	6	$	—	$	10,384
Collectively evaluated for impairment		16,465		15,258		3,779		447		1,660		339		2,320		40,268
Total ending allowance balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652

Loans:
Loans individually evaluated for impairment	$	19,580	$	4,998	$	445	$	—	$	2,789	$	17	$	—	$	27,829
Loans collectively evaluated for impairment		1,407,246		1,665,842		379,186		112,166		375,210		98,349		—		4,037,999
Total ending loans balance	$	1,426,826	$	1,670,840	$	379,631	$	112,166	$	377,999	$	98,366	$	—	$	4,065,828

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

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


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	346	$	173	$	0
Non-working capital loans		2,399		968		0
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,002		2,930		0
Agri-business and agricultural loans:
Loans secured by farmland		603		283		0
Consumer 1‑4 family loans:
Closed end first mortgage loans		316		236		0
Open end and junior lien loans		5		5		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		433		433		255
Non-working capital loans		11,644		10,959		6,055
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,589		2,588		1,377
Agri-business and agricultural loans:
Loans secured by farmland		145		145		84
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,457		1,459		270
Total	$	22,939	$	20,179	$	8,041

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019:


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	22	$	22	$	—
Non-working capital loans		2,130		735		—
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,189		3,010		—
Agri-business and agricultural loans:
Loans secured by farmland		603		283		—
Loans for ag production		15		15		—
Consumer 1‑4 family loans:
Closed end first mortgage loans		411		330		—
Open end and junior lien loans		121		121		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,214		6,214		3,089
Non-working capital loans		13,230		12,609		6,235
Commercial real estate and multi-family residential loans:
Owner occupied loans		1,988		1,988		538
Agri-business and agricultural loans:
Loans secured by farmland		147		147		90
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,643		1,646		363
Open end and junior lien loans		641		640		53
Residential construction loans		51		52		10
Other consumer loans		17		17		6
Total	$	30,422	$	27,829	$	10,384

NOTE 4 - ALLOWANCE FOR LOAN 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:


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

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2019:


					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	176	$	9	$	9
Non-working capital loans		1,170		40		30
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,354		34		34
Agri-business and agricultural loans:
Loans secured by farmland		283		—		—
Loans for ag production		4		—		—
Consumer 1-4 family loans:
Closed end first mortgage loans		272		3		3
Open end and junior lien loans		133		—		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,335		143		81
Non-working capital loans		11,800		448		410
Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans		1,849		43		39
Agri-business and agricultural loans:
Loans secured by farmland		147		3		1
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,643		45		43
Open end and junior lien loans		268		—		—
Residential construction loans		9		—		—
Other consumer loans		21		2		1
Total	$	26,464	$	770	$	651

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2018:


					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	785	$	26	$	23
Non-working capital loans		1,862		74		68
Commercial real estate and multi-family residential loans:
Construction and land development loans		58		5		4
Owner occupied loans		2,291		36		37
Agri-business and agricultural loans:
Loans secured by farmland		283		—		—
Consumer 1‑4 family loans:
Closed end first mortgage loans		521		13		12
Open end and junior lien loans		205		—		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		3,307		74		12
Non-working capital loans		5,328		138		81
Commercial real estate and multi-family residential loans:
Construction and land development loans		453		26		29
Owner occupied loans		1,631		9		1
Agri-business and agricultural loans:
Loans secured by farmland		12		1		—
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,214		37		36
Open end and junior lien loans		38		—		—
Other consumer loans		47		3		3
Total	$	18,035	$	442	$	306

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.

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

The following table presents the aging of the recorded investment in past due loans as of December 31, 2020 by class of loans:

Greater than

30‑89

90 Days Past

Total Past

Loans Not

Days

Due and Still

Due and

(dollars in thousands)

Past Due

Accruing

Nonaccrual

Total

Commercial and industrial loans:

Working capital lines of credit loans

625,493

—

606

626,099

Non-working capital loans

1,153,540

—

5,287

1,158,827

Commercial real estate and multi-family residential loans:

Construction and land development loans

361,664

—

361,664

Owner occupied loans

642,527

—

5,047

647,574

Nonowner occupied loans

579,050

—

579,050

Multi-family loans

304,284

—

304,284

Agri-business and agricultural loans:

Loans secured by farmland

194,935

—

428

195,363

Loans for agricultural production

234,191

108

—

108

234,299

Other commercial loans

93,912

—

93,912

Consumer 1‑4 family mortgage loans:

Closed end first mortgage loans

165,895

877

116

613

1,606

167,501

Open end and junior lien loans

165,094

137

—

142

165,236

Residential construction loans

11,962

—

11,962

Other consumer loans

103,240

145

—

145

103,385

Total

4,635,787

1,267

116

11,986

13,369

4,649,156

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 by class of loans:


					Greater than
			30‑89		90 Days Past				Total Past
	Loans Not		Days		Due and Still				Due and
(dollars in thousands)	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	703,737	$	10	$	—	$	6,236	$	6,246	$	709,983
Non-working capital loans		710,557		4		—		6,282		6,286		716,843
Commercial real estate and multi-family residential loans:
Construction and land development loans		286,534		—		—		—		—		286,534
Owner occupied loans		569,303		—		—		4,056		4,056		573,359
Nonowner occupied loans		570,687		—		—		—		—		570,687
Multi-family loans		240,260		—		—		—		—		240,260
Agri-business and agricultural loans:
Loans secured by farmland		173,959		—		—		430		430		174,389
Loans for agricultural production		205,228		—		—		14		14		205,242
Other commercial loans		112,166		—		—		—		—		112,166
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		174,902		1,099		45		827		1,971		176,873
Open end and junior lien loans		187,255		188		—		761		949		188,204
Residential construction loans		12,870		—		—		52		52		12,922
Other consumer loans		98,176		173		—		17		190		98,366
Total	$	4,045,634	$	1,474	$	45	$	18,675	$	20,194	$	4,065,828

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

Troubled Debt Restructurings:

Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $5.5 million and $2.5 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2020 and 2019. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.


(dollars in thousands)	2020		2019
Accruing troubled debt restructured loans	$	5,237	$	5,909
Nonaccrual troubled debt restructured loans		6,476		3,188
Total troubled debt restructured loans	$	11,713	$	9,097

During the year ending 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.

Additional concessions were granted to borrowers during 2020 with previously identified troubled debt restructured loans. There were three commercial and industrial loans with recorded investments totaling $2.2 million where the collateral values or cash flows were insufficient to support the loans. These troubled debt restructured loans with additional concessions decreased the allowance by $45,000 and resulted in no charge-offs for year ending December 31, 2020. These concessions are not included in the table below.

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

Pre-Modification

Post-Modification

Extension

Outstanding

Period or

Number of

Recorded

Number of

Range

(dollars in thousands)

Loans

Investment

Loans

(in months)

Troubled Debt Restructurings Commercial and industrial loans:

Working capital lines of credit loans

250

315

Non-working capital loans

4,288

3,691

Commercial real estate and multi-family residential loans:

Owner occupied loans

1,528

1,527

Total

6,066

5,533

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.

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

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 total 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 remain on accrual status, as each deferral is evaluated individually, and management has determined that all contractual cashflows are collectable at this 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.

During the year ending December 31, 2019, 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.

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

Additional concessions were granted to borrowers during 2019 with previously identified troubled debt restructured loans. There were three commercial real estate loans with recorded investments totaling $1.9 million and five commercial and industrial loans with recorded investments totaling $2.4 million where the collateral values or cash flows were insufficient to support the loans. These troubled debt restructured loans with additional concessions decreased the allowance by $484,000 and resulted in no charge-offs for year ending December 31, 2019. These concessions are not included in the table below.

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2019:

Modified Repayment Terms

Pre-Modification

Post-Modification

Extension

Outstanding

Period or

Number of

Recorded

Number of

Range

(dollars in thousands)

Loans

Investment

Loans

(in months)

Troubled Debt Restructurings

Commercial and industrial loans:

Working capital lines of credit loans

Total

For the period ending December 31, 2019, the working capital line of credit troubled debt restructuring described above had no impact to the allowance and no charge-offs were recorded.

During the year ending December 31, 2018, 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.

Additional concessions were granted to borrowers during 2018 with previously identified troubled debt restructured loans. There were three commercial real estate loans with recorded investments totaling $1.3 million and three commercial and industrial loans with recorded investments totaling $1.4 million where the collateral value and/or cash flows do not support those loans. The other three loans are to borrowers for investments in land for residential development which have not had sales activity to support loans with a recorded investments totaling $593,000. These troubled debt restructured loans with additional concessions increased the allowance by $189,000 and resulted in no charge-offs for year ending December 31, 2018. These concessions are not included in the table below.

NOTE 4 - ALLOWANCE FOR LOAN 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, 2018:


						Modified Repayment Terms
		Pre-Modification		Post-Modification			Extension
		Outstanding		Outstanding			Period or
	Number of	Recorded		Recorded		Number of	Range
(dollars in thousands)	Loans	Investment		Investment		Loans	(in months)
Troubled Debt Restructurings Commercial and industrial loans:
Working capital lines of credit loans	1	$	600	$	600	1	0
Non-working capital loans	7		4,628		4,628	7	0‑6
Commercial real estate and multi-family residential loans:
Construction and land
development loans	1		824		824	1	12
Owner occupied loans	2		933		933	2	12
Consumer 1-4 family loans:
Closed end first mortgage loans	1		198		197	1	239
Total	12	$	7,183	$	7,182	12	0‑239

NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued)

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The following table presents 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, 2020, 2019 and 2018.


	2020			2019			2018
	Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Troubled Debt Restructurings that Subsequently Defaulted Commercial and industrial loans:
Non-working capital loans	—	$	—	1	$	601	—	$	—
Total	—	$	—	1	$	601	—	$	—

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.

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 not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard consumer 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 LOAN LOSSES AND CREDIT QUALITY (continued)

As of December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Special

Not

(dollars in thousands)

Pass

Mention

Substandard

Doubtful

Rated

Total

Commercial and industrial loans:

Working capital lines of credit loans

535,071

81,095

9,718

—

215

626,099

Non-working capital loans

1,111,989

26,523

14,820

—

5,495

1,158,827

Commercial real estate and multi-family residential loans:

Construction and land development loans

361,664

—

361,664

Owner occupied loans

608,845

31,355

7,374

—

647,574

Nonowner occupied loans

547,790

31,260

—

579,050

Multi-family loans

282,031

22,253

—

304,284

Agri-business and agricultural loans:

Loans secured by farmland

183,983

10,728

652

—

195,363

Loans for agricultural production

185,875

48,424

—

234,299

Other commercial loans

93,912

—

93,912

Consumer 1‑4 family mortgage loans:

Closed end first mortgage loans

40,682

—

1,695

—

125,124

167,501

Open end and junior lien loans

8,424

—

156,807

165,236

Residential construction loans

—

11,962

Other consumer loans

36,979

253

—

66,153

103,385

Total

3,997,245

251,891

34,264

365,756

4,649,156

As of December 31, 2020, $412.0 million in Paycheck Protection Program loans were included in the “Pass” category of non-working capital loans. These loans were included in this risk rating category because they are fully guaranteed by the Small Business Administration.

As of December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:


			Special						Not
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	631,728	$	40,551	$	37,278	$	—	$	426	$	709,983
Non-working capital loans		673,370		18,782		19,381		—		5,310		716,843
Commercial real estate and multi-family residential loans:
Construction and land development loans		286,534		—		—		—		—		286,534
Owner occupied loans		535,496		14,804		23,059		—		—		573,359
Nonowner occupied loans		569,315		781		591		—		—		570,687
Multi-family loans		240,260		—		—		—		—		240,260
Agri-business and agricultural loans:
Loans secured by farmland		165,005		7,952		1,432		—		—		174,389
Loans for agricultural production		191,489		13,738		15		—		—		205,242
Other commercial loans		112,166		—		—		—		—		112,166
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		47,405		—		1,976		—		127,492		176,873
Open end and junior lien loans		10,845		—		762		—		176,597		188,204
Residential construction loans		—		—		51		—		12,871		12,922
Other consumer loans		27,250		—		17		—		71,099		98,366
Total	$	3,490,863	$	96,608	$	84,562	$	—	$	393,795	$	4,065,828

FAIR VALUE

12 Months Ended

Dec. 31, 2020

FAIR VALUE

FAIR VALUE

NOTE 5 – 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).

NOTE 5 – FAIR VALUE (continued)

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 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).

Impaired loans: Impaired loans with specific allocations of the allowance for loan losses are generally based on the fair value of the underlying collateral if 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 impaired 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 30-70% 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) inventory is generally discounted from its cost or book value by 25-75%, depending on the marketability of the goods and ease of transportation; (b) accounts receivable are generally discounted by 40-100% depending on type of receivable, age of valuation, or other estimates of collectability; (c) equipment is valued at a percentage of depreciated book value or recent appraised value, if available, and is typically discounted at 30-100% after various considerations including age and condition of the equipment, marketability, breadth of use, and whether the equipment includes unique components or add-ons. 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, 2020, the fair value of the Company’s Level 3 servicing assets for residential mortgage loans (“MSRs”) was $4.2 million, carried at amortized cost less $715,000 in a valuation reserve, or $3.5 million. These residential mortgage loans have a weighted average interest rate of 3.7%, a weighted average maturity of 20 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, 2020, the constant prepayment speed (“PSA”) used was 204 and discount rate used was 9.4%. At December 31, 2019, the PSA used was 118 and the discount rate used was 9.4%.

At December 31, 2020, the sensitivity of the current fair value of MSRs to an immediate 10% and 20% adverse change in the PSA and discount rate was ($146,000) and ($285,000), respectively for the PSA, and was ($115,000) and ($224,000), respectively for the discount rate. These sensitivities are hypothetical and should not be relied upon. As the figures indicate, changes in value based on a 10% and 20% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in value may not be linear. Also, in this example, the effect of a variation in a particular assumption on the value of the MSR is calculated without changing any other assumption; however, in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract the sensitivities.

NOTE 5 – FAIR VALUE (continued)

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.

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis:

December 31, 2020

Fair Value Measurements Using

Assets

(dollars in thousands)

Level 1

Level 2

Level 3

at Fair Value

Assets:

U.S. government sponsored agency securities

—

36,487

—

36,487

Mortgage-backed securities: residential

—

279,503

—

279,503

Mortgage-backed securities: commercial

—

36,881

—

36,881

State and municipal securities

—

381,834

140

381,974

Total Securities

—

734,705

140

734,845

Mortgage banking derivative

—

1,182

—

1,182

Interest rate swap derivative

—

21,764

—

21,764

Total assets

—

757,651

140

757,791

Liabilities:

Mortgage banking derivative

—

111

—

111

Interest rate swap derivative

—

21,794

—

21,794

Total liabilities

—

21,905

—

21,905


	December 31, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
Mortgage-backed securities: residential	$	—	$	288,181	$	—	$	288,181
Mortgage-backed securities: commercial		—		36,972		—		36,972
State and municipal securities		—		282,935		145		283,080
Total Securities		—		608,088		145		608,233
Mortgage banking derivative		—		198		—		198
Interest rate swap derivative		—		7,263		—		7,263
Total assets	$	—	$	615,549	$	145	$	615,694

Liabilities:
Mortgage banking derivative		—		14		—		14
Interest rate swap derivative		—		7,860		—		7,860
Total liabilities	$	—	$	7,874	$	—	$	7,874

NOTE 5 – FAIR VALUE (continued)

The fair value of Level 3 available-for-sale securities was immaterial to warrant additional recurring fair value disclosures as of December 31, 2020 and 2019.

The tables below present the amount of assets measured at fair value on a nonrecurring basis:


	December 31, 2020
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	—	$	—	$	178	$	178
Non-working capital loans		—		—		4,904		4,904
Commercial real estate and multi-family residential loans:
Owner occupied loans		—		—		1,211		1,211
Agri-business and agricultural loans:
Loans secured by farmland		—		—		61		61
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		—		—		411		411
Total impaired loans	$	—	$	—	$	6,765	$	6,765
Other real estate owned		—		—		0		—
Total assets	$	—	$	—	$	6,765	$	6,765


	December 31, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	—	$	—	$	3,125	$	3,125
Non-working capital loans		—		—		6,374		6,374
Commercial real estate and multi-family residential loans:
Construction and land development loans		—		—		43		43
Owner occupied loans		—		—		1,450		1,450
Agri-business and agricultural loans:
Loans secured by farmland		—		—		57		57
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		—		—		474		474
Open end and junior lien loans		—		—		587		587
Other consumer loans		—		—		11		11
Total impaired loans	$	—	$	—	$	12,121	$	12,121
Other real estate owned		—		—		—		—
Total assets	$	—	$	—	$	12,121	$	12,121

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, 2020:


(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	5,082	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	55	%	16%-100%

Impaired loans:
Commercial real estate		1,211	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	53	%	21%-74%

Impaired loans:
Agribusiness and agricultural		61	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	58	%

Impaired loans:
Consumer 1-4 family mortgage		411	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	11	%	10%-15%

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, 2019:


(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	9,499	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	53	%	1%-100%

Impaired loans:
Commercial real estate		1,493	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	27	%	7%-61%

Impaired loans:
Agribusiness and agricultural		57	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	61	%

Impaired loans:
Consumer 1-4 family mortgage		1,061	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	14	%	5%-100%


Impaired loans:
Other consumer		11	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	36	%

NOTE 5 – FAIR VALUE (continued)

Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a gross carrying amount of $14.6 million, with a valuation allowance of $7.8 million at December 31, 2020, resulting in an increase in provision for loan losses of $2.3 million for the year ended December 31, 2020. At December 31, 2019, impaired loans had a gross carrying amount of $22.2 million, with a valuation allowance of $10.1 million, resulting in an increase in provision for loan losses of $600,000 for the year ended December 31, 2019.

At December 31, 2020 and 2019, other real estate owned had a net carrying amount of $316,000.

The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2020. Items which are not financial instruments are not included.

December 31, 2020

Carrying

Estimated Fair Value

(dollars in thousands)

Value

Level 1

Level 2

Level 3

Total

Financial Assets:

Cash and cash equivalents

249,927

247,228

2,699

—

249,927

Securities available-for-sale

734,845

—

734,705

140

734,845

Real estate mortgages held-for-sale

11,218

—

11,651

—

11,651

Loans, net

4,587,748

—

4,532,639

Mortgage banking derivative

1,182

—

1,182

—

1,182

Interest rate swap derivative

21,764

—

21,764

—

21,764

Federal Reserve and Federal Home Loan Bank Stock

13,772

N/A

Accrued interest receivable

18,761

—

3,801

14,960

18,761

Financial Liabilities:

Certificates of deposit

(1,024,819)

—

(1,033,095)

—

(1,033,095)

All other deposits

(4,011,986)

—

(4,011,986)

Miscellaneous borrowings

(10,500)

—

(10,500)

—

(10,500)

Federal Home Loan Bank advances

(75,000)

—

(68,967)

—

(68,967)

Mortgage banking derivative

(111)

—

(111)

—

(111)

Interest rate swap derivative

(21,794)

—

(21,794)

—

(21,794)

Standby letters of credit

(686)

—

(686)

Accrued interest payable

(5,959)

(66)

(5,893)

—

(5,959)

NOTE 5 – FAIR VALUE (continued)

The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2019. Items which are not financial instruments are not included.


	December 31, 2019
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	99,381	$	96,603	$	2,778	$	—	$	99,381
Securities available-for-sale		608,233		—		608,088		145		608,233
Real estate mortgages held-for-sale		4,527		—		4,614		—		4,614
Loans, net		4,015,176		—		—		3,979,006		3,979,006
Mortgage banking derivative		198		—		198		—		198
Interest rate swap derivative		7,263		—		7,263		—		7,263
Federal Reserve and Federal Home Loan Bank Stock		13,772		N/A		N/A		N/A		N/A
Accrued interest receivable		15,391		—		3,729		11,662		15,391
Financial Liabilities:
Certificates of deposit		(1,192,067)		—		(1,202,060)		—		(1,202,060)
All other deposits		(2,941,752)		(2,941,752)		—		—		(2,941,752)
Federal Home Loan Bank advances		(170,000)		—		(169,998)		—		(169,998)
Mortgage banking derivative		(14)		—		(14)		—		(14)
Interest rate swap derivative		(7,860)		—		(7,860)		—		(7,860)
Standby letters of credit		(915)		—		—		(915)		(915)
Accrued interest payable		(11,604)		(102)		(11,502)		—		(11,604)

LAND, PREMISES AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2020

LAND, PREMISES AND EQUIPMENT, NET

LAND, PREMISES AND EQUIPMENT, NET

NOTE 6 – LAND, PREMISES AND EQUIPMENT, NET

Land, premises and equipment and related accumulated depreciation were as follows at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Land	$	12,472	$	12,511
Premises and improvements		55,682		53,424
Equipment and furniture		38,133		38,691
Total cost		106,287		104,626
Less accumulated depreciation		46,989		44,261
Land, premises and equipment, net	$	59,298	$	60,365

The Company had land, premises and equipment of $100,000 held for sale and included in other assets as of December 31, 2020 and 2019.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 7 – 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 it fair value. At December 31, 2020, 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, 2020. Circumstances did not substantially change during the second half of the year such that the Company did not believe it was necessary to do an additional impairment analysis.

DEPOSITS

12 Months Ended

Dec. 31, 2020

DEPOSITS

DEPOSITS

NOTE 8 – DEPOSITS

The following table details total deposits as of December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Non-interest bearing demand deposits	$	1,538,331	$	983,307
Savings and transaction accounts:
Savings deposits		312,702		234,508
Interest bearing demand deposits		2,160,953		1,723,937
Time deposits:
Other time deposits		239,582		281,934
Deposits of $100,000 to $250,000		271,337		291,805
Deposits of $250,000 or more		513,900		618,328
Total deposits	$	5,036,805	$	4,133,819

NOTE 8 – DEPOSITS (continued)

At December 31, 2020, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Maturing in 2021	$	757,059
Maturing in 2022		195,703
Maturing in 2023		27,767
Maturing in 2024		34,086
Maturing in 2025		9,294
Thereafter		910
Total time deposits	$	1,024,819

During 2020 and 2019 the Bank entered into agreements with IntraFi Network relative to their Insured Cash Sweep One-Way Buy program. As of December 31, 2020, the total amount available to the Bank via this program was $100.0 million, of which, $10.1 million was drawn compared to availability of $200.0 million and $75.1 million usage as of December 31, 2019.

BORROWINGS

12 Months Ended

Dec. 31, 2020

BORROWINGS

BORROWINGS

NOTE 9 – BORROWINGS

For the years ending December 31, advances from the FHLB were as follows:


(dollars in thousands)	2020		2019
Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020	$	—	$	170,000
Federal Home Loan Bank of Indianapolis Putable Advance, 0.39%, Due March 4, 2030		75,000		—
Total	$	75,000	$	170,000

The outstanding FHLB advance at December 31, 2020 of $75.0 million is a fixed-rate putable advance and may not be prepaid by the Company without penalty. All FHLB notes require monthly interest payments and are secured by residential real estate loans and securities with a carrying value of $451.9 million and $453.2 million at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the Company owned $10.4 million 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 $317.3 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 $557.2 million and $446.9 million as of December 31, 2020 and 2019. The Company had a borrowing capacity of $490.4 million and $339.5 million at the Federal Reserve Bank as of December 31, 2020 and 2019, respectively. There were no borrowings outstanding at the Federal Reserve Bank at December 31, 2020 and 2019.

The Company had $350.0 million and $325.0 million of availability in federal funds lines with eleven and twelve correspondent banks as of December 31, 2020 and 2019, respectively; no amounts were drawn on as of either year-end. 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. As of December 31, 2020 and 2019, the total amount approved for the Bank via AFX banks was $394.0 million and $244.0 million, respectively. There were no amounts drawn as of December 31, 2020 and 2019.

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 31, 2020. 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 January 14, 2020. 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. Outstanding borrowings on the credit agreement were $10.5 million and $0 at December 31, 2020 and 2019, respectively.

NOTE 9 – BORROWINGS (continued)

Securities sold under agreements to repurchase (“repo accounts”) represent collateralized borrowings with customers located primarily within the Company’s service area. The Bank discontinued offering this product in early 2019. All repo accounts at December 31, 2018 matured on demand. Repo accounts are not covered by federal deposit insurance and are secured by securities owned.

The following is a schedule, at the end of the year indicated, of statistical information relating to securities sold under agreement to repurchase secured by either U.S. government agency securities or mortgage-backed securities classified as securities available-for-sale. There were no other categories of short-term borrowings for which the average balance outstanding during the period was 30 percent or more of stockholders’ equity at the end of each period.


(dollars in thousands)	2020			2019			2018
Securities sold under agreements to repurchase
Outstanding at year end	$	—		$	—		$	75,555
Approximate average interest rate at year end		—	%		—	%		0.74	%
Highest amount outstanding as of any month end during the year	$	—		$	72,814		$	106,239
Approximate average outstanding during the year		—			15,104			86,874
Approximate average interest rate during the year		—	%		0.86	%		0.58	%

SUBORDINATED DEBENTURES

12 Months Ended

Dec. 31, 2020

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES

NOTE 10 – SUBORDINATED DEBENTURES

Lakeland Statutory Trust II, a trust formed by the Company (the “Trust”), issued $30.0 million of floating rate trust preferred securities on October 1, 2003 as part of a privately placed offering of such securities. The Company issued $30.9 million of subordinated debentures to the Trust in exchange for the proceeds of the Trust. The Company held a controlling interest in the Trust, but did not have a majority of voting rights; therefore the Trust was considered a variable interest entity. The Company was not considered the primary beneficiary of this Trust; therefore, the Trust was not consolidated in the Company’s financial statements, but rather the subordinated debentures was shown as a liability prior to being redeemed.

Subject to the Company having received prior approval of the Federal Reserve, the Company was able to redeem the subordinated debentures, in whole or in part, but in all cases in a principal amount with integral multiples of $1,000, on any interest payment date on or after October 1, 2008 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures were required to be redeemed no later than 2033. These securities were considered Tier I capital (with certain limitations applicable) under current regulatory guidelines and, subject to certain limitations, were also considered Tier 1 capital under Basel III.

On December 31, 2019, the Company redeemed $30.0 million of trust preferred securities of the Trust. The trust preferred securities were redeemed, along with $928,000 in common securities issued by the Trust and held by the Company, as a result of the concurrent redemption of 100% of the Company’s junior subordinated debentures due 2033 and held by the Trust, which underlie the trust preferred securities. The redemption price for the junior subordinated debentures was equal to 100% of the principal amount plus accrued interest up to, but not including, the redemption date. The proceeds from the redemption of the junior subordinated debentures were simultaneously applied to redeem all of the outstanding common securities and the outstanding trust preferred securities at a price of 100% of the aggregate liquidation amount of the trust preferred securities plus accumulated but unpaid distributions up to, but not including, the redemption date. The redemption was pursuant to the optional redemption provisions of the underlying indenture.

PENSION AND OTHER POSTRETIREMENT PLANS

12 Months Ended

Dec. 31, 2020

PENSION AND OTHER POSTRETIREMENT PLANS

PENSION AND OTHER POSTRETIREMENT PLANS

NOTE 11 – 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, 2020 and 2019.

Information as to the Company’s employee benefit plans at December 31, 2020 and 2019 is as follows:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2020		2019		2020		2019
Change in benefit obligation:
Beginning benefit obligation	$	2,715	$	2,118	$	991	$	924
Interest cost		75		87		27		37
Actuarial (gain) loss		276		631		84		164
Benefits paid		(356)		(121)		(134)		(134)
Ending benefit obligation		2,710		2,715		968		991

Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets		2,472		2,151		914		885
Actual return		233		415		99		163
Employer contribution		—		27		—		—
Benefits paid		(356)		(121)		(134)		(134)
Ending plan assets		2,349		2,472		879		914
Funded status at end of year	$	(361)	$	(243)	$	(89)	$	(77)

Amounts recognized in the consolidated balance sheets consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2020		2019		2020		2019
Funded status included in other liabilities	$	(361)	$	(243)	$	(89)	$	(77)

Amounts recognized in accumulated other comprehensive income consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2020		2019		2020		2019
Net actuarial loss	$	1,362	$	1,464	$	553	$	597

The accumulated benefit obligation for the pension plan was $2.7 million for December 31, 2020 and 2019. The accumulated benefit obligation for the SERP was $1.0 million for December 31, 2020 and 2019.

NOTE 11 – 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)	2020		2019		2018		2020		2019		2018
Net pension expense:
Service cost	$	—	$	—	$	—	$	—	$	—	$	—
Interest cost		75		87		93		27		37		34
Expected return on plan assets		(140)		(137)		(138)		(51)		(55)		(61)
Recognized net actuarial loss		171		132		193		80		73		73
Settlement cost		115		—		224		0		0		0
Net pension expense	$	221	$	82	$	372	$	56	$	55	$	46

Net (gain) loss	$	69	$	353	$	(296)	$	36	$	56	$	27
Amortization of net loss		(171)		(132)		(193)		(80)		(73)		(73)
Total recognized in other comprehensive income (loss)		(102)		221		(489)		(44)		(17)		(46)
Total recognized in net pension expense and other comprehensive income (loss)	$	119	$	303	$	(117)	$	12	$	38	$	—

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 $160,000 for the pension plan and $82,000 for the SERP. The settlement costs in 2020 and 2018 were related to participants taking lump sum distributions from the pension plan during those years.

For 2020, 2019 and 2018, 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, 2020, 2019 and 2018 reflect the mortality table in effect for 2020, 2019 and 2018, respectively. For 2020, the mortality assumption was changed to the PRI-2012 White Collar Mortality Table, with full generational Projection Scale MP-2020 as of December 31, 2020, to reflect improved mortality expectations. For 2019, the mortality assumption was the PRI-2012 White Collar Mortality Table, with full generational Projection Scale MP-2019 as of December 31, 2019. For 2018, the mortality assumption was the RP-2014 Mortality Table, adjusted to 2006, with full generational Projection Scale MP-2018 as of December 31, 2018.


	Pension Benefits						SERP Benefits
	2020		2019		2018		2020		2019		2018
The following assumptions were used in calculating the net benefit obligation:

Weighted average discount rate	2.08	%	2.98	%	4.08	%	2.08	%	2.98	%	4.08	%
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	0.53	%	2.01	%	3.33	%	N/A		N/A		N/A
Next 15 years	2.31	%	3.06	%	4.39	%	N/A		N/A		N/A
All future years	3.09	%	3.65	%	4.72	%	N/A		N/A		N/A

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

Weighted average discount rate	2.98	%	4.08	%	3.46	%	2.98	%	4.08	%	3.46	%
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	%

NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

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 3.0%. 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.

The Company’s pension plan asset allocation at year-end 2020 and 2019, target allocation for 2021, and expected long-term rate of return by asset category are as follows:


			Percentage of Plan				Weighted
	Target		Assets				Average Expected
	Allocation		at Year End				Long-Term Rate
Asset Category	2021		2020		2019		of Return
Equity securities	55-65	%	65	%	61	%	8.85	%
Debt securities	35-45	%	31	%	36	%	3.00	%
Other	5-10	%	4	%	3	%	0.10	%
Total			100	%	100	%	6.50	%

The Company’s SERP plan asset allocation at year-end 2020 and 2019, target allocation for 2021, and expected long-term rate of return by asset category are as follows:


			Percentage of Plan				Weighted
	Target		Assets				Average Expected
	Allocation		at Year End				Long-Term Rate
Asset Category	2021		2020		2019		of Return
Equity securities	55-65	%	64	%	65	%	8.85	%
Debt securities	35-45	%	34	%	34	%	3.00	%
Other	5-10	%	2	%	1	%	0.10	%
Total			100	%	100	%	6.50	%

NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

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).

The fair values of the Company’s pension plan assets at December 31, 2020, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	962	$	962	$	—	$	—
Equity securities - US mid cap stock mutual funds		124		124		—		—
Equity securities - US small cap stock mutual funds		129		129		—		—
Equity securities - international stock mutual funds		202		202		—		—
Equity securities - emerging markets stock mutual funds		105		105		—		—
Debt securities - intermediate term bond mutual funds		526		526		—		—
Debt securities - short term bond mutual funds		205		205		—		—
Cash - money market account		93		93		—		—
Total	$	2,346	$	2,346	$	—	$	—

Total pension plan assets available for benefits also include $3,000 in accrued interest and dividend income.

The fair values of the Company’s pension plan assets at December 31, 2019, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2 )		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	912	$	912	$	—	$	—
Equity securities - US mid cap stock mutual funds		115		115		—		—
Equity securities - US small cap stock mutual funds		119		119		—		—
Equity securities - international stock mutual funds		257		257		—		—
Equity securities - emerging markets stock mutual funds		111		111		—		—
Debt securities - intermediate term bond mutual funds		402		402		—		—
Debt securities - short term bond mutual funds		480		480		—		—
Cash - money market account		74		74		—		—
Total	$	2,470	$	2,470	$	—	$	—

NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

Total pension plan assets available for benefits also include $2,000 in accrued interest and dividend income.

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

The fair values of the Company’s SERP assets at December 31, 2020, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2 )		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	360	$	360	$	0	$	0
Equity securities - US mid cap stock mutual funds		23		23		0		0
Equity securities - US small cap stock mutual funds		72		72		0		0
Equity securities - emerging markets stock mutual funds		37		37		0		0
Equity securities - international stock mutual funds		72		72		0		0
Debt securities - intermediate term bond mutual funds		216		216		0		0
Debt securities - short term bond mutual funds		82		82		0		0
Cash - money market account		16		16		0		0
Total	$	878	$	878	$	0	$	0

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

The fair values of the Company’s SERP assets at December 31, 2019, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	353	$	353	$	—	$	—
Equity securities - US mid cap stock mutual funds		46		46		—		—
Equity securities - US small cap stock mutual funds		47		47		—		—
Equity securities - emerging markets stock mutual funds		43		43		—		—
Equity securities - international stock mutual funds		100		100		—		—
Debt securities - intermediate term bond mutual funds		156		156		—		—
Debt securities - short term bond mutual funds		155		155		—		—
Cash - money market account		13		13		—		—
Total	$	913	$	913	$	—	$	—

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 does not expect to contribute to its pension or SERP plans in 2021.

NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued)

Estimated Future Benefit Payments

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


	Pension		SERP
Plan Year	Benefits		Benefits
(dollars in thousands)
2021	$	212	$	131
2022		205		125
2023		214		117
2024		192		109
2025		196		99
2026-2030		839		329

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

OTHER BENEFIT PLANS

12 Months Ended

Dec. 31, 2020

OTHER BENEFIT PLANS

OTHER BENEFIT PLANS

NOTE 12 – 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 employees to contribute 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 $1.9 million, $1.8 million and $1.8 million in 2020, 2019 and 2018, 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, $461,000 and ($31,000) during the years ended December 31, 2020, 2019 and 2018, respectively. This resulted in a deferred compensation liability of $5.7 million and $4.2 million as of year-end 2020 and 2019, 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 $5.2 million as of December 31, 2020. On December 31, 2020, 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, 2020 and 2019 was $4.8 million and $4.4 million, respectively. The related expense for the deferred directors’ compensation and cash plans for the years ended December 31, 2020, 2019 and 2018 was $505,000, $515,000 and $486,000, respectively.

INCOME TAXES

12 Months Ended

Dec. 31, 2020

INCOME TAXES

INCOME TAXES

NOTE 13 – INCOME TAXES

On December 22, 2017, the Tax Cuts and Jobs Act (“Act”) was enacted into law and, among other items, reduced the corporate income tax rate from 35% to 21%, effective January 1, 2018. The enactment of this law resulted in a lower federal income tax rate resulting in a reduction of the benefit provided by the Company’s existing deferred tax assets.

In accordance with ASC Topic 740, “Income Taxes”, the Company revalued its net deferred tax asset based on facts and circumstances available for the reporting period ending December 31, 2017 in which the Act was enacted and through the time the Company issues its financial statements for that reporting period. Through the preparation the Company’s 2017 corporate tax return and the completion of cost segregation studies on new construction projects, the Company recognized a tax benefit of $408,000 for the year ending December 31, 2018.

Income tax expense for the years ended December 31, 2020, 2019 and 2018 consisted of the following:


(dollars in thousands)	2020		2019		2018
Current federal	$	20,032	$	19,430	$	16,871
Deferred federal		(1,688)		(408)		707
Revalue deferred taxes due to tax reform		—		—		(408)
Current state		1,484		1,394		1,462
Deferred state		(289)		(78)		(99)
Total income tax expense	$	19,539	$	20,338	$	18,533

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)	2020		2019		2018
Income taxes at statutory federal rate of 21%	$	21,814	$	22,551	$	20,778
Increase (decrease) in taxes resulting from:
Tax exempt income		(1,925)		(1,682)		(1,434)
Nondeductible expense		117		194		165
State income tax, net of federal tax effect		944		1,040		1,077
Captive insurance premium income		(227)		(310)		(292)
Tax credits		(540)		(548)		(412)
Bank owned life insurance		(595)		(573)		(303)
Long - term incentive plan		(58)		(421)		(641)
Revaluation deferred tax asset at 21% rate		—		—		(408)
Other		9		87		3
Total income tax expense	$	19,539	$	20,338	$	18,533

NOTE 13 – INCOME TAXES (continued)

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2020 and 2019 consisted of the following:


(dollars in thousands)	2020		2019
Deferred tax assets:
Bad debts	$	15,634	$	12,945
Pension and deferred compensation liability		2,006		1,505
Nonaccrual loan interest		892		1,104
Long-term incentive plan		1,212		2,281
Lease liability		1,190		1,303
Other		745		510
		21,679		19,648
Deferred tax liabilities:
Depreciation		4,718		4,741
Loan servicing rights		1,162		1,019
State taxes		524		464
Intangible assets		1,265		1,270
REIT spillover dividend		1,180		1,401
Prepaid expenses		948		795
Lease right of use		1,190		1,303
Other		442		382
		11,429		11,375
Valuation allowance		—		—
Net deferred tax asset	$	10,250	$	8,273

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 ($7.8) million and ($3.6) million for 2020 and 2019, respectively. The deferred income tax asset allocated to the pension plan and SERP included in equity was $476,000 and $512,000 for 2020 and 2019, respectively.

The Company evaluated its deferred tax asset at year end 2020 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, 2020 or 2019. 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 period ending December 31, 2020, 2019 and 2018. 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 2016.

- 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 + Details

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 14 – RELATED PARTY TRANSACTIONS

Loans to principal officers, directors, and their affiliates as of December 31, 2020 and 2019 were as follows:


(dollars in thousands)	2020		2019
Beginning balance	$	83,980	$	83,546
New loans and advances		120,049		55,465
Effect of changes in related parties		1,650		(5,967)
Repayments and renewals		(100,985)		(49,064)
Ending balance	$	104,694	$	83,980

Deposits from principal officers, directors, and their affiliates at year-end 2020 and 2019 were $36.8 million and $33.3 million, respectively.

STOCK BASED COMPENSATION

12 Months Ended

Dec. 31, 2020

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION

NOTE 15 – 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, 2020, 590,460 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, 2020, 2019 and 2018 was employee stock compensation expense of $1.8 million, $4.2 million and $5.6 million, and a related tax benefit of $461,000, $1.1 million and $1.5 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 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 in 2020, 2019 or 2018. Also, there were no modifications of stock option awards during the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020, there was no unrecognized compensation cost related to non-vested stock options granted under the plan.

NOTE 15 – STOCK BASED COMPENSATION (continued)

All outstanding stock options were exercised during the year ended December 31, 2018. The following table presents information on stock awards exercised for the years ended December 31, 2020, 2019, and 2018.


(dollars in thousands)	2020		2019		2018
Total intrinsic value	$	—	$	—	$	243
Cash received		—		—		118
Actual tax benefit realized for tax deductions		—		—		—

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 15,600 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:


		Weighted-Average
		Grant-Date
Nonvested Shares	Shares	Fair Value
Nonvested at January 1, 2020	3,500	$	45.70
Granted	17,100		46.13
Vested	(15,600)		46.32
Nonvested at December 31, 2020	5,000	$	45.22

As of December 31, 2020, there was $56,000 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 0.98 years. The total fair value of shares vested during the years ended December 31, 2020, 2019 and 2018 was $723,000, $737,000 and $726,000, 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 2020-2022, 2019-2021 and 2018-2020 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 2020-2022, 2019-2021 and 2018-2020 Long-Term Incentive Plans at December 31, 2020.


		Weighted-Average
		Grant-Date
Nonvested Shares	Shares	Fair Value
Nonvested at January 1, 2020	277,085	$	44.86
Granted, net	7,053		44.73
Vested	(120,204)		44.91
Forfeited	(6,419)		43.98
Nonvested at December 31, 2020	157,515	$	44.85

As of December 31, 2020, there was $2.3 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 1.86 years. The total fair value of shares vested during the year ended December 31, 2020, 2019 and 2018 was $5.7 million, $5.7 million and $6.6 million, respectively. During the years ended December 31, 2020, 2019 and 2018, 120,204, 126,672 and 137,472 shares vested, respectively.

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

12 Months Ended

Dec. 31, 2020

Capital Requirements and Restrictions On Retained Earnings [Abstract]

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

NOTE 16 – 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 0.000% for 2015 to 2.50% by 2019. The capital conservation buffer for 2020 and 2019 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, 2020 and 2019, 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, 2020 and 2019, that the Company and the Bank met all capital adequacy requirements to which they are subject.

NOTE 16 – CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (continued)

As of December 31, 2020, 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.


													Minimum Required to
					Minimum Required				For Capital Adequacy				Be Well Capitalized
					For Capital				Purposes Plus Capital				Under Prompt Corrective
	Actual				Adequacy Purposes				Conservation Buffer				Action Regulations
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2020:
Total Capital (to Risk Weighted Assets)
Consolidated	$	682,778	14.65	%	$	372,921	8.00	%	$	489,459	N/A			N/A	N/A
Bank	$	678,034	14.56	%	$	372,560	8.00	%	$	488,985	10.50	%	$	465,700	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	624,381	13.39	%	$	279,691	6.00	%	$	396,229	N/A			N/A	N/A
Bank	$	619,693	13.31	%	$	279,420	6.00	%	$	395,845	8.50	%	$	372,560	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	624,381	13.39	%	$	209,768	4.50	%	$	326,306	N/A			N/A	N/A
Bank	$	619,693	13.31	%	$	209,565	4.50	%	$	325,990	7.00	%	$	302,705	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	624,381	10.93	%	$	228,406	4.00	%	$	228,406	N/A			N/A	N/A
Bank	$	619,693	10.88	%	$	227,900	4.00	%	$	227,900	4.00	%	$	284,875	5.00	%

As of December 31, 2019:
Total Capital (to Risk Weighted Assets)
Consolidated	$	631,723	14.36	%	$	351,894	8.00	%	$	461,862	N/A			N/A	N/A
Bank	$	616,386	14.04	%	$	351,227	8.00	%	$	460,985	10.50	%	$	439,034	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	580,982	13.21	%	$	263,921	6.00	%	$	373,887	N/A			N/A	N/A
Bank	$	565,645	12.88	%	$	263,420	6.00	%	$	373,179	8.50	%	$	351,227	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	580,982	13.21	%	$	197,941	4.50	%	$	307,908	N/A			N/A	N/A
Bank	$	565,645	12.88	%	$	197,565	4.50	%	$	307,324	7.00	%	$	285,372	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	580,982	11.67	%	$	199,099	4.00	%	$	199,099	N/A			N/A	N/A
Bank	$	565,645	11.43	%	$	197,923	4.00	%	$	197,923	4.00	%	$	247,404	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, 2020, approximately $86.4 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, 2020. 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, 2020

OFFSETTING ASSETS AND LIABILITIES

OFFSETTING ASSETS AND LIABILITIES

NOTE 17 – 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, 2020 and 2019.

December 31, 2020

Gross

Amounts

Net Amounts

Gross Amounts Not

Amounts of

Offset in the

presented in

Offset in the Statement

Recognized

Statement of

the Statement

of Financial Position

Assets/

Financial

of Financial

Financial

Cash Collateral

Net

(dollars in thousands)

Liabilities

Position

Instruments

Position

Amount

Assets

Interest Rate Swap Derivatives

21,764

—

21,764

—

21,764

Total Assets

21,764

—

21,764

—

21,764

Liabilities

Interest Rate Swap Derivatives

21,794

—

21,794

—

(21,370)

424

Total Liabilities

21,794

—

21,794

—

(21,370)

424


	December 31, 2019
			Gross
	Gross		Amounts		Net Amounts		Gross Amounts Not
	Amounts of		Offset in the		presented in		Offset in the Statement
	Recognized		Statement of		the Statement		of Financial Position
	Assets/		Financial		of Financial		Financial		Cash Collateral		Net
(dollars in thousands)	Liabilities		Position		Position		Instruments		Position		Amount
Assets
Interest Rate Swap Derivatives	$	7,263	$	—	$	7,263	$	—	$	—	$	7,263
Total Assets	$	7,263	$	—	$	7,263	$	—	$	—	$	7,263
Liabilities
Interest Rate Swap Derivatives	$	7,860	$	—	$	7,860	$	—	$	(7,560)	$	300
Total Liabilities	$	7,860	$	—	$	7,860	$	—	$	(7,560)	$	300

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, 2020

COMMITMENTS, OFF BALANCE SHEET RISKS AND CONTINGENCIES

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

NOTE 18 – 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, 2020 and 2019, were as follows:


	2020				2019
	Fixed		Variable		Fixed		Variable
(dollars in thousands)	Rate		Rate		Rate		Rate
Commercial loan lines of credit	$	52,568	$	1,646,539	$	39,104	$	1,451,704
Standby letters of credit		—		53,796		—		70,932
Real estate mortgage loans		11,984		3,921		4,448		1,488
Real estate construction mortgage loans		767		3,051		478		2,139
Home equity mortgage open-ended revolving lines		—		267,530		—		247,562
Consumer loan open-ended revolving lines		—		19,918		180		17,116
Total	$	65,319	$	1,994,755	$	44,210	$	1,790,941

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, 2020 and 2019, were as follows:


	2020				2019
	Fixed		Variable		Fixed		Variable
	Rate		Rate		Rate		Rate
Commercial loan	1.00-14.50	%	1.16-9.25	%	0.75-14.50	%	2.65-9.25	%
Real estate mortgage loan	2.63-3.75	%	3.00-5.75	%	3.13-4.00	%	3.75-4.25	%
Consumer loan open-ended revolving line	15.00	%	3.00-15.00	%	15.00	%	3.88-15.00	%

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, 2020

PARENT COMPANY STATEMENTS

PARENT COMPANY STATEMENTS

NOTE 19 – 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)	2020		2019
ASSETS
Deposits with Lake City Bank	$	568	$	1,762
Deposits with other depository institutions		2,433		2,104
Cash		3,001		3,866
Investments in banking subsidiary		652,407		582,674
Investments in other subsidiaries		3,043		3,276
Other assets		9,455		8,457
Total assets	$	667,906	$	598,273
LIABILITIES
Dividends payable and other liabilities	$	311	$	262
Borrowings		10,500		—
STOCKHOLDERS’ EQUITY		657,095		598,011
Total liabilities and stockholders’ equity	$	667,906	$	598,273

NOTE 19 – PARENT COMPANY STATEMENTS (continued)

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


	Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Dividends from Lake City Bank	$	32,079	$	57,842	$	27,933
Dividends from non-bank subsidiaries		1,300		1,302		1,010
Other income		—		155		171
Interest expense on subordinated debt		—		(1,720)		(1,643)
Miscellaneous expense		(3,935)		(5,321)		(6,422)
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES		29,444		52,258		21,049
Income tax benefit		1,065		2,256		2,795
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES		30,509		54,514		23,844
Equity in undistributed income of subsidiaries		53,828		32,533		56,567
NET INCOME	$	84,337	$	87,047	$	80,411
COMPREHENSIVE INCOME	$	100,022	$	105,297	$	75,131

CONDENSED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Cash flows from operating activities:
Net income	$	84,337	$	87,047	$	80,411
Adjustments to net cash from operating activities:
Equity in undistributed income of subsidiaries		(53,828)		(32,533)		(56,567)
Other changes		1,257		3,529		7,294
Net cash from operating activities		31,766		58,043		31,138
Cash flows from financing activities
Repayment of long-term debt		—		(30,928)		—
Proceeds from short-term borrowings		10,500		—		—
Payments related to equity incentive plans		(2,137)		(2,109)		(2,435)
Purchase of treasury stock		(10,547)		(515)		(463)
Sales of treasury stock		119		118		115
Dividends paid		(30,566)		(29,639)		(25,278)
Cash flows from financing activities		(32,631)		(63,073)		(28,061)
Net increase (decrease) in cash and cash equivalents		(865)		(5,030)		3,077
Cash and cash equivalents at beginning of the year		3,866		8,896		5,819
Cash and cash equivalents at end of the year	$	3,001	$	3,866	$	8,896

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 20 – EARNINGS PER SHARE

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


(dollars in thousand except share and per share data)	2020		2019		2018
Basic earnings per common share:
Net income	$	84,337	$	87,047	$	80,411
Weighted-average common shares outstanding		25,469,242		25,588,404		25,288,533
Basic earnings per common share	$	3.31	$	3.40	$	3.18
Diluted earnings per common share:
Net income	$	84,337	$	87,047	$	80,411
Weighted-average common shares outstanding for basic earnings per common share		25,469,242		25,588,404		25,288,533
Add: Dilutive effect of assumed exercise of warrant		—		—		225,831
Add: Dilutive effect of assumed exercises of stock options and awards		104,699		170,489		213,467
Average shares and dilutive potential common shares		25,573,941		25,758,893		25,727,831
Diluted earnings per common share	$	3.30	$	3.38	$	3.13

There were no antidilutive stock options for 2020, 2019 and 2018.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2020

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 21 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for December 31, 2020 and 2019 all shown net of tax:


	Unrealized
	Gains and
	(Losses) on		Defined
	Available-		Benefit
	for-Sales		Pension
(dollars in thousands)	Securities		Items		Total
Balance at January 1, 2020	$	13,607	$	(1,548)	$	12,059
Other comprehensive income (loss) before reclassification		15,917		(78)		15,839
Amounts reclassified from accumulated other comprehensive income (loss)		(342)		188		(154)
Net current period other comprehensive income (loss)		15,575		110		15,685
Balance at December 31, 2020	$	29,182	$	(1,438)	$	27,744


	Unrealized
	Gains and
	(Losses) on		Defined
	Available-		Benefit
	for-Sales		Pension
(dollars in thousands)	Securities		Items		Total
Balance at January 1, 2019	$	(4,796)	$	(1,395)	$	(6,191)
Other comprehensive income (loss) before reclassification		18,515		(306)		18,209
Amounts reclassified from accumulated other comprehensive income (loss)		(112)		153		41
Net current period other comprehensive income (loss)		18,403		(153)		18,250
Balance at December 31, 2019	$	13,607	$	(1,548)	$	12,059

NOTE 21 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (continued)

Reclassifications out of accumulated comprehensive income for the years ended December 31, 2020, 2019 and 2018 are as follows:


Details about	Amount		Affected Line Item
Accumulated Other	Reclassified From		in the Statement
Comprehensive	Accumulated Other		Where Net
Income Components	Comprehensive Income		Income is Presented
2020
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	433	Net securities gains (losses)
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


2019
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	142	Net securities gains (losses)
Tax effect		(30)	Income tax expense
Subtotal		112	Net of tax
Amortization of defined benefit pension items⁽¹⁾		(205)	Salaries and employee benefits
Tax effect		52	Income tax expense
Subtotal		(153)	Net of tax
Total reclassifications for the period	$	(41)	Net income


2018
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	(50)	Net securities gains (losses)
Tax effect		11	Income tax expense
Subtotal		(39)	Net of tax
Amortization of defined benefit pension items⁽¹⁾		(266)	Salaries and employee benefits
Tax effect		69	Income tax expense
Subtotal		(197)	Net of tax
Total reclassifications for the period	$	(236)	Net income

(1)	Included in the computation of net pension plan expense as more fully discussed in Note 11 – Pension and Other Postretirement Plans.

SELECTED QUARTERLY DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2020

SELECTED QUARTERLY DATA (UNAUDITED

SELECTED QUARTERLY DATA (UNAUDITED)

NOTE 22 – SELECTED QUARTERLY DATA (UNAUDITED) (in thousands except per share data)

4th

3rd

2nd

1st

2020

Quarter

Interest income

49,854

45,979

46,831

50,439

Interest expense

5,141

6,066

7,303

11,585

Net interest income

44,713

39,913

39,528

38,854

Provision for loan losses

920

1,750

5,500

6,600

Net interest income after provision

43,793

38,163

34,028

32,254

Noninterest income

11,782

13,115

11,169

10,777

Noninterest expense

24,912

23,125

21,079

22,089

Income tax expense

6,071

5,377

4,448

3,643

Net income

24,592

22,776

19,670

17,299

Basic earnings per common share

0.97

0.89

0.77

0.68

Diluted earnings per common share

0.97

0.89

0.77

0.67


	4th		3rd		2nd		1st
2019	Quarter		Quarter		Quarter		Quarter
Interest income	$	52,312	$	54,769	$	54,635	$	53,494
Interest expense		13,430		15,224		16,224		15,285
Net interest income		38,882		39,545		38,411		38,209
Provision for loan losses		250		1,000		785		1,200
Net interest income after provision		38,632		38,545		37,626		37,009
Noninterest income		11,119		10,765		11,588		11,525
Noninterest expense		22,122		22,737		22,092		22,473
Income tax expense		5,431		5,119		5,409		4,379
Net income	$	22,198	$	21,454	$	21,713	$	21,682

Basic earnings per common share	$	0.86	$	0.84	$	0.85	$	0.85
Diluted earnings per common share	$	0.86	$	0.83	$	0.85	$	0.84

WARRANT

12 Months Ended

Dec. 31, 2020

WARRANT

WARRANT

NOTE 23 – WARRANT

On February 27, 2009, the Company entered into a Letter Agreement with the Treasury, pursuant to which the Company issued (i) 56,044 shares of the Company’s Series A Preferred Stock and (ii) the Warrant to purchase 396,538 shares of the Company’s common stock, no par value, for an aggregate purchase price of $56,044,000 in cash. This transaction was conducted in accordance with the CPP. On June 9, 2010, the Company redeemed the Series A Preferred Stock and accreted the remaining unamortized discount on these shares. The Company did not repurchase the Warrant, and the Warrant was sold by Treasury to an independent, third party.

The Warrant had a 10-year term and was immediately exercisable upon its issuance, with an exercise price, subject to anti-dilution adjustments, equal to $21.20 per share of the common stock (trailing 20-day Lakeland average closing price as of December 17, 2008, which was the last trading day prior to date of receipt of Treasury’s preliminary approval for our participation in the CPP). The Warrant was valued using the Black-Scholes model with the following assumptions: market price of $17.45; exercise price of $21.20; risk-free interest rate of 3.02%; expected life of 10 years; expected dividend rate on common stock of 4.5759% and volatility of common stock price of 41.8046%. This resulted in a value of $4.4433 per share of common stock underlying the Warrant.

On December 3, 2009, the Company was notified by Treasury that, as a result of the Company’s completion of our November 18, 2009 Qualified Equity Offering, the amount of the Warrant was reduced by 50% to 198,269 shares. In accordance with the terms of the Warrant, the number of shares issuable upon exercise and the exercise price were adjusted each time the Company paid a dividend to its stockholders in excess of the dividend paid at the time the warrant was issued. Based on the formula set forth in the warrant, at December 31, 2018, the number of shares issuable upon exercise of the Warrant were 314,846 and the exercise price was $13.3503.

NOTE 23 – WARRANT (continued)

On February 4, 2019 the Company was notified that the holder of the Warrant was initiating the exercise on a cashless basis. At the time of exercise, the holder was entitled to 315,961 shares of common stock. The cost to exercise the Warrant was approximately $4.2 million, which was the equivalent of 91,894 shares of common stock with a fair value of $45.74 per share. On February 8, 2019, the Company issued 224,066 shares to the Warrant holder as a cashless exercise and the Warrant was retired. The issuance of the shares was exempt from registration pursuant to Section 3(a)(9) under the Securities Act of 1933.

REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2020

REVENUE RECOGNITION

REVENUE RECOGNITION

NOTE 24 – 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 table presents the Company’s sources of noninterest income for the years ended 2020, 2019 and 2018. Items outside of scope of ASC 606 are noted as such.


	Year Ended December 31,
	2020		2019		2018
NONINTEREST INCOME
Wealth advisory fees	$	7,468	$	6,835	$	6,344
Investment brokerage fees		1,670		1,687		1,458
Service charges on deposit accounts
Service charges on commercial deposit acounts		5,798		10,082		10,234
Service charges on retail deposit acounts		851		880		879
Overdrafts, net		2,485		3,585		3,581
Other		976		1,170		1,137
Loan and service fees
Debit card interchange fees		6,707		6,344		5,883
Loan fees (1)		2,366		2,544		2,423
Other		1,012		1,023		985
Merchant and interchange fee income		2,408		2,641		2,461
Bank owned life insurance income (1)		2,105		1,890		1,244
Interest rate swap fee income (1)		5,089		1,691		475
Mortgage banking income (1)		3,911		1,626		1,150
Net securities gains (losses) (1)		433		142		(50)
Other income		3,564		2,857		2,098
Total noninterest income	$	46,843	$	44,997	$	40,302

(1)	Not within scope of ASC 606

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.

NOTE 24 – REVENUE RECOGNITION (continued)

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 will be reported in data processing fees and supplies under noninterest expense, which has no effect on net income for the period.

Gain on sale of other real estate (OREO) owned financed by seller

On occasion, the Company underwrites a loan to purchase property owned by the Company. Under the accounting standards in effect in the prior period, the gain on the sale of the Company owned property was deferred and recognized over the life of the loan. 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. As a result of the adoption of ASC 606, the Company reported a net increase of $24,000 to opening retained earnings as of January 1, 2018.

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 the accounting standards in effect in the prior period, revenue was previously recognized in other income under noninterest income. Under ASC 606, these rebates related to debit card transaction volume will be reported as a contra expense in data processing fees and supplies under noninterest expense, which has no effect on net income for the period.

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

LEASES

12 Months Ended

Dec. 31, 2020

LEASES

LEASES

NOTE 25 – LEASES

The Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2029 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.

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 standard. The following is a maturity analysis of the operating lease liabilities as of December 31, 2020:


	Operating Lease
Years ending December 31, (in thousands)	Obligation
2021	$	581
2022		595
2023		606
2024		622
2025		640
2026 and thereafter		2,233
Total undiscounted lease payments		5,277
Less imputed interest		(602)
Lease liability	$	4,675
Right-of-use asset	$	4,675


	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
Lease cost
Operating lease cost	$	536		$	498
Short-term lease cost		24			24
Total lease cost	$	560		$	522

Other information
Operating cash outflows from operating leases	$	536		$	498
Weighted-average remaining lease term - operating leases		8.8	years		9.8	years
Weighted average discount rate - operating leases		2.8	%		2.8	%

COVID-19 AND CURRENT ECONOMIC CONDITIONS

12 Months Ended

Dec. 31, 2020

COVID-19 AND CURRENT ECONOMIC CONDITIONS

COVID-19 AND CURRENT ECONOMIC CONDITIONS

NOTE 26 – COVID-19 and CURRENT ECONOMIC CONDITIONS

On March 11, 2020, the World Health Organization announced that the COVID-19 outbreak was deemed a pandemic, and on March 13, 2020, the President declared the ongoing COVID-19 pandemic of sufficient magnitude to warrant an emergency declaration. The extent of COVID-19’s effect on the Company’s operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic, the timing of vaccine availability and when state and local economies will return to operational norms, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. As a result, it is not currently possible to ascertain the overall impact of COVID-19 on the Company’s business. However, if the pandemic continues to evolve into a prolonged worldwide health crisis, the disease could have a material adverse effect on the Company’s business, results of operations, financial condition, liquidity and cash flows.

The fair value of certain assets could be impacted by the effects of COVID-19. The carrying value of loans, goodwill, right-of-use lease assets, other real estate owned and mortgage servicing rights could decrease resulting in future impairment losses. Management will continue to evaluate current economic conditions to determine if a triggering event would impact the current valuations for these assets.

As of February 17, 2021, total COVID-19 related deferrals were $102.2 million, representing 50 borrowers, or 2.3% of the total loan portfolio. Of that total, 24 were commercial loan borrowers representing $99.7 million in loans, or 2.4% of total commercial loans. 26 were retail loan borrowers representing $2.5 million, or 0.7% of total retail loans. As of February 17, 2021, nine borrowers with loans outstanding of $20.8 million were in their second deferral period and 11 borrowers with loans outstanding of $40.2 million were in their third deferral period, most of which were additional 90-day deferrals. Additionally, 14 borrowers with loans outstanding of $26.6 million were in their fourth-deferral period. Of the fourth deferral borrowers, two represented 89% 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 50 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 internet business banking and on-line 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 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 amount of impairment is split into two components as follows: 1) other-than-temporary impairment (OTTI) related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities which are included in other assets, are carried at fair value with changes in fair value recorded through earnings.
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 loan 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 for impairment and individually classified impaired 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, 2020 and 2019 was $14.6 million and $11.5 million.
Allowance for Loan Losses	Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the inability to fully collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company has an established process to determine the adequacy of the allowance for loan losses that generally includes consideration of the following factors: changes in the nature and volume of the loan portfolio, overall portfolio quality and current economic conditions that may affect the borrowers’ ability to repay. Consideration is not limited to these factors, although they represent the most commonly cited factors. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available or as future events change. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience, subject to a floor, adjusted for current factors. A detailed analysis is performed on loans that are classified but determined not to be impaired which incorporates different scenarios where the risk that the borrower will be unable or unwilling to repay its debt in full or on time is combined with an estimate of loss in the event the borrower cannot pay to develop non-specific allocations for such loan pools. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent three years, subject to a floor. This loss experience is supplemented with other qualitative factors based on the risks present for each portfolio segment. These factors include consideration of the following: levels of, and trends in, delinquencies and impaired loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial, consumer 1-4 family mortgage and other consumer. The risk characteristics of each of the identified portfolio segments are as follows: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Commercial and Industrial – Borrowers may be subject to industry conditions including decreases in product demand; increases 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 the uninterrupted flow of funds to states and other political subdivisions for the purpose of debt repayments on loans held by the Bank. 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 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 impaired 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. Loans, for which the terms have been modified and a concession has been granted for borrowers experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired and may be either accruing or non-accruing. Nonaccrual troubled debt restructurings follow the same policy as described above for other loans. Impairment for troubled debt restructurings 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. Impairment is evaluated 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, agri-business 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 impairment 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 impaired. 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 impaired, 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 if repayment is expected solely from the collateral. All classes of commercial and industrial, commercial real estate and multifamily residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage 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. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Troubled debt restructured loans are considered for removal from troubled debt restructuring status in the year following modification or at time of subsequent restructuring for loans with cumulative principal forgiveness if the interest rate is considered a market rate at the time of modification and it has been performing according to the terms of the modification for a reasonable period of time long enough to observe an ability to repay under the modified terms. If removed from troubled debt restructuring status, the loan continues to be evaluated for impairment with either 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. In addition, troubled debt restructured loans with subsequent modifications that do not have cumulative principal forgiveness are considered for removal from troubled debt restructuring status at the time of the subsequent modification if the following circumstances exist: (1) at the time of the subsequent restructuring, the borrower is not experiencing financial difficulties; (2) under the terms of the subsequent restructuring agreement no concession has been granted to the borrower; and (3) the subsequent restructuring agreement includes market terms that are no less favorable than those that would be offered for comparable new debt. Upon meeting these criteria, the loan is no longer individually evaluated for impairment and is no longer disclosed as a troubled debt restructuring.
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 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, 2020 and 2019 were $9.2 million and $6.7 million, respectively and are included with other assets in the consolidated balance sheet. The Company also has a commitment to fund an additional $2.6 million at December 31, 2020 in two of the limited partnerships compared to $1.6 million at December 31, 2019, which is included with other liabilities in the consolidated balance sheet.
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, 2020 and 2019, the balance of other real estate owned was $316,000 and is included with other assets on the consolidated balance sheet.
Land, Premises and Equipment	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 totaled $1.2 million, $1.1 million and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Late fees and ancillary fees related to loan servicing are not material. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 $3.5 million and $3.8 million as of December 31, 2020 and 2019, respectively. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $351.0 million and $337.9 million at December 31, 2020 and 2019. Custodial escrow balances maintained in connection with serviced loans were $1.7 million and $1.6 million at year end 2020 and 2019, respectively. 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. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The notional amount of the combined interest rate swaps with customers and counterparties at December 31, 2020 and 2019 was $819.1 million and $349.6 million, respectively. The fair value of the interest rate swap asset was $21.8 million and $7.3 million and the fair value of the interest rate swap liability was $21.8 million and $7.9 million at December 31, 2020 and 2019, respectively. The Company is a party in risk participation transactions of interest rate swaps, which had a total notional amount of $5.0 million at December 31, 2020.
Bank Owned Life Insurance	Bank Owned Life Insurance: At December 31, 2020 and 2019, the Company owned $90.4 million and $79.8 million, respectively, of life insurance policies on certain officers to provide a life insurance benefit for these officers. At December 31, 2020 and 2019, the Company also owned $4.8 million and $4.0 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 will 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.
Repurchase Agreements	Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. This product was discontinued during 2019.
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.
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.
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 15 – 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 2020 and 2019 were 473,660 and 178,741 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 184,559 and 178,741 shares of treasury stock as of December 31, 2020 and 2019, respectively. Because these shares are held in trust for the participants, 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	Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale 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. Management does not believe there currently are such matters that will have a material effect on the financial statements.
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 year-end 2020. The Company was required to have $28.9 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at year end 2019. The Company met this requirement for 2019.
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.
Adoption of New Accounting Standards	Adoption of New Accounting Standards: In January 2017, the FASB issued ASU No. 2017-04 “Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment.” These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this new accounting standard on January 1, 2020. Adopting this standard did not have an impact on the Company’s financial condition or results of operations. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” These amendments modify the disclosure requirements in Topic 820 as follows: Removals: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. Modifications: for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additions: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should all be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted ASU 2018-13 on January 1, 2020 and it did not have a material impact on its financial condition or results of operations. In August 2018, the FASB issued ASU No. 2018-15 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contact with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. Early adoption is permitted. The Company adopted ASU 2018-15 on January 1, 2020 and it did not have a material impact on its financial condition or results of operations.
Newly Issued But Not Yet Effective Accounting Standards	Newly Issued But Not Yet Effective Accounting Standards: In June 2016, the FASB issued guidance related to credit losses on financial instruments. This update, commonly referred to as the CECL methodology, will change the accounting for credit losses on loans and debt securities. Under the new guidance, the Company’s measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. For loans, this measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model previously required, but still permitted, under GAAP, which delays recognition until it is probable a loss has been incurred. In addition, the guidance will modify the other-than-temporary impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which will allow for reversal of credit impairments in future periods. This guidance is effective, subject to optional delay discussed below, for the Company for fiscal years beginning after December 15, 2019, including interim periods in those fiscal years. The Company implemented the CECL methodology and ran it concurrently with the historical incurred method. Under a provision provided by the CARES Act, the Company elected to delay the adoption of FASB’s new rule covering the CECL standard. On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, 2021. This law extended relief for troubled debt restructurings and provided for further delay of the current expected credit losses adoption under the CARES Act to January 1, 2022, with early adoption permitted. The Company elected to remain on the incurred loan loss methodology for 2020. The Company will adopt the CECL standard during the first quarter of 2021, effective January 1, 2021. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Company’s day one adjustment to the allowance for credit losses will be an increase in the allowance for credit losses of $9.1 million an offset, net of taxes, to stockholders’ equity. The calculation will require approval by the loan review committee and board of directors in accordance with the Company’s internal controls over financial reporting. Additionally, the Company has evaluated the need to recognize an allowance for credit impairment for available-for-sale debt securities. The impact on available-for-sale debt securities is subject to a limitation, which is based on the fair value of the debt securities. When evaluating the credit quality of our existing portfolio, the Company does not expect the allowance for credit impairment for available-for-sale securities to be significant. The future impact of CECL on the Company’s allowance for credit losses and provision expense subsequent to the initial adoption will depend on changes in the loan portfolio, economic conditions and refinements to key assumptions including economic forecasting and qualitative factors. In August 2018, the FASB issued ASU 2018-14 “Compensation — Retirement Benefits — Defined Benefit Plans — General (Topic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans.” The ASU updates the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans by adding, clarifying and removing certain disclosures. These amendments are effective for fiscal years ending after December 15, 2020, for public business entities, and are to be applied on a retrospective basis to all periods presented. Management has reviewed the standard and does not anticipate ASU 2018-14 will have a material impact on its financial statements. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” These amendments remove specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences where there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. It also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacts changes in tax laws in interim periods. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is assessing ASU 2019-12 and its impact on its financial statements. 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 other indexes. The Company has identified loans that will renew prior to 2021 and will obtain updated reference rate language at the time of renewal. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop internal milestones during this transitional period. The Company has adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The guidance under ASC-848 will be available for a limited time, generally through December 31, 2022. The Company expects to adopt the LIBOR transition relief allowed under this standard.
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, 2020

SECURITIES

Summary of Available-For-Sale Securities


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gain		Losses		Value
2020
U.S. government sponsored agencies	$	36,492	$	56	$	(61)	$	36,487
Mortgage-backed securities: residential		270,231		9,289		(17)		279,503
Mortgage-backed securities: commercial		35,877		1,004		—		36,881
State and municipal securities		355,306		26,696		(28)		381,974
Total	$	697,906	$	37,045	$	(106)	$	734,845

2019
Mortgage-backed securities: residential	$	283,817	$	4,751	$	(387)	$	288,181
Mortgage-backed securities: commercial		36,712		262		(2)		36,972
State and municipal securities		270,480		12,828		(228)		283,080
Total	$	591,009	$	17,841	$	(617)	$	608,233

Schedule of Available-For-Sale Securities By Maturity


	Amortized		Fair
(dollars in thousands)	Cost		Value
Due in one year or less	$	2,164	$	2,175
Due after one year through five years		11,543		11,850
Due after five years through ten years		35,829		37,960
Due after ten years		342,262		366,476
		391,798		418,461
Mortgage-backed securities		306,108		316,384
Total debt securities	$	697,906	$	734,845

Schedule of Sales of Securities Available For Sale



(dollars in thousands)	2020		2019		2018
Sales of securities available-for-sale
Proceeds	$	8,018	$	57,114	$	15,302
Gross gains		433		279		21
Gross losses		—		(137)		(71)
Number of securities		17		46		29

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


	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
2020
U.S. government sponsored agencies	$	19,800	$	61	$	—	$	—	$	19,800	$	61
Mortgage-backed securities: residential		3		—		3,112		17		3,115		17
Mortgage-backed securities: commercial		—		—		—		—		—		—
State and municipal securities		6,921		28		—		—		6,921		28
Total temporarily impaired	$	26,724	$	89	$	3,112	$	17	$	29,836	$	106

2019
Mortgage-backed securities: residential	$	23,436	$	112	$	14,174	$	275	$	37,610	$	387
Mortgage-backed securities: commercial		4,591		2		—		—		4,591		2
State and municipal securities		14,188		228		—		—		14,188		228
Total temporarily impaired	$	42,215	$	342	$	14,174	$	275	$	56,389	$	617

Schedule of Quantitative Disclosure of Available-For-Sale Securities


	Less than	12 months
	12 months	or more	Total
2020
U.S. government sponsored agencies	3	—	3
Mortgage-backed securities: residential	2	1	3
Mortgage-backed securities: commercial	—	—	—
State and municipal securities	2	—	2
Total temporarily impaired	7	1	8

2019
Mortgage-backed securities: residential	7	6	13
Mortgage-backed securities: commercial	1	—	1
State and municipal securities	11	—	11
Total temporarily impaired	19	6	25

LOANS (Tables)

12 Months Ended

Dec. 31, 2020

LOANS

Schedule of Loans

Total loans outstanding as of the years ended December 31, 2020 and 2019 consisted of the following:



(dollars in thousands)	2020		2019
Commercial and industrial loans:
Working capital lines of credit loans	$	626,023	$	709,849
Non-working capital loans		1,165,355		717,019
Total commercial and industrial loans		1,791,378		1,426,868

Commercial real estate and multi-family residential loans:
Construction and land development loans		362,653		287,641
Owner occupied loans		648,019		573,665
Nonowner occupied loans		579,625		571,364
Multi-family loans		304,717		240,652
Total commercial real estate and multi-family residential loans		1,895,014		1,673,322

Agri-business and agricultural loans:
Loans secured by farmland		195,410		174,380
Loans for agricultural production		234,234		205,151
Total agri-business and agricultural loans		429,644		379,531

Other commercial loans		94,013		112,302
Total commercial loans		4,210,049		3,592,023

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		167,847		177,227
Open end and junior lien loans		163,664		186,552
Residential construction and land development loans		12,007		12,966
Total consumer 1-4 family mortgage loans		343,518		376,745

Other consumer loans		103,616		98,617
Total consumer loans		447,134		475,362
Gross loans		4,657,183		4,067,385
Less: Allowance for loan losses		(61,408)		(50,652)
Net deferred loan fees		(8,027)		(1,557)
Loans, net	$	4,587,748	$	4,015,176

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)

12 Months Ended

Dec. 31, 2020

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

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

Commercial

Real Estate

Commercial

and

Agri-business

Consumer

and

Multi-family

and

Other

1-4 Family

Other

(dollars in thousands)

Industrial

Residential

Agricultural

Commercial

Mortgage

Consumer

Unallocated

Total

December 31, 2020

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)

—

(141)

(516)

—

(5,253)

Recoveries

428

315

—

333

163

—

1,239

Net loans (charged-off) recovered

(4,096)

243

—

192

(353)

—

(4,014)

Ending balance

28,333

22,907

3,043

416

2,619

951

3,139

61,408


			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2019
Beginning balance	$	22,518	$	15,393	$	4,305	$	368	$	2,292	$	283	$	3,294	$	48,453
Provision for loan losses		4,259		259		(444)		79		(219)		275		(974)		3,235
Loans charged-off		(1,447)		(17)		—		—		(110)		(336)		—		(1,910)
Recoveries		459		161		8		—		123		123		—		874
Net loans (charged-off) recovered		(988)		144		8		—		13		(213)		—		(1,036)
Ending balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652


			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2018
Beginning balance	$	21,097	$	14,714	$	4,920	$	577	$	2,768	$	379	$	2,666	$	47,121
Provision for loan losses		5,884		1,140		(657)		(209)		(536)		150		628		6,400
Loans charged-off		(5,215)		(491)		—		—		(48)		(357)		—		(6,111)
Recoveries		752		30		42		—		108		111		—		1,043
Net loans (charged-off) recovered		(4,463)		(461)		42		—		60		(246)		—		(5,068)
Ending balance	$	22,518	$	15,393	$	4,305	$	368	$	2,292	$	283	$	3,294	$	48,453

The following tables present balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2020 and 2019:

Commercial

Real Estate

Commercial

and

Agri-business

Consumer

and

Multi-family

and

Other

1-4 Family

Other

(dollars in thousands)

Industrial

Residential

Agricultural

Commercial

Mortgage

Consumer

Unallocated

Total

December 31, 2020

Allowance for loan losses:

Ending allowance balance attributable to loans:

Individually evaluated for impairment

6,310

1,377

—

270

—

8,041

Collectively evaluated for impairment

22,023

21,530

2,959

416

2,349

951

3,139

53,367

Total ending allowance balance

28,333

22,907

3,043

416

2,619

951

3,139

61,408

Loans:

Loans individually evaluated for impairment

12,533

5,518

428

—

1,700

—

20,179

Loans collectively evaluated for impairment

1,772,393

1,887,054

429,234

93,912

342,999

103,385

—

4,628,977

Total ending loans balance

1,784,926

1,892,572

429,662

93,912

344,699

103,385

—

4,649,156


			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2019
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,324	$	538	$	90	$	—	$	426	$	6	$	—	$	10,384
Collectively evaluated for impairment		16,465		15,258		3,779		447		1,660		339		2,320		40,268
Total ending allowance balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652

Loans:
Loans individually evaluated for impairment	$	19,580	$	4,998	$	445	$	—	$	2,789	$	17	$	—	$	27,829
Loans collectively evaluated for impairment		1,407,246		1,665,842		379,186		112,166		375,210		98,349		—		4,037,999
Total ending loans balance	$	1,426,826	$	1,670,840	$	379,631	$	112,166	$	377,999	$	98,366	$	—	$	4,065,828

Loans individually evaluated for impairment

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


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	346	$	173	$	0
Non-working capital loans		2,399		968		0
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,002		2,930		0
Agri-business and agricultural loans:
Loans secured by farmland		603		283		0
Consumer 1‑4 family loans:
Closed end first mortgage loans		316		236		0
Open end and junior lien loans		5		5		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		433		433		255
Non-working capital loans		11,644		10,959		6,055
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,589		2,588		1,377
Agri-business and agricultural loans:
Loans secured by farmland		145		145		84
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,457		1,459		270
Total	$	22,939	$	20,179	$	8,041

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019:


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	22	$	22	$	—
Non-working capital loans		2,130		735		—
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,189		3,010		—
Agri-business and agricultural loans:
Loans secured by farmland		603		283		—
Loans for ag production		15		15		—
Consumer 1‑4 family loans:
Closed end first mortgage loans		411		330		—
Open end and junior lien loans		121		121		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,214		6,214		3,089
Non-working capital loans		13,230		12,609		6,235
Commercial real estate and multi-family residential loans:
Owner occupied loans		1,988		1,988		538
Agri-business and agricultural loans:
Loans secured by farmland		147		147		90
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,643		1,646		363
Open end and junior lien loans		641		640		53
Residential construction loans		51		52		10
Other consumer loans		17		17		6
Total	$	30,422	$	27,829	$	10,384

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


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

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2019:


					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	176	$	9	$	9
Non-working capital loans		1,170		40		30
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,354		34		34
Agri-business and agricultural loans:
Loans secured by farmland		283		—		—
Loans for ag production		4		—		—
Consumer 1-4 family loans:
Closed end first mortgage loans		272		3		3
Open end and junior lien loans		133		—		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,335		143		81
Non-working capital loans		11,800		448		410
Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans		1,849		43		39
Agri-business and agricultural loans:
Loans secured by farmland		147		3		1
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,643		45		43
Open end and junior lien loans		268		—		—
Residential construction loans		9		—		—
Other consumer loans		21		2		1
Total	$	26,464	$	770	$	651

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2018:


					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	785	$	26	$	23
Non-working capital loans		1,862		74		68
Commercial real estate and multi-family residential loans:
Construction and land development loans		58		5		4
Owner occupied loans		2,291		36		37
Agri-business and agricultural loans:
Loans secured by farmland		283		—		—
Consumer 1‑4 family loans:
Closed end first mortgage loans		521		13		12
Open end and junior lien loans		205		—		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		3,307		74		12
Non-working capital loans		5,328		138		81
Commercial real estate and multi-family residential loans:
Construction and land development loans		453		26		29
Owner occupied loans		1,631		9		1
Agri-business and agricultural loans:
Loans secured by farmland		12		1		—
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,214		37		36
Open end and junior lien loans		38		—		—
Other consumer loans		47		3		3
Total	$	18,035	$	442	$	306

Aging of the Recorded Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans as of December 31, 2020 by class of loans:

Greater than

30‑89

90 Days Past

Total Past

Loans Not

Days

Due and Still

Due and

(dollars in thousands)

Past Due

Accruing

Nonaccrual

Total

Commercial and industrial loans:

Working capital lines of credit loans

625,493

—

606

626,099

Non-working capital loans

1,153,540

—

5,287

1,158,827

Commercial real estate and multi-family residential loans:

Construction and land development loans

361,664

—

361,664

Owner occupied loans

642,527

—

5,047

647,574

Nonowner occupied loans

579,050

—

579,050

Multi-family loans

304,284

—

304,284

Agri-business and agricultural loans:

Loans secured by farmland

194,935

—

428

195,363

Loans for agricultural production

234,191

108

—

108

234,299

Other commercial loans

93,912

—

93,912

Consumer 1‑4 family mortgage loans:

Closed end first mortgage loans

165,895

877

116

613

1,606

167,501

Open end and junior lien loans

165,094

137

—

142

165,236

Residential construction loans

11,962

—

11,962

Other consumer loans

103,240

145

—

145

103,385

Total

4,635,787

1,267

116

11,986

13,369

4,649,156

The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 by class of loans:


					Greater than
			30‑89		90 Days Past				Total Past
	Loans Not		Days		Due and Still				Due and
(dollars in thousands)	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	703,737	$	10	$	—	$	6,236	$	6,246	$	709,983
Non-working capital loans		710,557		4		—		6,282		6,286		716,843
Commercial real estate and multi-family residential loans:
Construction and land development loans		286,534		—		—		—		—		286,534
Owner occupied loans		569,303		—		—		4,056		4,056		573,359
Nonowner occupied loans		570,687		—		—		—		—		570,687
Multi-family loans		240,260		—		—		—		—		240,260
Agri-business and agricultural loans:
Loans secured by farmland		173,959		—		—		430		430		174,389
Loans for agricultural production		205,228		—		—		14		14		205,242
Other commercial loans		112,166		—		—		—		—		112,166
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		174,902		1,099		45		827		1,971		176,873
Open end and junior lien loans		187,255		188		—		761		949		188,204
Residential construction loans		12,870		—		—		52		52		12,922
Other consumer loans		98,176		173		—		17		190		98,366
Total	$	4,045,634	$	1,474	$	45	$	18,675	$	20,194	$	4,065,828

Troubled Debt Restructuring

The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2019:

Modified Repayment Terms

Pre-Modification

Post-Modification

Extension

Outstanding

Period or

Number of

Recorded

Number of

Range

(dollars in thousands)

Loans

Investment

Loans

(in months)

Troubled Debt Restructurings

Commercial and industrial loans:

Working capital lines of credit loans

Total

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2018:


						Modified Repayment Terms
		Pre-Modification		Post-Modification			Extension
		Outstanding		Outstanding			Period or
	Number of	Recorded		Recorded		Number of	Range
(dollars in thousands)	Loans	Investment		Investment		Loans	(in months)
Troubled Debt Restructurings Commercial and industrial loans:
Working capital lines of credit loans	1	$	600	$	600	1	0
Non-working capital loans	7		4,628		4,628	7	0‑6
Commercial real estate and multi-family residential loans:
Construction and land
development loans	1		824		824	1	12
Owner occupied loans	2		933		933	2	12
Consumer 1-4 family loans:
Closed end first mortgage loans	1		198		197	1	239
Total	12	$	7,183	$	7,182	12	0‑239

Schedule of Loans Modified as Troubled Debt Restructurings which were Payment Default with in Tweleve Months Following the Modification Terms


	2020			2019			2018
	Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Troubled Debt Restructurings that Subsequently Defaulted Commercial and industrial loans:
Non-working capital loans	—	$	—	1	$	601	—	$	—
Total	—	$	—	1	$	601	—	$	—

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, 2020:

Modified Repayment Terms

Pre-Modification

Post-Modification

Extension

Outstanding

Period or

Number of

Recorded

Number of

Range

(dollars in thousands)

Loans

Investment

Loans

(in months)

Troubled Debt Restructurings Commercial and industrial loans:

Working capital lines of credit loans

250

315

Non-working capital loans

4,288

3,691

Commercial real estate and multi-family residential loans:

Owner occupied loans

1,528

1,527

Total

6,066

5,533

Credit Quality Indicators

As of December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Special

Not

(dollars in thousands)

Pass

Mention

Substandard

Doubtful

Rated

Total

Commercial and industrial loans:

Working capital lines of credit loans

535,071

81,095

9,718

—

215

626,099

Non-working capital loans

1,111,989

26,523

14,820

—

5,495

1,158,827

Commercial real estate and multi-family residential loans:

Construction and land development loans

361,664

—

361,664

Owner occupied loans

608,845

31,355

7,374

—

647,574

Nonowner occupied loans

547,790

31,260

—

579,050

Multi-family loans

282,031

22,253

—

304,284

Agri-business and agricultural loans:

Loans secured by farmland

183,983

10,728

652

—

195,363

Loans for agricultural production

185,875

48,424

—

234,299

Other commercial loans

93,912

—

93,912

Consumer 1‑4 family mortgage loans:

Closed end first mortgage loans

40,682

—

1,695

—

125,124

167,501

Open end and junior lien loans

8,424

—

156,807

165,236

Residential construction loans

—

11,962

Other consumer loans

36,979

253

—

66,153

103,385

Total

3,997,245

251,891

34,264

365,756

4,649,156

As of December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:


			Special						Not
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	631,728	$	40,551	$	37,278	$	—	$	426	$	709,983
Non-working capital loans		673,370		18,782		19,381		—		5,310		716,843
Commercial real estate and multi-family residential loans:
Construction and land development loans		286,534		—		—		—		—		286,534
Owner occupied loans		535,496		14,804		23,059		—		—		573,359
Nonowner occupied loans		569,315		781		591		—		—		570,687
Multi-family loans		240,260		—		—		—		—		240,260
Agri-business and agricultural loans:
Loans secured by farmland		165,005		7,952		1,432		—		—		174,389
Loans for agricultural production		191,489		13,738		15		—		—		205,242
Other commercial loans		112,166		—		—		—		—		112,166
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		47,405		—		1,976		—		127,492		176,873
Open end and junior lien loans		10,845		—		762		—		176,597		188,204
Residential construction loans		—		—		51		—		12,871		12,922
Other consumer loans		27,250		—		17		—		71,099		98,366
Total	$	3,490,863	$	96,608	$	84,562	$	—	$	393,795	$	4,065,828

FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2020

FAIR VALUE

Schedule of Assets Measured at Fair Value on a Recurring Basis

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis:

December 31, 2020

Fair Value Measurements Using

Assets

(dollars in thousands)

Level 1

Level 2

Level 3

at Fair Value

Assets:

U.S. government sponsored agency securities

—

36,487

—

36,487

Mortgage-backed securities: residential

—

279,503

—

279,503

Mortgage-backed securities: commercial

—

36,881

—

36,881

State and municipal securities

—

381,834

140

381,974

Total Securities

—

734,705

140

734,845

Mortgage banking derivative

—

1,182

—

1,182

Interest rate swap derivative

—

21,764

—

21,764

Total assets

—

757,651

140

757,791

Liabilities:

Mortgage banking derivative

—

111

—

111

Interest rate swap derivative

—

21,794

—

21,794

Total liabilities

—

21,905

—

21,905


	December 31, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
Mortgage-backed securities: residential	$	—	$	288,181	$	—	$	288,181
Mortgage-backed securities: commercial		—		36,972		—		36,972
State and municipal securities		—		282,935		145		283,080
Total Securities		—		608,088		145		608,233
Mortgage banking derivative		—		198		—		198
Interest rate swap derivative		—		7,263		—		7,263
Total assets	$	—	$	615,549	$	145	$	615,694

Liabilities:
Mortgage banking derivative		—		14		—		14
Interest rate swap derivative		—		7,860		—		7,860
Total liabilities	$	—	$	7,874	$	—	$	7,874

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:


	December 31, 2020
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	—	$	—	$	178	$	178
Non-working capital loans		—		—		4,904		4,904
Commercial real estate and multi-family residential loans:
Owner occupied loans		—		—		1,211		1,211
Agri-business and agricultural loans:
Loans secured by farmland		—		—		61		61
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		—		—		411		411
Total impaired loans	$	—	$	—	$	6,765	$	6,765
Other real estate owned		—		—		0		—
Total assets	$	—	$	—	$	6,765	$	6,765


	December 31, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	—	$	—	$	3,125	$	3,125
Non-working capital loans		—		—		6,374		6,374
Commercial real estate and multi-family residential loans:
Construction and land development loans		—		—		43		43
Owner occupied loans		—		—		1,450		1,450
Agri-business and agricultural loans:
Loans secured by farmland		—		—		57		57
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		—		—		474		474
Open end and junior lien loans		—		—		587		587
Other consumer loans		—		—		11		11
Total impaired loans	$	—	$	—	$	12,121	$	12,121
Other real estate owned		—		—		—		—
Total assets	$	—	$	—	$	12,121	$	12,121

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, 2020:


(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	5,082	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	55	%	16%-100%

Impaired loans:
Commercial real estate		1,211	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	53	%	21%-74%

Impaired loans:
Agribusiness and agricultural		61	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	58	%

Impaired loans:
Consumer 1-4 family mortgage		411	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	11	%	10%-15%

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, 2019:


(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	9,499	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	53	%	1%-100%

Impaired loans:
Commercial real estate		1,493	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	27	%	7%-61%

Impaired loans:
Agribusiness and agricultural		57	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	61	%

Impaired loans:
Consumer 1-4 family mortgage		1,061	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	14	%	5%-100%


Impaired loans:
Other consumer		11	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	36	%

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

December 31, 2020

Carrying

Estimated Fair Value

(dollars in thousands)

Value

Level 1

Level 2

Level 3

Total

Financial Assets:

Cash and cash equivalents

249,927

247,228

2,699

—

249,927

Securities available-for-sale

734,845

—

734,705

140

734,845

Real estate mortgages held-for-sale

11,218

—

11,651

—

11,651

Loans, net

4,587,748

—

4,532,639

Mortgage banking derivative

1,182

—

1,182

—

1,182

Interest rate swap derivative

21,764

—

21,764

—

21,764

Federal Reserve and Federal Home Loan Bank Stock

13,772

N/A

Accrued interest receivable

18,761

—

3,801

14,960

18,761

Financial Liabilities:

Certificates of deposit

(1,024,819)

—

(1,033,095)

—

(1,033,095)

All other deposits

(4,011,986)

—

(4,011,986)

Miscellaneous borrowings

(10,500)

—

(10,500)

—

(10,500)

Federal Home Loan Bank advances

(75,000)

—

(68,967)

—

(68,967)

Mortgage banking derivative

(111)

—

(111)

—

(111)

Interest rate swap derivative

(21,794)

—

(21,794)

—

(21,794)

Standby letters of credit

(686)

—

(686)

Accrued interest payable

(5,959)

(66)

(5,893)

—

(5,959)


	December 31, 2019
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	99,381	$	96,603	$	2,778	$	—	$	99,381
Securities available-for-sale		608,233		—		608,088		145		608,233
Real estate mortgages held-for-sale		4,527		—		4,614		—		4,614
Loans, net		4,015,176		—		—		3,979,006		3,979,006
Mortgage banking derivative		198		—		198		—		198
Interest rate swap derivative		7,263		—		7,263		—		7,263
Federal Reserve and Federal Home Loan Bank Stock		13,772		N/A		N/A		N/A		N/A
Accrued interest receivable		15,391		—		3,729		11,662		15,391
Financial Liabilities:
Certificates of deposit		(1,192,067)		—		(1,202,060)		—		(1,202,060)
All other deposits		(2,941,752)		(2,941,752)		—		—		(2,941,752)
Federal Home Loan Bank advances		(170,000)		—		(169,998)		—		(169,998)
Mortgage banking derivative		(14)		—		(14)		—		(14)
Interest rate swap derivative		(7,860)		—		(7,860)		—		(7,860)
Standby letters of credit		(915)		—		—		(915)		(915)
Accrued interest payable		(11,604)		(102)		(11,502)		—		(11,604)

LAND, PREMISES AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2020

LAND, PREMISES AND EQUIPMENT, NET

Summary of Land, Premises And Equipment

Land, premises and equipment and related accumulated depreciation were as follows at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Land	$	12,472	$	12,511
Premises and improvements		55,682		53,424
Equipment and furniture		38,133		38,691
Total cost		106,287		104,626
Less accumulated depreciation		46,989		44,261
Land, premises and equipment, net	$	59,298	$	60,365

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2020

DEPOSITS

Summary of Certain Deposits

The following table details total deposits as of December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Non-interest bearing demand deposits	$	1,538,331	$	983,307
Savings and transaction accounts:
Savings deposits		312,702		234,508
Interest bearing demand deposits		2,160,953		1,723,937
Time deposits:
Other time deposits		239,582		281,934
Deposits of $100,000 to $250,000		271,337		291,805
Deposits of $250,000 or more		513,900		618,328
Total deposits	$	5,036,805	$	4,133,819

Deposit Liabilities

At December 31, 2020, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Maturing in 2021	$	757,059
Maturing in 2022		195,703
Maturing in 2023		27,767
Maturing in 2024		34,086
Maturing in 2025		9,294
Thereafter		910
Total time deposits	$	1,024,819

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2020

BORROWINGS

Schedule of Short-Term Debt

For the years ending December 31, advances from the FHLB were as follows:


(dollars in thousands)	2020		2019
Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020	$	—	$	170,000
Federal Home Loan Bank of Indianapolis Putable Advance, 0.39%, Due March 4, 2030		75,000		—
Total	$	75,000	$	170,000

Securities Sold with Agreements to Repurchase


(dollars in thousands)	2020			2019			2018
Securities sold under agreements to repurchase
Outstanding at year end	$	—		$	—		$	75,555
Approximate average interest rate at year end		—	%		—	%		0.74	%
Highest amount outstanding as of any month end during the year	$	—		$	72,814		$	106,239
Approximate average outstanding during the year		—			15,104			86,874
Approximate average interest rate during the year		—	%		0.86	%		0.58	%

PENSION AND OTHER POSTRETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2020

PENSION AND OTHER POSTRETIREMENT PLANS

Schedule of Changes in Projected Benefit Obligations and Plan Assets

Information as to the Company’s employee benefit plans at December 31, 2020 and 2019 is as follows:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2020		2019		2020		2019
Change in benefit obligation:
Beginning benefit obligation	$	2,715	$	2,118	$	991	$	924
Interest cost		75		87		27		37
Actuarial (gain) loss		276		631		84		164
Benefits paid		(356)		(121)		(134)		(134)
Ending benefit obligation		2,710		2,715		968		991

Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets		2,472		2,151		914		885
Actual return		233		415		99		163
Employer contribution		—		27		—		—
Benefits paid		(356)		(121)		(134)		(134)
Ending plan assets		2,349		2,472		879		914
Funded status at end of year	$	(361)	$	(243)	$	(89)	$	(77)

Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2020		2019		2020		2019
Net actuarial loss	$	1,362	$	1,464	$	553	$	597

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the consolidated balance sheets consist of:


	Pension Benefits				SERP Benefits
(dollars in thousands)	2020		2019		2020		2019
Funded status included in other liabilities	$	(361)	$	(243)	$	(89)	$	(77)

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)	2020		2019		2018		2020		2019		2018
Net pension expense:
Service cost	$	—	$	—	$	—	$	—	$	—	$	—
Interest cost		75		87		93		27		37		34
Expected return on plan assets		(140)		(137)		(138)		(51)		(55)		(61)
Recognized net actuarial loss		171		132		193		80		73		73
Settlement cost		115		—		224		0		0		0
Net pension expense	$	221	$	82	$	372	$	56	$	55	$	46

Net (gain) loss	$	69	$	353	$	(296)	$	36	$	56	$	27
Amortization of net loss		(171)		(132)		(193)		(80)		(73)		(73)
Total recognized in other comprehensive income (loss)		(102)		221		(489)		(44)		(17)		(46)
Total recognized in net pension expense and other comprehensive income (loss)	$	119	$	303	$	(117)	$	12	$	38	$	—

Schedule of Assumptions Used in Calculating the Net Benefit Obligation


	Pension Benefits						SERP Benefits
	2020		2019		2018		2020		2019		2018
The following assumptions were used in calculating the net benefit obligation:

Weighted average discount rate	2.08	%	2.98	%	4.08	%	2.08	%	2.98	%	4.08	%
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	0.53	%	2.01	%	3.33	%	N/A		N/A		N/A
Next 15 years	2.31	%	3.06	%	4.39	%	N/A		N/A		N/A
All future years	3.09	%	3.65	%	4.72	%	N/A		N/A		N/A

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

Weighted average discount rate	2.98	%	4.08	%	3.46	%	2.98	%	4.08	%	3.46	%
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 2020 and 2019, target allocation for 2021, and expected long-term rate of return by asset category are as follows:


			Percentage of Plan				Weighted
	Target		Assets				Average Expected
	Allocation		at Year End				Long-Term Rate
Asset Category	2021		2020		2019		of Return
Equity securities	55-65	%	65	%	61	%	8.85	%
Debt securities	35-45	%	31	%	36	%	3.00	%
Other	5-10	%	4	%	3	%	0.10	%
Total			100	%	100	%	6.50	%

The Company’s SERP plan asset allocation at year-end 2020 and 2019, target allocation for 2021, and expected long-term rate of return by asset category are as follows:


			Percentage of Plan				Weighted
	Target		Assets				Average Expected
	Allocation		at Year End				Long-Term Rate
Asset Category	2021		2020		2019		of Return
Equity securities	55-65	%	64	%	65	%	8.85	%
Debt securities	35-45	%	34	%	34	%	3.00	%
Other	5-10	%	2	%	1	%	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, 2020, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	962	$	962	$	—	$	—
Equity securities - US mid cap stock mutual funds		124		124		—		—
Equity securities - US small cap stock mutual funds		129		129		—		—
Equity securities - international stock mutual funds		202		202		—		—
Equity securities - emerging markets stock mutual funds		105		105		—		—
Debt securities - intermediate term bond mutual funds		526		526		—		—
Debt securities - short term bond mutual funds		205		205		—		—
Cash - money market account		93		93		—		—
Total	$	2,346	$	2,346	$	—	$	—

The fair values of the Company’s pension plan assets at December 31, 2019, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2 )		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	912	$	912	$	—	$	—
Equity securities - US mid cap stock mutual funds		115		115		—		—
Equity securities - US small cap stock mutual funds		119		119		—		—
Equity securities - international stock mutual funds		257		257		—		—
Equity securities - emerging markets stock mutual funds		111		111		—		—
Debt securities - intermediate term bond mutual funds		402		402		—		—
Debt securities - short term bond mutual funds		480		480		—		—
Cash - money market account		74		74		—		—
Total	$	2,470	$	2,470	$	—	$	—

The fair values of the Company’s SERP assets at December 31, 2020, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2 )		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	360	$	360	$	0	$	0
Equity securities - US mid cap stock mutual funds		23		23		0		0
Equity securities - US small cap stock mutual funds		72		72		0		0
Equity securities - emerging markets stock mutual funds		37		37		0		0
Equity securities - international stock mutual funds		72		72		0		0
Debt securities - intermediate term bond mutual funds		216		216		0		0
Debt securities - short term bond mutual funds		82		82		0		0
Cash - money market account		16		16		0		0
Total	$	878	$	878	$	0	$	0

The fair values of the Company’s SERP assets at December 31, 2019, by asset category are as follows:


			Quoted Prices
			in Active		Significant		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
(dollars in thousands)
Equity securities - US large cap common stocks	$	353	$	353	$	—	$	—
Equity securities - US mid cap stock mutual funds		46		46		—		—
Equity securities - US small cap stock mutual funds		47		47		—		—
Equity securities - emerging markets stock mutual funds		43		43		—		—
Equity securities - international stock mutual funds		100		100		—		—
Debt securities - intermediate term bond mutual funds		156		156		—		—
Debt securities - short term bond mutual funds		155		155		—		—
Cash - money market account		13		13		—		—
Total	$	913	$	913	$	—	$	—

Schedule of Expected Benefit Payments

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


	Pension		SERP
Plan Year	Benefits		Benefits
(dollars in thousands)
2021	$	212	$	131
2022		205		125
2023		214		117
2024		192		109
2025		196		99
2026-2030		839		329

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Scedule of Components of Income Tax Expense

Income tax expense for the years ended December 31, 2020, 2019 and 2018 consisted of the following:


(dollars in thousands)	2020		2019		2018
Current federal	$	20,032	$	19,430	$	16,871
Deferred federal		(1,688)		(408)		707
Revalue deferred taxes due to tax reform		—		—		(408)
Current state		1,484		1,394		1,462
Deferred state		(289)		(78)		(99)
Total income tax expense	$	19,539	$	20,338	$	18,533

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)	2020		2019		2018
Income taxes at statutory federal rate of 21%	$	21,814	$	22,551	$	20,778
Increase (decrease) in taxes resulting from:
Tax exempt income		(1,925)		(1,682)		(1,434)
Nondeductible expense		117		194		165
State income tax, net of federal tax effect		944		1,040		1,077
Captive insurance premium income		(227)		(310)		(292)
Tax credits		(540)		(548)		(412)
Bank owned life insurance		(595)		(573)		(303)
Long - term incentive plan		(58)		(421)		(641)
Revaluation deferred tax asset at 21% rate		—		—		(408)
Other		9		87		3
Total income tax expense	$	19,539	$	20,338	$	18,533

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2020 and 2019 consisted of the following:


(dollars in thousands)	2020		2019
Deferred tax assets:
Bad debts	$	15,634	$	12,945
Pension and deferred compensation liability		2,006		1,505
Nonaccrual loan interest		892		1,104
Long-term incentive plan		1,212		2,281
Lease liability		1,190		1,303
Other		745		510
		21,679		19,648
Deferred tax liabilities:
Depreciation		4,718		4,741
Loan servicing rights		1,162		1,019
State taxes		524		464
Intangible assets		1,265		1,270
REIT spillover dividend		1,180		1,401
Prepaid expenses		948		795
Lease right of use		1,190		1,303
Other		442		382
		11,429		11,375
Valuation allowance		—		—
Net deferred tax asset	$	10,250	$	8,273

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

Schedule of related party transactions

Loans to principal officers, directors, and their affiliates as of December 31, 2020 and 2019 were as follows:


(dollars in thousands)	2020		2019
Beginning balance	$	83,980	$	83,546
New loans and advances		120,049		55,465
Effect of changes in related parties		1,650		(5,967)
Repayments and renewals		(100,985)		(49,064)
Ending balance	$	104,694	$	83,980

STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2020

STOCK BASED COMPENSATION

Schedule of Information on Stock Awards Exercised


(dollars in thousands)	2020		2019		2018
Total intrinsic value	$	—	$	—	$	243
Cash received		—		—		118
Actual tax benefit realized for tax deductions		—		—		—

Schedule of Restricted Stock Awards and Units

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


		Weighted-Average
		Grant-Date
Nonvested Shares	Shares	Fair Value
Nonvested at January 1, 2020	3,500	$	45.70
Granted	17,100		46.13
Vested	(15,600)		46.32
Nonvested at December 31, 2020	5,000	$	45.22

Schedule of Nonvested Performance-based Units


		Weighted-Average
		Grant-Date
Nonvested Shares	Shares	Fair Value
Nonvested at January 1, 2020	277,085	$	44.86
Granted, net	7,053		44.73
Vested	(120,204)		44.91
Forfeited	(6,419)		43.98
Nonvested at December 31, 2020	157,515	$	44.85

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)

12 Months Ended

Dec. 31, 2020

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.


													Minimum Required to
					Minimum Required				For Capital Adequacy				Be Well Capitalized
					For Capital				Purposes Plus Capital				Under Prompt Corrective
	Actual				Adequacy Purposes				Conservation Buffer				Action Regulations
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2020:
Total Capital (to Risk Weighted Assets)
Consolidated	$	682,778	14.65	%	$	372,921	8.00	%	$	489,459	N/A			N/A	N/A
Bank	$	678,034	14.56	%	$	372,560	8.00	%	$	488,985	10.50	%	$	465,700	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	624,381	13.39	%	$	279,691	6.00	%	$	396,229	N/A			N/A	N/A
Bank	$	619,693	13.31	%	$	279,420	6.00	%	$	395,845	8.50	%	$	372,560	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	624,381	13.39	%	$	209,768	4.50	%	$	326,306	N/A			N/A	N/A
Bank	$	619,693	13.31	%	$	209,565	4.50	%	$	325,990	7.00	%	$	302,705	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	624,381	10.93	%	$	228,406	4.00	%	$	228,406	N/A			N/A	N/A
Bank	$	619,693	10.88	%	$	227,900	4.00	%	$	227,900	4.00	%	$	284,875	5.00	%

As of December 31, 2019:
Total Capital (to Risk Weighted Assets)
Consolidated	$	631,723	14.36	%	$	351,894	8.00	%	$	461,862	N/A			N/A	N/A
Bank	$	616,386	14.04	%	$	351,227	8.00	%	$	460,985	10.50	%	$	439,034	10.00	%
Tier I Capital (to Risk Weighted Assets)
Consolidated	$	580,982	13.21	%	$	263,921	6.00	%	$	373,887	N/A			N/A	N/A
Bank	$	565,645	12.88	%	$	263,420	6.00	%	$	373,179	8.50	%	$	351,227	8.00	%
Common Equity Tier 1 (CET1)
Consolidated	$	580,982	13.21	%	$	197,941	4.50	%	$	307,908	N/A			N/A	N/A
Bank	$	565,645	12.88	%	$	197,565	4.50	%	$	307,324	7.00	%	$	285,372	6.50	%
Tier I Capital (to Average Assets)
Consolidated	$	580,982	11.67	%	$	199,099	4.00	%	$	199,099	N/A			N/A	N/A
Bank	$	565,645	11.43	%	$	197,923	4.00	%	$	197,923	4.00	%	$	247,404	5.00	%

OFFSETTING ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

OFFSETTING ASSETS AND LIABILITIES

Schedule of Offsetting Assets And Liability

December 31, 2020

Gross

Amounts

Net Amounts

Gross Amounts Not

Amounts of

Offset in the

presented in

Offset in the Statement

Recognized

Statement of

the Statement

of Financial Position

Assets/

Financial

of Financial

Financial

Cash Collateral

Net

(dollars in thousands)

Liabilities

Position

Instruments

Position

Amount

Assets

Interest Rate Swap Derivatives

21,764

—

21,764

—

21,764

Total Assets

21,764

—

21,764

—

21,764

Liabilities

Interest Rate Swap Derivatives

21,794

—

21,794

—

(21,370)

424

Total Liabilities

21,794

—

21,794

—

(21,370)

424


	December 31, 2019
			Gross
	Gross		Amounts		Net Amounts		Gross Amounts Not
	Amounts of		Offset in the		presented in		Offset in the Statement
	Recognized		Statement of		the Statement		of Financial Position
	Assets/		Financial		of Financial		Financial		Cash Collateral		Net
(dollars in thousands)	Liabilities		Position		Position		Instruments		Position		Amount
Assets
Interest Rate Swap Derivatives	$	7,263	$	—	$	7,263	$	—	$	—	$	7,263
Total Assets	$	7,263	$	—	$	7,263	$	—	$	—	$	7,263
Liabilities
Interest Rate Swap Derivatives	$	7,860	$	—	$	7,860	$	—	$	(7,560)	$	300
Total Liabilities	$	7,860	$	—	$	7,860	$	—	$	(7,560)	$	300

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

12 Months Ended

Dec. 31, 2020

COMMITMENTS, OFF BALANCE SHEET RISKS AND CONTINGENCIES

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, 2020 and 2019, were as follows:


	2020				2019
	Fixed		Variable		Fixed		Variable
(dollars in thousands)	Rate		Rate		Rate		Rate
Commercial loan lines of credit	$	52,568	$	1,646,539	$	39,104	$	1,451,704
Standby letters of credit		—		53,796		—		70,932
Real estate mortgage loans		11,984		3,921		4,448		1,488
Real estate construction mortgage loans		767		3,051		478		2,139
Home equity mortgage open-ended revolving lines		—		267,530		—		247,562
Consumer loan open-ended revolving lines		—		19,918		180		17,116
Total	$	65,319	$	1,994,755	$	44,210	$	1,790,941

Schedule Of Rate Of Interest Percentage Financial Instruments

Interest rate ranges on commitments and open-ended revolving lines of credit for years ended December 31, 2020 and 2019, were as follows:


	2020				2019
	Fixed		Variable		Fixed		Variable
	Rate		Rate		Rate		Rate
Commercial loan	1.00-14.50	%	1.16-9.25	%	0.75-14.50	%	2.65-9.25	%
Real estate mortgage loan	2.63-3.75	%	3.00-5.75	%	3.13-4.00	%	3.75-4.25	%
Consumer loan open-ended revolving line	15.00	%	3.00-15.00	%	15.00	%	3.88-15.00	%

PARENT COMPANY STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2020

PARENT COMPANY STATEMENTS

Schedule of Condensed Balance Sheet

CONDENSED BALANCE SHEETS


	December 31,
(dollars in thousands)	2020		2019
ASSETS
Deposits with Lake City Bank	$	568	$	1,762
Deposits with other depository institutions		2,433		2,104
Cash		3,001		3,866
Investments in banking subsidiary		652,407		582,674
Investments in other subsidiaries		3,043		3,276
Other assets		9,455		8,457
Total assets	$	667,906	$	598,273
LIABILITIES
Dividends payable and other liabilities	$	311	$	262
Borrowings		10,500		—
STOCKHOLDERS’ EQUITY		657,095		598,011
Total liabilities and stockholders’ equity	$	667,906	$	598,273

Schedule of Condensed of income and comprehensive income statement

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


	Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Dividends from Lake City Bank	$	32,079	$	57,842	$	27,933
Dividends from non-bank subsidiaries		1,300		1,302		1,010
Other income		—		155		171
Interest expense on subordinated debt		—		(1,720)		(1,643)
Miscellaneous expense		(3,935)		(5,321)		(6,422)
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES		29,444		52,258		21,049
Income tax benefit		1,065		2,256		2,795
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES		30,509		54,514		23,844
Equity in undistributed income of subsidiaries		53,828		32,533		56,567
NET INCOME	$	84,337	$	87,047	$	80,411
COMPREHENSIVE INCOME	$	100,022	$	105,297	$	75,131

Schedule of Condensed cash flow statement

CONDENSED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Cash flows from operating activities:
Net income	$	84,337	$	87,047	$	80,411
Adjustments to net cash from operating activities:
Equity in undistributed income of subsidiaries		(53,828)		(32,533)		(56,567)
Other changes		1,257		3,529		7,294
Net cash from operating activities		31,766		58,043		31,138
Cash flows from financing activities
Repayment of long-term debt		—		(30,928)		—
Proceeds from short-term borrowings		10,500		—		—
Payments related to equity incentive plans		(2,137)		(2,109)		(2,435)
Purchase of treasury stock		(10,547)		(515)		(463)
Sales of treasury stock		119		118		115
Dividends paid		(30,566)		(29,639)		(25,278)
Cash flows from financing activities		(32,631)		(63,073)		(28,061)
Net increase (decrease) in cash and cash equivalents		(865)		(5,030)		3,077
Cash and cash equivalents at beginning of the year		3,866		8,896		5,819
Cash and cash equivalents at end of the year	$	3,001	$	3,866	$	8,896

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2020

EARNINGS PER SHARE

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)	2020		2019		2018
Basic earnings per common share:
Net income	$	84,337	$	87,047	$	80,411
Weighted-average common shares outstanding		25,469,242		25,588,404		25,288,533
Basic earnings per common share	$	3.31	$	3.40	$	3.18
Diluted earnings per common share:
Net income	$	84,337	$	87,047	$	80,411
Weighted-average common shares outstanding for basic earnings per common share		25,469,242		25,588,404		25,288,533
Add: Dilutive effect of assumed exercise of warrant		—		—		225,831
Add: Dilutive effect of assumed exercises of stock options and awards		104,699		170,489		213,467
Average shares and dilutive potential common shares		25,573,941		25,758,893		25,727,831
Diluted earnings per common share	$	3.30	$	3.38	$	3.13

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2020

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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, 2020 and 2019 all shown net of tax:


	Unrealized
	Gains and
	(Losses) on		Defined
	Available-		Benefit
	for-Sales		Pension
(dollars in thousands)	Securities		Items		Total
Balance at January 1, 2020	$	13,607	$	(1,548)	$	12,059
Other comprehensive income (loss) before reclassification		15,917		(78)		15,839
Amounts reclassified from accumulated other comprehensive income (loss)		(342)		188		(154)
Net current period other comprehensive income (loss)		15,575		110		15,685
Balance at December 31, 2020	$	29,182	$	(1,438)	$	27,744


	Unrealized
	Gains and
	(Losses) on		Defined
	Available-		Benefit
	for-Sales		Pension
(dollars in thousands)	Securities		Items		Total
Balance at January 1, 2019	$	(4,796)	$	(1,395)	$	(6,191)
Other comprehensive income (loss) before reclassification		18,515		(306)		18,209
Amounts reclassified from accumulated other comprehensive income (loss)		(112)		153		41
Net current period other comprehensive income (loss)		18,403		(153)		18,250
Balance at December 31, 2019	$	13,607	$	(1,548)	$	12,059

Schedule of reclassification Accumulated other comprehensive income

Reclassifications out of accumulated comprehensive income for the years ended December 31, 2020, 2019 and 2018 are as follows:


Details about	Amount		Affected Line Item
Accumulated Other	Reclassified From		in the Statement
Comprehensive	Accumulated Other		Where Net
Income Components	Comprehensive Income		Income is Presented
2020
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	433	Net securities gains (losses)
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


2019
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	142	Net securities gains (losses)
Tax effect		(30)	Income tax expense
Subtotal		112	Net of tax
Amortization of defined benefit pension items⁽¹⁾		(205)	Salaries and employee benefits
Tax effect		52	Income tax expense
Subtotal		(153)	Net of tax
Total reclassifications for the period	$	(41)	Net income


2018
(dollars in thousands)
Realized gains and (losses) on available-for-sale securities	$	(50)	Net securities gains (losses)
Tax effect		11	Income tax expense
Subtotal		(39)	Net of tax
Amortization of defined benefit pension items⁽¹⁾		(266)	Salaries and employee benefits
Tax effect		69	Income tax expense
Subtotal		(197)	Net of tax
Total reclassifications for the period	$	(236)	Net income

(1)	Included in the computation of net pension plan expense as more fully discussed in Note 11 – Pension and Other Postretirement Plans.

SELECTED QUARTERLY DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2020

SELECTED QUARTERLY DATA (UNAUDITED

Schedule of Quarterly Financial Information

4th

3rd

2nd

1st

2020

Quarter

Interest income

49,854

45,979

46,831

50,439

Interest expense

5,141

6,066

7,303

11,585

Net interest income

44,713

39,913

39,528

38,854

Provision for loan losses

920

1,750

5,500

6,600

Net interest income after provision

43,793

38,163

34,028

32,254

Noninterest income

11,782

13,115

11,169

10,777

Noninterest expense

24,912

23,125

21,079

22,089

Income tax expense

6,071

5,377

4,448

3,643

Net income

24,592

22,776

19,670

17,299

Basic earnings per common share

0.97

0.89

0.77

0.68

Diluted earnings per common share

0.97

0.89

0.77

0.67


	4th		3rd		2nd		1st
2019	Quarter		Quarter		Quarter		Quarter
Interest income	$	52,312	$	54,769	$	54,635	$	53,494
Interest expense		13,430		15,224		16,224		15,285
Net interest income		38,882		39,545		38,411		38,209
Provision for loan losses		250		1,000		785		1,200
Net interest income after provision		38,632		38,545		37,626		37,009
Noninterest income		11,119		10,765		11,588		11,525
Noninterest expense		22,122		22,737		22,092		22,473
Income tax expense		5,431		5,119		5,409		4,379
Net income	$	22,198	$	21,454	$	21,713	$	21,682

Basic earnings per common share	$	0.86	$	0.84	$	0.85	$	0.85
Diluted earnings per common share	$	0.86	$	0.83	$	0.85	$	0.84

REVENUE RECOGNITION (Tables)

12 Months Ended

Dec. 31, 2020

REVENUE RECOGNITION

Revenue from External Customers by Products and Services


	Year Ended December 31,
	2020		2019		2018
NONINTEREST INCOME
Wealth advisory fees	$	7,468	$	6,835	$	6,344
Investment brokerage fees		1,670		1,687		1,458
Service charges on deposit accounts
Service charges on commercial deposit acounts		5,798		10,082		10,234
Service charges on retail deposit acounts		851		880		879
Overdrafts, net		2,485		3,585		3,581
Other		976		1,170		1,137
Loan and service fees
Debit card interchange fees		6,707		6,344		5,883
Loan fees (1)		2,366		2,544		2,423
Other		1,012		1,023		985
Merchant and interchange fee income		2,408		2,641		2,461
Bank owned life insurance income (1)		2,105		1,890		1,244
Interest rate swap fee income (1)		5,089		1,691		475
Mortgage banking income (1)		3,911		1,626		1,150
Net securities gains (losses) (1)		433		142		(50)
Other income		3,564		2,857		2,098
Total noninterest income	$	46,843	$	44,997	$	40,302

(1)	Not within scope of ASC 606

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

LEASES

Schedule of Maturity Analysis of the Operating Lease Liabilities


	Operating Lease
Years ending December 31, (in thousands)	Obligation
2021	$	581
2022		595
2023		606
2024		622
2025		640
2026 and thereafter		2,233
Total undiscounted lease payments		5,277
Less imputed interest		(602)
Lease liability	$	4,675
Right-of-use asset	$	4,675

Schedule of Lease Cost


	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
Lease cost
Operating lease cost	$	536		$	498
Short-term lease cost		24			24
Total lease cost	$	560		$	522

Other information
Operating cash outflows from operating leases	$	536		$	498
Weighted-average remaining lease term - operating leases		8.8	years		9.8	years
Weighted average discount rate - operating leases		2.8	%		2.8	%

EMPLOYEE BENEFIT PLANS (Tables) (Imported)

12 Months Ended

Dec. 31, 2020

PENSION AND OTHER POSTRETIREMENT PLANS

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)	2020		2019		2018		2020		2019		2018
Net pension expense:
Service cost	$	—	$	—	$	—	$	—	$	—	$	—
Interest cost		75		87		93		27		37		34
Expected return on plan assets		(140)		(137)		(138)		(51)		(55)		(61)
Recognized net actuarial loss		171		132		193		80		73		73
Settlement cost		115		—		224		0		0		0
Net pension expense	$	221	$	82	$	372	$	56	$	55	$	46

Net (gain) loss	$	69	$	353	$	(296)	$	36	$	56	$	27
Amortization of net loss		(171)		(132)		(193)		(80)		(73)		(73)
Total recognized in other comprehensive income (loss)		(102)		221		(489)		(44)		(17)		(46)
Total recognized in net pension expense and other comprehensive income (loss)	$	119	$	303	$	(117)	$	12	$	38	$	—

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary Of Significant Accounting Policies Line Items
Accrued Interest On Loans	$ 14,600,000	$ 11,500,000
Financing Receivable, after Allowance for Credit Loss	250,000
Equity Method Investments	9,200,000	6,700,000
Real Estate Acquired Through Foreclosure	316,000	316,000
Contractually Specified Servicing Fees, Amount	$ 1,200,000	$ 1,100,000	$ 1,100,000
Treasury Stock, Shares	473,660	178,741
Bank Owned Life Insurance	$ 95,227,000	$ 83,848,000
Cash On Hand Or On Deposit Requirement		28,900,000
Mortgage Loans On Real Estate Carrying Value	3,500,000	3,800,000
Unpaid principal balances	$ 337,900,000
Escrow deposit		$ 1,600,000
Shares purchased under director deferred compensation plan included in treasury stock	184,559	178,741
Repurchased common shares	289,101
Weighted average price	$ 34.63
Unpaid principal balances	$ 351,000,000.0	$ 337,900,000
Cash Available for Distributions	2,600,000	1,600,000
Interest Rate Swap [Member]
Summary Of Significant Accounting Policies Line Items
Amount of risk participation transactions	5,000,000.0
Derivative, Notional Amount	819,100,000	349,600,000
Fair value of interest rate swap asset	21,800,000	7,300,000
Fair value of interest rate swap liability	21,800,000	7,900,000
Life Insurance [Member] \| Officer [Member]
Summary Of Significant Accounting Policies Line Items
Bank Owned Life Insurance	90,400,000	79,800,000
Deferred Compensation Plan [Member] \| Officer [Member]
Summary Of Significant Accounting Policies Line Items
Bank Owned Life Insurance	$ 4,800,000	$ 4,000,000.0
Land, Buildings and Improvements [Member] \| Minimum
Summary Of Significant Accounting Policies Line Items
Property, Plant and Equipment, Useful Life	5 years
Land, Buildings and Improvements [Member] \| Maximum
Summary Of Significant Accounting Policies Line Items
Property, Plant and Equipment, Useful Life	40 years
Furniture and Fixtures [Member] \| Minimum
Summary Of Significant Accounting Policies Line Items
Property, Plant and Equipment, Useful Life	3 years
Furniture and Fixtures [Member] \| Maximum
Summary Of Significant Accounting Policies Line Items
Property, Plant and Equipment, Useful Life	7 years

SECURITIES - Summary of Available For Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Information related to available for sale securities
Amortized Cost	$ 697,906	$ 591,009
Gross Unrealized Gain	37,045	17,841
Gross Unrealized Losses	(106)	(617)
Fair Value	734,845	608,233
U.S. government sponsored agencies
Information related to available for sale securities
Amortized Cost	36,492
Gross Unrealized Gain	56
Gross Unrealized Losses	(61)
Fair Value	36,487
Mortgage-backed securities residential [Member]
Information related to available for sale securities
Amortized Cost	270,231	283,817
Gross Unrealized Gain	9,289	4,751
Gross Unrealized Losses	(17)	(387)
Fair Value	279,503	288,181
Mortgage-backed securities commercial [Member]
Information related to available for sale securities
Amortized Cost	35,877	36,712
Gross Unrealized Gain	1,004	262
Gross Unrealized Losses	0	(2)
Fair Value	36,881	36,972
State and Municipal Securities [Member]
Information related to available for sale securities
Amortized Cost	355,306	270,480
Gross Unrealized Gain	26,696	12,828
Gross Unrealized Losses	(28)	(228)
Fair Value	$ 381,974	$ 283,080

SECURITIES - Schedule of Available For Sale Securities By Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Maturities of Available-for-sale Debt Securities [Abstract]
Amortized Cost, Due in one year or less	$ 2,164
Amortized Cost, Due after one year through five years	11,543
Amortized Cost, Due after five years through ten years	35,829
Amortized Cost, Due after ten years	342,262
Amortized Cost, Available for sale securities with maturities amortized cost	391,798
Amortized Cost, Mortgage-backed securities	306,108
Amortized Cost, Total debt securities	697,906	$ 591,009
Fair Value, Due in one year or less	2,175
Fair Value, Due after one year through five years	11,850
Fair Value, Due after five years through ten years	37,960
Fair Value, Due after ten years	366,476
Fair Value, Available for sale securities with maturities fair value	418,461
Fair Value, Mortgage-backed securities	316,384
Fair Value, Total debt securities	$ 734,845	$ 608,233

SECURITIES - Schedule of Sales of Securities Available For Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Sales of securities available-for-sale
Proceeds	$ 8,018	$ 57,114	$ 15,302
Gross gains	433	279	21
Gross losses	$ 0	$ (137)	$ (71)
Number of securities	17	46	29

SECURITIES - Schedule of Available For Sale of Securities Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Securities with unrealized losses [Abstract]
Less than 12 months, Fair Value	$ 26,724	$ 42,215
12 months or more, Fair value	3,112	14,174
Total Fair value	29,836	56,389
Less than 12 Months, Unrealized Losses	89	342
12 Months or more, Unrealized Losses	17	275
Total Unrealized Losses	106	617
U.S. government sponsored agencies
Securities with unrealized losses [Abstract]
Less than 12 months, Fair Value	19,800
12 months or more, Fair value	0
Total Fair value	19,800
Less than 12 Months, Unrealized Losses	61
12 Months or more, Unrealized Losses	0
Total Unrealized Losses	61
Mortgage-backed securities residential [Member]
Securities with unrealized losses [Abstract]
Less than 12 months, Fair Value	3	23,436
12 months or more, Fair value	3,112	14,174
Total Fair value	3,115	37,610
Less than 12 Months, Unrealized Losses	0	112
12 Months or more, Unrealized Losses	17	275
Total Unrealized Losses	17	387
Mortgage-backed securities commercial [Member]
Securities with unrealized losses [Abstract]
Less than 12 months, Fair Value	0	4,591
12 months or more, Fair value	0	0
Total Fair value	0	4,591
Less than 12 Months, Unrealized Losses	0	2
12 Months or more, Unrealized Losses	0	0
Total Unrealized Losses	0	2
State and Municipal Securities [Member]
Securities with unrealized losses [Abstract]
Less than 12 months, Fair Value	6,921	14,188
12 months or more, Fair value	0	0
Total Fair value	6,921	14,188
Less than 12 Months, Unrealized Losses	28	228
12 Months or more, Unrealized Losses	0	0
Total Unrealized Losses	$ 28	$ 228

SECURITIES - Quantitative Disclosure of Available For Sale of Securities (Details)	Dec. 31, 2020	Dec. 31, 2019
Number of securities with unrealized losses [Abstract]
Number of available-for-sale securities in unrealized loss positions, less than 12 months	7	19
Number of available-for-sale securities in unrealized loss positions, 12 months or more	1	6
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions	8	25
U.S. government sponsored agencies
Number of securities with unrealized losses [Abstract]
Number of available-for-sale securities in unrealized loss positions, less than 12 months	3
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions	3
Mortgage-backed securities residential [Member]
Number of securities with unrealized losses [Abstract]
Number of available-for-sale securities in unrealized loss positions, less than 12 months	2	7
Number of available-for-sale securities in unrealized loss positions, 12 months or more	1	6
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions	3	13
Mortgage-backed securities commercial [Member]
Number of securities with unrealized losses [Abstract]
Number of available-for-sale securities in unrealized loss positions, less than 12 months	0	1
Number of available-for-sale securities in unrealized loss positions, 12 months or more	0	0
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions	0	1
State and Municipal Securities [Member]
Number of securities with unrealized losses [Abstract]
Number of available-for-sale securities in unrealized loss positions, less than 12 months	2	11
Number of available-for-sale securities in unrealized loss positions, 12 months or more	0
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions	2	11

SECURITIES - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Information related to available for sale securities
Available-for-sale Securities pledged as collateral	$ 382,700	$ 59,300
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	$ 0	$ 0	$ 0

LOANS - Total Loans Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	$ 4,657,183	$ 4,067,385
Less: Allowance for loan losses	(61,408)	(50,652)	$ (48,453)	$ (47,121)
Net deferred loan fees	(8,027)	(1,557)
Loans, net	4,587,748	4,015,176
Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	4,210,049	3,592,023
Other consumer loans
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	103,616	98,617
Consumer loan open-ended revolving lines
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	447,134	475,362
Commercial and Industrial Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Less: Allowance for loan losses	(28,333)	(25,789)	(22,518)	(21,097)
Commercial and Industrial Loans [Member] \| Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	1,791,378	1,426,868
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	626,023	709,849
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	1,165,355	717,019
Commercial Real Estate and Multi-family Residential Loans [Member] \| Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	1,895,014	1,673,322
Commercial Real Estate and Multi-family Residential Loans [Member] \| Construction and Land Development Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	362,653	287,641
Commercial Real Estate and Multi-family Residential Loans [Member] \| Owner Occupied Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	648,019	573,665
Commercial Real Estate and Multi-family Residential Loans [Member] \| Nonowner Occupied Loans
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	579,625	571,364
Commercial Real Estate and Multi-family Residential Loans [Member] \| Multifamily Loans
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	304,717	240,652
Agri-business and Agricultural Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Less: Allowance for loan losses	(3,043)	(3,869)	$ (4,305)	$ (4,920)
Agri-business and Agricultural Loans [Member] \| Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	429,644	379,531
Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland \| Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	195,410	174,380
Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production \| Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	234,234	205,151
Other Commercial Loans \| Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	94,013	112,302
Total Consumer 1 To 4 Family Mortgage Loans
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	343,518	376,745
Total Consumer 1 To 4 Family Mortgage Loans \| Closed End First Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	167,847	177,227
Total Consumer 1 To 4 Family Mortgage Loans \| Open End And Junior Lien Loans [Member]
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	163,664	186,552
Total Consumer 1 To 4 Family Mortgage Loans \| Residential Construction and Land Development Loans
Accounts, Notes, Loans and Financing Receivable
Total Commercial And Consumer Loans	$ 12,007	$ 12,966

LOANS - Additional Information (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
LOANS
Mortgage Loans in Process of Foreclosure, Amount	$ 19,000	$ 1,600,000

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses
Beginning balance	$ 50,652	$ 48,453	$ 47,121
Provision for loan losses	14,770	3,235	6,400
Loans charged-off	(5,253)	(1,910)	(6,111)
Recoveries	1,239	874	1,043
Net loans (charged-off) recovered	(4,014)	(1,036)	(5,068)
Ending balance	61,408	50,652	48,453
Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses
Beginning balance	25,789	22,518	21,097
Provision for loan losses	6,640	4,259	5,884
Loans charged-off	(4,524)	(1,447)	(5,215)
Recoveries	428	459	752
Net loans (charged-off) recovered	(4,096)	(988)	(4,463)
Ending balance	28,333	25,789	22,518
Commercial Real Estate and Multi-family Residential Loans
Financing Receivable, Allowance for Credit Losses
Beginning balance	15,796	15,393	14,714
Provision for loan losses	6,868	259	1,140
Loans charged-off	(72)	(17)	(491)
Recoveries	315	161	30
Net loans (charged-off) recovered	243	144	(461)
Ending balance	22,907	15,796	15,393
Agri-business and Agricultural Loans [Member]
Financing Receivable, Allowance for Credit Losses
Beginning balance	3,869	4,305	4,920
Provision for loan losses	(826)	(444)	(657)
Loans charged-off	0	0	0
Recoveries	0	8	42
Net loans (charged-off) recovered	0	8	42
Ending balance	3,043	3,869	4,305
Other Commercial
Financing Receivable, Allowance for Credit Losses
Beginning balance	447	368	577
Provision for loan losses	(31)	79	(209)
Loans charged-off	0	0	0
Recoveries	0	0	0
Net loans (charged-off) recovered	0	0	0
Ending balance	416	447	368
Consumer 1-4 Family Mortgage Loans [Member]
Financing Receivable, Allowance for Credit Losses
Beginning balance	2,086	2,292	2,768
Provision for loan losses	341	(219)	(536)
Loans charged-off	(141)	(110)	(48)
Recoveries	333	123	108
Net loans (charged-off) recovered	192	13	60
Ending balance	2,619	2,086	2,292
Other Consumer
Financing Receivable, Allowance for Credit Losses
Beginning balance	345	283	379
Provision for loan losses	959	275	150
Loans charged-off	(516)	(336)	(357)
Recoveries	163	123	111
Net loans (charged-off) recovered	(353)	(213)	(246)
Ending balance	951	345	283
Unallocated
Financing Receivable, Allowance for Credit Losses
Beginning balance	2,320	3,294	2,666
Provision for loan losses	819	(974)	628
Loans charged-off	0	0	0
Recoveries	0	0	0
Net loans (charged-off) recovered	0	0	0
Ending balance	$ 3,139	$ 2,320	$ 3,294

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Balance In The Allowance For Loan Losses And The Recorded Investment In Loans By Portfolio Management (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 8,041	$ 10,384
Collectively evaluated for impairment	53,367	40,268
Total ending allowance balance	61,408	50,652	$ 48,453	$ 47,121
Loans:
Loans individually evaluated for impairment	20,179	27,829
Loans collectively evaluated for impairment	4,628,977	4,037,999
Total ending loans balance	4,649,156	4,065,828
Commercial and Industrial Loans [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	6,310	9,324
Collectively evaluated for impairment	22,023	16,465
Total ending allowance balance	28,333	25,789	22,518	21,097
Loans:
Loans individually evaluated for impairment	12,533	19,580
Loans collectively evaluated for impairment	1,772,393	1,407,246
Total ending loans balance	1,784,926	1,426,826
Commercial Real Estate and Multi-family Residential Loans
Ending allowance balance attributable to loans:
Individually evaluated for impairment	1,377	538
Collectively evaluated for impairment	21,530	15,258
Total ending allowance balance	22,907	15,796	15,393	14,714
Loans:
Loans individually evaluated for impairment	5,518	4,998
Loans collectively evaluated for impairment	1,887,054	1,665,842
Total ending loans balance	1,892,572	1,670,840
Agri-business and Agricultural Loans [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	84	90
Collectively evaluated for impairment	2,959	3,779
Total ending allowance balance	3,043	3,869	4,305	4,920
Loans:
Loans individually evaluated for impairment	428	445
Loans collectively evaluated for impairment	429,234	379,186
Total ending loans balance	429,662	379,631
Other Commercial
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	416	447
Total ending allowance balance	416	447	368	577
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	93,912	112,166
Total ending loans balance	93,912	112,166
Consumer 1-4 Family Mortgage Loans [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	270	426
Collectively evaluated for impairment	2,349	1,660
Total ending allowance balance	2,619	2,086	2,292	2,768
Loans:
Loans individually evaluated for impairment	1,700	2,789
Loans collectively evaluated for impairment	342,999	375,210
Total ending loans balance	344,699	377,999
Other Consumer
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	6
Collectively evaluated for impairment	951	339
Total ending allowance balance	951	345	283	379
Loans:
Loans individually evaluated for impairment	0	17
Loans collectively evaluated for impairment	103,385	98,349
Total ending loans balance	103,385	98,366
Unallocated
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	3,139	2,320
Total ending allowance balance	3,139	2,320	$ 3,294	$ 2,666
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	0	0
Total ending loans balance	$ 0	$ 0

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Loans Individually Evaluated For Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loans Individually Evaluated for Impairment [Abstract]
Unpaid Principal Balance	$ 22,939	$ 30,422
Recorded Investment	20,179	27,829
Allowance for Loan Losses Allocated	8,041	10,384
Average Recorded Investment	23,362	26,464	$ 18,035
Interest Income Recognized	390	770	442
Cash Basis Interest Income Recognized	385	651	306
Other Consumer Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with an allowance recorded		17
Recorded investment with an allowance recorded		17
Allowance for loans losses allocated with an allowance recorded		6
Average Recorded Investment with an allowance recorded		21
Interest Income Recognized with an allowance recorded		2
Cash basis interest income recognized with an allowance recorded		1
Commercial and Industrial Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Allowance for Loan Losses Allocated	6,310	9,324
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with no related allowance recorded	346	22
Unpaid principal balance with an allowance recorded	433	6,214
Recorded Investment with no related allowance recorded	173	22
Recorded investment with an allowance recorded	433	6,214
Allowance for loan losses allocated with no related allowance recorded	0	0
Allowance for loans losses allocated with an allowance recorded	255	3,089
Average Recorded Investment with no related allowance recorded	375	176	785
Average Recorded Investment with an allowance recorded	2,433	6,335	3,307
Interest Income Recognized with no related allowance recorded	0	9	26
Interest Income Recognized with an allowance recorded	0	143	74
Cash basis interest income recognized with no related allowance recorded	0	9	23
Cash basis interest income recognized with an allowance recorded	0	81	12
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with no related allowance recorded	2,399	2,130
Unpaid principal balance with an allowance recorded	11,644	13,230
Recorded Investment with no related allowance recorded	968	735
Recorded investment with an allowance recorded	10,959	12,609
Allowance for loan losses allocated with no related allowance recorded	0	0
Allowance for loans losses allocated with an allowance recorded	6,055	6,235
Average Recorded Investment with no related allowance recorded	816	1,170	1,862
Average Recorded Investment with an allowance recorded	11,579	11,800	5,328
Interest Income Recognized with no related allowance recorded	21	40	74
Interest Income Recognized with an allowance recorded	287	448	138
Cash basis interest income recognized with no related allowance recorded	21	30	68
Cash basis interest income recognized with an allowance recorded	287	410	81
Commercial Real Estate and Multi-family Residential Loans
Loans Individually Evaluated for Impairment [Abstract]
Allowance for Loan Losses Allocated	1,377	538
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with no related allowance recorded			58
Average Recorded Investment with an allowance recorded			453
Interest Income Recognized with no related allowance recorded			5
Interest Income Recognized with an allowance recorded			26
Cash basis interest income recognized with no related allowance recorded			4
Cash basis interest income recognized with an allowance recorded			29
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with no related allowance recorded	3,002	3,189
Unpaid principal balance with an allowance recorded	2,589	1,988
Recorded Investment with no related allowance recorded	2,930	3,010
Recorded investment with an allowance recorded	2,588	1,988
Allowance for loan losses allocated with no related allowance recorded	0	0
Allowance for loans losses allocated with an allowance recorded	1,377	538
Average Recorded Investment with no related allowance recorded	2,156	2,354	2,291
Average Recorded Investment with an allowance recorded	3,156	1,849	1,631
Interest Income Recognized with no related allowance recorded	13	34	36
Interest Income Recognized with an allowance recorded	30	43	9
Cash basis interest income recognized with no related allowance recorded	12	34	37
Cash basis interest income recognized with an allowance recorded	30	39	1
Agri-business and Agricultural Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Allowance for Loan Losses Allocated	84	90
Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with no related allowance recorded	603	603
Unpaid principal balance with an allowance recorded	145	147
Recorded Investment with no related allowance recorded	283	283
Recorded investment with an allowance recorded	145	147
Allowance for loan losses allocated with no related allowance recorded	0	0
Allowance for loans losses allocated with an allowance recorded	84	90
Average Recorded Investment with no related allowance recorded	283	283	283
Average Recorded Investment with an allowance recorded	147	147	12
Interest Income Recognized with no related allowance recorded	0	0	0
Interest Income Recognized with an allowance recorded	0	3	1
Cash basis interest income recognized with no related allowance recorded	0	0	0
Cash basis interest income recognized with an allowance recorded	0	1	0
Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with no related allowance recorded		15
Recorded Investment with no related allowance recorded		15
Allowance for loan losses allocated with no related allowance recorded		0
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 Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Allowance for Loan Losses Allocated	270	426
Consumer 1-4 Family Mortgage Loans [Member] \| Open End And Junior Lien Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with an allowance recorded		641
Recorded investment with an allowance recorded		640
Allowance for loans losses allocated with an allowance recorded		53
Average Recorded Investment with no related allowance recorded	49	133	205
Average Recorded Investment with an allowance recorded	481	268	38
Interest Income Recognized with no related allowance recorded	0	0	0
Interest Income Recognized with an allowance recorded	0	0	0
Cash basis interest income recognized with no related allowance recorded	0	0	0
Cash basis interest income recognized with an allowance recorded	0	0	0
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with no related allowance recorded	316	411
Unpaid principal balance with an allowance recorded	1,457	1,643
Recorded Investment with no related allowance recorded	236	330
Recorded investment with an allowance recorded	1,459	1,646
Allowance for loan losses allocated with no related allowance recorded	0	0
Allowance for loans losses allocated with an allowance recorded	270	363
Average Recorded Investment with no related allowance recorded	291	272	521
Average Recorded Investment with an allowance recorded	1,557	1,643	1,214
Interest Income Recognized with no related allowance recorded	3	3	13
Interest Income Recognized with an allowance recorded	36	45	37
Cash basis interest income recognized with no related allowance recorded	2	3	12
Cash basis interest income recognized with an allowance recorded	33	43	36
Consumer 1-4 Family Mortgage Loans [Member] \| Open End and Junior Lien Loans
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with no related allowance recorded	5	121
Recorded Investment with no related allowance recorded	5	121
Allowance for loan losses allocated with no related allowance recorded	0	0
Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Unpaid principal balance with an allowance recorded		51
Recorded investment with an allowance recorded		52
Allowance for loans losses allocated with an allowance recorded		10
Average Recorded Investment with an allowance recorded	35	9
Interest Income Recognized with an allowance recorded	0	0
Cash basis interest income recognized with an allowance recorded	$ 0	$ 0
Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member]
Loans Individually Evaluated for Impairment [Abstract]
Average Recorded Investment with an allowance recorded			47
Interest Income Recognized with an allowance recorded			3
Cash basis interest income recognized with an allowance recorded			$ 3

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Aging Of The Recorded Investment In Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	$ 4,635,787	$ 4,045,634
Past Due	1,267	1,474
Financing Receivable, 90 Days or More Past Due, Still Accruing	116	45
Nonaccrual	11,986	18,675
Total Past Due and Nonaccrual	13,369	20,194
Total ending loans balance	4,649,156	4,065,828
Other Commercial Loans
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	93,912	112,166
Past Due	0	0
Nonaccrual	0	0
Total Past Due and Nonaccrual	0	0
Total ending loans balance	93,912	112,166
Other Commercial Loans \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total ending loans balance	1,784,926	1,426,826
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	625,493	703,737
Past Due	0	10
Nonaccrual	606	6,236
Total Past Due and Nonaccrual	606	6,246
Total ending loans balance	626,099	709,983
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	1,153,540	710,557
Past Due	0	4
Nonaccrual	5,287	6,282
Total Past Due and Nonaccrual	5,287	6,286
Total ending loans balance	1,158,827	716,843
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial Real Estate and Multi-family Residential Loans
Financing Receivable, Recorded Investment, Aging [Abstract]
Total ending loans balance	1,892,572	1,670,840
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	361,664	286,534
Past Due	0	0
Nonaccrual	0	0
Total Past Due and Nonaccrual	0	0
Total ending loans balance	361,664	286,534
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	642,527	569,303
Past Due	0	0
Nonaccrual	5,047	4,056
Total Past Due and Nonaccrual	5,047	4,056
Total ending loans balance	647,574	573,359
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	579,050	570,687
Past Due	0	0
Nonaccrual	0	0
Total Past Due and Nonaccrual	0	0
Total ending loans balance	579,050	570,687
Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	304,284	240,260
Past Due	0	0
Nonaccrual	0	0
Total Past Due and Nonaccrual	0	0
Total ending loans balance	304,284	240,260
Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Agri-business and Agricultural Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total ending loans balance	429,662	379,631
Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	194,935	173,959
Past Due	0	0
Nonaccrual	428	430
Total Past Due and Nonaccrual	428	430
Total ending loans balance	195,363	174,389
Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	234,191	205,228
Past Due	108	0
Nonaccrual	0	14
Total Past Due and Nonaccrual	108	14
Total ending loans balance	234,299	205,242
Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Consumer 1-4 Family Mortgage Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total ending loans balance	344,699	377,999
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	165,895	174,902
Past Due	877	1,099
Financing Receivable, 90 Days or More Past Due, Still Accruing	116	45
Nonaccrual	613	827
Total Past Due and Nonaccrual	1,606	1,971
Total ending loans balance	167,501	176,873
Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due		12,870
Past Due		0
Nonaccrual		52
Total Past Due and Nonaccrual		52
Total ending loans balance	11,962	12,922
Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing		0
Consumer 1-4 Family Mortgage Loans [Member] \| Open End and Junior Lien Loans
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	165,094	187,255
Past Due	137	188
Nonaccrual	5	761
Total Past Due and Nonaccrual	142	949
Total ending loans balance	165,236	188,204
Consumer 1-4 Family Mortgage Loans [Member] \| Open End and Junior Lien Loans \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	11,962
Past Due	0
Nonaccrual	0
Total Past Due and Nonaccrual	0
Total ending loans balance	11,962	12,922
Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0
Consumer 1-4 Family Mortgage Loans [Member] \| Other consumer loans
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	103,240	98,176
Past Due	145	173
Nonaccrual	0	17
Total Past Due and Nonaccrual	145	190
Total ending loans balance	103,385	98,366
Consumer 1-4 Family Mortgage Loans [Member] \| Other consumer loans \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, 90 Days or More Past Due, Still Accruing	$ 0	$ 0

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY
Accruing troubled debt restructured loans	$ 5,237	$ 5,909
Nonaccrual troubled debt restructured loans	6,476	3,188
Total troubled debt restructured loans	$ 11,713	$ 9,097

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Loans By Class Modified As Troubled Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans	4	1	12
Extension period for modified repayment terms	0 months
Modified Repayment Terms \| Minimum
Financing Receivable, Modifications
Extension period for modified repayment terms		0 months	0 months
Modified Repayment Terms \| Maximum
Financing Receivable, Modifications
Extension period for modified repayment terms			239 months
All Modifications [Member]
Financing Receivable, Modifications
Number of Loans	4	1	12
Pre-Modification Outstanding Recorded Investment	$ 6,066	$ 35	$ 7,183
Post-Modification Outstanding Recorded Investment	$ 5,533	$ 35	$ 7,182
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member] \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans	1	1	1
Extension period for modified repayment terms	0 months	1 month	0 months
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member] \| All Modifications [Member]
Financing Receivable, Modifications
Number of Loans	1	1	1
Pre-Modification Outstanding Recorded Investment	$ 250	$ 35	$ 600
Post-Modification Outstanding Recorded Investment	$ 315	$ 35	$ 600
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans	2
Extension period for modified repayment terms	0 months
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Modified Repayment Terms \| Minimum
Financing Receivable, Modifications
Extension period for modified repayment terms			0 months
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Modified Repayment Terms \| Maximum
Financing Receivable, Modifications
Extension period for modified repayment terms			6 months
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| All Modifications [Member]
Financing Receivable, Modifications
Number of Loans	2		7
Pre-Modification Outstanding Recorded Investment	$ 4,288		$ 4,628
Post-Modification Outstanding Recorded Investment	$ 3,691		$ 4,628
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member] \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans			1
Extension period for modified repayment terms			12 months
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member] \| All Modifications [Member]
Financing Receivable, Modifications
Number of Loans			1
Pre-Modification Outstanding Recorded Investment			$ 824
Post-Modification Outstanding Recorded Investment			$ 824
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member] \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans	1		2
Extension period for modified repayment terms	0 months		12 months
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member] \| All Modifications [Member]
Financing Receivable, Modifications
Number of Loans	1		2
Pre-Modification Outstanding Recorded Investment	$ 1,528		$ 933
Post-Modification Outstanding Recorded Investment	$ 1,527		$ 933
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member] \| Modified Repayment Terms
Financing Receivable, Modifications
Number of Loans			1
Extension period for modified repayment terms			239 months
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member] \| All Modifications [Member]
Financing Receivable, Modifications
Number of Loans			1
Pre-Modification Outstanding Recorded Investment			$ 198
Post-Modification Outstanding Recorded Investment			$ 197

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Troubled Debt Restructurings Subsequently Defaulted (Details) (Imported) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) item
Troubled Debt Restructurings
Troubled Debt Restructurings, Subsequently Defaulted , Number of Loans \| item	1
Troubled Debt Restructurings, Subsequently Defaulted, Recorded Investment \| $	$ 601
Non-working Capital Loans [Member] \| Commercial and Industrial Loans [Member]
Troubled Debt Restructurings
Troubled Debt Restructurings, Subsequently Defaulted , Number of Loans \| item	1
Troubled Debt Restructurings, Subsequently Defaulted, Recorded Investment \| $	$ 601

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Additional Information (Details)		12 Months Ended
	Jan. 20, 2021 USD ($) borrower	Dec. 31, 2020 USD ($) borrower	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Troubled Debt Restructuring
Loans Modified In Troubled Debt Restructured Loans		$ 5,500,000	$ 2,500,000
Valuation allowance		61,408,000	50,652,000	$ 48,453,000	$ 47,121,000
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			601,000
Loan amount of credit quality analysis		250,000
Financing receivable, loan portfolio, deferrals, COVID-19	$ 102,200,000	$ 100,700,000
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower	50	49
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)	2.30%	2.20%
Loans		$ 4,649,156,000	4,065,828,000
Loans under second deferral action	$ 20,800,000
Loans under fourth deferral action	26,600,000
Borrowers percentage		90
Pass
Troubled Debt Restructuring
Loans		$ 3,997,245,000	$ 3,490,863,000
All Modifications [Member]
Troubled Debt Restructuring
Number of Loans		4,000	1	12
Construction and Land Development Loans [Member]
Troubled Debt Restructuring
Financing Receivable, Modifications, Recorded Investment		$ 2,200,000	$ 2,400,000	$ 1,400,000
Commercial and Industrial Loans [Member]
Troubled Debt Restructuring
Valuation allowance		28,333,000	25,789,000	22,518,000	21,097,000
Financing Receivable, Modifications, Recorded Investment				1,300,000
Loans		1,784,926,000	1,426,826,000
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Troubled Debt Restructuring
Loans		1,158,827,000	716,843,000
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Pass
Troubled Debt Restructuring
Loans		1,111,989,000	673,370,000
Commercial Real Estate and Multi-family Residential Loans
Troubled Debt Restructuring
Valuation allowance		22,907,000	15,796,000	15,393,000	14,714,000
Financing Receivable, Modifications, Recorded Investment			1,900,000
Loans		1,892,572,000	1,670,840,000
Agri-business and Agricultural Loans [Member]
Troubled Debt Restructuring
Valuation allowance		3,043,000	3,869,000	4,305,000	4,920,000
Loans		429,662,000	379,631,000
Consumer 1-4 Family Mortgage Loans [Member]
Troubled Debt Restructuring
Valuation allowance		2,619,000	2,086,000	2,292,000	$ 2,768,000
Increase (decrease) in allowance for loan loss		45,000	484,000	189,000
Financing Receivable, Modifications, Recorded Investment				$ 593,000
Loans		344,699,000	$ 377,999,000
Commercial loan
Troubled Debt Restructuring
Financing receivable, loan portfolio, deferrals, COVID-19	$ 99,700,000	$ 98,200,000
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower	24	22
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)	2.40%	2.30%
Loans under first deferral action		$ 11,900,000
Loans under second deferral action		22,800,000
Loans under third deferral action	$ 40,200,000	41,900,000
Loans under fourth deferral action		24,100,000
Consumer loan open-ended revolving lines
Troubled Debt Restructuring
Financing receivable, loan portfolio, deferrals, COVID-19	$ 2,500,000	$ 2,500,000
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower	26	27
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)	0.70%	0.70%
PPP \| Pass
Troubled Debt Restructuring
Loans		$ 412,000,000.0

FAIR VALUE - Assets and Liabilities Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Securities available for sale	$ 734,845	$ 608,233
Mortgage banking derivative	21,764	7,263
Liabilities
Mortgage banking derivative	424	300
Fair Value, Measurements, Recurring [Member]
Assets
U.S. government sponsored agency securities	36,487
Mortgage-backed securities: residential	279,503	288,181
Mortgage-backed securities: commercial	36,881	36,972
State and municipal securities	381,974	283,080
Securities available for sale	734,845	608,233
Mortgage banking derivative	1,182	198
Interest rate swap derivative	21,764	7,263
Total assets	757,791	615,694
Liabilities
Mortgage banking derivative	111	14
Interest rate swap derivative	21,794	7,860
Total liabilities	21,905	7,874
Level 1 \| Fair Value, Measurements, Recurring [Member]
Assets
U.S. government sponsored agency securities	0
Mortgage-backed securities: residential	0	0
Mortgage-backed securities: commercial	0	0
State and municipal securities	0	0
Securities available for sale	0	0
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Total assets	0	0
Liabilities
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Total liabilities	0	0
Level 2 \| Fair Value, Measurements, Recurring [Member]
Assets
U.S. government sponsored agency securities	36,487
Mortgage-backed securities: residential	279,503	288,181
Mortgage-backed securities: commercial	36,881	36,972
State and municipal securities	381,834	282,935
Securities available for sale	734,705	608,088
Mortgage banking derivative	1,182	198
Interest rate swap derivative	21,764	7,263
Total assets	757,651	615,549
Liabilities
Mortgage banking derivative	111	14
Interest rate swap derivative	21,794	7,860
Total liabilities	21,905	7,874
Level 3 \| Fair Value, Measurements, Recurring [Member]
Assets
U.S. government sponsored agency securities	0
Mortgage-backed securities: residential	0	0
Mortgage-backed securities: commercial	0	0
State and municipal securities	140	145
Securities available for sale	140	145
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Total assets	140	145
Liabilities
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Total liabilities	$ 0	$ 0

FAIR VALUE - Valuation Methodology and Unobservable Inputs for Level 3 Assets (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) item	Dec. 31, 2019 USD ($) item
Fair Value, Measurements, Nonrecurring [Member]
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Impaired loans \| $	$ 6,765,000	$ 12,121,000
Other Real Estate Owned [Member]
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Impaired loans \| $	316,000	316,000
Commercial and Industrial Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Impaired loans \| $	$ 5,082,000	$ 9,499,000
Valuation Methodology	Collateral based measurements	Collateral based measurements
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions
Commercial and Industrial Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Minimum
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	16	1
Commercial and Industrial Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Maximum
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	100	100
Commercial and Industrial Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Weighted Average
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	55	53
Commercial Real Estate and Multi-family Residential Loans \| Fair Value, Measurements, Nonrecurring [Member]
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Impaired loans \| $	$ 1,211,000	$ 1,493,000
Valuation Methodology	Collateral based measurements	Collateral based measurements
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions
Commercial Real Estate and Multi-family Residential Loans \| Fair Value, Measurements, Nonrecurring [Member] \| Minimum
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	21	7
Commercial Real Estate and Multi-family Residential Loans \| Fair Value, Measurements, Nonrecurring [Member] \| Maximum
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	74	61
Commercial Real Estate and Multi-family Residential Loans \| Fair Value, Measurements, Nonrecurring [Member] \| Weighted Average
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	53	27
Consumer 1-4 Family Mortgage Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Impaired loans \| $	$ 411,000	$ 1,061,000
Valuation Methodology	Collateral based measurements	Collateral based measurements
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions and ultimate collectability
Consumer 1-4 Family Mortgage Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Minimum
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	10	5
Consumer 1-4 Family Mortgage Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Maximum
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	15	100
Consumer 1-4 Family Mortgage Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Weighted Average
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	11	14
Agribusiness and Agricultural \| Fair Value, Measurements, Nonrecurring [Member]
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Impaired loans \| $	$ 61,000	$ 57,000
Valuation Methodology	Collateral based measurements	Collateral based measurements
Unobservable Inputs	Discount to reflect current market conditions and ultimate collectability	Discount to reflect current market conditions and ultimate collectability
Agribusiness and Agricultural \| Fair Value, Measurements, Nonrecurring [Member] \| Weighted Average
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)	58	61
Other Real Estate Owned [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Impaired loans \| $		$ 11,000
Valuation Methodology		Collateral based measurements
Unobservable Inputs		Discount to reflect current market conditions and ultimate collectability
Other Real Estate Owned [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Weighted Average
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items]
Range of Inputs (Average) (in hundredths)		36

FAIR VALUE - Estimated Fair Values And The Related Carrying Values Of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial Assets:
Securities available for sale	$ 734,845	$ 608,233
Carrying Value [Member]
Financial Assets:
Cash and cash equivalents	249,927	99,381
Securities available for sale	734,845	608,233
Real estate mortgages held for sale	11,218	4,527
Loans, net	4,587,748	4,015,176
Mortgage banking derivative	1,182	198
Interest rate swap derivative	21,764	7,263
Federal Reserve and Federal Home Loan Bank stock	13,772	13,772
Accrued interest receivable	18,761	15,391
Financial Liabilities:
Certificates of deposit	(1,024,819)	(1,192,067)
All other deposits	(4,011,986)	(2,941,752)
Miscellaneous borrowings	10,500
Federal Home Loan Bank advances	(75,000)	(170,000)
Mortgage banking derivative	(111)	(14)
Interest rate swap derivative	(21,794)	(7,860)
Standby letters of credit	(686)	(915)
Accrued interest payable	(5,959)	(11,604)
Estimate of Fair Value Measurement
Financial Assets:
Cash and cash equivalents	249,927	99,381
Securities available for sale	734,845	608,233
Real estate mortgages held for sale	11,651	4,614
Loans, net	4,532,639	3,979,006
Mortgage banking derivative	1,182	198
Interest rate swap derivative	21,764	7,263
Accrued interest receivable	18,761	15,391
Financial Liabilities:
Certificates of deposit	(1,033,095)	(1,202,060)
All other deposits	(4,011,986)	(2,941,752)
Miscellaneous borrowings	10,500
Federal Home Loan Bank advances	(68,967)	(169,998)
Mortgage banking derivative	(111)	(14)
Interest rate swap derivative	(21,794)	(7,860)
Standby letters of credit	(686)	(915)
Accrued interest payable	(5,959)	(11,604)
Level 1 \| Estimate of Fair Value Measurement
Financial Assets:
Cash and cash equivalents	247,228	96,603
Securities available for sale	0	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	(4,011,986)	(2,941,752)
Miscellaneous borrowings	0
Federal Home Loan Bank advances	0	0
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Standby letters of credit	0	0
Accrued interest payable	(66)	(102)
Level 2 \| Estimate of Fair Value Measurement
Financial Assets:
Cash and cash equivalents	2,699	2,778
Securities available for sale	734,705	608,088
Real estate mortgages held for sale	11,651	4,614
Loans, net	0	0
Mortgage banking derivative	1,182	198
Interest rate swap derivative	21,764	7,263
Accrued interest receivable	3,801	3,729
Financial Liabilities:
Certificates of deposit	(1,033,095)	(1,202,060)
All other deposits	0	0
Miscellaneous borrowings	10,500
Federal Home Loan Bank advances	(68,967)	(169,998)
Mortgage banking derivative	(111)	(14)
Interest rate swap derivative	(21,794)	(7,860)
Standby letters of credit	0	0
Accrued interest payable	(5,893)	(11,502)
Level 3 \| Estimate of Fair Value Measurement
Financial Assets:
Cash and cash equivalents	0	0
Securities available for sale	140	145
Real estate mortgages held for sale	0	0
Loans, net	4,532,639	3,979,006
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Accrued interest receivable	14,960	11,662
Financial Liabilities:
Certificates of deposit	0	0
All other deposits	0	0
Miscellaneous borrowings	0
Federal Home Loan Bank advances	0	0
Mortgage banking derivative	0	0
Interest rate swap derivative	0	0
Standby letters of credit	(686)	(915)
Accrued interest payable	$ 0	$ 0

FAIR VALUE - Additional Information (Details) - USD ($)	12 Months Ended
FAIR VALUE - Additional Information (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets Pledged As Collateral For Loans Receivable [Line Items]
Mortgage servicing rights	$ 4,200,000
Valuation reserve	715,000	$ 0	$ 0
Amortized cost	3,500,000
Servicing Asset at Fair Value, Amount	$ 4,200,000
Percentage of discount from appraised value (in hundredths)	3.70%
Weighted average maturity of residential mortgages	20 years
Prepayment Speed used in unobservable assumptions	204	118
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Qualitative Information	204	118
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	9.40%	9.40%
Discount rate used to estimate fair value (in hundredths)	9.40%	9.40%
Subtotal	$ 4,657,183,000	$ 4,067,385,000
Valuation allowance	61,408,000	50,652,000	48,453,000	$ 47,121,000
Provision for Loan and Lease Losses	14,770,000	3,235,000	6,400,000
Recoveries	1,239,000	874,000	1,043,000
Loans and Leases Receivable, Gross	4,657,183,000	4,067,385,000
Loans and Leases Receivable, Allowance	61,408,000	50,652,000	$ 48,453,000	$ 47,121,000
Ten Percent Adverse Changes In Psa
Assets Pledged As Collateral For Loans Receivable [Line Items]
Mortgage servicing rights	146,000
Servicing Asset at Fair Value, Amount	146,000
Twenty Percent Adverse Changes In Psa
Assets Pledged As Collateral For Loans Receivable [Line Items]
Mortgage servicing rights	285,000
Servicing Asset at Fair Value, Amount	285,000
Ten Percent Adverse Changes In Discount Rate
Assets Pledged As Collateral For Loans Receivable [Line Items]
Mortgage servicing rights	115,000
Servicing Asset at Fair Value, Amount	115,000
Twenty Percent Adverse Changes In Discount Rate
Assets Pledged As Collateral For Loans Receivable [Line Items]
Mortgage servicing rights	224,000
Servicing Asset at Fair Value, Amount	224,000
Impaired Loans
Assets Pledged As Collateral For Loans Receivable [Line Items]
Subtotal	14,600,000	22,200,000
Valuation allowance	7,800,000	10,100,000
Recoveries	2,300,000	600,000
Loans and Leases Receivable, Gross	14,600,000	22,200,000
Loans and Leases Receivable, Allowance	7,800,000	$ 10,100,000
Minimum
Assets Pledged As Collateral For Loans Receivable [Line Items]
Amount of variance	$ 100,000
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%

LAND, PREMISES AND EQUIPMENT, NET (Summary of Land, Premises And Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
LAND, PREMISES AND EQUIPMENT, NET
Land	$ 12,472	$ 12,511
Premises and improvements	55,682	53,424
Equipment and furniture	38,133	38,691
Total cost	106,287	104,626
Less accumulated depreciation	46,989	44,261
Land, premises and equipment, net	$ 59,298	$ 60,365

LAND, PREMISES AND EQUIPMENT, NET (Additional Information) (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Operating Lease, Weighted Average Remaining Lease Term	8 years 9 months 18 days	0 years
Other Assets [Member]
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment	$ 100,000	$ 100,000

GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) $ in Millions	Dec. 31, 2020 USD ($)
GOODWILL AND OTHER INTANGIBLE ASSETS
Carrying amount of goodwill	$ 5.0

DEPOSITS - Summary of Certain Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Non-interest bearing demand deposits	$ 1,538,331	$ 983,307
Savings and transaction accounts:
Savings deposits	312,702	234,508
Interest bearing demand deposits	3,498,474	3,150,512
Time deposits:
Other time deposits	239,582	281,934
Deposits of $100,000 to $250,000	271,337	291,805
Deposits of $250,000 or more	513,900	618,328
Total deposits	5,036,805	4,133,819
Demand Deposits [Member]
Savings and transaction accounts:
Interest bearing demand deposits	$ 2,160,953	$ 1,723,937

DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2020 USD ($)
DEPOSITS
Maturing in 2021	$ 757,059
Maturing in 2022	195,703
Maturing in 2023	27,767
Maturing in 2024	34,086
Maturing in 2025	9,294
Thereafter	910
Total time deposits	$ 1,024,819

DEPOSITS - Additional information (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
DEPOSITS
Total amount available to the Bank	$ 100.0	$ 200.0
Total amount drawn	$ 10.1	$ 75.1

BORROWINGS - Short-Term Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Short-term Debt [Line Items]
Other Short-term Borrowings	$ 75,000	$ 170,000
Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020
Short-term Debt [Line Items]
Other Short-term Borrowings	0	170,000
Federal Home Loan Bank of Indianapolis Putable Advance, 0.39%, Due March 4, 2030
Short-term Debt [Line Items]
Other Short-term Borrowings	$ 75,000	$ 0

BORROWINGS - Short-Term Borrowings (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2020
Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	1.61%
Federal Home Loan Bank Advances Branch Of Fhlb Bank Due Dates	Jan. 07, 2019
Federal Home Loan Bank of Indianapolis Putable Advance, 0.39%, Due March 4, 2030
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	0.39%
Federal Home Loan Bank Advances Branch Of Fhlb Bank Due Dates	Jun. 27, 2018

BORROWINGS - Securities Sold with Agreements to Repurchase (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Abstract]
Securities Sold under Agreements to Repurchase		$ 75,555
Approximate average interest rate at year end		0.74%
Highest amount outstanding as of any month end during the year	$ 72,814	$ 106,239
Approximate average outstanding during the year	$ 15,104	$ 86,874
Approximate average interest rate during the year	0.86%	0.58%

BORROWINGS - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Aug. 02, 2019
Debt Instrument [Line Items]
Residential real estate loans and securities pledged as collateral for FHLB advances, carrying value	$ 451,900	$ 453,200
FHLB Stock owned	10,400	10,400
FHLB borrowing capacity, authorized	800,000
Line of Credit Facility, Current Borrowing Capacity	317,300
Commercial loans pledged as collateral for Federal Reserve Discount Window, carrying value	557,200	446,900
Federal Reserve borrowing capacity	490,400	339,500
Line of Credit Facility, Remaining Borrowing Capacity	350,000	325,000
Outstanding borrowings	10,500
American Financial Exchange [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	394,000	244,000
Unsecured revolving credit agreement
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 30,000
Outstanding borrowings	$ 10,500	$ 0

SUBORDINATED DEBENTURES - Additional Information (Details) - USD ($)		9 Months Ended	12 Months Ended
	Dec. 31, 2019	Oct. 01, 2003	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Subordinated Debentures Disclosure [Abstract]
Proceeds from Issuance of Trust Preferred Securities		$ 30,000,000.0
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed				100.00%
Debt Instrument, Redemption Price, Percentage				100.00%
Payments for Repurchase of Trust Preferred Securities				$ 30,000,000.0
Payments for redemption of common securities	$ 928,000		$ 10,547,000	$ 515,000	$ 463,000
Proceeds From Issuance Of Subordinated Debentures		$ 30,900,000
Integral multiple subordinated debentures may be redeemed in			$ 1,000
Percentage of principal amount subordinated debentures may be redeemed at	100.00%		100.00%	100.00%

PENSION AND OTHER POSTRETIREMENT PLANS - Components of net periodic benefit cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net pension expense:
Net (gain)/loss	$ 105	$ 409	$ (269)
Pension Benefits
Net pension expense:
Service cost	0	0	0
Interest cost	75	87	93
Expected return on plan assets	(140)	(137)	(138)
Recognized net actuarial (gain) loss	171	132	193
Settlement cost	115	0	224
Net pension expense (benefit)	221	82	372
Net (gain)/loss	69	353	(296)
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax	119	303	(117)
Amortization of net loss	(171)	(132)	(193)
Total recognized in other comprehensive income	(102)	221	(489)
SERP Benefits
Net pension expense:
Service cost	0	0	0
Interest cost	27	37	34
Expected return on plan assets	(51)	(55)	(61)
Recognized net actuarial (gain) loss	80	73	73
Settlement cost	0	0	0
Net pension expense (benefit)	56	55	46
Net (gain)/loss	36	56	27
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax	12	38	0
Amortization of net loss	(80)	(73)	(73)
Total recognized in other comprehensive income	$ (44)	$ (17)	$ (46)

PENSION AND OTHER POSTRETIREMENT PLANS (Components of net periodic benefit cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension Benefits
Change in benefit obligation:
Beginning benefit obligation	$ 2,715	$ 2,118
Interest cost	75	87	$ 93
Actuarial (gain)/loss	276	631
Benefits paid	(356)	(121)
Ending benefit obligation	2,710	2,715	2,118
Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets	2,472	2,151
Actual return	233	415
Employer contribution		27
Benefits paid	(356)	(121)
Ending plan assets	2,349	2,472	2,151
Funded status at end of year	(361)	(243)
SERP Benefits
Change in benefit obligation:
Beginning benefit obligation	991	924
Interest cost	27	37	34
Actuarial (gain)/loss	84	164
Benefits paid	(134)	(134)
Ending benefit obligation	968	991	924
Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value:
Beginning plan assets	914	885
Actual return	99	163
Benefits paid	(134)	(134)
Ending plan assets	879	914	$ 885
Funded status at end of year	$ (89)	$ (77)

PENSION AND OTHER POSTRETIREMENT PLANS - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity Securities
Defined Benefit Plan Disclosure
Defined Benefit Plans Target Allocation Percentage	60.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	8.85%
Debt Securities
Defined Benefit Plan Disclosure
Defined Benefit Plans Target Allocation Percentage	40.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	3.00%
Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Accumulated Benefit Obligation		$ 2,700,000
Assets for Plan Benefits, Defined Benefit Plan	$ 2,346,000	$ 2,470,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	6.50%	6.50%	6.50%
Defined Benefit Plan, Expected Amortization, Next Fiscal Year	$ 160,000
Defined Benefit Plan, Plan Assets, Contributions by Employer		$ 27,000
Pension Benefits \| Equity Securities
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	8.85%
Pension Benefits \| Debt Securities
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	3.00%
SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Accumulated Benefit Obligation	$ 1,000,000.0
Assets for Plan Benefits, Defined Benefit Plan	$ 878,000	$ 913,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	6.50%	6.50%	6.50%
Defined Benefit Plan, Expected Amortization, Next Fiscal Year	$ 82,000
SERP Benefits \| Equity Securities
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	8.85%
SERP Benefits \| Debt Securities
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	3.00%

PENSION AND OTHER POSTRETIREMENT PLANS (Schedule of Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Pension Benefits
Defined Benefit Plan Disclosure
Funded status included in other liabilities	$ (361)	$ (243)
SERP Benefits
Defined Benefit Plan Disclosure
Funded status included in other liabilities	$ (89)	$ (77)

PENSION AND OTHER POSTRETIREMENT PLANS (Amounts Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure
Net actuarial loss	$ (110)	$ 153	$ (372)
Pension Benefits
Defined Benefit Plan Disclosure
Net actuarial loss	1,362	1,464
SERP Benefits
Defined Benefit Plan Disclosure
Net actuarial loss	$ 553	$ 597

PENSION AND OTHER POSTRETIREMENT PLANS (Schedule of Assumptions Used in Calculating the Net Benefit Obligation) (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pension Benefits
Defined Benefit Plan Disclosure
Net benefit obligation, Weighted average discount rate	2.08%	2.98%	4.08%
Lump sum assumed interest rates for First 5 years	0.53%	2.01%	3.33%
Lump sum assumed interest rates for Next 15 years	2.31%	3.06%	4.39%
Lump sum assumed interest rates for All future years	3.09%	3.65%	4.72%
Net pension expense, Weighted average discount rate	2.98%	4.08%	3.46%
Expected long-term rate of return	6.50%	6.50%	6.50%
SERP Benefits
Defined Benefit Plan Disclosure
Net benefit obligation, Weighted average discount rate	2.08%	2.98%	4.08%
Net pension expense, Weighted average discount rate	2.98%	4.08%	3.46%
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, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity Securities
Defined Benefit Plan Disclosure
Target Allocation	60.00%
Weighted Average Expected Long-Term Rate of Return	8.85%
Debt Securities
Defined Benefit Plan Disclosure
Target Allocation	40.00%
Weighted Average Expected Long-Term Rate of Return	3.00%
Pension Benefits
Defined Benefit Plan Disclosure
Percentage of Plan Assets	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
Percentage of Plan Assets	65.00%	61.00%
Weighted Average Expected Long-Term Rate of Return	8.85%
Pension Benefits \| Equity Securities \| Minimum
Defined Benefit Plan Disclosure
Target Allocation	55.00%
Pension Benefits \| Equity Securities \| Maximum
Defined Benefit Plan Disclosure
Target Allocation	65.00%
Pension Benefits \| Debt Securities
Defined Benefit Plan Disclosure
Percentage of Plan Assets	31.00%	36.00%
Weighted Average Expected Long-Term Rate of Return	3.00%
Pension Benefits \| Debt Securities \| Minimum
Defined Benefit Plan Disclosure
Target Allocation	35.00%
Pension Benefits \| Debt Securities \| Maximum
Defined Benefit Plan Disclosure
Target Allocation	45.00%
Pension Benefits \| Other Debt Obligations [Member]
Defined Benefit Plan Disclosure
Percentage of Plan Assets	4.00%	3.00%
Weighted Average Expected Long-Term Rate of Return	0.10%
Pension Benefits \| Other Debt Obligations [Member] \| Minimum
Defined Benefit Plan Disclosure
Target Allocation	5.00%
Pension Benefits \| Other Debt Obligations [Member] \| Maximum
Defined Benefit Plan Disclosure
Target Allocation	10.00%
SERP Benefits
Defined Benefit Plan Disclosure
Percentage of Plan Assets	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
Percentage of Plan Assets	64.00%	65.00%
Weighted Average Expected Long-Term Rate of Return	8.85%
SERP Benefits \| Equity Securities \| Minimum
Defined Benefit Plan Disclosure
Target Allocation	55.00%
SERP Benefits \| Equity Securities \| Maximum
Defined Benefit Plan Disclosure
Target Allocation	65.00%
SERP Benefits \| Debt Securities
Defined Benefit Plan Disclosure
Percentage of Plan Assets	34.00%	34.00%
Weighted Average Expected Long-Term Rate of Return	3.00%
SERP Benefits \| Debt Securities \| Minimum
Defined Benefit Plan Disclosure
Target Allocation	35.00%
SERP Benefits \| Debt Securities \| Maximum
Defined Benefit Plan Disclosure
Target Allocation	45.00%
SERP Benefits \| Other Debt Obligations [Member]
Defined Benefit Plan Disclosure
Percentage of Plan Assets	2.00%	1.00%
Weighted Average Expected Long-Term Rate of Return	0.10%
SERP Benefits \| Other Debt Obligations [Member] \| Minimum
Defined Benefit Plan Disclosure
Target Allocation	5.00%
SERP Benefits \| Other Debt Obligations [Member] \| Maximum
Defined Benefit Plan Disclosure
Target Allocation	10.00%

PENSION AND OTHER POSTRETIREMENT PLANS (Schedule of Expected Benefit Payments) (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Pension Benefits
2021	$ 212
2022	205
2023	214
2024	192
2025	196
2026-2030	839
SERP Benefits
2021	131
2022	125
2023	117
2024	109
2025	99
2026-2030	$ 329

OTHER BENEFIT PLANS (Additional Information) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary of Other Benefit Plan [Line Items]
Potential Cash Payments Under Employment Agreements	$ 5,200,000
Directors' Deferred Compensation and Cash Plans [Member]
Summary of Other Benefit Plan [Line Items]
Deferred Compensation Liability	4,800,000	$ 4,400,000
Deferred Compensation Arrangement with Individual, Compensation Expense	505,000	515,000	$ 486,000
Other Employee Benefit Plans [Member]
Summary of Other Benefit Plan [Line Items]
Deferred Compensation Expense	1,000,000.0	461,000	(31,000)
Deferred Compensation Liability	5,700,000	4,200,000
Retirement Benefits Plan 401k [Member]
Summary of Other Benefit Plan [Line Items]
Deferred Compensation Expense	$ 1,900,000	$ 1,800,000	$ 1,800,000
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	6.00%

INCOME TAXES - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INCOME TAXES
Current federal									$ 20,032	$ 19,430	$ 16,871
Deferred federal									(1,688)	(408)	707
Revalue deferred taxes due to tax reform											(408)
Current state									1,484	1,394	1,462
Deferred state									(289)	(78)	(99)
Total income tax expense	$ 6,071	$ 5,377	$ 4,448	$ 3,643	$ 5,431	$ 5,119	$ 5,409	$ 4,379	$ 19,539	$ 20,338	$ 18,533

- Definition

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

+ References + Details

INCOME TAXES - Computation of Differences Between Financial Statement Tax Expense And Amounts (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INCOME TAXES
Income taxes at statutory federal rate of 21%									$ 21,814,000	$ 22,551,000	$ 20,778,000
Increase (decrease) in taxes resulting from:
Tax exempt income									(1,925,000)	(1,682,000)	(1,434,000)
Nondeductible expense									117,000	194,000	165,000
State income tax, net of federal tax effect									944,000	1,040,000	1,077,000
Captive insurance premium income									(227,000)	(310,000)	(292,000)
Tax credits									(540,000)	(548,000)	(412,000)
Bank owned life insurance									(595,000)	(573,000)	(303,000)
Long - term incentive plan									(58,000)	(421,000)	(641,000)
Revaluation deferred tax asset at 21% rate											(408,000)
Other									9,000	87,000	3,000
Total income tax expense	$ 6,071,000	$ 5,377,000	$ 4,448,000	$ 3,643,000	$ 5,431,000	$ 5,119,000	$ 5,409,000	$ 4,379,000	$ 19,539,000	$ 20,338,000	$ 18,533,000

INCOME TAXES - Summary of Net Deferred Tax Asset And Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Bad debts	$ 15,634	$ 12,945
Pension and deferred compensation liability	2,006	1,505
Nonaccrual loan interest	892	1,104
Long-term incentive plan	1,212	2,281
Lease liability	1,190	1,303
Other	745	510
Deferred Tax Assets, Gross	21,679	19,648
Deferred tax liabilities:
Depreciation	4,718	4,741
Loan servicing rights	1,162	1,019
State taxes	524	464
Intangible assets	1,265	1,270
REIT spillover dividend	1,180	1,401
Prepaid expenses	948	795
Lease Right of use	1,190	1,303
Other	442	382
Deferred Tax Liabilities, Gross	11,429	11,375
Valuation allowance	0	0
Net deferred tax asset	$ 10,250	$ 8,273

INCOME TAXES - Additional Information (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INCOME TAXES
Income tax expense	$ 6,071,000	$ 5,377,000	$ 4,448,000	$ 3,643,000	$ 5,431,000	$ 5,119,000	$ 5,409,000	$ 4,379,000	$ 19,539,000	$ 20,338,000	$ 18,533,000
Statutory percentage rate of provision									21.00%	21.00%	21.00%
Deferred Tax Assets Unrealized Gain Losses On Available for Sale Securities Gross	(7,800,000)				(3,600,000)				$ (7,800,000)	$ (3,600,000)
Deferred Tax Liabilities Allocated To Benefit Plan	$ 476,000				$ 512,000				$ 476,000	$ 512,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount											$ (408,000)

- Definition

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

+ References + Details

RELATED PARTY TRANSACTIONS (Summary of Loans To Related Party) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Beginning balance	$ 83,980	$ 83,546
New loans and advances	120,049	55,465
Effect of changes in related parties	1,650	(5,967)
Repayments and renewals	(100,985)	(49,064)
Ending balance	$ 104,694	$ 83,980

RELATED PARTY TRANSACTIONS (Additional Information) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Due to Related Parties	$ 36.8	$ 33.3

STOCK BASED COMPENSATION - Summary of Stock Awards Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
STOCK BASED COMPENSATION
Total intrinsic value		$ 0	$ 243
Cash received		0	118
Actual tax benefit realized for tax deductions	$ 0	$ 0	$ 0

STOCK BASED COMPENSATION - Summary Of Changes In Company's Nonvested Shares (Details)	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Restricted Stock Units (RSUs) [Member]
Shares
Shares Nonvested, beginning balance \| shares	3,500
Granted \| shares	17,100
Vested \| shares	(15,600)
Shares Nonvested, ending balance \| shares	5,000
Weighted-Average Grant-Date Fair Value
Weighted-Average Grant-Date Fair Value, beginning balance \| $ / shares	$ 45.70
Granted \| $ / shares	46.13
Vested \| $ / shares	46.32
Weighted-Average Grant-Date Fair Value, ending balance \| $ / shares	$ 45.22
Performance Stock Units [Member]
Shares
Shares Nonvested, beginning balance \| shares	277,085
Granted \| shares	7,053
Vested \| shares	(120,204)
Forfeited \| shares	(6,419)
Shares Nonvested, ending balance \| shares	157,515
Weighted-Average Grant-Date Fair Value
Weighted-Average Grant-Date Fair Value, beginning balance \| $ / shares	$ 44.86
Granted \| $ / shares	44.73
Vested \| $ / shares	44.91
Forfeited \| $ / shares	43.98
Weighted-Average Grant-Date Fair Value, ending balance \| $ / shares	$ 44.85

STOCK BASED COMPENSATION - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Apr. 12, 2017	Apr. 09, 2013	Apr. 08, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation, Shares Authorized Under Equity Incentive Plans						1,125,000
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 1,800,000	$ 4,200,000	$ 5,600,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 461,000	$ 1,100,000	$ 1,500,000
Number of stock option grants	0	0	0
Modifications of stock option	0	0	0
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	590,460
2013 Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant					435,867
2017 Plan Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation, Shares Authorized Under Equity Incentive Plans				1,000,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options	$ 56,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	11 months 23 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value	$ 723,000	$ 737,000	$ 726,000,000,000
Vested	15,600
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options	$ 2,300,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	1 year 10 months 9 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value	$ 5,700,000	$ 5,700,000	$ 6,600,000
Vested	120,204	126,672	137,472

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Summary Of Capital Adequacy Requirements (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Consolidated Entities [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets), Actual Amount	$ 682,778	$ 631,723
Total Capital (to Risk Weighted Assets), Actual Ratio	14.65	14.36
Tier I Capital (to Risk Weighted Assets), Actual Amount	$ 624,381	$ 580,982
Tier I Capital (to Risk Weighted Assets), Actual Ratio	13.39	13.21
Common Equity Tier 1 (CET1), Actual Amount	$ 624,381	$ 580,982
Common Equity Tier 1 (CET1), Actual Ratio	13.39%	13.21%
Tier I Capital (to Average Assets), Actual Amount	$ 624,381	$ 580,982
Tier I Capital (to Average Assets), Actual Ratio	10.93	11.67
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 372,921	$ 351,894
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	8.00	8.00
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 279,691	$ 263,921
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	6.00	6.00
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Amount	$ 209,768	$ 197,941
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	$ 228,406	$ 199,099
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Ratio	4.00	4.00
Excess Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 489,459	$ 461,862
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	396,229	373,887
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	326,306	307,908
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	228,406	199,099
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets), Actual Amount	$ 678,034	$ 616,386
Total Capital (to Risk Weighted Assets), Actual Ratio	14.56	14.04
Tier I Capital (to Risk Weighted Assets), Actual Amount	$ 619,693	$ 565,645
Tier I Capital (to Risk Weighted Assets), Actual Ratio	13.31	12.88
Common Equity Tier 1 (CET1), Actual Amount	$ 619,693	$ 565,645
Common Equity Tier 1 (CET1), Actual Ratio	13.31%	12.88%
Tier I Capital (to Average Assets), Actual Amount	$ 619,693	$ 565,645
Tier I Capital (to Average Assets), Actual Ratio	10.88	11.43
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 372,560	$ 351,227
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	8.00	8.00
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount	$ 279,420	$ 263,420
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio	6.00	6.00
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Amount	$ 209,565	$ 197,565
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	$ 227,900	$ 197,923
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Ratio	4.00	4.00
Excess Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 488,985	$ 460,985
Excess Capital to Risk Weighted Assets, For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio	10.50	10.50
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 395,845	$ 373,179
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio	8.50	8.50
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount	$ 325,990	$ 307,324
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	$ 227,900	$ 197,923
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio	4.00	4.00
Total Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 465,700	$ 439,034
Total Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	10.00	10.00
Tier I Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 372,560	$ 351,227
Tier I Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	8.00	8.00
Common Equity Tier 1 (CET1), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 302,705	$ 285,372
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	$ 284,875	$ 247,404
Tier I Capital (to Average Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	5.00	5.00

CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)
Capital Requirements and Restrictions On Retained Earnings [Abstract]
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments	$ 86.4
Description of Regulatory Requirements, Capital Adequacy Purposes	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 0.000% for 2015 to 2.50% by 2019. The capital conservation buffer for 2020 and 2019 was 2.50%. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital

OFFSETTING ASSETS AND LIABILITIES - Schedule of Offsetting of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Gross Amounts of Recognized Assets	$ 21,764	$ 7,263
Gross Amounts Offset in the Statement of Financial Position		0
Net Amounts of Assets presented in the Statement of Financial Position	21,764	7,263
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position		0
Net Amount	21,764	7,263
Liabilities
Gross Amounts of Recognized Liabilities	21,794	7,860
Gross Amounts Offset in the Statement of Financial Position		0
Net Amounts of Liabilities presented in the Statement of Financial Position	21,794	7,860
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position	(21,370)	(7,560)
Net Amount	424	300
Interest Rate Swap [Member]
Assets
Gross Amounts of Recognized Assets	21,764	7,263
Gross Amounts Offset in the Statement of Financial Position		0
Net Amounts of Assets presented in the Statement of Financial Position	21,764	7,263
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position		0
Net Amount	21,764	7,263
Liabilities
Gross Amounts of Recognized Liabilities	21,794	7,860
Gross Amounts Offset in the Statement of Financial Position		0
Net Amounts of Liabilities presented in the Statement of Financial Position	21,794	7,860
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position	(21,370)	(7,560)
Net Amount	$ 424	$ 300

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, 2020	Dec. 31, 2019
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	$ 65,319	$ 44,210
Variable Rate	1,994,755	1,790,941
Commercial loan
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	52,568	39,104
Variable Rate	1,646,539	1,451,704
Standby letters of credit
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	0	0
Variable Rate	53,796	70,932
Real estate mortgage loans
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	11,984	4,448
Variable Rate	3,921	1,488
Real estate construction mortgage loans
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	767	478
Variable Rate	3,051	2,139
Home equity mortgage open-ended revolving lines
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	0	0
Variable Rate	267,530	247,562
Consumer loan open-ended revolving lines
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	0	180
Variable Rate	$ 19,918	$ 17,116

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES - Interest Rate Ranges On Commitments And Open Ended Revolving Lines Of Credit (Details)	Dec. 31, 2020	Dec. 31, 2019
Commercial loan \| Minimum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	1.00%	0.75%
Variable Rate	1.16%	2.65%
Commercial loan \| Maximum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	14.50%	14.50%
Variable Rate	9.25%	9.25%
Real estate mortgage loans \| Minimum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	2.63%	3.13%
Variable Rate	3.00%	3.75%
Real estate mortgage loans \| Maximum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	3.75%	4.00%
Variable Rate	5.75%	4.25%
Consumer loan open-ended revolving lines
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Fixed Rate	15.00%	15.00%
Consumer loan open-ended revolving lines \| Minimum
Commitments Off-Balance Sheet Risks and Contingencies [Line Items]
Variable Rate	3.00%	3.88%
Consumer loan open-ended revolving lines \| 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, 2020	Dec. 31, 2019
ASSETS
Other assets	$ 54,669	$ 41,082
Total assets	5,830,435	4,946,745
LIABILITIES
STOCKHOLDERS' EQUITY	657,095	598,011
Total liabilities and equity	5,830,435	4,946,745
Parent Company \| Reportable Legal Entities
ASSETS
Deposits with Lake City Bank	568	1,762
Deposits with other depository institutions	2,433	2,104
Cash	3,001	3,866
Investments in banking subsidiary	652,407	582,674
Investments in other subsidiaries	3,043	3,276
Other assets	9,455	8,457
Total assets	667,906	598,273
LIABILITIES
Dividends payable and other liabilities	311	262
Borrowings	10,500
STOCKHOLDERS' EQUITY	657,095	598,011
Total liabilities and equity	$ 667,906	$ 598,273

PARENT COMPANY STATEMENTS - CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Other income									$ 3,564	$ 2,857	$ 2,098
Interest expense on subordinated debt	$ (5,141)	$ (6,066)	$ (7,303)	$ (11,585)	$ (13,430)	$ (15,224)	$ (16,224)	$ (15,285)	(30,095)	(60,163)	(47,699)
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES									103,876	107,385	98,944
Income tax benefit	(6,071)	(5,377)	(4,448)	(3,643)	(5,431)	(5,119)	(5,409)	(4,379)	(19,539)	(20,338)	(18,533)
NET INCOME	$ 24,592	$ 22,776	$ 19,670	$ 17,299	$ 22,198	$ 21,454	$ 21,713	$ 21,682	84,337	87,047	80,411
COMPREHENSIVE INCOME									100,022	105,297	75,131
Reportable Legal Entities \| Parent Company
Condensed Financial Statements, Captions [Line Items]
Other income										155	171
Interest expense on subordinated debt										(1,720)	(1,643)
Miscellaneous expense									(3,935)	(5,321)	(6,422)
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES									29,444	52,258	21,049
Income tax benefit									1,065	2,256	2,795
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES									30,509	54,514	23,844
Equity in undistributed income of subsidiaries									53,828	32,533	56,567
NET INCOME									84,337	87,047	80,411
COMPREHENSIVE INCOME									100,022	105,297	75,131
Reportable Legal Entities \| Parent Company \| Lake City Bank
Condensed Financial Statements, Captions [Line Items]
Dividends from Lake City Bank, Lakeland Statutory Trust II									32,079	57,842	27,933
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	$ 1,302	$ 1,010

PARENT COMPANY STATEMENTS - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($)		3 Months Ended								12 Months Ended
	Dec. 31, 2019	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income		$ 24,592,000	$ 22,776,000	$ 19,670,000	$ 17,299,000	$ 22,198,000	$ 21,454,000	$ 21,713,000	$ 21,682,000	$ 84,337,000	$ 87,047,000	$ 80,411,000
Adjustments to net cash from operating activities:
Net cash from operating activities										87,228,000	100,039,000	104,975,000
Cash flows from financing activities:
Purchase of treasury stock	$ (928,000)									(10,547,000)	(515,000)	(463,000)
Sales of treasury stock										119,000	118,000	115,000
Net cash from financing activities										775,342,000	(48,887,000)	102,209,000
Net increase (decrease) in cash and cash equivalents										150,546,000	(117,541,000)	40,742,000
Cash and cash equivalents at beginning of the year					99,381,000				216,922,000	99,381,000	216,922,000	176,180,000
Cash and cash equivalents at end of the year	99,381,000	249,927,000				99,381,000				249,927,000	99,381,000	216,922,000
Reportable Legal Entities \| Parent Company
Cash flows from operating activities:
Net income										84,337,000	87,047,000	80,411,000
Adjustments to net cash from operating activities:
Equity in undistributed income of subsidiaries										(53,828,000)	(32,533,000)	(56,567,000)
Other changes										1,257,000	3,529,000	7,294,000
Net cash from operating activities										31,766,000	58,043,000	31,138,000
Cash flows from financing activities:
Repayment of long-term debt											(30,928,000)
Proceeds from short-term borrowings										10,500,000
Payments related to equity incentive plans										(2,137,000)	(2,109,000)	(2,435,000)
Purchase of treasury stock										(10,547,000)	(515,000)	(463,000)
Sales of treasury stock										119,000	118,000	115,000
Dividends paid										(30,566,000)	(29,639,000)	(25,278,000)
Net cash from financing activities										(32,631,000)	(63,073,000)	(28,061,000)
Net increase (decrease) in cash and cash equivalents										(865,000)	(5,030,000)	3,077,000
Cash and cash equivalents at beginning of the year					$ 3,866,000				$ 8,896,000	3,866,000	8,896,000	5,819,000
Cash and cash equivalents at end of the year	$ 3,866,000	$ 3,001,000				$ 3,866,000				$ 3,001,000	$ 3,866,000	$ 8,896,000

EARNINGS PER SHARE - Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
EARNINGS PER SHARE
Net income	$ 24,592	$ 22,776	$ 19,670	$ 17,299	$ 22,198	$ 21,454	$ 21,713	$ 21,682	$ 84,337	$ 87,047	$ 80,411
Weighted-average common shares outstanding									25,469,242	25,588,404	25,288,533
Basic earnings per common share	$ 0.97	$ 0.89	$ 0.77	$ 0.68	$ 0.86	$ 0.84	$ 0.85	$ 0.85	$ 3.31	$ 3.40	$ 3.18
Diluted earnings per common share:
Net income	$ 24,592	$ 22,776	$ 19,670	$ 17,299	$ 22,198	$ 21,454	$ 21,713	$ 21,682	$ 84,337	$ 87,047	$ 80,411
BASIC WEIGHTED AVERAGE COMMON SHARES									25,469,242	25,588,404	25,288,533
Add: Dilutive effect of assumed exercise of warrant											225,831
Add: Dilutive effect of assumed exercises of stock options and awards									104,699	170,489	213,467
Average shares and dilutive potential common shares									25,573,941	25,758,893	25,727,831
Diluted earnings per common share	$ 0.97	$ 0.89	$ 0.77	$ 0.67	$ 0.86	$ 0.83	$ 0.85	$ 0.84	$ 3.30	$ 3.38	$ 3.13

- 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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+ Details

- Definition

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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- Definition

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

+ References

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+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Changes in Accumulated Other Comprehensive Income By Component) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized Gains and Losses on Available- for-Sales Securities, Opening Balance	$ 13,607	$ (4,796)
Unrealized Gains and Losses on Available- for-Sales Securities, Other comprehensive income ( loss ) before reclassification	15,917	18,515
Unrealized Gains and Losses on Available- for-Sales Securities, Amounts reclassified from accumulated other comprehensive income (loss)	(342)	(112)
Unrealized Gains and Losses on Available- for-Sales Securities, Net current period other comprehensive income (loss)	15,575	18,403
Unrealized Gains and Losses on Available- for-Sales Securities, Ending Balance	29,182	13,607	$ (4,796)
Defined Benefit Pension Items, Opening Balance	(1,548)	(1,395)
Defined Benefit Pension Items, Other comprehensive income before reclassification	(78)	(306)
Defined Benefit Pension Items, Amounts reclassified from accumulated other comprehensive income (loss)	188	153
Net of tax amount	110	(153)	372
Defined Benefit Pension Items, Ending Balance	(1,438)	(1,548)	(1,395)
Total, Opening Balance	12,059	(6,191)
Total, Other comprehensive income (loss) before reclassification	15,839	18,209
Total, Amounts reclassified from accumulated other comprehensive income (loss)	(154)	41
Total other comprehensive income (loss), net of tax	15,685	18,250	(5,280)
Total, Ending Balance	$ 27,744	$ 12,059	$ (6,191)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification Adjustment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Unrealized gains and losses on available-for-sale securities
Net securities gains (losses)	$ 433	$ 142	$ (50)
Income tax expense	(91)	(30)	11
Net of tax	342	112	(39)
Amortization of defined benefit pension items
Salaries and employee benefits	(251)	(205)	(266)
Income tax expense	63	52	69
Net of tax	(188)	(153)	(197)
Total reclassifications of Net income for the period	$ 154	$ (41)	$ (236)

SELECTED QUARTERLY DATA (UNAUDITED) (Summary Of Selected Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SELECTED QUARTERLY DATA (UNAUDITED
Interest income	$ 49,854	$ 45,979	$ 46,831	$ 50,439	$ 52,312	$ 54,769	$ 54,635	$ 53,494	$ 193,103	$ 215,210	$ 198,970
Interest expense	5,141	6,066	7,303	11,585	13,430	15,224	16,224	15,285	30,095	60,163	47,699
Net interest income	44,713	39,913	39,528	38,854	38,882	39,545	38,411	38,209	163,008	155,047	151,271
Provision for loan losses	920	1,750	5,500	6,600	250	1,000	785	1,200	14,770	3,235	6,400
Net interest income after provision	43,793	38,163	34,028	32,254	38,632	38,545	37,626	37,009	148,238	151,812	144,871
Noninterest income	11,782	13,115	11,169	10,777	11,119	10,765	11,588	11,525
Noninterest expense	24,912	23,125	21,079	22,089	22,122	22,737	22,092	22,473	91,205	89,424	86,229
Income tax expense	6,071	5,377	4,448	3,643	5,431	5,119	5,409	4,379	19,539	20,338	18,533
Net income	$ 24,592	$ 22,776	$ 19,670	$ 17,299	$ 22,198	$ 21,454	$ 21,713	$ 21,682	$ 84,337	$ 87,047	$ 80,411
Basic earnings per common share	$ 0.97	$ 0.89	$ 0.77	$ 0.68	$ 0.86	$ 0.84	$ 0.85	$ 0.85	$ 3.31	$ 3.40	$ 3.18
Diluted earnings per common share	$ 0.97	$ 0.89	$ 0.77	$ 0.67	$ 0.86	$ 0.83	$ 0.85	$ 0.84	$ 3.30	$ 3.38	$ 3.13

WARRANT (Details) - USD ($)		1 Months Ended		12 Months Ended
WARRANT (Details) - USD ($)	Feb. 04, 2019	Nov. 18, 2009	Feb. 27, 2009	Dec. 31, 2018	Feb. 27, 2019	Feb. 08, 2019
Summary of Warrants [Line Items]
Share Price			$ 17.45
Fair Value Assumptions, Exercise Price			$ 21.20
Fair Value Assumptions, Risk Free Interest Rate			3.02%
Fair Value Assumptions, Expected Term			10 years
Fair Value Assumptions, Expected Dividend Rate			4.5759%
Fair Value Assumptions, Expected Volatility Rate			41.8046%
Issue Of Warrant Stock Purchase			396,538
Issue Of Warrants Aggregate Purchase Price Of Stock			$ 56,044,000
Warrant Period			10 years
Warrant Exercise Price Per Share			$ 21.20	$ 13.3503
Warrant Fair Value Per Share	$ 45.74		$ 4.4433
Adjustments In Share Capital Warrants Issue		198,269
Shares Issuable Upon Exercise Of Warrants				314,846
Cost to exercise the Warrant	$ 4,200,000
Number of shares of common stock for warrants	$ 91,894
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	315,961					224,066
Series A Preferred Stock
Summary of Warrants [Line Items]
Preferred Stock, Shares Issued			56,044		56,044

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	12 Months Ended
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
REVENUE RECOGNITION
Wealth advisory fees	$ 7,468	$ 6,835	$ 6,344
Investment brokerage fees	1,670	1,687	1,458
Service charges on deposit accounts
Service charges on commercial deposit acounts	5,798	10,082	10,234
Service charges on retail deposit acounts	851	880	879
Overdrafts, net	2,485	3,585	3,581
Other	976	1,170	1,137
Loan and service fees
Debit card interchange fees	6,707	6,344	5,883
Loan fees	2,366	2,544	2,423
Other	1,012	1,023	985
Merchant and interchange fee income	2,408	2,641	2,461
Bank owned life insurance income	2,105	1,890	1,244
Interest rate swap fee income	5,089	1,691	475
Mortgage banking income	3,911	1,626	1,150
Net securities gains/(losses)	433	142	(50)
Other income	3,564	2,857	2,098
Total noninterest income	$ 46,843	$ 44,997	$ 40,302

REVENUE RECOGNITION (Additional Information) (Details) - USD ($)		3 Months Ended								12 Months Ended
	Jan. 02, 2018	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net Income (Loss) Attributable to Parent		$ 24,592,000	$ 22,776,000	$ 19,670,000	$ 17,299,000	$ 22,198,000	$ 21,454,000	$ 21,713,000	$ 21,682,000	$ 84,337,000	$ 87,047,000	$ 80,411,000
Retained Earnings
Net Income (Loss) Attributable to Parent										$ 84,337,000	$ 87,047,000	$ 80,411,000
Retained Earnings \| Revision of Prior Period, Change in Accounting Principle, Adjustment
Net Income (Loss) Attributable to Parent	$ 24,000

- Definition

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

+ References

+ Details

LEASES - Maturity Analysis (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2021	$ 581
2022	595
2023	606
2024	622
2025	640
2026 and thereafter	2,233
Total undiscounted lease payments	$ 5,277
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities
Less imputed interest	$ (602)
Lease liability	4,675
Right-of-use asset	$ 4,675

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Lease cost
Operating lease cost	$ 536	$ 498
Short-term lease cost	24	24
Total lease cost	$ 560	$ 522

LEASES - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
LEASES
Operating cash outflows from operating leases	$ 536	$ 498
Weighted-average remaining lease term - operating leases	8 years 9 months 18 days	0 years
Weighted average discount rate - operating leases	2.80%	2.80%

COVID-19 AND CURRENT ECONOMIC CONDITIONS (Details) $ in Millions		12 Months Ended
	Jan. 20, 2021 USD ($) borrower	Dec. 31, 2020 USD ($) borrower
Unusual or Infrequent Item, or Both [Line Items]
Financing receivable, loan portfolio, deferrals, COVID-19	$ 102.2	$ 100.7
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower	50	49
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)	2.30%	2.20%
Loans under second deferral action	$ 20.8
Loans under fourth deferral action	$ 26.6
Period of deferral loans	90 days
Number of borrowers \| borrower	14
Commercial real estate
Unusual or Infrequent Item, or Both [Line Items]
Number of borrowers \| borrower	2
Commercial loan
Unusual or Infrequent Item, or Both [Line Items]
Financing receivable, loan portfolio, deferrals, COVID-19	$ 99.7	$ 98.2
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower	24	22
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)	2.40%	2.30%
Loans under first deferral action		$ 11.9
Loans under second deferral action		22.8
Loans under third deferral action	$ 40.2	41.9
Loans under fourth deferral action		24.1
Number of borrowers \| borrower	11
Population percent	89.00%
Consumer loan open-ended revolving lines
Unusual or Infrequent Item, or Both [Line Items]
Financing receivable, loan portfolio, deferrals, COVID-19	$ 2.5	$ 2.5
Financing receivable, loan portfolio, deferrals, COVID-19, borrowers \| borrower	26	27
Financing receivable, loan portfolio, deferrals, COVID-19, percentage of loan portfolio (as a percent)	0.70%	0.70%

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment
Total ending loans balance	$ 4,649,156	$ 4,065,828
Other Commercial Loans
Financing Receivable, Recorded Investment
Total ending loans balance	93,912	112,166
Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		98,366
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	1,784,926	1,426,826
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	626,099	709,983
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	1,158,827	716,843
Commercial Real Estate and Multi-family Residential Loans
Financing Receivable, Recorded Investment
Total ending loans balance	1,892,572	1,670,840
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	361,664	286,534
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	647,574	573,359
Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans
Financing Receivable, Recorded Investment
Total ending loans balance	579,050	570,687
Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans
Financing Receivable, Recorded Investment
Total ending loans balance	304,284	240,260
Agri-business and Agricultural Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	429,662	379,631
Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Financing Receivable, Recorded Investment
Total ending loans balance	195,363	174,389
Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Financing Receivable, Recorded Investment
Total ending loans balance	234,299	205,242
Consumer 1-4 Family Mortgage Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	344,699	377,999
Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines
Financing Receivable, Recorded Investment
Total ending loans balance	11,962	12,922
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	167,501	176,873
Consumer 1-4 Family Mortgage Loans [Member] \| Open End And Junior Lien Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	165,236	188,204
Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	11,962	12,922
Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	103,385
Pass
Financing Receivable, Recorded Investment
Total ending loans balance	3,997,245	3,490,863
Pass \| Other Commercial Loans
Financing Receivable, Recorded Investment
Total ending loans balance	93,912	112,166
Pass \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		27,250
Pass \| Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	535,071	631,728
Pass \| Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	1,111,989	673,370
Pass \| Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	361,664	286,534
Pass \| Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	608,845	535,496
Pass \| Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans
Financing Receivable, Recorded Investment
Total ending loans balance	547,790	569,315
Pass \| Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans
Financing Receivable, Recorded Investment
Total ending loans balance	282,031	240,260
Pass \| Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Financing Receivable, Recorded Investment
Total ending loans balance	183,983	165,005
Pass \| Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Financing Receivable, Recorded Investment
Total ending loans balance	185,875	191,489
Pass \| Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines
Financing Receivable, Recorded Investment
Total ending loans balance	0
Pass \| Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	40,682	47,405
Pass \| Consumer 1-4 Family Mortgage Loans [Member] \| Open End And Junior Lien Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	8,424	10,845
Pass \| Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		0
Pass \| Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	36,979
Special Mention
Financing Receivable, Recorded Investment
Total ending loans balance	251,891	96,608
Special Mention \| Other Commercial Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Special Mention \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		0
Special Mention \| Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	81,095	40,551
Special Mention \| Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	26,523	18,782
Special Mention \| Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Special Mention \| Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	31,355	14,804
Special Mention \| Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans
Financing Receivable, Recorded Investment
Total ending loans balance	31,260	781
Special Mention \| Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans
Financing Receivable, Recorded Investment
Total ending loans balance	22,253	0
Special Mention \| Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Financing Receivable, Recorded Investment
Total ending loans balance	10,728	7,952
Special Mention \| Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Financing Receivable, Recorded Investment
Total ending loans balance	48,424	13,738
Special Mention \| Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines
Financing Receivable, Recorded Investment
Total ending loans balance	0
Special Mention \| Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Special Mention \| Consumer 1-4 Family Mortgage Loans [Member] \| Open End And Junior Lien Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Special Mention \| Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		0
Special Mention \| Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	253
Substandard
Financing Receivable, Recorded Investment
Total ending loans balance	34,264	84,562
Substandard \| Other Commercial Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Substandard \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		17
Substandard \| Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	9,718	37,278
Substandard \| Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	14,820	19,381
Substandard \| Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Substandard \| Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	7,374	23,059
Substandard \| Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	591
Substandard \| Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Substandard \| Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Financing Receivable, Recorded Investment
Total ending loans balance	652	1,432
Substandard \| Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Financing Receivable, Recorded Investment
Total ending loans balance	0	15
Substandard \| Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines
Financing Receivable, Recorded Investment
Total ending loans balance	0
Substandard \| Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	1,695	1,976
Substandard \| Consumer 1-4 Family Mortgage Loans [Member] \| Open End And Junior Lien Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	5	762
Substandard \| Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		51
Substandard \| Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0
Doubtful
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Other Commercial Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		0
Doubtful \| Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines
Financing Receivable, Recorded Investment
Total ending loans balance	0
Doubtful \| Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Consumer 1-4 Family Mortgage Loans [Member] \| Open End And Junior Lien Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Doubtful \| Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		0
Doubtful \| Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0
Not Rated
Financing Receivable, Recorded Investment
Total ending loans balance	365,756	393,795
Not Rated \| Other Commercial Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Not Rated \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		71,099
Not Rated \| Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	215	426
Not Rated \| Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	5,495	5,310
Not Rated \| Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Not Rated \| Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Not Rated \| Commercial Real Estate and Multi-family Residential Loans \| Nonowner Occupied Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Not Rated \| Commercial Real Estate and Multi-family Residential Loans \| Multifamily Loans
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Not Rated \| Agri-business and Agricultural Loans [Member] \| Loans Secured By Farmland
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Not Rated \| Agri-business and Agricultural Loans [Member] \| Loans For Agricultural Production
Financing Receivable, Recorded Investment
Total ending loans balance	0	0
Not Rated \| Consumer 1-4 Family Mortgage Loans [Member] \| Home equity mortgage open-ended revolving lines
Financing Receivable, Recorded Investment
Total ending loans balance	11,962
Not Rated \| Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	125,124	127,492
Not Rated \| Consumer 1-4 Family Mortgage Loans [Member] \| Open End And Junior Lien Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	156,807	176,597
Not Rated \| Consumer 1-4 Family Mortgage Loans [Member] \| Residential Construction and Land Development Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance		$ 12,871
Not Rated \| Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member]
Financing Receivable, Recorded Investment
Total ending loans balance	$ 66,153

FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights, net of valuation allowance	$ 4,200
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	6,765	$ 12,121
Other real estate owned		0
Total assets	6,765	12,121
Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Other real estate owned	0	0
Total assets	0	0
Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Other real estate owned	0	0
Total assets	0	0
Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	6,765	12,121
Other real estate owned	0	0
Total assets	6,765	12,121
Commercial and Industrial Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	5,082	9,499
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	178	3,125
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member] \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member] \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial and Industrial Loans [Member] \| Working Capital Lines of Credit Loans [Member] \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	178	3,125
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	4,904	6,374
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial and Industrial Loans [Member] \| Non-working Capital Loans [Member] \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	4,904	6,374
Commercial Real Estate and Multi-family Residential Loans \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,211	1,493
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		43
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member] \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member] \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Commercial Real Estate and Multi-family Residential Loans \| Construction and Land Development Loans [Member] \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		43
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,211	1,450
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member] \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member] \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial Real Estate and Multi-family Residential Loans \| Owner Occupied Loans [Member] \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,211	1,450
Agribusiness and Agricultural \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	61	57
Agribusiness and Agricultural \| Loans Secured By Farmland \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	61	57
Agribusiness and Agricultural \| Loans Secured By Farmland \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Agribusiness and Agricultural \| Loans Secured By Farmland \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Agribusiness and Agricultural \| Loans Secured By Farmland \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	61	57
Consumer 1-4 Family Mortgage Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	411	1,061
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	411	474
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member] \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member] \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Consumer 1-4 Family Mortgage Loans [Member] \| Closed End First Mortgage Loans [Member] \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 411	474
Consumer 1-4 Family Mortgage Loans [Member] \| Open End and Junior Lien Loans \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		587
Consumer 1-4 Family Mortgage Loans [Member] \| Open End and Junior Lien Loans \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Consumer 1-4 Family Mortgage Loans [Member] \| Open End and Junior Lien Loans \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Consumer 1-4 Family Mortgage Loans [Member] \| Open End and Junior Lien Loans \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		587
Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		11
Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member] \| Level 1 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member] \| Level 2 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Consumer 1-4 Family Mortgage Loans [Member] \| Other Consumer Loans [Member] \| Level 3 \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		$ 11

PENSION AND OTHER POSTRETIREMENT PLANS (Schedule of Fair Values of Pension Plan and Postretirement Plan Assets by Asset Category) (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	$ 2,346,000	$ 2,470,000
SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	878,000	913,000
Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	2,346,000	2,470,000
Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	878,000	913,000
Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Accrued Interest and Dividend Income \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	3,000	2,000
Accrued Interest and Dividend Income \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	1,000	1,000
Equity securities - US mid cap stock mutual funds [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	124,000	115,000
Equity securities - US mid cap stock mutual funds [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	23,000	46,000
Equity securities - US mid cap stock mutual funds [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	124,000	115,000
Equity securities - US mid cap stock mutual funds [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	23,000	46,000
Equity securities - US mid cap stock mutual funds [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US mid cap stock mutual funds [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US mid cap stock mutual funds [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US mid cap stock mutual funds [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US large cap common stocks [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	962,000	912,000
Equity securities - US large cap common stocks [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	360,000	353,000
Equity securities - US large cap common stocks [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	962,000	912,000
Equity securities - US large cap common stocks [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	360,000	353,000
Equity securities - US large cap common stocks [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US large cap common stocks [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US large cap common stocks [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US large cap common stocks [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Cash - money market account [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	93,000	74,000
Cash - money market account [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	16,000	13,000
Cash - money market account [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	93,000	74,000
Cash - money market account [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	16,000	13,000
Cash - money market account [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Cash - money market account [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Cash - money market account [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Cash - money market account [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - short term bond mutual funds [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	205,000	480,000
Debt securities - short term bond mutual funds [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	82,000	155,000
Debt securities - short term bond mutual funds [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	205,000	480,000
Debt securities - short term bond mutual funds [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	82,000	155,000
Debt securities - short term bond mutual funds [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - short term bond mutual funds [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - short term bond mutual funds [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - short term bond mutual funds [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - intermediate term bond mutual funds [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	526,000	402,000
Debt securities - intermediate term bond mutual funds [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	216,000	156,000
Debt securities - intermediate term bond mutual funds [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	526,000	402,000
Debt securities - intermediate term bond mutual funds [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	216,000	156,000
Debt securities - intermediate term bond mutual funds [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - intermediate term bond mutual funds [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - intermediate term bond mutual funds [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Debt securities - intermediate term bond mutual funds [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity Securities - emerging markets stock mutual funds [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	105,000	111,000
Equity Securities - emerging markets stock mutual funds [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	37,000	43,000
Equity Securities - emerging markets stock mutual funds [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	105,000	111,000
Equity Securities - emerging markets stock mutual funds [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	37,000	43,000
Equity Securities - emerging markets stock mutual funds [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity Securities - emerging markets stock mutual funds [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity Securities - emerging markets stock mutual funds [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity Securities - emerging markets stock mutual funds [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - international stock mutual funds [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	202,000	257,000
Equity securities - international stock mutual funds [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	72,000	100,000
Equity securities - international stock mutual funds [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	202,000	257,000
Equity securities - international stock mutual funds [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	72,000	100,000
Equity securities - international stock mutual funds [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - international stock mutual funds [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - international stock mutual funds [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - international stock mutual funds [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US small cap stock mutual funds [Member] \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	129,000	119,000
Equity securities - US small cap stock mutual funds [Member] \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	72,000	47,000
Equity securities - US small cap stock mutual funds [Member] \| Level 1 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	129,000	119,000
Equity securities - US small cap stock mutual funds [Member] \| Level 1 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	72,000	47,000
Equity securities - US small cap stock mutual funds [Member] \| Level 2 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US small cap stock mutual funds [Member] \| Level 2 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US small cap stock mutual funds [Member] \| Level 3 \| Pension Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	0	0
Equity securities - US small cap stock mutual funds [Member] \| Level 3 \| SERP Benefits
Defined Benefit Plan Disclosure
Defined Benefit Plan, Assets for Plan Benefits	$ 0	$ 0