The Company has certain lending policies and procedures in place that are designed to minimize the level of risk within the loan portfolio. Diversification of the loan portfolio manages the risk associated with fluctuations in economic conditions. Authority levels are established for the extension of credit to ensure consistency throughout the Company. It is necessary that policies, processes, and practices implemented to control the risks of individual

credit transactions and portfolio segments are sound and adhered to. The Company maintains an independent loan review department that reviews and validates the risk assessment on a continual basis. Management regularly evaluates the results of the loan reviews. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Commercial loans are made based on the identified cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts from its customers.

Specialty lending loans include Asset-based and Factoring loans. Asset-based loans are offered primarily in the form of revolving lines of credit to commercial borrowers that do not generally qualify for traditional bank financing. Asset-based loans are underwritten based primarily upon the value of the collateral pledged to secure the loan, rather than on the borrower’s general financial condition. The Company utilizes pre-loan due diligence techniques, monitoring disciplines, and loan management practices common within the asset-based lending industry to underwrite loans to these borrowers. Factoring loans provide working capital through the purchase and/or financing of accounts receivable to borrowers in the transportation industry and to commercial borrowers that do not generally qualify for traditional bank financing.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Company requires that an appraisal of the collateral be made at origination and on an as-needed basis, in conformity with current market conditions and regulatory requirements. The underwriting standards address both owner and non-owner-occupied real estate. Also included in Commercial real estate are Construction loans that are underwritten using feasibility studies, independent appraisal reviews, sensitivity analysis or absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are based upon estimates of costs and value associated with the complete project. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their repayment being sensitive to interest rate changes, governmental regulation of real property, economic conditions, and the availability of long-term financing.

Consumer real estate loans, including residential real estate and home equity loans, are underwritten based on the borrower’s loan-to-value percentage, collection remedies, and overall credit history.

Consumer loans are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer loans and leases. The underwriting and review practices combined with the relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Consumer loans and leases that are 90 days past due or more are considered non-performing.

Credit cards include both commercial and consumer credit cards. Commercial credit cards are generally unsecured and are underwritten with criteria similar to commercial loans, including an analysis of the borrower’s cash flow, available business capital, and overall creditworthiness of the borrower. Consumer credit cards are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer credit cards and periodically reviews the distribution of FICO scores relative to historical periods to monitor credit risk on its consumer credit card loans.

Credit risk is a potential loss resulting from nonpayment of either the primary or secondary exposure. Credit risk is mitigated with formal risk management practices and a thorough initial credit-granting process including consistent underwriting standards and approval process. Control factors or techniques to minimize credit risk include knowing the client, understanding total exposure, analyzing the client and debtor’s financial capacity, and monitoring the client’s activities. Credit risk and portions of the portfolio risk are managed through concentration considerations, average risk ratings, and other aggregate characteristics.

This table provides a summary of loan classes and an aging of past due loans at September 30, 2021 and December 31, 2020 (in thousands):

The Company sold consumer real estate loans with proceeds of $118.8 million and $73.2 million in the secondary market without recourse during the nine months ended September 30, 2021 and 2020, respectively.

The Company has ceased the recognition of interest on loans with a carrying value of $96.5 million and $87.8 million at September 30, 2021 and December 31, 2020, respectively. Restructured loans totaled $7.5 million and $10.8 million at September 30, 2021 and December 31, 2020, respectively. Loans 90 days past due and still accruing interest amounted to $2.3 million and $2.0 million at September 30, 2021 and December 31, 2020, respectively. All interest accrued but not received for loans placed on nonaccrual is reversed against interest

income. There was an insignificant amount of interest reversed related to loans on nonaccrual during 2021. Nonaccrual loans with no related allowance for credit losses totaled $91.9 million and $42.1 million at September 30, 2021 and December 31, 2020, respectively.

The following tables provide the amortized cost of nonaccrual loans with no related allowance for credit losses by loan class at September 30, 2021 and December 31, 2020 (in thousands):

The following tables provide a summary of the amortized cost balance of each of the Company’s loan classes disaggregated by collateral type and origination year as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Loan Segment and Type	Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type	2021		2020		2019		2018		2017		Prior						Total
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	2,057,294	$	1,109,567	$	400,896	$	171,666	$	140,122	$	153,229	$	2,676,909	$	406	$	6,710,089
Agriculture		7,198		6,478		3,755		731		657		1,210		121,099		10		141,138
Overdrafts		—		—		—		—		—		—		5,016		—		5,016
Total Commercial and industrial		2,064,492		1,116,045		404,651		172,397		140,779		154,439		2,803,024		416		6,856,243
Specialty lending:
Asset-based lending		10,245		52,950		—		—		—		—		330,541		—		393,736
Factoring		—		—		—		—		—		—		114,695		—		114,695
Total Specialty lending		10,245		52,950		—		—		—		—		445,236		—		508,431
Commercial real estate:
Owner-occupied		498,622		542,847		269,721		216,268		101,140		190,136		10,983		638		1,830,355
Non-owner-occupied		703,825		732,878		701,884		183,984		110,260		321,302		7,769		—		2,761,902
Farmland		58,698		279,047		36,083		17,411		22,356		36,841		33,345		—		483,781
5+ Multi-family		30,346		97,479		47,900		29,164		1,894		36,866		1,408		—		245,057
1-4 Family construction		36,871		10,054		16,215		—		—		—		470		—		63,610
General construction		267,695		268,200		93,248		68,419		30,169		303		35,670		7,099		770,803
Total Commercial real estate		1,596,057		1,930,505		1,165,051		515,246		265,819		585,448		89,645		7,737		6,155,508
Consumer real estate:
HELOC		439		501		339		592		722		7,105		327,965		6,185		343,848
First lien: 1-4 family		649,364		775,112		220,794		64,550		62,212		109,611		61		—		1,881,704
Junior lien: 1-4 family		5,902		6,619		4,017		1,338		851		1,405		15		—		20,147
Total Consumer real estate		655,705		782,232		225,150		66,480		63,785		118,121		328,041		6,185		2,245,699
Consumer:
Revolving line		735		—		—		—		—		—		66,695		3,323		70,753
Auto		8,978		9,244		6,391		1,530		693		314		—		—		27,150
Other		3,819		1,959		2,126		1,624		2,404		812		4,858		—		17,602
Total Consumer		13,532		11,203		8,517		3,154		3,097		1,126		71,553		3,323		115,505
Credit cards:
Consumer		—		—		—		—		—		—		173,911		—		173,911
Commercial		—		—		—		—		—		—		219,182		—		219,182
Total Credit cards		—		—		—		—		—		—		393,093		—		393,093
Leases and other:
Leases		—		—		813		—		739		643		—		—		2,195
Other		21,345		47,203		55,555		22,868		5,872		918		39,028		—		192,789
Total Leases and other		21,345		47,203		56,368		22,868		6,611		1,561		39,028		—		194,984
Total loans	$	4,361,376	$	3,940,138	$	1,859,737	$	780,145	$	480,091	$	860,695	$	4,169,620	$	17,661	$	16,469,463

	December 31, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Loan Segment and Type	Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type	2020		2019		2018		2017		2016		Prior						Total
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	3,185,589	$	684,488	$	471,950	$	185,167	$	178,576	$	69,599	$	2,108,799	$	—	$	6,884,168
Agriculture		8,886		6,495		1,976		3,651		2,164		416		137,955		38		161,581
Overdrafts		—		—		—		—		—		—		16,325		—		16,325
Total Commercial and industrial		3,194,475		690,983		473,926		188,818		180,740		70,015		2,263,079		38		7,062,074
Specialty lending:
Asset-based lending		64,258		—		—		—		—		—		291,091		—		355,349
Factoring		—		—		—		—		—		—		155,951		—		155,951
Total Specialty lending		64,258		—		—		—		—		—		447,042		—		511,300
Commercial real estate:
Owner-occupied		579,212		334,098		233,192		170,913		120,603		176,377		18,880		51,910		1,685,185
Non-owner-occupied		846,030		630,457		230,549		169,193		333,215		115,753		49,384		97,954		2,472,535
Farmland		297,788		37,288		31,454		37,485		28,925		29,480		40,043		—		502,463
5+ Multi-family		190,922		80,293		2,835		32,498		39,802		6,298		2,418		94,789		449,855
1-4 Family construction		144		—		—		—		—		—		30,131		—		30,275
General construction		20,452		3,082		1,215		514		358		2,738		733,952		6,310		768,621
Total Commercial real estate		1,934,548		1,085,218		499,245		410,603		522,903		330,646		874,808		250,963		5,908,934
Consumer real estate:
HELOC		82,410		11,236		4,263		241		63		2,561		294,390		5		395,169
First lien: 1-4 family		896,676		304,017		83,429		87,927		78,458		75,408		2,579		—		1,528,494
Junior lien: 1-4 family		9,142		6,383		2,360		1,247		948		1,470		281		—		21,831
Total Consumer real estate		988,228		321,636		90,052		89,415		79,469		79,439		297,250		5		1,945,494
Consumer:
Revolving line		—		—		—		—		—		—		65,215		—		65,215
Auto		12,470		9,846		2,960		1,645		680		348		—		—		27,949
Other		5,017		3,200		2,131		216		1,005		172		13,081		—		24,822
Total Consumer		17,487		13,046		5,091		1,861		1,685		520		78,296		—		117,986
Credit cards:
Consumer		—		—		—		—		—		—		188,681		—		188,681
Commercial		—		—		—		—		—		—		178,287		—		178,287
Total Credit cards		—		—		—		—		—		—		366,968		—		366,968
Leases and other:
Leases		—		915		—		787		—		711		—		—		2,413
Other		33,626		10,758		7,659		2,611		1,323		646		131,859		—		188,482
Total Leases and other		33,626		11,673		7,659		3,398		1,323		1,357		131,859		—		190,895
Total loans	$	6,232,622	$	2,122,556	$	1,075,973	$	694,095	$	786,120	$	481,977	$	4,459,302	$	251,006	$	16,103,651

Accrued interest on loans totaled $48.4 million and $58.8 million as of September 30, 2021 and December 31, 2020, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable.

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans, net charge-offs, non-performing loans, and general economic conditions.

The Company utilizes a risk grading matrix to assign a rating to each of its commercial, commercial real estate, and construction real estate loans. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. The loan ratings are summarized into the following categories: Non-watch list, Watch, Special Mention, Substandard, and Doubtful. Any loan not classified in one of the categories described below is considered to be a Non-watch list loan. A description of the general characteristics of the loan rating categories is as follows:

A discussion of the credit quality indicators that impact each type of collateral securing Commercial and industrial loans is included below:

Equipment, accounts receivable, and inventory General commercial and industrial loans are secured by working capital assets and non-real estate assets. The general purpose of these loans is for financing capital expenditures and current operations for commercial and industrial entities. These assets are short-term in nature. In the case of accounts receivable and inventories, the repayment of debt is reliant upon converting assets into cash or through goods and services being sold and collected. Collateral based-risk is due to aged short-term assets, which can be indicative of underlying issues with the borrower and lead to the value of the collateral being overstated.

Agriculture Agricultural loans are secured by non-real estate agricultural assets. These include shorter-term assets such as equipment, crops, and livestock. The risks associated with loans to finance crops or livestock include the borrower’s ability to successfully raise and market the commodity. Adverse weather conditions and other natural perils can dramatically affect farmers’ or ranchers’ production and ability to service debt. Volatile commodity prices present another significant risk for agriculture borrowers. Market price volatility and production cost volatility can affect both revenues and expenses.

Overdrafts Commercial overdrafts are typically short-term and unsecured. Some commercial borrowers tie their overdraft obligation to their line of credit, so any draw on the line of credit will satisfy the overdraft.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	1,951,722	$	1,019,686	$	363,729	$	156,312	$	124,445	$	152,159	$	2,438,881	$	406	$	6,207,340
Watch – Pass		65,785		42,201		34,299		10,236		7,723		874		96,320		—		257,438
Special Mention		8,379		3,603		—		625		1,816		9		44,986		—		59,418
Substandard		31,408		11,702		2,868		1,019		1,281		187		63,073		—		111,538
Doubtful		—		32,375		—		3,474		4,857		—		33,649		—		74,355
Total Equipment/Accounts Receivable/Inventory	$	2,057,294	$	1,109,567	$	400,896	$	171,666	$	140,122	$	153,229	$	2,676,909	$	406	$	6,710,089
Agriculture
Non-watch list – Pass	$	6,633	$	5,708	$	2,968	$	303	$	646	$	1,188	$	90,056	$	10	$	107,512
Watch – Pass		500		300		348		428		11		22		7,182		—		8,791
Special Mention		—		—		439		—		—		—		1,375		—		1,814
Substandard		65		470		—		—		—		—		22,486		—		23,021
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	7,198	$	6,478	$	3,755	$	731	$	657	$	1,210	$	121,099	$	10	$	141,138

	December 31, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020		2019		2018		2017		2016		Prior						Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	2,975,305	$	664,016	$	439,460	$	171,409	$	165,321	$	67,442	$	1,948,261	$	—	$	6,431,214
Watch – Pass		89,746		10,400		9,309		5,126		11,044		1,592		70,768		—		197,985
Special Mention		53,334		9,788		15,524		1,898		2,158		—		8,485		—		91,187
Substandard		67,118		231		7,657		1,369		53		565		81,246		—		158,239
Doubtful		86		53		—		5,365		—		—		39		—		5,543
Total Equipment/Accounts Receivable/Inventory	$	3,185,589	$	684,488	$	471,950	$	185,167	$	178,576	$	69,599	$	2,108,799	$	—	$	6,884,168
Agriculture
Non-watch list – Pass	$	7,880	$	3,924	$	1,389	$	1,379	$	1,759	$	404	$	92,917	$	38	$	109,690
Watch – Pass		179		2,571		188		102		345		—		17,956		—		21,341
Special Mention		303		—		399		22		—		12		6,674		—		7,410
Substandard		524		—		—		2,148		60		—		20,408		—		23,140
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	8,886	$	6,495	$	1,976	$	3,651	$	2,164	$	416	$	137,955	$	38	$	161,581

A discussion of the credit quality indicators that impact each type of collateral securing Specialty loans is included below:

Asset-based lending General asset-based loans are secured by accounts receivable, inventory, equipment, and real estate. The purpose of these loans is for financing current operations for commercial customers. The repayment of debt is reliant upon collection of the accounts receivable within 30 to 90 days or converting assets into cash or through goods and services being sold and collected. The Company tracks each individual borrower credit risk based on their loan to collateral position. Any borrower position where the underlying value of collateral is below the fair value of the loan is considered out-of-margin and inherently higher risk.

Factoring General factoring loans are secured by accounts receivable. The purpose of these loans is for financing current operations for trucking or other commercial customers. The repayment of debt is reliant upon collection of the accounts receivable within 30 to 90 days. The Company tracks each individual borrower’s credit risk based on their loan to collateral position. To assess credit risk, the portfolio is separated into two tiers and a specifically impaired category. Tier 1 are loans that have not experienced collateral coverage rates falling below an internally tracked threshold at any time during their relationship history. The internal threshold is lower than each customers’ actual contractual collateral coverage ratio. Tier 2 are loans that have experienced collateral coverage rates falling below the same internally tracked threshold during their relationship history. Loans individually evaluated are loans that have either experienced collateral coverage rates falling below an internally tracked threshold during their relationship history or have balances that are greater than an internally tracked threshold. Individually evaluated loans utilize a practical expedient for the purpose of determining the expected credit loss. Collateral dependent assets are loans placed on non-accrual and loans considered to be TDRs. The combination of these categories has created an associated allowance to this portfolio of $2.7 million and $0.6 million at September 30, 2021 and December 31, 2020, respectively.

The following table provides a summary of the amortized cost balance by risk rating for asset-based loans as of September 30, 2021 and December 31, 2020 (in thousands):

The following table provides a summary of the amortized cost balance by risk rating for factoring loans as of September 30, 2021 and December 31, 2020 (in thousands):

A discussion of the credit quality indicators that impact each type of collateral securing Commercial real estate loans is included below:

Owner-occupied Owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The loans rely on the owner-occupied operations to service debt which cover a broad spectrum of industries. Real estate debt can carry a significant amount of leverage for a borrower to maintain.

Non-owner-occupied Non-owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The key element of risk in this type of lending is the cyclical nature of real estate markets. Although national conditions affect the overall real estate industry, the effect of national conditions on local markets is equally important. Factors such as unemployment rates, consumer demand, household formation, and the level of economic activity can vary widely from state to state and among metropolitan areas. In addition to geographic considerations, markets can be defined by property type. While all sectors are influenced by economic conditions, some sectors are more sensitive to certain economic factors than others.

Farmland Farmland loans are secured by real estate used for agricultural purposes such as crop and livestock production. Assets used as collateral are long-term assets that carry the ability to have longer amortizations and maturities. Longer terms carry the risk of added susceptibility to market conditions. The limited purpose of some Agriculture-related collateral affects credit risk because such collateral may have limited or no other uses to support values when loan repayment problems emerge.

5+ Multi-family 5+ multi-family loans are secured by a multi-family residential property. The primary risks associated with this type of collateral are largely driven by economic conditions. The national and local market conditions can change with unemployment rates or competing supply of multi-family housing. Tenants may not be able to afford their housing or have better options and this can result in increased vacancy. Rents may need to be lowered to fill apartment units. Increased vacancy and lower rental rates not only drive the borrower’s ability to repay debt but also contribute to how the collateral is valued.

1-4 Family construction 1-4 family construction loans are secured by 1-4 family residential real estate and are in the process of construction or improvements being made. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Market

conditions also play an important role in understanding the risk profile. Risk from adverse changes in market conditions from the start of development to completion can result in deflated collateral values

General construction General construction loans are secured by commercial real estate in process of construction or improvements being made and their repayment is dependent on the collateral’s completion. Construction lending presents unique risks not encountered in term financing of existing real estate. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Commercial properties under construction are susceptible to market and economic conditions. Demand from prospective customers may erode after construction begins because of a general economic slowdown or an increase in the supply of competing properties.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Owner-occupied
Non-watch list – Pass	$	498,332	$	530,483	$	251,374	$	212,965	$	97,369	$	182,869	$	10,883	$	638	$	1,784,913
Watch – Pass		—		10,996		17,212		1,062		1,157		3,745		—		—		34,172
Special Mention		98		1,334		—		—		—		991		—		—		2,423
Substandard		192		34		1,135		2,241		2,614		2,531		100		—		8,847
Doubtful		—		—		—		—		—		—		—		—		—
Total Owner-occupied	$	498,622	$	542,847	$	269,721	$	216,268	$	101,140	$	190,136	$	10,983	$	638	$	1,830,355
Non-owner-occupied
Non-watch list – Pass	$	657,172	$	722,918	$	607,828	$	172,723	$	104,929	$	282,344	$	7,769	$	—	$	2,555,683
Watch – Pass		46,653		1,294		42,625		11,261		5,331		2,623		—		—		109,787
Special Mention		—		8,666		24,921		—		—		36,300		—		—		69,887
Substandard		—		—		26,510		—		—		35		—		—		26,545
Doubtful		—		—		—		—		—		—		—		—		—
Total Non-owner-occupied	$	703,825	$	732,878	$	701,884	$	183,984	$	110,260	$	321,302	$	7,769	$	—	$	2,761,902
Farmland
Non-watch list – Pass	$	37,740	$	237,500	$	28,028	$	2,229	$	21,456	$	14,822	$	22,091	$	—	$	363,866
Watch – Pass		6,130		24,411		6,802		15,167		218		20,382		8,999		—		82,109
Special Mention		195		356		297		—		682		687		257		—		2,474
Substandard		14,633		16,780		956		15		—		950		1,998		—		35,332
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	58,698	$	279,047	$	36,083	$	17,411	$	22,356	$	36,841	$	33,345	$	—	$	483,781
5+ Multi-family
Non-watch list – Pass	$	30,346	$	97,479	$	47,900	$	29,164	$	1,894	$	36,866	$	1,408	$	—	$	245,057
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	30,346	$	97,479	$	47,900	$	29,164	$	1,894	$	36,866	$	1,408	$	—	$	245,057
1-4 Family construction
Non-watch list – Pass	$	36,871	$	10,054	$	16,215	$	—	$	—	$	—	$	470	$	—	$	63,610
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	36,871	$	10,054	$	16,215	$	—	$	—	$	—	$	470	$	—	$	63,610
General construction
Non-watch list – Pass	$	267,695	$	268,200	$	91,549	$	68,419	$	30,169	$	303	$	35,670	$	7,099	$	769,104
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		1,614		—		—		—		—		—		1,614
Doubtful		—		—		85		—		—		—		—		—		85
Total General construction	$	267,695	$	268,200	$	93,248	$	68,419	$	30,169	$	303	$	35,670	$	7,099	$	770,803

	December 31, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020		2019		2018		2017		2016		Prior						Total
Owner-occupied
Non-watch list – Pass	$	568,636	$	327,579	$	227,581	$	141,758	$	118,593	$	163,292	$	15,052	$	51,910	$	1,614,401
Watch – Pass		1,712		6,413		4,761		1,194		—		8,581		—		—		22,661
Special Mention		1,424		—		—		—		1,588		—		—		—		3,012
Substandard		7,440		106		850		27,961		422		4,504		3,828		—		45,111
Doubtful		—		—		—		—		—		—		—		—		—
Total Owner-occupied	$	579,212	$	334,098	$	233,192	$	170,913	$	120,603	$	176,377	$	18,880	$	51,910	$	1,685,185
Non-owner-occupied
Non-watch list – Pass	$	802,078	$	525,246	$	205,484	$	156,290	$	294,979	$	101,616	$	49,384	$	81,499	$	2,216,576
Watch – Pass		43,769		45,748		25,065		12,903		1,936		7,701		—		16,455		153,577
Special Mention		183		32,953		—		—		36,300		5,100		—		—		74,536
Substandard		—		26,510		—		—		—		1,336		—		—		27,846
Doubtful		—		—		—		—		—		—		—		—		—
Total Non-owner-occupied	$	846,030	$	630,457	$	230,549	$	169,193	$	333,215	$	115,753	$	49,384	$	97,954	$	2,472,535
Farmland
Non-watch list – Pass	$	237,124	$	27,815	$	15,907	$	26,071	$	13,376	$	8,924	$	19,074	$	—	$	348,291
Watch – Pass		20,992		9,221		13,404		5,133		6,301		19,835		17,699		—		92,585
Special Mention		—		—		630		1,854		4,901		40		861		—		8,286
Substandard		39,672		252		1,513		4,427		4,347		681		2,409		—		53,301
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	297,788	$	37,288	$	31,454	$	37,485	$	28,925	$	29,480	$	40,043	$	—	$	502,463
5+ Multi-family
Non-watch list – Pass	$	190,922	$	77,846	$	2,835	$	31,173	$	39,802	$	6,298	$	2,418	$	94,789	$	446,083
Watch – Pass		—		—		—		1,325		—		—		—		—		1,325
Special Mention		—		2,447		—		—		—		—		—		—		2,447
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	190,922	$	80,293	$	2,835	$	32,498	$	39,802	$	6,298	$	2,418	$	94,789	$	449,855
1-4 Family construction
Non-watch list – Pass	$	144	$	—	$	—	$	—	$	—	$	—	$	30,131	$	—	$	30,275
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	144	$	—	$	—	$	—	$	—	$	—	$	30,131	$	—	$	30,275
General construction
Non-watch list – Pass	$	20,452	$	2,996	$	1,215	$	514	$	358	$	2,738	$	730,616	$	6,310	$	765,199
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		3,336		—		3,336
Doubtful		—		86		—		—		—		—		—		—		86
Total General construction	$	20,452	$	3,082	$	1,215	$	514	$	358	$	2,738	$	733,952	$	6,310	$	768,621

A discussion of the credit quality indicators that impact each type of collateral securing Consumer real estate loans is included below:

HELOC HELOC loans are revolving lines of credit secured by 1-4 family residential property. The primary risk is the borrower’s inability to repay debt. Revolving notes are often associated with HELOCs that can be secured by real estate without a 1st lien priority. Collateral is susceptible to market volatility impacting home values or economic downturns.

First lien: 1-4 family First lien 1-4 family loans are secured by a first lien on 1-4 family residential property. These term loans carry longer maturities and amortizations. The longer tenure exposes the borrower to multiple economic cycles, coupled with longer amortizations that result in smaller principal reduction early in the life of the loan. Collateral is susceptible to market volatility impacting home values.

Junior lien: 1-4 family Junior lien 1-4 family loans are secured by a junior lien on 1-4 family residential property. The Company’s primary risk is the borrower’s inability to repay debt and not being in a first lien position. Collateral is susceptible to market volatility impacting home values or economic downturns.

A borrower is considered non-performing if the Company has ceased the recognition of interest and the loan is placed on non-accrual. Charge-offs and borrower performance are tracked on a loan origination vintage basis. Certain vintages, based on their maturation cycle, could be at higher risk due to collateral-based risk factors.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
HELOC
Performing	$	439	$	485	$	199	$	167	$	454	$	5,407	$	327,863	$	6,124	$	341,138
Non-performing		—		16		140		425		268		1,698		102		61		2,710
Total HELOC	$	439	$	501	$	339	$	592	$	722	$	7,105	$	327,965	$	6,185	$	343,848
First lien: 1-4 family
Performing	$	649,364	$	775,040	$	220,539	$	64,398	$	61,898	$	108,563	$	61	$	—	$	1,879,863
Non-performing		—		72		255		152		314		1,048		—		—		1,841
Total First lien: 1-4 family	$	649,364	$	775,112	$	220,794	$	64,550	$	62,212	$	109,611	$	61	$	—	$	1,881,704
Junior lien: 1-4 family
Performing	$	5,902	$	6,619	$	4,017	$	1,329	$	831	$	1,355	$	15	$	—	$	20,068
Non-performing		—		—		—		9		20		50		—		—		79
Total Junior lien: 1-4 family	$	5,902	$	6,619	$	4,017	$	1,338	$	851	$	1,405	$	15	$	—	$	20,147

	December 31, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020		2019		2018		2017		2016		Prior						Total
HELOC
Performing	$	82,410	$	11,209	$	4,213	$	241	$	63	$	2,518	$	291,340	$	5	$	391,999
Non-performing		—		27		50		—		—		43		3,050		—		3,170
Total HELOC	$	82,410	$	11,236	$	4,263	$	241	$	63	$	2,561	$	294,390	$	5	$	395,169
First lien: 1-4 family
Performing	$	896,676	$	303,810	$	83,429	$	87,637	$	77,466	$	74,849	$	2,579	$	—	$	1,526,446
Non-performing		—		207		—		290		992		559		—		—		2,048
Total First lien: 1-4 family	$	896,676	$	304,017	$	83,429	$	87,927	$	78,458	$	75,408	$	2,579	$	—	$	1,528,494
Junior lien: 1-4 family
Performing	$	9,142	$	6,374	$	2,317	$	1,225	$	908	$	1,456	$	281	$	—	$	21,703
Non-performing		—		9		43		22		40		14		—		—		128
Total Junior lien: 1-4 family	$	9,142	$	6,383	$	2,360	$	1,247	$	948	$	1,470	$	281	$	—	$	21,831

A discussion of the credit quality indicators that impact each type of collateral securing Consumer loans is included below:

Revolving line Consumer Revolving lines of credit are secured by consumer assets other than real estate. The primary risk associated with this collateral is related to market volatility and the value of the underlying financial assets.

Auto Direct consumer auto loans are secured by new and used consumer vehicles. The primary risk with this collateral class is the rate at which the collateral depreciates.

Other This category includes Other consumer loans made to an individual. The primary risk for this category is for those loans where the loan is unsecured. This collateral type also includes other unsecured lending such as consumer overdrafts.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Revolving line
Performing	$	735	$	—	$	—	$	—	$	—	$	—	$	66,695	$	3,323	$	70,753
Non-performing		—		—		—		—		—		—		—		—		—
Total Revolving line	$	735	$	—	$	—	$	—	$	—	$	—	$	66,695	$	3,323	$	70,753
Auto
Performing	$	8,978	$	9,244	$	6,350	$	1,530	$	693	$	314	$	—	$	—	$	27,109
Non-performing		—		—		41		—		—		—		—		—		41
Total Auto	$	8,978	$	9,244	$	6,391	$	1,530	$	693	$	314	$	—	$	—	$	27,150
Other
Performing	$	3,819	$	1,943	$	2,126	$	1,624	$	2,404	$	808	$	4,858	$	—	$	17,582
Non-performing		—		16		—		—		—		4		—		—		20
Total Other	$	3,819	$	1,959	$	2,126	$	1,624	$	2,404	$	812	$	4,858	$	—	$	17,602

	December 31, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020		2019		2018		2017		2016		Prior						Total
Revolving line
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	65,215	$	—	$	65,215
Non-performing		—		—		—		—		—		—		—		—		—
Total Revolving line	$	—	$	—	$	—	$	—	$	—	$	—	$	65,215	$	—	$	65,215
Auto
Performing	$	12,465	$	9,784	$	2,960	$	1,645	$	680	$	347	$	—	$	—	$	27,881
Non-performing		5		62		—		—		—		1		—		—		68
Total Auto	$	12,470	$	9,846	$	2,960	$	1,645	$	680	$	348	$	—	$	—	$	27,949
Other
Performing	$	5,000	$	3,200	$	2,131	$	214	$	1,005	$	172	$	13,081	$	—	$	24,803
Non-performing		17		—		—		2		—		—		—		—		19
Total Other	$	5,017	$	3,200	$	2,131	$	216	$	1,005	$	172	$	13,081	$	—	$	24,822

A discussion of the credit quality indicators that impact Credit card loans is included below:

Consumer Consumer credit card loans are revolving loans made to individuals. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. The highly competitive environment for credit card lending provides consumers with ample opportunity to hold several credit cards from different issuers and to pay only minimum monthly payments on outstanding balances. In such an environment, borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a personal catastrophic event.

The consumer credit card portfolio is segmented by borrower payment activity. Transactors are defined as accounts that pay off their balance by the end of each statement cycle. Revolvers are defined as an account that carries a balance from statement cycle to the next. These accounts incur monthly finance charges, and, sometimes, late fees. Revolvers are inherently higher risk and are tracked by FICO score.

Commercial Commercial credit card loans are revolving loans made to small and commercial businesses. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. Borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a catastrophic event.

The commercial credit card portfolio is segmented by current and past due payment status. A borrower is past due after 30 days. In general, commercial credit card customers do not have incentive to hold a balance resulting in paying interest on credit card debt as commercial customers will typically have other debt obligations with lower interest rates in which they can utilize for capital.

The following table provides a summary of the amortized cost balance of consumer credit cards by risk rating as of September 30, 2021 and December 31, 2020 (in thousands):

The following table provides a summary of the amortized cost balance of commercial credit cards by risk rating as of September 30, 2021 and December 31, 2020 (in thousands):

A discussion of the credit quality indicators that impact each type of collateral securing Leases and other loans is included below:

Leases Leases are either loans to individuals for household, family and other personal expenditures or are loans related to all other direct financing and leveraged leases on property for leasing to lessees other than for household, family and other personal expenditure purposes. All leases are secured by the lease between the lessor and the lessee. These assignments grant the creditor a security interest in the rent stream from any lease, an important source of cash to pay the note in case of the borrower’s default.

Other Other loans are loans that are obligations of states and political subdivisions in the U.S., loans to non-depository financial institutions, loans for purchasing or carrying securities, or all other non-consumer loans. Risk associated with other loans is tied to the underlying collateral by each type of loan. Collateral is generally equipment, accounts receivable, inventory, 1-4 family residential construction and susceptible to the same risks mentioned with those collateral types previously. Other risks consist of collateral that is secured by the stock of a non-depository financial institution, which can be unlisted stock with a limited market for the stock, or volatility of asset values driven by market performance.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2021 and December 31, 2020 (in thousands):

The allowance for credit losses (ACL) is a valuation account that is deducted from loans’ and held-to-maturity (HTM) securities’ amortized cost bases to present the net amount expected to be collected on the instrument. Loans and HTM securities are charged off against the ACL when management believes the balance has become uncollectible. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses and is tracked over an economic cycle to capture a ‘through the cycle’ loss history. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in portfolio industry-based segmentation,

risk rating and FICO score changes, average prepayment rates, changes in environmental conditions, or other relevant factors. For economic forecasts, the Company uses the Moody’s baseline scenario. The Company has developed a dynamic reasonable and supportable forecast period that ranges from one to three years and changes based on economic conditions. Due to current economic conditions, the Company’s reasonable and supportable forecast period is one year. After the reasonable and supportable forecast period, the Company reverts to historical losses. The reversion method applied to each portfolio can either be cliff or straight-line over four quarters.

The ACL is measured on a collective (pool) basis when similar risk characteristics exists. The ACL also incorporates qualitative factors which represent adjustments to historical credit loss experience for items such as concentrations of credit and results of internal loan review. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods. The Company’s portfolio segmentation consists of Commercial and industrial, Specialty lending, Commercial real estate, Consumer real estate, Consumer, Credit cards, Leases and other, and Held-to-maturity securities. Multiple modeling techniques are used to measure credit losses based on the portfolio.

The ACL for Commercial & industrial and Leases and other segments are measured using a probability of default and loss given default method. Primary risk drivers within the segment are risk ratings of the individual loans along with changes of macro-economic variables such as interest rates and farm income. The ACL for commercial & industrial loans is calculated by modeling probability of default (PD) over future periods multiplied by historical loss given default rates (LGD) multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

Collateral positions for Specialty lending loans are continuously monitored by the Company and the borrower is required to continually adjust the amount of collateral securing the loan. Credit losses are measured for any position where the amortized cost basis is greater than the fair value of the collateral. The ACL for specialty lending loans is calculated by using a bottom up approach comparing collateral values to outstanding balances.

The ACL for the Commercial real estate segment is measured using a PD and LGD method. Primary risk characteristics within the segment are risk ratings of the individual loans, along with changes of macro-economic variables, such as interest rates, CRE price index, median household income, construction activity, farm income, and vacancy rates. The ACL for commercial real estate loans is calculated by modeling PD over future periods based on peer bank data. The PD loss rate is then multiplied by historical LGD multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

The ACL for the Consumer real estate and Consumer segments are measured using an origination vintage loss rate method applied to the loans’ amortized cost balance. The primary risk driver within the segments is year of origination along with changes of macro-economic variables such as unemployment and the home price index.

The Credit card segment contains both consumer and commercial credit cards. The ACL for Consumer credit cards is measured using a PD and LGD method for Revolvers and average historical loss rates across a defined lookback period for Transactors. The PD and LGD method used for Revolvers is similar in nature to the method used in the Commercial & industrial and Commercial real estate segments. Primary risk drivers within the segment are FICO ratings of the individual card holders along with changes of macro-economic variables such as unemployment and retail sales. The ACL for Commercial credit cards is measured using roll-rate loss rate method based on days past due.

The ACL for HTM securities segment is measured using a loss rate method based on historical bond rating transitions. Primary risk drivers within the segment are bond ratings in the portfolio along with changes of macro-economic conditions. For further discussion on these securities, including the aging and amortized cost balance of HTM securities, see Note 5, “Securities.”

See the credit quality indicators presented previously for a summary of current risk in the Company’s portfolio. Changes in economic forecasts will affect all portfolio segments, updated financial records from borrowers will affect portfolio segments by risk rating, updated FICO scores will affect consumer credit cards, payment performance will affect consumer and commercial credit card portfolio segments, and updated bond credit

ratings will affect held-to-maturity securities. The Company actively monitors all credit quality indicators for risk changes that will influence the current estimate.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring (TDR) will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Credit card receivables do not have stated maturities. In determining the estimated life of a credit card receivable, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the credit card balance. Expected credit losses for credit cards are determined by estimating the amount and timing of principal payments expected to be received as payment for the balance outstanding as of the reporting period until the expected payments have been fully allocated. The ACL is recorded for the excess of the balance outstanding as of the reporting period over the expected principal payments.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually include loans on nonaccrual, loans classified as TDRs, or any loans specifically identified, and are excluded from the collective evaluation. When it is determined that payment of interest or recovery of all principal is questionable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for undiscounted selling costs as appropriate. All loans are classified as collateral dependent if placed on non-accrual or are considered to be a TDR.

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The allowance for credit loss on a TDR is measured using the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the allowance for credit loss is determined by discounting the expected future cash flows, including contractual payments and value of collateral at termination, at the original effective interest rate of the loan.

This table provides a rollforward of the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands):

	Three Months Ended September 30, 2021
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	118,121		$	5,901		$	56,734		$	5,807		$	857		$	11,743		$	1,400		$	200,563		$	2,836		$	203,399
Charge-offs		(1,592	)		—			(77	)		—			(1,782	)		(1,617	)		—			(5,068	)		—			(5,068	)
Recoveries		1,165			3			213			16			83			461			—			1,941			—			1,941
Provision		(12,559	)		816			10,663			360			1,856			(4,265	)		(151	)		(3,280	)		(720	)		(4,000	)
Ending balance - ACL	$	105,135		$	6,720		$	67,533		$	6,183		$	1,014		$	6,322		$	1,249		$	194,156		$	2,116		$	196,272
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,344		$	213		$	326		$	142		$	208		$	—		$	264		$	3,497		$	91		$	3,588
Provision		(605	)		(53	)		154			(36	)		(208	)		—			(249	)		(997	)		(3	)		(1,000	)
Ending balance - ACL on off-balance sheet	$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88		$	2,588

	Three Months Ended September 30, 2020
	Commercial and industrial			Specialty lending		Commercial real estate			Consumer real estate		Consumer			Credit cards			Leases and other		Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	114,610		$	929	$	55,834		$	5,952	$	1,606		$	19,585		$	1,784	$	200,300		$	3,305		$	203,605
Charge-offs		(4,554	)		—		(3,000	)		—		(107	)		(1,823	)		—		(9,484	)		—			(9,484	)
Recoveries		3,923			—		6			9		56			379			—		4,373			—			4,373
Provision		5,880			2,654		6,194			1,644		857			(824	)		94		16,499			(499	)		16,000
Ending balance - ACL	$	119,859		$	3,583	$	59,034		$	7,605	$	2,412		$	17,317		$	1,878	$	211,688		$	2,806		$	214,494
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	5,417		$	81	$	403		$	314	$	33		$	—		$	173	$	6,421		$	57		$	6,478
Provision		—			—		—			—		—			—			—		—			—			—
Ending balance - ACL on off-balance sheet	$	5,417		$	81	$	403		$	314	$	33		$	—		$	173	$	6,421		$	57		$	6,478

	Nine Months Ended September 30, 2021
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	122,700		$	5,219		$	61,931		$	6,586		$	1,480		$	15,786		$	2,271		$	215,973		$	2,610		$	218,583
Charge-offs		(6,311	)		(31,945	)		(77	)		(86	)		(2,030	)		(4,786	)		(8	)		(45,243	)		—			(45,243	)
Recoveries		4,926			154			1,560			129			170			1,475			18			8,432			—			8,432
Provision		(16,180	)		33,292			4,119			(446	)		1,394			(6,153	)		(1,032	)		14,994			(494	)		14,500
Ending balance - ACL	$	105,135		$	6,720		$	67,533		$	6,183		$	1,014		$	6,322		$	1,249		$	194,156		$	2,116		$	196,272
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	3,859		$	287		$	447		$	145		$	381		$	—		$	414		$	5,533		$	55		$	5,588
Provision		(2,120	)		(127	)		33			(39	)		(381	)		—			(399	)		(3,033	)		33			(3,000	)
Ending balance - ACL on off-balance sheet	$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88		$	2,588

	Nine Months Ended September 30, 2020
	Commercial and industrial			Specialty lending		Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	63,313		$	2,545	$	15,951		$	2,623		$	543		$	15,739		$	1,074		$	101,788		$	—		$	101,788
ASU 2016-13 adjustment		3,677			148		926			152			31			914			62			5,910			3,120			9,030
Charge-offs		(6,990	)		—		(11,920	)		(219	)		(513	)		(5,953	)		(11	)		(25,606	)		—			(25,606	)
Recoveries		5,640			—		82			57			271			1,232			—			7,282			—			7,282
Provision		54,219			890		53,995			4,992			2,080			5,385			753			122,314			(314	)		122,000
Ending balance - ACL	$	119,859		$	3,583	$	59,034		$	7,605		$	2,412		$	17,317		$	1,878		$	211,688		$	2,806		$	214,494
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,263		$	53	$	257		$	102		$	22		$	—		$	211		$	2,908		$	70		$	2,978
Provision		3,154			28		146			212			11			—			(38	)		3,513			(13	)		3,500
Ending balance - ACL on off-balance sheet	$	5,417		$	81	$	403		$	314		$	33		$	—		$	173		$	6,421		$	57		$	6,478

The allowance for credit losses on off-balance sheet credit exposures is recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets. See Note 10 “Commitments, Contingencies and Guarantees.”

The following tables provide the amortized cost balance of financial assets considered collateral dependent as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	83,445	$	3,474	$	79,971
Agriculture		—		—		—
Total Commercial and industrial		83,445		3,474		79,971
Specialty lending:
Asset-based lending		—		—		—
Factoring		1,211		139		—
Total Specialty lending		1,211		139		—
Commercial real estate:
Owner-occupied		4,669		—		4,669
Non-owner-occupied		—		—		—
Farmland		510		—		510
5+ Multi-family		—		—		—
1-4 Family construction		—		—		—
General construction		1,700		—		1,700
Total Commercial real estate		6,879		—		6,879
Consumer real estate:
HELOC		2,710		—		2,710
First lien: 1-4 family		1,842		—		1,842
Junior lien: 1-4 family		160		—		160
Total Consumer real estate		4,712		—		4,712
Consumer:
Revolving line		—		—		—
Auto		42		—		42
Other		20		—		20
Total Consumer		62		—		62
Leases and other:
Leases		—		—		—
Other		—		—		—
Total Leases and other		—		—		—
Total loans	$	96,309	$	3,613	$	91,624

	December 31, 2020
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	29,684	$	4,828	$	5,830
Agriculture		4,086		—		4,086
Total Commercial and industrial		33,770		4,828		9,916
Specialty lending:
Asset-based lending		17,875		4,490		242
Factoring		1,561		173		—
Total Specialty lending		19,436		4,663		242
Commercial real estate:
Owner-occupied		16,539		—		16,539
Non-owner-occupied		—		—		—
Farmland		8,625		—		8,625
5+ Multi-family		—		—		—
1-4 Family construction		—		—		—
General construction		3,423		582		770
Total Commercial real estate		28,587		582		25,934
Consumer real estate:
HELOC		3,170		—		3,170
First lien: 1-4 family		2,468		54		2,047
Junior lien: 1-4 family		212		—		212
Total Consumer real estate		5,850		54		5,429
Consumer:
Revolving line		—		—		—
Auto		69		—		69
Other		19		—		19
Total Consumer		88		—		88
Leases and other:
Leases		—		—		—
Other		—		—		—
Total Leases and other		—		—		—
Total loans	$	87,731	$	10,127	$	41,609

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. These modifications allow the debtor short-term cash relief to allow them to improve their financial condition. The Company’s restructured loans are considered collateral dependent and evaluated as part of the allowance for credit loss as described above in the Allowance for Credit Losses section of this note.

The Company had no commitments to lend to borrowers with loan modifications classified as TDRs as of September 30, 2021 and September 30, 2020. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term.

For the three and nine-month periods ended September 30, 2021, the Company had no new TDRs. For the three months ended September 30, 2020, the Company had no new TDRs. For the nine months ended September 30, 2020, the Company had one new residential real estate TDR with a pre- and post-modification loan balance of $441 thousand. For the three and nine-month periods ended September 30, 2021 and September 30, 2020, the Company had no TDRs for which there was a payment default within the 12 months following the restructure date.