Financing Receivables [Text Block] | Loans Receivable (a) Loan Origination/Risk Management The Company originates loans in the ordinary course of business and has also acquired loans through mergers and acquisitions. Disclosures related to the Company's recorded investment in loans receivable generally exclude accrued interest receivable and net deferred fees or costs as they were deemed insignificant. Loans acquired in a business combination are further classified as “purchased” loans. Loans purchased with evidence of credit deterioration since origination for which it is probable that not all contractually required payments will be collected are accounted for under FASB ASC 310-30, Receivables —Loans and Debt Securities Acquired with Deteriorated Credit Quality . These loans are identified as "PCI" loans. Loans purchased that are not accounted for under FASB ASC 310-30 are accounted for under FASB ASC 310-20, Receivables—Nonrefundable Fees and Other Costs, and are referred to as "non-PCI" loans. There were no PCI loans acquired in the Premier and Puget Mergers. The Company categorizes loans in one of the four segments of the total loan portfolio: commercial business, one-to-four family residential, real estate construction and land development and consumer. Within these segments are classes of loans for which management monitors and assesses credit risk in the loan portfolios. Loans receivable at September 30, 2019 and December 31, 2018 consisted of the following portfolio segments and classes: September 30, 2019 December 31, 2018 (In thousands) Commercial business: Commercial and industrial $ 853,995 $ 853,606 Owner-occupied commercial real estate 787,591 779,814 Non-owner occupied commercial real estate 1,316,992 1,304,463 Total commercial business 2,958,578 2,937,883 One-to-four family residential 121,174 101,763 Real estate construction and land development: One-to-four family residential 98,034 102,730 Five or more family residential and commercial properties 147,686 112,730 Total real estate construction and land development 245,720 215,460 Consumer 403,485 395,545 Gross loans receivable 3,728,957 3,650,651 Net deferred loan costs 2,386 3,509 Loans receivable, net 3,731,343 3,654,160 Allowance for loan losses (36,518 ) (35,042 ) Total loans receivable, net $ 3,694,825 $ 3,619,118 (b) Concentrations of Credit As of September 30, 2019 , and December 31, 2018 , there were no concentrations of loans related to any single industry in excess of 10% of the Company’s total loans. (c) Credit Quality Indicators 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 (i) the risk grade of the loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions of the United States of America, and specifically the states of Washington and Oregon. The Company utilizes a risk grading matrix to assign a risk grade to each loan on a scale of 1 to 10. Risk grades are aggregated to create the risk categories of "Pass" for grades 1 to 6, OAEM for grade 7, "Substandard" for grade 8, "Doubtful" for grade 9 and "Loss" for grade 10. The following tables present the balance of loans receivable by credit quality indicator as of September 30, 2019 and December 31, 2018 : September 30, 2019 Pass OAEM Substandard Doubtful/Loss Total (In thousands) Commercial business: Commercial and industrial $ 777,165 $ 20,310 $ 56,520 $ — $ 853,995 Owner-occupied commercial real estate 753,386 20,498 13,707 — 787,591 Non-owner occupied commercial real estate 1,293,780 9,989 13,223 — 1,316,992 Total commercial business 2,824,331 50,797 83,450 — 2,958,578 One-to-four family residential 119,914 — 1,260 — 121,174 Real estate construction and land development: One-to-four family residential 96,300 — 1,734 — 98,034 Five or more family residential and commercial properties 147,177 509 — — 147,686 Total real estate construction and land development 243,477 509 1,734 — 245,720 Consumer 399,203 — 3,758 524 403,485 Gross loans receivable $ 3,586,925 $ 51,306 $ 90,202 $ 524 $ 3,728,957 December 31, 2018 Pass OAEM Substandard Doubtful/Loss Total (In thousands) Commercial business: Commercial and industrial $ 788,395 $ 16,168 $ 49,043 $ — $ 853,606 Owner-occupied commercial real estate 741,227 27,724 10,863 — 779,814 Non-owner occupied commercial real estate 1,283,077 9,438 11,948 — 1,304,463 Total commercial business 2,812,699 53,330 71,854 — 2,937,883 One-to-four family residential 100,401 — 1,362 — 101,763 Real estate construction and land development: One-to-four family residential 101,519 258 953 — 102,730 Five or more family residential and commercial properties 112,678 52 — — 112,730 Total real estate construction and land development 214,197 310 953 — 215,460 Consumer 390,808 — 4,213 524 395,545 Gross loans receivable $ 3,518,105 $ 53,640 $ 78,382 $ 524 $ 3,650,651 Potential problem loans are loans classified as OAEM or worse that are currently accruing interest and are not considered impaired, but which management is closely monitoring because the financial information of the borrower causes concern as to their ability to meet their loan repayment terms. Potential problem loans may include PCI loans as these loans continue to accrete loan discounts established at acquisition based on the guidance of FASB ASC 310-30. Potential problem loans as of September 30, 2019 and December 31, 2018 were $85.3 million and $101.3 million , respectively. (d) Nonaccrual Loans Nonaccrual loans, segregated by segments and classes of loans, were as follows as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 (In thousands) Commercial business: Commercial and industrial $ 30,014 $ 6,639 Owner-occupied commercial real estate 4,176 4,212 Non-owner occupied commercial real estate 6,552 1,713 Total commercial business 40,742 12,564 One-to-four family residential 19 71 Real estate construction and land development: One-to-four family residential 560 899 Consumer 190 169 Nonaccrual loans $ 41,511 $ 13,703 PCI loans are not included in the nonaccrual loan table above because these loans are accounted for under FASB ASC 310-30, which provides that accretable yield is calculated based on a loan or pool's expected cash flow even if the loan or pool is not performing under its contractual terms, except for non-pooled PCI loans which are no longer accreting loan discounts established at acquisition. (e) Past due loans The Company performs an aging analysis of past due loans using policies consistent with regulatory reporting requirements with categories of 30-89 days past due and 90 or more days past due. PCI loans are included in the past due loans table below solely to reconcile to total Gross Loans Receivable. The balances of past due loans, segregated by segments and classes of loans, as of September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 832 $ 3,562 $ 4,394 $ 847,202 $ 851,596 Owner-occupied commercial real estate 158 757 915 779,880 780,795 Non-owner occupied commercial real estate 2,971 2,029 5,000 1,305,725 1,310,725 Total commercial business 3,961 6,348 10,309 2,932,807 2,943,116 One-to-four family residential — — — 117,669 117,669 Real estate construction and land development: One-to-four family residential — 560 560 97,474 98,034 Five or more family residential and commercial properties — — — 147,686 147,686 Total real estate construction and land development — 560 560 245,160 245,720 Consumer 1,667 — 1,667 399,717 401,384 Past due gross loans receivable, excluding PCI loans 5,628 6,908 12,536 3,695,353 3,707,889 PCI loans 934 155 1,089 19,979 21,068 Gross loans receivable $ 6,562 $ 7,063 $ 13,625 $ 3,715,332 $ 3,728,957 December 31, 2018 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,711 $ 2,281 $ 4,992 $ 845,181 $ 850,173 Owner-occupied commercial real estate 513 408 921 771,677 772,598 Non-owner occupied commercial real estate 3,412 1,103 4,515 1,292,888 1,297,403 Total commercial business 6,636 3,792 10,428 2,909,746 2,920,174 One-to-four family residential 227 — 227 98,221 98,448 Real estate construction and land development: One-to-four family residential 665 234 899 101,451 102,350 Five or more family residential and commercial properties — — — 112,688 112,688 Total real estate construction and land development 665 234 899 214,139 215,038 Consumer 2,559 — 2,559 389,525 392,084 Past due gross loans receivable, excluding PCI loans 10,087 4,026 14,113 3,611,631 3,625,744 PCI loans 2,271 550 2,821 22,086 24,907 Gross loans receivable $ 12,358 $ 4,576 $ 16,934 $ 3,633,717 $ 3,650,651 There were no loans 90 days or more past due that were still accruing interest as of September 30, 2019 or December 31, 2018 , excluding PCI loans. (f) Impaired loans Impaired loans include nonaccrual loans, performing TDR loans, and other loans with a specific valuation allowance. The balances of impaired loans as of September 30, 2019 and December 31, 2018 are set forth in the following tables: September 30, 2019 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 26,099 $ 16,338 $ 42,437 $ 43,845 $ 1,879 Owner-occupied commercial real estate 3,031 2,503 5,534 5,925 453 Non-owner occupied commercial real estate 5,394 4,518 9,912 9,997 316 Total commercial business 34,524 23,359 57,883 59,767 2,648 One-to-four family residential — 220 220 227 57 Real estate construction and land development: One-to-four family residential 560 — 560 638 — Consumer — 575 575 589 148 Total $ 35,084 $ 24,154 $ 59,238 $ 61,221 $ 2,853 December 31, 2018 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 2,523 $ 20,119 $ 22,642 $ 24,176 $ 2,607 Owner-occupied commercial real estate 816 5,000 5,816 6,150 1,142 Non-owner occupied commercial real estate 3,352 2,924 6,276 6,414 206 Total commercial business 6,691 28,043 34,734 36,740 3,955 One-to-four family residential — 279 279 293 76 Real estate construction and land development: One-to-four family residential 899 — 899 1,662 — Consumer — 527 527 538 139 Total $ 7,590 $ 28,849 $ 36,439 $ 39,233 $ 4,170 The average recorded investment of impaired loans for the three and nine months ended September 30, 2019 and 2018 are set forth in the following table: Three Months Ended September 30, Nine Months Ended 2019 2018 2019 2018 (In thousands) Commercial business: Commercial and industrial $ 35,022 $ 16,252 $ 28,929 $ 15,258 Owner-occupied commercial real estate 5,918 12,533 5,927 12,687 Non-owner occupied commercial real estate 9,793 10,265 8,108 10,311 Total commercial business 50,733 39,050 42,964 38,256 One-to-four family residential 222 288 249 292 Real estate construction and land development: One-to-four family residential 676 1,080 794 1,139 Five or more family residential and commercial properties — — — 161 Total real estate construction and land development 676 1,080 794 1,300 Consumer 596 396 579 403 Total $ 52,227 $ 40,814 $ 44,586 $ 40,251 For the three and nine months ended September 30, 2019 and 2018 , no interest income was recognized subsequent to a loan’s classification as nonaccrual. For the three and nine months ended September 30, 2019 , the Bank recorded $282,000 and $980,000 , respectively, of interest income related to performing TDR loans. For the three and nine months ended September 30, 2018 , the Bank recorded $361,000 and $1.0 million , respectively, of interest income related to performing TDR loans. (g) Troubled Debt Restructured Loans The recorded investment balance and related allowance for loan losses of performing and nonaccrual TDR loans as of September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Performing TDR loans Nonaccrual TDR loans Performing TDR loans Nonaccrual TDR loans (In thousands) TDR loans $ 19,416 $ 17,529 $ 22,736 $ 6,943 Allowance for loan losses on TDR loans 1,850 494 2,257 658 The unfunded commitment to borrowers related to TDR loans was $2.0 million and $943,000 at September 30, 2019 and December 31, 2018 , respectively. Loans that were modified as TDR loans during the three and nine months ended September 30, 2019 and 2018 are set forth in the following tables: Three Months Ended September 30, 2019 2018 Number of Recorded Investment (1) Number of Recorded Investment (1) (Dollars in thousands) Commercial business: Commercial and industrial 15 $ 5,266 11 $ 2,352 Owner-occupied commercial real estate 2 1,214 2 1,081 Non-owner occupied commercial real estate 3 2,597 2 2,776 Total commercial business 20 9,077 15 6,209 Consumer 3 26 1 25 Total loans modified as TDR loans 23 $ 9,103 16 $ 6,234 Nine Months Ended September 30, 2019 2018 Number of (2) Recorded Investment (1,2) Number of Contracts (2) Recorded Investment (1,2) (Dollars in thousands) Commercial business: Commercial and industrial 33 $ 22,414 22 $ 4,445 Owner-occupied commercial real estate 3 1,612 3 1,639 Non-owner occupied commercial real estate 4 5,568 3 2,976 Total commercial business 40 29,594 28 9,060 Real estate construction and land development: One-to-four family residential 1 560 2 767 Consumer 10 155 8 133 Total TDR loans 51 $ 30,309 38 $ 9,960 (1) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modification, the Bank’s recorded investment in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification), except when the modification was the initial advance on a one-to-four family residential real estate construction and land development loan under a master guidance line. There were no advances on these types of loans during the three and nine months ended September 30, 2019 and 2018 . (2) Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-down or charged-off during the nine months ended September 30, 2019 and 2018 . The tables above include seven and 17 loans, respectively, for the three and nine months ended September 30, 2019 and nine and 15 loans, respectively, for the three and nine months ended September 30, 2018 that were previously reported as TDR loans. The Bank typically grants shorter extension periods to continually monitor these TDR loans despite the fact that the extended date might not be the date the Bank expects sufficient cash flow from these borrowers. The Bank does not consider these modifications a subsequent default of a TDR as new loan terms, specifically new maturity dates, were granted. Of the remaining first-reported TDR loans, the concessions granted largely consisted of maturity extensions, interest rate modifications or a combination of both. The potential losses related to TDR loans are considered in the period the loan was first reported as a TDR loan and are adjusted, as necessary, in the current period based on more recent information. The related specific valuation allowance at September 30, 2019 for loans that were modified as TDR loans during the nine months ended September 30, 2019 was $1.8 million . Loans that were modified during the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2019 and 2018 are set forth in the following tables: Three Months Ended September 30, 2019 2018 Number of Contracts Recorded Investments Number of Recorded Investments (Dollars in thousands) Commercial business: Commercial and industrial 4 $ 2,056 2 $ 1,742 Non-owner occupied commercial real estate 1 2,971 — — Total commercial business 5 5,027 2 1,742 Total 5 $ 5,027 2 $ 1,742 Nine Months Ended September 30, 2019 2018 Number of Contracts (1) Recorded Investments (1) Number of (1) Recorded Investments (1) (Dollars in thousands) Commercial business: Commercial and industrial 9 $ 3,230 3 $ 2,020 Owner-occupied commercial real estate 2 1,101 1 69 Non-owner occupied commercial real estate 2 3,541 — — Total commercial business 13 7,872 4 2,089 Real estate construction and land development: One-to-four family residential 1 560 2 767 Total 14 $ 8,432 6 $ 2,856 (1) Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-down or charged-off during the nine months ended September 30, 2019 and 2018 . During the three and nine months ended September 30, 2019 , three and 12 TDR loans, respectively, defaulted because each was past its modified maturity date, and the borrower has not subsequently repaid the credits. The Bank has chosen not to extend further the maturity date on these loans. In addition, during both the three and nine months ended September 30, 2019 , two TDR loans defaulted because the borrowers were more than 90 days delinquent on their scheduled loan payments. The Bank had a specific valuation allowance of $412,000 at September 30, 2019 related to these TDR loans which defaulted during the nine months ended September 30, 2019 . During the three and nine months ended September 30, 2018 , two and three TDR loans, respectively, defaulted because each was past its modified maturity date, and the borrower has not subsequently repaid the credits. The Bank had chosen not to extend the maturities on these loans. In addition, during the nine months ended September 30, 2018 , three TDR loans defaulted because the borrowers were more than 90 days delinquent on their scheduled loan payments. The Bank had a specific valuation allowance of $320,000 at September 30, 2018 related to TDR loans which defaulted during the nine months ended September 30, 2018 . (h) Purchased Credit Impaired Loans The following table reflects the outstanding principal balance and recorded investment of the PCI loans at September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Outstanding Principal Recorded Investment Outstanding Principal Recorded Investment (In thousands) Commercial business: Commercial and industrial $ 4,541 $ 2,399 $ 6,319 $ 3,433 Owner-occupied commercial real estate 6,879 6,796 7,830 7,215 Non-owner occupied commercial real estate 7,887 6,267 8,685 7,059 Total commercial business 19,307 15,462 22,834 17,707 One-to-four family residential 3,011 3,505 3,169 3,315 Real estate construction and land development: One-to-four family residential — — 67 380 Five or more family residential and commercial properties — — 188 43 Total real estate construction and land development — — 255 423 Consumer 825 2,101 2,203 3,462 Gross PCI loans $ 23,143 $ 21,068 $ 28,461 $ 24,907 On the acquisition dates, the amount by which the undiscounted expected cash flows of the PCI loans exceeded the estimated fair value of the loan is the “accretable yield.” The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the PCI loans. The following table summarizes the accretable yield on the PCI loans for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended 2019 2018 2019 2018 (In thousands) Balance at the beginning of the period $ 8,572 $ 10,060 $ 9,493 $ 11,224 Accretion (423 ) (644 ) (1,517 ) (2,011 ) Disposal and other (94 ) (164 ) (744 ) (2,136 ) Reclassification from nonaccretable difference — 1,198 823 3,373 Balance at the end of the period $ 8,055 $ 10,450 $ 8,055 $ 10,450 |