Midland States Bancorp (MSBI) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document and Entity Information
Entity Registrant Name	Midland States Bancorp, Inc.
Entity Central Index Key	1,466,026
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		15,789,002
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 217,658	$ 189,543
Federal funds sold	438	1,173
Cash and cash equivalents	218,096	190,716
Investment securities available for sale, at fair value ($0 and $75,979 covered by FDIC loss-share at December 31, 2016 and 2015, respectively)	259,332	246,339
Investment securities held to maturity, at amortized cost (fair value of $81,952 and $92,816 at December 31, 2016 and 2015, respectively)	76,276	78,672
Loans	2,454,950	2,319,976
Allowance for loan losses	(15,805)	(14,862)
Total loans, net	2,439,145	2,305,114
Loans held for sale, at fair value	39,900	70,565
Premises and equipment, net	66,914	66,692
Other real estate owned	3,680	3,560
Nonmarketable equity securities	20,047	19,485
Accrued interest receivable	7,763	8,202
Mortgage servicing rights at lower of cost or market	68,557	68,008
Intangible assets	8,633	7,187
Goodwill	50,807	48,836
Cash surrender value of life insurance policies	74,806	74,226
Accrued income taxes receivable	2,928	5,862
Other assets	36,693	40,259
Total assets	3,373,577	3,233,723
Deposits:
Noninterest-bearing	528,021	562,333
Interest- bearing	1,999,455	1,842,033
Total deposits	2,527,476	2,404,366
Short-term borrowings	124,035	131,557
FHLB advances and other borrowings	250,353	237,518
Subordinated debt	54,532	54,508
Trust preferred debentures	37,496	37,405
Accrued interest payable	1,985	1,045
Deferred tax liabilities, net	8,860	8,598
Other liabilities	34,507	36,956
Total liabilities	3,039,244	2,911,953
Shareholders’ Equity:
Common stock, $0.01 par value; 40,000,000 shares authorized; 15,483,499 and 11,797,404 shares issued and outstanding at December 31, 2016 and 2015, respectively	158	155
Capital surplus	216,498	209,712
Retained earnings	117,874	112,513
Accumulated other comprehensive (loss) income	(197)	(610)
Total shareholders’ equity	334,333	321,770
Total liabilities and shareholders’ equity	$ 3,373,577	$ 3,233,723

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Investment securities held to maturity	$ 79,900	$ 81,952
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	15,780,651	15,483,499
Common stock, shares outstanding	15,780,651	15,483,499

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loans:
Taxable	$ 28,842	$ 23,541
Tax exempt	317	323
Investment securities:
Taxable	1,457	2,902
Tax exempt	912	921
Federal funds sold and cash investments	311	280
Total interest income	31,839	27,967
Interest expense:
Deposits	2,386	2,222
Short-term borrowings	80	68
FHLB advances and other borrowings	566	136
Subordinated debt	873	1,057
Trust preferred debentures	473	443
Total interest expense	4,378	3,926
Net interest income	27,461	24,041
Provision for loan losses	1,533	1,125
Net interest income after provision for loan losses	25,928	22,916
Noninterest income:
Commercial FHA revenue	6,695	6,562
Residential mortgage banking revenue	2,916	1,121
Wealth management revenue	2,872	1,785
Service charges on deposit accounts	892	907
Interchange revenue	977	964
Gain on sales of investment securities, net	67	204
Other-than-temporary impairment on investment securities		(824)
Gain on sales of other real estate owned	36	(4)
Other income	1,875	1,903
Total noninterest income	16,330	12,618
Noninterest expense:
Salaries and employee benefits	17,115	15,387
Occupancy and equipment	3,184	3,310
Data processing	2,796	2,620
FDIC insurance	370	463
Professional	2,992	1,701
Marketing	642	643
Communications	546	516
Loan expense	420	486
Other real estate owned	412	152
Amortization of intangible assets	525	580
Other expense	1,783	1,780
Total noninterest expense	30,785	27,638
Income before income taxes	11,473	7,896
Income taxes	2,983	2,777
Net income available to common shareholders	$ 8,490	$ 5,119
Per common share data:
Basic earnings per common share	$ 0.54	$ 0.43
Diluted earnings per common share	$ 0.52	$ 0.42
Weighted average common shares outstanding	15,736,412	11,957,381
Weighted average diluted common shares outstanding	16,351,637	12,229,293

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 8,490	$ 5,119
Investment securities available for sale:
Unrealized gains (losses) that occurred during the period	768	3,739
Reclassification adjustment for realized net gains on sales of investment securities included in net income	(67)	(204)
Income tax effect	(273)	(1,423)
Change in investment securities available for sale, net of tax	428	2,112
Investment securities held to maturity:
Amortization of unrealized gain on investment securities transferred from available-for-sale	(25)	(26)
Income tax effect	10	10
Change in investment securities held to maturity, net of tax	(15)	(16)
Cash flow hedges:
Change in fair value of interest rate swap		30
Income tax effect		(12)
Change in cash flow hedges, net of tax		18
Other comprehensive (loss) income, net of tax	413	2,114
Total comprehensive income	$ 8,903	$ 7,233

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common stock	Capital surplus	Retained earnings	Accumulated other comprehensive income (loss)	Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle | Adjustments for New Accounting Principle, Early Adoption [Member] | Accounting Standards Update 2016-09 [Member]		$ 87	$ (87)
Beginning Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2015	$ 118	135,822	90,911	$ 6,029	$ 232,880
Beginning Balance at Dec. 31, 2015	118	135,909	90,824	6,029	232,880
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			5,119		5,119
Compensation expense for stock option grants		106			106
Amortization of restricted stock awards		124			124
Common dividends declared			(2,137)		(2,137)
Issuance of common stock under employee benefits plans		180			180
Other comprehensive income (loss)				2,114	2,114
Ending Balance at Mar. 31, 2016	118	136,319	93,806	8,143	238,386
Beginning Balance at Dec. 31, 2016	155	209,712	112,513	(610)	321,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			8,490		8,490
Compensation expense for stock option grants		132			132
Amortization of restricted stock awards		189			189
Common dividends declared			(3,129)		(3,129)
Acquisition of CedarPoint Investment Advisors, Inc.	1	3,712			3,713
Issuance of common stock under employee benefits plans	2	2,753			2,755
Other comprehensive income (loss)				413	413
Ending Balance at Mar. 31, 2017	$ 158	$ 216,498	$ 117,874	$ (197)	$ 334,333

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 8,490	$ 5,119
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,533	1,125
Depreciation on premises and equipment	1,116	1,267
Amortization of intangible assets	525	580
Amortization of restricted stock awards	189	124
Compensation expense for stock option grants	132	106
Increase in cash surrender value of life insurance	(580)	(444)
Investment securities amortization, net	296	252
Other-than-temporary impairment on investment securities		824
Gain on sales of investment securities, net	(67)	(204)
Gain on sales of other real estate owned	(36)	4
Write-down of other real estate owned	171
Origination of loans held for sale	(221,782)	(249,146)
Proceeds from sales of loans held for sale	257,560	205,548
Gain on loans sold and held for sale	(8,627)	(8,885)
Amortization of mortgage servicing rights	1,374	1,281
Impairment (recapture) of mortgage servicing rights	76	2,245
Net change in operating assets and liabilities:
Accrued interest receivable	439	311
Accrued interest payable	940	882
Accrued income taxes receivable / payable	2,934	2,443
Other assets	5,378	(2,071)
Other liabilities	(2,390)	(9,275)
Net cash provided by operating activities	47,671	(47,914)
Investment securities available for sale:
Purchases	(113,222)	(24,882)
Sales	3,058	23,848
Maturities and payments	97,709	8,347
Investment securities held to maturity:
Purchases	(2,486)	(1,980)
Maturities	4,790	1,293
Net increase in loans	(136,525)	(24,061)
Purchases of premises and equipment	(1,319)	(555)
Purchases of nonmarketable equity securities	(4,156)
Sales of nonmarketable equity securities	3,594	90
Proceeds from sales of other real estate owned	540	1,539
Net cash (paid) acquired in acquisitions	12
Net cash (used in) provided by investing activities	(148,005)	(16,361)
Cash flows from financing activities:
Net increase in deposits	123,110	22,062
Net increase (decrease) in short-term borrowings	(7,522)	(5,889)
Proceeds from FHLB borrowings	142,357	300,000
Payments made on FHLB borrowings	(129,857)	(300,000)
Cash dividends paid on common stock	(3,129)	(2,137)
Proceeds from issuance of common stock under employee benefit plans	2,755	180
Net cash provided by (used in) financing activities	127,714	14,216
Net (decrease) increase in cash and cash equivalents	27,380	(50,059)
Cash and cash equivalents:
Beginning of year	190,716	212,475
End of year	218,096	162,416
Cash payments for:
Interest paid on deposits and borrowed funds	3,438	3,044
Income tax paid	5	157
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to other real estate owned	$ 961	$ 1,074

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	3 Months Ended
	Mar. 31, 2017
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION	Note 1 – Midland States Bancorp, Inc. (“the Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Our 136-year old banking subsidiary, Midland States Bank (the “Bank”), has branches across Illinois and in Missouri and Colorado, and provides traditional community banking and other complementary financial services, including lending, residential mortgage origination, wealth management, merchant services and prime consumer lending. We also originate and service government sponsored mortgages for multifamily and healthcare facilities and operate a commercial equipment leasing business on a nationwide basis. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; residential mortgage loan originations, sales and servicing; merchant services; and, from time to time, gains on sales of assets. Our income sources also include Love Funding Corporation’s (“Love Funding”) commercial Federal Housing Administration (“FHA”) loan origination and servicing and Heartland Business Credit Corporation’s (“Business Credit”) interest income on indirect financing leases. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for loan losses and income tax expense. Initial Public Offering On May 24, 2016, we completed our initial public offering and received gross proceeds of $67.0 million for the 3,044,252 shares of common stock sold by us in the offering. On June 6, 2016, we received additional gross proceeds of $12.0 million for the 545,813 shares of common stock sold when the underwriters fully exercised their option to purchase additional shares of common stock. After deducting underwriting discounts and offering expenses, we received total net proceeds of $71.5 million from the initial public offering.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2017. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for the interim periods presented herein, have been included. Certain reclassifications of 2016 amounts have been made to conform to the 2017 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying unaudited consolidated financial statements. The Company operates through its principal wholly owned subsidiary bank, Midland States Bank, headquartered in Effingham, Illinois. The Bank operates through its branch banking offices and principal subsidiaries: Love Funding and Business Credit. Impact of Recently Issued Accounting Standards FASB Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”; FASB ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”; FASB ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”; FASB ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”; FASB ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” – In May 2014, the Financial Accounting Standards Board (the “FASB”) amended existing guidance related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and noninterest income. The Company expects that ASU 2014-09 will require a change in how the Company recognizes certain recurring revenue streams within wealth management and merchant services; however, these changes are not expected to have a significant impact on the Company’s consolidated financial statements. The Company continues to evaluate the impact of ASU 2014-09 on other components of noninterest income and expects to adopt the standard in the first quarter of 2018 with a cumulative effective adjustment to opening retained earnings, if such adjustment is deemed to be significant. FASB ASU 2016-02, “Leases (Topic 842)” – In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) .” This update revises the model to assess how a lease should be classified and provides guidance for lessees and lessors, when presenting right-of-use assets and lease liabilities on the balance sheet. This update is effective for us on January 1, 2019, with early adoption permitted. We have not yet decided whether we will early adopt the new standard. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has developed a project plan for evaluating the provisions of the new lease standard, but has not yet determined the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the pending adoption of ASU 2016-02 and its impact on the Company’s consolidated financial statements. FASB ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” – In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The objective of this update is to improve financial reporting by providing timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better understand their credit loss estimates. For public companies that are filers with the SEC, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted for any organization for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. While the Company generally expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, the Company cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the potential impact on the Company’s consolidated financial statements. FASB ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” – In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which amends FASB Accounting Standards Codification (“ASC”) 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. For public business entities, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to adopt the new guidance in the first quarter of 2017. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. FASB ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” – In March 2017, the FASB issued ASU No. 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date, rather than contractual maturity date as currently required under GAAP. For public business entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to early adopt the new guidance in the first quarter of 2017. Adoption of the ASU did not have a material impact on the Company’s consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2017
ACQUISITIONS
ACQUISITIONS	Note 3 – Acquisitions On March 28, 2017, the Company acquired all of the outstanding capital stock of CedarPoint Investment Advisors, Inc. (“CedarPoint”), an SEC registered investment advisory firm, pursuant to an Agreement and Plan of Merger, dated as of March 15, 2017. CedarPoint had approximately $180.0 million of assets under administration. In consideration for this transaction, the Company issued an aggregate of 120,000 shares of the Company’s common stock for approximately $3.9 million. Of these shares, 18,000 shares will be held in escrow until at least March 31, 2019, to secure the sellers’ obligations to indemnify the Company and its affiliates for certain losses they may suffer in connection with the transaction. Intangible assets recognized as a result of the transaction consisted of approximately $2.0 million in goodwill and $2.0 million in customer relationship intangibles. The customer relationship intangibles are expected to be amortized on a straight-line basis over 10 years. On November 10, 2016, the Bank completed its acquisition of approximately $400.0 million in wealth management assets from Sterling National Bank of Yonkers, New York (“Sterling”) for approximately $5.2 million in cash. Intangible assets recognized as a result of the transaction consisted of approximately $2.3 million in goodwill and $2.3 million in customer relationship intangibles. The customer relationship intangibles are being amortized on a straight-line basis over 20 years. Pending Acquisition at March 31, 2017 On January 26, 2017, the Company announced that it had entered into a definitive agreement to acquire Centrue Financial Corporation (“Centrue”) for estimated total consideration of $175.1 million, or $26.75 per share of Centrue common stock. Centrue, the parent company of Centrue Bank, is headquartered in Ottawa, Illinois, and operates 20 full-service banking centers located principally in northern Illinois. As of March 31, 2017, Centrue had total assets of $975.8 million, net loans of $679.1 million and total deposits of $728.5 million. Under the terms of the definitive agreement, upon consummation of the transaction, holders of Centrue common stock will have the right to receive a fixed exchange ratio of 0.7604 shares of the Company’s common stock, $26.75 in cash, or a combination of cash and stock for each share of Centrue common stock they own, subject to proration so that, in the aggregate, 65% of Centrue’s common stock is exchanged for Company common stock and 35% of Centrue’s common stock is exchanged for cash, and subject to potential adjustment based on Centrue’s adjusted stockholders’ equity at closing. Based on an assumed value of $35.18 per share of Midland common stock, the Company estimates the value of the total consideration will be $175.1 million, although the actual value of the total consideration will be higher or lower to the extent the trading price of Company common stock at closing differs from $35.18 per share. For purposes of determining the exchange ratio, the transaction utilizes the Company’s 10-day volume-weighted average stock price through January 13, 2017, or $35.18 per share. In addition, holders of Centrue preferred stock will have the right to receive newly issued shares of the Company’s preferred stock having similar terms. The transaction is expected to close in mid-2017, subject to regulatory approvals, the approval of Centrue’s and the Company’s shareholders, and the satisfaction of customary closing conditions.

INVESTMENT SECURITIES AVAILABLE

INVESTMENT SECURITIES AVAILABLE FOR SALE	3 Months Ended
	Mar. 31, 2017
Available for sale
Schedule of Available-for-sale Securities [Line Items]
Investment securities	Note 4 – Investment Securities Available for Sale Investment securities classified as available for sale as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, 2017 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Treasury securities $ 45,973 $ — $ 67 $ 45,906 Government sponsored entity debt securities 7,412 72 7 7,477 Agency mortgage-backed securities 124,459 430 1,028 123,861 State and municipal securities 31,516 77 359 31,234 Corporate securities 50,457 561 164 50,854 Total $ 259,817 $ 1,140 $ 1,625 $ 259,332 December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Treasury securities $ 75,973 $ — $ 72 $ 75,901 Government sponsored entity debt securities 7,653 57 22 7,688 Agency mortgage-backed securities 90,629 373 932 90,070 Non-agency mortgage-backed securities 1 — — 1 State and municipal securities 25,826 15 567 25,274 Corporate securities 47,443 403 441 47,405 Total $ 247,525 $ 848 $ 2,034 $ 246,339 Unrealized losses and fair values for investment securities available for sale as of March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows (in thousands): March 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss U.S. Treasury securities $ 45,906 $ 67 $ — $ — $ 45,906 $ 67 Government sponsored entity debt securities 1,595 7 — — 1,595 7 Agency mortgage-backed securities 80,160 1,028 — — 80,160 1,028 State and municipal securities 18,863 359 — — 18,863 359 Corporate securities 3,030 41 6,835 123 9,865 164 Total $ 149,554 $ 1,502 $ 6,835 $ 123 $ 156,389 $ 1,625 December 31, 2016 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss U.S. Treasury securities $ 75,901 $ 72 $ — $ — $ 75,901 $ 72 Government sponsored entity debt securities 4,107 22 — — 4,107 22 Agency mortgage-backed securities 57,882 930 402 2 58,284 932 State and municipal securities 20,215 567 — — 20,215 567 Corporate securities 11,111 334 8,312 107 19,423 441 Total $ 169,216 $ 1,925 $ 8,714 $ 109 $ 177,930 $ 2,034 For all of the above investment securities, the unrealized losses are generally due to changes in interest rates and continued financial market stress, and unrealized losses are considered to be temporary. We evaluate securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, at a minimum, and more frequently when economic or market concerns warrant such evaluation. In estimating OTTI losses, we consider the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. At March 31, 2017 and December 31, 2016, 95 and 107 investment securities available for sale, respectively, had unrealized losses with aggregate depreciation of 1.03% and 1.13%, respectively, from their amortized cost basis. The unrealized losses relate principally to the fluctuations in the current interest rate environment. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. As we have the intent and ability to hold debt securities for a period of time sufficient for a recovery in value, no declines are deemed to be other-than-temporary. For the three months ended March 31, 2017 and 2016, the Company recognized $0 and $824,000, respectively, of OTTI on its investment securities available for sale. The following is a summary of the amortized cost and fair value of investment securities available for sale, by maturity, at March 31, 2017 (in thousands). The maturities of agency mortgage-backed securities are based on expected maturities. Expected maturities may differ from contractual maturities in mortgage‑backed securities because the mortgages underlying the securities may be prepaid without any penalties. The maturities of all other investment securities available for sale are based on final contractual maturity. Amortized Fair cost value Within one year $ 45,334 $ 45,302 After one year through five years 114,365 114,258 After five years through ten years 82,079 82,070 After ten years 18,039 17,702 Subtotal $ 259,817 $ 259,332 Gross realized gains from the sale of securities available for sale were $67,000 and $204,000 for the three months ended March 31, 2017 and 2016, respectively. There were no gross realized losses for the three months ended March 31, 2017 or 2016.

INVESTMENT SECURITIES HELD TO M

INVESTMENT SECURITIES HELD TO MATURITY	3 Months Ended
	Mar. 31, 2017
Held to maturity
Schedule of Held-to-maturity Securities [Line Items]
Investment securities	Note 5 – Investment Securities Held to Maturity Investment securities classified as held to maturity as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, 2017 Gross Gross Amortized unrealized unrealized Fair cost gains losses value State and municipal securities $ 76,276 $ 3,792 $ 168 $ 79,900 December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value State and municipal securities $ 78,672 $ 3,517 $ 237 $ 81,952 Unrealized losses and fair value for investment securities held to maturity as of March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows (in thousands): March 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss State and municipal securities $ 7,074 $ 83 $ 2,754 $ 85 $ 9,828 $ 168 December 31, 2016 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss State and municipal securities $ 13,991 $ 140 $ 2,699 $ 97 $ 16,690 $ 237 For all of the above investment securities, the unrealized losses are generally due to changes in interest rates and continued financial market stress and unrealized losses are considered to be temporary. We evaluate securities for OTTI on a quarterly basis, at a minimum, and more frequently when economic or market concerns warrant such evaluation. In estimating OTTI losses, we consider the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. At March 31, 2017 and December 31, 2016, 31 and 47 investment securities held to maturity, respectively, had unrealized losses with aggregate depreciation of 1.68% and 1.40%, respectively, from their amortized cost basis. The unrealized losses relate principally to the fluctuations in the current interest rate environment. In analyzing an issuer’s financial condition, we consider who issued the securities and whether downgrades by bond rating agencies have occurred. As we have the intent and ability to hold debt securities for the foreseeable future, no declines are deemed to be other-than-temporary. The amortized cost and fair value of investment securities held to maturity as of March 31, 2017, by contractual maturity, are as follows (in thousands): Amortized Fair cost value Within one year $ 772 $ 777 After one year through five years 20,422 21,072 After five years through ten years 36,395 38,870 After ten years 18,687 19,181 Total $ 76,276 $ 79,900

LOANS

LOANS	3 Months Ended
	Mar. 31, 2017
LOANS
LOANS	Note 6 – Loans The following table presents total loans outstanding by portfolio, which includes purchased credit impaired (“PCI”) loans, as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Loans: Commercial $ 475,408 $ 457,827 Commercial real estate 997,200 969,615 Construction and land development 171,047 177,325 Total commercial loans 1,643,655 1,604,767 Residential real estate 277,402 253,713 Consumer 337,081 270,017 Lease financing 196,812 191,479 Total loans $ 2,454,950 $ 2,319,976 Total loans include net deferred loan fees of $2.9 million and $3.1 million at March 31, 2017 and December 31, 2016, respectively, and unearned discounts of $20.8 million and $20.7 million within the lease financing portfolio at March 31, 2017 and December 31, 2016, respectively. At March 31, 2017 and December 31, 2016, the Company had commercial and residential loans held for sale totaling $39.9 million and $70.6 million, respectively. During the three months ended March 31, 2017 and 2016, the Company sold commercial and residential real estate loans with proceeds totaling $257.6 million and $205.5 million, respectively. The Company monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Company monitors the performance of its loan portfolio and estimates its allowance for loan losses. Commercial —Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment. Commercial real estate —Loans secured by real estate occupied by the borrower for ongoing operations, including loans to borrowers engaged in agricultural production, and non-owner occupied real estate leased to one or more tenants, including commercial office, industrial, special purpose, retail and multi-family residential real estate loans. Construction and land development —Secured loans for the construction of business and residential properties. Real estate construction loans often convert to a commercial real estate loan at the completion of the construction period. Secured development loans are made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Interest reserves may be established on real estate construction loans. Residential real estate —Loans secured by residential properties that generally do not qualify for secondary market sale; however, the risk to return and/or overall relationship are considered acceptable to the Company. This category also includes loans whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. Consumer —Loans to consumers primarily for the purpose of home improvements and acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers. Lease financing —Indirect financing leases to small businesses for purchases of business equipment. All indirect financing leases require monthly payments, and the weighted average maturity of our leases is less than four years. Commercial, commercial real estate, and construction and land development loans are collectively referred to as the Company’s commercial loan portfolio, while residential real estate and consumer loans and lease financing receivables are collectively referred to as the Company’s other loan portfolio. We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon normal terms, including collateralization and interest rates prevailing at the time, and did not involve more than the normal risk of repayment by the borrower. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates totaled $24.9 million and $26.5 million at March 31, 2017 and December 31, 2016, respectively. During the three months ended March 31, 2017, there were $751,000 of new loans and other additions, while repayments and other reductions totaled $2.4 million. Credit Quality Monitoring The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. Our equipment leasing business, based in Denver, provides financing to business customers across the country. The Company has a loan approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Company’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities. The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Company’s Consumer Collections Group for resolution. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. Loans in the commercial loan portfolio tend to be larger and more complex than those in the other loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various individuals within the Company at least quarterly. The Company maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Company also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Company. Credit Quality Indicators The Company uses a ten grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, and coverage and payment behavior as shown in the borrower’s financial statements. The risk grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. The Company considers all loans with Risk Grades of 1 – 6 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans with Risk Grades of 7 are considered “watch credits” and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans with Risk Grades of 8 – 10 are considered problematic and require special care. Further, loans with Risk Grades of 7 – 10 are managed and monitored regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Company, which includes highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Company’s special assets group. Loans not graded in the commercial loan portfolio are small loans that are monitored by aging status and payment activity. The following table presents the recorded investment of the commercial loan portfolio (excluding PCI loans) by risk category as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Commercial Construction Commercial Construction Real and Land Real and Land Commercial Estate Development Total Commercial Estate Development Total Acceptable credit quality $ 454,561 $ 954,766 $ 160,801 $ 1,570,128 $ 426,560 $ 925,244 $ 159,702 $ 1,511,506 Special mention 2,593 7,042 — 9,635 10,930 8,735 — 19,665 Substandard 11,798 11,186 — 22,984 12,649 21,178 450 34,277 Substandard – nonaccrual 3,943 17,276 20 21,239 3,559 7,145 21 10,725 Doubtful — — — — — — — — Not graded 680 1,321 6,157 8,158 612 1,593 5,002 7,207 Total (excluding PCI) $ 473,575 $ 991,591 $ 166,978 $ 1,632,144 $ 454,310 $ 963,895 $ 165,175 $ 1,583,380 The Company evaluates the credit quality of its other loan portfolio based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, any loan past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be impaired for purposes of credit quality evaluation. The following table presents the recorded investment of our other loan portfolio (excluding PCI loans) based on the credit risk profile of loans that are performing and loans that are impaired as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Residential Lease Residential Lease Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 266,884 $ 336,503 $ 196,130 $ 799,517 $ 242,127 $ 269,492 $ 190,148 $ 701,767 Impaired 4,288 260 682 5,230 5,029 213 1,331 6,573 Total (excluding PCI) $ 271,172 $ 336,763 $ 196,812 $ 804,747 $ 247,156 $ 269,705 $ 191,479 $ 708,340 Impaired Loans Impaired loans include loans on nonaccrual status, any loan past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings. Impaired loans at March 31, 2017 and December 31, 2016 do not include $18.1 million and $28.3 million, respectively, of PCI loans. The risk of credit loss on acquired loans was recognized as part of the fair value adjustment at the acquisition date. A summary of impaired loans (excluding PCI loans) as of March 31, 2017 and December 31, 2016 is as follows (in thousands): March 31, December 31, 2017 2016 Nonaccrual loans: Commercial $ 3,943 $ 3,559 Commercial real estate 17,276 7,145 Construction and land development 19 21 Residential real estate 4,288 4,629 Consumer 231 187 Lease financing 682 1,330 Total nonaccrual loans 26,439 16,871 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial — 2,378 Commercial real estate — — Construction and land development 394 — Residential real estate — — Consumer 29 26 Lease financing — 1 Total accruing loans contractually past due 90 days or more as to interest or principal payments 423 2,405 Loans modified under troubled debt restructurings: Commercial 357 611 Commercial real estate 1,255 11,253 Construction and land development 62 63 Residential real estate 397 400 Consumer — — Lease financing — — Total loans modified under troubled debt restructurings 2,071 12,327 Total impaired loans (excluding PCI) $ 28,933 $ 31,603 There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2017 and 2016 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $148,000 and $123,000 for the three months ended March 31, 2017 and 2016, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $18,000 and $45,000 for the three months ended March 31, 2017 and 2016, respectively. The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Unpaid Related Unpaid Related Recorded Principal Valuation Recorded Principal Valuation Investment Balance Allowance Investment Balance Allowance Impaired loans with a valuation allowance: Commercial $ 3,550 $ 5,158 $ 1,364 $ 3,877 $ 3,888 $ 882 Commercial real estate 2,527 3,541 680 2,142 2,331 309 Construction and land development 81 82 8 84 84 8 Residential real estate 3,429 4,178 578 3,735 4,404 604 Consumer 235 241 31 213 190 23 Lease financing 197 197 238 1,331 1,331 356 Total impaired loans with a valuation allowance 10,019 13,397 2,899 11,382 12,228 2,182 Impaired loans with no related valuation allowance: Commercial 750 804 — 2,671 7,567 — Commercial real estate 16,004 16,260 — 16,256 17,058 — Construction and land development 394 393 — — — — Residential real estate 1,256 1,446 — 1,294 1,462 — Consumer 25 26 — — 26 — Lease financing 485 485 — — — — Total impaired loans with no related valuation allowance 18,914 19,414 — 20,221 26,113 — Total impaired loans: Commercial 4,300 5,962 1,364 6,548 11,455 882 Commercial real estate 18,531 19,801 680 18,398 19,389 309 Construction and land development 475 475 8 84 84 8 Residential real estate 4,685 5,624 578 5,029 5,866 604 Consumer 260 267 31 213 216 23 Lease financing 682 682 238 1,331 1,331 356 Total impaired loans (excluding PCI) $ 28,933 $ 32,811 $ 2,899 $ 31,603 $ 38,341 $ 2,182 The difference between a loan’s recorded investment and the unpaid principal balance represents: (1) a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan’s principal balance and management’s assessment that the full collection of the loan balance is not likely and/or (2) payments received on nonaccrual loans that are fully applied to principal on the loan’s recorded investment as compared to being applied to principal and interest on the unpaid customer principal and interest balance. The difference between the recorded investment and the unpaid principal balance on loans was $3.9 million and $6.7 million at March 31, 2017 and December 31, 2016, respectively. The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the three months ended March 31, 2017 and 2016 are included in the table below (in thousands): Three Months Ended March 31, 2017 2016 Interest Income Interest Income Average Recognized Average Recognized Recorded While on Recorded While on Investment Impaired Status Investment Impaired Status Impaired loans with a valuation allowance: Commercial $ 3,532 $ 1 $ 362 $ — Commercial real estate 2,845 17 1,333 — Construction and land development 82 1 68 — Residential real estate 3,494 4 3,604 — Consumer 278 — 35 — Lease financing 197 — 983 — Total impaired loans with a valuation allowance 10,428 23 6,385 — Impaired loans with no related valuation allowance: Commercial 828 — 5,572 — Commercial real estate 16,085 — 10,377 45 Construction and land development 394 — 82 1 Residential real estate 1,271 — 1,258 5 Consumer 25 — 5 — Lease financing 485 — — — Total impaired loans with no related valuation allowance 19,088 — 17,294 51 Total impaired loans: Commercial 4,360 1 5,934 — Commercial real estate 18,930 17 11,710 45 Construction and land development 476 1 150 1 Residential real estate 4,765 4 4,862 5 Consumer 303 — 40 — Lease financing 682 — 983 — Total impaired loans (excluding PCI) $ 29,516 $ 23 $ 23,679 $ 51 The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of March 31, 2017 (in thousands): Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total Past Due Past Due or More Loans Past Due Current Loans Commercial $ 2,766 $ 3,555 $ — $ 3,943 $ 10,264 $ 463,311 $ 473,575 Commercial real estate 608 700 — 17,276 18,584 973,007 991,591 Construction and land development 50 — 394 19 463 166,515 166,978 Residential real estate 2,358 503 — 4,288 7,149 264,023 271,172 Consumer 2,092 1,104 29 231 3,456 333,307 336,763 Lease financing 339 — — 682 1,021 195,791 196,812 Total (excluding PCI) $ 8,213 $ 5,862 $ 423 $ 26,439 $ 40,937 $ 2,395,954 $ 2,436,891 The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2016 (in thousands): Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total Past Due Past Due or More Loans Past Due Current Loans Commercial $ 3,326 $ 138 $ 2,378 $ 3,559 $ 9,401 $ 444,909 $ 454,310 Commercial real estate 648 787 — 7,145 8,580 955,315 963,895 Construction and land development — — — 21 21 165,154 165,175 Residential real estate 3,472 13 — 4,629 8,114 239,042 247,156 Consumer 1,701 588 26 187 2,502 267,203 269,705 Lease financing 94 — 1 1,330 1,425 190,054 191,479 Total (excluding PCI) $ 9,241 $ 1,526 $ 2,405 $ 16,871 $ 30,043 $ 2,261,677 $ 2,291,720 Troubled Debt Restructurings A loan is categorized as a troubled debt restructuring (“TDR”) if a concession is granted to provide for a reduction of either interest or principal due to deterioration in the financial condition of the borrower. TDRs can take the form of a reduction of the stated interest rate, splitting a loan into separate loans with market terms on one loan and concessionary terms on the other loans, receipts of assets from a debtor in partial or full satisfaction of a loan, the extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk, the reduction of the face amount or maturity of the debt as stated in the instrument or other agreement, the reduction of accrued interest, the release of a personal guarantee in a bankruptcy situation or any other concessionary type of renegotiated debt. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. Loans modified as TDRs for commercial and commercial real estate loans generally consist of allowing commercial borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans’ contractual terms. TDRs that continue to accrue interest and are greater than $50,000 are individually evaluated for impairment, on a quarterly basis, and transferred to nonaccrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default. The allowance for loan losses on TDRs totaled $198,000 and $136,000 as of March 31, 2017 and December 31, 2016, respectively. The Company had no unfunded commitments in connection with TDRs at March 31, 2017 and December 31, 2016. The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio (excluding PCI loans) as of March 31, 2017 and December 31, 2016 (in thousands): The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio (excluding PCI loans) as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 357 $ — $ 357 $ 611 $ — $ 611 Commercial real estate 1,255 14,905 16,160 11,253 5,098 16,351 Construction and land development 62 — 62 63 — 63 Residential real estate 397 559 956 400 527 927 Consumer — — — — — — Lease financing — — — — — — Total loans (excluding PCI) $ 2,071 $ 15,464 $ 17,535 $ 12,327 $ 5,625 $ 17,952 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2017 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2017 (dollars in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2017: Troubled debt restructurings: Number of loans 1 — — — — — 1 Pre-modification outstanding balance $ 362 $ — $ — $ — $ — $ — $ 362 Post-modification outstanding balance 353 — — — — — 353 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2016 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2016 (dollars in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2016: Troubled debt restructurings: Number of loans — — — — — — — Pre-modification outstanding balance $ — $ — $ — $ — $ — $ — $ — Post-modification outstanding balance — — — — — — — Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — Allowance for Loan Losses The Company’s loan portfolio is principally comprised of commercial, commercial real estate, construction and land development, residential real estate and consumer loans and lease financing receivables. The principal risks to each category of loans are as follows: Commercial – The principal risk of commercial loans is that these loans are primarily made based on the identified cash flow of the borrower and secondarily on the collateral underlying the loans. Most often, this collateral consists of accounts receivable, inventory and equipment. Inventory and equipment may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. If the cash flow from business operations is reduced, the borrower’s ability to repay the loan may be impaired. As such, repayment of such loans is often more sensitive than other types of loans to adverse conditions in the general economy. Commercial real estate – As with commercial loans, repayment of commercial real estate loans is often dependent on the borrower’s ability to make repayment from the cash flow of the commercial venture. While commercial real estate loans are collateralized by the borrower’s underlying real estate, foreclosure on such assets may be more difficult than with other types of collateralized loans because of the possible effect the foreclosure would have on the borrower’s business, and property values may tend to be partially based upon the value of the business situated on the property. Construction and land development – Construction and land development lending involves additional risks not generally present in other types of lending because funds are advanced upon the estimated future value of the project, which is uncertain prior to its completion and at the time the loan is made, and costs may exceed realizable values in declining real estate markets. Moreover, if the estimate of the value of the completed project proves to be overstated or market values or rental rates decline, the collateral may prove to be inadequate security for the repayment of the loan. Additional funds may also be required to complete the project, and the project may have to be held for an unspecified period of time before a disposition can occur. Residential real estate – The principal risk to residential real estate lending is associated with residential loans not sold into the secondary market. In such cases, the value of the underlying property may have deteriorated as a result of a change in the residential real estate market, and the borrower may have little incentive to repay the loan or continue living in the property. Additionally, in areas with high vacancy rates, reselling the property without substantial loss may be difficult. Consumer – The repayment of consumer loans is typically dependent on the borrower remaining employed through the life of the loan, as well as the possibility that the collateral underlying the loan may not be adequately maintained by the borrower. Lease financing – Our indirect financing leases are primarily for business equipment leased to varying types of small businesses. If the cash flow from business operations is reduced, the business’s ability to repay may become impaired. Changes in the allowance for loan losses for the three months ended March 31, 2017 and 2016 are as follows (in thousands): Three Months Ended March 31, 2017 2016 Non-PCI PCI Non-PCI PCI Loans Loans Total Loans Loans Total Balance at beginning of period $ 13,744 $ 1,118 $ 14,862 $ 14,093 $ 1,895 $ 15,988 Provision for loan losses 1,405 128 1,533 1,083 42 1,125 Loan charge-offs (1,167) — (1,167) (2,696) — (2,696) Loan recoveries 519 58 577 128 26 154 Net loan (charge-offs) recoveries (648) 58 (590) (2,568) 26 (2,542) Balance at end of period $ 14,501 $ 1,304 $ 15,805 $ 12,608 $ 1,963 $ 14,571 The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three months ended March 31, 2017 and 2016 (in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total Changes in allowance for loan losses for the three months ended March 31, 2017: Beginning balance $ 5,920 $ 3,225 $ 345 $ 2,929 $ 930 $ 1,513 $ 14,862 Provision for loan losses 70 821 92 30 482 38 1,533 Charge-offs (9) (296) — (172) (176) (514) (1,167) Recoveries 53 180 23 55 48 218 577 Ending balance $ 6,034 $ 3,930 $ 460 $ 2,842 $ 1,284 $ 1,255 $ 15,805 Changes in allowance for loan losses for the three months ended March 31, 2016: Beginning balance $ 6,917 $ 5,179 $ 435 $ 2,120 $ 749 $ 588 $ 15,988 Provision for loan losses 657 (196) (99) 262 35 466 1,125 Charge-offs (2,260) (139) — (100) (65) (132) (2,696) Recoveries 39 39 9 43 23 1 154 Ending balance $ 5,353 $ 4,883 $ 345 $ 2,325 $ 742 $ 923 $ 14,571 The following table represents, by loan portfolio, details regarding the balance in the allowance for loan losses and the recorded investment in loans as of March 31, 2017 and December 31, 2016 by impairment evaluation method (in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total March 31, 2017: Allowance for loan losses: Loans individually evaluated for impairment $ 1,343 $ 659 $ 6 $ 365 $ 3 $ 185 $ 2,561 Loans collectively evaluated for impairment 21 21 2 213 28 53 338 Non-impaired loans collectively evaluated for impairment 4,177 3,010 452 1,852 1,094 1,017 11,602 Loans acquired with deteriorated credit quality (1) 493 240 — 412 159 — 1,304 Total allowance for loan losses $ 6,034 $ 3,930 $ 460 $ 2,842 $ 1,284 $ 1,255 $ 15,805 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 4,105 $ 18,336 $ 455 $ 2,728 $ 3 $ 197 $ 25,824 Impaired loans collectively evaluated for impairment 195 195 20 1,957 257 485 3,109 Non-impaired loans collectively evaluated for impairment 469,275 973,060 166,503 266,487 336,503 196,130 2,407,958 Loans acquired with deteriorated credit quality (1) 1,833 5,609 4,069 6,230 318 — 18,059 Total recorded investment (loan balance) $ 475,408 $ 997,200 $ 171,047 $ 277,402 $ 337,081 $ 196,812 $ 2,454,950 December 31, 2016: Allowance for loan losses: Loans individually evaluated for impairment $ 878 $ 296 $ 6 $ 379 $ — $ 285 $ 1,844 Loans collectively evaluated for impairment 4 13 2 225 23 71 338 Non-impaired loans collectively evaluated for impairment 4,539 2,684 337 1,968 877 1,157 11,562 Loans acquired with deteriorated credit quality (1) 499 232 — 357 30 — 1,118 Total allowance for loan losses $ 5,920 $ 3,225 $ 345 $ 2,929 $ 930 $ 1,513 $ 14,862 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 6,504 $ 18,275 $ 63 $ 2,920 $ — $ 670 $ 28,432 Impaired loans collectively evaluated for impairment 44 123 21 2,109 213 661 3,171 Non-impaired loans collectively evaluated for impairment 447,762 945,497 165,091 242,127 269,492 190,148 2,260,117 Loans acquired with deteriorated credit quality (1) 3,517 5,720 12,150 6,557 312 — 28,256 Total recorded investment (loan balance) $ 457,827 $ 969,615 $ 177,325 $ 253,713 $ 270,017 $ 191,479 $ 2,319,976 (1) Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date and the risk of credit loss was recognized at that date based on estimates of expected cash flows. Purchased Credit Impaired Loans Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan losses. PCI loans are purchased loans that have evidence of credit deterioration since origination, and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. Evidence of credit quality deterioration as of the purchase date may include factors such as past due and nonaccrual status. The difference between contractually required principal and interest at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. Subsequent decreases to the expected cash flows will generally result in impairment, which is recorded as provision for loan losses in the consolidated statements of income. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from non-accretable to accretable with a positive impact on interest income. Further, any excess cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. Changes in the accretable yield for PCI loans were as follows for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 9,035 $ 10,526 Accretion (2,243) (1,041) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) 9 — Reclassification from non-accretable 2,032 282 Balance at end of period $ 8,833 $ 9,767 The fair value of PCI loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The carrying amount of Non-PCI loans and PCI loans as of March 31, 2017 and December 31, 2016 were as follows (in thousands): March 31, 2017 December 31, 2016 Non-PCI PCI Non-PCI PCI Loans Loans Total Loans Loans Total Commercial $ 473,575 $ 1,833 $ 475,408 $ 454,310 $ 3,517 $ 457,827 Commercial real estate 991,591 5,609 997,200 963,895 5,720 969,615 Construction and land development 166,978 4,069 171,047 165,175 12,150

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	3 Months Ended
	Mar. 31, 2017
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS	Note 7 – Mortgage Servicing Rights At March 31, 2017 and December 31, 2016, the Company serviced mortgage loans for others totaling $5.69 billion and $5.64 billion, respectively. A summary of mortgage loans serviced for others as of March 31, 2017 and December 31, 2016 is as follows (in thousands): March 31, December 31, 2017 2016 Commercial FHA mortgage loans $ 3,860,180 $ 3,811,066 Residential mortgage loans 1,828,223 1,833,443 Total loans serviced for others $ 5,688,403 $ 5,644,509 Changes in our mortgage servicing rights were as follows for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Mortgage servicing rights: Balance at beginning of period $ 71,710 $ 67,218 Servicing rights capitalized – commercial FHA mortgage loans 1,481 1,702 Servicing rights capitalized – residential mortgage loans 518 659 Amortization – commercial FHA mortgage loans (639) (567) Amortization – residential mortgage loans (735) (714) Balance at end of period 72,335 68,298 Valuation allowances: Balance at beginning of period 3,702 567 Additions 188 2,245 Reductions (112) — Balance at end of period 3,778 2,812 Mortgage servicing rights, net $ 68,557 $ 65,486 Fair value: At beginning of period $ 68,008 $ 66,700 At end of period $ 68,557 $ 65,486 The following table is a summary of key assumptions, representing both general economic and other published information and the weighted average characteristics of the commercial and residential portfolios, used in the valuation of servicing rights at March 31, 2017 and December 31, 2016. Assumptions used in the prepayment rate consider many factors as appropriate, including lockouts, balloons, prepayment penalties, interest rate ranges, delinquencies and geographic location. The discount rate is based on an average pre‑tax internal rate of return utilized by market participants in pricing the servicing portfolios. Significant increases or decreases in any one of these assumptions would result in a significantly lower or higher fair value measurement. Remaining Servicing Interest Years to Prepayment Servicing Discount Fee Rate Maturity Rate Cost Rate March 31, 2017: Commercial FHA mortgage loans 0.13 % 3.70 % 30.0 8.29 % $ 1,000 10 - 13 % Residential mortgage loans 0.26 % 3.89 % 24.1 9.66 % $ 61 9 - 11 % December 31, 2016: Commercial FHA mortgage loans 0.13 % 3.72 % 30.2 8.31 % $ 1,000 10 - 13 % Residential mortgage loans 0.26 % 3.89 % 24.2 9.72 % $ 60 9 - 11 % We recognize revenue from servicing commercial FHA and residential mortgages as earned based on the specific contractual terms. This revenue, along with amortization of and changes in impairment on servicing rights, is reported in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Mortgage servicing rights do not trade in an active market with readily observable prices. The fair value of mortgage servicing rights and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured residential and commercial mortgages and conventional residential mortgages. T he fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, cost to service, contractual servicing fee income, ancillary income, late fees , replacement reserves and other economic factors that are determined based on current market conditions.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	Note 8 – Goodwill and Intangible Assets At March 31, 2017 and December 31, 2016, goodwill totaled $50.8 million and $48.8 million, respectively, reflecting an increase of approximately $2.0 million as a result of the acquisition of CedarPoint, as further discussed in Note 3 to the consolidated financial statements. The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of March 31, 2017 and December 31, 2016 are summarized as follows (in thousands): March 31, 2017 December 31, 2016 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 20,542 $ (16,575) $ 3,967 $ 20,542 $ (16,181) $ 4,361 Customer relationship intangibles 7,442 (2,776) 4,666 5,471 (2,645) 2,826 Total intangible assets $ 27,984 $ (19,351) $ 8,633 $ 26,013 $ (18,826) $ 7,187 In conjunction with the acquisition of CedarPoint on March 28, 2017, we recorded $2.0 million of customer relationship intangibles, which are expected to be amortized on a straight-line basis over 10 years, as further discussed in Note 3 to the consolidated financial statements. Amortization of intangible assets was $525,000 and $580,000 for the three months ended March 31, 2017 and 2016, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	Note 9 – Derivative Instruments As part of the Company’s overall management of interest rate sensitivity, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments and forward commitments to sell mortgage-backed securities. Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities Derivative instruments issued by the Company consist of interest rate lock commitments to originate fixed-rate loans to be sold. Commitments to originate fixed-rate loans consist of commercial and residential real estate loans. The interest rate lock commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities. The fair value of the interest rate lock commitments and forward contracts to sell mortgage-backed securities are included in other assets or other liabilities in the consolidated balance sheets. Changes in the fair value of derivative financial instruments are recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount, estimated fair values and the location in which the derivative instruments are reported in the consolidated balances sheets at March 31, 2017 and December 31, 2016 (in thousands): Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, 2017 2016 2017 2016 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 338,184 $ 264,359 $ 8,023 $ 6,253 Forward commitments to sell mortgage-backed securities — 301,788 — 125 Total $ 338,184 $ 566,147 $ 8,023 $ 6,378 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, 2017 2016 2017 2016 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 354,405 $ — $ 140 $ — Net gains recognized on derivative instruments were $1.5 million and $1.2 million for the three months ended March 31, 2017 and 2016, respectively. Net gains on derivative instruments were recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2017
Deposits [Abstract]
DEPOSITS	Note 10 – Deposits The following table summarizes the classification of deposits as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Noninterest-bearing demand $ 528,021 $ 562,333 Interest-bearing: Checking 751,193 656,248 Money market 415,322 399,851 Savings 169,715 166,910 Time 663,225 619,024 Total deposits $ 2,527,476 $ 2,404,366

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	3 Months Ended
	Mar. 31, 2017
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS	Note 11 – Short-Term Borrowings The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended March 31, 2017 and December 31, 2016 (in thousands): Repurchase Agreements March 31, December 31, 2017 2016 Outstanding at period-end $ 124,035 $ 131,557 Average amount outstanding 143,583 130,228 Maximum amount outstanding at any month end 152,813 168,369 Weighted average interest rate: During period 0.23 % 0.23 % End of period 0.22 % 0.21 % At March 31, 2017, the Bank had federal funds lines of credit totaling $30.0 million. These lines of credit were unused at March 31, 2017. Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction, which represents the amount of the Bank’s obligation. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. Investment securities with a carrying amount of $132.4 million and $140.0 million at March 31, 2017 and December 31, 2016, respectively, were pledged for securities sold under agreements to repurchase. The Bank had lines of credit of $28.6 million and $35.1 million at March 31, 2017 and December 31, 2016, respectively, from the Federal Reserve Discount Window. The lines are collateralized by a collateral agreement with respect to a pool of commercial real estate loans totaling $31.0 million and $43.3 million at March 31, 2017 and December 31, 2016, respectively. There were no outstanding borrowings at March 31, 2017 and December 31, 2016.

FHLB ADVANCES AND OTHER BORROWI

FHLB ADVANCES AND OTHER BORROWINGS	3 Months Ended
	Mar. 31, 2017
FHLB ADVANCES AND OTHER BORROWINGS
FHLB ADVANCES AND OTHER BORROWINGS	Note 12 – FHLB Advances and Other Borrowings The following table summarizes our Federal Home Loan Bank (“FHLB”) advances and other borrowings as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 FHLB advances – fixed rate, fixed term, at rates averaging 1.05% and 0.89%, respectively, at March 31, 2017 and December 31, 2016, respectively – maturing through August 2023 $ 250,000 $ 237,500 Other 353 18 Total FHLB advances and other borrowings $ 250,353 $ 237,518 The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling approximately $1.24 billion and $1.18 billion at March 31, 2017 and December 31, 2016, respectively.

SUBORDINATED DEBT

SUBORDINATED DEBT	3 Months Ended
	Mar. 31, 2017
SUBORDINATED DEBT
SUBORDINATED DEBT	Note 13 – Subordinated Debt The following table summarizes the Company’s subordinated debt as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Subordinated debt issued June 2015 – fixed interest rate of 6.00% for the first five years through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, $40,325 maturing June 18, 2025 $ 39,747 $ 39,729 Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $15,000 maturing June 18, 2025 14,785 14,779 Total subordinated debt $ 54,532 $ 54,508

TRUST PREFERRED DEBENTURES

TRUST PREFERRED DEBENTURES	3 Months Ended
	Mar. 31, 2017
TRUST PREFERRED DEBENTURES.
TRUST PREFERRED DEBENTURES	Note 14 – Trust Preferred Debentures The following table summarizes the Company’s trust preferred debentures as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 3.89% and 3.74%, at March 31, 2017 and December 31, 2016, respectively – $3,000 maturing January 23, 2034 $ 2,012 $ 1,996 Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 3.79% and 3.63% at March 31, 2017 and December 31, 2016, respectively – $10,000 maturing April 23, 2034 9,957 9,957 Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 2.88% and 2.71% at March 31, 2017 and December 31, 2016, respectively – $20,000 maturing December 31, 2036 13,178 13,141 Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 2.57% and 2.42% at March 31, 2017 and December 31, 2016, respectively – $20,000 maturing September 6, 2037 12,349 12,311 Total trust preferred debentures $ 37,496 $ 37,405

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2017
Per common share data
EARNINGS PER SHARE	Note 15 – Earnings Per Share Earnings per share are calculated utilizing the two‑class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards using the treasury stock method (outstanding stock options and unvested restricted stock), convertible preferred stock and convertible subordinated debt. Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2017 and 2016 (dollars in thousands, except per share data): Three Months Ended March 31, 2017 2016 Net income $ 8,490 $ 5,119 Common shareholder dividends (3,109) (2,124) Unvested restricted stock award dividends (20) (13) Undistributed earnings to unvested restricted stock awards (32) (18) Undistributed earnings to common shareholders $ 5,329 $ 2,964 Basic Distributed earnings to common shareholders $ 3,109 $ 2,124 Undistributed earnings to common shareholders 5,329 2,964 Total common shareholders earnings, basic $ 8,438 $ 5,088 Diluted Distributed earnings to common shareholders $ 3,109 $ 2,124 Undistributed earnings to common shareholders 5,329 2,964 Total common shareholders earnings 8,438 5,088 Add back: Undistributed earnings reallocated from unvested restricted stock awards 1 — Total common shareholders earnings, diluted $ 8,439 $ 5,088 Weighted average common shares outstanding, basic 15,736,412 11,957,381 Options and warrants 615,225 271,912 Weighted average common shares outstanding, diluted 16,351,637 12,229,293 Basic earnings per common share $ 0.54 $ 0.43 Diluted earnings per common share 0.52 0.42

CAPITAL REQUIREMENTS

CAPITAL REQUIREMENTS	3 Months Ended
	Mar. 31, 2017
CAPITAL REQUIREMENTS
CAPITAL REQUIREMENTS	Note 16 – Capital Requirements Our primary source of cash is dividends received from the Bank. The Bank is restricted by Illinois law and regulations of the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation (“FDIC”) as to the maximum amount of dividends the Bank can pay to us. As a practical matter, the Bank restricts dividends to a lesser amount because of the need to maintain an adequate capital structure. We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. The regulators require the Company to meet specific capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance‑sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total capital, Tier 1 capital and Common equity tier 1 capital to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations). Beginning on January 1, 2016, a capital conservation buffer became effective for banking organizations, which is designed to establish a capital range above minimum requirements to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels. The minimum capital conservation buffer in 2016 was 0.625%, is 1.25% in 2017, and will increase by 0.625% on January 1 of each subsequent year until fully phased in at 2.5% on January 1, 2019. As of March 31 , 2017 , the Company and the Bank met all capital adequacy requirements to which they were subject, and the Bank’s capital position exceeded the regulatory definition of well-capitalized. At March 31 , 2017 and December 31, 2016, the Company’s and the Bank’s actual and required capital ratios were as follows (dollars in thousands): March 31, 2017 Required to be Minimum Required Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Requirements Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets): Midland States Bancorp, Inc. $ 378,652 13.48 % $ 224,732 8.00 % N/A N/A Midland States Bank 335,284 11.93 224,891 8.00 $ 281,114 10.00 % Tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 308,035 10.97 % 168,549 6.00 % N/A N/A Midland States Bank 319,199 11.35 168,668 6.00 224,891 8.00 % Common equity tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 255,530 9.10 % 126,412 4.50 % N/A N/A Midland States Bank 319,199 11.35 126,501 4.50 182,724 6.50 % Tier 1 leverage (to average assets): Midland States Bancorp, Inc. 308,035 9.61 % 128,249 4.00 % N/A N/A Midland States Bank 319,199 9.94 128,449 4.00 160,562 5.00 % December 31, 2016 Required to be Minimum Required Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Requirements Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets): Midland States Bancorp, Inc. $ 374,955 13.85 % $ 216,612 8.00 % N/A N/A Midland States Bank 329,759 12.17 216,773 8.00 $ 270,966 10.00 % Tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 305,283 11.27 % 162,459 6.00 % N/A N/A Midland States Bank 314,595 11.61 162,580 6.00 216,773 8.00 % Common equity tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 253,273 9.35 % 121,844 4.50 % N/A N/A Midland States Bank 314,595 11.61 121,935 4.50 176,128 6.50 % Tier 1 leverage (to average assets): Midland States Bancorp, Inc. 305,283 9.76 % 125,076 4.00 % N/A N/A Midland States Bank 314,595 10.05 125,271 4.00 156,589 5.00 %

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	Note 17 – Fair Value of Financial Instruments ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value including a three‑level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: · Level 1: Unadjusted quoted prices for identical assets or liabilities traded in active markets. · Level 2: Observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3: Inputs to a valuation methodology that are unobservable, supported by little or no market activity, and significant to the fair value measurement. These valuation methodologies generally include pricing models, discounted cash flow models, or a determination of fair value that requires significant management judgment or estimation. This category also includes observable inputs from a pricing service not corroborated by observable market data, such as pricing corporate securities. Fair value is used on a recurring basis to account for securities available for sale and derivative instruments, and for financial assets for which the Company has elected the fair value option. For assets and liabilities measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for impaired loans and other real estate owned and also to record impairment on certain assets, such as mortgage servicing rights, goodwill, intangible assets and other long-lived assets. Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis as of March 31, 2017 and December 31, 2016, are summarized below (in thousands): March 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Securities available for sale: U.S. Treasury securities $ 45,906 $ 45,906 $ — $ — Government sponsored entity debt securities 7,477 — 7,477 — Agency mortgage-backed securities 123,861 — 123,861 — State and municipal securities 31,234 — 31,234 — Corporate securities 50,854 — 43,120 7,734 Loans held for sale 39,900 — 39,900 — Interest rate lock commitments 8,023 — 8,023 — Total $ 307,255 $ 45,906 $ 253,615 $ 7,734 Liabilities Forward commitments to sell mortgage-backed securities $ 140 $ — $ 140 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 68,557 $ — $ — $ 68,557 Impaired loans 7,581 — 1,875 5,706 Other real estate owned 1,102 — 1,102 — December 31, 2016 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs Total (Level 1) (Level 2) (Level) 3 Assets and liabilities measured at fair value on a recurring basis: Assets Securities available for sale: U.S. Treasury securities $ 75,901 $ 75,901 $ — $ — Government sponsored entity debt securities 7,688 — 7,688 — Agency mortgage-backed securities 90,070 — 90,070 — Non-agency mortgage-backed securities 1 — — 1 State and municipal securities 25,274 — 25,274 — Corporate securities 47,405 — 39,925 7,480 Loans held for sale 70,565 — 70,565 — Interest rate lock commitments 6,253 — 6,253 — Forward commitments to sell mortgage-backed securities 125 — 125 — Total $ 323,282 $ 75,901 $ 239,900 $ 7,481 Liabilities None Assets measured at fair value on a non-recurring basis: Impaired loans $ 10,202 $ — $ 6,635 $ 3,567 Other real estate owned 165 — 165 — Assets held for sale 1,550 — 1,550 — The following table presents losses recognized on assets measured on a non‑recurring basis for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Mortgage servicing rights $ 76 $ 2,245 Impaired loans 350 3,135 Other real estate owned 172 — Total loss on assets measured on a nonrecurring basis $ 598 $ 5,380 The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 (in thousands): Non-Agency Corporate Mortgage-Backed Securities Securities Balance, beginning of period $ 7,480 $ 1 Total realized in earnings (1) 95 — Total unrealized in other comprehensive income 245 — Net settlements (principal and interest) (86) (1) Balance, end of period $ 7,734 $ — (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2016 (in thousands). Non-Agency Corporate Mortgage-Backed Securities Securities Balance, beginning of period $ — $ — Transferred from Level 2 6,749 2 Total realized in earnings (1) 73 — Total unrealized in other comprehensive income (22) — Net settlements (principal and interest) (64) — Balance, end of period $ 6,736 $ 2 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. ASC Topic 825, Financial Instruments , requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements. The following tables are a summary of the carrying values and fair value estimates of certain financial instruments as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 217,658 $ 217,658 $ 217,658 $ — $ — Federal funds sold 438 438 438 — — Investment securities available for sale 259,332 259,332 45,906 205,692 7,734 Investment securities held to maturity 76,276 79,900 — 79,900 — Nonmarketable equity securities 20,047 20,047 — 20,047 — Loans, net 2,439,145 2,436,880 — — 2,436,880 Loans held for sale 39,900 39,900 — 39,900 — Accrued interest receivable 7,763 7,763 — 7,763 — Interest rate lock commitments 8,023 8,023 — 8,023 — Liabilities Deposits $ 2,527,476 $ 2,526,137 $ — $ 2,526,137 $ — Short-term borrowings 124,035 124,035 — 124,035 — FHLB and other borrowings 250,353 249,804 — 249,804 — Subordinated debt 54,532 49,736 — 49,736 — Trust preferred debentures 37,496 34,538 — 34,538 — Accrued interest payable 1,985 1,985 — 1,985 — Forward commitments to sell mortgage-backed securities 140 140 — 140 — December 31, 2016 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 189,543 $ 189,543 $ 189,543 $ — $ — Federal funds sold 1,173 1,173 1,173 — — Investment securities available for sale 246,339 246,339 75,901 162,957 7,481 Investment securities held to maturity 78,672 81,952 — 81,952 — Nonmarketable equity securities 19,485 19,485 — 19,485 — Loans, net 2,305,114 2,305,206 — — 2,305,206 Loans held for sale 70,565 70,565 — 70,565 — Accrued interest receivable 8,202 8,202 — 8,202 — Interest rate lock commitments 6,253 6,253 — 6,253 — Forward commitments to sell mortgage-backed securities 125 125 — 125 — Liabilities Deposits $ 2,404,366 $ 2,404,231 $ — $ 2,404,231 $ — Short-term borrowings 131,557 131,557 — 131,557 — FHLB and other borrowings 237,518 236,736 — 236,736 — Subordinated debt 54,508 49,692 — 49,692 — Trust preferred debentures 37,405 33,054 — 33,054 — Accrued interest payable 1,045 1,045 — 1,045 — The following is a description of the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820) and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825): Cash and due from banks and federal funds sold. The carrying amounts are assumed to be the fair value because of the liquidity of these instruments. Investment securities available for sale. Investment securities available for sale are measured and carried at fair value on a recurring basis. Unrealized gains and losses on investment securities available for sale are reported as a component of accumulated other comprehensive income in the consolidated balance sheets. For investment securities available for sale where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). In determining the fair value of investment securities available for sale categorized as Level 2, we obtain a report from a nationally recognized broker‑dealer detailing the fair value of each investment security we hold as of each reporting date. The broker‑dealer uses observable market information to value our fixed income securities, with the primary source being a nationally recognized pricing service. The fair value of the municipal securities is based on a proprietary model maintained by the broker‑dealer. We review all of the broker‑dealer supplied quotes on the securities we own as of the reporting date for reasonableness based on our understanding of the marketplace, and we consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. For investment securities available for sale where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). During the three months ended March 31, 2016, $6.7 million of corporate securities and $2,000 of non-agency mortgage backed securities were transferred from Level 2 to Level 3 because observable market inputs were not available and the securities were not actively traded; therefore, the fair value was determined utilizing third-party valuation services through consensus pricing. There were no investment securities available for sale transferred from Level 2 to Level 3 during the three months ended March 31, 2017. Corporate securities classified as Level 3 are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. The significant unobservable input used in the fair value measurement of Level 3 corporate securities is net market price (range of -2.5% to 2.5%; weighted average of 1.5%). Significant changes in any of the inputs in isolation would result in a significant change to the fair value measurement. Net market price generally increases when market interest rates decline and declines when market interest rates increase. Investment securities held to maturity. Investment securities held to maturity are those debt instruments which the Company has the positive intent and ability to hold until maturity. Securities held to maturity are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. For investment securities held to maturity where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). In determining the fair value of investment securities held to maturity categorized as Level 2, we obtain a report from a nationally recognized broker‑dealer detailing the fair value of each investment security we hold as of each reporting date. The fair value of the municipal securities is based on a proprietary model maintained by the broker‑dealer. We review all of the broker‑dealer supplied quotes on the securities we own as of the reporting date for reasonableness based on our understanding of the marketplace, and we consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. Nonmarketable equity securities. The carrying amounts approximate their fair values. Loans. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type and further segmented into fixed and adjustable rate interest terms and by credit risk categories. The fair value estimates do not take into consideration the value of the loan portfolio in the event the loans have to be sold outside the parameters of normal operating activities. The fair value of performing fixed rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market prepayment speeds and estimated market discount rates that reflect the credit and interest rate risk inherent in the loans. The estimated market discount rates used for performing fixed rate loans are the Company’s current offering rates for comparable instruments with similar terms. The fair value of performing adjustable rate loans is estimated by discounting scheduled cash flows through the next repricing date. As these loans reprice frequently at market rates and the credit risk is not considered to be greater than normal, the market value is typically close to the carrying amount of these loans. The method of estimating fair value does not incorporate the exit‑price concept of fair value prescribed by ASC Topic 820. Impaired loans. Impaired loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and restructured loans are considered impaired and are reviewed individually for the amount of impairment, if any. Most of our loans are collateral dependent and, accordingly, we measure impaired loans based on the estimated fair value of such collateral. The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral; such valuation inputs result in a nonrecurring fair value measurement that is categorized as a Level 2 measurement. When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. The impaired loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, cash flows discounted at the effective loan rate, and management’s judgment. The loan balances shown in the above tables represent nonaccrual and restructured loans for which impairment was recognized during the three months ended March 31, 2017 and 2016. The amounts shown as losses represent, for the loan balances shown, the impairment recognized during those same years. Loans held for sale. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market. Other real estate owned. The fair value of foreclosed real estate is generally based on estimated market prices from independently prepared current appraisals or negotiated sales prices with potential buyers; such valuation inputs result in a fair value measurement that is categorized as a Level 2 measurement on a nonrecurring basis. When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. Assets held for sale. Assets held for sale represent the fair value of the banking facilities that are expected to be sold as a result of the branch network optimization plan that was announced in November 2016. The fair value of the assets held for sale was based on estimated market prices from independently prepared current appraisals. Such valuation inputs result in a fair value measurement that is categorized as a Level 2 measurement on a nonrecurring basis. Accrued interest receivable. The carrying amounts approximate their fair values. Deposits. Deposits are carried at historical cost. The fair value of deposits with no stated maturity, such as noninterest‑bearing demand deposits, money market, savings and checking accounts, is equal to the amount payable on demand as of the balance sheet date. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Short-term borrowings. Short-term borrowings consist of repurchase agreements. These borrowings typically have terms of less than 30 days, and therefore, their carrying amounts are a reasonable estimate of fair value. FHLB advances and other borrowings and subordinated debt. Borrowings are carried at amortized cost. The fair value of fixed rate borrowings is calculated by discounting scheduled cash flows through the estimated maturity or call dates using estimated market discount rates that reflect rates offered at that time for borrowings with similar remaining maturities and other characteristics. Trust preferred debentures. Debentures are carried at amortized cost. The fair value of variable rate debentures is calculated by discounting scheduled cash flows through the estimated maturity or call dates using estimated market discount rates that reflect spreads offered at that time for borrowings with similar remaining maturities and other characteristics. Accrued interest payable. The carrying amounts approximate their fair values. Derivative financial instruments. The Company enters into interest rate lock commitments which are agreements to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. These commitments are carried at fair value in other assets on the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. The Company also has forward loan sales commitments related to its interest rate lock commitments and its loans held for sale. These commitments are carried at fair value in other assets or other liabilities on the consolidated balance sheets with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND CREDIT RISK	3 Months Ended
	Mar. 31, 2017
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
COMMITMENTS, CONTINGENCIES AND CREDIT RISK	Note 18 – Commitments, Contingencies and Credit Risk In the normal course of business, there are outstanding various contingent liabilities such as claims and legal actions, which are not reflected in the consolidated financial statements. No material losses are anticipated as a result of these actions or claims. We are a party to financial instruments with off-balance‑sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, December 31, 2017 2016 Commitments to extend credit $ 507,221 $ 483,345 Financial guarantees – standby letters of credit 62,331 89,233 The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis, primarily to government-sponsored enterprises (“GSEs”). The Company’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Company may be obligated to repurchase the loan or reimburse the GSEs for losses incurred. The make-whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. The Company establishes a mortgage repurchase liability related to these events that reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on a combination of factors. Such factors incorporate the volume of loans sold in 2017 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. The Company did not incur any losses as a result of make-whole requests and loan repurchases for the three months ended March 31, 2017 or 2016. The liability for unresolved repurchase demands totaled $314,000 and $329,000 at March 31, 2017 and December 31, 2016, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	Note 19 – Segment Information Our business segments are defined as Banking, Commercial FHA Origination and Servicing, and Other. The reportable business segments are consistent with the internal reporting and evaluation of the principle lines of business of the Company. The banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; commercial equipment leasing; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services; and corporate treasury management services. The commercial FHA origination and servicing segment provides for the origination and servicing of government sponsored mortgages for multifamily and healthcare facilities. The other segment includes the operating results of the parent company, our wealth management business unit, our captive insurance business unit, and the elimination of intercompany transactions. Wealth management activities consist of trust and fiduciary services, brokerage and retirement planning services. Selected business segment financial information as of and for the three months ended March 31, 2017 and 2016 were as follows (in thousands): Commercial FHA Origination and Banking Servicing Other Total Three Months Ended March 31, 2017 Net interest income (expense) $ 28,380 $ 276 $ (1,195) $ 27,461 Provision for loan losses 1,533 — — 1,533 Noninterest income 8,938 6,876 516 16,330 Noninterest expense 24,914 4,083 1,788 30,785 Income (loss) before income taxes (benefit) 10,871 3,069 (2,467) 11,473 Income taxes (benefit) 2,342 1,197 (556) 2,983 Net income (loss) $ 8,529 $ 1,872 $ (1,911) $ 8,490 Total assets $ 3,366,098 $ 105,203 $ (97,724) $ 3,373,577 Three Months Ended March 31, 2016 Net interest income (expense) $ 25,393 $ 148 $ (1,500) $ 24,041 Provision for loan losses 1,125 — — 1,125 Noninterest income 5,460 6,767 391 12,618 Noninterest expense 21,451 4,673 1,514 27,638 Income (loss) before income taxes (benefit) 8,277 2,242 (2,623) 7,896 Income taxes (benefit) 2,466 897 (586) 2,777 Net income (loss) $ 5,811 $ 1,345 $ (2,037) $ 5,119 Total assets $ 2,899,657 $ 144,251 $ (145,828) $ 2,898,080

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	Note 20 – Related Party Transactions The Company utilizes the services of a company to act as a general manager for the construction of new branch facilities. A member of our board of directors is a substantial shareholder of this company and currently serves as its Chairman. During the three months ended March 31, 2017 and 2016, the Company paid $3,000 and $159,000, respectively, for work on various projects. A member of our board of directors has an ownership interest in the office building located in Clayton, Missouri and three of the Bank’s full-service branch facilities. During the three months ended March 31, 2017 and 2016, the Company paid rent for such facilities of $221,000 and $210,000, respectively.

BASIS OF PRESENTATION AND SUM28

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2017. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for the interim periods presented herein, have been included. Certain reclassifications of 2016 amounts have been made to conform to the 2017 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying unaudited consolidated financial statements. The Company operates through its principal wholly owned subsidiary bank, Midland States Bank, headquartered in Effingham, Illinois. The Bank operates through its branch banking offices and principal subsidiaries: Love Funding and Business Credit.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards FASB Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”; FASB ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”; FASB ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”; FASB ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”; FASB ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” – In May 2014, the Financial Accounting Standards Board (the “FASB”) amended existing guidance related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and noninterest income. The Company expects that ASU 2014-09 will require a change in how the Company recognizes certain recurring revenue streams within wealth management and merchant services; however, these changes are not expected to have a significant impact on the Company’s consolidated financial statements. The Company continues to evaluate the impact of ASU 2014-09 on other components of noninterest income and expects to adopt the standard in the first quarter of 2018 with a cumulative effective adjustment to opening retained earnings, if such adjustment is deemed to be significant. FASB ASU 2016-02, “Leases (Topic 842)” – In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) .” This update revises the model to assess how a lease should be classified and provides guidance for lessees and lessors, when presenting right-of-use assets and lease liabilities on the balance sheet. This update is effective for us on January 1, 2019, with early adoption permitted. We have not yet decided whether we will early adopt the new standard. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has developed a project plan for evaluating the provisions of the new lease standard, but has not yet determined the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the pending adoption of ASU 2016-02 and its impact on the Company’s consolidated financial statements. FASB ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” – In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The objective of this update is to improve financial reporting by providing timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better understand their credit loss estimates. For public companies that are filers with the SEC, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted for any organization for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. While the Company generally expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, the Company cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the potential impact on the Company’s consolidated financial statements. FASB ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” – In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which amends FASB Accounting Standards Codification (“ASC”) 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. For public business entities, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to adopt the new guidance in the first quarter of 2017. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. FASB ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” – In March 2017, the FASB issued ASU No. 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date, rather than contractual maturity date as currently required under GAAP. For public business entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to early adopt the new guidance in the first quarter of 2017. Adoption of the ASU did not have a material impact on the Company’s consolidated financial statements.

INVESTMENT SECURITIES AVAILAB29

INVESTMENT SECURITIES AVAILABLE FOR SALE (Tables) - Available for sale	3 Months Ended
	Mar. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Schedule of investment securities classified as available for sale	Investment securities classified as available for sale as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, 2017 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Treasury securities $ 45,973 $ — $ 67 $ 45,906 Government sponsored entity debt securities 7,412 72 7 7,477 Agency mortgage-backed securities 124,459 430 1,028 123,861 State and municipal securities 31,516 77 359 31,234 Corporate securities 50,457 561 164 50,854 Total $ 259,817 $ 1,140 $ 1,625 $ 259,332 December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Treasury securities $ 75,973 $ — $ 72 $ 75,901 Government sponsored entity debt securities 7,653 57 22 7,688 Agency mortgage-backed securities 90,629 373 932 90,070 Non-agency mortgage-backed securities 1 — — 1 State and municipal securities 25,826 15 567 25,274 Corporate securities 47,443 403 441 47,405 Total $ 247,525 $ 848 $ 2,034 $ 246,339
Schedule of unrealized losses and fair values for investment securities	Unrealized losses and fair values for investment securities available for sale as of March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows (in thousands): March 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss U.S. Treasury securities $ 45,906 $ 67 $ — $ — $ 45,906 $ 67 Government sponsored entity debt securities 1,595 7 — — 1,595 7 Agency mortgage-backed securities 80,160 1,028 — — 80,160 1,028 State and municipal securities 18,863 359 — — 18,863 359 Corporate securities 3,030 41 6,835 123 9,865 164 Total $ 149,554 $ 1,502 $ 6,835 $ 123 $ 156,389 $ 1,625 December 31, 2016 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss U.S. Treasury securities $ 75,901 $ 72 $ — $ — $ 75,901 $ 72 Government sponsored entity debt securities 4,107 22 — — 4,107 22 Agency mortgage-backed securities 57,882 930 402 2 58,284 932 State and municipal securities 20,215 567 — — 20,215 567 Corporate securities 11,111 334 8,312 107 19,423 441 Total $ 169,216 $ 1,925 $ 8,714 $ 109 $ 177,930 $ 2,034
Contractual maturity of amortized cost and fair value	The maturities of all other investment securities available for sale are based on final contractual maturity. Amortized Fair cost value Within one year $ 45,334 $ 45,302 After one year through five years 114,365 114,258 After five years through ten years 82,079 82,070 After ten years 18,039 17,702 Subtotal $ 259,817 $ 259,332

INVESTMENT SECURITIES HELD TO30

INVESTMENT SECURITIES HELD TO MATURITY (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Schedule of investment securities classified as held to maturity	Investment securities classified as held to maturity as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, 2017 Gross Gross Amortized unrealized unrealized Fair cost gains losses value State and municipal securities $ 76,276 $ 3,792 $ 168 $ 79,900 December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value State and municipal securities $ 78,672 $ 3,517 $ 237 $ 81,952
Held to maturity
Schedule of Held-to-maturity Securities [Line Items]
Schedule of unrealized losses and fair values for investment securities	Unrealized losses and fair value for investment securities held to maturity as of March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows (in thousands): March 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss State and municipal securities $ 7,074 $ 83 $ 2,754 $ 85 $ 9,828 $ 168 December 31, 2016 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value loss value loss value loss State and municipal securities $ 13,991 $ 140 $ 2,699 $ 97 $ 16,690 $ 237
Contractual maturity of amortized cost and fair value	The amortized cost and fair value of investment securities held to maturity as of March 31, 2017, by contractual maturity, are as follows (in thousands): Amortized Fair cost value Within one year $ 772 $ 777 After one year through five years 20,422 21,072 After five years through ten years 36,395 38,870 After ten years 18,687 19,181 Total $ 76,276 $ 79,900

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2017
LOANS
Summary of loans	The following table presents total loans outstanding by portfolio, which includes purchased credit impaired (“PCI”) loans, as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Loans: Commercial $ 475,408 $ 457,827 Commercial real estate 997,200 969,615 Construction and land development 171,047 177,325 Total commercial loans 1,643,655 1,604,767 Residential real estate 277,402 253,713 Consumer 337,081 270,017 Lease financing 196,812 191,479 Total loans $ 2,454,950 $ 2,319,976
Summary of recorded investment (excluding PCI loans) by risk category	The following table presents the recorded investment of the commercial loan portfolio (excluding PCI loans) by risk category as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Commercial Construction Commercial Construction Real and Land Real and Land Commercial Estate Development Total Commercial Estate Development Total Acceptable credit quality $ 454,561 $ 954,766 $ 160,801 $ 1,570,128 $ 426,560 $ 925,244 $ 159,702 $ 1,511,506 Special mention 2,593 7,042 — 9,635 10,930 8,735 — 19,665 Substandard 11,798 11,186 — 22,984 12,649 21,178 450 34,277 Substandard – nonaccrual 3,943 17,276 20 21,239 3,559 7,145 21 10,725 Doubtful — — — — — — — — Not graded 680 1,321 6,157 8,158 612 1,593 5,002 7,207 Total (excluding PCI) $ 473,575 $ 991,591 $ 166,978 $ 1,632,144 $ 454,310 $ 963,895 $ 165,175 $ 1,583,380 The Company evaluates the credit quality of its other loan portfolio based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, any loan past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be impaired for purposes of credit quality evaluation. The following table presents the recorded investment of our other loan portfolio (excluding PCI loans) based on the credit risk profile of loans that are performing and loans that are impaired as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Residential Lease Residential Lease Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 266,884 $ 336,503 $ 196,130 $ 799,517 $ 242,127 $ 269,492 $ 190,148 $ 701,767 Impaired 4,288 260 682 5,230 5,029 213 1,331 6,573 Total (excluding PCI) $ 271,172 $ 336,763 $ 196,812 $ 804,747 $ 247,156 $ 269,705 $ 191,479 $ 708,340
Summary of impaired loans (excluding PCI loans)	A summary of impaired loans (excluding PCI loans) as of March 31, 2017 and December 31, 2016 is as follows (in thousands): March 31, December 31, 2017 2016 Nonaccrual loans: Commercial $ 3,943 $ 3,559 Commercial real estate 17,276 7,145 Construction and land development 19 21 Residential real estate 4,288 4,629 Consumer 231 187 Lease financing 682 1,330 Total nonaccrual loans 26,439 16,871 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial — 2,378 Commercial real estate — — Construction and land development 394 — Residential real estate — — Consumer 29 26 Lease financing — 1 Total accruing loans contractually past due 90 days or more as to interest or principal payments 423 2,405 Loans modified under troubled debt restructurings: Commercial 357 611 Commercial real estate 1,255 11,253 Construction and land development 62 63 Residential real estate 397 400 Consumer — — Lease financing — — Total loans modified under troubled debt restructurings 2,071 12,327 Total impaired loans (excluding PCI) $ 28,933 $ 31,603
Summary of impaired loans (excluding PCI loans) by portfolio	The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Unpaid Related Unpaid Related Recorded Principal Valuation Recorded Principal Valuation Investment Balance Allowance Investment Balance Allowance Impaired loans with a valuation allowance: Commercial $ 3,550 $ 5,158 $ 1,364 $ 3,877 $ 3,888 $ 882 Commercial real estate 2,527 3,541 680 2,142 2,331 309 Construction and land development 81 82 8 84 84 8 Residential real estate 3,429 4,178 578 3,735 4,404 604 Consumer 235 241 31 213 190 23 Lease financing 197 197 238 1,331 1,331 356 Total impaired loans with a valuation allowance 10,019 13,397 2,899 11,382 12,228 2,182 Impaired loans with no related valuation allowance: Commercial 750 804 — 2,671 7,567 — Commercial real estate 16,004 16,260 — 16,256 17,058 — Construction and land development 394 393 — — — — Residential real estate 1,256 1,446 — 1,294 1,462 — Consumer 25 26 — — 26 — Lease financing 485 485 — — — — Total impaired loans with no related valuation allowance 18,914 19,414 — 20,221 26,113 — Total impaired loans: Commercial 4,300 5,962 1,364 6,548 11,455 882 Commercial real estate 18,531 19,801 680 18,398 19,389 309 Construction and land development 475 475 8 84 84 8 Residential real estate 4,685 5,624 578 5,029 5,866 604 Consumer 260 267 31 213 216 23 Lease financing 682 682 238 1,331 1,331 356 Total impaired loans (excluding PCI) $ 28,933 $ 32,811 $ 2,899 $ 31,603 $ 38,341 $ 2,182 The difference between a loan’s recorded investment and the unpaid principal balance represents: (1) a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan’s principal balance and management’s assessment that the full collection of the loan balance is not likely and/or (2) payments received on nonaccrual loans that are fully applied to principal on the loan’s recorded investment as compared to being applied to principal and interest on the unpaid customer principal and interest balance. The difference between the recorded investment and the unpaid principal balance on loans was $3.9 million and $6.7 million at March 31, 2017 and December 31, 2016, respectively. The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the three months ended March 31, 2017 and 2016 are included in the table below (in thousands): Three Months Ended March 31, 2017 2016 Interest Income Interest Income Average Recognized Average Recognized Recorded While on Recorded While on Investment Impaired Status Investment Impaired Status Impaired loans with a valuation allowance: Commercial $ 3,532 $ 1 $ 362 $ — Commercial real estate 2,845 17 1,333 — Construction and land development 82 1 68 — Residential real estate 3,494 4 3,604 — Consumer 278 — 35 — Lease financing 197 — 983 — Total impaired loans with a valuation allowance 10,428 23 6,385 — Impaired loans with no related valuation allowance: Commercial 828 — 5,572 — Commercial real estate 16,085 — 10,377 45 Construction and land development 394 — 82 1 Residential real estate 1,271 — 1,258 5 Consumer 25 — 5 — Lease financing 485 — — — Total impaired loans with no related valuation allowance 19,088 — 17,294 51 Total impaired loans: Commercial 4,360 1 5,934 — Commercial real estate 18,930 17 11,710 45 Construction and land development 476 1 150 1 Residential real estate 4,765 4 4,862 5 Consumer 303 — 40 — Lease financing 682 — 983 — Total impaired loans (excluding PCI) $ 29,516 $ 23 $ 23,679 $ 51
Summary of aging status of recorded investments in loans by portfolio (excluding PCI loans)	The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of March 31, 2017 (in thousands): Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total Past Due Past Due or More Loans Past Due Current Loans Commercial $ 2,766 $ 3,555 $ — $ 3,943 $ 10,264 $ 463,311 $ 473,575 Commercial real estate 608 700 — 17,276 18,584 973,007 991,591 Construction and land development 50 — 394 19 463 166,515 166,978 Residential real estate 2,358 503 — 4,288 7,149 264,023 271,172 Consumer 2,092 1,104 29 231 3,456 333,307 336,763 Lease financing 339 — — 682 1,021 195,791 196,812 Total (excluding PCI) $ 8,213 $ 5,862 $ 423 $ 26,439 $ 40,937 $ 2,395,954 $ 2,436,891 The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2016 (in thousands): Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total Past Due Past Due or More Loans Past Due Current Loans Commercial $ 3,326 $ 138 $ 2,378 $ 3,559 $ 9,401 $ 444,909 $ 454,310 Commercial real estate 648 787 — 7,145 8,580 955,315 963,895 Construction and land development — — — 21 21 165,154 165,175 Residential real estate 3,472 13 — 4,629 8,114 239,042 247,156 Consumer 1,701 588 26 187 2,502 267,203 269,705 Lease financing 94 — 1 1,330 1,425 190,054 191,479 Total (excluding PCI) $ 9,241 $ 1,526 $ 2,405 $ 16,871 $ 30,043 $ 2,261,677 $ 2,291,720
Summary of TDRs by loan portfolio (excluding PCI loans)	The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio (excluding PCI loans) as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 357 $ — $ 357 $ 611 $ — $ 611 Commercial real estate 1,255 14,905 16,160 11,253 5,098 16,351 Construction and land development 62 — 62 63 — 63 Residential real estate 397 559 956 400 527 927 Consumer — — — — — — Lease financing — — — — — — Total loans (excluding PCI) $ 2,071 $ 15,464 $ 17,535 $ 12,327 $ 5,625 $ 17,952 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables.
Summary of TDRs loans by portfolio restructured and occurred within previous twelve months that subsequently defaulted	The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2017 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2017 (dollars in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2017: Troubled debt restructurings: Number of loans 1 — — — — — 1 Pre-modification outstanding balance $ 362 $ — $ — $ — $ — $ — $ 362 Post-modification outstanding balance 353 — — — — — 353 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2016 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2016 (dollars in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2016: Troubled debt restructurings: Number of loans — — — — — — — Pre-modification outstanding balance $ — $ — $ — $ — $ — $ — $ — Post-modification outstanding balance — — — — — — — Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ —
Summary of changes in allowance for loan losses	Changes in the allowance for loan losses for the three months ended March 31, 2017 and 2016 are as follows (in thousands): Three Months Ended March 31, 2017 2016 Non-PCI PCI Non-PCI PCI Loans Loans Total Loans Loans Total Balance at beginning of period $ 13,744 $ 1,118 $ 14,862 $ 14,093 $ 1,895 $ 15,988 Provision for loan losses 1,405 128 1,533 1,083 42 1,125 Loan charge-offs (1,167) — (1,167) (2,696) — (2,696) Loan recoveries 519 58 577 128 26 154 Net loan (charge-offs) recoveries (648) 58 (590) (2,568) 26 (2,542) Balance at end of period $ 14,501 $ 1,304 $ 15,805 $ 12,608 $ 1,963 $ 14,571
Summary of changes in allowance for loan losses, by loan portfolio	The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three months ended March 31, 2017 and 2016 (in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total Changes in allowance for loan losses for the three months ended March 31, 2017: Beginning balance $ 5,920 $ 3,225 $ 345 $ 2,929 $ 930 $ 1,513 $ 14,862 Provision for loan losses 70 821 92 30 482 38 1,533 Charge-offs (9) (296) — (172) (176) (514) (1,167) Recoveries 53 180 23 55 48 218 577 Ending balance $ 6,034 $ 3,930 $ 460 $ 2,842 $ 1,284 $ 1,255 $ 15,805 Changes in allowance for loan losses for the three months ended March 31, 2016: Beginning balance $ 6,917 $ 5,179 $ 435 $ 2,120 $ 749 $ 588 $ 15,988 Provision for loan losses 657 (196) (99) 262 35 466 1,125 Charge-offs (2,260) (139) — (100) (65) (132) (2,696) Recoveries 39 39 9 43 23 1 154 Ending balance $ 5,353 $ 4,883 $ 345 $ 2,325 $ 742 $ 923 $ 14,571 The following table represents, by loan portfolio, details regarding the balance in the allowance for loan losses and the recorded investment in loans as of March 31, 2017 and December 31, 2016 by impairment evaluation method (in thousands): Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease Commercial Estate Development Estate Consumer Financing Total March 31, 2017: Allowance for loan losses: Loans individually evaluated for impairment $ 1,343 $ 659 $ 6 $ 365 $ 3 $ 185 $ 2,561 Loans collectively evaluated for impairment 21 21 2 213 28 53 338 Non-impaired loans collectively evaluated for impairment 4,177 3,010 452 1,852 1,094 1,017 11,602 Loans acquired with deteriorated credit quality (1) 493 240 — 412 159 — 1,304 Total allowance for loan losses $ 6,034 $ 3,930 $ 460 $ 2,842 $ 1,284 $ 1,255 $ 15,805 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 4,105 $ 18,336 $ 455 $ 2,728 $ 3 $ 197 $ 25,824 Impaired loans collectively evaluated for impairment 195 195 20 1,957 257 485 3,109 Non-impaired loans collectively evaluated for impairment 469,275 973,060 166,503 266,487 336,503 196,130 2,407,958 Loans acquired with deteriorated credit quality (1) 1,833 5,609 4,069 6,230 318 — 18,059 Total recorded investment (loan balance) $ 475,408 $ 997,200 $ 171,047 $ 277,402 $ 337,081 $ 196,812 $ 2,454,950 December 31, 2016: Allowance for loan losses: Loans individually evaluated for impairment $ 878 $ 296 $ 6 $ 379 $ — $ 285 $ 1,844 Loans collectively evaluated for impairment 4 13 2 225 23 71 338 Non-impaired loans collectively evaluated for impairment 4,539 2,684 337 1,968 877 1,157 11,562 Loans acquired with deteriorated credit quality (1) 499 232 — 357 30 — 1,118 Total allowance for loan losses $ 5,920 $ 3,225 $ 345 $ 2,929 $ 930 $ 1,513 $ 14,862 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 6,504 $ 18,275 $ 63 $ 2,920 $ — $ 670 $ 28,432 Impaired loans collectively evaluated for impairment 44 123 21 2,109 213 661 3,171 Non-impaired loans collectively evaluated for impairment 447,762 945,497 165,091 242,127 269,492 190,148 2,260,117 Loans acquired with deteriorated credit quality (1) 3,517 5,720 12,150 6,557 312 — 28,256 Total recorded investment (loan balance) $ 457,827 $ 969,615 $ 177,325 $ 253,713 $ 270,017 $ 191,479 $ 2,319,976 (1) Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date and the risk of credit loss was recognized at that date based on estimates of expected cash flows.
Summary of changes in accretable yield for PCI loans	Changes in the accretable yield for PCI loans were as follows for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 9,035 $ 10,526 Accretion (2,243) (1,041) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) 9 — Reclassification from non-accretable 2,032 282 Balance at end of period $ 8,833 $ 9,767
Summary of carrying amount of covered loans and non-covered loans consisted of purchased credit-impaired loans and non-purchased credit-impaired loans	The carrying amount of Non-PCI loans and PCI loans as of March 31, 2017 and December 31, 2016 were as follows (in thousands): March 31, 2017 December 31, 2016 Non-PCI PCI Non-PCI PCI Loans Loans Total Loans Loans Total Commercial $ 473,575 $ 1,833 $ 475,408 $ 454,310 $ 3,517 $ 457,827 Commercial real estate 991,591 5,609 997,200 963,895 5,720 969,615 Construction and land development 166,978 4,069 171,047 165,175 12,150 177,325 Residential real estate 271,172 6,230 277,402 247,156 6,557 253,713 Consumer 336,763 318 337,081 269,705 312 270,017 Lease financing 196,812 — 196,812 191,479 — 191,479 Total loans $ 2,436,891 $ 18,059 $ 2,454,950 $ 2,291,720 $ 28,256 $ 2,319,976

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	3 Months Ended
	Mar. 31, 2017
MORTGAGE SERVICING RIGHTS
Schedule of other mortgage notes serviced and changes in our mortgage servicing rights	A summary of mortgage loans serviced for others as of March 31, 2017 and December 31, 2016 is as follows (in thousands): March 31, December 31, 2017 2016 Commercial FHA mortgage loans $ 3,860,180 $ 3,811,066 Residential mortgage loans 1,828,223 1,833,443 Total loans serviced for others $ 5,688,403 $ 5,644,509 Changes in our mortgage servicing rights were as follows for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Mortgage servicing rights: Balance at beginning of period $ 71,710 $ 67,218 Servicing rights capitalized – commercial FHA mortgage loans 1,481 1,702 Servicing rights capitalized – residential mortgage loans 518 659 Amortization – commercial FHA mortgage loans (639) (567) Amortization – residential mortgage loans (735) (714) Balance at end of period 72,335 68,298 Valuation allowances: Balance at beginning of period 3,702 567 Additions 188 2,245 Reductions (112) — Balance at end of period 3,778 2,812 Mortgage servicing rights, net $ 68,557 $ 65,486 Fair value: At beginning of period $ 68,008 $ 66,700 At end of period $ 68,557 $ 65,486
Schedule of summary of key assumptions	Remaining Servicing Interest Years to Prepayment Servicing Discount Fee Rate Maturity Rate Cost Rate March 31, 2017: Commercial FHA mortgage loans 0.13 % 3.70 % 30.0 8.29 % $ 1,000 10 - 13 % Residential mortgage loans 0.26 % 3.89 % 24.1 9.66 % $ 61 9 - 11 % December 31, 2016: Commercial FHA mortgage loans 0.13 % 3.72 % 30.2 8.31 % $ 1,000 10 - 13 % Residential mortgage loans 0.26 % 3.89 % 24.2 9.72 % $ 60 9 - 11 %

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
GOODWILL AND INTANGIBLE ASSETS
Schedule of intangible assets	The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of March 31, 2017 and December 31, 2016 are summarized as follows (in thousands): March 31, 2017 December 31, 2016 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 20,542 $ (16,575) $ 3,967 $ 20,542 $ (16,181) $ 4,361 Customer relationship intangibles 7,442 (2,776) 4,666 5,471 (2,645) 2,826 Total intangible assets $ 27,984 $ (19,351) $ 8,633 $ 26,013 $ (18,826) $ 7,187

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments, fair value and notional amounts	The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount, estimated fair values and the location in which the derivative instruments are reported in the consolidated balances sheets at March 31, 2017 and December 31, 2016 (in thousands): Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, 2017 2016 2017 2016 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 338,184 $ 264,359 $ 8,023 $ 6,253 Forward commitments to sell mortgage-backed securities — 301,788 — 125 Total $ 338,184 $ 566,147 $ 8,023 $ 6,378 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, 2017 2016 2017 2016 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 354,405 $ — $ 140 $ —

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2017
Deposits [Abstract]
Schedule Of interest and non interest bearing deposits	The following table summarizes the classification of deposits as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Noninterest-bearing demand $ 528,021 $ 562,333 Interest-bearing: Checking 751,193 656,248 Money market 415,322 399,851 Savings 169,715 166,910 Time 663,225 619,024 Total deposits $ 2,527,476 $ 2,404,366

SHORT-TERM BORROWINGS (Tables)

SHORT-TERM BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2017
SHORT-TERM BORROWINGS
Schedule of short term borrowings	The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended March 31, 2017 and December 31, 2016 (in thousands): Repurchase Agreements March 31, December 31, 2017 2016 Outstanding at period-end $ 124,035 $ 131,557 Average amount outstanding 143,583 130,228 Maximum amount outstanding at any month end 152,813 168,369 Weighted average interest rate: During period 0.23 % 0.23 % End of period 0.22 % 0.21 %

FHLB ADVANCES AND OTHER BORRO37

FHLB ADVANCES AND OTHER BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2017
FHLB ADVANCES AND OTHER BORROWINGS
Schedule of Federal Home Loan Bank (FHLB) advances	The following table summarizes our Federal Home Loan Bank (“FHLB”) advances and other borrowings as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 FHLB advances – fixed rate, fixed term, at rates averaging 1.05% and 0.89%, respectively, at March 31, 2017 and December 31, 2016, respectively – maturing through August 2023 $ 250,000 $ 237,500 Other 353 18 Total FHLB advances and other borrowings $ 250,353 $ 237,518

SUBORDINATED DEBT (Tables)

SUBORDINATED DEBT (Tables)	3 Months Ended
	Mar. 31, 2017
SUBORDINATED DEBT
Schedule of summary of company's subordinated debt	The following table summarizes the Company’s subordinated debt as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Subordinated debt issued June 2015 – fixed interest rate of 6.00% for the first five years through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, $40,325 maturing June 18, 2025 $ 39,747 $ 39,729 Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $15,000 maturing June 18, 2025 14,785 14,779 Total subordinated debt $ 54,532 $ 54,508

TRUST PREFERRED DEBENTURES (Tab

TRUST PREFERRED DEBENTURES (Tables)	3 Months Ended
	Mar. 31, 2017
TRUST PREFERRED DEBENTURES.
Summary of trust preferred debentures	The following table summarizes the Company’s trust preferred debentures as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2017 2016 Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 3.89% and 3.74%, at March 31, 2017 and December 31, 2016, respectively – $3,000 maturing January 23, 2034 $ 2,012 $ 1,996 Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 3.79% and 3.63% at March 31, 2017 and December 31, 2016, respectively – $10,000 maturing April 23, 2034 9,957 9,957 Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 2.88% and 2.71% at March 31, 2017 and December 31, 2016, respectively – $20,000 maturing December 31, 2036 13,178 13,141 Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 2.57% and 2.42% at March 31, 2017 and December 31, 2016, respectively – $20,000 maturing September 6, 2037 12,349 12,311 Total trust preferred debentures $ 37,496 $ 37,405

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
Per common share data
Schedule of basic and diluted earnings per common share	Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2017 and 2016 (dollars in thousands, except per share data): Three Months Ended March 31, 2017 2016 Net income $ 8,490 $ 5,119 Common shareholder dividends (3,109) (2,124) Unvested restricted stock award dividends (20) (13) Undistributed earnings to unvested restricted stock awards (32) (18) Undistributed earnings to common shareholders $ 5,329 $ 2,964 Basic Distributed earnings to common shareholders $ 3,109 $ 2,124 Undistributed earnings to common shareholders 5,329 2,964 Total common shareholders earnings, basic $ 8,438 $ 5,088 Diluted Distributed earnings to common shareholders $ 3,109 $ 2,124 Undistributed earnings to common shareholders 5,329 2,964 Total common shareholders earnings 8,438 5,088 Add back: Undistributed earnings reallocated from unvested restricted stock awards 1 — Total common shareholders earnings, diluted $ 8,439 $ 5,088 Weighted average common shares outstanding, basic 15,736,412 11,957,381 Options and warrants 615,225 271,912 Weighted average common shares outstanding, diluted 16,351,637 12,229,293 Basic earnings per common share $ 0.54 $ 0.43 Diluted earnings per common share 0.52 0.42

CAPITAL REQUIREMENTS (Tables)

CAPITAL REQUIREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
CAPITAL REQUIREMENTS
Schedule of actual and required capital amounts and ratios	At March 31 , 2017 and December 31, 2016, the Company’s and the Bank’s actual and required capital ratios were as follows (dollars in thousands): March 31, 2017 Required to be Minimum Required Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Requirements Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets): Midland States Bancorp, Inc. $ 378,652 13.48 % $ 224,732 8.00 % N/A N/A Midland States Bank 335,284 11.93 224,891 8.00 $ 281,114 10.00 % Tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 308,035 10.97 % 168,549 6.00 % N/A N/A Midland States Bank 319,199 11.35 168,668 6.00 224,891 8.00 % Common equity tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 255,530 9.10 % 126,412 4.50 % N/A N/A Midland States Bank 319,199 11.35 126,501 4.50 182,724 6.50 % Tier 1 leverage (to average assets): Midland States Bancorp, Inc. 308,035 9.61 % 128,249 4.00 % N/A N/A Midland States Bank 319,199 9.94 128,449 4.00 160,562 5.00 % December 31, 2016 Required to be Minimum Required Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Requirements Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets): Midland States Bancorp, Inc. $ 374,955 13.85 % $ 216,612 8.00 % N/A N/A Midland States Bank 329,759 12.17 216,773 8.00 $ 270,966 10.00 % Tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 305,283 11.27 % 162,459 6.00 % N/A N/A Midland States Bank 314,595 11.61 162,580 6.00 216,773 8.00 % Common equity tier 1 capital (to risk-weighted assets): Midland States Bancorp, Inc. 253,273 9.35 % 121,844 4.50 % N/A N/A Midland States Bank 314,595 11.61 121,935 4.50 176,128 6.50 % Tier 1 leverage (to average assets): Midland States Bancorp, Inc. 305,283 9.76 % 125,076 4.00 % N/A N/A Midland States Bank 314,595 10.05 125,271 4.00 156,589 5.00 %

FAIR VALUE OF FINANCIAL INSTR42

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of assets and liabilities measured and recorded at fair value	Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis as of March 31, 2017 and December 31, 2016, are summarized below (in thousands): March 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Securities available for sale: U.S. Treasury securities $ 45,906 $ 45,906 $ — $ — Government sponsored entity debt securities 7,477 — 7,477 — Agency mortgage-backed securities 123,861 — 123,861 — State and municipal securities 31,234 — 31,234 — Corporate securities 50,854 — 43,120 7,734 Loans held for sale 39,900 — 39,900 — Interest rate lock commitments 8,023 — 8,023 — Total $ 307,255 $ 45,906 $ 253,615 $ 7,734 Liabilities Forward commitments to sell mortgage-backed securities $ 140 $ — $ 140 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 68,557 $ — $ — $ 68,557 Impaired loans 7,581 — 1,875 5,706 Other real estate owned 1,102 — 1,102 — December 31, 2016 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs Total (Level 1) (Level 2) (Level) 3 Assets and liabilities measured at fair value on a recurring basis: Assets Securities available for sale: U.S. Treasury securities $ 75,901 $ 75,901 $ — $ — Government sponsored entity debt securities 7,688 — 7,688 — Agency mortgage-backed securities 90,070 — 90,070 — Non-agency mortgage-backed securities 1 — — 1 State and municipal securities 25,274 — 25,274 — Corporate securities 47,405 — 39,925 7,480 Loans held for sale 70,565 — 70,565 — Interest rate lock commitments 6,253 — 6,253 — Forward commitments to sell mortgage-backed securities 125 — 125 — Total $ 323,282 $ 75,901 $ 239,900 $ 7,481 Liabilities None Assets measured at fair value on a non-recurring basis: Impaired loans $ 10,202 $ — $ 6,635 $ 3,567 Other real estate owned 165 — 165 — Assets held for sale 1,550 — 1,550 —
Schedule of losses recognized on assets measured on a non-recurring basis	The following table presents losses recognized on assets measured on a non‑recurring basis for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Mortgage servicing rights $ 76 $ 2,245 Impaired loans 350 3,135 Other real estate owned 172 — Total loss on assets measured on a nonrecurring basis $ 598 $ 5,380
Schedule presenting activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)	The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 (in thousands): Non-Agency Corporate Mortgage-Backed Securities Securities Balance, beginning of period $ 7,480 $ 1 Total realized in earnings (1) 95 — Total unrealized in other comprehensive income 245 — Net settlements (principal and interest) (86) (1) Balance, end of period $ 7,734 $ — (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2016 (in thousands). Non-Agency Corporate Mortgage-Backed Securities Securities Balance, beginning of period $ — $ — Transferred from Level 2 6,749 2 Total realized in earnings (1) 73 — Total unrealized in other comprehensive income (22) — Net settlements (principal and interest) (64) — Balance, end of period $ 6,736 $ 2 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income.
Tabular presentation of summary of the carrying values and fair value estimates of certain financial instruments	March 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 217,658 $ 217,658 $ 217,658 $ — $ — Federal funds sold 438 438 438 — — Investment securities available for sale 259,332 259,332 45,906 205,692 7,734 Investment securities held to maturity 76,276 79,900 — 79,900 — Nonmarketable equity securities 20,047 20,047 — 20,047 — Loans, net 2,439,145 2,436,880 — — 2,436,880 Loans held for sale 39,900 39,900 — 39,900 — Accrued interest receivable 7,763 7,763 — 7,763 — Interest rate lock commitments 8,023 8,023 — 8,023 — Liabilities Deposits $ 2,527,476 $ 2,526,137 $ — $ 2,526,137 $ — Short-term borrowings 124,035 124,035 — 124,035 — FHLB and other borrowings 250,353 249,804 — 249,804 — Subordinated debt 54,532 49,736 — 49,736 — Trust preferred debentures 37,496 34,538 — 34,538 — Accrued interest payable 1,985 1,985 — 1,985 — Forward commitments to sell mortgage-backed securities 140 140 — 140 — December 31, 2016 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 189,543 $ 189,543 $ 189,543 $ — $ — Federal funds sold 1,173 1,173 1,173 — — Investment securities available for sale 246,339 246,339 75,901 162,957 7,481 Investment securities held to maturity 78,672 81,952 — 81,952 — Nonmarketable equity securities 19,485 19,485 — 19,485 — Loans, net 2,305,114 2,305,206 — — 2,305,206 Loans held for sale 70,565 70,565 — 70,565 — Accrued interest receivable 8,202 8,202 — 8,202 — Interest rate lock commitments 6,253 6,253 — 6,253 — Forward commitments to sell mortgage-backed securities 125 125 — 125 — Liabilities Deposits $ 2,404,366 $ 2,404,231 $ — $ 2,404,231 $ — Short-term borrowings 131,557 131,557 — 131,557 — FHLB and other borrowings 237,518 236,736 — 236,736 — Subordinated debt 54,508 49,692 — 49,692 — Trust preferred debentures 37,405 33,054 — 33,054 — Accrued interest payable 1,045 1,045 — 1,045 —

COMMITMENTS, CONTINGENCIES AN43

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)	3 Months Ended
	Mar. 31, 2017
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
Schedule of Loan Commitments	Loan commitments as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, December 31, 2017 2016 Commitments to extend credit $ 507,221 $ 483,345 Financial guarantees – standby letters of credit 62,331 89,233

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
SEGMENT INFORMATION
Schedule of segment financial information	Selected business segment financial information as of and for the three months ended March 31, 2017 and 2016 were as follows (in thousands): Commercial FHA Origination and Banking Servicing Other Total Three Months Ended March 31, 2017 Net interest income (expense) $ 28,380 $ 276 $ (1,195) $ 27,461 Provision for loan losses 1,533 — — 1,533 Noninterest income 8,938 6,876 516 16,330 Noninterest expense 24,914 4,083 1,788 30,785 Income (loss) before income taxes (benefit) 10,871 3,069 (2,467) 11,473 Income taxes (benefit) 2,342 1,197 (556) 2,983 Net income (loss) $ 8,529 $ 1,872 $ (1,911) $ 8,490 Total assets $ 3,366,098 $ 105,203 $ (97,724) $ 3,373,577 Three Months Ended March 31, 2016 Net interest income (expense) $ 25,393 $ 148 $ (1,500) $ 24,041 Provision for loan losses 1,125 — — 1,125 Noninterest income 5,460 6,767 391 12,618 Noninterest expense 21,451 4,673 1,514 27,638 Income (loss) before income taxes (benefit) 8,277 2,242 (2,623) 7,896 Income taxes (benefit) 2,466 897 (586) 2,777 Net income (loss) $ 5,811 $ 1,345 $ (2,037) $ 5,119 Total assets $ 2,899,657 $ 144,251 $ (145,828) $ 2,898,080

BUSINESS DESCRIPTION (Details)

BUSINESS DESCRIPTION (Details) - USD ($) $ in Millions	Jun. 06, 2016	Jun. 06, 2016	May 24, 2016	Mar. 31, 2017	Dec. 31, 2016
Common Stock, Shares, Issued				15,780,651	15,483,499
Proceeds from the IPO	$ 71.5
IPO
Common Stock, Shares, Issued			3,044,252
Proceeds from the IPO			$ 67
Over-Allotment Option [Member]
Common Stock, Shares, Issued	545,813	545,813
Proceeds from the IPO		$ 12

ACQUISITIONS - CedarPoint (Deta

ACQUISITIONS - CedarPoint (Details) - USD ($) $ in Thousands	Mar. 28, 2017	Mar. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 50,807	$ 48,836
CedarPoint Investment Advisors, Inc [Member]
Business Acquisition [Line Items]
Assets under administration	$ 180,000
Consideration transferred, shares	120,000
Consideration transferred, value of shares	$ 3,900
Consideration transferred, shares, in escrow	18,000
Goodwill	$ 2,000
CedarPoint Investment Advisors, Inc [Member] | Customer relationship
Business Acquisition [Line Items]
Intangibles	$ 2,000
Amortization period	10 years

ACQUISITIONS - Sterling (Detail

ACQUISITIONS - Sterling (Details) - USD ($) $ in Thousands	Nov. 10, 2016	Mar. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 50,807	$ 48,836
Sterling
Business Acquisition [Line Items]
Assets under administration	$ 400,000
Consideration paid in cash	5,200
Goodwill	2,300
Sterling | Customer relationship
Business Acquisition [Line Items]
Intangibles	$ 2,300
Amortization period	20 years

ACQUISITIONS - Centrue (Details

ACQUISITIONS - Centrue (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Jun. 30, 2017USD ($)item$ / shares	Mar. 31, 2017USD ($)	Jan. 13, 2017$ / shares	Dec. 31, 2016USD ($)	Mar. 31, 2016USD ($)
Business Acquisition [Line Items]
Total assets		$ 3,373,577		$ 3,233,723	$ 2,898,080
Total loans, net		2,439,145		2,305,114
Total deposits		2,527,476		$ 2,404,366
Centrue Financial Corporation [Member]
Business Acquisition [Line Items]
Full-service banking centers | item	20
Centrue Financial Corporation [Member] | Weighted average
Business Acquisition [Line Items]
Share Price | $ / shares			$ 35.18
Centrue Financial Corporation [Member] | Forecast
Business Acquisition [Line Items]
Total consideration, estimated	$ 175,100
Purchase consideration per share | $ / shares	$ 26.75
Exchange ratio	76.04%
Percentage of Centrue stock exchanged for stock	65.00%
Percentage of Centrue stock exchanged for cash	35.00%
Centrue Financial Corporation [Member]
Business Acquisition [Line Items]
Total assets		975,800
Total loans, net		679,100
Total deposits		$ 728,500

INVESTMENT SECURITIES AVAILAB49

INVESTMENT SECURITIES AVAILABLE FOR SALE - Classified (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Investment securities classified as available for sale
Amortized cost	$ 259,817,000		$ 247,525,000
Gross unrealized gains	1,140,000		848,000
Gross unrealized losses	1,625,000		2,034,000
Investment securities available for sale	259,332,000		246,339,000
Available-for-sale Securities	259,332,000		246,339,000
Available-for-sale Securities, Gross Realized Gains	67,000,000,000	$ 204,000
U.S. Treasury securities
Investment securities classified as available for sale
Amortized cost	45,973,000		75,973,000
Gross unrealized losses	67,000		72,000
Investment securities available for sale	45,906,000		75,901,000
Available-for-sale Securities	45,906,000		75,901,000
Government sponsored entity debt securities
Investment securities classified as available for sale
Amortized cost	7,412,000		7,653,000
Gross unrealized gains	72,000		57,000
Gross unrealized losses	7,000		22,000
Investment securities available for sale	7,477,000		7,688,000
Available-for-sale Securities	7,477,000		7,688,000
Agency mortgage-backed securities
Investment securities classified as available for sale
Amortized cost	124,459,000		90,629,000
Gross unrealized gains	430,000		373,000
Gross unrealized losses	1,028,000		932,000
Investment securities available for sale	123,861,000		90,070,000
Available-for-sale Securities	123,861,000		90,070,000
Non-agency mortgage-backed securities
Investment securities classified as available for sale
Amortized cost			1,000
Investment securities available for sale			1,000
Available-for-sale Securities			1,000
State and municipal securities
Investment securities classified as available for sale
Amortized cost	31,516,000		25,826,000
Gross unrealized gains	77,000		15,000
Gross unrealized losses	359,000		567,000
Investment securities available for sale	31,234,000		25,274,000
Available-for-sale Securities	31,234,000		25,274,000
Corporate securities
Investment securities classified as available for sale
Amortized cost	50,457,000		47,443,000
Gross unrealized gains	561,000		403,000
Gross unrealized losses	164,000		441,000
Investment securities available for sale	50,854,000		47,405,000
Available-for-sale Securities	$ 50,854,000		$ 47,405,000

INVESTMENT SECURITIES AVAILAB50

INVESTMENT SECURITIES AVAILABLE FOR SALE - Continuous unrealized loss position (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)item
Securities available for sale:
Less than 12 Months, Fair value	$ 149,554,000		$ 169,216,000
Less than 12 Months, Unrealized loss	1,502,000		1,925,000
12 Months or more, Fair value	6,835,000		8,714,000
12 Months or more, Unrealized loss	123,000		109,000
Total, Fair value	156,389,000		177,930,000
Total, Unrealized loss	$ 1,625,000		$ 2,034,000
Unrealized loss
Number of securities, unrealized losses | item			107
Aggregate depreciation	1.03%		1.13%
Other than temporary impairment:
Other than temporary impairment, recognized as losses	$ 0	$ 824,000
U.S. Treasury securities
Securities available for sale:
Less than 12 Months, Fair value	45,906,000		$ 75,901,000
Less than 12 Months, Unrealized loss	67,000		72,000
Total, Fair value	45,906,000		75,901,000
Total, Unrealized loss	67,000		72,000
Government sponsored entity debt securities
Securities available for sale:
Less than 12 Months, Fair value	1,595,000		4,107,000
Less than 12 Months, Unrealized loss	7,000		22,000
Total, Fair value	1,595,000		4,107,000
Total, Unrealized loss	7,000		22,000
Agency mortgage-backed securities
Securities available for sale:
Less than 12 Months, Fair value	80,160,000		57,882,000
Less than 12 Months, Unrealized loss	1,028,000		930,000
12 Months or more, Fair value			402,000
12 Months or more, Unrealized loss			2,000
Total, Fair value	80,160,000		58,284,000
Total, Unrealized loss	1,028,000		932,000
State and municipal securities
Securities available for sale:
Less than 12 Months, Fair value	18,863,000		20,215,000
Less than 12 Months, Unrealized loss	359,000		567,000
Total, Fair value	18,863,000		20,215,000
Total, Unrealized loss	359,000		567,000
Corporate securities
Securities available for sale:
Less than 12 Months, Fair value	3,030,000		11,111,000
Less than 12 Months, Unrealized loss	41,000		334,000
12 Months or more, Fair value	6,835,000		8,312,000
12 Months or more, Unrealized loss	123,000		107,000
Total, Fair value	9,865,000		19,423,000
Total, Unrealized loss	$ 164,000		$ 441,000

INVESTMENT SECURITIES AVAILAB51

INVESTMENT SECURITIES AVAILABLE FOR SALE - Amortized cost and fair value (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Amortized cost of available-for-sale securities, by contractual maturity
Within one year	$ 45,334,000
One to five years	114,365,000
Five to ten years	82,079,000
After ten years	18,039,000
Total, single maturity date	259,817,000
Fair Value of available-for-sale securities, by contractual maturity
Within one year	45,302,000
One to five years	114,258,000
Five to ten years	82,070,000
After ten years	17,702,000
Total, single maturity date	259,332,000
Gross realized gains/losses
Gross realized gains	67,000,000,000	$ 204,000
Gross realized losses	$ 0	$ 0

INVESTMENT SECURITIES HELD TO52

INVESTMENT SECURITIES HELD TO MATURITY - Classified (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 76,276	$ 78,672
Fair value	79,900	81,952
State and municipal securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	76,276	78,672
Gross unrealized gains	3,792	3,517
Gross unrealized losses	168	237
Fair value	$ 79,900	$ 81,952

INVESTMENT SECURITIES HELD TO53

INVESTMENT SECURITIES HELD TO MATURITY - Continuous unrealized loss position (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)item	Dec. 31, 2016USD ($)item
Unrealized loss
Number of securities, unrealized losses | item	31	47
Aggregate depreciation	1.68%	1.40%
State and municipal securities
Securities held to maturity:
Less than 12 Months, Fair value	$ 7,074	$ 13,991
Less than 12 Months, Unrealized loss	83	140
12 Months or more, Fair value	2,754	2,699
12 Months or more, Unrealized loss	85	97
Total, Fair value	9,828	16,690
Total, Unrealized loss	$ 168	$ 237

INVESTMENT SECURITIES HELD TO54

INVESTMENT SECURITIES HELD TO MATURITY - Amortized cost and fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Amortized cost of held-to-maturity securities, by contractual maturity
Within one year	$ 772
One to five years	20,422
Five to ten years	36,395
After ten years	18,687
Amortized cost	76,276	$ 78,672
Fair Value of held-to-maturity securities, by contractual maturity
Within one year	777
One to five years	21,072
Five to ten years	38,870
After ten years	19,181
Fair value	$ 79,900	$ 81,952

LOANS - Summary of loans (Detai

LOANS - Summary of loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Summary of loans
Total loans	$ 2,454,950		$ 2,319,976
Loans, additional information
Net deferred loan fees	2,900		3,100
Unearned discounts	20,800		20,700
Loans held for sale	39,900		70,565
Proceeds from sales of loans held for sale	257,560	$ 205,548
Directors, executive officers, principal shareholders and affiliates
Loans to certain directors, executive officers, principal shareholders and their affiliates:
Loans outstanding to related parties	24,900		26,500
New loans to related parties and other additions	751,000,000
Repayments from related parties and other reductions	2,400
Loans and Leases Receivable, Related Parties, Collections	2,400
Commercial loan portfolio
Summary of loans
Total loans	1,643,655		1,604,767
Commercial loan portfolio | Commercial
Summary of loans
Total loans	475,408		457,827
Commercial loan portfolio | Commercial real estate
Summary of loans
Total loans	997,200		969,615
Commercial loan portfolio | Construction and land development
Summary of loans
Total loans	$ 171,047		177,325
Other loan portfolio | Maximum
Loans, additional information
Term of lease	4 years
Other loan portfolio | Residential real estate
Summary of loans
Total loans	$ 277,402		253,713
Other loan portfolio | Consumer
Summary of loans
Total loans	337,081		270,017
Other loan portfolio | Lease financing
Summary of loans
Total loans	196,812		191,479
Commercial and Residential Loan
Loans, additional information
Loans held for sale	39,900		$ 70,600
Proceeds from sales of loans held for sale	$ 257,600,000	$ 205,500,000

LOANS - Risk category (Details)

LOANS - Risk category (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)region	Dec. 31, 2016USD ($)
Risk category
Number of main regions | region	4
Total loans	$ 2,454,950	$ 2,319,976
Commercial loan portfolio
Risk category
Total loans	1,643,655	1,604,767
Non-PCI loans
Risk category
Total loans	2,436,891	2,291,720
Non-PCI loans | Commercial loan portfolio
Risk category
Total loans	1,632,144	1,583,380
Non-PCI loans | Commercial loan portfolio | Acceptable credit quality
Risk category
Total loans	1,570,128	1,511,506
Non-PCI loans | Commercial loan portfolio | Special mention
Risk category
Total loans	9,635	19,665
Non-PCI loans | Commercial loan portfolio | Substandard
Risk category
Total loans	22,984	34,277
Non-PCI loans | Commercial loan portfolio | Substandard - nonaccrual
Risk category
Total loans	21,239	10,725
Non-PCI loans | Commercial loan portfolio | Not graded
Risk category
Total loans	8,158	7,207
Non-PCI loans | Other loan portfolio
Risk category
Total loans	804,747	708,340
Non-PCI loans | Other loan portfolio | Performing
Risk category
Total loans	799,517	701,767
Non-PCI loans | Other loan portfolio | Impaired
Risk category
Total loans	5,230	6,573
Commercial | Commercial loan portfolio
Risk category
Total loans	475,408	457,827
Commercial | Non-PCI loans | Commercial loan portfolio
Risk category
Total loans	473,575	454,310
Commercial | Non-PCI loans | Commercial loan portfolio | Acceptable credit quality
Risk category
Total loans	454,561	426,560
Commercial | Non-PCI loans | Commercial loan portfolio | Special mention
Risk category
Total loans	2,593	10,930
Commercial | Non-PCI loans | Commercial loan portfolio | Substandard
Risk category
Total loans	11,798	12,649
Commercial | Non-PCI loans | Commercial loan portfolio | Substandard - nonaccrual
Risk category
Total loans	3,943	3,559
Commercial | Non-PCI loans | Commercial loan portfolio | Not graded
Risk category
Total loans	680	612
Commercial real estate | Commercial loan portfolio
Risk category
Total loans	997,200	969,615
Commercial real estate | Non-PCI loans | Commercial loan portfolio
Risk category
Total loans	991,591	963,895
Commercial real estate | Non-PCI loans | Commercial loan portfolio | Acceptable credit quality
Risk category
Total loans	954,766	925,244
Commercial real estate | Non-PCI loans | Commercial loan portfolio | Special mention
Risk category
Total loans	7,042	8,735
Commercial real estate | Non-PCI loans | Commercial loan portfolio | Substandard
Risk category
Total loans	11,186	21,178
Commercial real estate | Non-PCI loans | Commercial loan portfolio | Substandard - nonaccrual
Risk category
Total loans	17,276	7,145
Commercial real estate | Non-PCI loans | Commercial loan portfolio | Not graded
Risk category
Total loans	1,321	1,593
Construction and land development | Commercial loan portfolio
Risk category
Total loans	171,047	177,325
Construction and land development | Non-PCI loans | Commercial loan portfolio
Risk category
Total loans	166,978	165,175
Construction and land development | Non-PCI loans | Commercial loan portfolio | Acceptable credit quality
Risk category
Total loans	160,801	159,702
Construction and land development | Non-PCI loans | Commercial loan portfolio | Substandard
Risk category
Total loans		450
Construction and land development | Non-PCI loans | Commercial loan portfolio | Substandard - nonaccrual
Risk category
Total loans	20	21
Construction and land development | Non-PCI loans | Commercial loan portfolio | Not graded
Risk category
Total loans	6,157	5,002
Residential real estate | Other loan portfolio
Risk category
Total loans	277,402	253,713
Residential real estate | Non-PCI loans | Other loan portfolio
Risk category
Total loans	271,172	247,156
Residential real estate | Non-PCI loans | Other loan portfolio | Performing
Risk category
Total loans	266,884	242,127
Residential real estate | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Total loans	4,288	5,029
Consumer | Other loan portfolio
Risk category
Total loans	337,081	270,017
Consumer | Non-PCI loans | Other loan portfolio
Risk category
Total loans	336,763	269,705
Consumer | Non-PCI loans | Other loan portfolio | Performing
Risk category
Total loans	336,503	269,492
Consumer | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Total loans	260	213
Lease financing | Other loan portfolio
Risk category
Total loans	196,812	191,479
Lease financing | Non-PCI loans | Other loan portfolio
Risk category
Total loans	196,812	191,479
Lease financing | Non-PCI loans | Other loan portfolio | Performing
Risk category
Total loans	196,130	190,148
Lease financing | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Total loans	$ 682	$ 1,331

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0
Additional interest income that would have been recorded had they been current	148,000	123,000
Recognized interest income on loans modified under troubled debt restructurings	18,000	$ 45,000
Non-PCI loans
Summary of impaired loans
Nonaccrual loans	26,439,000		$ 16,871,000
Loans modified under troubled debt restructuring	17,535,000		17,952,000
Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	26,439,000		16,871,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	423,000		2,405,000
Loans modified under troubled debt restructuring	2,071,000		12,327,000
Total impaired loans	28,933,000		31,603,000
PCI loans
Summary of impaired loans
Total impaired loans	18,100,000		28,300,000
Commercial | Commercial loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	3,943,000		3,559,000
Loans modified under troubled debt restructuring	357,000		611,000
Commercial | Commercial loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	3,943,000		3,559,000
Accruing loans contractually past due 90 days or more as to interest or principal payments			2,378,000
Loans modified under troubled debt restructuring	357,000		611,000
Total impaired loans	4,300,000		6,548,000
Commercial real estate | Commercial loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	17,276,000		7,145,000
Loans modified under troubled debt restructuring	16,160,000		16,351,000
Commercial real estate | Commercial loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	17,276,000		7,145,000
Loans modified under troubled debt restructuring	1,255,000		11,253,000
Total impaired loans	18,531,000		18,398,000
Construction and land development | Commercial loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	19,000		21,000
Loans modified under troubled debt restructuring	62,000		63,000
Construction and land development | Commercial loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	19,000		21,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	394,000
Loans modified under troubled debt restructuring	62,000		63,000
Total impaired loans	475,000		84,000
Residential real estate | Other loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	4,288,000		4,629,000
Loans modified under troubled debt restructuring	956,000		927,000
Residential real estate | Other loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	4,288,000		4,629,000
Loans modified under troubled debt restructuring	397,000		400,000
Total impaired loans	4,685,000		5,029,000
Consumer | Other loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	231,000		187,000
Consumer | Other loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	231,000		187,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	29,000		26,000
Total impaired loans	260,000		213,000
Lease financing | Other loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	682,000		1,330,000
Lease financing | Other loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	682,000		1,330,000
Accruing loans contractually past due 90 days or more as to interest or principal payments			1,000
Total impaired loans	$ 682,000		$ 1,331,000

LOANS - Impaired Loans Individu

LOANS - Impaired Loans Individually Evaluated (excluding PCI loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Impaired loans (excluding PCI loans) by portfolio
Difference between the recorded investment and unpaid principal balance	$ 3,900		$ 6,700
Impaired | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	10,019		11,382
With a valuation allowance, Unpaid Principal Balance	13,397		12,228
With a valuation allowance, Average Annual Recorded Investment	10,428	$ 6,385
With a related valuation allowance, Interest Income Recognized while on Impaired Status	23
With no related valuation allowance, Recorded Investment	18,914		20,221
With no related valuation allowance, Unpaid Principal Balance	19,414		26,113
With no related valuation allowance, Average Annual Recorded Investment	19,088	17,294
With no related valuation allowance, Interest Income Recognized while on Impaired Status		51
Total impaired loans	28,933		31,603
Total, Unpaid Principal Balance	32,811		38,341
Total, Related Valuation Allowance	2,899		2,182
Total, Average Annual Recorded Investment	29,516	23,679
Total, Interest Income Recognized While on Impaired Status	23	51
Commercial | Impaired | Commercial loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	3,550		3,877
With a valuation allowance, Unpaid Principal Balance	5,158		3,888
With a valuation allowance, Average Annual Recorded Investment	3,532	362
With a related valuation allowance, Interest Income Recognized while on Impaired Status	1
With no related valuation allowance, Recorded Investment	750		2,671
With no related valuation allowance, Unpaid Principal Balance	804		7,567
With no related valuation allowance, Average Annual Recorded Investment	828	5,572
Total impaired loans	4,300		6,548
Total, Unpaid Principal Balance	5,962		11,455
Total, Related Valuation Allowance	1,364		882
Total, Average Annual Recorded Investment	4,360	5,934
Total, Interest Income Recognized While on Impaired Status	1
Commercial real estate | Impaired | Commercial loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	2,527		2,142
With a valuation allowance, Unpaid Principal Balance	3,541		2,331
With a valuation allowance, Average Annual Recorded Investment	2,845	1,333
With a related valuation allowance, Interest Income Recognized while on Impaired Status	17
With no related valuation allowance, Recorded Investment	16,004		16,256
With no related valuation allowance, Unpaid Principal Balance	16,260		17,058
With no related valuation allowance, Average Annual Recorded Investment	16,085	10,377
With no related valuation allowance, Interest Income Recognized while on Impaired Status		45
Total impaired loans	18,531		18,398
Total, Unpaid Principal Balance	19,801		19,389
Total, Related Valuation Allowance	680		309
Total, Average Annual Recorded Investment	18,930	11,710
Total, Interest Income Recognized While on Impaired Status	17	45
Construction and land development | Impaired | Commercial loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	81		84
With a valuation allowance, Unpaid Principal Balance	82		84
With a valuation allowance, Average Annual Recorded Investment	82	68
With a related valuation allowance, Interest Income Recognized while on Impaired Status	1
With no related valuation allowance, Recorded Investment	394
With no related valuation allowance, Unpaid Principal Balance	393
With no related valuation allowance, Average Annual Recorded Investment	394	82
With no related valuation allowance, Interest Income Recognized while on Impaired Status		1
Total impaired loans	475		84
Total, Unpaid Principal Balance	475		84
Total, Related Valuation Allowance	8		8
Total, Average Annual Recorded Investment	476	150
Total, Interest Income Recognized While on Impaired Status	1	1
Residential real estate | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	3,429		3,735
With a valuation allowance, Unpaid Principal Balance	4,178		4,404
With a valuation allowance, Average Annual Recorded Investment	3,494	3,604
With a related valuation allowance, Interest Income Recognized while on Impaired Status	4
With no related valuation allowance, Recorded Investment	1,256		1,294
With no related valuation allowance, Unpaid Principal Balance	1,446		1,462
With no related valuation allowance, Average Annual Recorded Investment	1,271	1,258
With no related valuation allowance, Interest Income Recognized while on Impaired Status		5
Total impaired loans	4,685		5,029
Total, Unpaid Principal Balance	5,624		5,866
Total, Related Valuation Allowance	578		604
Total, Average Annual Recorded Investment	4,765	4,862
Total, Interest Income Recognized While on Impaired Status	4	5
Consumer | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	235		213
With a valuation allowance, Unpaid Principal Balance	241		190
With a valuation allowance, Average Annual Recorded Investment	278	35
With no related valuation allowance, Recorded Investment	25
With no related valuation allowance, Unpaid Principal Balance	26		26
With no related valuation allowance, Average Annual Recorded Investment	25	5
Total impaired loans	260		213
Total, Unpaid Principal Balance	267		216
Total, Related Valuation Allowance	31		23
Total, Average Annual Recorded Investment	303	40
Lease financing | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	197		1,331
With a valuation allowance, Unpaid Principal Balance	197		1,331
With a valuation allowance, Average Annual Recorded Investment	197	983
With no related valuation allowance, Recorded Investment	485
With no related valuation allowance, Unpaid Principal Balance	485
With no related valuation allowance, Average Annual Recorded Investment	485
Total impaired loans	682		1,331
Total, Unpaid Principal Balance	682		1,331
Total, Related Valuation Allowance	238		$ 356
Total, Average Annual Recorded Investment	$ 682	$ 983

LOANS - Aging Status of recorde

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Aging Status of recorded investment
Total loans	$ 2,454,950	$ 2,319,976
Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	26,439	16,871
Total Past Due	40,937	30,043
Current	2,395,954	2,261,677
Total loans	2,436,891	2,291,720
Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	8,213	9,241
Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	5,862	1,526
Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	423	2,405
Commercial loan portfolio
Aging Status of recorded investment
Total loans	1,643,655	1,604,767
Commercial loan portfolio | Non-PCI loans
Aging Status of recorded investment
Total loans	1,632,144	1,583,380
Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Total loans	804,747	708,340
Commercial | Commercial loan portfolio
Aging Status of recorded investment
Total loans	475,408	457,827
Commercial | Commercial loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	3,943	3,559
Total Past Due	10,264	9,401
Current	463,311	444,909
Total loans	473,575	454,310
Commercial | Commercial loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,766	3,326
Commercial | Commercial loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	3,555	138
Commercial | Commercial loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		2,378
Commercial real estate | Commercial loan portfolio
Aging Status of recorded investment
Total loans	997,200	969,615
Commercial real estate | Commercial loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	17,276	7,145
Total Past Due	18,584	8,580
Current	973,007	955,315
Total loans	991,591	963,895
Commercial real estate | Commercial loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	608	648
Commercial real estate | Commercial loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	700	787
Construction and land development | Commercial loan portfolio
Aging Status of recorded investment
Total loans	171,047	177,325
Construction and land development | Commercial loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	19	21
Total Past Due	463	21
Current	166,515	165,154
Total loans	166,978	165,175
Construction and land development | Commercial loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	50
Construction and land development | Commercial loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	394
Residential real estate | Other loan portfolio
Aging Status of recorded investment
Total loans	277,402	253,713
Residential real estate | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	4,288	4,629
Total Past Due	7,149	8,114
Current	264,023	239,042
Total loans	271,172	247,156
Residential real estate | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,358	3,472
Residential real estate | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	503	13
Consumer | Other loan portfolio
Aging Status of recorded investment
Total loans	337,081	270,017
Consumer | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	231	187
Total Past Due	3,456	2,502
Current	333,307	267,203
Total loans	336,763	269,705
Consumer | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,092	1,701
Consumer | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	1,104	588
Consumer | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	29	26
Lease financing | Other loan portfolio
Aging Status of recorded investment
Total loans	196,812	191,479
Lease financing | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	682	1,330
Total Past Due	1,021	1,425
Current	195,791	190,054
Total loans	196,812	191,479
Lease financing | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	$ 339	94
Lease financing | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		$ 1

LOANS - TDRs by portfolio (Deta

LOANS - TDRs by portfolio (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 198,000	$ 136,000
Unfunded commitments		0	$ 0
Minimum | Performing
Troubled debt restructuring
TDRs, individually evaluated for impairment, threshold	50,000
Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,071,000	12,327,000
TDR's Nonaccrual	15,464,000	5,625,000
Total	17,535,000	17,952,000
Commercial | Commercial loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	357,000	611,000
Total	357,000	611,000
Commercial real estate | Commercial loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	1,255,000	11,253,000
TDR's Nonaccrual	14,905,000	5,098,000
Total	16,160,000	16,351,000
Construction and land development | Commercial loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	62,000	63,000
Total	62,000	63,000
Residential real estate | Other loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	397,000	400,000
TDR's Nonaccrual	559,000	527,000
Total	$ 956,000	$ 927,000

LOANS - TDRs by portfolio - res

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)loan
Troubled debt restructurings:
Number of loans | loan	1
Pre-modification outstanding balance	$ 362
Post-modification outstanding balance	$ 353
Commercial | Commercial loan portfolio
Troubled debt restructurings:
Number of loans | loan	1
Pre-modification outstanding balance	$ 362
Post-modification outstanding balance	$ 353

LOANS - Allowance for loan loss

LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in allowance for loan losses :
Beginning balance	$ 14,862	$ 15,988
Provision for loan losses	1,533	1,125
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(1,167)	(2,696)
Loan recoveries	577	154
Net loan (charge-offs) recoveries	(590)	(2,542)
Ending balance	15,805	14,571
Non-PCI loans
Changes in allowance for loan losses :
Beginning balance	13,744	14,093
Provision for loan losses	1,405	1,083
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(1,167)	(2,696)
Loan recoveries	519	128
Net loan (charge-offs) recoveries	(648)	(2,568)
Ending balance	14,501	12,608
PCI loans
Changes in allowance for loan losses :
Beginning balance	1,118	1,895
Provision for loan losses	128	42
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan recoveries	58	26
Net loan (charge-offs) recoveries	58	26
Ending balance	$ 1,304	$ 1,963

LOANS - Allowance for loan lo63

LOANS - Allowance for loan losses by loan portfolio and recorded investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Changes in allowance for loan losses :
Beginning balance	$ 14,862	$ 15,988
Provision for loan losses	1,533	1,125
Charge-offs	(1,167)	(2,696)
Recoveries	577	154
Ending balance	15,805	14,571
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			$ 2,561	$ 1,844
Loans collectively evaluated for impairment			338	338
Non-impaired loans collectively evaluated for impairment			11,602	11,562
Loans acquired with deteriorated credit quality			1,304	1,118
Total	14,862	15,988	15,805	14,862
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			25,824	28,432
Impaired loans collectively evaluated for impairment			3,109	3,171
Non-impaired loans collectively evaluated for impairment			2,407,958	2,260,117
Loans acquired with deteriorated credit quality			18,059	28,256
Total loans			2,454,950	2,319,976
Commercial loan portfolio
Recorded investment (loan balance) at December 31, 2014:
Total loans			1,643,655	1,604,767
Commercial | Commercial loan portfolio
Changes in allowance for loan losses :
Beginning balance	5,920	6,917
Provision for loan losses	70	657
Charge-offs	(9)	(2,260)
Recoveries	53	39
Ending balance	6,034	5,353
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			1,343	878
Loans collectively evaluated for impairment			21	4
Non-impaired loans collectively evaluated for impairment			4,177	4,539
Loans acquired with deteriorated credit quality			493	499
Total	5,920	6,917	6,034	5,920
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			4,105	6,504
Impaired loans collectively evaluated for impairment			195	44
Non-impaired loans collectively evaluated for impairment			469,275	447,762
Loans acquired with deteriorated credit quality			1,833	3,517
Total loans			475,408	457,827
Commercial real estate | Commercial loan portfolio
Changes in allowance for loan losses :
Beginning balance	3,225	5,179
Provision for loan losses	821	(196)
Charge-offs	(296)	(139)
Recoveries	180	39
Ending balance	3,930	4,883
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			659	296
Loans collectively evaluated for impairment			21	13
Non-impaired loans collectively evaluated for impairment			3,010	2,684
Loans acquired with deteriorated credit quality			240	232
Total	3,225	5,179	3,930	3,225
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			18,336	18,275
Impaired loans collectively evaluated for impairment			195	123
Non-impaired loans collectively evaluated for impairment			973,060	945,497
Loans acquired with deteriorated credit quality			5,609	5,720
Total loans			997,200	969,615
Construction and land development | Commercial loan portfolio
Changes in allowance for loan losses :
Beginning balance	345	435
Provision for loan losses	92	(99)
Recoveries	23	9
Ending balance	460	345
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			6	6
Loans collectively evaluated for impairment			2	2
Non-impaired loans collectively evaluated for impairment			452	337
Total	345	435	460	345
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			455	63
Impaired loans collectively evaluated for impairment			20	21
Non-impaired loans collectively evaluated for impairment			166,503	165,091
Loans acquired with deteriorated credit quality			4,069	12,150
Total loans			171,047	177,325
Residential real estate | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	2,929	2,120
Provision for loan losses	30	262
Charge-offs	(172)	(100)
Recoveries	55	43
Ending balance	2,842	2,325
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			365	379
Loans collectively evaluated for impairment			213	225
Non-impaired loans collectively evaluated for impairment			1,852	1,968
Loans acquired with deteriorated credit quality			412	357
Total	2,929	2,120	2,842	2,929
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			2,728	2,920
Impaired loans collectively evaluated for impairment			1,957	2,109
Non-impaired loans collectively evaluated for impairment			266,487	242,127
Loans acquired with deteriorated credit quality			6,230	6,557
Total loans			277,402	253,713
Consumer | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	930	749
Provision for loan losses	482	35
Charge-offs	(176)	(65)
Recoveries	48	23
Ending balance	1,284	742
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			3
Loans collectively evaluated for impairment			28	23
Non-impaired loans collectively evaluated for impairment			1,094	877
Loans acquired with deteriorated credit quality			159	30
Total	930	749	1,284	930
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			3
Impaired loans collectively evaluated for impairment			257	213
Non-impaired loans collectively evaluated for impairment			336,503	269,492
Loans acquired with deteriorated credit quality			318	312
Total loans			337,081	270,017
Lease financing | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	1,513	588
Provision for loan losses	38	466
Charge-offs	(514)	(132)
Recoveries	218	1
Ending balance	1,255	923
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			185	285
Loans collectively evaluated for impairment			53	71
Non-impaired loans collectively evaluated for impairment			1,017	1,157
Total	$ 1,513	$ 588	1,255	1,513
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			197	670
Impaired loans collectively evaluated for impairment			485	661
Non-impaired loans collectively evaluated for impairment			196,130	190,148
Total loans			$ 196,812	$ 191,479

LOANS - PCI Loans - Changes in

LOANS - PCI Loans - Changes in the accretable yield for PCI loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in the accretable yield for PCI loans
Balance at beginning of period	$ 9,035	$ 10,526
Accretion	(2,243)	(1,041)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)	9
Reclassification from (to) non-accretable	2,032	282
Balance at end of period	$ 8,833	$ 9,767

LOANS - Covered and noncovered

LOANS - Covered and noncovered loans (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Covered and noncovered loans
Total loans	$ 2,454,950	$ 2,319,976
Non-PCI loans
Covered and noncovered loans
Total loans	2,436,891	2,291,720
PCI loans
Covered and noncovered loans
Total loans	18,059	28,256
Customer outstanding balances	22,100	34,600
Commercial loan portfolio
Covered and noncovered loans
Total loans	1,643,655	1,604,767
Commercial loan portfolio | Non-PCI loans
Covered and noncovered loans
Total loans	1,632,144	1,583,380
Other loan portfolio | Non-PCI loans
Covered and noncovered loans
Total loans	804,747	708,340
Commercial | Commercial loan portfolio
Covered and noncovered loans
Non-covered loans	475,408	457,827
Total loans	475,408	457,827
Commercial | Commercial loan portfolio | Non-PCI loans
Covered and noncovered loans
Non-covered loans	473,575	454,310
Total loans	473,575	454,310
Commercial | Commercial loan portfolio | PCI loans
Covered and noncovered loans
Non-covered loans	1,833	3,517
Commercial real estate | Commercial loan portfolio
Covered and noncovered loans
Non-covered loans	997,200	969,615
Total loans	997,200	969,615
Commercial real estate | Commercial loan portfolio | Non-PCI loans
Covered and noncovered loans
Non-covered loans	991,591	963,895
Total loans	991,591	963,895
Commercial real estate | Commercial loan portfolio | PCI loans
Covered and noncovered loans
Non-covered loans	5,609	5,720
Construction and land development | Commercial loan portfolio
Covered and noncovered loans
Non-covered loans	171,047	177,325
Total loans	171,047	177,325
Construction and land development | Commercial loan portfolio | Non-PCI loans
Covered and noncovered loans
Non-covered loans	166,978	165,175
Total loans	166,978	165,175
Construction and land development | Commercial loan portfolio | PCI loans
Covered and noncovered loans
Non-covered loans	4,069	12,150
Residential real estate | Other loan portfolio
Covered and noncovered loans
Non-covered loans	277,402	253,713
Total loans	277,402	253,713
Residential real estate | Other loan portfolio | Non-PCI loans
Covered and noncovered loans
Non-covered loans	271,172	247,156
Total loans	271,172	247,156
Residential real estate | Other loan portfolio | PCI loans
Covered and noncovered loans
Non-covered loans	6,230	6,557
Consumer | Other loan portfolio
Covered and noncovered loans
Non-covered loans	337,081	270,017
Total loans	337,081	270,017
Consumer | Other loan portfolio | Non-PCI loans
Covered and noncovered loans
Non-covered loans	336,763	269,705
Total loans	336,763	269,705
Consumer | Other loan portfolio | PCI loans
Covered and noncovered loans
Non-covered loans	318	312
Lease financing | Other loan portfolio
Covered and noncovered loans
Non-covered loans	196,812	191,479
Total loans	196,812	191,479
Lease financing | Other loan portfolio | Non-PCI loans
Covered and noncovered loans
Non-covered loans	196,812	191,479
Total loans	$ 196,812	$ 191,479

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Servicing Assets at Fair Value [Line Items]
Total loans serviced for others	$ 5,688,403	$ 5,644,509
Commercial FHA Mortgage Loans
Servicing Assets at Fair Value [Line Items]
Total loans serviced for others	3,860,180	3,811,066
Residential mortgage loans
Servicing Assets at Fair Value [Line Items]
Total loans serviced for others	$ 1,828,223	$ 1,833,443

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in MSR (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Mortgage servicing rights:
Balance at beginning of period	$ 71,710	$ 67,218
Balance at end of period	72,335	68,298
Valuation allowances – residential mortgage loans:
Balance at beginning of period	3,702	567
Additions	188	2,245
Reductions	(112)
Balance at end of period	3,778	2,812
Mortgage servicing rights, net	68,557	65,486
Fair Value	68,557	65,486	$ 68,008	$ 66,700
Commercial FHA Mortgage Loans
Mortgage servicing rights:
Servicing rights capitalized	1,481	1,702
Amortization	(639)	(567)
Residential mortgage loans
Mortgage servicing rights:
Servicing rights capitalized	518	659
Amortization	$ (735)	$ (714)

MORTGAGE SERVICING RIGHTS - Sum

MORTGAGE SERVICING RIGHTS - Summary of key assumptions (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Commercial FHA Mortgage Loans
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Servicing Fee	0.13%	0.13%
Interest Rate	3.70%	3.72%
Remaining Years to Maturity	30 years	30 years 2 months 12 days
Prepayment Rate	8.29%	8.31%
Servicing Cost	1000.00%	1000.00%
Commercial FHA Mortgage Loans | Maximum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	13.00%	13.00%
Commercial FHA Mortgage Loans | Minimum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	10.00%	10.00%
Residential mortgage loans
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Servicing Fee	0.26%	0.26%
Interest Rate	3.89%	3.89%
Remaining Years to Maturity	24 years 1 month 6 days	24 years 2 months 12 days
Prepayment Rate	9.66%	9.72%
Servicing Cost	61.00%	60.00%
Residential mortgage loans | Maximum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	11.00%	11.00%
Residential mortgage loans | Minimum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	9.00%	9.00%

GOODWILL AND INTANGIBLE ASSET69

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 28, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill	$ 50,807		$ 48,836
CedarPoint Investment Advisors, Inc [Member]
Goodwill [Line Items]
Goodwill		$ 2,000
Amount of increase in goodwill as a result of sterling acquisition	$ 2,000

GOODWILL AND INTANGIBLE ASSET70

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	Mar. 28, 2017	Nov. 10, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finite-lived intangible assets
Gross Carrying Amount			$ 27,984		$ 26,013
Accumulated Amortization			(19,351)		(18,826)
Total			8,633		7,187
Amortization of intangible assets			525	$ 580
Estimated amortization expense of intangible assets
Total			8,633		7,187
Core deposits
Finite-lived intangible assets
Gross Carrying Amount			20,542		20,542
Accumulated Amortization			(16,575)		(16,181)
Total			3,967		4,361
Estimated amortization expense of intangible assets
Total			3,967		4,361
Customer relationship
Finite-lived intangible assets
Gross Carrying Amount			7,442		5,471
Accumulated Amortization			(2,776)		(2,645)
Total			4,666		2,826
Estimated amortization expense of intangible assets
Total			$ 4,666		$ 2,826
Sterling | Customer relationship
Finite-lived intangible assets
Intangibles		$ 2,300
Amortization period		20 years
CedarPoint Investment Advisors, Inc [Member] | Customer relationship
Finite-lived intangible assets
Intangibles	$ 2,000
Amortization period	10 years

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Net gains recognized on derivative instruments	$ 1,500	$ 1,200
Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	338,184		$ 566,147
Fair value of asset derivatives	8,023		6,378
Interest rate lock commitments | Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	338,184		264,359
Fair value of asset derivatives	8,023		6,253
Forward commitments to sell mortgage-backed securities | Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives			301,788
Fair value of asset derivatives			$ 125
Forward commitments to sell mortgage-backed securities | Other liabilities.
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, liability derivatives	354,405
Fair value of liability derivatives	$ 140

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Classification of deposits
Non-interest bearing demand	$ 528,021	$ 562,333
Interest bearing:
Checking	751,193	656,248
Money market	415,322	399,851
Savings	169,715	166,910
Time	663,225	619,024
Total deposits	$ 2,527,476	$ 2,404,366

SHORT-TERM BORROWINGS (Details)

SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Outstanding at period-end	$ 124,035	$ 131,557
Average amount outstanding	143,583	130,228
Maximum amount outstanding at any month end	$ 152,813	$ 168,369
Weighted average interest rate:
During period	0.23%	0.23%
End of period	0.22%	0.21%
Short-term Debt, Other Disclosures [Abstract]
Federal funds lines of credit	$ 30,000
Commercial real estate
Short-term Debt, Other Disclosures [Abstract]
Loans Pledged as Collateral	31,000	$ 43,300
Securities sold under repurchase agreement
Short-term Debt, Other Disclosures [Abstract]
Investment securities pledged/collateralized for secured borrowings	132,400	140,000
Federal Reserve Discount Window
Short-term Debt, Other Disclosures [Abstract]
Line of credit	$ 28,600	$ 35,100

FHLB ADVANCES AND OTHER BORRO74

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings	$ 250,353	$ 237,518
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances, collateral for mortgage and home equity line of credit loans	1,240,000	1,180,000
FHLB advances – fixed rate, fixed term, at rates averaging 0.0% and 0.93%, maturing through May 2023
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings	$ 250,000	$ 237,500
Federal Home Loan Bank Advances, Interest Rate Information
Federal Home Loan Bank advances, interest rate	1.05%	0.89%
Obligations under capital leases – implicit interest rate of 1.70% – maturing through July 2018
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings	$ 353	$ 18

SUBORDINATED DEBT (Details)

SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Subordinated Borrowing [Line Items]
Carrying amount	$ 54,532	$ 54,508
Subordinate debt, $40,325 maturing June 18, 2025
Subordinated Borrowing [Line Items]
Fixed interest rate	6.00%
Face amount	$ 40,325
Carrying amount	$ 39,747	39,729
Duration with fixed interest rate	5 years
Debt Instrument, Description of Variable Rate Basis	three month LIBOR
Subordinate debt, $40,325 maturing June 18, 2025 | LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)	4.35%
Subordinate debt, $15,000 maturing June 18, 2025
Subordinated Borrowing [Line Items]
Fixed interest rate	6.50%
Face amount	$ 15,000
Carrying amount	$ 14,785	$ 14,779

TRUST PREFERRED DEBNTURES (Deta

TRUST PREFERRED DEBNTURES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Jun. 05, 2013	Jun. 07, 2007	Nov. 30, 2006	Mar. 26, 2004
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 37,496	$ 37,405
Trust preferred debentures maturing January 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 2,012	$ 1,996
Trust preferred debentures maturing January 23, 2034 | Grant Park Trust
TRUST PREFERRED DEBENTURES
Face amount			$ 3,000
Trust preferred debentures maturing January 23, 2034 | Grant Park Trust | LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.85%
Interest rate (as a percent)	3.89%	3.74%
Trust preferred debentures maturing April 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 9,957	$ 9,957
Trust preferred debentures maturing April 23, 2034 | Midland Trust
TRUST PREFERRED DEBENTURES
Face amount						$ 10,000
Trust preferred debentures maturing April 23, 2034 | Midland Trust | LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.75%
Interest rate (as a percent)	3.79%	3.63%
Trust preferred debentures maturing December 31, 2036
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 13,178	$ 13,141
Trust preferred debentures maturing December 31, 2036 | LSHC Trust III
TRUST PREFERRED DEBENTURES
Face amount					$ 20,000
Trust preferred debentures maturing December 31, 2036 | LSHC Trust III | LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.75%
Interest rate (as a percent)	2.88%	2.71%
Trust preferred debentures maturing September 6, 2037
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 12,349	$ 12,311
Trust preferred debentures maturing September 6, 2037 | LSHC Trust IV
TRUST PREFERRED DEBENTURES
Face amount				$ 20,000
Trust preferred debentures maturing September 6, 2037 | LSHC Trust IV | LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.47%
Interest rate (as a percent)	2.57%	2.42%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net Income (Loss) Available to Common Stockholders, Basic	$ 8,490	$ 5,119
Common shareholder dividends	(3,109)	(2,124)
Unvested restricted stock award dividends	(20)	(13)
Undistributed earnings to unvested restricted stock awards	(32)	(18)
Undistributed earnings to common shareholders	5,329	2,964
Basic
Distributed earnings to common shareholders	3,109	2,124
Undistributed earnings to common shareholders	5,329	2,964
Net income	8,490	5,119
Total common shareholders earnings	8,438	5,088
Diluted
Distributed earnings to common shareholders	3,109	2,124
Undistributed earnings to common shareholders	5,329	2,964
Net income	8,490	5,119
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	1
Total common shareholders earnings, diluted	$ 8,439	$ 5,088
Weighted average common shares outstanding, basic (In shares)	15,736,412	11,957,381
Weighted average common shares outstanding, diluted (In shares)	16,351,637	12,229,293
Basic earnings per common share (In dollars per share)	$ 0.54	$ 0.43
Diluted earnings per common share (In dollars per share)	$ 0.52	$ 0.42
Options and warrants
Add back:
Options and warrants	615,225	271,912

CAPITAL REQUIREMENTS (Details)

CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 378,652	$ 374,955
Total Capital (to Risk Weighted Assets): Actual Ratio	13.48%	13.85%
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 224,732	$ 216,612
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	8.00%	8.00%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 308,035	$ 305,283
Tier I Capital (to Risk Weighted Assets): Actual Ratio	10.97%	11.27%
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 168,549	$ 162,459
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	6.00%	6.00%
Common equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 255,530	$ 253,273
Common equity Tier 1 capital (to risk-weighted assets): Actual Ratio	9.10%	9.35%
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 126,412	$ 121,844
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Ratio	4.50%	4.50%
Tier I Capital (to Average Assets): Actual Amount	$ 308,035	$ 305,283
Tier I Capital (to Average Assets): Actual Ratio	9.61%	9.76%
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 128,249	$ 125,076
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	4.00%	4.00%
Midland States Bank
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 335,284	$ 329,759
Total Capital (to Risk Weighted Assets): Actual Ratio	11.93%	12.17%
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 224,891	$ 216,773
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	8.00%	8.00%
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements	$ 281,114	$ 270,966
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements	10.00%	10.00%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 319,199	$ 314,595
Tier I Capital (to Risk Weighted Assets): Actual Ratio	11.35%	11.61%
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 168,668	$ 162,580
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	6.00%	6.00%
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements	$ 224,891	$ 216,773
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements	8.00%	8.00%
Common equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 319,199	$ 314,595
Common equity Tier 1 capital (to risk-weighted assets): Actual Ratio	11.35%	11.61%
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 126,501	$ 121,935
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Ratio	4.50%	4.50%
Common equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements	$ 182,724	$ 176,128
Common equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements	6.50%	6.50%
Tier I Capital (to Average Assets): Actual Amount	$ 319,199	$ 314,595
Tier I Capital (to Average Assets): Actual Ratio	9.94%	10.05%
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 128,449	$ 125,271
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	4.00%	4.00%
Tier I Capital (to Average Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements	$ 160,562	$ 156,589
Tier I Capital (to Average Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements	5.00%	5.00%

FAIR VALUE OF FINANCIAL INSTR79

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Available-for-sale Securities	$ 259,332	$ 246,339
U.S. Treasury securities
Assets
Available-for-sale Securities	45,906	75,901
Government sponsored entity debt securities
Assets
Available-for-sale Securities	7,477	7,688
State and municipal securities
Assets
Available-for-sale Securities	31,234	25,274
Corporate securities
Assets
Available-for-sale Securities	50,854	47,405
Level 1
Assets
Available-for-sale Securities	45,906	75,901
Level 2
Assets
Available-for-sale Securities	205,692	162,957
Loans held for sale	39,900	70,565
Level 2 | Interest rate lock commitments
Assets
Derivative Assets	8,023	6,253
Level 2 | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets		125
Liabilities
Derivative liability	140
Level 3
Assets
Available-for-sale Securities	7,734	7,481
Recurring member
Assets
Loans held for sale	39,900	70,565
Total Assets	307,255	323,282
Recurring member | Interest rate lock commitments
Assets
Derivative Assets	8,023	6,253
Recurring member | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets		125
Liabilities
Derivative liability	140
Recurring member | U.S. Treasury securities
Assets
Available-for-sale Securities	45,906	75,901
Recurring member | Government sponsored entity debt securities
Assets
Available-for-sale Securities	7,477	7,688
Recurring member | Agency mortgage-backed securities
Assets
Available-for-sale Securities	123,861	90,070
Recurring member | Non-agency mortgage-backed securities
Assets
Available-for-sale Securities		1
Recurring member | State and municipal securities
Assets
Available-for-sale Securities	31,234	25,274
Recurring member | Corporate securities
Assets
Available-for-sale Securities	50,854	47,405
Recurring member | Level 1
Assets
Total Assets	45,906	75,901
Recurring member | Level 1 | U.S. Treasury securities
Assets
Available-for-sale Securities	45,906	75,901
Recurring member | Level 2
Assets
Loans held for sale	39,900	70,565
Total Assets	253,615	239,900
Recurring member | Level 2 | Interest rate lock commitments
Assets
Derivative Assets	8,023	6,253
Recurring member | Level 2 | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets		125
Liabilities
Derivative liability	140
Recurring member | Level 2 | Government sponsored entity debt securities
Assets
Available-for-sale Securities	7,477	7,688
Recurring member | Level 2 | Agency mortgage-backed securities
Assets
Available-for-sale Securities	123,861	90,070
Recurring member | Level 2 | State and municipal securities
Assets
Available-for-sale Securities	31,234	25,274
Recurring member | Level 2 | Corporate securities
Assets
Available-for-sale Securities	43,120	39,925
Recurring member | Level 3
Assets
Total Assets	7,734	7,481
Recurring member | Level 3 | Non-agency mortgage-backed securities
Assets
Available-for-sale Securities		1
Recurring member | Level 3 | Corporate securities
Assets
Available-for-sale Securities	7,734	7,480
Non recurring member
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	68,557
Impaired loans	7,581	10,202
Other real estate owned	1,102	165
Assets held for sale		1,550
Non recurring member | Level 2
Assets measured at fair value on a non-recurring basis:
Impaired loans	1,875	6,635
Other real estate owned	1,102	165
Assets held for sale		1,550
Non recurring member | Level 3
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	68,557
Impaired loans	$ 5,706	$ 3,567

FAIR VALUE OF FINANCIAL INSTR80

FAIR VALUE OF FINANCIAL INSTRUMENTS - Losses Recognized on Assets, Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights	$ 76	$ 2,245
Non recurring member
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights	76	2,245
Impaired loans	350	3,135
Other real estate owned	172
Total loss on assets measured on a nonrecurring basis	$ 598	$ 5,380

FAIR VALUE OF FINANCIAL INSTR81

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Corporate securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 7,480,000
Transferred from Level 2		$ 6,749,000
Total realized in earnings	95,000	73,000
Total unrealized in other comprehensive income	245,000	(22,000)
Net settlements (principal and interest)	(86,000)	(64,000)
Ending balance	7,734,000	6,736,000
Non-agency mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	1,000
Transferred from Level 2	2,000	2,000
Net settlements (principal and interest)	$ (1,000)
Ending balance		$ 2,000

FAIR VALUE OF FINANCIAL INSTR82

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Investment securities available for sale	$ 259,332	$ 246,339
Investment securities held to maturity	79,900	81,952
Accrued interest receivable	7,763	8,202
Liabilities
Trust preferred debentures	37,496	37,405
Accrued interest payable	1,985	1,045
Level 1
Assets
Cash and due from banks	217,658	189,543
Federal funds sold	438	1,173
Investment securities available for sale	45,906	75,901
Level 2
Assets
Investment securities available for sale	205,692	162,957
Investment securities held to maturity	79,900	81,952
Nonmarketable equity securities	20,047	19,485
Loans held for sale	39,900	70,565
Accrued interest receivable	7,763	8,202
Liabilities
Deposits	2,526,137	2,404,231
Short-term borrowings	124,035	131,557
FHLB and other borrowings	249,804	236,736
Subordinated debt	49,736	49,692
Trust preferred debentures	34,538	33,054
Accrued interest payable	1,985
Level 3
Assets
Investment securities available for sale	7,734	7,481
Loans, net	2,436,880	2,305,206
Carrying value
Assets
Cash and due from banks	217,658	189,543
Federal funds sold	438	1,173
Investment securities available for sale	259,332	246,339
Investment securities held to maturity	76,276	78,672
Nonmarketable equity securities	20,047	19,485
Loans, net	2,439,145	2,305,114
Loans held for sale	39,900	70,565
Accrued interest receivable	7,763	8,202
Liabilities
Deposits	2,527,476	2,404,366
Short-term borrowings	124,035	131,557
FHLB and other borrowings	250,353	237,518
Subordinated debt	54,532	54,508
Trust preferred debentures	37,496	37,405
Accrued interest payable	1,985
Fair value
Assets
Cash and due from banks	217,658	189,543
Federal funds sold	438	1,173
Investment securities available for sale	259,332	246,339
Investment securities held to maturity	79,900	81,952
Nonmarketable equity securities	20,047	19,485
Loans, net	2,436,880	2,305,206
Loans held for sale	39,900	70,565
Accrued interest receivable	7,763	8,202
Liabilities
Deposits	2,526,137	2,404,231
Short-term borrowings	124,035	131,557
FHLB and other borrowings	249,804	236,736
Subordinated debt	49,736	49,692
Trust preferred debentures	34,538	33,054
Accrued interest payable	1,985
Interest rate lock commitments | Level 2
Assets
Derivative Assets	8,023	6,253
Interest rate lock commitments | Carrying value
Assets
Derivative Assets	8,023	6,253
Interest rate lock commitments | Fair value
Assets
Derivative Assets	8,023	6,253
Forward commitments to sell mortgage-backed securities | Level 2
Assets
Derivative Assets		125
Liabilities
Accrued interest payable		1,045
Derivative Liability	140
Forward commitments to sell mortgage-backed securities | Carrying value
Assets
Derivative Assets		125
Liabilities
Accrued interest payable		1,045
Derivative Liability	140
Forward commitments to sell mortgage-backed securities | Fair value
Assets
Derivative Assets		125
Liabilities
Accrued interest payable		$ 1,045
Derivative Liability	$ 140

FAIR VALUE OF FINANCIAL INSTR83

FAIR VALUE OF FINANCIAL INSTRUMENTS- Additional Information (Details)	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)
Corporate securities
Fair value, additional information
AFS transferred to Level 3		$ 6,749,000
Corporate securities | Minimum
Fair value, additional information
Discount rate (negative)	(2.5)
Corporate securities | Maximum
Fair value, additional information
Discount rate	2.50%
Corporate securities | Weighted average
Fair value, additional information
Discount rate	1.50%
Non-agency mortgage-backed securities
Fair value, additional information
AFS transferred to Level 3	$ 2,000	$ 2,000

COMMITMENTS, CONTINGENCIES AN84

COMMITMENTS, CONTINGENCIES AND CREDIT RISK - Maturities (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Anticipated material loss	$ 0
Liability for unresolved repurchase demands	314,000	$ 329,000
Commitments to extend credit
Loan commitments	507,221,000	483,345,000
Financial guarantees – standby letters of credit
Loan commitments	$ 62,331,000	$ 89,233,000

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 27,461	$ 24,041
Provision for loan losses	1,533	1,125
Noninterest income	16,330	12,618
Noninterest expense	30,785	27,638
Income (loss) before income taxes (benefit)	11,473	7,896
Income taxes (benefit)	2,983	2,777
Net income	8,490	5,119
Total assets	3,373,577	2,898,080	$ 3,233,723
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	28,380	25,393
Provision for loan losses	1,533	1,125
Noninterest income	8,938	5,460
Noninterest expense	24,914	21,451
Income (loss) before income taxes (benefit)	10,871	8,277
Income taxes (benefit)	2,342	2,466
Net income	8,529	5,811
Total assets	3,366,098	2,899,657
Commercial FHA Origination and Servicing
Segment Reporting Information [Line Items]
Net interest income (expense)	276	148
Noninterest income	6,876	6,767
Noninterest expense	4,083	4,673
Income (loss) before income taxes (benefit)	3,069	2,242
Income taxes (benefit)	1,197	897
Net income	1,872	1,345
Total assets	105,203	144,251
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(1,195)	(1,500)
Noninterest income	516	391
Noninterest expense	1,788	1,514
Income (loss) before income taxes (benefit)	(2,467)	(2,623)
Income taxes (benefit)	(556)	(586)
Net income	(1,911)	(2,037)
Total assets	$ (97,724)	$ (145,828)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Related Party Transaction [Line Items]
Rent paid	$ 221,000	$ 210,000
Chairman
Related Party Transaction [Line Items]
Payment for work on various projects	$ 3,000	$ 159,000