Midland States Bancorp (MSBI) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
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, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,630,712
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 330,233	$ 214,519
Federal funds sold	950	683
Cash and cash equivalents	331,183	215,202
Investment securities, at fair value	738,172	450,525
Loans	4,029,150	3,226,678
Allowance for loan losses	(17,704)	(16,431)
Total loans, net	4,011,446	3,210,247
Loans held for sale, at fair value	25,267	50,089
Premises and equipment, net	95,332	76,162
Other real estate owned	5,059	5,708
Nonmarketable equity securities	38,868	34,796
Accrued interest receivable	15,048	11,715
Mortgage servicing rights, at lower of cost or fair value	56,427	56,352
Mortgage servicing rights held for sale	3,962	10,176
Intangible assets	46,473	16,932
Goodwill	155,674	98,624
Cash surrender value of life insurance policies	136,766	113,366
Accrued income taxes receivable	7,910	8,358
Deferred tax assets, net	8,032	12,024
Other assets	47,753	42,425
Total assets	5,723,372	4,412,701
Deposits:
Noninterest-bearing	1,037,710	724,443
Interest-bearing	3,196,105	2,406,646
Total deposits	4,233,815	3,131,089
Short-term borrowings	130,693	156,126
FHLB advances and other borrowings	587,493	496,436
Subordinated debt	94,013	93,972
Trust preferred debentures	47,443	47,330
Accrued interest payable	4,768	2,531
Other liabilities	39,762	35,672
Total liabilities	5,137,987	3,963,156
Shareholders' Equity:
Preferred stock, Series H, $2 par value; $1,000 per share liquidation value; 2,636 shares authorized, issued and outstanding at March 31, 2018 and December 31, 2017	2,923	2,970
Common stock, $0.01 par value; 40,000,000 shares authorized; 23,612,430 and 19,122,049 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	236	191
Capital surplus	470,937	330,148
Retained earnings	112,009	114,478
Accumulated other comprehensive income (loss)	(720)	1,758
Total shareholders' equity	585,385	449,545
Total liabilities and shareholders' equity	$ 5,723,372	$ 4,412,701

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Liquidation value	$ 1,000	$ 1,000
Preferred stock, par value	$ 2	$ 2
Preferred stock, shares authorized	2,636	2,636
Preferred stock, shares issued	2,636	2,636
Preferred stock, shares outstanding	2,636	2,636
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	23,612,430	19,122,049
Common stock, shares outstanding	23,612,430	19,122,049

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Loans:
Taxable	$ 41,031	$ 28,073
Tax exempt	467	317
Loans held for sale	428	769
Investment securities:
Taxable	2,643	1,239
Tax exempt	1,016	912
Nonmarketable equity securities	399	218
Federal funds sold and cash investments	521	311
Total interest income	46,505	31,839
Interest expense:
Deposits	4,117	2,386
Short-term borrowings	124	80
FHLB advances and other borrowings	1,871	566
Subordinated debt	1,514	873
Trust preferred debentures	694	473
Total interest expense	8,320	4,378
Net interest income	38,185	27,461
Provision for loan losses	2,006	1,533
Net interest income after provision for loan losses	36,179	25,928
Noninterest income:
Commercial FHA revenue	3,330	6,695
Residential mortgage banking revenue	1,418	2,916
Wealth management revenue	4,182	2,872
Service charges on deposit accounts	1,967	892
Interchange revenue	2,090	977
Gain on sales of investment securities, net	65	67
Gain on sales of other real estate owned	307	36
Other income	3,246	1,875
Total noninterest income	16,605	16,330
Noninterest expense:
Salaries and employee benefits	28,395	17,115
Occupancy and equipment	4,252	3,184
Data processing	4,288	2,796
FDIC insurance	548	370
Professional	4,499	2,992
Marketing	1,206	642
Communications	1,547	546
Loan expense	522	420
Other real estate owned	90	412
Amortization of intangible assets	1,675	525
Other expense	2,580	1,783
Total noninterest expense	49,602	30,785
Income before income taxes	3,182	11,473
Income taxes	1,376	2,983
Net income	1,806	8,490
Preferred stock dividends	36
Net income available to common shareholders	$ 1,770	$ 8,490
Per common share data:
Basic earnings per common share	$ 0.08	$ 0.54
Diluted earnings per common share	$ 0.08	$ 0.52
Weighted average common shares outstanding	20,901,738	15,736,412
Weighted average diluted common shares outstanding	21,351,511	16,351,637

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Net income	$ 1,806	$ 8,490
Investment securities available for sale:
Unrealized (losses) gains that occurred during the period	(3,337)	768
Reclassification adjustment for realized net gains on sales of investment securities included in net income	(65)	(67)
Income tax effect	924	(273)
Change in investment securities available for sale, net of tax	(2,478)	428
Investment securities held to maturity:
Amortization of unrealized gain on investment securities transferred from available-for-sale		(25)
Income tax effect		10
Change in investment securities held to maturity, net of tax		(15)
Other comprehensive (loss) income, net of tax	(2,478)	413
Total comprehensive (loss) income	$ (672)	$ 8,903

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Alpine BankCommon stock	Alpine BankCapital surplus	Alpine Bank	CedarPointCommon stock	CedarPointCapital surplus	CedarPoint	Preferred stock	Common stock	Capital surplus	Retained earnings	Accumulated other comprehensive (loss) income	Total
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				$ 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
Beginning Balance at Dec. 31, 2017							$ 2,970	191	330,148	114,478	1,758	449,545
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income										1,806		1,806
Compensation expense for stock option grants									124			124
Amortization of restricted stock awards									309			309
Preferred dividends declared										(83)		(83)
Amortization of preferred stock premium							(47)			47		47
Common dividends declared										(4,239)		(4,239)
Acquisition	$ 45	$ 139,876	$ 139,921
Issuance of common stock under employee benefits plans									480			480
Other comprehensive income (loss)											(2,478)	(2,478)
Ending Balance at Mar. 31, 2018							$ 2,923	$ 236	$ 470,937	$ 112,009	$ (720)	$ 585,385

CONSOLIDATED STATEMENTS OF SHA7

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Common dividend declared, per share	$ 0.22	$ 0.20

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 1,806	$ 8,490
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,006	1,533
Depreciation on premises and equipment	1,454	1,116
Amortization of intangible assets	1,675	525
Compensation expense for stock option grants	124	132
Amortization of restricted stock awards	309	189
Increase in cash surrender value of life insurance	(822)	(580)
Investment securities amortization, net	689	296
Gain on sales of investment securities, net	(65)	(67)
Gain on sales of other real estate owned	(307)	(36)
Impairment of other real estate owned		171
Origination of loans held for sale	(122,749)	(221,782)
Proceeds from sales of loans held for sale	154,020	257,560
Proceeds from sales of mortgage servicing rights held for sale	10,176
Gain on loans sold and held for sale	(3,951)	(8,627)
Amortization of mortgage servicing rights	863	1,374
Impairment of mortgage servicing rights	133	76
Net change in operating assets and liabilities:
Accrued interest receivable	1,081	439
Accrued interest payable	1,698	940
Accrued income taxes receivable	448	2,934
Other assets	(284)	5,321
Other liabilities	(429)	(2,390)
Net cash provided by operating activities	47,875	47,614
Investment securities available for sale:
Purchases	(17,389)	(113,222)
Sales	1,609	3,058
Maturities and payments	26,022	97,709
Investment securities held to maturity:
Purchases		(2,486)
Maturities		4,790
Net increase in loans	(13,051)	(136,525)
Proceeds from sale of premises and equipment	186	85
Purchases of premises and equipment	(1,373)	(1,347)
Purchases of nonmarketable equity securities	(7,610)	(4,156)
Sales of nonmarketable equity securities	5,576	3,594
Proceeds from sales of other real estate owned	1,621	540
Net cash acquired in acquisition	36,153	12
Net cash provided by (used in) investing activities	31,744	(147,948)
Cash flows from financing activities:
Net (decrease) increase in deposits	(7,299)	123,110
Net decrease in short-term borrowings	(25,433)	(7,522)
Proceeds from FHLB borrowings	217,000	142,357
Payments made on FHLB borrowings	(144,064)	(129,857)
Cash dividends paid on preferred stock	(83)
Cash dividends paid on common stock	(4,239)	(3,129)
Proceeds from issuance of common stock under employee benefit plans	480	2,755
Net cash provided by financing activities	36,362	127,714
Net increase in cash and cash equivalents	115,981	27,380
Cash and cash equivalents:
Beginning of period	215,202	190,716
End of period	331,183	218,096
Cash payments for:
Interest paid on deposits and borrowed funds	6,083	3,438
Income tax paid	29	5
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to other real estate owned	$ 346	$ 961

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	3 Months Ended
	Mar. 31, 2018
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. Its wholly owned banking subsidiary, Midland States Bank (the “Bank”), has branches across Illinois and in Missouri and Colorado, and provides a broad array of traditional community banking and other complementary financial services, including commercial 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 through our subsidiary, Love Funding Corporation (“Love Funding”), based in Washington, D.C. Our commercial equipment leasing and finance business, which operates on a nationwide basis, was formerly conducted through our subsidiary, Heartland Business Credit Corporation (“Business Credit”), based in Denver, Colorado, and beginning in January 2018, was brought directly into the Bank as Midland Equipment Finance. On February 28, 2018, we completed the acquisition of Alpine Bancorporation, Inc. (“Alpine”) and its banking subsidiary, Alpine Bank & Trust Co. (“Alpine Bank”), as more fully described in Note 3 to the consolidated financial statements. Through the Alpine acquisition, we greatly expanded our commercial and retail banking presence in northern Illinois. 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 earned on loans and leases 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; and, from time to time, gains on sales of assets. Our income sources also include Love Funding’s commercial Federal Housing Administration (“FHA”) loan origination and servicing income. 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.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
UNUSED ELEMENTS
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, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2018. 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 2017 amounts have been made to conform to the 2018 presentation. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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. Impact of Recently Issued Accounting Standards FASB Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” – 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. The Company adopted ASU 2014-09 and all subsequent amendments to the ASU (collectively referred to as Topic 606) on January 1, 2018. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The impact of applying this standard to the Company’s consolidated financial statements was determined to be immaterial because the Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09 did not change significantly from current practice. Entities have the option of using either a full retrospective or modified retrospective transition method to adopt ASU 2014-09. We elected to implement this standard using the modified retrospective approach, with the cumulative effect recorded as an adjustment to opening retained earnings at January 1, 2018. Since the impact of applying the standard was determined to be immaterial, the Company did not record a cumulative effect adjustment to beginning retained earnings on January 1, 2018. See “ Note 18 – Revenue from Contracts with Customers ” for further discussion on the Company’s policies for revenue sources within the scope of Topic 606. FASB ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.” – In January 2016, the FASB issued this standard, which is intended to improve the recognition and measurement of financial instruments. This standard, among other things: (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately, in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The adoption of ASU No. 2016-01 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In addition, the Company now classifies equity securities, at fair value, separately from available for sale securities, at fair value. No impairment was recognized on equity securities as of January 1, 2018. In accordance with (iv) above, the Company measured the fair value of its loan portfolio as of March 31, 2018 using an exit price notion (see “ Note 14 – Fair Value of Financial Instruments” ). 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 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 . The Company has formed a cross functional committee that has overseen the enhancement of existing technology required to source and model data for the purposes of meeting this standard. The committee is also in the process of selecting a vendor to assist in generating loan level cash flows and disclosures. 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 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” – In February 2018, ASU 2018-02 was issued following the enactment of the Tax Cuts and Jobs Act, which changed the Company’s federal income tax rate from 35% to 21%. This standard allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The standard is effective for periods beginning after December 15, 2018 although early adoption is permitted. The impact of this ASU on the Company’s consolidated financial statements is not material. FASB ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” – In August 2017, the FASB issued this standard the objectives of which are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. This standard is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not utilize hedge accounting. However, the Company is currently evaluating this standard to determine whether its provisions will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2018
ACQUISITIONS
ACQUISITIONS	Note 3 – Acquisitions Alpine Bancorporation, Inc. On February 28, 2018, the Company completed its acquisition of Alpine and its banking subsidiary, Alpine Bank, which operates 19 locations in northern Illinois, and which the Company intends to merge into the Bank. In the aggregate, the Company acquired Alpine for consideration valued at approximately $173.2 million, which consisted of approximately $33.3 million in cash and the issuance of 4,463,200 shares of the Company’s common stock . This acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while $11.6 million of transaction and integration costs associated with the acquisition have been expensed during 2017 and the first quarter of 2018, and remaining integration costs will be expensed in future periods as incurred. Centrue Financial Corporation On June 9, 2017, the Company completed its acquisition of Centrue Financial Corporation (“Centrue”) and its banking subsidiary, Centrue Bank, which operated 20 full-service banking centers located principally in northern Illinois. In the aggregate, the Company acquired Centrue for consideration valued at approximately $176.6 million, which consisted of approximately $61.0 million in cash and the issuance of 3,219,238 shares of the Company’s common stock, 181 shares of Series G preferred stock and 2,635.5462 shares of Series H preferred stock. This acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values. Transaction and integration costs of $1.1 million and $16.0 million for the three months ended March 31, 2018 and the year ended December 31, 2017, respectively, were expensed as incurred. Under the acquisition method of accounting, the consideration paid is allocated to net tangible and intangible assets based on current estimated fair values on the date of acquisition. Based on management’s preliminary valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the consideration paid for the acquisitions is allocated as follows: (dollars in thousands) Alpine Centrue Assets acquired: Cash and cash equivalents $ 69,459 $ 42,461 Investment securities, at fair value 301,800 149,013 Loans 790,865 679,582 Loans held for sale 3,416 531 Premises and equipment 19,283 17,147 Other real estate owned 53 4,983 Nonmarketable equity securities 2,038 8,168 Accrued interest receivable 4,414 2,376 Mortgage servicing rights — 1,933 Mortgage servicing rights held for sale 3,942 — Intangible assets 31,216 11,070 Cash surrender value of life insurance policies 22,578 36,349 Deferred tax assets, net — 34,339 Other assets 4,840 2,256 Total assets acquired 1,253,904 990,208 Liabilities assumed: Deposits 1,110,025 739,867 Short-term borrowings — 14,434 FHLB advances and other borrowings 18,127 95,332 Trust preferred debentures — 7,565 Accrued interest payable 539 275 Deferred tax liabilities, net 4,284 — Other liabilities 4,667 3,600 Total liabilities assumed 1,137,642 861,073 Net assets acquired 116,262 129,135 Goodwill 56,965 47,444 Total consideration paid $ 173,227 $ 176,579 Intangible assets: Core deposit intangible $ 24,116 $ 11,070 Customer relationship intangible 7,100 — Total Intangible assets $ 31,216 $ 11,070 Estimated useful lives: Core deposit intangible 6 years 8 years Customer relationship intangible 13 years N/A Prior to the end of the one-year measurement period for finalizing the consideration paid allocation, if information becomes available which would indicate adjustments are required to the allocation, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined. Goodwill arising from the acquisitions consists largely of the synergies and economies of scale expected from combining the operations of Alpine and Centrue into the Company. The goodwill is assigned as part of the Company’s banking reporting unit. The portion of the consideration paid allocated to goodwill will not be deductible for tax purposes. The identifiable assets acquired from Alpine and Centrue included core deposit intangibles and customer relationship intangibles, which are being amortized on an accelerated basis as shown above. Acquired loan data for Alpine and Centrue can be found in the table below: Best Estimate at Acquisition Date of Fair Value Gross Contractual Contractual Cash of Acquired Loans Amounts Receivable Flows Not Expected (dollars in thousands) at Acquisition Date at Acquisition Date to be Collected Alpine: Acquired receivables subject to ASC 310-30 $ 32,276 $ 40,025 $ 6,907 Acquired receivables not subject to ASC 310-30 758,589 766,613 4,717 Centrue: Acquired receivables subject to ASC 310-30 $ 11,381 $ 20,523 $ 7,227 Acquired receivables not subject to ASC 310-30 668,201 821,338 4,835 The following table provides the unaudited pro forma information for the results of operations for three months ended March 31, 2018 and 2017, as if the acquisition of Alpine had occurred on January 1, 2017. The pro forma results combine the historical results of Alpine with the Company’s consolidated statements of income, adjusted for the impact of the application of the acquisition method of accounting including loan discount accretion, intangible assets amortization, and deposit premium accretion, net of taxes. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations had the acquisition actually occurred on January 1, 2017. No assumptions have been applied to the pro forma results of operations regarding revenue enhancements, expense efficiencies or asset dispositions. Only the acquisition related expenses that have been incurred as of March 31, 2018 are included in net income in the table below. Acquisition related expenses that were recognized and are included in the pro forma net income for the three months ended March 31, 2018 totaled $10.7 million on a pre-tax basis. Three Months Ended March 31, (dollars in thousands, except per share data) 2018 2017 Revenue (1) $ 66,803 $ 69,357 Net income 3,278 10,608 Diluted earnings per common share 0.13 $ 0.44 (1) Net interest income plus noninterest income CedarPoint Investment Advisors, Inc. 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. The Company acquired CedarPoint for $3.7 million, which consisted of the issuance of 102,000 shares of the Company’s common stock and an accrual in other liabilities of $345,000 for the fair value of 18,000 shares that will be held in a special purpose escrow account (the “escrow shares”) as additional consideration until at least March 31, 2019. Payout of the escrow shares is contingent on CedarPoint reaching certain target revenue levels. Intangible assets recognized as a result of the transaction consisted of approximately $2.4 million in goodwill and $2.0 million in customer relationship intangibles. The customer relationship intangibles are being amortized on a straight-line basis over 12 years.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
	Mar. 31, 2018
INVESTMENT SECURITIES
INVESTMENT SECURITIES	Note 4 – Investment Securities Debt Securities Investment securities classified as available for sale as of March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value U.S. Treasury securities $ 40,055 $ 13 $ 422 $ 39,646 Government sponsored entity debt securities 87,712 39 686 87,065 Agency mortgage-backed securities 361,927 622 3,804 358,745 State and municipal securities 179,317 3,327 920 181,724 Corporate securities 58,950 1,126 296 59,780 Total $ 727,961 $ 5,127 $ 6,128 $ 726,960 December 31, 2017 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value U.S. Treasury securities $ 28,005 $ — $ 287 $ 27,718 Government sponsored entity debt securities 25,445 41 275 25,211 Agency mortgage-backed securities 233,606 882 2,101 232,387 State and municipal securities 99,449 3,632 514 102,567 Corporate securities 58,904 1,087 179 59,812 Total $ 445,409 $ 5,642 $ 3,356 $ 447,695 Unrealized losses and fair values for investment securities available for sale as of March 31, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: March 31, 2018 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss U.S. Treasury securities $ 24,620 $ 394 $ 4,970 $ 28 $ 29,590 $ 422 Government sponsored entity debt securities 58,637 686 — — 58,637 686 Agency mortgage-backed securities 219,158 2,939 18,932 865 238,090 3,804 State and municipal securities 43,599 693 5,341 227 48,940 920 Corporate securities 13,379 182 2,444 114 15,823 296 Total $ 359,393 $ 4,894 $ 31,687 $ 1,234 $ 391,080 $ 6,128 December 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss U.S. Treasury securities $ 19,758 $ 251 $ 7,960 $ 36 $ 27,718 $ 287 Government sponsored entity debt securities 24,168 275 — — 24,168 275 Agency mortgage-backed securities 124,192 1,500 19,530 601 143,722 2,101 State and municipal securities 29,338 331 5,889 183 35,227 514 Corporate securities 5,917 85 3,463 94 9,380 179 Total $ 203,373 $ 2,442 $ 36,842 $ 914 $ 240,215 $ 3,356 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, 2018, 256 investment securities available for sale had unrealized losses with aggregate depreciation of 1.54% 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. The Company does not have the intent to sell and it is not more likely than not that it will be required to sell a security in an unrealized loss position; therefore, the Company does not consider these securities to be other than temporarily impaired at March 31, 2018. For the three months ended March 31, 2018 and 2017, the Company did not recognize OTTI losses on its investment securities. The amortized cost and fair value of the available-for-sale investment securities as of March 31, 2018 are shown by expected maturity in the following table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair (dollars in thousands) cost value Debt securities: Within one year $ 67,297 $ 67,282 After one year through five years 429,272 427,387 After five years through ten years 187,393 188,330 After ten years 43,999 43,961 Total available for sale securities $ 727,961 $ 726,960 Proceeds from the sale of securities available for sale were $1.6 million for the three months ended March 31, 2018. Gross realized gains from the sale of securities available for sale were $65,000 for the three months ended March 31, 2018. There were no gross realized losses for the three months ended March 31, 2018. Proceeds from the sale of securities available for sale were $3.1 million for the three months ended March 31, 2017. Gross realized gains from the sale of securities available for sale were $67,000 for the three months ended March 31, 2017. There were no gross realized losses for the three months ended March 31, 2017. Equity Securities The Company held equity securities with fair values of $11.2 million and $2.8 million at March 31, 2018 and December 31, 2017, respectively. During the three months ended March 31, 2018, the Company recognized unrealized gains of $178,000 and unrealized losses of $67,000 on the equity securities held at March 31, 2018, which was recorded in noninterest income in the consolidated statements of income. There were no sales of equity securities during the three months ended March 31, 2018.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2018
LOANS
LOANS	Note 5 – Loans The following table presents total loans outstanding by portfolio, which includes non-purchased credit impaired (“Non-PCI”) loans and purchased credit impaired (“PCI”) loans, as of March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans (1) Total Loans Loans (1) Total Commercial $ 795,431 $ 7,321 $ 802,752 $ 553,257 $ 2,673 $ 555,930 Commercial real estate 1,754,827 18,683 1,773,510 1,427,076 12,935 1,440,011 Construction and land development 226,035 8,802 234,837 199,853 734 200,587 Total commercial loans 2,776,293 34,806 2,811,099 2,180,186 16,342 2,196,528 Residential real estate 553,947 16,374 570,321 447,602 5,950 453,552 Consumer 422,266 1,963 424,229 371,286 169 371,455 Lease financing 223,501 — 223,501 205,143 — 205,143 Total loans $ 3,976,007 $ 53,143 $ 4,029,150 $ 3,204,217 $ 22,461 $ 3,226,678 (1) The unpaid principal balance for PCI loans totaled $73.6 million and $32.8 million as of March 31, 2018 and December 31, 2017, respectively. Total loans include net deferred loan fees of $16.9 million and $10.1 million at March 31, 2018 and December 31, 2017, respectively, and unearned discounts of $23.2 million and $20.7 million within the lease financing portfolio at March 31, 2018 and December 31, 2017, respectively. At March 31, 2018 and December 31, 2017, the Company had commercial and residential loans held for sale totaling $25.3 million and $50.1 million, respectively. During the three months ended March 31, 2018 and 2017, the Company sold commercial and residential real estate loans with proceeds totaling $154.0 million and $257.6 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 predominantly 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 $19.9 million and $22.4 million at March 31, 2018 and December 31, 2017, respectively. During the three months ended March 31, 2018, there were $1.0 million of new loans and other additions, while repayments and other reductions totaled $3.5 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, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Commercial Construction Commercial Construction Real and Land Real and Land (dollars in thousands) Commercial Estate Development Total Commercial Estate Development Total Acceptable credit quality $ 741,523 $ 1,707,011 $ 217,907 $ 2,666,441 $ 510,928 $ 1,384,630 $ 191,872 $ 2,087,430 Special mention 23,516 18,589 — 42,105 12,290 11,497 — 23,787 Substandard 26,896 11,270 — 38,166 27,718 14,695 — 42,413 Substandard – nonaccrual 2,167 13,945 765 16,877 1,266 12,482 785 14,533 Doubtful — — — — — — — — Not graded 1,329 4,012 7,363 12,704 1,055 3,772 7,196 12,023 Total (excluding PCI) $ 795,431 $ 1,754,827 $ 226,035 $ 2,776,293 $ 553,257 $ 1,427,076 $ 199,853 $ 2,180,186 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, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Residential Lease Residential Lease (dollars in thousands) Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 547,961 $ 422,026 $ 222,240 $ 1,192,227 $ 441,418 $ 370,999 $ 203,797 $ 1,016,214 Impaired 5,986 240 1,261 7,487 6,184 287 1,346 7,817 Total (excluding PCI) $ 553,947 $ 422,266 $ 223,501 $ 1,199,714 $ 447,602 $ 371,286 $ 205,143 $ 1,024,031 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, 2018 and December 31, 2017 do not include $53.1 million and $22.5 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, 2018 and December 31, 2017 is as follows: March 31, December 31, (dollars in thousands) 2018 2017 Nonaccrual loans: Commercial $ 2,167 $ 1,266 Commercial real estate 13,945 12,482 Construction and land development 765 785 Residential real estate 5,142 5,204 Consumer 210 234 Lease financing 1,261 1,346 Total nonaccrual loans 23,490 21,317 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial 26 2,538 Commercial real estate — — Construction and land development — — Residential real estate 99 51 Consumer 30 53 Lease financing — — Total accruing loans contractually past due 90 days or more as to interest or principal payments 155 2,642 Loans modified under troubled debt restructurings: Commercial 557 299 Commercial real estate 1,496 1,515 Construction and land development 56 58 Residential real estate 745 929 Consumer — — Lease financing — — Total loans modified under troubled debt restructurings 2,854 2,801 Total impaired loans (excluding PCI) $ 26,499 $ 26,760 There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2018 and 2017 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 $500,000 and $148,000 the three months ended March 31, 2018 and 2017, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $30,000 and $18,000 for the three months ended March 31, 2018 and 2017, respectively. The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Unpaid Related Unpaid Related Recorded Principal Valuation Recorded Principal Valuation (dollars in thousands) Investment Balance Allowance Investment Balance Allowance Impaired loans with a valuation allowance: Commercial $ 2,257 $ 2,323 $ 1,458 $ 3,237 $ 3,297 $ 526 Commercial real estate 2,049 2,317 180 2,297 3,508 329 Construction and land development 101 101 10 103 102 10 Residential real estate 3,636 4,212 546 4,028 4,705 566 Consumer 198 213 21 266 279 29 Lease financing 1,014 1,014 579 1,064 1,064 345 Total impaired loans with a valuation allowance 9,255 10,180 2,794 10,995 12,955 1,805 Impaired loans with no related valuation allowance: Commercial 493 3,807 — 866 5,782 — Commercial real estate 13,392 19,721 — 11,700 17,359 — Construction and land development 720 760 — 740 780 — Residential real estate 2,350 2,649 — 2,156 2,380 — Consumer 42 42 — 21 21 — Lease financing 247 247 — 282 282 — Total impaired loans with no related valuation allowance 17,244 27,226 — 15,765 26,604 — Total impaired loans: Commercial 2,750 6,130 1,458 4,103 9,079 526 Commercial real estate 15,441 22,038 180 13,997 20,867 329 Construction and land development 821 861 10 843 882 10 Residential real estate 5,986 6,861 546 6,184 7,085 566 Consumer 240 255 21 287 300 29 Lease financing 1,261 1,261 579 1,346 1,346 345 Total impaired loans (excluding PCI) $ 26,499 $ 37,406 $ 2,794 $ 26,760 $ 39,559 $ 1,805 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 $10.9 million and $12.8 million at March 31, 2018 and December 31, 2017, respectively. The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the three months ended March 31, 2018 and 2017 are included in the table below: Three Months Ended March 31, 2018 2017 Interest Income Interest Income Average Recognized Average Recognized Recorded While on Recorded While on (dollars in thousands) Investment Impaired Status Investment Impaired Status Impaired loans with a valuation allowance: Commercial $ 2,291 $ 10 $ 3,532 $ 1 Commercial real estate 2,104 20 2,845 17 Construction and land development 101 1 82 1 Residential real estate 3,579 10 3,494 4 Consumer 208 — 278 — Lease financing 1,014 — 197 — Total impaired loans with a valuation allowance 9,297 41 10,428 23 Impaired loans with no related valuation allowance: Commercial 518 — 828 — Commercial real estate 13,731 — 16,085 — Construction and land development 739 — 394 — Residential real estate 2,370 1 1,271 — Consumer 42 — 25 — Lease financing 247 — 485 — Total impaired loans with no related valuation allowance 17,647 1 19,088 — Total impaired loans: Commercial 2,809 10 4,360 1 Commercial real estate 15,835 20 18,930 17 Construction and land development 840 1 476 1 Residential real estate 5,949 11 4,765 4 Consumer 250 — 303 — Lease financing 1,261 — 682 — Total impaired loans (excluding PCI) $ 26,944 $ 42 $ 29,516 $ 23 The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of March 31, 2018: Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total (dollars in thousands) Past Due Past Due or More Loans Past Due Current Loans Commercial $ 2,883 $ 1,999 $ 26 $ 2,167 $ 7,075 $ 788,356 $ 795,431 Commercial real estate 7,927 325 — 13,945 22,197 1,732,630 1,754,827 Construction and land development 503 — — 765 1,268 224,767 226,035 Residential real estate 1,422 341 99 5,142 7,004 546,943 553,947 Consumer 2,089 1,389 30 210 3,718 418,548 422,266 Lease financing 1,245 15 — 1,261 2,521 220,980 223,501 Total (excluding PCI) $ 16,069 $ 4,069 $ 155 $ 23,490 $ 43,783 $ 3,932,224 $ 3,976,007 The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2017: Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total (dollars in thousands) Past Due Past Due or More Loans Past Due Current Loans Commercial $ 3,282 $ 177 $ 2,538 $ 1,266 $ 7,263 $ 545,994 $ 553,257 Commercial real estate 3,116 630 — 12,482 16,228 1,410,848 1,427,076 Construction and land development 1,953 — — 785 2,738 197,115 199,853 Residential real estate 897 632 51 5,204 6,784 440,818 447,602 Consumer 2,824 1,502 53 234 4,613 366,673 371,286 Lease financing 392 — — 1,346 1,738 203,405 205,143 Total (excluding PCI) $ 12,464 $ 2,941 $ 2,642 $ 21,317 $ 39,364 $ 3,164,853 $ 3,204,217 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 $207,000 and $240,000 as of March 31, 2018 and December 31, 2017, respectively. The Company had no unfunded commitments in connection with TDRs at March 31, 2018 and December 31, 2017. 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, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 557 $ — $ 557 $ 299 $ — $ 299 Commercial real estate 1,496 9,817 11,313 1,515 9,915 11,430 Construction and land development 56 — 56 58 — 58 Residential real estate 745 248 993 929 282 1,211 Consumer — — — — — — Lease financing — — — — — — Total loans (excluding PCI) $ 2,854 $ 10,065 $ 12,919 $ 2,801 $ 10,197 $ 12,998 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. During the three months ended March 31, 2018, there were no loans restructured. There were also no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2018. 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: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) 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 $ — $ — $ — $ — $ — $ — $ — 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. Accretion recorded as loan interest income totaled $1.2 million and $2.2 million during the three months ended March 31, 2018 and 2017, respectively. Accretable yield of PCI loans, or income expected to be collected, is as follows: Three Months Ended March 31, (dollars in thousands) 2018 2017 Balance, at beginning of period $ 5,732 $ 9,035 New loans purchased – Alpine acquisition 842 — Accretion (1,161) (2,243) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) 660 9 Reclassification from non-accretable 1,154 2,032 Balance, at end of period $ 7,227 $ 8,833 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, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans Total Loans Loans Total Balance, beginning of period $ 14,902 $ 1,529 $ 16,431 $ 13,744 $ 1,118 $ 14,862 Provision for loan losses 1,871 135 2,006 1,405 128 1,533 Charge-offs (1,130) (11) (1,141) (1,167) — (1,167) Recoveries 408 — 408 519 58 577 Net loan (charge-offs) recoveries (722) (11) (733) (648) 58 (590) Balance, end of period $ 16,051 $ 1,653 $ 17,704 $ 14,501 $ 1,304 $ 15,805 The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three months ended March 31, 2018 and 2017: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Changes in allowance for loan losses for the three months ended March 31, 2018: Balance, beginning of period $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Provision for loan losses 567 507 (215) (261) 304 1,104 2,006 Charge-offs (25) (160) — (36) (434) (486) (1,141) Recoveries 104 94 25 51 95 39 408 Balance, end of period $ 5,902 $ 5,485 $ 328 $ 2,504 $ 1,309 $ 2,176 $ 17,704 Changes in allowance for loan losses for the three months ended March 31, 2017: Balance, beginning of period $ 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 Balance, end of period $ 6,034 $ 3,930 $ 460 $ 2,842 $ 1,284 $ 1,255 $ 15,805 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, 2018 and December 31, 2017 by impairment evaluation method: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total March 31, 2018: Allowance for loan losses: Loans individually evaluated for impairment $ 1,426 $ 101 $ 5 $ 289 $ — $ 532 $ 2,353 Loans collectively evaluated for impairment 32 79 5 257 21 47 441 Non-impaired loans collectively evaluated for impairment 3,892 4,913 308 1,408 1,139 1,597 13,257 Loans acquired with deteriorated credit quality (1) 552 392 10 550 149 — 1,653 Total allowance for loan losses $ 5,902 $ 5,485 $ 328 $ 2,504 $ 1,309 $ 2,176 $ 17,704 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 2,455 $ 14,717 $ 776 $ 3,446 $ — $ 825 $ 22,219 Impaired loans collectively evaluated for impairment 295 724 45 2,540 240 436 4,280 Non-impaired loans collectively evaluated for impairment 792,681 1,739,386 225,214 547,961 422,026 222,240 3,949,508 Loans acquired with deteriorated credit quality (1) 7,321 18,683 8,802 16,374 1,963 — 53,143 Total recorded investment (loan balance) $ 802,752 $ 1,773,510 $ 234,837 $ 570,321 $ 424,229 $ 223,501 $ 4,029,150 December 31, 2017: Allowance for loan losses: Loans individually evaluated for impairment $ 221 $ 281 $ 5 $ 302 $ — $ 261 $ 1,070 Loans collectively evaluated for impairment 305 48 5 264 29 84 735 Non-impaired loans collectively evaluated for impairment 4,230 4,379 504 1,644 1,166 1,174 13,097 Loans acquired with deteriorated credit quality (1) 500 336 4 540 149 — 1,529 Total allowance for loan losses $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 1,285 $ 13,554 $ 797 $ 3,700 $ 4 $ 568 $ 19,908 Impaired loans collectively evaluated for impairment 2,818 443 46 2,484 283 778 6,852 Non-impaired loans collectively evaluated for impairment 549,154 1,413,079 199,010 441,418 370,999 203,797 3,177,457 Loans acquired with deteriorated credit quality (1) 2,673 12,935 734 5,950 169 — 22,461 Total recorded investment (loan balance) $ 555,930 $ 1,440,011 $ 200,587 $ 453,552 $ 371,455 $ 205,143 $ 3,226,678 (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.

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2018
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT, NET	Note 6 – Premises and Equipment, Net A summary of premises and equipment as of March 31, 2018 and December 31, 2017 is as follows: March 31, December 31, (dollars in thousands) 2018 2017 Land $ 19,613 $ 16,109 Buildings and improvements 79,227 63,837 Furniture and equipment 27,319 25,843 Total 126,159 105,789 Accumulated depreciation (30,827) (29,627) Premises and equipment, net $ 95,332 $ 76,162 Depreciation expense was recorded at $1.5 million and $1.1 million for the three months ended March 31, 2018 and 2017, respectively.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	3 Months Ended
	Mar. 31, 2018
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS	Note 7 – Mortgage Servicing Rights At March 31, 2018 and December 31, 2017, the Company serviced mortgage loans for others with unpaid principal balances of approximately $5.44 billion and $5.97 billion, respectively. A summary of mortgage loans serviced for others as of March 31, 2018 and December 31, 2017 is as follows: March 31, December 31, (dollars in thousands) 2018 2017 Commercial FHA mortgage loans $ 4,002,907 $ 3,976,795 Residential mortgage loans 1,437,854 1,989,785 Total loans serviced for others $ 5,440,761 $ 5,966,580 Changes in our mortgage servicing rights were as follows for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (dollars in thousands) 2018 2017 Mortgage servicing rights: Balance, beginning of period $ 60,383 $ 71,710 Servicing rights capitalized – commercial FHA mortgage loans 1,001 1,481 Servicing rights capitalized – residential mortgage loans 70 518 Amortization – commercial FHA mortgage loans (676) (639) Amortization – residential mortgage loans (187) (735) Other-than-temporary impairment - residential mortgage loans (777) — Balance, end of period 59,814 72,335 Valuation allowances: Balance, beginning of period 4,031 3,702 Additions 133 188 Reductions — (112) Other-than-temporary impairment - residential mortgage loans (777) — Balance, end of period 3,387 3,778 Mortgage servicing rights, net $ 56,427 $ 68,557 Fair value: At beginning of period $ 56,352 $ 68,008 At end of period $ 57,051 $ 68,557 During 2017, the Company transferred $14.2 million of residential mortgage servicing rights, net of valuation allowance, to mortgage servicing rights held for sale. The sale was completed on January 2, 2018. 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, 2018 and December 31, 2017. 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 (dollars in thousands) Fee Rate Maturity Rate Cost Rate March 31, 2018: Commercial FHA mortgage loans 0.13 % 3.66 % 30.3 8.26 % $ 1,000 11.02 % Residential mortgage loans 0.27 % 3.93 % 22.1 8.66 % $ 76 11.03 % December 31, 2017: Commercial FHA mortgage loans 0.12 % 3.67 % 30.3 8.27 % $ 1,000 11.02 % Residential mortgage loans 0.26 % 3.93 % 23.2 11.52 % $ 71 10.09 % 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, 2018
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	Note 8 – Goodwill and Intangible Assets At March 31, 2018 and December 31, 2017, goodwill totaled $155.7 million and $98.6 million, respectively, reflecting an increase of approximately $57.0 million as a result of the acquisition of Alpine on February 28, 2018, 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, 2018 and December 31, 2017 are summarized as follows: March 31, 2018 December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 55,728 $ (20,445) $ 35,283 $ 31,612 $ (18,943) $ 12,669 Customer relationship intangibles 14,571 (3,381) 11,190 7,471 (3,208) 4,263 Total intangible assets $ 70,299 $ (23,826) $ 46,473 $ 39,083 $ (22,151) $ 16,932 In conjunction with the acquisition of Alpine on February 28, 2018, we recorded $24.1 million of core deposit intangibles and $7.1 million of customer relationship intangibles, which are being amortized on an accelerated basis over an estimated useful life of six years and 13 years, respectively, as further discussed in Note 3 to the consolidated financial statements. Amortization of intangible assets was $1.7 million and $525,000 for the three months ended March 31, 2018 and 2017, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2018
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, 2018 and December 31, 2017: Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, (dollars in thousands) 2018 2017 2018 2017 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 372,726 $ 345,152 $ 6,380 $ 6,331 Forward commitments to sell mortgage-backed securities 350,157 372,824 5 31 Total $ 722,883 $ 717,976 $ 6,385 $ 6,362 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, (dollars in thousands) 2018 2017 2018 2017 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 6,780 $ — $ 19 $ — Net gains of $53,000 and $1.5 million were recognized on derivative instruments for the three months ended March 31, 2018 and 2017. Net gains and losses on derivative instruments were recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Interest Rate Swap Contracts The Company entered into derivative instruments related to interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. These swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with mirror-image terms. Because of the mirror-image terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in the fair value subsequent to initial recognition have a minimal effect on earnings. These derivative contracts do not qualify for hedge accounting. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $9.9 million at March 31, 2018 and $10.0 million at December 31, 2017. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $219,000 at March 31, 2018 and $17,000 at December 31, 2017, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2018
DEPOSITS
DEPOSITS	Note 10 – Deposits The following table summarizes the classification of deposits as of March 31, 2018 and December 31, 2017: March 31, December 31, (dollars in thousands) 2018 2017 Noninterest-bearing demand $ 1,037,710 $ 724,443 Interest-bearing: Checking 993,253 785,934 Money market 840,415 646,426 Savings 466,887 281,212 Time 895,550 693,074 Total deposits $ 4,233,815 $ 3,131,089

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	3 Months Ended
	Mar. 31, 2018
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 as of March 31, 2018 and December 31, 2017: Repurchase Agreements March 31, December 31, (dollars in thousands) 2018 2017 Outstanding at period-end $ 130,693 $ 156,126 Average amount outstanding 148,703 163,461 Maximum amount outstanding at any month end 173,387 196,278 Weighted average interest rate: During period 0.34 % 0.23 % End of period 0.31 % 0.28 % 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 $129.7 million and $157.2 million at March 31, 2018 and December 31, 2017, respectively, were pledged for securities sold under agreements to repurchase. The Company had lines of credit of $74.5 million and $32.5 million at March 31, 2018 and December 31, 2017, respectively, from the Federal Reserve Discount Window. The lines are collateralized by collateral agreements totaling $74.5 million and $36.5 million at March 31, 2018 and December 31, 2017, respectively. There were no outstanding borrowings at March 31, 2018 and December 31, 2017. At March 31, 2018, the Company had federal funds lines of credit totaling $97.5 million. The lines of credit were unused at March 31, 2018.

FHLB ADVANCES AND OTHER BORROWI

FHLB ADVANCES AND OTHER BORROWINGS	3 Months Ended
	Mar. 31, 2018
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, 2018 and December 31, 2017: March 31, December 31, (dollars in thousands) 2018 2017 Midland States Bancorp, Inc. Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 3.94% and 3.63% at March 31, 2018 and December 31, 2017, respectively, – maturing through May 25, 2020 $ $ 37,113 Series G redeemable preferred stock - 181 shares at $1,000 per share Midland States Bank FHLB advances – fixed rate, fixed term of $177.0 million and $145.0 million, at rates averaging 1.54% and 1.35% at March 31, 2018 and December 31, 2017, respectively – maturing through June 2021, putable fixed rate of $305.0 million at rates averaging 1.29% at both March 31, 2018 and December 31, 2017 – maturing through December 2024 with call provisions through December 2020, and callable fixed rate of $50.0 million, at a rate of 2.56% at March 31, 2018, maturing in May 2019 532,126 450,137 FHLB advances – variable rate, fixed term, at rates averaging 1.20% at December 31, 2017 – matured in March 2018 — 9,000 Other 2 5 Alpine Bank FHLB advances - fixed rate, fixed term, at rates averaging 2.33% at March 31, 2018 - maturing through February 2023. 18,067 — Total FHLB advances and other borrowings $ 587,493 $ 496,436 In 2017, the Company entered into a loan agreement with another bank for a revolving line of credit in the original principal amount of up to $10.0 million and a term loan in the original principal amount of $40.0 million. The revolving line of credit matures on May 24, 2018 and has a variable rate of interest equal to one-month LIBOR plus 2.00%. There were no advances made on the line of credit as of March 31, 2018. The term loan matures on May 25, 2020 and has a variable rate of interest equal to one-month LIBOR plus 2.25%. Beginning September 1, 2017, the Company was required to begin making quarterly principal and interest payments on the term loan of $1.4 million with the remaining principal and any unpaid interest due at maturity. The loan is unsecured with a negative pledge of shares of the Company’s common stock. The loan agreement contains financial covenants that require the Company to maintain a minimum total capital to risk-weighted assets ratio, a minimum adjusted loan loss reserves to nonperforming loans ratio, a minimum fixed charge coverage ratio and a maximum percentage of nonperforming assets to tangible capital. At March 31, 2018, the Company was in compliance with each of these financial covenants. The Bank’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 $2.01 billion and $1.86 billion at March 31, 2018 and December 31, 2017, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	Note 13 – 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) and common stock warrants. Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (dollars in thousands, except per share data) 2018 2017 Net income $ 1,806 $ 8,490 Preferred stock dividends (83) — Amortization of preferred stock premium 47 — Net income available to common equity 1,770 8,490 Common shareholder dividends (4,208) (3,109) Unvested restricted stock award dividends (31) (20) Undistributed earnings to unvested restricted stock awards — (32) Undistributed earnings to common shareholders $ (2,469) $ 5,329 Basic Distributed earnings to common shareholders $ 4,208 $ 3,109 Undistributed earnings to common shareholders (2,469) 5,329 Total common shareholders earnings, basic $ 1,739 $ 8,438 Diluted Distributed earnings to common shareholders $ 4,208 $ 3,109 Undistributed earnings to common shareholders (2,469) 5,329 Total common shareholders earnings 1,739 8,438 Add back: Undistributed earnings reallocated from unvested restricted stock awards — 1 Total common shareholders earnings, diluted $ 1,739 $ 8,439 Weighted average common shares outstanding, basic 20,901,738 15,736,412 Options and warrants 449,773 615,225 Weighted average common shares outstanding, diluted 21,351,511 16,351,637 Basic earnings per common share $ 0.08 $ 0.54 Diluted earnings per common share 0.08 0.52

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	Note 14 – 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 is 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, 2018 and December 31, 2017, are summarized below: March 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 39,646 $ 39,646 $ — $ — Government sponsored entity debt securities 87,065 — 87,065 — Agency mortgage-backed securities 358,745 — 358,745 — State and municipal securities 181,724 — 181,724 — Corporate securities 59,780 — 54,993 4,787 Equity securities 11,212 — 11,212 — Loans held for sale 25,267 — 25,267 — Interest rate lock commitments 6,380 — 6,380 — Forward commitments to sell mortgage-backed securities 5 — 5 — Interest rate swap contracts 219 — 219 — Total $ 770,043 $ 39,646 $ 725,610 $ 4,787 Liabilities Forward commitments to sell mortgage-backed securities $ 19 $ — $ 19 $ — Interest rate swap contracts 219 — 219 — Total $ 238 $ — $ 238 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 56,427 $ — $ — $ 56,427 Mortgage servicing rights held for sale 3,962 3,962 — — Impaired loans 2,888 — 1,209 1,679 December 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level) 3 Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 27,718 $ 27,718 $ — $ — Government sponsored entity debt securities 25,211 — 25,211 — Agency mortgage-backed securities 232,387 — 232,387 — State and municipal securities 102,567 — 102,567 — Corporate securities 59,812 — 55,033 4,779 Equity securities 2,830 — 2,830 — Loans held for sale 50,089 — 50,089 — Interest rate lock commitments 6,331 — 6,331 — Forward commitments to sell mortgage-backed securities 31 — 31 — Interest rate swap contracts 17 — 17 — Total $ 506,993 $ 27,718 $ 474,496 $ 4,779 Liabilities Interest rate swap contracts $ 17 $ — $ 17 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 56,352 $ — $ — $ 56,352 Mortgage servicing rights held for sale 10,176 10,176 — — Impaired loans 9,385 — 7,631 1,754 Other real estate owned 801 — 801 — Assets held for sale 3,358 — 3,358 — The following table presents losses recognized on assets measured on a non‑recurring basis for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (dollars in thousands) 2018 2017 Mortgage servicing rights $ 133 $ 76 Impaired loans 875 350 Other real estate owned — 171 Total loss on assets measured on a nonrecurring basis $ 1,008 $ 597 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, 2018: Corporate (dollars in thousands) Securities Balance, beginning of period $ 4,779 Total realized in earnings (1) 56 Total unrealized in other comprehensive income — Net settlements (principal and interest) (48) Balance, end of period $ 4,787 (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, 2017: Non-Agency Corporate Mortgage-Backed (dollars in thousands) 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 quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at March 31, 2018 (in thousands): Non-recurring Valuation Unobservable fair value measurements Fair Value technique input / assumptions Range (weighted average) Mortgage servicing rights $ 56,427 Discounted cash flow Prepayment speed 6.00% - 42.90% (8.36%) Discount rate 8.00% - 14.50% (11.02%) Impaired loans $ 1,679 Discounted cash flow Discount rate 4.84% - 8.10% (6.54%) Mortgage Servicing Rights. When mortgage loans are sold with servicing rights retained, servicing rights are initially recorded at fair value with the effect recorded in net gain on sales of loans in the consolidated statements of operations. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or, alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The Company utilizes the amortization method to subsequently measure the carrying value of its servicing rights. In accordance with GAAP , the Company must record impairment charges on a non-recurring basis when the carrying value exceeds the estimated fair value. The 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, servicing costs, replacement reserves and other economic factors which are estimated based on current market conditions. The determination of fair value of servicing rights relies upon Level 3 inputs. The fair value of mortgage servicing rights was $56.4 million at both March 31, 2018 and December 31, 2017. 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. 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 Company has elected the fair value option for newly originated residential and commercial loans held for sale. These loans are intended for sale and are hedged with derivative instruments. We have elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Residential loans held for sale $ 17,828 $ 383 $ 17,445 $ 12,241 $ 374 $ 11,867 Commercial loans held for sale 7,439 108 7,331 37,846 343 37,503 Total loans held for sale $ 25,267 $ 491 $ 24,776 $ 50,087 $ 717 $ 49,370 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (dollars in thousands) 2018 2017 Residential loans held for sale $ 61 $ 200 Commercial loans held for sale (409) (426) Total loans held for sale $ (348) $ (226) The Company adopted ASU No. 2016-01, effective January 1, 2018. Adoption of the standard resulted in the use of an exit price rather than an entrance price to determine the fair value of loans, excluding loans held-for-sale, time deposits, FHLB and other borrowings, subordinated debt, and trust preferred debentures as of March 31, 2018. Although the exit price notion represents the value that would be received to sell an asset or paid to transfer a liability, the actual prices received for a sale of assets or paid to transfer liabilities could be different from the exit price disclosed. The following tables are a summary of the carrying values and fair value estimates of certain financial instruments as of March 31, 2018 and December 31, 2017: March 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 330,233 $ 330,233 $ 330,233 $ — $ — Federal funds sold 950 950 950 — — Investment securities available for sale 726,960 726,960 39,646 682,527 4,787 Equity Securities 11,212 11,212 — 11,212 — Nonmarketable equity securities 38,868 38,868 — 38,868 — Loans, net 4,011,446 3,961,464 — — 3,961,464 Loans held for sale 25,267 25,267 — 25,267 — Accrued interest receivable 15,048 15,048 — 15,048 — Interest rate lock commitments 218 218 — 218 — Forward commitments to sell mortgage-backed securities 5 — — 5 — Interest rate swap contracts 219 — — 219 — Liabilities Deposits $ 4,233,815 $ 4,223,048 $ — $ 4,223,048 $ — Short-term borrowings 130,693 130,693 — 130,693 — FHLB and other borrowings 587,493 584,597 — 584,597 — Subordinated debt 94,013 91,872 — 91,872 — Trust preferred debentures 47,443 51,668 — 51,668 — Accrued interest payable 4,768 4,768 — 4,768 — Interest rate swap contracts 218 218 — 218 — December 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 214,519 $ 214,519 $ 214,519 $ — $ — Federal funds sold 683 683 683 — — Investment securities available for sale 450,525 450,525 27,718 418,028 4,779 Nonmarketable equity securities 34,796 34,796 — 34,796 — Loans, net 3,210,247 3,200,016 — — 3,200,016 Loans held for sale 50,089 50,089 — 50,089 — Accrued interest receivable 11,715 11,715 — 11,715 — Interest rate lock commitments 6,331 6,331 — 6,331 — Forward commitments to sell mortgage-backed securities 31 31 — 31 — Interest rate swap contracts 17 17 — 17 — Liabilities Deposits $ 3,131,089 $ 3,127,626 $ — $ 3,127,626 $ — Short-term borrowings 156,126 156,126 — 156,126 — FHLB and other borrowings 496,436 494,634 — 494,634 — Subordinated debt 93,972 90,860 — 90,860 — Trust preferred debentures 45,379 46,069 — 46,069 — Accrued interest payable 2,531 2,531 — 2,531 — Interest rate swap contracts 17 17 — 17 —

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND CREDIT RISK	3 Months Ended
	Mar. 31, 2018
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
COMMITMENTS, CONTINGENCIES AND CREDIT RISK	Note 15 – 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, 2018 and December 31, 2017 were as follows: March 31, December 31, (dollars in thousands) 2018 2017 Commitments to extend credit $ 793,012 $ 568,356 Financial guarantees – standby letters of credit 142,265 142,189 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 2018 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 incurred losses as a result of make-whole requests and loan repurchases totaling $20,000 for the three months ended March 31, 2018. There were no losses incurred for the three months ended March 31, 2017. The liability for unresolved repurchase demands totaled $714,000 and $371,000 at March 31, 2018 and December 31, 2017, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION
SEGMENT INFORMATION	Note 16 – 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, 2018 and 2017 were as follows: Commercial FHA Origination and (dollars in thousands) Banking Servicing Other Total Three Months Ended March 31, 2018 Net interest income (expense) $ 40,803 $ 36 $ (2,654) $ 38,185 Provision for loan losses 2,006 — — 2,006 Noninterest income 8,091 3,521 4,993 16,605 Noninterest expense 44,092 3,538 1,972 49,602 Income before income taxes 2,796 19 367 3,182 Income taxes (benefit) 1,379 407 (410) 1,376 Net income (loss) $ 1,417 $ (388) $ 777 $ 1,806 Total assets $ 5,738,094 $ 91,580 $ (106,302) $ 5,723,372 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

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	Note 17 – Related Party Transactions A former 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, 2018 and 2017, the Company paid rent on these facilities of $215,000 and $221,000, respectively.

REVENUE FROM CONTRACT WITH CUST

REVENUE FROM CONTRACT WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2018
Revenue from contract with customers
Revenue from contract with customers	Note 18 – Revenue From contracts with customers On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 2, Basis of Presentation and Summary of Significant Accounting Policies , the implementation of the new standard did not have a material impact on the measurement or recognition of revenue. Since the impact of applying the standard was determined to be immaterial, the Company did not record a cumulative effect adjustment to beginning retained earnings on January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with previous GAAP. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The recognition of revenue associated with these noninterest income streams did not change significantly from current practice upon adoption of Topic 606. The noninterest income streams considered in-scope by Topic 606 are discussed below. Wealth Management Revenue Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted by them to the Company on a monthly basis for that month’s transactional activity. Service Charges on Deposit Accounts Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account. Interchange Revenue Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed. Gain on Sales of Other Real Estate Owned The Company records a gain or loss from the sale of other real estate owned (OREO) when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to a buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. Other Noninterest Income The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, and other noninterest related fees. Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Account management fees are considered earned at the time the merchant’s transactions are processed or other services are performed. Fees related to the other components of other noninterest income within the scope of Topic 606 are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at the point in time the customer uses the selected service to execute a transaction. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, (dollars in thousands) 2018 2017 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 3,119 $ 2,342 Investment advisory fees 465 — Investment brokerage fees 367 323 Other 231 207 Service charges on deposit accounts: Nonsufficient fund fees 1,450 582 Other 517 310 Interchange revenues 2,090 977 Other income: Merchant services revenue 293 395 Other 830 421 Noninterest income - out-of-scope of Topic 606 7,243 10,773 Total noninterest income $ 16,605 $ 16,330 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2018 and December 31, 2017, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	Note 19 – Subsequent Events Subsequent events were evaluated through the filing date of May 10, 2018 and no disclosures were required.

BASIS OF PRESENTATION AND SUM28

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
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, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2018. 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 2017 amounts have been made to conform to the 2018 presentation. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.
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.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards FASB Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” – 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. The Company adopted ASU 2014-09 and all subsequent amendments to the ASU (collectively referred to as Topic 606) on January 1, 2018. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The impact of applying this standard to the Company’s consolidated financial statements was determined to be immaterial because the Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09 did not change significantly from current practice. Entities have the option of using either a full retrospective or modified retrospective transition method to adopt ASU 2014-09. We elected to implement this standard using the modified retrospective approach, with the cumulative effect recorded as an adjustment to opening retained earnings at January 1, 2018. Since the impact of applying the standard was determined to be immaterial, the Company did not record a cumulative effect adjustment to beginning retained earnings on January 1, 2018. See “ Note 18 – Revenue from Contracts with Customers ” for further discussion on the Company’s policies for revenue sources within the scope of Topic 606. FASB ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.” – In January 2016, the FASB issued this standard, which is intended to improve the recognition and measurement of financial instruments. This standard, among other things: (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately, in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The adoption of ASU No. 2016-01 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In addition, the Company now classifies equity securities, at fair value, separately from available for sale securities, at fair value. No impairment was recognized on equity securities as of January 1, 2018. In accordance with (iv) above, the Company measured the fair value of its loan portfolio as of March 31, 2018 using an exit price notion (see “ Note 14 – Fair Value of Financial Instruments” ). 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 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 . The Company has formed a cross functional committee that has overseen the enhancement of existing technology required to source and model data for the purposes of meeting this standard. The committee is also in the process of selecting a vendor to assist in generating loan level cash flows and disclosures. 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 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” – In February 2018, ASU 2018-02 was issued following the enactment of the Tax Cuts and Jobs Act, which changed the Company’s federal income tax rate from 35% to 21%. This standard allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The standard is effective for periods beginning after December 15, 2018 although early adoption is permitted. The impact of this ASU on the Company’s consolidated financial statements is not material. FASB ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” – In August 2017, the FASB issued this standard the objectives of which are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. This standard is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not utilize hedge accounting. However, the Company is currently evaluating this standard to determine whether its provisions will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	3 Months Ended
	Mar. 31, 2018
ACQUISITIONS
Schedule of allocation of consideration	(dollars in thousands) Alpine Centrue Assets acquired: Cash and cash equivalents $ 69,459 $ 42,461 Investment securities, at fair value 301,800 149,013 Loans 790,865 679,582 Loans held for sale 3,416 531 Premises and equipment 19,283 17,147 Other real estate owned 53 4,983 Nonmarketable equity securities 2,038 8,168 Accrued interest receivable 4,414 2,376 Mortgage servicing rights — 1,933 Mortgage servicing rights held for sale 3,942 — Intangible assets 31,216 11,070 Cash surrender value of life insurance policies 22,578 36,349 Deferred tax assets, net — 34,339 Other assets 4,840 2,256 Total assets acquired 1,253,904 990,208 Liabilities assumed: Deposits 1,110,025 739,867 Short-term borrowings — 14,434 FHLB advances and other borrowings 18,127 95,332 Trust preferred debentures — 7,565 Accrued interest payable 539 275 Deferred tax liabilities, net 4,284 — Other liabilities 4,667 3,600 Total liabilities assumed 1,137,642 861,073 Net assets acquired 116,262 129,135 Goodwill 56,965 47,444 Total consideration paid $ 173,227 $ 176,579 Intangible assets: Core deposit intangible $ 24,116 $ 11,070 Customer relationship intangible 7,100 — Total Intangible assets $ 31,216 $ 11,070 Estimated useful lives: Core deposit intangible 6 years 8 years Customer relationship intangible 13 years N/A
Schedule of acquired loan data	Best Estimate at Acquisition Date of Fair Value Gross Contractual Contractual Cash of Acquired Loans Amounts Receivable Flows Not Expected (dollars in thousands) at Acquisition Date at Acquisition Date to be Collected Alpine: Acquired receivables subject to ASC 310-30 $ 32,276 $ 40,025 $ 6,907 Acquired receivables not subject to ASC 310-30 758,589 766,613 4,717 Centrue: Acquired receivables subject to ASC 310-30 $ 11,381 $ 20,523 $ 7,227 Acquired receivables not subject to ASC 310-30 668,201 821,338 4,835
Schedule of unaudited pro-forma information	Three Months Ended March 31, (dollars in thousands, except per share data) 2018 2017 Revenue (1) $ 66,803 $ 69,357 Net income 3,278 10,608 Diluted earnings per common share 0.13 $ 0.44 (1) Net interest income plus noninterest income

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2018
INVESTMENT SECURITIES
Schedule of investment securities classified as available for sale	March 31, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value U.S. Treasury securities $ 40,055 $ 13 $ 422 $ 39,646 Government sponsored entity debt securities 87,712 39 686 87,065 Agency mortgage-backed securities 361,927 622 3,804 358,745 State and municipal securities 179,317 3,327 920 181,724 Corporate securities 58,950 1,126 296 59,780 Total $ 727,961 $ 5,127 $ 6,128 $ 726,960 December 31, 2017 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value U.S. Treasury securities $ 28,005 $ — $ 287 $ 27,718 Government sponsored entity debt securities 25,445 41 275 25,211 Agency mortgage-backed securities 233,606 882 2,101 232,387 State and municipal securities 99,449 3,632 514 102,567 Corporate securities 58,904 1,087 179 59,812 Total $ 445,409 $ 5,642 $ 3,356 $ 447,695
Schedule of unrealized losses and fair values for investment securities	March 31, 2018 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss U.S. Treasury securities $ 24,620 $ 394 $ 4,970 $ 28 $ 29,590 $ 422 Government sponsored entity debt securities 58,637 686 — — 58,637 686 Agency mortgage-backed securities 219,158 2,939 18,932 865 238,090 3,804 State and municipal securities 43,599 693 5,341 227 48,940 920 Corporate securities 13,379 182 2,444 114 15,823 296 Total $ 359,393 $ 4,894 $ 31,687 $ 1,234 $ 391,080 $ 6,128 December 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss U.S. Treasury securities $ 19,758 $ 251 $ 7,960 $ 36 $ 27,718 $ 287 Government sponsored entity debt securities 24,168 275 — — 24,168 275 Agency mortgage-backed securities 124,192 1,500 19,530 601 143,722 2,101 State and municipal securities 29,338 331 5,889 183 35,227 514 Corporate securities 5,917 85 3,463 94 9,380 179 Total $ 203,373 $ 2,442 $ 36,842 $ 914 $ 240,215 $ 3,356
Contractual maturity of amortized cost and fair value	Amortized Fair (dollars in thousands) cost value Debt securities: Within one year $ 67,297 $ 67,282 After one year through five years 429,272 427,387 After five years through ten years 187,393 188,330 After ten years 43,999 43,961 Total available for sale securities $ 727,961 $ 726,960

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2018
LOANS
Summary of loans	March 31, 2018 December 31, 2017 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans (1) Total Loans Loans (1) Total Commercial $ 795,431 $ 7,321 $ 802,752 $ 553,257 $ 2,673 $ 555,930 Commercial real estate 1,754,827 18,683 1,773,510 1,427,076 12,935 1,440,011 Construction and land development 226,035 8,802 234,837 199,853 734 200,587 Total commercial loans 2,776,293 34,806 2,811,099 2,180,186 16,342 2,196,528 Residential real estate 553,947 16,374 570,321 447,602 5,950 453,552 Consumer 422,266 1,963 424,229 371,286 169 371,455 Lease financing 223,501 — 223,501 205,143 — 205,143 Total loans $ 3,976,007 $ 53,143 $ 4,029,150 $ 3,204,217 $ 22,461 $ 3,226,678 (1) The unpaid principal balance for PCI loans totaled $73.6 million and $32.8 million as of March 31, 2018 and December 31, 2017, respectively.
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, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Commercial Construction Commercial Construction Real and Land Real and Land (dollars in thousands) Commercial Estate Development Total Commercial Estate Development Total Acceptable credit quality $ 741,523 $ 1,707,011 $ 217,907 $ 2,666,441 $ 510,928 $ 1,384,630 $ 191,872 $ 2,087,430 Special mention 23,516 18,589 — 42,105 12,290 11,497 — 23,787 Substandard 26,896 11,270 — 38,166 27,718 14,695 — 42,413 Substandard – nonaccrual 2,167 13,945 765 16,877 1,266 12,482 785 14,533 Doubtful — — — — — — — — Not graded 1,329 4,012 7,363 12,704 1,055 3,772 7,196 12,023 Total (excluding PCI) $ 795,431 $ 1,754,827 $ 226,035 $ 2,776,293 $ 553,257 $ 1,427,076 $ 199,853 $ 2,180,186 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, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Residential Lease Residential Lease (dollars in thousands) Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 547,961 $ 422,026 $ 222,240 $ 1,192,227 $ 441,418 $ 370,999 $ 203,797 $ 1,016,214 Impaired 5,986 240 1,261 7,487 6,184 287 1,346 7,817 Total (excluding PCI) $ 553,947 $ 422,266 $ 223,501 $ 1,199,714 $ 447,602 $ 371,286 $ 205,143 $ 1,024,031
Summary of impaired loans (excluding PCI loans)	A summary of impaired loans (excluding PCI loans) as of March 31, 2018 and December 31, 2017 is as follows: March 31, December 31, (dollars in thousands) 2018 2017 Nonaccrual loans: Commercial $ 2,167 $ 1,266 Commercial real estate 13,945 12,482 Construction and land development 765 785 Residential real estate 5,142 5,204 Consumer 210 234 Lease financing 1,261 1,346 Total nonaccrual loans 23,490 21,317 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial 26 2,538 Commercial real estate — — Construction and land development — — Residential real estate 99 51 Consumer 30 53 Lease financing — — Total accruing loans contractually past due 90 days or more as to interest or principal payments 155 2,642 Loans modified under troubled debt restructurings: Commercial 557 299 Commercial real estate 1,496 1,515 Construction and land development 56 58 Residential real estate 745 929 Consumer — — Lease financing — — Total loans modified under troubled debt restructurings 2,854 2,801 Total impaired loans (excluding PCI) $ 26,499 $ 26,760 There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2018 and 2017 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 $500,000 and $148,000 the three months ended March 31, 2018 and 2017, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $30,000 and $18,000 for the three months ended March 31, 2018 and 2017, respectively. The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Unpaid Related Unpaid Related Recorded Principal Valuation Recorded Principal Valuation (dollars in thousands) Investment Balance Allowance Investment Balance Allowance Impaired loans with a valuation allowance: Commercial $ 2,257 $ 2,323 $ 1,458 $ 3,237 $ 3,297 $ 526 Commercial real estate 2,049 2,317 180 2,297 3,508 329 Construction and land development 101 101 10 103 102 10 Residential real estate 3,636 4,212 546 4,028 4,705 566 Consumer 198 213 21 266 279 29 Lease financing 1,014 1,014 579 1,064 1,064 345 Total impaired loans with a valuation allowance 9,255 10,180 2,794 10,995 12,955 1,805 Impaired loans with no related valuation allowance: Commercial 493 3,807 — 866 5,782 — Commercial real estate 13,392 19,721 — 11,700 17,359 — Construction and land development 720 760 — 740 780 — Residential real estate 2,350 2,649 — 2,156 2,380 — Consumer 42 42 — 21 21 — Lease financing 247 247 — 282 282 — Total impaired loans with no related valuation allowance 17,244 27,226 — 15,765 26,604 — Total impaired loans: Commercial 2,750 6,130 1,458 4,103 9,079 526 Commercial real estate 15,441 22,038 180 13,997 20,867 329 Construction and land development 821 861 10 843 882 10 Residential real estate 5,986 6,861 546 6,184 7,085 566 Consumer 240 255 21 287 300 29 Lease financing 1,261 1,261 579 1,346 1,346 345 Total impaired loans (excluding PCI) $ 26,499 $ 37,406 $ 2,794 $ 26,760 $ 39,559 $ 1,805 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 $10.9 million and $12.8 million at March 31, 2018 and December 31, 2017, respectively. The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the three months ended March 31, 2018 and 2017 are included in the table below: Three Months Ended March 31, 2018 2017 Interest Income Interest Income Average Recognized Average Recognized Recorded While on Recorded While on (dollars in thousands) Investment Impaired Status Investment Impaired Status Impaired loans with a valuation allowance: Commercial $ 2,291 $ 10 $ 3,532 $ 1 Commercial real estate 2,104 20 2,845 17 Construction and land development 101 1 82 1 Residential real estate 3,579 10 3,494 4 Consumer 208 — 278 — Lease financing 1,014 — 197 — Total impaired loans with a valuation allowance 9,297 41 10,428 23 Impaired loans with no related valuation allowance: Commercial 518 — 828 — Commercial real estate 13,731 — 16,085 — Construction and land development 739 — 394 — Residential real estate 2,370 1 1,271 — Consumer 42 — 25 — Lease financing 247 — 485 — Total impaired loans with no related valuation allowance 17,647 1 19,088 — Total impaired loans: Commercial 2,809 10 4,360 1 Commercial real estate 15,835 20 18,930 17 Construction and land development 840 1 476 1 Residential real estate 5,949 11 4,765 4 Consumer 250 — 303 — Lease financing 1,261 — 682 — Total impaired loans (excluding PCI) $ 26,944 $ 42 $ 29,516 $ 23
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, 2018: Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total (dollars in thousands) Past Due Past Due or More Loans Past Due Current Loans Commercial $ 2,883 $ 1,999 $ 26 $ 2,167 $ 7,075 $ 788,356 $ 795,431 Commercial real estate 7,927 325 — 13,945 22,197 1,732,630 1,754,827 Construction and land development 503 — — 765 1,268 224,767 226,035 Residential real estate 1,422 341 99 5,142 7,004 546,943 553,947 Consumer 2,089 1,389 30 210 3,718 418,548 422,266 Lease financing 1,245 15 — 1,261 2,521 220,980 223,501 Total (excluding PCI) $ 16,069 $ 4,069 $ 155 $ 23,490 $ 43,783 $ 3,932,224 $ 3,976,007 The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2017: Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Nonaccrual Total Total (dollars in thousands) Past Due Past Due or More Loans Past Due Current Loans Commercial $ 3,282 $ 177 $ 2,538 $ 1,266 $ 7,263 $ 545,994 $ 553,257 Commercial real estate 3,116 630 — 12,482 16,228 1,410,848 1,427,076 Construction and land development 1,953 — — 785 2,738 197,115 199,853 Residential real estate 897 632 51 5,204 6,784 440,818 447,602 Consumer 2,824 1,502 53 234 4,613 366,673 371,286 Lease financing 392 — — 1,346 1,738 203,405 205,143 Total (excluding PCI) $ 12,464 $ 2,941 $ 2,642 $ 21,317 $ 39,364 $ 3,164,853 $ 3,204,217
Summary of TDRs loans	The following table presents TDRs by loan portfolio (excluding PCI loans) as of March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 557 $ — $ 557 $ 299 $ — $ 299 Commercial real estate 1,496 9,817 11,313 1,515 9,915 11,430 Construction and land development 56 — 56 58 — 58 Residential real estate 745 248 993 929 282 1,211 Consumer — — — — — — Lease financing — — — — — — Total loans (excluding PCI) $ 2,854 $ 10,065 $ 12,919 $ 2,801 $ 10,197 $ 12,998 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. During the three months ended March 31, 2018, there were no loans restructured. There were also no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2018. 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: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) 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 $ — $ — $ — $ — $ — $ — $ —
Summary of changes in accretable yield for PCI loans	Three Months Ended March 31, (dollars in thousands) 2018 2017 Balance, at beginning of period $ 5,732 $ 9,035 New loans purchased – Alpine acquisition 842 — Accretion (1,161) (2,243) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) 660 9 Reclassification from non-accretable 1,154 2,032 Balance, at end of period $ 7,227 $ 8,833
Summary of changes in allowance for loan losses	Three Months Ended March 31, 2018 2017 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans Total Loans Loans Total Balance, beginning of period $ 14,902 $ 1,529 $ 16,431 $ 13,744 $ 1,118 $ 14,862 Provision for loan losses 1,871 135 2,006 1,405 128 1,533 Charge-offs (1,130) (11) (1,141) (1,167) — (1,167) Recoveries 408 — 408 519 58 577 Net loan (charge-offs) recoveries (722) (11) (733) (648) 58 (590) Balance, end of period $ 16,051 $ 1,653 $ 17,704 $ 14,501 $ 1,304 $ 15,805
Summary of changes in allowance for loan losses, by loan portfolio	Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Changes in allowance for loan losses for the three months ended March 31, 2018: Balance, beginning of period $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Provision for loan losses 567 507 (215) (261) 304 1,104 2,006 Charge-offs (25) (160) — (36) (434) (486) (1,141) Recoveries 104 94 25 51 95 39 408 Balance, end of period $ 5,902 $ 5,485 $ 328 $ 2,504 $ 1,309 $ 2,176 $ 17,704 Changes in allowance for loan losses for the three months ended March 31, 2017: Balance, beginning of period $ 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 Balance, end of period $ 6,034 $ 3,930 $ 460 $ 2,842 $ 1,284 $ 1,255 $ 15,805 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, 2018 and December 31, 2017 by impairment evaluation method: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total March 31, 2018: Allowance for loan losses: Loans individually evaluated for impairment $ 1,426 $ 101 $ 5 $ 289 $ — $ 532 $ 2,353 Loans collectively evaluated for impairment 32 79 5 257 21 47 441 Non-impaired loans collectively evaluated for impairment 3,892 4,913 308 1,408 1,139 1,597 13,257 Loans acquired with deteriorated credit quality (1) 552 392 10 550 149 — 1,653 Total allowance for loan losses $ 5,902 $ 5,485 $ 328 $ 2,504 $ 1,309 $ 2,176 $ 17,704 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 2,455 $ 14,717 $ 776 $ 3,446 $ — $ 825 $ 22,219 Impaired loans collectively evaluated for impairment 295 724 45 2,540 240 436 4,280 Non-impaired loans collectively evaluated for impairment 792,681 1,739,386 225,214 547,961 422,026 222,240 3,949,508 Loans acquired with deteriorated credit quality (1) 7,321 18,683 8,802 16,374 1,963 — 53,143 Total recorded investment (loan balance) $ 802,752 $ 1,773,510 $ 234,837 $ 570,321 $ 424,229 $ 223,501 $ 4,029,150 December 31, 2017: Allowance for loan losses: Loans individually evaluated for impairment $ 221 $ 281 $ 5 $ 302 $ — $ 261 $ 1,070 Loans collectively evaluated for impairment 305 48 5 264 29 84 735 Non-impaired loans collectively evaluated for impairment 4,230 4,379 504 1,644 1,166 1,174 13,097 Loans acquired with deteriorated credit quality (1) 500 336 4 540 149 — 1,529 Total allowance for loan losses $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 1,285 $ 13,554 $ 797 $ 3,700 $ 4 $ 568 $ 19,908 Impaired loans collectively evaluated for impairment 2,818 443 46 2,484 283 778 6,852 Non-impaired loans collectively evaluated for impairment 549,154 1,413,079 199,010 441,418 370,999 203,797 3,177,457 Loans acquired with deteriorated credit quality (1) 2,673 12,935 734 5,950 169 — 22,461 Total recorded investment (loan balance) $ 555,930 $ 1,440,011 $ 200,587 $ 453,552 $ 371,455 $ 205,143 $ 3,226,678 (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.

PREMISES AND EQUIPMENT, NET (Ta

PREMISES AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2018
PREMISES AND EQUIPMENT
Summary of premises and equipment	March 31, December 31, (dollars in thousands) 2018 2017 Land $ 19,613 $ 16,109 Buildings and improvements 79,227 63,837 Furniture and equipment 27,319 25,843 Total 126,159 105,789 Accumulated depreciation (30,827) (29,627) Premises and equipment, net $ 95,332 $ 76,162

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 and December 31, 2017 is as follows: March 31, December 31, (dollars in thousands) 2018 2017 Commercial FHA mortgage loans $ 4,002,907 $ 3,976,795 Residential mortgage loans 1,437,854 1,989,785 Total loans serviced for others $ 5,440,761 $ 5,966,580 Changes in our mortgage servicing rights were as follows for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (dollars in thousands) 2018 2017 Mortgage servicing rights: Balance, beginning of period $ 60,383 $ 71,710 Servicing rights capitalized – commercial FHA mortgage loans 1,001 1,481 Servicing rights capitalized – residential mortgage loans 70 518 Amortization – commercial FHA mortgage loans (676) (639) Amortization – residential mortgage loans (187) (735) Other-than-temporary impairment - residential mortgage loans (777) — Balance, end of period 59,814 72,335 Valuation allowances: Balance, beginning of period 4,031 3,702 Additions 133 188 Reductions — (112) Other-than-temporary impairment - residential mortgage loans (777) — Balance, end of period 3,387 3,778 Mortgage servicing rights, net $ 56,427 $ 68,557 Fair value: At beginning of period $ 56,352 $ 68,008 At end of period $ 57,051 $ 68,557
Schedule of summary of key assumptions	Remaining Servicing Interest Years to Prepayment Servicing Discount (dollars in thousands) Fee Rate Maturity Rate Cost Rate March 31, 2018: Commercial FHA mortgage loans 0.13 % 3.66 % 30.3 8.26 % $ 1,000 11.02 % Residential mortgage loans 0.27 % 3.93 % 22.1 8.66 % $ 76 11.03 % December 31, 2017: Commercial FHA mortgage loans 0.12 % 3.67 % 30.3 8.27 % $ 1,000 11.02 % Residential mortgage loans 0.26 % 3.93 % 23.2 11.52 % $ 71 10.09 %

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2018
GOODWILL AND INTANGIBLE ASSETS
Schedule of intangible assets	March 31, 2018 December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 55,728 $ (20,445) $ 35,283 $ 31,612 $ (18,943) $ 12,669 Customer relationship intangibles 14,571 (3,381) 11,190 7,471 (3,208) 4,263 Total intangible assets $ 70,299 $ (23,826) $ 46,473 $ 39,083 $ (22,151) $ 16,932

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments, fair value and notional amounts	Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, (dollars in thousands) 2018 2017 2018 2017 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 372,726 $ 345,152 $ 6,380 $ 6,331 Forward commitments to sell mortgage-backed securities 350,157 372,824 5 31 Total $ 722,883 $ 717,976 $ 6,385 $ 6,362 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, (dollars in thousands) 2018 2017 2018 2017 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 6,780 $ — $ 19 $ —

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2018
DEPOSITS
Schedule summarizes the classification of deposits	March 31, December 31, (dollars in thousands) 2018 2017 Noninterest-bearing demand $ 1,037,710 $ 724,443 Interest-bearing: Checking 993,253 785,934 Money market 840,415 646,426 Savings 466,887 281,212 Time 895,550 693,074 Total deposits $ 4,233,815 $ 3,131,089

SHORT-TERM BORROWINGS (Tables)

SHORT-TERM BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2018
SHORT-TERM BORROWINGS
Schedule of short term borrowings	Repurchase Agreements March 31, December 31, (dollars in thousands) 2018 2017 Outstanding at period-end $ 130,693 $ 156,126 Average amount outstanding 148,703 163,461 Maximum amount outstanding at any month end 173,387 196,278 Weighted average interest rate: During period 0.34 % 0.23 % End of period 0.31 % 0.28 %

FHLB ADVANCES AND OTHER BORRO38

FHLB ADVANCES AND OTHER BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2018
FHLB ADVANCES AND OTHER BORROWINGS
Schedule of Federal Home Loan Bank (FHLB) advances	March 31, December 31, (dollars in thousands) 2018 2017 Midland States Bancorp, Inc. Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 3.94% and 3.63% at March 31, 2018 and December 31, 2017, respectively, – maturing through May 25, 2020 $ $ 37,113 Series G redeemable preferred stock - 181 shares at $1,000 per share Midland States Bank FHLB advances – fixed rate, fixed term of $177.0 million and $145.0 million, at rates averaging 1.54% and 1.35% at March 31, 2018 and December 31, 2017, respectively – maturing through June 2021, putable fixed rate of $305.0 million at rates averaging 1.29% at both March 31, 2018 and December 31, 2017 – maturing through December 2024 with call provisions through December 2020, and callable fixed rate of $50.0 million, at a rate of 2.56% at March 31, 2018, maturing in May 2019 532,126 450,137 FHLB advances – variable rate, fixed term, at rates averaging 1.20% at December 31, 2017 – matured in March 2018 — 9,000 Other 2 5 Alpine Bank FHLB advances - fixed rate, fixed term, at rates averaging 2.33% at March 31, 2018 - maturing through February 2023. 18,067 — Total FHLB advances and other borrowings $ 587,493 $ 496,436

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended March 31, (dollars in thousands, except per share data) 2018 2017 Net income $ 1,806 $ 8,490 Preferred stock dividends (83) — Amortization of preferred stock premium 47 — Net income available to common equity 1,770 8,490 Common shareholder dividends (4,208) (3,109) Unvested restricted stock award dividends (31) (20) Undistributed earnings to unvested restricted stock awards — (32) Undistributed earnings to common shareholders $ (2,469) $ 5,329 Basic Distributed earnings to common shareholders $ 4,208 $ 3,109 Undistributed earnings to common shareholders (2,469) 5,329 Total common shareholders earnings, basic $ 1,739 $ 8,438 Diluted Distributed earnings to common shareholders $ 4,208 $ 3,109 Undistributed earnings to common shareholders (2,469) 5,329 Total common shareholders earnings 1,739 8,438 Add back: Undistributed earnings reallocated from unvested restricted stock awards — 1 Total common shareholders earnings, diluted $ 1,739 $ 8,439 Weighted average common shares outstanding, basic 20,901,738 15,736,412 Options and warrants 449,773 615,225 Weighted average common shares outstanding, diluted 21,351,511 16,351,637 Basic earnings per common share $ 0.08 $ 0.54 Diluted earnings per common share 0.08 0.52

FAIR VALUE OF FINANCIAL INSTR40

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of assets and liabilities measured and recorded at fair value	March 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 39,646 $ 39,646 $ — $ — Government sponsored entity debt securities 87,065 — 87,065 — Agency mortgage-backed securities 358,745 — 358,745 — State and municipal securities 181,724 — 181,724 — Corporate securities 59,780 — 54,993 4,787 Equity securities 11,212 — 11,212 — Loans held for sale 25,267 — 25,267 — Interest rate lock commitments 6,380 — 6,380 — Forward commitments to sell mortgage-backed securities 5 — 5 — Interest rate swap contracts 219 — 219 — Total $ 770,043 $ 39,646 $ 725,610 $ 4,787 Liabilities Forward commitments to sell mortgage-backed securities $ 19 $ — $ 19 $ — Interest rate swap contracts 219 — 219 — Total $ 238 $ — $ 238 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 56,427 $ — $ — $ 56,427 Mortgage servicing rights held for sale 3,962 3,962 — — Impaired loans 2,888 — 1,209 1,679 December 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level) 3 Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 27,718 $ 27,718 $ — $ — Government sponsored entity debt securities 25,211 — 25,211 — Agency mortgage-backed securities 232,387 — 232,387 — State and municipal securities 102,567 — 102,567 — Corporate securities 59,812 — 55,033 4,779 Equity securities 2,830 — 2,830 — Loans held for sale 50,089 — 50,089 — Interest rate lock commitments 6,331 — 6,331 — Forward commitments to sell mortgage-backed securities 31 — 31 — Interest rate swap contracts 17 — 17 — Total $ 506,993 $ 27,718 $ 474,496 $ 4,779 Liabilities Interest rate swap contracts $ 17 $ — $ 17 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 56,352 $ — $ — $ 56,352 Mortgage servicing rights held for sale 10,176 10,176 — — Impaired loans 9,385 — 7,631 1,754 Other real estate owned 801 — 801 — Assets held for sale 3,358 — 3,358 —
Schedule of losses recognized on assets measured on a non-recurring basis	Three Months Ended March 31, (dollars in thousands) 2018 2017 Mortgage servicing rights $ 133 $ 76 Impaired loans 875 350 Other real estate owned — 171 Total loss on assets measured on a nonrecurring basis $ 1,008 $ 597
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, 2018: Corporate (dollars in thousands) Securities Balance, beginning of period $ 4,779 Total realized in earnings (1) 56 Total unrealized in other comprehensive income — Net settlements (principal and interest) (48) Balance, end of period $ 4,787 (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, 2017: Non-Agency Corporate Mortgage-Backed (dollars in thousands) 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.
Schedule presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3)	The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at March 31, 2018 (in thousands): Non-recurring Valuation Unobservable fair value measurements Fair Value technique input / assumptions Range (weighted average) Mortgage servicing rights $ 56,427 Discounted cash flow Prepayment speed 6.00% - 42.90% (8.36%) Discount rate 8.00% - 14.50% (11.02%) Impaired loans $ 1,679 Discounted cash flow Discount rate 4.84% - 8.10% (6.54%)
Schedule of the fair value option for newly originated residential and commercial loans held for sale	The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Residential loans held for sale $ 17,828 $ 383 $ 17,445 $ 12,241 $ 374 $ 11,867 Commercial loans held for sale 7,439 108 7,331 37,846 343 37,503 Total loans held for sale $ 25,267 $ 491 $ 24,776 $ 50,087 $ 717 $ 49,370 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (dollars in thousands) 2018 2017 Residential loans held for sale $ 61 $ 200 Commercial loans held for sale (409) (426) Total loans held for sale $ (348) $ (226)
Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments	March 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 330,233 $ 330,233 $ 330,233 $ — $ — Federal funds sold 950 950 950 — — Investment securities available for sale 726,960 726,960 39,646 682,527 4,787 Equity Securities 11,212 11,212 — 11,212 — Nonmarketable equity securities 38,868 38,868 — 38,868 — Loans, net 4,011,446 3,961,464 — — 3,961,464 Loans held for sale 25,267 25,267 — 25,267 — Accrued interest receivable 15,048 15,048 — 15,048 — Interest rate lock commitments 218 218 — 218 — Forward commitments to sell mortgage-backed securities 5 — — 5 — Interest rate swap contracts 219 — — 219 — Liabilities Deposits $ 4,233,815 $ 4,223,048 $ — $ 4,223,048 $ — Short-term borrowings 130,693 130,693 — 130,693 — FHLB and other borrowings 587,493 584,597 — 584,597 — Subordinated debt 94,013 91,872 — 91,872 — Trust preferred debentures 47,443 51,668 — 51,668 — Accrued interest payable 4,768 4,768 — 4,768 — Interest rate swap contracts 218 218 — 218 — December 31, 2017 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 214,519 $ 214,519 $ 214,519 $ — $ — Federal funds sold 683 683 683 — — Investment securities available for sale 450,525 450,525 27,718 418,028 4,779 Nonmarketable equity securities 34,796 34,796 — 34,796 — Loans, net 3,210,247 3,200,016 — — 3,200,016 Loans held for sale 50,089 50,089 — 50,089 — Accrued interest receivable 11,715 11,715 — 11,715 — Interest rate lock commitments 6,331 6,331 — 6,331 — Forward commitments to sell mortgage-backed securities 31 31 — 31 — Interest rate swap contracts 17 17 — 17 — Liabilities Deposits $ 3,131,089 $ 3,127,626 $ — $ 3,127,626 $ — Short-term borrowings 156,126 156,126 — 156,126 — FHLB and other borrowings 496,436 494,634 — 494,634 — Subordinated debt 93,972 90,860 — 90,860 — Trust preferred debentures 45,379 46,069 — 46,069 — Accrued interest payable 2,531 2,531 — 2,531 — Interest rate swap contracts 17 17 — 17 —

COMMITMENTS, CONTINGENCIES AN41

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)	3 Months Ended
	Mar. 31, 2018
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
Schedule of loan commitments	March 31, December 31, (dollars in thousands) 2018 2017 Commitments to extend credit $ 793,012 $ 568,356 Financial guarantees – standby letters of credit 142,265 142,189

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION
Schedule of segment financial information	Commercial FHA Origination and (dollars in thousands) Banking Servicing Other Total Three Months Ended March 31, 2018 Net interest income (expense) $ 40,803 $ 36 $ (2,654) $ 38,185 Provision for loan losses 2,006 — — 2,006 Noninterest income 8,091 3,521 4,993 16,605 Noninterest expense 44,092 3,538 1,972 49,602 Income before income taxes 2,796 19 367 3,182 Income taxes (benefit) 1,379 407 (410) 1,376 Net income (loss) $ 1,417 $ (388) $ 777 $ 1,806 Total assets $ 5,738,094 $ 91,580 $ (106,302) $ 5,723,372 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

REVENUE FROM CONTRACT WITH CU43

REVENUE FROM CONTRACT WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from contract with customers
Summary of noninterest income, segregated by revenue	Three Months Ended March 31, (dollars in thousands) 2018 2017 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 3,119 $ 2,342 Investment advisory fees 465 — Investment brokerage fees 367 323 Other 231 207 Service charges on deposit accounts: Nonsufficient fund fees 1,450 582 Other 517 310 Interchange revenues 2,090 977 Other income: Merchant services revenue 293 395 Other 830 421 Noninterest income - out-of-scope of Topic 606 7,243 10,773 Total noninterest income $ 16,605 $ 16,330

BASIS OF PRESENTATION AND SUM44

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2018
Effective income tax rate	35.00%
Forecast
Effective income tax rate		21.00%

ACQUISITIONS - Alpine (Details)

ACQUISITIONS - Alpine (Details) $ / shares in Units, $ in Thousands	Feb. 28, 2018USD ($)stateshares	Jun. 09, 2017USD ($)itemshares	Mar. 31, 2018USD ($)$ / shares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2017USD ($)
Liabilities assumed:
Goodwill			$ 155,674		$ 98,624
Alpine Bank
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Number of service banking centers acquired | state	19
Total consideration	$ 173,200
Cash transferred	$ 33,300
Shares issued | shares	4,463,200
Transaction and integration costs	$ 11,600
Assets acquired:
Cash and cash equivalents			69,459
Investment securities, at fair value			301,800
Loans			790,865
Loans held for sale			3,416
Premises and equipment			19,283
Other real estate owned			53
Nonmarketable equity securities			2,038
Accrued interest receivable			4,414
Mortgage servicing rights held for sale			3,942
Intangible assets			31,216
Cash surrender value of life insurance policies			22,578
Other assets			4,840
Total assets acquired			1,253,904
Liabilities assumed:
Deposits			1,110,025
FHLB advances and other borrowings			18,127
Accrued interest payable			539
Deferred tax liabilities, net			4,284
Other liabilities			4,667
Total liabilities assumed			1,137,642
Net assets acquired			116,262
Goodwill			56,965
Total consideration paid			173,227
Business Acquisition, Pro Forma Information
Revenue (1)			66,803	$ 69,357
Net income			$ 3,278	$ 10,608
Diluted earnings per common share | $ / shares			$ 0.13	$ 0.44
Intangible assets:
Total Intangible assets			$ 31,216
Alpine Bank | Core deposits
Assets acquired:
Intangible assets	24,100
Intangible assets:
Total Intangible assets			$ 24,116
Estimated useful lives:
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			6 years
Alpine Bank | Customer relationship
Assets acquired:
Intangible assets	7,100
Intangible assets:
Total Intangible assets			$ 7,100
Estimated useful lives:
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			13 years
Centrue
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Number of service banking centers acquired | item		20
Total consideration		$ 176,600
Cash transferred		$ 61,000
Shares issued | shares		3,219,238
Transaction and integration costs			$ 1,100		$ 16,000
Assets acquired:
Cash and cash equivalents	42,461
Investment securities, at fair value	149,013
Loans	679,582
Loans held for sale	531
Premises and equipment	17,147
Other real estate owned	4,983
Nonmarketable equity securities	8,168
Accrued interest receivable	2,376
Mortgage servicing rights	1,933
Intangible assets	11,070
Cash surrender value of life insurance policies	36,349
Deferred tax assets, net	34,339
Other assets	2,256
Total assets acquired	990,208
Liabilities assumed:
Deposits	739,867
Short-term borrowings	14,434
FHLB advances and other borrowings	95,332
Trust preferred debentures	7,565
Accrued interest payable	275
Other liabilities	3,600
Total liabilities assumed	861,073
Net assets acquired	129,135
Goodwill	47,444
Total consideration paid	176,579
Business Acquisition, Pro Forma Information
Acquisition related costs			$ 10,700
Intangible assets:
Total Intangible assets	11,070
Centrue | Core deposits
Intangible assets:
Total Intangible assets	$ 11,070
Estimated useful lives:
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			8 years
Centrue | Series G Preferred Stock
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Shares issued | shares		181
Centrue | Series H Preferred Stock
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Shares issued | shares		2,635.5462
Acquired receivables subject to ASC 310-30 | Alpine Bank
Acquired loan data
Fair value of acquired loans at acquisition date			$ 32,276
Gross contractual amounts receivable at acquisition date			40,025
Best estimate at acquisition date of contractual cash flows not expected to be collected			6,907
Acquired receivables subject to ASC 310-30 | Centrue
Acquired loan data
Fair value of acquired loans at acquisition date			11,381
Gross contractual amounts receivable at acquisition date			20,523
Best estimate at acquisition date of contractual cash flows not expected to be collected			7,227
Acquired receivables not subject to ASC 310-30 [member] | Alpine Bank
Acquired loan data
Fair value of acquired loans at acquisition date			758,589
Gross contractual amounts receivable at acquisition date			766,613
Best estimate at acquisition date of contractual cash flows not expected to be collected			4,717
Acquired receivables not subject to ASC 310-30 [member] | Centrue
Acquired loan data
Fair value of acquired loans at acquisition date			668,201
Gross contractual amounts receivable at acquisition date			821,338
Best estimate at acquisition date of contractual cash flows not expected to be collected			$ 4,835

ACQUISITIONS - CedarPoint (Deta

ACQUISITIONS - CedarPoint (Details) - USD ($)	Mar. 28, 2017	Mar. 31, 2018	Dec. 31, 2017
Business Acquisition
Goodwill		$ 155,674,000	$ 98,624,000
CedarPoint
Business Acquisition
Assets under administration	$ 180,000,000
Total consideration	3,700,000
Additional consideration as accrual in other liabilities	$ 345,000
Consideration transferred, shares, in escrow	18,000
Goodwill	$ 2,400,000
CedarPoint | Customer relationship
Business Acquisition
Intangible assets	$ 2,000,000
Amortization period	12 years
Common stock | CedarPoint | Customer relationship
Business Acquisition
Share consideration	102,000

INVESTMENT SECURITIES - Classif

INVESTMENT SECURITIES - Classified (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Investment securities classified as available for sale
Amortized cost	$ 727,961,000		$ 445,409,000
Gross unrealized gains	5,127,000		5,642,000
Gross unrealized losses	6,128,000		3,356,000
Investment securities available for sale	726,960,000		447,695,000
Gross realized gains	65,000	$ 67,000
U.S. Treasury securities
Investment securities classified as available for sale
Amortized cost	40,055,000		28,005,000
Gross unrealized gains	13,000
Gross unrealized losses	422,000		287,000
Investment securities available for sale	39,646,000		27,718,000
Government sponsored entity debt securities
Investment securities classified as available for sale
Amortized cost	87,712,000		25,445,000
Gross unrealized gains	39,000		41,000
Gross unrealized losses	686,000		275,000
Investment securities available for sale	87,065,000		25,211,000
Agency mortgage-backed securities
Investment securities classified as available for sale
Amortized cost	361,927,000		233,606,000
Gross unrealized gains	622,000		882,000
Gross unrealized losses	3,804,000		2,101,000
Investment securities available for sale	358,745,000		232,387,000
State and municipal securities
Investment securities classified as available for sale
Amortized cost	179,317,000		99,449,000
Gross unrealized gains	3,327,000		3,632,000
Gross unrealized losses	920,000		514,000
Investment securities available for sale	181,724,000		102,567,000
Corporate Securities
Investment securities classified as available for sale
Amortized cost	58,950,000		58,904,000
Gross unrealized gains	1,126,000		1,087,000
Gross unrealized losses	296,000		179,000
Investment securities available for sale	$ 59,780,000		$ 59,812,000

INVESTMENT SECURITIES - Continu

INVESTMENT SECURITIES - Continuous unrealized loss position (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)item	Dec. 31, 2017USD ($)
Securities available for sale:
Less than 12 Months, Fair value	$ 359,393	$ 203,373
Less than 12 Months, Unrealized loss	4,894	2,442
12 Months or more, Fair value	31,687	36,842
12 Months or more, Unrealized loss	1,234	914
Total, Fair value	391,080	240,215
Total, Unrealized loss	$ 6,128	3,356
Unrealized loss
Debt Securities Available For Sale Unrealized Loss Position Number Of Positions | item	256
Aggregate depreciation	1.54%
U.S. Treasury securities
Securities available for sale:
Less than 12 Months, Fair value	$ 24,620	19,758
Less than 12 Months, Unrealized loss	394	251
12 Months or more, Fair value	4,970	7,960
12 Months or more, Unrealized loss	28	36
Total, Fair value	29,590	27,718
Total, Unrealized loss	422	287
Government sponsored entity debt securities
Securities available for sale:
Less than 12 Months, Fair value	58,637	24,168
Less than 12 Months, Unrealized loss	686	275
Total, Fair value	58,637	24,168
Total, Unrealized loss	686	275
Agency mortgage-backed securities
Securities available for sale:
Less than 12 Months, Fair value	219,158	124,192
Less than 12 Months, Unrealized loss	2,939	1,500
12 Months or more, Fair value	18,932	19,530
12 Months or more, Unrealized loss	865	601
Total, Fair value	238,090	143,722
Total, Unrealized loss	3,804	2,101
State and municipal securities
Securities available for sale:
Less than 12 Months, Fair value	43,599	29,338
Less than 12 Months, Unrealized loss	693	331
12 Months or more, Fair value	5,341	5,889
12 Months or more, Unrealized loss	227	183
Total, Fair value	48,940	35,227
Total, Unrealized loss	920	514
Corporate Securities
Securities available for sale:
Less than 12 Months, Fair value	13,379	5,917
Less than 12 Months, Unrealized loss	182	85
12 Months or more, Fair value	2,444	3,463
12 Months or more, Unrealized loss	114	94
Total, Fair value	15,823	9,380
Total, Unrealized loss	$ 296	$ 179

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Amortized cost of available-for-sale securities, by contractual maturity
Within one year	$ 67,297,000
After one year through five years	429,272,000
After five years through ten years	187,393,000
After ten years	43,999,000
Total, single maturity date	727,961,000
Fair Value of available-for-sale securities, by contractual maturity
Within one year	67,282,000
After one year through five years	427,387,000
After five years through ten years	188,330,000
After ten years	43,961,000
Total, single maturity date	726,960,000
Proceeds from Sale of Available-for-sale Securities
Proceed from sales	1,609,000	$ 3,058,000
Gross realized gains/losses
Gross realized gains	65,000	67,000
Investment securities available for sale	726,960,000		$ 447,695,000
Equity securities	11,200,000		2,800,000
Gross realized losses	0	$ 0
Equity securities, unrealized gains	178,000
Equity securities, unrealized losses	67,000
Agency mortgage-backed securities
Gross realized gains/losses
Investment securities available for sale	$ 358,745,000		$ 232,387,000

LOANS - Summary of loans (Detai

LOANS - Summary of loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Summary of loans
Loans	$ 4,029,150,000		$ 3,226,678,000
Loans, additional information
Net deferred loan fees	16,900,000		10,100,000
Unearned discounts	23,200,000		20,700,000
Loans held for sale	25,267,000		50,089,000
Proceeds from sales of loans held for sale	154,020,000	$ 257,560,000
Directors, executive officers, principal shareholders and affiliates
Loans to certain directors, executive officers, principal shareholders and their affiliates:
Loans outstanding to related parties	19,900,000		22,400,000
New loans to related parties and other additions	1
Repayments from related parties and other reductions	3,500,000
Commercial real estate
Summary of loans
Loans	2,811,099,000		2,196,528,000
Commercial real estate | Commercial
Summary of loans
Loans	802,752,000		555,930,000
Commercial real estate | Commercial real estate
Summary of loans
Loans	1,773,510,000		1,440,011,000
Commercial real estate | Construction and land development
Summary of loans
Loans	$ 234,837,000		200,587,000
Other loan portfolio | Maximum
Loans, additional information
Term of lease	4 years
Other loan portfolio | Residential real estate
Summary of loans
Loans	$ 570,321,000		453,552,000
Other loan portfolio | Consumer
Summary of loans
Loans	424,229,000		371,455,000
Other loan portfolio | Lease financing
Summary of loans
Loans	223,501,000		205,143,000
Commercial and Residential Loan
Loans, additional information
Loans held for sale	25,300,000		50,100,000
Proceeds from sales of loans held for sale	154,000,000	$ 257,600,000
Non-PCI loans
Summary of loans
Loans	3,976,007,000		3,204,217,000
Non-PCI loans | Commercial real estate
Summary of loans
Loans	2,776,293,000		2,180,186,000
Non-PCI loans | Commercial real estate | Commercial
Summary of loans
Loans	795,431,000		553,257,000
Non-PCI loans | Commercial real estate | Commercial real estate
Summary of loans
Loans	1,754,827,000		1,427,076,000
Non-PCI loans | Commercial real estate | Construction and land development
Summary of loans
Loans	226,035,000		199,853,000
Non-PCI loans | Other loan portfolio
Summary of loans
Loans	1,199,714,000		1,024,031,000
Non-PCI loans | Other loan portfolio | Residential real estate
Summary of loans
Loans	553,947,000		447,602,000
Non-PCI loans | Other loan portfolio | Consumer
Summary of loans
Loans	422,266,000		371,286,000
Non-PCI loans | Other loan portfolio | Lease financing
Summary of loans
Loans	223,501,000		205,143,000
PCI loans
Summary of loans
Loans	53,143,000		22,461,000
Customer outstanding balances	73,600,000		32,800,000
PCI loans | Commercial real estate
Summary of loans
Loans	34,806,000		16,342,000
PCI loans | Commercial real estate | Commercial
Summary of loans
Loans	7,321,000		2,673,000
PCI loans | Commercial real estate | Commercial real estate
Summary of loans
Loans	18,683,000		12,935,000
PCI loans | Commercial real estate | Construction and land development
Summary of loans
Loans	8,802,000		734,000
PCI loans | Other loan portfolio | Residential real estate
Summary of loans
Loans	16,374,000		5,950,000
PCI loans | Other loan portfolio | Consumer
Summary of loans
Loans	$ 1,963,000		$ 169,000

LOANS - Risk category (Details)

LOANS - Risk category (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)region	Dec. 31, 2017USD ($)
Risk category
Number of main regions | region	4
Loans and Leases Receivable, Gross, Total	$ 4,029,150	$ 3,226,678
Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,811,099	2,196,528
Non-PCI loans
Risk category
Loans and Leases Receivable, Gross, Total	3,976,007	3,204,217
Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,776,293	2,180,186
Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	2,666,441	2,087,430
Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	42,105	23,787
Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	38,166	42,413
Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	16,877	14,533
Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	12,704	12,023
Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	1,199,714	1,024,031
Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	1,192,227	1,016,214
Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	7,487	7,817
Commercial | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	802,752	555,930
Commercial | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	795,431	553,257
Commercial | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	741,523	510,928
Commercial | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	23,516	12,290
Commercial | Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	26,896	27,718
Commercial | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	2,167	1,266
Commercial | Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	1,329	1,055
Commercial real estate | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,773,510	1,440,011
Commercial real estate | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,754,827	1,427,076
Commercial real estate | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	1,707,011	1,384,630
Commercial real estate | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	18,589	11,497
Commercial real estate | Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	11,270	14,695
Commercial real estate | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	13,945	12,482
Commercial real estate | Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	4,012	3,772
Construction and land development | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	234,837	200,587
Construction and land development | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	226,035	199,853
Construction and land development | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	217,907	191,872
Construction and land development | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	765	785
Construction and land development | Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	7,363	7,196
Residential real estate | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	570,321	453,552
Residential real estate | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	553,947	447,602
Residential real estate | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	547,961	441,418
Residential real estate | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	5,986	6,184
Consumer | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	424,229	371,455
Consumer | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	422,266	371,286
Consumer | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	422,026	370,999
Consumer | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	240	287
Lease financing | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	223,501	205,143
Lease financing | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	223,501	205,143
Lease financing | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	222,240	203,797
Lease financing | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	$ 1,261	$ 1,346

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Summary of impaired loans
Loans modified under troubled debt restructuring	$ 12,919,000		$ 12,998,000
Interest income :
Interest income recognized on nonaccrual loans	0	$ 0
Additional interest income that would have been recorded had they been current	500,000	148,000
Recognized interest income on loans modified under troubled debt restructurings	30,000	$ 18,000
Non-PCI loans
Summary of impaired loans
Nonaccrual loans	23,490,000		21,317,000
Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	23,490,000		21,317,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	155,000		2,642,000
Loans modified under troubled debt restructuring	2,854,000		2,801,000
Total impaired loans	26,499,000		26,760,000
PCI loans
Summary of impaired loans
Total impaired loans	53,100,000		22,500,000
Commercial | Commercial real estate | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	2,167,000		1,266,000
Loans modified under troubled debt restructuring	557,000		299,000
Commercial | Commercial real estate | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	2,167,000		1,266,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	26,000		2,538,000
Loans modified under troubled debt restructuring	557,000		299,000
Total impaired loans	2,750,000		4,103,000
Commercial real estate | Commercial real estate | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	13,945,000		12,482,000
Loans modified under troubled debt restructuring	11,313,000		11,430,000
Commercial real estate | Commercial real estate | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	13,945,000		12,482,000
Loans modified under troubled debt restructuring	1,496,000		1,515,000
Total impaired loans	15,441,000		13,997,000
Construction and land development | Commercial real estate | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	765,000		785,000
Loans modified under troubled debt restructuring	56,000		58,000
Construction and land development | Commercial real estate | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	765,000		785,000
Loans modified under troubled debt restructuring	56,000		58,000
Total impaired loans	821,000		843,000
Residential real estate | Other loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	5,142,000		5,204,000
Loans modified under troubled debt restructuring	993,000		1,211,000
Residential real estate | Other loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	5,142,000		5,204,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	99,000		51,000
Loans modified under troubled debt restructuring	745,000		929,000
Total impaired loans	5,986,000		6,184,000
Consumer | Other loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	210,000		234,000
Consumer | Other loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	210,000		234,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	30,000		53,000
Total impaired loans	240,000		287,000
Lease financing | Other loan portfolio | Non-PCI loans
Summary of impaired loans
Nonaccrual loans	1,261,000		1,346,000
Lease financing | Other loan portfolio | Non-PCI loans | Impaired
Summary of impaired loans
Nonaccrual loans	1,261,000		1,346,000
Total impaired loans	$ 1,261,000		$ 1,346,000

LOANS - Impaired Loans Individu

LOANS - Impaired Loans Individually Evaluated (excluding PCI loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Impaired loans (excluding PCI loans) by portfolio
Difference between the recorded investment and unpaid principal balance	$ 10,900		$ 12,800
Impaired | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	9,255		10,995
With a valuation allowance, Unpaid Principal Balance	10,180		12,955
With a valuation allowance, Average Annual Recorded Investment	9,297	$ 10,428
With a related valuation allowance, Interest Income Recognized while on Impaired Status	41	23
With no related valuation allowance, Recorded Investment	17,244		15,765
With no related valuation allowance, Unpaid Principal Balance	27,226		26,604
With no related valuation allowance, Average Annual Recorded Investment	17,647	19,088
With no related valuation allowance, Interest Income Recognized while on Impaired Status	1
Total impaired loans	26,499		26,760
Total, Unpaid Principal Balance	37,406		39,559
Total, Related Valuation Allowance	2,794		1,805
Total, Average Annual Recorded Investment	26,944	29,516
Total, Interest Income Recognized While on Impaired Status	42	23
Commercial | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	2,257		3,237
With a valuation allowance, Unpaid Principal Balance	2,323		3,297
With a valuation allowance, Average Annual Recorded Investment	2,291	3,532
With a related valuation allowance, Interest Income Recognized while on Impaired Status	10	1
With no related valuation allowance, Recorded Investment	493		866
With no related valuation allowance, Unpaid Principal Balance	3,807		5,782
With no related valuation allowance, Average Annual Recorded Investment	518	828
Total impaired loans	2,750		4,103
Total, Unpaid Principal Balance	6,130		9,079
Total, Related Valuation Allowance	1,458		526
Total, Average Annual Recorded Investment	2,809	4,360
Total, Interest Income Recognized While on Impaired Status	10	1
Commercial real estate | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	2,049		2,297
With a valuation allowance, Unpaid Principal Balance	2,317		3,508
With a valuation allowance, Average Annual Recorded Investment	2,104	2,845
With a related valuation allowance, Interest Income Recognized while on Impaired Status	20	17
With no related valuation allowance, Recorded Investment	13,392		11,700
With no related valuation allowance, Unpaid Principal Balance	19,721		17,359
With no related valuation allowance, Average Annual Recorded Investment	13,731	16,085
Total impaired loans	15,441		13,997
Total, Unpaid Principal Balance	22,038		20,867
Total, Related Valuation Allowance	180		329
Total, Average Annual Recorded Investment	15,835	18,930
Total, Interest Income Recognized While on Impaired Status	20	17
Construction and land development | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	101		103
With a valuation allowance, Unpaid Principal Balance	101		102
With a valuation allowance, Average Annual Recorded Investment	101	82
With a related valuation allowance, Interest Income Recognized while on Impaired Status	1	1
With no related valuation allowance, Recorded Investment	720		740
With no related valuation allowance, Unpaid Principal Balance	760		780
With no related valuation allowance, Average Annual Recorded Investment	739	394
Total impaired loans	821		843
Total, Unpaid Principal Balance	861		882
Total, Related Valuation Allowance	10		10
Total, Average Annual Recorded Investment	840	476
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	3,636		4,028
With a valuation allowance, Unpaid Principal Balance	4,212		4,705
With a valuation allowance, Average Annual Recorded Investment	3,579	3,494
With a related valuation allowance, Interest Income Recognized while on Impaired Status	10	4
With no related valuation allowance, Recorded Investment	2,350		2,156
With no related valuation allowance, Unpaid Principal Balance	2,649		2,380
With no related valuation allowance, Average Annual Recorded Investment	2,370	1,271
With no related valuation allowance, Interest Income Recognized while on Impaired Status	1
Total impaired loans	5,986		6,184
Total, Unpaid Principal Balance	6,861		7,085
Total, Related Valuation Allowance	546		566
Total, Average Annual Recorded Investment	5,949	4,765
Total, Interest Income Recognized While on Impaired Status	11	4
Consumer | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	198		266
With a valuation allowance, Unpaid Principal Balance	213		279
With a valuation allowance, Average Annual Recorded Investment	208	278
With no related valuation allowance, Recorded Investment	42		21
With no related valuation allowance, Unpaid Principal Balance	42		21
With no related valuation allowance, Average Annual Recorded Investment	42	25
Total impaired loans	240		287
Total, Unpaid Principal Balance	255		300
Total, Related Valuation Allowance	21		29
Total, Average Annual Recorded Investment	250	303
Lease financing | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	1,014		1,064
With a valuation allowance, Unpaid Principal Balance	1,014		1,064
With a valuation allowance, Average Annual Recorded Investment	1,014	197
With no related valuation allowance, Recorded Investment	247		282
With no related valuation allowance, Unpaid Principal Balance	247		282
With no related valuation allowance, Average Annual Recorded Investment	247	485
Total impaired loans	1,261		1,346
Total, Unpaid Principal Balance	1,261		1,346
Total, Related Valuation Allowance	579		$ 345
Total, Average Annual Recorded Investment	$ 1,261	$ 682

LOANS - Aging Status of recorde

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	$ 4,029,150	$ 3,226,678
Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	23,490	21,317
Total Past Due	43,783	39,364
Current	3,932,224	3,164,853
Loans and Leases Receivable, Gross, Total	3,976,007	3,204,217
Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	16,069	12,464
Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	4,069	2,941
Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	155	2,642
Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,811,099	2,196,528
Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,776,293	2,180,186
Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,199,714	1,024,031
Commercial | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	802,752	555,930
Commercial | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	2,167	1,266
Total Past Due	7,075	7,263
Current	788,356	545,994
Loans and Leases Receivable, Gross, Total	795,431	553,257
Commercial | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,883	3,282
Commercial | Commercial real estate | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	1,999	177
Commercial | Commercial real estate | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	26	2,538
Commercial real estate | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,773,510	1,440,011
Commercial real estate | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	13,945	12,482
Total Past Due	22,197	16,228
Current	1,732,630	1,410,848
Loans and Leases Receivable, Gross, Total	1,754,827	1,427,076
Commercial real estate | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	7,927	3,116
Commercial real estate | Commercial real estate | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	325	630
Construction and land development | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	234,837	200,587
Construction and land development | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	765	785
Total Past Due	1,268	2,738
Current	224,767	197,115
Loans and Leases Receivable, Gross, Total	226,035	199,853
Construction and land development | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	503	1,953
Residential real estate | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	570,321	453,552
Residential real estate | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	5,142	5,204
Total Past Due	7,004	6,784
Current	546,943	440,818
Loans and Leases Receivable, Gross, Total	553,947	447,602
Residential real estate | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,422	897
Residential real estate | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	341	632
Residential real estate | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	99	51
Consumer | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	424,229	371,455
Consumer | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	210	234
Total Past Due	3,718	4,613
Current	418,548	366,673
Loans and Leases Receivable, Gross, Total	422,266	371,286
Consumer | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,089	2,824
Consumer | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	1,389	1,502
Consumer | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	30	53
Lease financing | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	223,501	205,143
Lease financing | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	1,261	1,346
Total Past Due	2,521	1,738
Current	220,980	203,405
Loans and Leases Receivable, Gross, Total	223,501	205,143
Lease financing | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,245	$ 392
Lease financing | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	$ 15

LOANS - TDRs by portfolio (Deta

LOANS - TDRs by portfolio (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 207,000,000,000	$ 240,000
Unfunded commitments	0	0
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,854,000	2,801,000
TDR's Nonaccrual	10,065,000	10,197,000
Total	12,919,000	12,998,000
Minimum | Performing
Troubled debt restructuring
TDRs, individually evaluated for impairment, threshold	50,000
Commercial | Commercial real estate | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	557,000	299,000
Total	557,000	299,000
Commercial real estate | Commercial real estate | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	1,496,000	1,515,000
TDR's Nonaccrual	9,817,000	9,915,000
Total	11,313,000	11,430,000
Construction and land development | Commercial real estate | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	56,000	58,000
Total	56,000	58,000
Residential real estate | Other loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	745,000	929,000
TDR's Nonaccrual	248,000	282,000
Total	$ 993,000	$ 1,211,000

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 real estate
Troubled debt restructurings:
Number of loans | loan	1
Pre-modification outstanding balance	$ 362
Post-modification outstanding balance	$ 353

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, 2018	Mar. 31, 2017
Summary of loans
Accretion recorded as loan interest income	$ 36,179	$ 25,928
PCI loans
Changes in the accretable yield for PCI loans
Balance, beginning of period	5,732,000	9,035,000
New loans purchased – Alpine acquisition	842,000
Accretion	(1,161,000)	(2,243,000)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)	660,000	9,000
Reclassification from (to) non-accretable	1,154,000	2,032,000
Balance, end of period	$ 7,227,000	$ 8,833,000

LOANS - Allowance for loan loss

LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in allowance for loan losses :
Beginning balance	$ 16,431	$ 14,862
Provision for loan losses	2,006	1,533
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(1,141)	(1,167)
Loan recoveries	408	577
Net loan (charge-offs) recoveries	(733)	(590)
Ending balance	17,704	15,805
Non-PCI loans
Changes in allowance for loan losses :
Beginning balance	14,902	13,744
Provision for loan losses	1,871	1,405
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(1,130)	(1,167)
Loan recoveries	408	519
Net loan (charge-offs) recoveries	(722)	(648)
Ending balance	16,051	14,501
PCI loans
Changes in allowance for loan losses :
Beginning balance	1,529	1,118
Provision for loan losses	135	128
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(11)
Loan recoveries		58
Net loan (charge-offs) recoveries	(11)	58
Ending balance	$ 1,653	$ 1,304

LOANS - Allowance for loan lo59

LOANS - Allowance for loan losses by loan portfolio and recorded investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Changes in allowance for loan losses :
Beginning balance	$ 16,431	$ 14,862
Provision for loan losses	2,006	1,533
Charge-offs	(1,141)	(1,167)
Recoveries	408	577
Ending balance	17,704	15,805
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			$ 2,353	$ 1,070
Loans collectively evaluated for impairment			441	735
Non-impaired loans collectively evaluated for impairment			13,257	13,097
Loans acquired with deteriorated credit quality			1,653	1,529
Total	16,431	14,862	17,704	16,431
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			22,219	19,908
Impaired loans collectively evaluated for impairment			4,280	6,852
Non-impaired loans collectively evaluated for impairment			3,949,508	3,177,457
Loans acquired with deteriorated credit quality			53,143	22,461
Loans and Leases Receivable, Gross, Total			4,029,150	3,226,678
PCI loans
Changes in allowance for loan losses :
Beginning balance	1,529	1,118
Provision for loan losses	135	128
Charge-offs	(11)
Recoveries		58
Ending balance	1,653	1,304
Allowance for loan losses balance at December 31, 2014 attributable to:
Total	1,529	1,118	1,653	1,529
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			53,143	22,461
Commercial real estate
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			2,811,099	2,196,528
Commercial real estate | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			34,806	16,342
Commercial | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	5,256	5,920
Provision for loan losses	567	70
Charge-offs	(25)	(9)
Recoveries	104	53
Ending balance	5,902	6,034
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			1,426	221
Loans collectively evaluated for impairment			32	305
Non-impaired loans collectively evaluated for impairment			3,892	4,230
Loans acquired with deteriorated credit quality			552	500
Total	5,256	5,920	5,902	5,256
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			2,455	1,285
Impaired loans collectively evaluated for impairment			295	2,818
Non-impaired loans collectively evaluated for impairment			792,681	549,154
Loans acquired with deteriorated credit quality			7,321	2,673
Loans and Leases Receivable, Gross, Total			802,752	555,930
Commercial | Commercial real estate | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			7,321	2,673
Commercial real estate | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	5,044	3,225
Provision for loan losses	507	821
Charge-offs	(160)	(296)
Recoveries	94	180
Ending balance	5,485	3,930
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			101	281
Loans collectively evaluated for impairment			79	48
Non-impaired loans collectively evaluated for impairment			4,913	4,379
Loans acquired with deteriorated credit quality			392	336
Total	5,044	3,225	5,485	5,044
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			14,717	13,554
Impaired loans collectively evaluated for impairment			724	443
Non-impaired loans collectively evaluated for impairment			1,739,386	1,413,079
Loans acquired with deteriorated credit quality			18,683	12,935
Loans and Leases Receivable, Gross, Total			1,773,510	1,440,011
Commercial real estate | Commercial real estate | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			18,683	12,935
Construction and land development | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	518	345
Provision for loan losses	(215)	92
Recoveries	25	23
Ending balance	328	460
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			5	5
Loans collectively evaluated for impairment			5	5
Non-impaired loans collectively evaluated for impairment			308	504
Loans acquired with deteriorated credit quality			10	4
Total	518	345	328	518
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			776	797
Impaired loans collectively evaluated for impairment			45	46
Non-impaired loans collectively evaluated for impairment			225,214	199,010
Loans acquired with deteriorated credit quality			8,802	734
Loans and Leases Receivable, Gross, Total			234,837	200,587
Construction and land development | Commercial real estate | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			8,802	734
Residential real estate | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	2,750	2,929
Provision for loan losses	(261)	30
Charge-offs	(36)	(172)
Recoveries	51	55
Ending balance	2,504	2,842
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			289	302
Loans collectively evaluated for impairment			257	264
Non-impaired loans collectively evaluated for impairment			1,408	1,644
Loans acquired with deteriorated credit quality			550	540
Total	2,750	2,929	2,504	2,750
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			3,446	3,700
Impaired loans collectively evaluated for impairment			2,540	2,484
Non-impaired loans collectively evaluated for impairment			547,961	441,418
Loans acquired with deteriorated credit quality			16,374	5,950
Loans and Leases Receivable, Gross, Total			570,321	453,552
Residential real estate | Other loan portfolio | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			16,374	5,950
Consumer | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	1,344	930
Provision for loan losses	304	482
Charge-offs	(434)	(176)
Recoveries	95	48
Ending balance	1,309	1,284
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans collectively evaluated for impairment			21	29
Non-impaired loans collectively evaluated for impairment			1,139	1,166
Loans acquired with deteriorated credit quality			149	149
Total	1,344	930	1,309	1,344
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment				4
Impaired loans collectively evaluated for impairment			240	283
Non-impaired loans collectively evaluated for impairment			422,026	370,999
Loans acquired with deteriorated credit quality			1,963	169
Loans and Leases Receivable, Gross, Total			424,229	371,455
Consumer | Other loan portfolio | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total			1,963	169
Lease financing | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	1,519	1,513
Provision for loan losses	1,104	38
Charge-offs	(486)	(514)
Recoveries	39	218
Ending balance	2,176	1,255
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment			532	261
Loans collectively evaluated for impairment			47	84
Non-impaired loans collectively evaluated for impairment			1,597	1,174
Total	$ 1,519	$ 1,513	2,176	1,519
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment			825	568
Impaired loans collectively evaluated for impairment			436	778
Non-impaired loans collectively evaluated for impairment			222,240	203,797
Loans and Leases Receivable, Gross, Total			$ 223,501	$ 205,143

PREMISES AND EQUIPMENT, NET (De

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 126,159		$ 105,789
Accumulated depreciation	(30,827)		(29,627)
Premises and equipment, net	95,332		76,162
Depreciation	1,454	$ 1,116
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	19,613		16,109
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	79,227		63,837
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 27,319		$ 25,843

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
MORTGAGE SERVICING RIGHTS
Total loans serviced for others	$ 5,440,761	$ 5,966,580
Commercial FHA Mortgage Loans
MORTGAGE SERVICING RIGHTS
Total loans serviced for others	4,002,907	3,976,795
Residential mortgage loans
MORTGAGE SERVICING RIGHTS
Total loans serviced for others	$ 1,437,854	$ 1,989,785

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in MSR (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Mortgage servicing rights:
Balance, beginning of period	$ 60,383	$ 71,710	$ 71,710
Balance, end of period	59,814	72,335	60,383
Valuation allowances:
Balance, beginning of period	4,031	3,702	3,702
Additions	133	188
Reductions		(112)
Balance, end of period	3,387	3,778	4,031
Mortgage servicing rights, net	56,427	68,557
Fair Value	57,051	68,557	56,352	$ 68,008
Commercial FHA Mortgage Loans
Mortgage servicing rights:
Servicing rights capitalized	1,001	1,481
Amortization	(676)	(639)
Residential mortgage loans
Mortgage servicing rights:
Servicing rights capitalized	70	518
Amortization	(187)	$ (735)
Other-than-temporary impairment	(777)
Valuation allowances:
Other than temporary impairment	$ (777)
Servicing asset transferred to mortgage servicing rights held for sale after net of valuation allowance			$ 14,200

MORTGAGE SERVICING RIGHTS - Sum

MORTGAGE SERVICING RIGHTS - Summary of key assumptions (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Commercial FHA Mortgage Loans
Assumptions Used to Estimate Fair Value
Servicing Fee	0.13%	0.12%
Interest Rate	3.66%	3.67%
Remaining Years to Maturity	30 years 3 months 18 days	30 years 3 months 18 days
Prepayment Rate	8.26%	8.27%
Servicing Cost	1000.00%	1000.00%
Discount Rate	11.02%	11.02%
Residential mortgage loans
Assumptions Used to Estimate Fair Value
Servicing Fee	0.27%	0.26%
Interest Rate	3.93%	3.93%
Remaining Years to Maturity	22 years 1 month 6 days	23 years 2 months 12 days
Prepayment Rate	8.66%	11.52%
Servicing Cost	76.00%	71.00%
Discount Rate	11.03%	10.09%

GOODWILL AND INTANGIBLE ASSET64

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Feb. 28, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 28, 2017
Goodwill [Line Items]
Goodwill		$ 155,674	$ 98,624
CedarPoint
Goodwill [Line Items]
Goodwill				$ 2,400
Alpine Bank
Goodwill [Line Items]
Goodwill		$ 56,965
Amount of increase in goodwill	$ 57,000

GOODWILL AND INTANGIBLE ASSET65

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	Feb. 28, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Finite-lived intangible assets
Gross Carrying Amount		$ 70,299		$ 39,083
Accumulated Amortization		(23,826)		(22,151)
Total		46,473		16,932
Amortization of intangible assets		1,675	$ 525
Core deposits
Finite-lived intangible assets
Gross Carrying Amount		55,728		31,612
Accumulated Amortization		(20,445)		(18,943)
Total		35,283		12,669
Customer relationship
Finite-lived intangible assets
Gross Carrying Amount		14,571		7,471
Accumulated Amortization		(3,381)		(3,208)
Total		11,190		$ 4,263
Centrue
Finite-lived intangible assets
Intangible assets	$ 11,070
Alpine Bank
Finite-lived intangible assets
Intangible assets		$ 31,216
Alpine Bank | Core deposits
Finite-lived intangible assets
Intangible assets	$ 24,100
Amortization period	6 years
Alpine Bank | Customer relationship
Finite-lived intangible assets
Intangible assets	$ 7,100
Amortization period	13 years

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
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	$ 53,000	$ 1,500,000
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	722,883,000		$ 717,976,000
Fair value of asset derivatives	6,385,000		6,362,000
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	372,726,000		345,152,000
Fair value of asset derivatives	6,380,000		6,331,000
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	350,157,000		372,824,000
Fair value of asset derivatives	5,000		31,000
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	6,780,000
Fair value of liability derivatives	19,000
Interest rate swap contracts
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount of interest rate swaps	9,900,000		10,000,000
Interest rate swap contracts | Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value of asset derivatives	219,000
Notional amount of interest rate swaps			17,000
Interest rate swap contracts | Other liabilities.
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value of liability derivatives	$ 219,000
Notional amount of interest rate swaps			$ 17,000

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Classification of deposits
Noninterest-bearing demand	$ 1,037,710	$ 724,443
Interest-bearing:
Checking	993,253	785,934
Money market	840,415	646,426
Savings	466,887	281,212
Time	895,550	693,074
Total deposits	$ 4,233,815	$ 3,131,089

SHORT-TERM BORROWINGS (Details)

SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Outstanding at period-end	$ 130,693	$ 156,126
Average amount outstanding	148,703	163,461
Maximum amount outstanding at any month end	$ 173,387	$ 196,278
Weighted average interest rate:
During period	0.34%	0.23%
End of period	0.31%	0.28%
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 129,700	$ 157,200
Line of credit	0	0
Federal funds lines of credit	97,500
Commercial real estate
Short-Term Borrowings
Loans and Leases Receivable, Gross, Carrying Amount, Commercial	74,500	36,500
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 74,500	$ 32,500

FHLB ADVANCES AND OTHER BORRO69

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 587,493	$ 496,436
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued	2,636	2,636
Preferred stock, par value	$ 2	$ 2
Line of credit	$ 97,500
Advances	0	$ 0
FHLB advances, collateral for mortgage and home equity line of credit loans	$ 2,010,000	1,860,000
Revolving Credit Facility [Member] | Maximum
Federal Home Loan Bank Advances, Interest Rate Information
Line of credit		$ 10,000
LIBOR | Revolving Credit Facility [Member]
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate		2.00%
Variable rate basis		one-month LIBOR
Series G Preferred Stock
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued	181
Preferred stock, par value	$ 1,000
Midland States Bancorp, Inc | Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 181	$ 181
Obligations under capital leases implicit interest rate of 1.70% maturing through July 2018 | Midland States Bank
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	2	5
Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Face Amount		$ 40,000
Principal payment on term loan	1,400
Term loan | LIBOR
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate		2.25%
Variable rate basis		one-month LIBOR
Term loan | Midland States Bancorp, Inc
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 37,117	$ 37,113
Term loan | Midland States Bancorp, Inc | LIBOR
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate	2.25%
Interest rate during the period	3.94%	3.63%
Fixed Rate Term Loan | Midland States Bank
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 532,126	$ 450,137
Fixed Rate Term Loan | Alpine Bank
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	18,067
Fixed rate, fixed term maturing through June 2021 | Midland States Bank
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 177,000	$ 145,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	1.54%	1.35%
Putable fixed rate loan maturing through December 2024 | Midland States Bank
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 305,000	$ 305,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	1.29%	1.29%
Callable fixed rate loan maturing through May 2019 | Midland States Bank
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 50,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	2.56%
Variable rate, fixed term maturing through March 2018 | Midland States Bank
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 9,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		1.20%
Fixed Rate, fixed term maturing through February 2023 | Alpine Bank
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	2.33%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income	$ 1,806	$ 8,490
Preferred stock dividends	(83)
Amortization of preferred stock premium	47
Net income available to common shareholders	1,770	8,490
Common shareholder dividends	(4,208)	(3,109)
Unvested restricted stock award dividends	(31)	(20)
Undistributed earnings to unvested restricted stock awards		(32)
Undistributed earnings to common shareholders	(2,469)	5,329
Basic
Common shareholder dividends	(4,208)	(3,109)
Undistributed earnings to common shareholders	(2,469)	5,329
Net income available to common shareholders	1,739	8,438
Diluted
Common shareholder dividends	(4,208)	(3,109)
Undistributed earnings to common shareholders	(2,469)	5,329
Net income available to common shareholders	1,739	8,438
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		1
Total common shareholders earnings, diluted	$ 1,739	$ 8,439
Weighted average common shares outstanding, basic (In shares)	20,901,738	15,736,412
Weighted average common shares outstanding, diluted (In shares)	21,351,511	16,351,637
Basic earnings per common share (In dollars per share)	$ 0.08	$ 0.54
Diluted earnings per common share (In dollars per share)	$ 0.08	$ 0.52
Options and warrants
Add back:
Options and warrants	449,773	615,225

FAIR VALUE OF FINANCIAL INSTR71

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Assets
Investment securities available for sale	$ 726,960		$ 447,695
Equity securities	11,200		2,800
Loans held for sale	25,267		50,087
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	3,962		10,176
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights	133	$ 76
Impaired loans	875	350
Other real estate owned		171
Total loss on assets measured on a nonrecurring basis	1,008	$ 597
U.S. Treasury securities
Assets
Investment securities available for sale	39,646		27,718
Government sponsored entity debt securities
Assets
Investment securities available for sale	87,065		25,211
State and municipal securities
Assets
Investment securities available for sale	181,724		102,567
Corporate Securities
Assets
Investment securities available for sale	59,780		59,812
Level 1
Assets
Investment securities available for sale	39,646		27,718
Level 2
Assets
Investment securities available for sale	682,527		418,028
Equity securities	11,212
Loans held for sale	25,267		50,089
Level 2 | Interest rate lock commitments
Assets
Derivative Assets	218		6,331
Level 2 | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets	5		31
Level 2 | Interest rate swap contracts
Assets
Derivative Assets	219		17
Liabilities
Derivative liability	218		17
Level 3
Assets
Investment securities available for sale	4,787		4,779
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	56,400		56,400
Recurring member
Assets
Loans held for sale	25,267		50,089
Total Assets	770,043		506,993
Liabilities
Total Liabilities	238
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	56,427		56,352
Mortgage servicing rights held for sale	3,962		10,176
Impaired loans	2,888		9,385
Other real estate owned			801
Assets held for sale			3,358
Recurring member | U.S. Treasury securities
Assets
Investment securities available for sale	39,646		27,718
Recurring member | Government sponsored entity debt securities
Assets
Investment securities available for sale	87,065		25,211
Recurring member | Agency mortgage-backed securities
Assets
Investment securities available for sale	358,745		232,387
Recurring member | State and municipal securities
Assets
Investment securities available for sale	181,724		102,567
Recurring member | Corporate Securities
Assets
Investment securities available for sale	59,780		59,812
Recurring member | Equity securities
Assets
Equity securities	11,212		2,830
Recurring member | Interest rate lock commitments
Assets
Derivative Assets	6,380		6,331
Recurring member | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets	5		31
Liabilities
Derivative liability	19
Recurring member | Interest rate swap contracts
Assets
Derivative Assets	219		17
Liabilities
Derivative liability	219		17
Recurring member | Level 1
Assets
Total Assets	39,646		27,718
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	3,962		10,176
Recurring member | Level 1 | U.S. Treasury securities
Assets
Investment securities available for sale	39,646		27,718
Recurring member | Level 2
Assets
Loans held for sale	25,267		50,089
Total Assets	725,610		474,496
Liabilities
Total Liabilities	238
Assets measured at fair value on a non-recurring basis:
Impaired loans	1,209		7,631
Other real estate owned			801
Assets held for sale			3,358
Recurring member | Level 2 | Government sponsored entity debt securities
Assets
Investment securities available for sale	87,065		25,211
Recurring member | Level 2 | Agency mortgage-backed securities
Assets
Investment securities available for sale	358,745		232,387
Recurring member | Level 2 | State and municipal securities
Assets
Investment securities available for sale	181,724		102,567
Recurring member | Level 2 | Corporate Securities
Assets
Investment securities available for sale	54,993		55,033
Recurring member | Level 2 | Equity securities
Assets
Equity securities	11,212		2,830
Recurring member | Level 2 | Interest rate lock commitments
Assets
Derivative Assets	6,380		6,331
Recurring member | Level 2 | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets	5		31
Liabilities
Derivative liability	19
Recurring member | Level 2 | Interest rate swap contracts
Assets
Derivative Assets	219		17
Liabilities
Derivative liability	219		17
Recurring member | Level 3
Assets
Total Assets	4,787		4,779
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	56,427		56,352
Impaired loans	1,679		1,754
Recurring member | Level 3 | Corporate Securities
Assets
Investment securities available for sale	$ 4,787		$ 4,779

FAIR VALUE OF FINANCIAL INSTR72

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Corporate Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 4,779	$ 7,480
Total realized in earnings	56	(95)
Total unrealized in other comprehensive income		245
Net settlements (principal and interest)	(48)	(86)
Ending balance	$ 4,787	7,734
Non-agency mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		1
Net settlements (principal and interest)		$ (1)

FAIR VALUE OF FINANCIAL INSTR73

FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Mortgage servicing rights	$ 56,400	$ 56,400
Discounted cash flow | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Mortgage servicing rights	56,427
Non recurring member | Discounted cash flow | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	$ 1,679
Minimum | Discounted cash flow | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	6.00%
Discount rate	8.00%
Minimum | Discounted cash flow | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	4.84%
Maximum | Discounted cash flow | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	42.90%
Discount rate	14.50%
Maximum | Discounted cash flow | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	8.10%
Weighted average | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	8.36%
Discount rate	11.02%
Weighted average | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	6.54%

FAIR VALUE OF FINANCIAL INSTR74

FAIR VALUE OF FINANCIAL INSTRUMENTS- Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 25,267		$ 50,087
Difference	491		717
Contractual principal	24,776		49,370
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(348)	$ (226)
Residential loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	17,828		12,241
Difference	383		374
Contractual principal	17,445		11,867
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	61	200
Commercial real estate
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	7,439		37,846
Difference	108		343
Contractual principal	7,331		$ 37,503
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ (409)	$ (426)

FAIR VALUE OF FINANCIAL INSTR75

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Investment securities available for sale	$ 726,960	$ 447,695
Equity securities	11,200	2,800
Loans held for sale	25,267	50,087
Accrued interest receivable	15,048	11,715
Liabilities
Trust preferred debentures	47,443	47,330
Accrued interest payable	4,768	2,531
Level 1
Assets
Cash and due from banks	330,233	214,519
Federal funds sold	950	683
Investment securities available for sale	39,646	27,718
Level 2
Assets
Investment securities available for sale	682,527	418,028
Equity securities	11,212
Nonmarketable equity securities	38,868	34,796
Loans held for sale	25,267	50,089
Accrued interest receivable	15,048	11,715
Liabilities
Deposits	4,223,048	3,127,626
Short-term borrowings	130,693	156,126
FHLB and other borrowings	584,597	494,634
Subordinated debt	91,872	90,860
Trust preferred debentures	51,668	46,069
Accrued interest payable	4,768	2,531
Level 3
Assets
Investment securities available for sale	4,787	4,779
Loans, net	3,961,464	3,200,016
Carrying value
Assets
Cash and due from banks	330,233	214,519
Federal funds sold	950	683
Investment securities available for sale	726,960	450,525
Equity securities	11,212
Nonmarketable equity securities	38,868	34,796
Loans, net	4,011,446	3,210,247
Loans held for sale	25,267	50,089
Accrued interest receivable	15,048	11,715
Liabilities
Deposits	4,233,815	3,131,089
Short-term borrowings	130,693	156,126
FHLB and other borrowings	587,493	496,436
Subordinated debt	94,013	93,972
Trust preferred debentures	47,443	45,379
Accrued interest payable	4,768	2,531
Fair value
Assets
Cash and due from banks	330,233	214,519
Federal funds sold	950	683
Investment securities available for sale	726,960	450,525
Equity securities	11,212
Nonmarketable equity securities	38,868	34,796
Loans, net	3,961,464	3,200,016
Loans held for sale	25,267	50,089
Accrued interest receivable	15,048	11,715
Liabilities
Deposits	4,223,048	3,127,626
Short-term borrowings	130,693	156,126
FHLB and other borrowings	584,597	494,634
Subordinated debt	91,872	90,860
Trust preferred debentures	51,668	46,069
Accrued interest payable	4,768	2,531
Corporate Securities
Assets
Investment securities available for sale	59,780	59,812
Interest rate lock commitments | Level 2
Assets
Derivative Assets	218	6,331
Interest rate lock commitments | Carrying value
Assets
Derivative Assets	218	6,331
Interest rate lock commitments | Fair value
Assets
Derivative Assets	218	6,331
Forward commitments to sell mortgage-backed securities | Level 2
Assets
Derivative Assets	5	31
Forward commitments to sell mortgage-backed securities | Carrying value
Assets
Derivative Assets	5	31
Forward commitments to sell mortgage-backed securities | Fair value
Assets
Derivative Assets		31
Interest rate swap contracts | Level 2
Assets
Derivative Assets	219	17
Liabilities
Derivative Liability	218	17
Interest rate swap contracts | Carrying value
Assets
Derivative Assets	219	17
Liabilities
Derivative Liability	218	17
Interest rate swap contracts | Fair value
Assets
Derivative Assets		17
Liabilities
Derivative Liability	$ 218	$ 17

COMMITMENTS, CONTINGENCIES AN76

COMMITMENTS, CONTINGENCIES AND CREDIT RISK - Maturities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Anticipated material loss	$ 0
Losses as a result of make whole requests and loan repurchases	20,000	$ 0
Liability for unresolved repurchase demands	714,000		$ 371,000
Commitments to extend credit
Loan commitments	793,012,000		568,356,000
Financial guarantees - standby letters of credit
Loan commitments	$ 142,265,000		$ 142,189,000

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 38,185	$ 27,461
Provision for loan losses	2,006	1,533
Noninterest income	16,605	16,330
Noninterest expense	49,602	30,785
Income (loss) before income taxes (benefit)	3,182	11,473
Income tax benefit	1,376	2,983
Net income	1,806	8,490
Total assets	5,723,372	3,373,577	$ 4,412,701
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	40,803	28,380
Provision for loan losses	2,006	1,533
Noninterest income	8,091	8,938
Noninterest expense	44,092	24,914
Income (loss) before income taxes (benefit)	2,796	10,871
Income tax benefit	1,379	2,342
Net income	1,417	8,529
Total assets	5,738,094	3,366,098
Commercial FHA Origination and Servicing
Segment Reporting Information [Line Items]
Net interest income (expense)	36	276
Noninterest income	3,521	6,876
Noninterest expense	3,538	4,083
Income (loss) before income taxes (benefit)	19	3,069
Income tax benefit	407	1,197
Net income	(388)	1,872
Total assets	91,580	105,203
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(2,654)	(1,195)
Noninterest income	4,993	516
Noninterest expense	1,972	1,788
Income (loss) before income taxes (benefit)	367	(2,467)
Income tax benefit	(410)	(556)
Net income	777	(1,911)
Total assets	$ (106,302)	$ (97,724)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended
	Mar. 31, 2018USD ($)item	Mar. 31, 2017USD ($)
Related Party Transaction [Line Items]
Rent paid | $	$ 215,000	$ 221,000
Former member of board of directors
Related Party Transaction [Line Items]
Number of the bank's full-service branch facilities | item	3

REVENUE FROM CONTRACT WITH CU79

REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	$ 7,243
Total noninterest income	$ 16,605	$ 16,330
Contract Acquisition Costs
Practical expedient, amortization period	1 year
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606		10,773
Total noninterest income		16,330
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	$ 3,119
Trust management/administration fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		2,342
Investment advisory fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	465
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	367
Investment brokerage fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		323
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	231
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		207
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	1,450
Nonsufficient fund fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		582
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	517
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		310
Interchange revenues
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	2,090
Interchange revenues | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		977
Merchant services revenue
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	293
Merchant services revenue | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		395
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	$ 830
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		$ 421