Midland States Bancorp (MSBI) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 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	Sep. 30, 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		23,704,643
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 240,489	$ 214,519
Federal funds sold	1,944	683
Cash and cash equivalents	242,433	215,202
Investment securities available for sale, at fair value	682,396	450,525
Equity securities, at fair value	3,357
Loans	4,156,282	3,226,678
Allowance for loan losses	(19,631)	(16,431)
Total loans, net	4,136,651	3,210,247
Loans held for sale, at fair value	35,246	50,089
Premises and equipment, net	95,062	76,162
Other real estate owned	3,684	5,708
Nonmarketable equity securities	44,931	34,796
Accrued interest receivable	17,500	11,715
Mortgage servicing rights, at lower of cost or fair value	51,626	56,352
Mortgage servicing rights held for sale	4,419	10,176
Intangible assets	39,228	16,932
Goodwill	164,044	98,624
Cash surrender value of life insurance policies	138,600	113,366
Accrued income taxes receivable	5,080	8,358
Deferred tax assets, net	10,165	12,024
Other assets	50,190	42,425
Total assets	5,724,612	4,412,701
Deposits:
Noninterest-bearing	991,311	724,443
Interest-bearing	3,151,895	2,406,646
Total deposits	4,143,206	3,131,089
Short-term borrowings	145,450	156,126
FHLB advances and other borrowings	652,253	496,436
Subordinated debt	94,093	93,972
Trust preferred debentures	47,676	47,330
Accrued interest payable	5,564	2,531
Other liabilities	42,224	35,672
Total liabilities	5,130,466	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 September 30, 2018 and December 31, 2017	2,829	2,970
Common stock, $0.01 par value; 40,000,000 shares authorized; 23,694,637 and 19,122,049 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	237	191
Capital surplus	473,057	330,148
Retained earnings	122,745	114,478
Accumulated other comprehensive (loss) income	(4,722)	1,758
Total shareholders' equity	594,146	449,545
Total liabilities and shareholders' equity	$ 5,724,612	$ 4,412,701

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 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	23,694,637	19,122,049
Common stock, shares outstanding	23,694,637	19,122,049

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Loans:
Taxable	$ 49,216	$ 38,689	$ 140,946	$ 97,016
Tax exempt	1,006	313	2,275	953
Loans held for sale	512	438	1,235	1,926
Investment securities:
Taxable	3,753	1,920	10,152	4,723
Tax exempt	1,195	948	3,446	2,802
Nonmarketable equity securities	540	331	1,421	788
Federal funds sold and cash investments	765	607	2,300	1,405
Total interest income	56,987	43,246	161,775	109,613
Interest expense:
Deposits	6,151	3,377	15,273	8,570
Short-term borrowings	213	100	453	262
FHLB advances and other borrowings	3,211	1,494	7,664	2,901
Subordinated debt	1,514	873	4,542	2,619
Trust preferred debentures	817	637	2,291	1,635
Total interest expense	11,906	6,481	30,223	15,987
Net interest income	45,081	36,765	131,552	93,626
Provision for loan losses	2,103	1,489	5,963	3,480
Net interest income after provision for loan losses	42,978	35,276	125,589	90,146
Noninterest income:
Commercial FHA revenue	3,130	3,777	6,786	14,625
Residential mortgage banking revenue	1,154	2,317	4,688	7,563
Wealth management revenue	5,467	3,475	14,862	9,754
Service charges on deposit accounts	2,804	2,133	7,464	4,147
Interchange revenue	2,759	1,724	7,733	3,816
Gain (loss) on sales of investment securities, net		98	(5)	219
Gain on sales of other real estate owned	86	22	559	54
Other income	2,872	1,857	8,534	5,186
Total noninterest income	18,272	15,403	50,621	45,364
Noninterest expense:
Salaries and employee benefits	22,528	22,411	74,390	61,368
Occupancy and equipment	5,040	4,144	14,000	10,800
Data processing	10,817	5,786	20,402	11,531
FDIC insurance	549	565	1,636	1,403
Professional	2,632	4,151	9,559	10,285
Marketing	1,137	1,070	3,754	2,517
Communications	1,289	723	3,606	1,655
Loan expense	262	629	1,338	1,531
Other real estate owned	42	146	298	725
Amortization of intangible assets	1,853	1,187	5,104	2,291
Loss on mortgage servicing rights held for sale	270	3,617	458	3,617
Other expense	3,898	3,934	11,723	9,082
Total noninterest expense	50,317	48,363	146,268	116,805
Income before income taxes	10,933	2,316	29,942	18,705
Income taxes	2,436	280	6,857	4,640
Net income	8,497	2,036	23,085	14,065
Preferred stock dividends and premium amortization	35	27	107	46
Net income available to common shareholders	$ 8,462	$ 2,009	$ 22,978	$ 14,019
Per common share data:
Basic earnings per common share	$ 0.35	$ 0.10	$ 1	$ 0.81
Diluted earnings per common share	$ 0.35	$ 0.10	$ 0.98	$ 0.78
Weighted average common shares outstanding	23,855,805	19,265,409	22,868,256	17,274,746
Weighted average diluted common shares outstanding	24,325,743	19,704,217	23,327,140	17,797,235

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 8,497	$ 2,036	$ 23,085	$ 14,065
Investment securities available for sale:
Unrealized (losses) gains that occurred during the period	(3,330)	305	(8,919)	3,245
Reclassification adjustment for realized net (gains) losses on sales of investment securities included in net income		(98)	5	(219)
Income tax effect	915	(94)	2,434	(1,188)
Change in investment securities available for sale, net of tax	(2,415)	113	(6,480)	1,838
Investment securities held to maturity:
Amortization of unrealized gain on investment securities transferred from available-for-sale		(25)		(83)
Income tax effect		9		31
Change in investment securities held to maturity, net of tax		(16)		(52)
Other comprehensive (loss) income, net of tax	(2,415)	97	(6,480)	1,786
Total comprehensive income	$ 6,082	$ 2,133	$ 16,605	$ 15,851

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	CentruePreferred stock	CentrueCommon stock	CentrueCapital surplus	Centrue	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														14,065		14,065
Compensation expense for stock option grants													413			413
Amortization of restricted stock awards													599			599
Preferred dividends declared														(102)		(102)
Preferred stock, premium amortization											$ (56)			56		56
Common dividends declared														(10,159)		(10,159)
Acquisition				$ 1	$ 3,350	$ 3,351	$ 3,071	$ 32	$ 112,480	$ 115,583
Issuance of common stock under employee benefit plans												3	3,380			3,383
Other comprehensive income (loss)															1,786	1,786
Ending Balance at Sep. 30, 2017											3,015	191	329,934	116,373	1,176	450,689
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														23,085		23,085
Compensation expense for stock option grants													263			263
Amortization of restricted stock awards													841			841
Preferred dividends declared														(248)		(248)
Preferred stock, premium amortization											(141)			141		141
Common dividends declared														(14,711)		(14,711)
Acquisition	$ 45	$ 139,876	$ 139,921
Issuance of common stock under employee benefit plans												1	1,929			1,930
Other comprehensive income (loss)															(6,480)	(6,480)
Ending Balance at Sep. 30, 2018											$ 2,829	$ 237	$ 473,057	$ 122,745	$ (4,722)	$ 594,146

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Common dividend declared, per share	$ 0.66	$ 0.60

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Cash flows from operating activities:
Net income			$ 23,085	$ 14,065
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	$ 2,103	$ 1,489	5,963	3,480
Depreciation on premises and equipment	1,500	1,300	4,552	3,666
Amortization of intangible assets	1,853	1,187	5,104	2,291
Compensation expense for stock option grants			263	413
Amortization of restricted stock awards			841	599
Increase in cash surrender value of life insurance			(2,656)	(2,016)
Investment securities amortization, net			2,846	1,358
Loss (gain) on sales of investment securities, net		(98)	5	(219)
Gain on sales of other real estate owned	(86)	(22)	(559)	(54)
Impairment of other real estate owned			126	171
Origination of loans held for sale			(399,109)	(630,601)
Proceeds from sales of loans held for sale			424,874	679,217
Gain on loans sold and held for sale			(8,649)	(20,844)
Loss on disposals of premises and equipment			395	102
Amortization of mortgage servicing rights			2,303	4,254
Impairment of mortgage servicing rights	298	104	931	1,830
Loss on mortgage servicing rights held for sale	270	3,617	458	3,617
Net change in operating assets and liabilities:
Accrued interest receivable			(1,371)	(1,095)
Accrued interest payable			2,494	1,035
Accrued income taxes receivable			3,278	3,653
Other assets			(1,757)	159
Other liabilities			2,517	(2,341)
Net cash provided by operating activities			65,934	62,740
Investment securities available for sale:
Purchases			(68,556)	(221,617)
Sales	0	2,700	16,805	11,250
Maturities and payments			98,838	192,791
Investment securities held to maturity:
Purchases				(2,929)
Maturities				10,480
Equity securities:
Purchases			(44)
Sales	0		7,789
Net increase in loans			(147,450)	(160,266)
Proceeds from sale of premises and equipment			22
Purchases of premises and equipment			(5,807)	(5,363)
Proceeds from sales of mortgage servicing rights held for sale			12,994
Purchases of nonmarketable equity securities			(20,637)	(16,575)
Sales of nonmarketable equity securities			12,540	9,837
Proceeds from sales of other real estate owned			3,676	4,525
Net cash acquired (paid) in acquisition			36,153	(18,519)
Net cash used in investing activities			(53,677)	(196,386)
Cash flows from financing activities:
Net decrease in deposits			(99,013)	(29,766)
Net (decrease) increase in short-term borrowings			(10,676)	7,452
Proceeds from FHLB borrowings			902,080	347,357
Payments made on FHLB borrowings			(761,531)	(229,857)
Proceeds from other borrowings				39,964
Payments made on other borrowings			(2,857)	(1,770)
Cash dividends paid on preferred stock			(248)	(102)
Cash dividends paid on common stock			(14,711)	(10,159)
Proceeds from issuance of common stock under employee benefit plans			1,930	3,383
Net cash provided by financing activities			14,974	126,502
Net increase (decrease) in cash and cash equivalents			27,231	(7,144)
Cash and cash equivalents:
Beginning of period			215,202	190,716	$ 190,716
End of period	$ 242,433	$ 183,572	242,433	183,572	$ 215,202
Cash payments for:
Interest paid on deposits and borrowed funds			27,190	14,677
Income tax paid			575	637
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to other real estate owned			904	2,659
Transfer of premises and equipment to assets held for sale				2,858
Transfer of mortgage servicing rights at lower of cost or market to mortgage servicing rights held for sale			$ 3,649	$ 10,618

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	9 Months Ended
	Sep. 30, 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 financing business, which operates on a nationwide basis, was brought directly into the Bank under the name Midland Equipment Finance beginning in January 2018. 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. After the acquisition, Alpine Bank operated as a subsidiary of the Company until its merger into the Bank in July 2018. 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	9 Months Ended
	Sep. 30, 2018
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 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. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any other period. 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 prior practice. 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 17 – 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. See “Note 14 – Fair Value of Financial Instruments” regarding the valuation of the loan portfolio. 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. Under the new guidance, lessees will be required to recognize the following for all leases, with the exception of short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. This update is effective for us on January 1, 2019, with early adoption permitted. 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. In July 2018, the FASB issued supplementary ASU No. 2018-11, which provides for an additional transition method permitting application of the new leases standard at the beginning of the year of adoption. The Company developed and is currently executing on a project plan for implementing the provisions of the new lease standard. While we have not yet determined the overall impact of the new guidance on the Company’s consolidated financial statements, we expect to report increased assets and liabilities on our consolidated statement of financial condition as a result of recognizing right-of-use assets and lease liabilities related to non-cancelable operating lease agreements for office space, which currently are not on our consolidated statement of financial condition. 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 has finalized the contract with a vendor to assist in generating loan level cash flows and disclosures. The vendor has started the process of uploading loan level historical data into their system. 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 balance sheets. 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. 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 maximum federal income tax rate from 35% to 21% effective starting in 2018. 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 was not material.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 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 operated 19 locations in northern Illinois. 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 . The 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 $22.0 million of transaction and integration costs associated with the acquisition have been expensed during 2017 and the first nine months of 2018, and remaining integration costs will be expensed in future periods as incurred. Management’s preliminary valuation of the tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, and the resulting allocation of the consideration paid for the allocation is reflected in the table below. 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. 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. The 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 $17.8 million of transaction and integration costs associated with the acquisition have been expensed during 2017 and the first nine months of 2018. As of June 30, 2018, the Company finalized its valuation of all assets acquired and liabilities assumed in its acquisition of Centrue, resulting in no material change to acquisition accounting adjustments. A summary of the fair value of the assets acquired, liabilities assumed and resulting goodwill are included in the table below. (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 786,186 679,582 Loans held for sale 3,416 531 Premises and equipment 18,126 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 27,400 11,070 Cash surrender value of life insurance policies 22,578 36,349 Deferred tax assets, net — 34,339 Other assets 4,770 2,256 Total assets acquired 1,244,182 990,208 Liabilities assumed: Deposits 1,111,130 739,867 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 1,994 — Other liabilities 4,500 3,600 Total liabilities assumed 1,136,290 861,073 Net assets acquired 107,892 129,135 Goodwill 65,335 47,444 Total consideration paid $ 173,227 $ 176,579 Intangible assets: Core deposit intangible $ 21,100 $ 11,070 Customer relationship intangible 6,300 — Total intangible assets $ 27,400 $ 11,070 Estimated useful lives: Core deposit intangible 13 years 8 years Customer relationship intangible 13 years N/A 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 $ 34,993 $ 50,342 $ 9,254 Acquired receivables not subject to ASC 310-30 751,193 774,836 4,244 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 unaudited pro-forma financial information below for the three and nine months ended September 30, 2018 and 2017 gives effect to the Alpine acquisition as if it had occurred on January 1, 2017, which combines 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 unaudited pro-forma financial information also gives effect to the Centrue acquisition that closed on June 9, 2017 as if that transaction became effective January 1, 2017. The unaudited pro-forma financial information has been prepared for comparative purposes only and is not necessarily indicative of the results of operations had the acquisition actually occurred on January 1, 2017. No assumptions have been applied regarding revenue enhancements, expense efficiencies or asset dispositions. Only the acquisition related expenses that have been incurred as of September 30, 2018 are included in net income in the table below. Acquisition related expenses associated with Alpine that were recognized and are included in the unaudited pro-forma net income for the three and nine months ended September 30, 2018 totaled $9.1 million and $21.1 million, respectively, on a pre-tax basis. Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2018 2017 2018 2017 Revenue (1) $ 63,353 $ 69,594 $ 194,910 $ 210,873 Net income 8,497 5,196 25,656 25,278 Diluted earnings per common share 0.21 1.05 1.04 (1) Net interest income plus noninterest income

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2018
INVESTMENT SECURITIES
INVESTMENT SECURITIES	Note 4 – Investment Securities Investment securities as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities U.S. Treasury securities $ 25,028 $ — $ 495 $ 24,533 Government sponsored entity debt securities 76,841 18 1,486 75,373 Agency mortgage-backed securities 349,501 573 6,377 343,697 State and municipal securities 169,887 2,634 1,509 171,012 Corporate securities 67,652 910 781 67,781 Total available for sale securities $ 688,909 $ 4,135 $ 10,648 $ 682,396 Equity securities (1) $ 3,357 December 31, 2017 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities 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 Equity securities (1) 2,715 140 25 2,830 Total available for sale securities $ 448,124 $ 5,782 $ 3,381 $ 450,525 (1) As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within available for sale securities and are now presented within equity securities in the consolidated balance sheets for the current period. For further discussion of this guidance, see Note 2 to the consolidated financial statements. Unrealized losses and fair values for investment securities available for sale as of September 30, 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: September 30, 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 Available for sale securities U.S. Treasury securities $ 5,020 $ 2 $ 19,513 $ 493 $ 24,533 $ 495 Government sponsored entity debt securities 59,562 777 15,010 709 74,572 1,486 Agency mortgage-backed securities 217,907 3,612 60,798 2,765 278,705 6,377 State and municipal securities 82,326 891 15,619 618 97,945 1,509 Corporate securities 28,831 443 4,214 338 33,045 781 Total available for sale securities $ 393,646 $ 5,725 $ 115,154 $ 4,923 $ 508,800 $ 10,648 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 Available for sale securities 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 Equity securities (1) 2,603 25 — — 2,603 25 Total available for sale securities $ 205,976 $ 2,467 $ 36,842 $ 914 $ 242,818 $ 3,381 (1) As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within available for sale securities and are now presented within equity securities in the consolidated balance sheets for the current period. For further discussion of this guidance, see Note 2 to the consolidated financial statements. For all of the above investment securities, the unrealized losses are generally due to changes in interest rates and unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach maturity date. 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 September 30, 2018, 393 investment securities available for sale had unrealized losses with aggregate depreciation of 2.1% 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 prior to recovery in value; therefore, the Company does not consider these securities to be other than temporarily impaired at September 30, 2018. For the three and nine months ended September 30, 2018 and 2017, the Company did not recognize OTTI losses on its investment securities. The following is a summary of the amortized cost and fair value of the available-for-sale investment securities, by maturity, at September 30, 2018. The maturities of agency and non-agency mortgage-backed securities are based on expected maturities. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other available-for-sale investment securities are based on final contractual maturity. Amortized Fair (dollars in thousands) cost value Available for sale securities Within one year $ 51,775 $ 51,705 After one year through five years 419,588 414,879 After five years through ten years 177,434 175,784 After ten years 40,112 40,028 Total available for sale securities $ 688,909 $ 682,396 Proceeds from the sale of investment securities available for sale were $16.8 million for the nine months ended September 30, 2018. There were no sales of investment securities available for sale during the three months ended September 30, 2018. Gross realized gains from the sale of securities available for sale were $73,000 for the nine months ended September 30, 2018. There were $25,000 gross realized losses for the nine months ended September 30, 2018. Proceeds from the sale of investment securities available for sale were $2.7 million and $11.3 million for the three and nine months ended September 30, 2017, respectively. Gross realized gains from the sale of securities available for sale were $98,000 and $219,000 for the three and nine months ended September 30, 2017, respectively. There were no gross realized losses for the three and nine months ended September 30, 2017. Proceeds from the sale of equity securities were $7.8 million for the nine months ended September 30, 2018. There were no sales of equity securities during the three months ended September 30, 2018. Gross realized losses from the sale of equity securities were $53,000 for the nine months ended September 30, 2018. There were no gross realized gains for the nine months ended September 30, 2018. During the three months ended September 30, 2018, the Company recognized net unrealized losses of $67,000 and for the nine months ended September 30, 2018, the Company recognized net unrealized gains of $26,000, which was recorded in noninterest income in the consolidated statements of income.

LOANS

LOANS	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans (1) Total Loans Loans (1) Total Commercial $ 785,859 $ 5,688 $ 791,547 $ 553,257 $ 2,673 $ 555,930 Commercial real estate 1,692,143 19,783 1,711,926 1,427,076 12,935 1,440,011 Construction and land development 230,913 8,567 239,480 199,853 734 200,587 Total commercial loans 2,708,915 34,038 2,742,953 2,180,186 16,342 2,196,528 Residential real estate 576,259 9,875 586,134 447,602 5,950 453,552 Consumer 582,161 2,035 584,196 371,286 169 371,455 Lease financing 242,999 — 242,999 205,143 — 205,143 Total loans $ 4,110,334 $ 45,948 $ 4,156,282 $ 3,204,217 $ 22,461 $ 3,226,678 (1) The unpaid principal balance for PCI loans totaled $60.7 million and $32.8 million as of September 30, 2018 and December 31, 2017, respectively. Total loans include net deferred loan fees of $15.4 million and $10.1 million at September 30, 2018 and December 31, 2017, respectively, and unearned discounts of $25.4 million and $20.7 million within the lease financing portfolio at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018 and December 31, 2017, the Company had commercial and residential loans held for sale totaling $35.2 million and $50.1 million, respectively. During the three and nine months ended September 30, 2018, the Company sold commercial and residential real estate loans with proceeds totaling $155.0 million and $424.9 million, respectively, and sold commercial and residential real estate loans with proceeds totaling $206.2 million and $679.2 million for the comparable periods in 2017, respectively. We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates totaled $25.6 million and $22.4 million at September 30, 2018 and December 31, 2017, respectively. During the three and nine months ended September 30, 2018, there were $6.9 million and $8.6 million, respectively, of new loans and other additions, while repayments and other reductions totaled $1.7 million and $5.4 million, respectively. 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 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 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 September 30, 2018 and December 31, 2017: September 30, 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 $ 735,936 $ 1,606,393 $ 229,411 $ 2,571,740 $ 510,928 $ 1,384,630 $ 191,872 $ 2,087,430 Special mention 22,686 35,310 44 58,040 12,290 11,497 — 23,787 Substandard 18,849 31,278 — 50,127 27,718 14,695 — 42,413 Substandard – nonaccrual 8,388 19,162 1,239 28,789 1,266 12,482 785 14,533 Doubtful — — — — — — — — Not graded — — 219 219 1,055 3,772 7,196 12,023 Total (excluding PCI) $ 785,859 $ 1,692,143 $ 230,913 $ 2,708,915 $ 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, loans 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 September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Residential Lease Residential Lease (dollars in thousands) Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 569,716 $ 581,635 $ 242,302 $ 1,393,653 $ 441,418 $ 370,999 $ 203,797 $ 1,016,214 Impaired 6,543 526 697 7,766 6,184 287 1,346 7,817 Total (excluding PCI) $ 576,259 $ 582,161 $ 242,999 $ 1,401,419 $ 447,602 $ 371,286 $ 205,143 $ 1,024,031 Impaired Loans Impaired loans include loans on nonaccrual status, loans past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings. Impaired loans at September 30, 2018 and December 31, 2017 do not include $45.9 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. There was no interest income recognized on nonaccrual loans during the three and nine months ended September 30, 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 $421,000 and $1.3 million for the three and nine months ended September 30, 2018, respectively, and $124,000 and $532,000 for the three and nine months ended September 30, 2017, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $17,000 and $75,000 for the three and nine months ended September 30, 2018, respectively, and $40,000 and $59,000 for the comparable periods in 2017, respectively. The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of September 30, 2018 and December 31, 2017: September 30, 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 $ 2,994 $ 3,066 $ 2,401 $ 3,237 $ 3,297 $ 526 Commercial real estate 6,939 13,179 576 2,297 3,508 329 Construction and land development 179 179 18 103 102 10 Residential real estate 3,875 4,506 589 4,028 4,705 566 Consumer 513 532 58 266 279 29 Lease financing 697 698 296 1,064 1,064 345 Total impaired loans with a valuation allowance 15,197 22,160 3,938 10,995 12,955 1,805 Impaired loans with no related valuation allowance: Commercial 5,891 9,204 — 866 5,782 — Commercial real estate 13,679 14,216 — 11,700 17,359 — Construction and land development 1,113 1,113 — 740 780 — Residential real estate 2,668 2,943 — 2,156 2,380 — Consumer 13 14 — 21 21 — Lease financing — — — 282 282 — Total impaired loans with no related valuation allowance 23,364 27,490 — 15,765 26,604 — Total impaired loans: Commercial 8,885 12,270 2,401 4,103 9,079 526 Commercial real estate 20,618 27,395 576 13,997 20,867 329 Construction and land development 1,292 1,292 18 843 882 10 Residential real estate 6,543 7,449 589 6,184 7,085 566 Consumer 526 546 58 287 300 29 Lease financing 697 698 296 1,346 1,346 345 Total impaired loans (excluding PCI) $ 38,561 $ 49,650 $ 3,938 $ 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 (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 $11.0 million and $12.8 million at September 30, 2018 and December 31, 2017, respectively. Interest income recognized on impaired loans during the three and nine months ended September 30, 2018 and 2017 was immaterial. The aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of September 30, 2018 and December 31, 2017 were as follows: 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 September 30, 2018 Commercial $ 2,508 $ 2,628 $ 1 $ 8,388 $ 13,525 $ 772,334 $ 785,859 Commercial real estate 1,995 276 793 19,162 22,226 1,669,917 1,692,143 Construction and land development 2,590 — — 1,239 3,829 227,084 230,913 Residential real estate 1,271 1,462 150 5,600 8,483 567,776 576,259 Consumer 3,974 2,292 33 327 6,626 575,535 582,161 Lease financing 2,933 749 26 671 4,379 238,620 242,999 Total (excluding PCI) $ 15,271 $ 7,407 $ 1,003 $ 35,387 $ 59,068 $ 4,051,266 $ 4,110,334 December 31, 2017 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 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 $455,000 and $240,000 as of September 30, 2018 and December 31, 2017, respectively. The Company had no unfunded commitments in connection with TDRs at September 30, 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 September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 496 $ 21 $ 517 $ 299 $ — $ 299 Commercial real estate 663 9,567 10,230 1,515 9,915 11,430 Construction and land development 53 — 53 58 — 58 Residential real estate 793 386 1,179 929 282 1,211 Consumer 166 — 166 — — — Lease financing — — — — — — Total loans (excluding PCI) $ 2,171 $ 9,974 $ 12,145 $ 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. The following table presents a summary of loans by portfolio that were restructured during the three and nine months ended September 30, 2018 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2018: 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 September 30, 2018: Troubled debt restructurings: Number of loans — — — — — — — Pre-modification outstanding balance $ — $ — $ — $ — $ — $ — $ — Post-modification outstanding balance — — — — — — — Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — For the nine months ended September 30, 2018: Troubled debt restructurings: Number of loans 1 — — 3 5 — 9 Pre-modification outstanding balance $ 23 $ — $ — $ 212 $ 19 $ — $ 254 Post-modification outstanding balance 22 — — 207 19 — 248 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — The following table presents a summary of loans by portfolio that were restructured during the three and nine months ended September 30, 2017 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 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 September 30, 2017: Troubled debt restructurings: Number of loans — — — 1 — — 1 Pre-modification outstanding balance $ — $ — $ — $ 91 $ — $ — $ 91 Post-modification outstanding balance — — — 90 — — 90 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — For the nine months ended September 30, 2017: Troubled debt restructurings: Number of loans 1 — — 3 — — 4 Pre-modification outstanding balance $ 362 $ — $ — $ 475 $ — $ — $ 837 Post-modification outstanding balance 339 — — 474 — — 813 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. Purchased Credit Impaired Loans The Company has purchased loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Accretable yield of PCI loans, or income expected to be collected, was as follows: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Balance, at beginning of period $ 11,114 $ 7,566 $ 5,732 $ 9,035 New loans purchased – Alpine acquisition — — 6,095 — New loans purchased – Centrue acquisition — — — 1,929 Accretion (1,308) (1,270) (3,659) (4,276) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) 136 1,678 1,150 (1,558) Reclassification from non-accretable 1,350 (1,325) 1,974 1,519 Balance, at end of period $ 11,292 $ 6,649 $ 11,292 $ 6,649 Accretion recorded as loan interest income totaled $1.3 million and $3.7 million during the three and nine months ended September 30, 2018, respectively and $1.3 million and $4.3 million during the three and nine months ended September 30, 2017, respectively. 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, if applicable, may not be adequately maintained by the borrower. Lease financing – Our financing leases are primarily for business equipment leased to varying types of businesses, nationwide, for the purchase of business equipment and software. If the cash flow from business operations is reduced, the business’s ability to repay may become impaired. The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three and nine months ended September 30, 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 September 30, 2018: Balance, beginning of period $ 6,203 $ 5,377 $ 505 $ 2,742 $ 1,629 $ 1,790 $ 18,246 Provision for loan losses 1,117 (41) (98) (268) 727 666 2,103 Charge-offs — — — (69) (453) (816) (1,338) Recoveries 248 (52) 29 33 202 160 620 Balance, end of period $ 7,568 $ 5,284 $ 436 $ 2,438 $ 2,105 $ 1,800 $ 19,631 Changes in allowance for loan losses for the three months ended September 30, 2017: Balance, beginning of period $ 5,381 $ 3,996 $ 147 $ 3,377 $ 1,385 $ 1,138 $ 15,424 Provision for loan losses (745) 2,715 55 (433) (92) (11) 1,489 Charge-offs — — — (128) (105) (102) (335) Recoveries 54 56 13 47 81 32 283 Balance, end of period $ 4,690 $ 6,767 $ 215 $ 2,863 $ 1,269 $ 1,057 $ 16,861 Changes in allowance for loan losses for the nine months ended September 30, 2018: Balance, beginning of period $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Provision for loan losses 2,908 155 (156) (250) 1,554 1,752 5,963 Charge-offs (1,145) (259) — (209) (1,236) (1,775) (4,624) Recoveries 549 344 74 147 443 304 1,861 Balance, end of period $ 7,568 $ 5,284 $ 436 $ 2,438 $ 2,105 $ 1,800 $ 19,631 Changes in allowance for loan losses for the nine months ended September 30, 2017: Balance, beginning of period $ 5,920 $ 3,225 $ 345 $ 2,929 $ 930 $ 1,513 $ 14,862 Provision for loan losses (630) 3,577 (178) 113 678 (80) 3,480 Charge-offs (737) (470) — (455) (536) (658) (2,856) Recoveries 137 435 48 276 197 282 1,375 Balance, end of period $ 4,690 $ 6,767 $ 215 $ 2,863 $ 1,269 $ 1,057 $ 16,861 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 September 30, 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 September 30, 2018: Allowance for loan losses: Loans individually evaluated for impairment $ 2,375 $ 516 $ 5 $ 285 $ 13 $ 252 $ 3,446 Loans collectively evaluated for impairment 26 60 13 304 45 44 492 Non-impaired loans collectively evaluated for impairment 4,599 4,285 418 1,339 1,898 1,504 14,043 Loans acquired with deteriorated credit quality (1) 568 423 — 510 149 — 1,650 Total allowance for loan losses $ 7,568 $ 5,284 $ 436 $ 2,438 $ 2,105 $ 1,800 $ 19,631 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 8,632 $ 20,055 $ 1,166 $ 3,480 $ 13 $ 280 $ 33,626 Impaired loans collectively evaluated for impairment 253 563 126 3,063 513 417 4,935 Non-impaired loans collectively evaluated for impairment 776,974 1,671,525 229,621 569,716 581,635 242,302 4,071,773 Loans acquired with deteriorated credit quality (1) 5,688 19,783 8,567 9,875 2,035 — 45,948 Total recorded investment (loan balance) $ 791,547 $ 1,711,926 $ 239,480 $ 586,134 $ 584,196 $ 242,999 $ 4,156,282 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	9 Months Ended
	Sep. 30, 2018
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT, NET	Note 6 – Premises and Equipment, Net A summary of premises and equipment as of September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, (dollars in thousands) 2018 2017 Land $ 20,231 $ 16,109 Buildings and improvements 75,507 63,837 Furniture and equipment 29,236 25,843 Total 124,974 105,789 Accumulated depreciation (29,912) (29,627) Premises and equipment, net $ 95,062 $ 76,162 Depreciation expense was recorded at $1.5 million and $4.6 million for the three and nine months ended September 30, 2018, respectively. Depreciation expense was recorded at $1.3 million and $3.7 million for the three and nine months ended September 30, 2017, respectively.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	9 Months Ended
	Sep. 30, 2018
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS	Note 7 – Mortgage Servicing Rights The Company services both residential and commercial FHA mortgage loans for others. At September 30, 2018 and December 31, 2017, the Company serviced commercial FHA mortgage loans for others with unpaid principal balances of approximately $3.93 billion and $3.98 billion, respectively. Changes in our commercial FHA mortgage servicing rights were as follows for the three and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Mortgage servicing rights: Balance, beginning of period $ 56,268 $ 54,315 $ 55,714 $ 52,006 Originated servicing 176 1,433 2,087 5,020 Amortization (633) (650) (1,990) (1,928) Balance, end of period 55,811 55,098 55,811 55,098 Valuation allowances: Balance, beginning of period 3,887 2,750 3,254 1,711 Impairment 298 104 931 1,143 Balance, end of period 4,185 2,854 4,185 2,854 Mortgage servicing rights, net $ 51,626 $ 52,244 $ 51,626 $ 52,244 Fair value: At beginning of period $ 52,381 $ 51,565 $ 52,460 $ 50,355 At end of period $ 51,626 $ 52,244 $ 51,626 $ 52,244 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 September 30, 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 September 30, 2018: Commercial FHA mortgage loans 0.13 % 3.66 % 30.2 8.25 % $ 1,000 11.02 % December 31, 2017: Commercial FHA mortgage loans 0.12 % 3.67 % 30.3 8.27 % $ 1,000 11.02 % 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. At September 30, 2018 and December 31, 2017, the Company serviced residential mortgage loans for others with unpaid principal balances of approximately $1.35 billion and $1.99 billion, respectively. During the year ended December 31, 2017, the Company recognized a $4.1 million loss to reflect certain residential mortgage servicing rights classified as held for sale at the lower of their carrying value or fair value less estimated costs to sell. On January 2, 2018, the Company sold its $10.2 million of residential mortgage servicing rights held for sale. Subsequent to this sale, the Company transferred all remaining residential mortgage servicing rights, net of valuation allowances, to mortgage servicing rights held for sale. At September 30, 2018, residential mortgage servicing rights total $4.4 million are reflected in the consolidated balance sheet as mortgage servicing rights held for sale.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2018
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	Note 8 – Goodwill and Intangible Assets At September 30, 2018 and December 31, 2017, goodwill totaled $164.0 million and $98.6 million, respectively, reflecting an increase of approximately $65.3 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 September 30, 2018 and December 31, 2017 are summarized as follows: September 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 52,712 $ (23,262) $ 29,450 $ 31,612 $ (18,943) $ 12,669 Customer relationship intangibles 13,771 (3,993) 9,778 7,471 (3,208) 4,263 Total intangible assets $ 66,483 $ (27,255) $ 39,228 $ 39,083 $ (22,151) $ 16,932 In conjunction with the acquisition of Alpine on February 28, 2018, we recorded $21.1 million of core deposit intangibles and $6.3 million of customer relationship intangibles, which are both being amortized on an accelerated basis over an estimated useful life of 13 years, as further discussed in Note 3 to the consolidated financial statements. Amortization of intangible assets was $1.9 million and $5.1 million for the three and nine months ended September 30, 2018, respectively, and $1.2 million and $2.3 million for the comparable periods in 2017, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017: Notional Amount Fair Value Gain September 30, December 31, September 30, December 31, (dollars in thousands) 2018 2017 2018 2017 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 315,741 $ 345,152 $ 5,503 $ 6,331 Forward commitments to sell mortgage-backed securities 316,300 372,824 — 31 Total $ 632,041 $ 717,976 $ 5,503 $ 6,362 Net gains of $1.2 million and net losses of $941,000 were recognized on derivative instruments for the three and nine months ended September 30, 2018, respectively. Net losses of $1.1 million and net gains of $48,000 were recognized on derivative instruments for the three and nine months ended September 30, 2017, respectively. 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 $9.6 million at September 30, 2018 and $10.0 million at December 31, 2017. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $390,000 at September 30, 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	9 Months Ended
	Sep. 30, 2018
DEPOSITS
DEPOSITS	Note 10 – Deposits The following table summarizes the classification of deposits as of September 30, 2018 and December 31, 2017: September 30, December 31, (dollars in thousands) 2018 2017 Noninterest-bearing demand $ 991,311 $ 724,443 Interest-bearing: Checking 1,047,914 785,934 Money market 836,151 646,426 Savings 445,640 281,212 Time 822,190 693,074 Total deposits $ 4,143,206 $ 3,131,089

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017: Repurchase Agreements September 30, December 31, (dollars in thousands) 2018 2017 Outstanding at period-end $ 145,450 $ 156,126 Average amount outstanding 136,203 163,461 Maximum amount outstanding at any month end 173,387 196,278 Weighted average interest rate: During period 0.44 % 0.23 % End of period 0.63 % 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 $146.4 million and $157.2 million at September 30, 2018 and December 31, 2017, respectively, were pledged for securities sold under agreements to repurchase. The Company had available lines of credit of $68.4 million and $32.5 million at September 30, 2018 and December 31, 2017, respectively, from the Federal Reserve Discount Window. The lines are collateralized by collateral agreements totaling $78.9 million and $36.5 million at September 30, 2018 and December 31, 2017, respectively. There were no outstanding borrowings under these lines of credit at September 30, 2018 and December 31, 2017. At September 30, 2018, the Company had available federal funds lines of credit totaling $55.0 million. The lines of credit were unused at September 30, 2018.

FHLB ADVANCES AND OTHER BORROWI

FHLB ADVANCES AND OTHER BORROWINGS	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017: September 30, December 31, (dollars in thousands) 2018 2017 Midland States Bancorp, Inc. Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 4.38% and 3.63% at September 30, 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 $122.8 million and $145.0 million, at rates averaging 2.22% and 1.35% at September 30, 2018 and December 31, 2017, respectively – maturing through February 2023 and putable fixed rate of $495.0 million and $305.0 million at rates averaging 1.99% and 1.29% at September 30, 2018 and December 31, 2017, respectively – maturing through August 2025 with call provisions through December 2020 617,806 450,137 FHLB advances – variable rate, fixed term, at rates averaging 1.20% at December 31, 2017 – matured in March 2018 — 9,000 Other — 5 Total FHLB advances and other borrowings $ 652,253 $ 496,436 In 2017, the Company entered into a loan agreement with another bank for a term loan in the original principal amount of $40.0 million. 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 Bank’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 September 30, 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 $2.22 billion and $1.86 billion at September 30, 2018 and December 31, 2017, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2018 2017 2018 2017 Net income $ 8,497 $ 2,036 $ 23,085 $ 14,065 Preferred dividends declared (82) (83) (248) (102) Preferred stock, premium amortization 47 56 141 56 Net income available to common shareholders equity 8,462 2,009 22,978 14,019 Common shareholder dividends (5,208) (3,818) (14,617) (10,100) Unvested restricted stock award dividends (31) (19) (94) (59) Undistributed earnings to unvested restricted stock awards (18) — (49) (21) Undistributed earnings to common shareholders $ 3,205 $ (1,828) $ 8,218 $ 3,839 Basic Distributed earnings to common shareholders $ 5,208 $ 3,818 $ 14,617 $ 10,100 Undistributed earnings to common shareholders 3,205 (1,828) 8,218 3,839 Total common shareholders earnings, basic $ 8,413 $ 1,990 $ 22,835 $ 13,939 Diluted Distributed earnings to common shareholders $ 5,208 $ 3,818 $ 14,617 $ 10,100 Undistributed earnings to common shareholders 3,205 (1,828) 8,218 3,839 Total common shareholders earnings 8,413 1,990 22,835 13,939 Add back: Undistributed earnings reallocated from unvested restricted stock awards 1 — 1 1 Total common shareholders earnings, diluted $ 8,414 $ 1,990 $ 22,836 $ 13,940 Weighted average common shares outstanding, basic 23,855,805 19,265,409 22,868,256 17,274,746 Options and warrants 469,938 438,808 458,884 522,489 Weighted average common shares outstanding, diluted 24,325,743 19,704,217 23,327,140 17,797,235 Basic earnings per common share $ 0.35 $ 0.10 $ 1.00 $ 0.81 Diluted earnings per common share 0.35 0.10 0.98 0.78

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017, are summarized below: September 30, 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 $ 24,533 $ 24,533 $ — $ — Government sponsored entity debt securities 75,373 — 75,373 — Agency mortgage-backed securities 343,697 — 343,697 — State and municipal securities 171,012 — 171,012 — Corporate securities 67,781 — 62,361 5,420 Equity securities 3,357 — 3,357 — Loans held for sale 35,246 — 35,246 — Interest rate lock commitments 5,503 — 5,503 — Interest rate swap contracts 390 — 390 — Total $ 726,892 $ 24,533 $ 696,939 $ 5,420 Liabilities Interest rate swap contracts $ 390 $ — $ 390 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 51,626 $ — $ — $ 51,626 Mortgage servicing rights held for sale 4,419 — — 4,419 Impaired loans 9,922 — 9,426 496 Other real estate owned 42 — 42 — Assets held for sale 1,687 — 1,687 — 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 and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Mortgage servicing rights $ 298 $ 104 $ 931 $ 1,830 Mortgage servicing rights held for sale 270 3,617 458 3,617 Impaired loans 989 1 3,906 564 Other real estate owned — — 126 180 Assets held for sale — — — 1,130 Total loss on assets measured on a nonrecurring basis $ 1,557 $ 3,722 $ 5,421 $ 7,321 The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2018: Corporate Securities Three Months Nine Months Ended Ended September 30, September 30, (dollars in thousands) 2018 Balance, beginning of period $ 5,357 $ 4,779 Total realized in earnings (1) 67 187 Total unrealized in other comprehensive income 55 616 Net settlements (principal and interest) (59) (162) Balance, end of period $ 5,420 $ 5,420 (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 and nine months ended September 30, 2017: Non-Agency Corporate Mortgage-Backed Securities Securities Three Months Nine Months Three Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, (dollars in thousands) 2017 2017 Balance, beginning of period $ 4,740 7,480 $ — $ 1 Total realized in earnings (1) 54 235 — — Total unrealized in other comprehensive income — 242 — — Net settlements (principal and interest) (45) (3,208) — (1) Balance, end of period $ 4,749 4,749 $ — $ — (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 September 30, 2018 (in thousands): Non-recurring Valuation Unobservable fair value measurements Fair Value technique input / assumptions Range (weighted average) Mortgage servicing rights $ 51,626 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.25%) Discount rate 10.00% - 12.00% (11.02%) Impaired loans $ 496 Discounted cash flow Discount rate 5.00% - 8.10% (7.14%) 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 $51.6 million and $56.4 million at September 30, 2018 and December 31, 2017, respectively. 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 September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Residential loans held for sale $ 17,259 $ 784 $ 16,475 $ 12,243 $ 375 $ 11,868 Commercial loans held for sale 17,987 238 17,749 37,846 343 37,503 Total loans held for sale $ 35,246 $ 1,022 $ 34,224 $ 50,089 $ 718 $ 49,371 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 and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Residential loans held for sale $ 172 $ (245) $ 232 $ 10 Commercial loans held for sale (131) 89 (105) (527) Total loans held for sale $ 41 $ (156) $ 127 $ (517) 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 securities, loans, excluding loans held for sale, time deposits, FHLB and other borrowings, subordinated debt, and trust preferred debentures as of September 30, 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 September 30, 2018 and December 31, 2017: September 30, 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 $ 240,489 $ 240,489 $ 240,489 $ — $ — Federal funds sold 1,944 1,944 1,944 — — Investment securities available for sale 682,396 682,396 24,533 652,443 5,420 Equity securities 3,357 3,357 — 3,357 — Nonmarketable equity securities 44,931 44,931 — 44,931 — Loans, net 4,136,651 4,065,938 — — 4,065,938 Loans held for sale 35,246 35,246 — 35,246 — Accrued interest receivable 17,500 17,500 — 17,500 — Interest rate lock commitments 5,503 5,503 — 5,503 — Interest rate swap contracts 390 390 — 390 — Liabilities Deposits $ 4,143,206 $ 4,134,381 $ — $ 4,134,381 $ — Short-term borrowings 145,450 145,450 — 145,450 — FHLB and other borrowings 652,253 648,967 — 648,967 — Subordinated debt 94,093 60,991 — 60,991 — Trust preferred debentures 47,676 51,248 — 51,248 — Accrued interest payable 5,564 5,564 — 5,564 — Interest rate swap contracts 390 390 — 390 — 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	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, (dollars in thousands) 2018 2017 Commitments to extend credit $ 706,519 $ 568,356 Financial guarantees – standby letters of credit 143,025 142,189 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 $11,000 for the nine months ended September 30, 2018 and $17,000 for both the three and nine months ended September 30, 2017. There were no losses incurred for the three months ended September 30, 2018. The liability for unresolved repurchase demands totaled $492,000 and $371,000 at September 30, 2018 and December 31, 2017, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2018
SEGMENT INFORMATION
SEGMENT INFORMATION	Note 16 – Segment Information Our business segments are defined as Banking, Commercial FHA Origination and Servicing, Wealth Management, 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 wealth management segment consists of trust and fiduciary services, brokerage and retirement planning services. The other segment includes the operating results of the parent company, our captive insurance business unit, and the elimination of intercompany transactions. During 2018, the Company re-evaluated its business segments and changed the composition of its reportable segments to those described above and restated all prior period information. Selected business segment financial information as of and for the three and nine months ended September 30, 2018 and 2017 were as follows: Commercial FHA Origination and Wealth (dollars in thousands) Banking Servicing Management Other Total Three Months Ended September 30, 2018 Net interest income (expense) $ 47,887 $ (177) $ 74 $ (2,703) $ 45,081 Provision for loan losses 2,103 — — — 2,103 Noninterest income 9,807 3,144 5,444 (123) 18,272 Noninterest expense 43,636 3,218 3,146 317 50,317 Income before income taxes 11,955 (251) 2,372 (3,143) 10,933 Income taxes (benefit) 2,246 (148) 344 (6) 2,436 Net income (loss) $ 9,709 $ (103) $ 2,028 $ (3,137) $ 8,497 Total assets $ 5,689,585 $ 113,463 $ 17,528 $ (95,964) $ 5,724,612 Three Months Ended September 30, 2017 Net interest income (expense) $ 38,597 $ (79) $ 117 $ (1,870) $ 36,765 Provision for loan losses 1,489 — — — 1,489 Noninterest income 8,093 3,967 3,475 (132) 15,403 Noninterest expense 42,145 3,910 2,122 186 48,363 Income (loss) before income taxes (benefit) 3,056 (22) 1,470 (2,188) 2,316 Income taxes (benefit) 730 (9) 482 (923) 280 Net income (loss) $ 2,326 $ (13) $ 988 $ (1,265) $ 2,036 Total assets $ 4,307,639 $ 121,514 $ 15,391 $ (96,783) $ 4,347,761 Commercial FHA Origination and Wealth (dollars in thousands) Banking Servicing Management Other Total Nine Months Ended September 30, 2018 Net interest income (expense) $ 139,497 $ (236) $ 232 $ (7,941) $ 131,552 Provision for loan losses 5,963 — — — 5,963 Noninterest income 29,041 7,112 14,832 (364) 50,621 Noninterest expense 127,220 11,474 8,281 (707) 146,268 Income (loss) before income taxes (benefit) 35,355 (4,598) 6,783 (7,598) 29,942 Income taxes (benefit) 8,089 (1,143) 1,373 (1,462) 6,857 Net income (loss) $ 27,266 $ (3,455) $ 5,410 $ (6,136) $ 23,085 Total assets $ 5,689,585 $ 113,463 $ 17,528 $ (95,964) $ 5,724,612 Nine Months Ended September 30, 2017 Net interest income (expense) $ 97,579 $ 325 $ 423 $ (4,701) $ 93,626 Provision for loan losses 3,480 — — — 3,480 Noninterest income 20,800 15,189 9,753 (378) 45,364 Noninterest expense 98,589 11,639 6,509 68 116,805 Income (loss) before income taxes (benefit) 16,310 3,875 3,667 (5,147) 18,705 Income taxes (benefit) 4,136 1,550 1,178 (2,224) 4,640 Net income (loss) $ 12,174 $ 2,325 $ 2,489 $ (2,923) $ 14,065 Total assets $ 4,307,639 $ 121,514 $ 15,391 $ (96,783) $ 4,347,761

REVENUE FROM CONTRACT WITH CUST

REVENUE FROM CONTRACT WITH CUSTOMERS	9 Months Ended
	Sep. 30, 2018
Revenue from contract with customers
Revenue from contract with customers	Note 17 – 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 and nine months ended September 30, 2018 and 2017. Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 4,327 $ 2,434 $ 11,768 $ 7,181 Investment advisory fees 531 451 1,491 896 Investment brokerage fees 270 362 820 1,031 Other 339 228 783 646 Service charges on deposit accounts: Nonsufficient fund fees 2,098 1,467 5,539 2,810 Other 706 666 1,925 1,337 Interchange revenues 2,759 1,724 7,733 3,816 Other income: Merchant services revenue 448 310 1,246 802 Other 278 393 2,035 1,273 Noninterest income - out-of-scope of Topic 606 6,516 7,368 17,281 25,572 Total noninterest income $ 18,272 $ 15,403 $ 50,621 $ 45,364 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 September 30, 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.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 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. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any other period.
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 prior practice. 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 17 – 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. See “Note 14 – Fair Value of Financial Instruments” regarding the valuation of the loan portfolio. 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. Under the new guidance, lessees will be required to recognize the following for all leases, with the exception of short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. This update is effective for us on January 1, 2019, with early adoption permitted. 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. In July 2018, the FASB issued supplementary ASU No. 2018-11, which provides for an additional transition method permitting application of the new leases standard at the beginning of the year of adoption. The Company developed and is currently executing on a project plan for implementing the provisions of the new lease standard. While we have not yet determined the overall impact of the new guidance on the Company’s consolidated financial statements, we expect to report increased assets and liabilities on our consolidated statement of financial condition as a result of recognizing right-of-use assets and lease liabilities related to non-cancelable operating lease agreements for office space, which currently are not on our consolidated statement of financial condition. 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 has finalized the contract with a vendor to assist in generating loan level cash flows and disclosures. The vendor has started the process of uploading loan level historical data into their system. 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 balance sheets. 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. 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 maximum federal income tax rate from 35% to 21% effective starting in 2018. 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 was not material.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 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 786,186 679,582 Loans held for sale 3,416 531 Premises and equipment 18,126 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 27,400 11,070 Cash surrender value of life insurance policies 22,578 36,349 Deferred tax assets, net — 34,339 Other assets 4,770 2,256 Total assets acquired 1,244,182 990,208 Liabilities assumed: Deposits 1,111,130 739,867 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 1,994 — Other liabilities 4,500 3,600 Total liabilities assumed 1,136,290 861,073 Net assets acquired 107,892 129,135 Goodwill 65,335 47,444 Total consideration paid $ 173,227 $ 176,579 Intangible assets: Core deposit intangible $ 21,100 $ 11,070 Customer relationship intangible 6,300 — Total intangible assets $ 27,400 $ 11,070 Estimated useful lives: Core deposit intangible 13 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 $ 34,993 $ 50,342 $ 9,254 Acquired receivables not subject to ASC 310-30 751,193 774,836 4,244 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 Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2018 2017 2018 2017 Revenue (1) $ 63,353 $ 69,594 $ 194,910 $ 210,873 Net income 8,497 5,196 25,656 25,278 Diluted earnings per common share 0.21 1.05 1.04 (1) Net interest income plus noninterest income

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2018
INVESTMENT SECURITIES
Schedule of investment securities classified as available for sale	September 30, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities U.S. Treasury securities $ 25,028 $ — $ 495 $ 24,533 Government sponsored entity debt securities 76,841 18 1,486 75,373 Agency mortgage-backed securities 349,501 573 6,377 343,697 State and municipal securities 169,887 2,634 1,509 171,012 Corporate securities 67,652 910 781 67,781 Total available for sale securities $ 688,909 $ 4,135 $ 10,648 $ 682,396 Equity securities (1) $ 3,357 December 31, 2017 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities 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 Equity securities (1) 2,715 140 25 2,830 Total available for sale securities $ 448,124 $ 5,782 $ 3,381 $ 450,525 (1) As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within available for sale securities and are now presented within equity securities in the consolidated balance sheets for the current period. For further discussion of this guidance, see Note 2 to the consolidated financial statements.
Schedule of unrealized losses and fair values for investment securities	September 30, 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 Available for sale securities U.S. Treasury securities $ 5,020 $ 2 $ 19,513 $ 493 $ 24,533 $ 495 Government sponsored entity debt securities 59,562 777 15,010 709 74,572 1,486 Agency mortgage-backed securities 217,907 3,612 60,798 2,765 278,705 6,377 State and municipal securities 82,326 891 15,619 618 97,945 1,509 Corporate securities 28,831 443 4,214 338 33,045 781 Total available for sale securities $ 393,646 $ 5,725 $ 115,154 $ 4,923 $ 508,800 $ 10,648 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 Available for sale securities 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 Equity securities (1) 2,603 25 — — 2,603 25 Total available for sale securities $ 205,976 $ 2,467 $ 36,842 $ 914 $ 242,818 $ 3,381 (1) As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within available for sale securities and are now presented within equity securities in the consolidated balance sheets for the current period. For further discussion of this guidance, see Note 2 to the consolidated financial statements.
Contractual maturity of amortized cost and fair value	Amortized Fair (dollars in thousands) cost value Available for sale securities Within one year $ 51,775 $ 51,705 After one year through five years 419,588 414,879 After five years through ten years 177,434 175,784 After ten years 40,112 40,028 Total available for sale securities $ 688,909 $ 682,396

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2018
LOANS
Summary of loans	September 30, 2018 December 31, 2017 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans (1) Total Loans Loans (1) Total Commercial $ 785,859 $ 5,688 $ 791,547 $ 553,257 $ 2,673 $ 555,930 Commercial real estate 1,692,143 19,783 1,711,926 1,427,076 12,935 1,440,011 Construction and land development 230,913 8,567 239,480 199,853 734 200,587 Total commercial loans 2,708,915 34,038 2,742,953 2,180,186 16,342 2,196,528 Residential real estate 576,259 9,875 586,134 447,602 5,950 453,552 Consumer 582,161 2,035 584,196 371,286 169 371,455 Lease financing 242,999 — 242,999 205,143 — 205,143 Total loans $ 4,110,334 $ 45,948 $ 4,156,282 $ 3,204,217 $ 22,461 $ 3,226,678 (1) The unpaid principal balance for PCI loans totaled $60.7 million and $32.8 million as of September 30, 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 September 30, 2018 and December 31, 2017: September 30, 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 $ 735,936 $ 1,606,393 $ 229,411 $ 2,571,740 $ 510,928 $ 1,384,630 $ 191,872 $ 2,087,430 Special mention 22,686 35,310 44 58,040 12,290 11,497 — 23,787 Substandard 18,849 31,278 — 50,127 27,718 14,695 — 42,413 Substandard – nonaccrual 8,388 19,162 1,239 28,789 1,266 12,482 785 14,533 Doubtful — — — — — — — — Not graded — — 219 219 1,055 3,772 7,196 12,023 Total (excluding PCI) $ 785,859 $ 1,692,143 $ 230,913 $ 2,708,915 $ 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, loans 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 September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Residential Lease Residential Lease (dollars in thousands) Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 569,716 $ 581,635 $ 242,302 $ 1,393,653 $ 441,418 $ 370,999 $ 203,797 $ 1,016,214 Impaired 6,543 526 697 7,766 6,184 287 1,346 7,817 Total (excluding PCI) $ 576,259 $ 582,161 $ 242,999 $ 1,401,419 $ 447,602 $ 371,286 $ 205,143 $ 1,024,031
Summary of impaired loans (excluding PCI loans)	The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of September 30, 2018 and December 31, 2017: September 30, 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 $ 2,994 $ 3,066 $ 2,401 $ 3,237 $ 3,297 $ 526 Commercial real estate 6,939 13,179 576 2,297 3,508 329 Construction and land development 179 179 18 103 102 10 Residential real estate 3,875 4,506 589 4,028 4,705 566 Consumer 513 532 58 266 279 29 Lease financing 697 698 296 1,064 1,064 345 Total impaired loans with a valuation allowance 15,197 22,160 3,938 10,995 12,955 1,805 Impaired loans with no related valuation allowance: Commercial 5,891 9,204 — 866 5,782 — Commercial real estate 13,679 14,216 — 11,700 17,359 — Construction and land development 1,113 1,113 — 740 780 — Residential real estate 2,668 2,943 — 2,156 2,380 — Consumer 13 14 — 21 21 — Lease financing — — — 282 282 — Total impaired loans with no related valuation allowance 23,364 27,490 — 15,765 26,604 — Total impaired loans: Commercial 8,885 12,270 2,401 4,103 9,079 526 Commercial real estate 20,618 27,395 576 13,997 20,867 329 Construction and land development 1,292 1,292 18 843 882 10 Residential real estate 6,543 7,449 589 6,184 7,085 566 Consumer 526 546 58 287 300 29 Lease financing 697 698 296 1,346 1,346 345 Total impaired loans (excluding PCI) $ 38,561 $ 49,650 $ 3,938 $ 26,760 $ 39,559 $ 1,805
Summary of aging status of recorded investments in loans by portfolio (excluding PCI loans)	The aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of September 30, 2018 and December 31, 2017 were as follows: 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 September 30, 2018 Commercial $ 2,508 $ 2,628 $ 1 $ 8,388 $ 13,525 $ 772,334 $ 785,859 Commercial real estate 1,995 276 793 19,162 22,226 1,669,917 1,692,143 Construction and land development 2,590 — — 1,239 3,829 227,084 230,913 Residential real estate 1,271 1,462 150 5,600 8,483 567,776 576,259 Consumer 3,974 2,292 33 327 6,626 575,535 582,161 Lease financing 2,933 749 26 671 4,379 238,620 242,999 Total (excluding PCI) $ 15,271 $ 7,407 $ 1,003 $ 35,387 $ 59,068 $ 4,051,266 $ 4,110,334 December 31, 2017 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 September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 496 $ 21 $ 517 $ 299 $ — $ 299 Commercial real estate 663 9,567 10,230 1,515 9,915 11,430 Construction and land development 53 — 53 58 — 58 Residential real estate 793 386 1,179 929 282 1,211 Consumer 166 — 166 — — — Lease financing — — — — — — Total loans (excluding PCI) $ 2,171 $ 9,974 $ 12,145 $ 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. The following table presents a summary of loans by portfolio that were restructured during the three and nine months ended September 30, 2018 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2018: 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 September 30, 2018: Troubled debt restructurings: Number of loans — — — — — — — Pre-modification outstanding balance $ — $ — $ — $ — $ — $ — $ — Post-modification outstanding balance — — — — — — — Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — For the nine months ended September 30, 2018: Troubled debt restructurings: Number of loans 1 — — 3 5 — 9 Pre-modification outstanding balance $ 23 $ — $ — $ 212 $ 19 $ — $ 254 Post-modification outstanding balance 22 — — 207 19 — 248 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — The following table presents a summary of loans by portfolio that were restructured during the three and nine months ended September 30, 2017 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 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 September 30, 2017: Troubled debt restructurings: Number of loans — — — 1 — — 1 Pre-modification outstanding balance $ — $ — $ — $ 91 $ — $ — $ 91 Post-modification outstanding balance — — — 90 — — 90 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — For the nine months ended September 30, 2017: Troubled debt restructurings: Number of loans 1 — — 3 — — 4 Pre-modification outstanding balance $ 362 $ — $ — $ 475 $ — $ — $ 837 Post-modification outstanding balance 339 — — 474 — — 813 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ —
Summary of changes in accretable yield for PCI loans	Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Balance, at beginning of period $ 11,114 $ 7,566 $ 5,732 $ 9,035 New loans purchased – Alpine acquisition — — 6,095 — New loans purchased – Centrue acquisition — — — 1,929 Accretion (1,308) (1,270) (3,659) (4,276) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) 136 1,678 1,150 (1,558) Reclassification from non-accretable 1,350 (1,325) 1,974 1,519 Balance, at end of period $ 11,292 $ 6,649 $ 11,292 $ 6,649
Summary of changes in allowance for loan losses, by loan portfolio	The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three and nine months ended September 30, 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 September 30, 2018: Balance, beginning of period $ 6,203 $ 5,377 $ 505 $ 2,742 $ 1,629 $ 1,790 $ 18,246 Provision for loan losses 1,117 (41) (98) (268) 727 666 2,103 Charge-offs — — — (69) (453) (816) (1,338) Recoveries 248 (52) 29 33 202 160 620 Balance, end of period $ 7,568 $ 5,284 $ 436 $ 2,438 $ 2,105 $ 1,800 $ 19,631 Changes in allowance for loan losses for the three months ended September 30, 2017: Balance, beginning of period $ 5,381 $ 3,996 $ 147 $ 3,377 $ 1,385 $ 1,138 $ 15,424 Provision for loan losses (745) 2,715 55 (433) (92) (11) 1,489 Charge-offs — — — (128) (105) (102) (335) Recoveries 54 56 13 47 81 32 283 Balance, end of period $ 4,690 $ 6,767 $ 215 $ 2,863 $ 1,269 $ 1,057 $ 16,861 Changes in allowance for loan losses for the nine months ended September 30, 2018: Balance, beginning of period $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Provision for loan losses 2,908 155 (156) (250) 1,554 1,752 5,963 Charge-offs (1,145) (259) — (209) (1,236) (1,775) (4,624) Recoveries 549 344 74 147 443 304 1,861 Balance, end of period $ 7,568 $ 5,284 $ 436 $ 2,438 $ 2,105 $ 1,800 $ 19,631 Changes in allowance for loan losses for the nine months ended September 30, 2017: Balance, beginning of period $ 5,920 $ 3,225 $ 345 $ 2,929 $ 930 $ 1,513 $ 14,862 Provision for loan losses (630) 3,577 (178) 113 678 (80) 3,480 Charge-offs (737) (470) — (455) (536) (658) (2,856) Recoveries 137 435 48 276 197 282 1,375 Balance, end of period $ 4,690 $ 6,767 $ 215 $ 2,863 $ 1,269 $ 1,057 $ 16,861 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 September 30, 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 September 30, 2018: Allowance for loan losses: Loans individually evaluated for impairment $ 2,375 $ 516 $ 5 $ 285 $ 13 $ 252 $ 3,446 Loans collectively evaluated for impairment 26 60 13 304 45 44 492 Non-impaired loans collectively evaluated for impairment 4,599 4,285 418 1,339 1,898 1,504 14,043 Loans acquired with deteriorated credit quality (1) 568 423 — 510 149 — 1,650 Total allowance for loan losses $ 7,568 $ 5,284 $ 436 $ 2,438 $ 2,105 $ 1,800 $ 19,631 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 8,632 $ 20,055 $ 1,166 $ 3,480 $ 13 $ 280 $ 33,626 Impaired loans collectively evaluated for impairment 253 563 126 3,063 513 417 4,935 Non-impaired loans collectively evaluated for impairment 776,974 1,671,525 229,621 569,716 581,635 242,302 4,071,773 Loans acquired with deteriorated credit quality (1) 5,688 19,783 8,567 9,875 2,035 — 45,948 Total recorded investment (loan balance) $ 791,547 $ 1,711,926 $ 239,480 $ 586,134 $ 584,196 $ 242,999 $ 4,156,282 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)	9 Months Ended
	Sep. 30, 2018
PREMISES AND EQUIPMENT
Summary of premises and equipment	September 30, December 31, (dollars in thousands) 2018 2017 Land $ 20,231 $ 16,109 Buildings and improvements 75,507 63,837 Furniture and equipment 29,236 25,843 Total 124,974 105,789 Accumulated depreciation (29,912) (29,627) Premises and equipment, net $ 95,062 $ 76,162

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	9 Months Ended
	Sep. 30, 2018
MORTGAGE SERVICING RIGHTS
Schedule of other mortgage notes serviced and changes in our mortgage servicing rights	Changes in our commercial FHA mortgage servicing rights were as follows for the three and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Mortgage servicing rights: Balance, beginning of period $ 56,268 $ 54,315 $ 55,714 $ 52,006 Originated servicing 176 1,433 2,087 5,020 Amortization (633) (650) (1,990) (1,928) Balance, end of period 55,811 55,098 55,811 55,098 Valuation allowances: Balance, beginning of period 3,887 2,750 3,254 1,711 Impairment 298 104 931 1,143 Balance, end of period 4,185 2,854 4,185 2,854 Mortgage servicing rights, net $ 51,626 $ 52,244 $ 51,626 $ 52,244 Fair value: At beginning of period $ 52,381 $ 51,565 $ 52,460 $ 50,355 At end of period $ 51,626 $ 52,244 $ 51,626 $ 52,244
Schedule of summary of key assumptions	Remaining Servicing Interest Years to Prepayment Servicing Discount (dollars in thousands) Fee Rate Maturity Rate Cost Rate September 30, 2018: Commercial FHA mortgage loans 0.13 % 3.66 % 30.2 8.25 % $ 1,000 11.02 % December 31, 2017: Commercial FHA mortgage loans 0.12 % 3.67 % 30.3 8.27 % $ 1,000 11.02 %

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2018
GOODWILL AND INTANGIBLE ASSETS
Schedule of intangible assets	September 30, 2018 December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 52,712 $ (23,262) $ 29,450 $ 31,612 $ (18,943) $ 12,669 Customer relationship intangibles 13,771 (3,993) 9,778 7,471 (3,208) 4,263 Total intangible assets $ 66,483 $ (27,255) $ 39,228 $ 39,083 $ (22,151) $ 16,932

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments, fair value and notional amounts	Notional Amount Fair Value Gain September 30, December 31, September 30, December 31, (dollars in thousands) 2018 2017 2018 2017 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 315,741 $ 345,152 $ 5,503 $ 6,331 Forward commitments to sell mortgage-backed securities 316,300 372,824 — 31 Total $ 632,041 $ 717,976 $ 5,503 $ 6,362

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2018
DEPOSITS
Schedule summarizes the classification of deposits	September 30, December 31, (dollars in thousands) 2018 2017 Noninterest-bearing demand $ 991,311 $ 724,443 Interest-bearing: Checking 1,047,914 785,934 Money market 836,151 646,426 Savings 445,640 281,212 Time 822,190 693,074 Total deposits $ 4,143,206 $ 3,131,089

SHORT-TERM BORROWINGS (Tables)

SHORT-TERM BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2018
SHORT-TERM BORROWINGS
Schedule of short term borrowings	Repurchase Agreements September 30, December 31, (dollars in thousands) 2018 2017 Outstanding at period-end $ 145,450 $ 156,126 Average amount outstanding 136,203 163,461 Maximum amount outstanding at any month end 173,387 196,278 Weighted average interest rate: During period 0.44 % 0.23 % End of period 0.63 % 0.28 %

FHLB ADVANCES AND OTHER BORRO_2

FHLB ADVANCES AND OTHER BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2018
FHLB ADVANCES AND OTHER BORROWINGS
Schedule of Federal Home Loan Bank (FHLB) advances	September 30, December 31, (dollars in thousands) 2018 2017 Midland States Bancorp, Inc. Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 4.38% and 3.63% at September 30, 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 $122.8 million and $145.0 million, at rates averaging 2.22% and 1.35% at September 30, 2018 and December 31, 2017, respectively – maturing through February 2023 and putable fixed rate of $495.0 million and $305.0 million at rates averaging 1.99% and 1.29% at September 30, 2018 and December 31, 2017, respectively – maturing through August 2025 with call provisions through December 2020 617,806 450,137 FHLB advances – variable rate, fixed term, at rates averaging 1.20% at December 31, 2017 – matured in March 2018 — 9,000 Other — 5 Total FHLB advances and other borrowings $ 652,253 $ 496,436

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2018 2017 2018 2017 Net income $ 8,497 $ 2,036 $ 23,085 $ 14,065 Preferred dividends declared (82) (83) (248) (102) Preferred stock, premium amortization 47 56 141 56 Net income available to common shareholders equity 8,462 2,009 22,978 14,019 Common shareholder dividends (5,208) (3,818) (14,617) (10,100) Unvested restricted stock award dividends (31) (19) (94) (59) Undistributed earnings to unvested restricted stock awards (18) — (49) (21) Undistributed earnings to common shareholders $ 3,205 $ (1,828) $ 8,218 $ 3,839 Basic Distributed earnings to common shareholders $ 5,208 $ 3,818 $ 14,617 $ 10,100 Undistributed earnings to common shareholders 3,205 (1,828) 8,218 3,839 Total common shareholders earnings, basic $ 8,413 $ 1,990 $ 22,835 $ 13,939 Diluted Distributed earnings to common shareholders $ 5,208 $ 3,818 $ 14,617 $ 10,100 Undistributed earnings to common shareholders 3,205 (1,828) 8,218 3,839 Total common shareholders earnings 8,413 1,990 22,835 13,939 Add back: Undistributed earnings reallocated from unvested restricted stock awards 1 — 1 1 Total common shareholders earnings, diluted $ 8,414 $ 1,990 $ 22,836 $ 13,940 Weighted average common shares outstanding, basic 23,855,805 19,265,409 22,868,256 17,274,746 Options and warrants 469,938 438,808 458,884 522,489 Weighted average common shares outstanding, diluted 24,325,743 19,704,217 23,327,140 17,797,235 Basic earnings per common share $ 0.35 $ 0.10 $ 1.00 $ 0.81 Diluted earnings per common share 0.35 0.10 0.98 0.78

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of assets and liabilities measured and recorded at fair value	September 30, 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 $ 24,533 $ 24,533 $ — $ — Government sponsored entity debt securities 75,373 — 75,373 — Agency mortgage-backed securities 343,697 — 343,697 — State and municipal securities 171,012 — 171,012 — Corporate securities 67,781 — 62,361 5,420 Equity securities 3,357 — 3,357 — Loans held for sale 35,246 — 35,246 — Interest rate lock commitments 5,503 — 5,503 — Interest rate swap contracts 390 — 390 — Total $ 726,892 $ 24,533 $ 696,939 $ 5,420 Liabilities Interest rate swap contracts $ 390 $ — $ 390 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 51,626 $ — $ — $ 51,626 Mortgage servicing rights held for sale 4,419 — — 4,419 Impaired loans 9,922 — 9,426 496 Other real estate owned 42 — 42 — Assets held for sale 1,687 — 1,687 — 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 Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Mortgage servicing rights $ 298 $ 104 $ 931 $ 1,830 Mortgage servicing rights held for sale 270 3,617 458 3,617 Impaired loans 989 1 3,906 564 Other real estate owned — — 126 180 Assets held for sale — — — 1,130 Total loss on assets measured on a nonrecurring basis $ 1,557 $ 3,722 $ 5,421 $ 7,321
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 and nine months ended September 30, 2018: Corporate Securities Three Months Nine Months Ended Ended September 30, September 30, (dollars in thousands) 2018 Balance, beginning of period $ 5,357 $ 4,779 Total realized in earnings (1) 67 187 Total unrealized in other comprehensive income 55 616 Net settlements (principal and interest) (59) (162) Balance, end of period $ 5,420 $ 5,420 (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 and nine months ended September 30, 2017: Non-Agency Corporate Mortgage-Backed Securities Securities Three Months Nine Months Three Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, (dollars in thousands) 2017 2017 Balance, beginning of period $ 4,740 7,480 $ — $ 1 Total realized in earnings (1) 54 235 — — Total unrealized in other comprehensive income — 242 — — Net settlements (principal and interest) (45) (3,208) — (1) Balance, end of period $ 4,749 4,749 $ — $ — (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 September 30, 2018 (in thousands): Non-recurring Valuation Unobservable fair value measurements Fair Value technique input / assumptions Range (weighted average) Mortgage servicing rights $ 51,626 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.25%) Discount rate 10.00% - 12.00% (11.02%) Impaired loans $ 496 Discounted cash flow Discount rate 5.00% - 8.10% (7.14%)
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 September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Residential loans held for sale $ 17,259 $ 784 $ 16,475 $ 12,243 $ 375 $ 11,868 Commercial loans held for sale 17,987 238 17,749 37,846 343 37,503 Total loans held for sale $ 35,246 $ 1,022 $ 34,224 $ 50,089 $ 718 $ 49,371 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 and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Residential loans held for sale $ 172 $ (245) $ 232 $ 10 Commercial loans held for sale (131) 89 (105) (527) Total loans held for sale $ 41 $ (156) $ 127 $ (517)
Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments	September 30, 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 $ 240,489 $ 240,489 $ 240,489 $ — $ — Federal funds sold 1,944 1,944 1,944 — — Investment securities available for sale 682,396 682,396 24,533 652,443 5,420 Equity securities 3,357 3,357 — 3,357 — Nonmarketable equity securities 44,931 44,931 — 44,931 — Loans, net 4,136,651 4,065,938 — — 4,065,938 Loans held for sale 35,246 35,246 — 35,246 — Accrued interest receivable 17,500 17,500 — 17,500 — Interest rate lock commitments 5,503 5,503 — 5,503 — Interest rate swap contracts 390 390 — 390 — Liabilities Deposits $ 4,143,206 $ 4,134,381 $ — $ 4,134,381 $ — Short-term borrowings 145,450 145,450 — 145,450 — FHLB and other borrowings 652,253 648,967 — 648,967 — Subordinated debt 94,093 60,991 — 60,991 — Trust preferred debentures 47,676 51,248 — 51,248 — Accrued interest payable 5,564 5,564 — 5,564 — Interest rate swap contracts 390 390 — 390 — 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 AN_2

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)	9 Months Ended
	Sep. 30, 2018
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
Schedule of loan commitments	September 30, December 31, (dollars in thousands) 2018 2017 Commitments to extend credit $ 706,519 $ 568,356 Financial guarantees – standby letters of credit 143,025 142,189

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2018
SEGMENT INFORMATION
Schedule of segment financial information	Commercial FHA Origination and Wealth (dollars in thousands) Banking Servicing Management Other Total Three Months Ended September 30, 2018 Net interest income (expense) $ 47,887 $ (177) $ 74 $ (2,703) $ 45,081 Provision for loan losses 2,103 — — — 2,103 Noninterest income 9,807 3,144 5,444 (123) 18,272 Noninterest expense 43,636 3,218 3,146 317 50,317 Income before income taxes 11,955 (251) 2,372 (3,143) 10,933 Income taxes (benefit) 2,246 (148) 344 (6) 2,436 Net income (loss) $ 9,709 $ (103) $ 2,028 $ (3,137) $ 8,497 Total assets $ 5,689,585 $ 113,463 $ 17,528 $ (95,964) $ 5,724,612 Three Months Ended September 30, 2017 Net interest income (expense) $ 38,597 $ (79) $ 117 $ (1,870) $ 36,765 Provision for loan losses 1,489 — — — 1,489 Noninterest income 8,093 3,967 3,475 (132) 15,403 Noninterest expense 42,145 3,910 2,122 186 48,363 Income (loss) before income taxes (benefit) 3,056 (22) 1,470 (2,188) 2,316 Income taxes (benefit) 730 (9) 482 (923) 280 Net income (loss) $ 2,326 $ (13) $ 988 $ (1,265) $ 2,036 Total assets $ 4,307,639 $ 121,514 $ 15,391 $ (96,783) $ 4,347,761 Commercial FHA Origination and Wealth (dollars in thousands) Banking Servicing Management Other Total Nine Months Ended September 30, 2018 Net interest income (expense) $ 139,497 $ (236) $ 232 $ (7,941) $ 131,552 Provision for loan losses 5,963 — — — 5,963 Noninterest income 29,041 7,112 14,832 (364) 50,621 Noninterest expense 127,220 11,474 8,281 (707) 146,268 Income (loss) before income taxes (benefit) 35,355 (4,598) 6,783 (7,598) 29,942 Income taxes (benefit) 8,089 (1,143) 1,373 (1,462) 6,857 Net income (loss) $ 27,266 $ (3,455) $ 5,410 $ (6,136) $ 23,085 Total assets $ 5,689,585 $ 113,463 $ 17,528 $ (95,964) $ 5,724,612 Nine Months Ended September 30, 2017 Net interest income (expense) $ 97,579 $ 325 $ 423 $ (4,701) $ 93,626 Provision for loan losses 3,480 — — — 3,480 Noninterest income 20,800 15,189 9,753 (378) 45,364 Noninterest expense 98,589 11,639 6,509 68 116,805 Income (loss) before income taxes (benefit) 16,310 3,875 3,667 (5,147) 18,705 Income taxes (benefit) 4,136 1,550 1,178 (2,224) 4,640 Net income (loss) $ 12,174 $ 2,325 $ 2,489 $ (2,923) $ 14,065 Total assets $ 4,307,639 $ 121,514 $ 15,391 $ (96,783) $ 4,347,761

REVENUE FROM CONTRACT WITH CU_2

REVENUE FROM CONTRACT WITH CUSTOMERS (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from contract with customers
Summary of noninterest income, segregated by revenue	Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 4,327 $ 2,434 $ 11,768 $ 7,181 Investment advisory fees 531 451 1,491 896 Investment brokerage fees 270 362 820 1,031 Other 339 228 783 646 Service charges on deposit accounts: Nonsufficient fund fees 2,098 1,467 5,539 2,810 Other 706 666 1,925 1,337 Interchange revenues 2,759 1,724 7,733 3,816 Other income: Merchant services revenue 448 310 1,246 802 Other 278 393 2,035 1,273 Noninterest income - out-of-scope of Topic 606 6,516 7,368 17,281 25,572 Total noninterest income $ 18,272 $ 15,403 $ 50,621 $ 45,364

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Effective income tax rate	21.00%	35.00%

ACQUISITIONS - Alpine (Details)

ACQUISITIONS - Alpine (Details) $ / shares in Units, $ in Thousands	Feb. 28, 2018USD ($)stateshares	Jun. 09, 2017USD ($)itemshares	Sep. 30, 2018USD ($)$ / shares	Sep. 30, 2017USD ($)$ / shares	Sep. 30, 2018USD ($)$ / shares	Sep. 30, 2017USD ($)$ / shares	Dec. 31, 2017USD ($)
Liabilities assumed:
Goodwill			$ 164,044		$ 164,044		$ 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	$ 22,000
Assets acquired:
Cash and cash equivalents	69,459
Investment securities, at fair value	301,800
Loans	786,186
Loans held for sale	3,416
Premises and equipment	18,126
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	27,400
Cash surrender value of life insurance policies	22,578
Other assets	4,770
Total assets acquired	1,244,182
Liabilities assumed:
Deposits	1,111,130
FHLB advances and other borrowings	18,127
Accrued interest payable	539
Deferred tax liabilities, net	1,994
Other liabilities	4,500
Total liabilities assumed	1,136,290
Net assets acquired	107,892
Goodwill	65,335
Total consideration paid	173,227
Business Acquisition, Pro Forma Information
Revenue (1)			63,353	$ 69,594	194,910	$ 210,873
Net income			$ 8,497	$ 5,196	$ 25,656	$ 25,278
Diluted earnings per common share | $ / shares			$ 0.35	$ 0.21	$ 1.05	$ 1.04
Intangible assets:
Total intangible assets	27,400
Alpine Bank | Core deposits
Intangible assets:
Total intangible assets	$ 21,100
Estimated useful lives:
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	13 years
Alpine Bank | Customer relationship
Intangible assets:
Total intangible assets	$ 6,300
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		$ 17,800
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			$ 9,100		$ 21,100
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			34,993		34,993
Gross contractual amounts receivable at acquisition date			50,342		50,342
Best estimate at acquisition date of contractual cash flows not expected to be collected			9,254		9,254
Acquired receivables subject to ASC 310-30 | Centrue
Acquired loan data
Fair value of acquired loans at acquisition date			11,381		11,381
Gross contractual amounts receivable at acquisition date			20,523		20,523
Best estimate at acquisition date of contractual cash flows not expected to be collected			7,227		7,227
Acquired receivables not subject to ASC 310-30 [member] | Alpine Bank
Acquired loan data
Fair value of acquired loans at acquisition date			751,193		751,193
Gross contractual amounts receivable at acquisition date			774,836		774,836
Best estimate at acquisition date of contractual cash flows not expected to be collected			4,244		4,244
Acquired receivables not subject to ASC 310-30 [member] | Centrue
Acquired loan data
Fair value of acquired loans at acquisition date			668,201		668,201
Gross contractual amounts receivable at acquisition date			821,338		821,338
Best estimate at acquisition date of contractual cash flows not expected to be collected			$ 4,835		$ 4,835

INVESTMENT SECURITIES - Classif

INVESTMENT SECURITIES - Classified (Details) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Available for sale securities
Amortized cost		$ 688,909,000		$ 448,124,000
Gross unrealized gains		4,135,000		5,782,000
Gross unrealized losses		10,648,000		3,381,000
Investment securities available for sale		682,396,000		450,525,000
Equity securities		3,357,000
Gross realized gains	$ 98,000	73,000	$ 219,000
U.S. Treasury securities
Available for sale securities
Amortized cost		25,028,000		28,005,000
Gross unrealized losses		495,000		287,000
Investment securities available for sale		24,533,000		27,718,000
Government sponsored entity debt securities
Available for sale securities
Amortized cost		76,841,000		25,445,000
Gross unrealized gains		18,000		41,000
Gross unrealized losses		1,486,000		275,000
Investment securities available for sale		75,373,000		25,211,000
Agency mortgage-backed securities
Available for sale securities
Amortized cost		349,501,000		233,606,000
Gross unrealized gains		573,000		882,000
Gross unrealized losses		6,377,000		2,101,000
Investment securities available for sale		343,697,000		232,387,000
State and municipal securities
Available for sale securities
Amortized cost		169,887,000		99,449,000
Gross unrealized gains		2,634,000		3,632,000
Gross unrealized losses		1,509,000		514,000
Investment securities available for sale		171,012,000		102,567,000
Corporate Securities
Available for sale securities
Amortized cost		67,652,000		58,904,000
Gross unrealized gains		910,000		1,087,000
Gross unrealized losses		781,000		179,000
Investment securities available for sale		$ 67,781,000		59,812,000
Equity securities
Available for sale securities
Amortized cost				2,715,000
Gross unrealized gains				140,000
Gross unrealized losses				25,000
Investment securities available for sale				$ 2,830,000

INVESTMENT SECURITIES - Continu

INVESTMENT SECURITIES - Continuous unrealized loss position (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Securities available for sale:
Less than 12 Months, Fair value	$ 393,646	$ 205,976
Less than 12 Months, Unrealized loss	5,725	2,467
12 Months or more, Fair value	115,154	36,842
12 Months or more, Unrealized loss	4,923	914
Total, Fair value	508,800	242,818
Total, Unrealized loss	$ 10,648	3,381
Unrealized loss
Debt Securities Available For Sale Unrealized Loss Position Number Of Positions | item	393
Aggregate depreciation	2.10%
U.S. Treasury securities
Securities available for sale:
Less than 12 Months, Fair value	$ 5,020	19,758
Less than 12 Months, Unrealized loss	2	251
12 Months or more, Fair value	19,513	7,960
12 Months or more, Unrealized loss	493	36
Total, Fair value	24,533	27,718
Total, Unrealized loss	495	287
Government sponsored entity debt securities
Securities available for sale:
Less than 12 Months, Fair value	59,562	24,168
Less than 12 Months, Unrealized loss	777	275
12 Months or more, Fair value	15,010
12 Months or more, Unrealized loss	709
Total, Fair value	74,572	24,168
Total, Unrealized loss	1,486	275
Agency mortgage-backed securities
Securities available for sale:
Less than 12 Months, Fair value	217,907	124,192
Less than 12 Months, Unrealized loss	3,612	1,500
12 Months or more, Fair value	60,798	19,530
12 Months or more, Unrealized loss	2,765	601
Total, Fair value	278,705	143,722
Total, Unrealized loss	6,377	2,101
State and municipal securities
Securities available for sale:
Less than 12 Months, Fair value	82,326	29,338
Less than 12 Months, Unrealized loss	891	331
12 Months or more, Fair value	15,619	5,889
12 Months or more, Unrealized loss	618	183
Total, Fair value	97,945	35,227
Total, Unrealized loss	1,509	514
Corporate Securities
Securities available for sale:
Less than 12 Months, Fair value	28,831	5,917
Less than 12 Months, Unrealized loss	443	85
12 Months or more, Fair value	4,214	3,463
12 Months or more, Unrealized loss	338	94
Total, Fair value	33,045	9,380
Total, Unrealized loss	$ 781	179
Equity securities
Securities available for sale:
Less than 12 Months, Fair value		2,603
Less than 12 Months, Unrealized loss		25
Total, Fair value		2,603
Total, Unrealized loss		$ 25

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Amortized cost of available-for-sale securities, by contractual maturity
Within one year	$ 51,775,000		$ 51,775,000
After one year through five years	419,588,000		419,588,000
After five years through ten years	177,434,000		177,434,000
After ten years	40,112,000		40,112,000
Total, single maturity date	688,909,000		688,909,000
Fair Value of available-for-sale securities, by contractual maturity
Within one year	51,705,000		51,705,000
After one year through five years	414,879,000		414,879,000
After five years through ten years	175,784,000		175,784,000
After ten years	40,028,000		40,028,000
Total, single maturity date	682,396,000		682,396,000
Proceeds from Sale of Available-for-sale Securities
Proceed from sale of investments	0	$ 2,700,000	16,805,000	$ 11,250,000
Gross realized gains/losses
Gross realized gains		98,000	73,000	219,000
Investment securities available for sale	682,396,000		682,396,000		$ 450,525,000
Gross realized losses	25,000	$ 0	25,000	$ 0
Equity securities	3,357,000		3,357,000
Equity securities, unrealized gains			26,000
Equity securities, unrealized losses			67,000
Sales of equity securities	0		(7,789,000)
Equity securities, realized losses	$ 53,000		53,000
Equity securities, realized gains			$ 0

LOANS - Summary of loans (Detai

LOANS - Summary of loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Summary of loans
Loans	$ 4,156,282		$ 4,156,282		$ 3,226,678
Loans, additional information
Net deferred loan fees	15,400		15,400		10,100
Unearned discounts	25,400		25,400		20,700
Loans held for sale	35,246		35,246		50,089
Proceeds from sales of loans held for sale			424,874	$ 679,217
Directors, executive officers, principal shareholders and affiliates
Loans to certain directors, executive officers, principal shareholders and their affiliates:
Loans outstanding to related parties	25,600		25,600		22,400
New loans to related parties and other additions	6,900		8,600
Repayments from related parties and other reductions	1,700		5,400
Commercial real estate
Summary of loans
Loans	2,742,953		2,742,953		2,196,528
Commercial real estate | Commercial
Summary of loans
Loans	791,547		791,547		555,930
Commercial real estate | Commercial real estate
Summary of loans
Loans	1,711,926		1,711,926		1,440,011
Commercial real estate | Construction and land development
Summary of loans
Loans	239,480		239,480		200,587
Other loan portfolio | Residential real estate
Summary of loans
Loans	586,134		586,134		453,552
Other loan portfolio | Consumer
Summary of loans
Loans	584,196		584,196		371,455
Other loan portfolio | Lease financing
Summary of loans
Loans	242,999		242,999		205,143
Commercial and Residential Loan
Loans, additional information
Loans held for sale	35,200		35,200		50,100
Proceeds from sales of loans held for sale	155,000	$ 206,200	424,900	$ 679,200
Non-PCI loans
Summary of loans
Loans	4,110,334		4,110,334		3,204,217
Non-PCI loans | Commercial real estate
Summary of loans
Loans	2,708,915		2,708,915		2,180,186
Non-PCI loans | Commercial real estate | Commercial
Summary of loans
Loans	785,859		785,859		553,257
Non-PCI loans | Commercial real estate | Commercial real estate
Summary of loans
Loans	1,692,143		1,692,143		1,427,076
Non-PCI loans | Commercial real estate | Construction and land development
Summary of loans
Loans	230,913		230,913		199,853
Non-PCI loans | Other loan portfolio
Summary of loans
Loans	1,401,419		1,401,419		1,024,031
Non-PCI loans | Other loan portfolio | Residential real estate
Summary of loans
Loans	576,259		576,259		447,602
Non-PCI loans | Other loan portfolio | Consumer
Summary of loans
Loans	582,161		582,161		371,286
Non-PCI loans | Other loan portfolio | Lease financing
Summary of loans
Loans	242,999		242,999		205,143
PCI loans
Summary of loans
Loans	45,948		45,948		22,461
Customer outstanding balances	60,700		60,700		32,800
PCI loans | Commercial real estate
Summary of loans
Loans	34,038		34,038		16,342
PCI loans | Commercial real estate | Commercial
Summary of loans
Loans	5,688		5,688		2,673
PCI loans | Commercial real estate | Commercial real estate
Summary of loans
Loans	19,783		19,783		12,935
PCI loans | Commercial real estate | Construction and land development
Summary of loans
Loans	8,567		8,567		734
PCI loans | Other loan portfolio | Residential real estate
Summary of loans
Loans	9,875		9,875		5,950
PCI loans | Other loan portfolio | Consumer
Summary of loans
Loans	$ 2,035		$ 2,035		$ 169

LOANS - Risk category (Details)

LOANS - Risk category (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)region	Dec. 31, 2017USD ($)
Risk category
Number of main regions | region	4
Loans and Leases Receivable, Gross, Total	$ 4,156,282	$ 3,226,678
Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,742,953	2,196,528
Non-PCI loans
Risk category
Loans and Leases Receivable, Gross, Total	4,110,334	3,204,217
Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,708,915	2,180,186
Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	2,571,740	2,087,430
Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	58,040	23,787
Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	50,127	42,413
Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	28,789	14,533
Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	219	12,023
Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	1,401,419	1,024,031
Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	1,393,653	1,016,214
Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	7,766	7,817
Commercial | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	791,547	555,930
Commercial | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	785,859	553,257
Commercial | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	735,936	510,928
Commercial | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	22,686	12,290
Commercial | Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	18,849	27,718
Commercial | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	8,388	1,266
Commercial | Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total		1,055
Commercial real estate | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,711,926	1,440,011
Commercial real estate | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,692,143	1,427,076
Commercial real estate | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	1,606,393	1,384,630
Commercial real estate | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	35,310	11,497
Commercial real estate | Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	31,278	14,695
Commercial real estate | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	19,162	12,482
Commercial real estate | Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total		3,772
Construction and land development | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	239,480	200,587
Construction and land development | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	230,913	199,853
Construction and land development | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	229,411	191,872
Construction and land development | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	44
Construction and land development | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	1,239	785
Construction and land development | Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	219	7,196
Residential real estate | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	586,134	453,552
Residential real estate | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	576,259	447,602
Residential real estate | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	569,716	441,418
Residential real estate | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	6,543	6,184
Consumer | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	584,196	371,455
Consumer | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	582,161	371,286
Consumer | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	581,635	370,999
Consumer | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	526	287
Lease financing | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	242,999	205,143
Lease financing | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	242,999	205,143
Lease financing | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	242,302	203,797
Lease financing | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	$ 697	$ 1,346

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0	$ 0	$ 0
Additional interest income that would have been recorded had they been current	421,000	124,000	1,300,000	532,000
Recognized interest income on loans modified under troubled debt restructurings	17,000	$ 75,000	40,000	$ 59,000
PCI loans
Summary of impaired loans
Total impaired loans	$ 45,900,000		$ 45,900,000		$ 22,500,000

LOANS - Impaired Loans Individu

LOANS - Impaired Loans Individually Evaluated (excluding PCI loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Impaired loans (excluding PCI loans) by portfolio
Difference between the recorded investment and unpaid principal balance	$ 11,000	$ 12,800
Impaired | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	15,197	10,995
With a valuation allowance, Unpaid Principal Balance	22,160	12,955
With no related valuation allowance, Recorded Investment	23,364	15,765
With no related valuation allowance, Unpaid Principal Balance	27,490	26,604
Total impaired loans	38,561	26,760
Total, Unpaid Principal Balance	49,650	39,559
Total, Related Valuation Allowance	3,938	1,805
Commercial | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	2,994	3,237
With a valuation allowance, Unpaid Principal Balance	3,066	3,297
With no related valuation allowance, Recorded Investment	5,891	866
With no related valuation allowance, Unpaid Principal Balance	9,204	5,782
Total impaired loans	8,885	4,103
Total, Unpaid Principal Balance	12,270	9,079
Total, Related Valuation Allowance	2,401	526
Commercial real estate | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	6,939	2,297
With a valuation allowance, Unpaid Principal Balance	13,179	3,508
With no related valuation allowance, Recorded Investment	13,679	11,700
With no related valuation allowance, Unpaid Principal Balance	14,216	17,359
Total impaired loans	20,618	13,997
Total, Unpaid Principal Balance	27,395	20,867
Total, Related Valuation Allowance	576	329
Construction and land development | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	179	103
With a valuation allowance, Unpaid Principal Balance	179	102
With no related valuation allowance, Recorded Investment	1,113	740
With no related valuation allowance, Unpaid Principal Balance	1,113	780
Total impaired loans	1,292	843
Total, Unpaid Principal Balance	1,292	882
Total, Related Valuation Allowance	18	10
Residential real estate | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	3,875	4,028
With a valuation allowance, Unpaid Principal Balance	4,506	4,705
With no related valuation allowance, Recorded Investment	2,668	2,156
With no related valuation allowance, Unpaid Principal Balance	2,943	2,380
Total impaired loans	6,543	6,184
Total, Unpaid Principal Balance	7,449	7,085
Total, Related Valuation Allowance	589	566
Consumer | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	513	266
With a valuation allowance, Unpaid Principal Balance	532	279
With no related valuation allowance, Recorded Investment	13	21
With no related valuation allowance, Unpaid Principal Balance	14	21
Total impaired loans	526	287
Total, Unpaid Principal Balance	546	300
Total, Related Valuation Allowance	58	29
Lease financing | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	697	1,064
With a valuation allowance, Unpaid Principal Balance	698	1,064
With no related valuation allowance, Recorded Investment		282
With no related valuation allowance, Unpaid Principal Balance		282
Total impaired loans	697	1,346
Total, Unpaid Principal Balance	698	1,346
Total, Related Valuation Allowance	$ 296	$ 345

LOANS - Aging Status of recorde

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	$ 4,156,282	$ 3,226,678
Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	35,387	21,317
Total Past Due	59,068	39,364
Current	4,051,266	3,164,853
Loans and Leases Receivable, Gross, Total	4,110,334	3,204,217
Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	15,271	12,464
Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	7,407	2,941
Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	1,003	2,642
Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,742,953	2,196,528
Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,708,915	2,180,186
Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,401,419	1,024,031
Commercial | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	791,547	555,930
Commercial | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	8,388	1,266
Total Past Due	13,525	7,263
Current	772,334	545,994
Loans and Leases Receivable, Gross, Total	785,859	553,257
Commercial | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,508	3,282
Commercial | Commercial real estate | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	2,628	177
Commercial | Commercial real estate | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	1	2,538
Commercial real estate | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,711,926	1,440,011
Commercial real estate | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	19,162	12,482
Total Past Due	22,226	16,228
Current	1,669,917	1,410,848
Loans and Leases Receivable, Gross, Total	1,692,143	1,427,076
Commercial real estate | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,995	3,116
Commercial real estate | Commercial real estate | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	276	630
Commercial real estate | Commercial real estate | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	793
Construction and land development | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	239,480	200,587
Construction and land development | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	1,239	785
Total Past Due	3,829	2,738
Current	227,084	197,115
Loans and Leases Receivable, Gross, Total	230,913	199,853
Construction and land development | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,590	1,953
Residential real estate | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	586,134	453,552
Residential real estate | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	5,600	5,204
Total Past Due	8,483	6,784
Current	567,776	440,818
Loans and Leases Receivable, Gross, Total	576,259	447,602
Residential real estate | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,271	897
Residential real estate | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	1,462	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	150	51
Consumer | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	584,196	371,455
Consumer | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	327	234
Total Past Due	6,626	4,613
Current	575,535	366,673
Loans and Leases Receivable, Gross, Total	582,161	371,286
Consumer | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	3,974	2,824
Consumer | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	2,292	1,502
Consumer | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	33	53
Lease financing | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	242,999	205,143
Lease financing | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	671	1,346
Total Past Due	4,379	1,738
Current	238,620	203,405
Loans and Leases Receivable, Gross, Total	242,999	205,143
Lease financing | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,933	$ 392
Lease financing | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	749
Lease financing | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	$ 26

LOANS - TDRs by portfolio (Deta

LOANS - TDRs by portfolio (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 455,000	$ 240,000
Unfunded commitments	0	0
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,171,000	2,801,000
TDR's Nonaccrual	9,974,000	10,197,000
Total	12,145,000	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	496,000	299,000
TDR's Nonaccrual	21,000
Total	517,000	299,000
Commercial real estate | Commercial real estate | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	663,000	1,515,000
TDR's Nonaccrual	9,567,000	9,915,000
Total	10,230,000	11,430,000
Construction and land development | Commercial real estate | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	53,000	58,000
Total	53,000	58,000
Residential real estate | Other loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	793,000	929,000
TDR's Nonaccrual	386,000	282,000
Total	1,179,000	$ 1,211,000
Consumer | Other loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	166,000
Total	$ 166,000

LOANS - TDRs by portfolio - res

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)loan	Sep. 30, 2018USD ($)loan	Sep. 30, 2017USD ($)loan
Troubled debt restructurings:
Number of loans | loan	1	9	4
Pre-modification outstanding balance	$ 91	$ 254	$ 837
Post-modification outstanding balance	$ 90	$ 248	$ 813
Commercial | Commercial real estate
Troubled debt restructurings:
Number of loans | loan		1	1
Pre-modification outstanding balance		$ 23	$ 362
Post-modification outstanding balance		$ 22	$ 339
Residential real estate | Other loan portfolio
Troubled debt restructurings:
Number of loans | loan	1	3	3
Pre-modification outstanding balance	$ 91	$ 212	$ 475
Post-modification outstanding balance	$ 90	$ 207	$ 474
Consumer | Other loan portfolio
Troubled debt restructurings:
Number of loans | loan		5
Pre-modification outstanding balance		$ 19
Post-modification outstanding balance		$ 19

LOANS - PCI Loans - Changes in

LOANS - PCI Loans - Changes in the accretable yield for PCI loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Summary of loans
Accretion recorded as loan interest income	$ 42,978	$ 35,276	$ 125,589	$ 90,146
PCI loans
Changes in the accretable yield for PCI loans
Balance, beginning of period	11,114	7,566	5,732	9,035
Accretion	(1,308)	(1,270)	(3,659)	(4,276)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)	136	1,678	1,150	(1,558)
Reclassification from (to) non-accretable	1,350	(1,325)	1,974	1,519
Balance, end of period	$ 11,292	$ 6,649	11,292	6,649
Alpine Bank | PCI loans
Changes in the accretable yield for PCI loans
New loans purchased			$ 6,095
Centrue | PCI loans
Changes in the accretable yield for PCI loans
New loans purchased				$ 1,929

LOANS - Allowance for loan loss

LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes in allowance for loan losses :
Beginning balance	$ 18,246	$ 15,424	$ 16,431	$ 14,862
Provision for loan losses	2,103	1,489	5,963	3,480
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(1,338)	(335)	(4,624)	(2,856)
Loan recoveries	620	283	1,861	1,375
Ending balance	$ 19,631	$ 16,861	$ 19,631	$ 16,861

LOANS - Allowance for loan lo_2

LOANS - Allowance for loan losses by loan portfolio and recorded investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Changes in allowance for loan losses :
Beginning balance	$ 18,246	$ 15,424	$ 16,431	$ 14,862
Provision for loan losses	2,103	1,489	5,963	3,480
Charge-offs	(1,338)	(335)	(4,624)	(2,856)
Recoveries	620	283	1,861	1,375
Ending balance	19,631	16,861	19,631	16,861
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					$ 3,446	$ 1,070
Loans collectively evaluated for impairment					492	735
Non-impaired loans collectively evaluated for impairment					14,043	13,097
Loans acquired with deteriorated credit quality					1,650	1,529
Total	18,246	15,424	16,431	14,862	19,631	16,431
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					33,626	19,908
Impaired loans collectively evaluated for impairment					4,935	6,852
Non-impaired loans collectively evaluated for impairment					4,071,773	3,177,457
Loans acquired with deteriorated credit quality					45,948	22,461
Loans and Leases Receivable, Gross, Total					4,156,282	3,226,678
PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total					45,948	22,461
Commercial real estate
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total					2,742,953	2,196,528
Commercial real estate | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total					34,038	16,342
Commercial | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	6,203	5,381	5,256	5,920
Provision for loan losses	1,117	(745)	2,908	(630)
Charge-offs			(1,145)	(737)
Recoveries	248	54	549	137
Ending balance	7,568	4,690	7,568	4,690
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					2,375	221
Loans collectively evaluated for impairment					26	305
Non-impaired loans collectively evaluated for impairment					4,599	4,230
Loans acquired with deteriorated credit quality					568	500
Total	6,203	5,381	5,256	5,920	7,568	5,256
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					8,632	1,285
Impaired loans collectively evaluated for impairment					253	2,818
Non-impaired loans collectively evaluated for impairment					776,974	549,154
Loans acquired with deteriorated credit quality					5,688	2,673
Loans and Leases Receivable, Gross, Total					791,547	555,930
Commercial | Commercial real estate | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total					5,688	2,673
Commercial real estate | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	5,377	3,996	5,044	3,225
Provision for loan losses	(41)	2,715	155	3,577
Charge-offs			(259)	(470)
Recoveries	(52)
Recoveries		56	344	435
Ending balance	5,284	6,767	5,284	6,767
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					516	281
Loans collectively evaluated for impairment					60	48
Non-impaired loans collectively evaluated for impairment					4,285	4,379
Loans acquired with deteriorated credit quality					423	336
Total	5,377	3,996	5,044	3,225	5,284	5,044
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					20,055	13,554
Impaired loans collectively evaluated for impairment					563	443
Non-impaired loans collectively evaluated for impairment					1,671,525	1,413,079
Loans acquired with deteriorated credit quality					19,783	12,935
Loans and Leases Receivable, Gross, Total					1,711,926	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					19,783	12,935
Construction and land development | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	505	147	518	345
Provision for loan losses	(98)	55	(156)	(178)
Recoveries	29	13	74	48
Ending balance	436	215	436	215
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					5	5
Loans collectively evaluated for impairment					13	5
Non-impaired loans collectively evaluated for impairment					418	504
Loans acquired with deteriorated credit quality						4
Total	505	147	518	345	436	518
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					1,166	797
Impaired loans collectively evaluated for impairment					126	46
Non-impaired loans collectively evaluated for impairment					229,621	199,010
Loans acquired with deteriorated credit quality					8,567	734
Loans and Leases Receivable, Gross, Total					239,480	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					8,567	734
Residential real estate | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	2,742	3,377	2,750	2,929
Provision for loan losses	(268)	(433)	(250)	113
Charge-offs	(69)	(128)	(209)	(455)
Recoveries	33	47	147	276
Ending balance	2,438	2,863	2,438	2,863
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					285	302
Loans collectively evaluated for impairment					304	264
Non-impaired loans collectively evaluated for impairment					1,339	1,644
Loans acquired with deteriorated credit quality					510	540
Total	2,742	3,377	2,750	2,929	2,438	2,750
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					3,480	3,700
Impaired loans collectively evaluated for impairment					3,063	2,484
Non-impaired loans collectively evaluated for impairment					569,716	441,418
Loans acquired with deteriorated credit quality					9,875	5,950
Loans and Leases Receivable, Gross, Total					586,134	453,552
Residential real estate | Other loan portfolio | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total					9,875	5,950
Consumer | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	1,629	1,385	1,344	930
Provision for loan losses	727	(92)	1,554	678
Charge-offs	(453)	(105)	(1,236)	(536)
Recoveries	202	81	443	197
Ending balance	2,105	1,269	2,105	1,269
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					13
Loans collectively evaluated for impairment					45	29
Non-impaired loans collectively evaluated for impairment					1,898	1,166
Loans acquired with deteriorated credit quality					149	149
Total	1,629	1,385	1,344	930	2,105	1,344
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					13	4
Impaired loans collectively evaluated for impairment					513	283
Non-impaired loans collectively evaluated for impairment					581,635	370,999
Loans acquired with deteriorated credit quality					2,035	169
Loans and Leases Receivable, Gross, Total					584,196	371,455
Consumer | Other loan portfolio | PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total					2,035	169
Lease financing | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	1,790	1,138	1,519	1,513
Provision for loan losses	666	(11)	1,752	(80)
Charge-offs	(816)	(102)	(1,775)	(658)
Recoveries	160	32	304	282
Ending balance	1,800	1,057	1,800	1,057
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					252	261
Loans collectively evaluated for impairment					44	84
Non-impaired loans collectively evaluated for impairment					1,504	1,174
Total	$ 1,790	$ 1,138	$ 1,519	$ 1,513	1,800	1,519
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					280	568
Impaired loans collectively evaluated for impairment					417	778
Non-impaired loans collectively evaluated for impairment					242,302	203,797
Loans and Leases Receivable, Gross, Total					$ 242,999	$ 205,143

PREMISES AND EQUIPMENT, NET (De

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 124,974		$ 124,974		$ 105,789
Accumulated depreciation	(29,912)		(29,912)		(29,627)
Premises and equipment, net	95,062		95,062		76,162
Depreciation	1,500	$ 1,300	4,552	$ 3,666
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	20,231		20,231		16,109
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	75,507		75,507		63,837
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 29,236		$ 29,236		$ 25,843

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Commercial FHA Mortgage Loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	$ 3,930	$ 3,980
Residential mortgage loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	$ 1,350	$ 1,990

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in MSR (Details) - USD ($) $ in Thousands	Jan. 02, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016
Mortgage servicing rights:
Balance, beginning of period		$ 56,268	$ 54,315	$ 55,714	$ 52,006	$ 52,006
Balance, end of period		55,811	55,098	55,811	55,098	55,714
Valuation allowances:
Balance, beginning of period		3,887	2,750	3,254	1,711	1,711
Impairment		298	104	931	1,143
Balance, end of period		4,185	2,854	4,185	2,854	3,254
Mortgage servicing rights, net		51,626	52,244	51,626	52,244
Fair Value		51,626	52,244	51,626	52,244	52,460	$ 52,381	$ 51,565	$ 50,355
Loss on mortgage servicing rights held for sale		(270)	(3,617)	(458)	(3,617)
Mortgage servicing rights held for sale		4,419		4,419		10,176
Commercial FHA Mortgage Loans
Mortgage servicing rights:
Originated servicing		176	1,433	2,087	5,020
Amortization		(633)	$ (650)	(1,990)	$ (1,928)
Residential mortgage loans
Valuation allowances:
Loss on mortgage servicing rights held for sale						$ (4,100)
Sale of mortgage servicing rights held for sale	$ 10,200
Mortgage servicing rights held for sale		$ 4,400		$ 4,400

MORTGAGE SERVICING RIGHTS - Sum

MORTGAGE SERVICING RIGHTS - Summary of key assumptions (Details) - Commercial FHA Mortgage Loans - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Assumptions Used to Estimate Fair Value
Servicing Fee	0.13%	0.12%
Interest Rate	3.66%	3.67%
Remaining Years to Maturity	30 years 2 months 12 days	30 years 3 months 18 days
Prepayment Rate	8.25%	8.27%
Servicing Cost	$ 1,000	$ 1,000
Discount Rate	11.02%	11.02%

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Feb. 28, 2018	Sep. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill		$ 164,044	$ 98,624
Alpine Bank
Goodwill [Line Items]
Goodwill	$ 65,335
Amount of increase in goodwill	$ 65,300

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	Feb. 28, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Finite-lived intangible assets
Gross Carrying Amount		$ 66,483		$ 66,483		$ 39,083
Accumulated Amortization		(27,255)		(27,255)		(22,151)
Total		39,228		39,228		16,932
Amortization of intangible assets		1,853	$ 1,187	5,104	$ 2,291
Core deposits
Finite-lived intangible assets
Gross Carrying Amount		52,712		52,712		31,612
Accumulated Amortization		(23,262)		(23,262)		(18,943)
Total		29,450		29,450		12,669
Customer relationship
Finite-lived intangible assets
Gross Carrying Amount		13,771		13,771		7,471
Accumulated Amortization		(3,993)		(3,993)		(3,208)
Total		$ 9,778		$ 9,778		$ 4,263
Alpine Bank
Finite-lived intangible assets
Total intangible assets	$ 27,400
Alpine Bank | Core deposits
Finite-lived intangible assets
Total intangible assets	21,100
Alpine Bank | Customer relationship
Finite-lived intangible assets
Total intangible assets	$ 6,300
Amortization period	13 years

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 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	$ 1,200,000			$ 48,000
Net losses recognized on derivative instruments		$ 1,100,000	$ 941,000
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	632,041,000		632,041,000		$ 717,976,000
Fair value of asset derivatives	5,503,000		5,503,000		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	315,741,000		315,741,000		345,152,000
Fair value of asset derivatives	5,503,000		5,503,000		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	316,300,000		316,300,000		372,824,000
Fair value of asset derivatives					31,000
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	9,600,000		9,600,000		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	390,000		390,000		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	$ 390,000		$ 390,000		$ 17,000

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Classification of deposits
Noninterest-bearing demand	$ 991,311	$ 724,443
Interest-bearing:
Checking	1,047,914	785,934
Money market	836,151	646,426
Savings	445,640	281,212
Time	822,190	693,074
Total deposits	$ 4,143,206	$ 3,131,089

SHORT-TERM BORROWINGS (Details)

SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Outstanding at period-end	$ 145,450	$ 156,126
Average amount outstanding	136,203	163,461
Maximum amount outstanding at any month end	$ 173,387	$ 196,278
Weighted average interest rate:
During period	0.44%	0.23%
End of period	0.63%	0.28%
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 146,400	$ 157,200
Line of credit	0	0
Federal funds lines of credit	55,000
Commercial real estate
Short-Term Borrowings
Loans and Leases Receivable, Gross, Carrying Amount, Commercial	78,900	36,500
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 68,400	$ 32,500

FHLB ADVANCES AND OTHER BORRO_3

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 652,253	$ 496,436
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued	2,636	2,636
Preferred stock, par value	$ 2	$ 2
Advances	$ 0	$ 0
FHLB advances, collateral for mortgage and home equity line of credit loans	2,220,000	1,860,000
Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Face Amount		$ 40,000
Principal payment on term loan	$ 1,400
LIBOR | Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate		2.25%
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 | Term loan
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 34,266	$ 37,113
Midland States Bancorp, Inc | LIBOR | Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate	2.25%
Interest rate during the period	4.38%	3.63%
Midland States Bancorp, Inc | Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 181	$ 181
Midland States Bank | Obligations under capital leases implicit interest rate of 1.70% maturing through July 2018
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		5
Midland States Bank | Fixed Rate Term Loan
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	617,806	450,137
Midland States Bank | Fixed rate, fixed term maturing through February 2023
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 122,800	$ 145,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	2.22%	1.35%
Midland States Bank | Putable fixed rate loan maturing through August 2025
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 495,000	$ 305,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	1.99%	1.29%
Midland States Bank | Variable rate, fixed term maturing through March 2018
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%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 8,497	$ 2,036	$ 23,085	$ 14,065
Preferred dividends declared	(82)	(83)	(248)	(102)
Preferred stock, premium amortization	47	56	141	56
Net income available to common shareholders	8,462	2,009	22,978	14,019
Common shareholder dividends	(5,208)	(3,818)	(14,617)	(10,100)
Unvested restricted stock award dividends	(31)	(19)	(94)	(59)
Undistributed earnings to unvested restricted stock awards	(18)		(49)	(21)
Undistributed earnings to common shareholders	3,205	(1,828)	8,218	3,839
Basic
Common shareholder dividends	(5,208)	(3,818)	(14,617)	(10,100)
Undistributed earnings to common shareholders	3,205	(1,828)	8,218	3,839
Net income available to common shareholders	8,413	1,990	22,835	13,939
Diluted
Common shareholder dividends	(5,208)	(3,818)	(14,617)	(10,100)
Undistributed earnings to common shareholders	3,205	(1,828)	8,218	3,839
Net income available to common shareholders	8,413	1,990	22,835	13,939
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	1		1	1
Total common shareholders earnings, diluted	$ 8,414	$ 1,990	$ 22,836	$ 13,940
Weighted average common shares outstanding, basic (In shares)	23,855,805	19,265,409	22,868,256	17,274,746
Weighted average common shares outstanding, diluted (In shares)	24,325,743	19,704,217	23,327,140	17,797,235
Basic earnings per common share (In dollars per share)	$ 0.35	$ 0.10	$ 1	$ 0.81
Diluted earnings per common share (In dollars per share)	$ 0.35	$ 0.10	$ 0.98	$ 0.78
Options and warrants
Add back:
Options and warrants	469,938	438,808	458,884	522,489

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Assets
Investment securities available for sale	$ 682,396		$ 682,396		$ 450,525
Equity securities	3,357		3,357
Loans held for sale	35,246		35,246		50,089
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	4,419		4,419		10,176
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights	298	$ 104	931	$ 1,830
Mortgage servicing rights held for sale	270	3,617	458	3,617
Impaired loans	989	1	3,906	564
Other real estate owned			126	180
Assets held for sale				1,130
Total loss on assets measured on a nonrecurring basis	1,557	$ 3,722	5,421	$ 7,321
U.S. Treasury securities
Assets
Investment securities available for sale	24,533		24,533		27,718
Government sponsored entity debt securities
Assets
Investment securities available for sale	75,373		75,373		25,211
State and municipal securities
Assets
Investment securities available for sale	171,012		171,012		102,567
Corporate Securities
Assets
Investment securities available for sale	67,781		67,781		59,812
Equity securities
Assets
Investment securities available for sale					2,830
Level 1
Assets
Investment securities available for sale	24,533		24,533		27,718
Level 2
Assets
Investment securities available for sale	652,443		652,443		418,028
Equity securities	3,357		3,357
Loans held for sale	35,246		35,246		50,089
Level 2 | Interest rate lock commitments
Assets
Derivative Assets	5,503		5,503		6,331
Level 2 | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets					31
Level 2 | Interest rate swap contracts
Assets
Derivative Assets	390		390		17
Liabilities
Derivative liability	390		390		17
Level 3
Assets
Investment securities available for sale	5,420		5,420		4,779
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	51,600		51,600		56,400
Recurring member
Assets
Loans held for sale	35,246		35,246		50,089
Total Assets	726,892		726,892		506,993
Recurring member | U.S. Treasury securities
Assets
Investment securities available for sale	24,533		24,533		27,718
Recurring member | Government sponsored entity debt securities
Assets
Investment securities available for sale	75,373		75,373		25,211
Recurring member | Agency mortgage-backed securities
Assets
Investment securities available for sale	343,697		343,697		232,387
Recurring member | State and municipal securities
Assets
Investment securities available for sale	171,012		171,012		102,567
Recurring member | Corporate Securities
Assets
Investment securities available for sale	67,781		67,781		59,812
Recurring member | Equity securities
Assets
Equity securities	3,357		3,357		2,830
Recurring member | Interest rate lock commitments
Assets
Derivative Assets	5,503		5,503		6,331
Recurring member | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets					31
Recurring member | Interest rate swap contracts
Assets
Derivative Assets	390		390		17
Liabilities
Derivative liability	390		390		17
Recurring member | Level 1
Assets
Total Assets	24,533		24,533		27,718
Recurring member | Level 1 | U.S. Treasury securities
Assets
Investment securities available for sale	24,533		24,533		27,718
Recurring member | Level 2
Assets
Loans held for sale	35,246		35,246		50,089
Total Assets	696,939		696,939		474,496
Recurring member | Level 2 | Government sponsored entity debt securities
Assets
Investment securities available for sale	75,373		75,373		25,211
Recurring member | Level 2 | Agency mortgage-backed securities
Assets
Investment securities available for sale	343,697		343,697		232,387
Recurring member | Level 2 | State and municipal securities
Assets
Investment securities available for sale	171,012		171,012		102,567
Recurring member | Level 2 | Corporate Securities
Assets
Investment securities available for sale	62,361		62,361		55,033
Recurring member | Level 2 | Equity securities
Assets
Equity securities	3,357		3,357		2,830
Recurring member | Level 2 | Interest rate lock commitments
Assets
Derivative Assets	5,503		5,503		6,331
Recurring member | Level 2 | Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets					31
Recurring member | Level 2 | Interest rate swap contracts
Assets
Derivative Assets	390		390		17
Liabilities
Derivative liability	390		390		17
Recurring member | Level 3
Assets
Total Assets	5,420		5,420		4,779
Recurring member | Level 3 | Corporate Securities
Assets
Investment securities available for sale	5,420		5,420		4,779
Non recurring member
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	51,626		51,626		56,352
Mortgage servicing rights held for sale	4,419		4,419		10,176
Impaired loans	9,922		9,922		9,385
Other real estate owned	42		42		801
Assets held for sale	1,687		1,687		3,358
Non recurring member | Level 1
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale					10,176
Non recurring member | Level 2
Assets measured at fair value on a non-recurring basis:
Impaired loans	9,426		9,426		7,631
Other real estate owned	42		42		801
Assets held for sale	1,687		1,687		3,358
Non recurring member | Level 3
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	51,626		51,626		56,352
Mortgage servicing rights held for sale	4,419		4,419
Impaired loans	$ 496		$ 496		$ 1,754

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Corporate Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 5,357	$ 4,740	$ 4,779	$ 7,480
Total realized in earnings	67	54	187	235
Total unrealized in other comprehensive income	55		616	242
Net settlements (principal and interest)	(59)	(45)	(162)	(3,208)
Ending balance	$ 5,420	$ 4,749	5,420	$ 4,749
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 INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Non recurring member
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Mortgage servicing rights	$ 51,626	$ 56,352
Impaired loans	9,922	9,385
Level 3
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Mortgage servicing rights	51,600	56,400
Level 3 | Discounted cash flow | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Mortgage servicing rights	51,626
Level 3 | Non recurring member
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Mortgage servicing rights	51,626	56,352
Impaired loans	496	$ 1,754
Level 3 | Non recurring member | Discounted cash flow | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	$ 496
Minimum | Level 3 | Non recurring member | Discounted cash flow | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	8.00%
Discount rate	10.00%
Minimum | Level 3 | Non recurring member | Discounted cash flow | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	5.00%
Maximum | Level 3 | Non recurring member | Discounted cash flow | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	18.00%
Discount rate	12.00%
Maximum | Level 3 | Non recurring member | Discounted cash flow | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	8.10%
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	8.25%
Discount rate	11.02%
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	7.14%

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS- Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 35,246		$ 35,246		$ 50,089
Difference	1,022		1,022		718
Contractual principal	34,224		34,224		49,371
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	41	$ (156)	127	$ (517)
Residential loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	17,259		17,259		12,243
Difference	784		784		375
Contractual principal	16,475		16,475		11,868
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	172	(245)	232	10
Commercial real estate
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	17,987		17,987		37,846
Difference	238		238		343
Contractual principal	17,749		17,749		$ 37,503
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ (131)	$ 89	$ (105)	$ (527)

FAIR VALUE OF FINANCIAL INSTR_7

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Investment securities available for sale	$ 682,396	$ 450,525
Equity securities	3,357
Loans held for sale	35,246	50,089
Accrued interest receivable	17,500	11,715
Liabilities
Trust preferred debentures	47,676	47,330
Accrued interest payable	5,564	2,531
Level 1
Assets
Cash and due from banks	240,489	214,519
Federal funds sold	1,944	683
Investment securities available for sale	24,533	27,718
Level 2
Assets
Investment securities available for sale	652,443	418,028
Equity securities	3,357
Nonmarketable equity securities	44,931	34,796
Loans held for sale	35,246	50,089
Accrued interest receivable	17,500	11,715
Liabilities
Deposits	4,134,381	3,127,626
Short-term borrowings	145,450	156,126
FHLB and other borrowings	648,967	494,634
Subordinated debt	60,991	90,860
Trust preferred debentures	51,248	46,069
Accrued interest payable	5,564	2,531
Level 3
Assets
Investment securities available for sale	5,420	4,779
Loans, net	4,065,938	3,200,016
Carrying value
Assets
Cash and due from banks	240,489	214,519
Federal funds sold	1,944	683
Investment securities available for sale	682,396	450,525
Equity securities	3,357
Nonmarketable equity securities	44,931	34,796
Loans, net	4,136,651	3,210,247
Loans held for sale	35,246	50,089
Accrued interest receivable	17,500	11,715
Liabilities
Deposits	4,143,206	3,131,089
Short-term borrowings	145,450	156,126
FHLB and other borrowings	652,253	496,436
Subordinated debt	94,093	93,972
Trust preferred debentures	47,676	45,379
Accrued interest payable	5,564	2,531
Fair value
Assets
Cash and due from banks	240,489	214,519
Federal funds sold	1,944	683
Investment securities available for sale	682,396	450,525
Equity securities	3,357
Nonmarketable equity securities	44,931	34,796
Loans, net	4,065,938	3,200,016
Loans held for sale	35,246	50,089
Accrued interest receivable	17,500	11,715
Liabilities
Deposits	4,134,381	3,127,626
Short-term borrowings	145,450	156,126
FHLB and other borrowings	648,967	494,634
Subordinated debt	60,991	90,860
Trust preferred debentures	51,248	46,069
Accrued interest payable	5,564	2,531
Interest rate lock commitments | Level 2
Assets
Derivative Assets	5,503	6,331
Interest rate lock commitments | Carrying value
Assets
Derivative Assets	5,503	6,331
Interest rate lock commitments | Fair value
Assets
Derivative Assets	5,503	6,331
Forward commitments to sell mortgage-backed securities | Level 2
Assets
Derivative Assets		31
Forward commitments to sell mortgage-backed securities | Carrying value
Assets
Derivative Assets		31
Forward commitments to sell mortgage-backed securities | Fair value
Assets
Derivative Assets		31
Interest rate swap contracts | Level 2
Assets
Derivative Assets	390	17
Liabilities
Derivative Liability	390	17
Interest rate swap contracts | Carrying value
Assets
Derivative Assets	390	17
Liabilities
Derivative Liability	390	17
Interest rate swap contracts | Fair value
Assets
Derivative Assets	390	17
Liabilities
Derivative Liability	$ 390	$ 17

COMMITMENTS, CONTINGENCIES AN_3

COMMITMENTS, CONTINGENCIES AND CREDIT RISK - Maturities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Anticipated material loss	$ 0		$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 17,000	11,000	$ 17,000
Liability for unresolved repurchase demands	492,000		492,000		$ 371,000
Commitments to extend credit
Loan commitments	706,519,000		706,519,000		568,356,000
Financial guarantees - standby letters of credit
Loan commitments	$ 143,025,000		$ 143,025,000		$ 142,189,000

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 45,081	$ 36,765	$ 131,552	$ 93,626
Provision for loan losses	2,103	1,489	5,963	3,480
Noninterest income	18,272	15,403	50,621	45,364
Noninterest expense	50,317	48,363	146,268	116,805
Income (loss) before income taxes (benefit)	10,933	2,316	29,942	18,705
Income taxes (benefit)	2,436	280	6,857	4,640
Net income (loss)	8,497	2,036	23,085	14,065
Total assets	5,724,612	4,347,761	5,724,612	4,347,761	$ 4,412,701
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	47,887	38,597	139,497	97,579
Provision for loan losses	2,103	1,489	5,963	3,480
Noninterest income	9,807	8,093	29,041	20,800
Noninterest expense	43,636	42,145	127,220	98,589
Income (loss) before income taxes (benefit)	11,955	3,056	35,355	16,310
Income taxes (benefit)	2,246	730	8,089	4,136
Net income (loss)	9,709	2,326	27,266	12,174
Total assets	5,689,585	4,307,639	5,689,585	4,307,639
Commercial FHA Origination and Servicing
Segment Reporting Information [Line Items]
Net interest income (expense)	(177)	(79)	(236)	325
Noninterest income	3,144	3,967	7,112	15,189
Noninterest expense	3,218	3,910	11,474	11,639
Income (loss) before income taxes (benefit)	(251)	(22)	(4,598)	3,875
Income taxes (benefit)	(148)	(9)	(1,143)	1,550
Net income (loss)	(103)	(13)	(3,455)	2,325
Total assets	113,463	121,514	113,463	121,514
Wealth Management
Segment Reporting Information [Line Items]
Net interest income (expense)	74	117	232	423
Noninterest income	5,444	3,475	14,832	9,753
Noninterest expense	3,146	2,122	8,281	6,509
Income (loss) before income taxes (benefit)	2,372	1,470	6,783	3,667
Income taxes (benefit)	344	482	1,373	1,178
Net income (loss)	2,028	988	5,410	2,489
Total assets	17,528	15,391	17,528	15,391
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(2,703)	(1,870)	(7,941)	(4,701)
Noninterest income	(123)	(132)	(364)	(378)
Noninterest expense	317	186	(707)	68
Income (loss) before income taxes (benefit)	(3,143)	(2,188)	(7,598)	(5,147)
Income taxes (benefit)	(6)	(923)	(1,462)	(2,224)
Net income (loss)	(3,137)	(1,265)	(6,136)	(2,923)
Total assets	$ (95,964)	$ (96,783)	$ (95,964)	$ (96,783)

REVENUE FROM CONTRACT WITH CU_3

REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	$ 6,516		$ 17,281
Total noninterest income	18,272	$ 15,403	$ 50,621	$ 45,364
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		7,368		25,572
Total noninterest income		15,403		45,364
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	4,327		$ 11,768
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		2,434		7,181
Investment advisory fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	531		1,491
Investment advisory fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		451		896
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	270		820
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		362		1,031
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	339		783
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		228		646
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	2,098		5,539
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		1,467		2,810
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	706		1,925
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		666		1,337
Interchange revenues
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	2,759		7,733
Interchange revenues | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		1,724		3,816
Merchant services revenue
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	448		1,246
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		310		802
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	$ 278		$ 2,035
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		$ 393		$ 1,273