Midland States Bancorp (MSBI) 10-Q 9 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information
Entity Registrant Name	Midland States Bancorp, Inc.
Entity Central Index Key	0001466026
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		24,063,471
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 275,939	$ 210,780
Federal funds sold	541	2,920
Cash and cash equivalents	276,480	213,700
Investment securities available for sale, at fair value	652,739	657,451
Equity securities, at fair value	3,413	3,334
Loans	4,092,106	4,137,551
Allowance for loan losses	(23,091)	(20,903)
Total loans, net	4,069,015	4,116,648
Loans held for sale, at fair value	16,851	30,401
Premises and equipment, net	94,514	94,840
Operating lease right-of-use asset	10,677
Other real estate owned	2,020	3,483
Nonmarketable equity securities	46,009	42,472
Accrued interest receivable	16,669	16,560
Mortgage servicing rights, at lower of cost or fair value	52,957	53,447
Mortgage servicing rights held for sale	257	3,545
Intangible assets	35,566	37,376
Goodwill	164,673	164,673
Cash surrender value of life insurance policies	139,686	138,783
Accrued income taxes receivable	5,070	8,809
Deferred tax assets, net		1,251
Other assets	55,184	50,900
Total assets	5,641,780	5,637,673
Deposits:
Noninterest-bearing	941,344	972,164
Interest-bearing	3,094,944	3,102,006
Total deposits	4,036,288	4,074,170
Short-term borrowings	115,832	124,235
FHLB advances and other borrowings	669,009	640,631
Subordinated debt	94,174	94,134
Trust preferred debentures	47,918	47,794
Accrued interest payable	6,254	4,855
Deferred tax liabilities, net	868
Operating lease liabilities	11,198
Other liabilities	36,071	43,329
Total liabilities	5,017,612	5,029,148
Shareholders' Equity:
Preferred stock, Series H, $2 par value; $1,000 per share liquidation value; 2,636 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018	2,733	2,781
Common stock, $0.01 par value; 40,000,000 shares authorized; 23,827,438 and 23,751,798 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	238	238
Capital surplus	475,811	473,833
Retained earnings	141,906	133,781
Accumulated other comprehensive income (loss)	3,480	(2,108)
Total shareholders' equity	624,168	608,525
Total liabilities and shareholders' equity	$ 5,641,780	$ 5,637,673

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
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	23,827,438	23,751,798
Common stock, shares outstanding	23,827,438	23,751,798

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Loans:
Taxable	$ 51,882	$ 41,031
Tax exempt	974	467
Loans held for sale	299	428
Investment securities:
Taxable	3,683	2,643
Tax exempt	1,066	1,016
Nonmarketable equity securities	621	399
Federal funds sold and cash investments	907	521
Total interest income	59,432	46,505
Interest expense:
Deposits	7,363	4,117
Short-term borrowings	237	124
FHLB advances and other borrowings	3,847	1,871
Subordinated debt	1,514	1,514
Trust preferred debentures	870	694
Total interest expense	13,831	8,320
Net interest income	45,601	38,185
Provision for loan losses	3,243	2,006
Net interest income after provision for loan losses	42,358	36,179
Noninterest income:
Commercial FHA revenue	3,270	3,330
Residential mortgage banking revenue	834	1,418
Wealth management revenue	4,953	4,079
Service charges on deposit accounts	2,520	1,967
Interchange revenue	2,680	2,045
Gain on sales of investment securities, net		65
Gain on sales of other real estate owned	66	307
Other income	2,752	3,291
Total noninterest income	17,075	16,502
Noninterest expense:
Salaries and employee benefits	22,039	28,395
Occupancy and equipment	4,832	4,252
Data processing	4,891	4,479
FDIC insurance	435	548
Professional	2,073	3,749
Marketing	1,234	1,206
Communications	671	1,576
Loan expense	360	524
Other real estate owned	93	90
Amortization of intangible assets	1,810	1,675
Other expense	2,659	3,005
Total noninterest expense	41,097	49,499
Income before income taxes	18,336	3,182
Income taxes	4,354	1,376
Net income	13,982	1,806
Preferred stock dividends and premium amortization	34	36
Net income available to common shareholders	$ 13,948	$ 1,770
Per common share data:
Basic earnings per common share	$ 0.58	$ 0.08
Diluted earnings per common share	$ 0.57	$ 0.08
Weighted average common shares outstanding	23,998,119	20,901,738
Weighted average diluted common shares outstanding	24,204,661	21,351,511

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 13,982	$ 1,806
Investment securities available for sale:
Unrealized gains (losses) that occurred during the period	7,708	(3,337)
Reclassification adjustment for realized net gains on sales of investment securities included in net income		(65)
Income tax effect	(2,120)	924
Change in investment securities available for sale, net of tax	5,588	(2,478)
Other comprehensive income (loss), net of tax	5,588	(2,478)
Total comprehensive income (loss)	$ 19,570	$ (672)

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred stock	Common stock	Capital surplus	Retained earnings	Accumulated other comprehensive (loss) income	Total
Beginning Balance at Dec. 31, 2017	$ 2,970	$ 191	$ 330,148	$ 114,478	$ 1,758	$ 449,545
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				1,806		1,806
Other comprehensive income (loss)					(2,478)	(2,478)
Common dividends declared				(4,239)		(4,239)
Preferred dividends declared				(83)		(83)
Preferred stock, premium amortization	(47)			47		47
Acquisition of Alpine Bancorporation, Inc.		45	139,876			139,921
Share-based compensation expense			433			433
Issuance of common stock under employee benefit plans			480			480
Ending Balance at Mar. 31, 2018	2,923	236	470,937	112,009	(720)	585,385
Beginning Balance at Dec. 31, 2018	2,781	238	473,833	133,781	(2,108)	608,525
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				13,982		13,982
Other comprehensive income (loss)					5,588	5,588
Common dividends declared				(5,823)		(5,823)
Preferred dividends declared				(82)		(82)
Preferred stock, premium amortization	(48)			48		48
Share-based compensation expense			846			846
Issuance of common stock under employee benefit plans			1,132			1,132
Ending Balance at Mar. 31, 2019	$ 2,733	$ 238	$ 475,811	$ 141,906	$ 3,480	$ 624,168

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Common dividend declared, per share	$ 0.2425	$ 0.22

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 13,982	$ 1,806
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	3,243	2,006
Depreciation on premises and equipment	1,601	1,454
Amortization of intangible assets	1,810	1,675
Amortization of operating lease right-of-use asset	708
Payments on operating lease obligations	(741)
Share-based compensation expense	846	433
Increase in cash surrender value of life insurance	(903)	(822)
Investment securities amortization, net	964	689
Gain on sales of investment securities, net		(65)
Gain on sales of other real estate owned	(66)	(307)
Impairment of other real estate owned	16
Origination of loans held for sale	(84,231)	(122,749)
Proceeds from sales of loans held for sale	99,323	154,020
Gain on loans sold and held for sale	(3,121)	(3,951)
Loss on disposals of premises and equipment	7	26
Amortization of mortgage servicing rights	678	863
Impairment of mortgage servicing rights	25	133
Net change in operating assets and liabilities:
Accrued interest receivable	(109)	1,081
Accrued interest payable	1,399	1,698
Accrued income taxes receivable	3,739	448
Operating lease liabilities	741
Other assets	(1,920)	(131)
Other liabilities	(7,252)	(429)
Net cash provided by operating activities	29,998	37,878
Investment securities available for sale:
Purchases	(15,565)	(17,375)
Sales		1,609
Maturities and payments	27,023	26,022
Equity Securities:
Purchases	(16)	(14)
Net decrease (increase) in loans	44,390	(13,051)
Proceeds from sale of premises and equipment		7
Purchases of premises and equipment	(1,282)	(1,373)
Proceeds from sales of mortgage servicing rights held for sale	3,288	10,176
Purchases of nonmarketable equity securities	(7,971)	(7,610)
Sales of nonmarketable equity securities	4,434	5,576
Proceeds from sales of other real estate owned	1,164	1,621
Net cash acquired in acquisition		36,153
Net cash provided by investing activities	55,465	41,741
Cash flows from financing activities:
Net decrease in deposits	(37,882)	(7,299)
Net decrease in short-term borrowings	(8,403)	(25,433)
Proceeds from FHLB borrowings	195,000	217,000
Payments made on FHLB borrowings	(165,196)	(144,064)
Payments made on other borrowings	(1,429)
Cash dividends paid on preferred stock	(82)	(83)
Cash dividends paid on common stock	(5,823)	(4,239)
Proceeds from issuance of common stock under employee benefit plans	1,132	480
Net cash (used in) provided by financing activities	(22,683)	36,362
Net increase in cash and cash equivalents	62,780	115,981
Cash and cash equivalents:
Beginning of period	213,700	215,202
End of period	276,480	331,183
Cash payments for:
Interest paid on deposits and borrowed funds	12,432	6,083
Income tax paid	$ 337	29
Supplemental disclosures of noncash investing and financing activities:
Transfer of investment securities available for sale to equity securities		2,830
Transfer of loans to other real estate owned		$ 346

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION	3 Months Ended
	Mar. 31, 2019
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 provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management, and insurance and financial planning services. In addition, multifamily and healthcare facility Federal Housing Administration (“FHA”) financing is provided through Love Funding Corporation (“Love Funding”), our non-bank subsidiary. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; residential mortgage loan originations, sales and servicing; and, from time to time, gains on sales of assets. Our income sources also include Love Funding’s commercial FHA loan origination and servicing income. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for loan losses and income tax expense.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
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, 2018, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2019. 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. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included i n the Company's 2018 Annual Report on Form 10-K. There has been one change to our significant accounting policies since December 31, 2018, which is described below. 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 2018 amounts have been made to conform to the 2019 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other period. Leases The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. The right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. 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 ASU 2016-02, “Leases (Topic 842)” – In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ,” which requires lessees to recognize leases on-balance sheet and to disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-10, “ Codification Improvements to Topic 842, Leases;” and ASU No. 2018-11, “Targeted Improvements.” The new standard established a ROU model, that requires a lessee to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months. Under the new guidance, leases are classified as either finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of income. The Company adopted the new standard on January 1, 2019, and used the effective date as our date of initial application . A modified retrospective adoption approach is required, applying the new standard to all existing leases in effect at the adoption date and new leases going forward. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to January 1, 2019. This update also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company elected the “package of practical expedients” permitted by ASU 2018-11, which allows us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for ongoing accounting. The Company elected the short-term lease recognition exemption for our office equipment leases. This means, for those leases that qualify, we did recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. At the adoption date, the Company reported increased assets and liabilities of approximately $12.1 million on its consolidated balance sheet as a result of recognizing ROU assets and lease liabilities related to non-cancelable operating lease agreements for office space. T he adoption of this guidance did not have a material effect to its consolidated statement of income. 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 (“CECL”).” 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. As previously disclosed, the Company has established a cross-functional governance structure, which oversees overall strategy for implementation of Topic 326. Additionally, a working group was formed and has developed a project plan focused on understanding the ASU, researching issues, data requirements, technology solutions and future state processes. The project plan is targeting the data and model validation completion during the second quarter of 2019, with parallel processing of our existing allowance for loan loss model with CECL prior to implementation. The working group has identified 12 distinct loan portfolios for which a model has been or is in the process of being developed. The Company is focused on completing data and model validation, refining assumptions and continued review of the models. The Company also continues to focus on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls and considering various reporting disclosures. The Company also continues to believe that the adoption of the standard will result in an overall increase in the allowance for loan losses to cover credit losses over the estimated life of the financial assets. However, the magnitude of the increase in its allowance for loan losses at the adoption date will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. FASB ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” – In August 2018, the FASB issued ASU No. 2018-13 to improve the disclosure requirements on fair value measurements. The amendment removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements. The update also adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update become effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is not expected to have a material impact.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2019
ACQUISITIONS
ACQUISITIONS	Note 3 – Acquisitions Alpine Bancorporation, Inc. On February 28, 2018, the Company completed its acquisition of Alpine Bancorporation, Inc. (“Alpine”) and its banking subsidiary, Alpine Bank & Trust Co. (“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 $22.4 million of transaction and integration costs associated with the acquisition were expensed as incurred. As of February 28, 2019, the Company finalized its valuation of all assets acquired liabilities assumed in its acquisition of Alpine, resulting in no material change to acquisition accounting adjustments.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
	Mar. 31, 2019
INVESTMENT SECURITIES
INVESTMENT SECURITIES	Note 4 – Investment Securities Investment securities as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities U.S. Treasury securities $ 25,009 $ — $ 241 $ 24,768 Government sponsored entity debt securities 75,620 133 166 75,587 Agency mortgage-backed securities 321,127 1,840 1,516 321,451 State and municipal securities 146,557 4,501 146 150,912 Corporate securities 79,626 863 468 80,021 Total available for sale securities $ 647,939 $ 7,337 $ 2,537 $ 652,739 Equity securities $ 3,413 December 31, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities U.S. Treasury securities $ 25,018 $ — $ 368 $ 24,650 Government sponsored entity debt securities 76,554 17 887 75,684 Agency mortgage-backed securities 329,690 371 3,756 326,305 State and municipal securities 156,795 3,282 815 159,262 Corporate securities 72,302 383 1,135 71,550 Total available for sale securities $ 660,359 $ 4,053 $ 6,961 $ 657,451 Equity securities $ 3,334 Unrealized losses and fair values for investment securities available for sale as of March 31, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: March 31, 2019 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 $ 5,004 $ 1 $ 19,764 $ 240 $ 24,768 $ 241 Government sponsored entity debt securities 6,056 8 34,855 158 40,911 166 Agency mortgage-backed securities 13,390 26 124,358 1,490 137,748 1,516 State and municipal securities 5,429 2 16,839 144 22,268 146 Corporate securities 16,096 186 8,804 282 24,900 468 Total available for sale securities $ 45,975 $ 223 $ 204,620 $ 2,314 $ 250,595 $ 2,537 December 31, 2018 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss Available for sale securities U.S. Treasury securities $ 5,012 $ 1 $ 19,638 $ 367 $ 24,650 $ 368 Government sponsored entity debt securities 51,717 195 23,223 692 74,940 887 Agency mortgage-backed securities 139,115 528 126,561 3,228 265,676 3,756 State and municipal securities 15,791 146 27,692 669 43,483 815 Corporate securities 32,616 575 8,535 560 41,151 1,135 Total available for sale securities $ 244,251 $ 1,445 $ 205,649 $ 5,516 $ 449,900 $ 6,961 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 March 31, 2019, 141 investment securities available for sale had unrealized losses with aggregate depreciation of 1.0% 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 March 31, 2019. For the three months ended March 31, 2019 and 2018 , 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 March 31, 2019. 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 $ 45,564 $ 45,610 After one year through five years 110,602 111,624 After five years through ten years 142,380 145,013 After ten years 28,266 29,041 Mortgage-backed securities 321,127 321,451 Total available for sale securities $ 647,939 $ 652,739 There were no sales of securities available for sale during the three months ended March 31, 2019. Proceeds from the sale of securities available for sale were $1.6 million for the three months ended March 31, 2018. Gross realized gains and gross realized losses from the sale of securities available for sale were $65,000 and $0 for the three months ended March 31, 2018, respectively. During the three months ended March 31, 2019 and 2018, the Company recognized net unrealized gains of $67,000 and $111,000, respectively, which was recorded as other income in the consolidated statements of income. There were no sales of equity securities during the three months ended March 31, 2019 and 2018.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2019
LOANS
LOANS	Note 5 – Loans The following table presents total loans outstanding by portfolio, which includes non-purchased credit impaired (“Non-PCI”) loans and purchased credit impaired (“PCI”) loans, as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans (1) Total Loans Loans (1) Total Commercial $ 839,731 $ 3,358 $ 843,089 $ 806,027 $ 4,857 $ 810,884 Commercial real estate 1,542,997 17,430 1,560,427 1,619,903 19,252 1,639,155 Construction and land development 233,332 6,044 239,376 223,898 8,331 232,229 Total commercial loans 2,616,060 26,832 2,642,892 2,649,828 32,440 2,682,268 Residential real estate 560,427 8,624 569,051 569,289 8,759 578,048 Consumer 599,151 1,480 600,631 611,408 1,776 613,184 Lease financing 279,532 — 279,532 264,051 — 264,051 Total loans $ 4,055,170 $ 36,936 $ 4,092,106 $ 4,094,576 $ 42,975 $ 4,137,551 (1) The unpaid principal balance for PCI loans totaled $50.5 million and $56.9 million as of March 31, 2019 and December 31, 2018, respectively. Total loans include net deferred loan fees of $7.3 million and $11.6 million at March 31, 2019 and December 31, 2018, respectively, and unearned income of $32.9 million and $29.2 million within the lease financing portfolio at March 31, 2019 and December 31, 2018, respectively. At March 31, 2019 and December 31, 2018, the Company had commercial and residential loans held for sale totaling $16.9 million and $30.4 million, respectively. During the three months ended March 31, 2019 and 2018, the Company sold commercial and residential real estate loans with proceeds totaling $99.3 million and $154.0 million, respectively. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates totaled $23.5 million and $26.5 million at March 31, 2019 and December 31, 2018, respectively. During the three months ended March 31, 2019, there were $1.5 million of new loans and other additions, while repayments and other reductions totaled $4.5 million. Credit Quality Monitoring The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. Our equipment leasing business 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 March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Commercial Construction Commercial Construction Real and Land Real and Land (dollars in thousands) Commercial Estate Development Total Commercial Estate Development Total Acceptable credit quality $ 788,619 $ 1,449,480 $ 227,953 $ 2,466,052 $ 748,296 $ 1,536,127 $ 218,798 $ 2,503,221 Special mention 21,121 14,627 2,522 38,270 35,103 15,306 3,448 53,857 Substandard 21,498 51,574 890 73,962 14,139 46,976 — 61,115 Substandard – nonaccrual 8,493 27,316 1,168 36,977 8,489 21,494 1,171 31,154 Doubtful — — — — — — — — Not graded — — 799 799 — — 481 481 Total (excluding PCI) $ 839,731 $ 1,542,997 $ 233,332 $ 2,616,060 $ 806,027 $ 1,619,903 $ 223,898 $ 2,649,828 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 March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Residential Lease Residential Lease (dollars in thousands) Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 552,674 $ 598,618 $ 278,284 $ 1,429,576 $ 562,019 $ 610,839 $ 263,094 $ 1,435,952 Impaired 7,753 533 1,248 9,534 7,270 569 957 8,796 Total (excluding PCI) $ 560,427 $ 599,151 $ 279,532 $ 1,439,110 $ 569,289 $ 611,408 $ 264,051 $ 1,444,748 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 March 31, 2019 and December 31, 2018 do not include $36.9 million and $43.0 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 months ended March 31, 2019 and 2018 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 $653,000 and $500,000 for the three months ended March 31, 2019 and 2018, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $32,000 and $30,000 for the three months ended March 31, 2019 and 2018, respectively. The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 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 $ 8,191 $ 8,356 $ 4,730 $ 7,945 $ 8,102 $ 4,448 Commercial real estate 5,592 6,221 2,437 7,496 13,844 523 Construction and land development 125 169 14 171 171 54 Residential real estate 4,457 5,203 512 4,055 4,662 554 Consumer 522 547 41 428 444 45 Lease financing 436 436 146 766 766 361 Total impaired loans with a valuation allowance 19,323 20,932 7,880 20,861 27,989 5,985 Impaired loans with no related valuation allowance: Commercial 708 4,124 — 983 4,392 — Commercial real estate 24,019 30,492 — 16,372 16,921 — Construction and land development 1,093 1,093 — 1,136 1,136 — Residential real estate 3,296 3,557 — 3,215 3,516 — Consumer 11 13 — 141 145 — Lease financing 812 813 — 191 191 — Total impaired loans with no related valuation allowance 29,939 40,092 — 22,038 26,301 — Total impaired loans: Commercial 8,899 12,480 4,730 8,928 12,494 4,448 Commercial real estate 29,611 36,713 2,437 23,868 30,765 523 Construction and land development 1,218 1,262 14 1,307 1,307 54 Residential real estate 7,753 8,760 512 7,270 8,178 554 Consumer 533 560 41 569 589 45 Lease financing 1,248 1,249 146 957 957 361 Total impaired loans (excluding PCI) $ 49,262 $ 61,024 $ 7,880 $ 42,899 $ 54,290 $ 5,985 The difference between a loan’s recorded investment and the unpaid principal balance represents: (1) a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan’s principal balance and management’s assessment that the full collection of the loan balance is not likely and/or (2) payments received on nonaccrual loans that are fully applied to principal on the loan’s recorded investment as compared to being applied to principal and interest on the unpaid customer principal and interest balance. The difference between the recorded investment and the unpaid principal balance on loans was $11.8 million and $11.4 million at March 31, 2019 and December 31, 2018, respectively. The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the three months ended March 31, 2019 and 2018 are included in the table below: Three Months Ended March 31, 2019 2018 Interest Income Interest Income Average Recognized Average Recognized Recorded While on Recorded While on (dollars in thousands) Investment Impaired Status Investment Impaired Status Impaired loans with a valuation allowance: Commercial $ 8,240 $ 6 $ 2,291 $ 10 Commercial real estate 5,563 27 2,104 20 Construction and land development 141 — 101 1 Residential real estate 4,465 10 3,579 10 Consumer 527 — 208 — Lease financing 436 — 1,014 — Total impaired loans with a valuation allowance 19,372 43 9,297 41 Impaired loans with no related valuation allowance: Commercial 723 — 518 — Commercial real estate 24,153 — 13,731 — Construction and land development 1,110 1 739 — Residential real estate 3,306 2 2,370 1 Consumer 12 — 42 — Lease financing 813 — 247 — Total impaired loans with no related valuation allowance 30,117 3 17,647 1 Total impaired loans: Commercial 8,963 6 2,809 10 Commercial real estate 29,716 27 15,835 20 Construction and land development 1,251 1 840 1 Residential real estate 7,771 12 5,949 11 Consumer 539 — 250 — Lease financing 1,249 — 1,261 — Total impaired loans (excluding PCI) $ 49,489 $ 46 $ 26,944 $ 42 The aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of March 31, 2019 and December 31, 2018 were as follows: Accruing 30-59 60-89 Past Due Days Days 90 Days Total Total (dollars in thousands) Past Due Past Due or More Nonaccrual Past Due Current Loans March 31, 2019 Commercial $ 2,323 $ 2,147 $ — $ 8,493 $ 12,963 $ 826,768 $ 839,731 Commercial real estate 4,862 1,160 — 27,316 33,338 1,509,659 1,542,997 Construction and land development 1,020 160 — 1,168 2,348 230,984 233,332 Residential real estate 1,305 716 — 6,884 8,905 551,522 560,427 Consumer 4,735 3,365 — 431 8,531 590,620 599,151 Lease financing 1,829 377 255 993 3,454 276,078 279,532 Total (excluding PCI) $ 16,074 $ 7,925 $ 255 $ 45,285 $ 69,539 $ 3,985,631 $ 4,055,170 December 31, 2018 Commercial $ 4,013 $ 2,581 $ 4 $ 8,489 $ 15,087 $ 790,940 $ 806,027 Commercial real estate 1,667 945 149 21,494 24,255 1,595,648 1,619,903 Construction and land development 989 — 85 1,171 2,245 221,653 223,898 Residential real estate 1,292 728 566 5,894 8,480 560,809 569,289 Consumer 5,211 2,533 51 388 8,183 603,225 611,408 Lease financing 4,322 932 206 751 6,211 257,840 264,051 Total (excluding PCI) $ 17,494 $ 7,719 $ 1,061 $ 38,187 $ 64,461 $ 4,030,115 $ 4,094,576 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 $446,000 and $557,000 as of March 31, 2019 and December 31, 2018, respectively. The Company had no unfunded commitments in connection with TDRs at March 31, 2019 and December 31, 2018. The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio (excluding PCI loans) as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 406 $ 399 $ 805 $ 435 $ 406 $ 841 Commercial real estate 2,295 10,713 13,008 2,225 9,103 11,328 Construction and land development 50 17 67 51 — 51 Residential real estate 869 1,398 2,267 810 853 1,663 Consumer 102 — 102 130 — 130 Lease financing — — — — — — Total loans (excluding PCI) $ 3,722 $ 12,527 $ 16,249 $ 3,651 $ 10,362 $ 14,013 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2019 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2019: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2019 Troubled debt restructurings: Number of loans — 3 1 7 1 — 12 Pre-modification outstanding balance $ — $ 1,924 $ 62 $ 224 $ 15 $ — $ 2,225 Post-modification outstanding balance — 1,838 17 222 15 — 2,092 Troubled debt restructurings that subsequently defaulted Number of loans — — 1 — — — 1 Recorded balance $ — $ — $ 43 $ — $ — $ — $ 43 During the three months ended March 31, 2018, there were no loans restructured. There were also no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2018. 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 March 31, (dollars in thousands) 2019 2018 Balance, at beginning of period $ 12,240 $ 5,732 New loans purchased – Alpine acquisition — 842 Accretion (1,076) (1,161) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) (106) 660 Reclassification from non-accretable 5 1,154 Balance, at end of period $ 11,063 $ 7,227 Accretion recorded as loan interest income totaled $1.1 million and $1.2 million during the three months ended March 31, 2019 and 2018, 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 months ended March 31, 2019 and 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 Changes in allowance for loan losses for the three months ended March 31, 2019: Balance, beginning of period $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Provision for loan losses 118 1,945 63 514 329 274 3,243 Charge-offs (112) (58) (44) (153) (556) (459) (1,382) Recoveries 15 7 7 22 210 66 327 Balance, end of period $ 9,545 $ 6,617 $ 398 $ 2,424 $ 2,137 $ 1,970 $ 23,091 Changes in allowance for loan losses for the three months ended March 31, 2018: Balance, beginning of period $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Provision for loan losses 567 507 (215) (261) 304 1,104 2,006 Charge-offs (25) (160) — (36) (434) (486) (1,141) Recoveries 104 94 25 51 95 39 408 Balance, end of period $ 5,902 $ 5,485 $ 328 $ 2,504 $ 1,309 $ 2,176 $ 17,704 The following table represents, by loan portfolio, details regarding the balance in the allowance for loan losses and the recorded investment in loans as of March 31, 2019 and December 31, 2018 by impairment evaluation method: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total March 31, 2019: Allowance for loan losses: Loans individually evaluated for impairment $ 4,671 $ 2,391 $ — $ 177 $ — $ 114 $ 7,353 Loans collectively evaluated for impairment 59 46 14 335 41 32 527 Non-impaired loans collectively evaluated for impairment 4,797 3,375 384 1,481 1,898 1,824 13,759 Loans acquired with deteriorated credit quality (1) 18 805 — 431 198 — 1,452 Total allowance for loan losses $ 9,545 $ 6,617 $ 398 $ 2,424 $ 2,137 $ 1,970 $ 23,091 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 8,354 $ 29,186 $ 1,093 $ 4,408 $ — $ 957 $ 43,998 Impaired loans collectively evaluated for impairment 545 425 125 3,345 533 291 5,264 Non-impaired loans collectively evaluated for impairment 830,832 1,513,386 232,114 552,674 598,618 278,284 4,005,908 Loans acquired with deteriorated credit quality (1) 3,358 17,430 6,044 8,624 1,480 — 36,936 Total recorded investment (loan balance) $ 843,089 $ 1,560,427 $ 239,376 $ 569,051 $ 600,631 $ 279,532 $ 4,092,106 December 31, 2018: Allowance for loan losses: Loans individually evaluated for impairment $ 4,405 $ 476 $ 48 $ 233 $ — $ 330 $ 5,492 Loans collectively evaluated for impairment 43 47 6 321 45 31 493 Non-impaired loans collectively evaluated for impairment 4,971 3,356 318 1,051 1,926 1,728 13,350 Loans acquired with deteriorated credit quality (1) 105 844 — 436 183 — 1,568 Total allowance for loan losses $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 8,520 $ 23,431 $ 1,249 $ 3,929 $ 5 $ 668 $ 37,802 Impaired loans collectively evaluated for impairment 408 437 58 3,341 564 289 5,097 Non-impaired loans collectively evaluated for impairment 797,099 1,596,035 222,591 562,019 610,839 263,094 4,051,677 Loans acquired with deteriorated credit quality (1) 4,857 19,252 8,331 8,759 1,776 — 42,975 Total recorded investment (loan balance) $ 810,884 $ 1,639,155 $ 232,229 $ 578,048 $ 613,184 $ 264,051 $ 4,137,551 (1) Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date and the risk of credit loss was recognized at that date based on estimates of expected cash flows

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2019
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT, NET	Note 6 – Premises and Equipment, Net A summary of premises and equipment as of March 31, 2019 and December 31, 2018 is as follows: March 31, December 31, (dollars in thousands) 2019 2018 Land $ 20,231 $ 20,231 Buildings and improvements 77,290 76,141 Furniture and equipment 29,873 29,858 Total 127,394 126,230 Accumulated depreciation (32,880) (31,390) Premises and equipment, net $ 94,514 $ 94,840 Depreciation expense of $1.6 million and $1.5 million was recorded for the three months ended March 31, 2019 and 2018, respectively.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	3 Months Ended
	Mar. 31, 2019
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS	Note 7 – Mortgage Servicing Rights The Company serviced commercial FHA mortgage loans for others with unpaid principal balances of approximately $3.97 billion and $3.98 billion at March 31, 2019 and December 31, 2018, respectively. Changes in our commercial FHA mortgage servicing rights were as follows for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, (dollars in thousands) 2019 2018 Mortgage servicing rights: Balance, beginning of period $ 56,252 $ 55,714 Originated servicing 213 1,001 Amortization (678) (676) Balance, end of period 55,787 56,039 Valuation allowances: Balance, beginning of period 2,805 3,254 Additions 25 133 Reductions — — Balance, end of period 2,830 3,387 Mortgage servicing rights, net $ 52,957 $ 52,652 Fair value: At beginning of period $ 53,447 $ 52,460 At end of period $ 52,957 $ 52,652 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 portfolio, used in the valuation of servicing rights at March 31, 2019 and December 31, 2018. 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 portfolio. Significant increases or decreases in any one of these assumptions would result in a significantly lower or higher fair value measurement. Remaining Servicing Interest Years to Prepayment Servicing Discount (dollars in thousands) Fee Rate Maturity Rate Cost Rate March 31, 2019: Commercial FHA mortgage loans 0.13 % 3.67 % 30.0 8.21 % $ 1,000 10 - 14 % December 31, 2018: Commercial FHA mortgage loans 0.13 % 3.67 % 30.1 8.24 % $ 1,000 10 - 14 % 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 March 31, 2019 and December 31, 2018, the Company serviced residential mortgage loans for others with unpaid principal balances of approximately $861.9 million and $897.6 million, respectively. During the first quarters of 2019 and 2018, the Company sold mortgage servicing rights held for sale of $3.3 million and $10.2 million, respectively. At March 31, 2019, total residential mortgage servicing rights of $257,000 are reflected in the consolidated balance sheet as mortgage servicing rights held for sale.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2019
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	Note 8 – Goodwill and Intangible Assets At March 31, 2019 and December 31, 2018, goodwill totaled $164.7 million. The following table summarizes the carrying amount of goodwill by segment at both March 31, 2019 and December 31, 2018. (dollars in thousands) Goodwill Banking $ 149,035 Commercial FHA origination and servicing 10,892 Wealth management 4,746 Total goodwill $ 164,673 The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of March 31, 2019 and December 31, 2018 are summarized as follows: March 31, 2019 December 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 52,712 $ (26,309) $ 26,403 $ 52,712 $ (24,803) $ 27,909 Customer relationship intangibles 13,771 (4,608) 9,163 13,771 (4,304) 9,467 Total intangible assets $ 66,483 $ (30,917) $ 35,566 $ 66,483 $ (29,107) $ 37,376 Amortization of intangible assets was $1.8 million and $1.7 million for the three months ended March 31, 2019 and 2018, respectively.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2019
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, forward commitments to sell mortgage-backed securities and interest rate swap contracts. Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities The Company issues interest rate lock commitments on originated fixed-rate commercial and residential real estate loans to be sold. 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 and estimated fair values at March 31, 2019 and December 31, 2018: Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, (dollars in thousands) 2019 2018 2019 2018 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 275,324 $ 264,710 $ 5,752 $ 4,492 Forward commitments to sell mortgage-backed securities 274,234 276,871 — — Total $ 549,558 $ 541,581 $ 5,752 $ 4,492 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, (dollars in thousands) 2019 2018 2019 2018 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 67 $ 54 $ — $ — During the three months ended March 31, 2019, the Company recognized net gains of $1.3 million on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. During the three months ended March 31, 2018, the Company recognized net losses of $74,000 on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Interest Rate Swap Contracts The Company entered into 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 $9.4 million and $9.5 million at March 31, 2019 and December 31, 2018, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $18,000 and $145,000 at March 31, 2019 and December 31, 2018, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2019
DEPOSITS
DEPOSITS	Note 10 – Deposits The following table summarizes the classification of deposits as of March 31, 2019 and December 31, 2018: March 31, December 31, (dollars in thousands) 2019 2018 Noninterest-bearing demand $ 941,344 $ 972,164 Interest-bearing: Checking 968,844 1,002,275 Money market 802,036 862,171 Savings 457,176 442,132 Time 866,888 795,428 Total deposits $ 4,036,288 $ 4,074,170

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	3 Months Ended
	Mar. 31, 2019
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS	Note 11 – Short-Term Borrowings The following table presents the distribution of short-term borrowings and related weighted average interest rates as of March 31, 2019 and December 31, 2018: Repurchase Agreements March 31, December 31, (dollars in thousands) 2019 2018 Outstanding at period-end $ 115,832 $ 124,235 Average amount outstanding 135,337 138,135 Maximum amount outstanding at any month end 138,907 173,387 Weighted average interest rate: During period 0.71 % 0.51 % End of period 0.73 % 0.71 % 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 $123.4 million and $132.2 million at March 31, 2019 and December 31, 2018, respectively, were pledged for securities sold under agreements to repurchase. The Company had lines of credit of $50.0 million and $56.8 million at March 31, 2019 and December 31, 2018, respectively, from the Federal Reserve Discount Window. The lines are collateralized by a collateral agreement with respect to a pool of commercial real estate loans totaling $59.4 million and $67.6 million at March 31, 2019 and December 31, 2018, respectively. There were no outstanding borrowings at March 31, 2019 and December 31, 2018. At March 31, 2019, the Company had available federal funds lines of credit totaling $45.0 million. These lines of credit were unused at March 31, 2019.

FHLB ADVANCES AND OTHER BORROWI

FHLB ADVANCES AND OTHER BORROWINGS	3 Months Ended
	Mar. 31, 2019
FHLB ADVANCES AND OTHER BORROWINGS
FHLB ADVANCES AND OTHER BORROWINGS	Note 12 – FHLB Advances and Other Borrowings The following table summarizes our Federal Home Loan Bank (“FHLB”) advances and other borrowings as of March 31, 2019 and December 31, 2018: March 31, December 31, (dollars in thousands) 2019 2018 Midland States Bancorp, Inc. Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 4.75% and 4.63% at March 31, 2019 and December 31, 2018, respectively, – maturing May 25, 2020 $ $ 32,840 Series G redeemable preferred stock - 181 shares at $1,000 per share Midland States Bank FHLB advances – fixed rate, fixed term of $62.5 million and $87.7 million, at rates averaging 2.50% and 2.35% at March 31, 2019 and December 31, 2018, respectively – maturing through February 2023 and putable fixed rate of $565.0 million and $520.0 million at rates averaging 2.11% and 2.09% at March 31, 2019 and December 31, 2018, respectively – maturing through August 2025 with call provisions through August 2021 627,414 607,610 FHLB advances – variable rate, fixed term, at a rate averaging 2.60% at March 31, 2019 – maturing in June 2019 10,000 — Total FHLB advances and other borrowings $ 669,009 $ 640,631 In May 2017, the Company entered into a loan agreement with another bank for a revolving line of credit in the original principal amount of up to $10.0 million and a term loan in the original principal amount of $40.0 million. The 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, 2018, the Company was required to make 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 March 31, 2019, the Company was in compliance with each of these financial covenants. The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling approximately $2.11 billion and $2.22 billion at March 31, 2019 and December 31, 2018, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
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. The diluted earnings per share computation for the three months ended March 31, 2019 and 2018 excluded antidilutive stock options of 97,628 and 31,259, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective periods. Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, (dollars in thousands, except per share data) 2019 2018 Net income $ 13,982 $ 1,806 Preferred dividends declared (82) (83) Preferred stock, premium amortization 48 47 Net income available to common shareholders 13,948 1,770 Common shareholder dividends (5,776) (4,208) Unvested restricted stock award dividends (47) (31) Undistributed earnings to unvested restricted stock awards (65) — Undistributed earnings to common shareholders $ 8,060 $ (2,469) Basic Distributed earnings to common shareholders $ 5,776 $ 4,208 Undistributed earnings to common shareholders 8,060 (2,469) Total common shareholders earnings, basic $ 13,836 $ 1,739 Diluted Distributed earnings to common shareholders $ 5,776 $ 4,208 Undistributed earnings to common shareholders 8,060 (2,469) Total common shareholders earnings 13,836 1,739 Add back: Undistributed earnings reallocated from unvested restricted stock awards — — Total common shareholders earnings, diluted $ 13,836 $ 1,739 Weighted average common shares outstanding, basic 23,998,119 20,901,738 Options and warrants 206,542 449,773 Weighted average common shares outstanding, diluted 24,204,661 21,351,511 Basic earnings per common share $ 0.58 $ 0.08 Diluted earnings per common share 0.57 0.08

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	Note 14 – Fair Value of Financial Instruments 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: Significant other 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. · Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis as of March 31, 2019 and December 31, 2018, are summarized below: March 31, 2019 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 $ 24,768 $ 24,768 $ — $ — Government sponsored entity debt securities 75,587 — 75,587 — Agency mortgage-backed securities 321,451 — 321,451 — State and municipal securities 150,912 — 150,912 — Corporate securities 80,021 — 78,091 1,930 Equity securities 3,413 — 3,413 — Loans held for sale 16,851 — 16,851 — Interest rate lock commitments 5,752 — 5,752 — Interest rate swap contracts 18 — 18 — Total $ 678,773 $ 24,768 $ 652,075 $ 1,930 Liabilities Interest rate swap contracts $ 18 $ — $ 18 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 52,957 $ — $ — $ 52,957 Mortgage servicing rights held for sale 257 257 — — Impaired loans 6,734 — 4,639 2,095 Other real estate owned 47 — 47 — Assets held for sale 1,687 — 1,687 — December 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 24,650 $ 24,650 $ — $ — Government sponsored entity debt securities 75,684 — 75,684 — Agency mortgage-backed securities 326,305 — 326,305 — State and municipal securities 159,262 — 159,262 — Corporate securities 71,550 — 69,627 1,923 Equity securities 3,334 — 3,334 — Loans held for sale 30,401 — 30,401 — Interest rate lock commitments 4,492 — 4,492 — Forward commitments to sell mortgage-backed securities — — — — Interest rate swap contracts 145 — 145 — Total $ 695,823 $ 24,650 $ 669,250 $ 1,923 Liabilities Interest rate swap contracts $ 145 $ — $ 145 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 53,447 $ — $ — $ 53,447 Mortgage servicing rights held for sale 3,545 3,545 — — Impaired loans 11,238 — 9,226 2,012 Other real estate owned 1,439 — 1,439 — Assets held for sale 1,687 — 1,687 — The following table presents losses recognized on assets measured on a non‑recurring basis for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, (dollars in thousands) 2019 2018 Mortgage servicing rights $ 25 $ 133 Impaired loans 981 875 Other real estate owned 16 — Total loss on assets measured on a nonrecurring basis $ 1,022 $ 1,008 The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019 and 2018: Corporate Securities Three Months Ended March 31, (dollars in thousands) 2019 2018 Balance, beginning of period $ 1,923 $ 4,779 Total realized in earnings (1) 22 187 Total unrealized in other comprehensive income 7 616 Net settlements (principal and interest) (22) (162) Balance, end of period $ 1,930 $ 5,420 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at March 31, 2019: Non-recurring Fair Value Valuation Unobservable fair value measurements (dollars in thousands technique input / assumptions Range (weighted average) Mortgage servicing rights $ 52,957 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.21%) Discount rate 10.00% - 12.00% (11.12%) Impaired loans $ 2,095 Fair value of collateral Discount for type of property, 4.32% - 7.33% (5.49%) age of appraisal and current status The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at December 31, 2018: Non-recurring Fair Value Valuation Unobservable fair value measurements (dollars in thousands technique input / assumptions Range (weighted average) Mortgage servicing rights $ 53,447 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.24%) Discount rate 10.00% - 27.00% (11.12%) Impaired loans $ 2,012 Fair value of collateral Discount for type of property, 5.00% - 7.26% (5.26%) age of appraisal and current status Mortgage Servicing Rights. In accordance with GAAP , the Company must record impairment charges on mortgage servicing rights 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 $53.0 million and $53.4 million at March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Residential loans held for sale $ 5,896 $ 322 $ 5,574 $ 8,121 $ 484 $ 7,637 Commercial loans held for sale 10,955 267 10,688 22,280 595 21,685 Total loans held for sale $ 16,851 $ 589 $ 16,262 $ 30,401 $ 1,079 $ 29,322 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, (dollars in thousands) 2019 2018 Residential loans held for sale $ (57) $ (108) Commercial loans held for sale (328) (235) Total loans held for sale $ (385) $ (343) The following tables are a summary of the carrying values and fair value estimates of certain financial instruments as of March 31, 2019 and December 31, 2018: March 31, 2019 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 $ 275,939 $ 275,939 $ 275,939 $ — $ — Federal funds sold 541 541 541 — — Investment securities available for sale 652,739 652,739 24,768 626,041 1,930 Equity securities 3,413 3,413 — 3,413 — Nonmarketable equity securities 46,009 46,009 — 46,009 — Loans, net 4,069,015 4,061,017 — — 4,061,017 Loans held for sale 16,851 16,851 — 16,851 — Accrued interest receivable 5,070 5,070 — 5,070 — Interest rate lock commitments 5,752 5,752 — 5,752 — Interest rate swap contracts 18 18 — 18 — Liabilities Deposits $ 4,036,288 $ 4,034,453 $ — $ 4,034,453 $ — Short-term borrowings 115,832 115,832 — 115,832 — FHLB and other borrowings 669,009 674,353 — 674,353 — Subordinated debt 94,174 95,526 — 95,526 — Trust preferred debentures 47,918 56,018 — 56,018 — Accrued interest payable 6,254 6,254 — 6,254 — Interest rate swap contracts 18 18 — 18 — December 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 210,780 $ 210,780 $ 210,780 $ — $ — Federal funds sold 2,920 2,920 2,920 — — Investment securities available for sale 660,785 660,785 24,650 634,212 1,923 Nonmarketable equity securities 42,472 42,472 — 42,472 — Loans, net 4,116,648 4,091,438 — — 4,091,438 Loans held for sale 30,401 30,401 — 30,401 — Accrued interest receivable 16,560 16,560 — 16,560 — Interest rate lock commitments 4,492 4,492 — 4,492 — Interest rate swap contracts 145 145 — 145 — Liabilities Deposits $ 4,074,170 $ 4,069,098 $ — $ 4,069,098 $ — Short-term borrowings 124,235 124,235 — 124,235 — FHLB and other borrowings 640,631 641,050 — 641,050 — Subordinated debt 94,134 91,926 — 91,926 — Trust preferred debentures 47,794 56,805 — 56,805 — Accrued interest payable 4,855 4,855 — 4,855 — Interest rate swap contracts 145 145 — 145 —

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND CREDIT RISK	3 Months Ended
	Mar. 31, 2019
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
COMMITMENTS, CONTINGENCIES AND CREDIT RISK	Note 15 – Commitments, Contingencies and Credit Risk In the normal course of business, there are outstanding various contingent liabilities such as claims and legal actions, which are not reflected in the consolidated financial statements. No material losses are anticipated as a result of these actions or claims. We are a party to financial instruments with off-balance‑sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments as of March 31, 2019 and December 31, 2018 were as follows: March 31, December 31, (dollars in thousands) 2019 2018 Commitments to extend credit $ 670,694 $ 663,555 Financial guarantees – standby letters of credit 140,183 142,859 The Company establishes a mortgage repurchase liability to reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on the volume of loans sold in 2019 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. As a result of make-whole requests and loan repurchases, the Company incurred losses totaling $20,000 for the three months ended March 31, 2018. There were no losses as a result of make-whole requests and loan repurchases for the three months ended March 31, 2019. The liability for unresolved repurchase demands totaled $289,000 and $492,000 at March 31, 2019 and December 31, 2018, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2019
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. Selected business segment financial information as of and for the three months ended March 31, 2019 and 2018 were as follows: Commercial FHA Origination and Wealth (dollars in thousands) Banking Servicing Management Other Total Three Months Ended March 31, 2019 Net interest income (expense) $ 48,518 $ (176) $ — $ (2,741) $ 45,601 Provision for loan losses 3,243 — — — 3,243 Noninterest income 8,940 3,238 4,953 (56) 17,075 Noninterest expense 35,371 2,811 3,247 (332) 41,097 Income before income taxes 18,844 251 1,706 (2,465) 18,336 Income taxes (benefit) 4,975 71 140 (832) 4,354 Net income (loss) $ 13,869 $ 180 $ 1,566 $ (1,633) $ 13,982 Total assets $ 5,582,494 $ 94,797 $ 19,039 $ (54,550) $ 5,641,780 Three Months Ended March 31, 2018 Net interest income (expense) $ 40,631 $ 37 $ 85 $ (2,568) $ 38,185 Provision for loan losses 2,006 — — — 2,006 Noninterest income 9,016 3,521 4,080 (115) 16,502 Noninterest expense 44,366 3,538 2,386 (791) 49,499 Income (loss) before income taxes (benefit) 3,275 20 1,779 (1,892) 3,182 Income taxes (benefit) 1,379 407 141 (551) 1,376 Net income (loss) $ 1,896 $ (387) $ 1,638 $ (1,341) $ 1,806 Total assets $ 5,671,231 $ 91,580 $ 16,573 $ (56,012) $ 5,723,372

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	1 Note 17 – Related Party Transactions The Company utilizes the services of a company to act as a general manager for the construction of new facilities. A member of our board of directors is a substantial shareholder of this company and currently serves as its Chairman. During the three months ended March 31, 2019, the Company paid $210,000 to this company for work on various projects, which was approved in accordance with the Company’s related party transaction policy.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
LEASES
LEASES	Note 18 – Leases The Company has operating leases for banking centers and operating facilities. Our leases have remaining lease terms of 2 months to 13 years, some of which may include options to extend the lease terms for up to an additional 5 years. The options to extend are not recognized as part of the ROU assets and lease liabilities. Information related to operating leases for the three months ended March 31, 2019 was as follows: Three Months Ended (dollars in thousands) March 31, 2019 Operating lease cost $ 708 Operating cash flows from leases 741 Right-of-use assets obtained in exchange for lease obligations 10,677 Weighted average remaining lease term 6 years Weighted average discount rate 3.12 % The projected minimum rental payments under the terms of the leases as of March 31, 2019 were as follows: (dollars in thousands) Amount Year ending December 31: 2019 remaining $ 2,482 2020 2,288 2021 2,160 2022 2,060 2023 1,292 Thereafter 2,057 Total future minimum lease payments 12,339 Less imputed interest (1,141) Total operating lease liabilities $ 11,198

REVENUE FROM CONTRACT WITH CUST

REVENUE FROM CONTRACT WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2019
Revenue from contract with customers
Revenue from contract with customers	Note 19 – Revenue From Contracts with Customers On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in “ Note 2 – Basis of Presentation and Summary of Significant Accounting Policies ,” the implementation of the new standard did not have a material impact on the measurement or recognition of revenue. Since the impact of applying the standard was determined to be immaterial, the Company did not record a cumulative effect adjustment to beginning retained earnings on January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with previous GAAP. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The recognition of revenue associated with these noninterest income streams did not change significantly from current practice upon adoption of Topic 606. The noninterest income streams considered in-scope by Topic 606 are discussed below. Wealth Management Revenue Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted by them to the Company on a monthly basis for that month’s transactional activity. Service Charges on Deposit Accounts Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account. Interchange Revenue Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed. Gain on Sales of Other Real Estate Owned The Company records a gain or loss from the sale of other real estate owned (“OREO”) when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to a buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. Other Noninterest Income The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, and other noninterest related fees. Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Account management fees are considered earned at the time the merchant’s transactions are processed or other services are performed. Fees related to the other components of other noninterest income within the scope of Topic 606 are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at the point in time the customer uses the selected service to execute a transaction. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, (dollars in thousands) 2019 2018 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 3,617 $ 3,119 Investment advisory fees 529 465 Investment brokerage fees 219 264 Other 588 231 Service charges on deposit accounts: Nonsufficient fund fees 1,754 1,450 Other 766 517 Interchange revenues 2,680 2,045 Other income: Merchant services revenue 375 338 Other 818 1,070 Noninterest income - out-of-scope of Topic 606 5,729 7,003 Total noninterest income $ 17,075 $ 16,502 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2019 and December 31, 2018, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	Note 20 – Subsequent Events Pending Acquisition – HomeStar Financial Group, Inc. On April 2, 2019, the Company announced it had entered into a definitive agreement to acquire HomeStar Financial Group, Inc. (“HomeStar”), and its wholly owned subsidiary, HomeStar Bank and Financial Services (“HomeStar Bank”) for estimated total consideration of $9.9 million, consisting of 405,000 shares of the Company’s common stock, plus cash in an amount equal to the amount, if any, by which HomeStar’s adjusted shareholders’ equity prior to closing exceeds $10.4 million. HomeStar Bank is headquartered in Manteno, Illinois, and operates 5 full-service banking centers in northern Illinois. As of December 31, 2018, HomeStar Bank had total assets of $375.4 million, net loans of $222.7 million and total deposits of $333.1 million. Under the terms of the definitive agreement, prior to closing, HomeStar’s outstanding trust preferred securities and subordinated debentures plus accrued interest will be repurchased or paid off with approximately $23.5 million of cash provided by the Company, which amount represents a discount to the outstanding obligations on these securities. Additionally, prior to closing, HomeStar Bank will sell its interest in both its insurance agency and title company subsidiaries. The transaction is expected to close in the third quarter of 2019, subject to regulatory approval, the approval of HomeStar’s shareholders, the completion of the trust preferred securities transactions, and the satisfaction of customary closing conditions.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
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, 2018, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2019. 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. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included i n the Company's 2018 Annual Report on Form 10-K. There has been one change to our significant accounting policies since December 31, 2018, which is described below. 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 2018 amounts have been made to conform to the 2019 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other period.
Leases	Leases The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. The right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates.
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 ASU 2016-02, “Leases (Topic 842)” – In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ,” which requires lessees to recognize leases on-balance sheet and to disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-10, “ Codification Improvements to Topic 842, Leases;” and ASU No. 2018-11, “Targeted Improvements.” The new standard established a ROU model, that requires a lessee to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months. Under the new guidance, leases are classified as either finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of income. The Company adopted the new standard on January 1, 2019, and used the effective date as our date of initial application . A modified retrospective adoption approach is required, applying the new standard to all existing leases in effect at the adoption date and new leases going forward. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to January 1, 2019. This update also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company elected the “package of practical expedients” permitted by ASU 2018-11, which allows us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for ongoing accounting. The Company elected the short-term lease recognition exemption for our office equipment leases. This means, for those leases that qualify, we did recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. At the adoption date, the Company reported increased assets and liabilities of approximately $12.1 million on its consolidated balance sheet as a result of recognizing ROU assets and lease liabilities related to non-cancelable operating lease agreements for office space. T he adoption of this guidance did not have a material effect to its consolidated statement of income. 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 (“CECL”).” 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. As previously disclosed, the Company has established a cross-functional governance structure, which oversees overall strategy for implementation of Topic 326. Additionally, a working group was formed and has developed a project plan focused on understanding the ASU, researching issues, data requirements, technology solutions and future state processes. The project plan is targeting the data and model validation completion during the second quarter of 2019, with parallel processing of our existing allowance for loan loss model with CECL prior to implementation. The working group has identified 12 distinct loan portfolios for which a model has been or is in the process of being developed. The Company is focused on completing data and model validation, refining assumptions and continued review of the models. The Company also continues to focus on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls and considering various reporting disclosures. The Company also continues to believe that the adoption of the standard will result in an overall increase in the allowance for loan losses to cover credit losses over the estimated life of the financial assets. However, the magnitude of the increase in its allowance for loan losses at the adoption date will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. FASB ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” – In August 2018, the FASB issued ASU No. 2018-13 to improve the disclosure requirements on fair value measurements. The amendment removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements. The update also adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update become effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is not expected to have a material impact.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2019
INVESTMENT SECURITIES
Schedule of investment securities classified as available for sale	March 31, 2019 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities U.S. Treasury securities $ 25,009 $ — $ 241 $ 24,768 Government sponsored entity debt securities 75,620 133 166 75,587 Agency mortgage-backed securities 321,127 1,840 1,516 321,451 State and municipal securities 146,557 4,501 146 150,912 Corporate securities 79,626 863 468 80,021 Total available for sale securities $ 647,939 $ 7,337 $ 2,537 $ 652,739 Equity securities $ 3,413 December 31, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Available for sale securities U.S. Treasury securities $ 25,018 $ — $ 368 $ 24,650 Government sponsored entity debt securities 76,554 17 887 75,684 Agency mortgage-backed securities 329,690 371 3,756 326,305 State and municipal securities 156,795 3,282 815 159,262 Corporate securities 72,302 383 1,135 71,550 Total available for sale securities $ 660,359 $ 4,053 $ 6,961 $ 657,451 Equity securities $ 3,334
Schedule of unrealized losses and fair values for investment securities	March 31, 2019 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 $ 5,004 $ 1 $ 19,764 $ 240 $ 24,768 $ 241 Government sponsored entity debt securities 6,056 8 34,855 158 40,911 166 Agency mortgage-backed securities 13,390 26 124,358 1,490 137,748 1,516 State and municipal securities 5,429 2 16,839 144 22,268 146 Corporate securities 16,096 186 8,804 282 24,900 468 Total available for sale securities $ 45,975 $ 223 $ 204,620 $ 2,314 $ 250,595 $ 2,537 December 31, 2018 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss Available for sale securities U.S. Treasury securities $ 5,012 $ 1 $ 19,638 $ 367 $ 24,650 $ 368 Government sponsored entity debt securities 51,717 195 23,223 692 74,940 887 Agency mortgage-backed securities 139,115 528 126,561 3,228 265,676 3,756 State and municipal securities 15,791 146 27,692 669 43,483 815 Corporate securities 32,616 575 8,535 560 41,151 1,135 Total available for sale securities $ 244,251 $ 1,445 $ 205,649 $ 5,516 $ 449,900 $ 6,961
Contractual maturity of amortized cost and fair value	Amortized Fair (dollars in thousands) cost value Available for sale securities Within one year $ 45,564 $ 45,610 After one year through five years 110,602 111,624 After five years through ten years 142,380 145,013 After ten years 28,266 29,041 Mortgage-backed securities 321,127 321,451 Total available for sale securities $ 647,939 $ 652,739

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2019
LOANS
Summary of loans	March 31, 2019 December 31, 2018 Non-PCI PCI Non-PCI PCI (dollars in thousands) Loans Loans (1) Total Loans Loans (1) Total Commercial $ 839,731 $ 3,358 $ 843,089 $ 806,027 $ 4,857 $ 810,884 Commercial real estate 1,542,997 17,430 1,560,427 1,619,903 19,252 1,639,155 Construction and land development 233,332 6,044 239,376 223,898 8,331 232,229 Total commercial loans 2,616,060 26,832 2,642,892 2,649,828 32,440 2,682,268 Residential real estate 560,427 8,624 569,051 569,289 8,759 578,048 Consumer 599,151 1,480 600,631 611,408 1,776 613,184 Lease financing 279,532 — 279,532 264,051 — 264,051 Total loans $ 4,055,170 $ 36,936 $ 4,092,106 $ 4,094,576 $ 42,975 $ 4,137,551 (1) The unpaid principal balance for PCI loans totaled $50.5 million and $56.9 million as of March 31, 2019 and December 31, 2018, respectively.
Summary of recorded investment (excluding PCI loans) by risk category	The following table presents the recorded investment of the commercial loan portfolio (excluding PCI loans) by risk category as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Commercial Construction Commercial Construction Real and Land Real and Land (dollars in thousands) Commercial Estate Development Total Commercial Estate Development Total Acceptable credit quality $ 788,619 $ 1,449,480 $ 227,953 $ 2,466,052 $ 748,296 $ 1,536,127 $ 218,798 $ 2,503,221 Special mention 21,121 14,627 2,522 38,270 35,103 15,306 3,448 53,857 Substandard 21,498 51,574 890 73,962 14,139 46,976 — 61,115 Substandard – nonaccrual 8,493 27,316 1,168 36,977 8,489 21,494 1,171 31,154 Doubtful — — — — — — — — Not graded — — 799 799 — — 481 481 Total (excluding PCI) $ 839,731 $ 1,542,997 $ 233,332 $ 2,616,060 $ 806,027 $ 1,619,903 $ 223,898 $ 2,649,828 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 March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Residential Lease Residential Lease (dollars in thousands) Real Estate Consumer Financing Total Real Estate Consumer Financing Total Performing $ 552,674 $ 598,618 $ 278,284 $ 1,429,576 $ 562,019 $ 610,839 $ 263,094 $ 1,435,952 Impaired 7,753 533 1,248 9,534 7,270 569 957 8,796 Total (excluding PCI) $ 560,427 $ 599,151 $ 279,532 $ 1,439,110 $ 569,289 $ 611,408 $ 264,051 $ 1,444,748
Summary of impaired loans (excluding PCI loans)	March 31, 2019 December 31, 2018 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 $ 8,191 $ 8,356 $ 4,730 $ 7,945 $ 8,102 $ 4,448 Commercial real estate 5,592 6,221 2,437 7,496 13,844 523 Construction and land development 125 169 14 171 171 54 Residential real estate 4,457 5,203 512 4,055 4,662 554 Consumer 522 547 41 428 444 45 Lease financing 436 436 146 766 766 361 Total impaired loans with a valuation allowance 19,323 20,932 7,880 20,861 27,989 5,985 Impaired loans with no related valuation allowance: Commercial 708 4,124 — 983 4,392 — Commercial real estate 24,019 30,492 — 16,372 16,921 — Construction and land development 1,093 1,093 — 1,136 1,136 — Residential real estate 3,296 3,557 — 3,215 3,516 — Consumer 11 13 — 141 145 — Lease financing 812 813 — 191 191 — Total impaired loans with no related valuation allowance 29,939 40,092 — 22,038 26,301 — Total impaired loans: Commercial 8,899 12,480 4,730 8,928 12,494 4,448 Commercial real estate 29,611 36,713 2,437 23,868 30,765 523 Construction and land development 1,218 1,262 14 1,307 1,307 54 Residential real estate 7,753 8,760 512 7,270 8,178 554 Consumer 533 560 41 569 589 45 Lease financing 1,248 1,249 146 957 957 361 Total impaired loans (excluding PCI) $ 49,262 $ 61,024 $ 7,880 $ 42,899 $ 54,290 $ 5,985 The difference between a loan’s recorded investment and the unpaid principal balance represents: (1) a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan’s principal balance and management’s assessment that the full collection of the loan balance is not likely and/or (2) payments received on nonaccrual loans that are fully applied to principal on the loan’s recorded investment as compared to being applied to principal and interest on the unpaid customer principal and interest balance. The difference between the recorded investment and the unpaid principal balance on loans was $11.8 million and $11.4 million at March 31, 2019 and December 31, 2018, respectively. The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the three months ended March 31, 2019 and 2018 are included in the table below: Three Months Ended March 31, 2019 2018 Interest Income Interest Income Average Recognized Average Recognized Recorded While on Recorded While on (dollars in thousands) Investment Impaired Status Investment Impaired Status Impaired loans with a valuation allowance: Commercial $ 8,240 $ 6 $ 2,291 $ 10 Commercial real estate 5,563 27 2,104 20 Construction and land development 141 — 101 1 Residential real estate 4,465 10 3,579 10 Consumer 527 — 208 — Lease financing 436 — 1,014 — Total impaired loans with a valuation allowance 19,372 43 9,297 41 Impaired loans with no related valuation allowance: Commercial 723 — 518 — Commercial real estate 24,153 — 13,731 — Construction and land development 1,110 1 739 — Residential real estate 3,306 2 2,370 1 Consumer 12 — 42 — Lease financing 813 — 247 — Total impaired loans with no related valuation allowance 30,117 3 17,647 1 Total impaired loans: Commercial 8,963 6 2,809 10 Commercial real estate 29,716 27 15,835 20 Construction and land development 1,251 1 840 1 Residential real estate 7,771 12 5,949 11 Consumer 539 — 250 — Lease financing 1,249 — 1,261 — Total impaired loans (excluding PCI) $ 49,489 $ 46 $ 26,944 $ 42
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 March 31, 2019 and December 31, 2018 were as follows: Accruing 30-59 60-89 Past Due Days Days 90 Days Total Total (dollars in thousands) Past Due Past Due or More Nonaccrual Past Due Current Loans March 31, 2019 Commercial $ 2,323 $ 2,147 $ — $ 8,493 $ 12,963 $ 826,768 $ 839,731 Commercial real estate 4,862 1,160 — 27,316 33,338 1,509,659 1,542,997 Construction and land development 1,020 160 — 1,168 2,348 230,984 233,332 Residential real estate 1,305 716 — 6,884 8,905 551,522 560,427 Consumer 4,735 3,365 — 431 8,531 590,620 599,151 Lease financing 1,829 377 255 993 3,454 276,078 279,532 Total (excluding PCI) $ 16,074 $ 7,925 $ 255 $ 45,285 $ 69,539 $ 3,985,631 $ 4,055,170 December 31, 2018 Commercial $ 4,013 $ 2,581 $ 4 $ 8,489 $ 15,087 $ 790,940 $ 806,027 Commercial real estate 1,667 945 149 21,494 24,255 1,595,648 1,619,903 Construction and land development 989 — 85 1,171 2,245 221,653 223,898 Residential real estate 1,292 728 566 5,894 8,480 560,809 569,289 Consumer 5,211 2,533 51 388 8,183 603,225 611,408 Lease financing 4,322 932 206 751 6,211 257,840 264,051 Total (excluding PCI) $ 17,494 $ 7,719 $ 1,061 $ 38,187 $ 64,461 $ 4,030,115 $ 4,094,576
Summary of TDRs loans	The following table presents TDRs by loan portfolio (excluding PCI loans) as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 406 $ 399 $ 805 $ 435 $ 406 $ 841 Commercial real estate 2,295 10,713 13,008 2,225 9,103 11,328 Construction and land development 50 17 67 51 — 51 Residential real estate 869 1,398 2,267 810 853 1,663 Consumer 102 — 102 130 — 130 Lease financing — — — — — — Total loans (excluding PCI) $ 3,722 $ 12,527 $ 16,249 $ 3,651 $ 10,362 $ 14,013 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2019 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2019: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2019 Troubled debt restructurings: Number of loans — 3 1 7 1 — 12 Pre-modification outstanding balance $ — $ 1,924 $ 62 $ 224 $ 15 $ — $ 2,225 Post-modification outstanding balance — 1,838 17 222 15 — 2,092 Troubled debt restructurings that subsequently defaulted Number of loans — — 1 — — — 1 Recorded balance $ — $ — $ 43 $ — $ — $ — $ 43
Summary of changes in accretable yield for PCI loans	Three Months Ended March 31, (dollars in thousands) 2019 2018 Balance, at beginning of period $ 12,240 $ 5,732 New loans purchased – Alpine acquisition — 842 Accretion (1,076) (1,161) Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows) (106) 660 Reclassification from non-accretable 5 1,154 Balance, at end of period $ 11,063 $ 7,227
Summary of changes in allowance for loan losses, by loan portfolio	The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three months ended March 31, 2019 and 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 Changes in allowance for loan losses for the three months ended March 31, 2019: Balance, beginning of period $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Provision for loan losses 118 1,945 63 514 329 274 3,243 Charge-offs (112) (58) (44) (153) (556) (459) (1,382) Recoveries 15 7 7 22 210 66 327 Balance, end of period $ 9,545 $ 6,617 $ 398 $ 2,424 $ 2,137 $ 1,970 $ 23,091 Changes in allowance for loan losses for the three months ended March 31, 2018: Balance, beginning of period $ 5,256 $ 5,044 $ 518 $ 2,750 $ 1,344 $ 1,519 $ 16,431 Provision for loan losses 567 507 (215) (261) 304 1,104 2,006 Charge-offs (25) (160) — (36) (434) (486) (1,141) Recoveries 104 94 25 51 95 39 408 Balance, end of period $ 5,902 $ 5,485 $ 328 $ 2,504 $ 1,309 $ 2,176 $ 17,704 The following table represents, by loan portfolio, details regarding the balance in the allowance for loan losses and the recorded investment in loans as of March 31, 2019 and December 31, 2018 by impairment evaluation method: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total March 31, 2019: Allowance for loan losses: Loans individually evaluated for impairment $ 4,671 $ 2,391 $ — $ 177 $ — $ 114 $ 7,353 Loans collectively evaluated for impairment 59 46 14 335 41 32 527 Non-impaired loans collectively evaluated for impairment 4,797 3,375 384 1,481 1,898 1,824 13,759 Loans acquired with deteriorated credit quality (1) 18 805 — 431 198 — 1,452 Total allowance for loan losses $ 9,545 $ 6,617 $ 398 $ 2,424 $ 2,137 $ 1,970 $ 23,091 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 8,354 $ 29,186 $ 1,093 $ 4,408 $ — $ 957 $ 43,998 Impaired loans collectively evaluated for impairment 545 425 125 3,345 533 291 5,264 Non-impaired loans collectively evaluated for impairment 830,832 1,513,386 232,114 552,674 598,618 278,284 4,005,908 Loans acquired with deteriorated credit quality (1) 3,358 17,430 6,044 8,624 1,480 — 36,936 Total recorded investment (loan balance) $ 843,089 $ 1,560,427 $ 239,376 $ 569,051 $ 600,631 $ 279,532 $ 4,092,106 December 31, 2018: Allowance for loan losses: Loans individually evaluated for impairment $ 4,405 $ 476 $ 48 $ 233 $ — $ 330 $ 5,492 Loans collectively evaluated for impairment 43 47 6 321 45 31 493 Non-impaired loans collectively evaluated for impairment 4,971 3,356 318 1,051 1,926 1,728 13,350 Loans acquired with deteriorated credit quality (1) 105 844 — 436 183 — 1,568 Total allowance for loan losses $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 8,520 $ 23,431 $ 1,249 $ 3,929 $ 5 $ 668 $ 37,802 Impaired loans collectively evaluated for impairment 408 437 58 3,341 564 289 5,097 Non-impaired loans collectively evaluated for impairment 797,099 1,596,035 222,591 562,019 610,839 263,094 4,051,677 Loans acquired with deteriorated credit quality (1) 4,857 19,252 8,331 8,759 1,776 — 42,975 Total recorded investment (loan balance) $ 810,884 $ 1,639,155 $ 232,229 $ 578,048 $ 613,184 $ 264,051 $ 4,137,551 (1) Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date and the risk of credit loss was recognized at that date based on estimates of expected cash flows

PREMISES AND EQUIPMENT, NET (Ta

PREMISES AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2019
PREMISES AND EQUIPMENT
Summary of premises and equipment	March 31, December 31, (dollars in thousands) 2019 2018 Land $ 20,231 $ 20,231 Buildings and improvements 77,290 76,141 Furniture and equipment 29,873 29,858 Total 127,394 126,230 Accumulated depreciation (32,880) (31,390) Premises and equipment, net $ 94,514 $ 94,840

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	3 Months Ended
	Mar. 31, 2019
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 months ended March 31, 2019 and 2018: Three Months Ended March 31, (dollars in thousands) 2019 2018 Mortgage servicing rights: Balance, beginning of period $ 56,252 $ 55,714 Originated servicing 213 1,001 Amortization (678) (676) Balance, end of period 55,787 56,039 Valuation allowances: Balance, beginning of period 2,805 3,254 Additions 25 133 Reductions — — Balance, end of period 2,830 3,387 Mortgage servicing rights, net $ 52,957 $ 52,652 Fair value: At beginning of period $ 53,447 $ 52,460 At end of period $ 52,957 $ 52,652
Schedule of summary of key assumptions	Remaining Servicing Interest Years to Prepayment Servicing Discount (dollars in thousands) Fee Rate Maturity Rate Cost Rate March 31, 2019: Commercial FHA mortgage loans 0.13 % 3.67 % 30.0 8.21 % $ 1,000 10 - 14 % December 31, 2018: Commercial FHA mortgage loans 0.13 % 3.67 % 30.1 8.24 % $ 1,000 10 - 14 %

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
GOODWILL AND INTANGIBLE ASSETS
Schedule of intangible assets	(dollars in thousands) Goodwill Banking $ 149,035 Commercial FHA origination and servicing 10,892 Wealth management 4,746 Total goodwill $ 164,673 The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of March 31, 2019 and December 31, 2018 are summarized as follows: March 31, 2019 December 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 52,712 $ (26,309) $ 26,403 $ 52,712 $ (24,803) $ 27,909 Customer relationship intangibles 13,771 (4,608) 9,163 13,771 (4,304) 9,467 Total intangible assets $ 66,483 $ (30,917) $ 35,566 $ 66,483 $ (29,107) $ 37,376

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
DERIVATIVE INSTRUMENTS
Schedule of derivative instruments, fair value and notional amounts	Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, (dollars in thousands) 2019 2018 2019 2018 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 275,324 $ 264,710 $ 5,752 $ 4,492 Forward commitments to sell mortgage-backed securities 274,234 276,871 — — Total $ 549,558 $ 541,581 $ 5,752 $ 4,492 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, (dollars in thousands) 2019 2018 2019 2018 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 67 $ 54 $ — $ —

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2019
DEPOSITS
Schedule summarizes the classification of deposits	March 31, December 31, (dollars in thousands) 2019 2018 Noninterest-bearing demand $ 941,344 $ 972,164 Interest-bearing: Checking 968,844 1,002,275 Money market 802,036 862,171 Savings 457,176 442,132 Time 866,888 795,428 Total deposits $ 4,036,288 $ 4,074,170

SHORT-TERM BORROWINGS (Tables)

SHORT-TERM BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2019
SHORT-TERM BORROWINGS
Schedule of short term borrowings	Repurchase Agreements March 31, December 31, (dollars in thousands) 2019 2018 Outstanding at period-end $ 115,832 $ 124,235 Average amount outstanding 135,337 138,135 Maximum amount outstanding at any month end 138,907 173,387 Weighted average interest rate: During period 0.71 % 0.51 % End of period 0.73 % 0.71 %

FHLB ADVANCES AND OTHER BORRO_2

FHLB ADVANCES AND OTHER BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2019
FHLB ADVANCES AND OTHER BORROWINGS
Schedule of Federal Home Loan Bank (FHLB) advances	March 31, December 31, (dollars in thousands) 2019 2018 Midland States Bancorp, Inc. Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 4.75% and 4.63% at March 31, 2019 and December 31, 2018, respectively, – maturing May 25, 2020 $ $ 32,840 Series G redeemable preferred stock - 181 shares at $1,000 per share Midland States Bank FHLB advances – fixed rate, fixed term of $62.5 million and $87.7 million, at rates averaging 2.50% and 2.35% at March 31, 2019 and December 31, 2018, respectively – maturing through February 2023 and putable fixed rate of $565.0 million and $520.0 million at rates averaging 2.11% and 2.09% at March 31, 2019 and December 31, 2018, respectively – maturing through August 2025 with call provisions through August 2021 627,414 607,610 FHLB advances – variable rate, fixed term, at a rate averaging 2.60% at March 31, 2019 – maturing in June 2019 10,000 — Total FHLB advances and other borrowings $ 669,009 $ 640,631

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended March 31, (dollars in thousands, except per share data) 2019 2018 Net income $ 13,982 $ 1,806 Preferred dividends declared (82) (83) Preferred stock, premium amortization 48 47 Net income available to common shareholders 13,948 1,770 Common shareholder dividends (5,776) (4,208) Unvested restricted stock award dividends (47) (31) Undistributed earnings to unvested restricted stock awards (65) — Undistributed earnings to common shareholders $ 8,060 $ (2,469) Basic Distributed earnings to common shareholders $ 5,776 $ 4,208 Undistributed earnings to common shareholders 8,060 (2,469) Total common shareholders earnings, basic $ 13,836 $ 1,739 Diluted Distributed earnings to common shareholders $ 5,776 $ 4,208 Undistributed earnings to common shareholders 8,060 (2,469) Total common shareholders earnings 13,836 1,739 Add back: Undistributed earnings reallocated from unvested restricted stock awards — — Total common shareholders earnings, diluted $ 13,836 $ 1,739 Weighted average common shares outstanding, basic 23,998,119 20,901,738 Options and warrants 206,542 449,773 Weighted average common shares outstanding, diluted 24,204,661 21,351,511 Basic earnings per common share $ 0.58 $ 0.08 Diluted earnings per common share 0.57 0.08

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of assets and liabilities measured and recorded at fair value	March 31, 2019 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 $ 24,768 $ 24,768 $ — $ — Government sponsored entity debt securities 75,587 — 75,587 — Agency mortgage-backed securities 321,451 — 321,451 — State and municipal securities 150,912 — 150,912 — Corporate securities 80,021 — 78,091 1,930 Equity securities 3,413 — 3,413 — Loans held for sale 16,851 — 16,851 — Interest rate lock commitments 5,752 — 5,752 — Interest rate swap contracts 18 — 18 — Total $ 678,773 $ 24,768 $ 652,075 $ 1,930 Liabilities Interest rate swap contracts $ 18 $ — $ 18 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 52,957 $ — $ — $ 52,957 Mortgage servicing rights held for sale 257 257 — — Impaired loans 6,734 — 4,639 2,095 Other real estate owned 47 — 47 — Assets held for sale 1,687 — 1,687 — December 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 24,650 $ 24,650 $ — $ — Government sponsored entity debt securities 75,684 — 75,684 — Agency mortgage-backed securities 326,305 — 326,305 — State and municipal securities 159,262 — 159,262 — Corporate securities 71,550 — 69,627 1,923 Equity securities 3,334 — 3,334 — Loans held for sale 30,401 — 30,401 — Interest rate lock commitments 4,492 — 4,492 — Forward commitments to sell mortgage-backed securities — — — — Interest rate swap contracts 145 — 145 — Total $ 695,823 $ 24,650 $ 669,250 $ 1,923 Liabilities Interest rate swap contracts $ 145 $ — $ 145 $ — Assets measured at fair value on a non-recurring basis: Mortgage servicing rights $ 53,447 $ — $ — $ 53,447 Mortgage servicing rights held for sale 3,545 3,545 — — Impaired loans 11,238 — 9,226 2,012 Other real estate owned 1,439 — 1,439 — Assets held for sale 1,687 — 1,687 —
Schedule of losses recognized on assets measured on a non-recurring basis	Three Months Ended March 31, (dollars in thousands) 2019 2018 Mortgage servicing rights $ 25 $ 133 Impaired loans 981 875 Other real estate owned 16 — Total loss on assets measured on a nonrecurring basis $ 1,022 $ 1,008
Schedule presenting activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)	The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019 and 2018: Corporate Securities Three Months Ended March 31, (dollars in thousands) 2019 2018 Balance, beginning of period $ 1,923 $ 4,779 Total realized in earnings (1) 22 187 Total unrealized in other comprehensive income 7 616 Net settlements (principal and interest) (22) (162) Balance, end of period $ 1,930 $ 5,420 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income.
Schedule presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3)	The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at March 31, 2019: Non-recurring Fair Value Valuation Unobservable fair value measurements (dollars in thousands technique input / assumptions Range (weighted average) Mortgage servicing rights $ 52,957 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.21%) Discount rate 10.00% - 12.00% (11.12%) Impaired loans $ 2,095 Fair value of collateral Discount for type of property, 4.32% - 7.33% (5.49%) age of appraisal and current status The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at December 31, 2018: Non-recurring Fair Value Valuation Unobservable fair value measurements (dollars in thousands technique input / assumptions Range (weighted average) Mortgage servicing rights $ 53,447 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.24%) Discount rate 10.00% - 27.00% (11.12%) Impaired loans $ 2,012 Fair value of collateral Discount for type of property, 5.00% - 7.26% (5.26%) age of appraisal and current status
Schedule of the fair value option for newly originated residential and commercial loans held for sale	The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Residential loans held for sale $ 5,896 $ 322 $ 5,574 $ 8,121 $ 484 $ 7,637 Commercial loans held for sale 10,955 267 10,688 22,280 595 21,685 Total loans held for sale $ 16,851 $ 589 $ 16,262 $ 30,401 $ 1,079 $ 29,322 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, (dollars in thousands) 2019 2018 Residential loans held for sale $ (57) $ (108) Commercial loans held for sale (328) (235) Total loans held for sale $ (385) $ (343)
Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments	March 31, 2019 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 $ 275,939 $ 275,939 $ 275,939 $ — $ — Federal funds sold 541 541 541 — — Investment securities available for sale 652,739 652,739 24,768 626,041 1,930 Equity securities 3,413 3,413 — 3,413 — Nonmarketable equity securities 46,009 46,009 — 46,009 — Loans, net 4,069,015 4,061,017 — — 4,061,017 Loans held for sale 16,851 16,851 — 16,851 — Accrued interest receivable 5,070 5,070 — 5,070 — Interest rate lock commitments 5,752 5,752 — 5,752 — Interest rate swap contracts 18 18 — 18 — Liabilities Deposits $ 4,036,288 $ 4,034,453 $ — $ 4,034,453 $ — Short-term borrowings 115,832 115,832 — 115,832 — FHLB and other borrowings 669,009 674,353 — 674,353 — Subordinated debt 94,174 95,526 — 95,526 — Trust preferred debentures 47,918 56,018 — 56,018 — Accrued interest payable 6,254 6,254 — 6,254 — Interest rate swap contracts 18 18 — 18 — December 31, 2018 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 210,780 $ 210,780 $ 210,780 $ — $ — Federal funds sold 2,920 2,920 2,920 — — Investment securities available for sale 660,785 660,785 24,650 634,212 1,923 Nonmarketable equity securities 42,472 42,472 — 42,472 — Loans, net 4,116,648 4,091,438 — — 4,091,438 Loans held for sale 30,401 30,401 — 30,401 — Accrued interest receivable 16,560 16,560 — 16,560 — Interest rate lock commitments 4,492 4,492 — 4,492 — Interest rate swap contracts 145 145 — 145 — Liabilities Deposits $ 4,074,170 $ 4,069,098 $ — $ 4,069,098 $ — Short-term borrowings 124,235 124,235 — 124,235 — FHLB and other borrowings 640,631 641,050 — 641,050 — Subordinated debt 94,134 91,926 — 91,926 — Trust preferred debentures 47,794 56,805 — 56,805 — Accrued interest payable 4,855 4,855 — 4,855 — Interest rate swap contracts 145 145 — 145 —

COMMITMENTS, CONTINGENCIES AN_2

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)	3 Months Ended
	Mar. 31, 2019
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
Schedule of loan commitments	March 31, December 31, (dollars in thousands) 2019 2018 Commitments to extend credit $ 670,694 $ 663,555 Financial guarantees – standby letters of credit 140,183 142,859

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2019
SEGMENT INFORMATION
Schedule of segment financial information	Selected business segment financial information as of and for the three months ended March 31, 2019 and 2018 were as follows: Commercial FHA Origination and Wealth (dollars in thousands) Banking Servicing Management Other Total Three Months Ended March 31, 2019 Net interest income (expense) $ 48,518 $ (176) $ — $ (2,741) $ 45,601 Provision for loan losses 3,243 — — — 3,243 Noninterest income 8,940 3,238 4,953 (56) 17,075 Noninterest expense 35,371 2,811 3,247 (332) 41,097 Income before income taxes 18,844 251 1,706 (2,465) 18,336 Income taxes (benefit) 4,975 71 140 (832) 4,354 Net income (loss) $ 13,869 $ 180 $ 1,566 $ (1,633) $ 13,982 Total assets $ 5,582,494 $ 94,797 $ 19,039 $ (54,550) $ 5,641,780 Three Months Ended March 31, 2018 Net interest income (expense) $ 40,631 $ 37 $ 85 $ (2,568) $ 38,185 Provision for loan losses 2,006 — — — 2,006 Noninterest income 9,016 3,521 4,080 (115) 16,502 Noninterest expense 44,366 3,538 2,386 (791) 49,499 Income (loss) before income taxes (benefit) 3,275 20 1,779 (1,892) 3,182 Income taxes (benefit) 1,379 407 141 (551) 1,376 Net income (loss) $ 1,896 $ (387) $ 1,638 $ (1,341) $ 1,806 Total assets $ 5,671,231 $ 91,580 $ 16,573 $ (56,012) $ 5,723,372

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
LEASES
Summary of information related to operating leases	Three Months Ended (dollars in thousands) March 31, 2019 Operating lease cost $ 708 Operating cash flows from leases 741 Right-of-use assets obtained in exchange for lease obligations 10,677 Weighted average remaining lease term 6 years Weighted average discount rate 3.12 %
Summary of projected minimum rental payments	(dollars in thousands) Amount Year ending December 31: 2019 remaining $ 2,482 2020 2,288 2021 2,160 2022 2,060 2023 1,292 Thereafter 2,057 Total future minimum lease payments 12,339 Less imputed interest (1,141) Total operating lease liabilities $ 11,198

REVENUE FROM CONTRACT WITH CU_2

REVENUE FROM CONTRACT WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from contract with customers
Summary of noninterest income, segregated by revenue	Three Months Ended March 31, (dollars in thousands) 2019 2018 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 3,617 $ 3,119 Investment advisory fees 529 465 Investment brokerage fees 219 264 Other 588 231 Service charges on deposit accounts: Nonsufficient fund fees 1,754 1,450 Other 766 517 Interchange revenues 2,680 2,045 Other income: Merchant services revenue 375 338 Other 818 1,070 Noninterest income - out-of-scope of Topic 606 5,729 7,003 Total noninterest income $ 17,075 $ 16,502

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)loan	Jan. 01, 2019USD ($)
Operating lease right-of-use asset	$ 10,677
Operating lease liabilities	$ 11,198
Number of distinct loan portfolio | loan	12
ASU 2016-02
Operating lease right-of-use asset		$ 12,100
Operating lease liabilities		$ 12,100

ACQUISITIONS - Alpine (Details)

ACQUISITIONS - Alpine (Details) $ in Thousands	Feb. 28, 2018USD ($)stateshares	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Liabilities assumed:
Goodwill		$ 164,673	$ 164,673
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	$ 22,400

INVESTMENT SECURITIES - Classif

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Available for sale securities
Amortized cost	$ 647,939
Gross unrealized gains	7,337
Gross unrealized losses	2,537
Investment securities available for sale	652,739
Equity securities	3,413	$ 3,334
U.S. Treasury securities
Available for sale securities
Amortized cost	25,009	25,018
Gross unrealized losses	241	368
Investment securities available for sale	24,768	24,650
Government sponsored entity debt securities
Available for sale securities
Amortized cost	75,620	76,554
Gross unrealized gains	133	17
Gross unrealized losses	166	887
Investment securities available for sale	75,587	75,684
Agency mortgage-backed securities
Available for sale securities
Amortized cost	321,127	329,690
Gross unrealized gains	1,840	371
Gross unrealized losses	1,516	3,756
Investment securities available for sale	321,451	326,305
State and municipal securities
Available for sale securities
Amortized cost	146,557	156,795
Gross unrealized gains	4,501	3,282
Gross unrealized losses	146	815
Investment securities available for sale	150,912	159,262
Corporate Securities
Available for sale securities
Amortized cost	79,626	72,302
Gross unrealized gains	863	383
Gross unrealized losses	468	1,135
Investment securities available for sale	$ 80,021	71,550
Equity Security
Available for sale securities
Amortized cost		660,359
Gross unrealized gains		4,053
Gross unrealized losses		6,961
Investment securities available for sale		$ 657,451

INVESTMENT SECURITIES - Continu

INVESTMENT SECURITIES - Continuous unrealized loss position (Details) $ in Thousands	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Securities available for sale:
Less than 12 Months, Fair value	$ 45,975	$ 244,251
Less than 12 Months, Unrealized loss	223	1,445
12 Months or more, Fair value	204,620	205,649
12 Months or more, Unrealized loss	2,314	5,516
Total, Fair value	250,595	449,900
Total, Unrealized loss	$ 2,537	6,961
Unrealized loss
Debt Securities Available For Sale Unrealized Loss Position Number Of Positions | item	141
Aggregate depreciation	1.00%
U.S. Treasury securities
Securities available for sale:
Less than 12 Months, Fair value	$ 5,004	5,012
Less than 12 Months, Unrealized loss	1	1
12 Months or more, Fair value	19,764	19,638
12 Months or more, Unrealized loss	240	367
Total, Fair value	24,768	24,650
Total, Unrealized loss	241	368
Government sponsored entity debt securities
Securities available for sale:
Less than 12 Months, Fair value	6,056	51,717
Less than 12 Months, Unrealized loss	8	195
12 Months or more, Fair value	34,855	23,223
12 Months or more, Unrealized loss	158	692
Total, Fair value	40,911	74,940
Total, Unrealized loss	166	887
Agency mortgage-backed securities
Securities available for sale:
Less than 12 Months, Fair value	13,390	139,115
Less than 12 Months, Unrealized loss	26	528
12 Months or more, Fair value	124,358	126,561
12 Months or more, Unrealized loss	1,490	3,228
Total, Fair value	137,748	265,676
Total, Unrealized loss	1,516	3,756
State and municipal securities
Securities available for sale:
Less than 12 Months, Fair value	5,429	15,791
Less than 12 Months, Unrealized loss	2	146
12 Months or more, Fair value	16,839	27,692
12 Months or more, Unrealized loss	144	669
Total, Fair value	22,268	43,483
Total, Unrealized loss	146	815
Corporate Securities
Securities available for sale:
Less than 12 Months, Fair value	16,096	32,616
Less than 12 Months, Unrealized loss	186	575
12 Months or more, Fair value	8,804	8,535
12 Months or more, Unrealized loss	282	560
Total, Fair value	24,900	41,151
Total, Unrealized loss	$ 468	$ 1,135

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amortized cost of available-for-sale securities, by contractual maturity
Within one year	$ 45,564,000
After one year through five years	110,602,000
After five years through ten years	142,380,000
After ten years	28,266,000
Total, single maturity date	647,939,000
Fair Value of available-for-sale securities, by contractual maturity
Within one year	45,610,000
After one year through five years	111,624,000
After five years through ten years	145,013,000
After ten years	29,041,000
Total, single maturity date	652,739,000
Proceeds from Sale of Available-for-sale Securities
Proceed from sale of investments		$ 1,609,000
Gross realized gains/losses
Gross realized gains		65,000
Gross realized losses		0
Equity securities, unrealized gains	67,000	111,000
Sales of equity securities	0	$ 0
Mortgage-backed securities
Amortized cost of available-for-sale securities, by contractual maturity
Total, single maturity date	321,127,000
Fair Value of available-for-sale securities, by contractual maturity
Total, single maturity date	$ 321,451,000

LOANS - Summary of loans (Detai

LOANS - Summary of loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Summary of loans
Loans	$ 4,092,106		$ 4,137,551
Loans, additional information
Net deferred loan fees	7,300		11,600
Unearned income	32,900		29,200
Loans held for sale	16,851		30,401
Proceeds from sales of loans held for sale	99,323	$ 154,020
Directors, executive officers, principal shareholders and affiliates
Loans to certain directors, executive officers, principal shareholders and their affiliates:
Loans outstanding to related parties	23,500		26,500
New loans to related parties and other additions	1,500
Repayments from related parties and other reductions	4,500
Commercial real estate
Summary of loans
Loans	2,642,892		2,682,268
Commercial real estate | Commercial
Summary of loans
Loans	843,089		810,884
Commercial real estate | Commercial real estate
Summary of loans
Loans	1,560,427		1,639,155
Commercial real estate | Construction and land development
Summary of loans
Loans	239,376		232,229
Other loan portfolio | Residential real estate
Summary of loans
Loans	569,051		578,048
Other loan portfolio | Consumer
Summary of loans
Loans	600,631		613,184
Other loan portfolio | Lease financing
Summary of loans
Loans	279,532		264,051
Commercial and Residential Loan
Loans, additional information
Loans held for sale	16,900		30,400
Proceeds from sales of loans held for sale	99,300	$ 154,000
Non-PCI loans
Summary of loans
Loans	4,055,170		4,094,576
Non-PCI loans | Commercial real estate
Summary of loans
Loans	2,616,060		2,649,828
Non-PCI loans | Commercial real estate | Commercial
Summary of loans
Loans	839,731		806,027
Non-PCI loans | Commercial real estate | Commercial real estate
Summary of loans
Loans	1,542,997		1,619,903
Non-PCI loans | Commercial real estate | Construction and land development
Summary of loans
Loans	233,332		223,898
Non-PCI loans | Other loan portfolio
Summary of loans
Loans	1,439,110		1,444,748
Non-PCI loans | Other loan portfolio | Residential real estate
Summary of loans
Loans	560,427		569,289
Non-PCI loans | Other loan portfolio | Consumer
Summary of loans
Loans	599,151		611,408
Non-PCI loans | Other loan portfolio | Lease financing
Summary of loans
Loans	279,532		264,051
PCI loans
Summary of loans
Loans	36,936		42,975
Customer outstanding balances	50,500		56,900
PCI loans | Commercial real estate
Summary of loans
Loans	26,832		32,440
PCI loans | Commercial real estate | Commercial
Summary of loans
Loans	3,358		4,857
PCI loans | Commercial real estate | Commercial real estate
Summary of loans
Loans	17,430		19,252
PCI loans | Commercial real estate | Construction and land development
Summary of loans
Loans	6,044		8,331
PCI loans | Other loan portfolio | Residential real estate
Summary of loans
Loans	8,624		8,759
PCI loans | Other loan portfolio | Consumer
Summary of loans
Loans	$ 1,480		$ 1,776

LOANS - Risk category (Details)

LOANS - Risk category (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)region	Dec. 31, 2018USD ($)
Risk category
Number of main regions | region	4
Loans and Leases Receivable, Gross, Total	$ 4,092,106	$ 4,137,551
Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,642,892	2,682,268
Non-PCI loans
Risk category
Loans and Leases Receivable, Gross, Total	4,055,170	4,094,576
Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,616,060	2,649,828
Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	2,466,052	2,503,221
Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	38,270	53,857
Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	73,962	61,115
Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	36,977	31,154
Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	799	481
Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	1,439,110	1,444,748
Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	1,429,576	1,435,952
Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	9,534	8,796
Commercial | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	843,089	810,884
Commercial | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	839,731	806,027
Commercial | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	788,619	748,296
Commercial | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	21,121	35,103
Commercial | Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	21,498	14,139
Commercial | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	8,493	8,489
Commercial real estate | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,560,427	1,639,155
Commercial real estate | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,542,997	1,619,903
Commercial real estate | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	1,449,480	1,536,127
Commercial real estate | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	14,627	15,306
Commercial real estate | Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	51,574	46,976
Commercial real estate | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	27,316	21,494
Construction and land development | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	239,376	232,229
Construction and land development | Non-PCI loans | Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	233,332	223,898
Construction and land development | Non-PCI loans | Commercial real estate | Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	227,953	218,798
Construction and land development | Non-PCI loans | Commercial real estate | Special mention
Risk category
Loans and Leases Receivable, Gross, Total	2,522	3,448
Construction and land development | Non-PCI loans | Commercial real estate | Substandard
Risk category
Loans and Leases Receivable, Gross, Total	890
Construction and land development | Non-PCI loans | Commercial real estate | Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	1,168	1,171
Construction and land development | Non-PCI loans | Commercial real estate | Not graded
Risk category
Loans and Leases Receivable, Gross, Total	799	481
Residential real estate | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	569,051	578,048
Residential real estate | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	560,427	569,289
Residential real estate | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	552,674	562,019
Residential real estate | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	7,753	7,270
Consumer | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	600,631	613,184
Consumer | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	599,151	611,408
Consumer | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	598,618	610,839
Consumer | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	533	569
Lease financing | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	279,532	264,051
Lease financing | Non-PCI loans | Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	279,532	264,051
Lease financing | Non-PCI loans | Other loan portfolio | Performing
Risk category
Loans and Leases Receivable, Gross, Total	278,284	263,094
Lease financing | Non-PCI loans | Other loan portfolio | Impaired
Risk category
Loans and Leases Receivable, Gross, Total	$ 1,248	$ 957

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0
Additional interest income that would have been recorded had they been current	653,000	500,000
Recognized interest income on loans modified under troubled debt restructurings	32,000	$ 30,000
PCI loans
Summary of impaired loans
Total impaired loans	36,900,000		$ 43,000,000
Non-PCI loans | Impaired
Summary of impaired loans
Total impaired loans	49,262,000		42,899,000
Commercial real estate | Commercial | Non-PCI loans | Impaired
Summary of impaired loans
Total impaired loans	8,899,000		8,928,000
Commercial real estate | Commercial real estate | Non-PCI loans | Impaired
Summary of impaired loans
Total impaired loans	29,611,000		23,868,000
Commercial real estate | Construction and land development | Non-PCI loans | Impaired
Summary of impaired loans
Total impaired loans	1,218,000		1,307,000
Other loan portfolio | Residential real estate | Non-PCI loans | Impaired
Summary of impaired loans
Total impaired loans	7,753,000		7,270,000
Other loan portfolio | Consumer | Non-PCI loans | Impaired
Summary of impaired loans
Total impaired loans	533,000		569,000
Other loan portfolio | Lease financing | Non-PCI loans | Impaired
Summary of impaired loans
Total impaired loans	$ 1,248,000		$ 957,000

LOANS - Impaired Loans Individu

LOANS - Impaired Loans Individually Evaluated (excluding PCI loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Impaired loans (excluding PCI loans) by portfolio
Difference between the recorded investment and unpaid principal balance	$ 11,800		$ 11,400
Impaired | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	19,323		20,861
With a valuation allowance, Unpaid Principal Balance	20,932		27,989
With a valuation allowance, Average Annual Recorded Investment	19,372	$ 9,297
With a related valuation allowance, Interest Income Recognized while on Impaired Status	43	41
With no related valuation allowance, Recorded Investment	29,939		22,038
With no related valuation allowance, Unpaid Principal Balance	40,092		26,301
With no related valuation allowance, Average Annual Recorded Investment	30,117	17,647
With no related valuation allowance, Interest Income Recognized while on Impaired Status	3	1
Total impaired loans	49,262		42,899
Total, Unpaid Principal Balance	61,024		54,290
Total, Related Valuation Allowance	7,880		5,985
Total, Average Annual Recorded Investment	49,489	26,944
Total, Interest Income Recognized While on Impaired Status	46	42
Commercial | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	8,191		7,945
With a valuation allowance, Unpaid Principal Balance	8,356		8,102
With a valuation allowance, Average Annual Recorded Investment	8,240	2,291
With a related valuation allowance, Interest Income Recognized while on Impaired Status	6	10
With no related valuation allowance, Recorded Investment	708		983
With no related valuation allowance, Unpaid Principal Balance	4,124		4,392
With no related valuation allowance, Average Annual Recorded Investment	723	518
Total impaired loans	8,899		8,928
Total, Unpaid Principal Balance	12,480		12,494
Total, Related Valuation Allowance	4,730		4,448
Total, Average Annual Recorded Investment	8,963	2,809
Total, Interest Income Recognized While on Impaired Status	6	10
Commercial real estate | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	5,592		7,496
With a valuation allowance, Unpaid Principal Balance	6,221		13,844
With a valuation allowance, Average Annual Recorded Investment	5,563	2,104
With a related valuation allowance, Interest Income Recognized while on Impaired Status	27	20
With no related valuation allowance, Recorded Investment	24,019		16,372
With no related valuation allowance, Unpaid Principal Balance	30,492		16,921
With no related valuation allowance, Average Annual Recorded Investment	24,153	13,731
Total impaired loans	29,611		23,868
Total, Unpaid Principal Balance	36,713		30,765
Total, Related Valuation Allowance	2,437		523
Total, Average Annual Recorded Investment	29,716	15,835
Total, Interest Income Recognized While on Impaired Status	27	20
Construction and land development | Impaired | Commercial real estate | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	125		171
With a valuation allowance, Unpaid Principal Balance	169		171
With a valuation allowance, Average Annual Recorded Investment	141	101
With a related valuation allowance, Interest Income Recognized while on Impaired Status		1
With no related valuation allowance, Recorded Investment	1,093		1,136
With no related valuation allowance, Unpaid Principal Balance	1,093		1,136
With no related valuation allowance, Average Annual Recorded Investment	1,110	739
With no related valuation allowance, Interest Income Recognized while on Impaired Status	1
Total impaired loans	1,218		1,307
Total, Unpaid Principal Balance	1,262		1,307
Total, Related Valuation Allowance	14		54
Total, Average Annual Recorded Investment	1,251	840
Total, Interest Income Recognized While on Impaired Status	1	1
Residential real estate | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	4,457		4,055
With a valuation allowance, Unpaid Principal Balance	5,203		4,662
With a valuation allowance, Average Annual Recorded Investment	4,465	3,579
With a related valuation allowance, Interest Income Recognized while on Impaired Status	10	10
With no related valuation allowance, Recorded Investment	3,296		3,215
With no related valuation allowance, Unpaid Principal Balance	3,557		3,516
With no related valuation allowance, Average Annual Recorded Investment	3,306	2,370
With no related valuation allowance, Interest Income Recognized while on Impaired Status	2	1
Total impaired loans	7,753		7,270
Total, Unpaid Principal Balance	8,760		8,178
Total, Related Valuation Allowance	512		554
Total, Average Annual Recorded Investment	7,771	5,949
Total, Interest Income Recognized While on Impaired Status	12	11
Consumer | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	522		428
With a valuation allowance, Unpaid Principal Balance	547		444
With a valuation allowance, Average Annual Recorded Investment	527	208
With no related valuation allowance, Recorded Investment	11		141
With no related valuation allowance, Unpaid Principal Balance	13		145
With no related valuation allowance, Average Annual Recorded Investment	12	42
Total impaired loans	533		569
Total, Unpaid Principal Balance	560		589
Total, Related Valuation Allowance	41		45
Total, Average Annual Recorded Investment	539	250
Lease financing | Impaired | Other loan portfolio | Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	436		766
With a valuation allowance, Unpaid Principal Balance	436		766
With a valuation allowance, Average Annual Recorded Investment	436	1,014
With no related valuation allowance, Recorded Investment	812		191
With no related valuation allowance, Unpaid Principal Balance	813		191
With no related valuation allowance, Average Annual Recorded Investment	813	247
Total impaired loans	1,248		957
Total, Unpaid Principal Balance	1,249		957
Total, Related Valuation Allowance	146		$ 361
Total, Average Annual Recorded Investment	$ 1,249	$ 1,261

LOANS - Aging Status of recorde

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	$ 4,092,106	$ 4,137,551
Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	45,285	38,187
Total Past Due	69,539	64,461
Current	3,985,631	4,030,115
Loans and Leases Receivable, Gross, Total	4,055,170	4,094,576
Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	16,074	17,494
Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	7,925	7,719
Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	255	1,061
Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,642,892	2,682,268
Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,616,060	2,649,828
Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,439,110	1,444,748
Other loan portfolio | Non-PCI loans | Impaired
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	9,534	8,796
Commercial | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	843,089	810,884
Commercial | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	8,493	8,489
Total Past Due	12,963	15,087
Current	826,768	790,940
Loans and Leases Receivable, Gross, Total	839,731	806,027
Commercial | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,323	4,013
Commercial | Commercial real estate | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	2,147	2,581
Commercial | Commercial real estate | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		4
Commercial real estate | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,560,427	1,639,155
Commercial real estate | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	27,316	21,494
Total Past Due	33,338	24,255
Current	1,509,659	1,595,648
Loans and Leases Receivable, Gross, Total	1,542,997	1,619,903
Commercial real estate | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	4,862	1,667
Commercial real estate | Commercial real estate | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	1,160	945
Commercial real estate | Commercial real estate | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		149
Construction and land development | Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	239,376	232,229
Construction and land development | Commercial real estate | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	1,168	1,171
Total Past Due	2,348	2,245
Current	230,984	221,653
Loans and Leases Receivable, Gross, Total	233,332	223,898
Construction and land development | Commercial real estate | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,020	989
Construction and land development | Commercial real estate | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	160
Construction and land development | Commercial real estate | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		85
Residential real estate | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	569,051	578,048
Residential real estate | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	6,884	5,894
Total Past Due	8,905	8,480
Current	551,522	560,809
Loans and Leases Receivable, Gross, Total	560,427	569,289
Residential real estate | Other loan portfolio | Non-PCI loans | Impaired
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	7,753	7,270
Residential real estate | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,305	1,292
Residential real estate | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	716	728
Residential real estate | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		566
Consumer | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	600,631	613,184
Consumer | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	431	388
Total Past Due	8,531	8,183
Current	590,620	603,225
Loans and Leases Receivable, Gross, Total	599,151	611,408
Consumer | Other loan portfolio | Non-PCI loans | Impaired
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	533	569
Consumer | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	4,735	5,211
Consumer | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	3,365	2,533
Consumer | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		51
Lease financing | Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	279,532	264,051
Lease financing | Other loan portfolio | Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	993	751
Total Past Due	3,454	6,211
Current	276,078	257,840
Loans and Leases Receivable, Gross, Total	279,532	264,051
Lease financing | Other loan portfolio | Non-PCI loans | Impaired
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,248	957
Lease financing | Other loan portfolio | Non-PCI loans | 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,829	4,322
Lease financing | Other loan portfolio | Non-PCI loans | 60-89 Days Past Due
Aging Status of recorded investment
Past Due	377	932
Lease financing | Other loan portfolio | Non-PCI loans | Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	$ 255	$ 206

LOANS - TDRs by portfolio (Deta

LOANS - TDRs by portfolio (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 446,000	$ 557,000
Unfunded commitments	0	0
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	3,722,000	3,651,000
TDR's Nonaccrual	12,527,000	10,362,000
Total	16,249,000	14,013,000
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	406,000	435,000
TDR's Nonaccrual	399,000	406,000
Total	805,000	841,000
Commercial real estate | Commercial real estate | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,295,000	2,225,000
TDR's Nonaccrual	10,713,000	9,103,000
Total	13,008,000	11,328,000
Construction and land development | Commercial real estate | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	50,000	51,000
TDR's Nonaccrual	17,000
Total	67,000	51,000
Residential real estate | Other loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	869,000	810,000
TDR's Nonaccrual	1,398,000	853,000
Total	2,267,000	1,663,000
Consumer | Other loan portfolio | Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	102,000	130,000
Total	$ 102,000	$ 130,000

LOANS - TDRs by portfolio - res

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)loan
Troubled debt restructurings:
Number of loans | loan	12
Pre-modification outstanding balance	$ 2,225
Post-modification outstanding balance	$ 2,092
Troubled debt restructurings that subsequently defaulted
Number of loans | loan	1
Recorded balance	$ 43
Commercial real estate | Commercial real estate
Troubled debt restructurings:
Number of loans | loan	3
Pre-modification outstanding balance	$ 1,924
Post-modification outstanding balance	$ 1,838
Construction and land development | Commercial real estate
Troubled debt restructurings:
Number of loans | loan	1
Pre-modification outstanding balance	$ 62
Post-modification outstanding balance	$ 17
Troubled debt restructurings that subsequently defaulted
Number of loans | loan	1
Recorded balance	$ 43
Residential real estate | Other loan portfolio
Troubled debt restructurings:
Number of loans | loan	7
Pre-modification outstanding balance	$ 224
Post-modification outstanding balance	$ 222
Consumer | Other loan portfolio
Troubled debt restructurings:
Number of loans | loan	1
Pre-modification outstanding balance	$ 15
Post-modification outstanding balance	$ 15

LOANS - PCI Loans - Changes in

LOANS - PCI Loans - Changes in the accretable yield for PCI loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Summary of loans
Accretion recorded as loan interest income	$ 42,358	$ 36,179
PCI loans
Changes in the accretable yield for PCI loans
Balance, beginning of period	12,240	5,732
Accretion	(1,076)	(1,161)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)	(106)	660
Reclassification from (to) non-accretable	5	1,154
Balance, end of period	$ 11,063	7,227
Alpine Bank | PCI loans
Changes in the accretable yield for PCI loans
New loans purchased		$ 842

LOANS - Allowance for loan loss

LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in allowance for loan losses :
Beginning balance	$ 20,903	$ 16,431
Provision for loan losses	3,243	2,006
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(1,382)	(1,141)
Loan recoveries	327	408
Ending balance	$ 23,091	$ 17,704

LOANS - Allowance for loan lo_2

LOANS - Allowance for loan losses by loan portfolio and recorded investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Changes in allowance for loan losses :
Beginning balance	$ 20,903	$ 16,431
Provision for loan losses	3,243	2,006
Charge-offs	(1,382)	(1,141)
Recoveries	327	408
Ending balance	23,091	17,704
Allowance for loan losses:
Loans individually evaluated for impairment			$ 7,353	$ 5,492
Loans collectively evaluated for impairment			527	493
Non-impaired loans collectively evaluated for impairment			13,759	13,350
Loans acquired with deteriorated credit quality			1,452	1,568
Total	20,903	16,431	23,091	20,903
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment			43,998	37,802
Impaired loans collectively evaluated for impairment			5,264	5,097
Non-impaired loans collectively evaluated for impairment			4,005,908	4,051,677
Loans acquired with deteriorated credit quality			36,936	42,975
Loans and Leases Receivable, Gross, Total			4,092,106	4,137,551
PCI loans
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			36,936	42,975
Commercial real estate
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			2,642,892	2,682,268
Commercial real estate | PCI loans
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			26,832	32,440
Commercial | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	9,524	5,256
Provision for loan losses	118	567
Charge-offs	(112)	(25)
Recoveries	15	104
Ending balance	9,545	5,902
Allowance for loan losses:
Loans individually evaluated for impairment			4,671	4,405
Loans collectively evaluated for impairment			59	43
Non-impaired loans collectively evaluated for impairment			4,797	4,971
Loans acquired with deteriorated credit quality			18	105
Total	9,524	5,256	9,545	9,524
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment			8,354	8,520
Impaired loans collectively evaluated for impairment			545	408
Non-impaired loans collectively evaluated for impairment			830,832	797,099
Loans acquired with deteriorated credit quality			3,358	4,857
Loans and Leases Receivable, Gross, Total			843,089	810,884
Commercial | Commercial real estate | PCI loans
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			3,358	4,857
Commercial real estate | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	4,723	5,044
Provision for loan losses	1,945	507
Charge-offs	(58)	(160)
Recoveries	7
Recoveries		94
Ending balance	6,617	5,485
Allowance for loan losses:
Loans individually evaluated for impairment			2,391	476
Loans collectively evaluated for impairment			46	47
Non-impaired loans collectively evaluated for impairment			3,375	3,356
Loans acquired with deteriorated credit quality			805	844
Total	4,723	5,044	6,617	4,723
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment			29,186	23,431
Impaired loans collectively evaluated for impairment			425	437
Non-impaired loans collectively evaluated for impairment			1,513,386	1,596,035
Loans acquired with deteriorated credit quality			17,430	19,252
Loans and Leases Receivable, Gross, Total			1,560,427	1,639,155
Commercial real estate | Commercial real estate | PCI loans
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			17,430	19,252
Construction and land development | Commercial real estate
Changes in allowance for loan losses :
Beginning balance	372	518
Provision for loan losses	63	(215)
Charge-offs	(44)
Recoveries	7	25
Ending balance	398	328
Allowance for loan losses:
Loans individually evaluated for impairment				48
Loans collectively evaluated for impairment			14	6
Non-impaired loans collectively evaluated for impairment			384	318
Total	372	518	398	372
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment			1,093	1,249
Impaired loans collectively evaluated for impairment			125	58
Non-impaired loans collectively evaluated for impairment			232,114	222,591
Loans acquired with deteriorated credit quality			6,044	8,331
Loans and Leases Receivable, Gross, Total			239,376	232,229
Construction and land development | Commercial real estate | PCI loans
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			6,044	8,331
Residential real estate | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	2,041	2,750
Provision for loan losses	514	(261)
Charge-offs	(153)	(36)
Recoveries	22	51
Ending balance	2,424	2,504
Allowance for loan losses:
Loans individually evaluated for impairment			177	233
Loans collectively evaluated for impairment			335	321
Non-impaired loans collectively evaluated for impairment			1,481	1,051
Loans acquired with deteriorated credit quality			431	436
Total	2,041	2,750	2,424	2,041
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment			4,408	3,929
Impaired loans collectively evaluated for impairment			3,345	3,341
Non-impaired loans collectively evaluated for impairment			552,674	562,019
Loans acquired with deteriorated credit quality			8,624	8,759
Loans and Leases Receivable, Gross, Total			569,051	578,048
Residential real estate | Other loan portfolio | PCI loans
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			8,624	8,759
Consumer | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	2,154	1,344
Provision for loan losses	329	304
Charge-offs	(556)	(434)
Recoveries	210	95
Ending balance	2,137	1,309
Allowance for loan losses:
Loans collectively evaluated for impairment			41	45
Non-impaired loans collectively evaluated for impairment			1,898	1,926
Loans acquired with deteriorated credit quality			198	183
Total	2,154	1,344	2,137	2,154
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment				5
Impaired loans collectively evaluated for impairment			533	564
Non-impaired loans collectively evaluated for impairment			598,618	610,839
Loans acquired with deteriorated credit quality			1,480	1,776
Loans and Leases Receivable, Gross, Total			600,631	613,184
Consumer | Other loan portfolio | PCI loans
Recorded investment (loan balance):
Loans and Leases Receivable, Gross, Total			1,480	1,776
Lease financing | Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	2,089	1,519
Provision for loan losses	274	1,104
Charge-offs	(459)	(486)
Recoveries	66	39
Ending balance	1,970	2,176
Allowance for loan losses:
Loans individually evaluated for impairment			114	330
Loans collectively evaluated for impairment			32	31
Non-impaired loans collectively evaluated for impairment			1,824	1,728
Total	$ 2,089	$ 1,519	1,970	2,089
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment			957	668
Impaired loans collectively evaluated for impairment			291	289
Non-impaired loans collectively evaluated for impairment			278,284	263,094
Loans and Leases Receivable, Gross, Total			$ 279,532	$ 264,051

PREMISES AND EQUIPMENT, NET (De

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 127,394		$ 126,230
Accumulated depreciation	(32,880)		(31,390)
Premises and equipment, net	94,514		94,840
Depreciation	1,601	$ 1,454
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	20,231		20,231
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	77,290		76,141
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 29,873		$ 29,858

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Commercial FHA Mortgage Loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	$ 3,970	$ 3,980
Residential mortgage loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	$ 861.9	$ 897.6

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in MSR (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Mortgage servicing rights:
Balance, beginning of period	$ 56,252,000	$ 55,714,000
Balance, end of period	55,787,000	56,039,000
Valuation allowances:
Balance, beginning of period	2,805,000	3,254,000
Additions	25,000	133,000
Balance, end of period	2,830,000	3,387,000
Mortgage servicing rights, net	52,957,000	52,652,000
Fair Value	52,957,000	52,652,000	$ 53,447,000	$ 52,460,000
Mortgage servicing rights held for sale	257,000		$ 3,545,000
Commercial FHA Mortgage Loans
Mortgage servicing rights:
Originated servicing	213,000	1,001,000
Amortization	(678,000)	(676,000)
Residential mortgage loans
Valuation allowances:
Sale of mortgage servicing rights held for sale	3,300,000	$ 10,200,000
Mortgage servicing rights held for sale	$ 257,000

MORTGAGE SERVICING RIGHTS - Sum

MORTGAGE SERVICING RIGHTS - Summary of key assumptions (Details) - Commercial FHA Mortgage Loans - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Assumptions Used to Estimate Fair Value
Servicing Fee	0.13%	0.13%
Interest Rate	3.67%	3.67%
Remaining Years to Maturity	30 years	30 years 1 month 6 days
Prepayment Rate	8.21%	8.24%
Servicing Cost	$ 1,000	$ 1,000
Maximum
Assumptions Used to Estimate Fair Value
Discount Rate	14.00%	14.00%
Minimum
Assumptions Used to Estimate Fair Value
Discount Rate	10.00%	10.00%

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Goodwill	$ 164,673	$ 164,673
Banking
Goodwill [Line Items]
Goodwill	149,035
Commercial FHA origination and servicing
Goodwill [Line Items]
Goodwill	10,892
Wealth management
Goodwill [Line Items]
Goodwill	$ 4,746

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Finite-lived intangible assets
Gross Carrying Amount	$ 66,483		$ 66,483
Accumulated Amortization	(30,917)		(29,107)
Total	35,566		37,376
Amortization of intangible assets	1,810	$ 1,675
Core deposits
Finite-lived intangible assets
Gross Carrying Amount	52,712		52,712
Accumulated Amortization	(26,309)		(24,803)
Total	26,403		27,909
Customer relationship
Finite-lived intangible assets
Gross Carrying Amount	13,771		13,771
Accumulated Amortization	(4,608)		(4,304)
Total	$ 9,163		$ 9,467

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	$ 549,558,000		$ 541,581,000
Fair value of asset derivatives	5,752,000		4,492,000
Net gains (losses) recognized on derivative instruments	1,300,000	$ 74,000
Interest rate lock commitments
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	275,324,000		264,710,000
Fair value of asset derivatives	5,752,000		4,492,000
Forward commitments to sell mortgage-backed securities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	274,234,000		276,871,000
Notional amount, liability derivatives	67,000		54,000
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	9,400,000		9,500,000
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	$ 18,000		$ 145,000

DERIVATIVE INSTRUMENTS - Intere

DERIVATIVE INSTRUMENTS - Interest Rate Swap Agreements (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Derivative disclosures
Fair value of asset derivatives	$ 5,752,000	$ 4,492,000
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	9,400,000	9,500,000
Interest rate swap contracts | Other assets
Derivative disclosures
Fair value of asset derivatives	$ 18,000	$ 145,000

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Classification of deposits
Noninterest-bearing demand	$ 941,344	$ 972,164
Interest-bearing:
Checking	968,844	1,002,275
Money market	802,036	862,171
Savings	457,176	442,132
Time	866,888	795,428
Total deposits	$ 4,036,288	$ 4,074,170

SHORT-TERM BORROWINGS (Details)

SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Outstanding at period-end	$ 115,832	$ 124,235
Average amount outstanding	135,337	138,135
Maximum amount outstanding at any month end	$ 138,907	$ 173,387
Weighted average interest rate:
During period	0.71%	0.51%
End of period	0.73%	0.71%
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 123,400	$ 132,200
Line of credit	0	0
Federal funds lines of credit	45,000
Commercial real estate
Short-Term Borrowings
Loans and Leases Receivable, Gross, Carrying Amount, Commercial	59,400	67,600
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 50,000	$ 56,800

FHLB ADVANCES AND OTHER BORRO_3

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2017	Mar. 31, 2019	Dec. 31, 2018
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 669,009	$ 640,631
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued		2,636	2,636
Preferred stock, par value		$ 2	$ 2
Line of Credit Facility, Maximum Borrowing Capacity		$ 45,000
FHLB advances, collateral for mortgage and home equity line of credit loans		2,110,000	$ 2,220,000
Revolving Credit Facility [Member] | Maximum
Federal Home Loan Bank Advances, Interest Rate Information
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000
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		$ 31,414	$ 32,840
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		4.75%	4.63%
Midland States Bancorp, Inc | Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt		$ 181	$ 181
Midland States Bank | Fixed Rate Term Loan
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		627,414	607,610
Midland States Bank | Fixed rate, fixed term maturing through February 2023
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 62,500	$ 87,700
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		2.50%	2.35%
Midland States Bank | Putable fixed rate loan maturing through August 2025
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 565,000	$ 520,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		2.11%	2.09%
Midland States Bank | Variable rate, fixed term maturing through March 2018
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 10,000
Midland States Bank | Fixed Rate Fixed Term Loan Maturing Through June 2019
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		2.60%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	97,628	31,259

EARNINGS PER SHARE (Details 2)

EARNINGS PER SHARE (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net income	$ 13,982	$ 1,806
Preferred dividends declared	(82)	(83)
Preferred stock, premium amortization	48	47
Net income available to common shareholders	13,948	1,770
Common shareholder dividends	(5,776)	(4,208)
Unvested restricted stock award dividends	(47)	(31)
Undistributed earnings to unvested restricted stock awards	(65)
Undistributed earnings to common shareholders	8,060	(2,469)
Basic
Common shareholder dividends	(5,776)	(4,208)
Undistributed earnings to common shareholders	8,060	(2,469)
Net income available to common shareholders	13,836	1,739
Diluted
Common shareholder dividends	(5,776)	(4,208)
Undistributed earnings to common shareholders	8,060	(2,469)
Net income available to common shareholders	13,836	1,739
Add back:
Total common shareholders earnings, diluted	$ 13,836	$ 1,739
Weighted average common shares outstanding, basic (In shares)	23,998,119	20,901,738
Weighted average common shares outstanding, diluted (In shares)	24,204,661	21,351,511
Basic earnings per common share (In dollars per share)	$ 0.58	$ 0.08
Diluted earnings per common share (In dollars per share)	$ 0.57	$ 0.08
Options and warrants
Add back:
Options and warrants	206,542	449,773

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Assets
Investment securities available for sale	$ 652,739
Equity securities	3,413		$ 3,334
Loans held for sale	16,851		30,401
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	257		3,545
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights	25	$ 133
Impaired loans	981	875
Other real estate owned	16
Total loss on assets measured on a nonrecurring basis	1,022	$ 1,008
U.S. Treasury securities
Assets
Investment securities available for sale	24,768		24,650
Government sponsored entity debt securities
Assets
Investment securities available for sale	75,587		75,684
State and municipal securities
Assets
Investment securities available for sale	150,912		159,262
Corporate Securities
Assets
Investment securities available for sale	80,021		71,550
Equity Security
Assets
Investment securities available for sale			657,451
Level 1
Assets
Investment securities available for sale	24,768		24,650
Level 2
Assets
Investment securities available for sale	626,041		634,212
Equity securities	3,413
Loans held for sale	16,851		30,401
Level 2 | Interest rate lock commitments
Assets
Derivative Assets	5,752		4,492
Level 2 | Interest rate swap contracts
Assets
Derivative Assets	18		145
Liabilities
Derivative liability	18		145
Level 3
Assets
Investment securities available for sale	1,930		1,923
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	53,000		53,400
Recurring member
Assets
Loans held for sale	16,851		30,401
Total Assets	678,773		695,823
Recurring member | U.S. Treasury securities
Assets
Investment securities available for sale	24,768		24,650
Recurring member | Government sponsored entity debt securities
Assets
Investment securities available for sale	75,587		75,684
Recurring member | Agency mortgage-backed securities
Assets
Investment securities available for sale	321,451		326,305
Recurring member | State and municipal securities
Assets
Investment securities available for sale	150,912		159,262
Recurring member | Corporate Securities
Assets
Investment securities available for sale	80,021		71,550
Recurring member | Equity Security
Assets
Equity securities	3,413		3,334
Recurring member | Interest rate lock commitments
Assets
Derivative Assets	5,752		4,492
Recurring member | Interest rate swap contracts
Assets
Derivative Assets	18		145
Liabilities
Derivative liability	18		145
Recurring member | Level 1
Assets
Total Assets	24,768		24,650
Recurring member | Level 1 | U.S. Treasury securities
Assets
Investment securities available for sale	24,768		24,650
Recurring member | Level 2
Assets
Loans held for sale	16,851		30,401
Total Assets	652,075		669,250
Recurring member | Level 2 | Government sponsored entity debt securities
Assets
Investment securities available for sale	75,587		75,684
Recurring member | Level 2 | Agency mortgage-backed securities
Assets
Investment securities available for sale	321,451		326,305
Recurring member | Level 2 | State and municipal securities
Assets
Investment securities available for sale	150,912		159,262
Recurring member | Level 2 | Corporate Securities
Assets
Investment securities available for sale	78,091		69,627
Recurring member | Level 2 | Equity Security
Assets
Equity securities	3,413		3,334
Recurring member | Level 2 | Interest rate lock commitments
Assets
Derivative Assets	5,752		4,492
Recurring member | Level 2 | Interest rate swap contracts
Assets
Derivative Assets	18		145
Liabilities
Derivative liability	18		145
Recurring member | Level 3
Assets
Total Assets	1,930		1,923
Recurring member | Level 3 | Corporate Securities
Assets
Investment securities available for sale	1,930		1,923
Non recurring member
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	52,957		53,447
Mortgage servicing rights held for sale	257		3,545
Impaired loans	6,734		11,238
Other real estate owned	47		1,439
Assets held for sale	1,687		1,687
Non recurring member | Level 1
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	257		3,545
Non recurring member | Level 2
Assets measured at fair value on a non-recurring basis:
Impaired loans	4,639		9,226
Other real estate owned	47		1,439
Assets held for sale	1,687		1,687
Non recurring member | Level 3
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	52,957		53,447
Impaired loans	$ 2,095		$ 2,012

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - Corporate Securities - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 1,923	$ 4,779
Total realized in earnings	22	187
Total unrealized in other comprehensive income	7	616
Net settlements (principal and interest)	(22)	(162)
Ending balance	$ 1,930	$ 5,420

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) $ in Thousands	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)item
Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	$ 52,957	$ 53,447
Impaired loans	6,734	11,238
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	53,000	53,400
Level 3 | Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	52,957	53,447
Impaired loans	$ 2,095	$ 2,012
Level 3 | Non recurring member | Mortgage servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Level 3 | Non recurring member | Discounted cash flow | Mortgage servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	$ 52,957	$ 53,447
Level 3 | Non recurring member | Fair value of collateral | Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 2,095	$ 2,012
Minimum | Level 3 | Non recurring member | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset | item	0.10	0.10
Minimum | Level 3 | Non recurring member | Measurement Input, Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset | item	0.08	0.08
Minimum | Level 3 | Non recurring member | Measurement Input Discount Rate For Type Of Property Age Of Appraisal And Current Status [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans	0.0432	0.05
Maximum | Level 3 | Non recurring member | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset | item	0.12	0.27
Maximum | Level 3 | Non recurring member | Measurement Input, Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset | item	0.18	0.18
Maximum | Level 3 | Non recurring member | Measurement Input Discount Rate For Type Of Property Age Of Appraisal And Current Status [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans	0.0733	0.0726
Weighted average | Level 3 | Non recurring member | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset | item	0.1112	0.1112
Weighted average | Level 3 | Non recurring member | Measurement Input, Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset | item	0.0821	0.0824
Weighted average | Level 3 | Non recurring member | Measurement Input Discount Rate For Type Of Property Age Of Appraisal And Current Status [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans	0.0549	0.0526

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
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 16,851		$ 30,401
Difference	589		1,079
Contractual principal	16,262		29,322
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(385)	$ (343)
Residential loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	5,896		8,121
Difference	322		484
Contractual principal	5,574		7,637
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(57)	(108)
Commercial real estate
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	10,955		22,280
Difference	267		595
Contractual principal	10,688		$ 21,685
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ (328)	$ (235)

FAIR VALUE OF FINANCIAL INSTR_7

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Investment securities available for sale	$ 652,739
Equity securities	3,413	$ 3,334
Loans held for sale	16,851	30,401
Accrued interest receivable	16,669	16,560
Liabilities
Trust preferred debentures	47,918	47,794
Accrued interest payable	6,254	4,855
Level 1
Assets
Cash and due from banks	275,939	210,780
Federal funds sold	541	2,920
Investment securities available for sale	24,768	24,650
Level 2
Assets
Investment securities available for sale	626,041	634,212
Equity securities	3,413
Nonmarketable equity securities	46,009	42,472
Loans held for sale	16,851	30,401
Accrued interest receivable	5,070	16,560
Liabilities
Deposits	4,034,453	4,069,098
Short-term borrowings	115,832	124,235
FHLB and other borrowings	674,353	641,050
Subordinated debt	95,526	91,926
Trust preferred debentures	56,018	56,805
Accrued interest payable	6,254	4,855
Level 3
Assets
Investment securities available for sale	1,930	1,923
Loans, net	4,061,017	4,091,438
Carrying value
Assets
Cash and due from banks	275,939	210,780
Federal funds sold	541	2,920
Investment securities available for sale	652,739	660,785
Equity securities	3,413
Nonmarketable equity securities	46,009	42,472
Loans, net	4,069,015	4,116,648
Loans held for sale	16,851	30,401
Accrued interest receivable	5,070	16,560
Liabilities
Deposits	4,036,288	4,074,170
Short-term borrowings	115,832	124,235
FHLB and other borrowings	669,009	640,631
Subordinated debt	94,174	94,134
Trust preferred debentures	47,918	47,794
Accrued interest payable	6,254	4,855
Fair value
Assets
Cash and due from banks	275,939	210,780
Federal funds sold	541	2,920
Investment securities available for sale	652,739	660,785
Equity securities	3,413
Nonmarketable equity securities	46,009	42,472
Loans, net	4,061,017	4,091,438
Loans held for sale	16,851	30,401
Accrued interest receivable	5,070	16,560
Liabilities
Deposits	4,034,453	4,069,098
Short-term borrowings	115,832	124,235
FHLB and other borrowings	674,353	641,050
Subordinated debt	95,526	91,926
Trust preferred debentures	56,018	56,805
Accrued interest payable	6,254	4,855
Interest rate lock commitments | Level 2
Assets
Derivative Assets	5,752	4,492
Interest rate lock commitments | Carrying value
Assets
Derivative Assets	5,752	4,492
Interest rate lock commitments | Fair value
Assets
Derivative Assets	5,752	4,492
Interest rate swap contracts | Level 2
Assets
Derivative Assets	18	145
Liabilities
Derivative Liability	18	145
Interest rate swap contracts | Carrying value
Assets
Derivative Assets	18	145
Liabilities
Derivative Liability	18	145
Interest rate swap contracts | Fair value
Assets
Derivative Assets	18	145
Liabilities
Derivative Liability	18	145
Corporate Securities
Assets
Investment securities available for sale	$ 80,021	$ 71,550

COMMITMENTS, CONTINGENCIES AN_3

COMMITMENTS, CONTINGENCIES AND CREDIT RISK - Maturities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Anticipated material loss		$ 0
Losses as a result of make whole requests and loan repurchases	$ 20,000
Liability for unresolved repurchase demands		289,000	$ 492,000
Commitments to extend credit
Loan commitments		670,694,000	663,555,000
Financial guarantees - standby letters of credit
Loan commitments		$ 140,183,000	$ 142,859,000

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 45,601	$ 38,185
Provision for loan losses	3,243	2,006
Noninterest income	17,075	16,502
Noninterest expense	41,097	49,499
Income (loss) before income taxes (benefit)	18,336	3,182
Income taxes (benefit)	4,354	1,376
Net income (loss)	13,982	1,806
Total assets	5,641,780	5,723,372	$ 5,637,673
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	48,518	40,631
Provision for loan losses	3,243	2,006
Noninterest income	8,940	9,016
Noninterest expense	35,371	44,366
Income (loss) before income taxes (benefit)	18,844	3,275
Income taxes (benefit)	4,975	1,379
Net income (loss)	13,869	1,896
Total assets	5,582,494	5,671,231
Commercial FHA origination and servicing
Segment Reporting Information [Line Items]
Net interest income (expense)	(176)	37
Noninterest income	3,238	3,521
Noninterest expense	2,811	3,538
Income (loss) before income taxes (benefit)	251	20
Income taxes (benefit)	71	407
Net income (loss)	180	(387)
Total assets	94,797	91,580
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)		85
Noninterest income	4,953	4,080
Noninterest expense	3,247	2,386
Income (loss) before income taxes (benefit)	1,706	1,779
Income taxes (benefit)	140	141
Net income (loss)	1,566	1,638
Total assets	19,039	16,573
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(2,741)	(2,568)
Noninterest income	(56)	(115)
Noninterest expense	(332)	(791)
Income (loss) before income taxes (benefit)	(2,465)	(1,892)
Income taxes (benefit)	(832)	(551)
Net income (loss)	(1,633)	(1,341)
Total assets	$ (54,550)	$ (56,012)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Chairman
Related Party Transaction [Line Items]
Payments to related party	$ 210,000

LEASES (Details)

LEASES (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
LEASES
Options to extend the leases	true
Renewal term of lease	5 years
Operating lease cost	$ 708
Operating cash flows from leases	741
Right-of-use assets obtained in exchange for lease obligations	$ 10,677
Weighted average remaining lease term	6 years
Weighted average discount rate	3.12%
Projected minimum rental payments
2019 remaining	$ 2,482
2020	2,288
2021	2,160
2022	2,060
2023	1,292
Thereafter	2,057
Total future minimum lease payments	12,339
Less imputed interest	(1,141)
Total operating lease liabilities	$ 11,198
Minimum
LEASES
Remaining lease terms	2 months
Maximum
LEASES
Remaining lease terms	13 years

REVENUE FROM CONTRACT WITH CU_3

REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	$ 5,729
Total noninterest income	$ 17,075	$ 16,502
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		7,003
Total noninterest income		16,502
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	$ 3,617
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		3,119
Investment advisory fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	529
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		465
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	219
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		264
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	588
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		231
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	1,754
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		1,450
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	766
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		517
Interchange revenues
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	2,680
Interchange revenues | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		2,045
Merchant services revenue
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	375
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		338
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	$ 818
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606		$ 1,070

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands	Apr. 02, 2019USD ($)shares	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)item	Mar. 31, 2018USD ($)
Subsequent Event [Line Items]
Total assets		$ 5,641,780	$ 5,637,673	$ 5,723,372
Loans		4,092,106	4,137,551
Total deposits		$ 4,036,288	$ 4,074,170
HomeStar Financial Group, Inc.
Subsequent Event [Line Items]
Number of banking centers | item			5
Total assets			$ 375,400
Loans			222,700
Total deposits			$ 333,100
Subsequent Events | Minimum | HomeStar Financial Group, Inc.
Subsequent Event [Line Items]
Adjusted shareholders equity	$ 10,400
Subsequent Events | HomeStar Financial Group, Inc.
Subsequent Event [Line Items]
Total consideration	$ 9,900
Shares issued | shares	405,000
Cash to pay outstanding trust preferred securities and subordinated debentures plus accrued interest	$ 23,500