Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Banner Corporation | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 946,673 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Voting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 33,424,524 | |
Nonvoting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 88,478 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 161,710 | $ 117,657 |
Interest bearing deposits | 84,207 | 144,260 |
Total cash and cash equivalents | 245,917 | 261,917 |
Securities—trading, amortized cost $36,119 and $39,344, respectively | 30,889 | 34,134 |
Securities—available-for-sale, amortized cost $993,913 and $1,139,740, respectively | 1,006,414 | 1,138,573 |
Securities—held-to-maturity, fair value $283,303 and $226,627, respectively | 271,975 | 220,666 |
Federal Home Loan Bank (FHLB) stock | 12,826 | 16,057 |
Loans held for sale | 123,144 | 44,712 |
Loans receivable | 7,398,637 | 7,314,504 |
Allowance for loan losses | 84,220 | 78,008 |
Net loans | 7,314,417 | 7,236,496 |
Accrued interest receivable | 30,345 | 29,627 |
Real estate owned (REO), held for sale, net | 4,717 | 11,627 |
Property and equipment, net | 167,621 | 167,604 |
Goodwill | 244,583 | 247,738 |
Other intangibles, net | 31,934 | 37,472 |
Bank-owned life insurance (BOLI) | 158,831 | 156,865 |
Deferred tax assets, net | 124,830 | 134,970 |
Other assets | 72,585 | 57,840 |
Total assets | 9,841,028 | 9,796,298 |
Deposits: | ||
Non-interest-bearing | 3,190,293 | 2,619,618 |
Interest-bearing transaction and savings accounts | 3,798,668 | 4,081,580 |
Interest-bearing certificates | 1,123,011 | 1,353,870 |
Total deposits | 8,111,972 | 8,055,068 |
Advances from FHLB at fair value | 62,342 | 133,381 |
Other borrowings | 108,911 | 98,325 |
Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) | 94,364 | 92,480 |
Accrued expenses and other liabilities | 92,783 | 76,511 |
Deferred compensation | 39,385 | 40,474 |
Total liabilities | 8,509,757 | 8,496,239 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock - $0.01 par value per share, 500,000 shares authorized; no shares outstanding at September 30, 2016 and December 31, 2015 | 0 | 0 |
Retained earnings | 80,053 | 39,615 |
Carrying value of shares held in trust for stock related compensation plans | 7,241 | 6,928 |
Liability for common stock issued to deferred, stock related, compensation plans | 7,241 | 6,928 |
Accumulated other comprehensive income (loss) | 8,013 | (730) |
Total shareholders' equity | 1,331,271 | 1,300,059 |
Total liabilities & shareholders' equity | 9,841,028 | 9,796,298 |
Voting Common Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Common stock and paid in capital | 1,241,816 | 1,195,755 |
Nonvoting Common Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Common stock and paid in capital | $ 1,389 | $ 65,419 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Securities—trading, amortized cost basis | $ 36,119 | $ 39,344 |
Securities—available-for-sale, amortized cost basis | 993,913 | 1,139,740 |
Securities—held-to-maturity, fair value | $ 283,303 | $ 226,627 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, share par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Voting Common Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, share par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 33,778,833 | 32,817,789 |
Common stock, shares outstanding | 33,778,833 | 32,817,789 |
Nonvoting Common Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, share par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 88,478 | 1,424,466 |
Common stock, shares outstanding | 88,478 | 1,424,466 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
INTEREST INCOME: | ||||
Loans receivable | $ 89,805 | $ 51,749 | $ 265,697 | $ 149,192 |
Mortgage-backed securities | 4,803 | 1,307 | 15,467 | 3,609 |
Securities and cash equivalents | 3,241 | 1,737 | 9,306 | 5,138 |
Total interest income | 97,849 | 54,793 | 290,470 | 157,939 |
INTEREST EXPENSE: | ||||
Deposits | 2,784 | 1,738 | 8,501 | 5,240 |
FHLB advances | 256 | 4 | 874 | 24 |
Other borrowings | 82 | 47 | 234 | 137 |
Junior subordinated debentures | 1,019 | 816 | 2,962 | 2,357 |
Total interest expense | 4,141 | 2,605 | 12,571 | 7,758 |
Net interest income | 93,708 | 52,188 | 277,899 | 150,181 |
PROVISION FOR LOAN LOSSES | 2,000 | 0 | 4,000 | 0 |
Net interest income after provision for loan losses | 91,708 | 52,188 | 273,899 | 150,181 |
NON-INTEREST INCOME: | ||||
Deposit fees and other service charges | 12,927 | 9,746 | 36,957 | 27,435 |
Mortgage banking operations | 8,141 | 4,426 | 20,409 | 13,238 |
Bank-owned life insurance (BOLI) | 1,333 | 550 | 3,646 | 1,441 |
Miscellaneous | 1,344 | 489 | 3,936 | 1,623 |
Other operating income | 23,745 | 15,211 | 64,948 | 43,737 |
Net gain (loss) on sale of securities | 891 | 0 | 531 | (537) |
Net change in valuation of financial instruments carried at fair value | (1,124) | (1,113) | (1,472) | 735 |
Total non-interest income | 23,512 | 14,098 | 64,007 | 43,935 |
NON-INTEREST EXPENSE: | ||||
Salary and employee benefits | 44,758 | 27,026 | 136,497 | 78,057 |
Less capitalized loan origination costs | (4,953) | (3,747) | (14,110) | (10,372) |
Occupancy and equipment | 10,979 | 6,470 | 32,419 | 18,833 |
Information/computer data services | 4,836 | 2,219 | 14,607 | 6,744 |
Payment and card processing expenses | 5,878 | 4,168 | 16,164 | 10,926 |
Professional services | 2,258 | 951 | 5,736 | 2,489 |
Advertising and marketing | 2,282 | 1,959 | 6,489 | 5,767 |
Deposit insurance | 890 | 713 | 3,539 | 1,905 |
State/municipal business and use taxes | 956 | 475 | 2,564 | 1,383 |
REO operations | (21) | (2) | 513 | 190 |
Amortization of core deposit intangibles | 1,724 | 286 | 5,339 | 1,268 |
Miscellaneous | 7,785 | 3,972 | 22,311 | 11,416 |
Operating expenses, before acquisition-related costs | 77,372 | 44,490 | 232,068 | 128,606 |
Acquisition-related costs | 1,720 | 2,207 | 10,945 | 7,741 |
Total non-interest expense | 79,092 | 46,697 | 243,013 | 136,347 |
Income before provision for income taxes | 36,128 | 19,589 | 94,893 | 57,769 |
PROVISION FOR INCOME TAXES | 12,277 | 6,642 | 32,312 | 19,440 |
NET INCOME | $ 23,851 | $ 12,947 | $ 62,581 | $ 38,329 |
Earnings per common share: | ||||
Basic | $ 0.70 | $ 0.62 | $ 1.84 | $ 1.88 |
Diluted | 0.70 | 0.62 | 1.83 | 1.87 |
Cumulative dividends declared per common share | $ 0.23 | $ 0.18 | $ 0.65 | $ 0.54 |
Weighted average number of common shares outstanding, Basic | 34,045,225 | 20,755,394 | 34,050,459 | 20,417,601 |
Weighted average number of common shares outstanding, Diluted | 34,124,611 | 20,821,377 | 34,104,875 | 20,467,609 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 23,851 | $ 12,947 | $ 62,581 | $ 38,329 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF INCOME TAXES: | ||||
Unrealized holding gain (loss) on available-for-sale securities arising during the period | (4,659) | 1,169 | 14,043 | 2,051 |
Income tax benefit (expense) related to available-for-sale securities unrealized holding gain or loss | 1,677 | (421) | (5,060) | (738) |
Reclassification for net gains on available-for-sale securities realized in earnings | (735) | 0 | (376) | (125) |
Income tax expense related to available-for-sale securities realized gains | 265 | 0 | 136 | 45 |
Other comprehensive income (loss) | (3,452) | 748 | 8,743 | 1,233 |
COMPREHENSIVE INCOME | $ 20,399 | $ 13,695 | $ 71,324 | $ 39,562 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Common Stock and Paid in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning of the period (in shares) at Dec. 31, 2014 | 19,571,548 | ||||
Balance, beginning of the period at Dec. 31, 2014 | $ 582,888 | $ 568,882 | $ 14,264 | $ (258) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 45,222 | 45,222 | |||
Other comprehensive income, net of income tax | (472) | (472) | |||
Accrual of dividends on common stock | (19,871) | (19,871) | |||
Proceeds from issuance of common stock for stockholder reinvestment program (in shares) | 810 | ||||
Proceeds from issuance of common stock for stockholder reinvestment program | 34 | 34 | |||
Issuance of restricted stock, net, and recognition of share-based compensation (in shares) | 120,043 | ||||
Issuance of restricted stock, net, and recognition of share-based compensation | $ 3,088 | 3,088 | |||
Issuance of shares for acquisitions (in shares) | 14,549,854 | ||||
Issuance of shares for acquisitions | $ 688,773 | 688,773 | |||
Excess tax benefit on stock-based compensation | 397 | 397 | |||
Balance, end of the period (in shares) at Dec. 31, 2015 | 34,242,255 | ||||
Balance, end of the period at Dec. 31, 2015 | 1,300,059 | 1,261,174 | 39,615 | (730) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 62,581 | 62,581 | |||
Other comprehensive income, net of income tax | 8,743 | 8,743 | |||
Accrual of dividends on common stock | $ (22,143) | (22,143) | |||
Repurchase of common stock under the terms of the repurchase plan (in shares) | 484,350 | ||||
Repurchase of common stock under the terms of the repurchase plan | $ (21,098) | ||||
Issuance of restricted stock, net, and recognition of share-based compensation (in shares) | 109,406 | ||||
Issuance of restricted stock, net, and recognition of share-based compensation | 3,129 | 3,129 | |||
Balance, end of the period (in shares) at Sep. 30, 2016 | 33,867,311 | ||||
Balance, end of the period at Sep. 30, 2016 | $ 1,331,271 | $ 1,243,205 | $ 80,053 | $ 8,013 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cumulative dividends declared per common share | $ 0.23 | $ 0.18 | $ 0.65 | $ 0.54 | $ 0.72 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 62,581 | $ 38,329 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation | 9,219 | 6,279 |
Deferred income and expense, net of amortization | 419 | 2,194 |
Amortization of core deposit intangibles | 5,339 | 1,268 |
(Gain) loss on sale of securities | (531) | 537 |
Net change in valuation of financial instruments carried at fair value | 1,472 | (735) |
Purchases of securities—trading | (1,725) | (6,337) |
Proceeds from sales of securities—trading | 1,682 | 2,485 |
Principal repayments and maturities of securities—trading | 3,527 | 7,905 |
Decrease in deferred taxes | (10,747) | (97) |
Increase in current taxes payable | 2,108 | 2,800 |
Equity-based compensation | 3,129 | 1,944 |
Increase in cash surrender value of BOLI | (3,628) | (1,425) |
Gain on sale of loans, net of capitalized servicing rights | (14,583) | (8,139) |
Gain on disposal of real estate held for sale and property and equipment | (748) | (338) |
Provision for loan losses | 4,000 | 0 |
Provision for losses on real estate held for sale | 804 | 216 |
Origination of loans held for sale | (753,714) | (455,178) |
Proceeds from sales of loans held for sale | 691,355 | 462,967 |
Net change in: | ||
Other assets | (20,428) | (5,888) |
Other liabilities | 13,560 | 1,625 |
Net cash provided from operating activities | 14,585 | 50,606 |
INVESTING ACTIVITIES: | ||
Purchases of securities—available-for-sale | (242,222) | (93,508) |
Principal repayments and maturities of securities—available-for-sale | 143,244 | 57,301 |
Proceeds from sales of securities—available-for-sale | 233,252 | 40,293 |
Purchases of securities—held-to-maturity | (60,344) | (11,490) |
Principal repayments and maturities of securities—held-to-maturity | 7,458 | 9,609 |
Loan originations, net of principal repayments | (34,328) | (78,947) |
Purchases of loans and participating interest in loans | (230,778) | (243,282) |
Proceeds from sales of other loans | 193,939 | 29,238 |
Net cash received from acquisitions | 0 | 78,599 |
Purchases of property and equipment | (9,223) | (9,847) |
Proceeds from sale of real estate held for sale, net | 8,021 | 3,155 |
Proceeds from FHLB stock repurchase program | 70,237 | 21,453 |
Purchase of FHLB stock | (67,006) | (648) |
Other | 1,922 | 241 |
Net cash provided from (used by) investing activities | 14,172 | (197,833) |
FINANCING ACTIVITIES: | ||
Increase in deposits, net | 56,904 | 172,298 |
Repayment of FHLB advances | 70,607 | 15,806 |
Increase in other borrowings, net | 10,586 | 10,899 |
Cash dividends paid | (20,542) | (11,031) |
Cash proceeds from issuance of common stock for shareholder reinvestment plan | 0 | 34 |
Cash paid for the repurchase of common stock | (21,098) | 0 |
Net cash (used by) provided from financing activities | (44,757) | 156,394 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (16,000) | 9,167 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 261,917 | 126,072 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 245,917 | 135,239 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid in cash | 12,781 | 7,825 |
Taxes paid, net of refunds received in cash | 23,751 | 16,491 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Loans, net of discounts, specific loss allowances and unearned income, transferred to real estate owned and other repossessed assets | 758 | 3,251 |
ACQUISITIONS (Note 3): | ||
Assets acquired | 0 | 370,306 |
Liabilities assumed | $ 0 | $ 327,548 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated interim financial statements include the accounts of Banner Corporation (the Company or Banner), a bank holding company incorporated in the State of Washington and its wholly-owned subsidiaries, Banner Bank and Islanders Bank (the Banks). These unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2016 for potential recognition or disclosure. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. Certain reclassifications have been made to the 2015 Consolidated Financial Statements and/or schedules to conform to the 2016 presentation. These reclassifications may have affected certain ratios for the prior periods. The effect of these reclassifications is considered immaterial. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, management has identified several accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are significant to an understanding of Banner’s financial statements. These policies relate to (i) the methodology for the recognition of interest income, (ii) determination of the provision and allowance for loan losses, (iii) the valuation of financial assets and liabilities recorded at fair value, including other-than-temporary impairment (OTTI) losses, (iv) the valuation of intangibles, such as goodwill, core deposit intangibles (CDI) and mortgage servicing rights, (v) the valuation of real estate held for sale, (vi) the valuation of assets and liabilities acquired in business combinations and subsequent recognition of related income and expense, and (vii) the valuation or recognition of deferred tax assets and liabilities. These policies and judgments, estimates and assumptions are described in greater detail in subsequent notes to the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations (Critical Accounting Policies) in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. There have been no significant changes in our application of accounting policies during the first nine months of 2016 . During the nine months ended September 30, 2016 , the 1.3 million shares of non-voting common stock issued in connection with the acquisition of Starbuck Bancshares, Inc. and its subsidiary, AmericanWest Bank were sold by the original holder of the shares. These shares contained a provision where they would automatically convert from non-voting to voting upon a permitted transfer of the shares. Therefore, these shares are included in Banner's voting common stock outstanding as of September 30, 2016 . The information included in this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the SEC ( 2015 Form 10-K). Interim results are not necessarily indicative of results for a full year or any other interim period. |
ACCOUNTING STANDARDS RECENTLY I
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED | ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers , which creates Accounting Standard Codification (ASC) Topic 606 and supersedes ASC Topic 605, Revenue Recognition. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. Under the terms of ASU 2015-14 the standard is effective for interim and annual periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions of ASU No. 2014-09 to determine the potential impact the standard will have on the Company’s Consolidated Financial Statements. In April 2016, FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing . The amendments in this ASU do not change the core principle of the guidance in Topic 606. Rather, the amendments in this ASU clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this ASU affect the guidance in ASU 2014-09, discussed above, which is not yet effective. The effective date and transition requirements for the amendments in this ASU are the same as the effective date and transition requirements in Topic 606 (Revenues from Contracts with Customers). The Company is evaluating the provisions of this ASU in conjunction with ASU No. 2014-09 to determine the potential impact Topic 606 and its amendments will have on the Company’s Consolidated Financial Statements. In May 2016, FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients , amending ASC Topic 606 (Revenue from Contracts with Customers). The core principle of the guidance in Topic 606 is that an entity should recognize revenue to represent the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU do not change the core principle of the guidance in Topic 606. Rather, the amendments in this ASU affect only several narrow aspects of Topic 606. The amendments in this ASU affect the guidance in ASU 2014-09, discussed above, which is not yet effective. The effective date and transition requirements for the amendments in this ASU are the same as the effective date and transition requirements in Topic 606 (Revenues from Contracts with Customers). The Company is evaluating the provisions of this ASU in conjunction with ASU No. 2014-09 to determine the potential impact Topic 606 and its amendments will have on the Company’s Consolidated Financial Statements. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASU require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value under certain circumstances and require enhanced disclosures about those investments. This ASU simplifies the impairment assessment of equity investments without readily determinable fair values. This ASU also eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The amendments in this ASU require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this ASU require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU No. 2016-01 to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. Leases (Topic 842) In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this ASU require lessees to recognize the following for all leases (with the exception of short-term) at the commencement date; a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU leave lessor accounting largely unchanged, although certain targeted improvements were made to align lessor accounting with the lessee accounting model. This ASU simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of ASU No. 2016-02 to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. Derivatives and Hedging (Topic 815) In March 2016, FASB issued ASU No. 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships . The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 (Derivatives and Hedging) does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. An entity has an option to apply the amendments in this ASU on either a prospective basis or a modified retrospective basis. Early adoption is permitted, including adoption in an interim period. At September 30, 2016, Banner had four swap relationships using hedge accounting with a total market value of $868,000. This ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2016, FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments . The amendments in this ASU clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. To determine how to account for debt instruments with embedded features, including contingent put and call options, an entity is required to assess whether the embedded derivatives must be bifurcated from the host contract and accounted for separately. Part of this assessment consists of evaluating whether the embedded derivative features are clearly and closely related to the debt host. Under existing guidance, for contingently exercisable options to be considered clearly and closely related to a debt host, they must be indexed only to interest rates or credit risk. ASU 2016-06 addresses inconsistent interpretations of whether an event that triggers an entity’s ability to exercise the embedded contingent option must be indexed to interest rates or credit risk for that option to qualify as clearly and closely related. Diversity in practice has developed because the existing four-step decision sequence in ASC 815 focuses only on whether the payoff was indexed to something other than an interest rate or credit risk. As a result, entities have been uncertain whether they should (1) determine whether the embedded features are clearly and closely related to the debt host solely on the basis of the four-step decision sequence or (2) first apply the four-step decision sequence and then also evaluate whether the event triggering the exercisability of the contingent put or call option is indexed only to an interest rate or credit risk. This ASU clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815 as amended by this ASU. The entity does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. This ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. Compensation—Stock Compensation (Topic 718) In March 2016, FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting . FASB issued this ASU as part of its Simplification Initiative. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. Amendments in this ASU relate to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments in this ASU require recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments in this ASU related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. This ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. Financial Instruments—Credit Losses (Topic 326) In June 2016, FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments . Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is still evaluating the effects this ASU will have on the Company’s Consolidated Financial Statements. Statement of Cash Flows (Topic 230) In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments . There is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other Topics. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. Those eight issues are 1) debt prepayment or debt extinguishment costs, 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, 3) contingent consideration payments made after a business combination, 4) proceeds from the settlement of insurance claims, 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, 6) distributions received from equity method investees, 7) beneficial interests in securitization transactions, and 8) separately identifiable cash flows and application of the predominance principle. Current GAAP either is unclear or does not include specific guidance on these eight cash flow classification issues. These amendments provide guidance for each of the eight issues, thereby reducing current and potential future diversity in practice. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. This ASU is not expected to have a material impact on the Company's Consolidated Financial Statements. |
BUSINESS COMBINATIONS BUSINESS
BUSINESS COMBINATIONS BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS All business combinations are accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed, both tangible and intangible, and consideration exchanged were recorded at acquisition date fair values. The excess cost over fair value of net assets acquired is recorded as goodwill. In the event that the fair value of net assets acquired exceeds the purchase price, including fair value of liabilities assumed, a bargain purchase gain is recorded on the acquisition. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values becomes available. Acquisition of Starbuck Bancshares, Inc. Effective as of the close of business on October 1, 2015 , the Company acquired Starbuck Bancshares, Inc. and its subsidiary, AmericanWest Bank (AmericanWest), a Washington state chartered commercial bank headquartered in Spokane, Washington with 98 branches serving markets in Washington, Oregon, Idaho, California and Utah. On that date, Starbuck merged with and into Banner and AmericanWest merged with and into Banner Bank. The merged banks are operating as Banner Bank. Pursuant to the previously announced terms of the merger, the equity holders of Starbuck received an aggregate of $130.0 million in cash and 13.23 million shares of Banner voting common stock and non-voting common stock. The acquisition provided $4.46 billion in assets, $3.64 billion in deposits and $3.00 billion in loans to Banner. At the closing date, the combined company had approximately $9.9 billion in assets and 203 branches. The application of the acquisition method of accounting resulted in recognition of a CDI asset of $33.5 million and goodwill of $222.9 million . The acquired CDI has been determined to have a useful life of approximately ten years and will be amortized on an accelerated basis. Goodwill is not amortized but will be evaluated for impairment on an annual basis or more often if circumstances dictate to determine if the carrying value remains appropriate. Goodwill will not be deductible for income tax purposes as the acquisition is accounted for as a tax-free exchange for tax purposes. The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): Starbuck October 1, 2015 Consideration to Starbuck equityholders: Cash paid $ 130,000 Fair value of common shares issued 630,674 Total consideration 760,674 Fair value of assets acquired: Cash and cash equivalents $ 95,821 Securities 1,037,238 Loans receivable (contractual amount of $3.04 billion) 2,999,130 REO, held for sale 6,105 Property and equipment 66,728 CDI 33,500 Deferred tax asset 108,454 Other assets 113,009 Total assets acquired 4,459,985 Fair value of liabilities assumed: Deposits 3,638,596 FHLB advances 221,442 Junior subordinated debentures 5,806 Other liabilities 56,359 Total liabilities assumed 3,922,203 Net assets acquired 537,782 Goodwill $ 222,892 Acquired goodwill represents the premium the Company paid over the fair value of the net tangible and intangible assets acquired. The acquisition complemented the Company's growth strategy, including expanding our geographic footprint in markets throughout the Northwest, Utah and California. The Company paid this premium for a number of reasons, including growing the Company's customer base, acquiring assembled workforces, and expanding its presence in new markets. See Note 7, Goodwill, Other Intangible Assets and Mortgage Servicing Rights for the accounting for goodwill and other intangible assets. As of October 1, 2015, the unpaid principal balance on purchased non-credit-impaired loans was $2.95 billion . The fair value of the purchased non-credit-impaired loans was $2.94 billion , resulting in a discount of $17.7 million recorded on these loans. The principal cash flows not expected to be collected on these loans was estimated to be $44.1 million . This discount is being accreted into income over the life of the loans on an effective yield basis. The following table presents the acquired purchased credit-impaired (PCI) loans as of the acquisition date (in thousands): Starbuck October 1, 2015 Acquired PCI loans: Contractually required principal and interest payments $ 98,746 Nonaccretable difference (26,162 ) Cash flows expected to be collected 72,584 Accretable yield (11,071 ) Fair value of PCI loans $ 61,513 The following table presents certain unaudited pro forma information for illustrative purposes only, for the three and nine months ended September 30, 2015 as if Starbuck had been acquired on January 1, 2014 . This unaudited estimated pro forma financial information combines the historical results of Starbuck with the Company’s consolidated historical results. Pro forma adjustments include accretion of loan discount, accretion of investment premiums, amortization of deposit premium, amortization of CDI, reversal of acquisition expense, and reversal of historical recorded amounts for similar items, with all adjustments tax effected. The pro forma information is not indicative of what would have occurred had the acquisition actually occurred on January 1, 2014 . In particular, no adjustments have been made to eliminate the impact of other-than-temporary impairment losses and losses recognized on the sale of securities that may not have been necessary had the investment securities been recorded at fair value as of January 1, 2014 . The unaudited pro forma information does not consider any changes to the provision for credit losses resulting from recording loan assets at fair value. Additionally, Banner expects to achieve further operating cost savings and other business synergies, including revenue growth, as a result of the acquisition which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented (in thousands except per share amounts): Pro Forma Three months ended September 30 Nine months ended September 30 2015 2015 Total revenues (net interest income plus non-interest income) $ 117,141 $ 345,454 Net income $ 26,289 $ 70,225 Earnings per share - basic $ 0.81 $ 2.09 Earnings per share - diluted $ 0.81 $ 2.08 The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities of Starbuck since October 2, 2015. Disclosure of the amount of Starbuck's revenue and net income (excluding integration costs) included in the Company’s Consolidated Statements of Operations is impracticable due to the integration of the operations, systems and accounting for this acquisition occurring in different stages. Acquisition of Siuslaw Financial Group, Inc. Effective as of the close of business on March 6, 2015 , the Company completed the acquisition of Siuslaw, the holding company of Siuslaw Bank. Siuslaw merged with and into the Company and, immediately following, Siuslaw Bank merged with and into Banner Bank. Siuslaw shareholders received 0.32231 shares of the Company's common stock and $1.41622 in cash in exchange for each share of Siuslaw common stock. The acquisition provided $369.8 million in assets, $316.4 million in deposits and $247.1 million in loans. The application of the acquisition method of accounting resulted in recognition of a CDI asset of $3.9 million and goodwill of $21.7 million . The acquired CDI has been determined to have a useful life of approximately eight years and will be amortized on an accelerated basis. Goodwill is not amortized but will be evaluated for impairment on an annual basis or more often if circumstances dictate to determine if the carrying value remains appropriate. Goodwill will not be deductible for income tax purposes as the acquisition is accounted for as a tax-free exchange for tax purposes. The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): Siuslaw March 6, 2015 Consideration to Siuslaw shareholders: Cash paid $ 5,806 Fair value of common shares issued 58,100 Total consideration 63,906 Fair value of assets acquired: Cash and cash equivalents $ 84,405 Securities—available-for-sale 12,865 Loans receivable (contractual amount of $252.2 million) 247,098 REO, held for sale 2,525 Property and equipment 8,127 Core deposit intangible 3,895 Other assets 10,848 Total assets acquired 369,763 Fair value of liabilities assumed: Deposits 316,406 Junior subordinated debentures 5,959 Other liabilities 5,183 Total liabilities assumed 327,548 Net assets acquired 42,215 Goodwill $ 21,691 Acquired goodwill represents the premium the Company paid over the fair value of the net tangible and intangible assets acquired. The acquisition complemented the Company's growth strategy, including expanding our geographic footprint in markets throughout the Northwest. The Company paid this premium for a number of reasons, including growing the Company's customer base, acquiring assembled workforces, and expanding its presence in new markets. See Note 7, Goodwill, Other Intangible Assets and Mortgage Servicing Rights for the accounting for goodwill and other intangible assets. As of March 6, 2015, the unpaid principal balance on purchased non-credit-impaired loans was $244.2 million . The fair value of the purchased non-credit-impaired loans was $241.4 million , resulting in a discount of $2.8 million recorded on these loans. This discount is being accreted into income over the life of the loans on an effective yield basis. The following table presents the acquired purchased credit-impaired loans as of the acquisition date (in thousands): Siuslaw March 6, 2015 Acquired purchased credit-impaired loans: Contractually required principal and interest payments $ 11,134 Nonaccretable difference (3,238 ) Cash flows expected to be collected 7,896 Accretable yield (2,239 ) Fair value of purchased credit-impaired loans $ 5,657 The following table presents certain unaudited pro forma information for illustrative purposes only, for the three and nine months ended September 30, 2015 as if Siuslaw had been acquired on January 1, 2014. This unaudited estimated pro forma financial information combines the historical results of Siuslaw with the Company’s consolidated historical results. Pro forma adjustments include accretion of loan discount, accretion of investment premiums, amortization of deposit premium, amortization of CDI, reversal of acquisition expense, and reversal of historical recorded amounts for similar items, with all adjustments tax effected. The pro forma information is not indicative of what would have occurred had the acquisition actually occurred on January 1, 2014. In particular, no adjustments have been made to eliminate the impact of other-than-temporary impairment losses and losses recognized on the sale of securities that may not have been necessary had the investment securities been recorded at fair value as of January 1, 2014. The unaudited pro forma information does not consider any changes to the provision for credit losses resulting from recording loan assets at fair value. Additionally, Banner expects to achieve further operating cost savings and other business synergies, including revenue growth, as a result of the acquisition which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented (in thousands except per share amounts): Pro Forma Three Months Ended Nine Months Ended 2015 2015 Total revenues (net interest income plus non-interest income) $ 66,286 $ 197,048 Net income $ 12,947 $ 38,714 Earnings per share - basic $ 0.62 $ 1.87 Earnings per share - diluted $ 0.62 $ 1.86 The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities of Siuslaw since March 7, 2015. Disclosure of the amount of Siuslaw’s revenue and net income (excluding integration costs) included in the Company’s Consolidated Statements of Operations is impracticable due to the integration of the operations and accounting for this acquisition. Acquisition-Related Costs The following tables present the key components of acquisition-related costs in connection with the acquisition of Siuslaw and the acquisition of Starbuck, including AmericanWest, for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Acquisition-related costs recognized in non-interest expenses: Personnel severance/retention fees $ 16 $ 227 $ 1,304 $ 443 Branch consolidation and other occupancy expenses 94 5 2,517 55 Client communications 527 151 904 221 Information/computer data services 459 301 2,409 807 Payment and processing expenses — 16 — 16 Professional services 687 1,185 2,138 5,411 Miscellaneous (63 ) 322 1,673 788 $ 1,720 $ 2,207 $ 10,945 $ 7,741 Siuslaw $ 1 $ 340 95 1,867 Starbuck 1,719 1,867 10,850 5,874 $ 1,720 $ 2,207 $ 10,945 $ 7,741 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INTEREST-BEARING DEPOSITS AND SECURITIES | SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2016 and December 31, 2015 are summarized as follows (in thousands): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: U.S. Government and agency obligations $ 1,230 $ 1,366 Municipal bonds 331 336 Corporate bonds 26,916 20,925 Mortgage-backed or related securities 7,628 8,173 Equity securities 14 89 $ 36,119 $ 30,889 Available-for-Sale: U.S. Government and agency obligations $ 57,900 $ 298 $ (28 ) $ 58,170 Municipal bonds 142,234 3,236 (69 ) 145,401 Corporate bonds 10,386 39 (52 ) 10,373 Mortgage-backed or related securities 753,344 10,094 (786 ) 762,652 Asset-backed securities 29,961 21 (262 ) 29,720 Equity securities 88 10 — 98 $ 993,913 $ 13,698 $ (1,197 ) $ 1,006,414 Held-to-Maturity: U.S. Government and agency obligations $ 1,076 $ — $ (2 ) $ 1,074 Municipal bonds: 199,606 8,841 (12 ) 208,435 Corporate bonds 4,162 — — 4,162 Mortgage-backed or related securities 67,131 2,501 — 69,632 $ 271,975 $ 11,342 $ (14 ) $ 283,303 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: U.S. Government and agency obligations $ 1,230 $ 1,368 Municipal bonds 332 341 Corporate bonds 25,063 18,699 Mortgage-backed or related securities 12,705 13,663 Equity securities 14 63 $ 39,344 $ 34,134 Available-for-Sale: U.S. Government and agency obligations $ 30,211 $ 213 $ (193 ) $ 30,231 Municipal bonds 142,898 853 (432 ) 143,319 Corporate bonds 15,937 56 (12 ) 15,981 Mortgage-backed or related securities 919,318 4,056 (5,115 ) 918,259 Asset-backed securities 31,288 — (603 ) 30,685 Equity securities 88 10 — 98 $ 1,139,740 $ 5,188 $ (6,355 ) $ 1,138,573 Held-to-Maturity: U.S. Government and agency obligations $ 1,106 $ 5 $ — $ 1,111 Municipal bonds: 162,778 6,219 (191 ) 168,806 Corporate bonds 4,273 — — 4,273 Mortgage-backed or related securities 52,509 253 (325 ) 52,437 $ 220,666 $ 6,477 $ (516 ) $ 226,627 At September 30, 2016 and December 31, 2015 , the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position was as follows (in thousands): September 30, 2016 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 5,784 $ (16 ) $ 1,078 $ (12 ) $ 6,862 $ (28 ) Municipal bonds 18,503 (67 ) 1,060 (2 ) 19,563 (69 ) Corporate bonds 5,334 (52 ) — — 5,334 (52 ) Mortgage-backed or related securities 152,276 (600 ) 32,760 (186 ) 185,036 (786 ) Asset-backed securities — — 19,667 (262 ) 19,667 (262 ) $ 181,897 $ (735 ) $ 54,565 $ (462 ) $ 236,462 $ (1,197 ) Held-to-Maturity U.S. Government and agency obligations $ 1,074 $ (2 ) $ — $ — $ 1,074 $ (2 ) Municipal bonds $ 4,494 $ (12 ) $ — $ — $ 4,494 $ (12 ) $ 5,568 $ (14 ) $ — $ — $ 5,568 $ (14 ) December 31, 2015 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 8,707 $ (97 ) $ 10,489 $ (96 ) $ 19,196 $ (193 ) Municipal bonds 69,848 (426 ) 905 (6 ) 70,753 (432 ) Corporate bonds 5,153 (12 ) — — 5,153 (12 ) Mortgage-backed or related securities 533,143 (4,380 ) 68,562 (735 ) 601,705 (5,115 ) Asset-backed securities 20,893 (355 ) 9,792 (248 ) 30,685 (603 ) $ 637,744 $ (5,270 ) $ 89,748 $ (1,085 ) $ 727,492 $ (6,355 ) Held-to-Maturity Municipal bonds $ 28,545 $ (188 ) $ 254 $ (3 ) $ 28,799 $ (191 ) Mortgage-backed or related securities 34,493 (323 ) 255 (2 ) 34,748 (325 ) $ 63,038 $ (511 ) $ 509 $ (5 ) $ 63,547 $ (516 ) At September 30, 2016 , there were 91 securities—available-for-sale with unrealized losses, compared to 242 at December 31, 2015 . At September 30, 2016 , there were six securities—held-to-maturity with unrealized losses, compared to 32 at December 31, 2015 . Management does not believe that any individual unrealized loss as of September 30, 2016 , or December 31, 2015 represented other-than-temporary impairment (OTTI). The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. Sales of securities—trading totaled $1.7 million with a resulting net gain of $156,000 for the nine months ended September 30, 2016 compared to $2.5 million with a resulting net loss of $690,000 for the nine months ended September 30, 2015 . The Company did no t recognize any OTTI charges or recoveries on securities—trading during the nine months ended September 30, 2016 , or the nine months ended September 30, 2015 . There were no securities—trading in a nonaccrual status at September 30, 2016 , or December 31, 2015 . Net unrealized holding gains of $112,000 were recognized during the nine months ended September 30, 2016 . Sales of securities—available-for-sale totaled $233.3 million with a resulting net gain of $374,000 for the nine months ended September 30, 2016 . Sales of securities—available-for-sale totaled $40.3 million with a resulting net gain of $126,000 for the nine months ended September 30, 2015 . There were no securities—available-for-sale in a nonaccrual status at September 30, 2016 or December 31, 2015 . There were no sales of securities—held-to-maturity during the nine months ended September 30, 2016 , or September 30, 2015 . There were no securities—held-to-maturity in a nonaccrual status at September 30, 2016 or December 31, 2015 . The amortized cost and estimated fair value of securities at September 30, 2016 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. September 30, 2016 Trading Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Maturing in one year or less $ — $ — $ 13,178 $ 13,175 $ 2,561 $ 2,583 Maturing after one year through five years 5,668 5,969 179,161 180,625 15,252 15,500 Maturing after five years through ten years 3,245 3,596 203,970 206,203 112,199 116,736 Maturing after ten years through twenty years 276 310 240,518 244,927 96,601 102,641 Maturing after twenty years 26,916 20,925 356,998 361,386 45,362 45,843 36,105 30,800 993,825 1,006,316 271,975 283,303 Equity securities 14 89 88 98 — — $ 36,119 $ 30,889 $ 993,913 $ 1,006,414 $ 271,975 $ 283,303 The following table presents, as of September 30, 2016 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): September 30, 2016 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 204,765 $ 203,838 $ 213,382 Interest rate swap counterparties 24,754 24,669 25,501 Repurchase agreements 126,873 125,666 127,958 Other 1,890 1,884 1,889 Total pledged securities $ 358,282 $ 356,057 $ 368,730 |
LOANS RECEIVABLE AND THE ALLOWA
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES Loans receivable at September 30, 2016 and December 31, 2015 are summarized as follows (dollars in thousands): September 30, 2016 December 31, 2015 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,340,577 18.1 % $ 1,327,807 18.2 % Investment properties 1,918,639 25.9 1,765,353 24.1 Multifamily real estate 266,883 3.6 472,976 6.5 Commercial construction 135,487 1.8 72,103 1.0 Multifamily construction 105,669 1.4 63,846 0.9 One- to four-family construction 363,586 4.9 278,469 3.8 Land and land development: Residential 162,029 2.2 126,773 1.7 Commercial 30,556 0.4 33,179 0.5 Commercial business 1,187,848 16.1 1,207,944 16.5 Agricultural business, including secured by farmland 383,275 5.2 376,531 5.1 One- to four-family residential 846,899 11.5 952,633 13.0 Consumer: Consumer secured by one- to four-family 497,643 6.7 478,420 6.5 Consumer—other 159,546 2.2 158,470 2.2 Total loans 7,398,637 100.0 % 7,314,504 100.0 % Less allowance for loan losses (84,220 ) (78,008 ) Net loans $ 7,314,417 $ 7,236,496 Loan amounts are net of unearned loan fees in excess of unamortized costs of $5.6 million as of September 30, 2016 and $5.5 million as of December 31, 2015 . Net loans include net discounts on acquired loans of $34.9 million and $43.7 million as of September 30, 2016 and December 31, 2015 , respectively. Purchased credit-impaired loans and purchased non-credit-impaired loans. Purchased loans, including loans acquired in business combinations, are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of purchased credit-impaired loans, excluding acquisition accounting adjustments, was $57.3 million at September 30, 2016 and $83.4 million at December 31, 2015 . The carrying balance of purchased credit-impaired loans was $38.7 million at September 30, 2016 and $58.6 million at December 31, 2015 . The following table presents the changes in the accretable yield for purchased credit-impaired loans for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance, beginning of period $ 11,035 $ 2,149 $ 10,375 $ — Additions — — — 2,239 Accretion to interest income (1,811 ) (68 ) (6,349 ) (158 ) Disposals (899 ) — (1,018 ) — Reclassifications from non-accretable difference 1,120 — 6,437 — Balance, end of period $ 9,445 $ 2,081 $ 9,445 $ 2,081 As of September 30, 2016 and December 31, 2015 , the non-accretable difference between the contractually required payments and cash flows expected to be collected were $19.2 million and $29.5 million , respectively. Impaired Loans and the Allowance for Loan Losses. A loan is considered impaired when, based on current information and circumstances, the Company determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments. Factors involved in determining impairment include, but are not limited to, the financial condition of the borrower, the value of the underlying collateral and the current status of the economy. Impaired loans are comprised of loans on nonaccrual, troubled debt restructures (TDRs) that are performing under their restructured terms, and loans that are 90 days or more past due, but are still on accrual. Purchased credit-impaired loans are considered performing within the scope of the purchased credit-impaired accounting guidance and are not included in the impaired loan tables. The following tables provide information on impaired loans, excluding PCI loans, with and without allowance reserves at September 30, 2016 and December 31, 2015 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): September 30, 2016 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 1,589 $ — $ 1,541 $ 105 Investment properties 17,537 9,691 7,431 739 Multifamily real estate 541 — 529 69 One- to four-family construction 1,176 — 1,176 157 Land and land development: Residential 3,119 750 1,213 236 Commercial 1,608 997 — — Commercial business 3,398 1,057 2,228 346 Agricultural business/farmland 4,452 3,896 476 30 One- to four-family residential 12,262 1,878 10,045 451 Consumer: Consumer secured by one- to four-family 1,591 — 1,547 11 Consumer—other 490 7 485 3 $ 47,763 $ 18,276 $ 26,671 $ 2,147 December 31, 2015 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 1,465 $ — $ 1,416 $ 70 Investment properties 8,740 2,503 5,846 602 Multifamily real estate 359 — 357 71 Commercial construction 1,141 1,069 — — One- to four-family construction 1,741 — 1,741 161 Land and land development: Residential 3,540 750 1,634 444 Commercial 1,628 1,027 — — Commercial business 2,266 538 1,184 150 Agricultural business/farmland 1,309 544 697 43 One- to four-family residential 17,897 2,206 14,418 736 Consumer: Consumer secured by one- to four-family 776 — 716 23 Consumer—other 433 — 351 7 $ 41,295 $ 8,637 $ 28,360 $ 2,307 (1) Loans without an allowance reserve have been individually evaluated for impairment and that evaluation concluded that no reserve was needed. (2) Includes general reserves for loans evaluated in pools of homogeneous loans and loans with a specific allowance reserve. Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value. The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Three Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 2,544 $ 3 $ 1,584 $ 3 Investment properties 19,046 74 8,399 76 Multifamily real estate 529 27 362 3 One- to four-family construction 1,176 3 2,530 29 Land and land development: Residential 1,964 20 2,400 9 Commercial 997 — 1,783 — Commercial business 4,283 16 1,813 8 Agricultural business/farmland 4,973 6 977 10 One- to four-family residential 11,973 131 18,558 124 Consumer: Consumer secured by one- to four-family 1,894 5 814 1 Consumer—other 512 3 314 2 $ 49,891 $ 288 $ 39,534 $ 265 Nine Months Ended Nine Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 2,673 $ 9 $ 1,674 $ 8 Investment properties 19,775 224 7,890 228 Multifamily real estate 518 36 364 14 One- to four-family construction 1,151 56 2,385 87 Land and land development: Residential 1,971 63 2,412 40 Commercial 1,005 — 1,861 — Commercial business 4,470 28 1,699 27 Agricultural business/farmland 4,824 19 905 19 One- to four-family residential 12,193 358 19,349 503 Consumer: Consumer secured by one- to four-family 1,913 13 894 8 Consumer—other 572 10 353 12 $ 51,065 $ 816 $ 39,786 $ 946 Troubled Debt Restructures. Some of the Company’s loans are reported as TDRs. Loans are reported as TDRs when the bank grants one or more concessions to a borrower experiencing financial difficulties that it would not otherwise consider. Examples of such concessions include forgiveness of principal or accrued interest, extending the maturity date(s) or providing a lower interest rate than would be normally available for a transaction of similar risk. Our TDRs have generally not involved forgiveness of amounts due, but almost always include a modification of multiple factors; the most common combination includes interest rate, payment amount and maturity date. As a result of these concessions, restructured loans are impaired as the Company will not collect all amounts due, both principal and interest, in accordance with the terms of the original loan agreement. Loans identified as TDRs are accounted for in accordance with the Company's impaired loan accounting policies. The following tables present TDRs at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Accrual Status Nonaccrual Status Total TDRs Commercial real estate: Owner-occupied $ 181 $ 99 $ 280 Investment properties 5,706 — 5,706 Multifamily real estate 351 — 351 One- to four-family construction 1,176 — 1,176 Land and land development: Residential 1,213 — 1,213 Commercial business 434 — 434 Agricultural business, including secured by farmland 616 87 703 One- to four-family residential 7,657 960 8,617 Consumer: Consumer secured by one- to four-family 144 8 152 Consumer—other 171 — 171 $ 17,649 $ 1,154 $ 18,803 December 31, 2015 Accrual Status Nonaccrual Status Total TDRs Commercial real estate: Owner-occupied $ 181 $ 104 $ 285 Investment properties 5,834 13 5,847 Multifamily real estate 357 — 357 One- to four-family construction 1,741 — 1,741 Land and land development: Residential 1,151 483 1,634 Commercial business 624 — 624 Agricultural business, including secured by farmland 545 277 822 One- to four-family residential 11,025 1,428 12,453 Consumer: Consumer secured by one- to four-family 147 14 161 Consumer—other 172 — 172 $ 21,777 $ 2,319 $ 24,096 As of September 30, 2016 and December 31, 2015 , the Company had commitments to advance funds related to TDRs up to additional amounts of $133,000 and $237,000 , respectively. No new TDRs occurred during the three and nine months ended September 30, 2016 . The following table presents new TDRs that occurred during the three and nine month periods ended September 30, 2015 (dollars in thousands): Three Months Ended September 30, 2015 Nine months ended September 30, 2015 Number of Contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Contracts Pre- modification Outstanding Recorded Investment Post- modification Outstanding Recorded Investment Recorded Investment (1) (2) Land and land development—residential — $ — $ — 2 $ 1,383 $ 1,383 One- to four-family residential — — — 3 607 607 Agricultural business/farmland — — — 2 456 456 — $ — $ — 7 $ 2,446 $ 2,446 (1) Since these loans were already considered classified and/or on nonaccrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses. (2) The majority of these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. There were no TDRs which incurred a payment default within twelve months of the restructure date during the three and nine -month periods ended September 30, 2016 and 2015 . A default on a TDR results in either a transfer to nonaccrual status or a partial charge-off, or both. Credit Quality Indicators : To appropriately and effectively manage the ongoing credit quality of the Company’s loan portfolio, management has implemented a risk-rating or loan grading system for its loans. The system is a tool to evaluate portfolio asset quality throughout each applicable loan’s life as an asset of the Company. Generally, loans and leases are risk rated on an aggregate borrower/relationship basis with individual loans sharing similar ratings. There are some instances when specific situations relating to individual loans will provide the basis for different risk ratings within the aggregate relationship. Loans are graded on a scale of 1 to 9. A description of the general characteristics of these categories is shown below: Overall Risk Rating Definitions : Risk-ratings contain both qualitative and quantitative measurements and take into account the financial strength of a borrower and the structure of the loan or lease. Consequently, the definitions are to be applied in the context of each lending transaction and judgment must also be used to determine the appropriate risk rating, as it is not unusual for a loan or lease to exhibit characteristics of more than one risk-rating category. Consideration for the final rating is centered in the borrower’s ability to repay, in a timely fashion, both principal and interest. There were no material changes in the risk-rating or loan grading system in the nine months ended September 30, 2016 . Risk Rating 1: Exceptional A credit supported by exceptional financial strength, stability, and liquidity. The risk rating of 1 is reserved for the Company’s top quality loans, generally reserved for investment grade credits underwritten to the standards of institutional credit providers. Risk Rating 2: Excellent A credit supported by excellent financial strength, stability and liquidity. The risk rating of 2 is reserved for very strong and highly stable customers with ready access to alternative financing sources. Risk Rating 3: Strong A credit supported by good overall financial strength and stability. Collateral margins are strong; cash flow is stable although susceptible to cyclical market changes. Risk Rating 4: Acceptable A credit supported by the borrower’s adequate financial strength and stability. Assets and cash flow are reasonably sound and provide for orderly debt reduction. Access to alternative financing sources will be more difficult to obtain. Risk Rating 5: Watch A credit with the characteristics of an acceptable credit which requires, however, more than the normal level of supervision and warrants formal quarterly management reporting. Credits in this category are not yet criticized or classified, but due to adverse events or aspects of underwriting require closer than normal supervision. Generally, credits should be watch credits in most cases for six months or less as the impact of stress factors are analyzed. Risk Rating 6: Special Mention A credit with potential weaknesses that deserves management’s close attention is risk rated a 6. If left uncorrected, these potential weaknesses will result in deterioration in the capacity to repay debt. A key distinction between Special Mention and Substandard is that in a Special Mention credit, there are identified weaknesses that pose potential risk(s) to the repayment sources, versus well defined weaknesses that pose risk(s) to the repayment sources. Assets in this category are expected to be in this category no more than 9 - 12 months as the potential weaknesses in the credit are resolved. Risk Rating 7: Substandard A credit with well defined weaknesses that jeopardize the ability to repay in full is risk rated a 7. These credits are inadequately protected by either the sound net worth and payment capacity of the borrower or the value of pledged collateral. These are credits with a distinct possibility of loss. Loans headed for foreclosure and/or legal action due to deterioration are rated 7 or worse. Risk Rating 8: Doubtful A credit with an extremely high probability of loss is risk rated 8. These credits have all the same critical weaknesses that are found in a substandard loan; however, the weaknesses are elevated to the point that based upon current information, collection or liquidation in full is improbable. While some loss on doubtful credits is expected, pending events may strengthen a credit making the amount and timing of any loss indeterminable. In these situations taking the loss is inappropriate until it is clear that the pending event has failed to strengthen the credit and improve the capacity to repay debt. Risk Rating 9: Loss A credit that is considered to be currently uncollectible or of such little value that it is no longer a viable Bank asset is risk rated 9. Losses should be taken in the accounting period in which the credit is determined to be uncollectible. Taking a loss does not mean that a credit has absolutely no recovery or salvage value but, rather, it is not practical or desirable to defer writing off the credit, even though partial recovery may occur in the future. The following table shows the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Loans Risk-rated loans: Pass (Risk Ratings 1-5) (1) $ 3,184,915 $ 264,899 $ 783,363 $ 1,140,359 $ 372,727 $ 840,609 $ 654,098 $ 7,240,970 Special mention 35,144 582 2,966 20,529 2,648 1,026 133 63,028 Substandard 39,157 1,402 10,998 26,960 7,900 5,264 2,951 94,632 Doubtful — — — — — — 7 7 Loss — — — — — — — — Total loans $ 3,259,216 $ 266,883 $ 797,327 $ 1,187,848 $ 383,275 $ 846,899 $ 657,189 $ 7,398,637 Performing loans $ 3,217,896 $ 266,448 $ 791,427 $ 1,180,819 $ 378,713 $ 842,332 $ 655,032 $ 7,332,667 Purchased credit-impaired loans 28,544 258 4,153 4,264 807 301 347 38,674 Non-performing loans (2) 12,776 177 1,747 2,765 3,755 4,266 1,810 27,296 Total loans $ 3,259,216 $ 266,883 $ 797,327 $ 1,187,848 $ 383,275 $ 846,899 $ 657,189 $ 7,398,637 December 31, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Loans Risk-rated loans: Pass (Risk Ratings 1-5) (1) $ 3,022,281 $ 468,467 $ 558,425 $ 1,167,933 $ 354,760 $ 943,098 $ 633,734 $ 7,148,698 Special mention 30,928 138 2,386 25,286 17,526 1,346 22 77,632 Substandard 39,951 4,371 13,559 14,725 4,245 8,189 3,124 88,164 Doubtful — — — — — — 10 10 Loss — — — — — — — — Total loans $ 3,093,160 $ 472,976 $ 574,370 $ 1,207,944 $ 376,531 $ 952,633 $ 636,890 $ 7,314,504 Performing loans $ 3,048,424 $ 470,982 $ 566,460 $ 1,198,475 $ 374,305 $ 945,968 $ 636,068 $ 7,240,682 Purchased credit-impaired loans 40,985 1,994 5,650 7,302 1,529 1,066 74 58,600 Non-performing loans (2) 3,751 — 2,260 2,167 697 5,599 748 15,222 Total loans $ 3,093,160 $ 472,976 $ 574,370 $ 1,207,944 $ 376,531 $ 952,633 $ 636,890 $ 7,314,504 (1) The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one - to four -family residential loans and, as of September 30, 2016 and December 31, 2015 , in the commercial business category, $202.2 million and $150.0 million , respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated. (2) Non-performing loans include non-accrual loans and loans past due greater than 90 days and on accrual status. The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 638 $ 2,681 $ 491 $ 3,810 $ 14,921 $ 1,321,846 $ 1,340,577 $ — $ 1,360 Investment properties 504 229 10,912 11,645 13,623 1,893,371 1,918,639 — 11,416 Multifamily real estate 99 — 147 246 258 266,379 266,883 147 30 Commercial construction — — — — — 135,487 135,487 — — Multifamily construction — — — — — 105,669 105,669 — — One-to-four-family construction 300 452 — 752 881 361,953 363,586 — — Land and land development: Residential — — 750 750 — 161,279 162,029 — 750 Commercial — — 997 997 3,272 26,287 30,556 — 997 Commercial business 419 333 2,631 3,383 4,264 1,180,201 1,187,848 — 2,765 Agricultural business, including secured by farmland 3,864 — 3,207 7,071 807 375,397 383,275 — 3,755 One- to four-family residential 488 648 2,683 3,819 301 842,779 846,899 852 3,414 Consumer: Consumer secured by one- to four-family 1,158 578 816 2,552 80 495,011 497,643 253 1,150 Consumer—other 516 219 323 1,058 267 158,221 159,546 172 235 Total $ 7,986 $ 5,140 $ 22,957 $ 36,083 $ 38,674 $ 7,323,880 $ 7,398,637 $ 1,424 $ 25,872 December 31, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 3,981 $ 139 $ 885 $ 5,005 $ 24,261 $ 1,298,541 $ 1,327,807 $ — $ 1,235 Investment properties 1,763 132 2,503 4,398 16,724 1,744,231 1,765,353 — 2,516 Multifamily real estate 4 — — 4 1,994 470,978 472,976 — — Commercial construction — — — — — 72,103 72,103 — — Multifamily construction 771 13 — 784 — 63,062 63,846 — — One-to-four-family construction 2,466 220 — 2,686 905 274,878 278,469 — 1,233 Land and land development: Residential — — 747 747 77 125,949 126,773 — 1,027 Commercial — 96 — 96 4,668 28,415 33,179 — — Commercial business 1,844 174 1,024 3,042 7,302 1,197,600 1,207,944 8 2,159 Agricultural business, including secured by farmland 323 729 278 1,330 1,529 373,672 376,531 — 697 One-to four-family residential 620 873 3,811 5,304 1,066 946,263 952,633 899 4,700 Consumer: Consumer secured by one- to four-family 465 60 38 563 40 477,817 478,420 4 565 Consumer—other 488 155 131 774 34 157,662 158,470 41 138 Total $ 12,725 $ 2,591 $ 9,417 $ 24,733 $ 58,600 $ 7,231,171 $ 7,314,504 $ 952 $ 14,270 The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three and nine months ended September 30, 2016 and 2015 (in thousands): For the Three Months Ended September 30, 2016 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,149 $ 1,515 $ 31,861 $ 17,758 $ 2,891 $ 2,204 $ 3,743 $ 1,197 $ 81,318 Provision for loan losses (337 ) (79 ) 1,269 (1,351 ) 80 (404 ) 348 2,474 2,000 Recoveries 34 — 673 433 (138 ) 482 73 — 1,557 Charge-offs — — — (333 ) — (92 ) (230 ) — (655 ) Ending balance $ 19,846 $ 1,436 $ 33,803 $ 16,507 $ 2,833 $ 2,190 $ 3,934 $ 3,671 $ 84,220 For the Nine Months Ended September 30, 2016 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,716 $ 4,195 $ 27,131 $ 13,856 $ 3,645 $ 4,732 $ 902 $ 2,831 $ 78,008 Provision for loan losses (788 ) (2,759 ) 5,404 1,519 (284 ) (3,468 ) 3,536 840 4,000 Recoveries 98 — 1,268 1,775 39 1,052 529 — 4,761 Charge-offs (180 ) — — (643 ) (567 ) (126 ) (1,033 ) — (2,549 ) Ending balance $ 19,846 $ 1,436 $ 33,803 $ 16,507 $ 2,833 $ 2,190 $ 3,934 $ 3,671 $ 84,220 September 30, 2016 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 832 $ 65 $ 396 $ 54 $ — $ 456 $ 6 $ — $ 1,809 Collectively evaluated for impairment 19,014 1,371 33,374 16,453 2,833 1,734 3,928 3,671 82,378 Purchased credit-impaired loans — — 33 — — — — — 33 Total allowance for loan losses $ 19,846 $ 1,436 $ 33,803 $ 16,507 $ 2,833 $ 2,190 $ 3,934 $ 3,671 $ 84,220 Loan balances: Individually evaluated for impairment $ 16,630 $ 351 $ 4,137 $ 2,026 $ 2,758 $ 8,270 $ 315 $ — $ 34,487 Collectively evaluated for impairment 3,214,042 266,274 789,037 1,181,558 379,710 838,328 656,527 — 7,325,476 Purchased credit-impaired loans 28,544 258 4,153 4,264 807 301 347 — 38,674 Total loans $ 3,259,216 $ 266,883 $ 797,327 $ 1,187,848 $ 383,275 $ 846,899 $ 657,189 $ — $ 7,398,637 For the Three Months Ended September 30, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 18,948 $ 4,273 $ 25,415 $ 13,184 $ 2,679 $ 8,542 $ 780 $ 3,508 $ 77,329 Provision for loan losses 317 90 1,929 (235 ) (292 ) (635 ) 330 (1,504 ) — Recoveries 375 — 282 128 146 42 91 — 1,064 Charge-offs — — (352 ) (312 ) — (12 ) (397 ) — (1,073 ) Ending balance $ 19,640 $ 4,363 $ 27,274 $ 12,765 $ 2,533 $ 7,937 $ 804 $ 2,004 $ 77,320 For the Nine Months Ended September 30, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 18,784 $ 4,562 $ 23,545 $ 12,043 $ 2,821 $ 8,447 $ 483 $ 5,222 $ 75,907 Provision for loan losses 333 (312 ) 2,847 664 (890 ) (524 ) 1,100 (3,218 ) — Recoveries 587 113 1,234 803 1,666 141 369 — 4,913 Charge-offs (64 ) — (352 ) (745 ) (1,064 ) (127 ) (1,148 ) — (3,500 ) Ending balance $ 19,640 $ 4,363 $ 27,274 $ 12,765 $ 2,533 $ 7,937 $ 804 $ 2,004 $ 77,320 September 30, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 612 $ 73 $ 473 $ 74 $ 17 $ 706 $ 60 $ — $ 2,015 Collectively evaluated for impairment 19,028 4,290 26,801 12,691 2,516 7,231 744 2,004 75,305 Purchased credit-impaired loans — — — — — — — — — Total allowance for loan losses $ 19,640 $ 4,363 $ 27,274 $ 12,765 $ 2,533 $ 7,937 $ 804 $ 2,004 $ 77,320 Loan balances: Individually evaluated for impairment $ 6,182 $ 361 $ 6,034 $ 644 $ 776 $ 13,952 $ 528 $ — $ 28,477 Collectively evaluated for impairment 1,690,251 198,072 484,241 811,426 241,780 522,373 390,565 — 4,338,708 Purchased credit impaired loans 1,131 441 3,525 — — — 312 — 5,409 Total loans $ 1,697,564 $ 198,874 $ 493,800 $ 812,070 $ 242,556 $ 536,325 $ 391,405 $ — $ 4,372,594 |
REAL ESTATE OWNED, NET
REAL ESTATE OWNED, NET | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
REAL ESTATE OWNED, NET | REAL ESTATE OWNED, NET The following table presents the changes in REO for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance, beginning of the period $ 6,147 $ 6,105 $ 11,627 $ 3,352 Additions from loan foreclosures 156 1,085 534 3,226 Additions from acquisitions — — 400 2,525 Additions from capitalized costs — — — 298 Proceeds from dispositions of REO (1,699 ) (906 ) (8,021 ) (3,155 ) Gain on sale of REO 281 113 981 333 Valuation adjustments in the period (168 ) (34 ) (804 ) (216 ) Balance, end of the period $ 4,717 $ 6,363 $ 4,717 $ 6,363 REO properties are recorded at the estimated fair value of the property, less expected selling costs, establishing a new cost basis. Subsequently, REO properties are carried at the lower of the new cost basis or updated fair market values, based on updated appraisals of the underlying properties, as received. Valuation allowances on the carrying value of REO may be recognized based on updated appraisals or on management’s authorization to reduce the selling price of a property. At September 30, 2016 , the Company had $593,000 of foreclosed one- to four-family residential real estate properties held as REO. The recorded investment in one- to four-family residential loans in the process of foreclosure was $1.1 million at September 30, 2016 . |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS Goodwill and Other Intangible Assets: At September 30, 2016 , intangible assets are comprised of goodwill, CDI, and favorable leasehold intangibles (LHI) acquired in business combinations. Goodwill represents the excess of the purchase considerations paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination, and is not amortized but is reviewed annually for impairment. At December 31, 2015, the Company completed its qualitative assessment of goodwill and concluded that it is more likely than not that the fair value of Banner, the reporting unit, exceeds the carrying value. The adjustments to goodwill in 2016 relate to changes in the preliminary goodwill recorded for the AmericanWest acquisition including adjustments to loan discount, deferred taxes and REO valuations. Additions to goodwill during 2015 relate to the AmericanWest and Siuslaw acquisitions. See Note 3, Business Combinations, for additional information on the acquisition and purchase price allocation. CDI represents the value of transaction-related deposits and the value of the customer relationships associated with the deposits. The additions to CDI in the table below relate to the AmericanWest and Siuslaw acquisitions in 2015. LHI represents the value ascribed to leases assumed in an acquisition in which the lease terms are favorable compared to a market lease at the date of acquisition. The additions to LHI in 2015 relate to the acquisition of AmericanWest. The Company amortizes CDI and LHI over their estimated useful lives and reviews them at least annually for events or circumstances that could impair their value. The following table summarizes the changes in the Company’s goodwill and other intangibles for the nine months ended September 30, 2016 and the year ended December 31, 2015 (in thousands): Goodwill CDI Favorable LHI Total Balance, December 31, 2014 $ — $ 2,831 $ — $ 2,831 Additions through acquisitions 247,738 37,395 776 285,909 Amortization — (3,164 ) (66 ) (3,230 ) Other changes (1) — (300 ) — (300 ) Balance, December 31, 2015 247,738 36,762 710 285,210 Amortization — (5,339 ) (199 ) (5,538 ) Adjustments to goodwill (3,155 ) — — (3,155 ) Balance, September 30, 2016 $ 244,583 $ 31,423 $ 511 $ 276,517 (1) Acquired CDI from AmericanWest was adjusted for a branch that was subsequently sold. The following table presents the estimated amortization expense with respect to CDI for the periods indicated (in thousands): Estimated Amortization Remainder of 2016 $ 1,722 2017 6,332 2018 5,609 2019 4,889 2020 4,169 Thereafter 8,702 $ 31,423 Mortgage Servicing Rights: Mortgage servicing rights are reported in other assets. Mortgage servicing rights are initially recorded at fair value and are amortized in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Mortgage servicing rights are subsequently evaluated for impairment based upon the fair value of the rights compared to the amortized cost (remaining unamortized initial fair value). If the fair value is less than the amortized cost, a valuation allowance is created through an impairment charge, which is recognized in servicing fee income on the consolidated statement of operations. However, if the fair value is greater than the amortized cost, the amount above the amortized cost is not recognized in the carrying value. During the three and nine months ended September 30, 2016 and 2015 , the Company did not record any impairment charges or recoveries against mortgage servicing rights. The unpaid principal balance for loans which mortgage servicing rights have been recorded totaled $2.01 billion and $1.86 billion at September 30, 2016 and December 31, 2015 , respectively. Custodial accounts maintained in connection with this servicing totaled $13.7 million and $8.7 million at September 30, 2016 and December 31, 2015 , respectively. An analysis of our mortgage servicing rights for the three and nine months ended September 30, 2016 and 2015 is presented below (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance, beginning of the period $ 14,276 $ 12,329 $ 13,354 $ 9,030 Additions—amounts capitalized 1,652 1,360 4,371 4,052 Additions—acquired through business combinations — — — 2,172 Amortization (1) (1,102 ) (810 ) (2,899 ) (2,375 ) Balance, end of the period (2) $ 14,826 $ 12,879 $ 14,826 $ 12,879 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income and any unamortized balance is fully amortized if the loan repays in full. (2) There was no valuation allowance as of September 30, 2016 and 2015 . |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS Deposits consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Non-interest-bearing accounts $ 3,190,293 $ 2,619,618 Interest-bearing checking 853,594 1,159,846 Regular savings accounts 1,387,123 1,284,642 Money market accounts 1,557,951 1,637,092 Total interest-bearing transaction and saving accounts 3,798,668 4,081,580 Certificates of deposit: Certificates of deposit less than or equal to $250,000 956,968 1,168,495 Certificates of deposit greater than $250,000 166,043 185,375 Total certificates of deposit 1,123,011 1,353,870 Total deposits $ 8,111,972 $ 8,055,068 Included in total deposits: Public fund transaction and savings accounts $ 201,665 $ 209,430 Public fund interest-bearing certificates 26,734 31,281 Total public deposits $ 228,399 $ 240,711 Total brokered deposits $ 60,290 $ 162,936 Scheduled maturities and repricing of certificate accounts at September 30, 2016 were as follows (in thousands): September 30, 2016 Certificates which mature or reprice: Within one year or less $ 834,884 After one year through two years 168,280 After two years through three years 58,126 After three years through four years 27,890 After four years through five years 30,226 After five years 3,605 Total certificates of deposit $ 1,123,011 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE ACCOUNTING AND MEASUREMENT | FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2016 and December 31, 2015 , whether or not measured at fair value in the Consolidated Statements of Financial Condition (in thousands): September 30, 2016 December 31, 2015 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 245,917 $ 245,917 $ 261,917 $ 261,917 Securities—trading 2,3 30,889 30,889 34,134 34,134 Securities—available-for-sale 2 1,006,414 1,006,414 1,138,573 1,138,573 Securities—held-to-maturity 2,3 271,975 283,303 220,666 226,627 Loans held for sale 2 123,144 124,749 44,712 45,600 Loans receivable 3 7,398,637 7,334,303 7,314,504 7,084,631 FHLB stock 3 12,826 12,826 16,057 16,057 Bank-owned life insurance 1 158,831 158,831 156,865 156,865 Mortgage servicing rights 3 14,826 15,170 13,295 17,370 Derivatives: Interest rate swaps 2 18,999 18,999 11,984 11,984 Interest rate forward sales commitments 2 1,119 1,119 471 471 Liabilities: Demand, interest checking and money market accounts 2 5,601,838 5,601,838 5,416,556 5,416,556 Regular savings 2 1,387,123 1,387,123 1,284,642 1,284,642 Certificates of deposit 2 1,123,011 1,109,322 1,353,870 1,332,825 FHLB advances 2 62,342 62,342 133,381 133,381 Other borrowings 2 108,911 108,911 98,325 98,325 Junior subordinated debentures 3 94,364 94,364 92,480 92,480 Derivatives: Interest rate swaps 2 18,999 18,999 11,984 11,984 Interest rate forward sales commitments 2 540 540 50 50 The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the 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 (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the accounting standard requires the reporting entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from non-binding single dealer quotes not corroborated by observable market data. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for certain financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. Items Measured at Fair Value on a Recurring Basis: The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Securities—trading U.S. Government and agency obligations $ — $ 1,366 $ — $ 1,366 Municipal bonds — 336 — 336 Corporate Bonds (Trust Preferred Securities) — — 20,925 20,925 Mortgage-backed or related securities — 8,173 — 8,173 Equity securities — 89 — 89 — 9,964 20,925 30,889 Securities—available-for-sale U.S. Government and agency obligations — 58,169 — 58,169 Municipal bonds — 145,400 — 145,400 Corporate bonds — 10,373 — 10,373 Mortgage-backed or related securities — 762,654 — 762,654 Asset-backed securities — 29,720 — 29,720 Equity securities — 98 — 98 — 1,006,414 — 1,006,414 Derivatives Interest rate swaps — 18,999 — 18,999 Interest rate lock commitments — 1,119 — 1,119 $ — $ 1,036,496 $ 20,925 $ 1,057,421 Liabilities: Advances from FHLB $ — $ 62,342 $ — $ 62,342 Junior subordinated debentures, net of unamortized deferred issuance costs — — 94,364 94,364 Derivatives Interest rate swaps — 18,999 — 18,999 Interest rate forward sales commitments — 540 — 540 $ — $ 81,881 $ 94,364 $ 176,245 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Securities—trading U.S. Government and agency obligations $ — $ 1,368 $ — $ 1,368 Municipal bonds — 341 — 341 Corporate Bonds (Trust Preferred Securities) — — 18,699 18,699 Mortgage-backed securities — 13,663 — 13,663 Equity securities — 63 — 63 — 15,435 18,699 34,134 Securities—available-for-sale U.S. Government and agency obligations — 30,231 — 30,231 Municipal bonds — 143,319 — 143,319 Corporate bonds — 15,981 — 15,981 Mortgage-backed securities — 918,259 — 918,259 Asset-backed securities — 30,685 — 30,685 Equity securities — 98 — 98 — 1,138,573 — 1,138,573 Derivatives Interest rate swaps — 11,984 — 11,984 Interest rate lock commitments — 471 — 471 $ — $ 1,166,463 $ 18,699 $ 1,185,162 Liabilities: Advances from FHLB $ — $ 133,381 $ — $ 133,381 Junior subordinated debentures, net of unamortized deferred issuance costs — — 92,480 92,480 Derivatives Interest rate swaps — 11,984 — 11,984 Interest rate forward sales commitments — 50 — 50 $ — $ 145,415 $ 92,480 $ 237,895 The following methods were used to estimate the fair value of each class of financial instruments above: Cash and Cash Equivalents: The carrying amount of these items is a reasonable estimate of their fair value. Securities: The estimated fair values of investment securities and mortgaged-backed securities are priced using current active market quotes, if available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used to establish the fair value. These measurements are considered Level 2. Due to the continued limited activity in the trust preferred markets that have limited the observability of market spreads for some of the Company’s Trust Preferred Securities (TPS) securities, management has classified these securities as a Level 3 fair value measure. Management periodically reviews the pricing information received from third-party pricing services and tests those prices against other sources to validate the reported fair values. Loans Held for Sale: Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Fair values for multifamily loans held for sale are calculated using recent sales data for comparable loans. Loans Receivable: Fair values are estimated first by stratifying the portfolios of loans with similar financial characteristics. Loans are segregated by type such as multifamily real estate, residential mortgage, nonresidential mortgage, commercial/agricultural, consumer and other. Each loan category is further segmented into fixed- and adjustable-rate interest terms. A preliminary estimate of fair value is then calculated based on discounted cash flows using as a discount rate the current rate offered on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans. The preliminary estimate is then further reduced by the amount of the allowance for loan losses to arrive at a final estimate of fair value. Fair value for impaired loans is also based on recent appraisals or estimated cash flows discounted using rates commensurate with risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. FHLB Stock: The fair value is based upon the redemption value of the stock which equates to its carrying value. Bank-Owned Life Insurance: The fair value of BOLI policies owned is based on the various insurance contracts' cash surrender value. Mortgage Servicing Rights: Fair values are estimated based on an independent dealer analysis of discounted cash flows. The evaluation utilizes assumptions market participants would use in determining fair value including prepayment speeds, delinquency and foreclosure rates, the discount rate, servicing costs, and the timing of cash flows. The mortgage servicing portfolio is stratified by loan type and fair value estimates are adjusted up or down based on the serviced loan interest rates versus current rates on new loan originations since the most recent independent analysis. Deposits: The carrying amount of deposits with no stated maturity, such as savings and checking accounts, is a reasonable estimate of their fair value. The market value of certificates of deposit is based upon the discounted value of contractual cash flows. The discount rate is determined using current market rates on comparable instruments. FHLB Advances: Fair valuations for Banner’s FHLB advances are estimated using fair market values provided by the lender, the FHLB of Des Moines. The FHLB of Des Moines prices advances by discounting the future contractual cash flows for individual advances, using its current cost of funds curve to provide the discount rate. Junior Subordinated Debentures: The fair value of junior subordinated debentures is estimated using an income approach technique. The significant inputs included in the estimation of fair value are the credit risk adjusted spread and three month LIBOR. The credit risk adjusted spread represents the nonperformance risk of the liability. The Company utilizes an external valuation firm to validate the reasonableness of the credit risk adjusted spread used to determine the fair value. The junior subordinated debentures are carried at fair value which represents the estimated amount that would be paid to transfer these liabilities in an orderly transaction amongst market participants. Due to credit concerns in the capital markets and inactivity in the trust preferred markets that have limited the observability of market spreads, management has classified this as a Level 3 fair value measure. Other Borrowings: Other borrowings include securities sold under agreements to repurchase and occasionally federal funds purchased and their carrying amount is considered a reasonable approximation of their fair value. Derivatives: Derivatives include interest rate swap agreements, interest rate lock commitments to originate loans held for sale and forward sales contracts to sell loans and securities related to mortgage banking activities. Fair values for these instruments, which generally change as a result of changes in the level of market interest rates, are estimated based on dealer quotes and secondary market sources. Off-Balance-Sheet Items: Off-balance-sheet financial instruments include unfunded commitments to extend credit, including standby letters of credit, and commitments to purchase investment securities. The fair value of these instruments is not considered to be material. Limitations: The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2016 and December 31, 2015 . The factors used in the fair values estimates are subject to change subsequent to the dates the fair value estimates are completed, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3): The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for certain of the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2016 and December 31, 2015 : Weighted Average Rate Financial Instruments Valuation Techniques Unobservable Inputs September 30, 2016 December 31, 2015 Corporate Bonds (TPS securities) Discounted cash flows Discount rate 5.85 % 5.61 % Junior subordinated debentures Discounted cash flows Discount rate 5.85 5.61 Impaired loans Discounted cash flows Discount rate Various Various Impaired loans Collateral Valuations Market values n/a n/a REO Appraisals Market values n/a n/a TPS securities : Management believes that the credit risk-adjusted spread used to develop the discount rate utilized in the fair value measurement of TPS securities is indicative of the risk premium a willing market participant would require under current market conditions for instruments with similar contractual rates and terms and conditions and issuers with similar credit risk profiles and with similar expected probability of default. Management attributes the change in fair value of these instruments, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of assets subsequent to their issuance. Junior subordinated debentures : Similar to the TPS securities discussed above, management believes that the credit risk-adjusted spread utilized in the fair value measurement of the junior subordinated debentures is indicative of the risk premium a willing market participant would require under current market conditions for an issuer with Banner's credit risk profile. Management attributes the change in fair value of the junior subordinated debentures, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of liabilities subsequent to their issuance. Future contractions in the risk adjusted spread relative to the spread currently utilized to measure the Company's junior subordinated debentures at fair value as of September 30, 2016 , or the passage of time, will result in negative fair value adjustments. At September 30, 2016 , the discount rate utilized was based on a credit spread of 500 basis points and three-month LIBOR of 85 basis points. The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures TPS Securities Borrowings— Junior Subordinated Debentures Beginning balance $ 20,645 $ 93,298 $ 18,699 $ 92,480 Total gains or losses recognized Assets gains 280 — 501 — Liabilities losses — 1,066 — 1,884 Purchases, issuances and settlements, including acquisitions — — 1,725 — Ending balance at September 30, 2016 $ 20,925 $ 94,364 $ 20,925 $ 94,364 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS and TRUP CDOs Borrowings—Junior Subordinated Debentures TPS and TRUP CDOs Borrowings— Junior Subordinated Debentures Beginning balance $ 12,571 $ 84,694 $ 19,119 $ 78,001 Total gains or losses recognized Assets gains (596 ) — 1,475 — Liabilities losses — 489 — 1,223 Purchases, issuances and settlements, including acquisitions 6,338 — 6,338 5,959 Sales, maturities and paydowns, net of discount amortization 27 — (8,592 ) — Ending balance at September 30, 2015 $ 18,340 $ 85,183 $ 18,340 $ 85,183 The Company has elected to continue to recognize the interest income and dividends from the securities reclassified to fair value as a component of interest income as was done in prior years when they were classified as available-for-sale. Interest expense related to the FHLB advances and junior subordinated debentures continues to be measured based on contractual interest rates and reported in interest expense. The change in fair market value of these financial instruments has been recorded as a component of non-interest income. Items Measured at Fair Value on a Non-recurring Basis: The following tables present financial assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 4,688 $ 4,688 REO — — 4,717 4,717 December 31, 2015 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,372 $ 2,372 REO — — 11,627 11,627 The following table presents the gains (losses) resulting from nonrecurring fair value adjustments for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three months ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Impaired loans $ (128 ) $ (600 ) $ (182 ) $ (916 ) REO (168 ) (34 ) (599 ) (244 ) Total gain (loss) from nonrecurring measurements $ (296 ) $ (634 ) $ (781 ) $ (1,160 ) Impaired loans : Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of collateral if the loan is collateral dependent. If this practical expedient is used, the impaired loans are considered to be held at fair value. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. Impaired loans are periodically evaluated to determine if valuation adjustments, or partial write-downs, should be recorded. The need for valuation adjustments arises when observable market prices or current appraised values of collateral indicate a shortfall in collateral value compared to current carrying values of the related loan. If the Company determines that the value of the impaired loan is less than the carrying value of the loan, the Company either establishes an impairment reserve as a specific component of the allowance for loan losses or charges off the impaired amount. These valuation adjustments are considered non-recurring fair value adjustments. The remaining impaired loans are evaluated for reserve needs in homogenous pools within the Company’s methodology for assessing the adequacy of the allowance for loan losses. REO : The Company records REO (acquired through a lending relationship) at fair value on a non-recurring basis. Fair value adjustments on REO are based on updated real estate appraisals which are based on current market conditions. All REO properties are recorded at the lower of the estimated fair value of the real estate, less expected selling costs, or the carrying amount of the defaulted loans. From time to time, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on an observable market price or current appraised value of property. Banner considers any valuation inputs related to REO to be Level 3 inputs. The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed to operations. |
INCOME TAXES AND DEFERRED TAXES
INCOME TAXES AND DEFERRED TAXES | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES AND DEFERRED TAXES | INCOME TAXES AND DEFERRED TAXES The Company files a consolidated income tax return including all of its wholly-owned subsidiaries on a calendar year basis. Income taxes are accounted for using the asset and liability method. Under this method, a deferred tax asset or liability is determined based on the enacted tax rates which will be in effect when the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities are expected to be reported in the Company’s income tax returns. The effect on deferred taxes of a change in tax rates is recognized in income in the period of change. A valuation allowance is recognized as a reduction to deferred tax assets when management determines it is more likely than not that deferred tax assets will not be available to offset future income tax liabilities. Accounting standards for income taxes prescribe a recognition threshold and measurement process for financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return, and also provide guidance on the de-recognition of previously recorded benefits and their classification, as well as the proper recording of interest and penalties, accounting in interim periods, disclosures and transition. The Company periodically reviews its income tax positions based on tax laws and regulations and financial reporting considerations, and records adjustments as appropriate. This review takes into consideration the status of current taxing authorities’ examinations of the Company’s tax returns, recent positions taken by the taxing authorities on similar transactions, if any, and the overall tax environment. As of September 30, 2016 , the Company had an insignificant amount of unrecognized tax benefits for uncertain tax positions, none of which would materially affect the effective tax rate if recognized. The Company does not anticipate that the amount of unrecognized tax benefits will significantly increase or decrease in the next twelve months. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in the income tax expense. The Company files consolidated income tax returns in U.S. federal jurisdiction and in the Oregon, California, Utah and Idaho state jurisdictions. Tax credit investments: The Company invests in low income housing tax credit funds that are designed to generate a return primarily through the realization of federal tax credits. The Company accounts for these investments by amortizing the cost of tax credit investments over the life of the investment using a proportional amortization method and tax credit investment amortization expense is a component of the provision for income taxes. The following table presents the balances of the Company’s tax credit investments and related unfunded commitments at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Tax credit investments $ 4,822 $ 5,326 Unfunded commitments—tax credit investments $ 719 $ 1,398 The following table presents other information related to the Company's tax credit investments for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Tax credits and other tax benefits recognized $ 284 $ 329 $ 852 $ 958 Tax credit amortization expense included in provision for income taxes $ 168 $ 255 504 745 |
CALCULATION OF WEIGHTED AVERAGE
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) | CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) The following table reconciles basic to diluted weighted shares outstanding used to calculate earnings per share data (in thousands, except shares and per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income $ 23,851 $ 12,947 $ 62,581 $ 38,329 Basic weighted average shares outstanding 34,045,225 20,755,394 34,050,459 20,417,601 Plus unvested restricted stock 79,386 65,983 54,416 50,008 Diluted weighted shares outstanding 34,124,611 20,821,377 34,104,875 20,467,609 Earnings per common share Basic $ 0.70 $ 0.62 $ 1.84 $ 1.88 Diluted $ 0.70 $ 0.62 $ 1.83 $ 1.87 Options to purchase an additional 5,000 shares of common stock were outstanding as of September 30, 2016 , but were not included in the computation of diluted earnings per share because their exercise price was significantly greater than the average market price of common shares which would not dilute earnings per share. Also, as of September 30, 2016 , warrants expiring on November 21, 2018, to purchase up to $18.6 million ( 243,998 shares, post reverse-split) of common stock were not included in the computation of diluted earnings per share because the exercise price of the warrants was greater than the average market price of common shares. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS AND STOCK OPTIONS | STOCK-BASED COMPENSATION PLANS The Company operates the following stock-based compensation plans as approved by its shareholders: • 2012 Restricted Stock and Incentive Bonus Plan (2012 Restricted Stock Plan). • 2014 Omnibus Incentive Plan (the 2014 Plan). The purpose of these plans is to promote the success and enhance the value of the Company by providing a means for attracting and retaining highly skilled employees, officers and directors of Banner Corporation and its affiliates and linking their personal interests with those of the Company's shareholders. Under these plans the Company currently has outstanding restricted stock share grants and restricted stock unit grants. 2012 Restricted Stock and Incentive Bonus Plan Under the 2012 Restricted Stock Plan, which was initially approved on April 24, 2012, the Company is authorized to issue up to 300,000 shares of its common stock to provide a means for attracting and retaining highly skilled officers of Banner Corporation and its affiliates. Shares granted under the 2012 Restricted Stock Plan have a minimum vesting period of three years. The 2012 Restricted Stock Plan will continue in effect for a term of ten years, after which no further awards may be granted. The 2012 Restricted Stock Plan was amended on April 23, 2013 to provide for the ability to grant (1) cash-denominated incentive-based awards payable in cash or common stock, including those that are eligible to qualify as qualified performance-based compensation for the purposes of Section 162(m) of the Code and (2) restricted stock awards that qualify as qualified performance-based compensation for the purposes of Section 162(m) of the Code. Vesting requirements may include time-based conditions, performance-based conditions, or market-based conditions. As of September 30, 2016 , the Company had granted 299,688 shares of restricted stock from the 2012 Restricted Stock Plan (as amended and restated), of which 207,255 shares had vested and 92,433 shares remain unvested. 2014 Omnibus Incentive Plan The 2014 Plan was approved by shareholders on April 22, 2014. The 2014 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, other stock-based awards and other cash awards, and provides for vesting requirements which may include time-based or performance-based conditions. The Company has reserved 900,000 shares of its common stock for issuance under the 2014 Plan in connection with the exercise of awards. As of September 30, 2016 , 244,802 restricted stock shares and 26,154 restricted stock units have been granted under the 2014 Plan of which 27,698 restricted stock shares and 18,331 restricted stock units have vested. The expense associated with all restricted stock grants (including restricted stock shares and restricted stock units) was $1.4 million and $4.0 million for the three and nine -month periods ended September 30, 2016 and $831,000 and $2.5 million for the three and nine-month periods ended September 30, 2015 , respectively. Unrecognized compensation expense for these awards as of September 30, 2016 was $9.2 million and will be amortized over the next 36 months . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments — The Company leases 109 buildings and offices under non-cancelable operating leases. The leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. Financial Instruments with Off-Balance-Sheet Risk — The Company has financial instruments with off-balance-sheet risk generated in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commitments related to standby letters of credit, commitments to originate loans, commitments to sell loans, commitments to buy and sell securities. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved in on-balance-sheet items recognized in our Consolidated Statements of Financial Condition. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument from commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as for on-balance-sheet instruments. Outstanding commitments for which no asset or liability for the notional amount has been recorded consisted of the following at the dates indicated (in thousands): Contract or Notional Amount September 30, 2016 December 31, 2015 Commitments to extend credit $ 2,209,750 $ 2,132,996 Standby letters of credit and financial guarantees 21,655 22,315 Commitments to originate loans 61,444 32,908 Risk participation agreement 7,535 7,672 Derivatives also included in Note 14: Commitments to originate loans held for sale 106,019 76,146 Commitments to sell loans secured by one- to four-family residential properties 42,456 37,545 Commitments to sell securities related to mortgage banking activities 59,854 41,500 Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Many of the commitments may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the customer. The type of collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income producing commercial properties. The Company's reserve for unfunded loan commitments was $3.6 million and $3.9 million at September 30, 2016 and December 31, 2015 , respectively. Standby letters of credit are conditional commitments issued to guarantee a customer’s performance or payment to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Through the acquisition of AmericanWest, Banner Bank assumed a risk participation agreement. Under the risk participation agreement, Banner Bank guarantees the financial performance of a borrower on the participated portion of an interest rate swap on a loan. Interest rates on residential one- to four-family mortgage loan applications are typically rate locked (committed) to customers during the application stage for periods ranging from 30 to 60 days, the most typical period being 45 days. Traditionally, these loan applications with rate lock commitments had the pricing for the sale of these loans locked with various qualified investors under a best-efforts delivery program at or near the time the interest rate is locked with the customer. The Bank then attempts to deliver these loans before their rate locks expired. This arrangement generally required delivery of the loans prior to the expiration of the rate lock. Delays in funding the loans required a lock extension. The cost of a lock extension at times was borne by the customer and at times by the Bank. These lock extension costs have not had a material impact to our operations. The Company enters into forward commitments at specific prices and settlement dates to deliver either: (1) residential mortgage loans for purchase by secondary market investors (i.e., Freddie Mac or Fannie Mae), or (2) mortgage-backed securities to broker/dealers. The purpose of these forward commitments is to offset the movement in interest rates between the execution of its residential mortgage rate lock commitments with borrowers and the sale of those loans to the secondary market investor. There were no counterparty default losses on forward contracts during the three and nine months ended September 30, 2016 or September 30, 2015 . Market risk with respect to forward contracts arises principally from changes in the value of contractual positions due to changes in interest rates. The Company limits its exposure to market risk by monitoring differences between commitments to customers and forward contracts with market investors and securities broker/dealers. In the event the Company has forward delivery contract commitments in excess of available mortgage loans, the transaction is completed by either paying or receiving a fee to or from the investor or broker/dealer equal to the increase or decrease in the market value of the forward contract. In the normal course of business, the Company and/or its subsidiaries have various legal proceedings and other contingent matters outstanding. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. These claims and counter-claims typically arise during the course of collection efforts on problem loans or with respect to action to enforce liens on properties in which the Banks hold a security interest. Based upon the information known to management at this time, the Company and the Banks are not a party to any legal proceedings that management believes would have a material adverse effect on the results of operations or consolidated financial position at September 30, 2016 . In connection with certain asset sales, the Banks typically make representations and warranties about the underlying assets conforming to specified guidelines. If the underlying assets do not conform to the specifications, the Bank may have an obligation to repurchase the assets or indemnify the purchaser against any loss. The Banks believe that the potential for material loss under these arrangements is remote. Accordingly, the fair value of such obligations is not material. |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING The Company, through its Banner Bank subsidiary, is party to various derivative instruments that are used for asset and liability management and customer financing needs. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index, or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The Company obtains dealer quotations to value its derivative contracts. The Company's predominant derivative and hedging activities involve interest rate swaps related to certain term loans and forward sales contracts associated with mortgage banking activities. Generally, these instruments help the Company manage exposure to market risk and meet customer financing needs. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors. Derivatives Designated in Hedge Relationships The Company's fixed rate loans result in exposure to losses in value or net interest income as interest rates change. The risk management objective for hedging fixed rate loans is to effectively convert the fixed rate received to a floating rate. The Company has hedged exposure to changes in the fair value of certain fixed rate loans through the use of interest rate swaps. For a qualifying fair value hedge, changes in the value of the derivatives are recognized in current period earnings along with the corresponding changes in the fair value of the designated hedged item attributable to the risk being hedged. Under a prior program, customers received fixed interest rate commercial loans and the Banner Bank subsequently hedged that fixed rate loan by entering into an interest rate swap with a dealer counterparty. Banner Bank receives fixed rate payments from the customers on the loans and makes similar fixed rate payments to the dealer counterparty on the swaps in exchange for variable rate payments based on the one-month LIBOR index. Some of these interest rate swaps are designated as fair value hedges. Through application of the “short cut method of accounting,” there is an assumption that the hedges are effective. Banner Bank discontinued originating interest rate swaps under this program in 2008. As of September 30, 2016 and December 31, 2015 , the notional values or contractual amounts and fair values of the Company's derivatives designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 6,452 $ 868 $ 6,734 $ 938 $ 6,452 $ 868 $ 6,734 $ 938 (1) Included in Loans receivable on the Consolidated Statements of Financial Condition. (2) Included in Other liabilities on the Consolidated Statements of Financial Condition. Derivatives Not Designated in Hedge Relationships Interest Rate Swaps: Banner Bank uses an interest rate swap program for commercial loan customers, that provides the client with a variable rate loan and enters into an interest rate swap in which the client receives a variable rate payment in exchange for a fixed rate payment. The Bank offsets its risk exposure by entering into an offsetting interest rate swap with a dealer counterparty for the same notional amount and length of term as the client interest rate swap providing the dealer counterparty with a fixed rate payment in exchange for a variable rate payment. These swaps do not qualify as designated hedges; therefore, each swap is accounted for as a free standing derivative. Mortgage Banking: In the normal course of business, the Company sells originated mortgage loans into the secondary mortgage loan markets. During the period of loan origination and prior to the sale of the loans in the secondary market, the Company has exposure to movements in interest rates associated with written rate lock commitments with potential borrowers to originate loans that are intended to be sold and for closed loans that are awaiting sale and delivery into the secondary market. Written loan commitments that relate to the origination of mortgage loans that will be held for resale are considered free-standing derivatives and do not qualify for hedge accounting. Written loan commitments generally have a term of up to 60 days before the closing of the loan. The loan commitment does not bind the potential borrower to enter into the loan, nor does it guarantee that the Company will approve the potential borrower for the loan. Therefore, when determining fair value, the Company makes estimates of expected “fallout” (loan commitments not expected to close), using models which consider cumulative historical fallout rates, current market interest rates and other factors. Written loan commitments in which the borrower has locked in an interest rate results in market risk to the Company to the extent market interest rates change from the rate quoted to the borrower. The Company economically hedges the risk of changing interest rates associated with its interest rate lock commitments by entering into forward sales contracts. Mortgage loans which are held for sale are subject to changes in fair value due to fluctuations in interest rates from the loan's closing date through the date of sale of the loans into the secondary market. Typically, the fair value of these loans declines when interest rates increase and rises when interest rates decrease. To mitigate this risk, the Company enters into forward sales contracts on a significant portion of these loans to provide an economic hedge against those changes in fair value. Mortgage loans held for sale and the forward sales contracts are recorded at fair value with ineffective changes in value recorded in current earnings as loan sales and servicing income. As of September 30, 2016 and December 31, 2015 , the notional values or contractual amounts and fair values of the Company's derivatives not designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 301,818 $ 18,131 $ 293,937 $ 11,046 $ 301,818 $ 18,131 $ 293,937 $ 11,046 Mortgage loan commitments 67,713 894 76,146 428 38,306 225 — — Forward sales contracts 38,306 225 41,500 43 59,854 315 32,763 50 $ 407,837 $ 19,250 $ 411,583 $ 11,517 $ 399,978 $ 18,671 $ 326,700 $ 11,096 (1) Included in Other assets on the Consolidated Statements of Financial Condition, with the exception of those interest rate swaps that were not designated in hedge relationships (with a fair value of $1.1 million at September 30, 2016 and $327,000 at December 31, 2015 ), which are included in Loans receivable. (2) Included in Other liabilities on the Consolidated Statements of Financial Condition. Gains (losses) recognized in income on non-designated hedging instruments for the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Location on Consolidated Statements of Operations Three Months Ended Nine Months Ended 2016 2015 2016 2015 Mortgage loan commitments Mortgage banking operations $ (376 ) $ 442 $ 516 $ 475 Forward sales contracts Mortgage banking operations 315 (665 ) (297 ) (209 ) $ (61 ) $ (223 ) $ 219 $ 266 The Company is exposed to credit-related losses in the event of nonperformance by the counterparty to these agreements. Credit risk of the financial contract is controlled through the credit approval, limits, and monitoring procedures and management does not expect the counterparties to fail their obligations. In connection with the interest rate swaps between Banner Bank and the dealer counterparties, the agreements contain a provision where if Banner Bank fails to maintain its status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and Banner Bank would be required to settle its obligations. Similarly, Banner Bank could be required to settle its obligations under certain of its agreements if specific regulatory events occur, such as a publicly issued prompt corrective action directive, cease and desist order, or a capital maintenance agreement that required Banner Bank to maintain a specific capital level. If Banner Bank had breached any of these provisions at September 30, 2016 or December 31, 2015 , it could have been required to settle its obligations under the agreements at the termination value. As of September 30, 2016 and December 31, 2015 , the termination value of derivatives in a net liability position related to these agreements was $19.0 million and $12.0 million , respectively. The Company generally posts collateral against derivative liabilities in the form of cash, government agency-issued bonds, mortgage-backed securities, or commercial mortgage-backed securities. Collateral posted against derivative liabilities was $29.7 million and $20.8 million as of September 30, 2016 and December 31, 2015 , respectively. Derivative assets and liabilities are recorded at fair value on the balance sheet and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis and to offset net derivative positions with related collateral where applicable. The following table illustrates the potential effect of the Company's derivative master netting arrangements, by type of financial instrument, on the Company's Consolidated Statements of Financial Condition as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 18,999 $ — $ 18,999 $ — $ — $ 18,999 $ 18,999 $ — $ 18,999 $ — $ — $ 18,999 Derivative liabilities Interest rate swaps $ 18,999 $ — $ 18,999 $ — $ (18,981 ) $ 18 $ 18,999 $ — $ 18,999 $ — $ (18,981 ) $ 18 December 31, 2015 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 11,984 $ — $ 11,984 $ — $ — $ 11,984 $ 11,984 $ — $ 11,984 $ — $ — $ 11,984 Derivative liabilities Interest rate swaps $ 11,984 $ — $ 11,984 $ — $ (11,984 ) $ — $ 11,984 $ — $ 11,984 $ — $ (11,984 ) $ — |
BASIS OF PRESENTATION AND SIG23
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated interim financial statements include the accounts of Banner Corporation (the Company or Banner), a bank holding company incorporated in the State of Washington and its wholly-owned subsidiaries, Banner Bank and Islanders Bank (the Banks). These unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2016 for potential recognition or disclosure. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. Certain reclassifications have been made to the 2015 Consolidated Financial Statements and/or schedules to conform to the 2016 presentation. These reclassifications may have affected certain ratios for the prior periods. The effect of these reclassifications is considered immaterial. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, management has identified several accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are significant to an understanding of Banner’s financial statements. These policies relate to (i) the methodology for the recognition of interest income, (ii) determination of the provision and allowance for loan losses, (iii) the valuation of financial assets and liabilities recorded at fair value, including other-than-temporary impairment (OTTI) losses, (iv) the valuation of intangibles, such as goodwill, core deposit intangibles (CDI) and mortgage servicing rights, (v) the valuation of real estate held for sale, (vi) the valuation of assets and liabilities acquired in business combinations and subsequent recognition of related income and expense, and (vii) the valuation or recognition of deferred tax assets and liabilities. These policies and judgments, estimates and assumptions are described in greater detail in subsequent notes to the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations (Critical Accounting Policies) in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. There have been no significant changes in our application of accounting policies during the first nine months of 2016 . During the nine months ended September 30, 2016 , the 1.3 million shares of non-voting common stock issued in connection with the acquisition of Starbuck Bancshares, Inc. and its subsidiary, AmericanWest Bank were sold by the original holder of the shares. These shares contained a provision where they would automatically convert from non-voting to voting upon a permitted transfer of the shares. Therefore, these shares are included in Banner's voting common stock outstanding as of September 30, 2016 . The information included in this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the SEC ( 2015 Form 10-K). Interim results are not necessarily indicative of results for a full year or any other interim period. |
BUSINESS COMBINATIONS BUSINES24
BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Acquisition-Related Costs | The following tables present the key components of acquisition-related costs in connection with the acquisition of Siuslaw and the acquisition of Starbuck, including AmericanWest, for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Acquisition-related costs recognized in non-interest expenses: Personnel severance/retention fees $ 16 $ 227 $ 1,304 $ 443 Branch consolidation and other occupancy expenses 94 5 2,517 55 Client communications 527 151 904 221 Information/computer data services 459 301 2,409 807 Payment and processing expenses — 16 — 16 Professional services 687 1,185 2,138 5,411 Miscellaneous (63 ) 322 1,673 788 $ 1,720 $ 2,207 $ 10,945 $ 7,741 Siuslaw $ 1 $ 340 95 1,867 Starbuck 1,719 1,867 10,850 5,874 $ 1,720 $ 2,207 $ 10,945 $ 7,741 |
Starbuck Bancshares, Inc [Member] | |
Business Acquisition [Line Items] | |
Schedule of Components of Business Acquisition | The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): Starbuck October 1, 2015 Consideration to Starbuck equityholders: Cash paid $ 130,000 Fair value of common shares issued 630,674 Total consideration 760,674 Fair value of assets acquired: Cash and cash equivalents $ 95,821 Securities 1,037,238 Loans receivable (contractual amount of $3.04 billion) 2,999,130 REO, held for sale 6,105 Property and equipment 66,728 CDI 33,500 Deferred tax asset 108,454 Other assets 113,009 Total assets acquired 4,459,985 Fair value of liabilities assumed: Deposits 3,638,596 FHLB advances 221,442 Junior subordinated debentures 5,806 Other liabilities 56,359 Total liabilities assumed 3,922,203 Net assets acquired 537,782 Goodwill $ 222,892 |
Schedule of Purchased Impaired Loans | The following table presents the acquired purchased credit-impaired (PCI) loans as of the acquisition date (in thousands): Starbuck October 1, 2015 Acquired PCI loans: Contractually required principal and interest payments $ 98,746 Nonaccretable difference (26,162 ) Cash flows expected to be collected 72,584 Accretable yield (11,071 ) Fair value of PCI loans $ 61,513 |
Pro Forma Information | The following table presents certain unaudited pro forma information for illustrative purposes only, for the three and nine months ended September 30, 2015 as if Starbuck had been acquired on January 1, 2014 . This unaudited estimated pro forma financial information combines the historical results of Starbuck with the Company’s consolidated historical results. Pro forma adjustments include accretion of loan discount, accretion of investment premiums, amortization of deposit premium, amortization of CDI, reversal of acquisition expense, and reversal of historical recorded amounts for similar items, with all adjustments tax effected. The pro forma information is not indicative of what would have occurred had the acquisition actually occurred on January 1, 2014 . In particular, no adjustments have been made to eliminate the impact of other-than-temporary impairment losses and losses recognized on the sale of securities that may not have been necessary had the investment securities been recorded at fair value as of January 1, 2014 . The unaudited pro forma information does not consider any changes to the provision for credit losses resulting from recording loan assets at fair value. Additionally, Banner expects to achieve further operating cost savings and other business synergies, including revenue growth, as a result of the acquisition which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented (in thousands except per share amounts): Pro Forma Three months ended September 30 Nine months ended September 30 2015 2015 Total revenues (net interest income plus non-interest income) $ 117,141 $ 345,454 Net income $ 26,289 $ 70,225 Earnings per share - basic $ 0.81 $ 2.09 Earnings per share - diluted $ 0.81 $ 2.08 |
Siuslaw Financial Group, Inc [Member] | |
Business Acquisition [Line Items] | |
Schedule of Components of Business Acquisition | The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): Siuslaw March 6, 2015 Consideration to Siuslaw shareholders: Cash paid $ 5,806 Fair value of common shares issued 58,100 Total consideration 63,906 Fair value of assets acquired: Cash and cash equivalents $ 84,405 Securities—available-for-sale 12,865 Loans receivable (contractual amount of $252.2 million) 247,098 REO, held for sale 2,525 Property and equipment 8,127 Core deposit intangible 3,895 Other assets 10,848 Total assets acquired 369,763 Fair value of liabilities assumed: Deposits 316,406 Junior subordinated debentures 5,959 Other liabilities 5,183 Total liabilities assumed 327,548 Net assets acquired 42,215 Goodwill $ 21,691 |
Schedule of Purchased Impaired Loans | The following table presents the acquired purchased credit-impaired loans as of the acquisition date (in thousands): Siuslaw March 6, 2015 Acquired purchased credit-impaired loans: Contractually required principal and interest payments $ 11,134 Nonaccretable difference (3,238 ) Cash flows expected to be collected 7,896 Accretable yield (2,239 ) Fair value of purchased credit-impaired loans $ 5,657 |
Pro Forma Information | The following table presents certain unaudited pro forma information for illustrative purposes only, for the three and nine months ended September 30, 2015 as if Siuslaw had been acquired on January 1, 2014. This unaudited estimated pro forma financial information combines the historical results of Siuslaw with the Company’s consolidated historical results. Pro forma adjustments include accretion of loan discount, accretion of investment premiums, amortization of deposit premium, amortization of CDI, reversal of acquisition expense, and reversal of historical recorded amounts for similar items, with all adjustments tax effected. The pro forma information is not indicative of what would have occurred had the acquisition actually occurred on January 1, 2014. In particular, no adjustments have been made to eliminate the impact of other-than-temporary impairment losses and losses recognized on the sale of securities that may not have been necessary had the investment securities been recorded at fair value as of January 1, 2014. The unaudited pro forma information does not consider any changes to the provision for credit losses resulting from recording loan assets at fair value. Additionally, Banner expects to achieve further operating cost savings and other business synergies, including revenue growth, as a result of the acquisition which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented (in thousands except per share amounts): Pro Forma Three Months Ended Nine Months Ended 2015 2015 Total revenues (net interest income plus non-interest income) $ 66,286 $ 197,048 Net income $ 12,947 $ 38,714 Earnings per share - basic $ 0.62 $ 1.87 Earnings per share - diluted $ 0.62 $ 1.86 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities | The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2016 and December 31, 2015 are summarized as follows (in thousands): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: U.S. Government and agency obligations $ 1,230 $ 1,366 Municipal bonds 331 336 Corporate bonds 26,916 20,925 Mortgage-backed or related securities 7,628 8,173 Equity securities 14 89 $ 36,119 $ 30,889 Available-for-Sale: U.S. Government and agency obligations $ 57,900 $ 298 $ (28 ) $ 58,170 Municipal bonds 142,234 3,236 (69 ) 145,401 Corporate bonds 10,386 39 (52 ) 10,373 Mortgage-backed or related securities 753,344 10,094 (786 ) 762,652 Asset-backed securities 29,961 21 (262 ) 29,720 Equity securities 88 10 — 98 $ 993,913 $ 13,698 $ (1,197 ) $ 1,006,414 Held-to-Maturity: U.S. Government and agency obligations $ 1,076 $ — $ (2 ) $ 1,074 Municipal bonds: 199,606 8,841 (12 ) 208,435 Corporate bonds 4,162 — — 4,162 Mortgage-backed or related securities 67,131 2,501 — 69,632 $ 271,975 $ 11,342 $ (14 ) $ 283,303 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: U.S. Government and agency obligations $ 1,230 $ 1,368 Municipal bonds 332 341 Corporate bonds 25,063 18,699 Mortgage-backed or related securities 12,705 13,663 Equity securities 14 63 $ 39,344 $ 34,134 Available-for-Sale: U.S. Government and agency obligations $ 30,211 $ 213 $ (193 ) $ 30,231 Municipal bonds 142,898 853 (432 ) 143,319 Corporate bonds 15,937 56 (12 ) 15,981 Mortgage-backed or related securities 919,318 4,056 (5,115 ) 918,259 Asset-backed securities 31,288 — (603 ) 30,685 Equity securities 88 10 — 98 $ 1,139,740 $ 5,188 $ (6,355 ) $ 1,138,573 Held-to-Maturity: U.S. Government and agency obligations $ 1,106 $ 5 $ — $ 1,111 Municipal bonds: 162,778 6,219 (191 ) 168,806 Corporate bonds 4,273 — — 4,273 Mortgage-backed or related securities 52,509 253 (325 ) 52,437 $ 220,666 $ 6,477 $ (516 ) $ 226,627 |
Schedule of Securities with Continuous Loss Position | At September 30, 2016 and December 31, 2015 , the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position was as follows (in thousands): September 30, 2016 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 5,784 $ (16 ) $ 1,078 $ (12 ) $ 6,862 $ (28 ) Municipal bonds 18,503 (67 ) 1,060 (2 ) 19,563 (69 ) Corporate bonds 5,334 (52 ) — — 5,334 (52 ) Mortgage-backed or related securities 152,276 (600 ) 32,760 (186 ) 185,036 (786 ) Asset-backed securities — — 19,667 (262 ) 19,667 (262 ) $ 181,897 $ (735 ) $ 54,565 $ (462 ) $ 236,462 $ (1,197 ) Held-to-Maturity U.S. Government and agency obligations $ 1,074 $ (2 ) $ — $ — $ 1,074 $ (2 ) Municipal bonds $ 4,494 $ (12 ) $ — $ — $ 4,494 $ (12 ) $ 5,568 $ (14 ) $ — $ — $ 5,568 $ (14 ) December 31, 2015 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 8,707 $ (97 ) $ 10,489 $ (96 ) $ 19,196 $ (193 ) Municipal bonds 69,848 (426 ) 905 (6 ) 70,753 (432 ) Corporate bonds 5,153 (12 ) — — 5,153 (12 ) Mortgage-backed or related securities 533,143 (4,380 ) 68,562 (735 ) 601,705 (5,115 ) Asset-backed securities 20,893 (355 ) 9,792 (248 ) 30,685 (603 ) $ 637,744 $ (5,270 ) $ 89,748 $ (1,085 ) $ 727,492 $ (6,355 ) Held-to-Maturity Municipal bonds $ 28,545 $ (188 ) $ 254 $ (3 ) $ 28,799 $ (191 ) Mortgage-backed or related securities 34,493 (323 ) 255 (2 ) 34,748 (325 ) $ 63,038 $ (511 ) $ 509 $ (5 ) $ 63,547 $ (516 ) |
Schedule of Securities by Contractual Maturity Date | The amortized cost and estimated fair value of securities at September 30, 2016 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. September 30, 2016 Trading Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Maturing in one year or less $ — $ — $ 13,178 $ 13,175 $ 2,561 $ 2,583 Maturing after one year through five years 5,668 5,969 179,161 180,625 15,252 15,500 Maturing after five years through ten years 3,245 3,596 203,970 206,203 112,199 116,736 Maturing after ten years through twenty years 276 310 240,518 244,927 96,601 102,641 Maturing after twenty years 26,916 20,925 356,998 361,386 45,362 45,843 36,105 30,800 993,825 1,006,316 271,975 283,303 Equity securities 14 89 88 98 — — $ 36,119 $ 30,889 $ 993,913 $ 1,006,414 $ 271,975 $ 283,303 |
Schedule of Pledged Securities | The following table presents, as of September 30, 2016 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): September 30, 2016 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 204,765 $ 203,838 $ 213,382 Interest rate swap counterparties 24,754 24,669 25,501 Repurchase agreements 126,873 125,666 127,958 Other 1,890 1,884 1,889 Total pledged securities $ 358,282 $ 356,057 $ 368,730 |
LOANS RECEIVABLE AND THE ALLO26
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Impaired loans excluding purchased credit impaired loans [Table Text Block] | The following tables provide information on impaired loans, excluding PCI loans, with and without allowance reserves at September 30, 2016 and December 31, 2015 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): September 30, 2016 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 1,589 $ — $ 1,541 $ 105 Investment properties 17,537 9,691 7,431 739 Multifamily real estate 541 — 529 69 One- to four-family construction 1,176 — 1,176 157 Land and land development: Residential 3,119 750 1,213 236 Commercial 1,608 997 — — Commercial business 3,398 1,057 2,228 346 Agricultural business/farmland 4,452 3,896 476 30 One- to four-family residential 12,262 1,878 10,045 451 Consumer: Consumer secured by one- to four-family 1,591 — 1,547 11 Consumer—other 490 7 485 3 $ 47,763 $ 18,276 $ 26,671 $ 2,147 December 31, 2015 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 1,465 $ — $ 1,416 $ 70 Investment properties 8,740 2,503 5,846 602 Multifamily real estate 359 — 357 71 Commercial construction 1,141 1,069 — — One- to four-family construction 1,741 — 1,741 161 Land and land development: Residential 3,540 750 1,634 444 Commercial 1,628 1,027 — — Commercial business 2,266 538 1,184 150 Agricultural business/farmland 1,309 544 697 43 One- to four-family residential 17,897 2,206 14,418 736 Consumer: Consumer secured by one- to four-family 776 — 716 23 Consumer—other 433 — 351 7 $ 41,295 $ 8,637 $ 28,360 $ 2,307 (1) Loans without an allowance reserve have been individually evaluated for impairment and that evaluation concluded that no reserve was needed. (2) Includes general reserves for loans evaluated in pools of homogeneous loans and loans with a specific allowance reserve. Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value. |
Schedule of Loans Receivable, Including Loans Held for Sale | Loans receivable at September 30, 2016 and December 31, 2015 are summarized as follows (dollars in thousands): September 30, 2016 December 31, 2015 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,340,577 18.1 % $ 1,327,807 18.2 % Investment properties 1,918,639 25.9 1,765,353 24.1 Multifamily real estate 266,883 3.6 472,976 6.5 Commercial construction 135,487 1.8 72,103 1.0 Multifamily construction 105,669 1.4 63,846 0.9 One- to four-family construction 363,586 4.9 278,469 3.8 Land and land development: Residential 162,029 2.2 126,773 1.7 Commercial 30,556 0.4 33,179 0.5 Commercial business 1,187,848 16.1 1,207,944 16.5 Agricultural business, including secured by farmland 383,275 5.2 376,531 5.1 One- to four-family residential 846,899 11.5 952,633 13.0 Consumer: Consumer secured by one- to four-family 497,643 6.7 478,420 6.5 Consumer—other 159,546 2.2 158,470 2.2 Total loans 7,398,637 100.0 % 7,314,504 100.0 % Less allowance for loan losses (84,220 ) (78,008 ) Net loans $ 7,314,417 $ 7,236,496 Loan amounts are net of unearned loan fees in excess of unamortized costs of $5.6 million as of September 30, 2016 and $5.5 million as of December 31, 2015 . Net loans include net discounts on acquired loans of $34.9 million and $43.7 million as of September 30, 2016 and December 31, 2015 , respectively. |
Schedule of Purchased Credit-Impaired Loans, Changes in Accretable Yield | The following table presents the changes in the accretable yield for purchased credit-impaired loans for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance, beginning of period $ 11,035 $ 2,149 $ 10,375 $ — Additions — — — 2,239 Accretion to interest income (1,811 ) (68 ) (6,349 ) (158 ) Disposals (899 ) — (1,018 ) — Reclassifications from non-accretable difference 1,120 — 6,437 — Balance, end of period $ 9,445 $ 2,081 $ 9,445 $ 2,081 |
Schedule of Impaired Loans With and Without Specific Reserves | The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Three Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 2,544 $ 3 $ 1,584 $ 3 Investment properties 19,046 74 8,399 76 Multifamily real estate 529 27 362 3 One- to four-family construction 1,176 3 2,530 29 Land and land development: Residential 1,964 20 2,400 9 Commercial 997 — 1,783 — Commercial business 4,283 16 1,813 8 Agricultural business/farmland 4,973 6 977 10 One- to four-family residential 11,973 131 18,558 124 Consumer: Consumer secured by one- to four-family 1,894 5 814 1 Consumer—other 512 3 314 2 $ 49,891 $ 288 $ 39,534 $ 265 Nine Months Ended Nine Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 2,673 $ 9 $ 1,674 $ 8 Investment properties 19,775 224 7,890 228 Multifamily real estate 518 36 364 14 One- to four-family construction 1,151 56 2,385 87 Land and land development: Residential 1,971 63 2,412 40 Commercial 1,005 — 1,861 — Commercial business 4,470 28 1,699 27 Agricultural business/farmland 4,824 19 905 19 One- to four-family residential 12,193 358 19,349 503 Consumer: Consumer secured by one- to four-family 1,913 13 894 8 Consumer—other 572 10 353 12 $ 51,065 $ 816 $ 39,786 $ 946 |
Schedule of Troubled Debt Restructurings | The following tables present TDRs at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Accrual Status Nonaccrual Status Total TDRs Commercial real estate: Owner-occupied $ 181 $ 99 $ 280 Investment properties 5,706 — 5,706 Multifamily real estate 351 — 351 One- to four-family construction 1,176 — 1,176 Land and land development: Residential 1,213 — 1,213 Commercial business 434 — 434 Agricultural business, including secured by farmland 616 87 703 One- to four-family residential 7,657 960 8,617 Consumer: Consumer secured by one- to four-family 144 8 152 Consumer—other 171 — 171 $ 17,649 $ 1,154 $ 18,803 December 31, 2015 Accrual Status Nonaccrual Status Total TDRs Commercial real estate: Owner-occupied $ 181 $ 104 $ 285 Investment properties 5,834 13 5,847 Multifamily real estate 357 — 357 One- to four-family construction 1,741 — 1,741 Land and land development: Residential 1,151 483 1,634 Commercial business 624 — 624 Agricultural business, including secured by farmland 545 277 822 One- to four-family residential 11,025 1,428 12,453 Consumer: Consumer secured by one- to four-family 147 14 161 Consumer—other 172 — 172 $ 21,777 $ 2,319 $ 24,096 As of September 30, 2016 and December 31, 2015 , the Company had commitments to advance funds related to TDRs up to additional amounts of $133,000 and $237,000 , respectively. |
Schedule of Newly Restructured Loans | new TDRs occurred during the three and nine months ended September 30, 2016 . The following table presents new TDRs that occurred during the three and nine month periods ended September 30, 2015 (dollars in thousands): Three Months Ended September 30, 2015 Nine months ended September 30, 2015 Number of Contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Contracts Pre- modification Outstanding Recorded Investment Post- modification Outstanding Recorded Investment Recorded Investment (1) (2) Land and land development—residential — $ — $ — 2 $ 1,383 $ 1,383 One- to four-family residential — — — 3 607 607 Agricultural business/farmland — — — 2 456 456 — $ — $ — 7 $ 2,446 $ 2,446 (1) Since these loans were already considered classified and/or on nonaccrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses. (2) The majority of these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. |
Schedule of Troubled Debt Restructurings Which Incurred A Payment Default | There were no TDRs which incurred a payment default within twelve months of the restructure date during the three and nine -month periods ended September 30, 2016 and 2015 . A default on a TDR results in either a transfer to nonaccrual status or a partial charge-off, or both. |
Schedule of Risk-Rated Loans and Non-Risk Rated Loans by Grade and Other Characteristics | The following table shows the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Loans Risk-rated loans: Pass (Risk Ratings 1-5) (1) $ 3,184,915 $ 264,899 $ 783,363 $ 1,140,359 $ 372,727 $ 840,609 $ 654,098 $ 7,240,970 Special mention 35,144 582 2,966 20,529 2,648 1,026 133 63,028 Substandard 39,157 1,402 10,998 26,960 7,900 5,264 2,951 94,632 Doubtful — — — — — — 7 7 Loss — — — — — — — — Total loans $ 3,259,216 $ 266,883 $ 797,327 $ 1,187,848 $ 383,275 $ 846,899 $ 657,189 $ 7,398,637 Performing loans $ 3,217,896 $ 266,448 $ 791,427 $ 1,180,819 $ 378,713 $ 842,332 $ 655,032 $ 7,332,667 Purchased credit-impaired loans 28,544 258 4,153 4,264 807 301 347 38,674 Non-performing loans (2) 12,776 177 1,747 2,765 3,755 4,266 1,810 27,296 Total loans $ 3,259,216 $ 266,883 $ 797,327 $ 1,187,848 $ 383,275 $ 846,899 $ 657,189 $ 7,398,637 December 31, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Total Loans Risk-rated loans: Pass (Risk Ratings 1-5) (1) $ 3,022,281 $ 468,467 $ 558,425 $ 1,167,933 $ 354,760 $ 943,098 $ 633,734 $ 7,148,698 Special mention 30,928 138 2,386 25,286 17,526 1,346 22 77,632 Substandard 39,951 4,371 13,559 14,725 4,245 8,189 3,124 88,164 Doubtful — — — — — — 10 10 Loss — — — — — — — — Total loans $ 3,093,160 $ 472,976 $ 574,370 $ 1,207,944 $ 376,531 $ 952,633 $ 636,890 $ 7,314,504 Performing loans $ 3,048,424 $ 470,982 $ 566,460 $ 1,198,475 $ 374,305 $ 945,968 $ 636,068 $ 7,240,682 Purchased credit-impaired loans 40,985 1,994 5,650 7,302 1,529 1,066 74 58,600 Non-performing loans (2) 3,751 — 2,260 2,167 697 5,599 748 15,222 Total loans $ 3,093,160 $ 472,976 $ 574,370 $ 1,207,944 $ 376,531 $ 952,633 $ 636,890 $ 7,314,504 (1) The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one - to four -family residential loans and, as of September 30, 2016 and December 31, 2015 , in the commercial business category, $202.2 million and $150.0 million , respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated. (2) Non-performing loans include non-accrual loans and loans past due greater than 90 days and on accrual status. |
Schedule of Age Analysis of the Company's Past Due Loans | The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 638 $ 2,681 $ 491 $ 3,810 $ 14,921 $ 1,321,846 $ 1,340,577 $ — $ 1,360 Investment properties 504 229 10,912 11,645 13,623 1,893,371 1,918,639 — 11,416 Multifamily real estate 99 — 147 246 258 266,379 266,883 147 30 Commercial construction — — — — — 135,487 135,487 — — Multifamily construction — — — — — 105,669 105,669 — — One-to-four-family construction 300 452 — 752 881 361,953 363,586 — — Land and land development: Residential — — 750 750 — 161,279 162,029 — 750 Commercial — — 997 997 3,272 26,287 30,556 — 997 Commercial business 419 333 2,631 3,383 4,264 1,180,201 1,187,848 — 2,765 Agricultural business, including secured by farmland 3,864 — 3,207 7,071 807 375,397 383,275 — 3,755 One- to four-family residential 488 648 2,683 3,819 301 842,779 846,899 852 3,414 Consumer: Consumer secured by one- to four-family 1,158 578 816 2,552 80 495,011 497,643 253 1,150 Consumer—other 516 219 323 1,058 267 158,221 159,546 172 235 Total $ 7,986 $ 5,140 $ 22,957 $ 36,083 $ 38,674 $ 7,323,880 $ 7,398,637 $ 1,424 $ 25,872 December 31, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 3,981 $ 139 $ 885 $ 5,005 $ 24,261 $ 1,298,541 $ 1,327,807 $ — $ 1,235 Investment properties 1,763 132 2,503 4,398 16,724 1,744,231 1,765,353 — 2,516 Multifamily real estate 4 — — 4 1,994 470,978 472,976 — — Commercial construction — — — — — 72,103 72,103 — — Multifamily construction 771 13 — 784 — 63,062 63,846 — — One-to-four-family construction 2,466 220 — 2,686 905 274,878 278,469 — 1,233 Land and land development: Residential — — 747 747 77 125,949 126,773 — 1,027 Commercial — 96 — 96 4,668 28,415 33,179 — — Commercial business 1,844 174 1,024 3,042 7,302 1,197,600 1,207,944 8 2,159 Agricultural business, including secured by farmland 323 729 278 1,330 1,529 373,672 376,531 — 697 One-to four-family residential 620 873 3,811 5,304 1,066 946,263 952,633 899 4,700 Consumer: Consumer secured by one- to four-family 465 60 38 563 40 477,817 478,420 4 565 Consumer—other 488 155 131 774 34 157,662 158,470 41 138 Total $ 12,725 $ 2,591 $ 9,417 $ 24,733 $ 58,600 $ 7,231,171 $ 7,314,504 $ 952 $ 14,270 |
Allowance for Credit Losses on Financing Receivables | The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three and nine months ended September 30, 2016 and 2015 (in thousands): For the Three Months Ended September 30, 2016 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,149 $ 1,515 $ 31,861 $ 17,758 $ 2,891 $ 2,204 $ 3,743 $ 1,197 $ 81,318 Provision for loan losses (337 ) (79 ) 1,269 (1,351 ) 80 (404 ) 348 2,474 2,000 Recoveries 34 — 673 433 (138 ) 482 73 — 1,557 Charge-offs — — — (333 ) — (92 ) (230 ) — (655 ) Ending balance $ 19,846 $ 1,436 $ 33,803 $ 16,507 $ 2,833 $ 2,190 $ 3,934 $ 3,671 $ 84,220 For the Nine Months Ended September 30, 2016 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,716 $ 4,195 $ 27,131 $ 13,856 $ 3,645 $ 4,732 $ 902 $ 2,831 $ 78,008 Provision for loan losses (788 ) (2,759 ) 5,404 1,519 (284 ) (3,468 ) 3,536 840 4,000 Recoveries 98 — 1,268 1,775 39 1,052 529 — 4,761 Charge-offs (180 ) — — (643 ) (567 ) (126 ) (1,033 ) — (2,549 ) Ending balance $ 19,846 $ 1,436 $ 33,803 $ 16,507 $ 2,833 $ 2,190 $ 3,934 $ 3,671 $ 84,220 September 30, 2016 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 832 $ 65 $ 396 $ 54 $ — $ 456 $ 6 $ — $ 1,809 Collectively evaluated for impairment 19,014 1,371 33,374 16,453 2,833 1,734 3,928 3,671 82,378 Purchased credit-impaired loans — — 33 — — — — — 33 Total allowance for loan losses $ 19,846 $ 1,436 $ 33,803 $ 16,507 $ 2,833 $ 2,190 $ 3,934 $ 3,671 $ 84,220 Loan balances: Individually evaluated for impairment $ 16,630 $ 351 $ 4,137 $ 2,026 $ 2,758 $ 8,270 $ 315 $ — $ 34,487 Collectively evaluated for impairment 3,214,042 266,274 789,037 1,181,558 379,710 838,328 656,527 — 7,325,476 Purchased credit-impaired loans 28,544 258 4,153 4,264 807 301 347 — 38,674 Total loans $ 3,259,216 $ 266,883 $ 797,327 $ 1,187,848 $ 383,275 $ 846,899 $ 657,189 $ — $ 7,398,637 For the Three Months Ended September 30, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 18,948 $ 4,273 $ 25,415 $ 13,184 $ 2,679 $ 8,542 $ 780 $ 3,508 $ 77,329 Provision for loan losses 317 90 1,929 (235 ) (292 ) (635 ) 330 (1,504 ) — Recoveries 375 — 282 128 146 42 91 — 1,064 Charge-offs — — (352 ) (312 ) — (12 ) (397 ) — (1,073 ) Ending balance $ 19,640 $ 4,363 $ 27,274 $ 12,765 $ 2,533 $ 7,937 $ 804 $ 2,004 $ 77,320 For the Nine Months Ended September 30, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 18,784 $ 4,562 $ 23,545 $ 12,043 $ 2,821 $ 8,447 $ 483 $ 5,222 $ 75,907 Provision for loan losses 333 (312 ) 2,847 664 (890 ) (524 ) 1,100 (3,218 ) — Recoveries 587 113 1,234 803 1,666 141 369 — 4,913 Charge-offs (64 ) — (352 ) (745 ) (1,064 ) (127 ) (1,148 ) — (3,500 ) Ending balance $ 19,640 $ 4,363 $ 27,274 $ 12,765 $ 2,533 $ 7,937 $ 804 $ 2,004 $ 77,320 September 30, 2015 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 612 $ 73 $ 473 $ 74 $ 17 $ 706 $ 60 $ — $ 2,015 Collectively evaluated for impairment 19,028 4,290 26,801 12,691 2,516 7,231 744 2,004 75,305 Purchased credit-impaired loans — — — — — — — — — Total allowance for loan losses $ 19,640 $ 4,363 $ 27,274 $ 12,765 $ 2,533 $ 7,937 $ 804 $ 2,004 $ 77,320 Loan balances: Individually evaluated for impairment $ 6,182 $ 361 $ 6,034 $ 644 $ 776 $ 13,952 $ 528 $ — $ 28,477 Collectively evaluated for impairment 1,690,251 198,072 484,241 811,426 241,780 522,373 390,565 — 4,338,708 Purchased credit impaired loans 1,131 441 3,525 — — — 312 — 5,409 Total loans $ 1,697,564 $ 198,874 $ 493,800 $ 812,070 $ 242,556 $ 536,325 $ 391,405 $ — $ 4,372,594 |
REAL ESTATE OWNED, NET (Tables)
REAL ESTATE OWNED, NET (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Schedule of Changes in Real Estate Owned, Net of Valuation Adjustments | The following table presents the changes in REO for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance, beginning of the period $ 6,147 $ 6,105 $ 11,627 $ 3,352 Additions from loan foreclosures 156 1,085 534 3,226 Additions from acquisitions — — 400 2,525 Additions from capitalized costs — — — 298 Proceeds from dispositions of REO (1,699 ) (906 ) (8,021 ) (3,155 ) Gain on sale of REO 281 113 981 333 Valuation adjustments in the period (168 ) (34 ) (804 ) (216 ) Balance, end of the period $ 4,717 $ 6,363 $ 4,717 $ 6,363 |
GOODWILL, OTHER INTANGIBLE AS28
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill and Intangible Assets | The following table summarizes the changes in the Company’s goodwill and other intangibles for the nine months ended September 30, 2016 and the year ended December 31, 2015 (in thousands): Goodwill CDI Favorable LHI Total Balance, December 31, 2014 $ — $ 2,831 $ — $ 2,831 Additions through acquisitions 247,738 37,395 776 285,909 Amortization — (3,164 ) (66 ) (3,230 ) Other changes (1) — (300 ) — (300 ) Balance, December 31, 2015 247,738 36,762 710 285,210 Amortization — (5,339 ) (199 ) (5,538 ) Adjustments to goodwill (3,155 ) — — (3,155 ) Balance, September 30, 2016 $ 244,583 $ 31,423 $ 511 $ 276,517 (1) Acquired CDI from AmericanWest was adjusted for a branch that was subsequently sold. |
Schedule of Estimated Annual Amortization Expense | The following table presents the estimated amortization expense with respect to CDI for the periods indicated (in thousands): Estimated Amortization Remainder of 2016 $ 1,722 2017 6,332 2018 5,609 2019 4,889 2020 4,169 Thereafter 8,702 $ 31,423 |
Schedule of Servicing Assets at Amortized Value | An analysis of our mortgage servicing rights for the three and nine months ended September 30, 2016 and 2015 is presented below (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance, beginning of the period $ 14,276 $ 12,329 $ 13,354 $ 9,030 Additions—amounts capitalized 1,652 1,360 4,371 4,052 Additions—acquired through business combinations — — — 2,172 Amortization (1) (1,102 ) (810 ) (2,899 ) (2,375 ) Balance, end of the period (2) $ 14,826 $ 12,879 $ 14,826 $ 12,879 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income and any unamortized balance is fully amortized if the loan repays in full. (2) There was no valuation allowance as of September 30, 2016 and 2015 . |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | Deposits consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Non-interest-bearing accounts $ 3,190,293 $ 2,619,618 Interest-bearing checking 853,594 1,159,846 Regular savings accounts 1,387,123 1,284,642 Money market accounts 1,557,951 1,637,092 Total interest-bearing transaction and saving accounts 3,798,668 4,081,580 Certificates of deposit: Certificates of deposit less than or equal to $250,000 956,968 1,168,495 Certificates of deposit greater than $250,000 166,043 185,375 Total certificates of deposit 1,123,011 1,353,870 Total deposits $ 8,111,972 $ 8,055,068 Included in total deposits: Public fund transaction and savings accounts $ 201,665 $ 209,430 Public fund interest-bearing certificates 26,734 31,281 Total public deposits $ 228,399 $ 240,711 Total brokered deposits $ 60,290 $ 162,936 |
Maturities of Certificates of Deposit | Scheduled maturities and repricing of certificate accounts at September 30, 2016 were as follows (in thousands): September 30, 2016 Certificates which mature or reprice: Within one year or less $ 834,884 After one year through two years 168,280 After two years through three years 58,126 After three years through four years 27,890 After four years through five years 30,226 After five years 3,605 Total certificates of deposit $ 1,123,011 |
FAIR VALUE OF FINANCIAL INSTR30
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments, by Balance Sheet Grouping | The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2016 and December 31, 2015 , whether or not measured at fair value in the Consolidated Statements of Financial Condition (in thousands): September 30, 2016 December 31, 2015 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 245,917 $ 245,917 $ 261,917 $ 261,917 Securities—trading 2,3 30,889 30,889 34,134 34,134 Securities—available-for-sale 2 1,006,414 1,006,414 1,138,573 1,138,573 Securities—held-to-maturity 2,3 271,975 283,303 220,666 226,627 Loans held for sale 2 123,144 124,749 44,712 45,600 Loans receivable 3 7,398,637 7,334,303 7,314,504 7,084,631 FHLB stock 3 12,826 12,826 16,057 16,057 Bank-owned life insurance 1 158,831 158,831 156,865 156,865 Mortgage servicing rights 3 14,826 15,170 13,295 17,370 Derivatives: Interest rate swaps 2 18,999 18,999 11,984 11,984 Interest rate forward sales commitments 2 1,119 1,119 471 471 Liabilities: Demand, interest checking and money market accounts 2 5,601,838 5,601,838 5,416,556 5,416,556 Regular savings 2 1,387,123 1,387,123 1,284,642 1,284,642 Certificates of deposit 2 1,123,011 1,109,322 1,353,870 1,332,825 FHLB advances 2 62,342 62,342 133,381 133,381 Other borrowings 2 108,911 108,911 98,325 98,325 Junior subordinated debentures 3 94,364 94,364 92,480 92,480 Derivatives: Interest rate swaps 2 18,999 18,999 11,984 11,984 Interest rate forward sales commitments 2 540 540 50 50 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Securities—trading U.S. Government and agency obligations $ — $ 1,366 $ — $ 1,366 Municipal bonds — 336 — 336 Corporate Bonds (Trust Preferred Securities) — — 20,925 20,925 Mortgage-backed or related securities — 8,173 — 8,173 Equity securities — 89 — 89 — 9,964 20,925 30,889 Securities—available-for-sale U.S. Government and agency obligations — 58,169 — 58,169 Municipal bonds — 145,400 — 145,400 Corporate bonds — 10,373 — 10,373 Mortgage-backed or related securities — 762,654 — 762,654 Asset-backed securities — 29,720 — 29,720 Equity securities — 98 — 98 — 1,006,414 — 1,006,414 Derivatives Interest rate swaps — 18,999 — 18,999 Interest rate lock commitments — 1,119 — 1,119 $ — $ 1,036,496 $ 20,925 $ 1,057,421 Liabilities: Advances from FHLB $ — $ 62,342 $ — $ 62,342 Junior subordinated debentures, net of unamortized deferred issuance costs — — 94,364 94,364 Derivatives Interest rate swaps — 18,999 — 18,999 Interest rate forward sales commitments — 540 — 540 $ — $ 81,881 $ 94,364 $ 176,245 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Securities—trading U.S. Government and agency obligations $ — $ 1,368 $ — $ 1,368 Municipal bonds — 341 — 341 Corporate Bonds (Trust Preferred Securities) — — 18,699 18,699 Mortgage-backed securities — 13,663 — 13,663 Equity securities — 63 — 63 — 15,435 18,699 34,134 Securities—available-for-sale U.S. Government and agency obligations — 30,231 — 30,231 Municipal bonds — 143,319 — 143,319 Corporate bonds — 15,981 — 15,981 Mortgage-backed securities — 918,259 — 918,259 Asset-backed securities — 30,685 — 30,685 Equity securities — 98 — 98 — 1,138,573 — 1,138,573 Derivatives Interest rate swaps — 11,984 — 11,984 Interest rate lock commitments — 471 — 471 $ — $ 1,166,463 $ 18,699 $ 1,185,162 Liabilities: Advances from FHLB $ — $ 133,381 $ — $ 133,381 Junior subordinated debentures, net of unamortized deferred issuance costs — — 92,480 92,480 Derivatives Interest rate swaps — 11,984 — 11,984 Interest rate forward sales commitments — 50 — 50 $ — $ 145,415 $ 92,480 $ 237,895 |
Schedule of Valuation Technique, Unobservable Input, and Qualitative Information for Unobservable Inputs | The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for certain of the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2016 and December 31, 2015 : Weighted Average Rate Financial Instruments Valuation Techniques Unobservable Inputs September 30, 2016 December 31, 2015 Corporate Bonds (TPS securities) Discounted cash flows Discount rate 5.85 % 5.61 % Junior subordinated debentures Discounted cash flows Discount rate 5.85 5.61 Impaired loans Discounted cash flows Discount rate Various Various Impaired loans Collateral Valuations Market values n/a n/a REO Appraisals Market values n/a n/a |
Schedule of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures TPS Securities Borrowings— Junior Subordinated Debentures Beginning balance $ 20,645 $ 93,298 $ 18,699 $ 92,480 Total gains or losses recognized Assets gains 280 — 501 — Liabilities losses — 1,066 — 1,884 Purchases, issuances and settlements, including acquisitions — — 1,725 — Ending balance at September 30, 2016 $ 20,925 $ 94,364 $ 20,925 $ 94,364 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS and TRUP CDOs Borrowings—Junior Subordinated Debentures TPS and TRUP CDOs Borrowings— Junior Subordinated Debentures Beginning balance $ 12,571 $ 84,694 $ 19,119 $ 78,001 Total gains or losses recognized Assets gains (596 ) — 1,475 — Liabilities losses — 489 — 1,223 Purchases, issuances and settlements, including acquisitions 6,338 — 6,338 5,959 Sales, maturities and paydowns, net of discount amortization 27 — (8,592 ) — Ending balance at September 30, 2015 $ 18,340 $ 85,183 $ 18,340 $ 85,183 |
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables present financial assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 4,688 $ 4,688 REO — — 4,717 4,717 December 31, 2015 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,372 $ 2,372 REO — — 11,627 11,627 The following table presents the gains (losses) resulting from nonrecurring fair value adjustments for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three months ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Impaired loans $ (128 ) $ (600 ) $ (182 ) $ (916 ) REO (168 ) (34 ) (599 ) (244 ) Total gain (loss) from nonrecurring measurements $ (296 ) $ (634 ) $ (781 ) $ (1,160 ) |
INCOME TAXES AND DEFERRED TAX31
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the balances of the Company’s tax credit investments and related unfunded commitments at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Tax credit investments $ 4,822 $ 5,326 Unfunded commitments—tax credit investments $ 719 $ 1,398 The following table presents other information related to the Company's tax credit investments for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Tax credits and other tax benefits recognized $ 284 $ 329 $ 852 $ 958 Tax credit amortization expense included in provision for income taxes $ 168 $ 255 504 745 |
CALCULATION OF WEIGHTED AVERA32
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Weighted Shares Outstanding | The following table reconciles basic to diluted weighted shares outstanding used to calculate earnings per share data (in thousands, except shares and per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income $ 23,851 $ 12,947 $ 62,581 $ 38,329 Basic weighted average shares outstanding 34,045,225 20,755,394 34,050,459 20,417,601 Plus unvested restricted stock 79,386 65,983 54,416 50,008 Diluted weighted shares outstanding 34,124,611 20,821,377 34,104,875 20,467,609 Earnings per common share Basic $ 0.70 $ 0.62 $ 1.84 $ 1.88 Diluted $ 0.70 $ 0.62 $ 1.83 $ 1.87 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments With Off-Balance-Sheet Risks | Outstanding commitments for which no asset or liability for the notional amount has been recorded consisted of the following at the dates indicated (in thousands): Contract or Notional Amount September 30, 2016 December 31, 2015 Commitments to extend credit $ 2,209,750 $ 2,132,996 Standby letters of credit and financial guarantees 21,655 22,315 Commitments to originate loans 61,444 32,908 Risk participation agreement 7,535 7,672 Derivatives also included in Note 14: Commitments to originate loans held for sale 106,019 76,146 Commitments to sell loans secured by one- to four-family residential properties 42,456 37,545 Commitments to sell securities related to mortgage banking activities 59,854 41,500 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated in Hedge Relationships | As of September 30, 2016 and December 31, 2015 , the notional values or contractual amounts and fair values of the Company's derivatives designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 6,452 $ 868 $ 6,734 $ 938 $ 6,452 $ 868 $ 6,734 $ 938 (1) Included in Loans receivable on the Consolidated Statements of Financial Condition. (2) Included in Other liabilities on the Consolidated Statements of Financial Condition. |
Schedule of Derivatives Not Designated in Hedge Relationships | As of September 30, 2016 and December 31, 2015 , the notional values or contractual amounts and fair values of the Company's derivatives not designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 301,818 $ 18,131 $ 293,937 $ 11,046 $ 301,818 $ 18,131 $ 293,937 $ 11,046 Mortgage loan commitments 67,713 894 76,146 428 38,306 225 — — Forward sales contracts 38,306 225 41,500 43 59,854 315 32,763 50 $ 407,837 $ 19,250 $ 411,583 $ 11,517 $ 399,978 $ 18,671 $ 326,700 $ 11,096 (1) Included in Other assets on the Consolidated Statements of Financial Condition, with the exception of those interest rate swaps that were not designated in hedge relationships (with a fair value of $1.1 million at September 30, 2016 and $327,000 at December 31, 2015 ), which are included in Loans receivable. (2) Included in Other liabilities on the Consolidated Statements of Financial Condition. Gains (losses) recognized in income on non-designated hedging instruments for the three and nine months ended September 30, 2016 and 2015 were as follows (in thousands): Location on Consolidated Statements of Operations Three Months Ended Nine Months Ended 2016 2015 2016 2015 Mortgage loan commitments Mortgage banking operations $ (376 ) $ 442 $ 516 $ 475 Forward sales contracts Mortgage banking operations 315 (665 ) (297 ) (209 ) $ (61 ) $ (223 ) $ 219 $ 266 |
Offsetting Assets and Liabilities | The following table illustrates the potential effect of the Company's derivative master netting arrangements, by type of financial instrument, on the Company's Consolidated Statements of Financial Condition as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 18,999 $ — $ 18,999 $ — $ — $ 18,999 $ 18,999 $ — $ 18,999 $ — $ — $ 18,999 Derivative liabilities Interest rate swaps $ 18,999 $ — $ 18,999 $ — $ (18,981 ) $ 18 $ 18,999 $ — $ 18,999 $ — $ (18,981 ) $ 18 December 31, 2015 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Netting Adjustment Per Applicable Master Netting Agreements Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 11,984 $ — $ 11,984 $ — $ — $ 11,984 $ 11,984 $ — $ 11,984 $ — $ — $ 11,984 Derivative liabilities Interest rate swaps $ 11,984 $ — $ 11,984 $ — $ (11,984 ) $ — $ 11,984 $ — $ 11,984 $ — $ (11,984 ) $ — |
BUSINESS COMBINATIONS BUSINES35
BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Textual) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 01, 2015USD ($)bank_branchshares | Mar. 06, 2015USD ($)$ / shares | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 244,583 | $ 247,738 | $ 0 | ||
Assets | $ 9,900,000 | $ 9,841,028 | $ 9,796,298 | ||
Number of Stores | bank_branch | 203 | ||||
Starbuck Bancshares, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition Date | Oct. 1, 2015 | ||||
Cash paid in acquisition | $ 130,000 | ||||
Common Stock Issued, Shares | shares | 13,230 | ||||
Fair value of common shares issued | $ 630,674 | ||||
Business Combination, Consideration Transferred | 760,674 | ||||
Total assets acquired | 4,459,985 | ||||
Loans receivable acquired | 2,999,130 | ||||
Goodwill | 222,892 | ||||
Core deposit intangible | 33,500 | ||||
Deposits acquired | $ 3,638,596 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||||
Acquired receivables, non-credit-impaired | $ 2,950,000 | ||||
Acquired receivables, non-credit-impaired, fair value | 2,940,000 | ||||
Acquired receivables, discount | (17,700) | ||||
Business Combination, Acquired Receivables, Non-Credit-Impaired, Cash Flows Not Expected to be Collected at Acquisition | $ 44,100 | ||||
Siuslaw Financial Group, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition Date | Mar. 6, 2015 | ||||
Cash paid in acquisition | $ 5,806 | ||||
Fair value of common shares issued | $ 58,100 | ||||
Equity interest issued to Siuslaw's shareholders per share | $ / shares | $ 0.32231 | ||||
Cash payment issued to Siuslaw's shareholders (usd per share) | $ / shares | $ 1.41622 | ||||
Business Combination, Consideration Transferred | $ 63,906 | ||||
Total assets acquired | 369,763 | ||||
Loans receivable acquired | 247,098 | ||||
Goodwill | 21,691 | ||||
Core deposit intangible | 3,895 | ||||
Deposits acquired | $ 316,406 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 8 years | ||||
Acquired receivables, non-credit-impaired | $ 244,200 | ||||
Acquired receivables, non-credit-impaired, fair value | 241,400 | ||||
Acquired receivables, discount | $ (2,800) | ||||
Washington, Oregon, Idaho, California and Utah [Member] | Starbuck Bancshares, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of branches acquired | bank_branch | 98 |
BUSINESS COMBINATIONS BUSINES36
BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Schedule of Components of Acquisition) (Details) - USD ($) $ in Thousands | Oct. 01, 2015 | Mar. 06, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of liabilities assumed: | |||||
Goodwill | $ 244,583 | $ 247,738 | $ 0 | ||
Siuslaw Financial Group, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition Date | Mar. 6, 2015 | ||||
Consideration transferred: | |||||
Cash paid | $ 5,806 | ||||
Fair value of common shares issued | 58,100 | ||||
Total consideration | 63,906 | ||||
Fair value of assets acquired: | |||||
Cash and cash equivalents | 84,405 | ||||
Securities—available-for-sale | 12,865 | ||||
Loans receivable | 247,098 | ||||
REO, held for sale | 2,525 | ||||
Property and equipment | 8,127 | ||||
Core deposit intangible | 3,895 | ||||
Other assets | 10,848 | ||||
Total assets acquired | 369,763 | ||||
Fair value of liabilities assumed: | |||||
Deposits | 316,406 | ||||
Junior subordinated debentures | 5,959 | ||||
Other liabilities | 5,183 | ||||
Total liabilities assumed | 327,548 | ||||
Net assets acquired | 42,215 | ||||
Goodwill | 21,691 | ||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 252,200 | ||||
Starbuck Bancshares, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition Date | Oct. 1, 2015 | ||||
Consideration transferred: | |||||
Cash paid | $ 130,000 | ||||
Fair value of common shares issued | 630,674 | ||||
Total consideration | 760,674 | ||||
Fair value of assets acquired: | |||||
Cash and cash equivalents | 95,821 | ||||
Securities—available-for-sale | 1,037,238 | ||||
Loans receivable | 2,999,130 | ||||
REO, held for sale | 6,105 | ||||
Property and equipment | 66,728 | ||||
Core deposit intangible | 33,500 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 108,454 | ||||
Other assets | 113,009 | ||||
Total assets acquired | 4,459,985 | ||||
Fair value of liabilities assumed: | |||||
Deposits | 3,638,596 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 221,442 | ||||
Junior subordinated debentures | 5,806 | ||||
Other liabilities | 56,359 | ||||
Total liabilities assumed | 3,922,203 | ||||
Net assets acquired | 537,782 | ||||
Goodwill | 222,892 | ||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 3,040,000 |
BUSINESS COMBINATIONS BUSINES37
BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Schedule of Acquired Purchased Impaired Loans) (Details) - USD ($) $ in Thousands | Oct. 01, 2015 | Mar. 06, 2015 |
Starbuck Bancshares, Inc [Member] | ||
Acquired purchased credit-impaired loans: | ||
Contractually required principal and interest payments | $ 98,746 | |
Nonaccretable difference | (26,162) | |
Cash flows expected to be collected | 72,584 | |
Accretable yield | (11,071) | |
Fair value of purchased credit-impaired loans | $ 61,513 | |
Siuslaw Financial Group, Inc [Member] | ||
Acquired purchased credit-impaired loans: | ||
Contractually required principal and interest payments | $ 11,134 | |
Nonaccretable difference | (3,238) | |
Cash flows expected to be collected | 7,896 | |
Accretable yield | (2,239) | |
Fair value of purchased credit-impaired loans | $ 5,657 |
BUSINESS COMBINATIONS (Pro Form
BUSINESS COMBINATIONS (Pro Forma) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Starbuck Bancshares, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Total revenues (net interest income plus non-interest income) | $ 117,141 | $ 345,454 |
Net income | $ 26,289 | $ 70,225 |
Earnings per share - basic (usd per share) | $ 0.81 | $ 2.09 |
Earnings per share - diluted (usd per share) | $ 0.81 | $ 2.08 |
Siuslaw Financial Group, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Total revenues (net interest income plus non-interest income) | $ 66,286 | $ 197,048 |
Net income | $ 12,947 | $ 38,714 |
Earnings per share - basic (usd per share) | $ 0.62 | $ 1.87 |
Earnings per share - diluted (usd per share) | $ 0.62 | $ 1.86 |
BUSINESS COMBINATIONS BUSINES39
BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Schedule of Acquisition-Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | $ 1,720 | $ 2,207 | $ 10,945 | $ 7,741 |
Salary and Employee Benefits [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | 16 | 227 | 1,304 | 443 |
Occupancy and Equipment [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | 94 | 5 | 2,517 | 55 |
Advertising and Marketing [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | 527 | 151 | 904 | 221 |
Information and Computer Data Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | 459 | 301 | 2,409 | 807 |
Payment and Card Processing Expenses [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | 0 | 16 | 0 | 16 |
Professional Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | 687 | 1,185 | 2,138 | 5,411 |
Miscellaneous | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | (63) | 322 | 1,673 | 788 |
Siuslaw Financial Group, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | 1 | 340 | 95 | 1,867 |
Starbuck Bancshares, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs recognized in non-interest expenses: | $ 1,719 | $ 1,867 | $ 10,850 | $ 5,874 |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | $ 36,119 | $ 39,344 |
Securities—trading | 30,889 | 34,134 |
Available-for-sale Securities, Amortized Cost | 993,913 | 1,139,740 |
Available-for-sale Securities, Gross Unrealized Gains | 13,698 | 5,188 |
Available-for-sale Securities, Gross Unrealized Losses | (1,197) | (6,355) |
Securities—available-for-sale | 1,006,414 | 1,138,573 |
Held-to-maturity Securities, Amortized Cost | 271,975 | 220,666 |
Held-to-maturity Securities, Gross Unrealized Gains | 11,342 | 6,477 |
Held-to-maturity Securities, Gross Unrealized Losses | 14 | 516 |
Securities—held-to-maturity | 283,303 | 226,627 |
U.S. Government and agency obligations [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 1,230 | 1,230 |
Securities—trading | 1,366 | 1,368 |
Available-for-sale Securities, Amortized Cost | 57,900 | 30,211 |
Available-for-sale Securities, Gross Unrealized Gains | 298 | 213 |
Available-for-sale Securities, Gross Unrealized Losses | (28) | (193) |
Securities—available-for-sale | 58,170 | 30,231 |
Held-to-maturity Securities, Amortized Cost | 1,076 | 1,106 |
Held-to-maturity Securities, Gross Unrealized Gains | 0 | 5 |
Held-to-maturity Securities, Gross Unrealized Losses | 2 | 0 |
Securities—held-to-maturity | 1,074 | 1,111 |
Municipal bonds [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 331 | 332 |
Securities—trading | 336 | 341 |
Available-for-sale Securities, Amortized Cost | 142,234 | 142,898 |
Available-for-sale Securities, Gross Unrealized Gains | 3,236 | 853 |
Available-for-sale Securities, Gross Unrealized Losses | (69) | (432) |
Securities—available-for-sale | 145,401 | 143,319 |
Held-to-maturity Securities, Amortized Cost | 199,606 | 162,778 |
Held-to-maturity Securities, Gross Unrealized Gains | 8,841 | 6,219 |
Held-to-maturity Securities, Gross Unrealized Losses | 12 | 191 |
Securities—held-to-maturity | 208,435 | 168,806 |
Corporate bonds [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 26,916 | 25,063 |
Securities—trading | 20,925 | 18,699 |
Available-for-sale Securities, Amortized Cost | 10,386 | 15,937 |
Available-for-sale Securities, Gross Unrealized Gains | 39 | 56 |
Available-for-sale Securities, Gross Unrealized Losses | (52) | (12) |
Securities—available-for-sale | 10,373 | 15,981 |
Held-to-maturity Securities, Amortized Cost | 4,162 | 4,273 |
Held-to-maturity Securities, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity Securities, Gross Unrealized Losses | 0 | 0 |
Securities—held-to-maturity | 4,162 | 4,273 |
Mortgage-backed or related securities [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 7,628 | 12,705 |
Securities—trading | 8,173 | 13,663 |
Available-for-sale Securities, Amortized Cost | 753,344 | 919,318 |
Available-for-sale Securities, Gross Unrealized Gains | 10,094 | 4,056 |
Available-for-sale Securities, Gross Unrealized Losses | (786) | (5,115) |
Securities—available-for-sale | 762,652 | 918,259 |
Held-to-maturity Securities, Amortized Cost | 67,131 | 52,509 |
Held-to-maturity Securities, Gross Unrealized Gains | 2,501 | 253 |
Held-to-maturity Securities, Gross Unrealized Losses | 0 | 325 |
Securities—held-to-maturity | 69,632 | 52,437 |
Asset-backed Securities [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 29,961 | 31,288 |
Available-for-sale Securities, Gross Unrealized Gains | 21 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | (262) | (603) |
Securities—available-for-sale | 29,720 | 30,685 |
Equity securities [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 14 | 14 |
Securities—trading | 89 | 63 |
Available-for-sale Securities, Amortized Cost | 88 | 88 |
Available-for-sale Securities, Gross Unrealized Gains | 10 | 10 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Securities—available-for-sale | $ 98 | $ 98 |
SECURITIES (Securities with Con
SECURITIES (Securities with Continuous Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 181,897 | $ 637,744 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (735) | (5,270) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 54,565 | 89,748 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (462) | (1,085) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 236,462 | 727,492 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,197) | (6,355) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 5,568 | 63,038 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14 | 511 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 509 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (5) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 5,568 | 63,547 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | 14 | 516 |
U.S. Government and agency obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 5,784 | 8,707 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (16) | (97) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,078 | 10,489 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (12) | (96) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,862 | 19,196 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (28) | (193) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,074 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 1,074 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2 | |
Municipal bonds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 18,503 | 69,848 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (67) | (426) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,060 | 905 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 19,563 | 70,753 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (69) | (432) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 4,494 | 28,545 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 12 | 188 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 254 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (3) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 4,494 | 28,799 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | 12 | 191 |
Corporate bonds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 5,334 | 5,153 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (52) | (12) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,334 | 5,153 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (52) | (12) |
Mortgage-backed or related securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 152,276 | 533,143 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (600) | (4,380) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 32,760 | 68,562 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (186) | (735) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 185,036 | 601,705 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (786) | (5,115) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 34,493 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 323 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 255 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 34,748 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | 325 | |
Asset-backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 20,893 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (355) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 19,667 | 9,792 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (262) | (248) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 19,667 | 30,685 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (262) | $ (603) |
SECURITIES (Securities Debt Mat
SECURITIES (Securities Debt Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading Securities, Amortized Cost, Maturing in one year or less | $ 0 | |
Trading Securities, Amortized Cost, Maturing after one year through five years | 5,668 | |
Trading Securities, Amortized Cost, Maturing after five years through ten years | 3,245 | |
Trading Securities, Amortized Cost, Maturing after ten years through twenty years | 276 | |
Trading Securities, Amortized Cost, Maturing after twenty years | 26,916 | |
Trading Securities, Amortized Cost, Total with contractual maturity | 36,105 | |
Trading Securities, Amortized Cost, Equity securities | 14 | |
Trading Securities, Amortized Cost | 36,119 | $ 39,344 |
Trading Securities, Fair Value, Maturing in one year or less | 0 | |
Trading Securities, Fair Value, Maturing after one year through five years | 5,969 | |
Trading Securities, Fair Value, Maturing after five years through ten years | 3,596 | |
Trading Securities, Fair Value, Maturing after ten years through twenty years | 310 | |
Trading Securities, Fair Value, Maturing after twenty years | 20,925 | |
Trading Securities, Fair Value, Total with contractual maturity | 30,800 | |
Trading Securities, Fair Value, Equity securities | 89 | |
Trading Securities, Fair Value | 30,889 | 34,134 |
Available-for-sale Securities, Amortized Cost, Maturing in one year or less | 13,178 | |
Available-for-sale Securities, Amortized Cost, Maturing after one year through five years | 179,161 | |
Available-for-sale Securities, Amortized Cost, Maturing after five years through ten years | 203,970 | |
Available-for-sale Securities, Amortized Cost, Maturing after ten years through twenty years | 240,518 | |
Available-for-sale Securities, Amortized Cost, Maturing after twenty years | 356,998 | |
Available-for-sale Securities, Amortized Cost, Total with contractual maturity | 993,825 | |
Available-for-sale Securities, Amortized Cost, Equity securities | 88 | |
Available-for-sale Securities, Amortized Cost | 993,913 | 1,139,740 |
Available-for-sale Securities, Fair Value, Maturing in one year or less | 13,175 | |
Available-for-sale Securities, Fair Value, Maturing after one year through five years | 180,625 | |
Available-for-sale Securities, Fair Value, Maturing after five years through ten years | 206,203 | |
Available-for-sale Securities, Fair Value, Maturing after ten years through twenty years | 244,927 | |
Available-for-sale Securities, Fair Value, Maturing after twenty years | 361,386 | |
Available-for-sale Securities, Fair Value, Total with contractual maturity | 1,006,316 | |
Available-for-sale Securities, Fair Value, Equity securities | 98 | |
Available-for-sale Securities, Fair Value | 1,006,414 | 1,138,573 |
Held-to-maturity Securities, Amortized Cost, Maturing in one year or less | 2,561 | |
Held-to-maturity Securities, Amortized Cost, Maturing after one year through five years | 15,252 | |
Held-to-maturity Securities, Amortized Cost, Maturing after five years through ten years | 112,199 | |
Held-to-maturity Securities, Amortized Cost, Maturing after ten years through twenty years | 96,601 | |
Held-to-maturity Securities, Amortized Cost, Maturing after twenty years | 45,362 | |
Held-to-maturity Securities, Amortized Cost | 271,975 | 220,666 |
Held-to-maturity Securities, Fair Value, Maturing in one year or less | 2,583 | |
Held-to-maturity Securities, Fair Value, Maturing after one year through five years | 15,500 | |
Held-to-maturity Securities, Fair Value, Maturing after five years through ten years | 116,736 | |
Held-to-maturity Securities, Fair Value, Maturing after ten years through twenty years | 102,641 | |
Held-to-maturity Securities, Fair Value, Maturing after twenty years | 45,843 | |
Held-to-maturity Securities, Fair Value | $ 283,303 | $ 226,627 |
SECURITIES (Securities Pledged)
SECURITIES (Securities Pledged) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Pledged Financial Instruments, Not Separately Reported, Securities [Abstract] | |
Securities pledged for State and Local Government Public Deposits, Carrying Value | $ 204,765 |
Securities pledged for Interest Rate Swap Counterparties, Carrying Value | 24,754 |
Securities pledged for Repurchase Agreements, Carrying Value | 126,873 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities | 1,890 |
Total pledged securities, Carrying Value | 358,282 |
Securities pledged for State and Local Government public deposits, Amortized Cost | 203,838 |
Securities pledged for Interest Rate Swap Counterparties, Amortized Cost | 24,669 |
Securities pledged for Repurchase Agreements, Amortized Cost | 125,666 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Amortized Cost | 1,884 |
Total pledged securities, Amortized Cost | 356,057 |
Securities pledged for State and Local Government Public Deposits, Fair Value | 213,382 |
Securities pledged for Interest Rate Swap Counterparties, Fair Value | 25,501 |
Securities pledged for Retail Repurchase Agreements, Fair Value | 127,958 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Fair Value | 1,889 |
Total pledged securities, Fair Value | $ 368,730 |
SECURITIES (Textual) (Details)
SECURITIES (Textual) (Details) | 9 Months Ended | ||
Sep. 30, 2016USD ($)security | Sep. 30, 2015USD ($)security | Dec. 31, 2015security | |
Trading Securities [Abstract] | |||
Trading Securities, Sale Proceeds | $ 1,682,000 | $ 2,485,000 | |
Trading Securities, Realized Gain (Loss) | (156,000) | 690,000 | |
Trading Securities, OTTI (Recovery) Charges | $ 0 | 0 | |
Trading Securities, Number of Securities on Nonaccrual Status | security | 0 | 0 | |
Trading Securities, Unrealized Holding Gain | $ 112,000 | ||
Available-for-sale Securities [Abstract] | |||
Available-for-sale Securities, Number of Securities in Unrealized Loss Position | security | 91 | 242 | |
Available-for-sale Securities, Sale Proceeds | $ 233,300,000 | 40,300,000 | |
Available-for-sale Securities, Gross Realized Gain (Loss) | 374,000 | 126,000 | |
Available-for-sale Securities, OTTI Charges | $ 0 | $ 0 | |
Available-for-sale Securities, Number of Securities in Nonaccrual Status | security | 0 | 0 | |
Held-to-maturity Securities [Abstract] | |||
Held-to-maturity Securities, Number of Securities in Unrealized Loss Position | security | 6 | 32 | |
Held-to-maturity Securities, Number of Securities Sold | security | 0 | 0 | |
Held-to-maturity Securities, Sale Proceeds | $ 0 | ||
Held-to-maturity Securities, OTTI Charges | $ 0 | $ 0 | |
Held-to-maturity Securities, Number of Securities in Nonaccrual Status | security | 0 | 0 |
LOANS RECEIVABLE AND THE ALLO45
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Loans by Type) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 7,398,637 | $ 7,314,504 | $ 4,372,594 | |||
Allowance for loan losses | 84,220 | $ 81,318 | 78,008 | 77,320 | $ 77,329 | $ 75,907 |
Net loans | $ 7,314,417 | $ 7,236,496 | ||||
Percent of total loans | 100.00% | 100.00% | ||||
Unearned loan fees in excess of unamortized costs | $ 5,600 | $ (5,500) | ||||
Discount on acquired loans, net | 34,900 | 43,700 | ||||
Commerical real estate - owner-occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,340,577 | $ 1,327,807 | ||||
Percent of total loans | 18.10% | 18.20% | ||||
Commerical real estate - investment properties [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,918,639 | $ 1,765,353 | ||||
Percent of total loans | 25.90% | 24.10% | ||||
Multifamily real estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 266,883 | $ 472,976 | 198,874 | |||
Allowance for loan losses | $ 1,436 | 1,515 | $ 4,195 | 4,363 | 4,273 | 4,562 |
Percent of total loans | 3.60% | 6.50% | ||||
Commercial construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 135,487 | $ 72,103 | ||||
Percent of total loans | 1.80% | 1.00% | ||||
Multifamily construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 105,669 | $ 63,846 | ||||
Percent of total loans | 1.40% | 0.90% | ||||
One- to four-family construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 363,586 | $ 278,469 | ||||
Percent of total loans | 4.90% | 3.80% | ||||
Land and land development - residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 162,029 | $ 126,773 | ||||
Percent of total loans | 2.20% | 1.70% | ||||
Land and land development - commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 30,556 | $ 33,179 | ||||
Percent of total loans | 0.40% | 0.50% | ||||
Commercial business [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,187,848 | $ 1,207,944 | 812,070 | |||
Allowance for loan losses | $ 16,507 | 17,758 | $ 13,856 | 12,765 | 13,184 | 12,043 |
Percent of total loans | 16.10% | 16.50% | ||||
Agricultural business, including secured by farmland [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 383,275 | $ 376,531 | 242,556 | |||
Allowance for loan losses | $ 2,833 | 2,891 | $ 3,645 | 2,533 | 2,679 | 2,821 |
Percent of total loans | 5.20% | 5.10% | ||||
One- to four-family residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 846,899 | $ 952,633 | 536,325 | |||
Allowance for loan losses | $ 2,190 | $ 2,204 | $ 4,732 | $ 7,937 | $ 8,542 | $ 8,447 |
Percent of total loans | 11.50% | 13.00% | ||||
Consumer secured by one- to four-family [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 497,643 | $ 478,420 | ||||
Percent of total loans | 6.70% | 6.50% | ||||
Consumer - other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 159,546 | $ 158,470 | ||||
Percent of total loans | 2.20% | 2.20% |
LOANS RECEIVABLE AND THE ALLO46
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Purchased Credit-Impaired Loans, Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Receivables [Abstract] | |||||
Outstanding contractual unpaid balance of purchased credit-impaired loans | $ 57,300 | $ 57,300 | $ 83,400 | ||
Carrying balance of purchased credit-impaired loans | 38,674 | $ 5,409 | 38,674 | $ 5,409 | 58,600 |
Accretable Yield Movement Schedule [Roll Forward] | |||||
Balance, beginning of period | 11,035 | 2,149 | 10,375 | 0 | |
Additions | 0 | 0 | 0 | 2,239 | |
Accretion to interest income | (1,811) | (68) | (6,349) | (158) | |
Disposals | (899) | 0 | (1,018) | 0 | |
Reclassifications from non-accretable difference | 1,120 | 0 | 6,437 | 0 | |
Balance, end of period | 9,445 | $ 2,081 | 9,445 | $ 2,081 | |
Non-accretable difference | $ 19,200 | $ 19,200 | $ 29,500 |
LOANS RECEIVABLE AND THE ALLO47
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Impaired Loans With and Without Specific Reserves) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | $ 47,763 | $ 47,763 | $ 41,295 | |||
Recorded Investment, Without Allowance | [1] | 18,276 | 18,276 | 8,637 | ||
Recorded Investment, With Allowance | [2] | 26,671 | 26,671 | 28,360 | ||
Related Allowance | 2,147 | 2,147 | 2,307 | |||
Average Recorded Investment | 49,891 | $ 39,534 | 51,065 | $ 39,786 | ||
Interest Income Recognized | 288 | 265 | 816 | 946 | ||
Commerical real estate - owner-occupied [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 1,589 | 1,589 | 1,465 | |||
Recorded Investment, Without Allowance | [1] | 0 | 0 | 0 | ||
Recorded Investment, With Allowance | [2] | 1,541 | 1,541 | 1,416 | ||
Related Allowance | 105 | 105 | 70 | |||
Average Recorded Investment | 2,544 | 1,584 | 2,673 | 1,674 | ||
Interest Income Recognized | 3 | 3 | 9 | 8 | ||
Commerical real estate - investment properties [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 17,537 | 17,537 | 8,740 | |||
Recorded Investment, Without Allowance | [1] | 9,691 | 9,691 | 2,503 | ||
Recorded Investment, With Allowance | [2] | 7,431 | 7,431 | 5,846 | ||
Related Allowance | 739 | 739 | 602 | |||
Average Recorded Investment | 19,046 | 8,399 | 19,775 | 7,890 | ||
Interest Income Recognized | 74 | 76 | 224 | 228 | ||
Multifamily real estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 541 | 541 | 359 | |||
Recorded Investment, Without Allowance | [1] | 0 | 0 | 0 | ||
Recorded Investment, With Allowance | [2] | 529 | 529 | 357 | ||
Related Allowance | 69 | 69 | 71 | |||
Average Recorded Investment | 529 | 362 | 518 | 364 | ||
Interest Income Recognized | 27 | 3 | 36 | 14 | ||
Commercial construction [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 1,141 | |||||
Recorded Investment, Without Allowance | [1] | 1,069 | ||||
Recorded Investment, With Allowance | [2] | 0 | ||||
Related Allowance | 0 | |||||
One- to four-family construction [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 1,176 | 1,176 | 1,741 | |||
Recorded Investment, Without Allowance | [1] | 0 | 0 | 0 | ||
Recorded Investment, With Allowance | [2] | 1,176 | 1,176 | 1,741 | ||
Related Allowance | 157 | 157 | 161 | |||
Average Recorded Investment | 1,176 | 2,530 | 1,151 | 2,385 | ||
Interest Income Recognized | 3 | 29 | 56 | 87 | ||
Land and land development - residential [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 3,119 | 3,119 | 3,540 | |||
Recorded Investment, Without Allowance | [1] | 750 | 750 | 750 | ||
Recorded Investment, With Allowance | [2] | 1,213 | 1,213 | 1,634 | ||
Related Allowance | 236 | 236 | 444 | |||
Average Recorded Investment | 1,964 | 2,400 | 1,971 | 2,412 | ||
Interest Income Recognized | 20 | 9 | 63 | 40 | ||
Land and land development - commercial [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 1,608 | 1,608 | 1,628 | |||
Recorded Investment, Without Allowance | [1] | 997 | 997 | 1,027 | ||
Recorded Investment, With Allowance | [2] | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | |||
Average Recorded Investment | 997 | 1,783 | 1,005 | 1,861 | ||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||
Commercial business [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 3,398 | 3,398 | 2,266 | |||
Recorded Investment, Without Allowance | [1] | 1,057 | 1,057 | 538 | ||
Recorded Investment, With Allowance | [2] | 2,228 | 2,228 | 1,184 | ||
Related Allowance | 346 | 346 | 150 | |||
Average Recorded Investment | 4,283 | 1,813 | 4,470 | 1,699 | ||
Interest Income Recognized | 16 | 8 | 28 | 27 | ||
Agricultural business, including secured by farmland [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 4,452 | 4,452 | 1,309 | |||
Recorded Investment, Without Allowance | [1] | 3,896 | 3,896 | 544 | ||
Recorded Investment, With Allowance | [2] | 476 | 476 | 697 | ||
Related Allowance | 30 | 30 | 43 | |||
Average Recorded Investment | 4,973 | 977 | 4,824 | 905 | ||
Interest Income Recognized | 6 | 10 | 19 | 19 | ||
One- to four-family residential [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 12,262 | 12,262 | 17,897 | |||
Recorded Investment, Without Allowance | [1] | 1,878 | 1,878 | 2,206 | ||
Recorded Investment, With Allowance | [2] | 10,045 | 10,045 | 14,418 | ||
Related Allowance | 451 | 451 | 736 | |||
Average Recorded Investment | 11,973 | 18,558 | 12,193 | 19,349 | ||
Interest Income Recognized | 131 | 124 | 358 | 503 | ||
Consumer secured by one- to four-family [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 1,591 | 1,591 | 776 | |||
Recorded Investment, Without Allowance | [1] | 0 | 0 | 0 | ||
Recorded Investment, With Allowance | [2] | 1,547 | 1,547 | 716 | ||
Related Allowance | 11 | 11 | 23 | |||
Average Recorded Investment | 1,894 | 814 | 1,913 | 894 | ||
Interest Income Recognized | 5 | 1 | 13 | 8 | ||
Consumer - other [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Principal Balance | 490 | 490 | 433 | |||
Recorded Investment, Without Allowance | [1] | 7 | 7 | 0 | ||
Recorded Investment, With Allowance | [2] | 485 | 485 | 351 | ||
Related Allowance | 3 | 3 | $ 7 | |||
Average Recorded Investment | 512 | 314 | 572 | 353 | ||
Interest Income Recognized | $ 3 | $ 2 | $ 10 | $ 12 | ||
[1] | Loans without an allowance reserve have been individually evaluated for impairment and that evaluation concluded that no reserve was needed. | |||||
[2] | Includes general reserves for loans evaluated in pools of homogeneous loans and loans with a specific allowance reserve. Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value. |
LOANS RECEIVABLE AND THE ALLO48
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | $ 17,649 | $ 21,777 |
TDRs on Nonaccrual Status | 1,154 | 2,319 |
Total TDRs | 18,803 | 24,096 |
Commitments to advance funds related to TDRs, maximum additional amounts | 133 | 237 |
Commerical real estate - owner-occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 181 | 181 |
TDRs on Nonaccrual Status | 99 | 104 |
Total TDRs | 280 | 285 |
Commerical real estate - investment properties [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 5,706 | 5,834 |
TDRs on Nonaccrual Status | 0 | 13 |
Total TDRs | 5,706 | 5,847 |
Multifamily real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 351 | 357 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | 351 | 357 |
One- to four-family construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 1,176 | 1,741 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | 1,176 | 1,741 |
Land and land development - residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 1,213 | 1,151 |
TDRs on Nonaccrual Status | 0 | 483 |
Total TDRs | 1,213 | 1,634 |
Commercial business [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 434 | 624 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | 434 | 624 |
Agricultural business, including secured by farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 616 | 545 |
TDRs on Nonaccrual Status | 87 | 277 |
Total TDRs | 703 | 822 |
One- to four-family residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 7,657 | 11,025 |
TDRs on Nonaccrual Status | 960 | 1,428 |
Total TDRs | 8,617 | 12,453 |
Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 144 | 147 |
TDRs on Nonaccrual Status | 8 | 14 |
Total TDRs | 152 | 161 |
Consumer - other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 171 | 172 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | $ 171 | $ 172 |
LOANS RECEIVABLE AND THE ALLO49
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Newly Restructured Loans) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016contract | Sep. 30, 2015USD ($)contract | Sep. 30, 2015USD ($)contract | |||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 0 | 0 | 7 | |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 2,446 | ||
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 2,446 | ||
Land and land development - residential [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 0 | 2 | ||
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 1,383 | ||
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 1,383 | ||
One- to four-family residential [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 0 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | [1],[2] | $ 607 | ||
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 607 | ||
Agricultural business, including secured by farmland [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 0 | 2 | ||
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 456 | ||
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 456 | ||
[1] | Since these loans were already considered classified and/or on nonaccrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses. | ||||
[2] | The majority of these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. |
LOANS RECEIVABLE AND THE ALLO50
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring Which Incurred Payment Default) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Which Incurred a Payment Default | $ 0 | $ 0 |
LOANS RECEIVABLE AND THE ALLO51
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Risk-Rated and Non-Risk Rated Loans by Grade and Other Characteristic) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | $ 7,398,637 | $ 7,314,504 | $ 4,372,594 | |
Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 3,259,216 | 3,093,160 | 1,697,564 | |
Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 266,883 | 472,976 | 198,874 | |
Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 797,327 | 574,370 | 493,800 | |
Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 1,187,848 | 1,207,944 | 812,070 | |
Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 383,275 | 376,531 | 242,556 | |
One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 846,899 | 952,633 | 536,325 | |
Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 657,189 | 636,890 | $ 391,405 | |
Pass (Risk Ratings 1-5) [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 7,240,970 | 7,148,698 | |
Pass (Risk Ratings 1-5) [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 3,184,915 | 3,022,281 | |
Pass (Risk Ratings 1-5) [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 264,899 | 468,467 | |
Pass (Risk Ratings 1-5) [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 783,363 | 558,425 | |
Pass (Risk Ratings 1-5) [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 1,140,359 | 1,167,933 | |
Pass (Risk Ratings 1-5) [Member] | Small Credit-Scored Business Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 202,200 | 150,000 | ||
Pass (Risk Ratings 1-5) [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 372,727 | 354,760 | |
Pass (Risk Ratings 1-5) [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 840,609 | 943,098 | |
Pass (Risk Ratings 1-5) [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [1] | 654,098 | 633,734 | |
Special mention [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 63,028 | 77,632 | ||
Special mention [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 35,144 | 30,928 | ||
Special mention [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 582 | 138 | ||
Special mention [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 2,966 | 2,386 | ||
Special mention [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 20,529 | 25,286 | ||
Special mention [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 2,648 | 17,526 | ||
Special mention [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 1,026 | 1,346 | ||
Special mention [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 133 | 22 | ||
Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 94,632 | 88,164 | ||
Substandard [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 39,157 | 39,951 | ||
Substandard [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 1,402 | 4,371 | ||
Substandard [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 10,998 | 13,559 | ||
Substandard [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 26,960 | 14,725 | ||
Substandard [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 7,900 | 4,245 | ||
Substandard [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 5,264 | 8,189 | ||
Substandard [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 2,951 | 3,124 | ||
Doubtful [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 7 | 10 | ||
Doubtful [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Doubtful [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Doubtful [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Doubtful [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Doubtful [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Doubtful [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Doubtful [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 7 | 10 | ||
Loss [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Loss [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Loss [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Loss [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Loss [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Loss [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Loss [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Loss [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Performing loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 7,332,667 | 7,240,682 | ||
Performing loans [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 3,217,896 | 3,048,424 | ||
Performing loans [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 266,448 | 470,982 | ||
Performing loans [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 791,427 | 566,460 | ||
Performing loans [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 1,180,819 | 1,198,475 | ||
Performing loans [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 378,713 | 374,305 | ||
Performing loans [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 842,332 | 945,968 | ||
Performing loans [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 655,032 | 636,068 | ||
Nonperforming loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 27,296 | 15,222 | |
Nonperforming loans [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 12,776 | 3,751 | |
Nonperforming loans [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 177 | 0 | |
Nonperforming loans [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 1,747 | 2,260 | |
Nonperforming loans [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 2,765 | 2,167 | |
Nonperforming loans [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 3,755 | 697 | |
Nonperforming loans [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 4,266 | 5,599 | |
Nonperforming loans [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | [2] | 1,810 | 748 | |
Purchased credit-impaired loans [Member] | Performing loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 38,674 | 58,600 | ||
Purchased credit-impaired loans [Member] | Performing loans [Member] | Commercial real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 28,544 | 40,985 | ||
Purchased credit-impaired loans [Member] | Performing loans [Member] | Multifamily real estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 258 | 1,994 | ||
Purchased credit-impaired loans [Member] | Performing loans [Member] | Construction and Land [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 4,153 | 5,650 | ||
Purchased credit-impaired loans [Member] | Performing loans [Member] | Commercial business [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 4,264 | 7,302 | ||
Purchased credit-impaired loans [Member] | Performing loans [Member] | Agricultural Business/Farmland [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 807 | 1,529 | ||
Purchased credit-impaired loans [Member] | Performing loans [Member] | One- to four-family [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | 301 | 1,066 | ||
Purchased credit-impaired loans [Member] | Performing loans [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans receivable | $ 347 | $ 74 | ||
[1] | The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, as of September 30, 2016 and December 31, 2015, in the commercial business category, $202.2 million and $150.0 million, respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated. | |||
[2] | Non-performing loans include non-accrual loans and loans past due greater than 90 days and on accrual status. |
LOANS RECEIVABLE AND THE ALLO52
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Age Analysis of Company's Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 36,083 | $ 24,733 | |
Purchased Credit-Impaired | 38,674 | 58,600 | $ 5,409 |
Current | 7,323,880 | 7,231,171 | |
Total loans | 7,398,637 | 7,314,504 | 4,372,594 |
Loans 90 days or more past due and still accruing | 1,424 | 952 | |
Nonaccrual loans | 25,872 | 14,270 | |
Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,810 | 5,005 | |
Purchased Credit-Impaired | 14,921 | 24,261 | |
Current | 1,321,846 | 1,298,541 | |
Total loans | 1,340,577 | 1,327,807 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 1,360 | 1,235 | |
Commerical real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11,645 | 4,398 | |
Purchased Credit-Impaired | 13,623 | 16,724 | |
Current | 1,893,371 | 1,744,231 | |
Total loans | 1,918,639 | 1,765,353 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 11,416 | 2,516 | |
Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 246 | 4 | |
Purchased Credit-Impaired | 258 | 1,994 | 441 |
Current | 266,379 | 470,978 | |
Total loans | 266,883 | 472,976 | 198,874 |
Loans 90 days or more past due and still accruing | 147 | 0 | |
Nonaccrual loans | 30 | 0 | |
Commercial construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 135,487 | 72,103 | |
Total loans | 135,487 | 72,103 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 0 | |
Multifamily construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 784 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 105,669 | 63,062 | |
Total loans | 105,669 | 63,846 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 0 | |
One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 752 | 2,686 | |
Purchased Credit-Impaired | 881 | 905 | |
Current | 361,953 | 274,878 | |
Total loans | 363,586 | 278,469 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 1,233 | |
Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 750 | 747 | |
Purchased Credit-Impaired | 0 | 77 | |
Current | 161,279 | 125,949 | |
Total loans | 162,029 | 126,773 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 750 | 1,027 | |
Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 997 | 96 | |
Purchased Credit-Impaired | 3,272 | 4,668 | |
Current | 26,287 | 28,415 | |
Total loans | 30,556 | 33,179 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 997 | 0 | |
Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,383 | 3,042 | |
Purchased Credit-Impaired | 4,264 | 7,302 | 0 |
Current | 1,180,201 | 1,197,600 | |
Total loans | 1,187,848 | 1,207,944 | 812,070 |
Loans 90 days or more past due and still accruing | 0 | 8 | |
Nonaccrual loans | 2,765 | 2,159 | |
Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 7,071 | 1,330 | |
Purchased Credit-Impaired | 807 | 1,529 | 0 |
Current | 375,397 | 373,672 | |
Total loans | 383,275 | 376,531 | 242,556 |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 3,755 | 697 | |
One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,819 | 5,304 | |
Purchased Credit-Impaired | 301 | 1,066 | 0 |
Current | 842,779 | 946,263 | |
Total loans | 846,899 | 952,633 | $ 536,325 |
Loans 90 days or more past due and still accruing | 852 | 899 | |
Nonaccrual loans | 3,414 | 4,700 | |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,552 | 563 | |
Purchased Credit-Impaired | 80 | 40 | |
Current | 495,011 | 477,817 | |
Total loans | 497,643 | 478,420 | |
Loans 90 days or more past due and still accruing | 253 | 4 | |
Nonaccrual loans | 1,150 | 565 | |
Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,058 | 774 | |
Purchased Credit-Impaired | 267 | 34 | |
Current | 158,221 | 157,662 | |
Total loans | 159,546 | 158,470 | |
Loans 90 days or more past due and still accruing | 172 | 41 | |
Nonaccrual loans | 235 | 138 | |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 7,986 | 12,725 | |
30 to 59 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 638 | 3,981 | |
30 to 59 Days Past Due [Member] | Commerical real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 504 | 1,763 | |
30 to 59 Days Past Due [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 99 | 4 | |
30 to 59 Days Past Due [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
30 to 59 Days Past Due [Member] | Multifamily construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 771 | |
30 to 59 Days Past Due [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 300 | 2,466 | |
30 to 59 Days Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
30 to 59 Days Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
30 to 59 Days Past Due [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 419 | 1,844 | |
30 to 59 Days Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,864 | 323 | |
30 to 59 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 488 | 620 | |
30 to 59 Days Past Due [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,158 | 465 | |
30 to 59 Days Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 516 | 488 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,140 | 2,591 | |
60 to 89 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,681 | 139 | |
60 to 89 Days Past Due [Member] | Commerical real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 229 | 132 | |
60 to 89 Days Past Due [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60 to 89 Days Past Due [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60 to 89 Days Past Due [Member] | Multifamily construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 13 | |
60 to 89 Days Past Due [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 452 | 220 | |
60 to 89 Days Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60 to 89 Days Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 96 | |
60 to 89 Days Past Due [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 333 | 174 | |
60 to 89 Days Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 729 | |
60 to 89 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 648 | 873 | |
60 to 89 Days Past Due [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 578 | 60 | |
60 to 89 Days Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 219 | 155 | |
90 Days or More Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 22,957 | 9,417 | |
90 Days or More Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 491 | 885 | |
90 Days or More Past Due [Member] | Commerical real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10,912 | 2,503 | |
90 Days or More Past Due [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 147 | 0 | |
90 Days or More Past Due [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | Multifamily construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 750 | 747 | |
90 Days or More Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 997 | 0 | |
90 Days or More Past Due [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,631 | 1,024 | |
90 Days or More Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,207 | 278 | |
90 Days or More Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,683 | 3,811 | |
90 Days or More Past Due [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 816 | 38 | |
90 Days or More Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 323 | $ 131 |
LOANS RECEIVABLE AND THE ALLO53
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | $ 81,318 | $ 77,329 | $ 78,008 | $ 75,907 | |||
Provision for loan losses | 2,000 | 0 | 4,000 | 0 | |||
Recoveries | 1,557 | 1,064 | 4,761 | 4,913 | |||
Charge-offs | (655) | (1,073) | (2,549) | (3,500) | |||
Allowance for loan losses, Ending balance | 84,220 | 77,320 | 84,220 | 77,320 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | $ 1,809 | $ 2,015 | |||||
Allowance collectively evaluated for impairment | 82,378 | 75,305 | |||||
Allowance for purchased credit-impaired loans | 33 | 0 | |||||
Total allowance for loan losses | 81,318 | 77,329 | 78,008 | 75,907 | 84,220 | $ 78,008 | 77,320 |
Loans individually evaluated for impairment | 34,487 | 28,477 | |||||
Loans collectively evaluated for impairment | 7,325,476 | 4,338,708 | |||||
Purchased Credit-Impaired | 38,674 | 58,600 | 5,409 | ||||
Total loans | 7,398,637 | 7,314,504 | 4,372,594 | ||||
Commercial real estate [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 20,149 | 18,948 | 20,716 | 18,784 | |||
Provision for loan losses | (337) | 317 | (788) | 333 | |||
Recoveries | 34 | 375 | 98 | 587 | |||
Charge-offs | 0 | 0 | (180) | (64) | |||
Allowance for loan losses, Ending balance | 19,846 | 19,640 | 19,846 | 19,640 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 832 | 612 | |||||
Allowance collectively evaluated for impairment | 19,014 | 19,028 | |||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||
Total allowance for loan losses | 20,149 | 18,948 | 20,716 | 18,784 | 19,846 | 20,716 | 19,640 |
Loans individually evaluated for impairment | 16,630 | 6,182 | |||||
Loans collectively evaluated for impairment | 3,214,042 | 1,690,251 | |||||
Purchased Credit-Impaired | 28,544 | 1,131 | |||||
Total loans | 3,259,216 | 3,093,160 | 1,697,564 | ||||
Multifamily real estate [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 1,515 | 4,273 | 4,195 | 4,562 | |||
Provision for loan losses | (79) | 90 | (2,759) | (312) | |||
Recoveries | 0 | 0 | 0 | 113 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Allowance for loan losses, Ending balance | 1,436 | 4,363 | 1,436 | 4,363 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 65 | 73 | |||||
Allowance collectively evaluated for impairment | 1,371 | 4,290 | |||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||
Total allowance for loan losses | 1,515 | 4,273 | 4,195 | 4,562 | 1,436 | 4,195 | 4,363 |
Loans individually evaluated for impairment | 351 | 361 | |||||
Loans collectively evaluated for impairment | 266,274 | 198,072 | |||||
Purchased Credit-Impaired | 258 | 1,994 | 441 | ||||
Total loans | 266,883 | 472,976 | 198,874 | ||||
Construction and Land [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 31,861 | 25,415 | 27,131 | 23,545 | |||
Provision for loan losses | 1,269 | 1,929 | 5,404 | 2,847 | |||
Recoveries | 673 | 282 | 1,268 | 1,234 | |||
Charge-offs | 0 | (352) | 0 | (352) | |||
Allowance for loan losses, Ending balance | 33,803 | 27,274 | 33,803 | 27,274 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 396 | 473 | |||||
Allowance collectively evaluated for impairment | 33,374 | 26,801 | |||||
Allowance for purchased credit-impaired loans | 33 | 0 | |||||
Total allowance for loan losses | 31,861 | 25,415 | 27,131 | 23,545 | 33,803 | 27,131 | 27,274 |
Loans individually evaluated for impairment | 4,137 | 6,034 | |||||
Loans collectively evaluated for impairment | 789,037 | 484,241 | |||||
Purchased Credit-Impaired | 4,153 | 3,525 | |||||
Total loans | 797,327 | 574,370 | 493,800 | ||||
Commercial business [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 17,758 | 13,184 | 13,856 | 12,043 | |||
Provision for loan losses | (1,351) | (235) | 1,519 | 664 | |||
Recoveries | 433 | 128 | 1,775 | 803 | |||
Charge-offs | (333) | (312) | (643) | (745) | |||
Allowance for loan losses, Ending balance | 16,507 | 12,765 | 16,507 | 12,765 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 54 | 74 | |||||
Allowance collectively evaluated for impairment | 16,453 | 12,691 | |||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||
Total allowance for loan losses | 17,758 | 13,184 | 13,856 | 12,043 | 16,507 | 13,856 | 12,765 |
Loans individually evaluated for impairment | 2,026 | 644 | |||||
Loans collectively evaluated for impairment | 1,181,558 | 811,426 | |||||
Purchased Credit-Impaired | 4,264 | 7,302 | 0 | ||||
Total loans | 1,187,848 | 1,207,944 | 812,070 | ||||
Agricultural Business/Farmland [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 2,891 | 2,679 | 3,645 | 2,821 | |||
Provision for loan losses | 80 | (292) | (284) | (890) | |||
Recoveries | (138) | 146 | 39 | 1,666 | |||
Charge-offs | 0 | 0 | (567) | (1,064) | |||
Allowance for loan losses, Ending balance | 2,833 | 2,533 | 2,833 | 2,533 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 0 | 17 | |||||
Allowance collectively evaluated for impairment | 2,833 | 2,516 | |||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||
Total allowance for loan losses | 2,891 | 2,679 | 3,645 | 2,821 | 2,833 | 3,645 | 2,533 |
Loans individually evaluated for impairment | 2,758 | 776 | |||||
Loans collectively evaluated for impairment | 379,710 | 241,780 | |||||
Purchased Credit-Impaired | 807 | 1,529 | 0 | ||||
Total loans | 383,275 | 376,531 | 242,556 | ||||
One- to four-family [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 2,204 | 8,542 | 4,732 | 8,447 | |||
Provision for loan losses | (404) | (635) | (3,468) | (524) | |||
Recoveries | 482 | 42 | 1,052 | 141 | |||
Charge-offs | (92) | (12) | (126) | (127) | |||
Allowance for loan losses, Ending balance | 2,190 | 7,937 | 2,190 | 7,937 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 456 | 706 | |||||
Allowance collectively evaluated for impairment | 1,734 | 7,231 | |||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||
Total allowance for loan losses | 2,204 | 8,542 | 4,732 | 8,447 | 2,190 | 4,732 | 7,937 |
Loans individually evaluated for impairment | 8,270 | 13,952 | |||||
Loans collectively evaluated for impairment | 838,328 | 522,373 | |||||
Purchased Credit-Impaired | 301 | 1,066 | 0 | ||||
Total loans | 846,899 | 952,633 | 536,325 | ||||
Consumer [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 3,743 | 780 | 902 | 483 | |||
Provision for loan losses | 348 | 330 | 3,536 | 1,100 | |||
Recoveries | 73 | 91 | 529 | 369 | |||
Charge-offs | (230) | (397) | (1,033) | (1,148) | |||
Allowance for loan losses, Ending balance | 3,934 | 804 | 3,934 | 804 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 6 | 60 | |||||
Allowance collectively evaluated for impairment | 3,928 | 744 | |||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||
Total allowance for loan losses | 3,743 | 780 | 902 | 483 | 3,934 | 902 | 804 |
Loans individually evaluated for impairment | 315 | 528 | |||||
Loans collectively evaluated for impairment | 656,527 | 390,565 | |||||
Purchased Credit-Impaired | 347 | 312 | |||||
Total loans | 657,189 | 636,890 | 391,405 | ||||
Unallocated Financing Receivables [Member] | |||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for loan losses, Beginning balance | 1,197 | 3,508 | 2,831 | 5,222 | |||
Provision for loan losses | 2,474 | (1,504) | 840 | (3,218) | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Allowance for loan losses, Ending balance | 3,671 | 2,004 | 3,671 | 2,004 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||
Allowance collectively evaluated for impairment | 3,671 | 2,004 | |||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||
Total allowance for loan losses | $ 1,197 | $ 3,508 | $ 2,831 | $ 5,222 | 3,671 | $ 2,831 | 2,004 |
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 0 | 0 | |||||
Purchased Credit-Impaired | 0 | 0 | |||||
Total loans | $ 0 | $ 0 |
REAL ESTATE OWNED, NET (REO Rol
REAL ESTATE OWNED, NET (REO Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Real Estate Owned [Roll Forward] | ||||
Balance, beginning of the period | $ 6,147 | $ 6,105 | $ 11,627 | $ 3,352 |
Additions from loan foreclosures | 156 | 1,085 | 534 | 3,226 |
Additions from acquisitions | 0 | 0 | 400 | 2,525 |
Additions from capitalized costs | 0 | 0 | 0 | 298 |
Proceeds from dispositions of REO | (1,699) | (906) | (8,021) | (3,155) |
Gain on sale of REO | 281 | 113 | 981 | 333 |
Valuation adjustments in the period | (168) | (34) | (804) | (216) |
Balance, end of the period | $ 4,717 | $ 6,363 | $ 4,717 | $ 6,363 |
REAL ESTATE OWNED, NET REAL EST
REAL ESTATE OWNED, NET REAL ESTATE OWNED, NET (Textual) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Real Estate Owned [Line Items] | ||||||
Real Estate Owned | $ 4,717 | $ 6,147 | $ 11,627 | $ 6,363 | $ 6,105 | $ 3,352 |
Mortgage Loans in Process of Foreclosure, Amount | 1,100 | |||||
One- to four-family residential [Member] | ||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned | $ 593 |
GOODWILL, OTHER INTANGIBLE AS56
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Goodwill, beginning of period | $ 247,738 | $ 0 | |
Goodwill and other intangibles, net, beginning of period | 285,210 | 2,831 | |
Goodwill, acquired during period | 247,738 | ||
Acquired Intangible Assets (Including Goodwill) | 285,909 | ||
Amortization | (5,538) | (3,230) | |
Goodwill, Purchase Accounting Adjustments | (3,155) | ||
Goodwill, Other Changes | 0 | ||
Goodwill, end of period | 244,583 | 247,738 | |
Goodwill and other intangibles, net, end of period | 276,517 | 285,210 | |
Core Deposit Intangibles [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
CDI Balance, beginning of period | 36,762 | 2,831 | |
Additions through acquisitions | 37,395 | ||
Amortization | (5,339) | (3,164) | |
Finite-Lived Intangible Assets, Other Changes | [1] | (300) | |
CDI Balance, end of period | 31,423 | 36,762 | |
Leasehold Improvements [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
CDI Balance, beginning of period | 710 | 0 | |
Additions through acquisitions | 776 | ||
Amortization | (199) | (66) | |
Finite-Lived Intangible Assets, Other Changes | 0 | ||
CDI Balance, end of period | $ 511 | $ 710 | |
[1] | (1) Acquired CDI from AmericanWest was adjusted for a branch that was subsequently sold. |
GOODWILL, OTHER INTANGIBLE AS57
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Estimated Annual Amortization Expense) (Details) - Core Deposit Intangibles [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Remainder of 2015 | $ 1,722 | ||
2,016 | 6,332 | ||
2,017 | 5,609 | ||
2,018 | 4,889 | ||
2,019 | 4,169 | ||
Thereafter | 8,702 | ||
CDI, net | $ 31,423 | $ 36,762 | $ 2,831 |
GOODWILL, OTHER INTANGIBLE AS58
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | |||||||
Additions—acquired through business combinations | $ 0 | $ 0 | $ 0 | $ 2,172 | |||
Valuation adjustments in the period | 0 | 0 | |||||
Mortgage Servicing Rights [Member] | |||||||
Morgage Servicing Rights at Amortized Value [Line Items] | |||||||
Loans Serviced For Others | $ 2,010,000 | $ 1,860,000 | |||||
Custodial Accounts | $ 13,700 | $ 8,700 | |||||
Servicing Asset at Amortized Value, Balance [Roll Forward] | |||||||
Balance, net of valuation allowance, beginning of the period | 14,276 | 12,329 | 13,354 | 9,030 | |||
Additions—amounts capitalized | 1,652 | 1,360 | 4,371 | 4,052 | |||
Amortization | [1] | (1,102) | (810) | (2,899) | (2,375) | ||
Balance, net of valuation allowance, end of the period | [2] | 14,826 | $ 12,879 | 14,826 | $ 12,879 | ||
Valuation allowance, end of period | [2] | $ 0 | $ 0 | ||||
[1] | Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income and any unamortized balance is fully amortized if the loan repays in full. | ||||||
[2] | There was no valuation allowance as of September 30, 2016 and 2015. |
DEPOSITS (Deposit Liabilities)
DEPOSITS (Deposit Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits: | ||
Non-interest-bearing accounts | $ 3,190,293 | $ 2,619,618 |
Interest-bearing checking | 853,594 | 1,159,846 |
Regular savings accounts | 1,387,123 | 1,284,642 |
Money market accounts | 1,557,951 | 1,637,092 |
Total interest-bearing transaction and saving accounts | 3,798,668 | 4,081,580 |
Certificates of deposit less than or equal to $250,000 | 956,968 | 1,168,495 |
Certificates of deposit greater than $250,000 | 166,043 | 185,375 |
Total certificates of deposit | 1,123,011 | 1,353,870 |
Total deposits | 8,111,972 | 8,055,068 |
Included in total deposits: | ||
Public fund transaction and savings accounts | 201,665 | 209,430 |
Public fund interest-bearing certificates | 26,734 | 31,281 |
Total public deposits | 228,399 | 240,711 |
Total brokered deposits | $ 60,290 | $ 162,936 |
DEPOSITS DEPOSITS (Maturities o
DEPOSITS DEPOSITS (Maturities of Certificates of Deposit) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Certificates which mature or reprice within one year or less | $ 834,884 | |
Certificates which mature or reprice after one year through two years | 168,280 | |
Certificates which mature or reprice after two years through three years | 58,126 | |
Certificates which mature or reprice after three years through four years | 27,890 | |
Certificates which mature or reprice after four years through five years | 30,226 | |
Certificates which mature or reprice after five years | 3,605 | |
Total certificates of deposit | $ 1,123,011 | $ 1,353,870 |
FAIR VALUE OF FINANCIAL INSTR61
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value By Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Securities—trading | $ 30,889 | $ 34,134 |
Securities—available-for-sale | 1,006,414 | 1,138,573 |
Securities—held-to-maturity | 283,303 | 226,627 |
Liabilities: | ||
FHLB advances at fair value | 62,342 | 133,381 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 245,917 | 261,917 |
Securities—trading | 30,889 | 34,134 |
Securities—available-for-sale | 1,006,414 | 1,138,573 |
Securities—held-to-maturity | 271,975 | 220,666 |
Loans receivable held for sale | 123,144 | 44,712 |
Loans receivable | 7,398,637 | 7,314,504 |
FHLB stock | 12,826 | 16,057 |
Bank-owned life insurance | 158,831 | 156,865 |
Mortgage servicing rights | 14,826 | 13,295 |
Liabilities: | ||
Demand, interest checking and money market accounts | 5,601,838 | 5,416,556 |
Regular savings | 1,387,123 | 1,284,642 |
Certificates of deposit | 1,123,011 | 1,353,870 |
FHLB advances at fair value | 62,342 | 133,381 |
Other borrowings | 108,911 | 98,325 |
Junior subordinated debentures at fair value | 94,364 | 92,480 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 245,917 | 261,917 |
Securities—trading | 30,889 | 34,134 |
Securities—available-for-sale | 1,006,414 | 1,138,573 |
Securities—held-to-maturity | 283,303 | 226,627 |
Loans receivable held for sale | 124,749 | 45,600 |
Loans receivable | 7,334,303 | 7,084,631 |
FHLB stock | 12,826 | 16,057 |
Bank-owned life insurance | 158,831 | 156,865 |
Mortgage servicing rights | 15,170 | 17,370 |
Liabilities: | ||
Demand, interest checking and money market accounts | 5,601,838 | 5,416,556 |
Regular savings | 1,387,123 | 1,284,642 |
Certificates of deposit | 1,109,322 | 1,332,825 |
FHLB advances at fair value | 62,342 | 133,381 |
Other borrowings | 108,911 | 98,325 |
Junior subordinated debentures at fair value | 94,364 | 92,480 |
Interest rate swaps [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 18,999 | 11,984 |
Liabilities: | ||
Derivatives: | 18,999 | 11,984 |
Interest rate swaps [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 18,999 | 11,984 |
Liabilities: | ||
Derivatives: | 18,999 | 11,984 |
Interest Rate Forward Sales Commitments [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 1,119 | 471 |
Liabilities: | ||
Derivatives: | 540 | 50 |
Interest Rate Forward Sales Commitments [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 1,119 | 471 |
Liabilities: | ||
Derivatives: | $ 540 | $ 50 |
FAIR VALUE OF FINANCIAL INSTR62
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | $ 30,889 | $ 34,134 |
Securities—available-for-sale | 1,006,414 | 1,138,573 |
Advances from FHLB at fair value | 62,342 | 133,381 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 30,889 | 34,134 |
Securities—available-for-sale | 1,006,414 | 1,138,573 |
Total assets | 1,057,421 | 1,185,162 |
Advances from FHLB at fair value | 62,342 | 133,381 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 94,364 | 92,480 |
Total liabilities | 176,245 | 237,895 |
Recurring [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 18,999 | 11,984 |
Derivative liabilities | 18,999 | 11,984 |
Recurring [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,119 | 471 |
Derivative liabilities | 540 | 50 |
Recurring [Member] | U.S. Government and agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 1,366 | 1,368 |
Securities—available-for-sale | 58,169 | 30,231 |
Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 336 | 341 |
Securities—available-for-sale | 145,400 | 143,319 |
Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 10,373 | 15,981 |
Recurring [Member] | TPS and TRUP CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 20,925 | 18,699 |
Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 8,173 | 13,663 |
Securities—available-for-sale | 762,654 | 918,259 |
Recurring [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 29,720 | 30,685 |
Recurring [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 89 | 63 |
Securities—available-for-sale | 98 | 98 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Total assets | 0 | 0 |
Advances from FHLB at fair value | 0 | 0 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | U.S. Government and agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | TPS and TRUP CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 9,964 | 15,435 |
Securities—available-for-sale | 1,006,414 | 1,138,573 |
Total assets | 1,036,496 | 1,166,463 |
Advances from FHLB at fair value | 62,342 | 133,381 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 0 | 0 |
Total liabilities | 81,881 | 145,415 |
Recurring [Member] | Level 2 [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 18,999 | 11,984 |
Derivative liabilities | 18,999 | 11,984 |
Recurring [Member] | Level 2 [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,119 | 471 |
Derivative liabilities | 540 | 50 |
Recurring [Member] | Level 2 [Member] | U.S. Government and agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 1,366 | 1,368 |
Securities—available-for-sale | 58,169 | 30,231 |
Recurring [Member] | Level 2 [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 336 | 341 |
Securities—available-for-sale | 145,400 | 143,319 |
Recurring [Member] | Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 10,373 | 15,981 |
Recurring [Member] | Level 2 [Member] | TPS and TRUP CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 8,173 | 13,663 |
Securities—available-for-sale | 762,654 | 918,259 |
Recurring [Member] | Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 29,720 | 30,685 |
Recurring [Member] | Level 2 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 89 | 63 |
Securities—available-for-sale | 98 | 98 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 20,925 | 18,699 |
Securities—available-for-sale | 0 | 0 |
Total assets | 20,925 | 18,699 |
Advances from FHLB at fair value | 0 | 0 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 94,364 | 92,480 |
Total liabilities | 94,364 | 92,480 |
Recurring [Member] | Level 3 [Member] | Interest rate lock commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | U.S. Government and agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | TPS and TRUP CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 20,925 | 18,699 |
Recurring [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | 0 |
Securities—available-for-sale | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR63
FAIR VALUE OF FINANCIAL INSTRUMENTS (Valuation Technique) (Details) - Weighted Average [Member] - Discounted cash flows [Member] - Level 3 [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Junior Subordinated Debt [Member] | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 5.85% | 5.61% |
TPS Securities [Member] | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 5.85% | 5.61% |
FAIR VALUE OF FINANCIAL INSTR64
FAIR VALUE OF FINANCIAL INSTRUMENTS (Unobservable Inputs Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Junior Subordinated Debt [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 93,298 | $ 84,694 | $ 92,480 | $ 78,001 |
Liabilities (gains) losses | 1,066 | 489 | 1,884 | 1,223 |
Purchases, issuances and settlements, including acquisitions | 0 | 0 | 0 | 5,959 |
Sales, maturities and paydowns, net of discount amortization | 0 | 0 | ||
Ending balance | 94,364 | 85,183 | 94,364 | 85,183 |
TPS and TRUP CDOs [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 12,571 | 18,699 | 19,119 | |
Assets gains (losses), including OTTI | (596) | 501 | 1,475 | |
Purchases, issuances and settlements, including acquisitions | 6,338 | 1,725 | 6,338 | |
Sales, maturities and paydowns, net of discount amortization | 27 | (8,592) | ||
Ending balance | 20,925 | $ 18,340 | 20,925 | $ 18,340 |
TPS Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 20,645 | |||
Assets gains (losses), including OTTI | 280 | |||
Purchases, issuances and settlements, including acquisitions | 0 | |||
Ending balance | $ 20,925 | $ 20,925 |
FAIR VALUE OF FINANCIAL INSTR65
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Nonrecurring Basis) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | $ (4,688) | $ (4,688) | $ (2,372) | ||
REO | 4,717 | 4,717 | 11,627 | ||
Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | ||
REO | 0 | 0 | 0 | ||
Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | ||
REO | 0 | 0 | 0 | ||
Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | (4,688) | (4,688) | (2,372) | ||
REO | 4,717 | 4,717 | $ 11,627 | ||
Losses resulting from nonrecurring fair value adjustments | (296) | $ (634) | (781) | $ (1,160) | |
Impaired Loans [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Losses resulting from nonrecurring fair value adjustments | (128) | (600) | (182) | (916) | |
Real Estate [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Losses resulting from nonrecurring fair value adjustments | $ (168) | $ (34) | $ (599) | $ (244) |
INCOME TAXES AND DEFERRED TAX66
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Tax credit investments | $ 4,822 | $ 4,822 | $ 5,326 | ||
Unfunded commitments—tax credit investments | 719 | 719 | $ 1,398 | ||
Tax credits and other tax benefits recognized | 284 | $ 329 | 852 | $ 958 | |
Tax credit amortization expense included in provision for income taxes | $ 168 | $ 255 | $ 504 | $ 745 |
CALCULATION OF WEIGHTED AVERA67
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 23,851 | $ 12,947 | $ 62,581 | $ 38,329 | $ 45,222 |
Basic weighted average shares outstanding | 34,045,225 | 20,755,394 | 34,050,459 | 20,417,601 | |
Plus unvested restricted stock | 79,386 | 65,983 | 54,416 | 50,008 | |
Diluted weighted shares outstanding | 34,124,611 | 20,821,377 | 34,104,875 | 20,467,609 | |
Earnings per common share | |||||
Basic | $ 0.70 | $ 0.62 | $ 1.84 | $ 1.88 | |
Diluted | $ 0.70 | $ 0.62 | $ 1.83 | $ 1.87 |
CALCULATION OF WEIGHTED AVERA68
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE - Textuals (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 5,000 |
Warrant [Member] | Common Stock [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Warrants outstanding | $ | $ 18.6 |
Warrant [Member] | Common Stock [Member] | Warrant [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Warrants outstanding, number of shares | 243,998 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 26 Months Ended | 50 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Deferred compensation | $ 39,385 | $ 39,385 | $ 40,474 | ||||
Unearned Restricted ESOP Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Expense | 1,400 | $ 831 | 4,000 | $ 2,500 | |||
Compensation Cost Not yet Recognized | $ 9,200 | $ 9,200 | |||||
Compensation Cost Not yet Recognized, Period for Recognition | 36 months | ||||||
2012 Restricted Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares Authorized | 300,000 | 300,000 | |||||
2012 Restricted Stock Plan [Member] | Unearned Restricted ESOP Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award Vesting Period | 3 years | ||||||
Award Expiration Period | 10 years | ||||||
Restricted stock granted | 299,688 | ||||||
Restricted stock grants, shares vested | 207,255 | ||||||
Restricted stock grants, shares non-vested | 92,433 | 92,433 | |||||
2014 Omnibus Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares Authorized | 900,000 | 900,000 | |||||
2014 Omnibus Incentive Plan [Member] | Unearned Restricted ESOP Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted | 244,802 | ||||||
Restricted stock grants, shares vested | 27,698 | ||||||
2014 Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted | 26,154 | ||||||
Restricted stock grants, shares vested | 18,331 |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES (Commitments Without Recorded Liability) (Details) | 9 Months Ended | ||
Sep. 30, 2016USD ($)location | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Reserve for Unfunded Loan Commitments | $ 3,600,000 | $ 3,900,000 | |
Number of Properties Subject to Non-cancelable Operating Leases | location | 109 | ||
Mortgage loan applications, day interest rate is locked | 45 days | ||
Minimum [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Mortgage loan applications, day interest rate is locked | 30 days | ||
Maximum [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Mortgage loan applications, day interest rate is locked | 60 days | ||
Commitments to extend credit [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | $ 2,209,750,000 | 2,132,996,000 | |
Standby letters of credit and financial guarantees [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 21,655,000 | 22,315,000 | |
Commitments to originate loans [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 61,444,000 | 32,908,000 | |
Risk Participation Agreement [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 7,535,000 | 7,672,000 | |
Commitments to originate loans held for sale [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 106,019,000 | 76,146,000 | |
Commitmenst to sell loans secured by one- to four residential properties [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 42,456,000 | 37,545,000 | |
Counterparty default losses on forward contracts | 0 | $ 0 | |
Commitments to sell securities related to mortgage banking activities [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 59,854,000 | $ 41,500,000 | |
Counterparty default losses on forward contracts | $ 0 | $ 0 |
DERIVATIVES AND HEDGING (Deriva
DERIVATIVES AND HEDGING (Derivatives Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | $ 18,999 | $ 11,984 | |
Liability Derivatives, Fair Value | 18,999 | 11,984 | |
Interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 18,999 | 11,984 | |
Liability Derivatives, Fair Value | 18,999 | 11,984 | |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Notional/Contract Amount | 6,452 | 6,734 | |
Liability Derivatives, Notional/Contract Amount | 6,452 | 6,734 | |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Loans Receivable [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | [1] | 868 | 938 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | [2] | $ 868 | $ 938 |
[1] | Included in Loans receivable on the Consolidated Statements of Financial Condition. | ||
[2] | Included in Other liabilities on the Consolidated Statements of Financial Condition. |
DERIVATIVES AND HEDGING (Deri72
DERIVATIVES AND HEDGING (Derivatives Not Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | $ 18,999 | $ 11,984 | |
Liability Derivatives, Fair Value | 18,999 | 11,984 | |
Interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 18,999 | 11,984 | |
Liability Derivatives, Fair Value | 18,999 | 11,984 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Notional/Contract Amount | 407,837 | 411,583 | |
Liability Derivatives, Notional/Contract Amount | 399,978 | 326,700 | |
Not Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | [1] | 19,250 | 11,517 |
Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | [2] | 18,671 | 11,096 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Notional/Contract Amount | 301,818 | 293,937 | |
Liability Derivatives, Notional/Contract Amount | 301,818 | 293,937 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | [1] | 18,131 | 11,046 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Loans Receivable [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 1,100 | 327 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | [2] | 18,131 | 11,046 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Notional/Contract Amount | 67,713 | 76,146 | |
Liability Derivatives, Notional/Contract Amount | 38,306 | 0 | |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | [1] | 894 | 428 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | [2] | 225 | 0 |
Not Designated as Hedging Instrument [Member] | Forward sales contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Notional/Contract Amount | 38,306 | 41,500 | |
Liability Derivatives, Notional/Contract Amount | 59,854 | 32,763 | |
Not Designated as Hedging Instrument [Member] | Forward sales contracts [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | [1] | 225 | 43 |
Not Designated as Hedging Instrument [Member] | Forward sales contracts [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | [2] | $ 315 | $ 50 |
[1] | Included in Other assets on the Consolidated Statements of Financial Condition, with the exception of those interest rate swaps that were not designated in hedge relationships (with a fair value of $1.1 million at September 30, 2016 and $327,000 at December 31, 2015), which are included in Loans receivable. | ||
[2] | Included in Other liabilities on the Consolidated Statements of Financial Condition. |
DERIVATIVES AND HEDGING (Gain (
DERIVATIVES AND HEDGING (Gain (Loss) On Derivatives Not Designated in Hedging Relationship) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | $ (61) | $ (223) | $ 219 | $ 266 |
Mortgage loan commitments [Member] | Mortgage banking operations [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | (376) | 442 | 516 | 475 |
Forward sales contracts [Member] | Mortgage banking operations [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | $ 315 | $ (665) | $ (297) | $ (209) |
DERIVATIVES AND HEDGING (Narrat
DERIVATIVES AND HEDGING (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative net liability position | $ 19 | $ 12 |
Collateral posted | $ 29.7 | $ 20.8 |
DERIVATIVES AND HEDGING (Deri75
DERIVATIVES AND HEDGING (Derivative Offsetting) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | $ 18,999 | $ 11,984 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | 0 | 0 |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 18,999 | 11,984 |
Derivative Assets, Netting Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Assets, Fair Value of Financial Collateral in the Statement of Financial Condiation | 0 | 0 |
Derivative Assets, Net Amount | 18,999 | 11,984 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 18,999 | 11,984 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | 0 | 0 |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 18,999 | 11,984 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (18,981) | (11,984) |
Derivative Liabilities, Net Amount | 18 | 0 |
Interest rate swaps [Member] | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | 18,999 | 11,984 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | 0 | 0 |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 18,999 | 11,984 |
Derivative Assets, Netting Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Assets, Fair Value of Financial Collateral in the Statement of Financial Condiation | 0 | 0 |
Derivative Assets, Net Amount | 18,999 | 11,984 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 18,999 | 11,984 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | 0 | 0 |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 18,999 | 11,984 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (18,981) | (11,984) |
Derivative Liabilities, Net Amount | $ 18 | $ 0 |