| LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES Loans receivable at June 30, 2017 and December 31, 2016 are summarized as follows (dollars in thousands): June 30, 2017 December 31, 2016 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,358,094 18.0 % $ 1,352,999 18.1 % Investment properties 1,975,075 26.2 1,986,336 26.7 Multifamily real estate 288,442 3.8 248,150 3.3 Commercial construction 144,092 1.9 124,068 1.7 Multifamily construction 111,562 1.5 124,126 1.7 One- to four-family construction 380,782 5.0 375,704 5.0 Land and land development: Residential 147,149 1.9 170,004 2.3 Commercial 27,917 0.4 29,184 0.4 Commercial business 1,286,204 17.0 1,207,879 16.2 Agricultural business, including secured by farmland 344,412 4.6 369,156 5.0 One- to four-family residential 800,008 10.6 813,077 10.9 Consumer: Consumer secured by one- to four-family 527,623 7.0 493,211 6.6 Consumer—other 160,203 2.1 157,254 2.1 Total loans 7,551,563 100.0 % 7,451,148 100.0 % Less allowance for loan losses (88,586 ) (85,997 ) Net loans $ 7,462,977 $ 7,365,151 Loan amounts are net of unearned loan fees in excess of unamortized costs of $3.3 million as of June 30, 2017 and $5.8 million as of December 31, 2016 . Net loans include net discounts on acquired loans of $25.8 million and $31.1 million as of June 30, 2017 and December 31, 2016 , 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 (PCI) 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 PCI loans, excluding acquisition accounting adjustments, was $39.6 million at June 30, 2017 and $48.4 million at December 31, 2016 . The carrying balance of PCI loans was $26.3 million at June 30, 2017 and $32.3 million at December 31, 2016 . The following table presents the changes in the accretable yield for PCI loans for the three and six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Balance, beginning of period $ 8,670 $ 10,717 $ 8,717 $ 10,375 Accretion to interest income (2,170 ) (2,607 ) (3,490 ) (4,538 ) Disposals (497 ) (101 ) (497 ) (119 ) Reclassifications from non-accretable difference 1,663 3,026 2,936 5,317 Balance, end of period $ 7,666 $ 11,035 $ 7,666 $ 11,035 As of June 30, 2017 and December 31, 2016 , the non-accretable difference between the contractually required payments and cash flows expected to be collected were $13.0 million and $15.7 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. PCI 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 June 30, 2017 and December 31, 2016 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): June 30, 2017 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 5,099 $ 4,670 $ 201 $ 19 Investment properties 4,827 1,597 3,228 251 Multifamily real estate 346 — 345 61 Land and land development: Residential 1,737 1,078 323 116 Commercial 1,538 928 — — Commercial business 8,305 7,114 603 59 Agricultural business/farmland 4,682 4,186 373 238 One- to four-family residential 9,005 2,982 5,956 324 Consumer: Consumer secured by one- to four-family 1,732 1,524 142 8 Consumer—other 155 78 77 4 $ 37,426 $ 24,157 $ 11,248 $ 1,080 December 31, 2016 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,786 $ 3,373 $ 203 $ 20 Investment properties 9,916 5,565 4,304 408 Multifamily real estate 508 147 349 64 One- to four-family construction 1,180 — 1,180 156 Land and land development: Residential 3,012 750 1,106 219 Commercial 1,608 998 — — Commercial business 3,753 3,074 651 69 Agricultural business/farmland 6,438 6,354 — — One- to four-family residential 11,439 3,149 8,026 479 Consumer: Consumer secured by one- to four-family 1,904 1,721 144 1 Consumer—other 391 226 166 4 $ 43,935 $ 25,357 $ 16,129 $ 1,420 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed and $8.6 million and $10.0 million of homogenous and small balance loans as of June 30, 2017 and December 31, 2016 , respectively, that are collectively evaluated for impairment for which a general reserve has been established. (2) 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 six months ended June 30, 2017 and 2016 (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 $ 2,662 $ 2 $ 1,764 $ 2 Investment properties 7,438 38 16,000 75 Multifamily real estate 395 5 386 5 One- to four-family construction 393 7 1,621 25 Land and land development: Residential 1,727 19 1,961 22 Commercial 944 — 994 — Commercial business 4,857 50 1,910 6 Agricultural business/farmland 4,339 30 5,038 8 One- to four-family residential 9,503 84 12,990 113 Consumer: Consumer secured by one- to four-family 1,591 2 1,333 3 Consumer—other 175 1 523 3 $ 34,024 $ 238 $ 44,520 $ 262 Six Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 2,789 $ 4 $ 1,719 $ 6 Investment properties 8,165 87 16,001 150 Multifamily real estate 445 9 388 9 One- to four-family construction 787 27 1,616 53 Land and land development: Residential 1,813 36 1,966 43 Commercial 961 — 1,010 — Commercial business 4,692 57 1,980 12 Agricultural business/farmland 5,310 62 4,428 13 One- to four-family residential 9,953 167 12,986 227 Consumer: Consumer secured by one- to four-family 1,666 5 1,255 8 Consumer—other 222 4 547 7 $ 36,803 $ 458 $ 43,896 $ 528 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 table presents TDRs by accrual and nonaccrual status at June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Accrual Status Nonaccrual Status Total TDRs Accrual Nonaccrual Total Commercial real estate: Owner-occupied $ 201 $ 92 $ 293 $ 203 $ 96 $ 299 Investment properties 3,228 — 3,228 4,304 — 4,304 Multifamily real estate 345 — 345 349 — 349 One- to four-family construction — — — 1,180 — 1,180 Land and land development: Residential 603 — 603 1,106 — 1,106 Commercial business 603 — 603 653 — 653 Agricultural business, including secured by farmland 3,104 79 3,183 3,125 79 3,204 One- to four-family residential 5,228 820 6,048 7,678 843 8,521 Consumer: Consumer secured by one- to four-family 142 3 145 143 6 149 Consumer—other 77 — 77 166 — 166 $ 13,531 $ 994 $ 14,525 $ 18,907 $ 1,024 $ 19,931 As of June 30, 2017 and December 31, 2016 , the Company had commitments to advance additional funds related to TDRs up to $126,000 and $127,000 , respectively. No new TDRs occurred during the six months ended June 30, 2017 or 2016. There were no TDRs which incurred a payment default within twelve months of the restructure date during the three and six -month periods ended June 30, 2017 and 2016 . 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 six months ended June 30, 2017 . 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 tables present the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,322,190 $ 2,495 $ 33,409 $ — $ — $ 1,358,094 Investment properties 1,957,466 9,375 8,234 — — 1,975,075 Multifamily real estate 287,315 — 1,127 — — 288,442 Commercial construction 144,092 — — — — 144,092 Multifamily construction 111,562 — — — — 111,562 One- to four-family construction 379,761 — 1,021 — — 380,782 Land and land development: Residential 144,607 — 2,542 — — 147,149 Commercial 23,997 — 3,920 — — 27,917 Commercial business 1,216,834 16,625 52,745 — — 1,286,204 Agricultural business, including secured by farmland 320,470 10,427 13,515 — — 344,412 One- to four-family residential 794,150 927 4,931 — — 800,008 Consumer: Consumer secured by one- to four-family 525,128 2 2,493 — — 527,623 Consumer—other 159,731 78 394 — — 160,203 Total $ 7,387,303 $ 39,929 $ 124,331 $ — $ — $ 7,551,563 December 31, 2016 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,313,142 $ 14,394 $ 25,463 $ — $ — $ 1,352,999 Investment properties 1,948,822 23,846 13,668 — — 1,986,336 Multifamily real estate 247,258 — 892 — — 248,150 Commercial construction 124,068 — — — — 124,068 Multifamily construction 124,126 — — — — 124,126 One- to four-family construction 371,636 — 4,068 — — 375,704 Land and land development: Residential 167,764 — 2,240 — — 170,004 Commercial 25,090 — 4,094 — — 29,184 Commercial business 1,148,585 35,036 24,258 — — 1,207,879 Agricultural business, including secured by farmland 356,656 3,335 9,165 — — 369,156 One- to four-family residential 807,837 967 4,273 — — 813,077 Consumer: Consumer secured by one- to four-family 490,877 5 2,327 2 — 493,211 Consumer—other 156,547 108 594 5 — 157,254 Total $ 7,282,408 $ 77,691 $ 91,042 $ 7 $ — $ 7,451,148 (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 June 30, 2017 and December 31, 2016 , in the commercial business category, $276.6 million and $225.0 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 June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 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 $ 108 $ 1,644 $ 3,477 $ 5,229 $ 8,021 $ 1,344,844 $ 1,358,094 $ — $ 4,670 Investment properties 4,231 — 1,479 5,710 10,217 1,959,148 1,975,075 — 1,597 Multifamily real estate — — — — 174 288,268 288,442 — — Commercial construction — — — — — 144,092 144,092 — — Multifamily construction — — — — — 111,562 111,562 — — One-to-four-family construction — — — — 817 379,965 380,782 — — Land and land development: Residential — — 798 798 — 146,351 147,149 — 798 Commercial — — 928 928 2,993 23,996 27,917 — 928 Commercial business 3,335 4,041 1,968 9,344 2,968 1,273,892 1,286,204 77 7,037 Agricultural business, including secured by farmland 1,918 495 873 3,286 730 340,396 344,412 — 1,456 One- to four-family residential 534 241 2,057 2,832 294 796,882 800,008 754 2,955 Consumer: Consumer secured by one- to four-family 731 113 767 1,611 8 526,004 527,623 108 1,416 Consumer—other 658 94 19 771 45 159,387 160,203 — 78 Total $ 11,515 $ 6,628 $ 12,366 $ 30,509 $ 26,267 $ 7,494,787 $ 7,551,563 $ 939 $ 20,935 December 31, 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 $ 1,938 $ — $ 2,538 $ 4,476 $ 13,281 $ 1,335,242 $ 1,352,999 $ — $ 3,373 Investment properties 117 — 5,447 5,564 10,168 1,970,604 1,986,336 701 4,864 Multifamily real estate — — 147 147 139 247,864 248,150 147 — Commercial construction — — — — — 124,068 124,068 — — Multifamily construction — — — — — 124,126 124,126 — — One-to-four-family construction — — — — 862 374,842 375,704 — — Land and land development: Residential 48 — 750 798 — 169,206 170,004 — 750 Commercial — — 998 998 3,016 25,170 29,184 — 998 Commercial business 2,314 647 1,591 4,552 3,821 1,199,506 1,207,879 — 3,074 Agricultural business, including secured by farmland 360 1,244 2,768 4,372 684 364,100 369,156 — 3,229 One-to four-family residential 1,793 249 2,110 4,152 274 808,651 813,077 1,233 2,263 Consumer: Consumer secured by one- to four-family 932 160 986 2,078 18 491,115 493,211 61 1,660 Consumer—other 1,421 154 147 1,722 59 155,473 157,254 11 215 Total $ 8,923 $ 2,454 $ 17,482 $ 28,859 $ 32,322 $ 7,389,967 $ 7,451,148 $ 2,153 $ 20,426 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 six months ended June 30, 2017 and 2016 (in thousands): For the Three Months Ended June 30, 2017 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 $ 20,472 $ 1,378 $ 29,464 $ 19,768 $ 3,245 $ 1,974 $ 3,840 $ 6,386 $ 86,527 Provision for loan losses 3,543 173 (3,176 ) 356 648 (73 ) 366 163 2,000 Recoveries 264 11 1,024 171 19 109 101 — 1,699 Charge-offs (47 ) — — (1,169 ) (104 ) — (320 ) — (1,640 ) Ending balance $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 For the Six Months Ended June 30, 2017 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 $ 20,993 $ 1,360 $ 34,252 $ 16,533 $ 2,967 $ 2,238 $ 4,104 $ 3,550 $ 85,997 Provision for loan losses 2,952 191 (8,047 ) 5,044 972 (482 ) 371 2,999 4,000 Recoveries 334 11 1,107 344 132 254 195 — 2,377 Charge-offs (47 ) — — (2,795 ) (263 ) — (683 ) — (3,788 ) Ending balance $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 June 30, 2017 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 $ 270 $ 61 $ 116 $ 59 $ 238 $ 324 $ 12 $ — $ 1,080 Collectively evaluated for impairment 23,962 1,501 27,183 19,067 3,570 1,686 3,975 6,549 87,493 Purchased credit-impaired loans — — 13 — — — — — 13 Total allowance for loan losses $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 Loan balances: Individually evaluated for impairment $ 8,164 $ 345 $ 2,281 $ 6,737 $ 3,799 $ 5,228 $ 220 $ — $ 26,774 Collectively evaluated for impairment 3,306,767 287,923 805,411 1,276,499 339,883 794,486 687,553 — 7,498,522 Purchased credit-impaired loans 18,238 174 3,810 2,968 730 294 53 — 26,267 Total loans $ 3,333,169 $ 288,442 $ 811,502 $ 1,286,204 $ 344,412 $ 800,008 $ 687,826 $ — $ 7,551,563 For the Three Months Ended June 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 $ 19,732 $ 2,853 $ 29,318 $ 15,118 $ 4,282 $ 2,170 $ 3,541 $ 1,183 $ 78,197 Provision for loan losses 391 (1,338 ) 2,419 2,189 (1,551 ) (490 ) 366 14 2,000 Recoveries 26 — 124 622 160 558 249 — 1,739 Charge-offs — — — (171 ) — (34 ) (413 ) — (618 ) Ending balance $ 20,149 $ 1,515 $ 31,861 $ 17,758 $ 2,891 $ 2,204 $ 3,743 $ 1,197 $ 81,318 For the Six Months Ended June 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 (451 ) (2,680 ) 4,135 2,870 (364 ) (3,064 ) 3,188 (1,634 ) 2,000 Recoveries 64 — 595 1,342 177 570 456 — 3,204 Charge-offs (180 ) — — (310 ) (567 ) (34 ) (803 ) — (1,894 ) Ending balance $ 20,149 $ 1,515 $ 31,861 $ 17,758 $ 2,891 $ 2,204 $ 3,743 $ 1,197 $ 81,318 June 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 $ 556 $ 66 $ 423 $ 60 $ — $ 582 $ 6 $ — $ 1,693 Collectively evaluated for impairment 19,593 1,449 31,405 17,698 2,891 1,622 3,737 1,197 79,592 Purchased credit-impaired loans — — 33 — — — — — 33 Total allowance for loan losses $ 20,149 $ 1,515 $ 31,861 $ 17,758 $ 2,891 $ 2,204 $ 3,743 $ 1,197 $ 81,318 Loan balances: Individually evaluated for impairment $ 15,603 $ 353 $ 4,470 $ 1,385 $ 3,653 $ 8,514 $ 320 $ — $ 34,298 Collectively evaluated for impairment 3,151,203 287,116 705,034 1,223,865 365,730 870,208 643,095 — 7,246,251 Purchased credit impaired loans 33,332 314 3,803 5,932 1,132 264 599 — 45,376 Total loans $ 3,200,138 $ 287,783 $ 713,307 $ 1,231,182 $ 370,515 $ 878,986 $ 644,014 $ — $ 7,325,925 The following tables present the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,322,190 $ 2,495 $ 33,409 $ — $ — $ 1,358,094 Investment properties 1,957,466 9,375 8,234 — — 1,975,075 Multifamily real estate 287,315 — 1,127 — — 288,442 Commercial construction 144,092 — — — — 144,092 Multifamily construction 111,562 — — — — 111,562 One- to four-family construction 379,761 — 1,021 — — 380,782 Land and land development: Residential 144,607 — 2,542 — — 147,149 Commercial 23,997 — 3,920 — — 27,917 Commercial business 1,216,834 16,625 52,745 — — 1,286,204 Agricultural business, including secured by farmland 320,470 10,427 13,515 — — 344,412 One- to four-family residential 794,150 927 4,931 — — 800,008 Consumer: Consumer secured by one- to four-family 525,128 2 2,493 — — 527,623 Consumer—other 159,731 78 394 — — 160,203 Total $ 7,387,303 $ 39,929 $ 124,331 $ — $ — $ 7,551,563 December 31, 2016 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,313,142 $ 14,394 $ 25,463 $ — $ — $ 1,352,999 Investment properties 1,948,822 23,846 13,668 — — 1,986,336 Multifamily real estate 247,258 — 892 — — 248,150 Commercial construction 124,068 — — — — 124,068 Multifamily construction 124,126 — — — — 124,126 One- to four-family construction 371,636 — 4,068 — — 375,704 Land and land development: Residential 167,764 — 2,240 — — 170,004 Commercial 25,090 — 4,094 — — 29,184 Commercial business 1,148,585 35,036 24,258 — — 1,207,879 Agricultural business, including secured by farmland 356,656 3,335 9,165 — — 369,156 One- to four-family residential 807,837 967 4,273 — — 813,077 Consumer: Consumer secured by one- to four-family 490,877 5 2,327 2 — 493,211 Consumer—other 156,547 108 594 5 — 157,254 Total $ 7,282,408 $ 77,691 $ 91,042 $ 7 $ — $ 7,451,148 (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 June 30, 2017 and December 31, 2016 , in the commercial business category, $276.6 million and $225.0 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 June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 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 $ 108 $ 1,644 $ 3,477 $ 5,229 $ 8,021 $ 1,344,844 $ 1,358,094 $ — $ 4,670 Investment properties 4,231 — 1,479 5,710 10,217 1,959,148 1,975,075 — 1,597 Multifamily real estate — — — — 174 288,268 288,442 — — Commercial construction — — — — — 144,092 144,092 — — Multifamily construction — — — — — 111,562 111,562 — — One-to-four-family construction — — — — 817 379,965 380,782 — — Land and land development: Residential — — 798 798 — 146,351 147,149 — 798 Commercial — — 928 928 2,993 23,996 27,917 — 928 Commercial business 3,335 4,041 1,968 9,344 2,968 1,273,892 1,286,204 77 7,037 Agricultural business, including secured by farmland 1,918 495 873 3,286 730 340,396 344,412 — 1,456 One- to four-family residential 534 241 2,057 2,832 294 796,882 800,008 754 2,955 Consumer: Consumer secured by one- to four-family 731 113 767 1,611 8 526,004 527,623 108 1,416 Consumer—other 658 94 19 771 45 159,387 160,203 — 78 Total $ 11,515 $ 6,628 $ 12,366 $ 30,509 $ 26,267 $ 7,494,787 $ 7,551,563 $ 939 $ 20,935 December 31, 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 $ 1,938 $ — $ 2,538 $ 4,476 $ 13,281 $ 1,335,242 $ 1,352,999 $ — $ 3,373 Investment properties 117 — 5,447 5,564 10,168 1,970,604 1,986,336 701 4,864 Multifamily real estate — — 147 147 139 247,864 248,150 147 — Commercial construction — — — — — 124,068 124,068 — — Multifamily construction — — — — — 124,126 124,126 — — One-to-four-family construction — — — — 862 374,842 375,704 — — Land and land development: Residential 48 — 750 798 — 169,206 170,004 — 750 Commercial — — 998 998 3,016 25,170 29,184 — 998 Commercial business 2,314 647 1,591 4,552 3,821 1,199,506 1,207,879 — 3,074 Agricultural business, including secured by farmland 360 1,244 2,768 4,372 684 364,100 369,156 — 3,229 One-to four-family residential 1,793 249 2,110 4,152 274 808,651 813,077 1,233 2,263 Consumer: Consumer secured by one- to four-family 932 160 986 2,078 18 491,115 493,211 61 1,660 Consumer—other 1,421 154 147 1,722 59 155,473 157,254 11 215 Total $ 8,923 $ 2,454 $ 17,482 $ 28,859 $ 32,322 $ 7,389,967 $ 7,451,148 $ 2,153 $ 20,426 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 six months ended June 30, 2017 and 2016 (in thousands): For the Three Months Ended June 30, 2017 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 $ 20,472 $ 1,378 $ 29,464 $ 19,768 $ 3,245 $ 1,974 $ 3,840 $ 6,386 $ 86,527 Provision for loan losses 3,543 173 (3,176 ) 356 648 (73 ) 366 163 2,000 Recoveries 264 11 1,024 171 19 109 101 — 1,699 Charge-offs (47 ) — — (1,169 ) (104 ) — (320 ) — (1,640 ) Ending balance $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 For the Six Months Ended June 30, 2017 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 $ 20,993 $ 1,360 $ 34,252 $ 16,533 $ 2,967 $ 2,238 $ 4,104 $ 3,550 $ 85,997 Provision for loan losses 2,952 191 (8,047 ) 5,044 972 (482 ) 371 2,999 4,000 Recoveries 334 11 1,107 344 132 254 195 — 2,377 Charge-offs (47 ) — — (2,795 ) (263 ) — (683 ) — (3,788 ) Ending balance $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 June 30, 2017 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 $ 270 $ 61 $ 116 $ 59 $ 238 $ 324 $ 12 $ — $ 1,080 Collectively evaluated for impairment 23,962 1,501 27,183 19,067 3,570 1,686 3,975 6,549 87,493 Purchased credit-impaired loans — — 13 — — — — — 13 Total allowance for loan losses $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 Loan balances: Individually evaluated for impairment $ 8,164 $ 345 $ 2,281 $ 6,737 $ 3,799 $ 5,228 $ 220 $ — $ 26,774 Collectively evaluated for impairment 3,306,767 287,923 805,411 1,276,499 339,883 794,486 687,553 — 7,498,522 Purchased credit-impaired loans 18,238 174 3,810 2,968 730 294 53 — 26,267 Total loans $ 3,333,169 $ 288,442 $ 811,502 $ 1,286,204 $ 344,412 $ 800,008 $ 687,826 $ — $ 7,551,563 For the Three Months Ended June 30, 2016 Comme |
