Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Banner Corporation | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
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 Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Voting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 32,324,789 | |
Nonvoting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 74,933 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Cash and due from banks | $ 184,417 | $ 199,624 | |
Interest bearing deposits | 64,244 | 61,576 | |
Total cash and cash equivalents | 248,661 | 261,200 | |
Securities—trading, amortized cost $27,340 and $27,246, respectively | 25,764 | 22,318 | |
Securities—trading, amortized cost $27,340 and $27,246, respectively | 25,764 | 22,318 | |
Securities—available-for-sale, amortized cost $1,451,897 and $926,112, respectively | 1,412,273 | 919,485 | |
Securities—held-to-maturity, fair value $254,094 and $262,188, respectively | 258,699 | 260,271 | |
Total securities | 1,696,736 | 1,202,074 | |
Federal Home Loan Bank (FHLB) stock | 19,196 | 10,334 | |
Loans held for sale (includes $67.1 million and $32.4 million, at fair value, respectively) | 72,850 | 40,725 | |
Loans receivable | 7,822,519 | 7,598,884 | |
Allowance for loan losses | 95,263 | 89,028 | |
Net loans receivable | 7,727,256 | 7,509,856 | |
Accrued interest receivable | 37,676 | 31,259 | |
Real estate owned (REO), held for sale, net | 364 | 360 | |
Property and equipment, net | 151,212 | 154,815 | |
Goodwill | 242,659 | 242,659 | |
Other intangibles, net | 18,499 | 22,655 | |
Bank-owned life insurance (BOLI) | 163,265 | 162,668 | |
Deferred tax assets, net | 78,471 | 71,427 | |
Other assets | 57,458 | 53,177 | |
Total assets | 10,514,303 | 9,763,209 | |
Deposits: | |||
Non-interest-bearing | 3,469,294 | 3,265,544 | |
Interest-bearing transaction and savings accounts | 4,035,856 | 3,950,950 | |
Interest-bearing certificates | [1] | 1,180,674 | 966,937 |
Total deposits | 8,685,824 | 8,183,431 | |
Advances from FHLB | 221,184 | 202 | |
Other borrowings | 98,979 | 95,860 | |
Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) | 113,110 | 98,707 | |
Accrued expenses and other liabilities | 82,530 | 71,344 | |
Deferred compensation | 40,478 | 41,039 | |
Total liabilities | 9,242,105 | 8,490,583 | |
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, 2018 and December 31, 2017 | 0 | 0 | |
Retained earnings | 109,942 | 90,535 | |
Carrying value of shares held in trust for stock related compensation plans | (7,182) | (7,351) | |
Liability for common stock issued to stock related compensation plans | 7,182 | 7,351 | |
Accumulated other comprehensive loss | (12,994) | (5,036) | |
Total shareholders' equity | 1,272,198 | 1,272,626 | |
Total liabilities & shareholders' equity | 10,514,303 | 9,763,209 | |
Voting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | 1,174,004 | 1,185,919 | |
Nonvoting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | $ 1,246 | $ 1,208 | |
[1] | Certificates of deposit include $0 and $11,000 of acquisition premiums at September 30, 2018 and December 31, 2017, respectively. |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Securities—trading, amortized cost basis | $ 27,340 | $ 27,246 |
Securities—available-for-sale, amortized cost basis | 1,451,897 | 926,112 |
Securities—held-to-maturity, fair value | $ 254,094 | $ 262,188 |
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 | 32,327,824 | 32,626,456 |
Common stock, shares outstanding | 32,327,824 | 32,626,456 |
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 | 74,933 | 100,029 |
Common stock, shares outstanding | 74,933 | 100,029 |
Loans [Member] | Recurring [Member] | ||
ASSETS | ||
Loans Held-for-sale, Fair Value Disclosure | $ 67,128 | $ 32,392 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Acquisition-related costs | $ 1,005 | $ 0 | $ 1,005 | $ 0 | |
INTEREST INCOME: | |||||
Loans receivable | 104,868 | $ 95,221 | 298,743 | 281,304 | |
Mortgage-backed securities | 8,915 | 6,644 | 25,145 | 17,529 | |
Securities and cash equivalents | 3,865 | 3,413 | 11,003 | 9,976 | |
Total interest income | 117,648 | 105,278 | 334,891 | 308,809 | |
INTEREST EXPENSE: | |||||
Deposits | 5,517 | 3,189 | 13,139 | 9,162 | |
FHLB advances | 1,388 | 569 | 3,564 | 1,142 | |
Other borrowings | 60 | 84 | 179 | 241 | |
Junior subordinated debentures | 1,605 | 1,226 | 4,495 | 3,494 | |
Total interest expense | 8,570 | 5,068 | 21,377 | 14,039 | |
Net interest income | 109,078 | 100,210 | 313,514 | 294,770 | |
PROVISION FOR LOAN LOSSES | 2,000 | 2,000 | 6,000 | 6,000 | |
Net interest income after provision for loan losses | 107,078 | 98,210 | 307,514 | 288,770 | |
NON-INTEREST INCOME: | |||||
Deposit fees and other service charges | 12,255 | 11,058 | 35,535 | 32,611 | |
Bank-owned life insurance (BOLI) | 1,726 | 1,043 | 3,511 | 3,599 | |
Miscellaneous | 569 | 1,705 | 4,995 | 7,062 | |
Other operating income | 20,366 | 18,304 | 59,365 | 59,126 | |
Net gain on sale of securities | 0 | 270 | 48 | 230 | |
Net change in valuation of financial instruments carried at fair value | 45 | (493) | 3,577 | (1,831) | |
Total non-interest income | 20,411 | 18,081 | 62,990 | 57,525 | |
NON-INTEREST EXPENSE: | |||||
Salary and employee benefits | 48,930 | 48,931 | 150,491 | 144,014 | |
Less capitalized loan origination costs | (4,318) | (4,331) | (13,062) | (13,245) | |
Occupancy and equipment | 12,385 | 11,737 | 35,725 | 35,778 | |
Information/computer data services | 4,766 | 4,420 | 13,711 | 12,513 | |
Payment and card processing expenses | 3,748 | 3,581 | 11,179 | 10,523 | |
Professional services | 3,010 | 3,349 | 11,276 | 12,233 | |
Advertising and marketing | 1,786 | 2,130 | 5,758 | 5,225 | |
Deposit insurance | 991 | 1,101 | 3,353 | 3,438 | |
State/municipal business and use taxes | 902 | 780 | 2,430 | 1,857 | |
REO operations | 433 | 240 | 553 | (1,089) | |
Amortization of core deposit intangibles | 1,348 | 1,542 | 4,112 | 4,790 | |
Miscellaneous | 6,646 | 6,851 | 19,444 | 20,432 | |
Total non-interest expense | 81,632 | 80,331 | 245,975 | 236,469 | |
Noninterest Operating Expense, Before Acquisition Related Costs | 80,627 | $ 80,331 | 244,970 | 236,469 | |
Income before provision for income taxes | 45,857 | 35,960 | 124,529 | 109,826 | |
PROVISION FOR INCOME TAXES | 8,084 | 10,883 | 25,542 | 35,502 | |
NET INCOME | $ 37,773 | $ 25,077 | $ 98,987 | $ 74,324 | |
Earnings per common share: | |||||
Basic | $ 1.17 | $ 0.76 | $ 3.06 | $ 2.25 | |
Diluted | 1.17 | 0.76 | 3.05 | 2.25 | |
Cumulative dividends declared per common share | $ 0.38 | $ 0.25 | $ 1.58 | $ 1.75 | |
Weighted average number of common shares outstanding, Basic | 32,256,789 | 32,982,532 | 32,300,688 | 32,966,214 | |
Weighted average number of common shares outstanding, Diluted | 32,376,623 | 33,079,099 | 32,406,414 | 33,061,172 | |
Mortgage Banking [Member] | |||||
NON-INTEREST INCOME: | |||||
Mortgage banking operations | $ 5,816 | $ 4,498 | $ 15,324 | $ 15,854 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 37,773 | $ 25,077 | $ 98,987 | $ 74,324 |
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF INCOME TAXES: | ||||
Unrealized holding (loss) gain on available-for-sale securities arising during the period | (10,010) | 493 | (33,083) | 5,841 |
Reclassification for net gains on available-for-sale securities realized in earnings | 0 | (270) | (51) | (230) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (336) | 0 | (14,403) | 0 |
Income tax related to other comprehensive (loss) income | 2,483 | (105) | 11,376 | (2,032) |
Other comprehensive (loss) income | (7,863) | 118 | (36,161) | 3,579 |
COMPREHENSIVE INCOME | $ 29,910 | $ 25,195 | $ 62,826 | $ 77,903 |
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, 2016 | 33,193,387 | ||||
Balance, beginning of the period at Dec. 31, 2016 | $ 1,305,710 | $ 1,213,837 | $ 95,328 | $ (3,455) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 60,776 | 60,776 | |||
Other comprehensive loss, net of income tax | (786) | (786) | |||
Reclassification of stranded tax effects from AOCI to retained earnings | 0 | 795 | (795) | ||
Accrual of dividends on common stock | (66,364) | (66,364) | |||
Repurchase of common stock | (545,166) | ||||
Proceeds from issuance of common stock for stockholder reinvestment program (in shares) | 78,264 | ||||
Repurchase of common stock, value | (31,045) | (31,045) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 4,335 | 4,335 | |||
Balance, end of the period (in shares) at Dec. 31, 2017 | 32,726,485 | ||||
Balance, end of the period at Dec. 31, 2017 | 1,272,626 | 1,187,127 | 90,535 | (5,036) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of reclassification of the instrument-specific credit risk portion of junior subordinated debentures fair value adjustments and reclassification of equity securities from available-for-sale | 0 | (28,203) | 28,203 | ||
Net income | 98,987 | 98,987 | |||
Other comprehensive loss, net of income tax | (36,161) | (36,161) | |||
Accrual of dividends on common stock | (51,377) | (51,377) | |||
Repurchase of common stock | (269,711) | ||||
Proceeds from issuance of common stock for stockholder reinvestment program (in shares) | (54,017) | ||||
Repurchase of common stock, value | (15,359) | (15,359) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 3,482 | 3,482 | |||
Balance, end of the period (in shares) at Sep. 30, 2018 | 32,402,757 | ||||
Balance, end of the period at Sep. 30, 2018 | $ 1,272,198 | $ 1,175,250 | $ 109,942 | $ (12,994) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cumulative dividends declared per common share | $ 0.38 | $ 0.25 | $ 1.58 | $ 1.75 | $ 2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES: | ||
Net income | $ 98,987,000 | $ 74,324,000 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation | 11,014,000 | 10,153,000 |
Deferred income and expense, net of amortization | (4,005,000) | (1,513,000) |
Amortization of core deposit intangibles | 4,112,000 | 4,790,000 |
Gain on sale of securities | (48,000) | (230,000) |
Net change in valuation of financial instruments carried at fair value | (3,577,000) | 1,831,000 |
Principal repayments and maturities of securities—trading | 0 | 1,618,000 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 249,000 | 0 |
(Increase) decrease in deferred taxes | 7,044,000 | (8,361,000) |
Increase in current taxes payable | 7,227,000 | 2,853,000 |
Stock-based compensation | 4,844,000 | 4,232,000 |
Increase in cash surrender value of BOLI | (3,486,000) | (3,046,000) |
Gain on sale of loans, net of capitalized servicing rights | (10,815,000) | (11,653,000) |
Gain on disposal of real estate held for sale and property and equipment | (1,417,000) | (2,438,000) |
Provision for loan losses | 6,000,000 | 6,000,000 |
Provision for losses on real estate held for sale | 187,000 | 256,000 |
Origination of loans held for sale | (637,702,000) | (626,677,000) |
Proceeds from sales of loans held for sale | 616,393,000 | 812,778,000 |
Net change in: | ||
Other assets | 521,000 | (4,082,000) |
Other liabilities | 5,269,000 | (144,000) |
Net cash provided from operating activities | 86,211,000 | 277,413,000 |
INVESTING ACTIVITIES: | ||
Purchases of securities—available-for-sale | (668,456,000) | (706,911,000) |
Principal repayments and maturities of securities—available-for-sale | 123,132,000 | 135,163,000 |
Proceeds from sales of securities—available-for-sale | 8,363,000 | 35,559,000 |
Purchases of securities—held-to-maturity | (8,469,000) | (5,105,000) |
Principal repayments and maturities of securities—held-to-maturity | 8,291,000 | 6,544,000 |
Loan originations, net of principal repayments | (214,487,000) | (211,539,000) |
Purchases of loans and participating interest in loans | (5,487,000) | (111,148,000) |
Proceeds from sales of other loans | 6,629,000 | 9,456,000 |
Net cash paid related to branch divestiture | (20,412,000) | 0 |
Purchases of property and equipment | (12,982,000) | (7,641,000) |
Proceeds from sale of real estate held for sale and sale of other property, net | 6,982,000 | 15,873,000 |
Proceeds from FHLB stock repurchase program | 110,078,000 | 80,056,000 |
Purchase of FHLB stock | (118,940,000) | (88,404,000) |
Other | 3,562,000 | 327,000 |
Net cash used in investing activities | (782,196,000) | (847,770,000) |
FINANCING ACTIVITIES: | ||
Increase in deposits, net | 523,047,000 | 417,436,000 |
Proceeds from FHLBank Advance, Investing Activities | 0 | 150,000,000 |
Repayments of long-term Federal Home Loan Bank Advances | (8,000) | (7,000) |
Proceeds from overnight and short term FHLB advances, net | 221,000,000 | 59,000,000 |
Increase in other borrowings, net | 3,119,000 | (1,971,000) |
Cash dividends paid | (46,989,000) | (57,467,000) |
Taxes paid related to net share settlement of equity awards | 1,364,000 | 1,187,000 |
Payments for Repurchase of Common Stock | 15,359,000 | 1,400,000 |
Net cash provided from financing activities | 683,446,000 | 564,404,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (12,539,000) | (5,953,000) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 261,200,000 | 247,719,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 248,661,000 | 241,766,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid in cash | 18,901,000 | 13,406,000 |
Taxes paid, net | 13,029,000 | 25,599,000 |
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 | 1,451,000 | 10,000 |
Dividends Payable | $ 12,654,000 | $ 8,443,000 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
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 condensed consolidated 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 condensed consolidated 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, 2018 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 2017 Consolidated Financial Statements and/or schedules to conform to the 2018 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, 2017 filed with the SEC (2017 Form 10-K). There have been no significant changes in our application of these accounting policies during the first nine months of 2018 , except as described in Note 2. The information included in this Form 10-Q should be read in conjunction with our 2017 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, 2018 | |
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 Topic 606 and supersedes Topic 605, Revenue Recognition . Subsequent to the issuance of ASU 2014-09, FASB issued ASU 2016-10 in April 2016 and issued ASU 2016-12 in May 2016. Both of these ASUs amend or clarify aspects of Topic 606. 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. The Company adopted Topic 606 on January 1, 2018 using the full retrospective method, meaning the standard is applied to all periods presented in the financial statements with the cumulative effect of initially applying the standard recognized at the beginning of the earliest period presented. In adopting Topic 606, the Company applied the following five steps in determining the correct treatment for the applicable revenue streams: 1. Identify the contract with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to performance obligations in the contract, and 5. Recognize revenue when or as the Company satisfies the performance obligation. The majority of the Company’s revenue streams including interest income, deferred loan fee accretion, premium/discount accretion, gains on sales of loans and investments, loan servicing income and other loan fee income are outside the scope of Topic 606. Revenue streams reported as deposit fees and other service charges include transaction based deposit fees, non-transaction based deposit fees, interchange fees on credit and debit cards and merchant service fees which are within the scope of Topic 606. The Company applied the requirements of Topic 606 to the revenue streams that are within its scope. The adoption of Topic 606 did not result in any changes in either the timing or amount of recognized revenue in prior periods by the Company, however, the presentation of certain costs associated with our merchant services are offset against deposit fees and other service charges in non-interest income. The Company previously recognized payment network related fees that were collected by the Company and passed through to another party related to its merchant services as non-interest expense. The change in presentation resulted in $5.9 million of expenses for the nine months ended September 30, 2018 being netted against deposit fees and other services charges and reported in non-interest income instead of as payment and card processing expenses in non-interest expense. In addition, to conform to the current period presentation, $6.1 million of merchant services related expenses for the nine months ended September 30, 2017 were reclassified from payment and card processing expense in non-interest expense to being netted against deposit fees and other service charges in non-interest income. The Company elected to apply the practical expedient and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Company to expense costs related to obtaining a contract as incurred when the amortization period would have been one year or less. The following table presents the impact of adopting of the new revenue standard on our Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017, respectively (in thousands): For the three months ended September 30, 2018 For the three months ended September 30, 2017 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: Deposit fees and other service charges $ 12,255 $ 16,799 $ (4,544 ) $ 11,058 $ 13,316 $ (2,258 ) Non-interest expense: Payment and card processing expenses $ 3,748 $ 8,292 $ (4,544 ) $ 3,581 $ 5,839 $ (2,258 ) For the nine months ended September 30, 2018 For the nine months ended September 30, 2017 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: Deposit fees and other service charges $ 35,535 $ 41,434 $ (5,899 ) $ 32,611 $ 38,739 $ (6,128 ) Non-interest expense: Payment and card processing expenses $ 11,179 $ 17,078 $ (5,899 ) $ 10,523 $ 16,651 $ (6,128 ) 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 Company adopted this ASU on January 1, 2018. The adoption of this ASU resulted in the Company reclassifying $28.1 million from retained earnings to AOCI for the cumulative fair value adjustments on its junior subordinated debentures related to instrument specific credit risk. During the nine months ended September 30, 2018 , the Company recorded a $10.9 million , net of tax, reduction in other comprehensive income (loss) for the change in instrument specific credit risk on its junior subordinated debentures. Prior to the adoption of this ASU this amount would have been recorded in the Consolidated Statement of Operations. In addition, as a result of adopting this ASU the Company recorded a $137,000 reduction in retained earnings representing the unrealized loss on available for sale equity securities at the date of adoption. Any future changes in fair value on equity securities will be recorded in the Consolidated Statement of Operations. During the nine months ended September 30, 2018 , the Company recorded a $68,000 gain for the increase in fair value of its equity securities as a component of the net change in financial instruments carried at fair value in the Consolidated Statement of Operations. At September 30, 2018 , the Company held $416,000 of equity investment securities which were previously reported as available for sale securities and are now reported in other assets. In addition, the adoption of this ASU resulted in changing how the Company estimates the fair value of portfolio loans for disclosure purposes. 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. An estimate of fair value is then calculated based on discounted cash flows using as a discount rate based on the current rate offered on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans, as well as, a quarterly loss rate based on historical losses to arrive at an estimated exit price 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. In February 2018, FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASU do not change the core principle of the guidance in Subtopic 825-10. Rather, the amendments in this ASU clarify the application of the guidance regarding the fair value measurement of equity securities without readily determinable fair value. The Company adopted this ASU upon its issuance. The impact of the Company's adoption of this ASU is described in the preceding paragraph. 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 Company is continuing its evaluation of the provisions of ASU No. 2016-02 and ASU No. 2018-11 to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements and regulatory capital ratios and has contracted with a third party software solution to meet the new requirements of this ASU, with implementation currently in process. The Company is substantially complete with its effort to compile a complete inventory of arrangements containing leases and analyzing the lease data necessary to meet the new requirements. The Company has 117 real property leases under non-cancelable operating leases, the majority of which will be subject to this ASU that will result in the recognition of right-of-use assets and lease liabilities. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, and entities are required to use a modified retrospective approach for leases. The Company expects to elect the transition option provided in ASU No. 2018-11, and apply the modified retrospective approach. The Company also expects to elect certain relief options for practical expedients; the option to not separate lease and non-lease components and instead to account for them as a single lease component, and the option to not recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e. leases terms of twelve months or less). All of the Company’s equipment is owned or on short-term leases. The majority of the Company’s leases have been entered into the new leasing software solution and the Company is continuing to work through the provisions of ASU 2016-02 and ASU 2018-11 to assess all impacts under the new standard. While the Company has not quantified the impact to its balance sheet, upon the adoption of this ASU the Company expects to report increased assets and increased liabilities on its Consolidated Statements of Financial Condition as a result of recognizing right-of-use assets and lease liabilities related to these leases and certain equipment under non-cancelable operating lease agreements, which currently are not reflected in its Consolidated Statements of Financial Condition. In July 2018, FASB issued ASU No. 2018-11, Targeted Improvements . The amendments in this ASU provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). In addition, the amendments in this ASU provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606). For entities that have not adopted Topic 842 before the issuance of this ASU, the effective date and transition requirements for the amendments in this ASU related to separating components of a contract are the same as the effective date and transition requirements in ASU No. 2016-02. 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 ASU affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial asset not excluded from the scope that have the contractual right to receive cash. The ASU replaces 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. This ASU requires 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. This ASU broadens 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. 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. The Company has formed an internal committee to oversee the project, engaged a third-party vendor to assist with the project and has completed its gap analysis phase of the project. In addition, the Company has selected a second third-party vendor to assist with building and developing the required models. The Company is currently in the process of building the required models. Upon adoption, the Company expects changes in the processes and procedures used to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The new guidance may result in an increase in the allowance for loan losses which will also reflect the new requirement to include the nonaccretable principal differences on purchased credit-impaired loans; however, the Company is still in the process of determining the magnitude of the change and its impact on the Consolidated Financial Statements. In addition, the current accounting policy and procedures for other-than-temporary impairment on investment securities available-for-sale will be replaced with an allowance approach. Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities . The amendments in this ASU shorten the premium amortization period for callable debt securities purchased at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. Under current GAAP, premiums and discounts on callable debt securities generally are amortized to the maturity date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to the maturity date. The amendments in this ASU more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. Derivatives and Hedging (Topic 815) In August 2017, FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU are intended to provide investors better insight to an entity's risk management hedging strategies by permitting a company to recognize the economic results of its hedging strategies in its financial statements. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. This ASU is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. Adoption of ASU 2017-12 is not expected to have a material impact on the Company's Consolidated Financial Statements. Income Statement - Reporting Comprehensive Income (Topic 220) In February 2018, FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from AOCI to retained earnings for the stranded tax effects on available-for-sale securities resulting from the Tax Cuts and Jobs Act (2017 Tax Act). The ASU eliminates the stranded tax effects resulting from the 2017 Tax Act and improves the usefulness of information reported to financial statement users. The ASU also requires certain disclosures about the stranded tax effects. This ASU is effective for all entities for fiscal years beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the federal corporate tax rate is recognized. The Company elected to early adopt this ASU and to reclassify $795,000 of stranded tax effects from AOCI to retained earnings in the fourth quarter of 2017. Income Taxes (Topic 740) In March 2018, FASB issued ASU No. 2018-05, Income Taxes (Topic 740). This ASU was issued to provide guidance on the income tax accounting implications of the Tax Cuts and Jobs Act (the Act) and allows for entities to report provisional amounts for specific income tax effects of the Act for which the accounting under ASC Topic 740 was not yet complete but a reasonable estimate could be determined. A measurement period of one year is allowed to complete the accounting effects under ASC Topic 740 and revise any previous estimates reported. Any provisional amounts or subsequent adjustments included in an entity’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense in the reporting period the amounts are determined. The Company adopted this ASU with the provisional adjustments as reported in the Consolidated Financial Statements in the 2017 Form 10-K. As of September 30, 2018, the Company did not incur any adjustments to the provisional recognition. Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for costs for internal-use software. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments in this ASU should be applied either retrospectively to all implementation costs incurred after the date of adoption. Adoption of ASU 2018-15 is not expected to have a material impact on the Company’s Consolidated Financial Statements. Fair Value Measurement (Topic 820) In August 2018, FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The ASU removes, modifies and adds disclosure requirements in Topic 820. The following disclosure requirements were removed: 1) the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the policy for timing of transfers between levels, and 3) the valuation processes for Level 3 fair value measurements. This ASU modified disclosure requirement by requiring: 1) that the measurement uncertainty disclosure communicates information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added: 1) changes in unrealized gains and losses for the period included in other comprehensive income for the recurring Level 3 fair value measurements held at the end of the reporting period, and 2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. Adoption of ASU 2018-13 is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT On November 1, 2018, the Company completed the acquisition of Skagit Bancorp, Inc. (“Skagit”) and its wholly-owned subsidiary, Skagit Bank, a Washington state-chartered commercial bank. Skagit was merged into Banner and Skagit Bank was merged into Banner Bank. Pursuant to the previously announced terms of the acquisition, Skagit shareholders received 5.6664 shares of Banner common stock in exchange for each share of Skagit common stock, plus cash in lieu of any fractional shares. At September 30, 2018, Skagit Bank had assets of $919 million, a loan portfolio of $604 million, and a deposit base of $819 million with 11 retail branches along the I-5 corridor from Seattle to the Canadian border. The combined company has approximately $11.4 billion in assets. The primary reason for the acquisition was to expand the Company’s presence and density in the North Sound region of the Pacific Northwest along the I-5 corridor. Preliminary fair values for all assets and liabilities, as well as the consideration paid, are not reported herein as the Company is still in the process of completing the initial accounting for the acquisition. Goodwill expected to be recorded in the transaction will not be deductible for income tax purposes as the acquisition is accounted for as a tax-free exchange for tax purposes. The Company expects to disclose preliminary estimates of assets acquired and liabilities assumed, including fair value adjustments and the consideration paid, in the Company's December 31, 2018 Form 10-K. In addition, the Company's December 31, 2018 Form 10-K will include the results of operations produced by the acquired company beginning on November 1, 2018. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 are summarized as follows (in thousands): September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Municipal bonds $ 100 $ 100 Corporate bonds 27,240 25,664 $ 27,340 $ 25,764 Available-for-Sale: U.S. Government and agency obligations $ 139,329 $ 9 $ (3,030 ) $ 136,308 Municipal bonds 66,854 152 (1,020 ) 65,986 Corporate bonds 5,054 4 (18 ) 5,040 Mortgage-backed or related securities 1,218,204 29 (35,715 ) 1,182,518 Asset-backed securities 22,456 86 (121 ) 22,421 $ 1,451,897 $ 280 $ (39,904 ) $ 1,412,273 Held-to-Maturity: U.S. Government and agency obligations $ 1,007 $ 18 $ (4 ) $ 1,021 Municipal bonds 191,777 1,433 (3,773 ) 189,437 Corporate bonds 3,771 — (20 ) 3,751 Mortgage-backed or related securities 62,144 — (2,259 ) 59,885 $ 258,699 $ 1,451 $ (6,056 ) $ 254,094 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Municipal bonds $ 100 $ 100 Corporate bonds 27,132 22,058 Equity securities 14 160 $ 27,246 $ 22,318 Available-for-Sale: U.S. Government and agency obligations $ 72,829 $ 68 $ (431 ) $ 72,466 Municipal bonds 68,513 665 (445 ) 68,733 Corporate bonds 5,431 6 (44 ) 5,393 Mortgage-backed or related securities 745,956 1,003 (7,402 ) 739,557 Asset-backed securities 27,667 184 (93 ) 27,758 Equity securities 5,716 10 (148 ) 5,578 $ 926,112 $ 1,936 $ (8,563 ) $ 919,485 Held-to-Maturity: U.S. Government and agency obligations $ 1,024 $ 29 $ — $ 1,053 Municipal bonds 189,860 3,385 (1,252 ) 191,993 Corporate bonds 3,978 7 — 3,985 Mortgage-backed or related securities 65,409 266 (518 ) 65,157 $ 260,271 $ 3,687 $ (1,770 ) $ 262,188 At September 30, 2018 and December 31, 2017 , 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, 2018 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 $ 101,146 $ (1,940 ) $ 27,397 $ (1,090 ) $ 128,543 $ (3,030 ) Municipal bonds 25,768 (358 ) 20,470 (662 ) 46,238 (1,020 ) Corporate bonds 3,837 (11 ) 293 (7 ) 4,130 (18 ) Mortgage-backed or related securities 902,556 (22,907 ) 270,846 (12,808 ) 1,173,402 (35,715 ) Asset-backed securities 1,102 (1 ) 9,891 (120 ) 10,993 (121 ) $ 1,034,409 $ (25,217 ) $ 328,897 $ (14,687 ) $ 1,363,306 $ (39,904 ) Held-to-Maturity U.S. Government and agency obligations $ 143 $ (4 ) $ — $ — $ 143 $ (4 ) Municipal bonds 59,854 (1,227 ) 33,614 (2,546 ) 93,468 (3,773 ) Corporate bonds 481 (20 ) — — 481 (20 ) Mortgage-backed or related securities 43,293 (1,457 ) 16,593 (802 ) 59,886 (2,259 ) $ 103,771 $ (2,708 ) $ 50,207 $ (3,348 ) $ 153,978 $ (6,056 ) December 31, 2017 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 $ 31,276 $ (211 ) $ 23,341 $ (220 ) $ 54,617 $ (431 ) Municipal bonds 20,879 (185 ) 13,360 (260 ) 34,239 (445 ) Corporate bonds 296 (4 ) 4,682 (40 ) 4,978 (44 ) Mortgage-backed or related securities 559,916 (5,138 ) 100,662 (2,264 ) 660,578 (7,402 ) Asset-backed securities — — 9,926 (93 ) 9,926 (93 ) Equity securities 5,480 (148 ) — — 5,480 (148 ) $ 617,847 $ (5,686 ) $ 151,971 $ (2,877 ) $ 769,818 $ (8,563 ) Held-to-Maturity Municipal bonds 21,839 (171 ) 34,314 (1,081 ) 56,153 (1,252 ) Mortgage-backed or related securities 38,023 (378 ) 4,434 (140 ) 42,457 (518 ) $ 59,862 $ (549 ) $ 38,748 $ (1,221 ) $ 98,610 $ (1,770 ) At September 30, 2018 , there were 336 securities—available-for-sale with unrealized losses, compared to 226 at December 31, 2017 . At September 30, 2018 , there were 113 securities—held-to-maturity with unrealized losses, compared to 66 at December 31, 2017 . Management does not believe that any individual unrealized loss as of September 30, 2018 or December 31, 2017 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. There were no sales of securities—trading during the nine -month periods ended September 30, 2018 or 2017. The Company did no t recognize any OTTI charges or recoveries on securities—trading during the nine -month periods ended September 30, 2018 or 2017. There were no securities—trading in a nonaccrual status at September 30, 2018 or December 31, 2017 . Net unrealized holding gains of $3.5 million were recognized during the nine months ended September 30, 2018 compared to $389,000 of net unrealized holdings gains recognized during the nine months ended September 30, 2017 . There were nine sales of securities—available-for-sale during the nine months ended September 30, 2018 , and partial calls of securities resulted in a net gain of $51,000 for the nine months ended September 30, 2018 . Sales of securities—available-for-sale totaled $35.6 million which resulted in a net gain of $230,000 for the nine months ended September 30, 2017 . There were no securities—available-for-sale in a nonaccrual status at September 30, 2018 or December 31, 2017 . There were no sales of securities—held-to-maturity during the nine -month periods ended September 30, 2018 and 2017 although there were partial calls of securities that resulted in a net gain of $2,000 for the nine months ended September 30, 2018 . There were no securities—held-to-maturity in a nonaccrual status at September 30, 2018 or December 31, 2017 . The amortized cost and estimated fair value of securities at September 30, 2018 , 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, 2018 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 $ 100 $ 100 $ 5,004 $ 4,990 $ 3,331 $ 3,322 Maturing after one year through five years — — 64,250 63,572 49,608 48,484 Maturing after five years through ten years — — 268,844 259,593 83,662 82,497 Maturing after ten years through twenty years 27,240 25,664 222,061 218,114 83,124 83,163 Maturing after twenty years — — 891,738 866,004 38,974 36,628 $ 27,340 $ 25,764 $ 1,451,897 $ 1,412,273 $ 258,699 $ 254,094 The following table presents, as of September 30, 2018 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): September 30, 2018 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 128,020 $ 128,101 $ 127,902 Interest rate swap counterparties 13,782 14,023 13,494 Repurchase agreements 128,991 132,361 128,991 Other 3,852 3,852 3,658 Total pledged securities $ 274,645 $ 278,337 $ 274,045 |
LOANS RECEIVABLE AND THE ALLOWA
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES Loans receivable at September 30, 2018 and December 31, 2017 are summarized as follows (dollars in thousands): September 30, 2018 December 31, 2017 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,271,363 16.2 % $ 1,284,363 16.9 % Investment properties 1,943,793 24.8 1,937,423 25.5 Multifamily real estate 309,809 3.9 314,188 4.1 Commercial construction 154,071 2.0 148,435 2.0 Multifamily construction 172,433 2.2 154,662 2.0 One- to four-family construction 498,549 6.4 415,327 5.5 Land and land development: Residential 171,610 2.2 164,516 2.2 Commercial 22,382 0.3 24,583 0.3 Commercial business 1,358,149 17.4 1,279,894 16.8 Agricultural business, including secured by farmland 359,966 4.6 338,388 4.4 One- to four-family residential 849,928 10.9 848,289 11.2 Consumer: Consumer secured by one- to four-family 539,143 6.9 522,931 6.9 Consumer—other 171,323 2.2 165,885 2.2 Total loans 7,822,519 100.0 % 7,598,884 100.0 % Less allowance for loan losses (95,263 ) (89,028 ) Net loans $ 7,727,256 $ 7,509,856 Loan amounts are net of unearned loan fees in excess of unamortized costs of $1.7 million as of September 30, 2018 and were net of unamortized costs of $158,000 as of December 31, 2017 . Net loans include net discounts on acquired loans of $15.4 million and $21.1 million as of September 30, 2018 and December 31, 2017 , 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 $20.7 million at September 30, 2018 and $32.5 million at December 31, 2017 . The carrying balance of PCI loans was $12.9 million at September 30, 2018 and $21.3 million at December 31, 2017 . The following table presents the changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance, beginning of period $ 6,109 $ 7,666 $ 6,520 $ 8,717 Accretion to interest income (2,907 ) (1,720 ) (4,738 ) (5,210 ) Disposals — — 58 (497 ) Reclassifications from non-accretable difference 1,873 918 3,235 3,854 Balance, end of period $ 5,075 $ 6,864 $ 5,075 $ 6,864 As of September 30, 2018 and December 31, 2017 , the non-accretable difference between the contractually required payments and cash flows expected to be collected was $6.9 million and $11.3 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 restructurings (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 September 30, 2018 and December 31, 2017 . 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, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,333 $ 2,907 $ 201 $ 20 Investment properties 7,247 1,249 5,637 277 Multifamily construction 479 — — — One- to four-family construction 1,297 1,297 — — Land and land development: Residential 1,134 798 — — Commercial business 3,925 3,008 384 17 Agricultural business/farmland 4,546 1,645 2,560 71 One- to four-family residential 7,302 3,227 4,021 64 Consumer: Consumer secured by one- to four-family 2,075 1,893 135 6 Consumer—other 191 106 66 2 $ 31,529 $ 16,130 $ 13,004 $ 457 December 31, 2017 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 7,807 $ 6,447 $ 199 $ 18 Investment properties 11,296 4,200 6,884 263 One- to four-family construction 298 298 — — Land and land development: Residential 1,134 798 — — Commercial business 4,441 3,424 555 50 Agricultural business/farmland 9,388 6,230 3,031 264 One- to four-family residential 9,547 3,709 5,775 178 Consumer: Consumer secured by one- to four-family 1,498 1,324 139 7 Consumer—other 134 58 73 2 $ 45,543 $ 26,488 $ 16,656 $ 782 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $10.3 million and $10.6 million , respectively, of homogenous and small balance loans as of September 30, 2018 and December 31, 2017 , 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 nine months ended September 30, 2018 and 2017 (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 $ 3,281 $ 3 $ 3,657 $ 3 Investment properties 6,808 79 8,849 37 Multifamily real estate — — 115 1 One- to four-family construction 991 — — — Land and land development: Residential 798 — 1,095 6 Commercial — — 928 — Commercial business 3,210 5 8,128 6 Agricultural business/farmland 4,218 23 6,196 69 One- to four-family residential 7,667 77 8,899 73 Consumer: Consumer secured by one- to four-family 1,841 5 1,608 2 Consumer—other 164 1 140 1 $ 28,978 $ 193 $ 39,615 $ 198 Nine Months Ended Nine Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 4,070 $ 8 $ 3,079 $ 7 Investment properties 8,114 237 8,393 124 Multifamily real estate — — 335 10 One- to four-family construction 637 4 524 27 Land and land development: Residential 1,059 10 1,574 42 Commercial — — 950 — Commercial business 3,474 17 5,838 63 Agricultural business/farmland 5,895 79 5,605 131 One- to four-family residential 8,261 237 9,602 240 Consumer: Consumer secured by one- to four-family 1,530 10 1,647 7 Consumer—other 151 3 194 5 $ 33,191 $ 605 $ 37,741 $ 656 Troubled Debt Restructurings. 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 September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Accrual Status Nonaccrual Status Total TDRs Accrual Nonaccrual Total Commercial real estate: Owner-occupied $ 201 $ 80 $ 281 $ 199 $ 87 $ 286 Investment properties 5,637 — 5,637 6,884 — 6,884 Commercial business 384 — 384 555 — 555 Agricultural business, including secured by farmland 2,560 — 2,560 3,129 29 3,158 One- to four-family residential 4,498 240 4,738 5,136 801 5,937 Consumer: Consumer secured by one- to four-family 135 — 135 139 — 139 Consumer—other 66 — 66 73 — 73 $ 13,481 $ 320 $ 13,801 $ 16,115 $ 917 $ 17,032 As of both September 30, 2018 and December 31, 2017 , the Company had commitments to advance additional funds related to TDRs up to $7,000 and $45,000 , respectively. No new TDRs occurred during the nine months ended September 30, 2018 or 2017 . 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, 2018 and 2017 . 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, 2018 . 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 September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,246,900 $ 10,037 $ 14,426 $ — $ — $ 1,271,363 Investment properties 1,935,890 — 7,903 — — 1,943,793 Multifamily real estate 309,490 — 319 — — 309,809 Commercial construction 154,071 — — — — 154,071 Multifamily construction 172,433 — — — — 172,433 One- to four-family construction 495,941 — 2,608 — — 498,549 Land and land development: Residential 160,046 10,766 798 — — 171,610 Commercial 19,607 — 2,775 — — 22,382 Commercial business 1,316,610 7,324 34,122 93 — 1,358,149 Agricultural business, including secured by farmland 346,176 4,589 9,201 — — 359,966 One- to four-family residential 844,853 518 4,557 — — 849,928 Consumer: Consumer secured by one- to four-family 534,780 900 3,463 — — 539,143 Consumer—other 171,016 10 297 — — 171,323 Total $ 7,707,813 $ 34,144 $ 80,469 $ 93 $ — $ 7,822,519 December 31, 2017 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,246,125 $ 12,227 $ 26,011 $ — $ — $ 1,284,363 Investment properties 1,918,940 9,118 9,365 — — 1,937,423 Multifamily real estate 313,432 — 756 — — 314,188 Commercial construction 148,435 — — — — 148,435 Multifamily construction 154,662 — — — — 154,662 One- to four-family construction 411,802 — 3,525 — — 415,327 Land and land development: Residential 153,073 10,554 889 — — 164,516 Commercial 21,665 — 2,918 — — 24,583 Commercial business 1,213,365 12,135 54,282 112 — 1,279,894 Agricultural business, including secured by farmland 321,110 3,852 13,426 — — 338,388 One- to four-family residential 842,304 569 5,416 — — 848,289 Consumer: Consumer secured by one- to four-family 520,675 — 2,256 — — 522,931 Consumer—other 165,594 13 278 — — 165,885 Total $ 7,431,182 $ 48,468 $ 119,122 $ 112 $ — $ 7,598,884 (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, 2018 and December 31, 2017 , in the commercial business category, $583.7 million and $296.8 million , respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated. The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 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 $ — $ 160 $ 2,334 $ 2,494 $ 5,369 $ 1,263,500 $ 1,271,363 $ 23 $ 2,884 Investment properties 309 233 1,155 1,697 3,000 1,939,096 1,943,793 405 844 Multifamily real estate — — — — 142 309,667 309,809 — — Commercial construction — — — — — 154,071 154,071 — — Multifamily construction — — — — — 172,433 172,433 — — One-to-four-family construction — 1,208 378 1,586 461 496,502 498,549 — 1,297 Land and land development: Residential 703 — 798 1,501 — 170,109 171,610 — 798 Commercial — — — — 2,775 19,607 22,382 — — Commercial business 2,100 480 1,821 4,401 621 1,353,127 1,358,149 87 2,921 Agricultural business, including secured by farmland 165 — 1,639 1,804 398 357,764 359,966 — 1,645 One- to four-family residential 95 586 2,011 2,692 111 847,125 849,928 1,076 1,827 Consumer: Consumer secured by one- to four-family 1,878 693 1,294 3,865 — 535,278 539,143 282 1,611 Consumer—other 351 173 60 584 67 170,672 171,323 14 92 Total $ 5,601 $ 3,533 $ 11,490 $ 20,624 $ 12,944 $ 7,788,951 $ 7,822,519 $ 1,887 $ 13,919 December 31, 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 $ 5,323 $ 76 $ 5,490 $ 10,889 $ 7,682 $ 1,265,792 $ 1,284,363 $ — $ 6,447 Investment properties 1,737 — 4,096 5,833 7,166 1,924,424 1,937,423 — 4,199 Multifamily real estate 105 — — 105 169 313,914 314,188 — — Commercial construction — — — — — 148,435 148,435 — — Multifamily construction 3,416 — — 3,416 — 151,246 154,662 — — One-to-four-family construction 4,892 725 298 5,915 446 408,966 415,327 298 — Land and land development: Residential — — 798 798 — 163,718 164,516 — 798 Commercial — — — — 2,919 21,664 24,583 — — Commercial business 1,574 404 2,577 4,555 2,159 1,273,180 1,279,894 18 3,406 Agricultural business, including secured by farmland 598 533 2,017 3,148 565 334,675 338,388 — 6,132 One-to four-family residential 4,475 1,241 2,715 8,431 136 839,722 848,289 1,085 3,264 Consumer: Consumer secured by one- to four-family 1,355 62 713 2,130 — 520,801 522,931 85 1,239 Consumer—other 609 136 15 760 68 165,057 165,885 — 58 Total $ 24,084 $ 3,177 $ 18,719 $ 45,980 $ 21,310 $ 7,531,594 $ 7,598,884 $ 1,486 $ 25,543 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, 2018 and 2017 (in thousands): For the Three Months Ended September 30, 2018 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 $ 24,413 $ 3,718 $ 27,034 $ 19,141 $ 3,162 $ 3,932 $ 5,725 $ 6,750 $ 93,875 Provision for loan losses 824 27 (1,996 ) (1,306 ) 348 432 2,600 1,071 2,000 Recoveries 12 — 5 586 — 86 46 — 735 Charge-offs (102 ) — (479 ) (473 ) (5 ) (27 ) (261 ) — (1,347 ) Ending balance $ 25,147 $ 3,745 $ 24,564 $ 17,948 $ 3,505 $ 4,423 $ 8,110 $ 7,821 $ 95,263 For the Nine Months Ended September 30, 2018 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 $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 Provision for loan losses 1,144 2,112 (2,715 ) 148 (248 ) 1,679 4,777 (897 ) 6,000 Recoveries 1,580 — 190 856 41 732 264 — 3,663 Charge-offs (401 ) — (479 ) (1,367 ) (341 ) (43 ) (797 ) — (3,428 ) Ending balance $ 25,147 $ 3,745 $ 24,564 $ 17,948 $ 3,505 $ 4,423 $ 8,110 $ 7,821 $ 95,263 September 30, 2018 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 $ 297 $ — $ — $ 17 $ 71 $ 64 $ 8 $ — $ 457 Collectively evaluated for impairment 24,850 3,745 24,564 17,908 3,372 4,359 8,102 7,821 94,721 Purchased credit-impaired loans — — — 23 62 — — — 85 Total allowance for loan losses $ 25,147 $ 3,745 $ 24,564 $ 17,948 $ 3,505 $ 4,423 $ 8,110 $ 7,821 $ 95,263 Loan balances: Individually evaluated for impairment $ 8,769 $ — $ 1,669 $ 384 $ 3,298 $ 4,497 $ 201 $ — $ 18,818 Collectively evaluated for impairment 3,198,018 309,667 1,014,140 1,357,144 356,270 845,320 710,198 — 7,790,757 Purchased credit-impaired loans 8,369 142 3,236 621 398 111 67 — 12,944 Total loans $ 3,215,156 $ 309,809 $ 1,019,045 $ 1,358,149 $ 359,966 $ 849,928 $ 710,466 $ — $ 7,822,519 For the Three Months Ended September 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 $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 Provision for loan losses (236 ) 63 2,037 (555 ) 1,141 22 117 (589 ) 2,000 Recoveries 19 — 73 577 1 8 98 — 776 Charge-offs (584 ) — — (491 ) (1,001 ) — (186 ) — (2,262 ) Ending balance $ 23,431 $ 1,625 $ 29,422 $ 18,657 $ 3,949 $ 2,040 $ 4,016 $ 5,960 $ 89,100 For the Nine Months Ended September 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 2,716 254 (6,010 ) 4,489 2,113 (460 ) 488 2,410 6,000 Recoveries 353 11 1,180 921 133 262 293 — 3,153 Charge-offs (631 ) — — (3,286 ) (1,264 ) — (869 ) — (6,050 ) Ending balance $ 23,431 $ 1,625 $ 29,422 $ 18,657 $ 3,949 $ 2,040 $ 4,016 $ 5,960 $ 89,100 September 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 $ 263 $ — $ 67 $ 52 $ 196 $ 184 $ 11 $ — $ 773 Collectively evaluated for impairment 23,168 1,625 29,348 18,605 3,753 1,856 4,005 5,960 88,320 Purchased credit-impaired loans — — 7 — — — — — 7 Total allowance for loan losses $ 23,431 $ 1,625 $ 29,422 $ 18,657 $ 3,949 $ 2,040 $ 4,016 $ 5,960 $ 89,100 Loan balances: Individually evaluated for impairment $ 13,866 $ — $ 1,871 $ 5,899 $ 6,495 $ 5,182 $ 218 $ — $ 33,531 Collectively evaluated for impairment 3,332,724 311,533 872,783 1,302,902 332,754 864,109 700,892 — 7,717,697 Purchased credit impaired loans 15,684 173 3,759 2,608 683 265 49 — 23,221 Total loans $ 3,362,274 $ 311,706 $ 878,413 $ 1,311,409 $ 339,932 $ 869,556 $ 701,159 $ — $ 7,774,449 |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 , intangible assets are comprised of goodwill, CDI, and favorable leasehold intangibles (LHI) acquired in business combinations. Goodwill represents the excess of the purchase consideration 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 at least annually for impairment. At December 31, 2017, 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. CDI represents the value of transaction-related deposits and the value of the customer relationships associated with the deposits. 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 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, 2018 and the year ended December 31, 2017 (in thousands): Goodwill CDI LHI Total Balance, December 31, 2016 $ 244,583 $ 29,701 $ 461 $ 274,745 Amortization — (6,247 ) (184 ) (6,431 ) Other changes (1) (1,924 ) (1,076 ) — (3,000 ) Balance, December 31, 2017 242,659 22,378 277 265,314 Amortization — (4,112 ) (44 ) (4,156 ) Balance, September 30, 2018 $ 242,659 $ 18,266 $ 233 $ 261,158 (1) Goodwill and CDI were adjusted for the sale of the Utah branches in 2017. The following table presents the estimated amortization expense with respect to CDI for the periods indicated (in thousands): Estimated Amortization Remainder of 2018 $ 1,348 2019 4,659 2020 3,976 2021 3,291 2022 2,511 Thereafter 2,481 $ 18,266 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 within mortgage banking operations 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, 2018 and 2017 , 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 $2.30 billion and $2.19 billion at September 30, 2018 and December 31, 2017 , respectively. Custodial accounts maintained in connection with this servicing totaled $24.2 million and $10.2 million at September 30, 2018 and December 31, 2017 , respectively. An analysis of our mortgage servicing rights for the three and nine months ended September 30, 2018 and 2017 is presented below (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance, beginning of the period $ 14,521 $ 14,985 $ 14,738 $ 15,249 Additions—amounts capitalized 952 826 2,636 2,477 Additions—through purchase 47 — 92 — Amortization (1) (999 ) (1,057 ) (2,945 ) (2,972 ) Balance, end of the period (2) $ 14,521 $ 14,754 $ 14,521 $ 14,754 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. (2) There was no valuation allowance as of September 30, 2018 and 2017 . |
REAL ESTATE OWNED, NET
REAL ESTATE OWNED, NET | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance, beginning of the period $ 473 $ 2,427 $ 360 $ 11,081 Additions from loan foreclosures — — 502 46 Additions from capitalized costs — — — 54 Proceeds from dispositions of REO (90 ) (961 ) (385 ) (11,382 ) Gain on sale of REO 8 30 74 1,953 Valuation adjustments in the period (27 ) — (187 ) (256 ) Balance, end of the period $ 364 $ 1,496 $ 364 $ 1,496 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, 2018 and December 31, 2017 , the Company had $46,000 and $0 , respectively, 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 $901,000 at September 30, 2018 compared with $2.0 million at December 31, 2017. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS Deposits consisted of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Non-interest-bearing accounts $ 3,469,294 $ 3,265,544 Interest-bearing checking 1,034,678 971,137 Regular savings accounts 1,627,560 1,557,500 Money market accounts 1,373,618 1,422,313 Total interest-bearing transaction and saving accounts 4,035,856 3,950,950 Certificates of deposit: Certificates of deposit less than or equal to $250,000 1,026,984 813,997 Certificates of deposit greater than $250,000 153,690 152,940 Total certificates of deposit (1) 1,180,674 966,937 Total deposits $ 8,685,824 $ 8,183,431 Included in total deposits: Public fund transaction and savings accounts $ 187,759 $ 198,719 Public fund interest-bearing certificates 25,367 23,685 Total public deposits $ 213,126 $ 222,404 Total brokered deposits $ 325,154 $ 57,228 (1) Certificates of deposit include $0 and $11,000 of acquisition premiums at September 30, 2018 and December 31, 2017 , respectively. At September 30, 2018 and December 31, 2017 , the Company had certificates of deposit of $157.7 million and $155.9 million , respectively, that were equal to or greater than $250,000. Scheduled maturities and weighted average interest rates of certificate accounts at September 30, 2018 are as follows (dollars in thousands): September 30, 2018 Amount Weighted Average Rate Maturing in one year or less $ 879,988 1.08 % Maturing after one year through two years 174,336 1.11 Maturing after two years through three years 97,508 1.45 Maturing after three years through four years 15,864 1.21 Maturing after four years through five years 10,676 1.54 Maturing after five years 2,302 1.07 Total certificates of deposit $ 1,180,674 1.12 % |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 , whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands): September 30, 2018 December 31, 2017 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 248,661 $ 248,661 $ 261,200 $ 261,200 Securities—trading 2,3 25,764 25,764 22,318 22,318 Securities—available-for-sale 2 1,412,273 1,412,273 919,485 919,485 Securities—held-to-maturity 2 255,429 250,824 256,793 258,710 Securities—held-to-maturity 3 3,270 3,270 3,478 3,478 Loans held for sale 2 72,850 72,924 40,725 40,923 Loans receivable 3 7,822,519 7,693,348 7,598,884 7,445,990 FHLB stock 3 19,196 19,196 10,334 10,334 Bank-owned life insurance 1 163,265 163,265 162,668 162,668 Mortgage servicing rights 3 14,521 23,890 14,738 19,835 Equity securities 1 416 416 — — Derivatives: Interest rate swaps 2 6,385 6,385 5,083 5,083 Interest rate lock and forward sales commitments 2 580 580 523 523 Liabilities: Demand, interest checking and money market accounts 2 5,877,590 5,877,590 5,658,994 5,658,994 Regular savings 2 1,627,560 1,627,560 1,557,500 1,557,500 Certificates of deposit 2 1,180,674 1,164,982 966,937 947,517 FHLB advances 2 221,184 221,184 202 202 Other borrowings 2 98,979 98,979 95,860 95,860 Junior subordinated debentures 3 113,110 113,110 98,707 98,707 Derivatives: Interest rate swaps 2 6,385 6,385 5,083 5,083 Interest rate lock and forward sales commitments 2 24 24 201 201 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, 2018 and December 31, 2017 (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Assets: Securities—trading Municipal bonds $ — $ 100 $ — $ 100 Corporate bonds (Trust Preferred Securities) — — 25,664 25,664 — 100 25,664 25,764 Securities—available-for-sale U.S. Government and agency obligations — 136,308 — 136,308 Municipal bonds — 65,986 — 65,986 Corporate bonds — 5,040 — 5,040 Mortgage-backed or related securities — 1,182,518 — 1,182,518 Asset-backed securities — 22,421 — 22,421 — 1,412,273 — 1,412,273 Loans held for sale — 67,128 — 67,128 Equity securities — 416 — 416 Derivatives Interest rate swaps — 6,385 — 6,385 Interest rate lock and forward sales commitments — 580 — 580 $ — $ 1,486,882 $ 25,664 $ 1,512,546 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 113,110 $ 113,110 Derivatives Interest rate swaps — 6,385 — 6,385 Interest rate lock and forward sales commitments — 24 — 24 $ — $ 6,409 $ 113,110 $ 119,519 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Securities—trading Municipal bonds $ — $ 100 $ — $ 100 Corporate bonds (Trust Preferred Securities) — — 22,058 22,058 Equity securities — 160 — 160 — 260 22,058 22,318 Securities—available-for-sale U.S. Government and agency obligations — 72,466 — 72,466 Municipal bonds — 68,733 — 68,733 Corporate bonds — 5,393 — 5,393 Mortgage-backed securities — 739,557 — 739,557 Asset-backed securities — 27,758 — 27,758 Equity securities — 5,578 — 5,578 — 919,485 — 919,485 Loans held for sale — 32,392 — 32,392 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 523 — 523 $ — $ 957,743 $ 22,058 $ 979,801 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 98,707 $ 98,707 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 201 — 201 $ — $ 5,284 $ 98,707 $ 103,991 The following methods were used to estimate the fair value of each class of financial instruments above: 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 based on discounted cash flows using as a discount rate a combination of market spreads for similar loan types added to selected index rates. 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. Junior Subordinated Debentures: The fair value of junior subordinated debentures is estimated using a discounted cash flow approach. 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 assist management in validating 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. 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, 2018 and December 31, 2017 . 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 non-recurring basis at September 30, 2018 and December 31, 2017 : Weighted Average Rate / Range Financial Instruments Valuation Techniques Unobservable Inputs September 30, 2018 December 31, 2017 Corporate bonds (TPS securities) Discounted cash flows Discount rate 6.40 % 6.69 % Junior subordinated debentures Discounted cash flows Discount rate 6.40 % 6.69 % Impaired loans Collateral Valuations Discount to appraised value 8.5% to 20.0% 8.5% to 20.0% REO Appraisals Discount to appraised value 63.9 % 42.0 % 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, 2018 , or the passage of time, will result in negative fair value adjustments. At September 30, 2018 , the discount rate utilized was based on a credit spread of 400 basis points and three-month LIBOR of 240 basis points. The following tables provide 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, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures TPS Securities Borrowings— Junior Subordinated Debentures Beginning balance $ 25,540 $ 112,774 $ 22,058 $ 98,707 Total gains or losses recognized Assets gains 86 — 3,568 — Liabilities losses (1) — 336 — 14,403 Ending balance at September 30, 2018 $ 25,626 $ 113,110 $ 25,626 $ 113,110 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures TPS Securities Borrowings— Junior Subordinated Debentures Beginning balance $ 21,568 $ 96,852 $ 21,143 $ 95,200 Total gains or losses recognized Assets gains 107 — 532 — Liabilities losses — 428 — 2,080 Ending balance at September 30, 2017 $ 21,675 $ 97,280 $ 21,675 $ 97,280 (1) The change in fair value on the junior subordinated debentures in 2018 is recorded in other comprehensive income (loss). The Company has elected to continue to recognize the interest income and dividends from the securities reclassified to fair value from securities available-for-sale 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 junior subordinated debentures continues to be measured based on contractual interest rates and reported in interest expense. The change in fair market value on TPS securities and on junior subordinated debentures prior to 2018 has been recorded as a component of non-interest income. Beginning in 2018, the change in fair value of the junior subordinated debentures, which represents changes in instrument specific credit risk, is recorded in other comprehensive income (loss). 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, 2018 and December 31, 2017 (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,488 $ 1,488 REO — — 364 364 December 31, 2017 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 6,535 $ 6,535 REO — — 360 360 The following table presents the losses resulting from non-recurring fair value adjustments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Impaired loans $ (102 ) $ (1,584 ) $ (431 ) $ (2,059 ) REO (27 ) — (187 ) (256 ) Total loss from non-recurring measurements $ (129 ) $ (1,584 ) $ (618 ) $ (2,315 ) 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, 2018 | |
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, 2018 , 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 the U.S. federal jurisdiction and in the Oregon, California, Utah, Idaho and Montana state jurisdictions. In December 2017, the federal government enacted the 2017 Tax Act, which among other provisions, reduced the federal marginal corporate income tax rate from 35% to 21%. As a result of the passage of the 2017 Tax Act, the Company recorded a $42.6 million charge in December 2017, for the revaluation of its net deferred tax to account for the future impact of the decrease in the corporate income tax rate and other provisions of the legislation. The charge was recorded as an increase to tax expense and reduction of the net deferred asset. The Company’s 2017 financial results reflected the income tax effects of the 2017 Tax Act for which the accounting was complete and provisional amounts for those specific income tax effects of the 2017 Tax Act for which the accounting is incomplete but a reasonable estimate could be determined. As a result, these amounts could be adjusted during the measurement period, which will end in December 2018. The Company did not identify any items for which the income tax effects of the 2017 Tax Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017. The $42.6 million charge recorded by the Company includes $4.2 million of provisional income tax expense related to Alternative Minimum Tax (AMT) credits that are limited under Section 383 of the Internal Revenue Code of 1986 (Code), which resulted in a reduction in the AMT deferred tax asset. The utilization of the limited AMT credits under the refundable AMT credit law is uncertain and will require further analysis as guidance is released during 2018. No adjustment to the provisional amounts was recorded during the nine months ended September 30, 2018 . 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, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Tax credit investments $ 8,648 $ 7,311 Unfunded commitments—tax credit investments 4,361 4,417 The following table presents other information related to the Company's tax credit investments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Tax credits and other tax benefits recognized $ 364 $ 285 $ 1,092 $ 855 Tax credit amortization expense included in provision for income taxes 288 199 863 597 |
CALCULATION OF WEIGHTED AVERAGE
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) | 9 Months Ended |
Sep. 30, 2018 | |
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 average shares outstanding used to calculate earnings per share data (in thousands, except shares and per share data): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income $ 37,773 $ 25,077 $ 98,987 $ 74,324 Basic weighted average shares outstanding 32,256,789 32,982,532 32,300,688 32,966,214 Plus unvested restricted stock 119,834 96,567 105,726 94,958 Diluted weighted shares outstanding 32,376,623 33,079,099 32,406,414 33,061,172 Earnings per common share Basic $ 1.17 $ 0.76 $ 3.06 $ 2.25 Diluted $ 1.17 $ 0.76 $ 3.05 $ 2.25 As of September 30, 2018 , 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, 2018 | |
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). • 2018 Omnibus Incentive Plan (the 2018 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, 2018 , the Company had granted 269,863 shares of restricted stock from the 2012 Restricted Stock Plan (as amended and restated), of which 261,638 shares had vested and 8,225 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 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, 2018 , 340,163 restricted stock shares and 184,197 restricted stock units have been granted under the 2014 Plan of which 170,769 restricted stock shares and 34,975 restricted stock units have vested. 2018 Omnibus Incentive Plan The 2018 Plan was approved by shareholders on April 24, 2018. The 2018 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 reserved 900,000 shares of common stock for issuance under the 2018 Plan in connection with the exercise of awards. As of September 30, 2018 , no shares have been granted under the 2018 Plan. The expense associated with all restricted stock grants (including restricted stock shares and restricted stock units) was $1.6 million and $4.8 million for the three and nine month periods ended September 30, 2018 and $1.6 million and $4.2 million for the three and nine month periods ended September 30, 2017 , respectively. Unrecognized compensation expense for these awards as of September 30, 2018 was $10.9 million and will be amortized over the next 31 months . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments — The Company leases 117 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, 2018 December 31, 2017 Commitments to extend credit $ 2,650,671 $ 2,300,593 Standby letters of credit and financial guarantees 15,129 14,579 Commitments to originate loans 61,465 56,030 Risk participation agreement 4,108 11,451 Derivatives also included in Note 14: Commitments to originate loans held for sale 58,308 48,091 Commitments to sell loans secured by one- to four-family residential properties 25,802 17,837 Commitments to sell securities related to mortgage banking activities 103,100 57,000 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 $2.4 million at both September 30, 2018 and December 31, 2017 . 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 Company 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 Company. 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, 2018 or September 30, 2017 . 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, 2018 . 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 Banks 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, 2018 | |
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 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, 2018 and December 31, 2017 , 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, 2018 December 31, 2017 September 30, 2018 December 31, 2017 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 $ 4,070 $ 257 $ 4,350 $ 447 $ 4,070 $ 257 $ 4,350 $ 447 (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 locks in a fixed rate and the Bank receives a variable 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 one- to four-family and multifamily 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 interest rate lock commitments with potential borrowers to originate one- to four-family loans that are intended to be sold and for closed one- to four-family and multifamily mortgage loans held for sale that are awaiting sale and delivery into the secondary market. The Company attempts to economically hedge the risk of changing interest rates associated with these mortgage loan commitments by entering into forward sales contracts to sell one- to four-family and multifamily mortgage loans or mortgage-backed securities to broker/dealers as specific prices and dates. As of September 30, 2018 and December 31, 2017 , 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, 2018 December 31, 2017 September 30, 2018 December 31, 2017 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 $ 280,872 $ 6,128 $ 285,047 $ 4,636 $ 280,872 $ 6,128 $ 285,047 $ 4,636 Mortgage loan commitments 39,104 212 29,739 225 24,926 24 13,763 153 Forward sales contracts 128,902 368 43,069 298 — — 47,000 48 $ 448,878 $ 6,708 $ 357,855 $ 5,159 $ 305,798 $ 6,152 $ 345,810 $ 4,837 (1) Included in Other assets on the Consolidated Statements of Financial Condition, with the exception of certain interest swaps and mortgage loan commitments (with a fair value of $420,000 at September 30, 2018 and $499,000 at December 31, 2017 ), which are included in Loans receivable. (2) Included in Other liabilities on the Consolidated Statements of Financial Condition. Gains (losses) recognized in income on derivatives not designated in hedge relationships for the three and nine months ended September 30, 2018 and 2017 were as follows (in thousands): Location on Consolidated Statements of Operations Three Months Ended Nine Months Ended 2018 2017 2018 2017 Mortgage loan commitments Mortgage banking operations $ (177 ) $ 50 $ (13 ) $ 235 Forward sales contracts Mortgage banking operations 325 (398 ) 594 (654 ) $ 148 $ (348 ) $ 581 $ (419 ) 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, 2018 or December 31, 2017 , it could have been required to settle its obligations under the agreements at the termination value. As of September 30, 2018 and December 31, 2017 , the termination value of derivatives in a net liability position related to these agreements was $345,000 and $3.7 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 $16.0 million and $16.9 million as of September 30, 2018 and December 31, 2017 , 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 tables illustrate 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, 2018 and December 31, 2017 (in thousands): September 30, 2018 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 $ 6,385 $ — $ 6,385 $ — $ — $ 6,385 $ 6,385 $ — $ 6,385 $ — $ — $ 6,385 Derivative liabilities Interest rate swaps $ 6,385 $ — $ 6,385 $ — $ (295 ) $ 6,090 $ 6,385 $ — $ 6,385 $ — $ (295 ) $ 6,090 December 31, 2017 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 $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 Derivative liabilities Interest rate swaps $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue: Deposit fees and other service charges for the three and nine months ended September 30, 2018 and 2017 are summarized as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Deposit service charges $ 4,501 $ 4,296 $ 13,348 $ 12,589 Debit and credit interchange fees 8,146 7,301 23,337 21,027 Debit and credit card expense (2,166 ) (1,956 ) (6,069 ) (5,481 ) Merchant services income 5,347 2,771 7,747 7,511 Merchant services expenses (4,544 ) (2,258 ) (5,899 ) (6,128 ) Other service charges 971 904 3,071 3,093 Total deposit fees and other service charges $ 12,255 $ 11,058 $ 35,535 $ 32,611 Deposit fees and other service charges Deposit fees and other service charges include transaction and non-transaction based deposit fees. Transaction based fees on deposit accounts are charged to deposit customers for specific services provided to the customer. These fees include such items as wire fees, official check fees, and overdraft fees. These are contract specific to each individual transaction and do not extend beyond the individual transaction. The performance obligation is completed and the fees are recognized at the time the specific transactional service is provided to the customer. Non-transactional deposit fees are typically monthly account maintenance fees charged on deposit accounts. These are day-to-day contracts that can be canceled by either party without notice. The performance obligation is satisfied and the fees are recognized on a monthly basis after the service period is completed. Debit and credit card interchange income and expenses Debit and credit card interchange income represent fees earned when a credit or debit card issued by the Banks is used to purchase goods or services at a merchant. The merchant's bank pays the Banks a default interchange rate set by MasterCard on a transaction by transaction basis. The merchant acquiring bank can stop accepting the Banks’ cards at any time and the Banks can stop further use of cards issued by them at any time. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the Banks cardholders’ card. Direct expenses associated with the credit and debit card are recorded as a net reduction against the interchange income. Merchant services income Merchant services income represents fees earned by the Banks for card payment services provided to its merchant customers. The Banks have a contract with a third party to provide card payment services to the Banks’ merchants that contract for those services. The third party provider has contracts with the Banks’ merchants to provide the card payment services. The Banks do not have a direct contractual relationship with its merchants for these services. The Banks set the rates for the services provided by the third party. The third party provider passes the payments made by the Banks’ merchants through to the Banks. The Banks, in turn, pay the third party provider for the services it provides to the Banks’ merchants. These payments to the third party provider are recorded as expenses as a net reduction against fee income. In addition, a portion of the payment received by the Banks represents interchange fees which are passed through to the card issuing bank. Income is primarily earned based on the dollar volume and number of transactions processed. The performance obligation is satisfied and the related fee is earned when each payment is accepted by the processing network. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated 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 condensed consolidated 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, 2018 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 2017 Consolidated Financial Statements and/or schedules to conform to the 2018 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, 2017 filed with the SEC (2017 Form 10-K). There have been no significant changes in our application of these accounting policies during the first nine months of 2018 , except as described in Note 2. The information included in this Form 10-Q should be read in conjunction with our 2017 Form 10-K. Interim results are not necessarily indicative of results for a full year or any other interim period. |
ACCOUNTING STANDARDS RECENTLY_2
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Impact of new revenue standard on Consolidated Statements of Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table presents the impact of adopting of the new revenue standard on our Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017, respectively (in thousands): For the three months ended September 30, 2018 For the three months ended September 30, 2017 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: Deposit fees and other service charges $ 12,255 $ 16,799 $ (4,544 ) $ 11,058 $ 13,316 $ (2,258 ) Non-interest expense: Payment and card processing expenses $ 3,748 $ 8,292 $ (4,544 ) $ 3,581 $ 5,839 $ (2,258 ) For the nine months ended September 30, 2018 For the nine months ended September 30, 2017 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: Deposit fees and other service charges $ 35,535 $ 41,434 $ (5,899 ) $ 32,611 $ 38,739 $ (6,128 ) Non-interest expense: Payment and card processing expenses $ 11,179 $ 17,078 $ (5,899 ) $ 10,523 $ 16,651 $ (6,128 ) |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 are summarized as follows (in thousands): September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Municipal bonds $ 100 $ 100 Corporate bonds 27,240 25,664 $ 27,340 $ 25,764 Available-for-Sale: U.S. Government and agency obligations $ 139,329 $ 9 $ (3,030 ) $ 136,308 Municipal bonds 66,854 152 (1,020 ) 65,986 Corporate bonds 5,054 4 (18 ) 5,040 Mortgage-backed or related securities 1,218,204 29 (35,715 ) 1,182,518 Asset-backed securities 22,456 86 (121 ) 22,421 $ 1,451,897 $ 280 $ (39,904 ) $ 1,412,273 Held-to-Maturity: U.S. Government and agency obligations $ 1,007 $ 18 $ (4 ) $ 1,021 Municipal bonds 191,777 1,433 (3,773 ) 189,437 Corporate bonds 3,771 — (20 ) 3,751 Mortgage-backed or related securities 62,144 — (2,259 ) 59,885 $ 258,699 $ 1,451 $ (6,056 ) $ 254,094 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Municipal bonds $ 100 $ 100 Corporate bonds 27,132 22,058 Equity securities 14 160 $ 27,246 $ 22,318 Available-for-Sale: U.S. Government and agency obligations $ 72,829 $ 68 $ (431 ) $ 72,466 Municipal bonds 68,513 665 (445 ) 68,733 Corporate bonds 5,431 6 (44 ) 5,393 Mortgage-backed or related securities 745,956 1,003 (7,402 ) 739,557 Asset-backed securities 27,667 184 (93 ) 27,758 Equity securities 5,716 10 (148 ) 5,578 $ 926,112 $ 1,936 $ (8,563 ) $ 919,485 Held-to-Maturity: U.S. Government and agency obligations $ 1,024 $ 29 $ — $ 1,053 Municipal bonds 189,860 3,385 (1,252 ) 191,993 Corporate bonds 3,978 7 — 3,985 Mortgage-backed or related securities 65,409 266 (518 ) 65,157 $ 260,271 $ 3,687 $ (1,770 ) $ 262,188 |
Schedule of Securities with Continuous Loss Position | At September 30, 2018 and December 31, 2017 , 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, 2018 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 $ 101,146 $ (1,940 ) $ 27,397 $ (1,090 ) $ 128,543 $ (3,030 ) Municipal bonds 25,768 (358 ) 20,470 (662 ) 46,238 (1,020 ) Corporate bonds 3,837 (11 ) 293 (7 ) 4,130 (18 ) Mortgage-backed or related securities 902,556 (22,907 ) 270,846 (12,808 ) 1,173,402 (35,715 ) Asset-backed securities 1,102 (1 ) 9,891 (120 ) 10,993 (121 ) $ 1,034,409 $ (25,217 ) $ 328,897 $ (14,687 ) $ 1,363,306 $ (39,904 ) Held-to-Maturity U.S. Government and agency obligations $ 143 $ (4 ) $ — $ — $ 143 $ (4 ) Municipal bonds 59,854 (1,227 ) 33,614 (2,546 ) 93,468 (3,773 ) Corporate bonds 481 (20 ) — — 481 (20 ) Mortgage-backed or related securities 43,293 (1,457 ) 16,593 (802 ) 59,886 (2,259 ) $ 103,771 $ (2,708 ) $ 50,207 $ (3,348 ) $ 153,978 $ (6,056 ) December 31, 2017 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 $ 31,276 $ (211 ) $ 23,341 $ (220 ) $ 54,617 $ (431 ) Municipal bonds 20,879 (185 ) 13,360 (260 ) 34,239 (445 ) Corporate bonds 296 (4 ) 4,682 (40 ) 4,978 (44 ) Mortgage-backed or related securities 559,916 (5,138 ) 100,662 (2,264 ) 660,578 (7,402 ) Asset-backed securities — — 9,926 (93 ) 9,926 (93 ) Equity securities 5,480 (148 ) — — 5,480 (148 ) $ 617,847 $ (5,686 ) $ 151,971 $ (2,877 ) $ 769,818 $ (8,563 ) Held-to-Maturity Municipal bonds 21,839 (171 ) 34,314 (1,081 ) 56,153 (1,252 ) Mortgage-backed or related securities 38,023 (378 ) 4,434 (140 ) 42,457 (518 ) $ 59,862 $ (549 ) $ 38,748 $ (1,221 ) $ 98,610 $ (1,770 ) |
Schedule of Securities by Contractual Maturity Date | The amortized cost and estimated fair value of securities at September 30, 2018 , 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, 2018 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 $ 100 $ 100 $ 5,004 $ 4,990 $ 3,331 $ 3,322 Maturing after one year through five years — — 64,250 63,572 49,608 48,484 Maturing after five years through ten years — — 268,844 259,593 83,662 82,497 Maturing after ten years through twenty years 27,240 25,664 222,061 218,114 83,124 83,163 Maturing after twenty years — — 891,738 866,004 38,974 36,628 $ 27,340 $ 25,764 $ 1,451,897 $ 1,412,273 $ 258,699 $ 254,094 |
Schedule of Pledged Securities | The following table presents, as of September 30, 2018 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): September 30, 2018 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 128,020 $ 128,101 $ 127,902 Interest rate swap counterparties 13,782 14,023 13,494 Repurchase agreements 128,991 132,361 128,991 Other 3,852 3,852 3,658 Total pledged securities $ 274,645 $ 278,337 $ 274,045 |
LOANS RECEIVABLE AND THE ALLO_2
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Loans Receivable, Including Loans Held for Sale | Loans receivable at September 30, 2018 and December 31, 2017 are summarized as follows (dollars in thousands): September 30, 2018 December 31, 2017 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,271,363 16.2 % $ 1,284,363 16.9 % Investment properties 1,943,793 24.8 1,937,423 25.5 Multifamily real estate 309,809 3.9 314,188 4.1 Commercial construction 154,071 2.0 148,435 2.0 Multifamily construction 172,433 2.2 154,662 2.0 One- to four-family construction 498,549 6.4 415,327 5.5 Land and land development: Residential 171,610 2.2 164,516 2.2 Commercial 22,382 0.3 24,583 0.3 Commercial business 1,358,149 17.4 1,279,894 16.8 Agricultural business, including secured by farmland 359,966 4.6 338,388 4.4 One- to four-family residential 849,928 10.9 848,289 11.2 Consumer: Consumer secured by one- to four-family 539,143 6.9 522,931 6.9 Consumer—other 171,323 2.2 165,885 2.2 Total loans 7,822,519 100.0 % 7,598,884 100.0 % Less allowance for loan losses (95,263 ) (89,028 ) Net loans $ 7,727,256 $ 7,509,856 Loan amounts are net of unearned loan fees in excess of unamortized costs of $1.7 million as of September 30, 2018 and were net of unamortized costs of $158,000 as of December 31, 2017 . Net loans include net discounts on acquired loans of $15.4 million and $21.1 million as of September 30, 2018 and December 31, 2017 , respectively. |
Schedule of Purchased Credit-Impaired Loans, Changes in Accretable Yield | The following table presents the changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance, beginning of period $ 6,109 $ 7,666 $ 6,520 $ 8,717 Accretion to interest income (2,907 ) (1,720 ) (4,738 ) (5,210 ) Disposals — — 58 (497 ) Reclassifications from non-accretable difference 1,873 918 3,235 3,854 Balance, end of period $ 5,075 $ 6,864 $ 5,075 $ 6,864 |
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, 2018 and December 31, 2017 . 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, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,333 $ 2,907 $ 201 $ 20 Investment properties 7,247 1,249 5,637 277 Multifamily construction 479 — — — One- to four-family construction 1,297 1,297 — — Land and land development: Residential 1,134 798 — — Commercial business 3,925 3,008 384 17 Agricultural business/farmland 4,546 1,645 2,560 71 One- to four-family residential 7,302 3,227 4,021 64 Consumer: Consumer secured by one- to four-family 2,075 1,893 135 6 Consumer—other 191 106 66 2 $ 31,529 $ 16,130 $ 13,004 $ 457 December 31, 2017 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 7,807 $ 6,447 $ 199 $ 18 Investment properties 11,296 4,200 6,884 263 One- to four-family construction 298 298 — — Land and land development: Residential 1,134 798 — — Commercial business 4,441 3,424 555 50 Agricultural business/farmland 9,388 6,230 3,031 264 One- to four-family residential 9,547 3,709 5,775 178 Consumer: Consumer secured by one- to four-family 1,498 1,324 139 7 Consumer—other 134 58 73 2 $ 45,543 $ 26,488 $ 16,656 $ 782 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $10.3 million and $10.6 million , respectively, of homogenous and small balance loans as of September 30, 2018 and December 31, 2017 , 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. |
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, 2018 and 2017 (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 $ 3,281 $ 3 $ 3,657 $ 3 Investment properties 6,808 79 8,849 37 Multifamily real estate — — 115 1 One- to four-family construction 991 — — — Land and land development: Residential 798 — 1,095 6 Commercial — — 928 — Commercial business 3,210 5 8,128 6 Agricultural business/farmland 4,218 23 6,196 69 One- to four-family residential 7,667 77 8,899 73 Consumer: Consumer secured by one- to four-family 1,841 5 1,608 2 Consumer—other 164 1 140 1 $ 28,978 $ 193 $ 39,615 $ 198 Nine Months Ended Nine Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 4,070 $ 8 $ 3,079 $ 7 Investment properties 8,114 237 8,393 124 Multifamily real estate — — 335 10 One- to four-family construction 637 4 524 27 Land and land development: Residential 1,059 10 1,574 42 Commercial — — 950 — Commercial business 3,474 17 5,838 63 Agricultural business/farmland 5,895 79 5,605 131 One- to four-family residential 8,261 237 9,602 240 Consumer: Consumer secured by one- to four-family 1,530 10 1,647 7 Consumer—other 151 3 194 5 $ 33,191 $ 605 $ 37,741 $ 656 |
Schedule of Troubled Debt Restructurings | The following table presents TDRs by accrual and nonaccrual status at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Accrual Status Nonaccrual Status Total TDRs Accrual Nonaccrual Total Commercial real estate: Owner-occupied $ 201 $ 80 $ 281 $ 199 $ 87 $ 286 Investment properties 5,637 — 5,637 6,884 — 6,884 Commercial business 384 — 384 555 — 555 Agricultural business, including secured by farmland 2,560 — 2,560 3,129 29 3,158 One- to four-family residential 4,498 240 4,738 5,136 801 5,937 Consumer: Consumer secured by one- to four-family 135 — 135 139 — 139 Consumer—other 66 — 66 73 — 73 $ 13,481 $ 320 $ 13,801 $ 16,115 $ 917 $ 17,032 As of both September 30, 2018 and December 31, 2017 , the Company had commitments to advance additional funds related to TDRs up to $7,000 and $45,000 , respectively. |
Schedule of Risk-Rated Loans and Non-Risk Rated Loans by Grade and Other Characteristics | The following tables present the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,246,900 $ 10,037 $ 14,426 $ — $ — $ 1,271,363 Investment properties 1,935,890 — 7,903 — — 1,943,793 Multifamily real estate 309,490 — 319 — — 309,809 Commercial construction 154,071 — — — — 154,071 Multifamily construction 172,433 — — — — 172,433 One- to four-family construction 495,941 — 2,608 — — 498,549 Land and land development: Residential 160,046 10,766 798 — — 171,610 Commercial 19,607 — 2,775 — — 22,382 Commercial business 1,316,610 7,324 34,122 93 — 1,358,149 Agricultural business, including secured by farmland 346,176 4,589 9,201 — — 359,966 One- to four-family residential 844,853 518 4,557 — — 849,928 Consumer: Consumer secured by one- to four-family 534,780 900 3,463 — — 539,143 Consumer—other 171,016 10 297 — — 171,323 Total $ 7,707,813 $ 34,144 $ 80,469 $ 93 $ — $ 7,822,519 December 31, 2017 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,246,125 $ 12,227 $ 26,011 $ — $ — $ 1,284,363 Investment properties 1,918,940 9,118 9,365 — — 1,937,423 Multifamily real estate 313,432 — 756 — — 314,188 Commercial construction 148,435 — — — — 148,435 Multifamily construction 154,662 — — — — 154,662 One- to four-family construction 411,802 — 3,525 — — 415,327 Land and land development: Residential 153,073 10,554 889 — — 164,516 Commercial 21,665 — 2,918 — — 24,583 Commercial business 1,213,365 12,135 54,282 112 — 1,279,894 Agricultural business, including secured by farmland 321,110 3,852 13,426 — — 338,388 One- to four-family residential 842,304 569 5,416 — — 848,289 Consumer: Consumer secured by one- to four-family 520,675 — 2,256 — — 522,931 Consumer—other 165,594 13 278 — — 165,885 Total $ 7,431,182 $ 48,468 $ 119,122 $ 112 $ — $ 7,598,884 (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, 2018 and December 31, 2017 , in the commercial business category, $583.7 million and $296.8 million , respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated. |
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, 2018 and December 31, 2017 (in thousands): September 30, 2018 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 $ — $ 160 $ 2,334 $ 2,494 $ 5,369 $ 1,263,500 $ 1,271,363 $ 23 $ 2,884 Investment properties 309 233 1,155 1,697 3,000 1,939,096 1,943,793 405 844 Multifamily real estate — — — — 142 309,667 309,809 — — Commercial construction — — — — — 154,071 154,071 — — Multifamily construction — — — — — 172,433 172,433 — — One-to-four-family construction — 1,208 378 1,586 461 496,502 498,549 — 1,297 Land and land development: Residential 703 — 798 1,501 — 170,109 171,610 — 798 Commercial — — — — 2,775 19,607 22,382 — — Commercial business 2,100 480 1,821 4,401 621 1,353,127 1,358,149 87 2,921 Agricultural business, including secured by farmland 165 — 1,639 1,804 398 357,764 359,966 — 1,645 One- to four-family residential 95 586 2,011 2,692 111 847,125 849,928 1,076 1,827 Consumer: Consumer secured by one- to four-family 1,878 693 1,294 3,865 — 535,278 539,143 282 1,611 Consumer—other 351 173 60 584 67 170,672 171,323 14 92 Total $ 5,601 $ 3,533 $ 11,490 $ 20,624 $ 12,944 $ 7,788,951 $ 7,822,519 $ 1,887 $ 13,919 December 31, 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 $ 5,323 $ 76 $ 5,490 $ 10,889 $ 7,682 $ 1,265,792 $ 1,284,363 $ — $ 6,447 Investment properties 1,737 — 4,096 5,833 7,166 1,924,424 1,937,423 — 4,199 Multifamily real estate 105 — — 105 169 313,914 314,188 — — Commercial construction — — — — — 148,435 148,435 — — Multifamily construction 3,416 — — 3,416 — 151,246 154,662 — — One-to-four-family construction 4,892 725 298 5,915 446 408,966 415,327 298 — Land and land development: Residential — — 798 798 — 163,718 164,516 — 798 Commercial — — — — 2,919 21,664 24,583 — — Commercial business 1,574 404 2,577 4,555 2,159 1,273,180 1,279,894 18 3,406 Agricultural business, including secured by farmland 598 533 2,017 3,148 565 334,675 338,388 — 6,132 One-to four-family residential 4,475 1,241 2,715 8,431 136 839,722 848,289 1,085 3,264 Consumer: Consumer secured by one- to four-family 1,355 62 713 2,130 — 520,801 522,931 85 1,239 Consumer—other 609 136 15 760 68 165,057 165,885 — 58 Total $ 24,084 $ 3,177 $ 18,719 $ 45,980 $ 21,310 $ 7,531,594 $ 7,598,884 $ 1,486 $ 25,543 |
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, 2018 and 2017 (in thousands): For the Three Months Ended September 30, 2018 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 $ 24,413 $ 3,718 $ 27,034 $ 19,141 $ 3,162 $ 3,932 $ 5,725 $ 6,750 $ 93,875 Provision for loan losses 824 27 (1,996 ) (1,306 ) 348 432 2,600 1,071 2,000 Recoveries 12 — 5 586 — 86 46 — 735 Charge-offs (102 ) — (479 ) (473 ) (5 ) (27 ) (261 ) — (1,347 ) Ending balance $ 25,147 $ 3,745 $ 24,564 $ 17,948 $ 3,505 $ 4,423 $ 8,110 $ 7,821 $ 95,263 For the Nine Months Ended September 30, 2018 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 $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 Provision for loan losses 1,144 2,112 (2,715 ) 148 (248 ) 1,679 4,777 (897 ) 6,000 Recoveries 1,580 — 190 856 41 732 264 — 3,663 Charge-offs (401 ) — (479 ) (1,367 ) (341 ) (43 ) (797 ) — (3,428 ) Ending balance $ 25,147 $ 3,745 $ 24,564 $ 17,948 $ 3,505 $ 4,423 $ 8,110 $ 7,821 $ 95,263 September 30, 2018 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 $ 297 $ — $ — $ 17 $ 71 $ 64 $ 8 $ — $ 457 Collectively evaluated for impairment 24,850 3,745 24,564 17,908 3,372 4,359 8,102 7,821 94,721 Purchased credit-impaired loans — — — 23 62 — — — 85 Total allowance for loan losses $ 25,147 $ 3,745 $ 24,564 $ 17,948 $ 3,505 $ 4,423 $ 8,110 $ 7,821 $ 95,263 Loan balances: Individually evaluated for impairment $ 8,769 $ — $ 1,669 $ 384 $ 3,298 $ 4,497 $ 201 $ — $ 18,818 Collectively evaluated for impairment 3,198,018 309,667 1,014,140 1,357,144 356,270 845,320 710,198 — 7,790,757 Purchased credit-impaired loans 8,369 142 3,236 621 398 111 67 — 12,944 Total loans $ 3,215,156 $ 309,809 $ 1,019,045 $ 1,358,149 $ 359,966 $ 849,928 $ 710,466 $ — $ 7,822,519 For the Three Months Ended September 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 $ 24,232 $ 1,562 $ 27,312 $ 19,126 $ 3,808 $ 2,010 $ 3,987 $ 6,549 $ 88,586 Provision for loan losses (236 ) 63 2,037 (555 ) 1,141 22 117 (589 ) 2,000 Recoveries 19 — 73 577 1 8 98 — 776 Charge-offs (584 ) — — (491 ) (1,001 ) — (186 ) — (2,262 ) Ending balance $ 23,431 $ 1,625 $ 29,422 $ 18,657 $ 3,949 $ 2,040 $ 4,016 $ 5,960 $ 89,100 For the Nine Months Ended September 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 2,716 254 (6,010 ) 4,489 2,113 (460 ) 488 2,410 6,000 Recoveries 353 11 1,180 921 133 262 293 — 3,153 Charge-offs (631 ) — — (3,286 ) (1,264 ) — (869 ) — (6,050 ) Ending balance $ 23,431 $ 1,625 $ 29,422 $ 18,657 $ 3,949 $ 2,040 $ 4,016 $ 5,960 $ 89,100 September 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 $ 263 $ — $ 67 $ 52 $ 196 $ 184 $ 11 $ — $ 773 Collectively evaluated for impairment 23,168 1,625 29,348 18,605 3,753 1,856 4,005 5,960 88,320 Purchased credit-impaired loans — — 7 — — — — — 7 Total allowance for loan losses $ 23,431 $ 1,625 $ 29,422 $ 18,657 $ 3,949 $ 2,040 $ 4,016 $ 5,960 $ 89,100 Loan balances: Individually evaluated for impairment $ 13,866 $ — $ 1,871 $ 5,899 $ 6,495 $ 5,182 $ 218 $ — $ 33,531 Collectively evaluated for impairment 3,332,724 311,533 872,783 1,302,902 332,754 864,109 700,892 — 7,717,697 Purchased credit impaired loans 15,684 173 3,759 2,608 683 265 49 — 23,221 Total loans $ 3,362,274 $ 311,706 $ 878,413 $ 1,311,409 $ 339,932 $ 869,556 $ 701,159 $ — $ 7,774,449 |
GOODWILL, OTHER INTANGIBLE AS_2
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and the year ended December 31, 2017 (in thousands): Goodwill CDI LHI Total Balance, December 31, 2016 $ 244,583 $ 29,701 $ 461 $ 274,745 Amortization — (6,247 ) (184 ) (6,431 ) Other changes (1) (1,924 ) (1,076 ) — (3,000 ) Balance, December 31, 2017 242,659 22,378 277 265,314 Amortization — (4,112 ) (44 ) (4,156 ) Balance, September 30, 2018 $ 242,659 $ 18,266 $ 233 $ 261,158 (1) Goodwill and CDI were adjusted for the sale of the Utah branches in 2017. |
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 2018 $ 1,348 2019 4,659 2020 3,976 2021 3,291 2022 2,511 Thereafter 2,481 $ 18,266 |
Schedule of Servicing Assets at Amortized Value | An analysis of our mortgage servicing rights for the three and nine months ended September 30, 2018 and 2017 is presented below (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance, beginning of the period $ 14,521 $ 14,985 $ 14,738 $ 15,249 Additions—amounts capitalized 952 826 2,636 2,477 Additions—through purchase 47 — 92 — Amortization (1) (999 ) (1,057 ) (2,945 ) (2,972 ) Balance, end of the period (2) $ 14,521 $ 14,754 $ 14,521 $ 14,754 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. (2) There was no valuation allowance as of September 30, 2018 and 2017 . |
REAL ESTATE OWNED, NET (Tables)
REAL ESTATE OWNED, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance, beginning of the period $ 473 $ 2,427 $ 360 $ 11,081 Additions from loan foreclosures — — 502 46 Additions from capitalized costs — — — 54 Proceeds from dispositions of REO (90 ) (961 ) (385 ) (11,382 ) Gain on sale of REO 8 30 74 1,953 Valuation adjustments in the period (27 ) — (187 ) (256 ) Balance, end of the period $ 364 $ 1,496 $ 364 $ 1,496 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | Deposits consisted of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Non-interest-bearing accounts $ 3,469,294 $ 3,265,544 Interest-bearing checking 1,034,678 971,137 Regular savings accounts 1,627,560 1,557,500 Money market accounts 1,373,618 1,422,313 Total interest-bearing transaction and saving accounts 4,035,856 3,950,950 Certificates of deposit: Certificates of deposit less than or equal to $250,000 1,026,984 813,997 Certificates of deposit greater than $250,000 153,690 152,940 Total certificates of deposit (1) 1,180,674 966,937 Total deposits $ 8,685,824 $ 8,183,431 Included in total deposits: Public fund transaction and savings accounts $ 187,759 $ 198,719 Public fund interest-bearing certificates 25,367 23,685 Total public deposits $ 213,126 $ 222,404 Total brokered deposits $ 325,154 $ 57,228 (1) Certificates of deposit include $0 and $11,000 of acquisition premiums at September 30, 2018 and December 31, 2017 , respectively. |
Maturities of Certificates of Deposit | Scheduled maturities and weighted average interest rates of certificate accounts at September 30, 2018 are as follows (dollars in thousands): September 30, 2018 Amount Weighted Average Rate Maturing in one year or less $ 879,988 1.08 % Maturing after one year through two years 174,336 1.11 Maturing after two years through three years 97,508 1.45 Maturing after three years through four years 15,864 1.21 Maturing after four years through five years 10,676 1.54 Maturing after five years 2,302 1.07 Total certificates of deposit $ 1,180,674 1.12 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 , whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands): September 30, 2018 December 31, 2017 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 248,661 $ 248,661 $ 261,200 $ 261,200 Securities—trading 2,3 25,764 25,764 22,318 22,318 Securities—available-for-sale 2 1,412,273 1,412,273 919,485 919,485 Securities—held-to-maturity 2 255,429 250,824 256,793 258,710 Securities—held-to-maturity 3 3,270 3,270 3,478 3,478 Loans held for sale 2 72,850 72,924 40,725 40,923 Loans receivable 3 7,822,519 7,693,348 7,598,884 7,445,990 FHLB stock 3 19,196 19,196 10,334 10,334 Bank-owned life insurance 1 163,265 163,265 162,668 162,668 Mortgage servicing rights 3 14,521 23,890 14,738 19,835 Equity securities 1 416 416 — — Derivatives: Interest rate swaps 2 6,385 6,385 5,083 5,083 Interest rate lock and forward sales commitments 2 580 580 523 523 Liabilities: Demand, interest checking and money market accounts 2 5,877,590 5,877,590 5,658,994 5,658,994 Regular savings 2 1,627,560 1,627,560 1,557,500 1,557,500 Certificates of deposit 2 1,180,674 1,164,982 966,937 947,517 FHLB advances 2 221,184 221,184 202 202 Other borrowings 2 98,979 98,979 95,860 95,860 Junior subordinated debentures 3 113,110 113,110 98,707 98,707 Derivatives: Interest rate swaps 2 6,385 6,385 5,083 5,083 Interest rate lock and forward sales commitments 2 24 24 201 201 |
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, 2018 and December 31, 2017 (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Assets: Securities—trading Municipal bonds $ — $ 100 $ — $ 100 Corporate bonds (Trust Preferred Securities) — — 25,664 25,664 — 100 25,664 25,764 Securities—available-for-sale U.S. Government and agency obligations — 136,308 — 136,308 Municipal bonds — 65,986 — 65,986 Corporate bonds — 5,040 — 5,040 Mortgage-backed or related securities — 1,182,518 — 1,182,518 Asset-backed securities — 22,421 — 22,421 — 1,412,273 — 1,412,273 Loans held for sale — 67,128 — 67,128 Equity securities — 416 — 416 Derivatives Interest rate swaps — 6,385 — 6,385 Interest rate lock and forward sales commitments — 580 — 580 $ — $ 1,486,882 $ 25,664 $ 1,512,546 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 113,110 $ 113,110 Derivatives Interest rate swaps — 6,385 — 6,385 Interest rate lock and forward sales commitments — 24 — 24 $ — $ 6,409 $ 113,110 $ 119,519 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Securities—trading Municipal bonds $ — $ 100 $ — $ 100 Corporate bonds (Trust Preferred Securities) — — 22,058 22,058 Equity securities — 160 — 160 — 260 22,058 22,318 Securities—available-for-sale U.S. Government and agency obligations — 72,466 — 72,466 Municipal bonds — 68,733 — 68,733 Corporate bonds — 5,393 — 5,393 Mortgage-backed securities — 739,557 — 739,557 Asset-backed securities — 27,758 — 27,758 Equity securities — 5,578 — 5,578 — 919,485 — 919,485 Loans held for sale — 32,392 — 32,392 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 523 — 523 $ — $ 957,743 $ 22,058 $ 979,801 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 98,707 $ 98,707 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 201 — 201 $ — $ 5,284 $ 98,707 $ 103,991 |
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 non-recurring basis at September 30, 2018 and December 31, 2017 : Weighted Average Rate / Range Financial Instruments Valuation Techniques Unobservable Inputs September 30, 2018 December 31, 2017 Corporate bonds (TPS securities) Discounted cash flows Discount rate 6.40 % 6.69 % Junior subordinated debentures Discounted cash flows Discount rate 6.40 % 6.69 % Impaired loans Collateral Valuations Discount to appraised value 8.5% to 20.0% 8.5% to 20.0% REO Appraisals Discount to appraised value 63.9 % 42.0 % |
Schedule of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide 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, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures TPS Securities Borrowings— Junior Subordinated Debentures Beginning balance $ 25,540 $ 112,774 $ 22,058 $ 98,707 Total gains or losses recognized Assets gains 86 — 3,568 — Liabilities losses (1) — 336 — 14,403 Ending balance at September 30, 2018 $ 25,626 $ 113,110 $ 25,626 $ 113,110 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures TPS Securities Borrowings— Junior Subordinated Debentures Beginning balance $ 21,568 $ 96,852 $ 21,143 $ 95,200 Total gains or losses recognized Assets gains 107 — 532 — Liabilities losses — 428 — 2,080 Ending balance at September 30, 2017 $ 21,675 $ 97,280 $ 21,675 $ 97,280 |
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, 2018 and December 31, 2017 (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,488 $ 1,488 REO — — 364 364 December 31, 2017 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 6,535 $ 6,535 REO — — 360 360 The following table presents the losses resulting from non-recurring fair value adjustments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Impaired loans $ (102 ) $ (1,584 ) $ (431 ) $ (2,059 ) REO (27 ) — (187 ) (256 ) Total loss from non-recurring measurements $ (129 ) $ (1,584 ) $ (618 ) $ (2,315 ) |
INCOME TAXES AND DEFERRED TAX_2
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Tax credit investments $ 8,648 $ 7,311 Unfunded commitments—tax credit investments 4,361 4,417 The following table presents other information related to the Company's tax credit investments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Tax credits and other tax benefits recognized $ 364 $ 285 $ 1,092 $ 855 Tax credit amortization expense included in provision for income taxes 288 199 863 597 |
CALCULATION OF WEIGHTED AVERA_2
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Weighted Shares Outstanding | The following table reconciles basic to diluted weighted average shares outstanding used to calculate earnings per share data (in thousands, except shares and per share data): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income $ 37,773 $ 25,077 $ 98,987 $ 74,324 Basic weighted average shares outstanding 32,256,789 32,982,532 32,300,688 32,966,214 Plus unvested restricted stock 119,834 96,567 105,726 94,958 Diluted weighted shares outstanding 32,376,623 33,079,099 32,406,414 33,061,172 Earnings per common share Basic $ 1.17 $ 0.76 $ 3.06 $ 2.25 Diluted $ 1.17 $ 0.76 $ 3.05 $ 2.25 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 December 31, 2017 Commitments to extend credit $ 2,650,671 $ 2,300,593 Standby letters of credit and financial guarantees 15,129 14,579 Commitments to originate loans 61,465 56,030 Risk participation agreement 4,108 11,451 Derivatives also included in Note 14: Commitments to originate loans held for sale 58,308 48,091 Commitments to sell loans secured by one- to four-family residential properties 25,802 17,837 Commitments to sell securities related to mortgage banking activities 103,100 57,000 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated in Hedge Relationships | As of September 30, 2018 and December 31, 2017 , 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, 2018 December 31, 2017 September 30, 2018 December 31, 2017 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 $ 4,070 $ 257 $ 4,350 $ 447 $ 4,070 $ 257 $ 4,350 $ 447 (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, 2018 and December 31, 2017 , 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, 2018 December 31, 2017 September 30, 2018 December 31, 2017 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 $ 280,872 $ 6,128 $ 285,047 $ 4,636 $ 280,872 $ 6,128 $ 285,047 $ 4,636 Mortgage loan commitments 39,104 212 29,739 225 24,926 24 13,763 153 Forward sales contracts 128,902 368 43,069 298 — — 47,000 48 $ 448,878 $ 6,708 $ 357,855 $ 5,159 $ 305,798 $ 6,152 $ 345,810 $ 4,837 (1) Included in Other assets on the Consolidated Statements of Financial Condition, with the exception of certain interest swaps and mortgage loan commitments (with a fair value of $420,000 at September 30, 2018 and $499,000 at December 31, 2017 ), which are included in Loans receivable. (2) Included in Other liabilities on the Consolidated Statements of Financial Condition. Gains (losses) recognized in income on derivatives not designated in hedge relationships for the three and nine months ended September 30, 2018 and 2017 were as follows (in thousands): Location on Consolidated Statements of Operations Three Months Ended Nine Months Ended 2018 2017 2018 2017 Mortgage loan commitments Mortgage banking operations $ (177 ) $ 50 $ (13 ) $ 235 Forward sales contracts Mortgage banking operations 325 (398 ) 594 (654 ) $ 148 $ (348 ) $ 581 $ (419 ) |
Offsetting Assets and Liabilities | The following tables illustrate 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, 2018 and December 31, 2017 (in thousands): September 30, 2018 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 $ 6,385 $ — $ 6,385 $ — $ — $ 6,385 $ 6,385 $ — $ 6,385 $ — $ — $ 6,385 Derivative liabilities Interest rate swaps $ 6,385 $ — $ 6,385 $ — $ (295 ) $ 6,090 $ 6,385 $ — $ 6,385 $ — $ (295 ) $ 6,090 December 31, 2017 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 $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 Derivative liabilities Interest rate swaps $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Deposit fees and other service charges for the three and nine months ended September 30, 2018 and 2017 are summarized as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Deposit service charges $ 4,501 $ 4,296 $ 13,348 $ 12,589 Debit and credit interchange fees 8,146 7,301 23,337 21,027 Debit and credit card expense (2,166 ) (1,956 ) (6,069 ) (5,481 ) Merchant services income 5,347 2,771 7,747 7,511 Merchant services expenses (4,544 ) (2,258 ) (5,899 ) (6,128 ) Other service charges 971 904 3,071 3,093 Total deposit fees and other service charges $ 12,255 $ 11,058 $ 35,535 $ 32,611 |
ACCOUNTING STANDARDS RECENTLY_3
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Available for sale securities - equity securities (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities—available-for-sale | $ 1,412,273,000 | $ 919,485,000 |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities—available-for-sale | 5,578,000 | |
Reported Value Measurement [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI | 416,000 | 0 |
Securities—available-for-sale | $ 1,412,273,000 | $ 919,485,000 |
ACCOUNTING STANDARDS RECENTLY_4
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Revenue Recognition Standard ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total Deposit Fees and Other Service Charges | $ 12,255 | $ 11,058 | $ 35,535 | $ 32,611 |
Payment and card processing expenses | 3,748 | 3,581 | 11,179 | 10,523 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total Deposit Fees and Other Service Charges | 16,799 | 13,316 | 41,434 | 38,739 |
Payment and card processing expenses | 8,292 | 5,839 | 17,078 | 16,651 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total Deposit Fees and Other Service Charges | (4,544) | (2,258) | (5,899) | (6,128) |
Payment and card processing expenses | $ (4,544) | $ (2,258) | $ (5,899) | $ (6,128) |
SUBSEQUENT EVENT Subsequent Eve
SUBSEQUENT EVENT Subsequent Event (Details) - Skagit Bank [Member] - Subsequent Event [Member] | Nov. 01, 2018USD ($)bank_branchshares |
Subsequent Event [Line Items] | |
Business Combination, Consideration Transferred, Shares Issued for Each Aquiree Share | shares | 5.6664 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 919,000,000 |
Business Combination, Acquired Receivable, Fair Value | 604,000,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits | $ 819,000,000 |
Business Combination, Number of Retail Branches Acquired | bank_branch | 11 |
Business Combination, Combined Assets | $ 11,400,000,000 |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | $ 27,340 | $ 27,246 |
Securities—trading | 25,764 | 22,318 |
Available-for-sale Securities, Amortized Cost | 1,451,897 | 926,112 |
Available-for-sale Securities, Gross Unrealized Gains | 280 | 1,936 |
Available-for-sale Securities, Gross Unrealized Losses | (39,904) | (8,563) |
Securities—available-for-sale | 1,412,273 | 919,485 |
Held-to-maturity Securities, Amortized Cost | 258,699 | 260,271 |
Held-to-maturity Securities, Gross Unrealized Gains | 1,451 | 3,687 |
Held-to-maturity Securities, Gross Unrealized Losses | 6,056 | 1,770 |
Securities—held-to-maturity | 254,094 | 262,188 |
U.S. Government and agency obligations [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 139,329 | 72,829 |
Available-for-sale Securities, Gross Unrealized Gains | 9 | 68 |
Available-for-sale Securities, Gross Unrealized Losses | (3,030) | (431) |
Securities—available-for-sale | 136,308 | 72,466 |
Held-to-maturity Securities, Amortized Cost | 1,007 | 1,024 |
Held-to-maturity Securities, Gross Unrealized Gains | 18 | 29 |
Held-to-maturity Securities, Gross Unrealized Losses | 4 | 0 |
Securities—held-to-maturity | 1,021 | 1,053 |
Municipal bonds [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 100 | 100 |
Securities—trading | 100 | 100 |
Available-for-sale Securities, Amortized Cost | 66,854 | 68,513 |
Available-for-sale Securities, Gross Unrealized Gains | 152 | 665 |
Available-for-sale Securities, Gross Unrealized Losses | (1,020) | (445) |
Securities—available-for-sale | 65,986 | 68,733 |
Held-to-maturity Securities, Amortized Cost | 191,777 | 189,860 |
Held-to-maturity Securities, Gross Unrealized Gains | 1,433 | 3,385 |
Held-to-maturity Securities, Gross Unrealized Losses | 3,773 | 1,252 |
Securities—held-to-maturity | 189,437 | 191,993 |
Corporate bonds [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 27,240 | 27,132 |
Securities—trading | 25,664 | 22,058 |
Available-for-sale Securities, Amortized Cost | 5,054 | 5,431 |
Available-for-sale Securities, Gross Unrealized Gains | 4 | 6 |
Available-for-sale Securities, Gross Unrealized Losses | (18) | (44) |
Securities—available-for-sale | 5,040 | 5,393 |
Held-to-maturity Securities, Amortized Cost | 3,771 | 3,978 |
Held-to-maturity Securities, Gross Unrealized Gains | 0 | 7 |
Held-to-maturity Securities, Gross Unrealized Losses | 20 | 0 |
Securities—held-to-maturity | 3,751 | 3,985 |
Mortgage-backed or related securities [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 1,218,204 | 745,956 |
Available-for-sale Securities, Gross Unrealized Gains | 29 | 1,003 |
Available-for-sale Securities, Gross Unrealized Losses | (35,715) | (7,402) |
Securities—available-for-sale | 1,182,518 | 739,557 |
Held-to-maturity Securities, Amortized Cost | 62,144 | 65,409 |
Held-to-maturity Securities, Gross Unrealized Gains | 0 | 266 |
Held-to-maturity Securities, Gross Unrealized Losses | 2,259 | 518 |
Securities—held-to-maturity | 59,885 | 65,157 |
Asset-backed Securities [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 22,456 | 27,667 |
Available-for-sale Securities, Gross Unrealized Gains | 86 | 184 |
Available-for-sale Securities, Gross Unrealized Losses | (121) | (93) |
Securities—available-for-sale | $ 22,421 | 27,758 |
Equity Securities [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 14 | |
Securities—trading | 160 | |
Available-for-sale Securities, Amortized Cost | 5,716 | |
Available-for-sale Securities, Gross Unrealized Gains | 10 | |
Available-for-sale Securities, Gross Unrealized Losses | (148) | |
Securities—available-for-sale | $ 5,578 |
SECURITIES (Securities with Con
SECURITIES (Securities with Continuous Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 1,034,409 | $ 617,847 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (25,217) | (5,686) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 328,897 | 151,971 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (14,687) | (2,877) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,363,306 | 769,818 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (39,904) | (8,563) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 103,771 | 59,862 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2,708 | 549 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 50,207 | 38,748 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3,348) | (1,221) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 153,978 | 98,610 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 6,056 | 1,770 |
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 | 101,146 | 31,276 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,940) | (211) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 27,397 | 23,341 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,090) | (220) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 128,543 | 54,617 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (3,030) | (431) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 143 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 4 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 143 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 4 | |
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 | 25,768 | 20,879 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (358) | (185) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 20,470 | 13,360 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (662) | (260) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 46,238 | 34,239 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,020) | (445) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 59,854 | 21,839 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,227 | 171 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 33,614 | 34,314 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2,546) | (1,081) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 93,468 | 56,153 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 3,773 | 1,252 |
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 | 3,837 | 296 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (11) | (4) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 293 | 4,682 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (7) | (40) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,130 | 4,978 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (18) | (44) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 481 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 20 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 481 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 20 | |
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 | 902,556 | 559,916 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (22,907) | (5,138) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 270,846 | 100,662 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (12,808) | (2,264) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,173,402 | 660,578 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (35,715) | (7,402) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 43,293 | 38,023 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,457 | 378 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 16,593 | 4,434 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (802) | (140) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 59,886 | 42,457 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 2,259 | 518 |
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 | 1,102 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 9,891 | 9,926 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (120) | (93) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10,993 | 9,926 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (121) | (93) |
Equity Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 5,480 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (148) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,480 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (148) |
SECURITIES (Securities Debt Mat
SECURITIES (Securities Debt Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading Securities, Amortized Cost, Maturing in one year or less | $ 100 | |
Trading Securities, Amortized Cost, Maturing after one year through five years | 0 | |
Trading Securities, Amortized Cost, Maturing after five years through ten years | 0 | |
Trading Securities, Amortized Cost, Maturing after ten years through twenty years | 27,240 | |
Trading Securities, Amortized Cost, Maturing after twenty years | 0 | |
Trading Securities, Amortized Cost | 27,340 | $ 27,246 |
Trading Securities, Fair Value, Maturing in one year or less | 100 | |
Trading Securities, Fair Value, Maturing after one year through five years | 0 | |
Trading Securities, Fair Value, Maturing after five years through ten years | 0 | |
Trading Securities, Fair Value, Maturing after ten years through twenty years | 25,664 | |
Trading Securities, Fair Value, Maturing after twenty years | 0 | |
Trading Securities, Fair Value | 25,764 | 22,318 |
Available-for-sale Securities, Amortized Cost, Maturing in one year or less | 5,004 | |
Available-for-sale Securities, Amortized Cost, Maturing after one year through five years | 64,250 | |
Available-for-sale Securities, Amortized Cost, Maturing after five years through ten years | 268,844 | |
Available-for-sale Securities, Amortized Cost, Maturing after ten years through twenty years | 222,061 | |
Available-for-sale Securities, Amortized Cost, Maturing after twenty years | 891,738 | |
Available-for-sale Securities, Amortized Cost | 1,451,897 | 926,112 |
Available-for-sale Securities, Fair Value, Maturing in one year or less | 4,990 | |
Available-for-sale Securities, Fair Value, Maturing after one year through five years | 63,572 | |
Available-for-sale Securities, Fair Value, Maturing after five years through ten years | 259,593 | |
Available-for-sale Securities, Fair Value, Maturing after ten years through twenty years | 218,114 | |
Available-for-sale Securities, Fair Value, Maturing after twenty years | 866,004 | |
Available-for-sale Securities, Fair Value | 1,412,273 | 919,485 |
Held-to-maturity Securities, Amortized Cost, Maturing in one year or less | 3,331 | |
Held-to-maturity Securities, Amortized Cost, Maturing after one year through five years | 49,608 | |
Held-to-maturity Securities, Amortized Cost, Maturing after five years through ten years | 83,662 | |
Held-to-maturity Securities, Amortized Cost, Maturing after ten years through twenty years | 83,124 | |
Held-to-maturity Securities, Amortized Cost, Maturing after twenty years | 38,974 | |
Held-to-maturity Securities, Amortized Cost | 258,699 | 260,271 |
Held-to-maturity Securities, Fair Value, Maturing in one year or less | 3,322 | |
Held-to-maturity Securities, Fair Value, Maturing after one year through five years | 48,484 | |
Held-to-maturity Securities, Fair Value, Maturing after five years through ten years | 82,497 | |
Held-to-maturity Securities, Fair Value, Maturing after ten years through twenty years | 83,163 | |
Held-to-maturity Securities, Fair Value, Maturing after twenty years | 36,628 | |
Debt Securities, Held-to-maturity, Fair Value | $ 254,094 | $ 262,188 |
SECURITIES (Securities Pledged)
SECURITIES (Securities Pledged) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Pledged Financial Instruments, Not Separately Reported, Securities [Abstract] | |
Securities pledged for State and Local Government Public Deposits, Carrying Value | $ 128,020 |
Securities pledged for Interest Rate Swap Counterparties, Carrying Value | 13,782 |
Securities pledged for Repurchase Agreements, Carrying Value | 128,991 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities | 3,852 |
Total pledged securities, Carrying Value | 274,645 |
Securities pledged for State and Local Government public deposits, Amortized Cost | 128,101 |
Securities pledged for Interest Rate Swap Counterparties, Amortized Cost | 14,023 |
Securities pledged for Repurchase Agreements, Amortized Cost | 132,361 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Amortized Cost | 3,852 |
Total pledged securities, Amortized Cost | 278,337 |
Securities pledged for State and Local Government Public Deposits, Fair Value | 127,902 |
Securities pledged for Interest Rate Swap Counterparties, Fair Value | 13,494 |
Securities pledged for Retail Repurchase Agreements, Fair Value | 128,991 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Fair Value | 3,658 |
Total pledged securities, Fair Value | $ 274,045 |
SECURITIES (Textual) (Details)
SECURITIES (Textual) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)security | Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($)security | Dec. 31, 2017security | |
Investments, Debt and Equity Securities [Abstract] | ||||
Trading Securities, Sale Proceeds | $ 0 | $ 0 | ||
Trading Securities, Realized Gain (Loss) | 0 | 0 | ||
Trading Securities, OTTI (Recovery) Charges | $ 0 | 0 | ||
Trading Securities, Number of Securities on Nonaccrual Status | security | 0 | 0 | 0 | |
Trading Securities, Unrealized Holding Gain | $ 3,498,000 | 400,000 | ||
Debt Securities, Available-for-sale [Abstract] | ||||
Available-for-sale Securities, Number of Securities in Unrealized Loss Position | security | 336 | 336 | 226 | |
Available-for-sale Securities, Gross Realized Gains (Losses), Number of Securities Sold | security | 9 | |||
Available-for-sale Securities, Sale Proceeds | $ 8,400,000 | 35,600,000 | ||
Available-for-sale Securities, Gross Realized Gain (Loss) | 51,000 | 230,000 | ||
Available-for-sale Securities, OTTI Charges | $ 0 | $ 0 | ||
Available-for-sale Securities, Number of Securities in Nonaccrual Status | security | 0 | 0 | 0 | |
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities, Number of Securities in Unrealized Loss Position | security | 113 | 113 | 66 | |
Held-to-maturity Securities, Number of Securities Sold | security | 0 | 0 | ||
Held-to-maturity Securities, Sale Proceeds | $ 0 | |||
Principal repayments and maturities of securities—held-to-maturity | $ 2,000 | 8,291,000 | $ 6,544,000 | |
Held-to-maturity Securities, OTTI Charges | $ 0 | $ 0 | ||
Held-to-maturity Securities, Number of Securities in Nonaccrual Status | security | 0 | 0 | 0 |
LOANS RECEIVABLE AND THE ALLO_3
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Loans by Type) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 7,822,519 | $ 7,598,884 | $ 7,774,449 | |||
Allowance for loan losses | 95,263 | $ 93,875 | 89,028 | 89,100 | $ 88,586 | $ 85,997 |
Net loans | $ 7,727,256 | $ 7,509,856 | ||||
Percent of total loans | 100.00% | 100.00% | ||||
Unearned loan fees in excess of unamortized costs | $ 1,676 | $ (200) | ||||
Discount on acquired loans, net | 15,400 | 21,100 | ||||
Commerical real estate - owner-occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,271,363 | $ 1,284,363 | ||||
Percent of total loans | 16.20% | 16.90% | ||||
Commercial real estate - investment properties [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,943,793 | $ 1,937,423 | ||||
Percent of total loans | 24.80% | 25.50% | ||||
Multifamily real estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 309,809 | $ 314,188 | 311,706 | |||
Allowance for loan losses | $ 3,745 | 3,718 | $ 1,633 | 1,625 | 1,562 | 1,360 |
Percent of total loans | 3.90% | 4.10% | ||||
Commercial construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 154,071 | $ 148,435 | ||||
Percent of total loans | 2.00% | 2.00% | ||||
Multifamily Construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 172,433 | $ 154,662 | ||||
Percent of total loans | 2.20% | 2.00% | ||||
One- to four-family construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 498,549 | $ 415,327 | ||||
Percent of total loans | 6.40% | 5.50% | ||||
Land and land development - residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 171,610 | $ 164,516 | ||||
Percent of total loans | 2.20% | 2.20% | ||||
Land and land development - commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 22,382 | $ 24,583 | ||||
Percent of total loans | 0.30% | 0.30% | ||||
Commercial business [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,358,149 | $ 1,279,894 | 1,311,409 | |||
Allowance for loan losses | $ 17,948 | 19,141 | $ 18,311 | 18,657 | 19,126 | 16,533 |
Percent of total loans | 17.40% | 16.80% | ||||
Agricultural business, including secured by farmland [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 359,966 | $ 338,388 | 339,932 | |||
Allowance for loan losses | $ 3,505 | 3,162 | $ 4,053 | 3,949 | 3,808 | 2,967 |
Percent of total loans | 4.60% | 4.40% | ||||
One- to four-family residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 849,928 | $ 848,289 | 869,556 | |||
Allowance for loan losses | $ 4,423 | $ 3,932 | $ 2,055 | $ 2,040 | $ 2,010 | $ 2,238 |
Percent of total loans | 10.90% | 11.20% | ||||
Consumer secured by one- to four-family [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 539,143 | $ 522,931 | ||||
Percent of total loans | 6.90% | 6.90% | ||||
Consumer - other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 171,323 | $ 165,885 | ||||
Percent of total loans | 2.20% | 2.20% |
LOANS RECEIVABLE AND THE ALLO_4
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Receivables [Abstract] | |||||
Outstanding contractual unpaid balance of purchased credit-impaired loans | $ 20,700 | $ 20,700 | $ 32,500 | ||
Carrying balance of purchased credit-impaired loans | 12,944 | $ 23,221 | 12,944 | $ 23,221 | 21,310 |
Accretable Yield Movement Schedule [Roll Forward] | |||||
Balance, beginning of period | 6,109 | 7,666 | 6,520 | 8,717 | |
Accretion to interest income | (2,907) | (1,720) | (4,738) | (5,210) | |
Disposals | 0 | 0 | (58) | 497 | |
Reclassifications from non-accretable difference | 1,873 | 918 | 3,235 | 3,854 | |
Balance, end of period | 5,075 | $ 6,864 | 5,075 | $ 6,864 | |
Certain Loans Acquired in Transfer, Nonaccretable Difference | $ 6,900 | $ 6,900 | |||
Non-accretable difference | $ 11,300 |
LOANS RECEIVABLE AND THE ALLO_5
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | $ 31,529 | $ 31,529 | $ 45,543 | ||
Recorded Investment, Without Allowance | 16,130 | 16,130 | 26,488 | ||
Recorded Investment, With Allowance | 13,004 | 13,004 | 16,656 | ||
Related Allowance | 457 | 457 | 782 | ||
Average Recorded Investment | 28,978 | $ 39,615 | 33,191 | $ 37,741 | |
Interest Income Recognized | 193 | 198 | 605 | 656 | |
Commerical real estate - owner-occupied [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 3,333 | 3,333 | 7,807 | ||
Recorded Investment, Without Allowance | 2,907 | 2,907 | 6,447 | ||
Recorded Investment, With Allowance | 201 | 201 | 199 | ||
Related Allowance | 20 | 20 | 18 | ||
Average Recorded Investment | 3,281 | 3,657 | 4,070 | 3,079 | |
Interest Income Recognized | 3 | 3 | 8 | 7 | |
Commercial real estate - investment properties [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 7,247 | 7,247 | 11,296 | ||
Recorded Investment, Without Allowance | 1,249 | 1,249 | 4,200 | ||
Recorded Investment, With Allowance | 5,637 | 5,637 | 6,884 | ||
Related Allowance | 277 | 277 | 263 | ||
Average Recorded Investment | 6,808 | 8,849 | 8,114 | 8,393 | |
Interest Income Recognized | 79 | 37 | 237 | 124 | |
Multifamily real estate [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 115 | 0 | 335 | |
Interest Income Recognized | 0 | 1 | 0 | 10 | |
Multifamily Construction [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 479 | 479 | |||
Recorded Investment, Without Allowance | 0 | 0 | |||
Recorded Investment, With Allowance | 0 | 0 | |||
Related Allowance | 0 | 0 | |||
One- to four-family construction [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 1,297 | 1,297 | 298 | ||
Recorded Investment, Without Allowance | 1,297 | 1,297 | 298 | ||
Recorded Investment, With Allowance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 991 | 0 | 637 | 524 | |
Interest Income Recognized | 0 | 0 | 4 | 27 | |
Land and land development - residential [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 1,134 | 1,134 | 1,134 | ||
Recorded Investment, Without Allowance | 798 | 798 | 798 | ||
Recorded Investment, With Allowance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 798 | 1,095 | 1,059 | 1,574 | |
Interest Income Recognized | 0 | 6 | 10 | 42 | |
Land and land development - commercial [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 928 | 0 | 950 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial business [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 3,925 | 3,925 | 4,441 | ||
Recorded Investment, Without Allowance | 3,008 | 3,008 | 3,424 | ||
Recorded Investment, With Allowance | 384 | 384 | 555 | ||
Related Allowance | 17 | 17 | 50 | ||
Average Recorded Investment | 3,210 | 8,128 | 3,474 | 5,838 | |
Interest Income Recognized | 5 | 6 | 17 | 63 | |
Agricultural business, including secured by farmland [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 4,546 | 4,546 | 9,388 | ||
Recorded Investment, Without Allowance | 1,645 | 1,645 | 6,230 | ||
Recorded Investment, With Allowance | 2,560 | 2,560 | 3,031 | ||
Related Allowance | 71 | 71 | 264 | ||
Average Recorded Investment | 4,218 | 6,196 | 5,895 | 5,605 | |
Interest Income Recognized | 23 | 69 | 79 | 131 | |
One- to four-family residential [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 7,302 | 7,302 | 9,547 | ||
Recorded Investment, Without Allowance | 3,227 | 3,227 | 3,709 | ||
Recorded Investment, With Allowance | 4,021 | 4,021 | 5,775 | ||
Related Allowance | 64 | 64 | 178 | ||
Average Recorded Investment | 7,667 | 8,899 | 8,261 | 9,602 | |
Interest Income Recognized | 77 | 73 | 237 | 240 | |
Consumer secured by one- to four-family [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 2,075 | 2,075 | 1,498 | ||
Recorded Investment, Without Allowance | 1,893 | 1,893 | 1,324 | ||
Recorded Investment, With Allowance | 135 | 135 | 139 | ||
Related Allowance | 6 | 6 | 7 | ||
Average Recorded Investment | 1,841 | 1,608 | 1,530 | 1,647 | |
Interest Income Recognized | 5 | 2 | 10 | 7 | |
Consumer - other [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 191 | 191 | 134 | ||
Recorded Investment, Without Allowance | 106 | 106 | 58 | ||
Recorded Investment, With Allowance | 66 | 66 | 73 | ||
Related Allowance | 2 | 2 | $ 2 | ||
Average Recorded Investment | 164 | 140 | 151 | 194 | |
Interest Income Recognized | $ 1 | $ 1 | $ 3 | $ 5 |
LOANS RECEIVABLE AND THE ALLO_6
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | $ 13,481,000 | $ 16,115,000 |
TDRs on Nonaccrual Status | 320,000 | 917,000 |
Total TDRs | 13,801,000 | 17,032,000 |
Commitments to advance funds related to TDRs, maximum additional amounts | 7,000 | 45,000 |
Commerical real estate - owner-occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 201,000 | 199,000 |
TDRs on Nonaccrual Status | 80,000 | 87,000 |
Total TDRs | 281,000 | 286,000 |
Commercial real estate - investment properties [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 5,637,000 | 6,884,000 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | 5,637,000 | 6,884,000 |
Commercial business [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 384,000 | 555,000 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | 384,000 | 555,000 |
Agricultural business, including secured by farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 2,560,000 | 3,129,000 |
TDRs on Nonaccrual Status | 0 | 29,000 |
Total TDRs | 2,560,000 | 3,158,000 |
One- to four-family residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 4,498,000 | 5,136,000 |
TDRs on Nonaccrual Status | 240,000 | 801,000 |
Total TDRs | 4,738,000 | 5,937,000 |
Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 135,000 | 139,000 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | 135,000 | 139,000 |
Consumer - other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs on Accrual Status | 66,000 | 73,000 |
TDRs on Nonaccrual Status | 0 | 0 |
Total TDRs | $ 66,000 | $ 73,000 |
LOANS RECEIVABLE AND THE ALLO_7
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Newly Restructured Loans) (Details) | 9 Months Ended | |
Sep. 30, 2018USD ($)contract | Dec. 31, 2017USD ($) | |
Financing Receivable, Modifications [Line Items] | ||
Commitments to advance funds related to TDRs, maximum additional amounts | $ | $ 7,000 | $ 45,000 |
Number of Contracts | contract | 0 |
LOANS RECEIVABLE AND THE ALLO_8
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, 2018 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Which Incurred a Payment Default | $ 0 | $ 0 |
LOANS RECEIVABLE AND THE ALLO_9
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, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | $ 7,822,519 | $ 7,598,884 | $ 7,774,449 |
Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,271,363 | 1,284,363 | |
Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,943,793 | 1,937,423 | |
Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 309,809 | 314,188 | 311,706 |
Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 154,071 | 148,435 | |
Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 172,433 | 154,662 | |
One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 498,549 | 415,327 | |
Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 171,610 | 164,516 | |
Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 22,382 | 24,583 | |
Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,358,149 | 1,279,894 | 1,311,409 |
Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 359,966 | 338,388 | 339,932 |
One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 849,928 | 848,289 | $ 869,556 |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 539,143 | 522,931 | |
Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 171,323 | 165,885 | |
Pass (Risk Ratings 1-5) [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 7,707,813 | 7,431,182 | |
Pass (Risk Ratings 1-5) [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,246,900 | 1,246,125 | |
Pass (Risk Ratings 1-5) [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,935,890 | 1,918,940 | |
Pass (Risk Ratings 1-5) [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 309,490 | 313,432 | |
Pass (Risk Ratings 1-5) [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 154,071 | 148,435 | |
Pass (Risk Ratings 1-5) [Member] | Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 172,433 | 154,662 | |
Pass (Risk Ratings 1-5) [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 495,941 | 411,802 | |
Pass (Risk Ratings 1-5) [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 160,046 | 153,073 | |
Pass (Risk Ratings 1-5) [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 19,607 | 21,665 | |
Pass (Risk Ratings 1-5) [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,316,610 | 1,213,365 | |
Pass (Risk Ratings 1-5) [Member] | Small Credit-Scored Business Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 583,700 | 296,800 | |
Pass (Risk Ratings 1-5) [Member] | Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 346,176 | 321,110 | |
Pass (Risk Ratings 1-5) [Member] | One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 844,853 | 842,304 | |
Pass (Risk Ratings 1-5) [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 534,780 | 520,675 | |
Pass (Risk Ratings 1-5) [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 171,016 | 165,594 | |
Special mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 34,144 | 48,468 | |
Special mention [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 10,037 | 12,227 | |
Special mention [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 9,118 | |
Special mention [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Special mention [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Special mention [Member] | Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Special mention [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Special mention [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 10,766 | 10,554 | |
Special mention [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Special mention [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 7,324 | 12,135 | |
Special mention [Member] | Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 4,589 | 3,852 | |
Special mention [Member] | One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 518 | 569 | |
Special mention [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 900 | 0 | |
Special mention [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 10 | 13 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 80,469 | 119,122 | |
Substandard [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 14,426 | 26,011 | |
Substandard [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 7,903 | 9,365 | |
Substandard [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 319 | 756 | |
Substandard [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Substandard [Member] | Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Substandard [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 2,608 | 3,525 | |
Substandard [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 798 | 889 | |
Substandard [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 2,775 | 2,918 | |
Substandard [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 34,122 | 54,282 | |
Substandard [Member] | Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 9,201 | 13,426 | |
Substandard [Member] | One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 4,557 | 5,416 | |
Substandard [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 3,463 | 2,256 | |
Substandard [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 297 | 278 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 93 | 112 | |
Doubtful [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Doubtful [Member] | Commercial real estate - investment properties [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] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Doubtful [Member] | Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Doubtful [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Doubtful [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Doubtful [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Doubtful [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 93 | 112 | |
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 secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Doubtful [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | Commercial real estate - investment properties [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] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | Land and land development - commercial [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 secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Loss [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | $ 0 | $ 0 |
LOANS RECEIVABLE AND THE ALL_10
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Age Analysis of Company's Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 20,624 | $ 45,980 | |
Purchased Credit-Impaired | 12,944 | 21,310 | $ 23,221 |
Current | 7,788,951 | 7,531,594 | |
Total loans | 7,822,519 | 7,598,884 | 7,774,449 |
Loans 90 days or more past due and still accruing | 1,887 | 1,486 | |
Nonaccrual loans | 13,919 | 25,543 | |
Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,494 | 10,889 | |
Purchased Credit-Impaired | 5,369 | 7,682 | |
Current | 1,263,500 | 1,265,792 | |
Total loans | 1,271,363 | 1,284,363 | |
Loans 90 days or more past due and still accruing | 23 | 0 | |
Nonaccrual loans | 2,884 | 6,447 | |
Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,697 | 5,833 | |
Purchased Credit-Impaired | 3,000 | 7,166 | |
Current | 1,939,096 | 1,924,424 | |
Total loans | 1,943,793 | 1,937,423 | |
Loans 90 days or more past due and still accruing | 405 | 0 | |
Nonaccrual loans | 844 | 4,199 | |
Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 105 | |
Purchased Credit-Impaired | 142 | 169 | 173 |
Current | 309,667 | 313,914 | |
Total loans | 309,809 | 314,188 | 311,706 |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 0 | |
Commercial construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 154,071 | 148,435 | |
Total loans | 154,071 | 148,435 | |
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 | 3,416 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 172,433 | 151,246 | |
Total loans | 172,433 | 154,662 | |
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 | 1,586 | 5,915 | |
Purchased Credit-Impaired | 461 | 446 | |
Current | 496,502 | 408,966 | |
Total loans | 498,549 | 415,327 | |
Loans 90 days or more past due and still accruing | 0 | 298 | |
Nonaccrual loans | 1,297 | 0 | |
Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,501 | 798 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 170,109 | 163,718 | |
Total loans | 171,610 | 164,516 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 798 | 798 | |
Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Purchased Credit-Impaired | 2,775 | 2,919 | |
Current | 19,607 | 21,664 | |
Total loans | 22,382 | 24,583 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 0 | |
Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4,401 | 4,555 | |
Purchased Credit-Impaired | 621 | 2,159 | 2,608 |
Current | 1,353,127 | 1,273,180 | |
Total loans | 1,358,149 | 1,279,894 | 1,311,409 |
Loans 90 days or more past due and still accruing | 87 | 18 | |
Nonaccrual loans | 2,921 | 3,406 | |
Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,804 | 3,148 | |
Purchased Credit-Impaired | 398 | 565 | 683 |
Current | 357,764 | 334,675 | |
Total loans | 359,966 | 338,388 | 339,932 |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 1,645 | 6,132 | |
One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,692 | 8,431 | |
Purchased Credit-Impaired | 111 | 136 | 265 |
Current | 847,125 | 839,722 | |
Total loans | 849,928 | 848,289 | $ 869,556 |
Loans 90 days or more past due and still accruing | 1,076 | 1,085 | |
Nonaccrual loans | 1,827 | 3,264 | |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,865 | 2,130 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 535,278 | 520,801 | |
Total loans | 539,143 | 522,931 | |
Loans 90 days or more past due and still accruing | 282 | 85 | |
Nonaccrual loans | 1,611 | 1,239 | |
Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 584 | 760 | |
Purchased Credit-Impaired | 67 | 68 | |
Current | 170,672 | 165,057 | |
Total loans | 171,323 | 165,885 | |
Loans 90 days or more past due and still accruing | 14 | 0 | |
Nonaccrual loans | 92 | 58 | |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,601 | 24,084 | |
30 to 59 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 5,323 | |
30 to 59 Days Past Due [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 309 | 1,737 | |
30 to 59 Days Past Due [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 105 | |
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 | 3,416 | |
30 to 59 Days Past Due [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 4,892 | |
30 to 59 Days Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 703 | 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 | 2,100 | 1,574 | |
30 to 59 Days Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 165 | 598 | |
30 to 59 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 95 | 4,475 | |
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 | 1,878 | 1,355 | |
30 to 59 Days Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 351 | 609 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,533 | 3,177 | |
60 to 89 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 160 | 76 | |
60 to 89 Days Past Due [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 233 | 0 | |
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 | 0 | |
60 to 89 Days Past Due [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,208 | 725 | |
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 | 0 | |
60 to 89 Days Past Due [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 480 | 404 | |
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 | 533 | |
60 to 89 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 586 | 1,241 | |
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 | 693 | 62 | |
60 to 89 Days Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 173 | 136 | |
90 Days or More Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11,490 | 18,719 | |
90 Days or More Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,334 | 5,490 | |
90 Days or More Past Due [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,155 | 4,096 | |
90 Days or More Past Due [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 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 | 378 | 298 | |
90 Days or More Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 798 | 798 | |
90 Days or More Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,821 | 2,577 | |
90 Days or More Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,639 | 2,017 | |
90 Days or More Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,011 | 2,715 | |
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 | 1,294 | 713 | |
90 Days or More Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 60 | $ 15 |
LOANS RECEIVABLE AND THE ALL_11
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | $ 89,028 | $ 85,997 | |||||||
Provision for loan losses | $ 2,000 | $ 2,000 | 6,000 | 6,000 | |||||
Recoveries | 735 | 776 | 3,663 | 3,153 | |||||
Charge-offs | (1,347) | (2,262) | (3,428) | (6,050) | |||||
Allowance for loan losses, Ending balance | 95,263 | 89,100 | 95,263 | 89,100 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | $ 457 | $ 773 | |||||||
Allowance collectively evaluated for impairment | 94,721 | 88,320 | |||||||
Allowance for purchased credit-impaired loans | 85 | 7 | |||||||
Total allowance for loan losses | 95,263 | 89,100 | 89,028 | 85,997 | 95,263 | $ 93,875 | $ 89,028 | 89,100 | $ 88,586 |
Loans individually evaluated for impairment | 18,818 | 33,531 | |||||||
Loans collectively evaluated for impairment | 7,790,757 | 7,717,697 | |||||||
Purchased Credit-Impaired | 12,944 | 21,310 | 23,221 | ||||||
Total loans | 7,822,519 | 7,598,884 | 7,774,449 | ||||||
Commercial real estate [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 22,824 | 20,993 | |||||||
Provision for loan losses | 824 | (236) | 1,144 | 2,716 | |||||
Recoveries | 12 | 19 | 1,580 | 353 | |||||
Charge-offs | (102) | (584) | (401) | (631) | |||||
Allowance for loan losses, Ending balance | 25,147 | 23,431 | 25,147 | 23,431 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 297 | 263 | |||||||
Allowance collectively evaluated for impairment | 24,850 | 23,168 | |||||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||||
Total allowance for loan losses | 25,147 | 23,431 | 22,824 | 20,993 | 25,147 | 24,413 | 22,824 | 23,431 | 24,232 |
Loans individually evaluated for impairment | 8,769 | 13,866 | |||||||
Loans collectively evaluated for impairment | 3,198,018 | 3,332,724 | |||||||
Purchased Credit-Impaired | 8,369 | 15,684 | |||||||
Total loans | 3,215,156 | 3,362,274 | |||||||
Multifamily real estate [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 1,633 | 1,360 | |||||||
Provision for loan losses | 27 | 63 | 2,112 | 254 | |||||
Recoveries | 0 | 0 | 0 | 11 | |||||
Charge-offs | 0 | 0 | 0 | 0 | |||||
Allowance for loan losses, Ending balance | 3,745 | 1,625 | 3,745 | 1,625 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||||
Allowance collectively evaluated for impairment | 3,745 | 1,625 | |||||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||||
Total allowance for loan losses | 3,745 | 1,625 | 1,633 | 1,360 | 3,745 | 3,718 | 1,633 | 1,625 | 1,562 |
Loans individually evaluated for impairment | 0 | 0 | |||||||
Loans collectively evaluated for impairment | 309,667 | 311,533 | |||||||
Purchased Credit-Impaired | 142 | 169 | 173 | ||||||
Total loans | 309,809 | 314,188 | 311,706 | ||||||
Construction and Land [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 27,568 | 34,252 | |||||||
Provision for loan losses | (1,996) | 2,037 | (2,715) | (6,010) | |||||
Recoveries | 5 | 73 | 190 | 1,180 | |||||
Charge-offs | (479) | 0 | (479) | 0 | |||||
Allowance for loan losses, Ending balance | 24,564 | 29,422 | 24,564 | 29,422 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 0 | 67 | |||||||
Allowance collectively evaluated for impairment | 24,564 | 29,348 | |||||||
Allowance for purchased credit-impaired loans | 0 | 7 | |||||||
Total allowance for loan losses | 24,564 | 29,422 | 27,568 | 34,252 | 24,564 | 27,034 | 27,568 | 29,422 | 27,312 |
Loans individually evaluated for impairment | 1,669 | 1,871 | |||||||
Loans collectively evaluated for impairment | 1,014,140 | 872,783 | |||||||
Purchased Credit-Impaired | 3,236 | 3,759 | |||||||
Total loans | 1,019,045 | 878,413 | |||||||
Commercial business [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 18,311 | 16,533 | |||||||
Provision for loan losses | (1,306) | (555) | 148 | 4,489 | |||||
Recoveries | 586 | 577 | 856 | 921 | |||||
Charge-offs | (473) | (491) | (1,367) | (3,286) | |||||
Allowance for loan losses, Ending balance | 17,948 | 18,657 | 17,948 | 18,657 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 17 | 52 | |||||||
Allowance collectively evaluated for impairment | 17,908 | 18,605 | |||||||
Allowance for purchased credit-impaired loans | 23 | 0 | |||||||
Total allowance for loan losses | 17,948 | 18,657 | 18,311 | 16,533 | 17,948 | 19,141 | 18,311 | 18,657 | 19,126 |
Loans individually evaluated for impairment | 384 | 5,899 | |||||||
Loans collectively evaluated for impairment | 1,357,144 | 1,302,902 | |||||||
Purchased Credit-Impaired | 621 | 2,159 | 2,608 | ||||||
Total loans | 1,358,149 | 1,279,894 | 1,311,409 | ||||||
Agricultural Business/Farmland [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 4,053 | 2,967 | |||||||
Provision for loan losses | 348 | 1,141 | (248) | 2,113 | |||||
Recoveries | 0 | 1 | 41 | 133 | |||||
Charge-offs | (5) | (1,001) | (341) | (1,264) | |||||
Allowance for loan losses, Ending balance | 3,505 | 3,949 | 3,505 | 3,949 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 71 | 196 | |||||||
Allowance collectively evaluated for impairment | 3,372 | 3,753 | |||||||
Allowance for purchased credit-impaired loans | 62 | 0 | |||||||
Total allowance for loan losses | 3,505 | 3,949 | 4,053 | 2,967 | 3,505 | 3,162 | 4,053 | 3,949 | 3,808 |
Loans individually evaluated for impairment | 3,298 | 6,495 | |||||||
Loans collectively evaluated for impairment | 356,270 | 332,754 | |||||||
Purchased Credit-Impaired | 398 | 565 | 683 | ||||||
Total loans | 359,966 | 338,388 | 339,932 | ||||||
One- to four-family [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 2,055 | 2,238 | |||||||
Provision for loan losses | 432 | 22 | 1,679 | (460) | |||||
Recoveries | 86 | 8 | 732 | 262 | |||||
Charge-offs | (27) | 0 | (43) | 0 | |||||
Allowance for loan losses, Ending balance | 4,423 | 2,040 | 4,423 | 2,040 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 64 | 184 | |||||||
Allowance collectively evaluated for impairment | 4,359 | 1,856 | |||||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||||
Total allowance for loan losses | 4,423 | 2,040 | 2,055 | 2,238 | 4,423 | 3,932 | 2,055 | 2,040 | 2,010 |
Loans individually evaluated for impairment | 4,497 | 5,182 | |||||||
Loans collectively evaluated for impairment | 845,320 | 864,109 | |||||||
Purchased Credit-Impaired | 111 | 136 | 265 | ||||||
Total loans | 849,928 | 848,289 | 869,556 | ||||||
Consumer [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 3,866 | 4,104 | |||||||
Provision for loan losses | 2,600 | 117 | 4,777 | 488 | |||||
Recoveries | 46 | 98 | 264 | 293 | |||||
Charge-offs | (261) | (186) | (797) | (869) | |||||
Allowance for loan losses, Ending balance | 8,110 | 4,016 | 8,110 | 4,016 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 8 | 11 | |||||||
Allowance collectively evaluated for impairment | 8,102 | 4,005 | |||||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||||
Total allowance for loan losses | 8,110 | 4,016 | 3,866 | 4,104 | 8,110 | 5,725 | 3,866 | 4,016 | 3,987 |
Loans individually evaluated for impairment | 201 | 218 | |||||||
Loans collectively evaluated for impairment | 710,198 | 700,892 | |||||||
Purchased Credit-Impaired | 67 | 49 | |||||||
Total loans | 710,466 | 701,159 | |||||||
Unallocated Financing Receivables [Member] | |||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||
Allowance for loan losses, Beginning balance | 8,718 | 3,550 | |||||||
Provision for loan losses | 1,071 | (589) | (897) | 2,410 | |||||
Recoveries | 0 | 0 | 0 | 0 | |||||
Charge-offs | 0 | 0 | 0 | 0 | |||||
Allowance for loan losses, Ending balance | 7,821 | 5,960 | 7,821 | 5,960 | |||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||||
Allowance collectively evaluated for impairment | 7,821 | 5,960 | |||||||
Allowance for purchased credit-impaired loans | 0 | 0 | |||||||
Total allowance for loan losses | $ 7,821 | $ 5,960 | $ 8,718 | $ 3,550 | 7,821 | $ 6,750 | $ 8,718 | 5,960 | $ 6,549 |
Loans individually evaluated for impairment | 0 | 0 | |||||||
Loans collectively evaluated for impairment | 0 | 0 | |||||||
Purchased Credit-Impaired | 0 | 0 | |||||||
Total loans | $ 0 | $ 0 |
GOODWILL, OTHER INTANGIBLE AS_3
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Goodwill, beginning of period | $ 242,659 | $ 244,583 |
Goodwill and other intangibles, net, beginning of period | 265,314 | 274,745 |
Amortization | (4,156) | (6,431) |
Goodwill, end of period | 242,659 | 242,659 |
Goodwill and other intangibles, net, end of period | 261,158 | 265,314 |
Goodwill, Other Increase (Decrease) | (1,924) | |
Intangible Assets (including Goodwill), Other Changes | (3,000) | |
Core Deposit Intangibles [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite lived assets Balance, beginning of period | 22,378 | 29,701 |
Amortization | (4,112) | (6,247) |
Finite lived assets Balance, end of period | 18,266 | 22,378 |
Finite-Lived Intangible Assets, Other Changes | (1,076) | |
Leasehold Improvements [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite lived assets Balance, beginning of period | 277 | 461 |
Amortization | (44) | (184) |
Finite lived assets Balance, end of period | $ 233 | 277 |
Finite-Lived Intangible Assets, Other Changes | $ 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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Real Estate Owned [Roll Forward] | ||||
Balance, beginning of the period | $ 473 | $ 2,427 | $ 360 | $ 11,081 |
Additions from loan foreclosures | 0 | 0 | 502 | 46 |
Additions from capitalized costs | 0 | 0 | 0 | 54 |
Proceeds from dispositions of REO | (90) | (961) | (385) | (11,382) |
Gain on sale of REO | 8 | 30 | 74 | 1,953 |
Valuation adjustments in the period | (27) | 0 | (187) | (256) |
Balance, end of the period | $ 364 | $ 1,496 | $ 364 | $ 1,496 |
GOODWILL, OTHER INTANGIBLE AS_4
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Estimated Annual Amortization Expense) (Details) - Core Deposit Intangibles [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Remainder of 2017 | $ 1,348 | ||
2,018 | 4,659 | ||
2,019 | 3,976 | ||
2,020 | 3,291 | ||
2,021 | 2,511 | ||
Thereafter | 2,481 | ||
Finite lived assets, net | $ 18,266 | $ 22,378 | $ 29,701 |
REAL ESTATE OWNED, NET REAL EST
REAL ESTATE OWNED, NET REAL ESTATE OWNED, NET (Textual) (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Real Estate Owned [Line Items] | ||||||
Real Estate Owned | $ 364,000 | $ 473,000 | $ 360,000 | $ 1,496,000 | $ 2,427,000 | $ 11,081,000 |
Mortgage Loans in Process of Foreclosure, Amount | 900,000 | 2,042,000 | ||||
One- to four-family residential [Member] | ||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned | $ 46,000 | $ 0 |
GOODWILL, OTHER INTANGIBLE AS_5
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||||||
Servicing Asset at Amortized Cost, Additions, Acquisitions | $ 47 | $ 0 | $ 0 | |||||
Servicing Asset at Amortized Cost, Additions | $ 92 | |||||||
ERROR in label resolution. | ||||||||
Morgage Servicing Rights at Amortized Value [Line Items] | ||||||||
Loans Serviced For Others | 2,300,000 | 2,300,000 | $ 2,190,000 | |||||
Custodial Accounts | 24,200 | 24,200 | $ 10,200 | |||||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||||||
Balance, net of valuation allowance, beginning of the period | 14,521 | 14,985 | 14,738 | 15,249 | ||||
Additions—amounts capitalized | 952 | 826 | 2,636 | 2,477 | ||||
Amortization | (999) | [1] | (1,057) | [1] | (2,945) | (2,972) | ||
Balance, net of valuation allowance, end of the period | [2] | 14,521 | $ 14,754 | 14,521 | $ 14,754 | |||
Valuation allowance, end of period | $ 0 | $ 0 | ||||||
[1] | Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. | |||||||
[2] | There was no valuation allowance as of September 30, 2018 and 2017. |
DEPOSITS (Deposit Liabilities)
DEPOSITS (Deposit Liabilities) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | |
Deposits: | |||
Non-interest-bearing accounts | $ 3,469,294,000 | $ 3,265,544,000 | |
Interest-bearing checking | 1,034,678,000 | 971,137,000 | |
Regular savings accounts | 1,627,560,000 | 1,557,500,000 | |
Money market accounts | 1,373,618,000 | 1,422,313,000 | |
Total interest-bearing transaction and saving accounts | 4,035,856,000 | 3,950,950,000 | |
Certificates of deposit less than or equal to $250,000 | 1,026,984,000 | 813,997,000 | |
Certificates of deposit greater than $250,000 | 153,690,000 | 152,940,000 | |
Total certificates of deposit | [1] | 1,180,674,000 | 966,937,000 |
Total deposits | 8,685,824,000 | 8,183,431,000 | |
Included in total deposits: | |||
Public fund transaction and savings accounts | 187,759,000 | 198,719,000 | |
Public fund interest-bearing certificates | 25,367,000 | 23,685,000 | |
Total public deposits | 213,126,000 | 222,404,000 | |
Total brokered deposits | 325,154,000 | 57,228,000 | |
CD acquisition premium | $ 0 | $ 11,000 | |
[1] | Certificates of deposit include $0 and $11,000 of acquisition premiums at September 30, 2018 and December 31, 2017, respectively. |
DEPOSITS DEPOSITS (Maturities a
DEPOSITS DEPOSITS (Maturities and Weighted Average Interest Rates of Certificates of Deposit) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Maturities of Time Deposits [Abstract] | |||
Maturing in one year or less | $ 879,988 | ||
Maturing after one year through two years | 174,336 | ||
Maturing after two years through three years | 97,508 | ||
Maturing after three years through four years | 15,864 | ||
Maturing after four years through five years | 10,676 | ||
Maturing after five years | 2,302 | ||
Total certificates of deposit | [1] | $ 1,180,674 | $ 966,937 |
Weighted Average Rate [Abstract] | |||
Maturing in one year or less | 1.08% | ||
Maturing after one year through two years | 1.11% | ||
Maturing after two years through three years | 1.45% | ||
Maturing after three years through four years | 1.21% | ||
Maturing after four years through five years | 1.54% | ||
Maturing after five years | 1.07% | ||
Total certificates of deposit | 1.12% | ||
[1] | Certificates of deposit include $0 and $11,000 of acquisition premiums at September 30, 2018 and December 31, 2017, respectively. |
DEPOSITS DEPOSITS (Textual) (De
DEPOSITS DEPOSITS (Textual) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 157.7 | $ 155.9 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value By Balance Sheet Location) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Securities—trading | $ 25,764,000 | $ 22,318,000 |
Securities—available-for-sale | 1,412,273,000 | 919,485,000 |
Securities—held-to-maturity | 254,094,000 | 262,188,000 |
Liabilities: | ||
FHLB advances at fair value | 221,184,000 | 202,000 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 248,661,000 | 261,200,000 |
Securities—trading | 25,764,000 | 22,318,000 |
Securities—available-for-sale | 1,412,273,000 | 919,485,000 |
Loans receivable held for sale | 72,850,000 | 40,725,000 |
Loans receivable | 7,822,519,000 | 7,598,884,000 |
FHLB stock | 19,196,000 | 10,334,000 |
Bank-owned life insurance | 163,265,000 | 162,668,000 |
Mortgage servicing rights | 14,521,000 | 14,738,000 |
Equity Securities, FV-NI | 416,000 | 0 |
Liabilities: | ||
Demand, interest checking and money market accounts | 5,877,590,000 | 5,658,994,000 |
Regular savings | 1,627,560,000 | 1,557,500,000 |
Certificates of deposit | 1,180,674,000 | 966,937,000 |
FHLB advances at fair value | 221,184,000 | 202,000 |
Other borrowings | 98,979,000 | 95,860,000 |
Junior subordinated debentures at fair value | 113,110,000 | 98,707,000 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 248,661,000 | 261,200,000 |
Securities—trading | 25,764,000 | 22,318,000 |
Securities—available-for-sale | 1,412,273,000 | 919,485,000 |
Loans receivable held for sale | 72,924,000 | 40,923,000 |
Loans receivable | 7,693,348,000 | 7,445,990,000 |
FHLB stock | 19,196,000 | 10,334,000 |
Bank-owned life insurance | 163,265,000 | 162,668,000 |
Mortgage servicing rights | 23,890,000 | 19,835,000 |
Equity Securities, FV-NI | 416,000 | 0 |
Liabilities: | ||
Demand, interest checking and money market accounts | 5,877,590,000 | 5,658,994,000 |
Regular savings | 1,627,560,000 | 1,557,500,000 |
Certificates of deposit | 1,164,982,000 | 947,517,000 |
FHLB advances at fair value | 221,184,000 | 202,000 |
Other borrowings | 98,979,000 | 95,860,000 |
Junior subordinated debentures at fair value | 113,110,000 | 98,707,000 |
Interest rate swaps [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 6,385,000 | 5,083,000 |
Liabilities: | ||
Derivatives: | 6,385,000 | 5,083,000 |
Interest rate swaps [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 6,385,000 | 5,083,000 |
Liabilities: | ||
Derivatives: | 6,385,000 | 5,083,000 |
Interest Rate Forward Sales Commitments [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 580,000 | 523,000 |
Liabilities: | ||
Derivatives: | 24,000 | 201,000 |
Interest Rate Forward Sales Commitments [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 580,000 | 523,000 |
Liabilities: | ||
Derivatives: | 24,000 | 201,000 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | ||
Assets: | ||
Securities—held-to-maturity | 255,429,000 | 256,793,000 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | ||
Assets: | ||
Securities—held-to-maturity | 250,824,000 | 258,710,000 |
Fair Value, Inputs, Level 3 [Member] | Carrying Value | ||
Assets: | ||
Securities—held-to-maturity | 3,270,000 | 3,478,000 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value | ||
Assets: | ||
Securities—held-to-maturity | $ 3,270,000 | $ 3,478,000 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | $ 25,764 | $ 22,318 |
Securities—available-for-sale | 1,412,273 | 919,485 |
Advances from FHLB | 221,184 | 202 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 25,764 | 22,318 |
Securities—available-for-sale | 1,412,273 | 919,485 |
Total assets | 1,512,546 | 979,801 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 113,110 | 98,707 |
Total liabilities | 119,519 | 103,991 |
Recurring [Member] | Interest rate lock and forward sale commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 580 | 5,083 |
Derivative liabilities | 24 | 5,083 |
Recurring [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,385 | 523 |
Derivative liabilities | 6,385 | 201 |
Recurring [Member] | U.S. Government and agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 136,308 | 72,466 |
Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 100 | 100 |
Securities—available-for-sale | 65,986 | 68,733 |
Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 5,040 | 5,393 |
Recurring [Member] | TPS and TRUP CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 25,664 | 22,058 |
Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 1,182,518 | 739,557 |
Recurring [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 22,421 | 27,758 |
Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 160 | |
Securities—available-for-sale | 5,578 | |
Recurring [Member] | Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Fair Value Disclosure | 67,128 | 32,392 |
Recurring [Member] | Securities (Assets) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 416 | |
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 |
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 and forward sale 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—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—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 | |
Securities—available-for-sale | 0 | |
Recurring [Member] | Level 1 [Member] | Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Securities (Assets) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 0 | |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 100 | 260 |
Securities—available-for-sale | 1,412,273 | 919,485 |
Total assets | 1,486,882 | 957,743 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 0 | 0 |
Total liabilities | 6,409 | 5,284 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate lock and forward sale commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 580 | 5,083 |
Derivative liabilities | 24 | 5,083 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,385 | 523 |
Derivative liabilities | 6,385 | 201 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government and agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 136,308 | 72,466 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 100 | 100 |
Securities—available-for-sale | 65,986 | 68,733 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 5,040 | 5,393 |
Recurring [Member] | Fair Value, Inputs, 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] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 1,182,518 | 739,557 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 22,421 | 27,758 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 160 | |
Securities—available-for-sale | 5,578 | |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Fair Value Disclosure | 67,128 | 32,392 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Securities (Assets) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 416 | |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 25,664 | 22,058 |
Securities—available-for-sale | 0 | 0 |
Total assets | 25,664 | 22,058 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 113,110 | 98,707 |
Total liabilities | 113,110 | 98,707 |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest rate lock and forward sale 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] | Fair Value, Inputs, 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] | Fair Value, Inputs, Level 3 [Member] | U.S. Government and agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Fair Value, Inputs, 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] | Fair Value, Inputs, 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] | Fair Value, Inputs, Level 3 [Member] | TPS and TRUP CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 25,664 | 22,058 |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 0 | 0 |
Recurring [Member] | Fair Value, Inputs, 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] | Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 0 | |
Securities—available-for-sale | 0 | |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | $ 0 |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Securities (Assets) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Valuation Technique) (Details) - Fair Value, Inputs, Level 3 [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Junior Subordinated Debt [Member] | Discounted cash flows [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Discount Rate, Description of Variable Rate Basis | three-month LIBOR | |||
Fair Value Inputs, Discount Rate, Basis Spread on Variable Rate Basis | 4.00% | 4.00% | ||
Corporate Bonds (TPS securities) [Member] | Weighted Average [Member] | Discounted cash flows [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Fair Value Input, Discount Rate | 6.40% | 6.69% | ||
Impaired Loans [Member] | Weighted Average [Member] | discount to appraised value [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
fair value inputs, discount to appraised value | 8.5% to 20.0% | |||
Impaired Loans [Member] | Weighted Average [Member] | Valuation, Market Approach [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
fair value inputs, discount to appraised value | .085 | |||
Impaired Loans [Member] | Minimum [Member] | Valuation, Market Approach [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
fair value inputs, discount to appraised value | 0.085 | |||
Impaired Loans [Member] | Maximum [Member] | Valuation, Market Approach [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
fair value inputs, discount to appraised value | 0.2 | |||
Real Estate Owned [Member] | Weighted Average [Member] | discount to appraised value [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
fair value inputs, discount to appraised value | 0.639 | 0.42 | ||
Real Estate Owned [Member] | Minimum [Member] | Discounted cash flows [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
fair value inputs, discount to appraised value | .17 | 0 | ||
Real Estate Owned [Member] | Maximum [Member] | Discounted cash flows [Member] | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
fair value inputs, discount to appraised value | .42 | 0.45 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Unobservable Inputs Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Junior Subordinated Debt [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 112,774 | $ 96,852 | $ 98,707 | $ 95,200 |
Liabilities (gains) losses | 336 | 428 | 14,403 | 2,080 |
Ending balance | 113,110 | 97,280 | 113,110 | 97,280 |
TPS Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 25,540 | 21,568 | ||
Assets gains (losses), including OTTI | 86 | 107 | ||
Ending balance | 25,626 | 21,675 | 25,626 | 21,675 |
TPS and TRUP CDOs [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 22,058 | 21,143 | ||
Assets gains (losses), including OTTI | 3,568 | 532 | ||
Ending balance | $ 25,626 | $ 21,675 | $ 25,626 | $ 21,675 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Nonrecurring Basis) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | $ (1,488) | $ (1,488) | $ (6,535) | ||
REO | 364 | 364 | 360 | ||
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 | ||
Fair Value, Inputs, 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 | ||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | (1,488) | (1,488) | (6,535) | ||
REO | 364 | 364 | $ 360 | ||
Gains (losses) resulting from nonrecurring fair value adjustments | (129) | $ (1,584) | (618) | $ (2,315) | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) resulting from nonrecurring fair value adjustments | (102) | (1,584) | (431) | (2,059) | |
Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gains (losses) resulting from nonrecurring fair value adjustments | $ (27) | $ 0 | $ (187) | $ (256) |
INCOME TAXES AND DEFERRED TAX_3
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Tax credit investments | $ 8,648 | $ 8,648 | $ 7,311 | ||
Unfunded commitments—tax credit investments | 4,361 | 4,361 | $ 4,417 | ||
Tax credits and other tax benefits recognized | 364 | $ 285 | 1,092 | $ 855 | |
Tax credit amortization expense included in provision for income taxes | $ 288 | $ 199 | $ 863 | $ 597 |
CALCULATION OF WEIGHTED AVERA_3
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 37,773 | $ 25,077 | $ 98,987 | $ 74,324 | $ 60,776 |
Basic weighted average shares outstanding | 32,256,789 | 32,982,532 | 32,300,688 | 32,966,214 | |
Plus unvested restricted stock | 119,834 | 96,567 | 105,726 | 94,958 | |
Diluted weighted shares outstanding | 32,376,623 | 33,079,099 | 32,406,414 | 33,061,172 | |
Earnings per common share | |||||
Basic | $ 1.17 | $ 0.76 | $ 3.06 | $ 2.25 | |
Diluted | $ 1.17 | $ 0.76 | $ 3.05 | $ 2.25 |
CALCULATION OF WEIGHTED AVERA_4
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE - Textuals (Details) - Warrant [Member] - Common Stock [Member] $ in Millions | Sep. 30, 2018USD ($)shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Warrants outstanding | $ | $ 18.6 |
Warrant [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Warrants outstanding, number of shares | shares | 243,998 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 50 Months Ended | 74 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | |
Restricted Stock Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Expense | $ 1.6 | $ 1.6 | $ 4.8 | $ 4.2 | ||
Compensation Cost Not yet Recognized | $ 10.9 | $ 10.9 | ||||
Compensation Cost Not yet Recognized, Period for Recognition | 31 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] | Restricted Stock 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 | 269,863 | |||||
Restricted stock grants, shares vested | 261,638 | |||||
Restricted stock grants, shares non-vested | 8,225 | 8,225 | ||||
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] | Restricted Stock Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock granted | 340,163 | |||||
Restricted stock grants, shares vested | 170,769 | |||||
2014 Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock granted | 184,197 | |||||
Restricted stock grants, shares vested | 34,975 | |||||
2018 Omnibus Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares Authorized | 900,000 | 900,000 | ||||
2018 Omnibus Incentive Plan [Member] | Restricted Stock Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock granted | 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Commitments Without Recorded Liability) (Details) | 9 Months Ended | ||
Sep. 30, 2018USD ($)location | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Reserve for Unfunded Loan Commitments | $ 2,400,000 | ||
Number of Properties Subject to Non-cancelable Operating Leases | location | 117 | ||
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 | ||
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | $ 2,650,671,000 | 2,300,593,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 15,129,000 | 14,579,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 61,465,000 | 56,030,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 4,108,000 | 11,451,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 58,308,000 | 48,091,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 25,802,000 | 17,837,000 | |
Counterparty default losses on forward contracts | 0 | $ 0 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 103,100,000 | $ 57,000,000 | |
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, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 6,385 | $ 5,083 |
Liability Derivatives, Fair Value | 6,385 | 5,083 |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 6,385 | 5,083 |
Liability Derivatives, Fair Value | 6,385 | 5,083 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 4,070 | 4,350 |
Liability Derivatives, Notional/Contract Amount | 4,070 | 4,350 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 257 | 447 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 257 | $ 447 |
DERIVATIVES AND HEDGING (Deri_2
DERIVATIVES AND HEDGING (Derivatives Not Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 6,385 | $ 5,083 |
Liability Derivatives, Fair Value | 6,385 | 5,083 |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 6,385 | 5,083 |
Liability Derivatives, Fair Value | 6,385 | 5,083 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 448,878 | 357,855 |
Liability Derivatives, Notional/Contract Amount | 305,798 | 345,810 |
Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 6,708 | 5,159 |
Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 6,152 | 4,837 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 280,872 | 285,047 |
Liability Derivatives, Notional/Contract Amount | 280,872 | 285,047 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 6,128 | 4,636 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 420 | 499 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 6,128 | 4,636 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 39,104 | 29,739 |
Liability Derivatives, Notional/Contract Amount | 24,926 | 13,763 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 212 | 225 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 24 | 153 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 128,902 | 43,069 |
Liability Derivatives, Notional/Contract Amount | 0 | 47,000 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 368 | 298 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 0 | $ 48 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | $ 148 | $ (348) | $ 581 | $ (419) |
Mortgage loan commitments [Member] | Mortgage banking operations [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | (177) | 50 | (13) | 235 |
Forward sales contracts [Member] | Mortgage banking operations [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | $ 325 | $ (398) | $ 594 | $ (654) |
DERIVATIVES AND HEDGING (Narrat
DERIVATIVES AND HEDGING (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative net liability position | $ 0.3 | $ 3.7 |
Collateral posted | $ 16 | $ 16.9 |
DERIVATIVES AND HEDGING (Deri_3
DERIVATIVES AND HEDGING (Derivative Offsetting) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | $ 6,385 | $ 5,083 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | 0 | 0 |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 6,385 | 5,083 |
Derivative Assets, Netting Adjustment Per Applicable Master Netting Agreements | 0 | (656) |
Derivative Assets, Fair Value of Financial Collateral in the Statement of Financial Condiation | 0 | 0 |
Derivative Assets, Net Amount | 6,385 | 4,427 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 6,385 | 5,083 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | 0 | 0 |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 6,385 | 5,083 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | (656) |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (295) | (3,467) |
Derivative Liabilities, Net Amount | 6,090 | 960 |
Interest rate swaps [Member] | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | 6,385 | 5,083 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | 0 | 0 |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 6,385 | 5,083 |
Derivative Assets, Netting Adjustment Per Applicable Master Netting Agreements | 0 | (656) |
Derivative Assets, Fair Value of Financial Collateral in the Statement of Financial Condiation | 0 | 0 |
Derivative Assets, Net Amount | 6,385 | 4,427 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 6,385 | 5,083 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | 0 | 0 |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 6,385 | 5,083 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | (656) |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (295) | (3,467) |
Derivative Liabilities, Net Amount | $ 6,090 | $ 960 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Debit And Credit Card Interchange Fees | $ 8,146 | $ 7,301 | $ 23,337 | $ 21,027 |
Debit and Credit Card Expense | (2,166) | (1,956) | (6,069) | (5,481) |
Merchant Services Expenses | (4,544) | (2,258) | (5,899) | (6,128) |
Other Service Charges | 971 | 904 | 3,071 | 3,093 |
Total Deposit Fees and Other Service Charges | 12,255 | 11,058 | 35,535 | 32,611 |
Deposit Account [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Mortgage banking operations | 4,501 | 4,296 | 13,348 | 12,589 |
Credit Card, Merchant Discount [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Mortgage banking operations | $ 5,347 | $ 2,771 | $ 7,747 | $ 7,511 |