Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Banner Corporation | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0000946673 | |
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 | 2019 | |
Document Fiscal Period Focus | Q1 | |
Voting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 35,121,930 | |
Nonvoting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 39,192 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and due from banks | $ 218,458 | $ 231,029 | |
Interest bearing deposits | 43,080 | 41,167 | |
Total cash and cash equivalents | 261,538 | 272,196 | |
Securities—trading, amortized cost $27,203 and $27,203, respectively | 25,838 | 25,896 | |
Securities—available-for-sale, amortized cost $1,599,347 and $1,648,421, respectively | 1,603,804 | 1,636,223 | |
Securities—held-to-maturity, fair value $220,112 and $232,537, respectively | 218,993 | 234,220 | |
Total securities | 1,848,635 | 1,896,339 | |
Federal Home Loan Bank (FHLB) stock | 27,063 | 31,955 | |
Loans held for sale (includes $37.4 million and $164.8 million, at fair value, respectively) | 45,865 | 171,031 | |
Loans receivable | 8,692,657 | 8,684,595 | |
Allowance for loan losses | 97,308 | 96,485 | |
Loans and Leases Receivable, Net Amount | 8,595,349 | 8,588,110 | |
Accrued interest receivable | 41,220 | 38,593 | |
Real estate owned (REO), held for sale, net | 2,611 | 2,611 | |
Property and equipment, net | 171,057 | 171,809 | |
Goodwill | 339,154 | 339,154 | |
Other intangibles, net | 30,647 | 32,924 | |
Bank-owned life insurance (BOLI) | 178,202 | 177,467 | |
Deferred tax assets, net | 69,642 | 75,020 | |
Other assets | 129,302 | 74,108 | |
Total assets | 11,740,285 | 11,871,317 | |
Deposits: | |||
Non-interest-bearing | 3,676,984 | 3,657,817 | |
Interest-bearing transaction and savings accounts | 4,535,969 | 4,498,966 | |
Interest-bearing certificates | [1] | 1,163,276 | 1,320,265 |
Total deposits | 9,376,229 | 9,477,048 | |
Advances from FHLB | 418,000 | 540,189 | |
Other borrowings | 121,719 | 118,995 | |
Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) | 113,917 | 114,091 | |
Accrued expenses and other liabilities | 158,669 | 102,061 | |
Deferred compensation | 40,560 | 40,338 | |
Total liabilities | 10,229,094 | 10,392,722 | |
COMMITMENTS AND CONTINGENCIES (Note 13) | |||
SHAREHOLDERS’ EQUITY | |||
Preferred stock - $0.01 par value per share, 500,000 shares authorized; no shares outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 | |
Retained earnings | 152,911 | 134,055 | |
Carrying value of shares held in trust for stock-based compensation plans | (7,294) | (7,289) | |
Liability for common stock issued to stock related compensation plans | 7,294 | 7,289 | |
Accumulated other comprehensive loss | 19,894 | 7,104 | |
Total shareholders' equity | 1,511,191 | 1,478,595 | |
Total liabilities and shareholders' equity | 11,740,285 | 11,871,317 | |
Voting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | 1,337,592 | 1,336,030 | |
Nonvoting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | $ 794 | $ 1,406 | |
[1] | Certificates of deposit include $473,000 and $563,000 of acquisition premiums at March 31, 2019 and December 31, 2018, respectively. |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Securities—trading, amortized cost basis | $ 27,203 | $ 27,203 |
Securities—available-for-sale, amortized cost basis | 1,599,347 | 1,648,421 |
Securities—held-to-maturity, fair value | $ 220,112 | $ 232,537 |
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 | 35,113,554 | 35,107,839 |
Common stock, shares outstanding | 35,113,554 | 35,107,839 |
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 | 39,192 | 74,933 |
Common stock, shares outstanding | 39,192 | 74,933 |
Loans [Member] | Recurring [Member] | ||
ASSETS | ||
Loans Held-for-sale, Fair Value Disclosure | $ 37,410 | $ 164,767 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Acquisition-related costs | $ 2,148 | $ 0 |
INTEREST INCOME: | ||
Loans receivable | 115,455 | 94,022 |
Mortgage-backed securities | 10,507 | 7,331 |
Securities and cash equivalents | 4,034 | 3,467 |
Total interest income | 129,996 | 104,820 |
INTEREST EXPENSE: | ||
Deposits | 8,643 | 3,358 |
FHLB advances | 3,476 | 677 |
Other borrowings | 60 | 70 |
Junior subordinated debentures | 1,713 | 1,342 |
Total interest expense | 13,892 | 5,447 |
Net interest income | 116,104 | 99,373 |
PROVISION FOR LOAN LOSSES | 2,000 | 2,000 |
Net interest income after provision for loan losses | 114,104 | 97,373 |
NON-INTEREST INCOME: | ||
Deposit fees and other service charges | 12,618 | 11,296 |
Bank-owned life insurance (BOLI) | 1,276 | 853 |
Miscellaneous | 804 | 1,037 |
Other operating income | 18,113 | 18,050 |
Net gain on sale of securities | 1 | 4 |
Net change in valuation of financial instruments carried at fair value | 11 | 3,308 |
Total non-interest income | 18,125 | 21,362 |
NON-INTEREST EXPENSE: | ||
Salary and employee benefits | 54,640 | 50,067 |
Less capitalized loan origination costs | (4,849) | (4,011) |
Occupancy and equipment | 13,766 | 11,766 |
Information/computer data services | 5,326 | 4,381 |
Payment and card processing expenses | 3,984 | 3,700 |
Professional and legal expenses | 2,434 | 4,428 |
Advertising and marketing | 1,529 | 1,830 |
Deposit insurance | 1,418 | 1,341 |
State/municipal business and use taxes | 945 | 713 |
REO operations | (123) | 439 |
Amortization of core deposit intangibles | 2,052 | 1,382 |
Miscellaneous | 6,744 | 5,670 |
Total non-interest expense | 90,014 | 81,706 |
Noninterest Operating Expense, Before Acquisition Related Costs | 87,866 | 81,706 |
Income before provision for income taxes | 42,215 | 37,029 |
PROVISION FOR INCOME TAXES | 8,869 | 8,239 |
NET INCOME | $ 33,346 | $ 28,790 |
Earnings per common share: | ||
Basic | $ 0.95 | $ 0.89 |
Diluted | 0.95 | 0.89 |
Cumulative dividends declared per common share | $ 0.41 | $ 0.35 |
Weighted average number of common shares outstanding, Basic | 35,050,376 | 32,397,568 |
Weighted average number of common shares outstanding, Diluted | 35,172,056 | 32,516,456 |
Mortgage Banking [Member] | ||
NON-INTEREST INCOME: | ||
Mortgage banking operations | $ 3,415 | $ 4,864 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 33,346 | $ 28,790 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF INCOME TAXES: | ||
Unrealized holding gain (loss) on available-for-sale securities arising during the period | 16,656 | (14,768) |
Reclassification for net gains on available-for-sale securities realized in earnings | (1) | (2) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | 174 | (13,809) |
Income tax related to other comprehensive (loss) income | (4,039) | 6,802 |
Other comprehensive income (loss) | 12,790 | (21,777) |
COMPREHENSIVE INCOME | $ 46,136 | $ 7,013 |
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] |
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 | ||
Balance, beginning of the period at Dec. 31, 2017 | 1,272,626 | $ 1,187,127 | 90,535 | (5,036) | |
Balance, beginning of the period (in shares) at Dec. 31, 2017 | 32,726,485 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 28,790 | 28,790 | |||
Other comprehensive income, net of income tax | (21,777) | (21,777) | |||
Repurchase of common stock | (15,359) | (15,359) | |||
Repurchase of common stock (in shares) | (269,711) | ||||
Accrual of dividends on common stock | (11,349) | (11,349) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 1,192 | 1,192 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (33,101) | ||||
Balance, end of the period at Mar. 31, 2018 | 1,254,123 | 1,172,960 | 79,773 | 1,390 | |
Balance, end of the period (in shares) at Mar. 31, 2018 | 32,423,673 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 32,424 | 32,424 | |||
Other comprehensive income, net of income tax | (6,521) | (6,521) | |||
Accrual of dividends on common stock | (27,712) | (27,712) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 696 | 696 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (17,977) | ||||
Balance, end of the period at Jun. 30, 2018 | 1,253,010 | 1,173,656 | 84,485 | (5,131) | |
Balance, end of the period (in shares) at Jun. 30, 2018 | 32,405,696 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 37,773 | 37,773 | |||
Other comprehensive income, net of income tax | (7,863) | (7,863) | |||
Accrual of dividends on common stock | (12,316) | (12,316) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 1,594 | 1,594 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (2,939) | ||||
Balance, end of the period at Sep. 30, 2018 | 1,272,198 | 1,175,250 | 109,942 | (12,994) | |
Balance, end of the period (in shares) at Sep. 30, 2018 | 32,402,757 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 37,527 | 37,527 | |||
Other comprehensive income, net of income tax | 20,098 | 20,098 | |||
Repurchase of common stock | (19,042) | (19,042) | |||
Repurchase of common stock (in shares) | (325,000) | ||||
Accrual of dividends on common stock | (13,414) | (13,414) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 1,519 | 1,519 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (3,056) | ||||
Business acquisition | 179,709 | 179,709 | |||
Business acquisition (in shares) | 3,108,071 | ||||
Balance, end of the period at Dec. 31, 2018 | 1,478,595 | 1,337,436 | 134,055 | 7,104 | |
Balance, end of the period (in shares) at Dec. 31, 2018 | 35,182,772 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 33,346 | 33,346 | |||
Other comprehensive income, net of income tax | 12,790 | 12,790 | |||
Accrual of dividends on common stock | (14,490) | (14,490) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 950 | 950 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (30,026) | ||||
Balance, end of the period at Mar. 31, 2019 | $ 1,511,191 | $ 1,338,386 | $ 152,911 | $ 19,894 | |
Balance, end of the period (in shares) at Mar. 31, 2019 | 35,152,746 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cumulative dividends declared per common share | $ 0.41 | $ 0.38 | $ 0.38 | $ 0.85 | $ 0.35 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 33,346 | $ 28,790 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation | 4,481 | 3,584 |
Deferred income and expense, net of amortization | (895) | (608) |
Amortization of core deposit intangibles | 2,052 | 1,382 |
Gain on sale of securities | (1) | (4) |
Net change in valuation of financial instruments carried at fair value | (11) | (3,308) |
Decrease (increase) in deferred taxes | (5,379) | 5,416 |
Increase in current taxes payable | 7,243 | 6,569 |
Stock-based compensation | 1,219 | 1,320 |
Increase in cash surrender value of BOLI | (1,267) | (844) |
Gain on sale of loans, net of capitalized servicing rights | (2,063) | (3,375) |
Loss on disposal of real estate held for sale and property and equipment | 371 | 58 |
Provision for loan losses | 2,000 | 2,000 |
Provision for losses on real estate held for sale | 0 | 160 |
Origination of loans held for sale | (134,747) | (222,168) |
Proceeds from sales of loans held for sale | 261,978 | 124,460 |
Net change in: | ||
Other assets | (984) | (5,100) |
Other liabilities | (12,847) | (2,311) |
Net cash provided from (used in) operating activities | 165,254 | (74,811) |
INVESTING ACTIVITIES: | ||
Purchases of securities—available-for-sale | (5,140) | (537,864) |
Principal repayments and maturities of securities—available-for-sale | 51,910 | 28,839 |
Proceeds from sales of securities—available-for-sale | 516 | 0 |
Purchases of securities—held-to-maturity | 0 | (5,312) |
Principal repayments and maturities of securities—held-to-maturity | 14,744 | 2,358 |
Loan originations, net of principal repayments | (8,988) | 45,574 |
Purchases of loans and participating interest in loans | 0 | (1,340) |
Proceeds from sales of other loans | 3,186 | 1,750 |
Purchases of property and equipment | (4,435) | (5,024) |
Proceeds from sale of real estate held for sale and sale of other property, net | 876 | 192 |
Proceeds from FHLB stock repurchase program | 52,372 | 32,558 |
Purchase of FHLB stock | (47,480) | (40,260) |
Other | 485 | 228 |
Net cash provided from (used in) investing activities | 58,046 | (478,301) |
FINANCING ACTIVITIES: | ||
(Decrease) increase in deposits, net | (100,819) | 359,631 |
Proceeds from FHLBank Advance, Investing Activities | 300,000 | 0 |
Repayments of long-term Federal Home Loan Bank Advances | (189) | (2) |
(Repayment) proceeds from overnight and short term FHLB advances, net | (422,000) | 192,000 |
Increase in other borrowings, net | 2,724 | 5,984 |
Cash dividends paid | (13,405) | (8,165) |
Taxes paid related to net share settlement of equity awards | 269 | 129 |
Payments for Repurchase of Common Stock | 0 | 15,359 |
Net cash (used in) provided from financing activities | (233,958) | 533,960 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (10,658) | (19,152) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 272,196 | 261,200 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 261,538 | 242,048 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid in cash | 13,812 | 5,185 |
Tax refunds received, net | (71) | (3) |
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 | 0 | 976 |
Dividends Payable | $ 14,863 | $ 11,450 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 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 2018 Consolidated Financial Statements and/or schedules to conform to the 2019 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 acquired and liabilities assumed 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, 2018 filed with the SEC (2018 Form 10-K). There have been no significant changes in our application of these accounting policies during the first three months of 2019 , except as described in Note 2. The information included in this Form 10-Q should be read in conjunction with our 2018 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 | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED | ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Leases (Topic 842) In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 leases) 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. 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. The Company adopted the requirements of Topic 842 effective January 1, 2019. The Company elected the transition option provided in ASU No. 2018-11 and applied the modified retrospective approach for leases that existed as of January 1, 2019, or were entered into thereafter. The Company elected 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. lease terms of twelve months or less). In addition, the Company elected the package of practical expedients in transition, which permitted us to not reassess our prior conclusions pertaining to lease identification, lease classification, and initial direct costs on leases that commenced prior to our adoption of the new standard. In connection with the adoption of this ASU, as of January 1, 2019, the Company recorded a $56 million right-of-use asset and a $59 million lease liability on its Consolidated Statements of Financial Condition. 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 and has completed the initial build out of the required models. The Company has also selected a different third party to provide a reasonable and supportable forecast. Next the Company will begin to incorporate the reasonable and supportable forecast and qualitative factors into the 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. The Company adopted this ASU effective January 1, 2019. The adoption of this ASU has not had 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 into 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. Adoption of ASU 2017-12 did not have a material impact on the Company's Consolidated Financial Statements. 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 requirements by requiring: 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. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Acquisition of Skagit Bancorp, Inc. Effective as of the close of business on November 1, 2018 , the Company acquired 100% of the outstanding common shares of Skagit Bancorp, Inc. (“Skagit”) and its wholly-owned subsidiary, Skagit Bank, a Washington State chartered commercial bank headquartered in Burlington, Washington, with 11 branches serving markets along the I-5 corridor from Seattle to the Canadian border. On that date, Skagit merged with and into Banner and Skagit Bank merged with and into Banner Bank. Pursuant to the previously announced terms of the merger, the equity holders of Skagit received an aggregate of 3.1 million shares of Banner voting common stock, plus cash in lieu of fractional shares and to cancel Skagit stock options for total consideration paid of $180.0 million . The acquisition provided $915.8 million in assets, $810.2 million in deposits and $632.4 million in loans to Banner. The application of the acquisition method of accounting resulted in recognition of a CDI asset of $16.4 million and goodwill of $96.5 million . The acquired CDI has been determined to have a useful life of approximately nine years and will be amortized on an accelerated basis. Goodwill is not amortized but will be evaluated for impairment on an annual basis or more often if circumstances dictate to determine if the carrying value remains appropriate. Goodwill will not be deductible for income tax purposes as the acquisition is accounted for as a tax-free exchange for tax purposes. The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): Skagit November 1, 2018 Consideration to Skagit equity holders: Cash paid $ 329 Fair value of common shares issued 179,709 Total consideration $ 180,038 Fair value of assets acquired: Cash and cash equivalents $ 19,167 Securities 210,326 Loans receivable (contractual amount of $645.6 million) 632,374 Real estate owned held for sale 2,593 Property and equipment 15,788 Core deposit intangible 16,368 Deferred tax asset 95 Other assets 19,110 Total assets acquired 915,821 Fair value of liabilities assumed: Deposits 810,209 Other liabilities 22,069 Total liabilities assumed 832,278 Net assets acquired 83,543 Goodwill $ 96,495 Acquired goodwill represents the premium the Company paid over the fair value of the net tangible and intangible assets acquired. 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. The Company paid this premium for a number of reasons, including growing the Company's customer base, acquiring assembled workforces, and expanding its presence in existing markets. See Note 7, Goodwill, Other Intangible Assets and Mortgage Servicing Rights for the accounting for goodwill and other intangible assets. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values becomes available. Additional adjustments to the acquisition accounting that may be required would most likely involve loans, property and equipment, or the deferred tax asset. As of November 1, 2018, the unpaid principal balance on purchased non-credit-impaired loans was $637.4 million . The fair value of the purchased non-credit-impaired loans was $625.2 million , resulting in a discount of $12.2 million recorded on these loans, which includes $7.9 million of a credit related discount. This discount is being accreted into income over the life of the loans on an effective yield basis. The following table presents the acquired PCI loans as of the acquisition date (in thousands): Skagit November 1, 2018 Acquired PCI loans: Contractually required principal and interest payments $ 9,897 Nonaccretable difference (1,915 ) Cash flows expected to be collected 7,982 Accretable yield (995 ) Fair value of PCI loans $ 6,987 The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities of Skagit for the period since November 2, 2018. Disclosure of the amount of Skagit’s revenue and net income (excluding integration costs) included in the Company’s Consolidated Statements of Operations is impracticable due to the integration of the operations and accounting for this acquisition. The pro forma impact of the Skagit acquisition to the historical financial results was determined to not be significant. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 are summarized as follows (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Corporate bonds $ 27,203 $ 25,838 $ 27,203 $ 25,838 Available-for-Sale: U.S. Government and agency obligations $ 139,621 $ 134 $ (1,440 ) $ 138,315 Municipal bonds 116,954 3,288 (187 ) 120,055 Corporate bonds 4,057 4 (17 ) 4,044 Mortgage-backed or related securities 1,320,826 10,952 (8,201 ) 1,323,577 Asset-backed securities 17,889 5 (81 ) 17,813 $ 1,599,347 $ 14,383 $ (9,926 ) $ 1,603,804 Held-to-Maturity: U.S. Government and agency obligations $ 389 $ 3 $ — $ 392 Municipal bonds 163,614 2,527 (1,248 ) 164,893 Corporate bonds 3,701 — (13 ) 3,688 Mortgage-backed or related securities 51,289 151 (301 ) 51,139 $ 218,993 $ 2,681 $ (1,562 ) $ 220,112 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Corporate bonds $ 27,203 $ 25,896 $ 27,203 $ 25,896 Available-for-Sale: U.S. Government and agency obligations $ 151,012 $ 149 $ (2,049 ) $ 149,112 Municipal bonds 116,548 1,806 (532 ) 117,822 Corporate bonds 3,556 — (61 ) 3,495 Mortgage-backed or related securities 1,355,258 5,210 (16,607 ) 1,343,861 Asset-backed securities 22,047 6 (120 ) 21,933 $ 1,648,421 $ 7,171 $ (19,369 ) $ 1,636,223 Held-to-Maturity: U.S. Government and agency obligations $ 1,006 $ 14 $ (1 ) $ 1,019 Municipal bonds 176,663 1,727 (2,578 ) 175,812 Corporate bonds 3,736 — (13 ) 3,723 Mortgage-backed or related securities 52,815 66 (898 ) 51,983 $ 234,220 $ 1,807 $ (3,490 ) $ 232,537 At March 31, 2019 and December 31, 2018 , 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 were as follows (in thousands): March 31, 2019 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 $ 713 $ (4 ) $ 120,227 $ (1,436 ) $ 120,940 $ (1,440 ) Municipal bonds 753 (3 ) 23,686 (184 ) 24,439 (187 ) Corporate bonds 2,344 (14 ) 297 (3 ) 2,641 (17 ) Mortgage-backed or related securities 42,354 (203 ) 608,455 (7,998 ) 650,809 (8,201 ) Asset-backed securities 6,861 (32 ) 9,956 (49 ) 16,817 (81 ) $ 53,025 $ (256 ) $ 762,621 $ (9,670 ) $ 815,646 $ (9,926 ) Held-to-Maturity Municipal bonds $ 915 $ (1 ) $ 42,524 $ (1,247 ) $ 43,439 $ (1,248 ) Corporate bonds — — 488 (13 ) 488 (13 ) Mortgage-backed or related securities 1,037 (7 ) 32,991 (294 ) 34,028 (301 ) $ 1,952 $ (8 ) $ 76,003 $ (1,554 ) $ 77,955 $ (1,562 ) December 31, 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 $ 75,885 $ (1,240 ) $ 50,508 $ (809 ) $ 126,393 $ (2,049 ) Municipal bonds 6,422 (54 ) 27,231 (478 ) 33,653 (532 ) Corporate bonds 3,199 (56 ) 295 (5 ) 3,494 (61 ) Mortgage-backed or related securities 316,074 (2,939 ) 571,989 (13,668 ) 888,063 (16,607 ) Asset-backed securities 10,582 (24 ) 9,913 (96 ) 20,495 (120 ) $ 412,162 $ (4,313 ) $ 659,936 $ (15,056 ) $ 1,072,098 $ (19,369 ) Held-to-Maturity U.S. Government and agency obligations $ 145 $ (1 ) $ — $ — $ 145 $ (1 ) Municipal bonds 29,898 (274 ) 44,637 (2,304 ) 74,535 (2,578 ) Corporate bonds — — 487 (13 ) 487 (13 ) Mortgage-backed or related securities 10,761 (220 ) 30,035 (678 ) 40,796 (898 ) $ 40,804 $ (495 ) $ 75,159 $ (2,995 ) $ 115,963 $ (3,490 ) At March 31, 2019 , there were 233 securities—available-for-sale with unrealized losses, compared to 271 at December 31, 2018 . At March 31, 2019 , there were 49 securities—held-to-maturity with unrealized losses, compared to 90 at December 31, 2018 . Management does not believe that any individual unrealized loss as of March 31, 2019 or December 31, 2018 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 three -month periods ended March 31, 2019 or 2018 . The Company did no t recognize any OTTI charges or recoveries on securities—trading during the three -month periods ended March 31, 2019 or 2018 . There were no securities—trading in a nonaccrual status at March 31, 2019 or December 31, 2018 . Net unrealized holding losses of $58,000 were recognized during the three months ended March 31, 2019 compared to $3.4 million of net unrealized holdings gains recognized during the three months ended March 31, 2018 . There was one sale of securities—available-for-sale during the three months ended March 31, 2019 , with a net gain of $1,000 . There were no sales of securities—available-for-sale during the three months ended March 31, 2018 , although partial calls of securities resulted in a net gain of $4,000 for the three months ended March 31, 2018 . There were no securities—available-for-sale in a nonaccrual status at March 31, 2019 or December 31, 2018 . There were no sales of securities—held-to-maturity during the three -month periods ended March 31, 2019 and 2018 . There were no securities—held-to-maturity in a nonaccrual status at March 31, 2019 or December 31, 2018 . The amortized cost and estimated fair value of securities at March 31, 2019 , 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. March 31, 2019 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 $ — $ — $ 6,520 $ 6,514 $ 2,869 $ 2,865 Maturing after one year through five years — — 86,092 86,474 61,698 61,839 Maturing after five years through ten years — — 382,934 386,318 57,947 58,934 Maturing after ten years through twenty years 27,203 25,838 198,705 201,247 62,540 63,667 Maturing after twenty years — — 925,096 923,251 33,939 32,807 $ 27,203 $ 25,838 $ 1,599,347 $ 1,603,804 $ 218,993 $ 220,112 The following table presents, as of March 31, 2019 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): March 31, 2019 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 149,193 $ 149,306 $ 150,815 Interest rate swap counterparties 10,835 10,931 10,895 Repurchase agreements 150,783 150,027 150,783 Other 2,739 2,739 2,678 Total pledged securities $ 313,550 $ 313,003 $ 315,171 |
LOANS RECEIVABLE AND THE ALLOWA
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES Loans receivable at March 31, 2019 and December 31, 2018 are summarized as follows (dollars in thousands): March 31, 2019 December 31, 2018 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,442,724 16.6 % $ 1,430,097 16.4 % Investment properties 2,124,049 24.4 2,131,059 24.5 Multifamily real estate 387,142 4.5 368,836 4.2 Commercial construction 181,888 2.1 172,410 2.0 Multifamily construction 183,203 2.1 184,630 2.1 One- to four-family construction 514,468 5.9 534,678 6.2 Land and land development: Residential 187,660 2.2 188,508 2.2 Commercial 28,928 0.3 27,278 0.3 Commercial business 1,524,298 17.5 1,483,614 17.1 Agricultural business, including secured by farmland 373,322 4.3 404,873 4.7 One- to four-family residential 967,581 11.1 973,616 11.2 Consumer: Consumer secured by one- to four-family 564,872 6.5 568,979 6.6 Consumer—other 212,522 2.5 216,017 2.5 Total loans 8,692,657 100.0 % 8,684,595 100.0 % Less allowance for loan losses (97,308 ) (96,485 ) Net loans $ 8,595,349 $ 8,588,110 Loan amounts are net of unearned loan fees in excess of unamortized costs of $724,000 as of March 31, 2019 and $1.4 million as of December 31, 2018 . Net loans include net discounts on acquired loans of $24.2 million and $25.7 million as of March 31, 2019 and December 31, 2018 , 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 March 31, 2019 and $22.0 million at December 31, 2018 . The carrying balance of PCI loans was $13.3 million at March 31, 2019 and $14.4 million at December 31, 2018 . The following table presents the changes in the accretable yield for PCI loans for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Balance, beginning of period $ 5,216 $ 6,520 Accretion to interest income (493 ) (1,097 ) Disposals — 58 Reclassifications from non-accretable difference 55 807 Balance, end of period $ 4,778 $ 6,288 As of March 31, 2019 and December 31, 2018 , the non-accretable difference between the contractually required payments and cash flows expected to be collected was $6.5 million and $7.1 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 March 31, 2019 and December 31, 2018 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): March 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,771 $ 3,345 $ 200 $ 21 Investment properties 8,624 2,388 5,574 219 Multifamily construction 1,901 1,427 — — One- to four-family construction 919 919 — — Land and land development: Residential 1,026 690 — — Commercial business 4,948 3,615 393 12 Agricultural business/farmland 5,619 2,507 2,561 66 One- to four-family residential 6,335 3,961 2,333 59 Consumer: Consumer secured by one- to four-family 2,130 1,948 132 5 Consumer—other 345 275 61 3 $ 35,618 $ 21,075 $ 11,254 $ 385 December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,193 $ 2,768 $ 200 $ 19 Investment properties 7,287 1,320 5,606 226 Multifamily real estate 1,901 1,427 — — One- to four-family construction 919 919 — — Land and land development: Residential 1,134 798 — — Commercial 44 44 — — Commercial business 4,014 2,937 391 16 Agricultural business/farmland 4,863 1,751 2,561 96 One- to four-family residential 6,724 4,314 2,358 51 Consumer: Consumer secured by one- to four-family 1,622 1,438 133 6 Consumer—other 112 49 62 2 $ 31,813 $ 17,765 $ 11,311 $ 416 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $10.6 million and $9.0 million , respectively, of homogenous and small balance loans as of March 31, 2019 and December 31, 2018 , 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 table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the three months ended March 31, 2019 and 2018 (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 $ 3,451 $ 2 $ 5,383 $ 3 Investment properties 7,227 76 9,972 83 Commercial construction 1,427 — — — One- to four-family construction 919 — 605 4 Land and land development: Residential 726 — 798 — Commercial business 3,803 5 4,007 7 Agricultural business/farmland 5,117 27 9,109 33 One- to four-family residential 6,446 65 8,892 101 Consumer: Consumer secured by one- to four-family 2,063 5 1,390 2 Consumer—other 319 1 149 1 $ 31,498 $ 181 $ 40,305 $ 234 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Accrual Status Nonaccrual Status Total TDRs Accrual Nonaccrual Total Commercial real estate: Owner-occupied $ 200 $ 76 $ 276 $ 200 $ 78 $ 278 Investment properties 5,574 1,090 6,664 5,606 — 5,606 Commercial business 392 — 392 391 — 391 Agricultural business, including secured by farmland 2,561 — 2,561 2,561 — 2,561 One- to four-family residential 4,116 239 4,355 4,469 239 4,708 Consumer: Consumer secured by one- to four-family 132 — 132 133 — 133 Consumer—other 61 — 61 62 — 62 $ 13,036 $ 1,405 $ 14,441 $ 13,422 $ 317 $ 13,739 As of March 31, 2019 and December 31, 2018 , the Company had commitments to advance additional funds related to TDRs up to $49,000 and none , respectively. One new TDR occurred during the three months ended March 31, 2019 and none during the three months ended March 31, 2018 (dollars in thousands): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Number of Contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Contracts Pre- modification Outstanding Recorded Investment Post- modification Outstanding Recorded Investment Recorded Investment Commercial real estate Investment properties 1 $ 1,090 $ 1,090 $ — $ — Total 1 $ 1,090 $ 1,090 — $ — $ — There were no TDRs which incurred a payment default within twelve months of the restructure date during the three -month periods ended March 31, 2019 and 2018 . 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 three months ended March 31, 2019 . 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,416,650 $ 6,898 $ 19,176 $ — $ — $ 1,442,724 Investment properties 2,113,616 — 10,433 — — 2,124,049 Multifamily real estate 386,584 — 558 — — 387,142 Commercial construction 168,683 11,778 1,427 — — 181,888 Multifamily construction 183,203 — — — — 183,203 One- to four-family construction 513,549 — 919 — — 514,468 Land and land development: Residential 186,970 — 690 — — 187,660 Commercial 28,892 — 36 — — 28,928 Commercial business 1,489,952 8,019 26,243 84 — 1,524,298 Agricultural business, including secured by farmland 359,102 6,316 7,904 — — 373,322 One- to four-family residential 962,602 449 4,530 — — 967,581 Consumer: Consumer secured by one- to four-family 560,087 — 4,785 — — 564,872 Consumer—other 211,967 7 548 — — 212,522 Total $ 8,581,857 $ 33,467 $ 77,249 $ 84 $ — $ 8,692,657 December 31, 2018 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,396,721 $ 6,963 $ 26,413 $ — $ — $ 1,430,097 Investment properties 2,122,621 — 8,438 — — 2,131,059 Multifamily real estate 368,262 — 574 — — 368,836 Commercial construction 159,167 11,816 1,427 — — 172,410 Multifamily construction 184,630 — — — — 184,630 One- to four-family construction 533,759 — 919 — — 534,678 Land and land development: Residential 187,710 — 798 — — 188,508 Commercial 27,200 — 78 — — 27,278 Commercial business 1,436,733 7,661 39,133 87 — 1,483,614 Agricultural business, including secured by farmland 392,318 4,214 8,341 — — 404,873 One- to four-family residential 969,011 499 4,106 — — 973,616 Consumer: Consumer secured by one- to four-family 564,001 — 4,978 — — 568,979 Consumer—other 215,706 9 302 — — 216,017 Total $ 8,557,839 $ 31,162 $ 95,507 $ 87 $ — $ 8,684,595 (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 March 31, 2019 and December 31, 2018 , in the commercial business category, $732.3 million and $590.9 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 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 $ 2,758 $ 100 $ 2,720 $ 5,578 $ 8,411 $ 1,428,735 $ 1,442,724 $ — $ 3,346 Investment properties 2,143 — 925 3,068 3,394 2,117,587 2,124,049 — 2,388 Multifamily real estate 300 — — 300 128 386,714 387,142 — — Commercial construction — — 1,427 1,427 — 180,461 181,888 — 1,427 Multifamily construction 4,586 — — 4,586 — 178,617 183,203 — — One-to-four-family construction 9,896 — 919 10,815 — 503,653 514,468 — 919 Land and land development: Residential — — 690 690 — 186,970 187,660 — 690 Commercial — — — — — 28,928 28,928 — — Commercial business 2,782 648 2,421 5,851 618 1,517,829 1,524,298 1 3,614 Agricultural business, including secured by farmland — 726 2,371 3,097 431 369,794 373,322 — 2,507 One- to four-family residential 3,662 1,026 1,695 6,383 95 961,103 967,581 640 1,538 Consumer: Consumer secured by one- to four-family 1,667 655 847 3,169 165 561,538 564,872 42 1,906 Consumer—other 721 213 238 1,172 88 211,262 212,522 — 275 Total $ 28,515 $ 3,368 $ 14,253 $ 46,136 $ 13,330 $ 8,633,191 $ 8,692,657 $ 683 $ 18,610 December 31, 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 $ 785 $ 519 $ 2,223 $ 3,527 $ 8,531 $ 1,418,039 $ 1,430,097 $ — $ 2,768 Investment properties 91 498 934 1,523 3,462 2,126,074 2,131,059 — 1,320 Multifamily real estate 317 — — 317 138 368,381 368,836 — — Commercial construction — — 1,427 1,427 — 170,983 172,410 — 1,427 Multifamily construction — — — — — 184,630 184,630 — — One-to-four-family construction 4,781 1,078 919 6,778 137 527,763 534,678 — 919 Land and land development: Residential 450 — 798 1,248 — 187,260 188,508 — 798 Commercial 34 — 44 78 — 27,200 27,278 — 44 Commercial business 3,982 1,305 1,756 7,043 1,028 1,475,543 1,483,614 1 2,936 Agricultural business, including secured by farmland 343 1,518 1,601 3,462 493 400,918 404,873 — 1,751 One-to four-family residential 5,440 1,790 1,657 8,887 101 964,628 973,616 658 1,544 Consumer: Consumer secured by one- to four-family 1,136 765 706 2,607 432 565,940 568,979 238 1,201 Consumer—other 911 385 9 1,305 91 214,621 216,017 9 40 Total $ 18,270 $ 7,858 $ 12,074 $ 38,202 $ 14,413 $ 8,631,980 $ 8,684,595 $ 906 $ 14,748 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 months ended March 31, 2019 and 2018 (in thousands): For the Three Months Ended March 31, 2019 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 $ 27,132 $ 3,818 $ 24,442 $ 19,438 $ 3,778 $ 4,714 $ 7,972 $ 5,191 $ 96,485 Provision for loan losses 369 202 (751 ) (209 ) (178 ) (46 ) 269 2,344 2,000 Recoveries 21 — 22 23 — 43 110 — 219 Charge-offs (431 ) — — (590 ) (4 ) — (371 ) — (1,396 ) Ending balance $ 27,091 $ 4,020 $ 23,713 $ 18,662 $ 3,596 $ 4,711 $ 7,980 $ 7,535 $ 97,308 March 31, 2019 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 $ 240 $ — $ — $ 12 $ 66 $ 59 $ 8 $ — $ 385 Collectively evaluated for impairment 26,851 4,020 23,713 18,627 3,472 4,652 7,972 7,535 96,842 Purchased credit-impaired loans — — — 23 58 — — — 81 Total allowance for loan losses $ 27,091 $ 4,020 $ 23,713 $ 18,662 $ 3,596 $ 4,711 $ 7,980 $ 7,535 $ 97,308 Loan balances: Individually evaluated for impairment $ 9,806 $ — $ 2,988 $ 514 $ 4,110 $ 4,116 $ 193 $ — $ 21,727 Collectively evaluated for impairment 3,545,162 387,014 1,093,159 1,523,166 368,781 963,370 776,948 — 8,657,600 Purchased credit-impaired loans 11,805 128 — 618 431 95 253 — 13,330 Total loans $ 3,566,773 $ 387,142 $ 1,096,147 $ 1,524,298 $ 373,322 $ 967,581 $ 777,394 $ — $ 8,692,657 For the Three Months Ended March 31, 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 (715 ) 959 1,024 1,923 (1,047 ) 1,450 1,913 (3,507 ) 2,000 Recoveries 1,352 — 174 170 — 290 112 — 2,098 Charge-offs — — — (519 ) (7 ) (16 ) (377 ) — (919 ) Ending balance $ 23,461 $ 2,592 $ 28,766 $ 19,885 $ 2,999 $ 3,779 $ 5,514 $ 5,211 $ 92,207 March 31, 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 $ 284 $ — $ — $ 39 $ 201 $ 182 $ 11 $ — $ 717 Collectively evaluated for impairment 23,177 2,592 28,766 19,799 2,707 3,597 5,503 5,211 91,352 Purchased credit-impaired loans — — — 47 91 — — — 138 Total allowance for loan losses $ 23,461 $ 2,592 $ 28,766 $ 19,885 $ 2,999 $ 3,779 $ 5,514 $ 5,211 $ 92,207 Loan balances: Individually evaluated for impairment $ 11,607 $ — $ 750 $ 534 $ 7,943 $ 5,092 $ 208 $ — $ 26,134 Collectively evaluated for impairment 3,130,700 320,872 944,726 1,294,328 298,885 828,377 692,708 — 7,510,596 Purchased credit impaired loans 13,444 167 3,264 1,829 415 129 68 — 19,316 Total loans $ 3,155,751 $ 321,039 $ 948,740 $ 1,296,691 $ 307,243 $ 833,598 $ 692,984 $ — $ 7,556,046 |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , 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, 2018 , 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 three months ended March 31, 2019 and the year ended December 31, 2018 (in thousands): Goodwill CDI LHI Total Balance, December 31, 2017 $ 242,659 $ 22,378 $ 277 $ 265,314 Additions through acquisitions (1) 96,495 16,368 — 112,863 Amortization — (6,047 ) (52 ) (6,099 ) Balance, December 31, 2018 339,154 32,699 225 372,078 Amortization — (2,052 ) — (2,052 ) Adjustments (2) — — (225 ) (225 ) Balance, March 31, 2019 $ 339,154 $ 30,647 $ — $ 369,801 (1) The additions to goodwill and CDI in 2018 relate to the acquisition of Skagit. (2) The adjustment to LHI represents a reclassification to the right of use lease asset in connection with the implementation of Lease Topic 842. The following table presents the estimated amortization expense with respect to CDI for the periods indicated (in thousands): Estimated Amortization Remainder of 2019 $ 5,905 2020 6,888 2021 5,816 2022 4,651 2023 3,237 Thereafter 4,150 $ 30,647 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 months ended March 31, 2019 and 2018 , 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 $2.39 billion and $2.36 billion at March 31, 2019 and December 31, 2018 , respectively. Custodial accounts maintained in connection with this servicing totaled $20.8 million and $11.1 million at March 31, 2019 and December 31, 2018 , respectively. An analysis of our mortgage servicing rights for the three months ended March 31, 2019 and 2018 is presented below (in thousands): Three Months Ended 2019 2018 Balance, beginning of the period $ 14,638 $ 14,738 Additions—amounts capitalized 672 821 Additions—through purchase 47 15 Amortization (1) (940 ) (957 ) Balance, end of the period (2) $ 14,417 $ 14,617 (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 March 31, 2019 and 2018 . |
REAL ESTATE OWNED, NET
REAL ESTATE OWNED, NET | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
REAL ESTATE OWNED, NET | REAL ESTATE OWNED, NET The following table presents the changes in REO for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Balance, beginning of the period $ 2,611 $ 360 Additions from loan foreclosures — 128 Valuation adjustments in the period — (160 ) Balance, end of the period $ 2,611 $ 328 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. The Company had no foreclosed one- to four-family residential real estate properties held as REO at March 31, 2019 and December 31, 2018 . The recorded investment in one- to four-family residential loans in the process of foreclosure was $952,000 at March 31, 2019 compared with $1.2 million at December 31, 2018 . |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS Deposits consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Non-interest-bearing accounts $ 3,676,984 $ 3,657,817 Interest-bearing checking 1,174,169 1,191,016 Regular savings accounts 1,865,852 1,842,581 Money market accounts 1,495,948 1,465,369 Total interest-bearing transaction and saving accounts 4,535,969 4,498,966 Certificates of deposit: Certificates of deposit less than or equal to $250,000 987,992 1,143,303 Certificates of deposit greater than $250,000 175,284 176,962 Total certificates of deposit (1) 1,163,276 1,320,265 Total deposits $ 9,376,229 $ 9,477,048 Included in total deposits: Public fund transaction and savings accounts $ 210,155 $ 217,401 Public fund interest-bearing certificates 29,572 30,089 Total public deposits $ 239,727 $ 247,490 Total brokered deposits $ 239,444 $ 377,347 (1) Certificates of deposit include $473,000 and $563,000 of acquisition premiums at March 31, 2019 and December 31, 2018 , respectively. At March 31, 2019 and December 31, 2018 , the Company had certificates of deposit of $178.8 million and $180.5 million , respectively, that were equal to or greater than $250,000. Scheduled maturities and weighted average interest rates of certificate accounts at March 31, 2019 are as follows (dollars in thousands): March 31, 2019 Amount Weighted Average Rate Maturing in one year or less $ 868,391 1.16 % Maturing after one year through two years 181,460 1.31 Maturing after two years through three years 87,538 1.76 Maturing after three years through four years 12,880 1.34 Maturing after four years through five years 10,633 2.01 Maturing after five years 2,374 1.06 Total certificates of deposit $ 1,163,276 1.24 % |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 , whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands): March 31, 2019 December 31, 2018 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 261,538 $ 261,538 $ 272,196 $ 272,196 Securities—trading 3 25,838 25,838 25,896 25,896 Securities—available-for-sale 2 1,603,804 1,603,804 1,636,223 1,636,223 Securities—held-to-maturity 2 215,792 216,911 230,984 229,301 Securities—held-to-maturity 3 3,201 3,201 3,236 3,236 Loans held for sale 2 45,865 46,038 171,031 171,157 Loans receivable 3 8,692,657 8,685,672 8,684,595 8,629,450 FHLB stock 3 27,063 27,063 31,955 31,955 Bank-owned life insurance 1 178,202 178,202 177,467 177,467 Mortgage servicing rights 3 14,417 23,766 14,638 25,813 Equity securities 1 422 422 352 352 Derivatives: Interest rate swaps 2 6,772 6,772 3,138 3,138 Interest rate lock and forward sales commitments 2 548 548 471 471 Liabilities: Demand, interest checking and money market accounts 2 6,347,100 6,347,100 6,314,202 6,314,202 Regular savings 2 1,865,852 1,865,852 1,842,581 1,842,581 Certificates of deposit 2 1,163,276 1,152,443 1,320,265 1,298,238 FHLB advances 2 418,000 418,000 540,189 540,189 Other borrowings 2 121,719 121,719 118,995 118,995 Junior subordinated debentures 3 113,917 113,917 114,091 114,091 Derivatives: Interest rate swaps 2 5,536 5,536 3,138 3,138 Interest rate lock and forward sales commitments 2 674 674 1,654 1,654 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 25,838 $ 25,838 — — 25,838 25,838 Securities—available-for-sale U.S. Government and agency obligations — 138,315 — 138,315 Municipal bonds — 120,055 — 120,055 Corporate bonds — 4,044 — 4,044 Mortgage-backed or related securities — 1,323,577 — 1,323,577 Asset-backed securities — 17,813 — 17,813 — 1,603,804 — 1,603,804 Loans held for sale — 37,410 — 37,410 Equity securities — 422 — 422 Derivatives Interest rate swaps — 6,772 — 6,772 Interest rate lock and forward sales commitments — 548 — 548 $ — $ 1,648,956 $ 25,838 $ 1,674,794 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 113,917 $ 113,917 Derivatives Interest rate swaps — 5,536 — 5,536 Interest rate lock and forward sales commitments — 674 — 674 $ — $ 6,210 $ 113,917 $ 120,127 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 25,896 $ 25,896 — — 25,896 25,896 Securities—available-for-sale U.S. Government and agency obligations — 149,112 — 149,112 Municipal bonds — 117,822 — 117,822 Corporate bonds — 3,495 — 3,495 Mortgage-backed securities — 1,343,861 — 1,343,861 Asset-backed securities — 21,933 — 21,933 — 1,636,223 — 1,636,223 Loans held for sale — 164,767 — 164,767 Equity securities — 352 — 352 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 471 — 471 $ — $ 1,804,951 $ 25,896 $ 1,830,847 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 114,091 $ 114,091 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 1,654 — 1,654 $ — $ 4,792 $ 114,091 $ 118,883 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 March 31, 2019 and December 31, 2018 . 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 March 31, 2019 and December 31, 2018 : Weighted Average Rate / Range Financial Instruments Valuation Techniques Unobservable Inputs March 31, 2019 December 31, 2018 Corporate bonds (TPS securities) Discounted cash flows Discount rate 6.60 % 6.81 % Junior subordinated debentures Discounted cash flows Discount rate 6.60 % 6.81 % Impaired loans Collateral Valuations Discount to appraised value 8.50 % 0.0% to 8.50% REO Appraisals Discount to appraised value 69.20 % 69.20 % 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 March 31, 2019 , or the passage of time, will result in negative fair value adjustments. At March 31, 2019 , the discount rate utilized was based on a credit spread of 400 basis points and three-month LIBOR of 260 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 months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Beginning balance $ 25,896 $ 114,091 Total gains or losses recognized Assets losses (58 ) — Liabilities gains — (174 ) Ending balance at March 31, 2019 $ 25,838 $ 113,917 Three Months Ended March 31, 2018 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Beginning balance $ 22,058 $ 98,707 Total gains or losses recognized Assets gains 3,416 — Liabilities losses — 13,809 Ending balance at March 31, 2018 $ 25,474 $ 112,516 Interest income and dividends from the TPS securities are recorded as a component of interest income. Interest expense related to the junior subordinated debentures are measured based on contractual interest rates and reported in interest expense. The change in fair market value on TPS securities has been recorded as a component of non-interest income. 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 450 $ 450 REO — — 2,611 2,611 December 31, 2018 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,915 $ 2,915 REO — — 2,611 2,611 The following table presents the losses resulting from non-recurring fair value adjustments for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Impaired loans $ (300 ) $ — REO — (160 ) Total loss from non-recurring measurements $ (300 ) $ (160 ) Impaired loans : Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of collateral if the loan is collateral dependent. If this practical expedient is used, the impaired loans are considered to be held at fair value. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. Impaired loans are periodically evaluated to determine if valuation adjustments, or partial write-downs, should be recorded. The need for valuation adjustments arises when observable market prices or current appraised values of collateral indicate a shortfall in collateral value compared to current carrying values of the related loan. If the Company determines that the value of the impaired loan is less than the carrying value of the loan, the Company either establishes an impairment reserve as a specific component of the allowance for loan losses or charges off the impaired amount. These valuation adjustments are considered non-recurring fair value adjustments. The remaining impaired loans are evaluated for reserve needs in homogenous pools within the Company’s methodology for assessing the adequacy of the allowance for loan losses. REO : The Company records REO (acquired through a lending relationship) at fair value on a non-recurring basis. Fair value adjustments on REO are based on updated real estate appraisals which are based on current market conditions. All REO properties are recorded at the lower of the estimated fair value of the real estate, less expected selling costs, or the carrying amount of the defaulted loans. From time to time, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on an observable market price or current appraised value of property. Banner considers any valuation inputs related to REO to be Level 3 inputs. The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed to operations. |
INCOME TAXES AND DEFERRED TAXES
INCOME TAXES AND DEFERRED TAXES | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , 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. 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Tax credit investments $ 21,764 $ 17,360 Unfunded commitments—tax credit investments 15,945 12,726 The following table presents other information related to the Company's tax credit investments for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Tax credits and other tax benefits recognized $ 494 $ 364 Tax credit amortization expense included in provision for income taxes 405 288 |
CALCULATION OF WEIGHTED AVERAGE
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) | 3 Months Ended |
Mar. 31, 2019 | |
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 for the three months ended March 31, 2019 and 2018 (in thousands, except shares and per share data): Three Months Ended 2019 2018 Net income $ 33,346 $ 28,790 Basic weighted average shares outstanding 35,050,376 32,397,568 Plus unvested restricted stock 121,680 118,888 Diluted weighted shares outstanding 35,172,056 32,516,456 Earnings per common share Basic $ 0.95 $ 0.89 Diluted $ 0.95 $ 0.89 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , the Company had granted 269,863 shares of restricted stock from the 2012 Restricted Stock Plan (as amended and restated), of which 261,966 shares had vested and 7,897 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 March 31, 2019 , 314,521 restricted stock shares and 378,934 restricted stock units have been granted under the 2014 Plan of which 196,365 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 March 31, 2019 , no shares or units have been granted under the 2018 Plan. The expense associated with all restricted stock grants (including restricted stock shares and restricted stock units) was $1.2 million and $1.3 million for the three month periods ended March 31, 2019 and March 31, 2018 , respectively. Unrecognized compensation expense for these awards as of March 31, 2019 was $17.7 million and will be amortized over the next 34 months . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 March 31, 2019 December 31, 2018 Commitments to extend credit $ 2,843,134 $ 2,837,981 Standby letters of credit and financial guarantees 15,861 17,784 Commitments to originate loans 50,692 32,145 Risk participation agreement 24,074 24,091 Derivatives also included in Note 14: Commitments to originate loans held for sale 55,667 31,728 Commitments to sell loans secured by one- to four-family residential properties 39,871 18,328 Commitments to sell securities related to mortgage banking activities 68,803 144,250 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 $2.6 million at both March 31, 2019 and December 31, 2018 . 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 months ended March 31, 2019 or March 31, 2018 . 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 March 31, 2019 . 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 , 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 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 $ 3,873 $ 269 $ 3,973 $ 270 $ 3,873 $ 269 $ 3,973 $ 270 (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 March 31, 2019 and December 31, 2018 , 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 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 $ 290,064 $ 6,503 $ 272,374 $ 2,868 $ 290,064 $ 5,267 $ 272,374 $ 2,868 Mortgage loan commitments 26,194 280 20,229 273 37,927 222 17,763 187 Forward sales contracts 39,871 268 18,328 198 68,803 452 144,250 1,467 $ 356,129 $ 7,051 $ 310,931 $ 3,339 $ 396,794 $ 5,941 $ 434,387 $ 4,522 (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 $315,000 at March 31, 2019 and $282,000 at December 31, 2018 ), 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 months ended March 31, 2019 and 2018 were as follows (in thousands): Location on Consolidated Statements of Operations Three Months Ended 2019 2018 Mortgage loan commitments Mortgage banking operations $ 7 $ 68 Forward sales contracts Mortgage banking operations 150 (11 ) $ 157 $ 57 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 March 31, 2019 or December 31, 2018 , it could have been required to settle its obligations under the agreements at the termination value. As of March 31, 2019 and December 31, 2018 , the termination value of derivatives in a net liability position related to these agreements was $6.2 million and $1.3 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 $15.6 million and $13.6 million as of March 31, 2019 and December 31, 2018 , respectively. Derivative assets and liabilities are recorded at fair value on the balance sheet. 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 presents additional information related to the Company's derivative contracts, by type of financial instrument, as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 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 $ 7,444 $ (672 ) $ 6,772 $ — $ — $ 6,772 $ 7,444 $ (672 ) $ 6,772 $ — $ — $ 6,772 Derivative liabilities Interest rate swaps $ 7,444 $ (1,908 ) $ 5,536 $ — $ (4,917 ) $ 619 $ 7,444 $ (1,908 ) $ 5,536 $ — $ (4,917 ) $ 619 December 31, 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 $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 Derivative liabilities Interest rate swaps $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 are summarized as follows (in thousands): Three Months Ended 2019 2018 Deposit service charges $ 4,586 $ 4,320 Debit and credit interchange fees 6,573 7,320 Debit and credit card expense (2,449 ) (1,970 ) Merchant services income 2,856 2,261 Merchant services expenses (2,319 ) (1,804 ) Other service charges 3,371 1,169 Total deposit fees and other service charges $ 12,618 $ 11,296 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 debit or credit 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. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases 110 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. The Company adopted the requirements of Topic 842 effective January 1, 2019, which required the Company record a right-of-use lease asset and a lease liability for leases with an initial term of more than 12 months for leases that existed as of January 1, 2019. The periods prior to the date of adoption are accounted for under Lease Topic 840 ; therefore, the following disclosures include only the periods for which Topic 842 was effective. Lease Position as of March 31, 2019 The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at March 31, 2019 (dollars in thousands): Classification on the Balance Sheet March 31, 2019 Assets Operating right-of-use lease assets Other assets $ 55,163 Liabilities Operating lease liabilities Accrued expenses and other liabilities $ 58,083 Weighted-average remaining lease term Operating leases 5.8 years Weighted-average discount rate Operating leases 4.38 % Lease Costs The table below presents certain information related to the lease costs for operating leases for the three months ended March 31, 2019 (in thousands): Operating lease cost (1) $ 3,975 Short-term lease costs (1) 121 Variable lease cost (1) 561 Less sublease income (1) (237 ) Total lease cost $ 4,420 (1) Lease expenses and sublease income are classified within occupancy and equipment expense on the Consolidated Statements of Operations. Supplemental Cash Flow Information Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities was $3.9 million for the three months ended March 31, 2019. During the three months ended March 31, 2019, the Company recorded $61.0 million of right-of-use lease assets in exchange for operating lease liabilities. Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years beginning with 2019 and the total of the remaining years to the operating lease liabilities recorded on the Consolidated Statements of Financial Position (in thousands): Operating Leases Remainder of 2019 $ 11,003 2020 13,721 2021 12,019 2022 8,542 2023 5,567 Thereafter 15,023 Total minimum lease payments 65,875 Less: amount of lease payments representing interest (7,792 ) Lease obligations $ 58,083 As of March 31, 2019, we had $713,000 of undiscounted lease payments under an operating lease that had not yet commenced. This lease will commence later in 2019 with a lease term of 10 years. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 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 2018 Consolidated Financial Statements and/or schedules to conform to the 2019 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 acquired and liabilities assumed 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, 2018 filed with the SEC (2018 Form 10-K). There have been no significant changes in our application of these accounting policies during the first three months of 2019 , except as described in Note 2. The information included in this Form 10-Q should be read in conjunction with our 2018 Form 10-K. Interim results are not necessarily indicative of results for a full year or any other interim period. |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities | The amortized cost, gross unrealized gains and losses and estimated fair value of securities at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Corporate bonds $ 27,203 $ 25,838 $ 27,203 $ 25,838 Available-for-Sale: U.S. Government and agency obligations $ 139,621 $ 134 $ (1,440 ) $ 138,315 Municipal bonds 116,954 3,288 (187 ) 120,055 Corporate bonds 4,057 4 (17 ) 4,044 Mortgage-backed or related securities 1,320,826 10,952 (8,201 ) 1,323,577 Asset-backed securities 17,889 5 (81 ) 17,813 $ 1,599,347 $ 14,383 $ (9,926 ) $ 1,603,804 Held-to-Maturity: U.S. Government and agency obligations $ 389 $ 3 $ — $ 392 Municipal bonds 163,614 2,527 (1,248 ) 164,893 Corporate bonds 3,701 — (13 ) 3,688 Mortgage-backed or related securities 51,289 151 (301 ) 51,139 $ 218,993 $ 2,681 $ (1,562 ) $ 220,112 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Corporate bonds $ 27,203 $ 25,896 $ 27,203 $ 25,896 Available-for-Sale: U.S. Government and agency obligations $ 151,012 $ 149 $ (2,049 ) $ 149,112 Municipal bonds 116,548 1,806 (532 ) 117,822 Corporate bonds 3,556 — (61 ) 3,495 Mortgage-backed or related securities 1,355,258 5,210 (16,607 ) 1,343,861 Asset-backed securities 22,047 6 (120 ) 21,933 $ 1,648,421 $ 7,171 $ (19,369 ) $ 1,636,223 Held-to-Maturity: U.S. Government and agency obligations $ 1,006 $ 14 $ (1 ) $ 1,019 Municipal bonds 176,663 1,727 (2,578 ) 175,812 Corporate bonds 3,736 — (13 ) 3,723 Mortgage-backed or related securities 52,815 66 (898 ) 51,983 $ 234,220 $ 1,807 $ (3,490 ) $ 232,537 |
Schedule of Securities with Continuous Loss Position | At March 31, 2019 and December 31, 2018 , 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 were as follows (in thousands): March 31, 2019 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 $ 713 $ (4 ) $ 120,227 $ (1,436 ) $ 120,940 $ (1,440 ) Municipal bonds 753 (3 ) 23,686 (184 ) 24,439 (187 ) Corporate bonds 2,344 (14 ) 297 (3 ) 2,641 (17 ) Mortgage-backed or related securities 42,354 (203 ) 608,455 (7,998 ) 650,809 (8,201 ) Asset-backed securities 6,861 (32 ) 9,956 (49 ) 16,817 (81 ) $ 53,025 $ (256 ) $ 762,621 $ (9,670 ) $ 815,646 $ (9,926 ) Held-to-Maturity Municipal bonds $ 915 $ (1 ) $ 42,524 $ (1,247 ) $ 43,439 $ (1,248 ) Corporate bonds — — 488 (13 ) 488 (13 ) Mortgage-backed or related securities 1,037 (7 ) 32,991 (294 ) 34,028 (301 ) $ 1,952 $ (8 ) $ 76,003 $ (1,554 ) $ 77,955 $ (1,562 ) December 31, 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 $ 75,885 $ (1,240 ) $ 50,508 $ (809 ) $ 126,393 $ (2,049 ) Municipal bonds 6,422 (54 ) 27,231 (478 ) 33,653 (532 ) Corporate bonds 3,199 (56 ) 295 (5 ) 3,494 (61 ) Mortgage-backed or related securities 316,074 (2,939 ) 571,989 (13,668 ) 888,063 (16,607 ) Asset-backed securities 10,582 (24 ) 9,913 (96 ) 20,495 (120 ) $ 412,162 $ (4,313 ) $ 659,936 $ (15,056 ) $ 1,072,098 $ (19,369 ) Held-to-Maturity U.S. Government and agency obligations $ 145 $ (1 ) $ — $ — $ 145 $ (1 ) Municipal bonds 29,898 (274 ) 44,637 (2,304 ) 74,535 (2,578 ) Corporate bonds — — 487 (13 ) 487 (13 ) Mortgage-backed or related securities 10,761 (220 ) 30,035 (678 ) 40,796 (898 ) $ 40,804 $ (495 ) $ 75,159 $ (2,995 ) $ 115,963 $ (3,490 ) |
Schedule of Securities by Contractual Maturity Date | The amortized cost and estimated fair value of securities at March 31, 2019 , 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. March 31, 2019 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 $ — $ — $ 6,520 $ 6,514 $ 2,869 $ 2,865 Maturing after one year through five years — — 86,092 86,474 61,698 61,839 Maturing after five years through ten years — — 382,934 386,318 57,947 58,934 Maturing after ten years through twenty years 27,203 25,838 198,705 201,247 62,540 63,667 Maturing after twenty years — — 925,096 923,251 33,939 32,807 $ 27,203 $ 25,838 $ 1,599,347 $ 1,603,804 $ 218,993 $ 220,112 |
Schedule of Pledged Securities | The following table presents, as of March 31, 2019 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): March 31, 2019 Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 149,193 $ 149,306 $ 150,815 Interest rate swap counterparties 10,835 10,931 10,895 Repurchase agreements 150,783 150,027 150,783 Other 2,739 2,739 2,678 Total pledged securities $ 313,550 $ 313,003 $ 315,171 |
LOANS RECEIVABLE AND THE ALLO_2
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans Receivable, Including Loans Held for Sale | Loans receivable at March 31, 2019 and December 31, 2018 are summarized as follows (dollars in thousands): March 31, 2019 December 31, 2018 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,442,724 16.6 % $ 1,430,097 16.4 % Investment properties 2,124,049 24.4 2,131,059 24.5 Multifamily real estate 387,142 4.5 368,836 4.2 Commercial construction 181,888 2.1 172,410 2.0 Multifamily construction 183,203 2.1 184,630 2.1 One- to four-family construction 514,468 5.9 534,678 6.2 Land and land development: Residential 187,660 2.2 188,508 2.2 Commercial 28,928 0.3 27,278 0.3 Commercial business 1,524,298 17.5 1,483,614 17.1 Agricultural business, including secured by farmland 373,322 4.3 404,873 4.7 One- to four-family residential 967,581 11.1 973,616 11.2 Consumer: Consumer secured by one- to four-family 564,872 6.5 568,979 6.6 Consumer—other 212,522 2.5 216,017 2.5 Total loans 8,692,657 100.0 % 8,684,595 100.0 % Less allowance for loan losses (97,308 ) (96,485 ) Net loans $ 8,595,349 $ 8,588,110 Loan amounts are net of unearned loan fees in excess of unamortized costs of $724,000 as of March 31, 2019 and $1.4 million as of December 31, 2018 . Net loans include net discounts on acquired loans of $24.2 million and $25.7 million as of March 31, 2019 and December 31, 2018 , 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 months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Balance, beginning of period $ 5,216 $ 6,520 Accretion to interest income (493 ) (1,097 ) Disposals — 58 Reclassifications from non-accretable difference 55 807 Balance, end of period $ 4,778 $ 6,288 |
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 March 31, 2019 and December 31, 2018 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): March 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,771 $ 3,345 $ 200 $ 21 Investment properties 8,624 2,388 5,574 219 Multifamily construction 1,901 1,427 — — One- to four-family construction 919 919 — — Land and land development: Residential 1,026 690 — — Commercial business 4,948 3,615 393 12 Agricultural business/farmland 5,619 2,507 2,561 66 One- to four-family residential 6,335 3,961 2,333 59 Consumer: Consumer secured by one- to four-family 2,130 1,948 132 5 Consumer—other 345 275 61 3 $ 35,618 $ 21,075 $ 11,254 $ 385 December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,193 $ 2,768 $ 200 $ 19 Investment properties 7,287 1,320 5,606 226 Multifamily real estate 1,901 1,427 — — One- to four-family construction 919 919 — — Land and land development: Residential 1,134 798 — — Commercial 44 44 — — Commercial business 4,014 2,937 391 16 Agricultural business/farmland 4,863 1,751 2,561 96 One- to four-family residential 6,724 4,314 2,358 51 Consumer: Consumer secured by one- to four-family 1,622 1,438 133 6 Consumer—other 112 49 62 2 $ 31,813 $ 17,765 $ 11,311 $ 416 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $10.6 million and $9.0 million , respectively, of homogenous and small balance loans as of March 31, 2019 and December 31, 2018 , 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 table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the three months ended March 31, 2019 and 2018 (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 $ 3,451 $ 2 $ 5,383 $ 3 Investment properties 7,227 76 9,972 83 Commercial construction 1,427 — — — One- to four-family construction 919 — 605 4 Land and land development: Residential 726 — 798 — Commercial business 3,803 5 4,007 7 Agricultural business/farmland 5,117 27 9,109 33 One- to four-family residential 6,446 65 8,892 101 Consumer: Consumer secured by one- to four-family 2,063 5 1,390 2 Consumer—other 319 1 149 1 $ 31,498 $ 181 $ 40,305 $ 234 |
Schedule of Troubled Debt Restructurings | The following table presents TDRs by accrual and nonaccrual status at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Accrual Status Nonaccrual Status Total TDRs Accrual Nonaccrual Total Commercial real estate: Owner-occupied $ 200 $ 76 $ 276 $ 200 $ 78 $ 278 Investment properties 5,574 1,090 6,664 5,606 — 5,606 Commercial business 392 — 392 391 — 391 Agricultural business, including secured by farmland 2,561 — 2,561 2,561 — 2,561 One- to four-family residential 4,116 239 4,355 4,469 239 4,708 Consumer: Consumer secured by one- to four-family 132 — 132 133 — 133 Consumer—other 61 — 61 62 — 62 $ 13,036 $ 1,405 $ 14,441 $ 13,422 $ 317 $ 13,739 As of March 31, 2019 and December 31, 2018 , the Company had commitments to advance additional funds related to TDRs up to $49,000 and none , 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,416,650 $ 6,898 $ 19,176 $ — $ — $ 1,442,724 Investment properties 2,113,616 — 10,433 — — 2,124,049 Multifamily real estate 386,584 — 558 — — 387,142 Commercial construction 168,683 11,778 1,427 — — 181,888 Multifamily construction 183,203 — — — — 183,203 One- to four-family construction 513,549 — 919 — — 514,468 Land and land development: Residential 186,970 — 690 — — 187,660 Commercial 28,892 — 36 — — 28,928 Commercial business 1,489,952 8,019 26,243 84 — 1,524,298 Agricultural business, including secured by farmland 359,102 6,316 7,904 — — 373,322 One- to four-family residential 962,602 449 4,530 — — 967,581 Consumer: Consumer secured by one- to four-family 560,087 — 4,785 — — 564,872 Consumer—other 211,967 7 548 — — 212,522 Total $ 8,581,857 $ 33,467 $ 77,249 $ 84 $ — $ 8,692,657 December 31, 2018 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,396,721 $ 6,963 $ 26,413 $ — $ — $ 1,430,097 Investment properties 2,122,621 — 8,438 — — 2,131,059 Multifamily real estate 368,262 — 574 — — 368,836 Commercial construction 159,167 11,816 1,427 — — 172,410 Multifamily construction 184,630 — — — — 184,630 One- to four-family construction 533,759 — 919 — — 534,678 Land and land development: Residential 187,710 — 798 — — 188,508 Commercial 27,200 — 78 — — 27,278 Commercial business 1,436,733 7,661 39,133 87 — 1,483,614 Agricultural business, including secured by farmland 392,318 4,214 8,341 — — 404,873 One- to four-family residential 969,011 499 4,106 — — 973,616 Consumer: Consumer secured by one- to four-family 564,001 — 4,978 — — 568,979 Consumer—other 215,706 9 302 — — 216,017 Total $ 8,557,839 $ 31,162 $ 95,507 $ 87 $ — $ 8,684,595 (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 March 31, 2019 and December 31, 2018 , in the commercial business category, $732.3 million and $590.9 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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 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 $ 2,758 $ 100 $ 2,720 $ 5,578 $ 8,411 $ 1,428,735 $ 1,442,724 $ — $ 3,346 Investment properties 2,143 — 925 3,068 3,394 2,117,587 2,124,049 — 2,388 Multifamily real estate 300 — — 300 128 386,714 387,142 — — Commercial construction — — 1,427 1,427 — 180,461 181,888 — 1,427 Multifamily construction 4,586 — — 4,586 — 178,617 183,203 — — One-to-four-family construction 9,896 — 919 10,815 — 503,653 514,468 — 919 Land and land development: Residential — — 690 690 — 186,970 187,660 — 690 Commercial — — — — — 28,928 28,928 — — Commercial business 2,782 648 2,421 5,851 618 1,517,829 1,524,298 1 3,614 Agricultural business, including secured by farmland — 726 2,371 3,097 431 369,794 373,322 — 2,507 One- to four-family residential 3,662 1,026 1,695 6,383 95 961,103 967,581 640 1,538 Consumer: Consumer secured by one- to four-family 1,667 655 847 3,169 165 561,538 564,872 42 1,906 Consumer—other 721 213 238 1,172 88 211,262 212,522 — 275 Total $ 28,515 $ 3,368 $ 14,253 $ 46,136 $ 13,330 $ 8,633,191 $ 8,692,657 $ 683 $ 18,610 December 31, 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 $ 785 $ 519 $ 2,223 $ 3,527 $ 8,531 $ 1,418,039 $ 1,430,097 $ — $ 2,768 Investment properties 91 498 934 1,523 3,462 2,126,074 2,131,059 — 1,320 Multifamily real estate 317 — — 317 138 368,381 368,836 — — Commercial construction — — 1,427 1,427 — 170,983 172,410 — 1,427 Multifamily construction — — — — — 184,630 184,630 — — One-to-four-family construction 4,781 1,078 919 6,778 137 527,763 534,678 — 919 Land and land development: Residential 450 — 798 1,248 — 187,260 188,508 — 798 Commercial 34 — 44 78 — 27,200 27,278 — 44 Commercial business 3,982 1,305 1,756 7,043 1,028 1,475,543 1,483,614 1 2,936 Agricultural business, including secured by farmland 343 1,518 1,601 3,462 493 400,918 404,873 — 1,751 One-to four-family residential 5,440 1,790 1,657 8,887 101 964,628 973,616 658 1,544 Consumer: Consumer secured by one- to four-family 1,136 765 706 2,607 432 565,940 568,979 238 1,201 Consumer—other 911 385 9 1,305 91 214,621 216,017 9 40 Total $ 18,270 $ 7,858 $ 12,074 $ 38,202 $ 14,413 $ 8,631,980 $ 8,684,595 $ 906 $ 14,748 |
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 months ended March 31, 2019 and 2018 (in thousands): For the Three Months Ended March 31, 2019 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 $ 27,132 $ 3,818 $ 24,442 $ 19,438 $ 3,778 $ 4,714 $ 7,972 $ 5,191 $ 96,485 Provision for loan losses 369 202 (751 ) (209 ) (178 ) (46 ) 269 2,344 2,000 Recoveries 21 — 22 23 — 43 110 — 219 Charge-offs (431 ) — — (590 ) (4 ) — (371 ) — (1,396 ) Ending balance $ 27,091 $ 4,020 $ 23,713 $ 18,662 $ 3,596 $ 4,711 $ 7,980 $ 7,535 $ 97,308 March 31, 2019 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 $ 240 $ — $ — $ 12 $ 66 $ 59 $ 8 $ — $ 385 Collectively evaluated for impairment 26,851 4,020 23,713 18,627 3,472 4,652 7,972 7,535 96,842 Purchased credit-impaired loans — — — 23 58 — — — 81 Total allowance for loan losses $ 27,091 $ 4,020 $ 23,713 $ 18,662 $ 3,596 $ 4,711 $ 7,980 $ 7,535 $ 97,308 Loan balances: Individually evaluated for impairment $ 9,806 $ — $ 2,988 $ 514 $ 4,110 $ 4,116 $ 193 $ — $ 21,727 Collectively evaluated for impairment 3,545,162 387,014 1,093,159 1,523,166 368,781 963,370 776,948 — 8,657,600 Purchased credit-impaired loans 11,805 128 — 618 431 95 253 — 13,330 Total loans $ 3,566,773 $ 387,142 $ 1,096,147 $ 1,524,298 $ 373,322 $ 967,581 $ 777,394 $ — $ 8,692,657 For the Three Months Ended March 31, 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 (715 ) 959 1,024 1,923 (1,047 ) 1,450 1,913 (3,507 ) 2,000 Recoveries 1,352 — 174 170 — 290 112 — 2,098 Charge-offs — — — (519 ) (7 ) (16 ) (377 ) — (919 ) Ending balance $ 23,461 $ 2,592 $ 28,766 $ 19,885 $ 2,999 $ 3,779 $ 5,514 $ 5,211 $ 92,207 March 31, 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 $ 284 $ — $ — $ 39 $ 201 $ 182 $ 11 $ — $ 717 Collectively evaluated for impairment 23,177 2,592 28,766 19,799 2,707 3,597 5,503 5,211 91,352 Purchased credit-impaired loans — — — 47 91 — — — 138 Total allowance for loan losses $ 23,461 $ 2,592 $ 28,766 $ 19,885 $ 2,999 $ 3,779 $ 5,514 $ 5,211 $ 92,207 Loan balances: Individually evaluated for impairment $ 11,607 $ — $ 750 $ 534 $ 7,943 $ 5,092 $ 208 $ — $ 26,134 Collectively evaluated for impairment 3,130,700 320,872 944,726 1,294,328 298,885 828,377 692,708 — 7,510,596 Purchased credit impaired loans 13,444 167 3,264 1,829 415 129 68 — 19,316 Total loans $ 3,155,751 $ 321,039 $ 948,740 $ 1,296,691 $ 307,243 $ 833,598 $ 692,984 $ — $ 7,556,046 |
GOODWILL, OTHER INTANGIBLE AS_2
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and the year ended December 31, 2018 (in thousands): Goodwill CDI LHI Total Balance, December 31, 2017 $ 242,659 $ 22,378 $ 277 $ 265,314 Additions through acquisitions (1) 96,495 16,368 — 112,863 Amortization — (6,047 ) (52 ) (6,099 ) Balance, December 31, 2018 339,154 32,699 225 372,078 Amortization — (2,052 ) — (2,052 ) Adjustments (2) — — (225 ) (225 ) Balance, March 31, 2019 $ 339,154 $ 30,647 $ — $ 369,801 (1) The additions to goodwill and CDI in 2018 relate to the acquisition of Skagit. (2) The adjustment to LHI represents a reclassification to the right of use lease asset in connection with the implementation of Lease Topic 842. |
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 2019 $ 5,905 2020 6,888 2021 5,816 2022 4,651 2023 3,237 Thereafter 4,150 $ 30,647 |
Schedule of Servicing Assets at Amortized Value | An analysis of our mortgage servicing rights for the three months ended March 31, 2019 and 2018 is presented below (in thousands): Three Months Ended 2019 2018 Balance, beginning of the period $ 14,638 $ 14,738 Additions—amounts capitalized 672 821 Additions—through purchase 47 15 Amortization (1) (940 ) (957 ) Balance, end of the period (2) $ 14,417 $ 14,617 (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 March 31, 2019 and 2018 . |
REAL ESTATE OWNED, NET (Tables)
REAL ESTATE OWNED, NET (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Balance, beginning of the period $ 2,611 $ 360 Additions from loan foreclosures — 128 Valuation adjustments in the period — (160 ) Balance, end of the period $ 2,611 $ 328 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | Deposits consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Non-interest-bearing accounts $ 3,676,984 $ 3,657,817 Interest-bearing checking 1,174,169 1,191,016 Regular savings accounts 1,865,852 1,842,581 Money market accounts 1,495,948 1,465,369 Total interest-bearing transaction and saving accounts 4,535,969 4,498,966 Certificates of deposit: Certificates of deposit less than or equal to $250,000 987,992 1,143,303 Certificates of deposit greater than $250,000 175,284 176,962 Total certificates of deposit (1) 1,163,276 1,320,265 Total deposits $ 9,376,229 $ 9,477,048 Included in total deposits: Public fund transaction and savings accounts $ 210,155 $ 217,401 Public fund interest-bearing certificates 29,572 30,089 Total public deposits $ 239,727 $ 247,490 Total brokered deposits $ 239,444 $ 377,347 (1) Certificates of deposit include $473,000 and $563,000 of acquisition premiums at March 31, 2019 and December 31, 2018 , respectively. |
Maturities of Certificates of Deposit | Scheduled maturities and weighted average interest rates of certificate accounts at March 31, 2019 are as follows (dollars in thousands): March 31, 2019 Amount Weighted Average Rate Maturing in one year or less $ 868,391 1.16 % Maturing after one year through two years 181,460 1.31 Maturing after two years through three years 87,538 1.76 Maturing after three years through four years 12,880 1.34 Maturing after four years through five years 10,633 2.01 Maturing after five years 2,374 1.06 Total certificates of deposit $ 1,163,276 1.24 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 , whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands): March 31, 2019 December 31, 2018 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 261,538 $ 261,538 $ 272,196 $ 272,196 Securities—trading 3 25,838 25,838 25,896 25,896 Securities—available-for-sale 2 1,603,804 1,603,804 1,636,223 1,636,223 Securities—held-to-maturity 2 215,792 216,911 230,984 229,301 Securities—held-to-maturity 3 3,201 3,201 3,236 3,236 Loans held for sale 2 45,865 46,038 171,031 171,157 Loans receivable 3 8,692,657 8,685,672 8,684,595 8,629,450 FHLB stock 3 27,063 27,063 31,955 31,955 Bank-owned life insurance 1 178,202 178,202 177,467 177,467 Mortgage servicing rights 3 14,417 23,766 14,638 25,813 Equity securities 1 422 422 352 352 Derivatives: Interest rate swaps 2 6,772 6,772 3,138 3,138 Interest rate lock and forward sales commitments 2 548 548 471 471 Liabilities: Demand, interest checking and money market accounts 2 6,347,100 6,347,100 6,314,202 6,314,202 Regular savings 2 1,865,852 1,865,852 1,842,581 1,842,581 Certificates of deposit 2 1,163,276 1,152,443 1,320,265 1,298,238 FHLB advances 2 418,000 418,000 540,189 540,189 Other borrowings 2 121,719 121,719 118,995 118,995 Junior subordinated debentures 3 113,917 113,917 114,091 114,091 Derivatives: Interest rate swaps 2 5,536 5,536 3,138 3,138 Interest rate lock and forward sales commitments 2 674 674 1,654 1,654 |
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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 25,838 $ 25,838 — — 25,838 25,838 Securities—available-for-sale U.S. Government and agency obligations — 138,315 — 138,315 Municipal bonds — 120,055 — 120,055 Corporate bonds — 4,044 — 4,044 Mortgage-backed or related securities — 1,323,577 — 1,323,577 Asset-backed securities — 17,813 — 17,813 — 1,603,804 — 1,603,804 Loans held for sale — 37,410 — 37,410 Equity securities — 422 — 422 Derivatives Interest rate swaps — 6,772 — 6,772 Interest rate lock and forward sales commitments — 548 — 548 $ — $ 1,648,956 $ 25,838 $ 1,674,794 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 113,917 $ 113,917 Derivatives Interest rate swaps — 5,536 — 5,536 Interest rate lock and forward sales commitments — 674 — 674 $ — $ 6,210 $ 113,917 $ 120,127 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 25,896 $ 25,896 — — 25,896 25,896 Securities—available-for-sale U.S. Government and agency obligations — 149,112 — 149,112 Municipal bonds — 117,822 — 117,822 Corporate bonds — 3,495 — 3,495 Mortgage-backed securities — 1,343,861 — 1,343,861 Asset-backed securities — 21,933 — 21,933 — 1,636,223 — 1,636,223 Loans held for sale — 164,767 — 164,767 Equity securities — 352 — 352 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 471 — 471 $ — $ 1,804,951 $ 25,896 $ 1,830,847 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 114,091 $ 114,091 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 1,654 — 1,654 $ — $ 4,792 $ 114,091 $ 118,883 |
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 March 31, 2019 and December 31, 2018 : Weighted Average Rate / Range Financial Instruments Valuation Techniques Unobservable Inputs March 31, 2019 December 31, 2018 Corporate bonds (TPS securities) Discounted cash flows Discount rate 6.60 % 6.81 % Junior subordinated debentures Discounted cash flows Discount rate 6.60 % 6.81 % Impaired loans Collateral Valuations Discount to appraised value 8.50 % 0.0% to 8.50% REO Appraisals Discount to appraised value 69.20 % 69.20 % |
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 months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Beginning balance $ 25,896 $ 114,091 Total gains or losses recognized Assets losses (58 ) — Liabilities gains — (174 ) Ending balance at March 31, 2019 $ 25,838 $ 113,917 Three Months Ended March 31, 2018 Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Beginning balance $ 22,058 $ 98,707 Total gains or losses recognized Assets gains 3,416 — Liabilities losses — 13,809 Ending balance at March 31, 2018 $ 25,474 $ 112,516 |
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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 450 $ 450 REO — — 2,611 2,611 December 31, 2018 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,915 $ 2,915 REO — — 2,611 2,611 The following table presents the losses resulting from non-recurring fair value adjustments for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Impaired loans $ (300 ) $ — REO — (160 ) Total loss from non-recurring measurements $ (300 ) $ (160 ) |
INCOME TAXES AND DEFERRED TAX_2
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Tax credit investments $ 21,764 $ 17,360 Unfunded commitments—tax credit investments 15,945 12,726 The following table presents other information related to the Company's tax credit investments for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Tax credits and other tax benefits recognized $ 494 $ 364 Tax credit amortization expense included in provision for income taxes 405 288 |
CALCULATION OF WEIGHTED AVERA_2
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 for the three months ended March 31, 2019 and 2018 (in thousands, except shares and per share data): Three Months Ended 2019 2018 Net income $ 33,346 $ 28,790 Basic weighted average shares outstanding 35,050,376 32,397,568 Plus unvested restricted stock 121,680 118,888 Diluted weighted shares outstanding 35,172,056 32,516,456 Earnings per common share Basic $ 0.95 $ 0.89 Diluted $ 0.95 $ 0.89 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 December 31, 2018 Commitments to extend credit $ 2,843,134 $ 2,837,981 Standby letters of credit and financial guarantees 15,861 17,784 Commitments to originate loans 50,692 32,145 Risk participation agreement 24,074 24,091 Derivatives also included in Note 14: Commitments to originate loans held for sale 55,667 31,728 Commitments to sell loans secured by one- to four-family residential properties 39,871 18,328 Commitments to sell securities related to mortgage banking activities 68,803 144,250 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated in Hedge Relationships | As of March 31, 2019 and December 31, 2018 , 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 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 $ 3,873 $ 269 $ 3,973 $ 270 $ 3,873 $ 269 $ 3,973 $ 270 (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 March 31, 2019 and December 31, 2018 , 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 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 $ 290,064 $ 6,503 $ 272,374 $ 2,868 $ 290,064 $ 5,267 $ 272,374 $ 2,868 Mortgage loan commitments 26,194 280 20,229 273 37,927 222 17,763 187 Forward sales contracts 39,871 268 18,328 198 68,803 452 144,250 1,467 $ 356,129 $ 7,051 $ 310,931 $ 3,339 $ 396,794 $ 5,941 $ 434,387 $ 4,522 (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 $315,000 at March 31, 2019 and $282,000 at December 31, 2018 ), 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 months ended March 31, 2019 and 2018 were as follows (in thousands): Location on Consolidated Statements of Operations Three Months Ended 2019 2018 Mortgage loan commitments Mortgage banking operations $ 7 $ 68 Forward sales contracts Mortgage banking operations 150 (11 ) $ 157 $ 57 |
Offsetting Assets and Liabilities | as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 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 $ 7,444 $ (672 ) $ 6,772 $ — $ — $ 6,772 $ 7,444 $ (672 ) $ 6,772 $ — $ — $ 6,772 Derivative liabilities Interest rate swaps $ 7,444 $ (1,908 ) $ 5,536 $ — $ (4,917 ) $ 619 $ 7,444 $ (1,908 ) $ 5,536 $ — $ (4,917 ) $ 619 December 31, 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 $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 Derivative liabilities Interest rate swaps $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Deposit fees and other service charges for the three months ended March 31, 2019 and 2018 are summarized as follows (in thousands): Three Months Ended 2019 2018 Deposit service charges $ 4,586 $ 4,320 Debit and credit interchange fees 6,573 7,320 Debit and credit card expense (2,449 ) (1,970 ) Merchant services income 2,856 2,261 Merchant services expenses (2,319 ) (1,804 ) Other service charges 3,371 1,169 Total deposit fees and other service charges $ 12,618 $ 11,296 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Costs | Lease Position as of March 31, 2019 The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at March 31, 2019 (dollars in thousands): Classification on the Balance Sheet March 31, 2019 Assets Operating right-of-use lease assets Other assets $ 55,163 Liabilities Operating lease liabilities Accrued expenses and other liabilities $ 58,083 Weighted-average remaining lease term Operating leases 5.8 years Weighted-average discount rate Operating leases 4.38 % Lease Costs The table below presents certain information related to the lease costs for operating leases for the three months ended March 31, 2019 (in thousands): Operating lease cost (1) $ 3,975 Short-term lease costs (1) 121 Variable lease cost (1) 561 Less sublease income (1) (237 ) Total lease cost $ 4,420 (1) Lease expenses and sublease income are classified within occupancy and equipment expense on the Consolidated Statements of Operations. |
Lessee, Operating Lease, Liability, Maturity | The table below reconciles the undiscounted cash flows for each of the first five years beginning with 2019 and the total of the remaining years to the operating lease liabilities recorded on the Consolidated Statements of Financial Position (in thousands): Operating Leases Remainder of 2019 $ 11,003 2020 13,721 2021 12,019 2022 8,542 2023 5,567 Thereafter 15,023 Total minimum lease payments 65,875 Less: amount of lease payments representing interest (7,792 ) Lease obligations $ 58,083 |
ACCOUNTING STANDARDS RECENTLY_2
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating right-of-use lease assets | $ 55,163 | |
Operating lease liabilities | $ 58,083 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating right-of-use lease assets | $ 56,000 | |
Operating lease liabilities | $ 59,000 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) shares in Millions | Nov. 01, 2018USD ($)bank_branchshares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Assets acquired | $ 915,800,000 | |||
Goodwill | $ 339,154,000 | $ 339,154,000 | $ 242,659,000 | |
Nonaccretable difference | $ (6,500,000) | |||
Skagit Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interest acquired | 100.00% | |||
Number of branches acquired | bank_branch | 11 | |||
Shares transferred as consideration (in shares) | shares | 3.1 | |||
Total consideration paid | $ 180,038,000 | |||
Assets acquired | 915,821,000 | |||
Deposits recognized | 810,200,000 | |||
Loans receivable (contractual amount of $645.6 million) | 632,374,000 | |||
Core deposit intangible | 16,368,000 | |||
Goodwill | $ 96,495,000 | |||
Acquired intangible asset, useful life | 9 years | |||
Unpaid principal balance on non-credit-impaired loans | $ 637,400,000 | |||
Fair value on non-credit-impaired loans | 625,200,000 | |||
Discount on acquired loans | 12,200,000 | |||
Credit related discount | 7,900,000 | |||
Contractually required principal and interest payments | 9,897,000 | |||
Nonaccretable difference | (1,915,000) | |||
Cash flows expected to be collected | 7,982,000 | |||
Accretable yield | (995,000) | |||
Fair value of PCI loans | $ 6,987,000 |
BUSINESS COMBINATION - Purchase
BUSINESS COMBINATION - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 01, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Total assets acquired | $ 915,800 | |||
Goodwill | $ 339,154 | $ 339,154 | $ 242,659 | |
Skagit Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash paid | 329 | |||
Fair value of common shares issued | 179,709 | |||
Total consideration | 180,038 | |||
Cash and cash equivalents | 19,167 | |||
Securities | 210,326 | |||
Loans receivable (contractual amount of $645.6 million) | 632,374 | |||
Real estate owned held for sale | 2,593 | |||
Property and equipment | 15,788 | |||
Core deposit intangible | 16,368 | |||
Deferred tax asset | 95 | |||
Other assets | 19,110 | |||
Total assets acquired | 915,821 | |||
Deposits | 810,209 | |||
Other liabilities | 22,069 | |||
Total liabilities assumed | 832,278 | |||
Net assets acquired | 83,543 | |||
Goodwill | 96,495 | |||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 645,600 |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | $ 27,203 | $ 27,203 |
Securities—trading | 25,838 | 25,896 |
Available-for-sale Securities, Amortized Cost | 1,599,347 | 1,648,421 |
Available-for-sale Securities, Gross Unrealized Gains | 14,383 | 7,171 |
Available-for-sale Securities, Gross Unrealized Losses | (9,926) | (19,369) |
Securities—available-for-sale | 1,603,804 | 1,636,223 |
Held-to-maturity Securities, Amortized Cost | 218,993 | 234,220 |
Held-to-maturity Securities, Gross Unrealized Gains | 2,681 | 1,807 |
Held-to-maturity Securities, Gross Unrealized Losses | 1,562 | 3,490 |
Securities—held-to-maturity | 220,112 | 232,537 |
U.S. Government and agency obligations [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 139,621 | 151,012 |
Available-for-sale Securities, Gross Unrealized Gains | 134 | 149 |
Available-for-sale Securities, Gross Unrealized Losses | (1,440) | (2,049) |
Securities—available-for-sale | 138,315 | 149,112 |
Held-to-maturity Securities, Amortized Cost | 389 | 1,006 |
Held-to-maturity Securities, Gross Unrealized Gains | 3 | 14 |
Held-to-maturity Securities, Gross Unrealized Losses | 0 | 1 |
Securities—held-to-maturity | 392 | 1,019 |
Municipal bonds [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 116,954 | 116,548 |
Available-for-sale Securities, Gross Unrealized Gains | 3,288 | 1,806 |
Available-for-sale Securities, Gross Unrealized Losses | (187) | (532) |
Securities—available-for-sale | 120,055 | 117,822 |
Held-to-maturity Securities, Amortized Cost | 163,614 | 176,663 |
Held-to-maturity Securities, Gross Unrealized Gains | 2,527 | 1,727 |
Held-to-maturity Securities, Gross Unrealized Losses | 1,248 | 2,578 |
Securities—held-to-maturity | 164,893 | 175,812 |
Corporate bonds [Member] | ||
Schedule of Securities [Line Items] | ||
Securities—trading, Amortized Cost | 27,203 | 27,203 |
Securities—trading | 25,838 | 25,896 |
Available-for-sale Securities, Amortized Cost | 4,057 | 3,556 |
Available-for-sale Securities, Gross Unrealized Gains | 4 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | (17) | (61) |
Securities—available-for-sale | 4,044 | 3,495 |
Held-to-maturity Securities, Amortized Cost | 3,701 | 3,736 |
Held-to-maturity Securities, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity Securities, Gross Unrealized Losses | 13 | 13 |
Securities—held-to-maturity | 3,688 | 3,723 |
Mortgage-backed or related securities [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 1,320,826 | 1,355,258 |
Available-for-sale Securities, Gross Unrealized Gains | 10,952 | 5,210 |
Available-for-sale Securities, Gross Unrealized Losses | (8,201) | (16,607) |
Securities—available-for-sale | 1,323,577 | 1,343,861 |
Held-to-maturity Securities, Amortized Cost | 51,289 | 52,815 |
Held-to-maturity Securities, Gross Unrealized Gains | 151 | 66 |
Held-to-maturity Securities, Gross Unrealized Losses | 301 | 898 |
Securities—held-to-maturity | 51,139 | 51,983 |
Asset-backed Securities [Member] | ||
Schedule of Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 17,889 | 22,047 |
Available-for-sale Securities, Gross Unrealized Gains | 5 | 6 |
Available-for-sale Securities, Gross Unrealized Losses | (81) | (120) |
Securities—available-for-sale | $ 17,813 | $ 21,933 |
SECURITIES (Securities with Con
SECURITIES (Securities with Continuous Loss Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 53,025 | $ 412,162 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (256) | (4,313) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 762,621 | 659,936 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (9,670) | (15,056) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 815,646 | 1,072,098 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (9,926) | (19,369) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,952 | 40,804 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 8 | 495 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 76,003 | 75,159 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,554) | (2,995) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 77,955 | 115,963 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 1,562 | 3,490 |
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 | 713 | 75,885 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4) | (1,240) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 120,227 | 50,508 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,436) | (809) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 120,940 | 126,393 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,440) | (2,049) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 145 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | |
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 | 145 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 1 | |
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 | 753 | 6,422 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (54) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 23,686 | 27,231 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (184) | (478) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 24,439 | 33,653 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (187) | (532) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 915 | 29,898 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 274 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 42,524 | 44,637 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,247) | (2,304) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 43,439 | 74,535 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 1,248 | 2,578 |
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 | 2,344 | 3,199 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (14) | (56) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 297 | 295 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,641 | 3,494 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (17) | (61) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 0 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 488 | 487 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (13) | (13) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 488 | 487 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 13 | 13 |
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 | 42,354 | 316,074 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (203) | (2,939) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 608,455 | 571,989 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (7,998) | (13,668) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 650,809 | 888,063 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (8,201) | (16,607) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,037 | 10,761 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 7 | 220 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 32,991 | 30,035 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (294) | (678) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 34,028 | 40,796 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 301 | 898 |
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 | 6,861 | 10,582 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (32) | (24) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 9,956 | 9,913 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (49) | (96) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16,817 | 20,495 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (81) | $ (120) |
SECURITIES (Securities Debt Mat
SECURITIES (Securities Debt Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading Securities, Amortized Cost, Maturing in one year or less | $ 0 | |
Trading Securities, Amortized Cost, Maturing after one year through five years | 0 | |
Trading Securities, Amortized Cost, Maturing after five years through ten years | 0 | |
Trading Securities, Amortized Cost, Maturing after ten years through twenty years | 27,203 | |
Trading Securities, Amortized Cost, Maturing after twenty years | 0 | |
Trading Securities, Amortized Cost | 27,203 | $ 27,203 |
Trading Securities, Fair Value, Maturing in one year or less | 0 | |
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 | 25,838 | |
Trading Securities, Fair Value, Maturing after twenty years | 0 | |
Trading Securities, Fair Value | 25,838 | 25,896 |
Available-for-sale Securities, Amortized Cost, Maturing in one year or less | 6,520 | |
Available-for-sale Securities, Amortized Cost, Maturing after one year through five years | 86,092 | |
Available-for-sale Securities, Amortized Cost, Maturing after five years through ten years | 382,934 | |
Available-for-sale Securities, Amortized Cost, Maturing after ten years through twenty years | 198,705 | |
Available-for-sale Securities, Amortized Cost, Maturing after twenty years | 925,096 | |
Available-for-sale Securities, Amortized Cost | 1,599,347 | 1,648,421 |
Available-for-sale Securities, Fair Value, Maturing in one year or less | 6,514 | |
Available-for-sale Securities, Fair Value, Maturing after one year through five years | 86,474 | |
Available-for-sale Securities, Fair Value, Maturing after five years through ten years | 386,318 | |
Available-for-sale Securities, Fair Value, Maturing after ten years through twenty years | 201,247 | |
Available-for-sale Securities, Fair Value, Maturing after twenty years | 923,251 | |
Available-for-sale Securities, Fair Value | 1,603,804 | 1,636,223 |
Held-to-maturity Securities, Amortized Cost, Maturing in one year or less | 2,869 | |
Held-to-maturity Securities, Amortized Cost, Maturing after one year through five years | 61,698 | |
Held-to-maturity Securities, Amortized Cost, Maturing after five years through ten years | 57,947 | |
Held-to-maturity Securities, Amortized Cost, Maturing after ten years through twenty years | 62,540 | |
Held-to-maturity Securities, Amortized Cost, Maturing after twenty years | 33,939 | |
Held-to-maturity Securities, Amortized Cost | 218,993 | 234,220 |
Held-to-maturity Securities, Fair Value, Maturing in one year or less | 2,865 | |
Held-to-maturity Securities, Fair Value, Maturing after one year through five years | 61,839 | |
Held-to-maturity Securities, Fair Value, Maturing after five years through ten years | 58,934 | |
Held-to-maturity Securities, Fair Value, Maturing after ten years through twenty years | 63,667 | |
Held-to-maturity Securities, Fair Value, Maturing after twenty years | 32,807 | |
Debt Securities, Held-to-maturity, Fair Value | $ 220,112 | $ 232,537 |
SECURITIES (Securities Pledged)
SECURITIES (Securities Pledged) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Pledged Financial Instruments, Not Separately Reported, Securities [Abstract] | |
Securities pledged for State and Local Government Public Deposits, Carrying Value | $ 149,193 |
Securities pledged for Interest Rate Swap Counterparties, Carrying Value | 10,835 |
Securities pledged for Repurchase Agreements, Carrying Value | 150,783 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities | 2,739 |
Total pledged securities, Carrying Value | 313,550 |
Securities pledged for State and Local Government public deposits, Amortized Cost | 149,306 |
Securities pledged for Interest Rate Swap Counterparties, Amortized Cost | 10,931 |
Securities pledged for Repurchase Agreements, Amortized Cost | 150,027 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Amortized Cost | 2,739 |
Total pledged securities, Amortized Cost | 313,003 |
Securities pledged for State and Local Government Public Deposits, Fair Value | 150,815 |
Securities pledged for Interest Rate Swap Counterparties, Fair Value | 10,895 |
Securities pledged for Retail Repurchase Agreements, Fair Value | 150,783 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Fair Value | 2,678 |
Total pledged securities, Fair Value | $ 315,171 |
SECURITIES (Textual) (Details)
SECURITIES (Textual) (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)security | Mar. 31, 2018USD ($)security | Dec. 31, 2018security | |
Investments, Debt and Equity Securities [Abstract] | |||
Trading Securities, Sale Proceeds | $ 0 | $ 1,300,000 | |
Trading Securities, Realized Gain (Loss) | 0 | 28,000 | |
Trading Securities, OTTI (Recovery) Charges | $ 0 | 0 | |
Trading Securities, Number of Securities on Nonaccrual Status | security | 0 | 0 | |
Trading Securities, Unrealized Holding Loss | $ (58,000) | ||
Trading Securities, Unrealized Holding Gain | 3,400,000 | ||
Debt Securities, Available-for-sale [Abstract] | |||
Available-for-sale Securities, Number of Securities in Unrealized Loss Position | security | 233 | 271 | |
Available-for-sale Securities, Gross Realized Gains (Losses), Number of Securities Sold | security | 1 | ||
Available-for-sale Securities, Sale Proceeds | $ 500,000 | 0 | |
Available-for-sale Securities, Gross Realized Gain (Loss) | 1,000 | 4,000 | |
Available-for-sale Securities, OTTI Charges | $ 0 | $ 0 | |
Available-for-sale Securities, Number of Securities in Nonaccrual Status | security | 0 | 0 | |
Held-to-maturity Securities [Abstract] | |||
Held-to-maturity Securities, Number of Securities in Unrealized Loss Position | security | 49 | 90 | |
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 | 14,744,000 | $ 2,358,000 | |
Held-to-maturity Securities, OTTI Charges | $ 0 | $ 0 | |
Held-to-maturity Securities, Number of Securities in Nonaccrual Status | security | 0 | 0 |
LOANS RECEIVABLE AND THE ALLO_3
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Loans by Type) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 8,692,657 | $ 8,684,595 | $ 7,556,046 | |
Allowance for loan losses | 97,308 | 96,485 | 92,207 | $ 89,028 |
Net loans | $ 8,595,349 | $ 8,588,110 | ||
Percent of total loans | 100.00% | 100.00% | ||
Unearned loan fees in excess of unamortized costs | $ 724 | $ (1,400) | ||
Discount on acquired loans, net | 24,200 | 25,700 | ||
Commerical real estate - owner-occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 1,442,724 | $ 1,430,097 | ||
Percent of total loans | 16.60% | 16.40% | ||
Commercial real estate - investment properties [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 2,124,049 | $ 2,131,059 | ||
Percent of total loans | 24.40% | 24.50% | ||
Multifamily real estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 387,142 | $ 368,836 | 321,039 | |
Allowance for loan losses | $ 4,020 | $ 3,818 | 2,592 | 1,633 |
Percent of total loans | 4.50% | 4.20% | ||
Commercial construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 181,888 | $ 172,410 | ||
Percent of total loans | 2.10% | 2.00% | ||
Multifamily Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 183,203 | $ 184,630 | ||
Percent of total loans | 2.10% | 2.10% | ||
One- to four-family construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 514,468 | $ 534,678 | ||
Percent of total loans | 5.90% | 6.20% | ||
Land and land development - residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 187,660 | $ 188,508 | ||
Percent of total loans | 2.20% | 2.20% | ||
Land and land development - commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 28,928 | $ 27,278 | ||
Percent of total loans | 0.30% | 0.30% | ||
Commercial business [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 1,524,298 | $ 1,483,614 | 1,296,691 | |
Allowance for loan losses | $ 18,662 | $ 19,438 | 19,885 | 18,311 |
Percent of total loans | 17.50% | 17.10% | ||
Agricultural business, including secured by farmland [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 373,322 | $ 404,873 | 307,243 | |
Allowance for loan losses | $ 3,596 | $ 3,778 | 2,999 | 4,053 |
Percent of total loans | 4.30% | 4.70% | ||
One- to four-family residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 967,581 | $ 973,616 | 833,598 | |
Allowance for loan losses | $ 4,711 | $ 4,714 | $ 3,779 | $ 2,055 |
Percent of total loans | 11.10% | 11.20% | ||
Consumer secured by one- to four-family [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 564,872 | $ 568,979 | ||
Percent of total loans | 6.50% | 6.60% | ||
Consumer - other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 212,522 | $ 216,017 | ||
Percent of total loans | 2.50% | 2.50% |
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 | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Outstanding contractual unpaid balance of purchased credit-impaired loans | $ 20,700 | $ 22,000 | |
Carrying balance of purchased credit-impaired loans | 13,330 | $ 19,316 | 14,413 |
Accretable Yield Movement Schedule [Roll Forward] | |||
Balance, beginning of period | 5,216 | 6,520 | |
Accretion to interest income | (493) | (1,097) | |
Disposals | 0 | 58 | |
Reclassifications from non-accretable difference | 55 | 807 | |
Balance, end of period | 4,778 | $ 6,288 | |
Certain Loans Acquired in Transfer, Nonaccretable Difference | $ 6,500 | ||
Non-accretable difference | $ 7,100 |
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 | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | $ 35,618 | $ 31,813 | |
Recorded Investment, Without Allowance | 21,075 | 17,765 | |
Recorded Investment, With Allowance | 11,254 | 11,311 | |
Related Allowance | 385 | 416 | |
Average Recorded Investment | 31,498 | $ 40,305 | |
Interest Income Recognized | 181 | 234 | |
Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 3,771 | 3,193 | |
Recorded Investment, Without Allowance | 3,345 | 2,768 | |
Recorded Investment, With Allowance | 200 | 200 | |
Related Allowance | 21 | 19 | |
Average Recorded Investment | 3,451 | 5,383 | |
Interest Income Recognized | 2 | 3 | |
Commercial real estate - investment properties [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 8,624 | 7,287 | |
Recorded Investment, Without Allowance | 2,388 | 1,320 | |
Recorded Investment, With Allowance | 5,574 | 5,606 | |
Related Allowance | 219 | 226 | |
Average Recorded Investment | 7,227 | 9,972 | |
Interest Income Recognized | 76 | 83 | |
Commercial construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 1,427 | 0 | |
Interest Income Recognized | 0 | 0 | |
Multifamily Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 1,901 | ||
Recorded Investment, Without Allowance | 1,427 | ||
Recorded Investment, With Allowance | 0 | ||
Related Allowance | 0 | ||
One- to four-family construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 919 | 919 | |
Recorded Investment, Without Allowance | 919 | 919 | |
Recorded Investment, With Allowance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 919 | 605 | |
Interest Income Recognized | 0 | 4 | |
Land and land development - residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 1,026 | 1,134 | |
Recorded Investment, Without Allowance | 690 | 798 | |
Recorded Investment, With Allowance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 726 | 798 | |
Interest Income Recognized | 0 | 0 | |
Land and land development - commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 44 | ||
Recorded Investment, Without Allowance | 44 | ||
Recorded Investment, With Allowance | 0 | ||
Related Allowance | 0 | ||
Commercial business [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 4,948 | 4,014 | |
Recorded Investment, Without Allowance | 3,615 | 2,937 | |
Recorded Investment, With Allowance | 393 | 391 | |
Related Allowance | 12 | 16 | |
Average Recorded Investment | 3,803 | 4,007 | |
Interest Income Recognized | 5 | 7 | |
Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 5,619 | 4,863 | |
Recorded Investment, Without Allowance | 2,507 | 1,751 | |
Recorded Investment, With Allowance | 2,561 | 2,561 | |
Related Allowance | 66 | 96 | |
Average Recorded Investment | 5,117 | 9,109 | |
Interest Income Recognized | 27 | 33 | |
One- to four-family residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 6,335 | 6,724 | |
Recorded Investment, Without Allowance | 3,961 | 4,314 | |
Recorded Investment, With Allowance | 2,333 | 2,358 | |
Related Allowance | 59 | 51 | |
Average Recorded Investment | 6,446 | 8,892 | |
Interest Income Recognized | 65 | 101 | |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 2,130 | 1,622 | |
Recorded Investment, Without Allowance | 1,948 | 1,438 | |
Recorded Investment, With Allowance | 132 | 133 | |
Related Allowance | 5 | 6 | |
Average Recorded Investment | 2,063 | 1,390 | |
Interest Income Recognized | 5 | 2 | |
Consumer - other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 345 | 112 | |
Recorded Investment, Without Allowance | 275 | 49 | |
Recorded Investment, With Allowance | 61 | 62 | |
Related Allowance | 3 | $ 2 | |
Average Recorded Investment | 319 | 149 | |
Interest Income Recognized | $ 1 | $ 1 |
LOANS RECEIVABLE AND THE ALLO_6
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring) (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)contract | Mar. 31, 2018USD ($)contract | Dec. 31, 2018USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | $ 13,036,000 | $ 13,422,000 | |
TDRs on Nonaccrual Status | 1,405,000 | 317,000 | |
Total TDRs | 14,441,000 | 13,739,000 | |
Commitments to advance funds related to TDRs, maximum additional amounts | $ 49,000 | 0 | |
Number of Contracts | contract | 1 | 0 | |
Pre-modification Outstanding Recorded Investment | $ 1,090,000 | $ 0 | |
Post-modification Outstanding Recorded Investment | 1,090,000 | $ 0 | |
Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | 200,000 | 200,000 | |
TDRs on Nonaccrual Status | 76,000 | 78,000 | |
Total TDRs | 276,000 | 278,000 | |
Commercial real estate - investment properties [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | 5,574,000 | 5,606,000 | |
TDRs on Nonaccrual Status | 1,090,000 | 0 | |
Total TDRs | $ 6,664,000 | 5,606,000 | |
Number of Contracts | contract | 1 | ||
Pre-modification Outstanding Recorded Investment | $ 1,090,000 | $ 0 | |
Post-modification Outstanding Recorded Investment | 1,090,000 | $ 0 | |
Commercial business [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | 392,000 | 391,000 | |
TDRs on Nonaccrual Status | 0 | 0 | |
Total TDRs | 392,000 | 391,000 | |
Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | 2,561,000 | 2,561,000 | |
TDRs on Nonaccrual Status | 0 | 0 | |
Total TDRs | 2,561,000 | 2,561,000 | |
One- to four-family residential [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | 4,116,000 | 4,469,000 | |
TDRs on Nonaccrual Status | 239,000 | 239,000 | |
Total TDRs | 4,355,000 | 4,708,000 | |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | 132,000 | 133,000 | |
TDRs on Nonaccrual Status | 0 | 0 | |
Total TDRs | 132,000 | 133,000 | |
Consumer - other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs on Accrual Status | 61,000 | 62,000 | |
TDRs on Nonaccrual Status | 0 | 0 | |
Total TDRs | $ 61,000 | $ 62,000 |
LOANS RECEIVABLE AND THE ALLO_7
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Newly Restructured Loans) (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)contract | Mar. 31, 2018contract | Dec. 31, 2018USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Commitments to advance funds related to TDRs, maximum additional amounts | $ | $ 49,000 | $ 0 | |
Number of Contracts | contract | 1 | 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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | $ 8,692,657 | $ 8,684,595 | $ 7,556,046 |
Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,442,724 | 1,430,097 | |
Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 2,124,049 | 2,131,059 | |
Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 387,142 | 368,836 | 321,039 |
Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 181,888 | 172,410 | |
Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 183,203 | 184,630 | |
One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 514,468 | 534,678 | |
Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 187,660 | 188,508 | |
Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 28,928 | 27,278 | |
Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,524,298 | 1,483,614 | 1,296,691 |
Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 373,322 | 404,873 | 307,243 |
One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 967,581 | 973,616 | $ 833,598 |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 564,872 | 568,979 | |
Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 212,522 | 216,017 | |
Pass (Risk Ratings 1-5) [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 8,581,857 | 8,557,839 | |
Pass (Risk Ratings 1-5) [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,416,650 | 1,396,721 | |
Pass (Risk Ratings 1-5) [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 2,113,616 | 2,122,621 | |
Pass (Risk Ratings 1-5) [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 386,584 | 368,262 | |
Pass (Risk Ratings 1-5) [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 168,683 | 159,167 | |
Pass (Risk Ratings 1-5) [Member] | Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 183,203 | 184,630 | |
Pass (Risk Ratings 1-5) [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 513,549 | 533,759 | |
Pass (Risk Ratings 1-5) [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 186,970 | 187,710 | |
Pass (Risk Ratings 1-5) [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 28,892 | 27,200 | |
Pass (Risk Ratings 1-5) [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,489,952 | 1,436,733 | |
Pass (Risk Ratings 1-5) [Member] | Small Credit-Scored Business Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 732,300 | 590,900 | |
Pass (Risk Ratings 1-5) [Member] | Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 359,102 | 392,318 | |
Pass (Risk Ratings 1-5) [Member] | One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 962,602 | 969,011 | |
Pass (Risk Ratings 1-5) [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 560,087 | 564,001 | |
Pass (Risk Ratings 1-5) [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 211,967 | 215,706 | |
Special mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 33,467 | 31,162 | |
Special mention [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 6,898 | 6,963 | |
Special mention [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
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 | 11,778 | 11,816 | |
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 | 0 | 0 | |
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 | 8,019 | 7,661 | |
Special mention [Member] | Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 6,316 | 4,214 | |
Special mention [Member] | One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 449 | 499 | |
Special mention [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 0 | 0 | |
Special mention [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 7 | 9 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 77,249 | 95,507 | |
Substandard [Member] | Owner-occupied Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 19,176 | 26,413 | |
Substandard [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 10,433 | 8,438 | |
Substandard [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 558 | 574 | |
Substandard [Member] | Commercial construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 1,427 | 1,427 | |
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 | 919 | 919 | |
Substandard [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 690 | 798 | |
Substandard [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 36 | 78 | |
Substandard [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 26,243 | 39,133 | |
Substandard [Member] | Agricultural Business/Farmland [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 7,904 | 8,341 | |
Substandard [Member] | One- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 4,530 | 4,106 | |
Substandard [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 4,785 | 4,978 | |
Substandard [Member] | Consumer Borrower [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 548 | 302 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans receivable | 84 | 87 | |
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 | 84 | 87 | |
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 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 46,136 | $ 38,202 | |
Purchased Credit-Impaired | 13,330 | 14,413 | $ 19,316 |
Current | 8,633,191 | 8,631,980 | |
Total loans | 8,692,657 | 8,684,595 | 7,556,046 |
Loans 90 days or more past due and still accruing | 683 | 906 | |
Nonaccrual loans | 18,610 | 14,748 | |
Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,578 | 3,527 | |
Purchased Credit-Impaired | 8,411 | 8,531 | |
Current | 1,428,735 | 1,418,039 | |
Total loans | 1,442,724 | 1,430,097 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 3,346 | 2,768 | |
Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,068 | 1,523 | |
Purchased Credit-Impaired | 3,394 | 3,462 | |
Current | 2,117,587 | 2,126,074 | |
Total loans | 2,124,049 | 2,131,059 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 2,388 | 1,320 | |
Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 300 | 317 | |
Purchased Credit-Impaired | 128 | 138 | 167 |
Current | 386,714 | 368,381 | |
Total loans | 387,142 | 368,836 | 321,039 |
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 | 1,427 | 1,427 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 180,461 | 170,983 | |
Total loans | 181,888 | 172,410 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 1,427 | 1,427 | |
Multifamily Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4,586 | 0 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 178,617 | 184,630 | |
Total loans | 183,203 | 184,630 | |
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 | 10,815 | 6,778 | |
Purchased Credit-Impaired | 0 | 137 | |
Current | 503,653 | 527,763 | |
Total loans | 514,468 | 534,678 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 919 | 919 | |
Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 690 | 1,248 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 186,970 | 187,260 | |
Total loans | 187,660 | 188,508 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 690 | 798 | |
Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 78 | |
Purchased Credit-Impaired | 0 | 0 | |
Current | 28,928 | 27,200 | |
Total loans | 28,928 | 27,278 | |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 44 | |
Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,851 | 7,043 | |
Purchased Credit-Impaired | 618 | 1,028 | 1,829 |
Current | 1,517,829 | 1,475,543 | |
Total loans | 1,524,298 | 1,483,614 | 1,296,691 |
Loans 90 days or more past due and still accruing | 1 | 1 | |
Nonaccrual loans | 3,614 | 2,936 | |
Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,097 | 3,462 | |
Purchased Credit-Impaired | 431 | 493 | 415 |
Current | 369,794 | 400,918 | |
Total loans | 373,322 | 404,873 | 307,243 |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 2,507 | 1,751 | |
One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6,383 | 8,887 | |
Purchased Credit-Impaired | 95 | 101 | 129 |
Current | 961,103 | 964,628 | |
Total loans | 967,581 | 973,616 | $ 833,598 |
Loans 90 days or more past due and still accruing | 640 | 658 | |
Nonaccrual loans | 1,538 | 1,544 | |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,169 | 2,607 | |
Purchased Credit-Impaired | 165 | 432 | |
Current | 561,538 | 565,940 | |
Total loans | 564,872 | 568,979 | |
Loans 90 days or more past due and still accruing | 42 | 238 | |
Nonaccrual loans | 1,906 | 1,201 | |
Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,172 | 1,305 | |
Purchased Credit-Impaired | 88 | 91 | |
Current | 211,262 | 214,621 | |
Total loans | 212,522 | 216,017 | |
Loans 90 days or more past due and still accruing | 0 | 9 | |
Nonaccrual loans | 275 | 40 | |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 28,515 | 18,270 | |
30 to 59 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,758 | 785 | |
30 to 59 Days Past Due [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,143 | 91 | |
30 to 59 Days Past Due [Member] | Multifamily real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 300 | 317 | |
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 | 4,586 | 0 | |
30 to 59 Days Past Due [Member] | One- to four-family construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 9,896 | 4,781 | |
30 to 59 Days Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 450 | |
30 to 59 Days Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 34 | |
30 to 59 Days Past Due [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,782 | 3,982 | |
30 to 59 Days Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 343 | |
30 to 59 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,662 | 5,440 | |
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 | 1,667 | 1,136 | |
30 to 59 Days Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 721 | 911 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,368 | 7,858 | |
60 to 89 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 100 | 519 | |
60 to 89 Days Past Due [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 498 | |
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 | 0 | 1,078 | |
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 | 648 | 1,305 | |
60 to 89 Days Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 726 | 1,518 | |
60 to 89 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,026 | 1,790 | |
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 | 655 | 765 | |
60 to 89 Days Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 213 | 385 | |
90 Days or More Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 14,253 | 12,074 | |
90 Days or More Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,720 | 2,223 | |
90 Days or More Past Due [Member] | Commercial real estate - investment properties [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 925 | 934 | |
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 | 1,427 | 1,427 | |
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 | 919 | 919 | |
90 Days or More Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 690 | 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 | 44 | |
90 Days or More Past Due [Member] | Commercial business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,421 | 1,756 | |
90 Days or More Past Due [Member] | Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,371 | 1,601 | |
90 Days or More Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,695 | 1,657 | |
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 | 847 | 706 | |
90 Days or More Past Due [Member] | Consumer - other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 238 | $ 9 |
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 | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | $ 96,485 | $ 89,028 | |||
Provision for loan losses | 2,000 | 2,000 | |||
Recoveries | 219 | 2,098 | |||
Charge-offs | (1,396) | (919) | |||
Allowance for loan losses, Ending balance | 97,308 | 92,207 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | $ 385 | $ 717 | |||
Allowance collectively evaluated for impairment | 96,842 | 91,352 | |||
Allowance for purchased credit-impaired loans | 81 | 138 | |||
Total allowance for loan losses | 96,485 | 89,028 | 97,308 | $ 96,485 | 92,207 |
Loans individually evaluated for impairment | 21,727 | 26,134 | |||
Loans collectively evaluated for impairment | 8,657,600 | 7,510,596 | |||
Purchased Credit-Impaired | 13,330 | 14,413 | 19,316 | ||
Total loans | 8,692,657 | 8,684,595 | 7,556,046 | ||
Commercial real estate [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 27,132 | 22,824 | |||
Provision for loan losses | 369 | (715) | |||
Recoveries | 21 | 1,352 | |||
Charge-offs | (431) | 0 | |||
Allowance for loan losses, Ending balance | 27,091 | 23,461 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 240 | 284 | |||
Allowance collectively evaluated for impairment | 26,851 | 23,177 | |||
Allowance for purchased credit-impaired loans | 0 | 0 | |||
Total allowance for loan losses | 27,132 | 22,824 | 27,091 | 27,132 | 23,461 |
Loans individually evaluated for impairment | 9,806 | 11,607 | |||
Loans collectively evaluated for impairment | 3,545,162 | 3,130,700 | |||
Purchased Credit-Impaired | 11,805 | 13,444 | |||
Total loans | 3,566,773 | 3,155,751 | |||
Multifamily real estate [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 3,818 | 1,633 | |||
Provision for loan losses | 202 | 959 | |||
Recoveries | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Allowance for loan losses, Ending balance | 4,020 | 2,592 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 0 | 0 | |||
Allowance collectively evaluated for impairment | 4,020 | 2,592 | |||
Allowance for purchased credit-impaired loans | 0 | 0 | |||
Total allowance for loan losses | 3,818 | 1,633 | 4,020 | 3,818 | 2,592 |
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 387,014 | 320,872 | |||
Purchased Credit-Impaired | 128 | 138 | 167 | ||
Total loans | 387,142 | 368,836 | 321,039 | ||
Construction and Land [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 24,442 | 27,568 | |||
Provision for loan losses | (751) | 1,024 | |||
Recoveries | 22 | 174 | |||
Charge-offs | 0 | 0 | |||
Allowance for loan losses, Ending balance | 23,713 | 28,766 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 0 | 0 | |||
Allowance collectively evaluated for impairment | 23,713 | 28,766 | |||
Allowance for purchased credit-impaired loans | 0 | 0 | |||
Total allowance for loan losses | 24,442 | 27,568 | 23,713 | 24,442 | 28,766 |
Loans individually evaluated for impairment | 2,988 | 750 | |||
Loans collectively evaluated for impairment | 1,093,159 | 944,726 | |||
Purchased Credit-Impaired | 0 | 3,264 | |||
Total loans | 1,096,147 | 948,740 | |||
Commercial business [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 19,438 | 18,311 | |||
Provision for loan losses | (209) | 1,923 | |||
Recoveries | 23 | 170 | |||
Charge-offs | (590) | (519) | |||
Allowance for loan losses, Ending balance | 18,662 | 19,885 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 12 | 39 | |||
Allowance collectively evaluated for impairment | 18,627 | 19,799 | |||
Allowance for purchased credit-impaired loans | 23 | 47 | |||
Total allowance for loan losses | 19,438 | 18,311 | 18,662 | 19,438 | 19,885 |
Loans individually evaluated for impairment | 514 | 534 | |||
Loans collectively evaluated for impairment | 1,523,166 | 1,294,328 | |||
Purchased Credit-Impaired | 618 | 1,028 | 1,829 | ||
Total loans | 1,524,298 | 1,483,614 | 1,296,691 | ||
Agricultural Business/Farmland [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 3,778 | 4,053 | |||
Provision for loan losses | (178) | (1,047) | |||
Recoveries | 0 | 0 | |||
Charge-offs | (4) | (7) | |||
Allowance for loan losses, Ending balance | 3,596 | 2,999 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 66 | 201 | |||
Allowance collectively evaluated for impairment | 3,472 | 2,707 | |||
Allowance for purchased credit-impaired loans | 58 | 91 | |||
Total allowance for loan losses | 3,778 | 4,053 | 3,596 | 3,778 | 2,999 |
Loans individually evaluated for impairment | 4,110 | 7,943 | |||
Loans collectively evaluated for impairment | 368,781 | 298,885 | |||
Purchased Credit-Impaired | 431 | 493 | 415 | ||
Total loans | 373,322 | 404,873 | 307,243 | ||
One- to four-family [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 4,714 | 2,055 | |||
Provision for loan losses | (46) | 1,450 | |||
Recoveries | 43 | 290 | |||
Charge-offs | 0 | (16) | |||
Allowance for loan losses, Ending balance | 4,711 | 3,779 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 59 | 182 | |||
Allowance collectively evaluated for impairment | 4,652 | 3,597 | |||
Allowance for purchased credit-impaired loans | 0 | 0 | |||
Total allowance for loan losses | 4,714 | 2,055 | 4,711 | 4,714 | 3,779 |
Loans individually evaluated for impairment | 4,116 | 5,092 | |||
Loans collectively evaluated for impairment | 963,370 | 828,377 | |||
Purchased Credit-Impaired | 95 | 101 | 129 | ||
Total loans | 967,581 | 973,616 | 833,598 | ||
Consumer [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 7,972 | 3,866 | |||
Provision for loan losses | 269 | 1,913 | |||
Recoveries | 110 | 112 | |||
Charge-offs | (371) | (377) | |||
Allowance for loan losses, Ending balance | 7,980 | 5,514 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 8 | 11 | |||
Allowance collectively evaluated for impairment | 7,972 | 5,503 | |||
Allowance for purchased credit-impaired loans | 0 | 0 | |||
Total allowance for loan losses | 7,972 | 3,866 | 7,980 | 7,972 | 5,514 |
Loans individually evaluated for impairment | 193 | 208 | |||
Loans collectively evaluated for impairment | 776,948 | 692,708 | |||
Purchased Credit-Impaired | 253 | 68 | |||
Total loans | 777,394 | 692,984 | |||
Unallocated Financing Receivables [Member] | |||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, Beginning balance | 5,191 | 8,718 | |||
Provision for loan losses | 2,344 | (3,507) | |||
Recoveries | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Allowance for loan losses, Ending balance | 7,535 | 5,211 | |||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||
Allowance individually evaluated for impairment | 0 | 0 | |||
Allowance collectively evaluated for impairment | 7,535 | 5,211 | |||
Allowance for purchased credit-impaired loans | 0 | 0 | |||
Total allowance for loan losses | $ 5,191 | $ 8,718 | 7,535 | $ 5,191 | 5,211 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 339,154 | $ 242,659 |
Goodwill, Acquired During Period | 96,495 | |
Goodwill, end of period | 339,154 | 339,154 |
Finite-lived Intangible Assets [Roll Forward] | ||
Goodwill and other intangibles, net, beginning of period | 372,078 | 265,314 |
Additions through acquisitions | 112,863 | |
Amortization | (2,052) | (6,099) |
Goodwill adjustments | (225) | |
Goodwill and other intangibles, net, end of period | 369,801 | 372,078 |
Core Deposit Intangibles [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite lived assets Balance, beginning of period | 32,699 | 22,378 |
Intangible assets, additions through acquisitions | 16,368 | |
Amortization | (2,052) | (6,047) |
Finite lived assets Balance, end of period | 30,647 | 32,699 |
Leasehold Improvements [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite lived assets Balance, beginning of period | 225 | 277 |
Intangible assets, additions through acquisitions | 0 | |
Amortization | 0 | (52) |
Goodwill adjustments | (225) | |
Finite lived assets Balance, end of period | $ 0 | $ 225 |
REAL ESTATE OWNED, NET (REO Rol
REAL ESTATE OWNED, NET (REO Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Real Estate Owned [Roll Forward] | ||
Balance, beginning of the period | $ 2,611 | $ 360 |
Additions from loan foreclosures | 0 | 128 |
Valuation adjustments in the period | 0 | (160) |
Balance, end of the period | $ 2,611 | $ 328 |
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 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Remainder of 2017 | $ 5,905 | ||
2018 | 6,888 | ||
2019 | 5,816 | ||
2020 | 4,651 | ||
2021 | 3,237 | ||
Thereafter | 4,150 | ||
Finite lived assets, net | $ 30,647 | $ 32,699 | $ 22,378 |
REAL ESTATE OWNED, NET REAL EST
REAL ESTATE OWNED, NET REAL ESTATE OWNED, NET (Textual) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Real Estate Owned [Line Items] | ||||
Real Estate Owned | $ 2,611,000 | $ 2,611,000 | $ 328,000 | $ 360,000 |
Mortgage Loans in Process of Foreclosure, Amount | 1,000,000 | $ 1,189,000 | ||
One- to four-family residential [Member] | ||||
Real Estate Owned [Line Items] | ||||
Real Estate Owned | $ 0 |
GOODWILL, OTHER INTANGIBLE AS_5
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||
Servicing Asset at Amortized Cost, Additions, Acquisitions | $ 47 | $ 15 | ||
ERROR in label resolution. | ||||
Morgage Servicing Rights at Amortized Value [Line Items] | ||||
Loans Serviced For Others | 2,390,000 | $ 2,360,000 | ||
Custodial Accounts | 20,800 | $ 11,100 | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||
Balance, net of valuation allowance, beginning of the period | 14,638 | 14,738 | ||
Additions—amounts capitalized | 672 | 821 | ||
Amortization | [1] | (940) | (957) | |
Balance, net of valuation allowance, end of the period | [2] | 14,417 | $ 14,617 | |
Valuation allowance, end of period | $ 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 March 31, 2019 and 2018. |
DEPOSITS (Deposit Liabilities)
DEPOSITS (Deposit Liabilities) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Deposits: | |||
Non-interest-bearing accounts | $ 3,676,984,000 | $ 3,657,817,000 | |
Interest-bearing checking | 1,174,169,000 | 1,191,016,000 | |
Regular savings accounts | 1,865,852,000 | 1,842,581,000 | |
Money market accounts | 1,495,948,000 | 1,465,369,000 | |
Total interest-bearing transaction and saving accounts | 4,535,969,000 | 4,498,966,000 | |
Certificates of deposit less than or equal to $250,000 | 987,992,000 | 1,143,303,000 | |
Certificates of deposit greater than $250,000 | 175,284,000 | 176,962,000 | |
Total certificates of deposit | [1] | 1,163,276,000 | 1,320,265,000 |
Total deposits | 9,376,229,000 | 9,477,048,000 | |
Included in total deposits: | |||
Public fund transaction and savings accounts | 210,155,000 | 217,401,000 | |
Public fund interest-bearing certificates | 29,572,000 | 30,089,000 | |
Total public deposits | 239,727,000 | 247,490,000 | |
Total brokered deposits | 239,444,000 | 377,347,000 | |
CD acquisition premium | $ 473,000 | $ 563,000 | |
[1] | Certificates of deposit include $473,000 and $563,000 of acquisition premiums at March 31, 2019 and December 31, 2018, respectively. |
DEPOSITS DEPOSITS (Maturities a
DEPOSITS DEPOSITS (Maturities and Weighted Average Interest Rates of Certificates of Deposit) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Maturities of Time Deposits [Abstract] | |||
Maturing in one year or less | $ 868,391 | ||
Maturing after one year through two years | 181,460 | ||
Maturing after two years through three years | 87,538 | ||
Maturing after three years through four years | 12,880 | ||
Maturing after four years through five years | 10,633 | ||
Maturing after five years | 2,374 | ||
Total certificates of deposit | [1] | $ 1,163,276 | $ 1,320,265 |
Weighted Average Rate [Abstract] | |||
Maturing in one year or less | 1.16% | ||
Maturing after one year through two years | 1.31% | ||
Maturing after two years through three years | 1.76% | ||
Maturing after three years through four years | 1.34% | ||
Maturing after four years through five years | 2.01% | ||
Maturing after five years | 1.06% | ||
Total certificates of deposit | 1.24% | ||
[1] | Certificates of deposit include $473,000 and $563,000 of acquisition premiums at March 31, 2019 and December 31, 2018, respectively. |
DEPOSITS DEPOSITS (Textual) (De
DEPOSITS DEPOSITS (Textual) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 178.8 | $ 180.5 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value By Balance Sheet Location) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Securities—trading | $ 25,838,000 | $ 25,896,000 |
Securities—available-for-sale | 1,603,804,000 | 1,636,223,000 |
Securities—held-to-maturity | 220,112,000 | 232,537,000 |
Liabilities: | ||
FHLB advances at fair value | 418,000,000 | 540,189,000 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 261,538,000 | 272,196,000 |
Securities—trading | 25,838,000 | 25,896,000 |
Securities—available-for-sale | 1,603,804,000 | 1,636,223,000 |
Loans receivable held for sale | 45,865,000 | 171,031,000 |
Loans receivable | 8,692,657,000 | 8,684,595,000 |
FHLB stock | 27,063,000 | 31,955,000 |
Bank-owned life insurance | 178,202,000 | 177,467,000 |
Mortgage servicing rights | 14,417,000 | 14,638,000 |
Equity Securities, FV-NI | 422,000 | |
Liabilities: | ||
Demand, interest checking and money market accounts | 6,347,100,000 | 6,314,202,000 |
Regular savings | 1,865,852,000 | 1,842,581,000 |
Certificates of deposit | 1,163,276,000 | 1,320,265,000 |
FHLB advances at fair value | 418,000,000 | 540,189,000 |
Other borrowings | 121,719,000 | 118,995,000 |
Junior subordinated debentures at fair value | 113,917,000 | 114,091,000 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 261,538,000 | 272,196,000 |
Securities—trading | 25,838,000 | 25,896,000 |
Securities—available-for-sale | 1,603,804,000 | 1,636,223,000 |
Loans receivable held for sale | 46,038,000 | 171,157,000 |
Loans receivable | 8,685,672,000 | 8,629,450,000 |
FHLB stock | 27,063,000 | 31,955,000 |
Bank-owned life insurance | 178,202,000 | 177,467,000 |
Mortgage servicing rights | 23,766,000 | 25,813,000 |
Equity Securities, FV-NI | 422,000 | |
Liabilities: | ||
Demand, interest checking and money market accounts | 6,347,100,000 | 6,314,202,000 |
Regular savings | 1,865,852,000 | 1,842,581,000 |
Certificates of deposit | 1,152,443,000 | 1,298,238,000 |
FHLB advances at fair value | 418,000,000 | 540,189,000 |
Other borrowings | 121,719,000 | 118,995,000 |
Junior subordinated debentures at fair value | 113,917,000 | 114,091,000 |
Interest rate swaps [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 6,772,000 | 3,138,000 |
Liabilities: | ||
Derivatives: | 5,536,000 | 3,138,000 |
Interest rate swaps [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 6,772,000 | 3,138,000 |
Liabilities: | ||
Derivatives: | 5,536,000 | 3,138,000 |
Interest Rate Forward Sales Commitments [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 548,000 | 471,000 |
Liabilities: | ||
Derivatives: | 674,000 | 1,654,000 |
Interest Rate Forward Sales Commitments [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 548,000 | 471,000 |
Liabilities: | ||
Derivatives: | 674,000 | 1,654,000 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | ||
Assets: | ||
Securities—held-to-maturity | 215,792,000 | 230,984,000 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | ||
Assets: | ||
Securities—held-to-maturity | 216,911,000 | 229,301,000 |
Fair Value, Inputs, Level 3 [Member] | Carrying Value | ||
Assets: | ||
Securities—held-to-maturity | 3,201,000 | 3,236,000 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value | ||
Assets: | ||
Securities—held-to-maturity | $ 3,201,000 | $ 3,236,000 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | $ 25,838 | $ 25,896 |
Securities—available-for-sale | 1,603,804 | 1,636,223 |
Advances from FHLB | 418,000 | 540,189 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 25,838 | 25,896 |
Securities—available-for-sale | 1,603,804 | 1,636,223 |
Total assets | 1,674,794 | 1,830,847 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 113,917 | 114,091 |
Total liabilities | 120,127 | 118,883 |
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 | 548 | 3,138 |
Derivative liabilities | 674 | 3,138 |
Recurring [Member] | Interest rate swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,772 | 471 |
Derivative liabilities | 5,536 | 1,654 |
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 | 138,315 | 149,112 |
Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 120,055 | 117,822 |
Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 4,044 | 3,495 |
Recurring [Member] | TPS and TRUP CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 25,838 | 25,896 |
Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 1,323,577 | 1,343,861 |
Recurring [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—available-for-sale | 17,813 | 21,933 |
Recurring [Member] | Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Fair Value Disclosure | 37,410 | 164,767 |
Recurring [Member] | Securities (Assets) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 422 | |
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—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] | 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 | 0 | 0 |
Securities—available-for-sale | 1,603,804 | 1,636,223 |
Total assets | 1,648,956 | 1,804,951 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 0 | 0 |
Total liabilities | 6,210 | 4,792 |
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 | 548 | 3,138 |
Derivative liabilities | 674 | 3,138 |
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 | 6,772 | 471 |
Derivative liabilities | 5,536 | 1,654 |
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 | 138,315 | 149,112 |
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—available-for-sale | 120,055 | 117,822 |
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 | 4,044 | 3,495 |
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 | 1,323,577 | 1,343,861 |
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 | 17,813 | 21,933 |
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 | 37,410 | 164,767 |
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 | 422 | |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities—trading | 25,838 | 25,896 |
Securities—available-for-sale | 0 | 0 |
Total assets | 25,838 | 25,896 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 113,917 | 114,091 |
Total liabilities | 113,917 | 114,091 |
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—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 | 25,838 | 25,896 |
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] | 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 | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
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% | |
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 | 6.60% | 6.81% |
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 | 0.085 | |
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 | .692 | .692 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Junior Subordinated Debt [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 114,091 | $ 98,707 |
Liabilities (gains) losses | (174) | 13,809 |
Ending balance | 113,917 | 112,516 |
TPS Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 25,896 | 22,058 |
Assets gains (losses), including OTTI | (58) | 3,416 |
Ending balance | $ 25,838 | $ 25,474 |
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 | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ (450) | $ (2,915) | |
REO | 2,611 | 2,611 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
REO | 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 | |
REO | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | (450) | (2,915) | |
REO | 2,611 | $ 2,611 | |
Gains (losses) resulting from nonrecurring fair value adjustments | (300) | $ (160) | |
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 | (300) | 0 | |
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 | $ 0 | $ (160) |
INCOME TAXES AND DEFERRED TAX_3
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax credit investments | $ 21,764 | $ 17,360 | |
Unfunded commitments—tax credit investments | 15,945 | $ 12,726 | |
Tax credits and other tax benefits recognized | 494 | $ 364 | |
Tax credit amortization expense included in provision for income taxes | $ 405 | $ 288 |
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 | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 33,346 | $ 37,527 | $ 37,773 | $ 32,424 | $ 28,790 |
Basic weighted average shares outstanding | 35,050,376 | 32,397,568 | |||
Plus unvested restricted stock | 121,680 | 118,888 | |||
Diluted weighted shares outstanding | 35,172,056 | 32,516,456 | |||
Earnings per common share | |||||
Basic | $ 0.95 | $ 0.89 | |||
Diluted | $ 0.95 | $ 0.89 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 50 Months Ended | 56 Months Ended | 80 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | |
Restricted Stock Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Expense | $ 1.2 | $ 1.3 | |||
Compensation Cost Not yet Recognized | $ 17.7 | ||||
Compensation Cost Not yet Recognized, Period for Recognition | 34 months | ||||
2012 Restricted Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Shares Authorized | 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 | 261,966 | ||||
Restricted stock grants, shares non-vested | 7,897 | ||||
2014 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Shares Authorized | 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 | 314,521 | ||||
Restricted stock grants, shares vested | 196,365 | ||||
2014 Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted | 378,934 | ||||
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 | ||||
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) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Reserve for Unfunded Loan Commitments | $ 2,600,000 | ||
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 | $ 2,843,134,000 | 2,837,981,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 15,861,000 | 17,784,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 50,692,000 | 32,145,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 24,074,000 | 24,091,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 55,667,000 | 31,728,000 | |
ERROR in label resolution. | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contract or Notional Amount | 39,871,000 | 18,328,000 | |
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 | 68,803,000 | $ 144,250,000 | |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 7,444 | $ 5,038 |
Liability Derivatives, Fair Value | 7,444 | 5,038 |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 7,444 | 5,038 |
Liability Derivatives, Fair Value | 7,444 | 5,038 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 3,873 | 3,973 |
Liability Derivatives, Notional/Contract Amount | 3,873 | 3,973 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 269 | 270 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 269 | $ 270 |
DERIVATIVES AND HEDGING (Deri_2
DERIVATIVES AND HEDGING (Derivatives Not Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 7,444 | $ 5,038 |
Liability Derivatives, Fair Value | 7,444 | 5,038 |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 7,444 | 5,038 |
Liability Derivatives, Fair Value | 7,444 | 5,038 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 356,129 | 310,931 |
Liability Derivatives, Notional/Contract Amount | 396,794 | 434,387 |
Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 7,051 | 3,339 |
Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 5,941 | 4,522 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 290,064 | 272,374 |
Liability Derivatives, Notional/Contract Amount | 290,064 | 272,374 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 6,503 | 2,868 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 315 | 282 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 5,267 | 2,868 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 26,194 | 20,229 |
Liability Derivatives, Notional/Contract Amount | 37,927 | 17,763 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 280 | 273 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 222 | 187 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 39,871 | 18,328 |
Liability Derivatives, Notional/Contract Amount | 68,803 | 144,250 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 268 | 198 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 452 | $ 1,467 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income, net | $ 157 | $ 57 |
Mortgage loan commitments [Member] | Mortgage banking operations [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income, net | 7 | 68 |
Forward sales contracts [Member] | Mortgage banking operations [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income, net | $ 150 | $ (11) |
DERIVATIVES AND HEDGING (Narrat
DERIVATIVES AND HEDGING (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative net liability position | $ 6.2 | $ 1.3 |
Collateral posted | $ 15.6 | $ 13.6 |
DERIVATIVES AND HEDGING (Deri_3
DERIVATIVES AND HEDGING (Derivative Offsetting) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | $ 7,444 | $ 5,038 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | (672) | (1,900) |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 6,772 | 3,138 |
Derivative Assets, Netting Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Assets, Fair Value of Financial Collateral in the Statement of Financial Condiation | 0 | 0 |
Derivative Assets, Net Amount | 6,772 | 3,138 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 7,444 | 5,038 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | (1,908) | (1,900) |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 5,536 | 3,138 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (4,917) | (1,320) |
Derivative Liabilities, Net Amount | 619 | 1,818 |
Interest rate swaps [Member] | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | 7,444 | 5,038 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | (672) | (1,900) |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 6,772 | 3,138 |
Derivative Assets, Netting Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Assets, Fair Value of Financial Collateral in the Statement of Financial Condiation | 0 | 0 |
Derivative Assets, Net Amount | 6,772 | 3,138 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 7,444 | 5,038 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | (1,908) | (1,900) |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 5,536 | 3,138 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (4,917) | (1,320) |
Derivative Liabilities, Net Amount | $ 619 | $ 1,818 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Debit And Credit Card Interchange Fees | $ 6,573 | $ 7,320 |
Debit and Credit Card Expense | (2,449) | (1,970) |
Merchant Services Expenses | (2,319) | (1,804) |
Other Service Charges | 3,371 | 1,169 |
Total Deposit Fees and Other Service Charges | 12,618 | 11,296 |
Deposit Account [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Mortgage banking operations | 4,586 | 4,320 |
Credit Card, Merchant Discount [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Mortgage banking operations | $ 2,856 | $ 2,261 |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)office | |
Leases [Abstract] | |
Number of buildings and offices under operating leases | office | 110 |
Operating right-of-use lease assets | $ 55,163 |
Operating lease liabilities | $ 58,083 |
Weighted-average remaining lease term: Operating leases | 5 years 9 months 18 days |
Weighted-average discount rate: Operating leases | 4.00% |
Operating lease cost | $ 3,975 |
Short-term lease costs | 121 |
Variable lease cost | 561 |
Less sublease income | (237) |
Total lease cost | 4,420 |
Operating cash flows paid for operating lease amounts | 3,900 |
Right-of-use assets in exchange for operating lease liabilities | 61,000 |
Operating Lease Liabilities, Payments Due [Abstract] | |
Remainder of 2019 | 11,003 |
2020 | 13,721 |
2021 | 12,019 |
2022 | 8,542 |
2023 | 5,567 |
Thereafter | 15,023 |
Total minimum lease payments | 65,875 |
Less: amount of lease payments representing interest | (7,792) |
Operating lease liabilities | 58,083 |
Undiscounted lease payments under an operating lease that had not yet commenced | $ 713 |
Lease not yet commenced, lease term | 10 years |