Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Document and Entity Information [Abstract] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | BANR | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | BANNER CORPORATION | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1691604 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-26584 | |
Amendment Flag | false | |
Entity Central Index Key | 0000946673 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 35,155,639 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Address, Address Line One | 10 South First Avenue | |
Entity Address, City or Town | Walla Walla | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 99362 | |
City Area Code | 509 | |
Local Phone Number | 527-3636 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and due from banks | $ 289,144 | $ 234,359 | |
Interest bearing deposits | 416,394 | 73,376 | |
Total cash and cash equivalents | 705,538 | 307,735 | |
Securities—trading | 23,276 | 25,636 | |
Securities—available-for-sale, amortized cost $1,690,069 and $1,529,946, respectively | 1,758,384 | 1,551,557 | |
Impact of adopting ASC 326 | (102) | 0 | |
Securities—held-to-maturity, net of allowance for credit losses of $102 and none, respectively, fair value $450,806 and $237,805, respectively | 429,033 | 236,094 | |
Total securities | 2,210,693 | 1,813,287 | |
Equity securities | 450,255 | 0 | |
Federal Home Loan Bank (FHLB) stock | 16,363 | 28,342 | |
Loans held for sale (includes $153.0 million and $199.4 million, at fair value, respectively) | 185,938 | 210,447 | |
Loans receivable | 10,163,917 | 9,305,357 | |
Allowance for credit losses - loans | 167,965 | 100,559 | |
Net loans receivable | 9,995,952 | 9,204,798 | |
Accrued interest receivable | 48,321 | 37,962 | |
Real estate owned (REO), held for sale, net | 1,795 | 814 | |
Property and equipment, net | 171,576 | 178,008 | |
Goodwill | 373,121 | 373,121 | |
Other intangibles, net | 23,291 | 29,158 | |
Bank-owned life insurance (BOLI) | 191,755 | 192,088 | |
Deferred tax assets, net | 64,367 | 59,639 | |
Other assets | 203,110 | 168,632 | |
Total assets | 14,642,075 | 12,604,031 | |
Deposits: | |||
Non-interest-bearing | 5,412,570 | 3,945,000 | |
Interest-bearing transaction and savings accounts | 5,887,419 | 4,983,238 | |
Interest-bearing certificates | [1] | 915,352 | 1,120,403 |
Total deposits | 12,215,341 | 10,048,641 | |
Advances from FHLB | 150,000 | 450,000 | |
Other borrowings | 176,983 | 118,474 | |
Subordinated notes, net | 98,114 | 0 | |
Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) | 109,821 | 119,304 | |
Accrued expenses and other liabilities | 200,038 | 227,889 | |
Deferred compensation | 45,249 | 45,689 | |
Total liabilities | 12,995,546 | 11,009,997 | |
COMMITMENTS AND CONTINGENCIES (Note 13) | |||
SHAREHOLDERS’ EQUITY | |||
Preferred stock - $0.01 par value per share, 500,000 shares authorized; no shares outstanding at September 30, 2020 and December 31, 2019 | 0 | 0 | |
Retained earnings | 222,959 | 186,838 | |
Carrying value of shares held in trust for stock-based compensation plans | (7,588) | (7,507) | |
Liability for common stock issued to stock related compensation plans | 7,588 | 7,507 | |
Accumulated other comprehensive income | 75,958 | 33,256 | |
Total shareholders’ equity | 1,646,529 | 1,594,034 | |
Total liabilities and shareholders’ equity | 14,642,075 | 12,604,031 | |
Voting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | 1,347,612 | 1,373,198 | |
Nonvoting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | $ 0 | $ 742 | |
[1] | Certificates of deposit include $101,000 and $269,000 of acquisition premiums at September 30, 2020 and December 31, 2019, respectively. |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Securities—trading, amortized cost basis | $ 27,203 | $ 27,203 |
Securities—available-for-sale, amortized cost basis | 1,690,069 | 1,529,946 |
Impact of adopting ASC 326 | (102) | 0 |
Securities—held-to-maturity, fair value | $ 450,806 | $ 237,805 |
SHAREHOLDERS’ EQUITY | ||
Preferred Stock, Par or Stated Value Per Share | $ 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, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 35,158,568 | 35,712,384 |
Common Stock, Shares, Outstanding | 35,158,568 | 35,712,384 |
Nonvoting Common Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares, Issued | 0 | 39,192 |
Common Stock, Shares, Outstanding | 0 | 39,192 |
Loans [Member] | Recurring [Member] | ||
ASSETS | ||
Loans Held-for-sale, Fair Value Disclosure | $ 152,996 | $ 199,397 |
Loans [Member] | Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
ASSETS | ||
Loans Held-for-sale, Fair Value Disclosure | $ 152,996 | $ 199,397 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST INCOME: | ||||
Loans receivable | $ 116,716 | $ 118,096 | $ 350,815 | $ 350,558 |
Mortgage-backed securities | 7,234 | 9,415 | 24,354 | 29,716 |
Securities and cash equivalents | 5,631 | 3,925 | 14,824 | 11,996 |
Total interest income | 129,581 | 131,436 | 389,993 | 392,270 |
INTEREST EXPENSE: | ||||
Deposits | 5,179 | 10,014 | 20,623 | 27,680 |
FHLB advances | 988 | 3,107 | 4,036 | 9,953 |
Other borrowings | 128 | 82 | 482 | 209 |
Junior subordinated debentures and subordinated notes | 2,260 | 1,612 | 4,988 | 5,008 |
Total interest expense | 8,555 | 14,815 | 30,129 | 42,850 |
Net interest income | 121,026 | 116,621 | 359,864 | 349,420 |
PROVISION FOR CREDIT LOSSES | 13,641 | 2,000 | 64,917 | 6,000 |
Net interest income after provision for credit losses | 107,385 | 114,621 | 294,947 | 343,420 |
NON-INTEREST INCOME: | ||||
Deposit fees and other service charges | 8,742 | 10,331 | 26,091 | 36,995 |
Mortgage banking operations | 16,562 | 6,616 | 40,891 | 15,967 |
Bank-owned life insurance (BOLI) | 1,286 | 1,076 | 4,653 | 3,475 |
Miscellaneous | 951 | 2,914 | 5,017 | 5,431 |
Other operating income | 27,541 | 20,937 | 76,652 | 61,868 |
Net gain (loss) on sale of securities | 644 | (2) | 815 | (29) |
Net change in valuation of financial instruments carried at fair value | 37 | (69) | (2,360) | (172) |
Total non-interest income | 28,222 | 20,866 | 75,107 | 61,667 |
NON-INTEREST EXPENSE: | ||||
Salary and employee benefits | 61,171 | 59,090 | 184,494 | 169,359 |
Less capitalized loan origination costs | (8,517) | (7,889) | (25,433) | (20,137) |
Occupancy and equipment | 13,022 | 12,566 | 39,114 | 39,013 |
Information/computer data services | 6,090 | 5,657 | 17,984 | 16,256 |
Payment and card processing expenses | 4,044 | 4,330 | 12,135 | 12,355 |
Professional and legal expenses | 2,368 | 2,704 | 6,450 | 7,474 |
Advertising and marketing | 1,105 | 2,221 | 3,584 | 5,815 |
Deposit insurance expense | 1,628 | (1,604) | 4,968 | 1,232 |
State/municipal business and use taxes | 1,196 | 1,011 | 3,284 | 2,963 |
REO operations, net | (11) | 126 | 93 | 263 |
Amortization of core deposit intangibles | 1,864 | 1,985 | 5,867 | 6,090 |
Provision for credit losses - unfunded loan commitments | 1,539 | 0 | 2,356 | 0 |
Miscellaneous | 5,285 | 6,435 | 16,841 | 20,230 |
Total non-interest expense | 91,567 | 87,308 | 276,389 | 264,038 |
Noninterest Operating Expense, Before COVID-19 and Acquisition Related Costs | 90,784 | 86,632 | 271,737 | 260,913 |
COVID-19 Expenses | 778 | 0 | 3,169 | 0 |
Acquisition-related costs | 5 | 676 | 1,483 | 3,125 |
Income before provision for income taxes | 44,040 | 48,179 | 93,665 | 141,049 |
PROVISION FOR INCOME TAXES | 7,492 | 8,602 | 16,694 | 28,426 |
NET INCOME | $ 36,548 | $ 39,577 | $ 76,971 | $ 112,623 |
Earnings per common share: | ||||
Basic | $ 1.04 | $ 1.15 | $ 2.18 | $ 3.24 |
Diluted | 1.03 | 1.15 | 2.17 | 3.23 |
Cumulative dividends declared per common share | $ 0.41 | $ 0.41 | $ 0.82 | $ 1.23 |
Weighted average number of common shares outstanding, Basic | 35,193,109 | 34,407,462 | 35,285,567 | 34,760,607 |
Weighted average number of common shares outstanding, Diluted | 35,316,679 | 34,497,994 | 35,524,771 | 34,850,006 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 36,548 | $ 39,577 | $ 76,971 | $ 112,623 |
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAXES: | ||||
Unrealized holding (loss) gain on available-for-sale securities arising during the period | (3,090) | 5,861 | 47,000 | 43,268 |
Income tax expense related to available-for-sale securities unrealized holding gain | (742) | 1,408 | 11,280 | 10,385 |
Reclassification for net (gain) loss on available-for-sale securities realized in earnings | (125) | 2 | (296) | 28 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 30 | 0 | 71 | (7) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (208) | 204 | 9,483 | 674 |
Other Comprehensive Income (Loss), Change in Fair Value of Junior Subordinated Debentures, Tax | 50 | (49) | (2,276) | (162) |
Other comprehensive (loss) income | (2,601) | 4,610 | 42,702 | 33,416 |
COMPREHENSIVE INCOME | $ 33,947 | $ 44,187 | $ 119,673 | $ 146,039 |
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 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning of the period at Dec. 31, 2018 | $ 1,478,595 | $ 1,337,436 | $ 134,055 | $ 7,104 | |
Balance, beginning 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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 0.41 | ||||
Balance, beginning of the period at Dec. 31, 2018 | $ 1,478,595 | 1,337,436 | 134,055 | 7,104 | |
Balance, beginning of the period (in shares) at Dec. 31, 2018 | 35,182,772 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 112,623 | ||||
Balance, end of the period at Sep. 30, 2019 | $ 1,530,935 | 1,286,711 | 203,704 | 40,520 | |
Balance, end of the period (in shares) at Sep. 30, 2019 | 34,173,357 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 1.23 | ||||
Balance, beginning of the period at Mar. 31, 2019 | $ 1,511,191 | 1,338,386 | 152,911 | 19,894 | |
Balance, beginning of the period (in shares) at Mar. 31, 2019 | 35,152,746 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 39,700 | 39,700 | |||
Other comprehensive income, net of income tax | 16,016 | 16,016 | |||
Repurchase of common stock | (32,073) | (32,073) | |||
Repurchase of common stock (in shares) | (600,000) | ||||
Accrual of dividends on common stock | (14,354) | (14,354) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 575 | 575 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | 20,897 | ||||
Balance, end of the period at Jun. 30, 2019 | $ 1,521,055 | 1,306,888 | 178,257 | 35,910 | |
Balance, end of the period (in shares) at Jun. 30, 2019 | 34,573,643 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 0.41 | ||||
Net income | $ 39,577 | 39,577 | |||
Other comprehensive income, net of income tax | 4,610 | 4,610 | |||
Repurchase of common stock | (21,849) | (21,849) | |||
Repurchase of common stock (in shares) | (400,000) | ||||
Accrual of dividends on common stock | (14,130) | (14,130) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 1,672 | 1,672 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (286) | ||||
Balance, end of the period at Sep. 30, 2019 | $ 1,530,935 | 1,286,711 | 203,704 | 40,520 | |
Balance, end of the period (in shares) at Sep. 30, 2019 | 34,173,357 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 0.41 | ||||
Net income | $ 33,655 | 33,655 | |||
Other comprehensive income, net of income tax | (7,264) | (7,264) | |||
Accrual of dividends on common stock | (50,521) | (50,521) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 2,029 | 2,029 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (132) | ||||
Business acquisition | 85,200 | 85,200 | |||
Business acquisition (in shares) | 1,578,351 | ||||
Balance, end of the period at Dec. 31, 2019 | $ 1,594,034 | 1,373,940 | 186,838 | 33,256 | |
Balance, end of the period (in shares) at Dec. 31, 2019 | 35,751,576 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 1.41 | ||||
New credit standard (Topic 326) - impact in year of adoption | $ (11,215) | (11,215) | |||
Net income | 16,882 | 16,882 | |||
Other comprehensive income, net of income tax | 46,823 | 46,823 | |||
Repurchase of common stock | (31,775) | (31,775) | |||
Repurchase of common stock (in shares) | (624,780) | ||||
Accrual of dividends on common stock | (14,583) | (14,583) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 1,534 | 1,534 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | (24,337) | ||||
Balance, end of the period at Mar. 31, 2020 | $ 1,601,700 | 1,343,699 | 177,922 | 80,079 | |
Balance, end of the period (in shares) at Mar. 31, 2020 | 35,102,459 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 0.41 | ||||
Balance, beginning of the period at Dec. 31, 2019 | $ 1,594,034 | 1,373,940 | 186,838 | 33,256 | |
Balance, beginning of the period (in shares) at Dec. 31, 2019 | 35,751,576 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 76,971 | ||||
Balance, end of the period at Sep. 30, 2020 | $ 1,646,529 | 1,347,612 | 222,959 | 75,958 | |
Balance, end of the period (in shares) at Sep. 30, 2020 | 35,158,568 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 0.82 | ||||
Balance, beginning of the period at Mar. 31, 2020 | $ 1,601,700 | 1,343,699 | 177,922 | 80,079 | |
Balance, beginning of the period (in shares) at Mar. 31, 2020 | 35,102,459 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 23,541 | 23,541 | |||
Other comprehensive income, net of income tax | (1,520) | (1,520) | |||
Accrual of dividends on common stock | (15) | (15) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 1,397 | 1,397 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | 55,440 | ||||
Balance, end of the period at Jun. 30, 2020 | 1,625,103 | 1,345,096 | 201,448 | 78,559 | |
Balance, end of the period (in shares) at Jun. 30, 2020 | 35,157,899 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 36,548 | 36,548 | |||
Other comprehensive income, net of income tax | (2,601) | (2,601) | |||
Accrual of dividends on common stock | (15,037) | (15,037) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 2,516 | 2,516 | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | 669 | ||||
Balance, end of the period at Sep. 30, 2020 | $ 1,646,529 | $ 1,347,612 | $ 222,959 | $ 75,958 | |
Balance, end of the period (in shares) at Sep. 30, 2020 | 35,158,568 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative dividends declared per common share | $ 0.41 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||
Cumulative dividends declared per common share | $ 0.41 | $ 0.41 | $ 1.41 | $ 0.41 | $ 0.41 | $ 0.41 | $ 0.82 | $ 1.23 | ||
NET INCOME | $ 36,548 | $ 23,541 | $ 16,882 | $ 33,655 | $ 39,577 | $ 39,700 | $ 33,346 | $ 76,971 | $ 112,623 | |
Other comprehensive income, net of income tax | (2,601) | (1,520) | 46,823 | (7,264) | 4,610 | 16,016 | 12,790 | |||
Accrual of dividends on common stock | (15,037) | (15) | (14,583) | (50,521) | (14,130) | (14,354) | (14,490) | |||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | 2,516 | 1,397 | 1,534 | 2,029 | 1,672 | 575 | 950 | |||
Total shareholders’ equity | $ 1,646,529 | 1,625,103 | $ 1,601,700 | $ 1,594,034 | $ 1,530,935 | $ 1,521,055 | $ 1,511,191 | $ 1,646,529 | $ 1,530,935 | $ 1,478,595 |
Cumulative dividends declared per common share | $ 0.41 | $ 0.41 | $ 1.41 | $ 0.41 | $ 0.41 | $ 0.41 | $ 0.82 | $ 1.23 | ||
Retained Earnings [Member] | ||||||||||
NET INCOME | $ 36,548 | 23,541 | $ 16,882 | $ 33,655 | $ 39,577 | $ 39,700 | $ 33,346 | |||
Accrual of dividends on common stock | (15,037) | (15) | (14,583) | (50,521) | (14,130) | (14,354) | (14,490) | |||
Total shareholders’ equity | 222,959 | 201,448 | 177,922 | 186,838 | 203,704 | 178,257 | 152,911 | $ 222,959 | $ 203,704 | 134,055 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||
Other comprehensive income, net of income tax | (2,601) | (1,520) | 46,823 | (7,264) | 4,610 | 16,016 | 12,790 | |||
Total shareholders’ equity | $ 75,958 | $ 78,559 | $ 80,079 | $ 33,256 | $ 40,520 | $ 35,910 | $ 19,894 | $ 75,958 | $ 40,520 | $ 7,104 |
Common Stock [Member] | ||||||||||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered (in shares) | 669 | 55,440 | (24,337) | (132) | (286) | 20,897 | (30,026) | |||
Shares, Outstanding | 35,158,568 | 35,157,899 | 35,102,459 | 35,751,576 | 34,173,357 | 34,573,643 | 35,152,746 | 35,158,568 | 34,173,357 | 35,182,772 |
Common Stock and Paid in Capital [Member] | ||||||||||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered | $ 2,516 | $ 1,397 | $ 1,534 | $ 2,029 | $ 1,672 | $ 575 | $ 950 | |||
Total shareholders’ equity | $ 1,347,612 | $ 1,345,096 | $ 1,343,699 | $ 1,373,940 | $ 1,286,711 | $ 1,306,888 | $ 1,338,386 | $ 1,347,612 | $ 1,286,711 | $ 1,337,436 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 9 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
OPERATING ACTIVITIES: | ||
Net income | $ 76,971,000 | $ 112,623,000 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation | 13,677,000 | 12,934,000 |
Deferred income and expense, net of amortization | (8,503,000) | (350,000) |
Amortization of core deposit intangibles | 5,867,000 | 6,090,000 |
(Gain) loss on sale of securities | (815,000) | 29,000 |
Net change in valuation of financial instruments carried at fair value | 2,360,000 | 172,000 |
Dividend Income, Equity Securities, Operating | (255,000) | 0 |
(Increase) decrease in deferred taxes, net | 1,279,000 | (16,136,000) |
Increase in current taxes payable | 1,426,000 | 3,410,000 |
Stock-based compensation | 6,893,000 | 5,101,000 |
Net change in cash surrender value of BOLI | (3,721,000) | (3,086,000) |
Gain on sale of loans, including capitalized servicing rights | (34,951,000) | (11,834,000) |
Loss on disposal of real estate held for sale and property and equipment, net | 496,000 | 1,274,000 |
Provision for credit losses | 64,917,000 | 6,000,000 |
Provision for credit losses - unfunded loan commitments | 2,356,000 | 0 |
provision for losses, real estate held for sale | 18,000 | 0 |
Origination of loans held for sale | (1,032,523,000) | (756,283,000) |
Proceeds from sales of loans held for sale | 1,091,984,000 | 694,259,000 |
Net change in: | ||
Other assets | (51,796,000) | (26,381,000) |
Other liabilities | 5,040,000 | 8,398,000 |
Net cash provided from operating activities | 138,162,000 | 68,492,000 |
INVESTING ACTIVITIES: | ||
Purchases of securities—available-for-sale | (608,192,000) | (118,823,000) |
Principal repayments and maturities of securities—available-for-sale | 311,781,000 | 209,396,000 |
Proceeds from sales of securities—available-for-sale | 128,939,000 | 43,114,000 |
Purchases of securities—held-to-maturity | (215,780,000) | (42,350,000) |
Proceeds form the sale of equity securities | 610,519,000 | 0 |
Principal repayments and maturities of securities—held-to-maturity | 20,691,000 | 44,971,000 |
Purchases of equity securities | (1,060,000,000) | 0 |
Loan originations, net of principal repayments | (855,936,000) | (158,754,000) |
Purchases of loans and participating interest in loans | (18,000) | (8,608,000) |
Proceeds from sales of other loans | 8,454,000 | 16,279,000 |
Gain (Loss) on Disposition of Assets | 0 | (10,382,000) |
Purchases of property and equipment | (9,936,000) | (16,738,000) |
Proceeds from sale of real estate held for sale and sale of other property | 2,869,000 | 6,809,000 |
Proceeds from FHLB stock repurchase program | 52,164,000 | 130,073,000 |
Purchase of FHLB stock | (40,185,000) | (123,740,000) |
Other | 3,913,000 | 1,461,000 |
Net cash used in investing activities | (1,650,717,000) | (27,292,000) |
FINANCING ACTIVITIES: | ||
Increase in deposits, net | 2,166,700,000 | 266,129,000 |
Proceeds from FHLBank Advance, Investing Activities | 0 | 300,000,000 |
Repayments of long-term Federal Home Loan Bank Advances | 0 | (100,189,000) |
Repayment of overnight and short term FHLB advances, net | (300,000,000) | (358,000,000) |
Increase in other borrowings, net | 58,508,000 | 1,019,000 |
Proceeds from Issuance of Subordinated Long-term Debt | 98,027,000 | 0 |
Cash dividends paid | (79,655,000) | (42,073,000) |
Taxes paid related to net share settlement of equity awards | 1,447,000 | 1,904,000 |
Payments for Repurchase of Common Stock | 31,775,000 | 53,922,000 |
Net cash provided from financing activities | 1,910,358,000 | 11,060,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 397,803,000 | 52,260,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 307,735,000 | 272,196,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 705,538,000 | 324,456,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid in cash | 31,817,000 | 45,348,000 |
Tax refunds received | 27,515,000 | 18,220,000 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Loans, net of discounts, specific loss allowances and unearned income, transferred to real estate owned and other repossessed assets | 1,588,000 | $ 246,000 |
Dividends Payable | $ 1,179,000 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements include the accounts of Banner Corporation (the Company or Banner), a bank holding company incorporated in the State of Washington and its wholly-owned subsidiaries, Banner Bank and Islanders Bank (the Banks). These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2020 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 note disclosures 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 2019 Consolidated Financial Statements and/or schedules to conform to the 2020 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 credit losses, (iii) the valuation of financial assets and liabilities recorded at fair value (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, 2019 filed with the SEC (2019 Form 10-K). There have been no significant changes in our application of these accounting policies during the first nine months of 2020, except for the change related to the adoption of Financial Instruments - Credit Losses (Topic 326) as described in below and Note 2. The information included in this Form 10-Q should be read in conjunction with our 2019 Form 10-K. Interim results are not necessarily indicative of results for a full year or any other interim period. As a result of the adoption of Financial Instruments—Credit Losses (Topic 326) on January 1, 2020, the Company has updated the following significant accounting policies. Securities: Debt securities are classified as held-to-maturity when the Company has the ability and positive intent to hold them to maturity. Debt securities classified as available-for-sale are available for future liquidity requirements and may be sold prior to maturity. Debt securities classified as trading are also available for future liquidity requirements and may be sold prior to maturity. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Debt securities classified as held-to-maturity are carried at cost, net of the allowance for credit losses- securities, adjusted for amortization of premiums to the earliest callable date and accretion of discounts to maturity. Debt securities classified as available-for-sale are measured at fair value. Unrealized holding gains and losses on debt securities classified as available-for-sale are excluded from earnings and are reported net of tax as accumulated other comprehensive income (AOCI), a component of shareholders’ equity, until realized. Debt securities classified as trading are also measured at fair value. Unrealized holding gains and losses on securities classified as trading are included in earnings. (See Note 9 for a more complete discussion of accounting for the fair value of financial instruments.) Realized gains and losses on sale are computed on the specific identification method and are included in earnings on the trade date sold. If debt securities were transferred from held-to-maturity to available-for-sale, unrealized gains or losses from the time of transfer would be accreted or amortized over the remaining life of the debt security based on the amount and timing of future estimated cash flows. The accretion or amortization of the amount recorded in AOCI increases the carrying value of the investment and does not affect earnings. Equity securities are measured at fair value with changes in the fair value recognized through net income. Allowance for Credit Losses - Securities: Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. The Company’s held-to maturity portfolio contains mortgage-backed securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The Company’s held-to-maturity portfolio also contains municipal bonds that are typically rated by major rating agencies as Aa or better. The Company has never incurred a loss on a municipal bond, therefore the expectation of credit losses on these securities is insignificant. The Company uses industry historical credit loss information adjusted for current conditions to establish the allowance for credit losses on the municipal bond portfolio. Less than 2% of the Company’s held-to-maturity portfolio are community development bonds representing pools of one- to four-family loans. The expected credit losses on these bonds is similar to Banner’s one- to four-family residential loan portfolio. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized costs, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. Projected cash flows are discounted by the current effective interest rate. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to AOCI. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the non-collectability of an available-for-sale security is confirmed or when either of the criteria regarding intent of requirement to sell is met. Loans Receivable : The Banks originate residential one- to four-family and multifamily mortgage loans for both portfolio investment and sale in the secondary market. The Banks also originate construction and land development, commercial real estate, commercial business, agricultural and consumer loans for portfolio investment. Loans receivable not designated as held for sale are recorded at amortized cost, net of the allowance for credit losses. Amortized cost is the principal amount outstanding, net of deferred fees, discounts and premiums. Accrued interest on loans is reported in accrued interest receivable on the consolidated statements of financial condition. Premiums, discounts and deferred loan fees are amortized to maturity using the level-yield methodology. Loans Held for Sale . Residential one- to four-family and multifamily mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Residential one- to four-family loans under best effort delivery commitments are carried at the lower of aggregate cost or estimated market value. Residential one- to four-family loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the related economic hedges on the loans. Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. The multifamily held-for-sale loans are carried at fair value in order to match changes in the value of the loans with the value of the related economic hedges on the loans. Fair values for multifamily loans held for sale are calculated based on discounted cash flows using a discount rate that is a combination of market spreads for similar loan types added to selected index rates. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Non-refundable fees and direct loan origination costs related to loans held for sale are recognized as part of the cost basis of the loan. Gains and losses on sales of loans held for sale are determined using the aggregate method and are recorded in the mortgage banking operations component of non-interest income. Loans Acquired in Business Combinations : Loans acquired in business combinations are recorded at their fair value at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-deteriorated or purchased non-credit-deteriorated. Purchased credit-deteriorated (PCD) loans have experienced more than insignificant credit deterioration since origination. For PCD loans, an allowance for credit losses is determined at the acquisition date using the same measurement methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The loan’s fair value grossed up for the allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through a provision for credit losses. For purchased non-credit-deteriorated loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loans. While credit discounts are included in the determination of the fair value for non-credit-deteriorated loans, since these discounts are expected to be accreted over the life of the loans, they cannot be used to offset the allowance for credit losses that must be recorded at the acquisition date. As a result, an allowance for credit losses is determined at the acquisition date using the same methodology as other loans held for investment and is recognized as a provision for credit losses in the statement of operations. Any subsequent deterioration (improvement) in credit quality is recognized by recording (recapturing) a provision for credit losses. Income Recognition on Nonaccrual Loans and Securities : Interest on loans and securities is accrued as earned unless management doubts the collectability of the asset or the unpaid interest. Interest accruals on loans are generally discontinued when loans become 90 days past due for payment of interest or principal and the loans are then placed on nonaccrual status. Loans are reported as past due when installment payments, interest payments, or maturity payments are past due based on contractual terms. All previously accrued but uncollected interest is written off by reversing interest income upon transfer to nonaccrual status. For any future payments collected, interest income is recognized only upon management’s assessment that there is a strong likelihood that the full amount of a loan will be repaid or recovered. A loan may be put on nonaccrual status sooner than this policy would dictate if, in management’s judgment, the interest may be uncollectable. While less common, similar interest reversal and nonaccrual treatment is applied to investment securities if their ultimate collectability becomes questionable. Loans modified due to the COVID-19 pandemic are considered current if they are less than 30 days past due on the contractual payments at the time the loan modification program was put in place and therefore continue to accrue interest unless the interest is being waived. Provision and Allowance for Credit Losses - Loans : The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. The Banks have elected to exclude accrued interest receivable from the amortized cost basis in their estimate of the allowance for credit losses. The provision for credit losses reflects the amount required to maintain the allowance for credit losses at an appropriate level based upon management’s evaluation of the adequacy of collective and individual loss reserves. The Company has established systematic methodologies for the determination of the adequacy of the Company’s allowance for credit losses. The methodologies are set forth in a formal policy and take into consideration the need for a valuation allowance for loans evaluated on a collective (pool) basis which have similar risk characteristics as well as allowances that are tied to individual loans that do not share risk characteristics. The Company increases its allowance for credit losses by charging provisions for credit losses on its consolidated statement of operations. Losses related to specific assets are applied as a reduction of the carrying value of the assets and charged against the allowance for credit loss reserve when management believes the non-collectability of a loan balance is confirmed. Recoveries on previously charged off loans are credited to the allowance for credit losses. Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loan based on evaluating historical credit loss experience and making adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. These factors include, among others, changes in the size and composition of the loan portfolio, differences in underwriting standards, delinquency rates, actual loss experience and current economic conditions. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. In estimating the component of the allowance for credit losses for loans that share common risk characteristics, loans are pooled based on loan type and areas of risk concentration. For loans evaluated collectively, the allowance for credit losses is calculated using life of loan historical losses adjusted for economic forecasts and current conditions. For commercial real estate, multifamily real estate, construction and land, commercial business and agricultural loans with risk rating segmentation, historical credit loss assumptions are estimated using a model that categorizes loan pools based on loan type and risk rating. For one- to four- family residential loans, historical credit loss assumptions are estimated using a model that categorizes loan pools based on loan type and delinquency status. These models calculate an expected life-of-loan loss percentage for each loan category by calculating the probability of default, based on the migration of loans from performing to loss by risk rating or delinquency categories using historical life-of-loan analysis and the severity of loss, based on the aggregate net lifetime losses incurred for each loan pool. For commercial real estate, commercial business, and consumer loans without risk rating segmentation, historical credit loss assumptions are estimated using a model that calculates an expected life-of-loan loss percentage for each loan category by considering the historical cumulative losses based on the aggregate net lifetime losses incurred for each loan pool. The model captures historical loss data back to the first quarter of 2008. For loans evaluated collectively, management uses economic indicators to adjust the historical loss rates so that they better reflect management’s expectations of future conditions over the remaining lives of the loans in the portfolio based on reasonable and supportable forecasts. These economic indicators are selected based on correlation to the Company’s historical credit loss experience and are evaluated for each loan category. The economic indicators evaluated include unemployment, gross domestic product, real estate price indices and growth, yield curve spreads, treasury yields, the corporate yield, the market volatility index, the Dow Jones index, the consumer confidence index, and the prime rate. Management considers various economic scenarios and forecasts when evaluating the economic indicators and probability weights the various scenarios to arrive at the forecast that most reflects management’s expectations of future conditions. The allowance for credit losses is then adjusted for the period in which those forecasts are considered to be reasonable and supportable. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, the adjustments discontinue to be applied so that the model reverts back to the historical loss rates using a straight line reversion method. Management selected an initial reasonable and supportable forecast period of 12 months with a reversion period of 12 months. Both the reasonable and supportable forecast period and the reversion period are periodically reviewed by management. Further, for loans evaluated collectively, management also considers qualitative and environmental factors for each loan category to adjust for differences between the historical periods used to calculate historical loss rates and expected conditions over the remaining lives of the loans in the portfolio. In determining the aggregate adjustment needed management considers the financial condition of the borrowers, the nature and volume of the loans, the remaining terms and the extent of prepayments on the loans, the volume and severity of past due and classified loans as well as the value of the underlying collateral on loans in which the collateral dependent practical expedient has not been used. Management also considers the Company’s lending policies, the quality of the Company’s credit review system, the quality of the Company’s management and lending staff, and the regulatory and economic environments in the areas in which the Company’s lending activities are concentrated. Loans that do not share risk characteristics with other loans in the portfolio that are individually evaluated for impairment are not included in the collective evaluation. Factors involved in determining whether a loan should be individually evaluated include, but are not limited to, the financial condition of the borrower and the value of the underlying collateral. Expected credit losses for loans evaluated individually are measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or when the Banks determine that foreclosure is probable, the expected credit loss is measured based on the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. As a practical expedient, the Banks measure the expected credit loss for a loan using the fair value of the collateral, if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Banks' assessment as of the reporting date. In both cases, if the fair value of the collateral is less than the amortized cost basis of the loan, the Banks will recognize an allowance as the difference between the fair value of the collateral, less costs to sell (if applicable), at the reporting date and the amortized cost basis of the loan. If the fair value of the collateral exceeds the amortized cost basis of the loan, any expected recovery added to the amortized cost basis will be limited to the amount previously charged-off. Subsequent changes in the expected credit losses for loans evaluated individually are included within the provision for credit losses in the same manner in which the expected credit loss initially was recognized or as a reduction in the provision that would otherwise be reported. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Banks. Some of the Banks’ loans are reported as troubled debt restructures (TDRs). Loans are reported as TDRs when the Banks grant a concession(s) 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. The allowance for credit losses on a TDR is determined using the same method as all other loans held for investment, except when the value of the concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method the allowance for credit losses is determined by discounting the expected future cash flows at the original interest rate of the loan. The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined under the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. To qualify as an eligible loan under the CARES Act, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the national emergency by the President or (b) December 31, 2020. Loan Origination and Commitment Fees: Loan origination fees, net of certain specifically defined direct loan origination costs, are deferred and recognized as an adjustment of the loans’ interest yield using the level-yield method over the contractual term of each loan adjusted for actual loan prepayment experience. Net deferred fees or costs related to loans held for sale are recognized as part of the cost basis of the loan. Loan commitment fees are deferred until the expiration of the commitment period unless management believes there is a remote likelihood that the underlying commitment will be exercised, in which case the fees are amortized to fee income using the straight-line method over the commitment period. If a loan commitment is exercised, the deferred commitment fee is accounted for in the same manner as a loan origination fee. Deferred commitment fees associated with expired commitments are recognized as fee income. |
ACCOUNTING STANDARDS RECENTLY I
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED | ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Financial Instruments—Credit Losses (Topic 326) On January 1, 2020, the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology that delays recognition until it is probable a loss has been incurred with an expected loss methodology that is referred to as CECL. 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 previous GAAP with CECL, 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 is 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. The following table illustrates the pre-tax impact of the adoption of this ASU (in thousands): January 1, 2020 As Reported Under Topic 326 January 1, 2020 Pre-Topic 326 Adoption Impact of Topic 326 Adoption Assets Held-to-maturity debt securities U.S. Government and agency obligations $ — $ — $ — Municipal bonds 28 — 28 Corporate bonds 35 — 35 Mortgage-backed or related securities — — — Allowance for credit losses on held-to-maturity debt securities $ 63 $ — $ 63 Loans Commercial real estate $ 27,727 $ 30,591 $ (2,864) Multifamily real estate 2,550 4,754 (2,204) Construction and land 25,509 22,994 2,515 Commercial business 26,380 23,370 3,010 Agricultural business 3,769 4,120 (351) One-to four-family residential 11,261 4,136 7,125 Consumer 11,175 8,202 2,973 Unallocated — 2,392 (2,392) Allowance for credit losses on loans $ 108,371 $ 100,559 $ 7,812 Liabilities Allowance for credit losses on unfunded loan commitments $ 9,738 $ 2,716 $ 7,022 Total $ 14,897 The $14.9 million total increase was recorded net of tax as an $11.2 million reduction to shareholders' equity as of the adoption date. In addition to the increase in the allowance for credit losses upon adoption, the Company expects more variability in its quarterly provision for credit losses going forward due to the CECL model’s sensitivity to changes in the economic forecast and other factors. The Company has updated its accounting policies based on the adoption of this ASU. See Note 1 of the Notes to the Consolidated Financial Statements for additional information. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Acquisition of AltaPacific Bancorp On November 1, 2019, the Company completed the acquisition of 100% of the outstanding common shares of AltaPacific Bancorp (AltaPacific), the holding company for AltaPacific Bank, a California state-chartered commercial bank. AltaPacific was merged into Banner and AltaPacific Bank was merged into Banner Bank. Pursuant to the previously announced terms of the acquisition, AltaPacific shareholders received 0.2712 shares of Banner common stock in exchange for each share of AltaPacific common stock, plus cash in lieu of any fractional shares and to cancel in-the-money AltaPacific stock options. The merged banks operate as Banner Bank. The primary reason for the acquisition was to expand the Company’s presence in California by adding density within our existing geographic footprint. The acquisition provided $425.7 million in assets, $313.4 million in deposits and $332.4 million in loans to Banner. The application of the acquisition method of accounting resulted in recognition of a CDI asset of $4.6 million and goodwill of $34.0 million. The acquired CDI has been determined to have a useful life of approximately ten years and will be amortized on an accelerated basis. Goodwill is not amortized but will be evaluated for impairment on an annual basis or more often if circumstances dictate to determine if the carrying value remains appropriate. Goodwill will not be deductible for income tax purposes as the acquisition is accounted for as a tax-free exchange for tax purposes. The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): AltaPacific November 1, 2019 Consideration to AltaPacific equity holders: Cash paid $ 2,360 Fair value of common shares issued 85,200 Total consideration 87,560 Fair value of assets acquired: Cash and cash equivalents 39,686 Securities 20,348 Federal Home Loan Bank stock 2,005 Loans receivable (contractual amount of $338.2 million) 332,355 Real estate owned held for sale 650 Property and equipment 3,809 Core deposit intangible 4,610 Bank-owned life insurance 11,890 Deferred tax asset 166 Other assets 10,150 Total assets acquired 425,669 Fair value of liabilities assumed: Deposits 313,374 Advances from FHLB 40,226 Junior subordinated debentures 5,814 Deferred compensation 4,508 Other liabilities 8,154 Total liabilities assumed 372,076 Net assets acquired 53,593 Goodwill $ 33,967 Acquired goodwill represents the premium the Company paid over the fair value of the net tangible and intangible assets acquired. 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, 2019, the unpaid principal balance on purchased non-credit-impaired loans was $333.5 million. The fair value of the purchased non-credit-impaired loans was $328.2 million, resulting in a discount of $5.3 million recorded on these loans, which includes $5.8 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 AltaPacific purchased credit-impaired (PCI) loans as of the acquisition date (in thousands): AltaPacific November 1, 2019 Acquired PCI loans: Contractually required principal and interest payments $ 5,881 Nonaccretable difference (1,046) Cash flows expected to be collected 4,835 Accretable yield (683) Fair value of PCI loans $ 4,152 The financial results of the Company include the revenues and expenses produced by the acquired assets and assumed liabilities of AltaPacific since November 1, 2019. Disclosure of the amount of AltaPacific’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 AltaPacific acquisition to the historical financial results was determined to not be significant. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2020 and December 31, 2019 are summarized as follows (in thousands): September 30, 2020 Amortized Cost Fair Trading: Corporate bonds $ 27,203 $ 23,276 $ 27,203 $ 23,276 September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Available-for-Sale: U.S. Government and agency obligations $ 169,740 $ 1,140 $ (967) $ — $ 169,913 Municipal bonds 257,056 15,707 (355) — 272,408 Corporate bonds 53,756 2,300 (85) — 55,971 Mortgage-backed or related securities 1,199,816 51,199 (515) — 1,250,500 Asset-backed securities 9,701 51 (160) — 9,592 $ 1,690,069 $ 70,397 $ (2,082) $ — $ 1,758,384 September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Allowance for Credit Losses Held-to-Maturity: U.S. Government and agency obligations $ 341 $ 10 $ — $ 351 $ — Municipal bonds 377,019 19,260 (593) 395,686 (60) Corporate bonds 3,254 — (13) 3,241 (42) Mortgage-backed or related securities 48,521 3,007 — 51,528 — $ 429,135 $ 22,277 $ (606) $ 450,806 $ (102) December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Trading: Corporate bonds $ 27,203 $ 25,636 $ 27,203 $ 25,636 Available-for-Sale: U.S. Government and agency obligations $ 90,468 $ 286 $ (1,156) $ 89,598 Municipal bonds 101,927 5,233 (3) 107,157 Corporate bonds 4,357 14 (6) 4,365 Mortgage-backed or related securities 1,324,999 20,325 (3,013) 1,342,311 Asset-backed securities 8,195 — (69) 8,126 $ 1,529,946 $ 25,858 $ (4,247) $ 1,551,557 Held-to-Maturity: U.S. Government and agency obligations $ 385 $ 4 $ — $ 389 Municipal bonds 177,208 3,733 (2,213) 178,728 Corporate bonds 3,353 — (11) 3,342 Mortgage-backed or related securities 55,148 921 (723) 55,346 $ 236,094 $ 4,658 $ (2,947) $ 237,805 Accrued interest receivable on held-to-maturity debt securities was $2.9 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively, and was $6.1 million and $4.8 million on available-for-sale debt securities as of September 30, 2020 and December 31, 2019, respectively. Accrued interest receivable on securities is reported in accrued interest receivable on the consolidated statements of financial condition and is excluded from the calculation of the allowance for credit losses. At September 30, 2020, the gross unrealized losses and the fair value for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows (in thousands): September 30, 2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 3,162 $ (7) $ 53,105 $ (960) $ 56,267 $ (967) Municipal bonds 16,636 (355) — — 16,636 (355) Corporate bonds 11,205 (85) — — 11,205 (85) Mortgage-backed or related securities 75,459 (500) 1,558 (15) 77,017 (515) Asset-backed securities 870 (16) 6,469 (144) 7,339 (160) $ 107,332 $ (963) $ 61,132 $ (1,119) $ 168,464 $ (2,082) At December 31, 2019, 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): December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 2,747 $ (20) $ 60,979 $ (1,136) $ 63,726 $ (1,156) Municipal bonds 1,902 — 494 (3) 2,396 (3) Corporate bonds 594 (6) — — 594 (6) Mortgage-backed or related securities 300,852 (2,829) 33,360 (184) 334,212 (3,013) Asset-backed securities 1,204 (17) 5,989 (52) 7,193 (69) $ 307,299 $ (2,872) $ 100,822 $ (1,375) $ 408,121 $ (4,247) Held-to-Maturity U.S. Government and agency obligations $ — $ — $ — $ — $ — $ — Municipal bonds 44,605 (1,889) 19,017 (324) 63,622 (2,213) Corporate bonds — — 489 (11) 489 (11) Mortgage-backed or related securities 11,117 (723) — — 11,117 (723) $ 55,722 $ (2,612) $ 19,506 $ (335) $ 75,228 $ (2,947) At September 30, 2020, there were 64 securities—available-for-sale with unrealized losses, compared to 90 at December 31, 2019. At December 31, 2019, there were 17 securities—held-to-maturity with unrealized losses. Management does not believe that any individual unrealized loss as of September 30, 2020 resulted from credit loss or that any individual unrealized loss represented other-than-temporary impairment (OTTI) as of December 31, 2019. The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. There were no sales of securities—trading during the nine months ended September 30, 2020 or 2019. There were no securities—trading in a nonaccrual status at September 30, 2020 or December 31, 2019. Net unrealized holding losses of $2.4 million were recognized during the nine months ended September 30, 2020 compared to $172,000 of net unrealized holding losses recognized during the nine months ended September 30, 2019. There were 30 sales of securities—available-for-sale during the nine months ended September 30, 2020, with a net gain of $296,000. There were 45 sales of securities—available-for-sale during the nine months ended September 30, 2019, which resulted in a net loss of $28,000. There were no securities—available-for-sale in a nonaccrual status at September 30, 2020 or December 31, 2019. There were no sales of securities—held-to-maturity during the nine months ended September 30, 2020 or 2019, although there were partial calls of securities that resulted in a net loss of $1,000 for the nine months ended September 30, 2019. There were no securities—held-to-maturity in a nonaccrual status or 30 days or more past due at September 30, 2020 or December 31, 2019. The Company also sold Visa Class B stock during the nine months ended September 30, 2020, with a net gain of $519,000. The stock was previously carried at a zero-cost basis due to transfer restrictions and uncertainty of litigation. The amortized cost and estimated fair value of securities at September 30, 2020, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. September 30, 2020 Trading Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair Amortized Fair Maturing in one year or less $ — $ — $ — $ — $ — $ — Maturing after one year through five years — — 60,411 62,725 57,360 59,541 Maturing after five years through ten years — — 478,140 500,140 40,458 42,822 Maturing after ten years through twenty years 27,203 23,276 446,834 463,236 118,611 123,188 Maturing after twenty years — — 704,684 732,283 212,706 225,255 $ 27,203 $ 23,276 $ 1,690,069 $ 1,758,384 $ 429,135 $ 450,806 The following table presents, as of September 30, 2020, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): September 30, 2020 Carrying Value Amortized Cost Fair Purpose or beneficiary: State and local governments public deposits $ 152,148 $ 151,455 $ 161,497 Interest rate swap counterparties 29,623 28,473 29,849 Repurchase agreements 204,034 194,374 204,034 Other 2,627 2,627 2,707 Total pledged securities $ 388,432 $ 376,929 $ 398,087 The Company monitors the credit quality of held-to-maturity debt securities through the use of credit rating. Credit ratings are reviewed and updated quarterly. The following table summarizes the amortized cost of held-to-maturity debt securities by credit rating at September 30, 2020 (in thousands): September 30, 2020 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total AAA/AA/A $ — $ 353,648 $ 500 $ — $ 354,148 Not Rated 341 23,371 2,754 48,521 74,987 $ 341 $ 377,019 $ 3,254 $ 48,521 $ 429,135 The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities by major type for the three and nine months ended September 30, 2020 (in thousands): For the Three Months Ended September 30, 2020 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total Allowance for credit losses - securities Beginning Balance $ — $ 61 $ 41 $ — $ 102 (Recapture)/Provision for credit losses — (1) 1 — — Ending Balance $ — $ 60 $ 42 $ — $ 102 For the Nine Months Ended September 30, 2020 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total Allowance for credit losses - securities Beginning Balance $ — $ — $ — $ — $ — Impact of adopting ASC 326 — 28 35 — 63 Provision for credit losses — 32 7 — 39 Ending Balance $ — $ 60 $ 42 $ — $ 102 |
LOANS RECEIVABLE AND THE ALLOWA
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES - LOANS As a result of the adoption of Financial Instruments - Credit Losses (Topic 326), effective January 1, 2020, the Company changed the segmentation of its loan portfolio based on the common risk characteristics used to measure the allowance for credit losses. The following table presents the loans receivable at September 30, 2020 and December 31, 2019 by class (dollars in thousands). The presentation of loans receivable at December 31, 2019 has been updated to conform to the loan portfolio segmentation that became effective on January 1, 2020. September 30, 2020 December 31, 2019 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,049,877 10.3 $ 980,021 10.5 % Investment properties 1,991,258 19.6 2,024,988 21.8 Small balance CRE 597,971 5.9 613,484 6.6 Multifamily real estate 426,659 4.2 388,388 4.2 Construction, land and land development: Commercial construction 220,285 2.2 210,668 2.3 Multifamily construction 291,105 2.9 233,610 2.5 One- to four-family construction 518,085 5.1 544,308 5.8 Land and land development 240,803 2.4 245,530 2.6 Commercial business: Commercial business 2,343,619 23.1 1,364,650 14.7 Small business scored 763,824 7.5 772,657 8.3 Agricultural business, including secured by farmland 326,169 3.2 337,271 3.6 One- to four-family residential 771,431 7.6 925,531 9.9 Consumer: Consumer—home equity revolving lines of credit 504,523 4.9 519,336 5.6 Consumer—other 118,308 1.1 144,915 1.6 Total loans 10,163,917 100.0 9,305,357 100.0 % Less allowance for credit losses - loans (167,965) (100,559) Net loans $ 9,995,952 $ 9,204,798 The presentation of loans receivable at December 31, 2019 in the table below is based on loan segmentation as presented in the 2019 Form 10-K. December 31, 2019 Amount Percent of Total Commercial real estate: Owner-occupied $ 1,580,650 17.0 % Investment properties 2,309,221 24.8 Multifamily real estate 473,152 5.1 Commercial construction 210,668 2.3 Multifamily construction 233,610 2.5 One- to four-family construction 544,308 5.8 Land and land development: Residential 154,688 1.7 Commercial 26,290 0.3 Commercial business 1,693,824 18.2 Agricultural business, including secured by farmland 370,549 4.0 One- to four-family residential 945,622 10.2 Consumer: Consumer secured by one- to four-family 550,960 5.8 Consumer—other 211,815 2.3 Total loans 9,305,357 100.0 % Less allowance for loan losses (100,559) Net loans $ 9,204,798 Loan amounts are net of unearned loan fees in excess of unamortized costs of $31.7 million as of September 30, 2020 and $438,000 as of December 31, 2019. Net loans include net discounts on acquired loans of $17.9 million and $25.0 million as of September 30, 2020 and December 31, 2019, respectively. Net loans does not include accrued interest receivable. Accrued interest receivable on loans was $39.2 million as of September 30, 2020 and $31.8 million as of December 31, 2019 and was reported in accrued interest receivable on the consolidated statements of financial condition. Purchased credit-deteriorated and purchased non-credit-deteriorated loans. Loans acquired in business combinations are recorded at their fair value at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-deteriorated (PCD) or purchased non-credit-deteriorated. There were no PCD loans acquired for the three and nine months ended September 30, 2020. Purchased credit-impaired loans and purchased non-credit-impaired loans. Prior to the implementation of Financial Instruments—Credit Losses (Topic 326) on January 1, 2020, acquired loans were evaluated upon acquisition and classified as either PCI or purchased non-credit-impaired. PCI loans reflected credit deterioration since origination such that it was probable at acquisition that the Company would be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of PCI loans, excluding acquisition accounting adjustments, was $23.5 million at December 31, 2019. The carrying balance of PCI loans was $15.9 million at December 31, 2019. These loans were converted to PCD loans on January 1, 2020. The following table presents the changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended 2019 2019 Balance, beginning of period $ 4,743 $ 5,216 Accretion to interest income (423) (1,372) Reclassifications from non-accretable difference 11 487 Balance, end of period $ 4,331 $ 4,331 As of December 31, 2019, the non-accretable difference between the contractually required payments and cash flows expected to be collected was $7.4 million. Impaired Loans and the Allowance for Loan Losses. Prior to the implementation of Financial Instruments—Credit Losses (Topic 326) on January 1, 2020, a loan was considered impaired when, based on current information and circumstances, the Company determines it was probable that it would 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 included, but were not limited to, the financial condition of the borrower, the value of the underlying collateral and the status of the economy. Impaired loans were comprised of loans on nonaccrual, TDRs that were performing under their restructured terms, and loans that were 90 days or more past due, but were still on accrual. PCI loans were considered performing within the scope of the purchased credit-impaired accounting guidance and were not included in the impaired loan tables. The following table provides information on impaired loans, excluding PCI loans, with and without allowance reserves at December 31, 2019. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): December 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 4,185 $ 3,816 $ 194 $ 18 Investment properties 3,536 1,883 690 40 Multifamily real estate 82 85 — — Multifamily construction 573 98 — — One- to four-family construction 1,799 1,799 — — Land and land development: Residential 676 340 — — Commercial business 25,117 4,614 19,330 4,128 Agricultural business/farmland 3,044 661 2,243 141 One- to four-family residential 7,290 5,613 1,648 41 Consumer: Consumer secured by one- to four-family 3,081 2,712 127 5 Consumer—other 222 159 52 1 $ 49,605 $ 21,780 $ 24,284 $ 4,374 (1) Includes loans without an allowance reserve that had been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $13.5 million of homogeneous and small balance loans, as of December 31, 2019, that were collectively evaluated for impairment for which a general reserve was established. (2) Loans with a specific allowance reserve were 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 and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 3,067 $ — $ 3,197 $ 4 Investment properties 2,707 10 4,406 108 Multifamily real estate 58 — 19 — Commercial construction 439 — 1,006 — One- to four-family construction 1,489 11 1,138 12 Land and land development: Residential 673 — 696 — Commercial business 3,737 9 3,767 20 Agricultural business/farmland 3,250 25 4,319 81 One- to four-family residential 6,555 49 6,484 171 Consumer: Consumer secured by one- to four-family 2,744 6 2,645 14 Consumer—other 387 1 359 3 $ 25,106 $ 111 $ 28,036 $ 413 Troubled Debt Restructurings. 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. 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 of September 30, 2020 and December 31, 2019, the Company had TDRs of $10.4 million and $8.0 million, respectively, and commitments to advance additional funds related to TDRs up to $1.3 million and none, respectively. The following table presents new TDRs that occurred during the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): Three Months Ended September 30, 2020 Nine months ended September 30, 2020 Number of Pre-modification Outstanding Post-modification Outstanding Number of Pre- Post- Recorded Investment Commercial business: Commercial business — $ — $ — 2 $ 4,796 $ 4,796 Total — $ — $ — 2 $ 4,796 $ 4,796 Three Months Ended September 30, 2019 Nine months ended September 30, 2019 Number of Pre-modification Outstanding Post-modification Outstanding Number of Pre- Post- Recorded Investment Commercial real estate Investment properties — $ — $ — 1 $ 1,090 $ 1,090 Commercial business: Commercial business — — — 1 160 160 Agricultural business/farmland — — — 1 596 596 — $ — $ — 3 $ 1,846 $ 1,846 There were no TDRs which incurred a payment default within twelve months of the restructure date during the three and nine-month periods ended September 30, 2020 and 2019. 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 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. The Company’s risk-rating and loan grading policies are reviewed and approved annually. There were no material changes in the risk-rating or loan grading system for the periods presented. Risk Ratings 1-5: Pass Credits with risk ratings of 1 to 5 meet the definition of a pass risk rating. The strength of credits vary within the pass risk ratings, ranging from a risk rated 1 being an exceptional credit to a risk rated 5 being an acceptable credit that requires a more than normal level of supervision. 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 make the amount and timing of any loss indeterminable. In these situations taking the loss is inappropriate until the outcome of the pending event is clear. 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 by grade as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination. September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Commercial real estate - owner occupied Risk Rating Pass $ 184,182 $ 166,817 $ 165,634 $ 124,766 $ 93,179 $ 228,160 $ 3,159 $ 965,897 Special Mention — — 1,369 2,285 — 1,616 149 5,419 Substandard 5,661 24,638 1,670 2,443 14,055 30,094 — 78,561 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - owner occupied $ 189,843 $ 191,455 $ 168,673 $ 129,494 $ 107,234 $ 259,870 $ 3,308 $ 1,049,877 Commercial real estate - investment properties Risk Rating Pass $ 190,298 $ 267,544 $ 309,233 $ 212,385 $ 281,543 $ 523,930 $ 21,201 $ 1,806,134 Special Mention — 2,153 — — 3,377 4,444 — 9,974 Substandard 12,652 10,245 23,729 59,100 26,502 38,421 4,501 175,150 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - investment properties $ 202,950 $ 279,942 $ 332,962 $ 271,485 $ 311,422 $ 566,795 $ 25,702 $ 1,991,258 Multifamily real estate Risk Rating Pass $ 62,552 $ 68,649 $ 39,634 $ 106,938 $ 45,049 $ 102,426 $ 1,411 $ 426,659 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily real estate $ 62,552 $ 68,649 $ 39,634 $ 106,938 $ 45,049 $ 102,426 $ 1,411 $ 426,659 September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Commercial construction Risk Rating Pass $ 38,631 $ 106,658 $ 43,010 $ 6,102 $ 2,183 $ 1,143 $ — $ 197,727 Special Mention 698 — — — — — — 698 Substandard 11,899 3,548 4,868 1,447 98 — — 21,860 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial construction $ 51,228 $ 110,206 $ 47,878 $ 7,549 $ 2,281 $ 1,143 $ — $ 220,285 Multifamily construction Risk Rating Pass $ 62,271 $ 144,695 $ 69,367 $ 14,772 $ — $ — $ — $ 291,105 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily construction $ 62,271 $ 144,695 $ 69,367 $ 14,772 $ — $ — $ — $ 291,105 One- to four- family construction Risk Rating Pass $ 404,805 $ 87,377 $ — $ — $ — $ — $ 12,058 $ 504,240 Special Mention 9,121 623 — — — — 630 10,374 Substandard 3,139 332 — — — — — 3,471 Doubtful — — — — — — — — Loss — — — — — — — — Total One- to four- family construction $ 417,065 $ 88,332 $ — $ — $ — $ — $ 12,688 $ 518,085 September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Land and land development Risk Rating Pass $ 113,268 $ 65,773 $ 22,930 $ 7,930 $ 6,773 $ 5,404 $ 15,137 $ 237,215 Special Mention — — — — — — — — Substandard 14 31 3,050 191 — 302 — 3,588 Doubtful — — — — — — — — Loss — — — — — — — — Total Land and land development $ 113,282 $ 65,804 $ 25,980 $ 8,121 $ 6,773 $ 5,706 $ 15,137 $ 240,803 Commercial business Risk Rating Pass $ 1,304,667 $ 263,730 $ 217,169 $ 81,266 $ 42,319 $ 78,112 $ 256,590 $ 2,243,853 Special Mention 2,071 502 8,786 834 — 43 1,142 13,378 Substandard 9,193 11,780 22,307 6,080 1,228 463 35,337 86,388 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial business $ 1,315,931 $ 276,012 $ 248,262 $ 88,180 $ 43,547 $ 78,618 $ 293,069 $ 2,343,619 Agricultural business including secured by farmland Risk Rating Pass $ 27,358 $ 60,931 $ 32,786 $ 24,415 $ 24,473 $ 30,603 $ 113,813 $ 314,379 Special Mention — — — 810 — 537 — 1,347 Substandard 1,548 3,016 901 332 676 1,581 2,389 10,443 Doubtful — — — — — — — — Loss — — — — — — — — Total Agricultural business including secured by farmland $ 28,906 $ 63,947 $ 33,687 $ 25,557 $ 25,149 $ 32,721 $ 116,202 $ 326,169 The following table presents the Company’s portfolio of non-risk-rated loans by delinquency status as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination. September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Small balance CRE Past Due Category Current $ 42,396 $ 81,636 $ 89,270 $ 78,727 $ 75,123 $ 225,523 $ 2,864 $ 595,539 30-59 Days Past Due — 241 — — — 369 — 610 60-89 Days Past Due — — — 622 — — — 622 90 Days + Past Due — — — 185 — 1,015 — 1,200 Total Small balance CRE $ 42,396 $ 81,877 $ 89,270 $ 79,534 $ 75,123 $ 226,907 $ 2,864 $ 597,971 Small business scored Past Due Category Current $ 128,596 $ 154,666 $ 138,279 $ 100,654 $ 51,378 $ 70,986 $ 113,452 $ 758,011 30-59 Days Past Due 844 400 207 643 2 240 155 2,491 60-89 Days Past Due 224 35 767 63 — 151 58 1,298 90 Days + Past Due 85 106 588 713 172 250 110 2,024 Total Small business scored $ 129,749 $ 155,207 $ 139,841 $ 102,073 $ 51,552 $ 71,627 $ 113,775 $ 763,824 One- to four- family residential Past Due Category Current $ 68,277 $ 100,406 $ 105,335 $ 124,930 $ 65,906 $ 297,086 $ 3,880 $ 765,820 30-59 Days Past Due — 35 — — — 195 — 230 60-89 Days Past Due 299 2 241 480 — 727 — 1,749 90 Days + Past Due — — 1,012 512 — 2,108 — 3,632 Total One- to four- family residential $ 68,576 $ 100,443 $ 106,588 $ 125,922 $ 65,906 $ 300,116 $ 3,880 $ 771,431 September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Consumer—home equity revolving lines of credit Past Due Category Current $ 12,696 $ 1,983 $ 2,515 $ 3,176 $ 1,665 $ 2,945 $ 476,385 $ 501,365 30-59 Days Past Due — — — 44 — 84 745 873 60-89 Days Past Due — — — — — 14 201 215 90 Days + Past Due — 100 54 564 329 321 702 2,070 Total Consumer—home equity revolving lines of credit $ 12,696 $ 2,083 $ 2,569 $ 3,784 $ 1,994 $ 3,364 $ 478,033 $ 504,523 Consumer-other Past Due Category Current $ 15,111 $ 16,716 $ 16,158 $ 13,500 $ 10,013 $ 20,774 $ 25,571 $ 117,843 30-59 Days Past Due 18 23 2 5 37 35 63 183 60-89 Days Past Due 44 33 — 148 — 2 26 253 90 Days + Past Due — — 24 — 5 — — 29 Total Consumer-other $ 15,173 $ 16,772 $ 16,184 $ 13,653 $ 10,055 $ 20,811 $ 25,660 $ 118,308 The following table presents the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of December 31, 2019 (in thousands): December 31, 2019 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,546,649 $ 4,198 $ 29,803 $ — $ — $ 1,580,650 Investment properties 2,288,785 2,193 18,243 — — 2,309,221 Multifamily real estate 472,856 — 296 — — 473,152 Commercial construction 198,986 — 11,682 — — 210,668 Multifamily construction 233,610 — — — — 233,610 One- to four-family construction 530,307 12,534 1,467 — — 544,308 Land and land development: Residential 154,348 — 340 — — 154,688 Commercial 26,256 — 34 — — 26,290 Commercial business 1,627,170 31,012 35,584 58 — 1,693,824 Agricultural business, including secured by farmland 352,408 10,840 7,301 — — 370,549 One- to four-family residential 940,424 409 4,789 — — 945,622 Consumer: Consumer secured by one- to four-family 547,388 — 3,572 — — 550,960 Consumer—other 211,475 3 337 — — 211,815 Total $ 9,130,662 $ 61,189 $ 113,448 $ 58 $ — $ 9,305,357 (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 December 31, 2019, in the commercial business category, $764.6 million of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated. The following table provides the amortized cost basis of collateral-dependent loans as of September 30, 2020 (in thousands). Our collateral dependent loans presented in the table below have no significant concentrations by property type or location. The table below includes one commercial business banking relationship with a balance of $6.6 million. September 30, 2020 Real Estate Accounts Receivable Equipment Inventory Total Commercial real estate: Owner-occupied $ 1,101 $ — $ — $ — $ 1,101 Investment properties 3,914 — — — 3,914 Small Balance CRE 1,206 — — — 1,206 Land and land development 302 — — — 302 Commercial business Commercial business 2,536 2,756 2,970 652 8,914 Small business Scored 46 — 48 — 94 Agricultural business, including secured by farmland 427 — 994 — 1,421 One- to four-family residential 195 — — — 195 Total $ 9,727 $ 2,756 $ 4,012 $ 652 $ 17,147 The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans Non-accrual with no Allowance Total Non-accrual (1) Loans 90 Days or More Past Due and Accruing Commercial real estate: Owner-occupied $ 100 $ — $ 1,687 $ 1,787 $ 1,048,090 $ 1,049,877 $ 1,101 $ 2,067 $ — Investment properties 5,902 98 2,919 8,919 1,982,339 1,991,258 3,914 3,914 — Small Balance CRE 610 622 1,200 2,432 595,539 597,971 1,206 1,843 — Multifamily real estate — — — — 426,659 426,659 — — — Construction, land and land development: Commercial construction — — 99 99 220,186 220,285 — 98 — Multifamily construction — — — — 291,105 291,105 — — — One- to four-family construction 441 422 — 863 517,222 518,085 — 331 — Land and land development — — 508 508 240,295 240,803 302 508 — Commercial business Commercial business 485 3,640 1,661 5,786 2,337,833 2,343,619 7,468 12,143 225 Small business scored 2,491 1,298 2,024 5,813 758,011 763,824 93 2,724 200 Agricultural business, including secured by farmland — — 2,023 2,023 324,146 326,169 1,422 2,066 — One- to four-family residential 230 1,749 3,632 5,611 765,820 771,431 181 2,978 2,649 Consumer: Consumer—home equity revolving lines of credit 873 215 2,070 3,158 501,365 504,523 — 2,835 175 Consumer—other 183 253 29 465 117,843 118,308 — 61 6 Total $ 11,315 $ 8,297 $ 17,852 $ 37,464 $ 10,126,453 $ 10,163,917 $ 15,687 $ 31,568 $ 3,255 December 31, 2019 30-59 Days 60-89 Days 90 Days or More Total Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Total Non-accrual (1) Commercial real estate: Owner-occupied $ 486 $ 1,246 $ 2,889 $ 4,621 $ 8,578 $ 1,567,451 $ 1,580,650 $ 89 $ 4,069 Investment properties — 260 1,883 2,143 6,345 2,300,733 2,309,221 — 1,883 Multifamily real estate 239 91 — 330 7 472,815 473,152 — 85 Commercial construction 1,397 — 98 1,495 — 209,173 210,668 — 98 Multifamily construction — — — — — 233,610 233,610 — — One-to-four-family construction 3,212 — 1,799 5,011 — 539,297 544,308 332 1,467 Land and land development: Residential — — 340 340 — 154,348 154,688 — 340 Commercial — — — — — 26,290 26,290 — — Commercial business 2,343 1,583 3,412 7,338 368 1,686,118 1,693,824 401 23,015 Agricultural business, including secured by farmland 1,972 129 584 2,685 393 367,471 370,549 — 661 One-to four-family residential 3,777 1,088 2,876 7,741 74 937,807 945,622 877 3,410 Consumer: Consumer secured by one- to four-family 1,174 327 1,846 3,347 110 547,503 550,960 398 2,314 Consumer—other 350 161 — 511 63 211,241 211,815 — 159 Total $ 14,950 $ 4,885 $ 15,727 $ 35,562 $ 15,938 $ 9,253,857 $ 9,305,357 $ 2,097 $ 37,501 (1) The Company did not recognize any interest income on non-accrual loans during both the nine months ended September 30, 2020 and the year ended December 31, 2019. The following tables provide the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2020 (in thousands): For the Three Months Ended September 30, 2020 Commercial Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 53,166 $ 3,504 $ 36,916 $ 33,870 $ 4,517 $ 12,746 $ 11,633 $ — $ 156,352 Provision/(recapture) for credit losses 6,895 (248) 2,561 2,550 1,026 100 757 — 13,641 Recoveries 23 — — 246 — 94 82 — 445 Charge-offs (379) — — (1,297) (492) (72) (233) — (2,473) Ending balance $ 59,705 $ 3,256 $ 39,477 $ 35,369 $ 5,051 $ 12,868 $ 12,239 $ — $ 167,965 For the Nine Months Ended September 30, 2020 Commercial Multifamily Construction and Land Commercial Agricultural One- to Four-Family Residential Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 30,591 $ 4,754 $ 22,994 $ 23,370 $ 4,120 $ 4,136 $ 8,202 $ 2,392 $ 100,559 Impact of Adopting ASC 326 (2,864) (2,204) 2,515 3,010 (351) 7,125 2,973 (2,392) 7,812 Provision for credit losses 32,213 772 13,963 14,402 64 1,470 1,994 — 64,878 Recoveries 244 — 105 821 1,772 273 238 — 3,453 Charge-offs (479) (66) (100) (6,234) (554) (136) (1,168) — (8,737) Ending balance $ 59,705 $ 3,256 $ 39,477 $ 35,369 $ 5,051 $ 12,868 $ 12,239 $ — $ 167,965 The changes in the allowance for credit losses during the three and nine months ended September 30, 2020 were primarily the result of the $13.6 million provision for credit losses recorded during the current quarter and the $64.9 million provision recording during the nine months ended September 30, 2020, mostly due to the deterioration in the economy during the current quarter and nine months ended September 30, 2020 as a result of the COVID-19 pandemic, as well as forecasted additional economic deterioration based on the reasonable and supportable economic forecast as of September 30, 2020. The current quarter provision for credit losses also reflects risk rating downgrades on loans that are considered at heightened risk due to the COVID-19 pandemic. In addition, the change for the nine months ended September 30, 2020 included a $7.8 million increase related to the adoption of Financial Instruments - Credit Losses (Topic 326). The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three and nine months ended September 30, 2019 (in thousands): For the Three Months Ended September 30, 2019 Commercial Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 26,730 $ 4,344 $ 23,554 $ 19,557 $ 3,691 $ 4,701 $ 8,452 $ 7,225 $ 98,254 Provision/(recapture) for loan losses 1,992 (61) (1,141) 3,027 943 (175) 258 (2,843) 2,000 Recoveries 107 — 156 162 2 129 154 — 710 Charge-offs (314) — — (1,599) (741) (86) (423) — (3,163) Ending balance $ 28,515 $ 4,283 $ 22,569 $ 21,147 $ 3,895 $ 4,569 $ 8,441 $ 4,382 $ 97,801 For the Nine Months Ended September 30, 2019 Commercial Multifamily Construction and Land Commercial Agricultural 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/(recapture) for loan losses 2,244 465 (2,081) 4,300 987 (461) 1,355 (809) 6,000 Recoveries 277 — 208 400 37 402 487 — 1,811 Charge-offs (1,138) — — (2,991) (907) (86) (1,373) — (6,495) Ending balance $ 28,515 $ 4,283 $ 22,569 $ 21,147 $ 3,895 $ 4,569 $ 8,441 $ 4,382 $ 97,801 September 30, 2019 Commercial Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 60 $ — $ — $ 48 $ 132 $ 42 $ 6 $ — $ 288 Collectively evaluated for impairment 28,455 4,283 22,569 21,078 3,710 4,527 8,435 4,382 97,439 Purchased credit-impaired loans — — — 21 53 — — — 74 Total allowance for loan losses $ 28,515 $ 4,283 $ 22,569 $ 21,147 $ 3,895 $ 4,569 $ 8,441 $ 4,382 $ 97,801 Loan balances: Individually evaluated for impairment $ 4,246 $ — $ 1,220 $ 618 $ 2,282 $ 3,745 $ 241 $ — $ 12,352 Collectively evaluated for impairment 3,598,482 399,808 1,083,083 1,618,366 387,827 943,653 779,222 — 8,810,441 Purchased credit impaired loans 11,513 6 — 407 396 77 176 — 12,575 Total loans $ 3,614,241 $ 399,814 $ 1,084,303 $ 1,619,391 $ 390,505 $ 947,475 $ 779,639 $ — $ 8,835,368 |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS Goodwill and Other Intangible Assets: At September 30, 2020, intangible assets are comprised of goodwill and CDI 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. Banner has identified one reporting unit for purposes of evaluating goodwill for impairment. At September 30, 2020, 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. If adverse economic conditions or the recent decrease in our stock price and market capitalization as a result of the COVID-19 pandemic were to be deemed sustained in the future rather than temporary, it may significantly affect the fair value of our goodwill and may trigger impairment charges. CDI represents the value of transaction-related deposits and the value of the customer relationships associated with the deposits. At December 31, 2018 intangible assets also included favorable leasehold intangibles (LHI). LHI represented 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. LHI was reclassified to the right of use lease asset in connection with the adoption of Lease Topic 842 on January 1, 2019. The Company amortizes CDI assets over their estimated useful lives and reviews them at least annually for events or circumstances that could impair their value. The following table summarizes the changes in the Company’s goodwill and other intangibles for the nine months ended September 30, 2020 and the year ended December 31, 2019 (in thousands): Goodwill CDI LHI Total Balance, December 31, 2018 $ 339,154 $ 32,699 $ 225 $ 372,078 Additions through acquisitions (1) 33,967 4,610 — 38,577 Amortization — (8,151) — (8,151) Adjustments (2) — — (225) (225) Balance, December 31, 2019 373,121 29,158 — 402,279 Amortization — (5,867) — (5,867) Balance, September 30, 2020 $ 373,121 $ 23,291 $ — $ 396,412 (1) The additions to Goodwill and CDI in 2019 relate to the acquisition of AltaPacific. (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 as of September 30, 2020 for the periods indicated (in thousands): Estimated Amortization Remainder of 2020 $ 1,865 2021 6,571 2022 5,317 2023 3,814 2024 2,659 Thereafter 3,065 $ 23,291 Mortgage Servicing Rights: Mortgage servicing rights are reported in other assets. Mortgage servicing rights are initially recorded at fair value and are amortized in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Mortgage servicing rights are subsequently evaluated for impairment based upon the fair value of the rights compared to the amortized cost (remaining unamortized initial fair value). If the fair value is less than the amortized cost, a valuation allowance is created through an impairment charge, which is recognized in servicing fee income within mortgage banking operations on the consolidated statement of operations. However, if the fair value is greater than the amortized cost, the amount above the amortized cost is not recognized in the carrying value. During the three and nine months ended September 30, 2020 and 2019, 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 $2.61 billion and $2.48 billion at September 30, 2020 and December 31, 2019, respectively. Custodial accounts maintained in connection with this servicing totaled $3.4 million and $12.0 million at September 30, 2020 and December 31, 2019, respectively. An analysis of our mortgage servicing rights for the three and nine months ended September 30, 2020 and 2019 is presented below (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Balance, beginning of the period $ 14,424 $ 13,998 $ 14,148 $ 14,638 Additions—amounts capitalized 2,426 1,167 6,030 2,524 Additions—through purchase 40 36 141 105 Amortization (1) (2,075) (1,404) (5,504) (3,470) Balance, end of the period (2) $ 14,815 $ 13,797 $ 14,815 $ 13,797 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. (2) There was no valuation allowance as of September 30, 2020 and 2019. |
REAL ESTATE OWNED, NET
REAL ESTATE OWNED, NET | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
REAL ESTATE OWNED, NET | REAL ESTATE OWNED, NET The following table presents the changes in REO for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Balance, beginning of the period $ 2,400 $ 2,513 $ 814 $ 2,611 Additions from loan foreclosures — 48 1,588 109 Proceeds from dispositions of REO (707) (2,333) (805) (2,483) Gain (loss) on sale of REO 120 — 216 (9) Valuation adjustments in the period (18) — (18) — Balance, end of the period $ 1,795 $ 228 $ 1,795 $ 228 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 $725,000 of foreclosed one- to four-family residential real estate properties held as REO at September 30, 2020 and $48,000 at December 31, 2019. The recorded investment in one- to four-family residential loans in the process of foreclosure was $403,000 at September 30, 2020 compared with $1.5 million at December 31, 2019. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
DEPOSITS | DEPOSITS Deposits consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Non-interest-bearing accounts $ 5,412,570 $ 3,945,000 Interest-bearing checking 1,434,224 1,280,003 Regular savings accounts 2,332,287 1,934,041 Money market accounts 2,120,908 1,769,194 Total interest-bearing transaction and saving accounts 5,887,419 4,983,238 Certificates of deposit: Certificates of deposit less than or equal to $250,000 723,225 936,940 Certificates of deposit greater than $250,000 192,127 183,463 Total certificates of deposit (1) 915,352 1,120,403 Total deposits $ 12,215,341 $ 10,048,641 Included in total deposits: Public fund transaction and savings accounts $ 259,929 $ 244,418 Public fund interest-bearing certificates 54,219 35,184 Total public deposits $ 314,148 $ 279,602 Total brokered deposits $ — $ 202,884 (1) Certificates of deposit include $101,000 and $269,000 of acquisition premiums at September 30, 2020 and December 31, 2019, respectively. At September 30, 2020 and December 31, 2019, the Company had certificates of deposit of $197.6 million and $189.0 million, respectively, that were equal to or greater than $250,000. Scheduled maturities and weighted average interest rates of certificates of deposit at September 30, 2020 are as follows (dollars in thousands): September 30, 2020 Amount Weighted Average Rate Maturing in one year or less $ 694,530 0.93 % Maturing after one year through two years 123,003 1.47 Maturing after two years through three years 71,727 1.25 Maturing after three years through four years 13,041 2.17 Maturing after four years through five years 10,999 1.31 Maturing after five years 2,052 1.00 Total certificates of deposit $ 915,352 1.05 % |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE ACCOUNTING AND MEASUREMENT | FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2020 and December 31, 2019, whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands): September 30, 2020 December 31, 2019 Level Carrying Estimated Carrying Estimated Assets: Cash and cash equivalents 1 $ 705,538 $ 705,538 $ 307,735 $ 307,735 Securities—trading 3 23,276 23,276 25,636 25,636 Securities—available-for-sale 2 1,758,384 1,758,384 1,551,557 1,551,557 Securities—held-to-maturity 2 426,380 448,051 233,241 234,952 Securities—held-to-maturity 3 2,755 2,755 2,853 2,853 Loans held for sale 2 185,938 186,544 210,447 210,670 Loans receivable 3 10,163,917 10,091,600 9,305,357 9,304,340 Equity securities 1 450,255 450,255 — — FHLB stock 3 16,363 16,363 28,342 28,342 Bank-owned life insurance 1 191,755 191,755 192,088 192,088 Mortgage servicing rights 3 14,815 17,954 14,148 22,611 Derivatives: Interest rate swaps 2 43,506 43,506 15,202 15,202 Interest rate lock and forward sales commitments 2,3 10,473 10,473 1,108 1,108 Liabilities: Demand, interest checking and money market accounts 2 8,967,702 8,967,702 6,994,197 6,994,197 Regular savings 2 2,332,287 2,332,287 1,934,041 1,934,041 Certificates of deposit 2 915,352 921,332 1,120,403 1,117,921 FHLB advances 2 150,000 153,661 450,000 452,720 Other borrowings 2 176,983 176,983 118,474 118,474 Subordinated notes, net 3 98,114 98,114 — — Junior subordinated debentures 3 109,821 109,821 119,304 119,304 Derivatives: Interest rate swaps 2 23,927 23,927 10,966 10,966 Interest rate lock and forward sales commitments 2 1,510 1,510 674 674 The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the accounting standard requires the reporting entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from non-binding single dealer quotes not corroborated by observable market data. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for certain financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. Items Measured at Fair Value on a Recurring Basis: The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 23,276 $ 23,276 Securities—available-for-sale U.S. Government and agency obligations — 169,913 — 169,913 Municipal bonds — 272,408 — 272,408 Corporate bonds — 55,971 — 55,971 Mortgage-backed or related securities — 1,250,500 — 1,250,500 Asset-backed securities — 9,592 — 9,592 — 1,758,384 — 1,758,384 Loans held for sale — 152,996 — 152,996 Equity securities 450,255 — — 450,255 Derivatives Interest rate swaps — 43,506 — 43,506 Interest rate lock and forward sales commitments — 2,019 8,454 10,473 $ 450,255 $ 1,956,905 $ 31,730 $ 2,438,890 Liabilities: Junior subordinated debentures $ — $ — $ 109,821 $ 109,821 Derivatives Interest rate swaps — 23,927 — 23,927 Interest rate lock and forward sales commitments — 1,510 — 1,510 $ — $ 25,437 $ 109,821 $ 135,258 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 25,636 $ 25,636 Securities—available-for-sale U.S. Government and agency obligations — 89,598 — 89,598 Municipal bonds — 107,157 — 107,157 Corporate bonds — 4,365 — 4,365 Mortgage-backed securities — 1,342,311 — 1,342,311 Asset-backed securities — 8,126 — 8,126 — 1,551,557 — 1,551,557 Loans held for sale — 199,397 — 199,397 Derivatives Interest rate swaps — 15,202 — 15,202 Interest rate lock and forward sales commitments — 317 791 1,108 $ — $ 1,766,473 $ 26,427 $ 1,792,900 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 119,304 $ 119,304 Derivatives Interest rate swaps — 10,966 — 10,966 Interest rate lock and forward sales commitments — 674 — 674 $ — $ 11,640 $ 119,304 $ 130,944 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 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. Equity Securities: Equity securities at September 30, 2020 are invested in a money market mutual fund. The fair value of these securities are based on daily quoted market prices. Junior Subordinated Debentures: The fair value of junior subordinated debentures is estimated using an income approach technique. The significant inputs included in the estimation of fair value are the credit risk adjusted spread and three month LIBOR. The credit risk adjusted spread represents the nonperformance risk of the liability. The Company utilizes an external valuation firm to validate the reasonableness of the credit risk adjusted spread used to determine the fair value. The junior subordinated debentures are carried at fair value which represents the estimated amount that would be paid to transfer these liabilities in an orderly transaction amongst market participants. Due to inactivity in the trust preferred markets that have limited the observability of market spreads, management has classified this as a Level 3 fair value measure. Derivatives: Derivatives include interest rate swap agreements, interest rate lock commitments to originate loans held for sale and forward sales contracts to sell loans and securities related to mortgage banking activities. Fair values for these instruments, which generally change as a result of changes in the level of market interest rates, are estimated based on dealer quotes and secondary market sources. Off-Balance Sheet Items: Off-balance sheet financial instruments include unfunded commitments to extend credit, including standby letters of credit, and commitments to purchase investment securities. The fair value of these instruments is not considered to be material. Limitations: The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2020 and December 31, 2019. The factors used in the fair values estimates are subject to change subsequent to the dates the fair value estimates are completed, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3): The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for certain of the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and non-recurring basis at September 30, 2020 and December 31, 2019: Weighted Average Rate / Range Financial Instruments Valuation Techniques Unobservable Inputs September 30, 2020 December 31, 2019 Corporate bonds (TPS securities) Discounted cash flows Discount rate 4.73 % 5.91 % Junior subordinated debentures Discounted cash flows Discount rate 4.73 % 5.91 % Loans individually evaluated Collateral valuations Discount to appraised value 0.0% to 20.0% 0.0% to 20.0% REO Appraisals Discount to appraised value 48.52 % 58.50 % Interest rate lock commitments Pricing model Pull-through rate 87.05 % 89.61 % TPS securities : Management believes that the credit risk-adjusted spread used to develop the discount rate utilized in the fair value measurement of TPS securities is indicative of the risk premium a willing market participant would require under current market conditions for instruments with similar contractual rates and terms and conditions and issuers with similar credit risk profiles and with similar expected probability of default. Management attributes the change in fair value of these instruments, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of assets subsequent to their issuance. Junior subordinated debentures : Similar to the TPS securities discussed above, management believes that the credit risk-adjusted spread utilized in the fair value measurement of the junior subordinated debentures is indicative of the risk premium a willing market participant would require under current market conditions for an issuer with Banner’s credit risk profile. Management attributes the change in fair value of the junior subordinated debentures, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of liabilities subsequent to their issuance. Future contractions in the risk adjusted spread relative to the spread currently utilized to measure the Company’s junior subordinated debentures at fair value as of September 30, 2020, or the passage of time, will result in negative fair value adjustments. At September 30, 2020, the discount rate utilized was based on a credit spread of 450 basis points and three-month LIBOR of 23 basis points. Interest rate lock commitments: The fair value of the interest rate lock commitments is based on secondary market sources adjusted for an estimated pull-through rate. The pull-through rate is based on historical loan closing rates for similar interest rate lock commitments. An increase or decrease in the pull-through rate would have a corresponding, positive or negative fair value adjustment. The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest rate lock and forward sales commitments TPS Securities Borrowings— Interest rate lock and forward sales commitments Beginning balance $ 23,239 $ 109,613 $ 5,816 $ 25,636 $ 119,304 $ 791 Total gains or losses recognized Assets gains (losses) 37 — 2,638 (2,360) — 7,663 Liabilities losses (gains) — 208 — — (9,483) — Ending balance at September 30, 2020 $ 23,276 $ 109,821 $ 8,454 $ 23,276 $ 109,821 $ 8,454 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest rate lock and forward sales commitments TPS Securities Borrowings— Interest rate lock and forward sales commitments Beginning balance $ 25,741 $ 113,621 $ 1,373 $ 25,896 $ 114,091 $ 273 Total gains or losses recognized Assets (losses) gains (69) — 33 (224) — 1,133 Liabilities gains — (204) — — (674) — Ending balance at September 30, 2019 $ 25,672 $ 113,417 $ 1,406 $ 25,672 $ 113,417 $ 1,406 Interest income and dividends from the TPS securities are recorded as a component of interest income. Interest expense related to the junior subordinated debentures is measured based on contractual interest rates and reported in interest expense. The change in fair value of the junior subordinated debentures, which represents changes in instrument specific credit risk, is recorded in other comprehensive income. See Note 14, Derivatives and Hedging, for detail on gains and losses on Level 3 interest rate lock commitments. Items Measured at Fair Value on a Non-recurring Basis: The following tables present financial assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 12,131 $ 12,131 REO — — 1,795 1,795 December 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 14,853 $ 14,853 REO — — 814 814 The following table presents the losses resulting from non-recurring fair value adjustments for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Loans individually evaluated $ (492) $ — $ (2,492) $ (425) REO — — — — Total loss from non-recurring measurements $ (492) $ — $ (2,492) $ (425) Loans individually evaluated : Expected credit losses for loans evaluated individually are measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or when the Bank determines that foreclosure is probable, the expected credit loss is measured based on the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. As a practical expedient, the Bank measures the expected credit loss for a loan using the fair value of the collateral, if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Bank’s assessment as of the reporting date. In both cases, if the fair value of the collateral is less than the amortized cost basis of the loan, the Bank will recognize an allowance as the difference between the fair value of the collateral, less costs to sell (if applicable), at the reporting date and the amortized cost basis of the loan. If the fair value of the collateral exceeds the amortized cost basis of the loan, any expected recovery added to the amortized cost basis will be limited to the amount previously charged-off by the subsequent changes in the expected credit losses for loans evaluated individually are included within the provision for credit losses in the same manner in which the expected credit loss initially was recognized or as a reduction in the provision that would otherwise be reported. REO : The Company records REO (acquired through a lending relationship) at fair value on a non-recurring basis. Fair value adjustments on REO are based on updated real estate appraisals which are based on current market conditions. All REO properties are recorded at the lower of the estimated fair value of the real estate, less expected selling costs, or the carrying amount of the defaulted loans. From time to time, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on an observable market price or current appraised value of property. Banner considers any valuation inputs related to REO to be Level 3 inputs. The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed to operations. |
INCOME TAXES AND DEFERRED TAXES
INCOME TAXES AND DEFERRED TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES AND DEFERRED TAXES | INCOME TAXES AND DEFERRED TAXES The Company files a consolidated income tax return including all of its wholly-owned subsidiaries on a calendar year basis. Income taxes are accounted for using the asset and liability method. Under this method, a deferred tax asset or liability is determined based on the enacted tax rates which will be in effect when the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities are expected to be reported in the Company’s income tax returns. The effect on deferred taxes of a change in tax rates is recognized in income in the period of change. A valuation allowance is recognized as a reduction to deferred tax assets when management determines it is more likely than not that deferred tax assets will not be available to offset future income tax liabilities. Accounting standards for income taxes prescribe a recognition threshold and measurement process for financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return, and also provide guidance on the de-recognition of previously recorded benefits and their classification, as well as the proper recording of interest and penalties, accounting in interim periods, disclosures and transition. The Company periodically reviews its income tax positions based on tax laws and regulations and financial reporting considerations, and records adjustments as appropriate. This review takes into consideration the status of current taxing authorities’ examinations of the Company’s tax returns, recent positions taken by the taxing authorities on similar transactions, if any, and the overall tax environment. As of September 30, 2020, the Company had $275,000 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 September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Tax credit investments $ 34,113 $ 29,620 Unfunded commitments—tax credit investments 20,572 20,235 The following table presents other information related to the Company's tax credit investments for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 Tax credits and other tax benefits recognized $ 981 $ 494 $ 2,943 $ 1,482 Tax credit amortization expense included in provision for income taxes 849 405 2,507 1,215 |
CALCULATION OF WEIGHTED AVERAGE
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) | 9 Months Ended |
Sep. 30, 2020 | |
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 and nine months ended September 30, 2020 and 2019 (in thousands, except shares and per share data): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net income $ 36,548 $ 39,577 $ 76,971 $ 112,623 Basic weighted average shares outstanding 35,193,109 34,407,462 35,285,567 34,760,607 Plus unvested restricted stock 123,570 90,532 239,204 89,399 Diluted weighted shares outstanding 35,316,679 34,497,994 35,524,771 34,850,006 Earnings per common share Basic $ 1.04 $ 1.15 $ 2.18 $ 3.24 Diluted $ 1.03 $ 1.15 $ 2.17 $ 3.23 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [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: • 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. 2014 Omnibus Incentive Plan The 2014 Plan was approved by shareholders on April 22, 2014. The 2014 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, other stock-based awards and other cash awards, and provides for vesting requirements which may include time-based or performance-based conditions. The Company reserved 900,000 shares of its common stock for issuance under the 2014 Plan in connection with the exercise of awards. As of September 30, 2020, 299,937 restricted stock shares and 407,131 restricted stock units have been granted under the 2014 Plan of which 296,633 restricted stock shares and 172,036 restricted stock units have vested. 2018 Omnibus Incentive Plan The 2018 Plan was approved by shareholders on April 24, 2018. The 2018 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, other stock-based awards and other cash awards, and provides for vesting requirements which may include time-based or performance-based conditions. The Company reserved 900,000 shares of common stock for issuance under the 2018 Plan in connection with the exercise of awards. As of September 30, 2020, no shares and 362,514 restricted stock units have been granted under the 2018 Plan none of which have vested. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 December 31, 2019 Commitments to extend credit $ 3,144,860 $ 3,051,681 Standby letters of credit and financial guarantees 15,677 14,298 Commitments to originate loans 114,040 39,676 Risk participation agreement 40,968 41,022 Derivatives also included in Note 14: Commitments to originate loans held for sale 282,025 66,196 Commitments to sell loans secured by one- to four-family residential properties 109,994 70,895 Commitments to sell securities related to mortgage banking activities 259,000 239,320 In addition to the commitments disclosed in the table above, the Company is committed to funding its’ unfunded tax credit investments (see Note 10, Income Taxes). During 2019, the Company entered into an agreement to invest $10 million in a limited partnership. The Company had funded $1.8 million of the commitment, with $8.2 million of the commitment remaining to be funded at September 30, 2020, compared to $467,000 of the commitment funded, with $9.5 million to be funded at December 31, 2019. 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 allowance for credit losses - unfunded loan commitments at September 30, 2020 and December 31, 2019 was $12.1 million and $2.7 million, respectively. Standby letters of credit are conditional commitments issued to guarantee a customer’s performance or payment to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Through the acquisition of AmericanWest Bank, 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 the Company’s operations. The Company enters into forward commitments at specific prices and settlement dates to deliver either: (1) residential mortgage loans for purchase by secondary market investors (i.e., Freddie Mac or Fannie Mae), or (2) mortgage-backed securities to broker/dealers. The purpose of these forward commitments is to offset the movement in interest rates between the execution of its residential mortgage rate lock commitments with borrowers and the sale of those loans to the secondary market investor. There were no counterparty default losses on forward contracts during the three and nine months ended September 30, 2020 or September 30, 2019. Market risk with respect to forward contracts arises principally from changes in the value of contractual positions due to changes in interest rates. The Company limits its exposure to market risk by monitoring differences between commitments to customers and forward contracts with market investors and securities broker/dealers. In the event the Company has forward delivery contract commitments in excess of available mortgage loans, the transaction is completed by either paying or receiving a fee to or from the investor or broker/dealer equal to the increase or decrease in the market value of the forward contract. In the normal course of business, the Company and/or its subsidiaries have various legal proceedings and other contingent matters outstanding. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. These claims and counter-claims typically arise during the course of collection efforts on problem loans or with respect to action to enforce liens on properties in which the Banks hold a security interest. Based upon the information known to management at this time, the Company and the Banks are not a party to any legal proceedings that management believes would have a material adverse effect on the results of operations or consolidated financial position at September 30, 2020. In connection with certain asset sales, the Banks typically make representations and warranties about the underlying assets conforming to specified guidelines. If the underlying assets do not conform to the specifications, the Banks may have an obligation to repurchase the assets or indemnify the purchaser against any loss. The Banks believe that the potential for material loss under these arrangements is remote. Accordingly, the fair value of such obligations is not material. |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING The Company, through its Banner Bank subsidiary, is party to various derivative instruments that are used for asset and liability management and customer financing needs. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index, or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The Company obtains dealer quotations to value its derivative contracts. The Company’s predominant derivative and hedging activities involve interest rate swaps related to certain term loans and forward sales contracts associated with mortgage banking activities. Generally, these instruments help the Company manage exposure to market risk and meet customer financing needs. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors. Derivatives Designated in Hedge Relationships The Company’s fixed-rate loans result in exposure to losses in value or net interest income as interest rates change. The risk management objective for hedging fixed-rate loans is to effectively convert the fixed-rate received to a floating rate. The Company has hedged exposure to changes in the fair value of certain fixed-rate loans through the use of interest rate swaps. For a qualifying fair value hedge, changes in the value of the derivatives are recognized in current period earnings along with the corresponding changes in the fair value of the designated hedged item attributable to the risk being hedged. Under a prior program, customers received fixed interest rate commercial loans and Banner Bank subsequently hedged that fixed-rate loan by entering into an interest rate swap with a dealer counterparty. Banner Bank receives fixed-rate payments from the customers on the loans and makes similar fixed-rate payments to the dealer counterparty on the swaps in exchange for variable-rate payments based on the one-month LIBOR index. Some of these interest rate swaps are designated as fair value hedges. Through application of the “short cut method of accounting,” there is an assumption that the hedges are effective. Banner Bank discontinued originating interest rate swaps under this program in 2008. As of September 30, 2020 and December 31, 2019, the notional values or contractual amounts and fair values of the Company’s derivatives designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Notional/ Fair Value (1) Notional/ Fair Value (1) Notional/ Fair Value (2) Notional/ Fair Value (2) Interest rate swaps $ 427 $ 15 $ 3,567 $ 220 $ 427 $ 15 $ 3,567 $ 220 (1) Included in Loans receivable on the consolidated statements of financial condition. (2) Included in Other liabilities on the consolidated statements of financial condition. Derivatives Not Designated in Hedge Relationships Interest Rate Swaps: Banner Bank uses an interest rate swap program for commercial loan customers that provides the client with a variable-rate loan and enters into an interest rate swap in which the client receives a variable-rate payment in exchange for a fixed-rate payment. The Bank offsets its risk exposure by entering into an offsetting interest rate swap with a dealer counterparty for the same notional amount and length of term as the client interest rate swap providing the dealer counterparty with a fixed-rate payment in exchange for a variable-rate payment. These swaps do not qualify as designated hedges; therefore, each swap is accounted for as a free standing derivative. Mortgage Banking: 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 economically hedges 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 at specific prices and dates. As of September 30, 2020 and December 31, 2019, the notional values or contractual amounts and fair values of the Company’s derivatives not designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Notional/ Fair Value (1) Notional/ Fair Value (1) Notional/ Fair Value (2) Notional/ Fair Value (2) Interest rate swaps $ 419,497 $ 43,491 $ 371,957 $ 14,982 $ 419,497 $ 23,912 $ 371,957 $ 10,746 Mortgage loan commitments 224,834 8,454 50,755 791 79,412 516 65,855 190 Forward sales contracts 109,994 2,019 70,895 317 259,000 994 239,320 484 $ 754,325 $ 53,964 $ 493,607 $ 16,090 $ 757,909 $ 25,422 $ 677,132 $ 11,420 (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 $1.5 million at September 30, 2020 and $347,000 at December 31, 2019), which are included in Loans receivable. (2) Included in Other liabilities on the consolidated statements of financial condition. Gains (losses) recognized in income on derivatives not designated in hedge relationships for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands): Location on Consolidated Three Months Ended Nine Months Ended 2020 2019 2020 2019 Mortgage loan commitments Mortgage banking operations $ 2,639 $ (80) $ 7,664 $ 1,020 Forward sales contracts Mortgage banking operations 258 47 (779) (195) $ 2,897 $ (33) $ 6,885 $ 825 The Company is exposed to credit-related losses in the event of nonperformance by the counterparty to these agreements. Credit risk of the financial contract is controlled through the credit approval, limits, and monitoring procedures and management does not expect the counterparties to fail their obligations. In connection with the interest rate swaps between Banner Bank and the dealer counterparties, the agreements contain a provision where if Banner Bank fails to maintain its status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and Banner Bank would be required to settle its obligations. Similarly, Banner Bank could be required to settle its obligations under certain of its agreements if specific regulatory events occur, such as a publicly issued prompt corrective action directive, cease and desist order, or a capital maintenance agreement that required Banner Bank to maintain a specific capital level. If Banner Bank had breached any of these provisions at September 30, 2020 or December 31, 2019, it could have been required to settle its obligations under the agreements at the termination value. As of September 30, 2020 and December 31, 2019, the termination value of derivatives in a net liability position related to these agreements was $54.9 million and $15.2 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 $45.4 million and $28.1 million as of September 30, 2020 and December 31, 2019, 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. In addition, some of interest rate swap derivatives between Banner Bank and the dealer counterparties are cleared through central clearing houses. These clearing houses characterize the variation margin payments as settlements of the derivative's market exposure and not as collateral. The variation margin is treated as an adjustment to our cash collateral, as well as a corresponding adjustment to our derivative liability. As of September 30, 2020 and December 31, 2019, the variation margin adjustment was a negative adjustment of $19.7 million and $4.3 million, respectively. The following tables present additional information related to the Company’s derivative contracts, by type of financial instrument, as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset Net Amounts Netting Adjustment Per Applicable Master Netting Agreements Fair Value Net Amount Derivative assets Interest rate swaps $ 43,506 $ — $ 43,506 $ — $ — $ 43,506 $ 43,506 $ — $ 43,506 $ — $ — $ 43,506 Derivative liabilities Interest rate swaps $ 43,653 $ (19,726) $ 23,927 $ — $ (23,730) $ 197 $ 43,653 $ (19,726) $ 23,927 $ — $ (23,730) $ 197 December 31, 2019 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset Net Amounts Netting Adjustment Per Applicable Master Netting Agreements Fair Value Net Amount Derivative assets Interest rate swaps $ 15,242 $ (40) $ 15,202 $ — $ — $ 15,202 $ 15,242 $ (40) $ 15,202 $ — $ — $ 15,202 Derivative liabilities Interest rate swaps $ 15,242 $ (4,276) $ 10,966 $ — $ (15,209) $ (4,243) $ 15,242 $ (4,276) $ 10,966 $ — $ (15,209) $ (4,243) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue: Deposit fees and other service charges for the three and nine months ended September 30, 2020 and 2019 are summarized as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Deposit service charges $ 3,904 $ 4,931 $ 12,269 $ 14,347 Debit and credit card interchange fees 5,207 5,480 14,762 22,682 Debit and credit card expense (2,134) (1,991) (6,272) (6,389) Merchant services income 3,584 3,659 9,252 9,860 Merchant services expense (2,839) (2,960) (7,378) (7,941) Other service charges 1,020 1,212 3,458 4,436 Total deposit fees and other service charges $ 8,742 $ 10,331 $ 26,091 $ 36,995 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 | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASESThe Company leases 104 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. Lease Position as of September 30, 2020 and December 31, 2019 The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at September 30, 2020 and December 31, 2019 (dollars in thousands): Classification on the Balance Sheet September 30, 2020 December 31, 2019 Assets Operating right-of-use lease assets Other assets $ 58,114 $ 61,766 Liabilities Operating lease liabilities Accrued expenses and other liabilities $ 61,869 $ 65,818 Weighted-average remaining lease term Operating leases 5.9 years 6.2 years Weighted-average discount rate Operating leases 3.4 % 3.7 % Lease Costs The table below presents certain information related to the lease costs for operating leases for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost (1) $ 4,104 $ 3,818 $ 12,517 $ 11,650 Short-term lease cost (1) 28 62 78 284 Variable lease cost (1) 619 623 2,169 1,751 Less sublease income (1) (235) (228) (716) (696) Total lease cost $ 4,516 $ 4,275 $ 14,048 $ 12,989 (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 were $4.1 million and $12.5 million for the three and nine months ended September 30, 2020 and were $3.8 million and $11.5 million for the three and nine months ended September 30, 2019, respectively. The Company recorded right-of-use lease assets in exchange for operating lease liabilities of $4.1 million and $7.6 million for the three and nine months ended September 30, 2020 and of $8.8 million and $72.5 million for the three and nine months ended September 30, 2019, respectively. Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the next five years beginning with 2020 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 2020 $ 4,147 2021 15,739 2022 12,830 2023 9,813 2024 7,848 Thereafter 18,012 Total minimum lease payments 68,389 Less: amount of lease payments representing interest (6,520) Lease obligations $ 61,869 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements include the accounts of Banner Corporation (the Company or Banner), a bank holding company incorporated in the State of Washington and its wholly-owned subsidiaries, Banner Bank and Islanders Bank (the Banks). These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2020 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 note disclosures 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 2019 Consolidated Financial Statements and/or schedules to conform to the 2020 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 credit losses, (iii) the valuation of financial assets and liabilities recorded at fair value (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, 2019 filed with the SEC (2019 Form 10-K). There have been no significant changes in our application of these accounting policies during the first nine months of 2020, except for the change related to the adoption of Financial Instruments - Credit Losses (Topic 326) as described in below and Note 2. The information included in this Form 10-Q should be read in conjunction with our 2019 Form 10-K. Interim results are not necessarily indicative of results for a full year or any other interim period. As a result of the adoption of Financial Instruments—Credit Losses (Topic 326) on January 1, 2020, the Company has updated the following significant accounting policies. Securities: Debt securities are classified as held-to-maturity when the Company has the ability and positive intent to hold them to maturity. Debt securities classified as available-for-sale are available for future liquidity requirements and may be sold prior to maturity. Debt securities classified as trading are also available for future liquidity requirements and may be sold prior to maturity. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Debt securities classified as held-to-maturity are carried at cost, net of the allowance for credit losses- securities, adjusted for amortization of premiums to the earliest callable date and accretion of discounts to maturity. Debt securities classified as available-for-sale are measured at fair value. Unrealized holding gains and losses on debt securities classified as available-for-sale are excluded from earnings and are reported net of tax as accumulated other comprehensive income (AOCI), a component of shareholders’ equity, until realized. Debt securities classified as trading are also measured at fair value. Unrealized holding gains and losses on securities classified as trading are included in earnings. (See Note 9 for a more complete discussion of accounting for the fair value of financial instruments.) Realized gains and losses on sale are computed on the specific identification method and are included in earnings on the trade date sold. If debt securities were transferred from held-to-maturity to available-for-sale, unrealized gains or losses from the time of transfer would be accreted or amortized over the remaining life of the debt security based on the amount and timing of future estimated cash flows. The accretion or amortization of the amount recorded in AOCI increases the carrying value of the investment and does not affect earnings. Equity securities are measured at fair value with changes in the fair value recognized through net income. Allowance for Credit Losses - Securities: Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. The Company’s held-to maturity portfolio contains mortgage-backed securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The Company’s held-to-maturity portfolio also contains municipal bonds that are typically rated by major rating agencies as Aa or better. The Company has never incurred a loss on a municipal bond, therefore the expectation of credit losses on these securities is insignificant. The Company uses industry historical credit loss information adjusted for current conditions to establish the allowance for credit losses on the municipal bond portfolio. Less than 2% of the Company’s held-to-maturity portfolio are community development bonds representing pools of one- to four-family loans. The expected credit losses on these bonds is similar to Banner’s one- to four-family residential loan portfolio. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized costs, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. Projected cash flows are discounted by the current effective interest rate. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to AOCI. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the non-collectability of an available-for-sale security is confirmed or when either of the criteria regarding intent of requirement to sell is met. Loans Receivable : The Banks originate residential one- to four-family and multifamily mortgage loans for both portfolio investment and sale in the secondary market. The Banks also originate construction and land development, commercial real estate, commercial business, agricultural and consumer loans for portfolio investment. Loans receivable not designated as held for sale are recorded at amortized cost, net of the allowance for credit losses. Amortized cost is the principal amount outstanding, net of deferred fees, discounts and premiums. Accrued interest on loans is reported in accrued interest receivable on the consolidated statements of financial condition. Premiums, discounts and deferred loan fees are amortized to maturity using the level-yield methodology. Loans Held for Sale . Residential one- to four-family and multifamily mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Residential one- to four-family loans under best effort delivery commitments are carried at the lower of aggregate cost or estimated market value. Residential one- to four-family loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the related economic hedges on the loans. Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. The multifamily held-for-sale loans are carried at fair value in order to match changes in the value of the loans with the value of the related economic hedges on the loans. Fair values for multifamily loans held for sale are calculated based on discounted cash flows using a discount rate that is a combination of market spreads for similar loan types added to selected index rates. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Non-refundable fees and direct loan origination costs related to loans held for sale are recognized as part of the cost basis of the loan. Gains and losses on sales of loans held for sale are determined using the aggregate method and are recorded in the mortgage banking operations component of non-interest income. Loans Acquired in Business Combinations : Loans acquired in business combinations are recorded at their fair value at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-deteriorated or purchased non-credit-deteriorated. Purchased credit-deteriorated (PCD) loans have experienced more than insignificant credit deterioration since origination. For PCD loans, an allowance for credit losses is determined at the acquisition date using the same measurement methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The loan’s fair value grossed up for the allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through a provision for credit losses. For purchased non-credit-deteriorated loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loans. While credit discounts are included in the determination of the fair value for non-credit-deteriorated loans, since these discounts are expected to be accreted over the life of the loans, they cannot be used to offset the allowance for credit losses that must be recorded at the acquisition date. As a result, an allowance for credit losses is determined at the acquisition date using the same methodology as other loans held for investment and is recognized as a provision for credit losses in the statement of operations. Any subsequent deterioration (improvement) in credit quality is recognized by recording (recapturing) a provision for credit losses. Income Recognition on Nonaccrual Loans and Securities : Interest on loans and securities is accrued as earned unless management doubts the collectability of the asset or the unpaid interest. Interest accruals on loans are generally discontinued when loans become 90 days past due for payment of interest or principal and the loans are then placed on nonaccrual status. Loans are reported as past due when installment payments, interest payments, or maturity payments are past due based on contractual terms. All previously accrued but uncollected interest is written off by reversing interest income upon transfer to nonaccrual status. For any future payments collected, interest income is recognized only upon management’s assessment that there is a strong likelihood that the full amount of a loan will be repaid or recovered. A loan may be put on nonaccrual status sooner than this policy would dictate if, in management’s judgment, the interest may be uncollectable. While less common, similar interest reversal and nonaccrual treatment is applied to investment securities if their ultimate collectability becomes questionable. Loans modified due to the COVID-19 pandemic are considered current if they are less than 30 days past due on the contractual payments at the time the loan modification program was put in place and therefore continue to accrue interest unless the interest is being waived. Provision and Allowance for Credit Losses - Loans : The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. The Banks have elected to exclude accrued interest receivable from the amortized cost basis in their estimate of the allowance for credit losses. The provision for credit losses reflects the amount required to maintain the allowance for credit losses at an appropriate level based upon management’s evaluation of the adequacy of collective and individual loss reserves. The Company has established systematic methodologies for the determination of the adequacy of the Company’s allowance for credit losses. The methodologies are set forth in a formal policy and take into consideration the need for a valuation allowance for loans evaluated on a collective (pool) basis which have similar risk characteristics as well as allowances that are tied to individual loans that do not share risk characteristics. The Company increases its allowance for credit losses by charging provisions for credit losses on its consolidated statement of operations. Losses related to specific assets are applied as a reduction of the carrying value of the assets and charged against the allowance for credit loss reserve when management believes the non-collectability of a loan balance is confirmed. Recoveries on previously charged off loans are credited to the allowance for credit losses. Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loan based on evaluating historical credit loss experience and making adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. These factors include, among others, changes in the size and composition of the loan portfolio, differences in underwriting standards, delinquency rates, actual loss experience and current economic conditions. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. In estimating the component of the allowance for credit losses for loans that share common risk characteristics, loans are pooled based on loan type and areas of risk concentration. For loans evaluated collectively, the allowance for credit losses is calculated using life of loan historical losses adjusted for economic forecasts and current conditions. For commercial real estate, multifamily real estate, construction and land, commercial business and agricultural loans with risk rating segmentation, historical credit loss assumptions are estimated using a model that categorizes loan pools based on loan type and risk rating. For one- to four- family residential loans, historical credit loss assumptions are estimated using a model that categorizes loan pools based on loan type and delinquency status. These models calculate an expected life-of-loan loss percentage for each loan category by calculating the probability of default, based on the migration of loans from performing to loss by risk rating or delinquency categories using historical life-of-loan analysis and the severity of loss, based on the aggregate net lifetime losses incurred for each loan pool. For commercial real estate, commercial business, and consumer loans without risk rating segmentation, historical credit loss assumptions are estimated using a model that calculates an expected life-of-loan loss percentage for each loan category by considering the historical cumulative losses based on the aggregate net lifetime losses incurred for each loan pool. The model captures historical loss data back to the first quarter of 2008. For loans evaluated collectively, management uses economic indicators to adjust the historical loss rates so that they better reflect management’s expectations of future conditions over the remaining lives of the loans in the portfolio based on reasonable and supportable forecasts. These economic indicators are selected based on correlation to the Company’s historical credit loss experience and are evaluated for each loan category. The economic indicators evaluated include unemployment, gross domestic product, real estate price indices and growth, yield curve spreads, treasury yields, the corporate yield, the market volatility index, the Dow Jones index, the consumer confidence index, and the prime rate. Management considers various economic scenarios and forecasts when evaluating the economic indicators and probability weights the various scenarios to arrive at the forecast that most reflects management’s expectations of future conditions. The allowance for credit losses is then adjusted for the period in which those forecasts are considered to be reasonable and supportable. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, the adjustments discontinue to be applied so that the model reverts back to the historical loss rates using a straight line reversion method. Management selected an initial reasonable and supportable forecast period of 12 months with a reversion period of 12 months. Both the reasonable and supportable forecast period and the reversion period are periodically reviewed by management. Further, for loans evaluated collectively, management also considers qualitative and environmental factors for each loan category to adjust for differences between the historical periods used to calculate historical loss rates and expected conditions over the remaining lives of the loans in the portfolio. In determining the aggregate adjustment needed management considers the financial condition of the borrowers, the nature and volume of the loans, the remaining terms and the extent of prepayments on the loans, the volume and severity of past due and classified loans as well as the value of the underlying collateral on loans in which the collateral dependent practical expedient has not been used. Management also considers the Company’s lending policies, the quality of the Company’s credit review system, the quality of the Company’s management and lending staff, and the regulatory and economic environments in the areas in which the Company’s lending activities are concentrated. Loans that do not share risk characteristics with other loans in the portfolio that are individually evaluated for impairment are not included in the collective evaluation. Factors involved in determining whether a loan should be individually evaluated include, but are not limited to, the financial condition of the borrower and the value of the underlying collateral. Expected credit losses for loans evaluated individually are measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or when the Banks determine that foreclosure is probable, the expected credit loss is measured based on the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. As a practical expedient, the Banks measure the expected credit loss for a loan using the fair value of the collateral, if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Banks' assessment as of the reporting date. In both cases, if the fair value of the collateral is less than the amortized cost basis of the loan, the Banks will recognize an allowance as the difference between the fair value of the collateral, less costs to sell (if applicable), at the reporting date and the amortized cost basis of the loan. If the fair value of the collateral exceeds the amortized cost basis of the loan, any expected recovery added to the amortized cost basis will be limited to the amount previously charged-off. Subsequent changes in the expected credit losses for loans evaluated individually are included within the provision for credit losses in the same manner in which the expected credit loss initially was recognized or as a reduction in the provision that would otherwise be reported. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Banks. Some of the Banks’ loans are reported as troubled debt restructures (TDRs). Loans are reported as TDRs when the Banks grant a concession(s) 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. The allowance for credit losses on a TDR is determined using the same method as all other loans held for investment, except when the value of the concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method the allowance for credit losses is determined by discounting the expected future cash flows at the original interest rate of the loan. The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined under the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. To qualify as an eligible loan under the CARES Act, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the national emergency by the President or (b) December 31, 2020. Loan Origination and Commitment Fees: Loan origination fees, net of certain specifically defined direct loan origination costs, are deferred and recognized as an adjustment of the loans’ interest yield using the level-yield method over the contractual term of each loan adjusted for actual loan prepayment experience. Net deferred fees or costs related to loans held for sale are recognized as part of the cost basis of the loan. Loan commitment fees are deferred until the expiration of the commitment period unless management believes there is a remote likelihood that the underlying commitment will be exercised, in which case the fees are amortized to fee income using the straight-line method over the commitment period. If a loan commitment is exercised, the deferred commitment fee is accounted for in the same manner as a loan origination fee. Deferred commitment fees associated with expired commitments are recognized as fee income. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities | The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2020 and December 31, 2019 are summarized as follows (in thousands): September 30, 2020 Amortized Cost Fair Trading: Corporate bonds $ 27,203 $ 23,276 $ 27,203 $ 23,276 September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Available-for-Sale: U.S. Government and agency obligations $ 169,740 $ 1,140 $ (967) $ — $ 169,913 Municipal bonds 257,056 15,707 (355) — 272,408 Corporate bonds 53,756 2,300 (85) — 55,971 Mortgage-backed or related securities 1,199,816 51,199 (515) — 1,250,500 Asset-backed securities 9,701 51 (160) — 9,592 $ 1,690,069 $ 70,397 $ (2,082) $ — $ 1,758,384 September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Allowance for Credit Losses Held-to-Maturity: U.S. Government and agency obligations $ 341 $ 10 $ — $ 351 $ — Municipal bonds 377,019 19,260 (593) 395,686 (60) Corporate bonds 3,254 — (13) 3,241 (42) Mortgage-backed or related securities 48,521 3,007 — 51,528 — $ 429,135 $ 22,277 $ (606) $ 450,806 $ (102) December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Trading: Corporate bonds $ 27,203 $ 25,636 $ 27,203 $ 25,636 Available-for-Sale: U.S. Government and agency obligations $ 90,468 $ 286 $ (1,156) $ 89,598 Municipal bonds 101,927 5,233 (3) 107,157 Corporate bonds 4,357 14 (6) 4,365 Mortgage-backed or related securities 1,324,999 20,325 (3,013) 1,342,311 Asset-backed securities 8,195 — (69) 8,126 $ 1,529,946 $ 25,858 $ (4,247) $ 1,551,557 Held-to-Maturity: U.S. Government and agency obligations $ 385 $ 4 $ — $ 389 Municipal bonds 177,208 3,733 (2,213) 178,728 Corporate bonds 3,353 — (11) 3,342 Mortgage-backed or related securities 55,148 921 (723) 55,346 $ 236,094 $ 4,658 $ (2,947) $ 237,805 |
Schedule of Securities with Continuous Loss Position | At September 30, 2020, the gross unrealized losses and the fair value for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows (in thousands): September 30, 2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 3,162 $ (7) $ 53,105 $ (960) $ 56,267 $ (967) Municipal bonds 16,636 (355) — — 16,636 (355) Corporate bonds 11,205 (85) — — 11,205 (85) Mortgage-backed or related securities 75,459 (500) 1,558 (15) 77,017 (515) Asset-backed securities 870 (16) 6,469 (144) 7,339 (160) $ 107,332 $ (963) $ 61,132 $ (1,119) $ 168,464 $ (2,082) At December 31, 2019, 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): December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 2,747 $ (20) $ 60,979 $ (1,136) $ 63,726 $ (1,156) Municipal bonds 1,902 — 494 (3) 2,396 (3) Corporate bonds 594 (6) — — 594 (6) Mortgage-backed or related securities 300,852 (2,829) 33,360 (184) 334,212 (3,013) Asset-backed securities 1,204 (17) 5,989 (52) 7,193 (69) $ 307,299 $ (2,872) $ 100,822 $ (1,375) $ 408,121 $ (4,247) Held-to-Maturity U.S. Government and agency obligations $ — $ — $ — $ — $ — $ — Municipal bonds 44,605 (1,889) 19,017 (324) 63,622 (2,213) Corporate bonds — — 489 (11) 489 (11) Mortgage-backed or related securities 11,117 (723) — — 11,117 (723) $ 55,722 $ (2,612) $ 19,506 $ (335) $ 75,228 $ (2,947) |
Schedule of Securities by Contractual Maturity Date | The amortized cost and estimated fair value of securities at September 30, 2020, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. September 30, 2020 Trading Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair Amortized Fair Maturing in one year or less $ — $ — $ — $ — $ — $ — Maturing after one year through five years — — 60,411 62,725 57,360 59,541 Maturing after five years through ten years — — 478,140 500,140 40,458 42,822 Maturing after ten years through twenty years 27,203 23,276 446,834 463,236 118,611 123,188 Maturing after twenty years — — 704,684 732,283 212,706 225,255 $ 27,203 $ 23,276 $ 1,690,069 $ 1,758,384 $ 429,135 $ 450,806 |
Schedule of Pledged Securities | The following table presents, as of September 30, 2020, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): September 30, 2020 Carrying Value Amortized Cost Fair Purpose or beneficiary: State and local governments public deposits $ 152,148 $ 151,455 $ 161,497 Interest rate swap counterparties 29,623 28,473 29,849 Repurchase agreements 204,034 194,374 204,034 Other 2,627 2,627 2,707 Total pledged securities $ 388,432 $ 376,929 $ 398,087 |
Debt Instrument, Credit Rating | The Company monitors the credit quality of held-to-maturity debt securities through the use of credit rating. Credit ratings are reviewed and updated quarterly. The following table summarizes the amortized cost of held-to-maturity debt securities by credit rating at September 30, 2020 (in thousands): September 30, 2020 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total AAA/AA/A $ — $ 353,648 $ 500 $ — $ 354,148 Not Rated 341 23,371 2,754 48,521 74,987 $ 341 $ 377,019 $ 3,254 $ 48,521 $ 429,135 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities by major type for the three and nine months ended September 30, 2020 (in thousands): For the Three Months Ended September 30, 2020 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total Allowance for credit losses - securities Beginning Balance $ — $ 61 $ 41 $ — $ 102 (Recapture)/Provision for credit losses — (1) 1 — — Ending Balance $ — $ 60 $ 42 $ — $ 102 For the Nine Months Ended September 30, 2020 U.S. Government and agency obligations Municipal bonds Corporate bonds Mortgage-backed or related securities Total Allowance for credit losses - securities Beginning Balance $ — $ — $ — $ — $ — Impact of adopting ASC 326 — 28 35 — 63 Provision for credit losses — 32 7 — 39 Ending Balance $ — $ 60 $ 42 $ — $ 102 |
LOANS RECEIVABLE AND THE ALLO_2
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Receivables [Abstract] | ||
Schedule of Loans Receivable, Including Loans Held for Sale | at September 30, 2020 and December 31, 2019 by class (dollars in thousands). The presentation of loans receivable at December 31, 2019 has been updated to conform to the loan portfolio segmentation that became effective on January 1, 2020. September 30, 2020 December 31, 2019 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,049,877 10.3 $ 980,021 10.5 % Investment properties 1,991,258 19.6 2,024,988 21.8 Small balance CRE 597,971 5.9 613,484 6.6 Multifamily real estate 426,659 4.2 388,388 4.2 Construction, land and land development: Commercial construction 220,285 2.2 210,668 2.3 Multifamily construction 291,105 2.9 233,610 2.5 One- to four-family construction 518,085 5.1 544,308 5.8 Land and land development 240,803 2.4 245,530 2.6 Commercial business: Commercial business 2,343,619 23.1 1,364,650 14.7 Small business scored 763,824 7.5 772,657 8.3 Agricultural business, including secured by farmland 326,169 3.2 337,271 3.6 One- to four-family residential 771,431 7.6 925,531 9.9 Consumer: Consumer—home equity revolving lines of credit 504,523 4.9 519,336 5.6 Consumer—other 118,308 1.1 144,915 1.6 Total loans 10,163,917 100.0 9,305,357 100.0 % Less allowance for credit losses - loans (167,965) (100,559) Net loans $ 9,995,952 $ 9,204,798 The presentation of loans receivable at December 31, 2019 in the table below is based on loan segmentation as presented in the 2019 Form 10-K. December 31, 2019 Amount Percent of Total Commercial real estate: Owner-occupied $ 1,580,650 17.0 % Investment properties 2,309,221 24.8 Multifamily real estate 473,152 5.1 Commercial construction 210,668 2.3 Multifamily construction 233,610 2.5 One- to four-family construction 544,308 5.8 Land and land development: Residential 154,688 1.7 Commercial 26,290 0.3 Commercial business 1,693,824 18.2 Agricultural business, including secured by farmland 370,549 4.0 One- to four-family residential 945,622 10.2 Consumer: Consumer secured by one- to four-family 550,960 5.8 Consumer—other 211,815 2.3 Total loans 9,305,357 100.0 % Less allowance for loan losses (100,559) Net loans $ 9,204,798 | |
Schedule of Purchased Credit-Impaired Loans, Changes in Accretable Yield | The following table presents the changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended 2019 2019 Balance, beginning of period $ 4,743 $ 5,216 Accretion to interest income (423) (1,372) Reclassifications from non-accretable difference 11 487 Balance, end of period $ 4,331 $ 4,331 | |
Impaired loans excluding purchased credit impaired loans [Table Text Block] | The following table provides information on impaired loans, excluding PCI loans, with and without allowance reserves at December 31, 2019. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): December 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 4,185 $ 3,816 $ 194 $ 18 Investment properties 3,536 1,883 690 40 Multifamily real estate 82 85 — — Multifamily construction 573 98 — — One- to four-family construction 1,799 1,799 — — Land and land development: Residential 676 340 — — Commercial business 25,117 4,614 19,330 4,128 Agricultural business/farmland 3,044 661 2,243 141 One- to four-family residential 7,290 5,613 1,648 41 Consumer: Consumer secured by one- to four-family 3,081 2,712 127 5 Consumer—other 222 159 52 1 $ 49,605 $ 21,780 $ 24,284 $ 4,374 (1) Includes loans without an allowance reserve that had been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $13.5 million of homogeneous and small balance loans, as of December 31, 2019, that were collectively evaluated for impairment for which a general reserve was established. (2) Loans with a specific allowance reserve were 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 and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 3,067 $ — $ 3,197 $ 4 Investment properties 2,707 10 4,406 108 Multifamily real estate 58 — 19 — Commercial construction 439 — 1,006 — One- to four-family construction 1,489 11 1,138 12 Land and land development: Residential 673 — 696 — Commercial business 3,737 9 3,767 20 Agricultural business/farmland 3,250 25 4,319 81 One- to four-family residential 6,555 49 6,484 171 Consumer: Consumer secured by one- to four-family 2,744 6 2,645 14 Consumer—other 387 1 359 3 $ 25,106 $ 111 $ 28,036 $ 413 | |
Schedule of Troubled Debt Restructurings | The following table presents new TDRs that occurred during the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands): Three Months Ended September 30, 2020 Nine months ended September 30, 2020 Number of Pre-modification Outstanding Post-modification Outstanding Number of Pre- Post- Recorded Investment Commercial business: Commercial business — $ — $ — 2 $ 4,796 $ 4,796 Total — $ — $ — 2 $ 4,796 $ 4,796 Three Months Ended September 30, 2019 Nine months ended September 30, 2019 Number of Pre-modification Outstanding Post-modification Outstanding Number of Pre- Post- Recorded Investment Commercial real estate Investment properties — $ — $ — 1 $ 1,090 $ 1,090 Commercial business: Commercial business — — — 1 160 160 Agricultural business/farmland — — — 1 596 596 — $ — $ — 3 $ 1,846 $ 1,846 | |
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 by grade as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination. September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Commercial real estate - owner occupied Risk Rating Pass $ 184,182 $ 166,817 $ 165,634 $ 124,766 $ 93,179 $ 228,160 $ 3,159 $ 965,897 Special Mention — — 1,369 2,285 — 1,616 149 5,419 Substandard 5,661 24,638 1,670 2,443 14,055 30,094 — 78,561 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - owner occupied $ 189,843 $ 191,455 $ 168,673 $ 129,494 $ 107,234 $ 259,870 $ 3,308 $ 1,049,877 Commercial real estate - investment properties Risk Rating Pass $ 190,298 $ 267,544 $ 309,233 $ 212,385 $ 281,543 $ 523,930 $ 21,201 $ 1,806,134 Special Mention — 2,153 — — 3,377 4,444 — 9,974 Substandard 12,652 10,245 23,729 59,100 26,502 38,421 4,501 175,150 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial real estate - investment properties $ 202,950 $ 279,942 $ 332,962 $ 271,485 $ 311,422 $ 566,795 $ 25,702 $ 1,991,258 Multifamily real estate Risk Rating Pass $ 62,552 $ 68,649 $ 39,634 $ 106,938 $ 45,049 $ 102,426 $ 1,411 $ 426,659 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily real estate $ 62,552 $ 68,649 $ 39,634 $ 106,938 $ 45,049 $ 102,426 $ 1,411 $ 426,659 September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Commercial construction Risk Rating Pass $ 38,631 $ 106,658 $ 43,010 $ 6,102 $ 2,183 $ 1,143 $ — $ 197,727 Special Mention 698 — — — — — — 698 Substandard 11,899 3,548 4,868 1,447 98 — — 21,860 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial construction $ 51,228 $ 110,206 $ 47,878 $ 7,549 $ 2,281 $ 1,143 $ — $ 220,285 Multifamily construction Risk Rating Pass $ 62,271 $ 144,695 $ 69,367 $ 14,772 $ — $ — $ — $ 291,105 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Multifamily construction $ 62,271 $ 144,695 $ 69,367 $ 14,772 $ — $ — $ — $ 291,105 One- to four- family construction Risk Rating Pass $ 404,805 $ 87,377 $ — $ — $ — $ — $ 12,058 $ 504,240 Special Mention 9,121 623 — — — — 630 10,374 Substandard 3,139 332 — — — — — 3,471 Doubtful — — — — — — — — Loss — — — — — — — — Total One- to four- family construction $ 417,065 $ 88,332 $ — $ — $ — $ — $ 12,688 $ 518,085 September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Land and land development Risk Rating Pass $ 113,268 $ 65,773 $ 22,930 $ 7,930 $ 6,773 $ 5,404 $ 15,137 $ 237,215 Special Mention — — — — — — — — Substandard 14 31 3,050 191 — 302 — 3,588 Doubtful — — — — — — — — Loss — — — — — — — — Total Land and land development $ 113,282 $ 65,804 $ 25,980 $ 8,121 $ 6,773 $ 5,706 $ 15,137 $ 240,803 Commercial business Risk Rating Pass $ 1,304,667 $ 263,730 $ 217,169 $ 81,266 $ 42,319 $ 78,112 $ 256,590 $ 2,243,853 Special Mention 2,071 502 8,786 834 — 43 1,142 13,378 Substandard 9,193 11,780 22,307 6,080 1,228 463 35,337 86,388 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial business $ 1,315,931 $ 276,012 $ 248,262 $ 88,180 $ 43,547 $ 78,618 $ 293,069 $ 2,343,619 Agricultural business including secured by farmland Risk Rating Pass $ 27,358 $ 60,931 $ 32,786 $ 24,415 $ 24,473 $ 30,603 $ 113,813 $ 314,379 Special Mention — — — 810 — 537 — 1,347 Substandard 1,548 3,016 901 332 676 1,581 2,389 10,443 Doubtful — — — — — — — — Loss — — — — — — — — Total Agricultural business including secured by farmland $ 28,906 $ 63,947 $ 33,687 $ 25,557 $ 25,149 $ 32,721 $ 116,202 $ 326,169 The following table presents the Company’s portfolio of non-risk-rated loans by delinquency status as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination. September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Small balance CRE Past Due Category Current $ 42,396 $ 81,636 $ 89,270 $ 78,727 $ 75,123 $ 225,523 $ 2,864 $ 595,539 30-59 Days Past Due — 241 — — — 369 — 610 60-89 Days Past Due — — — 622 — — — 622 90 Days + Past Due — — — 185 — 1,015 — 1,200 Total Small balance CRE $ 42,396 $ 81,877 $ 89,270 $ 79,534 $ 75,123 $ 226,907 $ 2,864 $ 597,971 Small business scored Past Due Category Current $ 128,596 $ 154,666 $ 138,279 $ 100,654 $ 51,378 $ 70,986 $ 113,452 $ 758,011 30-59 Days Past Due 844 400 207 643 2 240 155 2,491 60-89 Days Past Due 224 35 767 63 — 151 58 1,298 90 Days + Past Due 85 106 588 713 172 250 110 2,024 Total Small business scored $ 129,749 $ 155,207 $ 139,841 $ 102,073 $ 51,552 $ 71,627 $ 113,775 $ 763,824 One- to four- family residential Past Due Category Current $ 68,277 $ 100,406 $ 105,335 $ 124,930 $ 65,906 $ 297,086 $ 3,880 $ 765,820 30-59 Days Past Due — 35 — — — 195 — 230 60-89 Days Past Due 299 2 241 480 — 727 — 1,749 90 Days + Past Due — — 1,012 512 — 2,108 — 3,632 Total One- to four- family residential $ 68,576 $ 100,443 $ 106,588 $ 125,922 $ 65,906 $ 300,116 $ 3,880 $ 771,431 September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Consumer—home equity revolving lines of credit Past Due Category Current $ 12,696 $ 1,983 $ 2,515 $ 3,176 $ 1,665 $ 2,945 $ 476,385 $ 501,365 30-59 Days Past Due — — — 44 — 84 745 873 60-89 Days Past Due — — — — — 14 201 215 90 Days + Past Due — 100 54 564 329 321 702 2,070 Total Consumer—home equity revolving lines of credit $ 12,696 $ 2,083 $ 2,569 $ 3,784 $ 1,994 $ 3,364 $ 478,033 $ 504,523 Consumer-other Past Due Category Current $ 15,111 $ 16,716 $ 16,158 $ 13,500 $ 10,013 $ 20,774 $ 25,571 $ 117,843 30-59 Days Past Due 18 23 2 5 37 35 63 183 60-89 Days Past Due 44 33 — 148 — 2 26 253 90 Days + Past Due — — 24 — 5 — — 29 Total Consumer-other $ 15,173 $ 16,772 $ 16,184 $ 13,653 $ 10,055 $ 20,811 $ 25,660 $ 118,308 The following table presents the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of December 31, 2019 (in thousands): December 31, 2019 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,546,649 $ 4,198 $ 29,803 $ — $ — $ 1,580,650 Investment properties 2,288,785 2,193 18,243 — — 2,309,221 Multifamily real estate 472,856 — 296 — — 473,152 Commercial construction 198,986 — 11,682 — — 210,668 Multifamily construction 233,610 — — — — 233,610 One- to four-family construction 530,307 12,534 1,467 — — 544,308 Land and land development: Residential 154,348 — 340 — — 154,688 Commercial 26,256 — 34 — — 26,290 Commercial business 1,627,170 31,012 35,584 58 — 1,693,824 Agricultural business, including secured by farmland 352,408 10,840 7,301 — — 370,549 One- to four-family residential 940,424 409 4,789 — — 945,622 Consumer: Consumer secured by one- to four-family 547,388 — 3,572 — — 550,960 Consumer—other 211,475 3 337 — — 211,815 Total $ 9,130,662 $ 61,189 $ 113,448 $ 58 $ — $ 9,305,357 (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 December 31, 2019, in the commercial business category, $764.6 million of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated. | |
Loans, Collateral Dependent [Table Text Block] | The following table provides the amortized cost basis of collateral-dependent loans as of September 30, 2020 (in thousands). Our collateral dependent loans presented in the table below have no significant concentrations by property type or location. The table below includes one commercial business banking relationship with a balance of $6.6 million. September 30, 2020 Real Estate Accounts Receivable Equipment Inventory Total Commercial real estate: Owner-occupied $ 1,101 $ — $ — $ — $ 1,101 Investment properties 3,914 — — — 3,914 Small Balance CRE 1,206 — — — 1,206 Land and land development 302 — — — 302 Commercial business Commercial business 2,536 2,756 2,970 652 8,914 Small business Scored 46 — 48 — 94 Agricultural business, including secured by farmland 427 — 994 — 1,421 One- to four-family residential 195 — — — 195 Total $ 9,727 $ 2,756 $ 4,012 $ 652 $ 17,147 | |
Schedule of Age Analysis of the Company's Past Due Loans | The following table presents the Company’s portfolio of non-risk-rated loans by delinquency status as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination. September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Small balance CRE Past Due Category Current $ 42,396 $ 81,636 $ 89,270 $ 78,727 $ 75,123 $ 225,523 $ 2,864 $ 595,539 30-59 Days Past Due — 241 — — — 369 — 610 60-89 Days Past Due — — — 622 — — — 622 90 Days + Past Due — — — 185 — 1,015 — 1,200 Total Small balance CRE $ 42,396 $ 81,877 $ 89,270 $ 79,534 $ 75,123 $ 226,907 $ 2,864 $ 597,971 Small business scored Past Due Category Current $ 128,596 $ 154,666 $ 138,279 $ 100,654 $ 51,378 $ 70,986 $ 113,452 $ 758,011 30-59 Days Past Due 844 400 207 643 2 240 155 2,491 60-89 Days Past Due 224 35 767 63 — 151 58 1,298 90 Days + Past Due 85 106 588 713 172 250 110 2,024 Total Small business scored $ 129,749 $ 155,207 $ 139,841 $ 102,073 $ 51,552 $ 71,627 $ 113,775 $ 763,824 One- to four- family residential Past Due Category Current $ 68,277 $ 100,406 $ 105,335 $ 124,930 $ 65,906 $ 297,086 $ 3,880 $ 765,820 30-59 Days Past Due — 35 — — — 195 — 230 60-89 Days Past Due 299 2 241 480 — 727 — 1,749 90 Days + Past Due — — 1,012 512 — 2,108 — 3,632 Total One- to four- family residential $ 68,576 $ 100,443 $ 106,588 $ 125,922 $ 65,906 $ 300,116 $ 3,880 $ 771,431 September 30, 2020 Term Loans by Year of Origination Revolving Loans Total Loans By class: 2020 2019 2018 2017 2016 Prior Consumer—home equity revolving lines of credit Past Due Category Current $ 12,696 $ 1,983 $ 2,515 $ 3,176 $ 1,665 $ 2,945 $ 476,385 $ 501,365 30-59 Days Past Due — — — 44 — 84 745 873 60-89 Days Past Due — — — — — 14 201 215 90 Days + Past Due — 100 54 564 329 321 702 2,070 Total Consumer—home equity revolving lines of credit $ 12,696 $ 2,083 $ 2,569 $ 3,784 $ 1,994 $ 3,364 $ 478,033 $ 504,523 Consumer-other Past Due Category Current $ 15,111 $ 16,716 $ 16,158 $ 13,500 $ 10,013 $ 20,774 $ 25,571 $ 117,843 30-59 Days Past Due 18 23 2 5 37 35 63 183 60-89 Days Past Due 44 33 — 148 — 2 26 253 90 Days + Past Due — — 24 — 5 — — 29 Total Consumer-other $ 15,173 $ 16,772 $ 16,184 $ 13,653 $ 10,055 $ 20,811 $ 25,660 $ 118,308 The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 30-59 Days 60-89 Days 90 Days or More Total Current Total Loans Non-accrual with no Allowance Total Non-accrual (1) Loans 90 Days or More Past Due and Accruing Commercial real estate: Owner-occupied $ 100 $ — $ 1,687 $ 1,787 $ 1,048,090 $ 1,049,877 $ 1,101 $ 2,067 $ — Investment properties 5,902 98 2,919 8,919 1,982,339 1,991,258 3,914 3,914 — Small Balance CRE 610 622 1,200 2,432 595,539 597,971 1,206 1,843 — Multifamily real estate — — — — 426,659 426,659 — — — Construction, land and land development: Commercial construction — — 99 99 220,186 220,285 — 98 — Multifamily construction — — — — 291,105 291,105 — — — One- to four-family construction 441 422 — 863 517,222 518,085 — 331 — Land and land development — — 508 508 240,295 240,803 302 508 — Commercial business Commercial business 485 3,640 1,661 5,786 2,337,833 2,343,619 7,468 12,143 225 Small business scored 2,491 1,298 2,024 5,813 758,011 763,824 93 2,724 200 Agricultural business, including secured by farmland — — 2,023 2,023 324,146 326,169 1,422 2,066 — One- to four-family residential 230 1,749 3,632 5,611 765,820 771,431 181 2,978 2,649 Consumer: Consumer—home equity revolving lines of credit 873 215 2,070 3,158 501,365 504,523 — 2,835 175 Consumer—other 183 253 29 465 117,843 118,308 — 61 6 Total $ 11,315 $ 8,297 $ 17,852 $ 37,464 $ 10,126,453 $ 10,163,917 $ 15,687 $ 31,568 $ 3,255 December 31, 2019 30-59 Days 60-89 Days 90 Days or More Total Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Total Non-accrual (1) Commercial real estate: Owner-occupied $ 486 $ 1,246 $ 2,889 $ 4,621 $ 8,578 $ 1,567,451 $ 1,580,650 $ 89 $ 4,069 Investment properties — 260 1,883 2,143 6,345 2,300,733 2,309,221 — 1,883 Multifamily real estate 239 91 — 330 7 472,815 473,152 — 85 Commercial construction 1,397 — 98 1,495 — 209,173 210,668 — 98 Multifamily construction — — — — — 233,610 233,610 — — One-to-four-family construction 3,212 — 1,799 5,011 — 539,297 544,308 332 1,467 Land and land development: Residential — — 340 340 — 154,348 154,688 — 340 Commercial — — — — — 26,290 26,290 — — Commercial business 2,343 1,583 3,412 7,338 368 1,686,118 1,693,824 401 23,015 Agricultural business, including secured by farmland 1,972 129 584 2,685 393 367,471 370,549 — 661 One-to four-family residential 3,777 1,088 2,876 7,741 74 937,807 945,622 877 3,410 Consumer: Consumer secured by one- to four-family 1,174 327 1,846 3,347 110 547,503 550,960 398 2,314 Consumer—other 350 161 — 511 63 211,241 211,815 — 159 Total $ 14,950 $ 4,885 $ 15,727 $ 35,562 $ 15,938 $ 9,253,857 $ 9,305,357 $ 2,097 $ 37,501 | |
Allowance for Credit Losses on Financing Receivables | The following tables provide the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2020 (in thousands): For the Three Months Ended September 30, 2020 Commercial Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 53,166 $ 3,504 $ 36,916 $ 33,870 $ 4,517 $ 12,746 $ 11,633 $ — $ 156,352 Provision/(recapture) for credit losses 6,895 (248) 2,561 2,550 1,026 100 757 — 13,641 Recoveries 23 — — 246 — 94 82 — 445 Charge-offs (379) — — (1,297) (492) (72) (233) — (2,473) Ending balance $ 59,705 $ 3,256 $ 39,477 $ 35,369 $ 5,051 $ 12,868 $ 12,239 $ — $ 167,965 For the Nine Months Ended September 30, 2020 Commercial Multifamily Construction and Land Commercial Agricultural One- to Four-Family Residential Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 30,591 $ 4,754 $ 22,994 $ 23,370 $ 4,120 $ 4,136 $ 8,202 $ 2,392 $ 100,559 Impact of Adopting ASC 326 (2,864) (2,204) 2,515 3,010 (351) 7,125 2,973 (2,392) 7,812 Provision for credit losses 32,213 772 13,963 14,402 64 1,470 1,994 — 64,878 Recoveries 244 — 105 821 1,772 273 238 — 3,453 Charge-offs (479) (66) (100) (6,234) (554) (136) (1,168) — (8,737) Ending balance $ 59,705 $ 3,256 $ 39,477 $ 35,369 $ 5,051 $ 12,868 $ 12,239 $ — $ 167,965 The changes in the allowance for credit losses during the three and nine months ended September 30, 2020 were primarily the result of the $13.6 million provision for credit losses recorded during the current quarter and the $64.9 million provision recording during the nine months ended September 30, 2020, mostly due to the deterioration in the economy during the current quarter and nine months ended September 30, 2020 as a result of the COVID-19 pandemic, as well as forecasted additional economic deterioration based on the reasonable and supportable economic forecast as of September 30, 2020. The current quarter provision for credit losses also reflects risk rating downgrades on loans that are considered at heightened risk due to the COVID-19 pandemic. In addition, the change for the nine months ended September 30, 2020 included a $7.8 million increase related to the adoption of Financial Instruments - Credit Losses (Topic 326). The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three and nine months ended September 30, 2019 (in thousands): For the Three Months Ended September 30, 2019 Commercial Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 26,730 $ 4,344 $ 23,554 $ 19,557 $ 3,691 $ 4,701 $ 8,452 $ 7,225 $ 98,254 Provision/(recapture) for loan losses 1,992 (61) (1,141) 3,027 943 (175) 258 (2,843) 2,000 Recoveries 107 — 156 162 2 129 154 — 710 Charge-offs (314) — — (1,599) (741) (86) (423) — (3,163) Ending balance $ 28,515 $ 4,283 $ 22,569 $ 21,147 $ 3,895 $ 4,569 $ 8,441 $ 4,382 $ 97,801 For the Nine Months Ended September 30, 2019 Commercial Multifamily Construction and Land Commercial Agricultural 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/(recapture) for loan losses 2,244 465 (2,081) 4,300 987 (461) 1,355 (809) 6,000 Recoveries 277 — 208 400 37 402 487 — 1,811 Charge-offs (1,138) — — (2,991) (907) (86) (1,373) — (6,495) Ending balance $ 28,515 $ 4,283 $ 22,569 $ 21,147 $ 3,895 $ 4,569 $ 8,441 $ 4,382 $ 97,801 September 30, 2019 Commercial Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ 60 $ — $ — $ 48 $ 132 $ 42 $ 6 $ — $ 288 Collectively evaluated for impairment 28,455 4,283 22,569 21,078 3,710 4,527 8,435 4,382 97,439 Purchased credit-impaired loans — — — 21 53 — — — 74 Total allowance for loan losses $ 28,515 $ 4,283 $ 22,569 $ 21,147 $ 3,895 $ 4,569 $ 8,441 $ 4,382 $ 97,801 Loan balances: Individually evaluated for impairment $ 4,246 $ — $ 1,220 $ 618 $ 2,282 $ 3,745 $ 241 $ — $ 12,352 Collectively evaluated for impairment 3,598,482 399,808 1,083,083 1,618,366 387,827 943,653 779,222 — 8,810,441 Purchased credit impaired loans 11,513 6 — 407 396 77 176 — 12,575 Total loans $ 3,614,241 $ 399,814 $ 1,084,303 $ 1,619,391 $ 390,505 $ 947,475 $ 779,639 $ — $ 8,835,368 |
GOODWILL, OTHER INTANGIBLE AS_2
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill and Intangible Assets | The following table summarizes the changes in the Company’s goodwill and other intangibles for the nine months ended September 30, 2020 and the year ended December 31, 2019 (in thousands): Goodwill CDI LHI Total Balance, December 31, 2018 $ 339,154 $ 32,699 $ 225 $ 372,078 Additions through acquisitions (1) 33,967 4,610 — 38,577 Amortization — (8,151) — (8,151) Adjustments (2) — — (225) (225) Balance, December 31, 2019 373,121 29,158 — 402,279 Amortization — (5,867) — (5,867) Balance, September 30, 2020 $ 373,121 $ 23,291 $ — $ 396,412 (1) The additions to Goodwill and CDI in 2019 relate to the acquisition of AltaPacific. (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 as of September 30, 2020 for the periods indicated (in thousands): Estimated Amortization Remainder of 2020 $ 1,865 2021 6,571 2022 5,317 2023 3,814 2024 2,659 Thereafter 3,065 $ 23,291 |
Schedule of Servicing Assets at Amortized Value | An analysis of our mortgage servicing rights for the three and nine months ended September 30, 2020 and 2019 is presented below (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Balance, beginning of the period $ 14,424 $ 13,998 $ 14,148 $ 14,638 Additions—amounts capitalized 2,426 1,167 6,030 2,524 Additions—through purchase 40 36 141 105 Amortization (1) (2,075) (1,404) (5,504) (3,470) Balance, end of the period (2) $ 14,815 $ 13,797 $ 14,815 $ 13,797 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. (2) There was no valuation allowance as of September 30, 2020 and 2019. |
REAL ESTATE OWNED, NET (Tables)
REAL ESTATE OWNED, NET (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of Changes in Real Estate Owned, Net of Valuation Adjustments | The following table presents the changes in REO for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Balance, beginning of the period $ 2,400 $ 2,513 $ 814 $ 2,611 Additions from loan foreclosures — 48 1,588 109 Proceeds from dispositions of REO (707) (2,333) (805) (2,483) Gain (loss) on sale of REO 120 — 216 (9) Valuation adjustments in the period (18) — (18) — Balance, end of the period $ 1,795 $ 228 $ 1,795 $ 228 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Schedule of Deposit Liabilities | Deposits consisted of the following at September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Non-interest-bearing accounts $ 5,412,570 $ 3,945,000 Interest-bearing checking 1,434,224 1,280,003 Regular savings accounts 2,332,287 1,934,041 Money market accounts 2,120,908 1,769,194 Total interest-bearing transaction and saving accounts 5,887,419 4,983,238 Certificates of deposit: Certificates of deposit less than or equal to $250,000 723,225 936,940 Certificates of deposit greater than $250,000 192,127 183,463 Total certificates of deposit (1) 915,352 1,120,403 Total deposits $ 12,215,341 $ 10,048,641 Included in total deposits: Public fund transaction and savings accounts $ 259,929 $ 244,418 Public fund interest-bearing certificates 54,219 35,184 Total public deposits $ 314,148 $ 279,602 Total brokered deposits $ — $ 202,884 (1) Certificates of deposit include $101,000 and $269,000 of acquisition premiums at September 30, 2020 and December 31, 2019, respectively. |
Maturities of Certificates of Deposit | Scheduled maturities and weighted average interest rates of certificates of deposit at September 30, 2020 are as follows (dollars in thousands): September 30, 2020 Amount Weighted Average Rate Maturing in one year or less $ 694,530 0.93 % Maturing after one year through two years 123,003 1.47 Maturing after two years through three years 71,727 1.25 Maturing after three years through four years 13,041 2.17 Maturing after four years through five years 10,999 1.31 Maturing after five years 2,052 1.00 Total certificates of deposit $ 915,352 1.05 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments, by Balance Sheet Grouping | The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2020 and December 31, 2019, whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands): September 30, 2020 December 31, 2019 Level Carrying Estimated Carrying Estimated Assets: Cash and cash equivalents 1 $ 705,538 $ 705,538 $ 307,735 $ 307,735 Securities—trading 3 23,276 23,276 25,636 25,636 Securities—available-for-sale 2 1,758,384 1,758,384 1,551,557 1,551,557 Securities—held-to-maturity 2 426,380 448,051 233,241 234,952 Securities—held-to-maturity 3 2,755 2,755 2,853 2,853 Loans held for sale 2 185,938 186,544 210,447 210,670 Loans receivable 3 10,163,917 10,091,600 9,305,357 9,304,340 Equity securities 1 450,255 450,255 — — FHLB stock 3 16,363 16,363 28,342 28,342 Bank-owned life insurance 1 191,755 191,755 192,088 192,088 Mortgage servicing rights 3 14,815 17,954 14,148 22,611 Derivatives: Interest rate swaps 2 43,506 43,506 15,202 15,202 Interest rate lock and forward sales commitments 2,3 10,473 10,473 1,108 1,108 Liabilities: Demand, interest checking and money market accounts 2 8,967,702 8,967,702 6,994,197 6,994,197 Regular savings 2 2,332,287 2,332,287 1,934,041 1,934,041 Certificates of deposit 2 915,352 921,332 1,120,403 1,117,921 FHLB advances 2 150,000 153,661 450,000 452,720 Other borrowings 2 176,983 176,983 118,474 118,474 Subordinated notes, net 3 98,114 98,114 — — Junior subordinated debentures 3 109,821 109,821 119,304 119,304 Derivatives: Interest rate swaps 2 23,927 23,927 10,966 10,966 Interest rate lock and forward sales commitments 2 1,510 1,510 674 674 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 23,276 $ 23,276 Securities—available-for-sale U.S. Government and agency obligations — 169,913 — 169,913 Municipal bonds — 272,408 — 272,408 Corporate bonds — 55,971 — 55,971 Mortgage-backed or related securities — 1,250,500 — 1,250,500 Asset-backed securities — 9,592 — 9,592 — 1,758,384 — 1,758,384 Loans held for sale — 152,996 — 152,996 Equity securities 450,255 — — 450,255 Derivatives Interest rate swaps — 43,506 — 43,506 Interest rate lock and forward sales commitments — 2,019 8,454 10,473 $ 450,255 $ 1,956,905 $ 31,730 $ 2,438,890 Liabilities: Junior subordinated debentures $ — $ — $ 109,821 $ 109,821 Derivatives Interest rate swaps — 23,927 — 23,927 Interest rate lock and forward sales commitments — 1,510 — 1,510 $ — $ 25,437 $ 109,821 $ 135,258 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate bonds (Trust Preferred Securities) $ — $ — $ 25,636 $ 25,636 Securities—available-for-sale U.S. Government and agency obligations — 89,598 — 89,598 Municipal bonds — 107,157 — 107,157 Corporate bonds — 4,365 — 4,365 Mortgage-backed securities — 1,342,311 — 1,342,311 Asset-backed securities — 8,126 — 8,126 — 1,551,557 — 1,551,557 Loans held for sale — 199,397 — 199,397 Derivatives Interest rate swaps — 15,202 — 15,202 Interest rate lock and forward sales commitments — 317 791 1,108 $ — $ 1,766,473 $ 26,427 $ 1,792,900 Liabilities: Junior subordinated debentures, net of unamortized deferred issuance costs $ — $ — $ 119,304 $ 119,304 Derivatives Interest rate swaps — 10,966 — 10,966 Interest rate lock and forward sales commitments — 674 — 674 $ — $ 11,640 $ 119,304 $ 130,944 |
Schedule of Valuation Technique, Unobservable Input, and Qualitative Information for Unobservable Inputs | The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for certain of the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and non-recurring basis at September 30, 2020 and December 31, 2019: Weighted Average Rate / Range Financial Instruments Valuation Techniques Unobservable Inputs September 30, 2020 December 31, 2019 Corporate bonds (TPS securities) Discounted cash flows Discount rate 4.73 % 5.91 % Junior subordinated debentures Discounted cash flows Discount rate 4.73 % 5.91 % Loans individually evaluated Collateral valuations Discount to appraised value 0.0% to 20.0% 0.0% to 20.0% REO Appraisals Discount to appraised value 48.52 % 58.50 % Interest rate lock commitments Pricing model Pull-through rate 87.05 % 89.61 % |
Schedule of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest rate lock and forward sales commitments TPS Securities Borrowings— Interest rate lock and forward sales commitments Beginning balance $ 23,239 $ 109,613 $ 5,816 $ 25,636 $ 119,304 $ 791 Total gains or losses recognized Assets gains (losses) 37 — 2,638 (2,360) — 7,663 Liabilities losses (gains) — 208 — — (9,483) — Ending balance at September 30, 2020 $ 23,276 $ 109,821 $ 8,454 $ 23,276 $ 109,821 $ 8,454 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Level 3 Fair Value Inputs Level 3 Fair Value Inputs TPS Securities Borrowings—Junior Subordinated Debentures Interest rate lock and forward sales commitments TPS Securities Borrowings— Interest rate lock and forward sales commitments Beginning balance $ 25,741 $ 113,621 $ 1,373 $ 25,896 $ 114,091 $ 273 Total gains or losses recognized Assets (losses) gains (69) — 33 (224) — 1,133 Liabilities gains — (204) — — (674) — Ending balance at September 30, 2019 $ 25,672 $ 113,417 $ 1,406 $ 25,672 $ 113,417 $ 1,406 |
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables present financial assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 12,131 $ 12,131 REO — — 1,795 1,795 December 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 14,853 $ 14,853 REO — — 814 814 The following table presents the losses resulting from non-recurring fair value adjustments for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Loans individually evaluated $ (492) $ — $ (2,492) $ (425) REO — — — — Total loss from non-recurring measurements $ (492) $ — $ (2,492) $ (425) |
INCOME TAXES AND DEFERRED TAX_2
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the balances of the Company’s tax credit investments and related unfunded commitments at September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Tax credit investments $ 34,113 $ 29,620 Unfunded commitments—tax credit investments 20,572 20,235 The following table presents other information related to the Company's tax credit investments for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 Tax credits and other tax benefits recognized $ 981 $ 494 $ 2,943 $ 1,482 Tax credit amortization expense included in provision for income taxes 849 405 2,507 1,215 |
CALCULATION OF WEIGHTED AVERA_2
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 and nine months ended September 30, 2020 and 2019 (in thousands, except shares and per share data): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net income $ 36,548 $ 39,577 $ 76,971 $ 112,623 Basic weighted average shares outstanding 35,193,109 34,407,462 35,285,567 34,760,607 Plus unvested restricted stock 123,570 90,532 239,204 89,399 Diluted weighted shares outstanding 35,316,679 34,497,994 35,524,771 34,850,006 Earnings per common share Basic $ 1.04 $ 1.15 $ 2.18 $ 3.24 Diluted $ 1.03 $ 1.15 $ 2.17 $ 3.23 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments With Off-Balance-Sheet Risks | Outstanding commitments for which no asset or liability for the notional amount has been recorded consisted of the following at the dates indicated (in thousands): Contract or Notional Amount September 30, 2020 December 31, 2019 Commitments to extend credit $ 3,144,860 $ 3,051,681 Standby letters of credit and financial guarantees 15,677 14,298 Commitments to originate loans 114,040 39,676 Risk participation agreement 40,968 41,022 Derivatives also included in Note 14: Commitments to originate loans held for sale 282,025 66,196 Commitments to sell loans secured by one- to four-family residential properties 109,994 70,895 Commitments to sell securities related to mortgage banking activities 259,000 239,320 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated in Hedge Relationships | As of September 30, 2020 and December 31, 2019, the notional values or contractual amounts and fair values of the Company’s derivatives designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Notional/ Fair Value (1) Notional/ Fair Value (1) Notional/ Fair Value (2) Notional/ Fair Value (2) Interest rate swaps $ 427 $ 15 $ 3,567 $ 220 $ 427 $ 15 $ 3,567 $ 220 (1) Included in Loans receivable on the consolidated statements of financial condition. (2) Included in Other liabilities on the consolidated statements of financial condition. |
Schedule of Derivatives Not Designated in Hedge Relationships | As of September 30, 2020 and December 31, 2019, the notional values or contractual amounts and fair values of the Company’s derivatives not designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Notional/ Fair Value (1) Notional/ Fair Value (1) Notional/ Fair Value (2) Notional/ Fair Value (2) Interest rate swaps $ 419,497 $ 43,491 $ 371,957 $ 14,982 $ 419,497 $ 23,912 $ 371,957 $ 10,746 Mortgage loan commitments 224,834 8,454 50,755 791 79,412 516 65,855 190 Forward sales contracts 109,994 2,019 70,895 317 259,000 994 239,320 484 $ 754,325 $ 53,964 $ 493,607 $ 16,090 $ 757,909 $ 25,422 $ 677,132 $ 11,420 (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 $1.5 million at September 30, 2020 and $347,000 at December 31, 2019), which are included in Loans receivable. (2) Included in Other liabilities on the consolidated statements of financial condition. Gains (losses) recognized in income on derivatives not designated in hedge relationships for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands): Location on Consolidated Three Months Ended Nine Months Ended 2020 2019 2020 2019 Mortgage loan commitments Mortgage banking operations $ 2,639 $ (80) $ 7,664 $ 1,020 Forward sales contracts Mortgage banking operations 258 47 (779) (195) $ 2,897 $ (33) $ 6,885 $ 825 |
Offsetting Assets and Liabilities | as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset Net Amounts Netting Adjustment Per Applicable Master Netting Agreements Fair Value Net Amount Derivative assets Interest rate swaps $ 43,506 $ — $ 43,506 $ — $ — $ 43,506 $ 43,506 $ — $ 43,506 $ — $ — $ 43,506 Derivative liabilities Interest rate swaps $ 43,653 $ (19,726) $ 23,927 $ — $ (23,730) $ 197 $ 43,653 $ (19,726) $ 23,927 $ — $ (23,730) $ 197 December 31, 2019 Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition Gross Amounts Recognized Amounts offset Net Amounts Netting Adjustment Per Applicable Master Netting Agreements Fair Value Net Amount Derivative assets Interest rate swaps $ 15,242 $ (40) $ 15,202 $ — $ — $ 15,202 $ 15,242 $ (40) $ 15,202 $ — $ — $ 15,202 Derivative liabilities Interest rate swaps $ 15,242 $ (4,276) $ 10,966 $ — $ (15,209) $ (4,243) $ 15,242 $ (4,276) $ 10,966 $ — $ (15,209) $ (4,243) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Deposit fees and other service charges for the three and nine months ended September 30, 2020 and 2019 are summarized as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Deposit service charges $ 3,904 $ 4,931 $ 12,269 $ 14,347 Debit and credit card interchange fees 5,207 5,480 14,762 22,682 Debit and credit card expense (2,134) (1,991) (6,272) (6,389) Merchant services income 3,584 3,659 9,252 9,860 Merchant services expense (2,839) (2,960) (7,378) (7,941) Other service charges 1,020 1,212 3,458 4,436 Total deposit fees and other service charges $ 8,742 $ 10,331 $ 26,091 $ 36,995 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Costs | Lease Position as of September 30, 2020 and December 31, 2019 The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at September 30, 2020 and December 31, 2019 (dollars in thousands): Classification on the Balance Sheet September 30, 2020 December 31, 2019 Assets Operating right-of-use lease assets Other assets $ 58,114 $ 61,766 Liabilities Operating lease liabilities Accrued expenses and other liabilities $ 61,869 $ 65,818 Weighted-average remaining lease term Operating leases 5.9 years 6.2 years Weighted-average discount rate Operating leases 3.4 % 3.7 % Lease Costs The table below presents certain information related to the lease costs for operating leases for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost (1) $ 4,104 $ 3,818 $ 12,517 $ 11,650 Short-term lease cost (1) 28 62 78 284 Variable lease cost (1) 619 623 2,169 1,751 Less sublease income (1) (235) (228) (716) (696) Total lease cost $ 4,516 $ 4,275 $ 14,048 $ 12,989 (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 next five years beginning with 2020 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 2020 $ 4,147 2021 15,739 2022 12,830 2023 9,813 2024 7,848 Thereafter 18,012 Total minimum lease payments 68,389 Less: amount of lease payments representing interest (6,520) Lease obligations $ 61,869 |
ACCOUNTING STANDARDS RECENTLY_2
ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | $ 102 | $ 102 | $ 0 | $ 0 |
Loans, allowance for credit loss | 100,559 | |||
Liabilities, allowance for credit loss | 2,716 | |||
U.S. Government and agency obligations | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 0 | 0 | 0 | 0 |
Municipal bonds | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 60 | 61 | 0 | 0 |
Corporate bonds | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 42 | 41 | 0 | 0 |
Mortgage-backed or related securities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | $ 0 | $ 0 | 0 | 0 |
Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 63 | 63 | ||
Loans, allowance for credit loss | 7,812 | |||
Liabilities, allowance for credit loss | 7,022 | |||
Allowance for credit loss | 14,897 | |||
Impact of Topic 326 Adoption | U.S. Government and agency obligations | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 0 | 0 | ||
Impact of Topic 326 Adoption | Municipal bonds | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 28 | 28 | ||
Impact of Topic 326 Adoption | Corporate bonds | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 35 | 35 | ||
Impact of Topic 326 Adoption | Mortgage-backed or related securities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 0 | $ 0 | ||
January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 63 | |||
Loans, allowance for credit loss | 108,371 | |||
Liabilities, allowance for credit loss | 9,738 | |||
January 1, 2020 As Reported Under Topic 326 | U.S. Government and agency obligations | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 0 | |||
January 1, 2020 As Reported Under Topic 326 | Municipal bonds | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 28 | |||
January 1, 2020 As Reported Under Topic 326 | Corporate bonds | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 35 | |||
January 1, 2020 As Reported Under Topic 326 | Mortgage-backed or related securities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Held-to-maturity debt securities, allowance for credit loss | 0 | |||
Commercial real estate | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 30,591 | |||
Commercial real estate | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | (2,864) | |||
Commercial real estate | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 27,727 | |||
Multifamily real estate | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 4,754 | |||
Multifamily real estate | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | (2,204) | |||
Multifamily real estate | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 2,550 | |||
Construction and land | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 22,994 | |||
Construction and land | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 2,515 | |||
Construction and land | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 25,509 | |||
Commercial business | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 23,370 | |||
Commercial business | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 3,010 | |||
Commercial business | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 26,380 | |||
Agricultural business | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 4,120 | |||
Agricultural business | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | (351) | |||
Agricultural business | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 3,769 | |||
One-to four-family residential | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 4,136 | |||
One-to four-family residential | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 7,125 | |||
One-to four-family residential | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 11,261 | |||
Consumer | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 8,202 | |||
Consumer | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 2,973 | |||
Consumer | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 11,175 | |||
Unallocated | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 2,392 | |||
Unallocated | Impact of Topic 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | (2,392) | |||
Unallocated | January 1, 2020 As Reported Under Topic 326 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans, allowance for credit loss | 0 | |||
Retained Earnings [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New credit standard (Topic 326) - impact in year of adoption | $ (11,200) |
BUSINESS COMBINATION Narrative
BUSINESS COMBINATION Narrative (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 373,121 | $ 373,121 | $ 339,154 | |
AltaPacific Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Acquired Receivables, Non-Credit-Impaired, Fair Value | $ 328,200 | |||
Business Combination, Acquired Receivables, Non-Credit-Impaired, Discount | $ 5,300 | |||
Business Acquisition, Effective Date of Acquisition | Nov. 1, 2019 | |||
Percentage of voting interest acquired | 100.00% | |||
Business Combination, Ratio of Shares Acquired to Shares Exchanged | 0.2712 | |||
Assets acquired | $ 425,669 | |||
Loans receivable (contractual amount of $338.2 million) | 332,355 | |||
Deposits | 313,374 | |||
Core deposit intangible | 4,610 | |||
Goodwill | $ 33,967 | |||
Business combination, CDI acquired useful life | 10 years | |||
Business Combination, Acquired Receivables, Non-Credit-Impaired | $ 333,500 | |||
Credit related discount | $ 5,800 |
BUSINESS COMBINATION - Purchase
BUSINESS COMBINATION - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 373,121 | $ 373,121 | $ 339,154 | |
AltaPacific Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 338,200 | |||
Business Acquisition, Effective Date of Acquisition | Nov. 1, 2019 | |||
Cash paid | $ 2,360 | |||
Fair value of common shares issued | 85,200 | |||
Total consideration | 87,560 | |||
Cash and cash equivalents | 39,686 | |||
Securities | 20,348 | |||
business combination, recognized identifiable assets acquired and liabilities assumed, federal home loan bank stock | 2,005 | |||
Loans receivable (contractual amount of $338.2 million) | 332,355 | |||
Real estate owned held for sale | 650 | |||
Property and equipment | 3,809 | |||
Core deposit intangible | 4,610 | |||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Bank Owned Life Insurance | 11,890 | |||
Deferred tax asset | 166 | |||
Other assets | 10,150 | |||
Total assets acquired | 425,669 | |||
Deposits | 313,374 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Advances From FHLB | 40,226 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Junior Subordinated Debentures | 5,814 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Compensation | 4,508 | |||
Other liabilities | 8,154 | |||
Total liabilities assumed | 372,076 | |||
Net assets acquired | 53,593 | |||
Goodwill | $ 33,967 |
BUSINESS COMBINATION Acquired P
BUSINESS COMBINATION Acquired PCI Loans (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 4,331 | $ 4,743 | $ 5,216 | |
AltaPacific Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition | $ 5,881 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Non-Accretable Difference | (1,046) | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Cash Flows Expected to be Collected at Acquisition | 4,835 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | (683) | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | $ 4,152 |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities) (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Schedule of Securities [Line Items] | ||||
Securities—trading, Amortized Cost | $ 27,203,000 | $ 27,203,000 | ||
Securities—trading | 23,276,000 | 25,636,000 | ||
Available-for-sale Securities, Amortized Cost | 1,690,069,000 | 1,529,946,000 | ||
Available-for-sale Securities, Gross Unrealized Gains | 70,397,000 | 25,858,000 | ||
Available-for-sale Securities, Gross Unrealized Losses | (2,082,000) | (4,247,000) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 0 | |||
Securities—available-for-sale | 1,758,384,000 | 1,551,557,000 | ||
Held-to-maturity Securities, Amortized Cost | 429,135,000 | 236,094,000 | ||
Held-to-maturity Securities, Gross Unrealized Gains | 22,277,000 | 4,658,000 | ||
Held-to-maturity Securities, Gross Unrealized Losses | 606,000 | 2,947,000 | ||
Securities—held-to-maturity | 450,806,000 | 237,805,000 | ||
Impact of adopting ASC 326 | (102,000) | $ (102,000) | $ 0 | 0 |
U.S. Government and agency obligations | ||||
Schedule of Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost | 169,740,000 | 90,468,000 | ||
Available-for-sale Securities, Gross Unrealized Gains | 1,140,000 | 286,000 | ||
Available-for-sale Securities, Gross Unrealized Losses | (967,000) | (1,156,000) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 0 | |||
Securities—available-for-sale | 169,913,000 | 89,598,000 | ||
Held-to-maturity Securities, Amortized Cost | 341,000 | 385,000 | ||
Held-to-maturity Securities, Gross Unrealized Gains | 10,000 | 4,000 | ||
Held-to-maturity Securities, Gross Unrealized Losses | 0 | 0 | ||
Securities—held-to-maturity | 351,000 | 389,000 | ||
Impact of adopting ASC 326 | 0 | 0 | 0 | 0 |
Municipal bonds | ||||
Schedule of Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost | 257,056,000 | 101,927,000 | ||
Available-for-sale Securities, Gross Unrealized Gains | 15,707,000 | 5,233,000 | ||
Available-for-sale Securities, Gross Unrealized Losses | (355,000) | (3,000) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 0 | |||
Securities—available-for-sale | 272,408,000 | 107,157,000 | ||
Held-to-maturity Securities, Amortized Cost | 377,019,000 | 177,208,000 | ||
Held-to-maturity Securities, Gross Unrealized Gains | 19,260,000 | 3,733,000 | ||
Held-to-maturity Securities, Gross Unrealized Losses | 593,000 | 2,213,000 | ||
Securities—held-to-maturity | 395,686,000 | 178,728,000 | ||
Impact of adopting ASC 326 | (60,000) | (61,000) | 0 | 0 |
Corporate bonds | ||||
Schedule of Securities [Line Items] | ||||
Securities—trading, Amortized Cost | 27,203,000 | 27,203,000 | ||
Securities—trading | 23,276,000 | 25,636,000 | ||
Available-for-sale Securities, Amortized Cost | 53,756,000 | 4,357,000 | ||
Available-for-sale Securities, Gross Unrealized Gains | 2,300,000 | 14,000 | ||
Available-for-sale Securities, Gross Unrealized Losses | (85,000) | (6,000) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 0 | |||
Securities—available-for-sale | 55,971,000 | 4,365,000 | ||
Held-to-maturity Securities, Amortized Cost | 3,254,000 | 3,353,000 | ||
Held-to-maturity Securities, Gross Unrealized Gains | 0 | 0 | ||
Held-to-maturity Securities, Gross Unrealized Losses | 13,000 | 11,000 | ||
Securities—held-to-maturity | 3,241,000 | 3,342,000 | ||
Impact of adopting ASC 326 | (42,000) | (41,000) | 0 | 0 |
Mortgage-backed or related securities | ||||
Schedule of Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost | 1,199,816,000 | 1,324,999,000 | ||
Available-for-sale Securities, Gross Unrealized Gains | 51,199,000 | 20,325,000 | ||
Available-for-sale Securities, Gross Unrealized Losses | (515,000) | (3,013,000) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 0 | |||
Securities—available-for-sale | 1,250,500,000 | 1,342,311,000 | ||
Held-to-maturity Securities, Amortized Cost | 48,521,000 | 55,148,000 | ||
Held-to-maturity Securities, Gross Unrealized Gains | 3,007,000 | 921,000 | ||
Held-to-maturity Securities, Gross Unrealized Losses | 0 | 723,000 | ||
Securities—held-to-maturity | 51,528,000 | 55,346,000 | ||
Impact of adopting ASC 326 | 0 | $ 0 | $ 0 | 0 |
Asset-backed Securities | ||||
Schedule of Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost | 9,701,000 | 8,195,000 | ||
Available-for-sale Securities, Gross Unrealized Gains | 51,000 | 0 | ||
Available-for-sale Securities, Gross Unrealized Losses | (160,000) | (69,000) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 0 | |||
Securities—available-for-sale | $ 9,592,000 | $ 8,126,000 |
SECURITIES (Securities with Con
SECURITIES (Securities with Continuous Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 107,332 | $ 307,299 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (963) | (2,872) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 61,132 | 100,822 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,119) | (1,375) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 168,464 | 408,121 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2,082) | (4,247) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 55,722 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2,612 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 19,506 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (335) | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 75,228 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 2,947 | |
U.S. Government and agency obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,162 | 2,747 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (7) | (20) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 53,105 | 60,979 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (960) | (1,136) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 56,267 | 63,726 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (967) | (1,156) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
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 | 0 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 0 | |
Municipal bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 16,636 | 1,902 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (355) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 494 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16,636 | 2,396 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (355) | (3) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 44,605 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,889 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 19,017 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (324) | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 63,622 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 2,213 | |
Corporate bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 11,205 | 594 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (85) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11,205 | 594 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (85) | (6) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 489 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (11) | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 489 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 11 | |
Mortgage-backed or related securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 75,459 | 300,852 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (500) | (2,829) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,558 | 33,360 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (15) | (184) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 77,017 | 334,212 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (515) | (3,013) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 11,117 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 723 | |
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 | 11,117 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 723 | |
Asset-backed Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 870 | 1,204 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (16) | (17) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 6,469 | 5,989 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (144) | (52) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 7,339 | 7,193 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (160) | $ (69) |
SECURITIES (Securities Debt Mat
SECURITIES (Securities Debt Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 23,276 | |
Trading Securities, Fair Value, Maturing after twenty years | 0 | |
Trading Securities, Fair Value | 23,276 | 25,636 |
Available-for-sale Securities, Amortized Cost, Maturing in one year or less | 0 | |
Available-for-sale Securities, Amortized Cost, Maturing after one year through five years | 60,411 | |
Available-for-sale Securities, Amortized Cost, Maturing after five years through ten years | 478,140 | |
Available-for-sale Securities, Amortized Cost, Maturing after ten years through twenty years | 446,834 | |
Available-for-sale Securities, Amortized Cost, Maturing after twenty years | 704,684 | |
Available-for-sale Securities, Amortized Cost | 1,690,069 | 1,529,946 |
Available-for-sale Securities, Fair Value, Maturing in one year or less | 0 | |
Available-for-sale Securities, Fair Value, Maturing after one year through five years | 62,725 | |
Available-for-sale Securities, Fair Value, Maturing after five years through ten years | 500,140 | |
Available-for-sale Securities, Fair Value, Maturing after ten years through twenty years | 463,236 | |
Available-for-sale Securities, Fair Value, Maturing after twenty years | 732,283 | |
Available-for-sale Securities, Fair Value | 1,758,384 | 1,551,557 |
Held-to-maturity Securities, Amortized Cost, Maturing in one year or less | 0 | |
Held-to-maturity Securities, Amortized Cost, Maturing after one year through five years | 57,360 | |
Held-to-maturity Securities, Amortized Cost, Maturing after five years through ten years | 40,458 | |
Held-to-maturity Securities, Amortized Cost, Maturing after ten years through twenty years | 118,611 | |
Held-to-maturity Securities, Amortized Cost, Maturing after twenty years | 212,706 | |
Held-to-maturity Securities, Amortized Cost | 429,135 | |
Held-to-maturity Securities, Fair Value, Maturing in one year or less | 0 | |
Held-to-maturity Securities, Fair Value, Maturing after one year through five years | 59,541 | |
Held-to-maturity Securities, Fair Value, Maturing after five years through ten years | 42,822 | |
Held-to-maturity Securities, Fair Value, Maturing after ten years through twenty years | 123,188 | |
Held-to-maturity Securities, Fair Value, Maturing after twenty years | 225,255 | |
Debt Securities, Held-to-maturity, Fair Value | $ 450,806 | $ 237,805 |
SECURITIES (Securities Pledged)
SECURITIES (Securities Pledged) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Pledged Financial Instruments, Not Separately Reported, Securities [Abstract] | |
Securities pledged for State and Local Government Public Deposits, Carrying Value | $ 152,148 |
Securities pledged for Interest Rate Swap Counterparties, Carrying Value | 29,623 |
Securities pledged for Repurchase Agreements, Carrying Value | 204,034 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities | 2,627 |
Total pledged securities, Carrying Value | 388,432 |
Securities pledged for State and Local Government public deposits, Amortized Cost | 151,455 |
Securities pledged for Interest Rate Swap Counterparties, Amortized Cost | 28,473 |
Securities pledged for Repurchase Agreements, Amortized Cost | 194,374 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Amortized Cost | 2,627 |
Total pledged securities, Amortized Cost | 376,929 |
Securities pledged for State and Local Government Public Deposits, Fair Value | 161,497 |
Securities pledged for Interest Rate Swap Counterparties, Fair Value | 29,849 |
Securities pledged for Retail Repurchase Agreements, Fair Value | 204,034 |
Pledged Financial Instruments, Not Separately Reported, Interest-bearing Deposits for Other Debt Facilities, Fair Value | 2,707 |
Total pledged securities, Fair Value | $ 398,087 |
SECURITIES (Textual) (Details)
SECURITIES (Textual) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019numberOfSecurities | Sep. 30, 2020USD ($)numberOfSecuritiesnumberOfSalesOfSecurities | Sep. 30, 2019USD ($)numberOfSalesOfSecuritiesnumberOfSecurities | Dec. 31, 2019numberOfSecurities | |
Investments, Debt and Equity Securities [Abstract] | ||||
Trading Securities, Number of Securities on Nonaccrual Status | 0 | 0 | ||
Trading Securities, Unrealized Holding Loss | $ | $ (2,400,000) | |||
Trading Securities, Unrealized Holding Gain | $ | $ 172,000 | |||
Debt Securities, Available-for-sale [Abstract] | ||||
Available-for-sale Securities, Number of Securities in Unrealized Loss Position | 64 | 90 | ||
Available-for-sale Securities, Gross Realized Gains (Losses), Number of Securities Sold | 45 | 30 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | $ | $ 296,000 | |||
Available-for-sale Securities, Gross Realized Gain (Loss) | $ | $ (28,000) | |||
Available-for-sale Securities, Number of Securities in Nonaccrual Status | 0 | 0 | ||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities, Number of Securities in Unrealized Loss Position | 17 | |||
Held-to-maturity Securities, Number of Securities Sold | numberOfSalesOfSecurities | 0 | 0 | ||
Held-to-maturity Securities, Number of Securities in Nonaccrual Status | 0 | 0 | ||
Trading Securities, Number of Securities Sold | 0 | 0 |
SECURITIES (Debt Securities, He
SECURITIES (Debt Securities, Held-to-Maturity, Credit Rating) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | $ 429,135 |
U.S. Government and agency obligations | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 341 |
Municipal bonds | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 377,019 |
Corporate bonds | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 3,254 |
Mortgage-backed or related securities | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 48,521 |
Standard & Poor's, AAA to A Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 354,148 |
Standard & Poor's, AAA to A Rating | U.S. Government and agency obligations | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Standard & Poor's, AAA to A Rating | Municipal bonds | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 353,648 |
Standard & Poor's, AAA to A Rating | Corporate bonds | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 500 |
Standard & Poor's, AAA to A Rating | Mortgage-backed or related securities | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 0 |
Standard & Poor's, Not Rated | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 74,987 |
Standard & Poor's, Not Rated | U.S. Government and agency obligations | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 341 |
Standard & Poor's, Not Rated | Municipal bonds | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 23,371 |
Standard & Poor's, Not Rated | Corporate bonds | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | 2,754 |
Standard & Poor's, Not Rated | Mortgage-backed or related securities | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Debt securities, held-to-maturity | $ 48,521 |
SECURITIES (Debt Securities, _2
SECURITIES (Debt Securities, Held-to-Maturity, Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 0 | |||
Impact of adopting ASC 326 | $ 102 | 0 | $ 102 | $ 0 |
(Recapture)/Provision for credit losses | 0 | 39 | ||
Ending Balance | 102 | 102 | ||
Impact of Topic 326 Adoption | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 63 | |||
Impact of adopting ASC 326 | 63 | 63 | ||
U.S. Government and agency obligations | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | |||
Impact of adopting ASC 326 | 0 | 0 | 0 | 0 |
(Recapture)/Provision for credit losses | 0 | 0 | ||
Ending Balance | 0 | 0 | ||
U.S. Government and agency obligations | Impact of Topic 326 Adoption | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | |||
Impact of adopting ASC 326 | 0 | 0 | ||
Municipal bonds | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | |||
Impact of adopting ASC 326 | 60 | 0 | 61 | 0 |
(Recapture)/Provision for credit losses | (1) | 32 | ||
Ending Balance | 60 | 60 | ||
Municipal bonds | Impact of Topic 326 Adoption | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 28 | |||
Impact of adopting ASC 326 | 28 | 28 | ||
Corporate bonds | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | |||
Impact of adopting ASC 326 | 42 | 0 | 41 | 0 |
(Recapture)/Provision for credit losses | 1 | 7 | ||
Ending Balance | 42 | 42 | ||
Corporate bonds | Impact of Topic 326 Adoption | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 35 | |||
Impact of adopting ASC 326 | 35 | 35 | ||
Mortgage-backed or related securities | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | |||
Impact of adopting ASC 326 | 0 | 0 | $ 0 | 0 |
(Recapture)/Provision for credit losses | 0 | 0 | ||
Ending Balance | $ 0 | 0 | ||
Mortgage-backed or related securities | Impact of Topic 326 Adoption | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | |||
Impact of adopting ASC 326 | $ 0 | $ 0 |
LOANS RECEIVABLE AND THE ALLO_3
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Loans by Type) (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 10,163,917,000 | $ 9,305,357,000 | $ 8,835,368,000 | |||
Allowance for credit losses - loans | (167,965,000) | $ (156,352,000) | (100,559,000) | (97,801,000) | $ (98,254,000) | $ (96,485,000) |
Net loans | 9,995,952,000 | $ 9,204,798,000 | ||||
Percent of total loans | 100.00% | |||||
Unearned loan fees in excess of unamortized costs | 31,700,000 | $ 438,000 | ||||
Discount on acquired loans, net | 17,900,000 | 25,000,000 | ||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 39.2 | 31.8 | ||||
Financing Receivable, Troubled Debt Restructuring | 10,400,000 | 8,000,000 | ||||
Commerical real estate - owner-occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 1,049,877,000 | $ 1,580,650,000 | ||||
Percent of total loans | 17.00% | |||||
Commercial real estate - investment properties | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 1,991,258,000 | $ 2,309,221,000 | ||||
Percent of total loans | 24.80% | |||||
Multifamily real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 426,659,000 | $ 473,152,000 | 399,814,000 | |||
Allowance for credit losses - loans | (3,256,000) | (3,504,000) | $ (4,754,000) | (4,283,000) | (4,344,000) | (3,818,000) |
Percent of total loans | 5.10% | |||||
Commercial construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 220,285,000 | $ 210,668,000 | ||||
Percent of total loans | 2.30% | |||||
Multifamily construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 291,105,000 | $ 233,610,000 | ||||
Percent of total loans | 2.50% | |||||
One- to four- family construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 518,085,000 | $ 544,308,000 | ||||
Percent of total loans | 5.80% | |||||
Land and land development - residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 240,803,000 | $ 154,688,000 | ||||
Percent of total loans | 1.70% | |||||
Land and land development - commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 26,290,000 | |||||
Percent of total loans | 0.30% | |||||
Commercial business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 2,343,619,000 | $ 1,693,824,000 | 1,619,391,000 | |||
Allowance for credit losses - loans | (35,369,000) | (33,870,000) | $ (23,370,000) | (21,147,000) | (19,557,000) | (19,438,000) |
Percent of total loans | 18.20% | |||||
Small business scored | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 763,824,000 | |||||
Agricultural business, including secured by farmland | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 326,169,000 | $ 370,549,000 | 390,505,000 | |||
Allowance for credit losses - loans | (5,051,000) | (4,517,000) | $ (4,120,000) | (3,895,000) | (3,691,000) | (3,778,000) |
Percent of total loans | 4.00% | |||||
One- to four-family residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 771,431,000 | $ 945,622,000 | 947,475,000 | |||
Allowance for credit losses - loans | (12,868,000) | $ (12,746,000) | $ (4,136,000) | $ (4,569,000) | $ (4,701,000) | $ (4,714,000) |
Percent of total loans | 10.20% | |||||
Consumer secured by one- to four-family [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 504,523,000 | $ 550,960,000 | ||||
Percent of total loans | 5.80% | |||||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 118,308,000 | $ 211,815,000 | ||||
Percent of total loans | 2.30% | |||||
January 1, 2020 As Reported Under Topic 326 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 10,163,917,000 | $ 9,305,357,000 | ||||
Net loans | $ 9,995,952,000 | $ 9,204,798,000 | ||||
Percent of total loans | 100.00% | 100.00% | ||||
January 1, 2020 As Reported Under Topic 326 | Commerical real estate - owner-occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,049,877,000 | $ 980,021,000 | ||||
Percent of total loans | 10.30% | 10.50% | ||||
January 1, 2020 As Reported Under Topic 326 | Commercial real estate - investment properties | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 1,991,258,000 | $ 2,024,988,000 | ||||
Percent of total loans | 19.60% | 21.80% | ||||
January 1, 2020 As Reported Under Topic 326 | Small Balance Commercial Real Estate Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 597,971,000 | $ 613,484,000 | ||||
Percent of total loans | 5.90% | 6.60% | ||||
January 1, 2020 As Reported Under Topic 326 | Multifamily real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 426,659,000 | $ 388,388,000 | ||||
Percent of total loans | 4.20% | 4.20% | ||||
January 1, 2020 As Reported Under Topic 326 | Commercial construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 220,285,000 | $ 210,668,000 | ||||
Percent of total loans | 2.20% | 2.30% | ||||
January 1, 2020 As Reported Under Topic 326 | Multifamily construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 291,105,000 | $ 233,610,000 | ||||
Percent of total loans | 2.90% | 2.50% | ||||
January 1, 2020 As Reported Under Topic 326 | One- to four- family construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 518,085,000 | $ 544,308,000 | ||||
Percent of total loans | 5.10% | 5.80% | ||||
January 1, 2020 As Reported Under Topic 326 | Land and Land Development Type [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 240,803,000 | $ 245,530,000 | ||||
Percent of total loans | 2.40% | 2.60% | ||||
January 1, 2020 As Reported Under Topic 326 | Commercial business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 2,343,619,000 | $ 1,364,650,000 | ||||
Percent of total loans | 23.10% | 14.70% | ||||
January 1, 2020 As Reported Under Topic 326 | Small business scored | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 763,824,000 | $ 772,657,000 | ||||
Percent of total loans | 7.50% | 8.30% | ||||
January 1, 2020 As Reported Under Topic 326 | Agricultural business, including secured by farmland | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 326,169,000 | $ 337,271,000 | ||||
Percent of total loans | 3.20% | 3.60% | ||||
January 1, 2020 As Reported Under Topic 326 | One- to four-family residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 771,431,000 | $ 925,531,000 | ||||
Percent of total loans | 7.60% | 9.90% | ||||
January 1, 2020 As Reported Under Topic 326 | Consumer secured by one- to four-family [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 504,523,000 | $ 519,336,000 | ||||
Percent of total loans | 4.90% | 5.60% | ||||
January 1, 2020 As Reported Under Topic 326 | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 118,308,000 | $ 144,915,000 | ||||
Percent of total loans | 1.10% | 1.60% |
LOANS RECEIVABLE AND THE ALLO_4
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Purchased Credit-Impaired Loans, Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Outstanding contractual unpaid balance of purchased credit-impaired loans | $ 23,500 | ||
Carrying balance of purchased credit-impaired loans | $ 12,575 | $ 12,575 | 15,938 |
Accretable Yield Movement Schedule [Roll Forward] | |||
Balance, beginning of period | 5,216 | ||
Accretion to interest income | (423) | (1,372) | |
Reclassifications from non-accretable difference | 11 | 487 | |
Balance, end of period | $ 4,331 | $ 4,331 | |
Certain Loans Acquired in Transfer, Nonaccretable Difference | $ 7,400 |
LOANS RECEIVABLE AND THE ALLO_5
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Impaired Loans With and Without Specific Reserves) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | $ 49,605 | |||
Recorded Investment, Without Allowance | 21,780 | |||
Recorded Investment, With Allowance | 24,284 | |||
Related Allowance | 4,374 | |||
Average Recorded Investment | $ 25,106 | $ 28,036 | ||
Interest Income Recognized | 111 | 413 | ||
Commerical real estate - owner-occupied [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 4,185 | |||
Recorded Investment, Without Allowance | 3,816 | |||
Recorded Investment, With Allowance | 194 | |||
Related Allowance | 18 | |||
Average Recorded Investment | 3,067 | 3,197 | ||
Interest Income Recognized | 0 | 4 | ||
Commercial real estate - investment properties | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 3,536 | |||
Recorded Investment, Without Allowance | 1,883 | |||
Recorded Investment, With Allowance | 690 | |||
Related Allowance | 40 | |||
Average Recorded Investment | 2,707 | 4,406 | ||
Interest Income Recognized | 10 | 108 | ||
Multifamily real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 82 | |||
Recorded Investment, Without Allowance | 85 | |||
Recorded Investment, With Allowance | 0 | |||
Related Allowance | 0 | |||
Average Recorded Investment | 58 | $ 19 | ||
Interest Income Recognized | 0 | $ 0 | ||
Commercial construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 439 | 1,006 | ||
Interest Income Recognized | 0 | 0 | ||
Multifamily construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 573 | |||
Recorded Investment, Without Allowance | 98 | |||
Recorded Investment, With Allowance | 0 | |||
Related Allowance | 0 | |||
One- to four- family construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 1,799 | |||
Recorded Investment, Without Allowance | 1,799 | |||
Recorded Investment, With Allowance | 0 | |||
Related Allowance | 0 | |||
Average Recorded Investment | 1,489 | 1,138 | ||
Interest Income Recognized | 11 | 12 | ||
Land and land development - residential [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 676 | |||
Recorded Investment, Without Allowance | 340 | |||
Recorded Investment, With Allowance | 0 | |||
Related Allowance | 0 | |||
Average Recorded Investment | 673 | 696 | ||
Interest Income Recognized | 0 | 0 | ||
Commercial business | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 25,117 | |||
Recorded Investment, Without Allowance | 4,614 | |||
Recorded Investment, With Allowance | 19,330 | |||
Related Allowance | 4,128 | |||
Average Recorded Investment | 3,737 | 3,767 | ||
Interest Income Recognized | 9 | 20 | ||
Agricultural business, including secured by farmland | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 3,044 | |||
Recorded Investment, Without Allowance | 661 | |||
Recorded Investment, With Allowance | 2,243 | |||
Related Allowance | 141 | |||
Average Recorded Investment | 3,250 | 4,319 | ||
Interest Income Recognized | 25 | 81 | ||
One- to four-family residential [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 7,290 | |||
Recorded Investment, Without Allowance | 5,613 | |||
Recorded Investment, With Allowance | 1,648 | |||
Related Allowance | 41 | |||
Average Recorded Investment | 6,555 | 6,484 | ||
Interest Income Recognized | 49 | 171 | ||
Consumer secured by one- to four-family [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 3,081 | |||
Recorded Investment, Without Allowance | 2,712 | |||
Recorded Investment, With Allowance | 127 | |||
Related Allowance | 5 | |||
Average Recorded Investment | 2,744 | 2,645 | ||
Interest Income Recognized | 6 | 14 | ||
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 222 | |||
Recorded Investment, Without Allowance | 159 | |||
Recorded Investment, With Allowance | 52 | |||
Related Allowance | $ 1 | |||
Average Recorded Investment | 387 | 359 | ||
Interest Income Recognized | $ 1 | $ 3 |
LOANS RECEIVABLE AND THE ALLO_6
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Troubled Debt Restructuring) (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | Mar. 31, 2016USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Commitments to advance funds related to TDRs, maximum additional amounts | $ 1,300,000 | $ 1,300,000 | $ 0 | |||
Number of Contracts | contract | 0 | 0 | 2 | 3 | ||
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 4,796,000 | $ 1,846,000 | ||
Post-modification Outstanding Recorded Investment | 0 | 0 | 4,796,000 | 1,846,000 | ||
Average Recorded Investment | 25,106,000 | 28,036,000 | ||||
Interest Income Recognized | 111,000 | 413,000 | ||||
TDRs Which Incurred a Payment Default | $ 0 | 0 | 0 | 0 | ||
Commerical real estate - owner-occupied [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 3,067,000 | 3,197,000 | ||||
Interest Income Recognized | 0 | $ 4,000 | ||||
Commercial real estate - investment properties | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | contract | 0 | 1 | ||||
Pre-modification Outstanding Recorded Investment | $ 0 | $ 1,090,000 | ||||
Post-modification Outstanding Recorded Investment | $ 0 | 1,090,000 | ||||
Average Recorded Investment | 2,707,000 | 4,406,000 | ||||
Interest Income Recognized | 10,000 | 108,000 | ||||
Multifamily real estate | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 58,000 | 19,000 | ||||
Interest Income Recognized | 0 | $ 0 | ||||
Commercial construction | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 439,000 | 1,006,000 | ||||
Interest Income Recognized | 0 | 0 | ||||
One- to four- family construction | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 1,489,000 | 1,138,000 | ||||
Interest Income Recognized | 11,000 | 12,000 | ||||
Land and land development - residential [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 673,000 | 696,000 | ||||
Interest Income Recognized | $ 0 | $ 0 | ||||
Commercial business | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | contract | 0 | 0 | 2 | 1 | ||
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 4,796,000 | $ 160,000 | ||
Post-modification Outstanding Recorded Investment | $ 0 | 0 | $ 4,796,000 | 160,000 | ||
Average Recorded Investment | 3,737,000 | 3,767,000 | ||||
Interest Income Recognized | $ 9,000 | $ 20,000 | ||||
Agricultural business, including secured by farmland | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | contract | 0 | 1 | ||||
Pre-modification Outstanding Recorded Investment | $ 0 | $ 596,000 | ||||
Post-modification Outstanding Recorded Investment | 0 | 596,000 | ||||
Average Recorded Investment | 3,250,000 | 4,319,000 | ||||
Interest Income Recognized | 25,000 | 81,000 | ||||
One- to four-family residential [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 6,555,000 | 6,484,000 | ||||
Interest Income Recognized | 49,000 | 171,000 | ||||
Consumer secured by one- to four-family [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 2,744,000 | 2,645,000 | ||||
Interest Income Recognized | 6,000 | 14,000 | ||||
Consumer | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Average Recorded Investment | 387,000 | 359,000 | ||||
Interest Income Recognized | $ 1,000 | $ 3,000 |
LOANS RECEIVABLE AND THE ALLO_7
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Newly Restructured Loans) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)contract | Sep. 30, 2019contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2019contract | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Commitments to advance funds related to TDRs, maximum additional amounts | $ | $ 1,300,000 | $ 1,300,000 | $ 0 | ||
Number of Contracts | 0 | 0 | 2 | 3 | |
Agricultural business, including secured by farmland | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | 0 | 1 |
LOANS RECEIVABLE AND THE ALLO_8
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Troubled Debt Restructuring Which Incurred Payment Default) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDRs Which Incurred a Payment Default | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS RECEIVABLE AND THE ALLO_9
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Risk-Rated and Non-Risk Rated Loans by Grade and Other Characteristic) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | $ 10,163,917 | $ 9,305,357 | $ 8,835,368 |
Commercial real estate - owner occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 189,843 | ||
2019 | 191,455 | ||
2018 | 168,673 | ||
2017 | 129,494 | ||
2016 | 107,234 | ||
Prior | 259,870 | ||
Revolving Loans | 3,308 | ||
Total Loans | 1,049,877 | ||
Loans receivable | 1,049,877 | 1,580,650 | |
Commercial real estate - investment properties | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 202,950 | ||
2019 | 279,942 | ||
2018 | 332,962 | ||
2017 | 271,485 | ||
2016 | 311,422 | ||
Prior | 566,795 | ||
Revolving Loans | 25,702 | ||
Total Loans | 1,991,258 | ||
Loans receivable | 1,991,258 | 2,309,221 | |
Multifamily real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 62,552 | ||
2019 | 68,649 | ||
2018 | 39,634 | ||
2017 | 106,938 | ||
2016 | 45,049 | ||
Prior | 102,426 | ||
Revolving Loans | 1,411 | ||
Total Loans | 426,659 | ||
Loans receivable | 426,659 | 473,152 | 399,814 |
Commercial construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 51,228 | ||
2019 | 110,206 | ||
2018 | 47,878 | ||
2017 | 7,549 | ||
2016 | 2,281 | ||
Prior | 1,143 | ||
Revolving Loans | 0 | ||
Total Loans | 220,285 | ||
Loans receivable | 220,285 | 210,668 | |
Multifamily construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 62,271 | ||
2019 | 144,695 | ||
2018 | 69,367 | ||
2017 | 14,772 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 291,105 | ||
Loans receivable | 291,105 | 233,610 | |
One- to four- family construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 417,065 | ||
2019 | 88,332 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 12,688 | ||
Total Loans | 518,085 | ||
Loans receivable | 518,085 | 544,308 | |
Land and land development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 113,282 | ||
2019 | 65,804 | ||
2018 | 25,980 | ||
2017 | 8,121 | ||
2016 | 6,773 | ||
Prior | 5,706 | ||
Revolving Loans | 15,137 | ||
Total Loans | 240,803 | ||
Commercial business | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,315,931 | ||
2019 | 276,012 | ||
2018 | 248,262 | ||
2017 | 88,180 | ||
2016 | 43,547 | ||
Prior | 78,618 | ||
Revolving Loans | 293,069 | ||
Total Loans | 2,343,619 | ||
Loans receivable | 2,343,619 | 1,693,824 | 1,619,391 |
Small balance CRE | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 42,396 | ||
2019 | 81,877 | ||
2018 | 89,270 | ||
2017 | 79,534 | ||
2016 | 75,123 | ||
Prior | 226,907 | ||
Revolving Loans | 2,864 | ||
Total Loans | 597,971 | ||
Loans receivable | 597,971 | ||
Small business scored | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 129,749 | ||
2019 | 155,207 | ||
2018 | 139,841 | ||
2017 | 102,073 | ||
2016 | 51,552 | ||
Prior | 71,627 | ||
Revolving Loans | 113,775 | ||
Total Loans | 763,824 | ||
Loans receivable | 763,824 | ||
Consumer—home equity revolving lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 12,696 | ||
2019 | 2,083 | ||
2018 | 2,569 | ||
2017 | 3,784 | ||
2016 | 1,994 | ||
Prior | 3,364 | ||
Revolving Loans | 478,033 | ||
Total Loans | 504,523 | ||
Land and land development - residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 240,803 | 154,688 | |
Land and land development - commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 26,290 | ||
Agricultural business, including secured by farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 28,906 | ||
2019 | 63,947 | ||
2018 | 33,687 | ||
2017 | 25,557 | ||
2016 | 25,149 | ||
Prior | 32,721 | ||
Revolving Loans | 116,202 | ||
Total Loans | 326,169 | ||
Loans receivable | 326,169 | 370,549 | 390,505 |
One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 68,576 | ||
2019 | 100,443 | ||
2018 | 106,588 | ||
2017 | 125,922 | ||
2016 | 65,906 | ||
Prior | 300,116 | ||
Revolving Loans | 3,880 | ||
Total Loans | 771,431 | ||
Loans receivable | 771,431 | 945,622 | $ 947,475 |
Consumer secured by one- to four-family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 504,523 | 550,960 | |
Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 15,173 | ||
2019 | 16,772 | ||
2018 | 16,184 | ||
2017 | 13,653 | ||
2016 | 10,055 | ||
Prior | 20,811 | ||
Revolving Loans | 25,660 | ||
Total Loans | 118,308 | ||
Loans receivable | 211,815 | ||
Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 9,130,662 | ||
Pass | Commercial real estate - owner occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 184,182 | ||
2019 | 166,817 | ||
2018 | 165,634 | ||
2017 | 124,766 | ||
2016 | 93,179 | ||
Prior | 228,160 | ||
Revolving Loans | 3,159 | ||
Total Loans | 965,897 | ||
Loans receivable | 1,546,649 | ||
Pass | Commercial real estate - investment properties | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 190,298 | ||
2019 | 267,544 | ||
2018 | 309,233 | ||
2017 | 212,385 | ||
2016 | 281,543 | ||
Prior | 523,930 | ||
Revolving Loans | 21,201 | ||
Total Loans | 1,806,134 | ||
Loans receivable | 2,288,785 | ||
Pass | Multifamily real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 62,552 | ||
2019 | 68,649 | ||
2018 | 39,634 | ||
2017 | 106,938 | ||
2016 | 45,049 | ||
Prior | 102,426 | ||
Revolving Loans | 1,411 | ||
Total Loans | 426,659 | ||
Loans receivable | 472,856 | ||
Pass | Commercial construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 38,631 | ||
2019 | 106,658 | ||
2018 | 43,010 | ||
2017 | 6,102 | ||
2016 | 2,183 | ||
Prior | 1,143 | ||
Revolving Loans | 0 | ||
Total Loans | 197,727 | ||
Loans receivable | 198,986 | ||
Pass | Multifamily construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 62,271 | ||
2019 | 144,695 | ||
2018 | 69,367 | ||
2017 | 14,772 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 291,105 | ||
Loans receivable | 233,610 | ||
Pass | One- to four- family construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 404,805 | ||
2019 | 87,377 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 12,058 | ||
Total Loans | 504,240 | ||
Loans receivable | 530,307 | ||
Pass | Land and land development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 113,268 | ||
2019 | 65,773 | ||
2018 | 22,930 | ||
2017 | 7,930 | ||
2016 | 6,773 | ||
Prior | 5,404 | ||
Revolving Loans | 15,137 | ||
Total Loans | 237,215 | ||
Pass | Commercial business | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,304,667 | ||
2019 | 263,730 | ||
2018 | 217,169 | ||
2017 | 81,266 | ||
2016 | 42,319 | ||
Prior | 78,112 | ||
Revolving Loans | 256,590 | ||
Total Loans | 2,243,853 | ||
Loans receivable | 1,627,170 | ||
Pass | Small business scored | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 764,600 | ||
Pass | Land and land development - residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 154,348 | ||
Pass | Land and land development - commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 26,256 | ||
Pass | Agricultural business, including secured by farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 27,358 | ||
2019 | 60,931 | ||
2018 | 32,786 | ||
2017 | 24,415 | ||
2016 | 24,473 | ||
Prior | 30,603 | ||
Revolving Loans | 113,813 | ||
Total Loans | 314,379 | ||
Loans receivable | 352,408 | ||
Pass | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 940,424 | ||
Pass | Consumer secured by one- to four-family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 547,388 | ||
Pass | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 211,475 | ||
Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 61,189 | ||
Special Mention | Commercial real estate - owner occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 1,369 | ||
2017 | 2,285 | ||
2016 | 0 | ||
Prior | 1,616 | ||
Revolving Loans | 149 | ||
Total Loans | 5,419 | ||
Loans receivable | 4,198 | ||
Special Mention | Commercial real estate - investment properties | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 2,153 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 3,377 | ||
Prior | 4,444 | ||
Revolving Loans | 0 | ||
Total Loans | 9,974 | ||
Loans receivable | 2,193 | ||
Special Mention | Multifamily real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Special Mention | Commercial construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 698 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 698 | ||
Loans receivable | 0 | ||
Special Mention | Multifamily construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Special Mention | One- to four- family construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 9,121 | ||
2019 | 623 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 630 | ||
Total Loans | 10,374 | ||
Loans receivable | 12,534 | ||
Special Mention | Land and land development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Special Mention | Commercial business | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 2,071 | ||
2019 | 502 | ||
2018 | 8,786 | ||
2017 | 834 | ||
2016 | 0 | ||
Prior | 43 | ||
Revolving Loans | 1,142 | ||
Total Loans | 13,378 | ||
Loans receivable | 31,012 | ||
Special Mention | Land and land development - residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Special Mention | Land and land development - commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Special Mention | Agricultural business, including secured by farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 810 | ||
2016 | 0 | ||
Prior | 537 | ||
Revolving Loans | 0 | ||
Total Loans | 1,347 | ||
Loans receivable | 10,840 | ||
Special Mention | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 409 | ||
Special Mention | Consumer secured by one- to four-family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Special Mention | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 3 | ||
Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 113,448 | ||
Substandard | Commercial real estate - owner occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 5,661 | ||
2019 | 24,638 | ||
2018 | 1,670 | ||
2017 | 2,443 | ||
2016 | 14,055 | ||
Prior | 30,094 | ||
Revolving Loans | 0 | ||
Total Loans | 78,561 | ||
Loans receivable | 29,803 | ||
Substandard | Commercial real estate - investment properties | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 12,652 | ||
2019 | 10,245 | ||
2018 | 23,729 | ||
2017 | 59,100 | ||
2016 | 26,502 | ||
Prior | 38,421 | ||
Revolving Loans | 4,501 | ||
Total Loans | 175,150 | ||
Loans receivable | 18,243 | ||
Substandard | Multifamily real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 296 | ||
Substandard | Commercial construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 11,899 | ||
2019 | 3,548 | ||
2018 | 4,868 | ||
2017 | 1,447 | ||
2016 | 98 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 21,860 | ||
Loans receivable | 11,682 | ||
Substandard | Multifamily construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Substandard | One- to four- family construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 3,139 | ||
2019 | 332 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 3,471 | ||
Loans receivable | 1,467 | ||
Substandard | Land and land development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 14 | ||
2019 | 31 | ||
2018 | 3,050 | ||
2017 | 191 | ||
2016 | 0 | ||
Prior | 302 | ||
Revolving Loans | 0 | ||
Total Loans | 3,588 | ||
Substandard | Commercial business | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 9,193 | ||
2019 | 11,780 | ||
2018 | 22,307 | ||
2017 | 6,080 | ||
2016 | 1,228 | ||
Prior | 463 | ||
Revolving Loans | 35,337 | ||
Total Loans | 86,388 | ||
Loans receivable | 35,584 | ||
Substandard | Land and land development - residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 340 | ||
Substandard | Land and land development - commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 34 | ||
Substandard | Agricultural business, including secured by farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,548 | ||
2019 | 3,016 | ||
2018 | 901 | ||
2017 | 332 | ||
2016 | 676 | ||
Prior | 1,581 | ||
Revolving Loans | 2,389 | ||
Total Loans | 10,443 | ||
Loans receivable | 7,301 | ||
Substandard | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 4,789 | ||
Substandard | Consumer secured by one- to four-family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 3,572 | ||
Substandard | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 337 | ||
Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 58 | ||
Doubtful | Commercial real estate - owner occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Doubtful | Commercial real estate - investment properties | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Doubtful | Multifamily real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Doubtful | Commercial construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Doubtful | Multifamily construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Doubtful | One- to four- family construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Doubtful | Land and land development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Doubtful | Commercial business | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 58 | ||
Doubtful | Land and land development - residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Doubtful | Land and land development - commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Doubtful | Agricultural business, including secured by farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Doubtful | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Doubtful | Consumer secured by one- to four-family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Doubtful | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Loss | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Loss | Commercial real estate - owner occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | Commercial real estate - investment properties | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | Multifamily real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | Commercial construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | Multifamily construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | One- to four- family construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | Land and land development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loss | Commercial business | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | Land and land development - residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Loss | Land and land development - commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Loss | Agricultural business, including secured by farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 0 | ||
Loans receivable | 0 | ||
Loss | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Loss | Consumer secured by one- to four-family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | 0 | ||
Loss | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans receivable | $ 0 | ||
Current | Small balance CRE | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 42,396 | ||
2019 | 81,636 | ||
2018 | 89,270 | ||
2017 | 78,727 | ||
2016 | 75,123 | ||
Prior | 225,523 | ||
Revolving Loans | 2,864 | ||
Total Loans | 595,539 | ||
Current | Small business scored | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 128,596 | ||
2019 | 154,666 | ||
2018 | 138,279 | ||
2017 | 100,654 | ||
2016 | 51,378 | ||
Prior | 70,986 | ||
Revolving Loans | 113,452 | ||
Total Loans | 758,011 | ||
Current | Consumer—home equity revolving lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 12,696 | ||
2019 | 1,983 | ||
2018 | 2,515 | ||
2017 | 3,176 | ||
2016 | 1,665 | ||
Prior | 2,945 | ||
Revolving Loans | 476,385 | ||
Total Loans | 501,365 | ||
Current | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 68,277 | ||
2019 | 100,406 | ||
2018 | 105,335 | ||
2017 | 124,930 | ||
2016 | 65,906 | ||
Prior | 297,086 | ||
Revolving Loans | 3,880 | ||
Total Loans | 765,820 | ||
Current | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 15,111 | ||
2019 | 16,716 | ||
2018 | 16,158 | ||
2017 | 13,500 | ||
2016 | 10,013 | ||
Prior | 20,774 | ||
Revolving Loans | 25,571 | ||
Total Loans | 117,843 | ||
30-59 Days Past Due | Small balance CRE | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 241 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 369 | ||
Revolving Loans | 0 | ||
Total Loans | 610 | ||
30-59 Days Past Due | Small business scored | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 844 | ||
2019 | 400 | ||
2018 | 207 | ||
2017 | 643 | ||
2016 | 2 | ||
Prior | 240 | ||
Revolving Loans | 155 | ||
Total Loans | 2,491 | ||
30-59 Days Past Due | Consumer—home equity revolving lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 44 | ||
2016 | 0 | ||
Prior | 84 | ||
Revolving Loans | 745 | ||
Total Loans | 873 | ||
30-59 Days Past Due | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 35 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 195 | ||
Revolving Loans | 0 | ||
Total Loans | 230 | ||
30-59 Days Past Due | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 18 | ||
2019 | 23 | ||
2018 | 2 | ||
2017 | 5 | ||
2016 | 37 | ||
Prior | 35 | ||
Revolving Loans | 63 | ||
Total Loans | 183 | ||
60-89 Days Past Due | Small balance CRE | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 622 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | 622 | ||
60-89 Days Past Due | Small business scored | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 224 | ||
2019 | 35 | ||
2018 | 767 | ||
2017 | 63 | ||
2016 | 0 | ||
Prior | 151 | ||
Revolving Loans | 58 | ||
Total Loans | 1,298 | ||
60-89 Days Past Due | Consumer—home equity revolving lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 14 | ||
Revolving Loans | 201 | ||
Total Loans | 215 | ||
60-89 Days Past Due | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 299 | ||
2019 | 2 | ||
2018 | 241 | ||
2017 | 480 | ||
2016 | 0 | ||
Prior | 727 | ||
Revolving Loans | 0 | ||
Total Loans | 1,749 | ||
60-89 Days Past Due | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 44 | ||
2019 | 33 | ||
2018 | 0 | ||
2017 | 148 | ||
2016 | 0 | ||
Prior | 2 | ||
Revolving Loans | 26 | ||
Total Loans | 253 | ||
90 Days Past Due | Small balance CRE | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 185 | ||
2016 | 0 | ||
Prior | 1,015 | ||
Revolving Loans | 0 | ||
Total Loans | 1,200 | ||
90 Days Past Due | Small business scored | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 85 | ||
2019 | 106 | ||
2018 | 588 | ||
2017 | 713 | ||
2016 | 172 | ||
Prior | 250 | ||
Revolving Loans | 110 | ||
Total Loans | 2,024 | ||
90 Days Past Due | Consumer—home equity revolving lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 100 | ||
2018 | 54 | ||
2017 | 564 | ||
2016 | 329 | ||
Prior | 321 | ||
Revolving Loans | 702 | ||
Total Loans | 2,070 | ||
90 Days Past Due | One- to four- family residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 1,012 | ||
2017 | 512 | ||
2016 | 0 | ||
Prior | 2,108 | ||
Revolving Loans | 0 | ||
Total Loans | 3,632 | ||
90 Days Past Due | Consumer—other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 24 | ||
2017 | 0 | ||
2016 | 5 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total Loans | $ 29 |
LOANS RECEIVABLE AND THE ALL_10
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Collateral Secured) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | $ 17,147 |
Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 9,727 |
Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 4,012 |
Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 2,756 |
Commercial real estate - owner occupied | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 1,101 |
Commercial real estate - owner occupied | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 1,101 |
Commercial real estate - owner occupied | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Commercial real estate - owner occupied | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Commercial real estate - investment properties | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 3,914 |
Commercial real estate - investment properties | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 3,914 |
Commercial real estate - investment properties | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Commercial real estate - investment properties | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Small balance CRE | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 1,206 |
Small balance CRE | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 1,206 |
Small balance CRE | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Small balance CRE | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Residential Land and Land Development [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 302 |
Residential Land and Land Development [Member] | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 302 |
Residential Land and Land Development [Member] | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Residential Land and Land Development [Member] | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Commercial business | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 8,914 |
Commercial business | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 2,536 |
Commercial business | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 2,970 |
Commercial business | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 2,756 |
Small business scored | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 94 |
Small business scored | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 46 |
Small business scored | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 48 |
Small business scored | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
Agricultural business | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 1,421 |
Agricultural business | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 427 |
Agricultural business | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 994 |
Agricultural business | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
One-to four-family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 195 |
One-to four-family residential | Real Estate Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 195 |
One-to four-family residential | Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | 0 |
One-to four-family residential | Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Collateral Dependent Loans, Amortized Cost | $ 0 |
LOANS RECEIVABLE AND THE ALL_11
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Age Analysis of Company's Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Past Due [Line Items] | |||
Past Due | $ 37,464 | $ 35,562 | |
Purchased Credit-Impaired | 15,938 | $ 12,575 | |
Current | 10,126,453 | 9,253,857 | |
Total loans | 10,163,917 | 9,305,357 | 8,835,368 |
Non-accrual with no Allowance | 15,687 | ||
Loans 90 days or more past due and still accruing | 31,568 | 2,097 | |
Nonaccrual loans | 3,255 | 37,501 | |
Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,787 | 4,621 | |
Purchased Credit-Impaired | 8,578 | ||
Current | 1,048,090 | 1,567,451 | |
Total loans | 1,049,877 | 1,580,650 | |
Non-accrual with no Allowance | 1,101 | ||
Loans 90 days or more past due and still accruing | 2,067 | 89 | |
Nonaccrual loans | 0 | 4,069 | |
Commercial real estate - investment properties | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 8,919 | 2,143 | |
Purchased Credit-Impaired | 6,345 | ||
Current | 1,982,339 | 2,300,733 | |
Total loans | 1,991,258 | 2,309,221 | |
Non-accrual with no Allowance | 3,914 | ||
Loans 90 days or more past due and still accruing | 3,914 | 0 | |
Nonaccrual loans | 0 | 1,883 | |
Small balance CRE | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,432 | ||
Current | 595,539 | ||
Total loans | 597,971 | ||
Non-accrual with no Allowance | 1,206 | ||
Loans 90 days or more past due and still accruing | 1,843 | ||
Nonaccrual loans | 0 | ||
Multifamily real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 330 | |
Purchased Credit-Impaired | 7 | 6 | |
Current | 426,659 | 472,815 | |
Total loans | 426,659 | 473,152 | 399,814 |
Non-accrual with no Allowance | 0 | ||
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 85 | |
Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 99 | 1,495 | |
Purchased Credit-Impaired | 0 | ||
Current | 220,186 | 209,173 | |
Total loans | 220,285 | 210,668 | |
Non-accrual with no Allowance | 0 | ||
Loans 90 days or more past due and still accruing | 98 | 0 | |
Nonaccrual loans | 0 | 98 | |
Multifamily construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Purchased Credit-Impaired | 0 | ||
Current | 291,105 | 233,610 | |
Total loans | 291,105 | 233,610 | |
Non-accrual with no Allowance | 0 | ||
Loans 90 days or more past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 0 | |
One- to four- family construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 863 | 5,011 | |
Purchased Credit-Impaired | 0 | ||
Current | 517,222 | 539,297 | |
Total loans | 518,085 | 544,308 | |
Non-accrual with no Allowance | 0 | ||
Loans 90 days or more past due and still accruing | 331 | 332 | |
Nonaccrual loans | 0 | 1,467 | |
Land and land development - residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 508 | 340 | |
Purchased Credit-Impaired | 0 | ||
Current | 240,295 | 154,348 | |
Total loans | 240,803 | 154,688 | |
Non-accrual with no Allowance | 302 | ||
Loans 90 days or more past due and still accruing | 508 | 0 | |
Nonaccrual loans | 0 | 340 | |
Land and land development - commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | ||
Purchased Credit-Impaired | 0 | ||
Current | 26,290 | ||
Total loans | 26,290 | ||
Loans 90 days or more past due and still accruing | 0 | ||
Nonaccrual loans | 0 | ||
Commercial business | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 5,786 | 7,338 | |
Purchased Credit-Impaired | 368 | 407 | |
Current | 2,337,833 | 1,686,118 | |
Total loans | 2,343,619 | 1,693,824 | 1,619,391 |
Non-accrual with no Allowance | 7,468 | ||
Loans 90 days or more past due and still accruing | 12,143 | 401 | |
Nonaccrual loans | 225 | 23,015 | |
Small business scored | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 5,813 | ||
Current | 758,011 | ||
Total loans | 763,824 | ||
Non-accrual with no Allowance | 93 | ||
Loans 90 days or more past due and still accruing | 2,724 | ||
Nonaccrual loans | 200 | ||
Agricultural business, including secured by farmland | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,023 | 2,685 | |
Purchased Credit-Impaired | 393 | 396 | |
Current | 324,146 | 367,471 | |
Total loans | 326,169 | 370,549 | 390,505 |
Non-accrual with no Allowance | 1,422 | ||
Loans 90 days or more past due and still accruing | 2,066 | 0 | |
Nonaccrual loans | 0 | 661 | |
One- to four-family residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 5,611 | 7,741 | |
Purchased Credit-Impaired | 74 | 77 | |
Current | 765,820 | 937,807 | |
Total loans | 771,431 | 945,622 | $ 947,475 |
Non-accrual with no Allowance | 181 | ||
Loans 90 days or more past due and still accruing | 2,978 | 877 | |
Nonaccrual loans | 2,649 | 3,410 | |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 3,158 | 3,347 | |
Purchased Credit-Impaired | 110 | ||
Current | 501,365 | 547,503 | |
Total loans | 504,523 | 550,960 | |
Non-accrual with no Allowance | 0 | ||
Loans 90 days or more past due and still accruing | 2,835 | 398 | |
Nonaccrual loans | 175 | 2,314 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 465 | 511 | |
Purchased Credit-Impaired | 63 | ||
Current | 117,843 | 211,241 | |
Total loans | 118,308 | 211,815 | |
Non-accrual with no Allowance | 0 | ||
Loans 90 days or more past due and still accruing | 61 | 0 | |
Nonaccrual loans | 6 | 159 | |
Consumer Loan in Effect Before Topic 326 [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 211,815 | ||
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 11,315 | 14,950 | |
30 to 59 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 100 | 486 | |
30 to 59 Days Past Due [Member] | Commercial real estate - investment properties | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 5,902 | 0 | |
30 to 59 Days Past Due [Member] | Small balance CRE | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 610 | ||
30 to 59 Days Past Due [Member] | Multifamily real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 239 | |
30 to 59 Days Past Due [Member] | Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 1,397 | |
30 to 59 Days Past Due [Member] | Multifamily construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
30 to 59 Days Past Due [Member] | One- to four- family construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 441 | 3,212 | |
30 to 59 Days Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
30 to 59 Days Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | ||
30 to 59 Days Past Due [Member] | Commercial business | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 485 | 2,343 | |
30 to 59 Days Past Due [Member] | Small business scored | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,491 | ||
30 to 59 Days Past Due [Member] | Agricultural business, including secured by farmland | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 1,972 | |
30 to 59 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 230 | 3,777 | |
30 to 59 Days Past Due [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 873 | 1,174 | |
30 to 59 Days Past Due [Member] | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 183 | 350 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 8,297 | 4,885 | |
60 to 89 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 1,246 | |
60 to 89 Days Past Due [Member] | Commercial real estate - investment properties | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 98 | 260 | |
60 to 89 Days Past Due [Member] | Small balance CRE | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 622 | ||
60 to 89 Days Past Due [Member] | Multifamily real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 91 | |
60 to 89 Days Past Due [Member] | Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60 to 89 Days Past Due [Member] | Multifamily construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60 to 89 Days Past Due [Member] | One- to four- family construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 422 | 0 | |
60 to 89 Days Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60 to 89 Days Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | ||
60 to 89 Days Past Due [Member] | Commercial business | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 3,640 | 1,583 | |
60 to 89 Days Past Due [Member] | Small business scored | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,298 | ||
60 to 89 Days Past Due [Member] | Agricultural business, including secured by farmland | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 129 | |
60 to 89 Days Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,749 | 1,088 | |
60 to 89 Days Past Due [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 215 | 327 | |
60 to 89 Days Past Due [Member] | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 253 | 161 | |
90 Days or More Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 17,852 | 15,727 | |
90 Days or More Past Due [Member] | Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,687 | 2,889 | |
90 Days or More Past Due [Member] | Commercial real estate - investment properties | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,919 | 1,883 | |
90 Days or More Past Due [Member] | Small balance CRE | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,200 | ||
90 Days or More Past Due [Member] | Multifamily real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 99 | 98 | |
90 Days or More Past Due [Member] | Multifamily construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | One- to four- family construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 1,799 | |
90 Days or More Past Due [Member] | Land and land development - residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 508 | 340 | |
90 Days or More Past Due [Member] | Land and land development - commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | ||
90 Days or More Past Due [Member] | Commercial business | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,661 | 3,412 | |
90 Days or More Past Due [Member] | Small business scored | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,024 | ||
90 Days or More Past Due [Member] | Agricultural business, including secured by farmland | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,023 | 584 | |
90 Days or More Past Due [Member] | One- to four-family residential [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 3,632 | 2,876 | |
90 Days or More Past Due [Member] | Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,070 | 1,846 | |
90 Days or More Past Due [Member] | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | $ 29 | $ 0 |
LOANS RECEIVABLE AND THE ALL_12
LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | $ 100,559 | ||||||||||
Provision for credit losses | $ 13,641 | $ 2,000 | 64,878 | $ 6,000 | |||||||
Recoveries | 445 | 710 | 3,453 | 1,811 | |||||||
Charge-offs | (2,473) | (3,163) | (8,737) | (6,495) | |||||||
Allowance for loan losses, Ending balance | 167,965 | 97,801 | 167,965 | 97,801 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | $ 288 | ||||||||||
Allowance collectively evaluated for impairment | 97,439 | ||||||||||
Allowance for purchased credit-impaired loans | 74 | ||||||||||
Total allowance for loan losses | 167,965 | 97,801 | 100,559 | 97,801 | $ 167,965 | $ 156,352 | $ 100,559 | 97,801 | $ 98,254 | $ 96,485 | |
Loans individually evaluated for impairment | 12,352 | ||||||||||
Loans collectively evaluated for impairment | 8,810,441 | ||||||||||
Purchased Credit-Impaired | 15,938 | 12,575 | |||||||||
Total loans | 10,163,917 | 9,305,357 | 8,835,368 | ||||||||
Commercial real estate | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 30,591 | ||||||||||
Provision for credit losses | 6,895 | 1,992 | 32,213 | 2,244 | |||||||
Recoveries | 23 | 107 | 244 | 277 | |||||||
Charge-offs | (379) | (314) | (479) | (1,138) | |||||||
Allowance for loan losses, Ending balance | 59,705 | 28,515 | 59,705 | 28,515 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 60 | ||||||||||
Allowance collectively evaluated for impairment | 28,455 | ||||||||||
Allowance for purchased credit-impaired loans | 0 | ||||||||||
Total allowance for loan losses | 59,705 | 28,515 | 30,591 | 28,515 | 59,705 | 53,166 | 30,591 | 28,515 | 26,730 | 27,132 | |
Loans individually evaluated for impairment | 4,246 | ||||||||||
Loans collectively evaluated for impairment | 3,598,482 | ||||||||||
Purchased Credit-Impaired | 11,513 | ||||||||||
Total loans | 3,614,241 | ||||||||||
Multifamily real estate | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 4,754 | ||||||||||
Provision for credit losses | (248) | (61) | 772 | 465 | |||||||
Recoveries | 0 | 0 | 0 | 0 | |||||||
Charge-offs | 0 | 0 | (66) | 0 | |||||||
Allowance for loan losses, Ending balance | 3,256 | 4,283 | 3,256 | 4,283 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 0 | ||||||||||
Allowance collectively evaluated for impairment | 4,283 | ||||||||||
Allowance for purchased credit-impaired loans | 0 | ||||||||||
Total allowance for loan losses | 3,256 | 4,283 | 3,256 | 4,283 | 3,256 | 3,504 | 4,754 | 4,283 | 4,344 | 3,818 | |
Loans individually evaluated for impairment | 0 | ||||||||||
Loans collectively evaluated for impairment | 399,808 | ||||||||||
Purchased Credit-Impaired | 7 | 6 | |||||||||
Total loans | 426,659 | 473,152 | 399,814 | ||||||||
Construction and land | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 22,994 | ||||||||||
Provision for credit losses | 2,561 | (1,141) | 13,963 | (2,081) | |||||||
Recoveries | 0 | 156 | 105 | 208 | |||||||
Charge-offs | 0 | 0 | (100) | 0 | |||||||
Allowance for loan losses, Ending balance | 39,477 | 22,569 | 39,477 | 22,569 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 0 | ||||||||||
Allowance collectively evaluated for impairment | 22,569 | ||||||||||
Allowance for purchased credit-impaired loans | 0 | ||||||||||
Total allowance for loan losses | 39,477 | 22,569 | 22,994 | 22,569 | 39,477 | 36,916 | 22,994 | 22,569 | 23,554 | 24,442 | |
Loans individually evaluated for impairment | 1,220 | ||||||||||
Loans collectively evaluated for impairment | 1,083,083 | ||||||||||
Purchased Credit-Impaired | 0 | ||||||||||
Total loans | 1,084,303 | ||||||||||
Commercial business | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 23,370 | ||||||||||
Provision for credit losses | 2,550 | 3,027 | 14,402 | 4,300 | |||||||
Recoveries | 246 | 162 | 821 | 400 | |||||||
Charge-offs | (1,297) | (1,599) | (6,234) | (2,991) | |||||||
Allowance for loan losses, Ending balance | 35,369 | 21,147 | 35,369 | 21,147 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 48 | ||||||||||
Allowance collectively evaluated for impairment | 21,078 | ||||||||||
Allowance for purchased credit-impaired loans | 21 | ||||||||||
Total allowance for loan losses | 35,369 | 21,147 | 23,370 | 21,147 | 35,369 | 33,870 | 23,370 | 21,147 | 19,557 | 19,438 | |
Loans individually evaluated for impairment | 618 | ||||||||||
Loans collectively evaluated for impairment | 1,618,366 | ||||||||||
Purchased Credit-Impaired | 368 | 407 | |||||||||
Total loans | 2,343,619 | 1,693,824 | 1,619,391 | ||||||||
Agricultural business | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 4,120 | ||||||||||
Provision for credit losses | 1,026 | 943 | 64 | 987 | |||||||
Recoveries | 0 | 2 | 1,772 | 37 | |||||||
Charge-offs | (492) | (741) | (554) | (907) | |||||||
Allowance for loan losses, Ending balance | 5,051 | 3,895 | 5,051 | 3,895 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 132 | ||||||||||
Allowance collectively evaluated for impairment | 3,710 | ||||||||||
Allowance for purchased credit-impaired loans | 53 | ||||||||||
Total allowance for loan losses | 5,051 | 3,895 | 4,120 | 3,895 | 5,051 | 4,517 | 4,120 | 3,895 | 3,691 | 3,778 | |
Loans individually evaluated for impairment | 2,282 | ||||||||||
Loans collectively evaluated for impairment | 387,827 | ||||||||||
Purchased Credit-Impaired | 393 | 396 | |||||||||
Total loans | 326,169 | 370,549 | 390,505 | ||||||||
One-to four-family residential | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 4,136 | ||||||||||
Provision for credit losses | 100 | (175) | 1,470 | (461) | |||||||
Recoveries | 94 | 129 | 273 | 402 | |||||||
Charge-offs | (72) | (86) | (136) | (86) | |||||||
Allowance for loan losses, Ending balance | 12,868 | 4,569 | 12,868 | 4,569 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 42 | ||||||||||
Allowance collectively evaluated for impairment | 4,527 | ||||||||||
Allowance for purchased credit-impaired loans | 0 | ||||||||||
Total allowance for loan losses | 12,868 | 4,569 | 4,136 | 4,569 | 12,868 | 12,746 | 4,136 | 4,569 | 4,701 | 4,714 | |
Loans individually evaluated for impairment | 3,745 | ||||||||||
Loans collectively evaluated for impairment | 943,653 | ||||||||||
Purchased Credit-Impaired | 74 | 77 | |||||||||
Total loans | 771,431 | 945,622 | 947,475 | ||||||||
Consumer [Member] | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 8,202 | ||||||||||
Provision for credit losses | 757 | 258 | 1,994 | 1,355 | |||||||
Recoveries | 82 | 154 | 238 | 487 | |||||||
Charge-offs | (233) | (423) | (1,168) | (1,373) | |||||||
Allowance for loan losses, Ending balance | 12,239 | 8,441 | 12,239 | 8,441 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 6 | ||||||||||
Allowance collectively evaluated for impairment | 8,435 | ||||||||||
Allowance for purchased credit-impaired loans | 0 | ||||||||||
Total allowance for loan losses | 12,239 | 8,441 | 8,202 | 8,441 | 12,239 | 11,633 | 8,202 | 8,441 | 8,452 | 7,972 | |
Loans individually evaluated for impairment | 241 | ||||||||||
Loans collectively evaluated for impairment | 779,222 | ||||||||||
Purchased Credit-Impaired | 176 | ||||||||||
Total loans | 779,639 | ||||||||||
Unallocated | |||||||||||
Financing Receivable, Allowance for Loan Losses [Roll Forward] | |||||||||||
Allowance for loan losses, Beginning balance | 2,392 | ||||||||||
Provision for credit losses | 0 | (2,843) | 0 | (809) | |||||||
Recoveries | 0 | 0 | 0 | 0 | |||||||
Charge-offs | 0 | 0 | 0 | 0 | |||||||
Allowance for loan losses, Ending balance | 0 | 4,382 | 0 | 4,382 | |||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Allowance individually evaluated for impairment | 0 | ||||||||||
Allowance collectively evaluated for impairment | 4,382 | ||||||||||
Allowance for purchased credit-impaired loans | 0 | ||||||||||
Total allowance for loan losses | $ 0 | $ 4,382 | $ 2,392 | $ 4,382 | $ 0 | $ 0 | $ 2,392 | 4,382 | $ 7,225 | $ 5,191 | |
Loans individually evaluated for impairment | 0 | ||||||||||
Loans collectively evaluated for impairment | 0 | ||||||||||
Purchased Credit-Impaired | 0 | ||||||||||
Total loans | $ 0 | ||||||||||
Impact of Topic 326 Adoption | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | $ 7,812 | ||||||||||
Impact of Topic 326 Adoption | Commercial real estate | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | (2,864) | ||||||||||
Impact of Topic 326 Adoption | Multifamily real estate | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | (2,204) | ||||||||||
Impact of Topic 326 Adoption | Construction and land | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | 2,515 | ||||||||||
Impact of Topic 326 Adoption | Commercial business | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | 3,010 | ||||||||||
Impact of Topic 326 Adoption | Agricultural business | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | (351) | ||||||||||
Impact of Topic 326 Adoption | One-to four-family residential | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | 7,125 | ||||||||||
Impact of Topic 326 Adoption | Consumer [Member] | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | 2,973 | ||||||||||
Impact of Topic 326 Adoption | Unallocated | |||||||||||
Financing Receivable, Allowance for Loan Losses, Additional Information [Abstract] | |||||||||||
Total allowance for loan losses | $ (2,392) |
GOODWILL, OTHER INTANGIBLE AS_3
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 373,121 | $ 339,154 |
Goodwill, Acquired During Period | 33,967 | |
Goodwill, end of period | 373,121 | 373,121 |
Finite-lived Intangible Assets [Roll Forward] | ||
Goodwill and other intangibles, net, beginning of period | 402,279 | 372,078 |
Additions through acquisitions | 38,577 | |
Amortization | (5,867) | (8,151) |
LHI, Other Increase (Decrease) | (225) | |
Goodwill and other intangibles, net, end of period | 396,412 | 402,279 |
Finite-Lived Intangible Assets, adjustments, total | (225) | |
Core Deposit Intangibles [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite lived assets Balance, beginning of period | 29,158 | 32,699 |
Intangible assets, additions through acquisitions | 4,610 | |
Amortization | (5,867) | (8,151) |
Finite lived assets Balance, end of period | 23,291 | 29,158 |
Leasehold Improvements [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite lived assets Balance, beginning of period | 0 | 225 |
Intangible assets, additions through acquisitions | 0 | |
Amortization | 0 | 0 |
Finite lived assets Balance, end of period | $ 0 | $ 0 |
GOODWILL, OTHER INTANGIBLE AS_4
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Estimated Annual Amortization Expense) (Details) - Core Deposit Intangibles [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Remainder of 2017 | $ 1,865 | ||
2018 | 6,571 | ||
2019 | 5,317 | ||
2020 | 3,814 | ||
2021 | 2,659 | ||
Thereafter | 3,065 | ||
Finite lived assets, net | $ 23,291 | $ 29,158 | $ 32,699 |
GOODWILL, OTHER INTANGIBLE AS_5
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||||||
Servicing Asset at Amortized Cost, Additions, Acquisitions | $ 40 | $ 36 | ||||||
Servicing Asset at Amortized Cost, Additions | $ 141 | $ 105 | ||||||
Servicing Contracts [Member] | ||||||||
Morgage Servicing Rights at Amortized Value [Line Items] | ||||||||
Loans Serviced For Others | 2,610,000 | 2,610,000 | $ 2,480,000 | |||||
Custodial Accounts | 3,400 | 3,400 | $ 12,000 | |||||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||||||
Balance, net of valuation allowance, beginning of the period | 14,424 | 13,998 | 14,148 | 14,638 | ||||
Additions—amounts capitalized | 2,426 | 1,167 | 6,030 | 2,524 | ||||
Amortization | (2,075) | [1] | (1,404) | [1] | (5,504) | (3,470) | ||
Balance, net of valuation allowance, end of the period | [2] | 14,815 | $ 13,797 | 14,815 | $ 13,797 | |||
Valuation allowance, end of period | $ 0 | $ 0 | ||||||
[1] | Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full. | |||||||
[2] | There was no valuation allowance as of September 30, 2020 and 2019. |
REAL ESTATE OWNED, NET (REO Rol
REAL ESTATE OWNED, NET (REO Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate Owned [Roll Forward] | ||||
Balance, beginning of the period | $ 814 | $ 2,611 | ||
Additions from loan foreclosures | $ 0 | $ 48 | 1,588 | 109 |
Proceeds from Sale of Other Real Estate | 707 | 2,333 | 805 | 2,483 |
Gains (Losses) on Sales of Other Real Estate | (120) | 0 | (216) | 9 |
Balance, end of the period | $ 1,795 | $ 228 | $ 1,795 | $ 228 |
REAL ESTATE OWNED, NET REAL EST
REAL ESTATE OWNED, NET REAL ESTATE OWNED, NET (Textual) (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Real Estate Owned [Line Items] | ||||||
Real Estate Owned | $ 1,795,000 | $ 2,400,000 | $ 814,000 | $ 228,000 | $ 2,513,000 | $ 2,611,000 |
Mortgage Loans in Process of Foreclosure, Amount | 403,000 | 1,500,000 | ||||
One- to four-family residential [Member] | ||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned | $ 725,000 | $ 48,000 |
DEPOSITS (Deposit Liabilities)
DEPOSITS (Deposit Liabilities) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Deposits: | |||
Non-interest-bearing accounts | $ 5,412,570,000 | $ 3,945,000,000 | |
Interest-bearing checking | 1,434,224,000 | 1,280,003,000 | |
Regular savings accounts | 2,332,287,000 | 1,934,041,000 | |
Money market accounts | 2,120,908,000 | 1,769,194,000 | |
Total interest-bearing transaction and saving accounts | 5,887,419,000 | 4,983,238,000 | |
Certificates of deposit less than or equal to $250,000 | 723,225,000 | 936,940,000 | |
Certificates of deposit greater than $250,000 | 192,127,000 | 183,463,000 | |
Total certificates of deposit | [1] | 915,352,000 | 1,120,403,000 |
Total deposits | 12,215,341,000 | 10,048,641,000 | |
Included in total deposits: | |||
Public fund transaction and savings accounts | 259,929,000 | 244,418,000 | |
Public fund interest-bearing certificates | 54,219,000 | 35,184,000 | |
Total public deposits | 314,148,000 | 279,602,000 | |
Total brokered deposits | 0 | 202,884,000 | |
CD acquisition premium | $ 101,000 | $ 269,000 | |
[1] | Certificates of deposit include $101,000 and $269,000 of acquisition premiums at September 30, 2020 and December 31, 2019, respectively. |
DEPOSITS DEPOSITS (Maturities a
DEPOSITS DEPOSITS (Maturities and Weighted Average Interest Rates of Certificates of Deposit) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Maturities of Time Deposits [Abstract] | |||
Maturing in one year or less | $ 694,530 | ||
Maturing after one year through two years | 123,003 | ||
Maturing after two years through three years | 71,727 | ||
Maturing after three years through four years | 13,041 | ||
Maturing after four years through five years | 10,999 | ||
Maturing after five years | 2,052 | ||
Total certificates of deposit | [1] | $ 915,352 | $ 1,120,403 |
Weighted Average Rate [Abstract] | |||
Maturing in one year or less | 0.93% | ||
Maturing after one year through two years | 1.47% | ||
Maturing after two years through three years | 1.25% | ||
Maturing after three years through four years | 2.17% | ||
Maturing after four years through five years | 1.31% | ||
Maturing after five years | 1.00% | ||
Total certificates of deposit | 1.05% | ||
[1] | Certificates of deposit include $101,000 and $269,000 of acquisition premiums at September 30, 2020 and December 31, 2019, respectively. |
DEPOSITS DEPOSITS (Textual) (De
DEPOSITS DEPOSITS (Textual) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Banking and Thrift, Other Disclosures [Abstract] | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 197.6 | $ 189 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value By Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Securities—trading | $ 23,276 | $ 25,636 |
Securities—available-for-sale | 1,758,384 | 1,551,557 |
Securities—held-to-maturity | 450,806 | 237,805 |
Equity securities | 450,255 | 0 |
Liabilities: | ||
FHLB advances at fair value | 150,000 | 450,000 |
Subordinated notes, net | 98,114 | 0 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 705,538 | 307,735 |
Securities—trading | 23,276 | 25,636 |
Securities—available-for-sale | 1,758,384 | 1,551,557 |
Loans receivable held for sale | 185,938 | 210,447 |
Loans receivable | 10,163,917 | 9,305,357 |
FHLB stock | 16,363 | 28,342 |
Bank-owned life insurance | 191,755 | 192,088 |
Mortgage servicing rights | 14,815 | 14,148 |
Equity securities | 0 | |
Liabilities: | ||
Demand, interest checking and money market accounts | 8,967,702 | 6,994,197 |
Regular savings | 2,332,287 | 1,934,041 |
Certificates of deposit | 915,352 | 1,120,403 |
FHLB advances at fair value | 150,000 | 450,000 |
Other borrowings | 176,983 | 118,474 |
Subordinated notes, net | 0 | |
Junior subordinated debentures at fair value | 109,821 | 119,304 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 705,538 | 307,735 |
Securities—trading | 23,276 | 25,636 |
Securities—available-for-sale | 1,758,384 | 1,551,557 |
Loans receivable held for sale | 186,544 | 210,670 |
Loans receivable | 10,091,600 | 9,304,340 |
FHLB stock | 16,363 | 28,342 |
Bank-owned life insurance | 191,755 | 192,088 |
Mortgage servicing rights | 17,954 | 22,611 |
Equity securities | 450,255 | 0 |
Liabilities: | ||
Demand, interest checking and money market accounts | 8,967,702 | 6,994,197 |
Regular savings | 2,332,287 | 1,934,041 |
Certificates of deposit | 921,332 | 1,117,921 |
FHLB advances at fair value | 153,661 | 452,720 |
Other borrowings | 176,983 | 118,474 |
Subordinated notes, net | 98,114 | 0 |
Junior subordinated debentures at fair value | 109,821 | 119,304 |
Interest rate swaps [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 43,506 | 15,202 |
Liabilities: | ||
Derivatives: | 23,927 | 10,966 |
Interest rate swaps [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 43,506 | 15,202 |
Liabilities: | ||
Derivatives: | 23,927 | 10,966 |
Interest Rate Forward Sales Commitments [Member] | Carrying Value | ||
Assets: | ||
Derivatives: | 10,473 | 1,108 |
Liabilities: | ||
Derivatives: | 1,510 | 674 |
Interest Rate Forward Sales Commitments [Member] | Estimated Fair Value | ||
Assets: | ||
Derivatives: | 10,473 | 1,108 |
Liabilities: | ||
Derivatives: | 1,510 | 674 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | ||
Assets: | ||
Securities—held-to-maturity | 426,380 | 233,241 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | ||
Assets: | ||
Securities—held-to-maturity | 448,051 | 234,952 |
Fair Value, Inputs, Level 3 [Member] | Carrying Value | ||
Assets: | ||
Securities—held-to-maturity | 2,755 | 2,853 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value | ||
Assets: | ||
Securities—held-to-maturity | $ 2,755 | $ 2,853 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—trading | $ 23,276 | $ 25,636 | ||||
Securities—available-for-sale | 1,758,384 | 1,551,557 | ||||
Equity securities | 450,255 | 0 | ||||
Advances from FHLB | 150,000 | 450,000 | ||||
Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 1,758,384 | 1,551,557 | ||||
Total assets | 2,438,890 | 1,792,900 | ||||
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 109,821 | 119,304 | ||||
Total liabilities | 135,258 | 130,944 | ||||
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 | 10,473 | 15,202 | ||||
Derivative liabilities | 1,510 | 10,966 | ||||
Recurring [Member] | Interest rate swaps [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative assets | 43,506 | 1,108 | ||||
Derivative liabilities | 23,927 | 674 | ||||
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 | 169,913 | 89,598 | ||||
Recurring [Member] | Municipal bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 272,408 | 107,157 | ||||
Recurring [Member] | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 55,971 | 4,365 | ||||
Recurring [Member] | TPS and TRUP CDOs [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—trading | 23,276 | 25,636 | ||||
Recurring [Member] | Mortgage-backed securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 1,250,500 | 1,342,311 | ||||
Recurring [Member] | Asset-backed Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 9,592 | 8,126 | ||||
Recurring [Member] | Loans [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans Held-for-sale, Fair Value Disclosure | 152,996 | 199,397 | ||||
Recurring [Member] | Securities (Assets) [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity securities | 450,255 | |||||
Recurring [Member] | Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 0 | 0 | ||||
Total assets | 450,255 | 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 | ||||||
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 | ||||||
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 | ||||||
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 | 450,255 | |||||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 1,758,384 | 1,551,557 | ||||
Total assets | 1,956,905 | 1,766,473 | ||||
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 0 | 0 | ||||
Total liabilities | 25,437 | 11,640 | ||||
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 | 2,019 | 15,202 | ||||
Derivative liabilities | 1,510 | 10,966 | ||||
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 | 43,506 | 317 | ||||
Derivative liabilities | 23,927 | 674 | ||||
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 | 169,913 | 89,598 | ||||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 272,408 | 107,157 | ||||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 55,971 | 4,365 | ||||
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 | 1,250,500 | 1,342,311 | ||||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 9,592 | 8,126 | ||||
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 | 152,996 | 199,397 | ||||
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 | 0 | |||||
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities—available-for-sale | 0 | 0 | ||||
Total assets | 31,730 | 26,427 | ||||
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 109,821 | 119,304 | ||||
Total liabilities | 109,821 | 119,304 | ||||
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 | 8,454 | 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 | $ 5,816 | 791 | $ 1,406 | $ 1,373 | $ 273 |
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 | ||||||
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 | ||||||
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 | 23,276 | 25,636 | ||||
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 | ||||||
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 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Valuation Technique) (Details) - Fair Value, Inputs, Level 3 [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
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 | ||
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 | 4.73% | 5.91% | |
Impaired Loans [Member] | Minimum [Member] | discount to appraised value [Member] | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
fair value inputs, discount to appraised value | 0.00% | 0.00% | |
Impaired Loans [Member] | Maximum [Member] | discount to appraised value [Member] | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
fair value inputs, discount to appraised value | 20.00% | 20.00% | |
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 | 48.52% | 58.50% | |
Interest Rate Lock Commitments [Member] | Weighted Average [Member] | Valuation, Pricing Model [Member] | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Input, Pull-Through Rate | 87.05% | ||
Servicing Contracts [Member] | Weighted Average [Member] | Discounted cash flows [Member] | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Input, Pull-Through Rate | 89.61% |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Unobservable Inputs Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Interest rate swaps [Member] | Recurring [Member] | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Derivative assets | $ 43,506 | $ 43,506 | $ 1,108 | |||||
Interest rate swaps [Member] | Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Assets gains (losses), including OTTI | 2,638 | $ 33 | 7,663 | $ 1,133 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Derivative assets | 0 | 1,406 | 0 | 1,406 | $ 5,816 | $ 791 | $ 1,373 | $ 273 |
Junior Subordinated Debt [Member] | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Beginning balance | 109,613 | 113,621 | 119,304 | 114,091 | ||||
Liabilities (gains) losses | 208 | (204) | (9,483) | (674) | ||||
Ending balance | 109,821 | 113,417 | 109,821 | 113,417 | ||||
TPS Securities [Member] | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Beginning balance | 23,239 | 25,741 | ||||||
Assets gains (losses), including OTTI | 37 | (69) | ||||||
Ending balance | 23,276 | 25,672 | 23,276 | 25,672 | ||||
TPS and TRUP CDOs [Member] | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Beginning balance | 25,636 | 25,896 | ||||||
Assets gains (losses), including OTTI | (2,360) | (224) | ||||||
Ending balance | $ 23,276 | $ 25,672 | $ 23,276 | $ 25,672 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Nonrecurring Basis) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | $ (12,131) | $ (12,131) | $ (14,853) | ||
REO | 1,795 | 1,795 | 814 | ||
Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | ||
REO | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | ||
REO | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | (12,131) | (12,131) | (14,853) | ||
REO | 1,795 | 1,795 | $ 814 | ||
Gains (losses) resulting from nonrecurring fair value adjustments | (492) | $ 0 | (2,492) | $ (425) | |
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 | (492) | 0 | (2,492) | (425) | |
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 | $ 0 | $ 0 | $ 0 |
INCOME TAXES AND DEFERRED TAX_3
INCOME TAXES AND DEFERRED TAXES INCOME TAXES AND DEFERRED TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Tax credit investments | $ 34,113 | $ 34,113 | $ 29,620 | ||
Unfunded commitments—tax credit investments | 20,572 | 20,572 | $ 20,235 | ||
Tax credits and other tax benefits recognized | 981 | $ 494 | 2,943 | $ 1,482 | |
Tax credit amortization expense included in provision for income taxes | $ 849 | $ 405 | $ 2,507 | $ 1,215 |
CALCULATION OF WEIGHTED AVERA_3
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |||||||||
Net income | $ 36,548 | $ 23,541 | $ 16,882 | $ 33,655 | $ 39,577 | $ 39,700 | $ 33,346 | $ 76,971 | $ 112,623 |
Basic weighted average shares outstanding | 35,193,109 | 34,407,462 | 35,285,567 | 34,760,607 | |||||
Plus unvested restricted stock | 123,570 | 90,532 | 239,204 | 89,399 | |||||
Diluted weighted shares outstanding | 35,316,679 | 34,497,994 | 35,524,771 | 34,850,006 | |||||
Earnings per common share | |||||||||
Basic | $ 1.04 | $ 1.15 | $ 2.18 | $ 3.24 | |||||
Diluted | $ 1.03 | $ 1.15 | $ 2.17 | $ 3.23 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 29 Months Ended | 62 Months Ended | 77 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2020 | Apr. 24, 2018 | Apr. 22, 2014 | |
Restricted Stock Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Expense | $ 2.5 | $ 1.6 | ||||||
Compensation Cost Not yet Recognized | $ 15.5 | $ 15.5 | $ 15.5 | $ 15.5 | ||||
Compensation Cost Not yet Recognized, Period for Recognition | 2 years 9 months 29 days | |||||||
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 | 299,937 | |||||||
Restricted stock grants, shares vested | 296,633 | |||||||
2014 Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock granted | 407,131 | |||||||
Restricted stock grants, shares vested | 172,036 | |||||||
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 | |||||||
2018 Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock granted | 362,514 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Commitments Without Recorded Liability) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Reserve for Unfunded Loan Commitments | $ 12,100,000 | $ 12,100,000 | $ 2,700,000 | ||
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 | ||||
Commitments to Extend Credit [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contract or Notional Amount | 3,144,860,000 | $ 3,144,860,000 | 3,051,681,000 | ||
Financial Standby Letter of Credit [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contract or Notional Amount | 15,677,000 | 15,677,000 | 14,298,000 | ||
Loan Origination Commitments [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contract or Notional Amount | 114,040,000 | 114,040,000 | 39,676,000 | ||
Risk Participation Agreement [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contract or Notional Amount | 40,968,000 | 40,968,000 | 41,022,000 | ||
Loans Held for Sale Origination Commitments [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contract or Notional Amount | 282,025,000 | 282,025,000 | 66,196,000 | ||
Commitments to Sell Loans Secured by one to four Residential Properties [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contract or Notional Amount | 109,994,000 | 109,994,000 | 70,895,000 | ||
Counterparty default losses on forward contracts | 0 | $ 0 | 0 | $ 0 | |
Commitments to Sell Mortgage Backed Securities [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Contract or Notional Amount | $ 259,000,000 | $ 259,000,000 | 239,320,000 | ||
Amount funded out of a total commitment to invest [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Other Commitment | 1,800,000 | ||||
Amount unfunded out of a total commitment to invest [Member] | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Other Commitment | $ 8,200,000 |
DERIVATIVES AND HEDGING (Deriva
DERIVATIVES AND HEDGING (Derivatives Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 43,506 | $ 15,242 |
Liability Derivatives, Fair Value | 43,653 | 15,242 |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 43,506 | 15,242 |
Liability Derivatives, Fair Value | 43,653 | 15,242 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 427 | 3,567 |
Liability Derivatives, Notional/Contract Amount | 427 | 3,567 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 15 | 220 |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 15 | $ 220 |
DERIVATIVES AND HEDGING (Deri_2
DERIVATIVES AND HEDGING (Derivatives Not Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 43,506 | $ 15,242 |
Liability Derivatives, Fair Value | 43,653 | 15,242 |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 43,506 | 15,242 |
Liability Derivatives, Fair Value | 43,653 | 15,242 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 754,325 | 493,607 |
Liability Derivatives, Notional/Contract Amount | 757,909 | 677,132 |
Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 53,964 | 16,090 |
Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 25,422 | 11,420 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 419,497 | 371,957 |
Liability Derivatives, Notional/Contract Amount | 419,497 | 371,957 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 43,491 | 14,982 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 1,500 | 347 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 23,912 | 10,746 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 224,834 | 50,755 |
Liability Derivatives, Notional/Contract Amount | 79,412 | 65,855 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 8,454 | 791 |
Not Designated as Hedging Instrument [Member] | Mortgage loan commitments [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 516 | 190 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional/Contract Amount | 109,994 | 70,895 |
Liability Derivatives, Notional/Contract Amount | 259,000 | 239,320 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 2,019 | 317 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 994 | $ 484 |
DERIVATIVES AND HEDGING (Gain (
DERIVATIVES AND HEDGING (Gain (Loss) On Derivatives Not Designated in Hedging Relationship) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | $ 2,897 | $ (33) | $ 6,885 | $ 825 |
Mortgage loan commitments [Member] | Mortgage banking operations [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | 2,639 | (80) | 7,664 | 1,020 |
Forward sales contracts [Member] | Mortgage banking operations [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income, net | $ 258 | $ 47 | $ (779) | $ (195) |
DERIVATIVES AND HEDGING (Narrat
DERIVATIVES AND HEDGING (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative net liability position | $ 54,900 | $ 15,200 |
Collateral posted | 45,400 | 28,100 |
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | (19,726) | (4,276) |
Interest rate swaps [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | $ (19,726) | $ (4,276) |
DERIVATIVES AND HEDGING (Deri_3
DERIVATIVES AND HEDGING (Derivative Offsetting) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | $ 43,506 | $ 15,242 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | 0 | (40) |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 43,506 | 15,202 |
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 | 43,506 | 15,202 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 43,653 | 15,242 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | (19,726) | (4,276) |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 23,927 | 10,966 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (23,730) | (15,209) |
Derivative Liabilities, Net Amount | 197 | (4,243) |
Interest rate swaps [Member] | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets, Gross Amounts Recognized | 43,506 | 15,242 |
Derivative Assets, Amounts offsett in the Statement of Financial Condition | 0 | (40) |
Derivative Assets, Net Amounts in the Statement of Financial Condition | 43,506 | 15,202 |
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 | 43,506 | 15,202 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liabilities, Gross Amounts Recognized | 43,653 | 15,242 |
Derivative Liabilities, Amounts offset in the Statement of Financial Condition | (19,726) | (4,276) |
Derivative Liabilities, Net Amounts of the Statement of Financial Condition | 23,927 | 10,966 |
Derivative Liabilities, Net Adjustment Per Applicable Master Netting Agreements | 0 | 0 |
Derivative Liabilities, Fair Value of Financial Collateral in the Statement of Financial Condition | (23,730) | (15,209) |
Derivative Liabilities, Net Amount | $ 197 | $ (4,243) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Debit And Credit Card Interchange Fees | $ 5,207 | $ 5,480 | $ 14,762 | $ 22,682 |
Debit and Credit Card Expense | (2,134) | (1,991) | (6,272) | (6,389) |
Merchant Services Expenses | (2,839) | (2,960) | (7,378) | (7,941) |
Other Service Charges | 1,020 | 1,212 | 3,458 | 4,436 |
Total Deposit Fees and Other Service Charges | 8,742 | 10,331 | 26,091 | 36,995 |
Deposit Account [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Mortgage banking operations | 3,904 | 4,931 | 12,269 | 14,347 |
Credit Card, Merchant Discount [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Mortgage banking operations | $ 3,584 | $ 3,659 | $ 9,252 | $ 9,860 |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)location | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Leases [Abstract] | |||||
Number of buildings and offices under operating leases | location | 104 | ||||
Operating right-of-use lease assets | $ 58,114 | $ 58,114 | $ 61,766 | ||
Operating lease liabilities | $ 61,869 | $ 61,869 | $ 65,818 | ||
Weighted-average remaining lease term: Operating leases | 5 years 10 months 24 days | 5 years 10 months 24 days | 6 years 2 months 12 days | ||
Weighted-average discount rate: Operating leases | 3.40% | 3.40% | 3.70% | ||
Operating lease cost | $ 4,104 | $ 3,818 | $ 11,650 | ||
Operating Lease, Expense | $ 12,517 | ||||
Short-term lease costs | 28 | 62 | 78 | 284 | |
Variable lease cost | 619 | 623 | 2,169 | 1,751 | |
Less sublease income | (235) | (228) | (716) | (696) | |
Total lease cost | 4,516 | $ 4,275 | $ 12,989 | ||
Lessee, Operating Leases, Total Cost | 14,048 | ||||
Operating cash flows paid for operating lease amounts | 4,100 | 3,800 | |||
Right-of-use assets in exchange for operating lease liabilities | 4,100 | 8,800 | |||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
Remainder of 2020 | 4,147 | 4,147 | |||
2020 | 15,739 | 15,739 | |||
2021 | 12,830 | 12,830 | |||
2022 | 9,813 | 9,813 | |||
2023 | 7,848 | 7,848 | |||
Thereafter | 18,012 | 18,012 | |||
Total minimum lease payments | 68,389 | 68,389 | |||
Less: amount of lease payments representing interest | (6,520) | (6,520) | |||
Operating lease liabilities | $ 61,869 | 61,869 | $ 65,818 | ||
Undiscounted lease payments under an operating lease that had not yet commenced | $ 0 |
Uncategorized Items - banr-2020
Label | Element | Value |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | $ 14,679,000 |