LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of Loans Receivable, Including Loans Held for Sale

Loans receivable, including loans held for sale, at September 30, 2015 and December 31, 2014 are summarized as follows (dollars in thousands):



	September 30, 2015					December 31, 2014
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	635,146		14.5	%	$	546,783		14.3	%
Investment properties	1,062,418			24.3		856,942			22.3
Multifamily real estate	198,874			4.6		167,524			4.4
Commercial construction	47,490			1.1		17,337			0.4
Multifamily construction	72,987			1.7		60,193			1.6
One- to four-family construction	246,715			5.6		219,889			5.7
Land and land development:
Residential	111,091			2.5		102,435			2.7
Commercial	15,517			0.4		11,152			0.3
Commercial business	812,070			18.6		723,964			18.9
Agricultural business, including secured by farmland	242,556			5.5		238,499			6.2
One- to four-family residential	536,325			12.3		539,894			14.1
Consumer:
Consumer secured by one- to four-family	250,029			5.7		222,205			5.8
Consumer—other	141,376			3.2		127,003			3.3
Total loans outstanding	4,372,594			100.0	%	3,833,820			100.0	%
Less allowance for loan losses	(77,320		)			(75,907		)
Net loans	$	4,295,274				$	3,757,913

Loan amounts are net of unearned loan fees in excess of unamortized costs of $10.0 million as of September 30, 2015 and $5.8 million as of December 31, 2014. Net loans include net discounts on acquired loans of $4.3 million and $148,000 as of September 30, 2015 and December 31, 2014, respectively.

Schedule of Adjustable and Fixed Rate Loans by Contractual Maturity Date

The Company originates both adjustable- and fixed-rate loans. The maturity and repricing composition of those loans, less undisbursed amounts and deferred fees and origination costs, at September 30, 2015 were as follows (in thousands):



	September 30, 2015
Fixed-rate (term to maturity):
Maturing in one year or less	$	150,889
Maturing after one year through three years	203,434
Maturing after three years through five years	165,674
Maturing after five years through ten years	272,660
Maturing after ten years	482,673
Total fixed-rate loans	1,275,330
Adjustable-rate (term to rate adjustment):
Maturing or repricing in one year or less	1,631,649
Maturing or repricing after one year through three years	606,056
Maturing or repricing after three years through five years	605,590
Maturing or repricing after five years through ten years	225,164
Maturing or repricing after ten years	28,805
Total adjustable-rate loans	3,097,264
Total loans	$	4,372,594

Schedule of Purchased Credit-Impaired Loans, Changes in Accretable Yield

The following table presents the changes in the accretable yield for purchased credit-impaired loans for the three and nine months ended September 30, 2015 and 2014 (in thousands):



	Three Months Ended September 30					Nine Months Ended September 30
	2015			2014		2015			2014
Balance, beginning of period	$	2,149		$	—	$	—		$	—
Additions	—			—		2,239			—
Accretion to interest income	(68		)	—		(158		)	—
Disposals	—			—		—			—
Reclassifications from non-accretable difference	—			—		—			—
Balance, end of period	$	2,081		$	—	$	2,081		$	—

Schedule of Impaired Loans With and Without Specific Reserves

The following tables provide information on impaired loans with and without allowance reserves at September 30, 2015 and December 31, 2014. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands):



	September 30, 2015
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	1,619	$	129	$	1,439	$	57
Investment properties	8,788		—		8,384		988
Multifamily real estate	361		—		361		73
One- to four-family construction	2,582		—		2,582		216
Land and land development:
Residential	3,552		750		1,647		455
Commercial	1,899		1,549		—		—
Commercial business	1,878		9		1,620		226
Agricultural business/farmland	1,078		—		1,004		40
One- to four-family residential	19,555		2,148		16,161		716
Consumer:
Consumer secured by one- to four-family	985		72		734		56
Consumer—other	398		85		231		6
	$	42,695	$	4,742	$	34,163	$	2,833

	December 31, 2014
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	1,598	$	966	$	582	$	24
Investment properties	6,458		30		6,023		729
Multifamily real estate	786		—		786		86
One- to four-family construction	3,923		—		3,923		640
Land and land development:
Residential	3,710		1,275		1,280		346
Commercial business	1,502		—		1,276		128
Agricultural business/farmland	1,597		744		854		26
One- to four-family residential	27,855		1,865		24,529		1,032
Consumer:
Consumer secured by one- to four-family	1,256		73		1,077		75
Consumer—other	634		138		470		6
	$	49,319	$	5,091	$	40,800	$	3,092


⁽¹⁾	Loans without an allowance reserve have been individually evaluated for impairment and that evaluation concluded that no reserve was needed.


⁽²⁾	Includes general reserves for loans evaluated in pools of homogeneous loans and loans with a specific reserve allowance. Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value.

The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2015 and 2014 (in thousands):



	Three Months Ended September 30, 2015				Three Months Ended September 30, 2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	1,584	$	3	$	3,304	$	22
Investment properties	8,399		76		6,383		78
Multifamily real estate	362		3		1,195		(93		)
One- to four-family construction	2,530		29		3,625		17
Land and land development:
Residential	2,400		9		2,926		21
Commercial	1,783		—		—		—
Commercial business	1,813		8		2,240		19
Agricultural business/farmland	977		10		229		—
One- to four-family residential	18,558		124		28,117		282
Consumer:
Consumer secured by one- to four-family	814		1		970		4
Consumer—other	314		2		924		12
	$	39,534	$	265	$	49,913	$	362

	Nine Months Ended September 30, 2015				Nine Months Ended September 30, 2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	1,674	$	8	$	3,134	$	46
Investment properties	7,890		228		6,449		238
Multifamily real estate	364		14		1,220		34
One- to four-family construction	2,385		87		3,501		120
Land and land development:
Residential	2,412		40		2,937		67
Commercial	1,861		—		—		—
Commercial business	1,699		27		2,225		52
Agricultural business/farmland	905		19		102		—
One- to four-family residential	19,349		503		28,896		748
Consumer:
Consumer secured by one- to four-family	894		8		1,025		13
Consumer—other	353		12		938		27
	$	39,786	$	946	$	50,427	$	1,345

Schedule of Troubled Debt Restructurings

The following tables present TDRs at September 30, 2015 and December 31, 2014 (in thousands):



	September 30, 2015
	Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	182	$	104	$	286
Investment properties	5,871		13		5,884
Multifamily real estate	361		—		361
One- to four-family construction	2,582		—		2,582
Land and land development:
Residential	1,153		493		1,646
Commercial business	643		—		643
Agricultural business, including secured by farmland	776		—		776
One- to four-family residential	12,090		1,451		13,541
Consumer:
Consumer secured by one- to four-family	147		56		203
Consumer—other	176		—		176
	$	23,981	$	2,117	$	26,098



	December 31, 2014
	Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	183	$	109	$	292
Investment properties	6,021		32		6,053
Multifamily real estate	786		—		786
One- to four-family construction	3,923		—		3,923
Land and land development:
Residential	1,279		525		1,804
Commercial business	739		87		826
One- to four-family residential	15,793		1,363		17,156
Consumer:
Consumer secured by one- to four-family	233		117		350
Consumer—other	197		116		313
	$	29,154	$	2,349	$	31,503

As of September 30, 2015 and December 31, 2014, the Company had commitments to advance funds related to TDRs up to additional amounts of $284,000 and $2.1 million, respectively.

Schedule of Newly Restructured Loans

The following tables present new TDRs that occurred during the three and nine months ended September 30, 2015 and 2014 (dollars in thousands):



	Three Months Ended September 30, 2015					Nine Months Ended September 30, 2015
	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Contracts	Pre- modification Outstanding Recorded Investment		Post- modification Outstanding Recorded Investment
Recorded Investment ^{(1) (2)}
Land and land development—residential	—	$	—	$	—	2	$	1,383	$	1,383
Agricultural business/farmland	—	—		—		3	607		607
One- to four-family residential	—	—		—		2	456		456
	—	$	—	$	—	7	$	2,446	$	2,446

	Three Months Ended September 30, 2014					Nine Months Ended September 30, 2014
	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Contracts	Pre- modification Outstanding Recorded Investment		Post- modification Outstanding Recorded Investment
Recorded Investment ^{(1) (2)}
Commercial real estate
Owner-occupied	—	$	—	$	—	1	$	94	$	94
One- to four-family construction	1	388		388		5	1,369		1,369
Commercial business	—	—		—		1	100		100
One- to four-family residential	2	434		434		2	434		434
Consumer-other	—	—		—		1	9		9
	3	$	822	$	822	10	$	2,006	$	2,006


⁽¹⁾	Since these loans were already considered classified and/or on nonaccrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses.


⁽²⁾	The majority of these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate.

Schedule of Troubled Debt Restructurings Which Incurred A Payment Default

The following table presents TDRs which incurred a payment default within twelve months of the restructure date during the three and nine-month periods ended September 30, 2015 and 2014. A default on a TDR results in either a transfer to nonaccrual status or a partial charge-off, or both.




	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
One- to four-family residential	$	387	$	—	$	387	$	—
Total	$	387	$	—	$	387	$	—

Schedule of Risk-Rated Loans and Non-Risk Rated Loans by Grade and Other Characteristics

The following table shows the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of September 30, 2015 and December 31, 2014 (in thousands):



	September 30, 2015
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Total Loans
Risk-rated loans:
Pass (Risk Ratings 1-5) ⁽¹⁾	$	1,667,522	$	195,755	$	478,876	$	793,518	$	225,743	$	527,244	$	388,523	$	4,277,181
Special mention	10,108		—		—		14,189		14,960		149		82		39,488
Substandard	19,934		3,119		14,924		4,363		1,853		8,932		2,788		55,913
Doubtful	—		—		—		—		—		—		12		12
Loss	—		—		—		—		—		—		—		—
Total loans	$	1,697,564	$	198,874	$	493,800	$	812,070	$	242,556	$	536,325	$	391,405	$	4,372,594

Performing loans	$	1,691,857	$	198,318	$	485,215	$	811,085	$	242,328	$	530,106	$	390,155	$	4,349,064
Non-performing loans ⁽²⁾	5,707		556		8,585		985		228		6,219		1,250		23,530
Total loans	$	1,697,564	$	198,874	$	493,800	$	812,070	$	242,556	$	536,325	$	391,405	$	4,372,594

	December 31, 2014
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Total Loans
Risk-rated loans:
Pass (Risk Ratings 1-5) ⁽¹⁾	$	1,375,885	$	166,712	$	395,356	$	691,143	$	234,101	$	527,384	$	346,456	$	3,737,037
Special mention	3,717		—		—		27,453		1,055		63		140		32,428
Substandard	24,123		812		15,650		5,368		3,343		12,447		2,601		64,344
Doubtful	—		—		—		—		—		—		11		11
Loss	—		—		—		—		—		—		—		—
Total loans	$	1,403,725	$	167,524	$	411,006	$	723,964	$	238,499	$	539,894	$	349,208	$	3,833,820

Performing loans	$	1,402,593	$	167,524	$	409,731	$	723,427	$	236,902	$	528,965	$	347,942	$	3,817,084
Non-performing loans ⁽²⁾	1,132		—		1,275		537		1,597		10,929		1,266		16,736
Total loans	$	1,403,725	$	167,524	$	411,006	$	723,964	$	238,499	$	539,894	$	349,208	$	3,833,820

⁽¹⁾

The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, as of September 30, 2015 and December 31, 2014, in the commercial business category, $146 million and $115 million, respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated.


⁽²⁾	Non-performing loans include non-accrual loans, loans past due greater than 90 days and on accrual status and purchased credit-impaired loans which are included at their unpaid principal balance.

Schedule of Age Analysis of the Company's Past Due Loans

The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2015 and December 31, 2014 (in thousands):



	September 30, 2015
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Purchased Credit-Impaired		Current		Total Loans		Loans 90 Days or More Past Due and Accruing		Non-accrual
Commercial real estate:
Owner-occupied	$	1,926	$	779	$	300	$	3,005	$	1,131	$	631,010	$	635,146	$	—	$	1,387
Investment properties	89		—		2,500		2,589		—		1,059,829		1,062,418		—		2,512
Multifamily real estate	—		46		—		46		441		198,387		198,874		—		—
Commercial construction	—		—		—		—		—		47,490		47,490		—		—
Multifamily construction	—		—		—		—		—		72,987		72,987		—		—
One-to-four-family construction	—		242		—		242		901		245,572		246,715		—		—
Land and land development:
Residential	154		286		749		1,189		—		109,902		111,091		—		1,243
Commercial	—		—		2,612		2,612		2,624		10,281		15,517		—		1,549
Commercial business	165		—		755		920		—		811,150		812,070		5		980
Agricultural business, including secured by farmland	23		—		90		113		—		242,443		242,556		—		228
One- to four-family residential	204		387		4,390		4,981		—		531,344		536,325		1,285		4,935
Consumer:
Consumer secured by one- to four-family	133		28		91		252		—		249,777		250,029		—		659
Consumer—other	272		315		101		688		312		140,376		141,376		11		130
Total	$	2,966	$	2,083	$	11,588	$	16,637	$	5,409	$	4,350,548	$	4,372,594	$	1,301	$	13,623



	December 31, 2014
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Purchased Credit-Impaired		Current		Total Loans		Loans 90 Days or More Past Due and Accruing		Non-accrual
Commercial real estate:
Owner-occupied	$	—	$	1,984	$	—	$	1,984	$	—	$	544,799	$	546,783	$	—	$	1,132
Investment properties	639		—		—		639		—		856,303		856,942		—		—
Multifamily real estate	—		—		—		—		—		167,524		167,524		—		—
Commercial construction	—		—		—		—		—		17,337		17,337		—		1,275
Multifamily construction	—		—		—		—		—		60,193		60,193		—		—
One-to-four-family construction	840		—		—		840		—		219,049		219,889		—		—
Land and land development:
Residential	759		—		750		1,509		—		100,926		102,435		—		—
Commercial	—		—		—		—		—		11,152		11,152		—		—
Commercial business	775		35		100		910		—		723,054		723,964		—		537
Agricultural business, including secured by farmland	597		466		744		1,807		—		236,692		238,499		—		1,597
One-to four-family residential	877		1,623		7,526		10,026		—		529,868		539,894		2,095		8,834
Consumer:
Consumer secured by one- to four-family	59		60		139		258		—		221,947		222,205		79		1,187
Consumer—other	491		88		293		872		—		126,131		127,003		—		—
Total	$	5,037	$	4,256	$	9,552	$	18,845	$	—	$	3,814,975	$	3,833,820	$	2,174	$	14,562

Allowance for Credit Losses on Financing Receivables

The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three and nine months ended September 30, 2015 and 2014 (in thousands):



	For the Three Months Ended September 30, 2015
	Commercial Real Estate			Multifamily Real Estate			Construction and Land			Commercial Business			Agricultural Business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance for loan losses:
Beginning balance	$	18,948		$	4,273		$	25,415		$	13,184		$	2,679		$	8,542		$	780		$	3,508		$	77,329
Provision for loan losses	317			90			1,929			(235		)	(292		)	(635		)	330			(1,504		)	—
Recoveries	375			—			282			128			146			42			91			—			1,064
Charge-offs	—			—			(352		)	(312		)	—			(12		)	(397		)	—			(1,073		)
Ending balance	$	19,640		$	4,363		$	27,274		$	12,765		$	2,533		$	7,937		$	804		$	2,004		$	77,320

	For the Nine Months Ended September 30, 2015
	Commercial Real Estate			Multifamily Real Estate			Construction and Land			Commercial Business			Agricultural business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance for loan losses:
Beginning balance	$	18,784		$	4,562		$	23,545		$	12,043		$	2,821		$	8,447		$	483		$	5,222		$	75,907
Provision for loan losses	333			(312		)	2,847			664			(890		)	(524		)	1,100			(3,218		)	—
Recoveries	587			113			1,234			803			1,666			141			369			—			4,913
Charge-offs	(64		)	—			(352		)	(745		)	(1,064		)	(127		)	(1,148		)	—			(3,500		)
Ending balance	$	19,640		$	4,363		$	27,274		$	12,765		$	2,533		$	7,937		$	804		$	2,004		$	77,320



	September 30, 2015
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	612	$	73	$	473	$	74	$	17	$	706	$	60	$	—	$	2,015
Collectively evaluated for impairment	19,028		4,290		26,801		12,691		2,516		7,231		744		2,004		75,305
Total allowance for loan losses	$	19,640	$	4,363	$	27,274	$	12,765	$	2,533	$	7,937	$	804	$	2,004	$	77,320



Loan balances:
Individually evaluated for impairment	$	6,182	$	361	$	6,034	$	644	$	776	$	13,952	$	528	$	—	$	28,477
Collectively evaluated for impairment	1,690,251		198,072		484,241		811,426		241,780		522,373		390,565		—		4,338,708
Purchased credit-impaired loans	1,131		441		3,525		—		—		—		312		—		5,409
Total loans	$	1,697,564	$	198,874	$	493,800	$	812,070	$	242,556	$	536,325	$	391,405	$	—	$	4,372,594



	For the Three Months Ended September 30, 2014
	Commercial Real Estate			Multifamily Real Estate			Construction and Land			Commercial Business			Agricultural Business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance for loan losses:
Beginning balance	$	18,884		$	5,765		$	17,837		$	12,014		$	2,824		$	9,270		$	748		$	6,968		$	74,310
Provision for loan losses	527			(853		)	2,858			490			(339		)	(38		)	603			(3,248		)	—
Recoveries	94			—			84			256			587			143			53			—			1,217
Charge-offs	—			(20		)	—			(83		)	(125		)	(239		)	(729		)	—			(1,196		)
Ending balance	$	19,505		$	4,892		$	20,779		$	12,677		$	2,947		$	9,136		$	675		$	3,720		$	74,331

	For the Nine Months Ended September 30, 2014
	Commercial Real Estate			Multifamily Real Estate			Construction and Land			Commercial Business			Agricultural business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance for loan losses:
Beginning balance	$	16,759		$	5,306		$	17,640		$	11,773		$	2,841		$	11,486		$	1,335		$	7,118		$	74,258
Provision for loan losses	3,321			(394		)	2,558			1,150			(1,017		)	(2,253		)	33			(3,398		)	—
Recoveries	664			—			788			835			1,248			535			393			—			4,463
Charge-offs	(1,239		)	(20		)	(207		)	(1,081		)	(125		)	(632		)	(1,086		)	—			(4,390		)
Ending balance	$	19,505		$	4,892		$	20,779		$	12,677		$	2,947		$	9,136		$	675		$	3,720		$	74,331



	September 30, 2014
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	755	$	91	$	1,269	$	103	$	—	$	1,143	$	58	$	—	$	3,419
Collectively evaluated for impairment	18,750		4,801		19,510		12,574		2,947		7,993		617		3,720		70,912
Total allowance for loan losses	$	19,505	$	4,892	$	20,779	$	12,677	$	2,947	$	9,136	$	675	$	3,720	$	74,331



Loan balances:
Individually evaluated for impairment	$	8,070	$	791	$	6,643	$	880	$	—	$	18,890	$	649	$	—	$	35,923
Collectively evaluated for impairment	1,392,547		183,153		374,864		727,208		240,048		508,381		344,571		—		3,770,772
Total loans	$	1,400,617	$	183,944	$	381,507	$	728,088	$	240,048	$	527,271	$	345,220	$	—	$	3,806,695