LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Loans Receivable, Including Loans Held for Sale

Loans receivable at March 31, 2016 and December 31, 2015 are summarized as follows (dollars in thousands):



	March 31, 2016					December 31, 2015
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	1,328,034		18.5	%	$	1,327,807		18.2	%
Investment properties	1,805,243			25.1		1,765,353			24.1
Multifamily real estate	307,019			4.3		472,976			6.5
Commercial construction	87,711			1.2		72,103			1.0
Multifamily construction	79,737			1.1		63,846			0.9
One- to four-family construction	297,348			4.1		278,469			3.8
Land and land development:
Residential	142,841			2.0		126,773			1.7
Commercial	24,493			0.3		33,179			0.5
Commercial business	1,224,915			17.1		1,207,944			16.5
Agricultural business, including secured by farmland	340,350			4.7		376,531			5.1
One- to four-family residential	910,719			12.7		952,633			13.0
Consumer:
Consumer secured by one- to four-family	481,590			6.7		478,420			6.5
Consumer—other	155,999			2.2		158,470			2.2
Total loans outstanding	7,185,999			100.0	%	7,314,504			100.0	%
Less allowance for loan losses	(78,197		)			(78,008		)
Net loans	$	7,107,802				$	7,236,496

Loan amounts are net of unearned loan fees in excess of unamortized costs of $2.8 million as of March 31, 2016 and $5.5 million as of December 31, 2015. Net loans include net discounts on acquired loans of $42.3 million and $43.7 million as of March 31, 2016 and December 31, 2015, respectively.

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 months ended March 31, 2016 and 2015 (in thousands):



	Three Months Ended March 31,
	2016			2015
Balance, beginning of period	$	10,375		$	—
Additions	—			2,239
Accretion to interest income	(1,931		)	(35		)
Disposals	(18		)	—
Reclassifications from non-accretable difference	2,291			—
Balance, end of period	$	10,717		$	2,204

Schedule of Impaired Loans With and Without Specific Reserves

The following tables provide information on impaired loans, excluding purchased credit impaired loans, with and without allowance reserves at March 31, 2016 and December 31, 2015. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands):



	March 31, 2016
	Unpaid Principal Balance		Recorded Investment				Related Allowance
			Without Allowance ⁽¹⁾		With Allowance ⁽²⁾
Commercial real estate:
Owner-occupied	$	1,985	$	—	$	1,737	$	126
Investment properties	8,774		2,458		5,923		455
Multifamily real estate	357		—		355		68
Commercial construction	—		—		—		—
One- to four-family construction	1,644		—		1,644		40
Land and land development:
Residential	3,139		—		1,984		481
Commercial	1,628		1,027		—		—
Commercial business	2,314		928		1,191		152
Agricultural business/farmland	1,294		563		663		48
One- to four-family residential	16,170		1,344		13,775		564
Consumer:
Consumer secured by one- to four-family	1,096		—		1,036		8
Consumer—other	526		9		427		7
	$	38,927	$	6,329	$	28,735	$	1,949

	December 31, 2015
	Unpaid Principal Balance		Recorded Investment				Related Allowance
			Without Allowance ⁽¹⁾		With Allowance ⁽²⁾
Commercial real estate:
Owner-occupied	$	1,465	$	—	$	1,416	$	70
Investment properties	8,740		2,503		5,846		602
Multifamily real estate	359		—		357		71
Commercial construction	1,141		1,069		—		—
One- to four-family construction	1,741		—		1,741		161
Land and land development:
Residential	3,540		750		1,634		444
Commercial	1,628		1,027		—		—
Commercial business	2,266		538		1,184		150
Agricultural business/farmland	1,309		544		697		43
One- to four-family residential	17,897		2,206		14,418		736
Consumer:
Consumer secured by one- to four-family	776		—		716		23
Consumer—other	433		—		351		7
	$	41,295	$	8,637	$	28,360	$	2,307


⁽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 allowance reserve. 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 months ended March 31, 2016 and 2015 (in thousands):



	Three Months Ended March 31, 2016				Three Months Ended March 31, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	2,116	$	4	$	2,698	$	3
Investment properties	8,415		75		6,490		77
Multifamily real estate	356		4		975		11
Commercial construction	—		—		—		—
One- to four-family construction	1,610		27		3,097		31
Land and land development:
Residential	1,988		10		2,547		16
Commercial	1,027		—		1,624		—
Commercial business	2,495		8		1,172		9
Agricultural business/farmland	1,215		5		2,317		5
One- to four-family residential	15,181		126		24,025		204
Consumer:
Consumer secured by one- to four-family	1,042		3		1,209		3
Consumer—other	455		4		773		4
	$	35,900	$	266	$	46,927	$	363

Schedule of Troubled Debt Restructurings

The following tables present TDRs at March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016
	Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	181	$	102	$	283
Investment properties	5,792		6		5,798
Multifamily real estate	355		—		355
Commercial construction	—		—		—
One- to four-family construction	1,644		—		1,644
Land and land development:
Residential	762		472		1,234
Commercial	—		—		—
Commercial business	561		—		561
Agricultural business, including secured by farmland	563		243		806
One- to four-family residential	9,277		1,401		10,678
Consumer:
Consumer secured by one- to four-family	146		12		158
Consumer—other	169		—		169
	$	19,450	$	2,236	$	21,686



	December 31, 2015
	Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	181	$	104	$	285
Investment properties	5,834		13		5,847
Multifamily real estate	357		—		357
One- to four-family construction	1,741		—		1,741
Land and land development:
Residential	1,151		483		1,634
Commercial business	624		—		624
Agricultural business, including secured by farmland	545		277		822
One- to four-family residential	11,025		1,428		12,453
Consumer:
Consumer secured by one- to four-family	147		14		161
Consumer—other	172		—		172
	$	21,777	$	2,319	$	24,096

As of March 31, 2016 and December 31, 2015, the Company had commitments to advance funds related to TDRs up to additional amounts of $197,000 and $237,000, respectively.

Schedule of Newly Restructured Loans

new TDRs occurred during the three months ended March 31, 2016. The following table presents new TDRs that occurred during the three months ended March 31, 2015 (dollars in thousands):



	Three Months Ended March 31, 2015
	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Recorded Investment ^{(1) (2)}
One- to four-family construction	2	592		592
Agricultural business/farmland	2	288		288
	4	$	880	$	880


⁽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

There were no TDRs which incurred a payment default within twelve months of the restructure date during the three-month periods ended March 31, 2016 and 2015. A default on a TDR results in either a transfer to nonaccrual status or a partial charge-off, or both.

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 March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016
	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⁾	$	3,074,115	$	303,562	$	617,073	$	1,182,263	$	330,929	$	902,335	$	634,494	$	7,044,771
Special mention	19,845		596		3,232		25,152		1,885		903		200		51,813
Substandard	39,317		2,861		11,825		17,500		7,536		7,481		2,886		89,406
Doubtful	—		—		—		—		—		—		9		9
Loss	—		—		—		—		—		—		—		—
Total loans	$	3,133,277	$	307,019	$	632,130	$	1,224,915	$	340,350	$	910,719	$	637,589	$	7,185,999

Performing loans	$	3,090,836	$	305,337	$	625,955	$	1,216,322	$	338,256	$	904,590	$	635,817	$	7,117,113
Purchased credit-impaired loans	38,296		1,682		3,925		7,036		1,431		286		615		53,271
Non-performing loans ⁽²⁾	4,145		—		2,250		1,557		663		5,843		1,157		15,615
Total loans	$	3,133,277	$	307,019	$	632,130	$	1,224,915	$	340,350	$	910,719	$	637,589	$	7,185,999

	December 31, 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⁾	$	3,022,281	$	468,467	$	558,425	$	1,167,933	$	354,760	$	943,098	$	633,734	$	7,148,698
Special mention	30,928		138		2,386		25,286		17,526		1,346		22		77,632
Substandard	39,951		4,371		13,559		14,725		4,245		8,189		3,124		88,164
Doubtful	—		—		—		—		—		—		10		10
Loss	—		—		—		—		—		—		—		—
Total loans	$	3,093,160	$	472,976	$	574,370	$	1,207,944	$	376,531	$	952,633	$	636,890	$	7,314,504

Performing loans	$	3,048,424	$	470,982	$	566,460	$	1,198,475	$	374,305	$	945,968	$	636,068	$	7,240,682
Purchased credit-impaired loans	40,985		1,994		5,650		7,302		1,529		1,066		74		58,600
Non-performing loans ⁽²⁾	3,751		—		2,260		2,167		697		5,599		748		15,222
Total loans	$	3,093,160	$	472,976	$	574,370	$	1,207,944	$	376,531	$	952,633	$	636,890	$	7,314,504

⁽¹⁾

The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, as of March 31, 2016 and December 31, 2015, in the commercial business category, $168.1 million and $150.0 million, respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated.


⁽²⁾	Non-performing loans include non-accrual loans and loans past due greater than 90 days and on accrual status.

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

The following tables provide additional detail on the age analysis of the Company’s past due loans as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Purchased Credit-Impaired		Current		Total Loans		Loans 90 Days or More Past Due and Accruing		Non-accrual
Commercial real estate:
Owner-occupied	$	2,906	$	362	$	526	$	3,794	$	20,135	$	1,304,105	$	1,328,034	$	—	$	1,555
Investment properties	8,484		—		2,458		10,942		18,161		1,776,140		1,805,243		—		2,590
Multifamily real estate	324		—		—		324		1,682		305,013		307,019		—		—
Commercial construction	—		—		—		—		—		87,711		87,711		—		—
Multifamily construction	—		—		—		—		—		79,737		79,737		—		—
One-to-four-family construction	3,457		—		—		3,457		901		292,990		297,348		—		—
Land and land development:
Residential	—		—		750		750		76		142,015		142,841		—		1,222
Commercial	1,027		—		—		1,027		2,948		20,518		24,493		—		1,028
Commercial business	864		469		1,251		2,584		7,036		1,215,295		1,224,915		—		1,558
Agricultural business, including secured by farmland	4,238		972		663		5,873		1,431		333,046		340,350		—		663
One- to four-family residential	2,920		27		4,485		7,432		286		903,001		910,719		1,039		4,803
Consumer:
Consumer secured by one- to four-family	1,436		115		271		1,822		229		479,539		481,590		147		743
Consumer—other	718		166		179		1,063		386		154,550		155,999		104		163
Total	$	26,374	$	2,111	$	10,583	$	39,068	$	53,271	$	7,093,660	$	7,185,999	$	1,290	$	14,325



	December 31, 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	$	3,981	$	139	$	885	$	5,005	$	24,261	$	1,298,541	$	1,327,807	$	—	$	1,235
Investment properties	1,763		132		2,503		4,398		16,724		1,744,231		1,765,353		—		2,516
Multifamily real estate	4		—		—		4		1,994		470,978		472,976		—		—
Commercial construction	—		—		—		—		—		72,103		72,103		—		—
Multifamily construction	771		13		—		784		—		63,062		63,846		—		—
One-to-four-family construction	2,466		220		—		2,686		905		274,878		278,469		—		1,233
Land and land development:
Residential	—		—		747		747		77		125,949		126,773		—		1,027
Commercial	—		96		—		96		4,668		28,415		33,179		—		—
Commercial business	1,844		174		1,024		3,042		7,302		1,197,600		1,207,944		8		2,159
Agricultural business, including secured by farmland	323		729		278		1,330		1,529		373,672		376,531		—		697
One-to four-family residential	620		873		3,811		5,304		1,066		946,263		952,633		899		4,700
Consumer:
Consumer secured by one- to four-family	465		60		38		563		40		477,817		478,420		4		565
Consumer—other	488		155		131		774		34		157,662		158,470		41		138
Total	$	12,725	$	2,591	$	9,417	$	24,733	$	58,600	$	7,231,171	$	7,314,504	$	952	$	14,270

Allowance for Credit Losses on Financing Receivables

The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three months ended March 31, 2016 and 2015 (in thousands):



	For the Three Months Ended March 31, 2016
	Commercial Real Estate			Multifamily Real Estate			Construction and Land		Commercial Business			Agricultural Business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance for loan losses:
Beginning balance	$	20,716		$	4,195		$	27,131	$	13,856		$	3,645		$	4,732		$	902		$	2,831		$	78,008
Provision for loan losses	(842		)	(1,342		)	1,716		681			1,187			(2,574		)	2,822			(1,648		)	—
Recoveries	38			—			471		720			17			12			207			—			1,465
Charge-offs	(180		)	—			—		(139		)	(567		)	—			(390		)	—			(1,276		)
Ending balance	$	19,732		$	2,853		$	29,318	$	15,118		$	4,282		$	2,170		$	3,541		$	1,183		$	78,197



	March 31, 2016
	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	$	578	$	68	$	382	$	60	$	—	$	557	$	9	$	—	$	1,654
Collectively evaluated for impairment	19,144		2,784		28,881		15,058		4,282		1,613		3,529		1,183		76,474
Purchased credit-impaired loans	10		1		55		—		—		—		3		—		69
Total allowance for loan losses	$	19,732	$	2,853	$	29,318	$	15,118	$	4,282	$	2,170	$	3,541	$	1,183	$	78,197



Loan balances:
Individually evaluated for impairment	$	8,432	$	355	$	4,183	$	1,402	$	563	$	9,277	$	402	$	—	$	24,614
Collectively evaluated for impairment	3,086,549		304,982		624,022		1,216,477		338,356		901,156		636,572		—		7,108,114
Purchased credit-impaired loans	38,296		1,682		3,925		7,036		1,431		286		615		—		53,271
Total loans	$	3,133,277	$	307,019	$	632,130	$	1,224,915	$	340,350	$	910,719	$	637,589	$	—	$	7,185,999



	For the Three Months Ended March 31, 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	305		(161		)	745		778			1,434			(237		)	245			(3,109		)	—
Recoveries	14		—			108		178			295			6			46			—			647
Charge-offs	—		—			—		(107		)	(818		)	(75		)	(189		)	—			(1,189		)
Ending balance	$	19,103	$	4,401		$	24,398	$	12,892		$	3,732		$	8,141		$	585		$	2,113		$	75,365



	March 31, 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	$	643	$	84	$	808	$	78	$	3	$	925	$	65	$	—	$	2,606
Collectively evaluated for impairment	18,460		4,317		23,590		12,814		3,729		7,216		520		2,113		72,759
Purchased credit-impaired loans	—		—		—		—		—		—		—		—		—
Total allowance for loan losses	$	19,103	$	4,401	$	24,398	$	12,892	$	3,732	$	8,141	$	585	$	2,113	$	75,365



Loan balances:
Individually evaluated for impairment	$	8,958	$	1,359	$	11,573	$	725	$	289	$	16,036	$	1,145	$	—	$	40,085
Collectively evaluated for impairment	1,550,691		207,328		419,390		775,854		208,346		525,876		372,155		—		4,059,640
Purchased credit impaired loans	4,575		—		—		—		—		1,092		7		—		5,674
Total loans	$	1,564,224	$	208,687	$	430,963	$	776,579	$	208,635	$	543,004	$	373,307	$	—	$	4,105,399