LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2016

Impaired loans excluding purchased credit impaired loans [Table Text Block]

The following tables provide information on impaired loans, excluding PCI loans, with and without allowance reserves at September 30, 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):



	September 30, 2016
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	1,589	$	—	$	1,541	$	105
Investment properties	17,537		9,691		7,431		739
Multifamily real estate	541		—		529		69
One- to four-family construction	1,176		—		1,176		157
Land and land development:
Residential	3,119		750		1,213		236
Commercial	1,608		997		—		—
Commercial business	3,398		1,057		2,228		346
Agricultural business/farmland	4,452		3,896		476		30
One- to four-family residential	12,262		1,878		10,045		451
Consumer:
Consumer secured by one- to four-family	1,591		—		1,547		11
Consumer—other	490		7		485		3
	$	47,763	$	18,276	$	26,671	$	2,147

	December 31, 2015
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	1,465	$	—	$	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.

Schedule of Loans Receivable, Including Loans Held for Sale

Loans receivable at September 30, 2016 and December 31, 2015 are summarized as follows (dollars in thousands):



	September 30, 2016					December 31, 2015
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	1,340,577		18.1	%	$	1,327,807		18.2	%
Investment properties	1,918,639			25.9		1,765,353			24.1
Multifamily real estate	266,883			3.6		472,976			6.5
Commercial construction	135,487			1.8		72,103			1.0
Multifamily construction	105,669			1.4		63,846			0.9
One- to four-family construction	363,586			4.9		278,469			3.8
Land and land development:
Residential	162,029			2.2		126,773			1.7
Commercial	30,556			0.4		33,179			0.5
Commercial business	1,187,848			16.1		1,207,944			16.5
Agricultural business, including secured by farmland	383,275			5.2		376,531			5.1
One- to four-family residential	846,899			11.5		952,633			13.0
Consumer:
Consumer secured by one- to four-family	497,643			6.7		478,420			6.5
Consumer—other	159,546			2.2		158,470			2.2
Total loans	7,398,637			100.0	%	7,314,504			100.0	%
Less allowance for loan losses	(84,220		)			(78,008		)
Net loans	$	7,314,417				$	7,236,496

Loan amounts are net of unearned loan fees in excess of unamortized costs of $5.6 million as of September 30, 2016 and $5.5 million as of December 31, 2015. Net loans include net discounts on acquired loans of $34.9 million and $43.7 million as of September 30, 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 and nine months ended September 30, 2016 and 2015 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Balance, beginning of period	$	11,035		$	2,149		$	10,375		$	—
Additions	—			—			—			2,239
Accretion to interest income	(1,811		)	(68		)	(6,349		)	(158		)
Disposals	(899		)	—			(1,018		)	—
Reclassifications from non-accretable difference	1,120			—			6,437			—
Balance, end of period	$	9,445		$	2,081		$	9,445		$	2,081

Schedule of Impaired Loans With and Without Specific Reserves

The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2016 and 2015 (in thousands):



	Three Months Ended September 30, 2016				Three Months Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	2,544	$	3	$	1,584	$	3
Investment properties	19,046		74		8,399		76
Multifamily real estate	529		27		362		3
One- to four-family construction	1,176		3		2,530		29
Land and land development:
Residential	1,964		20		2,400		9
Commercial	997		—		1,783		—
Commercial business	4,283		16		1,813		8
Agricultural business/farmland	4,973		6		977		10
One- to four-family residential	11,973		131		18,558		124
Consumer:
Consumer secured by one- to four-family	1,894		5		814		1
Consumer—other	512		3		314		2
	$	49,891	$	288	$	39,534	$	265

	Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	2,673	$	9	$	1,674	$	8
Investment properties	19,775		224		7,890		228
Multifamily real estate	518		36		364		14
One- to four-family construction	1,151		56		2,385		87
Land and land development:
Residential	1,971		63		2,412		40
Commercial	1,005		—		1,861		—
Commercial business	4,470		28		1,699		27
Agricultural business/farmland	4,824		19		905		19
One- to four-family residential	12,193		358		19,349		503
Consumer:
Consumer secured by one- to four-family	1,913		13		894		8
Consumer—other	572		10		353		12
	$	51,065	$	816	$	39,786	$	946

Schedule of Troubled Debt Restructurings

The following tables present TDRs at September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016
	Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	181	$	99	$	280
Investment properties	5,706		—		5,706
Multifamily real estate	351		—		351
One- to four-family construction	1,176		—		1,176
Land and land development:
Residential	1,213		—		1,213
Commercial business	434		—		434
Agricultural business, including secured by farmland	616		87		703
One- to four-family residential	7,657		960		8,617
Consumer:
Consumer secured by one- to four-family	144		8		152
Consumer—other	171		—		171
	$	17,649	$	1,154	$	18,803



	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 September 30, 2016 and December 31, 2015, the Company had commitments to advance funds related to TDRs up to additional amounts of $133,000 and $237,000, respectively.

Schedule of Newly Restructured Loans

new TDRs occurred during the three and nine months ended September 30, 2016. The following table presents new TDRs that occurred during the three and nine month periods ended September 30, 2015 (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
One- to four-family residential	—	—		—		3	607		607
Agricultural business/farmland	—	—		—		2	456		456
	—	$	—	$	—	7	$	2,446	$	2,446


⁽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 and nine-month periods ended September 30, 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 September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 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⁾	$	3,184,915	$	264,899	$	783,363	$	1,140,359	$	372,727	$	840,609	$	654,098	$	7,240,970
Special mention	35,144		582		2,966		20,529		2,648		1,026		133		63,028
Substandard	39,157		1,402		10,998		26,960		7,900		5,264		2,951		94,632
Doubtful	—		—		—		—		—		—		7		7
Loss	—		—		—		—		—		—		—		—
Total loans	$	3,259,216	$	266,883	$	797,327	$	1,187,848	$	383,275	$	846,899	$	657,189	$	7,398,637

Performing loans	$	3,217,896	$	266,448	$	791,427	$	1,180,819	$	378,713	$	842,332	$	655,032	$	7,332,667
Purchased credit-impaired loans	28,544		258		4,153		4,264		807		301		347		38,674
Non-performing loans ⁽²⁾	12,776		177		1,747		2,765		3,755		4,266		1,810		27,296
Total loans	$	3,259,216	$	266,883	$	797,327	$	1,187,848	$	383,275	$	846,899	$	657,189	$	7,398,637

	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 September 30, 2016 and December 31, 2015, in the commercial business category, $202.2 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 September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 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	$	638	$	2,681	$	491	$	3,810	$	14,921	$	1,321,846	$	1,340,577	$	—	$	1,360
Investment properties	504		229		10,912		11,645		13,623		1,893,371		1,918,639		—		11,416
Multifamily real estate	99		—		147		246		258		266,379		266,883		147		30
Commercial construction	—		—		—		—		—		135,487		135,487		—		—
Multifamily construction	—		—		—		—		—		105,669		105,669		—		—
One-to-four-family construction	300		452		—		752		881		361,953		363,586		—		—
Land and land development:
Residential	—		—		750		750		—		161,279		162,029		—		750
Commercial	—		—		997		997		3,272		26,287		30,556		—		997
Commercial business	419		333		2,631		3,383		4,264		1,180,201		1,187,848		—		2,765
Agricultural business, including secured by farmland	3,864		—		3,207		7,071		807		375,397		383,275		—		3,755
One- to four-family residential	488		648		2,683		3,819		301		842,779		846,899		852		3,414
Consumer:
Consumer secured by one- to four-family	1,158		578		816		2,552		80		495,011		497,643		253		1,150
Consumer—other	516		219		323		1,058		267		158,221		159,546		172		235
Total	$	7,986	$	5,140	$	22,957	$	36,083	$	38,674	$	7,323,880	$	7,398,637	$	1,424	$	25,872



	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 and nine months ended September 30, 2016 and 2015 (in thousands):



	For the Three Months Ended September 30, 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	$	20,149		$	1,515		$	31,861	$	17,758		$	2,891		$	2,204		$	3,743		$	1,197	$	81,318
Provision for loan losses	(337		)	(79		)	1,269		(1,351		)	80			(404		)	348			2,474		2,000
Recoveries	34			—			673		433			(138		)	482			73			—		1,557
Charge-offs	—			—			—		(333		)	—			(92		)	(230		)	—		(655		)
Ending balance	$	19,846		$	1,436		$	33,803	$	16,507		$	2,833		$	2,190		$	3,934		$	3,671	$	84,220

	For the Nine Months Ended September 30, 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	(788		)	(2,759		)	5,404		1,519			(284		)	(3,468		)	3,536			840		4,000
Recoveries	98			—			1,268		1,775			39			1,052			529			—		4,761
Charge-offs	(180		)	—			—		(643		)	(567		)	(126		)	(1,033		)	—		(2,549		)
Ending balance	$	19,846		$	1,436		$	33,803	$	16,507		$	2,833		$	2,190		$	3,934		$	3,671	$	84,220



	September 30, 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	$	832	$	65	$	396	$	54	$	—	$	456	$	6	$	—	$	1,809
Collectively evaluated for impairment	19,014		1,371		33,374		16,453		2,833		1,734		3,928		3,671		82,378
Purchased credit-impaired loans	—		—		33		—		—		—		—		—		33
Total allowance for loan losses	$	19,846	$	1,436	$	33,803	$	16,507	$	2,833	$	2,190	$	3,934	$	3,671	$	84,220



Loan balances:
Individually evaluated for impairment	$	16,630	$	351	$	4,137	$	2,026	$	2,758	$	8,270	$	315	$	—	$	34,487
Collectively evaluated for impairment	3,214,042		266,274		789,037		1,181,558		379,710		838,328		656,527		—		7,325,476
Purchased credit-impaired loans	28,544		258		4,153		4,264		807		301		347		—		38,674
Total loans	$	3,259,216	$	266,883	$	797,327	$	1,187,848	$	383,275	$	846,899	$	657,189	$	—	$	7,398,637



	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
Purchased credit-impaired loans	—		—		—		—		—		—		—		—		—
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