LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

3 Months Ended

Mar. 31, 2017

LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

Loans receivable at March 31, 2017 and December 31, 2016 are summarized as follows (dollars in thousands):



	March 31, 2017					December 31, 2016
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	1,361,095		18.4	%	$	1,352,999		18.1	%
Investment properties	2,011,618			27.1		1,986,336			26.7
Multifamily real estate	254,246			3.4		248,150			3.3
Commercial construction	141,505			1.9		124,068			1.7
Multifamily construction	114,728			1.6		124,126			1.7
One- to four-family construction	366,191			4.9		375,704			5.0
Land and land development:
Residential	151,649			2.0		170,004			2.3
Commercial	29,597			0.4		29,184			0.4
Commercial business	1,224,541			16.5		1,207,879			16.2
Agricultural business, including secured by farmland	313,374			4.2		369,156			5.0
One- to four-family residential	802,991			10.8		813,077			10.9
Consumer:
Consumer secured by one- to four-family	493,495			6.7		493,211			6.6
Consumer—other	156,225			2.1		157,254			2.1
Total loans	7,421,255			100.0	%	7,451,148			100.0	%
Less allowance for loan losses	(86,527		)			(85,997		)
Net loans	$	7,334,728				$	7,365,151

Loan amounts are net of unearned loan fees in excess of unamortized costs of $5.2 million as of March 31, 2017 and $5.8 million as of December 31, 2016. Net loans include net discounts on acquired loans of $29.4 million and $31.1 million as of March 31, 2017 and December 31, 2016, respectively.

Purchased credit-impaired loans and purchased non-credit-impaired loans. Purchased loans, including loans acquired in business combinations, are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired (PCI) or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of PCI loans, excluding acquisition accounting adjustments, was $45.8 million at March 31, 2017 and $48.4 million at December 31, 2016. The carrying balance of PCI loans was $30.5 million at March 31, 2017 and $32.3 million at December 31, 2016.

The following table presents the changes in the accretable yield for PCI loans for the three months ended March 31, 2017 and 2016 (in thousands):



	Three Months Ended March 31,
	2017			2016
Balance, beginning of period	$	8,717		$	10,375
Accretion to interest income	(1,320		)	(1,931		)
Disposals	—			(18		)
Reclassifications from non-accretable difference	1,273			2,291
Balance, end of period	$	8,670		$	10,717

As of March 31, 2017 and December 31, 2016, the non-accretable difference between the contractually required payments and cash flows expected to be collected were $14.9 million and $15.7 million, respectively.

Impaired Loans and the Allowance for Loan Losses. A loan is considered impaired when, based on current information and circumstances, the Company determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments. Factors involved in determining impairment include, but are not limited to, the financial condition of the borrower, the value of the underlying collateral and the current status of the economy. Impaired loans are comprised of loans on nonaccrual, troubled debt restructures (TDRs) that are performing under their restructured terms, and loans that are 90 days or more past due, but are still on accrual. PCI loans are considered performing within the scope of the purchased credit-impaired accounting guidance and are not included in the impaired loan tables.

The following tables provide information on impaired loans, excluding PCI loans, with and without allowance reserves at March 31, 2017 and December 31, 2016. 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, 2017
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	2,895	$	2,461	$	202	$	19
Investment properties	8,734		4,449		4,284		399
Multifamily real estate	506		147		347		62
One- to four-family construction	1,180		—		1,180		156
Land and land development:
Residential	3,052		1,133		764		168
Commercial	1,588		978		—		—
Commercial business	3,377		2,700		630		62
Agricultural business/farmland	4,190		3,749		373		238
One- to four-family residential	10,114		3,386		6,665		229
Consumer:
Consumer secured by one- to four-family	1,702		1,495		142		8
Consumer—other	164		87		78		3
	$	37,502	$	20,585	$	14,665	$	1,344

	December 31, 2016
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	3,786	$	3,373	$	203	$	20
Investment properties	9,916		5,565		4,304		408
Multifamily real estate	508		147		349		64
One- to four-family construction	1,180		—		1,180		156
Land and land development:
Residential	3,012		750		1,106		219
Commercial	1,608		998		—		—
Commercial business	3,753		3,074		651		69
Agricultural business/farmland	6,438		6,354		—		—
One- to four-family residential	11,439		3,149		8,026		479
Consumer:
Consumer secured by one- to four-family	1,904		1,721		144		1
Consumer—other	391		226		166		4
	$	43,935	$	25,357	$	16,129	$	1,420


⁽¹⁾	Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed and $8.0 million and $10.0 million, respectively of homogenous and small balance loans that are collectively evaluated for impairment for which a general reserve has been established.


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

The following table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the three months ended March 31, 2017 and 2016 (in thousands):



	Three Months Ended March 31, 2017				Three Months Ended March 31, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	2,916	$	2	$	2,116	$	4
Investment properties	8,893		49		8,415		75
Multifamily real estate	495		4		356		4
One- to four-family construction	1,180		20		1,610		27
Land and land development:
Residential	1,899		17		1,988		10
Commercial	977		—		1,027		—
Commercial business	4,504		7		2,495		8
Agricultural business/farmland	6,282		32		1,215		5
One- to four-family residential	10,404		83		15,181		126
Consumer:
Consumer secured by one- to four-family	1,742		3		1,042		3
Consumer—other	268		3		455		4
	$	39,560	$	220	$	35,900	$	266

Troubled Debt Restructures. Some of the Company’s loans are reported as TDRs. Loans are reported as TDRs when the bank grants one or more concessions to a borrower experiencing financial difficulties that it would not otherwise consider. Examples of such concessions include forgiveness of principal or accrued interest, extending the maturity date(s) or providing a lower interest rate than would be normally available for a transaction of similar risk. Our TDRs have generally not involved forgiveness of amounts due, but almost always include a modification of multiple factors; the most common combination includes interest rate, payment amount and maturity date. As a result of these concessions, restructured loans are impaired as the Company will not collect all amounts due, both principal and interest, in accordance with the terms of the original loan agreement. Loans identified as TDRs are accounted for in accordance with the Company's impaired loan accounting policies.

The following table presents TDRs by accrual and nonaccrual status at March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017						December 31, 2016
	Accrual Status		Nonaccrual Status		Total TDRs		Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	202	$	94	$	296	$	203	$	96	$	299
Investment properties	4,284		—		4,284		4,304		—		4,304
Multifamily real estate	347		—		347		349		—		349
One- to four-family construction	1,180		—		1,180		1,180		—		1,180
Land and land development:
Residential	1,098		—		1,098		1,106		—		1,106
Commercial business	631		—		631		653		—		653
Agricultural business, including secured by farmland	3,111		79		3,190		3,125		79		3,204
One- to four-family residential	6,120		832		6,952		7,678		843		8,521
Consumer:
Consumer secured by one- to four-family	142		4		146		143		6		149
Consumer—other	78		—		78		166		—		166
	$	17,193	$	1,009	$	18,202	$	18,907	$	1,024	$	19,931

As of March 31, 2017 and December 31, 2016, the Company had commitments to advance funds related to TDRs up to additional amounts of $147,000 and $127,000, respectively.

No new TDRs occurred during the three months ended March 31, 2017 or 2016.

There were no TDRs which incurred a payment default within twelve months of the restructure date during the three-month periods ended March 31, 2017 and 2016. A default on a TDR results in either a transfer to nonaccrual status or a partial charge-off, or both.

Credit Quality Indicators: To appropriately and effectively manage the ongoing credit quality of the Company’s loan portfolio, management has implemented a risk-rating or loan grading system for its loans. The system is a tool to evaluate portfolio asset quality throughout each applicable loan’s life as an asset of the Company. Generally, loans and leases are risk rated on an aggregate borrower/relationship basis with individual loans sharing similar ratings. There are some instances when specific situations relating to individual loans will provide the basis for different risk ratings within the aggregate relationship. Loans are graded on a scale of 1 to 9. A description of the general characteristics of these categories is shown below:

Overall Risk Rating Definitions: Risk-ratings contain both qualitative and quantitative measurements and take into account the financial strength of a borrower and the structure of the loan or lease. Consequently, the definitions are to be applied in the context of each lending transaction and judgment must also be used to determine the appropriate risk rating, as it is not unusual for a loan or lease to exhibit characteristics of more than one risk-rating category. Consideration for the final rating is centered in the borrower’s ability to repay, in a timely fashion, both principal and interest. There were no material changes in the risk-rating or loan grading system in the three months ended March 31, 2017.

Risk Rating 1: Exceptional

A credit supported by exceptional financial strength, stability, and liquidity. The risk rating of 1 is reserved for the Company’s top quality loans, generally reserved for investment grade credits underwritten to the standards of institutional credit providers.

Risk Rating 2: Excellent

A credit supported by excellent financial strength, stability and liquidity. The risk rating of 2 is reserved for very strong and highly stable customers with ready access to alternative financing sources.

Risk Rating 3: Strong

A credit supported by good overall financial strength and stability. Collateral margins are strong; cash flow is stable although susceptible to cyclical market changes.

Risk Rating 4: Acceptable

A credit supported by the borrower’s adequate financial strength and stability. Assets and cash flow are reasonably sound and provide for orderly debt reduction. Access to alternative financing sources will be more difficult to obtain.

Risk Rating 5: Watch

A credit with the characteristics of an acceptable credit which requires, however, more than the normal level of supervision and warrants formal quarterly management reporting. Credits in this category are not yet criticized or classified, but due to adverse events or aspects of underwriting require closer than normal supervision. Generally, credits should be watch credits in most cases for six months or less as the impact of stress factors are analyzed.

Risk Rating 6: Special Mention

A credit with potential weaknesses that deserves management’s close attention is risk rated a 6. If left uncorrected, these potential weaknesses will result in deterioration in the capacity to repay debt. A key distinction between Special Mention and Substandard is that in a Special Mention credit, there are identified weaknesses that pose potential risk(s) to the repayment sources, versus well defined weaknesses that pose risk(s) to the repayment sources. Assets in this category are expected to be in this category no more than 9-12 months as the potential weaknesses in the credit are resolved.

Risk Rating 7: Substandard

A credit with well defined weaknesses that jeopardize the ability to repay in full is risk rated a 7. These credits are inadequately protected by either the sound net worth and payment capacity of the borrower or the value of pledged collateral. These are credits with a distinct possibility of loss. Loans headed for foreclosure and/or legal action due to deterioration are rated 7 or worse.

Risk Rating 8: Doubtful

A credit with an extremely high probability of loss is risk rated 8. These credits have all the same critical weaknesses that are found in a substandard loan; however, the weaknesses are elevated to the point that based upon current information, collection or liquidation in full is improbable. While some loss on doubtful credits is expected, pending events may strengthen a credit making the amount and timing of any loss indeterminable. In these situations taking the loss is inappropriate until it is clear that the pending event has failed to strengthen the credit and improve the capacity to repay debt.

Risk Rating 9: Loss

A credit that is considered to be currently uncollectible or of such little value that it is no longer a viable Bank asset is risk rated 9. Losses should be taken in the accounting period in which the credit is determined to be uncollectible. Taking a loss does not mean that a credit has absolutely no recovery or salvage value but, rather, it is not practical or desirable to defer writing off the credit, even though partial recovery may occur in the future.

The following tables present the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017
By class:	Pass (Risk Ratings 1-5)⁽¹⁾		Special		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,323,022	$	5,424	$	32,649	$	—	$	—	$	1,361,095
Investment properties	1,985,876		10,649		15,093		—		—		2,011,618
Multifamily real estate	253,100		—		1,146		—		—		254,246
Commercial construction	141,505		—		—		—		—		141,505
Multifamily construction	114,728		—		—		—		—		114,728
One- to four-family construction	362,563		—		3,628		—		—		366,191
Land and land development:
Residential	149,048		—		2,601		—		—		151,649
Commercial	25,682		—		3,915		—		—		29,597
Commercial business	1,154,776		15,937		53,828		—		—		1,224,541
Agricultural business, including secured by farmland	296,883		8,501		7,990		—		—		313,374
One- to four-family residential	796,664		942		5,385		—		—		802,991
Consumer:
Consumer secured by one- to four-family	490,977		3		2,515		—		—		493,495
Consumer—other	155,763		80		382		—		—		156,225
Total	$	7,250,587	$	41,536	$	129,132	$	—	$	—	$	7,421,255



	December 31, 2016
By class:	Pass (Risk Ratings 1-5)⁽¹⁾		Special		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,313,142	$	14,394	$	25,463	$	—	$	—	$	1,352,999
Investment properties	1,948,822		23,846		13,668		—		—		1,986,336
Multifamily real estate	247,258		—		892		—		—		248,150
Commercial construction	124,068		—		—		—		—		124,068
Multifamily construction	124,126		—		—		—		—		124,126
One- to four-family construction	371,636		—		4,068		—		—		375,704
Land and land development:
Residential	167,764		—		2,240		—		—		170,004
Commercial	25,090		—		4,094		—		—		29,184
Commercial business	1,148,585		35,036		24,258		—		—		1,207,879
Agricultural business, including secured by farmland	356,656		3,335		9,165		—		—		369,156
One- to four-family residential	807,837		967		4,273		—		—		813,077
Consumer:
Consumer secured by one- to four-family	490,877		5		2,327		2		—		493,211
Consumer—other	156,547		108		594		5		—		157,254
Total	$	7,282,408	$	77,691	$	91,042	$	7	$	—	$	7,451,148

⁽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, 2017 and December 31, 2016, in the commercial business category, $242.3 million and $225.0 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.

The following tables provide additional detail on the age analysis of the Company’s past due loans as of March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017
	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	$	5,940	$	47	$	1,662	$	7,649	$	11,639	$	1,341,807	$	1,361,095	$	—	$	2,461
Investment properties	454		—		4,337		4,791		10,391		1,996,436		2,011,618		—		4,449
Multifamily real estate	—		—		147		147		174		253,925		254,246		—		147
Commercial construction	—		—		—		—		—		141,505		141,505		—		—
Multifamily construction	—		—		—		—		—		114,728		114,728		—		—
One-to-four-family construction	2,195		—		—		2,195		840		363,156		366,191		—		—
Land and land development:
Residential	1,107		335		798		2,240		—		149,409		151,649		—		798
Commercial	—		—		977		977		2,937		25,683		29,597		—		977
Commercial business	3,129		481		1,369		4,979		3,416		1,216,146		1,224,541		—		2,700
Agricultural business, including secured by farmland	1,660		—		787		2,447		725		310,202		313,374		—		1,012
One- to four-family residential	2,813		636		2,547		5,996		312		796,683		802,991		545		3,386
Consumer:
Consumer secured by one- to four-family	1,161		—		816		1,977		11		491,507		493,495		297		1,198
Consumer—other	557		96		13		666		56		155,503		156,225		—		87
Total	$	19,016	$	1,595	$	13,453	$	34,064	$	30,501	$	7,356,690	$	7,421,255	$	842	$	17,215



	December 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	$	1,938	$	—	$	2,538	$	4,476	$	13,281	$	1,335,242	$	1,352,999	$	—	$	3,373
Investment properties	117		—		5,447		5,564		10,168		1,970,604		1,986,336		701		4,864
Multifamily real estate	—		—		147		147		139		247,864		248,150		147		—
Commercial construction	—		—		—		—		—		124,068		124,068		—		—
Multifamily construction	—		—		—		—		—		124,126		124,126		—		—
One-to-four-family construction	—		—		—		—		862		374,842		375,704		—		—
Land and land development:
Residential	48		—		750		798		—		169,206		170,004		—		750
Commercial	—		—		998		998		3,016		25,170		29,184		—		998
Commercial business	2,314		647		1,591		4,552		3,821		1,199,506		1,207,879		—		3,074
Agricultural business, including secured by farmland	360		1,244		2,768		4,372		684		364,100		369,156		—		3,229
One-to four-family residential	1,793		249		2,110		4,152		274		808,651		813,077		1,233		2,263
Consumer:
Consumer secured by one- to four-family	932		160		986		2,078		18		491,115		493,211		61		1,660
Consumer—other	1,421		154		147		1,722		59		155,473		157,254		11		215
Total	$	8,923	$	2,454	$	17,482	$	28,859	$	32,322	$	7,389,967	$	7,451,148	$	2,153	$	20,426

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, 2017 and 2016 (in thousands):



	For the Three Months Ended March 31, 2017
	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	$	20,993		$	1,360	$	34,252		$	16,533		$	2,967		$	2,238		$	4,104		$	3,550	$	85,997
Provision for loan losses	(591		)	18		(4,871		)	4,688			324			(409		)	5			2,836		2,000
Recoveries	70			—		83			173			113			145			94			—		678
Charge-offs	—			—		—			(1,626		)	(159		)	—			(363		)	—		(2,148		)
Ending balance	$	20,472		$	1,378	$	29,464		$	19,768		$	3,245		$	1,974		$	3,840		$	6,386	$	86,527



	March 31, 2017
	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	$	419	$	62	$	323	$	62	$	238	$	229	$	11	$	—	$	1,344
Collectively evaluated for impairment	20,053		1,316		29,122		19,706		3,007		1,745		3,829		6,386		85,164
Purchased credit-impaired loans	—		—		19		—		—		—		—		—		19
Total allowance for loan losses	$	20,472	$	1,378	$	29,464	$	19,768	$	3,245	$	1,974	$	3,840	$	6,386	$	86,527



Loan balances:
Individually evaluated for impairment	$	9,506	$	347	$	4,006	$	2,710	$	3,815	$	6,653	$	220	$	—	$	27,257
Collectively evaluated for impairment	3,341,177		253,725		795,887		1,218,415		308,834		796,026		649,433		—		7,363,497
Purchased credit-impaired loans	22,030		174		3,777		3,416		725		312		67		—		30,501
Total loans	$	3,372,713	$	254,246	$	803,670	$	1,224,541	$	313,374	$	802,991	$	649,720	$	—	$	7,421,255



	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

The following tables present the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017
By class:	Pass (Risk Ratings 1-5)⁽¹⁾		Special		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,323,022	$	5,424	$	32,649	$	—	$	—	$	1,361,095
Investment properties	1,985,876		10,649		15,093		—		—		2,011,618
Multifamily real estate	253,100		—		1,146		—		—		254,246
Commercial construction	141,505		—		—		—		—		141,505
Multifamily construction	114,728		—		—		—		—		114,728
One- to four-family construction	362,563		—		3,628		—		—		366,191
Land and land development:
Residential	149,048		—		2,601		—		—		151,649
Commercial	25,682		—		3,915		—		—		29,597
Commercial business	1,154,776		15,937		53,828		—		—		1,224,541
Agricultural business, including secured by farmland	296,883		8,501		7,990		—		—		313,374
One- to four-family residential	796,664		942		5,385		—		—		802,991
Consumer:
Consumer secured by one- to four-family	490,977		3		2,515		—		—		493,495
Consumer—other	155,763		80		382		—		—		156,225
Total	$	7,250,587	$	41,536	$	129,132	$	—	$	—	$	7,421,255



	December 31, 2016
By class:	Pass (Risk Ratings 1-5)⁽¹⁾		Special		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,313,142	$	14,394	$	25,463	$	—	$	—	$	1,352,999
Investment properties	1,948,822		23,846		13,668		—		—		1,986,336
Multifamily real estate	247,258		—		892		—		—		248,150
Commercial construction	124,068		—		—		—		—		124,068
Multifamily construction	124,126		—		—		—		—		124,126
One- to four-family construction	371,636		—		4,068		—		—		375,704
Land and land development:
Residential	167,764		—		2,240		—		—		170,004
Commercial	25,090		—		4,094		—		—		29,184
Commercial business	1,148,585		35,036		24,258		—		—		1,207,879
Agricultural business, including secured by farmland	356,656		3,335		9,165		—		—		369,156
One- to four-family residential	807,837		967		4,273		—		—		813,077
Consumer:
Consumer secured by one- to four-family	490,877		5		2,327		2		—		493,211
Consumer—other	156,547		108		594		5		—		157,254
Total	$	7,282,408	$	77,691	$	91,042	$	7	$	—	$	7,451,148

⁽¹⁾


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

The following tables provide additional detail on the age analysis of the Company’s past due loans as of March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017
	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	$	5,940	$	47	$	1,662	$	7,649	$	11,639	$	1,341,807	$	1,361,095	$	—	$	2,461
Investment properties	454		—		4,337		4,791		10,391		1,996,436		2,011,618		—		4,449
Multifamily real estate	—		—		147		147		174		253,925		254,246		—		147
Commercial construction	—		—		—		—		—		141,505		141,505		—		—
Multifamily construction	—		—		—		—		—		114,728		114,728		—		—
One-to-four-family construction	2,195		—		—		2,195		840		363,156		366,191		—		—
Land and land development:
Residential	1,107		335		798		2,240		—		149,409		151,649		—		798
Commercial	—		—		977		977		2,937		25,683		29,597		—		977
Commercial business	3,129		481		1,369		4,979		3,416		1,216,146		1,224,541		—		2,700
Agricultural business, including secured by farmland	1,660		—		787		2,447		725		310,202		313,374		—		1,012
One- to four-family residential	2,813		636		2,547		5,996		312		796,683		802,991		545		3,386
Consumer:
Consumer secured by one- to four-family	1,161		—		816		1,977		11		491,507		493,495		297		1,198
Consumer—other	557		96		13		666		56		155,503		156,225		—		87
Total	$	19,016	$	1,595	$	13,453	$	34,064	$	30,501	$	7,356,690	$	7,421,255	$	842	$	17,215



	December 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	$	1,938	$	—	$	2,538	$	4,476	$	13,281	$	1,335,242	$	1,352,999	$	—	$	3,373
Investment properties	117		—		5,447		5,564		10,168		1,970,604		1,986,336		701		4,864
Multifamily real estate	—		—		147		147		139		247,864		248,150		147		—
Commercial construction	—		—		—		—		—		124,068		124,068		—		—
Multifamily construction	—		—		—		—		—		124,126		124,126		—		—
One-to-four-family construction	—		—		—		—		862		374,842		375,704		—		—
Land and land development:
Residential	48		—		750		798		—		169,206		170,004		—		750
Commercial	—		—		998		998		3,016		25,170		29,184		—		998
Commercial business	2,314		647		1,591		4,552		3,821		1,199,506		1,207,879		—		3,074
Agricultural business, including secured by farmland	360		1,244		2,768		4,372		684		364,100		369,156		—		3,229
One-to four-family residential	1,793		249		2,110		4,152		274		808,651		813,077		1,233		2,263
Consumer:
Consumer secured by one- to four-family	932		160		986		2,078		18		491,115		493,211		61		1,660
Consumer—other	1,421		154		147		1,722		59		155,473		157,254		11		215
Total	$	8,923	$	2,454	$	17,482	$	28,859	$	32,322	$	7,389,967	$	7,451,148	$	2,153	$	20,426



	For the Three Months Ended March 31, 2017
	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	$	20,993		$	1,360	$	34,252		$	16,533		$	2,967		$	2,238		$	4,104		$	3,550	$	85,997
Provision for loan losses	(591		)	18		(4,871		)	4,688			324			(409		)	5			2,836		2,000
Recoveries	70			—		83			173			113			145			94			—		678
Charge-offs	—			—		—			(1,626		)	(159		)	—			(363		)	—		(2,148		)
Ending balance	$	20,472		$	1,378	$	29,464		$	19,768		$	3,245		$	1,974		$	3,840		$	6,386	$	86,527



	March 31, 2017
	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	$	419	$	62	$	323	$	62	$	238	$	229	$	11	$	—	$	1,344
Collectively evaluated for impairment	20,053		1,316		29,122		19,706		3,007		1,745		3,829		6,386		85,164
Purchased credit-impaired loans	—		—		19		—		—		—		—		—		19
Total allowance for loan losses	$	20,472	$	1,378	$	29,464	$	19,768	$	3,245	$	1,974	$	3,840	$	6,386	$	86,527



Loan balances:
Individually evaluated for impairment	$	9,506	$	347	$	4,006	$	2,710	$	3,815	$	6,653	$	220	$	—	$	27,257
Collectively evaluated for impairment	3,341,177		253,725		795,887		1,218,415		308,834		796,026		649,433		—		7,363,497
Purchased credit-impaired loans	22,030		174		3,777		3,416		725		312		67		—		30,501
Total loans	$	3,372,713	$	254,246	$	803,670	$	1,224,541	$	313,374	$	802,991	$	649,720	$	—	$	7,421,255



	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