LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Loans Receivable, Including Loans Held for Sale

Loans receivable at June 30, 2018 and December 31, 2017 are summarized as follows (dollars in thousands):



	June 30, 2018					December 31, 2017
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	1,256,730		16.3	%	$	1,284,363		16.9	%
Investment properties	1,920,790			25.0		1,937,423			25.5
Multifamily real estate	330,384			4.3		314,188			4.1
Commercial construction	166,089			2.2		148,435			2.0
Multifamily construction	147,576			1.9		154,662			2.0
One- to four-family construction	480,591			6.3		415,327			5.5
Land and land development:
Residential	163,335			2.1		164,516			2.2
Commercial	22,849			0.3		24,583			0.3
Commercial business	1,312,424			17.1		1,279,894			16.8
Agricultural business, including secured by farmland	336,709			4.4		338,388			4.4
One- to four-family residential	840,470			10.9		848,289			11.2
Consumer:
Consumer secured by one- to four-family	536,007			7.0		522,931			6.9
Consumer—other	170,778			2.2		165,885			2.2
Total loans	7,684,732			100.0	%	7,598,884			100.0	%
Less allowance for loan losses	(93,875		)			(89,028		)
Net loans	$	7,590,857				$	7,509,856

Loan amounts are net of unearned loan fees in excess of unamortized costs of $1.4 million as of June 30, 2018 and were net of unamortized costs of $158,000 as of December 31, 2017. Net loans include net discounts on acquired loans of $18.1 million and $21.1 million as of June 30, 2018 and December 31, 2017, respectively.

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

The following table presents the changes in the accretable yield for PCI loans for the three and six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Balance, beginning of period	$	6,288		$	8,670		$	6,520		$	8,717
Accretion to interest income	(734		)	(2,170		)	(1,831		)	(3,490		)
Disposals	—			(497		)	58			(497		)
Reclassifications from non-accretable difference	555			1,663			1,362			2,936
Balance, end of period	$	6,109		$	7,666		$	6,109		$	7,666

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 June 30, 2018 and December 31, 2017. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands):



	June 30, 2018
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	3,827	$	3,395	$	202	$	21
Investment properties	6,874		946		5,668		257
One- to four-family construction	378		378		—		—
Land and land development:
Residential	1,918		1,582		—		—
Commercial business	3,398		2,674		369		13
Agricultural business/farmland	4,613		1,712		2,560		59
One- to four-family residential	8,027		3,413		4,562		108
Consumer:
Consumer secured by one- to four-family	1,551		1,374		136		6
Consumer—other	125		55		69		4
	$	30,711	$	15,529	$	13,566	$	468

	December 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	$	7,807	$	6,447	$	199	$	18
Investment properties	11,296		4,200		6,884		263
One- to four-family construction	298		298		—		—
Land and land development:
Residential	1,134		798		—		—
Commercial business	4,441		3,424		555		50
Agricultural business/farmland	9,388		6,230		3,031		264
One- to four-family residential	9,547		3,709		5,775		178
Consumer:
Consumer secured by one- to four-family	1,498		1,324		139		7
Consumer—other	134		58		73		2
	$	45,543	$	26,488	$	16,656	$	782


⁽¹⁾	Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $10.7 million and $10.6 million, respectively, of homogenous and small balance loans as of June 30, 2018 and December 31, 2017, 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.

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 six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30, 2018				Three Months Ended June 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	3,544	$	2	$	2,662	$	2
Investment properties	7,561		75		7,438		38
Multifamily real estate	—		—		395		5
One- to four-family construction	314		—		393		7
Land and land development:
Residential	1,582		10		1,727		19
Commercial	—		—		944		—
Commercial business	3,206		5		4,857		50
Agricultural business/farmland	4,357		23		4,339		30
One- to four-family residential	8,226		59		9,503		84
Consumer:
Consumer secured by one- to four-family	1,360		3		1,591		2
Consumer—other	141		1		175		1
	$	30,291	$	178	$	34,024	$	238

	Six Months Ended June 30, 2018				Six Months Ended June 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	4,464	$	5	$	2,789	$	4
Investment properties	8,767		158		8,165		87
Multifamily real estate	—		—		445		9
One- to four-family construction	459		4		787		27
Land and land development:
Residential	1,190		10		1,813		36
Commercial	—		—		961		—
Commercial business	3,606		12		4,692		57
Agricultural business/farmland	6,733		56		5,310		62
One- to four-family residential	8,559		160		9,953		167
Consumer:
Consumer secured by one- to four-family	1,375		5		1,666		5
Consumer—other	145		2		222		4
	$	35,298	$	412	$	36,803	$	458

Schedule of Troubled Debt Restructurings

The following table presents TDRs by accrual and nonaccrual status at June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018						December 31, 2017
	Accrual Status		Nonaccrual Status		Total TDRs		Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	202	$	83	$	285	$	199	$	87	$	286
Investment properties	5,668		—		5,668		6,884		—		6,884
Commercial business	369		—		369		555		—		555
Agricultural business, including secured by farmland	2,560		—		2,560		3,129		29		3,158
One- to four-family residential	4,789		244		5,033		5,136		801		5,937
Consumer:
Consumer secured by one- to four-family	136		—		136		139		—		139
Consumer—other	69		—		69		73		—		73
	$	13,793	$	327	$	14,120	$	16,115	$	917	$	17,032

As of both June 30, 2018 and December 31, 2017, the Company had commitments to advance additional funds related to TDRs up to $23,000 and $45,000, respectively.

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

The following tables present the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
By class:	Pass (Risk Ratings 1-5)⁽¹⁾		Special Mention		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,223,858	$	13,613	$	19,259	$	—	$	—	$	1,256,730
Investment properties	1,912,516		—		8,274		—		—		1,920,790
Multifamily real estate	329,887		—		497		—		—		330,384
Commercial construction	166,089		—		—		—		—		166,089
Multifamily construction	147,576		—		—		—		—		147,576
One- to four-family construction	478,361		—		2,230		—		—		480,591
Land and land development:
Residential	152,083		10,453		799		—		—		163,335
Commercial	20,047		—		2,802		—		—		22,849
Commercial business	1,247,794		17,320		47,205		105		—		1,312,424
Agricultural business, including secured by farmland	323,137		4,952		8,620		—		—		336,709
One- to four-family residential	834,766		536		5,168		—		—		840,470
Consumer:
Consumer secured by one- to four-family	532,758		—		3,249		—		—		536,007
Consumer—other	170,548		11		219		—		—		170,778
Total	$	7,539,420	$	46,885	$	98,322	$	105	$	—	$	7,684,732



	December 31, 2017
By class:	Pass (Risk Ratings 1-5)⁽¹⁾		Special Mention		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,246,125	$	12,227	$	26,011	$	—	$	—	$	1,284,363
Investment properties	1,918,940		9,118		9,365		—		—		1,937,423
Multifamily real estate	313,432		—		756		—		—		314,188
Commercial construction	148,435		—		—		—		—		148,435
Multifamily construction	154,662		—		—		—		—		154,662
One- to four-family construction	411,802		—		3,525		—		—		415,327
Land and land development:
Residential	153,073		10,554		889		—		—		164,516
Commercial	21,665		—		2,918		—		—		24,583
Commercial business	1,213,365		12,135		54,282		112		—		1,279,894
Agricultural business, including secured by farmland	321,110		3,852		13,426		—		—		338,388
One- to four-family residential	842,304		569		5,416		—		—		848,289
Consumer:
Consumer secured by one- to four-family	520,675		—		2,256		—		—		522,931
Consumer—other	165,594		13		278		—		—		165,885
Total	$	7,431,182	$	48,468	$	119,122	$	112	$	—	$	7,598,884

⁽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 June 30, 2018 and December 31, 2017, in the commercial business category, $558.4 million and $296.8 million, respectively, of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated.

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 June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
	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	$	390	$	208	$	2,834	$	3,432	$	6,157	$	1,247,141	$	1,256,730	$	—	$	3,395
Investment properties	342		593		852		1,787		6,448		1,912,555		1,920,790		—		946
Multifamily real estate	—		—		—		—		164		330,220		330,384		—		—
Commercial construction	—		—		—		—		—		166,089		166,089		—		—
Multifamily construction	—		—		—		—		—		147,576		147,576		—		—
One-to-four-family construction	—		450		186		636		453		479,502		480,591		—		378
Land and land development:
Residential	—		—		1,582		1,582		—		161,753		163,335		784		798
Commercial	—		—		—		—		2,802		20,047		22,849		—		—
Commercial business	3,140		819		2,024		5,983		1,454		1,304,987		1,312,424		1		2,673
Agricultural business, including secured by farmland	320		—		1,712		2,032		396		334,281		336,709		—		1,712
One- to four-family residential	455		391		2,463		3,309		121		837,040		840,470		905		2,281
Consumer:
Consumer secured by one- to four-family	1,028		490		796		2,314		—		533,693		536,007		249		1,125
Consumer—other	439		120		4		563		68		170,147		170,778		4		51
Total	$	6,114	$	3,071	$	12,453	$	21,638	$	18,063	$	7,645,031	$	7,684,732	$	1,943	$	13,359



	December 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	$	5,323	$	76	$	5,490	$	10,889	$	7,682	$	1,265,792	$	1,284,363	$	—	$	6,447
Investment properties	1,737		—		4,096		5,833		7,166		1,924,424		1,937,423		—		4,199
Multifamily real estate	105		—		—		105		169		313,914		314,188		—		—
Commercial construction	—		—		—		—		—		148,435		148,435		—		—
Multifamily construction	3,416		—		—		3,416		—		151,246		154,662		—		—
One-to-four-family construction	4,892		725		298		5,915		446		408,966		415,327		298		—
Land and land development:
Residential	—		—		798		798		—		163,718		164,516		—		798
Commercial	—		—		—		—		2,919		21,664		24,583		—		—
Commercial business	1,574		404		2,577		4,555		2,159		1,273,180		1,279,894		18		3,406
Agricultural business, including secured by farmland	598		533		2,017		3,148		565		334,675		338,388		—		6,132
One-to four-family residential	4,475		1,241		2,715		8,431		136		839,722		848,289		1,085		3,264
Consumer:
Consumer secured by one- to four-family	1,355		62		713		2,130		—		520,801		522,931		85		1,239
Consumer—other	609		136		15		760		68		165,057		165,885		—		58
Total	$	24,084	$	3,177	$	18,719	$	45,980	$	21,310	$	7,531,594	$	7,598,884	$	1,486	$	25,543

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 six months ended June 30, 2018 and 2017 (in thousands):



	For the Three Months Ended June 30, 2018
	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	$	23,461		$	2,592	$	28,766		$	19,885		$	2,999		$	3,779		$	5,514		$	5,211		$	92,207
Provision for loan losses	1,035			1,126		(1,743		)	(469		)	451			(203		)	264			1,539			2,000
Recoveries	216			—		11			100			41			356			106			—			830
Charge-offs	(299		)	—		—			(375		)	(329		)	—			(159		)	—			(1,162		)
Ending balance	$	24,413		$	3,718	$	27,034		$	19,141		$	3,162		$	3,932		$	5,725		$	6,750		$	93,875

	For the Six Months Ended June 30, 2018
	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	$	22,824		$	1,633	$	27,568		$	18,311		$	4,053		$	2,055		$	3,866		$	8,718		$	89,028
Provision for loan losses	320			2,085		(719		)	1,454			(596		)	1,247			2,177			(1,968		)	4,000
Recoveries	1,568			—		185			270			41			646			218			—			2,928
Charge-offs	(299		)	—		—			(894		)	(336		)	(16		)	(536		)	—			(2,081		)
Ending balance	$	24,413		$	3,718	$	27,034		$	19,141		$	3,162		$	3,932		$	5,725		$	6,750		$	93,875



	June 30, 2018
	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	$	278	$	—	$	—	$	13	$	59	$	108	$	10	$	—	$	468
Collectively evaluated for impairment	24,135		3,718		27,034		19,095		3,043		3,824		5,715		6,750		93,314
Purchased credit-impaired loans	—		—		—		33		60		—		—		—		93
Total allowance for loan losses	$	24,413	$	3,718	$	27,034	$	19,141	$	3,162	$	3,932	$	5,725	$	6,750	$	93,875



Loan balances:
Individually evaluated for impairment	$	8,998	$	—	$	750	$	369	$	3,298	$	4,789	$	205	$	—	$	18,409
Collectively evaluated for impairment	3,155,917		330,220		976,435		1,310,601		333,015		835,560		706,512		—		7,648,260
Purchased credit-impaired loans	12,605		164		3,255		1,454		396		121		68		—		18,063
Total loans	$	3,177,520	$	330,384	$	980,440	$	1,312,424	$	336,709	$	840,470	$	706,785	$	—	$	7,684,732



	For the Three Months Ended June 30, 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	$	20,472		$	1,378	$	29,464		$	19,768		$	3,245		$	1,974		$	3,840		$	6,386	$	86,527
Provision for loan losses	3,543			173		(3,176		)	356			648			(73		)	366			163		2,000
Recoveries	264			11		1,024			171			19			109			101			—		1,699
Charge-offs	(47		)	—		—			(1,169		)	(104		)	—			(320		)	—		(1,640		)
Ending balance	$	24,232		$	1,562	$	27,312		$	19,126		$	3,808		$	2,010		$	3,987		$	6,549	$	88,586

	For the Six Months Ended June 30, 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	2,952			191		(8,047		)	5,044			972			(482		)	371			2,999		4,000
Recoveries	334			11		1,107			344			132			254			195			—		2,377
Charge-offs	(47		)	—		—			(2,795		)	(263		)	—			(683		)	—		(3,788		)
Ending balance	$	24,232		$	1,562	$	27,312		$	19,126		$	3,808		$	2,010		$	3,987		$	6,549	$	88,586



	June 30, 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	$	270	$	61	$	116	$	59	$	238	$	324	$	12	$	—	$	1,080
Collectively evaluated for impairment	23,962		1,501		27,183		19,067		3,570		1,686		3,975		6,549		87,493
Purchased credit-impaired loans	—		—		13		—		—		—		—		—		13
Total allowance for loan losses	$	24,232	$	1,562	$	27,312	$	19,126	$	3,808	$	2,010	$	3,987	$	6,549	$	88,586



Loan balances:
Individually evaluated for impairment	$	8,164	$	345	$	2,281	$	6,737	$	3,799	$	5,228	$	220	$	—	$	26,774
Collectively evaluated for impairment	3,306,767		287,923		805,411		1,276,499		339,883		794,486		687,553		—		7,498,522
Purchased credit impaired loans	18,238		174		3,810		2,968		730		294		53		—		26,267
Total loans	$	3,333,169	$	288,442	$	811,502	$	1,286,204	$	344,412	$	800,008	$	687,826	$	—	$	7,551,563