LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

Loans receivable at September 30, 2019 and December 31, 2018 are summarized as follows (dollars in thousands):

	September 30, 2019					December 31, 2018
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	1,463,303		16.6	%	$	1,430,097		16.4	%
Investment properties	2,150,938			24.3		2,131,059			24.5
Multifamily real estate	399,814			4.5		368,836			4.2
Commercial construction	190,532			2.2		172,410			2.0
Multifamily construction	214,878			2.4		184,630			2.1
One- to four-family construction	488,945			5.5		534,678			6.2
Land and land development:
Residential	163,829			1.9		188,508			2.2
Commercial	26,119			0.3		27,278			0.3
Commercial business	1,619,391			18.3		1,483,614			17.1
Agricultural business, including secured by farmland	390,505			4.4		404,873			4.7
One- to four-family residential	947,475			10.7		973,616			11.2
Consumer:
Consumer secured by one- to four-family	566,792			6.5		568,979			6.6
Consumer—other	212,847			2.4		216,017			2.5
Total loans	8,835,368			100.0	%	8,684,595			100.0	%
Less allowance for loan losses	(97,801		)			(96,485		)
Net loans	$	8,737,567				$	8,588,110

Loan amounts are net of unearned loan fees in excess of unamortized costs of $43,000 as of September 30, 2019 and $1.4 million as of December 31, 2018. Net loans include net discounts on acquired loans of $21.3 million and $25.7 million as of September 30, 2019 and December 31, 2018, 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 $19.7 million at September 30, 2019 and $22.0 million at December 31, 2018. The carrying balance of PCI loans was $12.6 million at September 30, 2019 and $14.4 million at December 31, 2018.

The following table presents the changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2019 and 2018 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance, beginning of period	$	4,743		$	6,109		$	5,216		$	6,520
Accretion to interest income	(423		)	(2,907		)	(1,372		)	(4,738		)
Disposals	—			—			—			58
Reclassifications from non-accretable difference	11			1,873			487			3,235
Balance, end of period	$	4,331		$	5,075		$	4,331		$	5,075

As of September 30, 2019 and December 31, 2018, the non-accretable difference between the contractually required payments and cash flows expected to be collected was $6.3 million and $7.1 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 restructurings (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 September 30, 2019 and December 31, 2018. 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, 2019
	Unpaid Principal Balance		Recorded Investment				Related Allowance
			Without Allowance (1)		With Allowance (2)
Commercial real estate:
Owner-occupied	$	3,305	$	2,932	$	197	$	18
Investment properties	3,709		2,052		694		42
Multifamily real estate	84		87		—		—
Multifamily construction	573		98		—		—
One- to four-family construction	1,719		1,719		—		—
Land and land development:
Residential	978		642		—		—
Commercial business	4,709		3,335		618		48
Agricultural business/farmland	3,179		757		2,281		132
One- to four-family residential	6,674		4,990		1,670		42
Consumer:
Consumer secured by one- to four-family	2,548		2,371		129		5
Consumer—other	413		349		56		1
	$	27,891	$	19,332	$	5,645	$	288
	December 31, 2018
	Unpaid Principal Balance		Recorded Investment				Related Allowance
			Without Allowance (1)		With Allowance (2)
Commercial real estate:
Owner-occupied	$	3,193	$	2,768	$	200	$	19
Investment properties	7,287		1,320		5,606		226
Multifamily real estate	1,901		1,427		—		—
One- to four-family construction	919		919		—		—
Land and land development:
Residential	1,134		798		—		—
Commercial	44		44		—		—
Commercial business	4,014		2,937		391		16
Agricultural business/farmland	4,863		1,751		2,561		96
One- to four-family residential	6,724		4,314		2,358		51
Consumer:
Consumer secured by one- to four-family	1,622		1,438		133		6
Consumer—other	112		49		62		2
	$	31,813	$	17,765	$	11,311	$	416

⁽¹⁾  Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $12.6 million and $9.0 million, respectively, of homogenous and small balance loans as of September 30, 2019 and December 31, 2018, 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 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, 2019 and 2018 (in thousands):

	Three Months Ended September 30, 2019				Three Months Ended September 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	3,067	$	—	$	3,281	$	3
Investment properties	2,707		10		6,808		79
Multifamily real estate	58		—		—		—
Commercial construction	439		—		—		—
One- to four-family construction	1,489		11		991		—
Land and land development:
Residential	673		—		798		—
Commercial business	3,737		9		3,210		5
Agricultural business/farmland	3,250		25		4,218		23
One- to four-family residential	6,555		49		7,667		77
Consumer:
Consumer secured by one- to four-family	2,744		6		1,841		5
Consumer—other	387		1		164		1
	$	25,106	$	111	$	28,978	$	193
	Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	3,197	$	4	$	4,070	$	8
Investment properties	4,406		108		8,114		237
Multifamily real estate	19		—		—		—
Commercial construction	1,006		—		—		—
One- to four-family construction	1,138		12		637		4
Land and land development:
Residential	696		—		1,059		10
Commercial business	3,767		20		3,474		17
Agricultural business/farmland	4,319		81		5,895		79
One- to four-family residential	6,484		171		8,261		237
Consumer:
Consumer secured by one- to four-family	2,645		14		1,530		10
Consumer—other	359		3		151		3
	$	28,036	$	413	$	33,191	$	605

Troubled Debt Restructurings. 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 September 30, 2019 and December 31, 2018 (in thousands):

	September 30, 2019						December 31, 2018
	Accrual Status		Nonaccrual Status		Total TDRs		Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	—	$	268	$	268	$	200	$	78	$	278
Investment properties	694		1,059		1,753		5,606		—		5,606
Commercial business	560		—		560		391		—		391
Agricultural business, including secured by farmland	2,281		—		2,281		2,561		—		2,561
One- to four-family residential	3,001		199		3,200		4,469		239		4,708
Consumer:
Consumer secured by one- to four-family	129		—		129		133		—		133
Consumer—other	56		—		56		62		—		62
	$	6,721	$	1,526	$	8,247	$	13,422	$	317	$	13,739

As of September 30, 2019 and December 31, 2018, the Company had commitments to advance additional funds related to TDRs up to $27,000 and none, respectively.

The following table presents new TDRs that occurred during the nine months ended September 30, 2019. No new TDRs occurred during the three months ended September 30, 2019 or the three and nine months ended September 30, 2018 (dollars in thousands):

	Nine months ended September 30, 2019
	Number of Contracts	Pre- modification Outstanding Recorded  Investment		Post- modification Outstanding Recorded Investment
Recorded Investment
Commercial real estate
Investment properties	1	$	1,090	$	1,090
Commercial business	1	160		160
Agricultural business/farmland	1	596		596
Total	3	$	1,846	$	1,846

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, 2019 and 2018. 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 nine months ended September 30, 2019.

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 make the amount and timing of any loss indeterminable.  In these situations taking the loss is inappropriate until the outcome of the pending event is clear.

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 September 30, 2019 and December 31, 2018 (in thousands):

	September 30, 2019
By class:	Pass (Risk Ratings 1-5)(1)		Special Mention		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,430,712	$	5,010	$	27,581	$	—	$	—	$	1,463,303
Investment properties	2,143,952		—		6,986		—		—		2,150,938
Multifamily real estate	399,607		—		207		—		—		399,814
Commercial construction	178,781		—		11,751		—		—		190,532
Multifamily construction	214,878		—		—		—		—		214,878
One- to four-family construction	483,968		—		4,977		—		—		488,945
Land and land development:
Residential	163,187		—		642		—		—		163,829
Commercial	26,084		—		35		—		—		26,119
Commercial business	1,564,854		9,363		45,116		58		—		1,619,391
Agricultural business, including secured by farmland	377,571		5,191		7,743		—		—		390,505
One- to four-family residential	942,696		420		4,359		—		—		947,475
Consumer:
Consumer secured by one- to four-family	563,517		—		3,275		—		—		566,792
Consumer—other	212,364		5		478		—		—		212,847
Total	$	8,702,171	$	19,989	$	113,150	$	58	$	—	$	8,835,368

	December 31, 2018
By class:	Pass (Risk Ratings 1-5)(1)		Special Mention		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,396,721	$	6,963	$	26,413	$	—	$	—	$	1,430,097
Investment properties	2,122,621		—		8,438		—		—		2,131,059
Multifamily real estate	368,262		—		574		—		—		368,836
Commercial construction	159,167		11,816		1,427		—		—		172,410
Multifamily construction	184,630		—		—		—		—		184,630
One- to four-family construction	533,759		—		919		—		—		534,678
Land and land development:
Residential	187,710		—		798		—		—		188,508
Commercial	27,200		—		78		—		—		27,278
Commercial business	1,436,733		7,661		39,133		87		—		1,483,614
Agricultural business, including secured by farmland	392,318		4,214		8,341		—		—		404,873
One- to four-family residential	969,011		499		4,106		—		—		973,616
Consumer:
Consumer secured by one- to four-family	564,001		—		4,978		—		—		568,979
Consumer—other	215,706		9		302		—		—		216,017
Total	$	8,557,839	$	31,162	$	95,507	$	87	$	—	$	8,684,595

⁽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, 2019 and December 31, 2018, in the commercial business category, $740.6 million and $590.9 million, respectively, of credit-scored small business loans.  As loans in these pools become non-performing, they are individually risk-rated.

The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2019 and December 31, 2018 (in thousands):

	September 30, 2019
	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	$	1,102	$	185	$	2,459	$	3,746	$	8,241	$	1,451,316	$	1,463,303	$	89	$	3,040
Investment properties	248		—		2,052		2,300		3,272		2,145,366		2,150,938		—		2,052
Multifamily real estate	—		—		—		—		6		399,808		399,814		—		87
Commercial construction	—		—		98		98		—		190,434		190,532		—		98
Multifamily construction	—		—		—		—		—		214,878		214,878		—		—
One-to-four-family construction	—		1,355		1,719		3,074		—		485,871		488,945		1,141		578
Land and land development:
Residential	—		—		642		642		—		163,187		163,829		—		642
Commercial	—		—		—		—		—		26,119		26,119		—		—
Commercial business	2,301		1,068		2,213		5,582		407		1,613,402		1,619,391		358		3,035
Agricultural business, including secured by farmland	—		74		614		688		396		389,421		390,505		—		757
One- to four-family residential	852		673		2,454		3,979		77		943,419		947,475		652		3,007
Consumer:
Consumer secured by one- to four-family	1,433		896		1,416		3,745		112		562,935		566,792		231		2,140
Consumer—other	430		109		26		565		64		212,218		212,847		16		333
Total	$	6,366	$	4,360	$	13,693	$	24,419	$	12,575	$	8,798,374	$	8,835,368	$	2,487	$	15,769

	December 31, 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	$	785	$	519	$	2,223	$	3,527	$	8,531	$	1,418,039	$	1,430,097	$	—	$	2,768
Investment properties	91		498		934		1,523		3,462		2,126,074		2,131,059		—		1,320
Multifamily real estate	317		—		—		317		138		368,381		368,836		—		—
Commercial construction	—		—		1,427		1,427		—		170,983		172,410		—		1,427
Multifamily construction	—		—		—		—		—		184,630		184,630		—		—
One-to-four-family construction	4,781		1,078		919		6,778		137		527,763		534,678		—		919
Land and land development:
Residential	450		—		798		1,248		—		187,260		188,508		—		798
Commercial	34		—		44		78		—		27,200		27,278		—		44
Commercial business	3,982		1,305		1,756		7,043		1,028		1,475,543		1,483,614		1		2,936
Agricultural business, including secured by farmland	343		1,518		1,601		3,462		493		400,918		404,873		—		1,751
One-to four-family residential	5,440		1,790		1,657		8,887		101		964,628		973,616		658		1,544
Consumer:
Consumer secured by one- to four-family	1,136		765		706		2,607		432		565,940		568,979		238		1,201
Consumer—other	911		385		9		1,305		91		214,621		216,017		9		40
Total	$	18,270	$	7,858	$	12,074	$	38,202	$	14,413	$	8,631,980	$	8,684,595	$	906	$	14,748

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, 2019 and 2018 (in thousands):

	For the Three Months Ended September 30, 2019
	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	$	26,730		$	4,344		$	23,554		$	19,557		$	3,691		$	4,701		$	8,452		$	7,225		$	98,254
Provision for loan losses	1,992			(61		)	(1,141		)	3,027			943			(175		)	258			(2,843		)	2,000
Recoveries	107			—			156			162			2			129			154			—			710
Charge-offs	(314		)	—			—			(1,599		)	(741		)	(86		)	(423		)	—			(3,163		)
Ending balance	$	28,515		$	4,283		$	22,569		$	21,147		$	3,895		$	4,569		$	8,441		$	4,382		$	97,801
	For the Nine Months Ended September 30, 2019
	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	$	27,132		$	3,818		$	24,442		$	19,438		$	3,778		$	4,714		$	7,972		$	5,191		$	96,485
Provision for loan losses	2,244			465			(2,081		)	4,300			987			(461		)	1,355			(809		)	6,000
Recoveries	277			—			208			400			37			402			487			—			1,811
Charge-offs	(1,138		)	—			—			(2,991		)	(907		)	(86		)	(1,373		)	—			(6,495		)
Ending balance	$	28,515		$	4,283		$	22,569		$	21,147		$	3,895		$	4,569		$	8,441		$	4,382		$	97,801

	September 30, 2019
	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	$	60	$	—	$	—	$	48	$	132	$	42	$	6	$	—	$	288
Collectively evaluated for impairment	28,455		4,283		22,569		21,078		3,710		4,527		8,435		4,382		97,439
Purchased credit-impaired loans	—		—		—		21		53		—		—		—		74
Total allowance for loan losses	$	28,515	$	4,283	$	22,569	$	21,147	$	3,895	$	4,569	$	8,441	$	4,382	$	97,801

Loan balances:
Individually evaluated for impairment	$	4,246	$	—	$	1,220	$	618	$	2,282	$	3,745	$	241	$	—	$	12,352
Collectively evaluated for impairment	3,598,482		399,808		1,083,083		1,618,366		387,827		943,653		779,222		—		8,810,441
Purchased credit-impaired loans	11,513		6		—		407		396		77		176		—		12,575
Total loans	$	3,614,241	$	399,814	$	1,084,303	$	1,619,391	$	390,505	$	947,475	$	779,639	$	—	$	8,835,368

	For the Three Months Ended September 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	$	24,413		$	3,718	$	27,034		$	19,141		$	3,162		$	3,932		$	5,725		$	6,750		$	93,875
Provision for loan losses	824			27		(1,996		)	(1,306		)	348			432			2,600			1,071			2,000
Recoveries	12			—		5			586			—			86			46			—			735
Charge-offs	(102		)	—		(479		)	(473		)	(5		)	(27		)	(261		)	—			(1,347		)
Ending balance	$	25,147		$	3,745	$	24,564		$	17,948		$	3,505		$	4,423		$	8,110		$	7,821		$	95,263
	For the Nine Months Ended September 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	1,144			2,112		(2,715		)	148			(248		)	1,679			4,777			(897		)	6,000
Recoveries	1,580			—		190			856			41			732			264			—			3,663
Charge-offs	(401		)	—		(479		)	(1,367		)	(341		)	(43		)	(797		)	—			(3,428		)
Ending balance	$	25,147		$	3,745	$	24,564		$	17,948		$	3,505		$	4,423		$	8,110		$	7,821		$	95,263

	September 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	$	297	$	—	$	—	$	17	$	71	$	64	$	8	$	—	$	457
Collectively evaluated for impairment	24,850		3,745		24,564		17,908		3,372		4,359		8,102		7,821		94,721
Purchased credit-impaired loans	—		—		—		23		62		—		—		—		85
Total allowance for loan losses	$	25,147	$	3,745	$	24,564	$	17,948	$	3,505	$	4,423	$	8,110	$	7,821	$	95,263

Loan balances:
Individually evaluated for impairment	$	8,769	$	—	$	1,669	$	384	$	3,298	$	4,497	$	201	$	—	$	18,818
Collectively evaluated for  impairment	3,198,018		309,667		1,014,140		1,357,144		356,270		845,320		710,198		—		7,790,757
Purchased credit impaired loans	8,369		142		3,236		621		398		111		67		—		12,944
Total loans	$	3,215,156	$	309,809	$	1,019,045	$	1,358,149	$	359,966	$	849,928	$	710,466	$	—	$	7,822,519