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LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2019

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

The following tables provide additional information on impaired loans, excluding PCI loans, with and without specific allowance reserves at December 31, 2019 and 2018. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands):



	December 31, 2019
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	4,185	$	3,816	$	194	$	18
Investment properties	3,536		1,883		690		40
Multifamily real estate	82		85		—		—
Multifamily construction	573		98		—		—
One- to four-family construction	1,799		1,799		—		—
Land and land development:
Residential	676		340		—		—
Commercial business	25,117		4,614		19,330		4,128
Agricultural business/farmland	3,044		661		2,243		141
One- to four-family residential	7,290		5,613		1,648		41
Consumer:
Consumer secured by one- to four-family	3,081		2,712		127		5
Consumer—other	222		159		52		1
	$	49,605	$	21,780	$	24,284	$	4,374

	December 31, 2018
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	3,193	$	2,768	$	200	$	19
Investment properties	7,287		1,320		5,606		226
Multifamily construction	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 $13.5 million and $9.0 million of homogeneous and small balance loans as of December 31, 2019 and December 31, 2018, respectively, 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.

Financing Receivable, Allowance for Credit Loss [Table Text Block]

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 year ended December 31, 2019 (in thousands):



	For the Year Ended December 31, 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/(recapture) for loan losses	4,121			936		(1,611		)	7,478			1,206			(1,053		)	1,722			(2,799		)	10,000
Recoveries	476			—		208			625			47			561			548			—			2,465
Charge-offs	(1,138		)	—		(45		)	(4,171		)	(911		)	(86		)	(2,040		)	—			(8,391		)
Ending balance	$	30,591		$	4,754	$	22,994		$	23,370		$	4,120		$	4,136		$	8,202		$	2,392		$	100,559

	December 31, 2019
	Commercial Real Estate			Multifamily Real Estate		Construction and Land			Commercial Business			Agricultural Business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance individually evaluated for impairment	$	58		$	—	$	—		$	4,128		$	141		$	41		$	6		$	—		$	4,374
Allowance collectively evaluated for impairment	30,533			4,754		22,994			19,224			3,919			4,095			8,196			2,392			96,107
Allowance for purchased credit-impaired loans	—			—		—			18			60			—			—			—			78
Total allowance for loan losses	$	30,591		$	4,754	$	22,994		$	23,370		$	4,120		$	4,136		$	8,202		$	2,392		$	100,559



	December 31, 2019
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Loan balances:
Loans individually evaluated for impairment	$	4,738	$	—	$	1,467	$	19,331	$	2,243	$	4,390	$	235	$	—	$	32,404
Loans collectively evaluated for impairment	3,870,210		473,145		1,168,097		1,674,125		367,913		941,158		762,367		—		9,257,015
Purchased credit-impaired loans	14,923		7		—		368		393		74		173		—		15,938
Total loans	$	3,889,871	$	473,152	$	1,169,564	$	1,693,824	$	370,549	$	945,622	$	762,775	$	—	$	9,305,357



	For the Year Ended December 31, 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/(recapture) for loan losses	3,063			2,185		(2,860		)	2,129			417			1,952			5,141			(3,527		)	8,500
Recoveries	1,646			—		213			1,049			64			750			366			—			4,088
Charge-offs	(401		)	—		(479		)	(2,051		)	(756		)	(43		)	(1,401		)	—			(5,131		)
Ending balance	$	27,132		$	3,818	$	24,442		$	19,438		$	3,778		$	4,714		$	7,972		$	5,191		$	96,485

	December 31, 2018
	Commercial Real Estate			Multifamily Real Estate		Construction and Land			Commercial Business			Agricultural Business			One- to Four-Family Residential			Consumer			Unallocated			Total
Allowance individually evaluated for impairment	$	246		$	—	$	—		$	16		$	96		$	51		$	7		$	—		$	416
Allowance collectively evaluated for impairment	26,886			3,818		24,442			19,399			3,622			4,663			7,965			5,191			95,986
Allowance for purchased credit-impaired loans	—			—		—			23			60			—			—			—			83
Total allowance for loan losses	$	27,132		$	3,818	$	24,442		$	19,438		$	3,778		$	4,714		$	7,972		$	5,191		$	96,485



	December 31, 2018
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Loan balances:
Loans individually evaluated for impairment	$	8,625	$	—	$	3,096	$	391	$	3,298	$	4,469	$	196	$	—	$	20,075
Loans collectively evaluated for impairment	3,540,538		368,698		1,104,271		1,482,195		401,082		969,046		784,277		—		8,650,107
Purchased credit-impaired loans	11,993		138		137		1,028		493		101		523		—		14,413
Total loans	$	3,561,156	$	368,836	$	1,107,504	$	1,483,614	$	404,873	$	973,616	$	784,996	$	—	$	8,684,595

The following table provides additional information on the allowance for loan losses for the year ended December 31, 2017 (in thousands):



	For the Year Ended December 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/(recapture) for loan losses	2,639			262		(7,921		)	4,355			3,326			(415		)	586			5,168		8,000
Recoveries	372			11		1,237			1,226			134			270			481			—		3,731
Charge-offs	(1,180		)	—		—			(3,803		)	(2,374		)	(38		)	(1,305		)	—		(8,700		)
Ending balance	$	22,824		$	1,633	$	27,568		$	18,311		$	4,053		$	2,055		$	3,866		$	8,718	$	89,028

Financing Receivable, Past Due [Table Text Block]

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



	December 31, 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	$	486	$	1,246	$	2,889	$	4,621	$	8,578	$	1,567,451	$	1,580,650	$	89	$	4,069
Investment properties	—		260		1,883		2,143		6,345		2,300,733		2,309,221		—		1,883
Multifamily real estate	239		91		—		330		7		472,815		473,152		—		85
Commercial construction	1,397		—		98		1,495		—		209,173		210,668		—		98
Multifamily construction	—		—		—		—		—		233,610		233,610		—		—
One- to four-family construction	3,212		—		1,799		5,011		—		539,297		544,308		332		1,467
Land and land development:
Residential	—		—		340		340		—		154,348		154,688		—		340
Commercial	—		—		—		—		—		26,290		26,290		—		—
Commercial business	2,343		1,583		3,412		7,338		368		1,686,118		1,693,824		401		23,015
Agricultural business/farmland	1,972		129		584		2,685		393		367,471		370,549		—		661
One- to four-family residential	3,777		1,088		2,876		7,741		74		937,807		945,622		877		3,410
Consumer:
Consumer secured by one- to four-family	1,174		327		1,846		3,347		110		547,503		550,960		398		2,314
Consumer—other	350		161		—		511		63		211,241		211,815		—		159
Total	$	14,950	$	4,885	$	15,727	$	35,562	$	15,938	$	9,253,857	$	9,305,357	$	2,097	$	37,501



	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/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

Schedule of Loans Receivable, Including Loans Held for Sale

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



	December 31, 2019					December 31, 2018
	Amount			Percent of Total		Amount			Percent of Total
Commercial real estate:
Owner-occupied	$	1,580,650		17.0	%	$	1,430,097		16.4	%
Investment properties	2,309,221			24.8		2,131,059			24.5
Multifamily real estate	473,152			5.1		368,836			4.2
Commercial construction	210,668			2.3		172,410			2.0
Multifamily construction	233,610			2.5		184,630			2.1
One- to four-family construction	544,308			5.8		534,678			6.2
Land and land development:
Residential	154,688			1.7		188,508			2.2
Commercial	26,290			0.3		27,278			0.3
Commercial business	1,693,824			18.2		1,483,614			17.1
Agricultural business, including secured by farmland	370,549			4.0		404,873			4.7
One- to four-family residential	945,622			10.1		973,616			11.2
Consumer:
Consumer secured by one- to four-family	550,960			5.9		568,979			6.6
Consumer—other	211,815			2.3		216,017			2.5
Total loans outstanding	9,305,357			100.0	%	8,684,595			100.0	%
Less allowance for loan losses	(100,559		)			(96,485		)
Net loans	$	9,204,798				$	8,588,110

Loan amounts are net of unearned loan fees in excess of unamortized costs of $438,000 and $1.4 million as of December 31, 2019 and 2018, respectively. Net loans include net discounts on acquired loans of $25.0 million and $25.7 million as of December 31, 2019 and 2018, 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 years ended December 31, 2019 and 2018 (in thousands):



	Years Ended December 31
	2019			2018
Balance, beginning of period	$	5,216		$	6,520
Additions	683			995
Accretion to interest income	(1,891		)	(7,509		)
Disposals and other	—			58
Reclassifications from non-accretable difference	510			5,152
Balance, end of period	$	4,518		$	5,216

Schedule of Impaired Loans With and Without Specific Reserves



	December 31, 2019
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	4,185	$	3,816	$	194	$	18
Investment properties	3,536		1,883		690		40
Multifamily real estate	82		85		—		—
Multifamily construction	573		98		—		—
One- to four-family construction	1,799		1,799		—		—
Land and land development:
Residential	676		340		—		—
Commercial business	25,117		4,614		19,330		4,128
Agricultural business/farmland	3,044		661		2,243		141
One- to four-family residential	7,290		5,613		1,648		41
Consumer:
Consumer secured by one- to four-family	3,081		2,712		127		5
Consumer—other	222		159		52		1
	$	49,605	$	21,780	$	24,284	$	4,374

	December 31, 2018
	Unpaid Principal Balance		Recorded Investment				Related Allowance
	Unpaid Principal Balance		Without Allowance ⁽¹⁾		With Allowance ⁽²⁾		Related Allowance
Commercial real estate:
Owner-occupied	$	3,193	$	2,768	$	200	$	19
Investment properties	7,287		1,320		5,606		226
Multifamily construction	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 $13.5 million and $9.0 million of homogeneous and small balance loans as of December 31, 2019 and December 31, 2018, respectively, 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 years ended December 31, 2019, 2018 and 2017 (in thousands):



	Year Ended December 31, 2019				Year Ended December 31, 2018				Year Ended December 31, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	3,366	$	7	$	3,806	$	11	$	3,697	$	11
Investment properties	3,982		119		7,822		314		9,136		195
Multifamily real estate	36		—		—		—		251		10
Commercial construction	779		—		115		—		—		—
One- to four-family construction	1,319		18		778		6		418		27
Land and land development:
Residential	657		—		994		10		1,396		42
Commercial	—		—		4		—		867		—
Commercial business	5,510		26		3,443		21		5,996		68
Agricultural business/farmland	3,975		105		5,501		102		6,184		207
One- to four-family residential	6,589		249		7,845		302		9,499		322
Consumer:
Consumer secured by one- to four-family	2,694		22		1,583		17		1,635		9
Consumer—other	355		4		142		4		184		7
	$	29,262	$	550	$	32,033	$	787	$	39,263	$	898

Schedule of Troubled Debt Restructurings

The following table presents TDRs by accrual and nonaccrual status at December 31, 2019 and 2018 (in thousands):



	December 31, 2019						December 31, 2018
	Accrual Status		Nonaccrual Status		Total TDRs		Accrual Status		Nonaccrual Status		Total TDRs
Commercial real estate:
Owner-occupied	$	—	$	263	$	263	$	200	$	78	$	278
Investment properties	690		1,037		1,727		5,606		—		5,606
Commercial business	380		—		380		391		—		391
Agricultural business/farmland	2,243		—		2,243		2,561		—		2,561
One- to four-family residential	2,974		196		3,170		4,469		239		4,708
Consumer:
Consumer secured by one- to four-family	127		—		127		133		—		133
Consumer—other	52		—		52		62		—		62
	$	6,466	$	1,496	$	7,962	$	13,422	$	317	$	13,739

As of December 31, 2019 and 2018, the Company had no commitments to advance funds up to an additional amount related to TDRs.

Schedule of Newly Restructured Loans

December 31, 2018 (dollars in thousands):



	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Year Ended December 31, 2019
Recorded Investment ^{(1) (2)}
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

Year Ended December 31, 2017
Recorded Investment ^{(1) (2)}
Commercial real estate:
Investment properties	1	$	3,714	$	3,714
Total	1	$	3,714	$	3,714


⁽¹⁾	Since most loans were already considered classified and/or on non-accrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses.

⁽²⁾

Generally, 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

TDRs which incurred a payment default within the years ended December 31, 2019 and December 31, 2018 for which the payment default occurred within twelve months of the restructure date. A default on a restructured loan results in a transfer to nonaccrual status, a charge-off or a combination of both.

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables show Banner’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristic as of December 31, 2019 and 2018 (in thousands):



	December 31, 2019
By class:	Pass (Risk Ratings 1-5)⁽¹⁾		Special Mention		Substandard		Doubtful		Loss		Total Loans
Commercial real estate:
Owner-occupied	$	1,546,649	$	4,198	$	29,803	$	—	$	—	$	1,580,650
Investment properties	2,288,785		2,193		18,243		—		—		2,309,221
Multifamily real estate	472,856		—		296		—		—		473,152
Commercial construction	198,986		—		11,682		—		—		210,668
Multifamily construction	233,610		—		—		—		—		233,610
One- to four-family construction	530,307		12,534		1,467		—		—		544,308
Land and land development:
Residential	154,348		—		340		—		—		154,688
Commercial	26,256		—		34		—		—		26,290
Commercial business	1,627,170		31,012		35,584		58		—		1,693,824
Agricultural business, including secured by farmland	352,408		10,840		7,301		—		—		370,549
One- to four-family residential	940,424		409		4,789		—		—		945,622
Consumer:
Consumer secured by one- to four-family	547,388		—		3,572		—		—		550,960
Consumer—other	211,475		3		337		—		—		211,815
Total	$	9,130,662	$	61,189	$	113,448	$	58	$	—	$	9,305,357



	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 homogeneous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, as of December 31, 2019 and 2018, in the commercial business category, $764.6 million and $590.9 million, respectively, of credit-scored small business loans. As loans in these homogeneous pools become non-accrual, they are individually risk-rated.