LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2020

Receivables [Abstract]

Schedule of Loans Receivable, Including Loans Held for Sale

at September 30, 2020 and December 31, 2019 by class (dollars in thousands). The presentation of loans receivable at December 31, 2019 has been updated to conform to the loan portfolio segmentation that became effective on January 1, 2020.

	September 30, 2020			December 31, 2019
	Amount		Percent of Total	Amount		Percent of Total
Commercial real estate:
Owner-occupied	$	1,049,877	10.3	$	980,021	10.5	%
Investment properties	1,991,258		19.6	2,024,988		21.8
Small balance CRE	597,971		5.9	613,484		6.6
Multifamily real estate	426,659		4.2	388,388		4.2
Construction, land and land development:
Commercial construction	220,285		2.2	210,668		2.3
Multifamily construction	291,105		2.9	233,610		2.5
One- to four-family construction	518,085		5.1	544,308		5.8
Land and land development	240,803		2.4	245,530		2.6
Commercial business:
Commercial business	2,343,619		23.1	1,364,650		14.7
Small business scored	763,824		7.5	772,657		8.3
Agricultural business, including secured by farmland	326,169		3.2	337,271		3.6
One- to four-family residential	771,431		7.6	925,531		9.9
Consumer:
Consumer—home equity revolving lines of credit	504,523		4.9	519,336		5.6
Consumer—other	118,308		1.1	144,915		1.6
Total loans	10,163,917		100.0	9,305,357		100.0	%
Less allowance for credit losses - loans	(167,965)			(100,559)
Net loans	$	9,995,952		$	9,204,798

The presentation of loans receivable at December 31, 2019 in the table below is based on loan segmentation as presented in the 2019 Form 10-K.

	December 31, 2019
	Amount		Percent of Total
Commercial real estate:
Owner-occupied	$	1,580,650	17.0	%
Investment properties	2,309,221		24.8
Multifamily real estate	473,152		5.1
Commercial construction	210,668		2.3
Multifamily construction	233,610		2.5
One- to four-family construction	544,308		5.8
Land and land development:
Residential	154,688		1.7
Commercial	26,290		0.3
Commercial business	1,693,824		18.2
Agricultural business, including secured by farmland	370,549		4.0
One- to four-family residential	945,622		10.2
Consumer:
Consumer secured by one- to four-family	550,960		5.8
Consumer—other	211,815		2.3
Total loans	9,305,357		100.0	%
Less allowance for loan losses	(100,559)
Net loans	$	9,204,798

Loan amounts are net of unearned loan fees in excess of unamortized costs of $31.7 million as of September 30, 2020 and $438,000 as of December 31, 2019. Net loans include net discounts on acquired loans of $17.9 million and $25.0 million as of September 30, 2020 and December 31, 2019, 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 nine months ended September 30, 2019 (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2019		2019
Balance, beginning of period	$	4,743	$	5,216
Accretion to interest income	(423)		(1,372)
Reclassifications from non-accretable difference	11		487
Balance, end of period	$	4,331	$	4,331

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

The following table provides information on impaired loans, excluding PCI loans, with and without allowance reserves at December 31, 2019. 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
			Without Allowance (1)		With Allowance (2)
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

(1)Includes loans without an allowance reserve that had been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $13.5 million of homogeneous and small balance loans, as of December 31, 2019, that were collectively evaluated for impairment for which a general reserve was established.

(2)Loans with a specific allowance reserve were 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 table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2019 (in thousands):

	Three Months Ended September 30, 2019				Nine Months Ended September 30, 2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial real estate:
Owner-occupied	$	3,067	$	—	$	3,197	$	4
Investment properties	2,707		10		4,406		108
Multifamily real estate	58		—		19		—
Commercial construction	439		—		1,006		—
One- to four-family construction	1,489		11		1,138		12
Land and land development:
Residential	673		—		696		—
Commercial business	3,737		9		3,767		20
Agricultural business/farmland	3,250		25		4,319		81
One- to four-family residential	6,555		49		6,484		171
Consumer:
Consumer secured by one- to four-family	2,744		6		2,645		14
Consumer—other	387		1		359		3
	$	25,106	$	111	$	28,036	$	413

Schedule of Troubled Debt Restructurings

The following table presents new TDRs that occurred during the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands):

	Three Months Ended September 30, 2020					Nine months ended September 30, 2020
	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Contracts	Pre- modification Outstanding Recorded  Investment		Post- modification Outstanding Recorded Investment
Recorded Investment
Commercial business:
Commercial business	—	$	—	$	—	2	$	4,796	$	4,796
Total	—	$	—	$	—	2	$	4,796	$	4,796
	Three Months Ended September 30, 2019					Nine months ended September 30, 2019
	Number of Contracts	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Contracts	Pre- modification Outstanding Recorded Investment		Post- modification Outstanding Recorded Investment
Recorded Investment
Commercial real estate
Investment properties	—	$	—	$	—	1	$	1,090	$	1,090
Commercial business:
Commercial business	—	—		—		1	160		160
Agricultural business/farmland	—	—		—		1	596		596
	—	$	—	$	—	3	$	1,846	$	1,846

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 by grade as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination.

	September 30, 2020
	Term Loans by Year of Origination												Revolving Loans		Total Loans
By class:	2020		2019		2018		2017		2016		Prior
Commercial real estate - owner occupied
Risk Rating
Pass	$	184,182	$	166,817	$	165,634	$	124,766	$	93,179	$	228,160	$	3,159	$	965,897
Special Mention	—		—		1,369		2,285		—		1,616		149		5,419
Substandard	5,661		24,638		1,670		2,443		14,055		30,094		—		78,561
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Commercial real estate - owner occupied	$	189,843	$	191,455	$	168,673	$	129,494	$	107,234	$	259,870	$	3,308	$	1,049,877
Commercial real estate - investment properties
Risk Rating
Pass	$	190,298	$	267,544	$	309,233	$	212,385	$	281,543	$	523,930	$	21,201	$	1,806,134
Special Mention	—		2,153		—		—		3,377		4,444		—		9,974
Substandard	12,652		10,245		23,729		59,100		26,502		38,421		4,501		175,150
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Commercial real estate - investment properties	$	202,950	$	279,942	$	332,962	$	271,485	$	311,422	$	566,795	$	25,702	$	1,991,258
Multifamily real estate
Risk Rating
Pass	$	62,552	$	68,649	$	39,634	$	106,938	$	45,049	$	102,426	$	1,411	$	426,659
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Multifamily real estate	$	62,552	$	68,649	$	39,634	$	106,938	$	45,049	$	102,426	$	1,411	$	426,659

	September 30, 2020
	Term Loans by Year of Origination												Revolving Loans		Total Loans
By class:	2020		2019		2018		2017		2016		Prior
Commercial construction
Risk Rating
Pass	$	38,631	$	106,658	$	43,010	$	6,102	$	2,183	$	1,143	$	—	$	197,727
Special Mention	698		—		—		—		—		—		—		698
Substandard	11,899		3,548		4,868		1,447		98		—		—		21,860
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Commercial construction	$	51,228	$	110,206	$	47,878	$	7,549	$	2,281	$	1,143	$	—	$	220,285
Multifamily construction
Risk Rating
Pass	$	62,271	$	144,695	$	69,367	$	14,772	$	—	$	—	$	—	$	291,105
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Multifamily construction	$	62,271	$	144,695	$	69,367	$	14,772	$	—	$	—	$	—	$	291,105
One- to four- family construction
Risk Rating
Pass	$	404,805	$	87,377	$	—	$	—	$	—	$	—	$	12,058	$	504,240
Special Mention	9,121		623		—		—		—		—		630		10,374
Substandard	3,139		332		—		—		—		—		—		3,471
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total One- to four- family construction	$	417,065	$	88,332	$	—	$	—	$	—	$	—	$	12,688	$	518,085

	September 30, 2020
	Term Loans by Year of Origination												Revolving Loans		Total Loans
By class:	2020		2019		2018		2017		2016		Prior
Land and land development
Risk Rating
Pass	$	113,268	$	65,773	$	22,930	$	7,930	$	6,773	$	5,404	$	15,137	$	237,215
Special Mention	—		—		—		—		—		—		—		—
Substandard	14		31		3,050		191		—		302		—		3,588
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Land and land development	$	113,282	$	65,804	$	25,980	$	8,121	$	6,773	$	5,706	$	15,137	$	240,803
Commercial business
Risk Rating
Pass	$	1,304,667	$	263,730	$	217,169	$	81,266	$	42,319	$	78,112	$	256,590	$	2,243,853
Special Mention	2,071		502		8,786		834		—		43		1,142		13,378
Substandard	9,193		11,780		22,307		6,080		1,228		463		35,337		86,388
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Commercial business	$	1,315,931	$	276,012	$	248,262	$	88,180	$	43,547	$	78,618	$	293,069	$	2,343,619
Agricultural business including secured by farmland
Risk Rating
Pass	$	27,358	$	60,931	$	32,786	$	24,415	$	24,473	$	30,603	$	113,813	$	314,379
Special Mention	—		—		—		810		—		537		—		1,347
Substandard	1,548		3,016		901		332		676		1,581		2,389		10,443
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Agricultural business including secured by farmland	$	28,906	$	63,947	$	33,687	$	25,557	$	25,149	$	32,721	$	116,202	$	326,169

The following table presents the Company’s portfolio of non-risk-rated loans by delinquency status as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination.

	September 30, 2020
	Term Loans by Year of Origination												Revolving Loans		Total Loans
By class:	2020		2019		2018		2017		2016		Prior
Small balance CRE
Past Due Category
Current	$	42,396	$	81,636	$	89,270	$	78,727	$	75,123	$	225,523	$	2,864	$	595,539
30-59 Days Past Due	—		241		—		—		—		369		—		610
60-89 Days Past Due	—		—		—		622		—		—		—		622
90 Days + Past Due	—		—		—		185		—		1,015		—		1,200
Total Small balance CRE	$	42,396	$	81,877	$	89,270	$	79,534	$	75,123	$	226,907	$	2,864	$	597,971
Small business scored
Past Due Category
Current	$	128,596	$	154,666	$	138,279	$	100,654	$	51,378	$	70,986	$	113,452	$	758,011
30-59 Days Past Due	844		400		207		643		2		240		155		2,491
60-89 Days Past Due	224		35		767		63		—		151		58		1,298
90 Days + Past Due	85		106		588		713		172		250		110		2,024
Total Small business scored	$	129,749	$	155,207	$	139,841	$	102,073	$	51,552	$	71,627	$	113,775	$	763,824
One- to four- family residential
Past Due Category
Current	$	68,277	$	100,406	$	105,335	$	124,930	$	65,906	$	297,086	$	3,880	$	765,820
30-59 Days Past Due	—		35		—		—		—		195		—		230
60-89 Days Past Due	299		2		241		480		—		727		—		1,749
90 Days + Past Due	—		—		1,012		512		—		2,108		—		3,632
Total One- to four- family residential	$	68,576	$	100,443	$	106,588	$	125,922	$	65,906	$	300,116	$	3,880	$	771,431

	September 30, 2020
	Term Loans by Year of Origination												Revolving Loans		Total Loans
By class:	2020		2019		2018		2017		2016		Prior
Consumer—home equity revolving lines of credit
Past Due Category
Current	$	12,696	$	1,983	$	2,515	$	3,176	$	1,665	$	2,945	$	476,385	$	501,365
30-59 Days Past Due	—		—		—		44		—		84		745		873
60-89 Days Past Due	—		—		—		—		—		14		201		215
90 Days + Past Due	—		100		54		564		329		321		702		2,070
Total Consumer—home equity revolving lines of credit	$	12,696	$	2,083	$	2,569	$	3,784	$	1,994	$	3,364	$	478,033	$	504,523
Consumer-other
Past Due Category
Current	$	15,111	$	16,716	$	16,158	$	13,500	$	10,013	$	20,774	$	25,571	$	117,843
30-59 Days Past Due	18		23		2		5		37		35		63		183
60-89 Days Past Due	44		33		—		148		—		2		26		253
90 Days + Past Due	—		—		24		—		5		—		—		29
Total Consumer-other	$	15,173	$	16,772	$	16,184	$	13,653	$	10,055	$	20,811	$	25,660	$	118,308

The following table presents the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of December 31, 2019 (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

(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 December 31, 2019, in the commercial business category, $764.6 million of credit-scored small business loans.  As loans in these pools become non-performing, they are individually risk-rated.

Loans, Collateral Dependent [Table Text Block]

The following table provides the amortized cost basis of collateral-dependent loans as of September 30, 2020 (in thousands). Our collateral dependent loans presented in the table below have no significant concentrations by property type or location. The table below includes one commercial business banking relationship with a balance of $6.6 million.

	September 30, 2020
	Real Estate		Accounts Receivable		Equipment		Inventory		Total
Commercial real estate:
Owner-occupied	$	1,101	$	—	$	—	$	—	$	1,101
Investment properties	3,914		—		—		—		3,914
Small Balance CRE	1,206		—		—		—		1,206
Land and land development	302		—		—		—		302
Commercial business
Commercial business	2,536		2,756		2,970		652		8,914
Small business Scored	46		—		48		—		94
Agricultural business, including secured by farmland	427		—		994		—		1,421
One- to four-family residential	195		—		—		—		195
Total	$	9,727	$	2,756	$	4,012	$	652	$	17,147

Schedule of Age Analysis of the Company's Past Due Loans

The following table presents the Company’s portfolio of non-risk-rated loans by delinquency status as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination.

	September 30, 2020
	Term Loans by Year of Origination												Revolving Loans		Total Loans
By class:	2020		2019		2018		2017		2016		Prior
Small balance CRE
Past Due Category
Current	$	42,396	$	81,636	$	89,270	$	78,727	$	75,123	$	225,523	$	2,864	$	595,539
30-59 Days Past Due	—		241		—		—		—		369		—		610
60-89 Days Past Due	—		—		—		622		—		—		—		622
90 Days + Past Due	—		—		—		185		—		1,015		—		1,200
Total Small balance CRE	$	42,396	$	81,877	$	89,270	$	79,534	$	75,123	$	226,907	$	2,864	$	597,971
Small business scored
Past Due Category
Current	$	128,596	$	154,666	$	138,279	$	100,654	$	51,378	$	70,986	$	113,452	$	758,011
30-59 Days Past Due	844		400		207		643		2		240		155		2,491
60-89 Days Past Due	224		35		767		63		—		151		58		1,298
90 Days + Past Due	85		106		588		713		172		250		110		2,024
Total Small business scored	$	129,749	$	155,207	$	139,841	$	102,073	$	51,552	$	71,627	$	113,775	$	763,824
One- to four- family residential
Past Due Category
Current	$	68,277	$	100,406	$	105,335	$	124,930	$	65,906	$	297,086	$	3,880	$	765,820
30-59 Days Past Due	—		35		—		—		—		195		—		230
60-89 Days Past Due	299		2		241		480		—		727		—		1,749
90 Days + Past Due	—		—		1,012		512		—		2,108		—		3,632
Total One- to four- family residential	$	68,576	$	100,443	$	106,588	$	125,922	$	65,906	$	300,116	$	3,880	$	771,431

	September 30, 2020
	Term Loans by Year of Origination												Revolving Loans		Total Loans
By class:	2020		2019		2018		2017		2016		Prior
Consumer—home equity revolving lines of credit
Past Due Category
Current	$	12,696	$	1,983	$	2,515	$	3,176	$	1,665	$	2,945	$	476,385	$	501,365
30-59 Days Past Due	—		—		—		44		—		84		745		873
60-89 Days Past Due	—		—		—		—		—		14		201		215
90 Days + Past Due	—		100		54		564		329		321		702		2,070
Total Consumer—home equity revolving lines of credit	$	12,696	$	2,083	$	2,569	$	3,784	$	1,994	$	3,364	$	478,033	$	504,523
Consumer-other
Past Due Category
Current	$	15,111	$	16,716	$	16,158	$	13,500	$	10,013	$	20,774	$	25,571	$	117,843
30-59 Days Past Due	18		23		2		5		37		35		63		183
60-89 Days Past Due	44		33		—		148		—		2		26		253
90 Days + Past Due	—		—		24		—		5		—		—		29
Total Consumer-other	$	15,173	$	16,772	$	16,184	$	13,653	$	10,055	$	20,811	$	25,660	$	118,308

The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		Non-accrual with no Allowance		Total Non-accrual (1)		Loans 90 Days or More Past Due and Accruing
Commercial real estate:
Owner-occupied	$	100	$	—	$	1,687	$	1,787	$	1,048,090	$	1,049,877	$	1,101	$	2,067	$	—
Investment properties	5,902		98		2,919		8,919		1,982,339		1,991,258		3,914		3,914		—
Small Balance CRE	610		622		1,200		2,432		595,539		597,971		1,206		1,843		—
Multifamily real estate	—		—		—		—		426,659		426,659		—		—		—
Construction, land and land development:
Commercial construction	—		—		99		99		220,186		220,285		—		98		—
Multifamily construction	—		—		—		—		291,105		291,105		—		—		—
One- to four-family construction	441		422		—		863		517,222		518,085		—		331		—
Land and land development	—		—		508		508		240,295		240,803		302		508		—
Commercial business
Commercial business	485		3,640		1,661		5,786		2,337,833		2,343,619		7,468		12,143		225
Small business scored	2,491		1,298		2,024		5,813		758,011		763,824		93		2,724		200
Agricultural business, including secured by farmland	—		—		2,023		2,023		324,146		326,169		1,422		2,066		—
One- to four-family residential	230		1,749		3,632		5,611		765,820		771,431		181		2,978		2,649
Consumer:
Consumer—home equity revolving lines of credit	873		215		2,070		3,158		501,365		504,523		—		2,835		175
Consumer—other	183		253		29		465		117,843		118,308		—		61		6
Total	$	11,315	$	8,297	$	17,852	$	37,464	$	10,126,453	$	10,163,917	$	15,687	$	31,568	$	3,255

	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		Total Non-accrual (1)
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, including secured by 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

Allowance for Credit Losses on Financing Receivables

The following tables provide the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2020 (in thousands):

	For the Three Months Ended September 30, 2020
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	53,166	$	3,504	$	36,916	$	33,870	$	4,517	$	12,746	$	11,633	$	—	$	156,352
Provision/(recapture) for credit losses	6,895		(248)		2,561		2,550		1,026		100		757		—		13,641
Recoveries	23		—		—		246		—		94		82		—		445
Charge-offs	(379)		—		—		(1,297)		(492)		(72)		(233)		—		(2,473)
Ending balance	$	59,705	$	3,256	$	39,477	$	35,369	$	5,051	$	12,868	$	12,239	$	—	$	167,965
	For the Nine Months Ended September 30, 2020
	Commercial Real Estate		Multifamily Real Estate		Construction and Land		Commercial Business		Agricultural Business		One- to Four-Family Residential		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	30,591	$	4,754	$	22,994	$	23,370	$	4,120	$	4,136	$	8,202	$	2,392	$	100,559
Impact of Adopting ASC 326	(2,864)		(2,204)		2,515		3,010		(351)		7,125		2,973		(2,392)		7,812
Provision for credit losses	32,213		772		13,963		14,402		64		1,470		1,994		—		64,878
Recoveries	244		—		105		821		1,772		273		238		—		3,453
Charge-offs	(479)		(66)		(100)		(6,234)		(554)		(136)		(1,168)		—		(8,737)
Ending balance	$	59,705	$	3,256	$	39,477	$	35,369	$	5,051	$	12,868	$	12,239	$	—	$	167,965

The changes in the allowance for credit losses during the three and nine months ended September 30, 2020 were primarily the result of the $13.6 million provision for credit losses recorded during the current quarter and the $64.9 million provision recording during the nine months ended September 30, 2020, mostly due to the deterioration in the economy during the current quarter and nine months ended September 30, 2020 as a result of the COVID-19 pandemic, as well as forecasted additional economic deterioration based on the reasonable and supportable economic forecast as of September 30, 2020. The current quarter provision for credit losses also reflects risk rating downgrades on loans that are considered at heightened risk due to the COVID-19 pandemic. In addition, the change for the nine months ended September 30, 2020 included a $7.8 million increase related to the adoption of Financial Instruments - Credit Losses (Topic 326).

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 (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/(recapture) 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/(recapture) 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