Document and Entity Information
Document and Entity Information - $ / shares | Nov. 01, 2018 | Sep. 30, 2018 |
Details | ||
Registrant Name | GREAT SOUTHERN BANCORP, INC. | |
Registrant CIK | 854,560 | |
SEC Form | 10-Q | |
Period End date | Sep. 30, 2018 | |
Fiscal Year End | --12-31 | |
Trading Symbol | gsbc | |
Tax Identification Number (TIN) | 431,524,856 | |
Number of common stock shares outstanding | 14,158,300 | |
Filer Category | Accelerated Filer | |
Current with reporting | Yes | |
Small Business | false | |
Emerging Growth Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Incorporation, State Country Name | Maryland | |
Entity Address, Address Line One | 1451 E. Battlefield | |
Entity Address, City or Town | Springfield | |
Entity Address, State or Province | Missouri | |
Entity Address, Postal Zip Code | 65,804 | |
City Area Code | 417 | |
Local Phone Number | 887-4400 | |
Entity Listing, Par Value Per Share | $ 0.01 |
Statement of Financial Position
Statement of Financial Position - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash | $ 99,044 | $ 115,600 |
Interest-bearing deposits in other financial institutions | 109,777 | 126,653 |
Cash and cash equivalents | 208,821 | 242,253 |
Available-for-sale securities | 191,251 | 179,179 |
Held-to-maturity securities (fair value $0 - September 2018; $131 - December 2017) | 0 | 130 |
Mortgage Loans Held for Sale | 3,474 | 8,203 |
Interest receivable | 13,008 | 12,338 |
Prepaid expenses and other assets | 41,116 | 47,122 |
Other real estate owned and repossessions, net | 12,844 | 22,002 |
Premises and equipment, net | 133,319 | 138,018 |
Goodwill and other intangible assets | 9,613 | 10,850 |
Investment in Federal Home Loan Bank stock | 14,918 | 11,182 |
Current and deferred income taxes | 12,956 | 16,942 |
Total Assets | 4,584,086 | 4,414,521 |
Loans receivable, net of allowance for loan losses of $37,497 - September 2018; $36,492 - December 2017 | 3,942,766 | 3,726,302 |
Liabilities: | ||
Deposits | 3,595,665 | 3,597,144 |
Federal Home Loan Bank advances | 240,000 | 127,500 |
Securities sold under reverse repurchase agreements with customers | 112,184 | 80,531 |
Short-term borrowings | 1,360 | 16,604 |
Subordinated debentures issued to capital trusts | 25,774 | 25,774 |
Subordinated notes | 73,804 | 73,688 |
Accrued interest payable | 3,013 | 2,904 |
Advances from borrowers for taxes and insurance | 8,858 | 5,319 |
Accounts payable and accrued expenses | 15,301 | 13,395 |
Total Liabilities | 4,075,959 | 3,942,859 |
Capital Stock | ||
Serial preferred stock - $.01 par value; authorized 1,000,000 shares; issued and outstanding September 2018 and December 2017 - -0- shares | 0 | 0 |
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding September 2018 -14,153,290 shares; December 2017 - 14,087,533 shares | 142 | 141 |
Additional paid-in capital | 29,553 | 28,203 |
Retained earnings | 480,027 | 442,077 |
Accumulated other comprehensive income (loss) | (1,595) | 1,241 |
Total Stockholders' Equity | 508,127 | 471,662 |
Total Liabilities and Stockholders' Equity | $ 4,584,086 | $ 4,414,521 |
Statement of Financial Positi_2
Statement of Financial Position - Parenthetical - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Details | ||
Debt Securities, Held-to-maturity, Fair Value | $ 0 | $ 131 |
Loans and Leases Receivable, Allowance | $ 37,497 | $ 36,492 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Common Stock, Shares Authorized | 20,000,000 | |
Common Stock, Shares, Issued | 14,153,290 | 14,087,533 |
Common Stock, Shares, Outstanding | 14,153,290 | 14,087,533 |
Income Statement
Income Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST INCOME | ||||
Loans | $ 51,063 | $ 44,824 | $ 144,447 | $ 131,734 |
Investment securities and other | 1,919 | 1,544 | 5,361 | 4,791 |
TOTAL INTEREST INCOME | 52,982 | 46,368 | 149,808 | 136,525 |
INTEREST EXPENSE | ||||
Deposits | 7,352 | 5,131 | 19,058 | 15,100 |
Federal Home Loan Bank advances | 1,192 | 546 | 2,964 | 1,045 |
Short-term borrowings and repurchase agreements | 177 | 118 | 385 | 662 |
Subordinated debentures issued to capital trusts | 252 | 267 | 692 | 760 |
Subordinated notes | 1,024 | 1,025 | 3,073 | 3,075 |
TOTAL INTEREST EXPENSE | 9,997 | 7,087 | 26,172 | 20,642 |
NET INTEREST INCOME | 42,985 | 39,281 | 123,636 | 115,883 |
Provision for Loan Losses | 1,300 | 2,950 | 5,200 | 7,150 |
Net Interest Income After Provision for Loan Losses | 41,685 | 36,331 | 118,436 | 108,733 |
NON-INTEREST INCOME | ||||
Commissions | 309 | 279 | 868 | 851 |
Service charges and ATM fees | 5,458 | 5,533 | 16,191 | 16,195 |
Net realized gains on sales of loans | 417 | 719 | 1,438 | 2,343 |
Late charges and fees on loans | 466 | 436 | 1,240 | 1,922 |
Gain on sales of securities | 2 | 0 | 2 | 0 |
Gain on derivative interest rate products | 5 | 8 | 53 | (5) |
Gain on sale of business units | 7,414 | 0 | 7,414 | 0 |
Other income | 533 | 680 | 1,792 | 2,627 |
Gain (loss) on derivative interest rate products | 5 | 8 | 53 | (5) |
Gain Realized on Termination of Loss Sharing Agreements | 0 | 7,704 | ||
Amortization of Income Expense Related to Business Acquisitions | 0 | (486) | ||
Gain on sale of business units | 7,414 | 0 | 7,414 | 0 |
TOTAL NON-INTEREST INCOME | 14,604 | 7,655 | 28,998 | 31,151 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 15,162 | 14,664 | 44,731 | 44,495 |
Net occupancy and equipment expense | 6,551 | 6,079 | 19,234 | 18,419 |
Postage | 843 | 845 | 2,544 | 2,651 |
Insurance | 682 | 755 | 2,002 | 2,300 |
Advertising | 589 | 587 | 1,892 | 1,656 |
Office supplies and printing | 255 | 279 | 789 | 1,208 |
Telephone | 827 | 790 | 2,339 | 2,389 |
Legal, audit and other professional fees | 875 | 610 | 2,373 | 1,991 |
Expense on Other Real Estate Owned | 498 | 1,343 | 4,376 | 2,595 |
Partnership Tax Credit Investment Amortization | 91 | 217 | 484 | 713 |
Acquired Deposit Intangible Asset Amortization | 412 | 412 | 1,237 | 1,237 |
Other operating expenses | 1,524 | 1,453 | 4,536 | 5,322 |
TOTAL NON-INTEREST EXPENSE | 28,309 | 28,034 | 86,537 | 84,976 |
Income Before Income Taxes | 27,980 | 15,952 | 60,897 | 54,908 |
Provision for Income Taxes | 5,464 | 4,289 | 11,076 | 15,550 |
Net income | $ 22,516 | $ 11,663 | $ 49,821 | $ 39,358 |
Basic Earnings Per Share | $ 1.59 | $ 0.83 | $ 3.53 | $ 2.81 |
Diluted Earnings Per Share | 1.57 | 0.82 | 3.49 | 2.77 |
Dividends Declared Per Share | $ 0.32 | $ 0.24 | $ 0.88 | $ 0.70 |
Statement of Comprehensive Inco
Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Net Income | $ 22,516 | $ 11,663 | $ 49,821 | $ 39,358 |
Unrealized Appreciation (Depreciation) on Available for Sale Securities, Net | (805) | (177) | (3,106) | 186 |
Reclassification adjustment for gains included in net income, net of (taxes) credit of $0 for each of 2018 and 2017 | (2) | 0 | (2) | 0 |
Change in Fair Value of Cash Flow Hedge, Net | 0 | 64 | 0 | 161 |
Comprehensive Income | $ 21,709 | $ 11,550 | $ 46,713 | $ 39,705 |
Statement of Comprehensive In_2
Statement of Comprehensive Income - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Tax effect of unrealized appreciation (depreciation) on available-for-sale securities, taxes (credit) | $ (232) | $ (101) | $ (894) | $ 106 |
Tax Effect Reclassification Adjustment for Gains Included in Net Income Taxes Credit | 0 | 0 | 0 | 0 |
Tax effect of change in fair value of cash flow hedge, taxes (credit) | $ 0 | $ 38 | $ 0 | $ 93 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 49,821 | $ 39,358 |
Proceeds from Sale of Loans Held-for-sale | 72,229 | 104,175 |
Originations of loans held for sale | (65,788) | (95,384) |
Items not requiring (providing) cash: | ||
Depreciation | 6,842 | 6,901 |
Amortization | 1,837 | 2,064 |
Compensation expense for stock option grants | 539 | 412 |
Provision for loan losses | 5,200 | 7,150 |
Net gains on loan sales | (1,438) | (2,343) |
Net realized gains on sales of available-for-sale securities | (2) | 0 |
Net losses on sale of premises and equipment | 122 | 183 |
Net (gains) losses on sale/write-down of other real estate owned | 2,003 | 211 |
Gain realized on sale of business units | (7,414) | 0 |
Gain realized on termination of loss sharing agreements | 0 | (7,704) |
Accretion of deferred income, premiums, discounts and other | (2,032) | (1,492) |
(Gain) loss on derivative interest rate products | (53) | 5 |
Deferred income taxes | (6,278) | (3,686) |
Changes In: | ||
Interest receivable | (670) | 669 |
Prepaid expenses and other assets | 5,967 | (271) |
Accrued expenses and other liabilities | 1,331 | 787 |
Income taxes refundable/payable | 11,158 | 841 |
Cash paid for sale of business units | (50,356) | 0 |
Proceeds from sales of available-for-sale securities | 502 | 0 |
Net cash provided by operating activities | 73,374 | 51,876 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net change in loans | (171,672) | 136,205 |
Purchase of loans | (57,382) | (203,294) |
Cash Received from FDIC Loss Sharing Reimbursements | 0 | 16,245 |
Purchase of premises and equipment | (7,833) | (4,546) |
Proceeds from sale of premises and equipment | 2,296 | 521 |
Proceeds from sale of other real estate owned and repossessions | 16,124 | 22,788 |
Capitalized costs on other real estate owned | (153) | (117) |
Proceeds from maturities and calls of held-to-maturity securities | 130 | 117 |
Proceeds from maturities and calls of available-for-sale securities | 2,366 | 9,579 |
Principal reductions on mortgage-backed securities | 17,134 | 19,834 |
Purchase of available-for-sale securities | (36,677) | 0 |
Purchase of Federal Home Loan Bank stock | (3,736) | (248) |
Net cash used in investing activities | (289,257) | (2,916) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in certificates of deposit | 84,177 | (121,438) |
Net increase (decrease) in checking and savings deposits | (24,535) | 42,563 |
Proceeds from Federal Home Loan Bank advances | 2,363,500 | 889,000 |
Repayments of Federal Home Loan Bank advances | (2,251,000) | (746,435) |
Net increase (decrease) in short-term borrowings | 16,409 | (132,424) |
Advances from borrowers for taxes and insurance | 3,539 | 4,182 |
Dividends paid | (11,288) | (9,523) |
Stock options exercised | 1,649 | 2,018 |
Net cash provided by (used in) financing activities | 182,451 | (72,057) |
DECREASES IN CASH AND CASH EQUIVALENTS | (33,432) | (23,097) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 242,253 | 279,769 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 208,821 | $ 256,672 |
NOTE 1_ BASIS OF PRESENTATION
NOTE 1: BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 1: BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements of Great Southern Bancorp, Inc. (the "Company" or "Great Southern") have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements presented herein reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial condition, results of operations and cash flows of the Company as of the dates and for the periods presented. Those adjustments consist only of normal recurring adjustments. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the full year. The consolidated statement of financial condition of the Company as of December 31, 2017, has been derived from the audited consolidated statement of financial condition of the Company as of that date. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on net income. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K |
NOTE 2_ NATURE OF OPERATIONS AN
NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS | NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS The Company operates as a one-bank holding company. The Company’s business primarily consists of the operations of Great Southern Bank (the “Bank”), which provides a full range of financial services to customers primarily located in Missouri, Iowa, Kansas, Minnesota, Nebraska and Arkansas. In addition, the Company operates commercial loan production offices in Dallas, Texas; Tulsa, Oklahoma; Omaha, Nebraska and Chicago, Illinois. The Company and the Bank are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory agencies. The Company’s banking operation is its only reportable segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans through attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. Selected information is not presented separately for the Company’s reportable segment, as there is no material difference between that information and the corresponding information in the consolidated financial statements. |
NOTE 3_ RECENT ACCOUNTING PRONO
NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs--Contracts with Customers (Subtopic 340-40) Revenue Recognition Under ASU 2014-09, for revenue not associated with financial instruments, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognize revenue and the related costs to provide our services on a net basis in our financial statements. These transactions primarily relate to fees derived from our customers' use of various interchange and ATM/debit card networks. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740) In January 2017, the FASB issued ASU No. 2017-01, Business Combinations - Clarifying the Definition of a Business (Topic 805) In January 2017, the FASB issued ASU No. 2017-04, Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment (Topic 350) In May 2017, the FASB issued ASU 2017-09, Compensation --Stock Compensation (Topic 718): Scope of Modification Accounting amendment provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 7l8. The amendments clarify that modification accounting only applies to an entity if the fair value, vesting conditions, or classification of the award changes as a result of changes in the terms or conditions of a share-based payment award. The ASU should be applied prospectively to awards modified on or after the adoption date. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220). In August 2018, the FASB issued ASU 2018-13 , Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement |
NOTE 4_ EARNINGS PER SHARE
NOTE 4: EARNINGS PER SHARE | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 4: EARNINGS PER SHARE | NOTE 4: EARNINGS PER SHARE Three Months Ended September 30, 2018 2017 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 14,146 14,038 Net income $ 22,516 $ 11,663 Per share amount $ 1.59 $ 0.83 Diluted: Average shares outstanding 14,146 14,038 Net effect of dilutive stock options – based on the treasury stock method using average market price 153 186 Diluted shares 14,299 14,224 Net income $ 22,516 $ 11,663 Per share amount $ 1.57 $ 0.82 Nine Months Ended September 30, 2018 2017 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 14,124 14,007 Net income $ 49,821 $ 39,358 Per share amount $ 3.53 $ 2.81 Diluted: Average shares outstanding 14,124 14,007 Net effect of dilutive stock options – based on the treasury stock method using average market price 136 186 Diluted shares 14,260 14,193 Net income $ 49,821 $ 39,358 Per share amount $ 3.49 $ 2.77 Options outstanding at September 30, 2018 and 2017, to purchase 170,600 and 114,300 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three month periods because the exercise prices of such options were greater than the average market prices of the common stock for the three months ended September 30, 2018 and 2017, respectively. Options outstanding at September 30, 2018 and 2017, to purchase 260,947 and 114,300 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the nine month periods because the exercise prices of such options were greater than the average market prices of the common stock for the nine months ended September 30, 2018 and 2017, respectively. |
NOTE 5_ INVESTMENT SECURITIES
NOTE 5: INVESTMENT SECURITIES | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 5: INVESTMENT SECURITIES | NOTE 5: INVESTMENT SECURITIES September 30, 2018 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Mortgage-backed securities $ 124,777 $ 639 $ 3,891 $ 121,525 2.44% Collateralized mortgage obligations 17,481 — 97 17,384 3.03 States and political subdivisions 51,047 1,314 19 52,342 4.81 $ 193,305 $ 1,953 $ 4,007 $ 191,251 3.12% December 31, 2017 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Mortgage-backed securities $ 123,300 $ 871 $ 1,638 $ 122,533 2.19% States and political subdivisions 53,930 2,716 — 56,646 4.72 $ 177,230 $ 3,587 $ 1,638 $ 179,179 2.96% HELD-TO-MATURITY SECURITIES: States and political subdivisions $ 130 $ 1 $ — $ 131 6.14% The amortized cost and fair value of available-for-sale securities at September 30, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In Thousands) One year or less $ — $ — After one through five years 841 905 After five through ten years 9,556 9,687 After ten years 40,650 41,750 Securities not due on a single maturity date 142,258 138,909 $ 193,305 $ 191,251 Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at September 30, 2018 and December 31, 2017, was approximately $117.5 million and $89.7 million, respectively, which is approximately 61.4% and 50.0% of the Company’s available-for-sale and held-to-maturity investment portfolio, respectively. Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2018 and December 31, 2017: September 30, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) Mortgage-backed securities $ 24,226 $ (557) $ 72,518 $ (3,334) $ 96,744 $ (3,891) Collateralized mortgage obligations 17,384 (97) — — 17,384 (97) State and political subdivisions 3,341 (19) — — 3,341 (19) $ 44,951 $ (673) $ 72,518 $ (3,334) $ 117,469 $ (4,007) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) Mortgage-backed securities $ 33,862 $ (384) $ 55,845 $ (1,254) $ 89,707 $ (1,638) State and political subdivisions — — — — — — $ 33,862 $ (384) $ 55,845 $ (1,254) $ 89,707 $ (1,638) Gross gains of $2,000 and $2,000 and gross losses of $0 and $0 resulting from sales of available-for-sale securities were realized during the three and nine months ended September 30, 2018. Other-than-temporary Impairment. The accounting guidance for beneficial interests in securitized financial assets provides incremental impairment guidance for a subset of the debt securities within the scope of the guidance for investments in debt and equity securities. For securities where the security is a beneficial interest in securitized financial assets, the Company uses the beneficial interests in securitized financial asset impairment model. For securities where the security is not a beneficial interest in securitized financial assets, the Company uses the debt and equity securities impairment model. The Company does not currently have securities within the scope of this guidance for beneficial interests in securitized financial assets. The Company routinely conducts periodic reviews to identify and evaluate each investment security to determine whether an other-than-temporary impairment has occurred. The Company considers the length of time a security has been in an unrealized loss position, the relative amount of the unrealized loss compared to the carrying value of the security, the type of security and other factors. If certain criteria are met, the Company performs additional review and evaluation using observable market values or various inputs in economic models to determine if an unrealized loss is other-than-temporary. The Company uses quoted market prices for marketable equity securities and uses broker pricing quotes based on observable inputs for equity investments that are not traded on a stock exchange. For non-agency collateralized mortgage obligations, to determine if the unrealized loss is other than temporary, the Company projects total estimated defaults of the underlying assets (mortgages) and multiplies that calculated amount by an estimate of realizable value upon sale in the marketplace (severity) in order to determine the projected collateral loss. The Company also evaluates any current credit enhancement underlying these securities to determine the impact on cash flows. If the Company determines that a given security position will be subject to a write-down or loss, the Company records the expected credit loss as a charge to earnings. During the three and nine months ended September 30, 2018 and 2017, respectively, no securities were determined to have impairment that had become other-than-temporary. Credit Losses Recognized on Investments. Amounts Reclassified Out of Accumulated Other Comprehensive Income. Note 3 |
NOTE 6_ LOANS AND ALLOWANCE FOR
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES Classes of loans at September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2018 2017 (In Thousands) One- to four-family residential construction $ 25,477 $ 20,793 Subdivision construction 16,054 18,062 Land development 44,502 43,971 Commercial construction 1,283,468 1,068,352 Owner occupied one- to four-family residential 255,994 190,515 Non-owner occupied one- to four-family residential 109,282 119,468 Commercial real estate 1,383,871 1,235,329 Other residential 791,786 745,645 Commercial business 332,037 353,351 Industrial revenue bonds 14,179 21,859 Consumer auto 277,884 357,142 Consumer other 57,921 63,368 Home equity lines of credit 117,061 115,439 Loans acquired and accounted for under ASC 310-30, net of discounts 177,150 209,669 4,886,666 4,562,963 Undisbursed portion of loans in process (899,620) (793,669) Allowance for loan losses (37,497) (36,492) Deferred loan fees and gains, net (6,783) (6,500) $ 3,942,766 $ 3,726,302 Weighted average interest rate 5.03% 4.74% Classes of loans by aging were as follows: September 30, 2018 Total Loans Total > 90 Days 30-59 Days 60-89 Days Over Total Loans Past Due and Past Due Past Due 90 Days Past Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ — $ 294 $ — $ 294 $ 25,183 $ 25,477 $ — Subdivision construction 12 — — 12 16,042 16,054 — Land development — 32 — 32 44,470 44,502 — Commercial construction — — — — 1,283,468 1,283,468 — Owner occupied one- to four-family residential 138 62 1,270 1,470 254,524 255,994 — Non-owner occupied one- o to four-family residential — — 1,481 1,481 107,801 109,282 — Commercial real estate 327 38 346 711 1,383,160 1,383,871 — Other residential — — — — 791,786 791,786 — Commercial business 129 — 1,590 1,719 330,318 332,037 — Industrial revenue bonds — — — — 14,179 14,179 — Consumer auto 2,705 858 1,367 4,930 272,954 277,884 — Consumer other 473 220 326 1,019 56,902 57,921 — Home equity lines of credit 353 — 95 448 116,613 117,061 — Loans acquired and accounted for under ASC 310-30, net of discounts 1,780 1,442 2,385 5,607 171,543 177,150 — 5,917 2,946 8,860 17,723 4,868,943 4,886,666 — Less loans acquired and accounted for under ASC 310-30, net 1,780 1,442 2,385 5,607 171,543 177,150 — Total $ 4,137 $ 1,504 $ 6,475 $ 12,116 $ 4,697,400 $ 4,709,516 $ — December 31, 2017 Total Loans Total > 90 Days Past 30-59 Days 60-89 Days Over 90 Total Past Loans Due and Past Due Past Due Days Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ 250 $ — $ — $ 250 $ 20,543 $ 20,793 $ — Subdivision construction — — 98 98 17,964 18,062 — Land development 54 37 — 91 43,880 43,971 — Commercial construction — — — — 1,068,352 1,068,352 — Owner occupied one- to four-family residential 1,927 71 904 2,902 187,613 190,515 — Non-owner occupied one- to four-family residential 947 190 1,816 2,953 116,515 119,468 58 Commercial real estate 8,346 993 1,226 10,565 1,224,764 1,235,329 — Other residential 540 353 1,877 2,770 742,875 745,645 — Commercial business 2,623 1,282 2,063 5,968 347,383 353,351 — Industrial revenue bonds — — — — 21,859 21,859 — Consumer auto 5,196 1,230 2,284 8,710 348,432 357,142 12 Consumer other 464 64 557 1,085 62,283 63,368 — Home equity lines of credit 58 — 430 488 114,951 115,439 26 Loans acquired and accounted for under ASC 310-30, net of discounts 4,449 1,951 10,675 17,075 192,594 209,669 272 24,854 6,171 21,930 52,955 4,510,008 4,562,963 368 Less loans acquired and accounted for under ASC 310-30, net 4,449 1,951 10,675 17,075 192,594 209,669 272 Total $ 20,405 $ 4,220 $ 11,255 $ 35,880 $ 4,317,414 $ 4,353,294 $ 96 Nonaccruing loans (excluding FDIC-assisted acquired loans, net of discount) are summarized as follows: September 30, December 31, 2018 2017 (In Thousands) One- to four-family residential construction $ — $ — Subdivision construction — 98 Land development — — Commercial construction — — Owner occupied one- to four-family residential 1,270 904 Non-owner occupied one- to four-family residential 1,481 1,758 Commercial real estate 346 1,226 Other residential — 1,877 Commercial business 1,590 2,063 Industrial revenue bonds — — Consumer auto 1,367 2,272 Consumer other 326 557 Home equity lines of credit 95 404 Total $ 6,475 $ 11,159 The following table presents the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2018. Also presented are the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of September 30, 2018: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance July 1, 2018 $ 2,727 $ 3,845 $ 19,474 $ 2,395 $ 2,991 $ 6,124 $ 37,556 Provision (benefit) charged to expense 7 341 708 538 (1,019) 725 1,300 Losses charged off (18) (194) — (4) (274) (2,128) (2,618) Recoveries 79 41 1 97 80 961 1,259 Balance September 30, 2018 $ 2,795 $ 4,033 $ 20,183 $ 3,026 $ 1,778 $ 5,682 $ 37,497 Balance January 1, 2018 $ 2,108 $ 2,839 $ 18,639 $ 1,767 $ 3,581 $ 7,558 $ 36,492 Provision (benefit) charged to expense 494 1,310 1,519 1,009 (991) 1,859 5,200 Losses charged off (59) (525) (102) (87) (1,155) (7,062) (8,990) Recoveries 252 409 127 337 343 3,327 4,795 Balance September 30, 2018 $ 2,795 $ 4,033 $ 20,183 $ 3,026 $ 1,778 $ 5,682 $ 37,497 Ending balance: Individually evaluated for impairment $ 771 $ — $ 635 $ — $ 324 $ 433 $ 2,163 Collectively evaluated for impairment $ 1,987 $ 4,006 $ 19,288 $ 2,953 $ 1,438 $ 5,221 $ 34,893 Loans acquired and accounted for under ASC 310-30 $ 37 $ 27 $ 260 $ 73 $ 16 $ 28 $ 441 Loans Individually evaluated for impairment $ 6,302 $ — $ 3,556 $ 14 $ 2,008 $ 2,524 $ 14,404 Collectively evaluated for impairment $ 400,505 $ 791,786 $ 1,380,315 $ 1,327,956 $ 344,208 $ 450,342 $ 4,695,112 Loans acquired and accounted for under ASC 310-30 $ 98,702 $ 12,927 $ 35,980 $ 4,240 $ 4,613 $ 20,688 $ 177,150 The following table presents the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2017: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance July 1, 2017 $ 2,413 $ 3,655 $ 15,442 $ 1,711 $ 4,365 $ 8,947 $ 36,533 Provision (benefit) charged to expense 285 190 643 298 562 972 2,950 Losses charged off (74) (10) (357) — (1,090) (3,151) (4,682) Recoveries 46 89 74 129 66 1,038 1,442 Balance September 30, 2017 $ 2,670 $ 3,924 $ 15,802 $ 2,138 $ 3,903 $ 7,806 $ 36,243 Balance January 1, 2017 $ 2,322 $ 5,486 $ 15,938 $ 2,284 $ 3,015 $ 8,355 $ 37,400 Provision (benefit) charged to expense 407 (1,708) 1,413 74 1,786 5,178 7,150 Losses charged off (150) (12) (1,649) (386) (1,365) (9,120) (12,682) Recoveries 91 158 100 166 467 3,393 4,375 Balance September 30, 2017 $ 2,670 $ 3,924 $ 15,802 $ 2,138 $ 3,903 $ 7,806 $ 36,243 The following table presents the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2017: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Individually evaluated for impairment $ 513 $ — $ 599 $ — $ 2,140 $ 699 $ 3,951 Collectively evaluated for impairment $ 1,564 $ 2,813 $ 17,843 $ 1,690 $ 1,369 $ 6,802 $ 32,081 Loans acquired and accounted for under ASC 310-30 $ 31 $ 26 $ 197 $ 77 $ 72 $ 57 $ 460 Loans Individually evaluated for impairment $ 6,950 $ 2,907 $ 8,315 $ 15 $ 3,018 $ 4,129 $ 25,334 Collectively evaluated for impairment $ 341,888 $ 742,738 $ 1,227,014 $ 1,112,308 $ 372,192 $ 531,820 $ 4,327,960 Loans acquired and accounted for under ASC 310-30 $ 120,295 $ 14,877 $ 39,210 $ 3,806 $ 5,275 $ 26,206 $ 209,669 The portfolio segments used in the preceding three tables correspond to the loan classes used in all other tables in Note 6 as follows: · · · · · · A loan is considered impaired, in accordance with the impairment accounting guidance (FASB ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include not only nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. Impaired loans (excluding FDIC-assisted loans, net of discount), are summarized as follows: September 30, 2018 Unpaid Recorded Principal Specific Balance Balance Allowance One- to four-family residential construction $ — $ — $ — Subdivision construction 241 241 107 Land development 14 18 — Commercial construction — — — Owner occupied one- to four- family residential 3,663 3,995 343 Non-owner occupied one- to four- family residential 2,398 2,677 321 Commercial real estate 3,556 3,714 635 Other residential — — — Commercial business 2,008 2,383 324 Industrial revenue bonds — — — Consumer auto 1,843 2,046 331 Consumer other 566 751 85 Home equity lines of credit 115 133 17 Total $ 14,404 $ 15,958 $ 2,163 Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $ — $ — $ — $ — Subdivision construction 299 3 336 11 Land development 15 1 15 1 Commercial construction — — — — Owner occupied one- to four-family residential 3,401 53 3,322 142 Non-owner occupied one- to four-family residential 2,583 38 3,082 130 Commercial real estate 6,689 55 7,115 278 Other residential 675 — 1,368 20 Commercial business 2,581 40 3,277 329 Industrial revenue bonds — — — — Consumer auto 1,865 37 2,120 118 Consumer other 671 11 806 48 Home equity lines of credit 405 — 500 28 Total $ 19,184 $ 238 $ 21,941 $ 1,105 At or for the Year Ended December 31, 2017 Average Unpaid Investment Interest Recorded Principal Specific in Impaired Income Balance Balance Allowance Loans Recognized (In Thousands) One- to four-family residential construction $ — $ — $ — $ 193 $ — Subdivision construction 349 367 114 584 22 Land development 15 18 — 1,793 24 Commercial construction — — — — — Owner occupied one- to four- family residential 3,405 3,723 331 3,405 166 Non-owner occupied one- to four- family residential 3,196 3,465 68 2,419 165 Commercial real estate 8,315 8,490 599 9,075 567 Other residential 2,907 2,907 — 3,553 147 Commercial business 3,018 4,222 2,140 5,384 173 Industrial revenue bonds — — — — — Consumer auto 2,713 2,898 484 2,383 222 Consumer other 825 917 124 906 69 Home equity lines of credit 591 648 91 498 33 Total $ 25,334 $ 27,655 $ 3,951 $ 30,193 $ 1,588 September 30, 2017 Unpaid Recorded Principal Specific Balance Balance Allowance (In Thousands) One- to four-family residential construction $ — $ — $ — Subdivision construction 434 450 116 Land development 315 319 — Commercial construction — — — Owner occupied one- to four-family residential 3,441 3,740 351 Non-owner occupied one- to four-family residential 3,293 3,560 104 Commercial real estate 9,358 9,581 599 Other residential 3,390 3,390 — Commercial business 3,141 4,311 2,396 Industrial revenue bonds — — — Consumer auto 2,740 2,936 491 Consumer other 1,042 1,148 156 Home equity lines of credit 647 725 100 Total $ 27,801 $ 30,160 $ 4,313 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $ — $ — $ 258 $ — Subdivision construction 444 9 652 21 Land development 424 12 2,319 33 Commercial construction — — — — Owner occupied one- to four-family residential 3,440 44 3,384 124 Non-owner occupied one- to four-family residential 2,550 80 2,183 128 Commercial real estate 6,819 266 9,068 425 Other residential 3,457 27 3,660 102 Commercial business 5,580 35 6,148 161 Industrial revenue bonds — — — — Consumer auto 2,548 79 2,323 156 Consumer other 1,005 26 886 65 Home equity lines of credit 633 14 456 32 Total $ 26,900 $ 592 $ 31,337 $ 1,247 At September 30, 2018, $8.7 million of impaired loans had specific valuation allowances totaling $2.2 million. At December 31, 2017, $12.7 million of impaired loans had specific valuation allowances totaling $4.0 million. Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. Troubled debt restructurings are loans that are modified by granting concessions to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The types of concessions made are factored into the estimation of the allowance for loan losses for troubled debt restructurings primarily using a discounted cash flow or collateral adequacy approach. The following tables present newly restructured loans during the three and nine months ended September 30, 2018 and 2017, respectively, by type of modification: Three Months Ended September 30, 2018 Total Interest Only Term Combination Modification (In Thousands) Consumer $ — $ 67 $ — $ 67 Three Months Ended September 30, 2017 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: Commercial $ — $ — $ 5,759 $ 5,759 Consumer — 194 — 194 $ — $ 194 $ 5,759 $ 5,953 Nine Months Ended September 30, 2018 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: One- to four-family residential $ 1,348 $ — $ — $ 1,348 Consumer — 506 — 506 $ 1,348 $ 506 $ — $ 1,854 Nine Months Ended September 30, 2017 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: Commercial $ — $ — $ 5,759 $ 5,759 Commercial business — — 274 274 Consumer — 199 — 199 $ — $ 199 $ 6,033 $ 6,232 At September 30, 2018, the Company had $7.0 million of loans that were modified in troubled debt restructurings and impaired, as follows: $256,000 of construction and land development loans, $4.1 million of one- to four-family and other residential mortgage loans, $1.3 million of commercial real estate loans, $568,000 of commercial business loans and $856,000 of consumer loans. Of the total troubled debt restructurings at September 30, 2018, $4.8 million were accruing interest and $2.3 million were classified as substandard using the Company’s internal grading system, which is described below. The Company had no troubled debt restructurings which were modified in the previous 12 months and subsequently defaulted during the nine months ended September 30, 2018. When loans modified as troubled debt restructurings have subsequent payment defaults, the defaults are factored into the determination of the allowance for loan losses to ensure specific valuation allowances reflect amounts considered uncollectible. At December 31, 2017, the Company had $15.0 million of loans that were modified in troubled debt restructurings and impaired, as follows: $266,000 of construction and land development loans, $6.2 million of one- to four-family and other residential mortgage loans, $7.1 million of commercial real estate loans, $867,000 of commercial business loans and $617,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2017, $12.3 million were accruing interest and $8.8 million were classified as substandard using the Company’s internal grading system. The reduction in troubled debt restructurings during the three and nine months ended September 30, 2018 was primarily due to the removal of performing loans that were part of two customer relationships totaling $5.7 million due to return to market interest rates, cash flow improvement and amortization and payment performance. During the three and nine months ended September 30, 2018, $46,000 and $85,000 of loans, respectively, all of which consisted of one- to four-family residential loans, designated as troubled debt restructurings met the criteria for placement back on accrual status. The criteria is generally a minimum of six months of consistent and timely payment performance under original or modified terms. During the three months ended September 30, 2017, loans designated as troubled debt restructurings totaling $327,000 met the criteria for placement back on accrual status. The $327,000 consisted of $285,000 of commercial real estate loans and $42,000 of consumer loans. During the nine months ended September 30, 2017, loans designated as troubled debt restructurings totaling $672,000 met the criteria for placement back on accrual status. The $672,000 consisted of $345,000 of one- to four- family residential loans, $285,000 of commercial real estate loans and $42,000 of consumer loans. The Company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as “Satisfactory,” “Watch,” “Special Mention,” “Substandard” and “Doubtful.” Loans classified as watch are being monitored because of indications of potential weaknesses or deficiencies that may require future classification as special mention or substandard. Special mention loans possess potential weaknesses that deserve management’s close attention but do not expose the Bank to a degree of risk that warrants substandard classification. Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if certain deficiencies are not corrected. Doubtful loans are those having all the weaknesses inherent to those classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans not meeting any of the criteria previously described are considered satisfactory. The FDIC-assisted acquired loans are also evaluated using this internal grading system and are accounted for in pools. Minimal adverse classification in these acquired loan pools was identified as of September 30, 2018 and December 31, 2017, respectively. See Note 7 for further discussion of the acquired loan pools and the termination of the loss sharing agreements. The Company evaluates the loan risk internal grading system definitions and allowance for loan loss methodology on an ongoing basis. The general component of the allowance for loan losses is affected by several factors, including, but not limited to, average historical losses, average life of the loans, the current composition of the loan portfolio, current and expected economic conditions, collateral values and internal risk ratings. Management considers all these factors in determining the adequacy of the Company’s allowance for loan losses. In early 2018, we expanded our loan risk rating system to allow for further segregation of satisfactory credits. No significant changes were made to the allowance for loan loss methodology during the past year. The loan grading system is presented by loan class below: September 30, 2018 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $ 25,056 $ 421 $ — $ — $ — $ 25,477 Subdivision construction 14,087 1,967 — — — 16,054 Land development 39,902 4,600 — — — 44,502 Commercial construction 1,283,468 — — — — 1,283,468 Owner occupied one- to four- family residential 253,695 62 — 2,237 — 255,994 Non-owner occupied one- to four- family residential 106,619 1,092 — 1,571 — 109,282 Commercial real estate 1,370,246 11,330 — 2,295 — 1,383,871 Other residential 791,285 501 — — — 791,786 Commercial business 325,260 5,187 — 1,590 — 332,037 Industrial revenue bonds 14,179 — — — — 14,179 Consumer auto 276,220 155 — 1,509 — 277,884 Consumer other 57,337 162 — 422 — 57,921 Home equity lines of credit 116,804 152 — 105 — 117,061 Loans acquired and accounted for under ASC 310-30, net of discounts 177,130 — — 20 — 177,150 Total $ 4,851,288 $ 25,629 $ — $ 9,749 $ — $ 4,886,666 December 31, 2017 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $ 20,275 $ 518 $ — $ — $ — $ 20,793 Subdivision construction 15,602 2,362 — 98 — 18,062 Land development 39,171 4,800 — — — 43,971 Commercial construction 1,068,352 — — — — 1,068,352 Owner occupied one- to-four- family residential 188,706 — — 1,809 — 190,515 Non-owner occupied one- to- four-family residential 117,103 389 — 1,976 — 119,468 Commercial real estate 1,218,431 9,909 — 6,989 — 1,235,329 Other residential 742,237 1,532 — 1,876 — 745,645 Commercial business 344,479 6,306 — 2,066 500 353,351 Industrial revenue bonds 21,859 — — — — 21,859 Consumer auto 354,588 — — 2,554 — 357,142 Consumer other 62,682 — — 686 — 63,368 Home equity lines of credit 114,860 — — 579 — 115,439 Loans acquired and accounted for under ASC 310-30, net of discounts 209,657 — — 12 — 209,669 Total $ 4,518,002 $ 25,816 $ — $ 18,645 $ 500 $ 4,562,963 |
NOTE 7_ ACQUIRED LOANS, LOSS SH
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS | NOTE 7: FDIC-ACQUIRED LOANS On March 20, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits (excluding brokered deposits) and acquire certain assets of TeamBank, N.A., a full service commercial bank headquartered in Paola, Kansas. The loans, commitments and foreclosed assets purchased in the TeamBank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans. The five-year period ended March 31, 2014 and the ten-year period was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On September 4, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Vantus Bank, a full service thrift headquartered in Sioux City, Iowa. The loans, commitments and foreclosed assets purchased in the Vantus Bank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans. The five year period ended September 30, 2014 and the ten-year period was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On October 7, 2011, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Sun Security Bank, a full service bank headquartered in Ellington, Missouri. The loans and foreclosed assets purchased in the Sun Security Bank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans but was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On April 27, 2012, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Inter Savings Bank, FSB (“InterBank”), a full service bank headquartered in Maple Grove, Minnesota. The loans and foreclosed assets purchased in the InterBank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans but was terminated early, effective June 9, 2017, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded at the time of acquisition in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three months ended September 30, 2018 and 2017 was $38,000 and $64,000, respectively. The amount amortized to yield during the nine months ended September 30, 2018 and 2017 was $138,000 and $210,000, respectively. On June 20, 2014, Great Southern Bank entered into a purchase and assumption agreement with the FDIC to purchase a substantial portion of the loans and investment securities, as well as certain other assets, and assume all of the deposits, as well as certain other liabilities, of Valley Bank, a full-service bank headquartered in Moline, Illinois, with significant operations in Iowa. This transaction did not include a loss sharing agreement. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three months ended September 30, 2018 and 2017 was $0 and $47,000, respectively. The amount amortized to yield during the nine months ended September 30, 2018 and 2017 was $11,000 and $189,000, respectively. Loss Sharing Agreements . On June 9, 2017, Great Southern Bank executed an agreement with the FDIC to terminate the loss sharing agreements for InterBank, effective immediately. Pursuant to the termination agreement, the FDIC paid $15.0 million to the Bank to settle all outstanding items related to the terminated loss sharing agreements. The Company recorded a pre-tax gain on the termination of $7.7 million. As a result of entering into the termination agreement, assets that were covered by the terminated loss sharing arrangements were reclassified as non-covered assets effective June 9, 2017. All rights and obligations of the Bank and the FDIC under the terminated loss sharing agreements, including the settlement of all existing loss sharing and expense reimbursement claims, have been resolved and terminated. The termination of the loss sharing agreements for the TeamBank, Vantus Bank, Sun Security Bank and InterBank transactions has no impact on the yields for the loans that were previously covered under these agreements. All post-termination recoveries, gains, losses and expenses related to these previously covered assets are recognized entirely by Great Southern Bank since the FDIC no longer shares in such gains or losses. Accordingly, the Company’s earnings are positively impacted to the extent the Company recognizes gains on any sales or recoveries in excess of the carrying value of such assets. Similarly, the Company’s future earnings will be negatively impacted to the extent the Company recognizes expenses, losses or charge-offs related to such assets. Fair Value and Expected Cash Flows The amount of the estimated cash flows expected to be received from the acquired loan pools in excess of the fair values recorded for the loan pools is referred to as the accretable yield. The accretable yield is recognized as interest income over the estimated lives of the loans. The Company continues to evaluate the fair value of the loans including cash flows expected to be collected. Increases in the Company’s cash flow expectations are recognized as increases to the accretable yield while decreases are recognized as impairments through the allowance for loan losses. During the three and nine months ended September 30, 2018, improvements in expected cash flows related to the acquired loan portfolios resulted in adjustments of $1.5 million and $4.0 million, respectively, to the accretable yield to be spread over the estimated remaining lives of the loans on a level-yield basis. During the three and nine months ended September 30, 2017, similar such adjustments totaling $472,000 and $627,000, respectively, were made to the accretable yield. The increases in expected cash flows also reduced the amount of expected reimbursements under the loss sharing agreements, when applicable, until they were terminated or expired. Because these adjustments to accretable yield will be recognized generally over the remaining lives of the loan pools, they will impact future periods as well. As of September 30, 2018, the remaining accretable yield adjustment that will affect interest income is $2.9 million. Of the remaining adjustments affecting interest income, we expect to recognize $1.0 million of interest income during the remainder of 2018. Additional adjustments to accretable yield may be recorded in future periods from the FDIC-assisted transactions, as the Company continues to estimate expected cash flows from the acquired loan pools. The impact of adjustments on the Company’s financial results is shown below: Three Months Ended Three Months Ended September 30, 2018 September 30, 2017 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $ 1,424 14 bps $ 975 9 bps Non-interest income — — Net impact to pre-tax income $ 1,424 $ 975 Net impact net of taxes $ 1,106 $ 621 Impact to diluted earnings per share $ 0.08 $ 0.04 Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $ 3,652 12 bps $ 4,237 14 bps Non-interest income — (634) Net impact to pre-tax income $ 3,652 $ 3,603 Net impact net of taxes $ 2,836 $ 2,295 Impact to diluted earnings per share $ 0.20 $ 0.16 TeamBank Loans and Foreclosed Assets. September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 11,658 $ 15 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (445) — Original estimated fair value of assets, net of activity since acquisition date (11,094) (15) Expected loss remaining $ 119 $ — December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 13,668 $ 35 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (589) — Original estimated fair value of assets, net of activity since acquisition date (12,948) (35) Expected loss remaining $ 131 $ — Vantus Bank Loans and Foreclosed Assets. September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 15,698 $ — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (74) — Original estimated fair value of assets, net of activity since acquisition date (15,395) — Expected loss remaining $ 229 $ — December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 18,965 $ 15 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (131) — Original estimated fair value of assets, net of activity since acquisition date (18,605) (15) Expected loss remaining $ 229 $ — Sun Security Bank Loans and Foreclosed Assets. September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 22,219 $ 305 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (371) — Original estimated fair value of assets, net of activity since acquisition date (21,099) (214) Expected loss remaining $ 749 $ 91 December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 26,787 $ 306 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (494) — Original estimated fair value of assets, net of activity since acquisition date (25,348) (299) Expected loss remaining $ 945 $ 7 InterBank Loans and Foreclosed Assets. September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 90,512 $ 146 Non-credit premium/(discount), net of activity since acquisition date 136 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,785) — Original estimated fair value of assets, net of activity since acquisition date (78,642) (130) Expected loss remaining $ 10,221 $ 16 December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 112,399 $ 2,012 Non-credit premium/(discount), net of activity since acquisition date 274 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (972) — Original estimated fair value of assets, net of activity since acquisition date (98,321) (1,785) Expected loss remaining $ 13,380 $ 227 Valley Bank Loans and Foreclosed Assets. September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $ 55,350 $ 1,488 Non-credit premium/(discount), net of activity since acquisition date — — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (229) — Original estimated fair value of assets, net of activity since acquisition date (50,915) (1,488) Expected loss remaining $ 4,206 $ — December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $ 59,997 $ 1,673 Non-credit premium/(discount), net of activity since acquisition date 11 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (411) — Original estimated fair value of assets, net of activity since acquisition date (54,442) (1,667) Expected loss remaining $ 5,155 $ 6 Changes in the accretable yield for acquired loan pools were as follows for the three and nine months ended September 30, 2018 and 2017: Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) Balance, July 1, 2017 $ 2,303 $ 2,180 $ 3,686 $ 5,414 $ 3,313 Accretion (352) (310) (561) (1,688) (1,378) Change in expected accretable yield (1) 287 211 (270) 625 889 Balance, September 30, 2017 $ 2,238 $ 2,081 $ 2,855 $ 4,351 $ 2,824 Balance, July 1, 2018 $ 1,742 $ 1,652 $ 2,055 $ 5,910 $ 2,974 Accretion (294) (279) (399) (2,293) (901) Change in expected accretable yield (1) 103 234 500 2,054 578 Balance, September 30, 2018 $ 1,551 $ 1,607 $ 2,156 $ 5,671 $ 2,651 (1) Represents increases in estimated cash flows expected to be received from the acquired loan pools, partially due to lower estimated credit losses. The amounts also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the three months ended September 30, 2018, totaling $103,000, $234,000, $485,000, $604,000 and $578,000, respectively, and for the three months ended September 30, 2017, totaling $268,000, $204,000, $(270,000), $625,000 and $444,000, respectively. Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) Balance, January 1, 2017 $ 2,477 $ 2,547 $ 4,277 $ 8,512 $ 4,797 Accretion (1,319) (1,048) (1,757) (5,850) (4,772) Change in expected accretable yield (1) 1,080 582 335 1,689 2,799 Balance, September 30, 2017 $ 2,238 $ 2,081 $ 2,855 $ 4,351 $ 2,824 Balance, January 1, 2018 $ 2,071 $ 1,850 $ 2,901 $ 5,074 $ 2,695 Accretion (736) (897) (1,253) (5,943) (3,098) Change in expected accretable yield (1) 216 654 508 6,540 3,054 Balance, September 30, 2018 $ 1,551 $ 1,607 $ 2,156 $ 5,671 $ 2,651 (1) Represents increases in estimated cash flows expected to be received from the acquired loan pools, partially due to lower estimated credit losses. The amounts also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the nine months ended September 30, 2018, totaling $201,000, $654,000, $318,000, $3.6 million and $2.3 million, respectively, and for the nine months ended September 30, 2017, totaling $1.1 million, $569,000, $335,000, $1.7 million and $2.2 million, respectively. |
Note 8_ Other Real Estate Owned
Note 8: Other Real Estate Owned | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 8: Other Real Estate Owned | NOTE 8: OTHER REAL ESTATE OWNED AND REPOSSESSIONS Major classifications of other real estate owned were as follows: September 30, December 31, 2018 2017 (In Thousands) Foreclosed assets held for sale and repossessions One- to four-family construction $ — $ — Subdivision construction 2,264 5,413 Land development 4,495 7,229 Commercial construction — — One- to four-family residential 657 112 Other residential — 140 Commercial real estate 1,002 1,694 Commercial business — — Consumer 1,020 1,987 9,438 16,575 Foreclosed assets acquired through FDIC-assisted transactions, net of discounts 1,847 3,799 Foreclosed assets held for sale and repossessions, net 11,285 20,374 Other real estate owned not acquired through foreclosure 1,559 1,628 Other real estate owned and repossessions $ 12,844 $ 22,002 At September 30, 2018, other real estate owned not acquired through foreclosure included nine properties, eight of which were branch locations that were closed and are held for sale, and one of which is land acquired for a potential branch location. At December 31, 2017, other real estate owned not acquired through foreclosure included ten properties, nine of which were branch locations that were closed and are held for sale, and one of which is land acquired for a potential branch location. At September 30, 2018, residential mortgage loans totaling $1.3 million were in the process of foreclosure, $1.1 million of which were acquired loans. Expenses applicable to other real estate owned included the following: Three Months Ended September 30, 2018 2017 (In Thousands) Net gain on sales of other real estate and repossessions $ (549) $ (311) Valuation write-downs 178 462 Operating expenses, net of rental income 869 1,192 $ 498 $ 1,343 Nine Months Ended September 30, 2018 2017 (In Thousands) Net gain on sales of other real estate and repossessions $ (1,998) $ (1,098) Valuation write-downs 3,551 522 Operating expenses, net of rental income 2,823 3,171 $ 4,376 $ 2,595 |
Note 9_ Deposits
Note 9: Deposits | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 9: Deposits | NOTE 9: DEPOSITS September 30, December 31, 2018 2017 (In Thousands) Time Deposits: 0.00% - 0.99% $ 163,501 $ 254,502 1.00% - 1.99% 611,935 1,006,373 2.00% - 2.99% 647,247 106,888 3.00% - 3.99% 8,563 701 4.00% - 4.99% 1,129 1,108 5.00% and above 273 272 Total time deposits (1.77% - 1.24%) 1,432,648 1,369,844 Non-interest-bearing demand deposits 659,864 661,589 Interest-bearing demand and savings deposits (0.43% - 0.32%) 1,503,153 1,565,711 Total Deposits $ 3,595,665 $ 3,597,144 |
Note 10_ Advances From Federal
Note 10: Advances From Federal Home Loan Bank | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 10: Advances From Federal Home Loan Bank | NOTE 10: ADVANCES FROM FEDERAL HOME LOAN BANK Advances from the Federal Home Loan Bank of Des Moines (FHLBank advances) at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 Weighted Weighted Average Average Interest Interest Due In Amount Rate Amount Rate (In Thousands) (In Thousands) 2018 $ 240,000 2.18% $ 127,500 1.53% |
Note 11_ Securities Sold Under
Note 11: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 11: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings | NOTE 11: SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS September 30, 2018 December 31, 2017 (In Thousands) Notes payable – Community Development Equity Funds $ 1,360 $ 1,604 Overnight borrowings from the Federal Home Loan Bank — 15,000 Securities sold under reverse repurchase agreements 112,184 80,531 $ 113,544 $ 97,135 The Bank enters into sales of securities under agreements to repurchase (reverse repurchase agreements). Reverse repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability in the statements of financial condition. The dollar amount of securities underlying the agreements remains in the asset accounts. Securities underlying the agreements are held by the Bank during the agreement period. All agreements are written on a term of one-month or less. The following table represents the Company’s securities sold under reverse repurchase agreements, by collateral type and remaining contractual maturity. September 30, 2018 December 31, 2017 Overnight and Overnight and Continuous Continuous (In Thousands) Mortgage-backed securities – GNMA, FNMA, FHLMC $ 112,184 $ 80,531 |
Note 12_ Subordinated Notes
Note 12: Subordinated Notes | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 12: Subordinated Notes | NOTE 12: SUBORDINATED NOTES On August 8, 2016, the Company completed the public offering and sale of $75.0 million of its subordinated notes. The notes are due August 15, 2026, and have a fixed interest rate of 5.25% until August 15, 2021, at which time the rate becomes floating at a rate equal to three-month LIBOR plus 4.087%. The Company may call the notes at par beginning on August 15, 2021, and on any scheduled interest payment date thereafter. The notes were sold at par, resulting in net proceeds, after underwriting discounts and commissions, legal, accounting and other professional fees, of approximately $73.5 million. Total debt issuance costs, totaling approximately $1.5 million, were deferred and are being amortized over the expected life of the notes, which is 10 years. Amortization of the debt issuance costs during the three months ended September 30, 2018 and 2017, totaled $38,000 and $38,000, respectively, and is included in interest expense on subordinated notes in the consolidated statements of income, resulting in an imputed interest rate of 5.47%. Amortization of the debt issuance costs during the nine months ended September 30, 2018 and 2017, totaled $116,000 and $114,000, respectively. At September 30, 2018 and December 31, 2017, subordinated notes are summarized as follows: September 30, 2018 December 31, 2017 (In Thousands) Subordinated notes $ 75,000 $ 75,000 Less: unamortized debt issuance costs 1,196 1,312 $ 73,804 $ 73,688 |
Note 13_ Income Taxes
Note 13: Income Taxes | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 13: Income Taxes | NOTE 13: INCOME TAXES Reconciliations of the Company’s effective tax rates to the statutory corporate tax rates were as follows: Three Months Ended September 30, 2018 2017 Tax at statutory rate 21.0% 35.0% Nontaxable interest and dividends (0.5) (1.6) Tax credits (2.2) (7.8) State taxes 1.2 1.1 Other — 0.2 19.5% 26.9% Nine Months Ended September 30, 2018 2017 Tax at statutory rate 21.0% 35.0% Nontaxable interest and dividends (0.7) (1.5) Tax credits (3.2) (5.9) State taxes 1.2 1.3 Other (0.1) (0.6) 18.2% 28.3% H.R. 1, originally known as the Tax Cuts and Jobs Act ("Tax Act"), was signed into law on December 22, 2017, making several changes to U. S. corporate income tax laws, including reducing the corporate Federal income tax rate from 35% to 21% effective January 1, 2018. U. S. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment and the Company recognized the income tax effects of the Tax Act in its 2017 financial statements. The Tax Act is complex and requires significant detailed analysis which could lead to identification of additional adjustments related to enactment of the Tax Act. The Company's 2017 income tax returns were completed in 2018. At this time no additional adjustments were identified. We do not currently expect future significant adjustments will be necessary, but any further adjustments identified will be recognized in accordance with guidance contained in Staff Accounting Bulletin No. 118 from the U. S. Securities and Exchange Commission. The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS) and, as such, tax years through December 31, 2005, have been closed without audit. The Company, through one of its subsidiaries, is a partner in two partnerships which have been under Internal Revenue Service examination for 2006 and 2007. As a result, the Company's 2006 and subsequent tax years remain open for examination. The examinations of these partnerships advanced during 2016 and 2017. One of the partnerships has advanced to Tax Court and has entered a Motion for Entry of Decision with an agreed upon settlement. The other partnership examination was recently completed by the IRS with no change impacting the Company's tax positions. The Company does not currently expect significant adjustments to its financial statements from the partnership matter at the Tax Court. The Company was previously under State of Missouri income and franchise tax examinations for its 2014 and 2015 tax years. The Company disagreed with the proposed results of these examinations. As a result, the Company has filed a protest with the state outlining its tax position and support under Missouri law. The Company does not currently expect significant adjustments to its financial statements from this examination. During 2017, the Company settled an appeal with the Kansas Department of Revenue. The settlement did not result in any significant adjustments to the Company's financial statements. |
Note 14_ Disclosures About Fair
Note 14: Disclosures About Fair Value of Financial Instruments | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 14: Disclosures About Fair Value of Financial Instruments | NOTE 14: DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS ASC Topic 820, Fair Value Measurements · · · Financial instruments are broken down as follows by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, due to an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period. The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods. From December 31, 2017 to September 30, 2018, no assets for which fair value is measured on a recurring basis transferred between any levels of the hierarchy. Recurring Measurements The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2018 and December 31, 2017: Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2018 Mortgage-backed securities $ 121,525 $ — $ 121,525 $ — Collateralized mortgage obligations 17,384 — 17,384 — States and political subdivisions 52,342 — 52,342 — Interest rate derivative asset 1,453 — 1,453 — Interest rate derivative liability (1,448) — (1,448) — December 31, 2017 Mortgage-backed securities $ 122,533 $ — $ 122,533 $ — States and political subdivisions 56,646 — 56,646 — Interest rate derivative asset 981 — 981 — Interest rate derivative liability (1,030) — (1,030) — The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at September 30, 2018 and December 31, 2017, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the nine-month period ended September 30, 2018. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available-for-Sale Securities. Interest Rate Derivatives. Nonrecurring Measurements The following tables present the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and December 31, 2017: Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2018 Impaired loans $ 2,996 $ — $ — $ 2,996 Foreclosed assets held for sale $ 3,014 $ — $ — $ 3,014 December 31, 2017 Impaired loans $ 1,590 $ — $ — $ 1,590 Foreclosed assets held for sale $ 1,758 $ — $ — $ 1,758 The following is a description of valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying statements of financial condition, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Loans Held for Sale. Impaired Loans. Receivables The Company records impaired loans as Nonrecurring Level 3. If a loan’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the allowance for loan losses specific to the loan. Loans for which such charge-offs or reserves were recorded during the nine months ended September 30, 2018 or the year ended December 31, 2017, are shown in the table above (net of reserves). Foreclosed Assets Held for Sale. Fair Value of Financial Instruments The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying statements of financial condition at amounts other than fair value. Cash and Cash Equivalents and Federal Home Loan Bank Stock. Loans and Interest Receivable. Deposits and Accrued Interest Payable. Federal Home Loan Bank Advances. Short-Term Borrowings. Subordinated Debentures Issued to Capital Trusts. Subordinated Notes. Commitments to Originate Loans, Letters of Credit and Lines of Credit. The following table presents estimated fair values of the Company’s financial instruments not recorded at fair value on the statements of financial condition. The fair values of certain of these instruments were calculated by discounting expected cash flows, which method involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. September 30, 2018 December 31, 2017 Carrying Fair Hierarchy Carrying Fair Hierarchy Amount Value Level Amount Value Level (In Thousands) Financial assets Cash and cash equivalents $ 208,821 $ 208,821 1 $ 242,253 $ 242,253 1 Held-to-maturity securities — — 2 130 131 2 Mortgage loans held for sale 3,474 3,474 2 8,203 8,203 2 Loans, net of allowance for loan losses 3,942,766 3,905,137 3 3,726,302 3,735,216 3 Accrued interest receivable 13,008 13,008 3 12,338 12,338 3 Investment in FHLBank stock 14,918 14,918 3 11,182 11,182 3 Financial liabilities Deposits 3,595,665 3,585,641 3 3,597,144 3,606,400 3 FHLBank advances 240,000 240,000 3 127,500 127,500 3 Short-term borrowings 113,544 113,544 3 97,135 97,135 3 Subordinated debentures 25,774 25,774 3 25,774 25,774 3 Subordinated notes 73,804 75,469 2 73,688 76,500 2 Accrued interest payable 3,013 3,013 3 2,904 2,904 3 Unrecognized financial instruments (net of contractual value) Commitments to originate loans — — 3 — — 3 Letters of credit 155 155 3 85 85 3 Lines of credit — — 3 — — 3 |
Note 15_ Derivatives and Hedgin
Note 15: Derivatives and Hedging Activities | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 15: Derivatives and Hedging Activities | NOTE 15: DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities. In the normal course of business, the Company may use derivative financial instruments (primarily interest rate swaps) from time to time to assist in its interest rate risk management. The Company has interest rate derivatives that result from a service provided to certain qualifying loan customers that are not used to manage interest rate risk in the Company’s assets or liabilities and are not designated in a qualifying hedging relationship. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. In addition, the Company has interest rate derivatives that are designated in a qualified hedging relationship. Nondesignated Hedges The Company has interest rate swaps that are not designated as qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers, which the Company began offering during 2011. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As part of the Valley Bank FDIC-assisted acquisition, the Company acquired seven loans with related interest rate swaps. Valley’s swap program differed from the Company’s in that Valley did not have back to back swaps with the customer and a counterparty. Five of the seven acquired loans with interest rate swaps have paid off. The notional amount of the two remaining Valley swaps was $796,000 at September 30, 2018. At September 30, 2018, excluding the Valley Bank swaps, the Company had 19 interest rate swaps totaling $84.4 million in notional amount with commercial customers, and 19 interest rate swaps with the same notional amount with third parties related to its program. In addition, the Company has three participation loans purchased totaling $31.4 million, in which the lead institution has an interest rate swap with their customer and the economics of the counterparty swap are passed along to us through the loan participation. As of December 31, 2017, excluding the Valley Bank swaps, the Company had 22 interest rate swaps totaling $92.7 million in notional amount with commercial customers, and 22 interest rate swaps with the same notional amount with third parties related to its program. During the three months ended September 30, 2018 and 2017, the Company recognized net gains of $5,000 and $8,000, respectively, in noninterest income related to changes in the fair value of these swaps. During the nine months ended September 30, 2018 and 2017, the Company recognized net gains of $53,000 and net losses of $5,000, respectively, in noninterest income related to changes in the fair value of these swaps. Cash Flow Hedges As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flows due to interest rate fluctuations, the Company entered into two interest rate cap agreements for a portion of its floating rate debt associated with its trust preferred securities. One agreement terminated in 2015 and one agreement terminated in 2017. The effective portion of the gain or loss on the derivative was reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. No gains and losses related to changes in the fair value were recognized in current earnings during the three or nine months ended September 30, 2018. During the three and nine months ended September 30, 2017, the Company recognized $110,000 and $293,000, respectively, in interest expense related to the amortization of the cost of the interest rate caps. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition: Location in Fair Value Consolidated Statements September 30, December 31, of Financial Condition 2018 2017 (In Thousands) Derivatives not designated as hedging instruments Asset Derivatives Interest rate products Prepaid expenses and other assets $ 1,453 $ 981 Total derivatives not designated as hedging instruments $ 1,453 $ 981 Liability Derivatives Interest rate products Accrued expenses and other liabilities $ 1,448 $ 1,030 Total derivatives not designated as hedging instruments $ 1,448 $ 1,030 The following table presents the effect of derivative instruments on the statements of comprehensive income for the three and nine months ended September 30, 2018 and 2017: Amount of Gain (Loss) Recognized in AOCI Three Months Ended September 30, Cash Flow Hedges 2018 2017 (In Thousands) Interest rate cap, net of income taxes $ — $ 64 Amount of Gain (Loss) Recognized in AOCI Nine Months Ended September 30, Cash Flow Hedges 2018 2017 (In Thousands) Interest rate cap, net of income taxes $ — $ 161 Agreements with Derivative Counterparties The Company has agreements with its derivative counterparties. If the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Bank fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. Similarly, the Company could be required to settle its obligations under certain of its agreements if certain regulatory events occurred, such as the issuance of a formal directive, or if the Company’s credit rating is downgraded below a specified level. As of September 30, 2018, the termination value of derivatives with our derivative dealer counterparties in a net asset position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $1.5 million. The Company has minimum collateral posting thresholds with its derivative dealer counterparties. At September 30, 2018, the Company’s activity with certain of its derivative counterparties met the level at which the minimum collateral posting thresholds take effect (collateral to be received by the Company) and the derivative counterparties had posted collateral to the Company to satisfy the agreements. As of December 31, 2017, the termination value of derivatives in a net liability position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $336,000. At December 31, 2017, the Company’s activity with its derivative counterparties met the level at which the minimum collateral posting thresholds take effect and the Company posted $809,000 of collateral to satisfy the agreements. If the Company had breached any of these provisions at September 30, 2018 or December 31, 2017, it could have been required to settle its obligations under the agreements at the termination value. |
NOTE 16_ SALE OF BRANCHES AND R
NOTE 16: SALE OF BRANCHES AND RELATED DEPOSITS | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 16: SALE OF BRANCHES AND RELATED DEPOSITS | NOTE 16: SALE OF BRANCHES AND RELATED DEPOSITS On July 20, 2018, the Company closed on the sale of four banking centers and related deposits in the Omaha, Neb., metropolitan market to Lincoln, Neb.-based West Gate Bank. Pursuant to the purchase and assumption agreement, the Bank sold branch deposits of approximately $56 million and sold substantially all branch-related real estate, fixed assets and ATMs. The Company recorded a pre-tax gain (excluding transaction expenses of $165,000) of $7.4 million on the sale based on the contractual deposit premium and the sales price of the branch assets. |
NOTE 17_ SUBSEQUENT EVENT - SAL
NOTE 17: SUBSEQUENT EVENT - SALE OF CERTAIN BRANCHES | 3 Months Ended |
Sep. 30, 2018 | |
Notes | |
NOTE 17: SUBSEQUENT EVENT - SALE OF CERTAIN BRANCHES | NOTE 17: SUBSEQUENT EVENT – INTEREST RATE SWAP In October 2018, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap is $400 million with a termination date of October 6, 2025. Under the terms of the swap, the Company will receive a fixed rate of interest of 3.018% and will pay a floating rate of interest equal to one-month USD-LIBOR. The floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly. The initial floating rate of interest was set at 2.277%. Therefore, in the near term, the Company will receive net interest settlements which will be recorded as loan interest income, to the extent that the fixed rate of interest continues to exceed one-month USD-LIBOR. If USD-LIBOR exceeds the fixed rate of interest in future periods, the Company will be required to pay net settlements to the counterparty and will record those net payments as a reduction of interest income on loans. |
NOTE 1_ BASIS OF PRESENTATION_
NOTE 1: BASIS OF PRESENTATION: Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies | The accompanying unaudited interim consolidated financial statements of Great Southern Bancorp, Inc. (the "Company" or "Great Southern") have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements presented herein reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial condition, results of operations and cash flows of the Company as of the dates and for the periods presented. Those adjustments consist only of normal recurring adjustments. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the full year. The consolidated statement of financial condition of the Company as of December 31, 2017, has been derived from the audited consolidated statement of financial condition of the Company as of that date. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on net income. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K |
NOTE 2_ NATURE OF OPERATIONS _2
NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS: Segment Reporting, Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Segment Reporting, Policy | The CompanyÂ’s banking operation is its only reportable segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans through attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. Selected information is not presented separately for the CompanyÂ’s reportable segment, as there is no material difference between that information and the corresponding information in the consolidated financial statements. |
NOTE 4_ EARNINGS PER SHARE_ Ear
NOTE 4: EARNINGS PER SHARE: Earnings Per Share, Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Earnings Per Share, Policy | Options outstanding at September 30, 2018 and 2017, to purchase 170,600 and 114,300 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three month periods because the exercise prices of such options were greater than the average market prices of the common stock for the three months ended September 30, 2018 and 2017, respectively. Options outstanding at September 30, 2018 and 2017, to purchase 260,947 and 114,300 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the nine month periods because the exercise prices of such options were greater than the average market prices of the common stock for the nine months ended September 30, 2018 and 2017, respectively. |
NOTE 5_ INVESTMENT SECURITIES_
NOTE 5: INVESTMENT SECURITIES: Investment, Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Investment, Policy | Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at September 30, 2018 and December 31, 2017, was approximately $117.5 million and $89.7 million, respectively, which is approximately 61.4% and 50.0% of the CompanyÂ’s available-for-sale and held-to-maturity investment portfolio, respectively. Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. |
NOTE 6_ LOANS AND ALLOWANCE F_2
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Loan Portfolio Credit Quality Internal Grading System Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Loan Portfolio Credit Quality Internal Grading System Policy | The Company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as “Satisfactory,” “Watch,” “Special Mention,” “Substandard” and “Doubtful.” Loans classified as watch are being monitored because of indications of potential weaknesses or deficiencies that may require future classification as special mention or substandard. Special mention loans possess potential weaknesses that deserve management’s close attention but do not expose the Bank to a degree of risk that warrants substandard classification. Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if certain deficiencies are not corrected. Doubtful loans are those having all the weaknesses inherent to those classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans not meeting any of the criteria previously described are considered satisfactory. The FDIC-assisted acquired loans are also evaluated using this internal grading system and are accounted for in pools. Minimal adverse classification in these acquired loan pools was identified as of September 30, 2018 and December 31, 2017, respectively. See Note 7 for further discussion of the acquired loan pools and the termination of the loss sharing agreements. The Company evaluates the loan risk internal grading system definitions and allowance for loan loss methodology on an ongoing basis. The general component of the allowance for loan losses is affected by several factors, including, but not limited to, average historical losses, average life of the loans, the current composition of the loan portfolio, current and expected economic conditions, collateral values and internal risk ratings. Management considers all these factors in determining the adequacy of the Company’s allowance for loan losses. In early 2018, we expanded our loan risk rating system to allow for further segregation of satisfactory credits. No significant changes were made to the allowance for loan loss methodology during the past year. |
NOTE 7_ ACQUIRED LOANS, LOSS _2
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Business Combinations Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
TeamBank | |
Business Combinations Policy | On March 20, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits (excluding brokered deposits) and acquire certain assets of TeamBank, N.A., a full service commercial bank headquartered in Paola, Kansas. The loans, commitments and foreclosed assets purchased in the TeamBank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans. The five-year period ended March 31, 2014 and the ten-year period was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. |
Vantus Bank | |
Business Combinations Policy | On September 4, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Vantus Bank, a full service thrift headquartered in Sioux City, Iowa. The loans, commitments and foreclosed assets purchased in the Vantus Bank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans. The five year period ended September 30, 2014 and the ten-year period was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. |
Sun Security Bank | |
Business Combinations Policy | On October 7, 2011, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Sun Security Bank, a full service bank headquartered in Ellington, Missouri. The loans and foreclosed assets purchased in the Sun Security Bank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans but was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. |
InterBank | |
Business Combinations Policy | On April 27, 2012, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Inter Savings Bank, FSB (“InterBank”), a full service bank headquartered in Maple Grove, Minnesota. The loans and foreclosed assets purchased in the InterBank transaction were covered by a loss sharing agreement between the FDIC and Great Southern Bank. This agreement originally was to extend for ten years for 1-4 family real estate loans and for five years for other loans but was terminated early, effective June 9, 2017, by mutual agreement of Great Southern Bank and the FDIC. See “Loss Sharing Agreements” below. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded at the time of acquisition in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three months ended September 30, 2018 and 2017 was $38,000 and $64,000, respectively. The amount amortized to yield during the nine months ended September 30, 2018 and 2017 was $138,000 and $210,000, respectively. |
Valley Bank | |
Business Combinations Policy | On June 20, 2014, Great Southern Bank entered into a purchase and assumption agreement with the FDIC to purchase a substantial portion of the loans and investment securities, as well as certain other assets, and assume all of the deposits, as well as certain other liabilities, of Valley Bank, a full-service bank headquartered in Moline, Illinois, with significant operations in Iowa. This transaction did not include a loss sharing agreement. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three months ended September 30, 2018 and 2017 was $0 and $47,000, respectively. The amount amortized to yield during the nine months ended September 30, 2018 and 2017 was $11,000 and $189,000, respectively. |
NOTE 7_ ACQUIRED LOANS, LOSS _3
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Loss Sharing Agreement Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Loss Sharing Agreement Policy | Loss Sharing Agreements . On June 9, 2017, Great Southern Bank executed an agreement with the FDIC to terminate the loss sharing agreements for InterBank, effective immediately. Pursuant to the termination agreement, the FDIC paid $15.0 million to the Bank to settle all outstanding items related to the terminated loss sharing agreements. The Company recorded a pre-tax gain on the termination of $7.7 million. As a result of entering into the termination agreement, assets that were covered by the terminated loss sharing arrangements were reclassified as non-covered assets effective June 9, 2017. All rights and obligations of the Bank and the FDIC under the terminated loss sharing agreements, including the settlement of all existing loss sharing and expense reimbursement claims, have been resolved and terminated. The termination of the loss sharing agreements for the TeamBank, Vantus Bank, Sun Security Bank and InterBank transactions has no impact on the yields for the loans that were previously covered under these agreements. All post-termination recoveries, gains, losses and expenses related to these previously covered assets are recognized entirely by Great Southern Bank since the FDIC no longer shares in such gains or losses. Accordingly, the CompanyÂ’s earnings are positively impacted to the extent the Company recognizes gains on any sales or recoveries in excess of the carrying value of such assets. Similarly, the CompanyÂ’s future earnings will be negatively impacted to the extent the Company recognizes expenses, losses or charge-offs related to such assets. |
NOTE 7_ ACQUIRED LOANS, LOSS _4
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Business Acquisition Fair Value and Expected Cash Flows Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Business Acquisition Fair Value and Expected Cash Flows Policy | Fair Value and Expected Cash Flows The amount of the estimated cash flows expected to be received from the acquired loan pools in excess of the fair values recorded for the loan pools is referred to as the accretable yield. The accretable yield is recognized as interest income over the estimated lives of the loans. The Company continues to evaluate the fair value of the loans including cash flows expected to be collected. Increases in the CompanyÂ’s cash flow expectations are recognized as increases to the accretable yield while decreases are recognized as impairments through the allowance for loan losses. During the three and nine months ended September 30, 2018, improvements in expected cash flows related to the acquired loan portfolios resulted in adjustments of $1.5 million and $4.0 million, respectively, to the accretable yield to be spread over the estimated remaining lives of the loans on a level-yield basis. During the three and nine months ended September 30, 2017, similar such adjustments totaling $472,000 and $627,000, respectively, were made to the accretable yield. The increases in expected cash flows also reduced the amount of expected reimbursements under the loss sharing agreements, when applicable, until they were terminated or expired. Because these adjustments to accretable yield will be recognized generally over the remaining lives of the loan pools, they will impact future periods as well. As of September 30, 2018, the remaining accretable yield adjustment that will affect interest income is $2.9 million. Of the remaining adjustments affecting interest income, we expect to recognize $1.0 million of interest income during the remainder of 2018. Additional adjustments to accretable yield may be recorded in future periods from the FDIC-assisted transactions, as the Company continues to estimate expected cash flows from the acquired loan pools. |
NOTE 7_ ACQUIRED LOANS, LOSS _5
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: FDIC Indemnification Asset Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
TeamBank | |
FDIC Indemnification Asset Policy | TeamBank Loans and Foreclosed Assets. |
Vantus Bank | |
FDIC Indemnification Asset Policy | Vantus Bank Loans and Foreclosed Assets. |
Sun Security Bank | |
FDIC Indemnification Asset Policy | Sun Security Bank Loans and Foreclosed Assets. |
InterBank | |
FDIC Indemnification Asset Policy | InterBank Loans and Foreclosed Assets. |
Valley Bank | |
FDIC Indemnification Asset Policy | Valley Bank Loans and Foreclosed Assets. |
Note 13_ Income Taxes_ Income T
Note 13: Income Taxes: Income Tax, Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Income Tax, Policy | H.R. 1, originally known as the Tax Cuts and Jobs Act ("Tax Act"), was signed into law on December 22, 2017, making several changes to U. S. corporate income tax laws, including reducing the corporate Federal income tax rate from 35% to 21% effective January 1, 2018. U. S. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment and the Company recognized the income tax effects of the Tax Act in its 2017 financial statements. The Tax Act is complex and requires significant detailed analysis which could lead to identification of additional adjustments related to enactment of the Tax Act. The Company's 2017 income tax returns were completed in 2018. At this time no additional adjustments were identified. We do not currently expect future significant adjustments will be necessary, but any further adjustments identified will be recognized in accordance with guidance contained in Staff Accounting Bulletin No. 118 from the U. S. Securities and Exchange Commission. The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS) and, as such, tax years through December 31, 2005, have been closed without audit. The Company, through one of its subsidiaries, is a partner in two partnerships which have been under Internal Revenue Service examination for 2006 and 2007. As a result, the Company's 2006 and subsequent tax years remain open for examination. The examinations of these partnerships advanced during 2016 and 2017. One of the partnerships has advanced to Tax Court and has entered a Motion for Entry of Decision with an agreed upon settlement. The other partnership examination was recently completed by the IRS with no change impacting the Company's tax positions. The Company does not currently expect significant adjustments to its financial statements from the partnership matter at the Tax Court. The Company was previously under State of Missouri income and franchise tax examinations for its 2014 and 2015 tax years. The Company disagreed with the proposed results of these examinations. As a result, the Company has filed a protest with the state outlining its tax position and support under Missouri law. The Company does not currently expect significant adjustments to its financial statements from this examination. During 2017, the Company settled an appeal with the Kansas Department of Revenue. The settlement did not result in any significant adjustments to the Company's financial statements. |
Note 14_ Disclosures About Fa_2
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Measurement, Policy | ASC Topic 820, Fair Value Measurements · · · Financial instruments are broken down as follows by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, due to an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period. The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods. From December 31, 2017 to September 30, 2018, no assets for which fair value is measured on a recurring basis transferred between any levels of the hierarchy. Recurring Measurements The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2018 and December 31, 2017: Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2018 Mortgage-backed securities $ 121,525 $ — $ 121,525 $ — Collateralized mortgage obligations 17,384 — 17,384 — States and political subdivisions 52,342 — 52,342 — Interest rate derivative asset 1,453 — 1,453 — Interest rate derivative liability (1,448) — (1,448) — December 31, 2017 Mortgage-backed securities $ 122,533 $ — $ 122,533 $ — States and political subdivisions 56,646 — 56,646 — Interest rate derivative asset 981 — 981 — Interest rate derivative liability (1,030) — (1,030) — The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at September 30, 2018 and December 31, 2017, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the nine-month period ended September 30, 2018. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available-for-Sale Securities. Interest Rate Derivatives. Nonrecurring Measurements The following tables present the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and December 31, 2017: Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2018 Impaired loans $ 2,996 $ — $ — $ 2,996 Foreclosed assets held for sale $ 3,014 $ — $ — $ 3,014 December 31, 2017 Impaired loans $ 1,590 $ — $ — $ 1,590 Foreclosed assets held for sale $ 1,758 $ — $ — $ 1,758 |
Note 14_ Disclosures About Fa_3
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Loans Held for Sale Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Loans Held for Sale Policy | Loans Held for Sale. |
Note 14_ Disclosures About Fa_4
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Impaired Loans Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Impaired Loans Policy | Impaired Loans. Receivables The Company records impaired loans as Nonrecurring Level 3. If a loanÂ’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the allowance for loan losses specific to the loan. Loans for which such charge-offs or reserves were recorded during the nine months ended September 30, 2018 or the year ended December 31, 2017, are shown in the table above (net of reserves). |
Note 14_ Disclosures About Fa_5
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Foreclosed Assets Held for Sale Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Foreclosed Assets Held for Sale Policy | Foreclosed Assets Held for Sale. |
Note 14_ Disclosures About Fa_6
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Financial Instruments Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Financial Instruments Policy | Fair Value of Financial Instruments The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying statements of financial condition at amounts other than fair value. |
Note 14_ Disclosures About Fa_7
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Cash and Cash Equivalents and Federal home Loan Bank Stock Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Cash and Cash Equivalents and Federal home Loan Bank Stock Policy | Cash and Cash Equivalents and Federal Home Loan Bank Stock. |
Note 14_ Disclosures About Fa_8
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Loans and Interest Receivable Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Loans and Interest Receivable Policy | Loans and Interest Receivable. |
Note 14_ Disclosures About Fa_9
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Deposits and Accrued Interest Payable Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Deposits and Accrued Interest Payable Policy | Deposits and Accrued Interest Payable. |
Note 14_ Disclosures About F_10
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Federal Home Loan Bank Advance Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Federal Home Loan Bank Advance Policy | Federal Home Loan Bank Advances. |
Note 14_ Disclosures About F_11
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Short Term Borrowings Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Short Term Borrowings Policy | Short-Term Borrowings. |
Note 14_ Disclosures About F_12
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Subordinated Debentures Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Subordinated Debentures Policy | Subordinated Debentures Issued to Capital Trusts. |
Note 14_ Disclosures About F_13
Note 14: Disclosures About Fair Value of Financial Instruments: Subordinated Notes Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Subordinated Notes Policy | Subordinated Notes. |
Note 14_ Disclosures About F_14
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Commitments to Originate Loans, Letters of Credit and Lines of Credit Policy (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value Commitments to Originate Loans, Letters of Credit and Lines of Credit Policy | Commitments to Originate Loans, Letters of Credit and Lines of Credit. |
NOTE 16_ SALE OF BRANCHES AND_2
NOTE 16: SALE OF BRANCHES AND RELATED DEPOSITS: Sale of Banking Centers (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Policies | |
Sale of Banking Centers | On July 20, 2018, the Company closed on the sale of four banking centers and related deposits in the Omaha, Neb., metropolitan market to Lincoln, Neb.-based West Gate Bank. Pursuant to the purchase and assumption agreement, the Bank sold branch deposits of approximately $56 million and sold substantially all branch-related real estate, fixed assets and ATMs. The Company recorded a pre-tax gain (excluding transaction expenses of $165,000) of $7.4 million on the sale based on the contractual deposit premium and the sales price of the branch assets. |
NOTE 4_ EARNINGS PER SHARE_ Sch
NOTE 4: EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended September 30, 2018 2017 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 14,146 14,038 Net income $ 22,516 $ 11,663 Per share amount $ 1.59 $ 0.83 Diluted: Average shares outstanding 14,146 14,038 Net effect of dilutive stock options – based on the treasury stock method using average market price 153 186 Diluted shares 14,299 14,224 Net income $ 22,516 $ 11,663 Per share amount $ 1.57 $ 0.82 Nine Months Ended September 30, 2018 2017 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 14,124 14,007 Net income $ 49,821 $ 39,358 Per share amount $ 3.53 $ 2.81 Diluted: Average shares outstanding 14,124 14,007 Net effect of dilutive stock options – based on the treasury stock method using average market price 136 186 Diluted shares 14,260 14,193 Net income $ 49,821 $ 39,358 Per share amount $ 3.49 $ 2.77 |
NOTE 5_ INVESTMENT SECURITIES_2
NOTE 5: INVESTMENT SECURITIES: Investment Securities (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Investment Securities | September 30, 2018 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Mortgage-backed securities $ 124,777 $ 639 $ 3,891 $ 121,525 2.44% Collateralized mortgage obligations 17,481 — 97 17,384 3.03 States and political subdivisions 51,047 1,314 19 52,342 4.81 $ 193,305 $ 1,953 $ 4,007 $ 191,251 3.12% December 31, 2017 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Mortgage-backed securities $ 123,300 $ 871 $ 1,638 $ 122,533 2.19% States and political subdivisions 53,930 2,716 — 56,646 4.72 $ 177,230 $ 3,587 $ 1,638 $ 179,179 2.96% HELD-TO-MATURITY SECURITIES: States and political subdivisions $ 130 $ 1 $ — $ 131 6.14% |
NOTE 5_ INVESTMENT SECURITIES_3
NOTE 5: INVESTMENT SECURITIES: Investments Classified by Contractual Maturity Date (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of available-for-sale securities at September 30, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In Thousands) One year or less $ — $ — After one through five years 841 905 After five through ten years 9,556 9,687 After ten years 40,650 41,750 Securities not due on a single maturity date 142,258 138,909 $ 193,305 $ 191,251 |
NOTE 5_ INVESTMENT SECURITIES_4
NOTE 5: INVESTMENT SECURITIES: Unrealized Gain (Loss) on Investments (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Unrealized Gain (Loss) on Investments | The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2018 and December 31, 2017: September 30, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) Mortgage-backed securities $ 24,226 $ (557) $ 72,518 $ (3,334) $ 96,744 $ (3,891) Collateralized mortgage obligations 17,384 (97) — — 17,384 (97) State and political subdivisions 3,341 (19) — — 3,341 (19) $ 44,951 $ (673) $ 72,518 $ (3,334) $ 117,469 $ (4,007) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) Mortgage-backed securities $ 33,862 $ (384) $ 55,845 $ (1,254) $ 89,707 $ (1,638) State and political subdivisions — — — — — — $ 33,862 $ (384) $ 55,845 $ (1,254) $ 89,707 $ (1,638) |
NOTE 6_ LOANS AND ALLOWANCE F_3
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Accounts, Notes, Loans and Financing Receivable | September 30, December 31, 2018 2017 (In Thousands) One- to four-family residential construction $ 25,477 $ 20,793 Subdivision construction 16,054 18,062 Land development 44,502 43,971 Commercial construction 1,283,468 1,068,352 Owner occupied one- to four-family residential 255,994 190,515 Non-owner occupied one- to four-family residential 109,282 119,468 Commercial real estate 1,383,871 1,235,329 Other residential 791,786 745,645 Commercial business 332,037 353,351 Industrial revenue bonds 14,179 21,859 Consumer auto 277,884 357,142 Consumer other 57,921 63,368 Home equity lines of credit 117,061 115,439 Loans acquired and accounted for under ASC 310-30, net of discounts 177,150 209,669 4,886,666 4,562,963 Undisbursed portion of loans in process (899,620) (793,669) Allowance for loan losses (37,497) (36,492) Deferred loan fees and gains, net (6,783) (6,500) $ 3,942,766 $ 3,726,302 Weighted average interest rate 5.03% 4.74% |
NOTE 6_ LOANS AND ALLOWANCE F_4
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Schedule of Loans Classified by Aging Analysis (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Loans Classified by Aging Analysis | September 30, 2018 Total Loans Total > 90 Days 30-59 Days 60-89 Days Over Total Loans Past Due and Past Due Past Due 90 Days Past Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ — $ 294 $ — $ 294 $ 25,183 $ 25,477 $ — Subdivision construction 12 — — 12 16,042 16,054 — Land development — 32 — 32 44,470 44,502 — Commercial construction — — — — 1,283,468 1,283,468 — Owner occupied one- to four-family residential 138 62 1,270 1,470 254,524 255,994 — Non-owner occupied one- o to four-family residential — — 1,481 1,481 107,801 109,282 — Commercial real estate 327 38 346 711 1,383,160 1,383,871 — Other residential — — — — 791,786 791,786 — Commercial business 129 — 1,590 1,719 330,318 332,037 — Industrial revenue bonds — — — — 14,179 14,179 — Consumer auto 2,705 858 1,367 4,930 272,954 277,884 — Consumer other 473 220 326 1,019 56,902 57,921 — Home equity lines of credit 353 — 95 448 116,613 117,061 — Loans acquired and accounted for under ASC 310-30, net of discounts 1,780 1,442 2,385 5,607 171,543 177,150 — 5,917 2,946 8,860 17,723 4,868,943 4,886,666 — Less loans acquired and accounted for under ASC 310-30, net 1,780 1,442 2,385 5,607 171,543 177,150 — Total $ 4,137 $ 1,504 $ 6,475 $ 12,116 $ 4,697,400 $ 4,709,516 $ — December 31, 2017 Total Loans Total > 90 Days Past 30-59 Days 60-89 Days Over 90 Total Past Loans Due and Past Due Past Due Days Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ 250 $ — $ — $ 250 $ 20,543 $ 20,793 $ — Subdivision construction — — 98 98 17,964 18,062 — Land development 54 37 — 91 43,880 43,971 — Commercial construction — — — — 1,068,352 1,068,352 — Owner occupied one- to four-family residential 1,927 71 904 2,902 187,613 190,515 — Non-owner occupied one- to four-family residential 947 190 1,816 2,953 116,515 119,468 58 Commercial real estate 8,346 993 1,226 10,565 1,224,764 1,235,329 — Other residential 540 353 1,877 2,770 742,875 745,645 — Commercial business 2,623 1,282 2,063 5,968 347,383 353,351 — Industrial revenue bonds — — — — 21,859 21,859 — Consumer auto 5,196 1,230 2,284 8,710 348,432 357,142 12 Consumer other 464 64 557 1,085 62,283 63,368 — Home equity lines of credit 58 — 430 488 114,951 115,439 26 Loans acquired and accounted for under ASC 310-30, net of discounts 4,449 1,951 10,675 17,075 192,594 209,669 272 24,854 6,171 21,930 52,955 4,510,008 4,562,963 368 Less loans acquired and accounted for under ASC 310-30, net 4,449 1,951 10,675 17,075 192,594 209,669 272 Total $ 20,405 $ 4,220 $ 11,255 $ 35,880 $ 4,317,414 $ 4,353,294 $ 96 |
NOTE 6_ LOANS AND ALLOWANCE F_5
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Schedule of Financing Receivables, Non Accrual Status (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Financing Receivables, Non Accrual Status | Nonaccruing loans (excluding FDIC-assisted acquired loans, net of discount) are summarized as follows: September 30, December 31, 2018 2017 (In Thousands) One- to four-family residential construction $ — $ — Subdivision construction — 98 Land development — — Commercial construction — — Owner occupied one- to four-family residential 1,270 904 Non-owner occupied one- to four-family residential 1,481 1,758 Commercial real estate 346 1,226 Other residential — 1,877 Commercial business 1,590 2,063 Industrial revenue bonds — — Consumer auto 1,367 2,272 Consumer other 326 557 Home equity lines of credit 95 404 Total $ 6,475 $ 11,159 |
NOTE 6_ LOANS AND ALLOWANCE F_6
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Allowance for Credit Losses on Financing Receivables (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2018. Also presented are the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of September 30, 2018: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance July 1, 2018 $ 2,727 $ 3,845 $ 19,474 $ 2,395 $ 2,991 $ 6,124 $ 37,556 Provision (benefit) charged to expense 7 341 708 538 (1,019) 725 1,300 Losses charged off (18) (194) — (4) (274) (2,128) (2,618) Recoveries 79 41 1 97 80 961 1,259 Balance September 30, 2018 $ 2,795 $ 4,033 $ 20,183 $ 3,026 $ 1,778 $ 5,682 $ 37,497 Balance January 1, 2018 $ 2,108 $ 2,839 $ 18,639 $ 1,767 $ 3,581 $ 7,558 $ 36,492 Provision (benefit) charged to expense 494 1,310 1,519 1,009 (991) 1,859 5,200 Losses charged off (59) (525) (102) (87) (1,155) (7,062) (8,990) Recoveries 252 409 127 337 343 3,327 4,795 Balance September 30, 2018 $ 2,795 $ 4,033 $ 20,183 $ 3,026 $ 1,778 $ 5,682 $ 37,497 Ending balance: Individually evaluated for impairment $ 771 $ — $ 635 $ — $ 324 $ 433 $ 2,163 Collectively evaluated for impairment $ 1,987 $ 4,006 $ 19,288 $ 2,953 $ 1,438 $ 5,221 $ 34,893 Loans acquired and accounted for under ASC 310-30 $ 37 $ 27 $ 260 $ 73 $ 16 $ 28 $ 441 Loans Individually evaluated for impairment $ 6,302 $ — $ 3,556 $ 14 $ 2,008 $ 2,524 $ 14,404 Collectively evaluated for impairment $ 400,505 $ 791,786 $ 1,380,315 $ 1,327,956 $ 344,208 $ 450,342 $ 4,695,112 Loans acquired and accounted for under ASC 310-30 $ 98,702 $ 12,927 $ 35,980 $ 4,240 $ 4,613 $ 20,688 $ 177,150 The following table presents the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2017: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance July 1, 2017 $ 2,413 $ 3,655 $ 15,442 $ 1,711 $ 4,365 $ 8,947 $ 36,533 Provision (benefit) charged to expense 285 190 643 298 562 972 2,950 Losses charged off (74) (10) (357) — (1,090) (3,151) (4,682) Recoveries 46 89 74 129 66 1,038 1,442 Balance September 30, 2017 $ 2,670 $ 3,924 $ 15,802 $ 2,138 $ 3,903 $ 7,806 $ 36,243 Balance January 1, 2017 $ 2,322 $ 5,486 $ 15,938 $ 2,284 $ 3,015 $ 8,355 $ 37,400 Provision (benefit) charged to expense 407 (1,708) 1,413 74 1,786 5,178 7,150 Losses charged off (150) (12) (1,649) (386) (1,365) (9,120) (12,682) Recoveries 91 158 100 166 467 3,393 4,375 Balance September 30, 2017 $ 2,670 $ 3,924 $ 15,802 $ 2,138 $ 3,903 $ 7,806 $ 36,243 The following table presents the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2017: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Individually evaluated for impairment $ 513 $ — $ 599 $ — $ 2,140 $ 699 $ 3,951 Collectively evaluated for impairment $ 1,564 $ 2,813 $ 17,843 $ 1,690 $ 1,369 $ 6,802 $ 32,081 Loans acquired and accounted for under ASC 310-30 $ 31 $ 26 $ 197 $ 77 $ 72 $ 57 $ 460 Loans Individually evaluated for impairment $ 6,950 $ 2,907 $ 8,315 $ 15 $ 3,018 $ 4,129 $ 25,334 Collectively evaluated for impairment $ 341,888 $ 742,738 $ 1,227,014 $ 1,112,308 $ 372,192 $ 531,820 $ 4,327,960 Loans acquired and accounted for under ASC 310-30 $ 120,295 $ 14,877 $ 39,210 $ 3,806 $ 5,275 $ 26,206 $ 209,669 |
NOTE 6_ LOANS AND ALLOWANCE F_7
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Impaired Financing Receivables (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Impaired Financing Receivables | Impaired loans (excluding FDIC-assisted loans, net of discount), are summarized as follows: September 30, 2018 Unpaid Recorded Principal Specific Balance Balance Allowance One- to four-family residential construction $ — $ — $ — Subdivision construction 241 241 107 Land development 14 18 — Commercial construction — — — Owner occupied one- to four- family residential 3,663 3,995 343 Non-owner occupied one- to four- family residential 2,398 2,677 321 Commercial real estate 3,556 3,714 635 Other residential — — — Commercial business 2,008 2,383 324 Industrial revenue bonds — — — Consumer auto 1,843 2,046 331 Consumer other 566 751 85 Home equity lines of credit 115 133 17 Total $ 14,404 $ 15,958 $ 2,163 Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $ — $ — $ — $ — Subdivision construction 299 3 336 11 Land development 15 1 15 1 Commercial construction — — — — Owner occupied one- to four-family residential 3,401 53 3,322 142 Non-owner occupied one- to four-family residential 2,583 38 3,082 130 Commercial real estate 6,689 55 7,115 278 Other residential 675 — 1,368 20 Commercial business 2,581 40 3,277 329 Industrial revenue bonds — — — — Consumer auto 1,865 37 2,120 118 Consumer other 671 11 806 48 Home equity lines of credit 405 — 500 28 Total $ 19,184 $ 238 $ 21,941 $ 1,105 At or for the Year Ended December 31, 2017 Average Unpaid Investment Interest Recorded Principal Specific in Impaired Income Balance Balance Allowance Loans Recognized (In Thousands) One- to four-family residential construction $ — $ — $ — $ 193 $ — Subdivision construction 349 367 114 584 22 Land development 15 18 — 1,793 24 Commercial construction — — — — — Owner occupied one- to four- family residential 3,405 3,723 331 3,405 166 Non-owner occupied one- to four- family residential 3,196 3,465 68 2,419 165 Commercial real estate 8,315 8,490 599 9,075 567 Other residential 2,907 2,907 — 3,553 147 Commercial business 3,018 4,222 2,140 5,384 173 Industrial revenue bonds — — — — — Consumer auto 2,713 2,898 484 2,383 222 Consumer other 825 917 124 906 69 Home equity lines of credit 591 648 91 498 33 Total $ 25,334 $ 27,655 $ 3,951 $ 30,193 $ 1,588 September 30, 2017 Unpaid Recorded Principal Specific Balance Balance Allowance (In Thousands) One- to four-family residential construction $ — $ — $ — Subdivision construction 434 450 116 Land development 315 319 — Commercial construction — — — Owner occupied one- to four-family residential 3,441 3,740 351 Non-owner occupied one- to four-family residential 3,293 3,560 104 Commercial real estate 9,358 9,581 599 Other residential 3,390 3,390 — Commercial business 3,141 4,311 2,396 Industrial revenue bonds — — — Consumer auto 2,740 2,936 491 Consumer other 1,042 1,148 156 Home equity lines of credit 647 725 100 Total $ 27,801 $ 30,160 $ 4,313 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $ — $ — $ 258 $ — Subdivision construction 444 9 652 21 Land development 424 12 2,319 33 Commercial construction — — — — Owner occupied one- to four-family residential 3,440 44 3,384 124 Non-owner occupied one- to four-family residential 2,550 80 2,183 128 Commercial real estate 6,819 266 9,068 425 Other residential 3,457 27 3,660 102 Commercial business 5,580 35 6,148 161 Industrial revenue bonds — — — — Consumer auto 2,548 79 2,323 156 Consumer other 1,005 26 886 65 Home equity lines of credit 633 14 456 32 Total $ 26,900 $ 592 $ 31,337 $ 1,247 |
NOTE 6_ LOANS AND ALLOWANCE F_8
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Troubled Debt Restructurings on Financing Receivables (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Troubled Debt Restructurings on Financing Receivables | The following tables present newly restructured loans during the three and nine months ended September 30, 2018 and 2017, respectively, by type of modification: Three Months Ended September 30, 2018 Total Interest Only Term Combination Modification (In Thousands) Consumer $ — $ 67 $ — $ 67 Three Months Ended September 30, 2017 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: Commercial $ — $ — $ 5,759 $ 5,759 Consumer — 194 — 194 $ — $ 194 $ 5,759 $ 5,953 Nine Months Ended September 30, 2018 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: One- to four-family residential $ 1,348 $ — $ — $ 1,348 Consumer — 506 — 506 $ 1,348 $ 506 $ — $ 1,854 Nine Months Ended September 30, 2017 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: Commercial $ — $ — $ 5,759 $ 5,759 Commercial business — — 274 274 Consumer — 199 — 199 $ — $ 199 $ 6,033 $ 6,232 |
NOTE 6_ LOANS AND ALLOWANCE F_9
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Financing Receivable Credit Quality Indicators (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Financing Receivable Credit Quality Indicators | The loan grading system is presented by loan class below: September 30, 2018 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $ 25,056 $ 421 $ — $ — $ — $ 25,477 Subdivision construction 14,087 1,967 — — — 16,054 Land development 39,902 4,600 — — — 44,502 Commercial construction 1,283,468 — — — — 1,283,468 Owner occupied one- to four- family residential 253,695 62 — 2,237 — 255,994 Non-owner occupied one- to four- family residential 106,619 1,092 — 1,571 — 109,282 Commercial real estate 1,370,246 11,330 — 2,295 — 1,383,871 Other residential 791,285 501 — — — 791,786 Commercial business 325,260 5,187 — 1,590 — 332,037 Industrial revenue bonds 14,179 — — — — 14,179 Consumer auto 276,220 155 — 1,509 — 277,884 Consumer other 57,337 162 — 422 — 57,921 Home equity lines of credit 116,804 152 — 105 — 117,061 Loans acquired and accounted for under ASC 310-30, net of discounts 177,130 — — 20 — 177,150 Total $ 4,851,288 $ 25,629 $ — $ 9,749 $ — $ 4,886,666 December 31, 2017 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $ 20,275 $ 518 $ — $ — $ — $ 20,793 Subdivision construction 15,602 2,362 — 98 — 18,062 Land development 39,171 4,800 — — — 43,971 Commercial construction 1,068,352 — — — — 1,068,352 Owner occupied one- to-four- family residential 188,706 — — 1,809 — 190,515 Non-owner occupied one- to- four-family residential 117,103 389 — 1,976 — 119,468 Commercial real estate 1,218,431 9,909 — 6,989 — 1,235,329 Other residential 742,237 1,532 — 1,876 — 745,645 Commercial business 344,479 6,306 — 2,066 500 353,351 Industrial revenue bonds 21,859 — — — — 21,859 Consumer auto 354,588 — — 2,554 — 357,142 Consumer other 62,682 — — 686 — 63,368 Home equity lines of credit 114,860 — — 579 — 115,439 Loans acquired and accounted for under ASC 310-30, net of discounts 209,657 — — 12 — 209,669 Total $ 4,518,002 $ 25,816 $ — $ 18,645 $ 500 $ 4,562,963 |
NOTE 7_ ACQUIRED LOANS, LOSS _6
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Schedule of Impact of Adjustments of Acquired Loans on Financial Results (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Impact of Adjustments of Acquired Loans on Financial Results | The impact of adjustments on the Company’s financial results is shown below: Three Months Ended Three Months Ended September 30, 2018 September 30, 2017 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $ 1,424 14 bps $ 975 9 bps Non-interest income — — Net impact to pre-tax income $ 1,424 $ 975 Net impact net of taxes $ 1,106 $ 621 Impact to diluted earnings per share $ 0.08 $ 0.04 Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $ 3,652 12 bps $ 4,237 14 bps Non-interest income — (634) Net impact to pre-tax income $ 3,652 $ 3,603 Net impact net of taxes $ 2,836 $ 2,295 Impact to diluted earnings per share $ 0.20 $ 0.16 |
NOTE 7_ ACQUIRED LOANS, LOSS _7
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: FDIC Indemnification Asset Roll Forward (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
TeamBank | |
FDIC Indemnification Asset Roll Forward | September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 11,658 $ 15 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (445) — Original estimated fair value of assets, net of activity since acquisition date (11,094) (15) Expected loss remaining $ 119 $ — December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 13,668 $ 35 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (589) — Original estimated fair value of assets, net of activity since acquisition date (12,948) (35) Expected loss remaining $ 131 $ — |
Vantus Bank | |
FDIC Indemnification Asset Roll Forward | September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 15,698 $ — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (74) — Original estimated fair value of assets, net of activity since acquisition date (15,395) — Expected loss remaining $ 229 $ — December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 18,965 $ 15 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (131) — Original estimated fair value of assets, net of activity since acquisition date (18,605) (15) Expected loss remaining $ 229 $ — |
Sun Security Bank | |
FDIC Indemnification Asset Roll Forward | September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 22,219 $ 305 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (371) — Original estimated fair value of assets, net of activity since acquisition date (21,099) (214) Expected loss remaining $ 749 $ 91 December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 26,787 $ 306 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (494) — Original estimated fair value of assets, net of activity since acquisition date (25,348) (299) Expected loss remaining $ 945 $ 7 |
InterBank | |
FDIC Indemnification Asset Roll Forward | September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 90,512 $ 146 Non-credit premium/(discount), net of activity since acquisition date 136 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,785) — Original estimated fair value of assets, net of activity since acquisition date (78,642) (130) Expected loss remaining $ 10,221 $ 16 December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $ 112,399 $ 2,012 Non-credit premium/(discount), net of activity since acquisition date 274 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (972) — Original estimated fair value of assets, net of activity since acquisition date (98,321) (1,785) Expected loss remaining $ 13,380 $ 227 |
Valley Bank | |
FDIC Indemnification Asset Roll Forward | September 30, 2018 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $ 55,350 $ 1,488 Non-credit premium/(discount), net of activity since acquisition date — — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (229) — Original estimated fair value of assets, net of activity since acquisition date (50,915) (1,488) Expected loss remaining $ 4,206 $ — December 31, 2017 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $ 59,997 $ 1,673 Non-credit premium/(discount), net of activity since acquisition date 11 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (411) — Original estimated fair value of assets, net of activity since acquisition date (54,442) (1,667) Expected loss remaining $ 5,155 $ 6 |
NOTE 7_ ACQUIRED LOANS, LOSS _8
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Schedule of Accretable Yield Changes for Acquired Loans (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Accretable Yield Changes for Acquired Loans | Changes in the accretable yield for acquired loan pools were as follows for the three and nine months ended September 30, 2018 and 2017: Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) Balance, July 1, 2017 $ 2,303 $ 2,180 $ 3,686 $ 5,414 $ 3,313 Accretion (352) (310) (561) (1,688) (1,378) Change in expected accretable yield (1) 287 211 (270) 625 889 Balance, September 30, 2017 $ 2,238 $ 2,081 $ 2,855 $ 4,351 $ 2,824 Balance, July 1, 2018 $ 1,742 $ 1,652 $ 2,055 $ 5,910 $ 2,974 Accretion (294) (279) (399) (2,293) (901) Change in expected accretable yield (1) 103 234 500 2,054 578 Balance, September 30, 2018 $ 1,551 $ 1,607 $ 2,156 $ 5,671 $ 2,651 (1) Represents increases in estimated cash flows expected to be received from the acquired loan pools, partially due to lower estimated credit losses. The amounts also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the three months ended September 30, 2018, totaling $103,000, $234,000, $485,000, $604,000 and $578,000, respectively, and for the three months ended September 30, 2017, totaling $268,000, $204,000, $(270,000), $625,000 and $444,000, respectively. Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) Balance, January 1, 2017 $ 2,477 $ 2,547 $ 4,277 $ 8,512 $ 4,797 Accretion (1,319) (1,048) (1,757) (5,850) (4,772) Change in expected accretable yield (1) 1,080 582 335 1,689 2,799 Balance, September 30, 2017 $ 2,238 $ 2,081 $ 2,855 $ 4,351 $ 2,824 Balance, January 1, 2018 $ 2,071 $ 1,850 $ 2,901 $ 5,074 $ 2,695 Accretion (736) (897) (1,253) (5,943) (3,098) Change in expected accretable yield (1) 216 654 508 6,540 3,054 Balance, September 30, 2018 $ 1,551 $ 1,607 $ 2,156 $ 5,671 $ 2,651 (1) Represents increases in estimated cash flows expected to be received from the acquired loan pools, partially due to lower estimated credit losses. The amounts also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the nine months ended September 30, 2018, totaling $201,000, $654,000, $318,000, $3.6 million and $2.3 million, respectively, and for the nine months ended September 30, 2017, totaling $1.1 million, $569,000, $335,000, $1.7 million and $2.2 million, respectively. |
Note 8_ Other Real Estate Own_2
Note 8: Other Real Estate Owned: Schedule of Major Classifications of Foreclosed Assets (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Major Classifications of Foreclosed Assets | Major classifications of other real estate owned were as follows: September 30, December 31, 2018 2017 (In Thousands) Foreclosed assets held for sale and repossessions One- to four-family construction $ — $ — Subdivision construction 2,264 5,413 Land development 4,495 7,229 Commercial construction — — One- to four-family residential 657 112 Other residential — 140 Commercial real estate 1,002 1,694 Commercial business — — Consumer 1,020 1,987 9,438 16,575 Foreclosed assets acquired through FDIC-assisted transactions, net of discounts 1,847 3,799 Foreclosed assets held for sale and repossessions, net 11,285 20,374 Other real estate owned not acquired through foreclosure 1,559 1,628 Other real estate owned and repossessions $ 12,844 $ 22,002 |
Note 8_ Other Real Estate Own_3
Note 8: Other Real Estate Owned: Schedule of Expenses Applicable to Foreclosed Assets (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Expenses Applicable to Foreclosed Assets | Expenses applicable to other real estate owned included the following: Three Months Ended September 30, 2018 2017 (In Thousands) Net gain on sales of other real estate and repossessions $ (549) $ (311) Valuation write-downs 178 462 Operating expenses, net of rental income 869 1,192 $ 498 $ 1,343 Nine Months Ended September 30, 2018 2017 (In Thousands) Net gain on sales of other real estate and repossessions $ (1,998) $ (1,098) Valuation write-downs 3,551 522 Operating expenses, net of rental income 2,823 3,171 $ 4,376 $ 2,595 |
Note 9_ Deposits_ Schedule of D
Note 9: Deposits: Schedule of Deposit Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Deposit Liabilities | September 30, December 31, 2018 2017 (In Thousands) Time Deposits: 0.00% - 0.99% $ 163,501 $ 254,502 1.00% - 1.99% 611,935 1,006,373 2.00% - 2.99% 647,247 106,888 3.00% - 3.99% 8,563 701 4.00% - 4.99% 1,129 1,108 5.00% and above 273 272 Total time deposits (1.77% - 1.24%) 1,432,648 1,369,844 Non-interest-bearing demand deposits 659,864 661,589 Interest-bearing demand and savings deposits (0.43% - 0.32%) 1,503,153 1,565,711 Total Deposits $ 3,595,665 $ 3,597,144 |
Note 10_ Advances From Federa_2
Note 10: Advances From Federal Home Loan Bank: Federal Home Loan Bank, Advances (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Federal Home Loan Bank, Advances | Advances from the Federal Home Loan Bank of Des Moines (FHLBank advances) at September 30, 2018 and December 31, 2017 consisted of the following: September 30, 2018 December 31, 2017 Weighted Weighted Average Average Interest Interest Due In Amount Rate Amount Rate (In Thousands) (In Thousands) 2018 $ 240,000 2.18% $ 127,500 1.53% |
Note 11_ Securities Sold Unde_2
Note 11: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings: Schedule of Short-term Debt (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Short-term Debt | September 30, 2018 December 31, 2017 (In Thousands) Notes payable – Community Development Equity Funds $ 1,360 $ 1,604 Overnight borrowings from the Federal Home Loan Bank — 15,000 Securities sold under reverse repurchase agreements 112,184 80,531 $ 113,544 $ 97,135 |
Note 11_ Securities Sold Unde_3
Note 11: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings: Schedule of Repurchase Agreements (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Repurchase Agreements | September 30, 2018 December 31, 2017 Overnight and Overnight and Continuous Continuous (In Thousands) Mortgage-backed securities – GNMA, FNMA, FHLMC $ 112,184 $ 80,531 |
Note 12_ Subordinated Notes_ Sc
Note 12: Subordinated Notes: Schedule of Subordinated Borrowing (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Subordinated Borrowing | At September 30, 2018 and December 31, 2017, subordinated notes are summarized as follows: September 30, 2018 December 31, 2017 (In Thousands) Subordinated notes $ 75,000 $ 75,000 Less: unamortized debt issuance costs 1,196 1,312 $ 73,804 $ 73,688 |
Note 13_ Income Taxes_ Schedule
Note 13: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of the Company’s effective tax rates to the statutory corporate tax rates were as follows: Three Months Ended September 30, 2018 2017 Tax at statutory rate 21.0% 35.0% Nontaxable interest and dividends (0.5) (1.6) Tax credits (2.2) (7.8) State taxes 1.2 1.1 Other — 0.2 19.5% 26.9% Nine Months Ended September 30, 2018 2017 Tax at statutory rate 21.0% 35.0% Nontaxable interest and dividends (0.7) (1.5) Tax credits (3.2) (5.9) State taxes 1.2 1.3 Other (0.1) (0.6) 18.2% 28.3% |
Note 14_ Disclosures About F_15
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets Measured on Recurring Basis (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2018 Mortgage-backed securities $ 121,525 $ — $ 121,525 $ — Collateralized mortgage obligations 17,384 — 17,384 — States and political subdivisions 52,342 — 52,342 — Interest rate derivative asset 1,453 — 1,453 — Interest rate derivative liability (1,448) — (1,448) — December 31, 2017 Mortgage-backed securities $ 122,533 $ — $ 122,533 $ — States and political subdivisions 56,646 — 56,646 — Interest rate derivative asset 981 — 981 — Interest rate derivative liability (1,030) — (1,030) — |
Note 14_ Disclosures About F_16
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets and Liabilities Measured on Nonrecurring Basis (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following tables present the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and December 31, 2017: Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2018 Impaired loans $ 2,996 $ — $ — $ 2,996 Foreclosed assets held for sale $ 3,014 $ — $ — $ 3,014 December 31, 2017 Impaired loans $ 1,590 $ — $ — $ 1,590 Foreclosed assets held for sale $ 1,758 $ — $ — $ 1,758 |
Note 14_ Disclosures About F_17
Note 14: Disclosures About Fair Value of Financial Instruments: Schedule Of Financial Instruments Fair Value (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule Of Financial Instruments Fair Value | September 30, 2018 December 31, 2017 Carrying Fair Hierarchy Carrying Fair Hierarchy Amount Value Level Amount Value Level (In Thousands) Financial assets Cash and cash equivalents $ 208,821 $ 208,821 1 $ 242,253 $ 242,253 1 Held-to-maturity securities — — 2 130 131 2 Mortgage loans held for sale 3,474 3,474 2 8,203 8,203 2 Loans, net of allowance for loan losses 3,942,766 3,905,137 3 3,726,302 3,735,216 3 Accrued interest receivable 13,008 13,008 3 12,338 12,338 3 Investment in FHLBank stock 14,918 14,918 3 11,182 11,182 3 Financial liabilities Deposits 3,595,665 3,585,641 3 3,597,144 3,606,400 3 FHLBank advances 240,000 240,000 3 127,500 127,500 3 Short-term borrowings 113,544 113,544 3 97,135 97,135 3 Subordinated debentures 25,774 25,774 3 25,774 25,774 3 Subordinated notes 73,804 75,469 2 73,688 76,500 2 Accrued interest payable 3,013 3,013 3 2,904 2,904 3 Unrecognized financial instruments (net of contractual value) Commitments to originate loans — — 3 — — 3 Letters of credit 155 155 3 85 85 3 Lines of credit — — 3 — — 3 |
Note 15_ Derivatives and Hedg_2
Note 15: Derivatives and Hedging Activities: Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of the CompanyÂ’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition: Location in Fair Value Consolidated Statements September 30, December 31, of Financial Condition 2018 2017 (In Thousands) Derivatives not designated as hedging instruments Asset Derivatives Interest rate products Prepaid expenses and other assets $ 1,453 $ 981 Total derivatives not designated as hedging instruments $ 1,453 $ 981 Liability Derivatives Interest rate products Accrued expenses and other liabilities $ 1,448 $ 1,030 Total derivatives not designated as hedging instruments $ 1,448 $ 1,030 |
Note 15_ Derivatives and Hedg_3
Note 15: Derivatives and Hedging Activities: Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the effect of derivative instruments on the statements of comprehensive income for the three and nine months ended September 30, 2018 and 2017: Amount of Gain (Loss) Recognized in AOCI Three Months Ended September 30, Cash Flow Hedges 2018 2017 (In Thousands) Interest rate cap, net of income taxes $ — $ 64 Amount of Gain (Loss) Recognized in AOCI Nine Months Ended September 30, Cash Flow Hedges 2018 2017 (In Thousands) Interest rate cap, net of income taxes $ — $ 161 |
NOTE 4_ EARNINGS PER SHARE_ S_2
NOTE 4: EARNINGS PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Weighted Average Number of Shares Outstanding, Basic | 14,146 | 14,038 | 14,124 | 14,007 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 22,516 | $ 11,663 | $ 49,821 | $ 39,358 |
Earnings Per Share, Basic | $ 1.59 | $ 0.83 | $ 3.53 | $ 2.81 |
Weighted Average Number of Shares Outstanding, Diluted | 14,146 | 14,038 | 14,124 | 14,007 |
Net effect of dilutive stock options - based on the treasurystock method using average market price | 153 | 186 | 136 | 186 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 14,299 | 14,224 | 14,260 | 14,193 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 22,516 | $ 11,663 | $ 49,821 | $ 39,358 |
Earnings Per Share, Diluted | $ 1.57 | $ 0.82 | $ 3.49 | $ 2.77 |
NOTE 4_ EARNINGS PER SHARE_ E_2
NOTE 4: EARNINGS PER SHARE: Earnings Per Share, Policy (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Options to purchase shares of common stock outstanding not included in computation of diluted earnings per share because exercise price greater than average market price | 170,600 | 114,300 | 260,947 | 114,300 |
NOTE 5_ INVESTMENT SECURITIES_5
NOTE 5: INVESTMENT SECURITIES: Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available for Sale Securities Fair Value | $ 191,251 | |
Debt Securities, Held-to-maturity, Fair Value | 0 | $ 131 |
Available-for-sale Securities | ||
Available For Sale Securities Amortized Cost Amount | 193,305 | 177,230 |
Available-for-sale Securities, Gross Unrealized Gain | 1,953 | 3,587 |
Available-for-sale Securities, Gross Unrealized Loss | 4,007 | 1,638 |
Available for Sale Securities Fair Value | $ 191,251 | $ 179,179 |
Available for Sale Securities Tax Equivalent Yield | 3.12% | 2.96% |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available For Sale Securities Amortized Cost Amount | $ 124,777 | $ 123,300 |
Available-for-sale Securities, Gross Unrealized Gain | 639 | 871 |
Available-for-sale Securities, Gross Unrealized Loss | 3,891 | 1,638 |
Available for Sale Securities Fair Value | $ 121,525 | $ 122,533 |
Available for Sale Securities Tax Equivalent Yield | 2.44% | 2.19% |
Collateralized Mortgage Obligations | ||
Available For Sale Securities Amortized Cost Amount | $ 17,481 | |
Available-for-sale Securities, Gross Unrealized Gain | 0 | |
Available-for-sale Securities, Gross Unrealized Loss | 97 | |
Available for Sale Securities Fair Value | $ 17,384 | |
Available for Sale Securities Tax Equivalent Yield | 3.03% | |
US States and Political Subdivisions Debt Securities | ||
Available For Sale Securities Amortized Cost Amount | $ 51,047 | $ 53,930 |
Available-for-sale Securities, Gross Unrealized Gain | 1,314 | 2,716 |
Available-for-sale Securities, Gross Unrealized Loss | 19 | 0 |
Available for Sale Securities Fair Value | $ 52,342 | $ 56,646 |
Available for Sale Securities Tax Equivalent Yield | 4.81% | 4.72% |
Held to Maturity Securities Amortized Cost | $ 130 | |
Held to Maturity Securities Gross Unrealized Gains | 1 | |
Held to Maturity Securities Gross Unrealized Losses | 0 | |
Debt Securities, Held-to-maturity, Fair Value | $ 131 | |
Held to Maturity Securities Tax Equivalent Yield | 6.14% |
NOTE 5_ INVESTMENT SECURITIES_6
NOTE 5: INVESTMENT SECURITIES: Investments Classified by Contractual Maturity Date (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Details | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | $ 0 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 0 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 841 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 905 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 9,556 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 9,687 |
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 40,650 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 41,750 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 142,258 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 138,909 |
Available For Sale Securities Amortized Cost Amount | 193,305 |
Available for Sale Securities Fair Value | $ 191,251 |
NOTE 5_ INVESTMENT SECURITIES_7
NOTE 5: INVESTMENT SECURITIES: Investment, Policy (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Details | ||
Fair Value of Debt Securities Reported Less Than Their Historical Cost | $ 117,500 | $ 89,700 |
Debt Securities Reported Less Than Their Historical Cost Percent of Investment Portfolio | 61.40% | 50.00% |
NOTE 5_ INVESTMENT SECURITIES_8
NOTE 5: INVESTMENT SECURITIES: Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Collateralized Mortgage Backed Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 24,226 | $ 33,862 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (557) | (384) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 72,518 | 55,845 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3,334) | (1,254) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 96,744 | 89,707 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (3,891) | (1,638) |
Collateralized Mortgage Obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 17,384 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (97) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 17,384 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (97) | |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,341 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (19) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,341 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (19) | 0 |
Unrealized Losses and Estimated Fair Value | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 44,951 | 33,862 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (673) | (384) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 72,518 | 55,845 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3,334) | (1,254) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 117,469 | 89,707 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (4,007) | $ (1,638) |
NOTE 5_ INVESTMENT SECURITIES_9
NOTE 5: INVESTMENT SECURITIES: Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Available-for-sale Securities, Gross Realized Gains | $ 2,000 | $ 2,000 | ||
Available-for-sale Securities, Gross Realized Losses | $ 0 | 0 | ||
Proceeds from sales of available-for-sale securities | $ 0 | $ 502 | $ 0 |
NOTE 5_ INVESTMENT SECURITIE_10
NOTE 5: INVESTMENT SECURITIES: Other than temporary impairment securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | $ 0 | $ 0 | $ 0 |
NOTE 5_ INVESTMENT SECURITIE_11
NOTE 5: INVESTMENT SECURITIES: Credit Losses Recognized on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold | $ 0 | $ 0 |
NOTE 5_ INVESTMENT SECURITIES (
NOTE 5: INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Details | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 |
Stranded tax amount related to unrealized gains and losses on available for sale securities | $ 272 | $ 272 |
NOTE 6_ LOANS AND ALLOWANCE _10
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans Receivable weighted average interest rate | 5.03% | 4.74% |
SEC Schedule, 12-09, Allowance, Loss on Finance Receivable | ||
Loans Receivable | $ (37,497) | $ (36,492) |
Automobile Loan | ||
Loans Receivable | 277,884 | 357,142 |
One-to-Four-Family Residential Construction | ||
Loans Receivable | 25,477 | 20,793 |
Subdivision Construction | ||
Loans Receivable | 16,054 | 18,062 |
Land Development | ||
Loans Receivable | 44,502 | 43,971 |
Commercial Construction | ||
Loans Receivable | 1,283,468 | 1,068,352 |
Owner Occupied One-to-Four-Family Residential | ||
Loans Receivable | 255,994 | 190,515 |
Non-Owner Occupied One To Four Family Residential | ||
Loans Receivable | 109,282 | 119,468 |
Commercial Real Estate | ||
Loans Receivable | 1,383,871 | 1,235,329 |
Other Residential | ||
Loans Receivable | 791,786 | 745,645 |
Commercial Business | ||
Loans Receivable | 332,037 | 353,351 |
Industrial Revenue Bonds | ||
Loans Receivable | 14,179 | 21,859 |
Consumer Loan | ||
Loans Receivable | 57,921 | 63,368 |
Home Equity Line of Credit | ||
Loans Receivable | 117,061 | 115,439 |
Acquired Loans Net of Discount | ||
Loans Receivable | 177,150 | 209,669 |
Loans Receivable, Gross | ||
Loans Receivable | 4,886,666 | 4,562,963 |
Undisbursed Portion of Loans in Process | ||
Loans Receivable | (899,620) | (793,669) |
Deferred Loan Fees and Gains Net | ||
Loans Receivable | (6,783) | (6,500) |
Loans Receivable | ||
Loans Receivable | $ 3,942,766 | $ 3,726,302 |
NOTE 6_ LOANS AND ALLOWANCE _11
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Schedule of Loans Classified by Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivables, 30 to 59 Days Past Due | Automobile Loan | ||
Financing Receivables, By Class | $ 2,705 | $ 5,196 |
Financing Receivables, 30 to 59 Days Past Due | One-to-Four-Family Residential Construction | ||
Financing Receivables, By Class | 0 | 250 |
Financing Receivables, 30 to 59 Days Past Due | Subdivision Construction | ||
Financing Receivables, By Class | 12 | 0 |
Financing Receivables, 30 to 59 Days Past Due | Land Development | ||
Financing Receivables, By Class | 0 | 54 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due | Owner Occupied One-to-Four-Family Residential | ||
Financing Receivables, By Class | 138 | 1,927 |
Financing Receivables, 30 to 59 Days Past Due | Non-Owner Occupied One To Four Family Residential | ||
Financing Receivables, By Class | 0 | 947 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate | ||
Financing Receivables, By Class | 327 | 8,346 |
Financing Receivables, 30 to 59 Days Past Due | Other Residential | ||
Financing Receivables, By Class | 0 | 540 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Business | ||
Financing Receivables, By Class | 129 | 2,623 |
Financing Receivables, 30 to 59 Days Past Due | Industrial Revenue Bonds | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan | ||
Financing Receivables, By Class | 473 | 464 |
Financing Receivables, 30 to 59 Days Past Due | Home Equity Line of Credit | ||
Financing Receivables, By Class | 353 | 58 |
Financing Receivables, 30 to 59 Days Past Due | Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 1,780 | 4,449 |
Financing Receivables, 30 to 59 Days Past Due | Loans Receivable, Gross | ||
Financing Receivables, By Class | 5,917 | 24,854 |
Financing Receivables, 30 to 59 Days Past Due | Less: Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 1,780 | 4,449 |
Financing Receivables, 30 to 59 Days Past Due | Loans Receivable | ||
Financing Receivables, By Class | 4,137 | 20,405 |
Financing Receivables, 60 to 89 Days Past Due | Automobile Loan | ||
Financing Receivables, By Class | 858 | 1,230 |
Financing Receivables, 60 to 89 Days Past Due | One-to-Four-Family Residential Construction | ||
Financing Receivables, By Class | 294 | 0 |
Financing Receivables, 60 to 89 Days Past Due | Subdivision Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due | Land Development | ||
Financing Receivables, By Class | 32 | 37 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due | Owner Occupied One-to-Four-Family Residential | ||
Financing Receivables, By Class | 62 | 71 |
Financing Receivables, 60 to 89 Days Past Due | Non-Owner Occupied One To Four Family Residential | ||
Financing Receivables, By Class | 0 | 190 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate | ||
Financing Receivables, By Class | 38 | 993 |
Financing Receivables, 60 to 89 Days Past Due | Other Residential | ||
Financing Receivables, By Class | 0 | 353 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Business | ||
Financing Receivables, By Class | 0 | 1,282 |
Financing Receivables, 60 to 89 Days Past Due | Industrial Revenue Bonds | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan | ||
Financing Receivables, By Class | 220 | 64 |
Financing Receivables, 60 to 89 Days Past Due | Home Equity Line of Credit | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due | Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 1,442 | 1,951 |
Financing Receivables, 60 to 89 Days Past Due | Loans Receivable, Gross | ||
Financing Receivables, By Class | 2,946 | 6,171 |
Financing Receivables, 60 to 89 Days Past Due | Less: Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 1,442 | 1,951 |
Financing Receivables, 60 to 89 Days Past Due | Loans Receivable | ||
Financing Receivables, By Class | 1,504 | 4,220 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Automobile Loan | ||
Financing Receivables, By Class | 1,367 | 2,284 |
Financing Receivables, Equal to Greater than 90 Days Past Due | One-to-Four-Family Residential Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Subdivision Construction | ||
Financing Receivables, By Class | 0 | 98 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Land Development | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Owner Occupied One-to-Four-Family Residential | ||
Financing Receivables, By Class | 1,270 | 904 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Non-Owner Occupied One To Four Family Residential | ||
Financing Receivables, By Class | 1,481 | 1,816 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate | ||
Financing Receivables, By Class | 346 | 1,226 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Other Residential | ||
Financing Receivables, By Class | 0 | 1,877 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Business | ||
Financing Receivables, By Class | 1,590 | 2,063 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Industrial Revenue Bonds | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan | ||
Financing Receivables, By Class | 326 | 557 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Home Equity Line of Credit | ||
Financing Receivables, By Class | 95 | 430 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 2,385 | 10,675 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Loans Receivable, Gross | ||
Financing Receivables, By Class | 8,860 | 21,930 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Less: Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 2,385 | 10,675 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Loans Receivable | ||
Financing Receivables, By Class | 6,475 | 11,255 |
Financing Receivables Past Due | Automobile Loan | ||
Financing Receivables, By Class | 4,930 | 8,710 |
Financing Receivables Past Due | One-to-Four-Family Residential Construction | ||
Financing Receivables, By Class | 294 | 250 |
Financing Receivables Past Due | Subdivision Construction | ||
Financing Receivables, By Class | 12 | 98 |
Financing Receivables Past Due | Land Development | ||
Financing Receivables, By Class | 32 | 91 |
Financing Receivables Past Due | Commercial Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Past Due | Owner Occupied One-to-Four-Family Residential | ||
Financing Receivables, By Class | 1,470 | 2,902 |
Financing Receivables Past Due | Non-Owner Occupied One To Four Family Residential | ||
Financing Receivables, By Class | 1,481 | 2,953 |
Financing Receivables Past Due | Commercial Real Estate | ||
Financing Receivables, By Class | 711 | 10,565 |
Financing Receivables Past Due | Other Residential | ||
Financing Receivables, By Class | 0 | 2,770 |
Financing Receivables Past Due | Commercial Business | ||
Financing Receivables, By Class | 1,719 | 5,968 |
Financing Receivables Past Due | Industrial Revenue Bonds | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Past Due | Consumer Loan | ||
Financing Receivables, By Class | 1,019 | 1,085 |
Financing Receivables Past Due | Home Equity Line of Credit | ||
Financing Receivables, By Class | 448 | 488 |
Financing Receivables Past Due | Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 5,607 | 17,075 |
Financing Receivables Past Due | Loans Receivable, Gross | ||
Financing Receivables, By Class | 17,723 | 52,955 |
Financing Receivables Past Due | Less: Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 5,607 | 17,075 |
Financing Receivables Past Due | Loans Receivable | ||
Financing Receivables, By Class | 12,116 | 35,880 |
Financing Receivables Current | Automobile Loan | ||
Financing Receivables, By Class | 272,954 | 348,432 |
Financing Receivables Current | One-to-Four-Family Residential Construction | ||
Financing Receivables, By Class | 25,183 | 20,543 |
Financing Receivables Current | Subdivision Construction | ||
Financing Receivables, By Class | 16,042 | 17,964 |
Financing Receivables Current | Land Development | ||
Financing Receivables, By Class | 44,470 | 43,880 |
Financing Receivables Current | Commercial Construction | ||
Financing Receivables, By Class | 1,283,468 | 1,068,352 |
Financing Receivables Current | Owner Occupied One-to-Four-Family Residential | ||
Financing Receivables, By Class | 254,524 | 187,613 |
Financing Receivables Current | Non-Owner Occupied One To Four Family Residential | ||
Financing Receivables, By Class | 107,801 | 116,515 |
Financing Receivables Current | Commercial Real Estate | ||
Financing Receivables, By Class | 1,383,160 | 1,224,764 |
Financing Receivables Current | Other Residential | ||
Financing Receivables, By Class | 791,786 | 742,875 |
Financing Receivables Current | Commercial Business | ||
Financing Receivables, By Class | 330,318 | 347,383 |
Financing Receivables Current | Industrial Revenue Bonds | ||
Financing Receivables, By Class | 14,179 | 21,859 |
Financing Receivables Current | Consumer Loan | ||
Financing Receivables, By Class | 56,902 | 62,283 |
Financing Receivables Current | Home Equity Line of Credit | ||
Financing Receivables, By Class | 116,613 | 114,951 |
Financing Receivables Current | Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 171,543 | 192,594 |
Financing Receivables Current | Loans Receivable, Gross | ||
Financing Receivables, By Class | 4,868,943 | 4,510,008 |
Financing Receivables Current | Less: Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 171,543 | 192,594 |
Financing Receivables Current | Loans Receivable | ||
Financing Receivables, By Class | 4,697,400 | 4,317,414 |
Financing Receivables, Total | Automobile Loan | ||
Financing Receivables, By Class | 277,884 | 357,142 |
Financing Receivables, Total | One-to-Four-Family Residential Construction | ||
Financing Receivables, By Class | 25,477 | 20,793 |
Financing Receivables, Total | Subdivision Construction | ||
Financing Receivables, By Class | 16,054 | 18,062 |
Financing Receivables, Total | Land Development | ||
Financing Receivables, By Class | 44,502 | 43,971 |
Financing Receivables, Total | Commercial Construction | ||
Financing Receivables, By Class | 1,283,468 | 1,068,352 |
Financing Receivables, Total | Owner Occupied One-to-Four-Family Residential | ||
Financing Receivables, By Class | 255,994 | 190,515 |
Financing Receivables, Total | Non-Owner Occupied One To Four Family Residential | ||
Financing Receivables, By Class | 109,282 | 119,468 |
Financing Receivables, Total | Commercial Real Estate | ||
Financing Receivables, By Class | 1,383,871 | 1,235,329 |
Financing Receivables, Total | Other Residential | ||
Financing Receivables, By Class | 791,786 | 745,645 |
Financing Receivables, Total | Commercial Business | ||
Financing Receivables, By Class | 332,037 | 353,351 |
Financing Receivables, Total | Industrial Revenue Bonds | ||
Financing Receivables, By Class | 14,179 | 21,859 |
Financing Receivables, Total | Consumer Loan | ||
Financing Receivables, By Class | 57,921 | 63,368 |
Financing Receivables, Total | Home Equity Line of Credit | ||
Financing Receivables, By Class | 117,061 | 115,439 |
Financing Receivables, Total | Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 177,150 | 209,669 |
Financing Receivables, Total | Loans Receivable, Gross | ||
Financing Receivables, By Class | 4,886,666 | 4,562,963 |
Financing Receivables, Total | Less: Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 177,150 | 209,669 |
Financing Receivables, Total | Loans Receivable | ||
Financing Receivables, By Class | 4,709,516 | 4,353,294 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Automobile Loan | ||
Financing Receivables, By Class | 0 | 12 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | One-to-Four-Family Residential Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Subdivision Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Land Development | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Construction | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Owner Occupied One-to-Four-Family Residential | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Non-Owner Occupied One To Four Family Residential | ||
Financing Receivables, By Class | 0 | 58 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Real Estate | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Other Residential | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Business | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Industrial Revenue Bonds | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Consumer Loan | ||
Financing Receivables, By Class | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Home Equity Line of Credit | ||
Financing Receivables, By Class | 0 | 26 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 0 | 272 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Loans Receivable, Gross | ||
Financing Receivables, By Class | 0 | 368 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Less: Acquired Loans Net of Discount | ||
Financing Receivables, By Class | 0 | 272 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Loans Receivable | ||
Financing Receivables, By Class | $ 0 | $ 96 |
NOTE 6_ LOANS AND ALLOWANCE _12
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Schedule of Financing Receivables, Non Accrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Automobile Loan | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 1,367 | $ 2,272 |
One-to-Four-Family Residential Construction | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Subdivision Construction | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 98 |
Land Development | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Commercial Construction | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Owner Occupied One-to-Four-Family Residential | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,270 | 904 |
Non-Owner Occupied One To Four Family Residential | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,481 | 1,758 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 346 | 1,226 |
Other Residential | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 1,877 |
Commercial Business | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,590 | 2,063 |
Industrial Revenue Bonds | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Consumer Loan | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 326 | 557 |
Home Equity Line of Credit | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 95 | 404 |
Loans Receivable | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 6,475 | $ 11,159 |
NOTE 6_ LOANS AND ALLOWANCE _13
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Provision for Loan and Lease Losses | $ 1,300 | $ 2,950 | $ 5,200 | $ 7,150 | |
One-to-Four-Family Residential Construction | |||||
Provision for Loan Losses Expensed | 7 | 285 | 494 | 407 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (18) | (74) | (59) | (150) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 79 | 46 | 252 | 91 | |
One-to-Four-Family Residential Construction | Beginning of Period | |||||
Provision for Loan and Lease Losses | 2,727 | 2,413 | 2,108 | 2,322 | |
One-to-Four-Family Residential Construction | End of Period | |||||
Provision for Loan and Lease Losses | 2,795 | 2,670 | 2,795 | 2,670 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 771 | 771 | $ 513 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,987 | 1,987 | 1,564 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 37 | 31 | |||
Financing Receivable, Individually Evaluated for Impairment | 6,302 | 6,302 | 6,950 | ||
Financing Receivable, Collectively Evaluated for Impairment | 400,505 | 400,505 | 341,888 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 98,702 | 98,702 | 120,295 | ||
Other Residential | |||||
Provision for Loan Losses Expensed | 341 | 190 | 1,310 | (1,708) | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (194) | (10) | (525) | (12) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 41 | 89 | 409 | 158 | |
Other Residential | Beginning of Period | |||||
Provision for Loan and Lease Losses | 3,845 | 3,655 | 2,839 | 5,486 | |
Other Residential | End of Period | |||||
Provision for Loan and Lease Losses | 4,033 | 3,924 | 4,033 | 3,924 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,006 | 4,006 | 2,813 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 27 | 26 | |||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | 2,907 | ||
Financing Receivable, Collectively Evaluated for Impairment | 791,786 | 791,786 | 742,738 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 12,927 | 12,927 | 14,877 | ||
Commercial Real Estate | |||||
Provision for Loan Losses Expensed | 708 | 643 | 1,519 | 1,413 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | (357) | (102) | (1,649) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 1 | 74 | 127 | 100 | |
Commercial Real Estate | Beginning of Period | |||||
Provision for Loan and Lease Losses | 19,474 | 15,442 | 18,639 | 15,938 | |
Commercial Real Estate | End of Period | |||||
Provision for Loan and Lease Losses | 20,183 | 15,802 | 20,183 | 15,802 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 635 | 635 | 599 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 19,288 | 19,288 | 17,843 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 260 | 197 | |||
Financing Receivable, Individually Evaluated for Impairment | 3,556 | 3,556 | 8,315 | ||
Financing Receivable, Collectively Evaluated for Impairment | 1,380,315 | 1,380,315 | 1,227,014 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 35,980 | 35,980 | 39,210 | ||
Commercial Construction | |||||
Provision for Loan Losses Expensed | 538 | 298 | 1,009 | 74 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (4) | 0 | (87) | (386) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 97 | 129 | 337 | 166 | |
Commercial Construction | Beginning of Period | |||||
Provision for Loan and Lease Losses | 2,395 | 1,711 | 1,767 | 2,284 | |
Commercial Construction | End of Period | |||||
Provision for Loan and Lease Losses | 3,026 | 2,138 | 3,026 | 2,138 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,953 | 2,953 | 1,690 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 73 | 77 | |||
Financing Receivable, Individually Evaluated for Impairment | 14 | 14 | 15 | ||
Financing Receivable, Collectively Evaluated for Impairment | 1,327,956 | 1,327,956 | 1,112,308 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 4,240 | 4,240 | 3,806 | ||
Commercial Business | |||||
Provision for Loan Losses Expensed | (1,019) | 562 | (991) | 1,786 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (274) | (1,090) | (1,155) | (1,365) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 80 | 66 | 343 | 467 | |
Commercial Business | Beginning of Period | |||||
Provision for Loan and Lease Losses | 2,991 | 4,365 | 3,581 | 3,015 | |
Commercial Business | End of Period | |||||
Provision for Loan and Lease Losses | 1,778 | 3,903 | 1,778 | 3,903 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 324 | 324 | 2,140 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,438 | 1,438 | 1,369 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 16 | 72 | |||
Financing Receivable, Individually Evaluated for Impairment | 2,008 | 2,008 | 3,018 | ||
Financing Receivable, Collectively Evaluated for Impairment | 344,208 | 344,208 | 372,192 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 4,613 | 4,613 | 5,275 | ||
Consumer | |||||
Provision for Loan Losses Expensed | 725 | 972 | 1,859 | 5,178 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (2,128) | (3,151) | (7,062) | (9,120) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 961 | 1,038 | 3,327 | 3,393 | |
Consumer | Beginning of Period | |||||
Provision for Loan and Lease Losses | 6,124 | 8,947 | 7,558 | 8,355 | |
Consumer | End of Period | |||||
Provision for Loan and Lease Losses | 5,682 | 7,806 | 5,682 | 7,806 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 433 | 433 | 699 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,221 | 5,221 | 6,802 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 28 | 57 | |||
Financing Receivable, Individually Evaluated for Impairment | 2,524 | 2,524 | 4,129 | ||
Financing Receivable, Collectively Evaluated for Impairment | 450,342 | 450,342 | 531,820 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 20,688 | 20,688 | 26,206 | ||
Loans Receivable | |||||
Provision for Loan Losses Expensed | 1,300 | 2,950 | 5,200 | 7,150 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (2,618) | (4,682) | (8,990) | (12,682) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 1,259 | 1,442 | 4,795 | 4,375 | |
Loans Receivable | Beginning of Period | |||||
Provision for Loan and Lease Losses | 37,556 | 36,533 | 36,492 | 37,400 | |
Loans Receivable | End of Period | |||||
Provision for Loan and Lease Losses | 37,497 | $ 36,243 | 37,497 | $ 36,243 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 2,163 | 2,163 | 3,951 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 34,893 | 34,893 | 32,081 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 441 | 460 | |||
Financing Receivable, Individually Evaluated for Impairment | 14,404 | 14,404 | 25,334 | ||
Financing Receivable, Collectively Evaluated for Impairment | 4,695,112 | 4,695,112 | 4,327,960 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | $ 177,150 | $ 177,150 | $ 209,669 |
NOTE 6_ LOANS AND ALLOWANCE _14
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Automobile Loan | |||||
Impaired Financing Receivable, Recorded Investment | $ 1,843 | $ 2,740 | $ 1,843 | $ 2,740 | $ 2,713 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,046 | 2,936 | 2,046 | 2,936 | 2,898 |
Impaired Financing Receivable, Related Allowance | 331 | 491 | 331 | 491 | 484 |
Impaired Financing Receivable, Average Recorded Investment | 1,865 | 2,548 | 2,120 | 2,323 | 2,383 |
Impaired Financing Receivable Interest Income Recognized | 37 | 79 | 118 | 156 | 222 |
One-to-Four-Family Residential Construction | |||||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 | 258 | 193 |
Impaired Financing Receivable Interest Income Recognized | 0 | 0 | 0 | 0 | 0 |
Subdivision Construction | |||||
Impaired Financing Receivable, Recorded Investment | 241 | 434 | 241 | 434 | 349 |
Impaired Financing Receivable, Unpaid Principal Balance | 241 | 450 | 241 | 450 | 367 |
Impaired Financing Receivable, Related Allowance | 107 | 116 | 107 | 116 | 114 |
Impaired Financing Receivable, Average Recorded Investment | 299 | 444 | 336 | 652 | 584 |
Impaired Financing Receivable Interest Income Recognized | 3 | 9 | 11 | 21 | 22 |
Land Development | |||||
Impaired Financing Receivable, Recorded Investment | 14 | 315 | 14 | 315 | 15 |
Impaired Financing Receivable, Unpaid Principal Balance | 18 | 319 | 18 | 319 | 18 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 15 | 424 | 15 | 2,319 | 1,793 |
Impaired Financing Receivable Interest Income Recognized | 1 | 12 | 1 | 33 | 24 |
Commercial Construction | |||||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable Interest Income Recognized | 0 | 0 | 0 | 0 | 0 |
Owner Occupied One-to-Four-Family Residential | |||||
Impaired Financing Receivable, Recorded Investment | 3,663 | 3,441 | 3,663 | 3,441 | 3,405 |
Impaired Financing Receivable, Unpaid Principal Balance | 3,995 | 3,740 | 3,995 | 3,740 | 3,723 |
Impaired Financing Receivable, Related Allowance | 343 | 351 | 343 | 351 | 331 |
Impaired Financing Receivable, Average Recorded Investment | 3,401 | 3,440 | 3,322 | 3,384 | 3,405 |
Impaired Financing Receivable Interest Income Recognized | 53 | 44 | 142 | 124 | 166 |
Non-Owner Occupied One To Four Family Residential | |||||
Impaired Financing Receivable, Recorded Investment | 2,398 | 3,293 | 2,398 | 3,293 | 3,196 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,677 | 3,560 | 2,677 | 3,560 | 3,465 |
Impaired Financing Receivable, Related Allowance | 321 | 104 | 321 | 104 | 68 |
Impaired Financing Receivable, Average Recorded Investment | 2,583 | 2,550 | 3,082 | 2,183 | 2,419 |
Impaired Financing Receivable Interest Income Recognized | 38 | 80 | 130 | 128 | 165 |
Commercial Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 3,556 | 9,358 | 3,556 | 9,358 | 8,315 |
Impaired Financing Receivable, Unpaid Principal Balance | 3,714 | 9,581 | 3,714 | 9,581 | 8,490 |
Impaired Financing Receivable, Related Allowance | 635 | 599 | 635 | 599 | 599 |
Impaired Financing Receivable, Average Recorded Investment | 6,689 | 6,819 | 7,115 | 9,068 | 9,075 |
Impaired Financing Receivable Interest Income Recognized | 55 | 266 | 278 | 425 | 567 |
Other Residential | |||||
Impaired Financing Receivable, Recorded Investment | 0 | 3,390 | 0 | 3,390 | 2,907 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 3,390 | 0 | 3,390 | 2,907 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 675 | 3,457 | 1,368 | 3,660 | 3,553 |
Impaired Financing Receivable Interest Income Recognized | 0 | 27 | 20 | 102 | 147 |
Commercial Business | |||||
Impaired Financing Receivable, Recorded Investment | 2,008 | 3,141 | 2,008 | 3,141 | 3,018 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,383 | 4,311 | 2,383 | 4,311 | 4,222 |
Impaired Financing Receivable, Related Allowance | 324 | 2,396 | 324 | 2,396 | 2,140 |
Impaired Financing Receivable, Average Recorded Investment | 2,581 | 5,580 | 3,277 | 6,148 | 5,384 |
Impaired Financing Receivable Interest Income Recognized | 40 | 35 | 329 | 161 | 173 |
Industrial Revenue Bonds | |||||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable Interest Income Recognized | 0 | 0 | 0 | 0 | 0 |
Consumer Loan | |||||
Impaired Financing Receivable, Recorded Investment | 566 | 1,042 | 566 | 1,042 | 825 |
Impaired Financing Receivable, Unpaid Principal Balance | 751 | 1,148 | 751 | 1,148 | 917 |
Impaired Financing Receivable, Related Allowance | 85 | 156 | 85 | 156 | 124 |
Impaired Financing Receivable, Average Recorded Investment | 671 | 1,005 | 806 | 886 | 906 |
Impaired Financing Receivable Interest Income Recognized | 11 | 26 | 48 | 65 | 69 |
Home Equity Line of Credit | |||||
Impaired Financing Receivable, Recorded Investment | 115 | 647 | 115 | 647 | 591 |
Impaired Financing Receivable, Unpaid Principal Balance | 133 | 725 | 133 | 725 | 648 |
Impaired Financing Receivable, Related Allowance | 17 | 100 | 17 | 100 | 91 |
Impaired Financing Receivable, Average Recorded Investment | 405 | 633 | 500 | 456 | 498 |
Impaired Financing Receivable Interest Income Recognized | 0 | 14 | 28 | 32 | 33 |
Loans Receivable | |||||
Impaired Financing Receivable, Recorded Investment | 14,404 | 27,801 | 14,404 | 27,801 | 25,334 |
Impaired Financing Receivable, Unpaid Principal Balance | 15,958 | 30,160 | 15,958 | 30,160 | 27,655 |
Impaired Financing Receivable, Related Allowance | 2,163 | 4,313 | 2,163 | 4,313 | 3,951 |
Impaired Financing Receivable, Average Recorded Investment | 19,184 | 26,900 | 21,941 | 31,337 | 30,193 |
Impaired Financing Receivable Interest Income Recognized | $ 238 | $ 592 | $ 1,105 | $ 1,247 | $ 1,588 |
NOTE 6_ LOANS AND ALLOWANCE _15
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Impaired Loans Specific Valuation Allowance (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Details | ||
Impaired Loans Valuation Allowance | $ 2,200 | $ 4,000 |
NOTE 6_ LOANS AND ALLOWANCE _16
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Troubled Debt Restructurings on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consumer | ||||
Troubled Debt Restructuring Loans Interest Only | $ 0 | $ 0 | $ 0 | $ 0 |
Troubled Debt Restructuring Loans Modified Term | 67 | 194 | 506 | 199 |
Troubled Debt Restructuring Loans Modified Combination | 0 | 0 | 0 | 0 |
Troubled Debt Restructurings Total New Modifications | $ 67 | 194 | 506 | 199 |
Commercial Real Estate | ||||
Troubled Debt Restructuring Loans Interest Only | 0 | 0 | ||
Troubled Debt Restructuring Loans Modified Term | 0 | 0 | ||
Troubled Debt Restructuring Loans Modified Combination | 5,759 | 5,759 | ||
Troubled Debt Restructurings Total New Modifications | 5,759 | 5,759 | ||
Newly Restructured Modified Loans | ||||
Troubled Debt Restructuring Loans Interest Only | 0 | 1,348 | 0 | |
Troubled Debt Restructuring Loans Modified Term | 194 | 506 | 199 | |
Troubled Debt Restructuring Loans Modified Combination | 5,759 | 0 | 6,033 | |
Troubled Debt Restructurings Total New Modifications | $ 5,953 | 1,854 | 6,232 | |
One-to-Four-Family Residential | ||||
Troubled Debt Restructuring Loans Interest Only | 1,348 | |||
Troubled Debt Restructuring Loans Modified Term | 0 | |||
Troubled Debt Restructuring Loans Modified Combination | 0 | |||
Troubled Debt Restructurings Total New Modifications | $ 1,348 | |||
Commercial Business | ||||
Troubled Debt Restructuring Loans Interest Only | 0 | |||
Troubled Debt Restructuring Loans Modified Term | 0 | |||
Troubled Debt Restructuring Loans Modified Combination | 274 | |||
Troubled Debt Restructurings Total New Modifications | $ 274 |
NOTE 6_ LOANS AND ALLOWANCE _17
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Loans Modified in Troubled Debt Restructurings by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Troubled Debt Restructurings Total Modifications | $ 7,000 | $ 15,000 |
Troubled Debt Restructurings Accruing Interest | 4,800 | 12,300 |
Substandard | ||
Troubled Debt Restructurings | 2,300 | 8,800 |
Construction and Land Development | ||
Troubled Debt Restructured Loans and Impaired | 256 | 266 |
One- to Four-Family and Other Residential | ||
Troubled Debt Restructured Loans and Impaired | 4,100 | 6,200 |
Commercial Real Estate | ||
Troubled Debt Restructured Loans and Impaired | 1,300 | 7,100 |
Commercial Business | ||
Troubled Debt Restructured Loans and Impaired | 568 | 867 |
Consumer | ||
Troubled Debt Restructured Loans and Impaired | $ 856 | $ 617 |
NOTE 6_ LOANS AND ALLOWANCE _18
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Troubled Debt Restructured Loans Returned to Accrual Status (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Troubled Debt Restructurings Returned to Accrual Status | $ 327 | $ 672 | |
One-to-Four-Family Residential | |||
Troubled Debt Restructurings Returned to Accrual Status | 46 | $ 85 | 345 |
Commercial Real Estate | |||
Troubled Debt Restructurings Returned to Accrual Status | 285 | ||
Consumer | |||
Troubled Debt Restructurings Returned to Accrual Status | $ 42 | $ 42 |
NOTE 6_ LOANS AND ALLOWANCE _19
NOTE 6: LOANS AND ALLOWANCE FOR LOAN LOSSES: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Satisfactory | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | $ 276,220 | $ 354,588 |
Satisfactory | One-to-Four-Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 25,056 | 20,275 |
Satisfactory | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 14,087 | 15,602 |
Satisfactory | Land Development | ||
Loan Portfolio Internal Grading System Classification | 39,902 | 39,171 |
Satisfactory | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 1,283,468 | 1,068,352 |
Satisfactory | Owner Occupied One-to-Four-Family Residential | ||
Loan Portfolio Internal Grading System Classification | 253,695 | 188,706 |
Satisfactory | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 106,619 | 117,103 |
Satisfactory | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 1,370,246 | 1,218,431 |
Satisfactory | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 791,285 | 742,237 |
Satisfactory | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 325,260 | 344,479 |
Satisfactory | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 14,179 | 21,859 |
Satisfactory | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 57,337 | 62,682 |
Satisfactory | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 116,804 | 114,860 |
Satisfactory | Acquired Loans Net of Discount | ||
Loan Portfolio Internal Grading System Classification | 177,130 | 209,657 |
Satisfactory | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 4,851,288 | 4,518,002 |
Watch | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 155 | 0 |
Watch | One-to-Four-Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 421 | 518 |
Watch | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 1,967 | 2,362 |
Watch | Land Development | ||
Loan Portfolio Internal Grading System Classification | 4,600 | 4,800 |
Watch | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Watch | Owner Occupied One-to-Four-Family Residential | ||
Loan Portfolio Internal Grading System Classification | 62 | 0 |
Watch | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 1,092 | 389 |
Watch | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 11,330 | 9,909 |
Watch | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 501 | 1,532 |
Watch | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 5,187 | 6,306 |
Watch | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Watch | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 162 | 0 |
Watch | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 152 | 0 |
Watch | Acquired Loans Net of Discount | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Watch | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 25,629 | 25,816 |
Special Mention | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | One-to-Four-Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Land Development | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Owner Occupied One-to-Four-Family Residential | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Acquired Loans Net of Discount | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Special Mention | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Substandard | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 1,509 | 2,554 |
Substandard | One-to-Four-Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Substandard | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 98 |
Substandard | Land Development | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Substandard | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Substandard | Owner Occupied One-to-Four-Family Residential | ||
Loan Portfolio Internal Grading System Classification | 2,237 | 1,809 |
Substandard | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 1,571 | 1,976 |
Substandard | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 2,295 | 6,989 |
Substandard | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 0 | 1,876 |
Substandard | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 1,590 | 2,066 |
Substandard | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Substandard | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 422 | 686 |
Substandard | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 105 | 579 |
Substandard | Acquired Loans Net of Discount | ||
Loan Portfolio Internal Grading System Classification | 20 | 12 |
Substandard | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 9,749 | 18,645 |
Doubtful | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | One-to-Four-Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Land Development | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Owner Occupied One-to-Four-Family Residential | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 0 | 500 |
Doubtful | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Acquired Loans Net of Discount | ||
Loan Portfolio Internal Grading System Classification | 0 | 0 |
Doubtful | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 0 | 500 |
Total for Portfolio | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 277,884 | 357,142 |
Total for Portfolio | One-to-Four-Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 25,477 | 20,793 |
Total for Portfolio | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 16,054 | 18,062 |
Total for Portfolio | Land Development | ||
Loan Portfolio Internal Grading System Classification | 44,502 | 43,971 |
Total for Portfolio | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 1,283,468 | 1,068,352 |
Total for Portfolio | Owner Occupied One-to-Four-Family Residential | ||
Loan Portfolio Internal Grading System Classification | 255,994 | 190,515 |
Total for Portfolio | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 109,282 | 119,468 |
Total for Portfolio | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 1,383,871 | 1,235,329 |
Total for Portfolio | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 791,786 | 745,645 |
Total for Portfolio | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 332,037 | 353,351 |
Total for Portfolio | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 14,179 | 21,859 |
Total for Portfolio | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 57,921 | 63,368 |
Total for Portfolio | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 117,061 | 115,439 |
Total for Portfolio | Acquired Loans Net of Discount | ||
Loan Portfolio Internal Grading System Classification | 177,150 | 209,669 |
Total for Portfolio | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | $ 4,886,666 | $ 4,562,963 |
NOTE 7_ ACQUIRED LOANS, LOSS _9
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Business Combinations Policy (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
InterBank | ||||
Premium recorded in conjunction with fair value of acquired loans and amount amortized to yield | $ 38 | $ 64 | $ 138 | $ 210 |
Valley Bank | ||||
Premium recorded in conjunction with fair value of acquired loans and amount amortized to yield | $ 0 | $ 47 | $ 11 | $ 189 |
NOTE 7_ ACQUIRED LOANS, LOSS_10
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Loss Sharing Agreement Policy (Details) - USD ($) $ in Thousands | Jun. 09, 2017 | Apr. 26, 2016 | Sep. 30, 2018 | Sep. 30, 2017 |
Cash Received from FDIC Loss Sharing Reimbursements | $ 0 | $ 16,245 | ||
Gain Realized on Termination of Loss Sharing Agreements | $ 0 | $ 7,704 | ||
TeamBank | ||||
Cash Received from FDIC Loss Sharing Reimbursements | $ 4,400 | |||
Vantus Bank | ||||
Cash Received from FDIC Loss Sharing Reimbursements | 4,400 | |||
Sun Security Bank | ||||
Cash Received from FDIC Loss Sharing Reimbursements | $ 4,400 | |||
InterBank | ||||
Cash Received from FDIC Loss Sharing Reimbursements | $ 15,000 | |||
Gain Realized on Termination of Loss Sharing Agreements | $ 7,700 |
NOTE 7_ ACQUIRED LOANS, LOSS_11
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Schedule of Impact of Adjustments of Acquired Loans on Financial Results (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | |
Details | ||||
Impact of acquired loan pools on net interest income | $ 1,424 | $ 975 | $ 3,652 | $ 4,237 |
Impact of acquired loan pools on net interest margin (in basis points) | 14 | 9 | 12 | 14 |
Impact of acquired loan pools on non-interest income | $ 0 | $ 0 | $ 0 | $ (634) |
Net impact of acquired loan pools to pre-tax income | 1,424 | 975 | 3,652 | 3,603 |
Net impact of acquired loan pools to net of taxes | $ 1,106 | $ 621 | $ 2,836 | $ 2,295 |
Impact of acquired loan pools to diluted earnings per common share | $ / shares | $ 0.08 | $ 0.04 | $ 0.20 | $ 0.16 |
NOTE 7_ ACQUIRED LOANS, LOSS_12
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: FDIC Indemnification Asset Policy (Details) | 3 Months Ended |
Sep. 30, 2018 | |
TeamBank | |
Business Combination, Indemnification Assets, Description | Through September 30, 2018, gross loan balances (due from the borrower) were reduced approximately $424.5 million since the transaction date because of $291.9 million of repayments from borrowers, $61.7 million in transfers to foreclosed assets and $70.9 million in charge-offs to customer loan balances |
Vantus Bank | |
Business Combination, Indemnification Assets, Description | Through September 30, 2018, gross loan balances (due from the borrower) were reduced approximately $315.9 million since the transaction date because of $270.3 million of repayments from borrowers, $16.7 million in transfers to foreclosed assets and $28.9 million in charge-offs to customer loan balances. |
Sun Security Bank | |
Business Combination, Indemnification Assets, Description | Through September 30, 2018, gross loan balances (due from the borrower) were reduced approximately $212.2 million since the transaction date because of $152.7 million of repayments from borrowers, $28.6 million in transfers to foreclosed assets and $30.9 million of charge-offs to customer loan balances. |
InterBank | |
Business Combination, Indemnification Assets, Description | Through September 30, 2018, gross loan balances (due from the borrower) were reduced approximately $302.8 million since the transaction date because of $260.6 million of repayments by the borrower, $19.8 million in transfers to foreclosed assets and $22.4 million of charge-offs to customer loan balances. |
Valley Bank | |
Business Combination, Indemnification Assets, Description | Through September 30, 2018, gross loan balances (due from the borrower) were reduced approximately $137.8 million since the transaction date because of $125.9 million of repayments by the borrower, $4.0 million in transfers to foreclosed assets and $7.9 million of charge-offs to customer loan balances. |
NOTE 7_ ACQUIRED LOANS, LOSS_13
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: FDIC Indemnification Asset Roll Forward (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
TeamBank Loans | ||
Initial basis for loss sharing determination, net of activity since acquisition date | $ 11,658 | $ 13,668 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (445) | (589) |
Original estimated fair value of assets, net of activity since acquisition date | (11,094) | (12,948) |
Expected loss remaining | 119 | 131 |
TeamBank Foreclosed Assets | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 15 | 35 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | 0 | 0 |
Original estimated fair value of assets, net of activity since acquisition date | (15) | (35) |
Expected loss remaining | 0 | 0 |
Vantus Bank Loans | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 15,698 | 18,965 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (74) | (131) |
Original estimated fair value of assets, net of activity since acquisition date | (15,395) | (18,605) |
Expected loss remaining | 229 | 229 |
Vantus Bank Foreclosed Assets | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 0 | 15 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | 0 | 0 |
Original estimated fair value of assets, net of activity since acquisition date | 0 | (15) |
Expected loss remaining | 0 | 0 |
Sun Security Bank Loans | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 22,219 | 26,787 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (371) | (494) |
Original estimated fair value of assets, net of activity since acquisition date | (21,099) | (25,348) |
Expected loss remaining | 749 | 945 |
Sun Security Bank Foreclosed Assets | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 305 | 306 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | 0 | 0 |
Original estimated fair value of assets, net of activity since acquisition date | (214) | (299) |
Expected loss remaining | 91 | 7 |
InterBank Loans | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 90,512 | 112,399 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (1,785) | (972) |
Original estimated fair value of assets, net of activity since acquisition date | (78,642) | (98,321) |
Expected loss remaining | 10,221 | 13,380 |
Non-credit premium (discount), net of activity since acquisition date | 136 | 274 |
InterBank Foreclosed Assets | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 146 | 2,012 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | 0 | 0 |
Original estimated fair value of assets, net of activity since acquisition date | (130) | (1,785) |
Expected loss remaining | 16 | 227 |
Non-credit premium (discount), net of activity since acquisition date | 0 | 0 |
Valley Bank Loans | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 55,350 | 59,997 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (229) | (411) |
Original estimated fair value of assets, net of activity since acquisition date | (50,915) | (54,442) |
Expected loss remaining | 4,206 | 5,155 |
Non-credit premium (discount), net of activity since acquisition date | 0 | 11 |
Valley Bank Foreclosed Assets | ||
Initial basis for loss sharing determination, net of activity since acquisition date | 1,488 | 1,673 |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | 0 | 0 |
Original estimated fair value of assets, net of activity since acquisition date | (1,488) | (1,667) |
Expected loss remaining | 0 | 6 |
Non-credit premium (discount), net of activity since acquisition date | $ 0 | $ 0 |
NOTE 7_ ACQUIRED LOANS, LOSS_14
NOTE 7: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS: Schedule of Accretable Yield Changes for Acquired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||||
TeamBank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | $ (294) | $ (352) | $ (736) | $ (1,319) | ||||
Change in expected accretable yield | 103 | [1] | 287 | [1] | 216 | [2] | 1,080 | [2] |
TeamBank | Beginning of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 1,742 | 2,303 | 2,071 | 2,477 | ||||
TeamBank | End of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 1,551 | 2,238 | 1,551 | 2,238 | ||||
Vantus Bank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (279) | (310) | (897) | (1,048) | ||||
Change in expected accretable yield | 234 | [1] | 211 | [1] | 654 | [2] | 582 | [2] |
Vantus Bank | Beginning of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 1,652 | 2,180 | 1,850 | 2,547 | ||||
Vantus Bank | End of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 1,607 | 2,081 | 1,607 | 2,081 | ||||
Sun Security Bank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (399) | (561) | (1,253) | (1,757) | ||||
Change in expected accretable yield | 500 | [1] | (270) | [1] | 508 | [2] | 335 | [2] |
Sun Security Bank | Beginning of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 2,055 | 3,686 | 2,901 | 4,277 | ||||
Sun Security Bank | End of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 2,156 | 2,855 | 2,156 | 2,855 | ||||
InterBank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (2,293) | (1,688) | (5,943) | (5,850) | ||||
Change in expected accretable yield | 2,054 | [1] | 625 | [1] | 6,540 | [2] | 1,689 | [2] |
InterBank | Beginning of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 5,910 | 5,414 | 5,074 | 8,512 | ||||
InterBank | End of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 5,671 | 4,351 | 5,671 | 4,351 | ||||
Valley Bank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (901) | (1,378) | (3,098) | (4,772) | ||||
Change in expected accretable yield | 578 | [1] | 889 | [1] | 3,054 | [2] | 2,799 | [2] |
Valley Bank | Beginning of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 2,974 | 3,313 | 2,695 | 4,797 | ||||
Valley Bank | End of Period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | $ 2,651 | $ 2,824 | $ 2,651 | $ 2,824 | ||||
[1] | Represents increases in estimated cash flows expected to be received from the acquired loan pools, partially due to lower estimated credit losses. The amounts also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the three months ended September 30, 2018, totaling $103,000, $234,000, $485,000, $604,000 and $578,000, respectively, and for the three months ended September 30, 2017, totaling $268,000, $204,000, $(270,000), $625,000 and $444,000, respectively. | |||||||
[2] | Represents increases in estimated cash flows expected to be received from the acquired loan pools, partially due to lower estimated credit losses. The amounts also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the nine months ended September 30, 2018, totaling $201,000, $654,000, $318,000, $3.6 million and $2.3 million, respectively, and for the nine months ended September 30, 2017, totaling $1.1 million, $569,000, $335,000, $1.7 million and $2.2 million, respectively. |
Note 8_ Other Real Estate Own_4
Note 8: Other Real Estate Owned: Schedule of Major Classifications of Foreclosed Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Foreclosed Assets Held For Sale | One-to-Four-Family Residential Construction | ||
Foreclosed Assets | $ 0 | $ 0 |
Foreclosed Assets Held For Sale | Subdivision Construction | ||
Foreclosed Assets | 2,264 | 5,413 |
Foreclosed Assets Held For Sale | Land Development | ||
Foreclosed Assets | 4,495 | 7,229 |
Foreclosed Assets Held For Sale | Commercial Construction | ||
Foreclosed Assets | 0 | 0 |
Foreclosed Assets Held For Sale | One-to-Four-Family Residential | ||
Foreclosed Assets | 657 | 112 |
Foreclosed Assets Held For Sale | Other Residential | ||
Foreclosed Assets | 0 | 140 |
Foreclosed Assets Held For Sale | Commercial Real Estate | ||
Foreclosed Assets | 1,002 | 1,694 |
Foreclosed Assets Held For Sale | Commercial Business | ||
Foreclosed Assets | 0 | 0 |
Foreclosed Assets Held For Sale | Consumer Loan | ||
Foreclosed Assets | 1,020 | 1,987 |
Foreclosed Assets Held For Sale | Foreclosed Assets Before FDIC-Assisted Acquired Assets | ||
Foreclosed Assets | 9,438 | 16,575 |
Foreclosed Assets Held For Sale | Foreclosed Assets Acquired Through FDIC-Assisted Transactions, Net of Discount | ||
Foreclosed Assets | 1,847 | 3,799 |
Foreclosed Assets Held For Sale, Net | ||
Foreclosed Assets | 11,285 | 20,374 |
Other Real Estate Owned Not Acquired Through Foreclosure | ||
Foreclosed Assets | 1,559 | 1,628 |
Other real estate owned | ||
Foreclosed Assets | $ 12,844 | $ 22,002 |
Note 8_ Other Real Estate Own_5
Note 8: Other Real Estate Owned (Details) - Residential Mortgage $ in Thousands | Sep. 30, 2018USD ($) |
Mortgage Loans in Process of Foreclosure, Amount | $ 1,300 |
Acquired Loans | |
Mortgage Loans in Process of Foreclosure, Amount | $ 1,100 |
Note 8_ Other Real Estate Own_6
Note 8: Other Real Estate Owned: Schedule of Expenses Applicable to Foreclosed Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Net (gain) loss on sales of other real estate owned | $ (549) | $ (311) | $ (1,998) | $ (1,098) |
Valuation write-downs on foreclosed assets | 178 | 462 | 3,551 | 522 |
Operating expenses, net of rental income | 869 | 1,192 | 2,823 | 3,171 |
Total foreclosed assets expenses | $ 498 | $ 1,343 | $ 4,376 | $ 2,595 |
Note 9_ Deposits_ Schedule of_2
Note 9: Deposits: Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Deposits | $ 3,595,665 | $ 3,597,144 | |
0.00% - 0.99% | |||
Deposits | 163,501 | 254,502 | |
1.00% - 1.99% | |||
Deposits | 611,935 | 1,006,373 | |
2.00% - 2.99% | |||
Deposits | 647,247 | 106,888 | |
3.00% - 3.99% | |||
Deposits | 8,563 | 701 | |
4.00% - 4.99% | |||
Deposits | 1,129 | 1,108 | |
5.00% and above | |||
Deposits | 273 | 272 | |
Total Time Deposits | |||
Deposits | [1] | 1,432,648 | 1,369,844 |
Non-Interest Bearing Demand Deposits | |||
Deposits | 659,864 | 661,589 | |
Interest Bearing Demand and Savings Deposits | |||
Deposits | [2] | 1,503,153 | 1,565,711 |
Total Deposits | |||
Deposits | $ 3,595,665 | $ 3,597,144 | |
[1] | (1.77% - 1.24%) | ||
[2] | (0.43% - 0.32%) |
Note 10_ Advances From Federa_3
Note 10: Advances From Federal Home Loan Bank: Federal Home Loan Bank, Advances (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Advances from Federal Home Loan Banks | $ 240,000 | $ 127,500 |
Due in 2018 | ||
Advances from Federal Home Loan Banks | $ 240,000 | $ 127,500 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 2.18% | 1.53% |
Note 11_ Securities Sold Unde_4
Note 11: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings: Schedule of Short-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Details | ||
Notes payable - Community Development Equity Funds | $ 1,360 | $ 1,604 |
Other Short-term Borrowings | 0 | 15,000 |
Securities for Reverse Repurchase Agreements | 112,184 | 80,531 |
Short-term debt recorded value | $ 113,544 | $ 97,135 |
Note 11_ Securities Sold Unde_5
Note 11: Securities Sold Under Reverse Repurchase Agreements and Short-term Borrowings: Schedule of Repurchase Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Maturity Overnight and on Demand | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 112,184 | $ 80,531 |
Note 12_ Subordinated Notes_ Su
Note 12: Subordinated Notes: Subordinated Notes Details (Details) - USD ($) $ in Thousands | Aug. 08, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument, Interest Rate Terms | The notes are due August 15, 2026, and have a fixed interest rate of 5.25% until August 15, 2021, at which time the rate becomes floating at a rate equal to three-month LIBOR plus 4.087%. | ||||
Amortization of Debt Discount (Premium) | $ 38 | $ 38 | $ 116 | $ 114 | |
Subordinated Borrowing, Interest Rate | 5.47% | ||||
Senior Subordinated Notes | |||||
Proceeds from Issuance of Senior Long-term Debt | $ 73,500 | ||||
Payment of Financing and Stock Issuance Costs | $ 1,500 |
Note 12_ Subordinated Notes_ _2
Note 12: Subordinated Notes: Schedule of Subordinated Borrowing (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Details | ||
Subordinated Notes Before Costs | $ 75,000 | $ 75,000 |
Unamortized Debt Issuance Expense | 1,196 | 1,312 |
Subordinated Debt | $ 73,804 | $ 73,688 |
Note 13_ Income Taxes_ Schedu_2
Note 13: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | (0.50%) | (1.60%) | (0.70%) | (1.50%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (2.20%) | (7.80%) | (3.20%) | (5.90%) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 1.20% | 1.10% | 1.20% | 1.30% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.00% | 0.20% | (0.10%) | (0.60%) |
Effective Income Tax Rate Reconciliation, Percent | 19.50% | 26.90% | 18.20% | 28.30% |
Note 14_ Disclosures About F_18
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | $ 121,525 | $ 122,533 |
Collateralized Mortgage Obligations | ||
Recurring Assets, Fair Value Disclosure | 17,384 | |
US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | 52,342 | 56,646 |
Interest rate derivative asset | ||
Recurring Assets, Fair Value Disclosure | 1,453 | 981 |
Interest rate derivative liability | ||
Recurring Assets, Fair Value Disclosure | (1,448) | (1,030) |
Fair Value, Inputs, Level 1 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Collateralized Mortgage Obligations | ||
Recurring Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 1 | US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate derivative asset | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest rate derivative liability | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | 121,525 | 122,533 |
Fair Value, Inputs, Level 2 | Collateralized Mortgage Obligations | ||
Recurring Assets, Fair Value Disclosure | 17,384 | |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | 52,342 | 56,646 |
Fair Value, Inputs, Level 2 | Interest rate derivative asset | ||
Recurring Assets, Fair Value Disclosure | 1,453 | 981 |
Fair Value, Inputs, Level 2 | Interest rate derivative liability | ||
Recurring Assets, Fair Value Disclosure | (1,448) | (1,030) |
Fair Value, Inputs, Level 3 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Collateralized Mortgage Obligations | ||
Recurring Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate derivative asset | ||
Recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest rate derivative liability | ||
Recurring Assets, Fair Value Disclosure | $ 0 | $ 0 |
Note 14_ Disclosures About F_19
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Foreclosed Assets Held For Sale | ||
Non-recurring Assets, Fair Value Disclosure | $ 3,014 | $ 1,758 |
Loans Receivable Impaired | ||
Non-recurring Assets, Fair Value Disclosure | 2,996 | 1,590 |
Fair Value, Inputs, Level 1 | Foreclosed Assets Held For Sale | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Loans Receivable Impaired | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Foreclosed Assets Held For Sale | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Loans Receivable Impaired | ||
Non-recurring Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreclosed Assets Held For Sale | ||
Non-recurring Assets, Fair Value Disclosure | 3,014 | 1,758 |
Fair Value, Inputs, Level 3 | Loans Receivable Impaired | ||
Non-recurring Assets, Fair Value Disclosure | $ 2,996 | $ 1,590 |
Note 14_ Disclosures About F_20
Note 14: Disclosures About Fair Value of Financial Instruments: Schedule Of Financial Instruments Fair Value (Details) $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | $ 3,942,766 | $ 3,726,302 |
Financial Instruments, Owned, at Fair Value | $ 3,905,137 | $ 3,735,216 |
Fair Value Hierarchy Level | 3 | 3 |
Financial Assets | Mortgage Loans Held for Sale | ||
Financial Instruments Owned Carrying Amount | $ 3,474 | $ 8,203 |
Financial Instruments, Owned, at Fair Value | $ 3,474 | $ 8,203 |
Fair Value Hierarchy Level | 2 | 2 |
Financial Assets | Accrued Interest Receivable | ||
Financial Instruments Owned Carrying Amount | $ 13,008 | $ 12,338 |
Financial Instruments, Owned, at Fair Value | $ 13,008 | $ 12,338 |
Fair Value Hierarchy Level | 3 | 3 |
Financial Assets | Held-to-maturity Securities | ||
Financial Instruments Owned Carrying Amount | $ 0 | $ 130 |
Financial Instruments, Owned, at Fair Value | $ 0 | $ 131 |
Fair Value Hierarchy Level | 2 | 2 |
Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | $ 208,821 | $ 242,253 |
Financial Instruments, Owned, at Fair Value | $ 208,821 | $ 242,253 |
Fair Value Hierarchy Level | 1 | 1 |
Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | $ 14,918 | $ 11,182 |
Financial Instruments, Owned, at Fair Value | $ 14,918 | $ 11,182 |
Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | $ 240,000 | $ 127,500 |
Financial Instruments, Owned, at Fair Value | $ 240,000 | $ 127,500 |
Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Junior Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | $ 25,774 | $ 25,774 |
Financial Instruments, Owned, at Fair Value | $ 25,774 | $ 25,774 |
Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | $ 73,804 | $ 73,688 |
Financial Instruments, Owned, at Fair Value | $ 75,469 | $ 76,500 |
Fair Value Hierarchy Level | 2 | 2 |
Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | $ 3,595,665 | $ 3,597,144 |
Financial Instruments, Owned, at Fair Value | $ 3,585,641 | $ 3,606,400 |
Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Short-term Debt | ||
Financial Instruments Owned Carrying Amount | $ 113,544 | $ 97,135 |
Financial Instruments, Owned, at Fair Value | $ 113,544 | $ 97,135 |
Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Accrued Interest Payable | ||
Financial Instruments Owned Carrying Amount | $ 3,013 | $ 2,904 |
Financial Instruments, Owned, at Fair Value | $ 3,013 | $ 2,904 |
Fair Value Hierarchy Level | 3 | 3 |
Unrecognized Financial Instruments Net of Contractual Value | Letter of Credit | ||
Financial Instruments Owned Carrying Amount | $ 155 | $ 85 |
Financial Instruments, Owned, at Fair Value | $ 155 | $ 85 |
Fair Value Hierarchy Level | 3 | 3 |
Unrecognized Financial Instruments Net of Contractual Value | Line of Credit | ||
Financial Instruments Owned Carrying Amount | $ 0 | $ 0 |
Financial Instruments, Owned, at Fair Value | $ 0 | $ 0 |
Fair Value Hierarchy Level | 3 | 3 |
Unrecognized Financial Instruments Net of Contractual Value | Loan Origination Commitments | ||
Financial Instruments Owned Carrying Amount | $ 0 | $ 0 |
Financial Instruments, Owned, at Fair Value | $ 0 | $ 0 |
Fair Value Hierarchy Level | 3 | 3 |
Note 15_ Derivatives and Hedg_4
Note 15: Derivatives and Hedging Activities: Loans With Interest Rate Swap (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Interest Rate Swap | Not Designated as Hedging Instrument | Commercial Customers | |
Derivative, Notional Amount | $ 92,700 |
Note 15_ Derivatives and Hedg_5
Note 15: Derivatives and Hedging Activities: Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Asset | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 1,453 | $ 981 |
Derivative Liability | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1,448 | 1,030 |
Interest rate products | Prepaid Expenses and Other Current Assets | ||
Derivative Asset | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1,453 | 981 |
Interest rate products | Accrued expenses and other liabilities | ||
Derivative Liability | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,448 | $ 1,030 |
Note 15_ Derivatives and Hedg_6
Note 15: Derivatives and Hedging Activities: Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amount of Gain Loss Recognized in Accumulated Other Comprehensive Income | ||||
Effect of derivative instruments on the statements of comprehensive income | $ 0 | $ 64 | $ 0 | $ 161 |
NOTE 16_ SALE OF BRANCHES AND_3
NOTE 16: SALE OF BRANCHES AND RELATED DEPOSITS: Sale of Banking Centers (Details) - West Gate Bank $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Transaction Expense | |
Proceeds from Sale of Other Productive Assets | $ 165 |
Pre-Tax Gain | |
Proceeds from Sale of Other Productive Assets | 7,400 |
Deposits | |
Proceeds from Sale of Other Productive Assets | $ 56,000 |
NOTE 17_ SUBSEQUENT EVENT - S_2
NOTE 17: SUBSEQUENT EVENT - SALE OF CERTAIN BRANCHES (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Details | |
Derivative, Type of Interest Rate Paid on Swap | Under the terms of the swap, the Company will receive a fixed rate of interest of 3.018% and will pay a floating rate of interest equal to one-month USD-LIBOR. The floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly. The initial floating rate of interest was set at 2.277%. |