Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | Banner Corporation | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Entity Central Index Key | 946,673 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 1,914,245,405 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Voting Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 35,106,227 | ||
Nonvoting Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 74,933 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Cash and due from banks | $ 231,029 | $ 199,624 | |
Interest-bearing Deposits in Banks and Other Financial Institutions | 41,167 | 61,576 | |
Cash and Cash Equivalents, at Carrying Value | 272,196 | 261,200 | |
Securities—trading, amortized cost $27,203 and $27,246, respectively | 25,896 | 22,318 | |
Securities—available-for-sale, amortized cost $1,648,421 and $926,112, respectively | 1,636,223 | 919,485 | |
Securities—held-to-maturity, fair value $232,537 and $262,188, respectively | 234,220 | 260,271 | |
Federal Home Loan Bank (FHLB) stock | 31,955 | 10,334 | |
Loans Receivable Held-for-sale, Amount | 171,031 | 40,725 | |
Loans receivable | 8,684,595 | 7,598,884 | |
Allowance for loan losses | (96,485) | (89,028) | |
Total loans, net | 8,588,110 | 7,509,856 | |
Accrued interest receivable | 38,593 | 31,259 | |
Real estate owned (REO), held for sale, net | 2,611 | 360 | |
Property and equipment, net | 171,809 | 154,815 | |
Goodwill | 339,154 | 242,659 | |
Other intangible assets, net | 32,924 | 22,655 | |
Bank-owned life insurance (BOLI) | 177,467 | 162,668 | |
Deferred tax assets, net | 75,020 | 71,427 | |
Other assets | 74,108 | 53,177 | |
Total assets | 11,871,317 | 9,763,209 | |
Deposits: | |||
Non-interest-bearing | 3,657,817 | 3,265,544 | |
Interest-bearing transaction and savings accounts | 4,498,966 | 3,950,950 | |
Interest-bearing certificates | [1] | 1,320,265 | 966,937 |
Total deposits | 9,477,048 | 8,183,431 | |
Advances from FHLB | 540,189 | 202 | |
Other borrowings | 118,995 | 95,860 | |
Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) | 114,091 | 98,707 | |
Accrued expenses and other liabilities | 102,061 | 71,344 | |
Deferred compensation | 40,338 | 41,039 | |
Total liabilities | 10,392,722 | 8,490,583 | |
COMMITMENTS AND CONTINGENCIES (Note 23) | |||
SHAREHOLDERS’ EQUITY | |||
Preferred stock - $0.01 par value per share, 500,000 shares authorized; no shares issued and outstanding at December 31, 2018 and December 31, 2017 | 0 | 0 | |
Retained earnings | 134,055 | 90,535 | |
Accumulated other comprehensive income (loss) | 7,104 | (5,036) | |
Carrying value of shares held in trust for stock related compensation plans | (7,289) | (7,351) | |
Liability for common stock issued for stock related compensation plans | 7,289 | 7,351 | |
Shareholders’ equity | 1,478,595 | 1,272,626 | |
Total liabilities and stockholders' equity | 11,871,317 | 9,763,209 | |
Voting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | 1,336,030 | 1,185,919 | |
Nonvoting Common Stock [Member] | |||
SHAREHOLDERS’ EQUITY | |||
Common stock and paid in capital | $ 1,406 | $ 1,208 | |
[1] | )Certificates of deposit included $563,000 of acquisition discounts at December 31, 2018 and $11,000 of acquisition premiums at December 31, 2017. |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Securities—trading, amortized cost basis | $ 27,203 | $ 27,246 |
Securities—available-for-sale, amortized cost basis | 1,648,421 | 926,112 |
Debt Securities, Held-to-maturity, Fair Value | 232,537 | 262,188 |
Loans Held-for-sale, Fair Value | $ 164,800 | $ 32,400 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, share par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Voting Common Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, share par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 35,107,839 | 32,626,456 |
Common stock, shares outstanding | 35,107,839 | 32,626,456 |
Nonvoting Common Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, share par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 74,933 | 100,029 |
Common stock, shares outstanding | 74,933 | 100,029 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST INCOME: | |||
Loans receivable | $ 413,370 | $ 374,449 | $ 359,612 |
Mortgage-backed securities | 35,076 | 24,535 | 19,328 |
Securities and cash equivalents | 15,186 | 13,300 | 12,537 |
Total interest income | 463,632 | 412,284 | 391,477 |
INTEREST EXPENSE: | |||
Deposits | 20,642 | 12,273 | 11,105 |
FHLB advances | 5,636 | 1,908 | 953 |
Other borrowings | 245 | 317 | 310 |
Junior subordinated debentures | 6,136 | 4,752 | 4,040 |
Total interest expense | 32,659 | 19,250 | 16,408 |
Net interest income before provision for loan losses | 430,973 | 393,034 | 375,069 |
PROVISION FOR LOAN LOSSES | 8,500 | 8,000 | 6,030 |
Net interest income | 422,473 | 385,034 | 369,039 |
NON-INTEREST INCOME | |||
Total Deposit Fees and Other Service Charges | 48,074 | 43,452 | 41,911 |
Bank Owned Life Insurance Income | 4,505 | 4,618 | 4,538 |
Miscellaneous | 7,148 | 8,985 | 6,001 |
Other operating income | 81,070 | 77,935 | 78,002 |
Net (loss) gain on sale of securities | (837) | (2,080) | 843 |
Net change in valuation of financial instruments carried at fair value | 3,775 | (2,844) | (2,620) |
Gain on sale of branches, including related loans and deposits | 0 | 12,189 | 0 |
Total non-interest income | 84,008 | 85,200 | 76,225 |
NON-INTEREST EXPENSE: | |||
Income before provision for income taxes | 165,110 | 151,264 | 129,640 |
PROVISION FOR INCOME TAXES | 28,595 | 90,488 | 44,255 |
NET INCOME | 136,515 | 60,776 | 85,385 |
Salary and employee benefits | 202,613 | 192,096 | 180,883 |
Less capitalized loan origination costs | (17,925) | (17,379) | (18,895) |
Occupancy and equipment | 49,215 | 47,866 | 45,000 |
Information/computer data services | 18,823 | 17,245 | 19,281 |
Payment and card processing expenses | 15,412 | 14,330 | 14,359 |
Professional and legal expenses | 17,945 | 17,534 | 8,120 |
Advertising and marketing | 8,346 | 8,637 | 9,709 |
Deposit insurance | 4,446 | 4,689 | 4,551 |
State/municipal business and use taxes | 3,284 | 2,594 | 3,516 |
REO operations | 804 | (2,030) | 175 |
Amortization of core deposit intangibles | 6,047 | 6,246 | 7,061 |
Miscellaneous | 26,754 | 27,142 | 30,131 |
Total other operating expense, before acquisition related costs | 335,764 | 318,970 | 303,891 |
Acquisition related costs | 5,607 | 0 | 11,733 |
Total non-interest expense | $ 341,371 | $ 318,970 | $ 315,624 |
Earnings per common share | |||
Basic (in dollars per share) | $ 4.16 | $ 1.85 | $ 2.52 |
Diluted (in dollars per share) | 4.15 | 1.84 | 2.52 |
Cumulative dividends declared per common share (in dollars per share) | $ 1.96 | $ 2 | $ 0.88 |
Weighted average number of common shares outstanding: | |||
Basic | 32,784,724 | 32,888,007 | 33,820,148 |
Diluted | 32,894,425 | 32,986,707 | 33,853,511 |
Mortgage Banking [Member] | |||
NON-INTEREST INCOME | |||
Mortgage banking operations | $ 21,343 | $ 20,880 | $ 25,552 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 136,515 | $ 60,776 | $ 85,385 |
Unrealized holding loss on securities—available-for-sale arising during the period | (6,547) | (3,318) | (3,940) |
Reclassification for net losses (gains) on securities—available-for-sale realized in earnings | 839 | 2,109 | (311) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (15,384) | 0 | 0 |
Other Comprehensive Income (Loss), Tax | 5,028 | 423 | 1,526 |
OTHER COMPREHENSIVE LOSS, NET OF INCOME TAXES: | |||
Other comprehensive loss | (16,064) | (786) | (2,725) |
COMPREHENSIVE INCOME | $ 120,451 | $ 59,990 | $ 82,660 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning of the period at Dec. 31, 2015 | $ 1,300,059 | $ 1,261,174 | $ 39,615 | $ (730) | |
Balance, beginning of the period, shares at Dec. 31, 2015 | 34,242,255 | ||||
Net income | 85,385 | 85,385 | |||
Other comprehensive income (loss) | (2,725) | (2,725) | |||
Accrual of dividends on common stock | (29,672) | (29,672) | |||
Stock Repurchased and Retired During Period, Shares | 1,145,250 | ||||
Cash paid for repurchase of common stock | (50,772) | (50,772) | |||
Amortization of share-based compensation related to restricted stock grants, net of shares surrendered | 3,401 | 3,401 | |||
Issuance of unvested restricted common stock, net, shares | 96,382 | ||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 34 | ||||
Balance, end of the period, shares at Dec. 31, 2016 | 33,193,387 | ||||
Balance, end of the period at Dec. 31, 2016 | 1,305,710 | 1,213,837 | 95,328 | (3,455) | |
Net income | 60,776 | 60,776 | |||
Other comprehensive income (loss) | (786) | (786) | |||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | 0 | 795 | (795) | ||
Accrual of dividends on common stock | (66,364) | (66,364) | |||
Stock Repurchased and Retired During Period, Shares | 545,166 | ||||
Cash paid for repurchase of common stock | (31,045) | (31,045) | |||
Amortization of share-based compensation related to restricted stock grants, net of shares surrendered | 4,335 | 4,335 | |||
Issuance of unvested restricted common stock, net, shares | 78,264 | ||||
Balance, end of the period, shares at Dec. 31, 2017 | 32,726,485 | ||||
Balance, end of the period at Dec. 31, 2017 | 1,272,626 | 1,187,127 | 90,535 | (5,036) | |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax and Reclassification Adjustment | 0 | (28,204) | 28,204 | ||
Net income | 136,515 | 136,515 | |||
Other comprehensive income (loss) | (16,064) | (16,064) | |||
Accrual of dividends on common stock | (64,791) | 64,791 | |||
Stock Repurchased and Retired During Period, Shares | 594,711 | ||||
Cash paid for repurchase of common stock | (34,401) | (34,401) | |||
Amortization of share-based compensation related to restricted stock grants, net of shares surrendered | 5,001 | 5,001 | |||
Issuance of unvested restricted common stock, net, shares | (57,073) | ||||
Stock Issued During Period, Value, Acquisitions | 179,709 | ||||
Stock Issued During Period, Shares, Acquisitions | 3,108,071 | ||||
Balance, end of the period, shares at Dec. 31, 2018 | 35,182,772 | ||||
Balance, end of the period at Dec. 31, 2018 | $ 1,478,595 | $ 1,337,436 | $ 134,055 | $ 7,104 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Accrual of dividends on common share (dollars per share) | $ 0.38 | $ 0.38 | $ 0.85 | $ 0.35 | $ 0.25 | $ 0.25 | $ 1.25 | $ 0.25 | $ 0.23 | $ 0.23 | $ 0.21 | $ 0.21 | $ 1.96 | $ 2 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES: | |||
Net income | $ 136,515 | $ 60,776 | $ 85,385 |
Adjustments to reconcile net income to net cash provided from (used by) operating activities: | |||
Depreciation | 15,232 | 14,701 | 13,464 |
Deferred income and expense, net of amortization | (6,571) | 1,972 | (1,323) |
Amortization of core deposit intangibles | 6,047 | 6,246 | 7,061 |
Loss (gain) on sale of securities, net | 837 | 2,080 | (843) |
Net change in valuation of financial instruments carried at fair value | (3,775) | 2,844 | 2,620 |
Purchases of securities—trading | 0 | 0 | (1,725) |
Proceeds from sales of securities—trading | 0 | 1,258 | 7,839 |
Principal repayments and maturities of securities—trading | 100 | 1,849 | 3,746 |
Gain (Loss) on Sale of Branches, including loans and deposits | 0 | 12,189 | 0 |
(Increase) decrease in deferred taxes | (3,498) | 56,267 | 7,883 |
Increase (decrease) in current taxes payable | 3,938 | (2,965) | (2,184) |
Equity-based compensation | 6,554 | 5,965 | 4,305 |
Increase in cash surrender value of BOLI | (4,471) | (4,057) | (4,507) |
Gain on sale of loans, net of capitalized servicing rights | (15,066) | (15,225) | (17,713) |
Gain on disposal of real estate held for sale and property and equipment | (833) | (4,295) | (1,389) |
PROVISION FOR LOAN LOSSES | 8,500 | 8,000 | 6,030 |
Provision for real estate held for sale | 387 | 256 | 876 |
Origination of loans held for sale | (896,461) | (807,137) | (1,063,328) |
Proceeds from sales of loans held for sale | 781,879 | 1,027,989 | 880,890 |
Net change in: | |||
Other assets | (15,861) | 2,546 | 3,759 |
Other liabilities | 17,322 | (179) | (6,664) |
Net cash provided from (used by) operating activities | 30,775 | 346,702 | (75,818) |
INVESTING ACTIVITIES: | |||
Purchases of securities—available-for-sale | (913,951) | (838,247) | (243,115) |
Principal repayments and maturities of securities—available-for-sale | 173,454 | 187,080 | 191,534 |
Proceeds from sales of securities—available-for-sale | 214,609 | 522,564 | 369,755 |
Purchases of securities—held-to-maturity | (9,612) | (6,490) | (60,344) |
Principal repayments and maturities of securities—held-to-maturity | 33,152 | 11,817 | 11,009 |
Loan originations, net of repayments | (416,218) | (288,951) | (75,922) |
Purchases of loans and participating interest in loans | (33,680) | (126,508) | (235,527) |
Proceeds from sales of other loans | 9,853 | 21,923 | 184,525 |
Proceeds from Divestiture of Businesses | (1,574) | ||
Net cash (paid) received from acquisitions and branch divestitures | 113,222 | 0 | |
Purchases of property and equipment | (23,094) | (12,244) | (16,239) |
Proceeds from Sale of Property, Plant, and Equipment | 7,768 | 20,121 | 14,513 |
Proceeds from FHLB stock repurchase program | 143,175 | 118,304 | 80,681 |
Purchase of FHLB stock | (163,683) | (116,132) | (77,130) |
Other | 3,583 | 254 | 2,707 |
Net cash (used by) provided from investing activities | (976,218) | (393,287) | 146,447 |
FINANCING ACTIVITIES: | |||
Increase in deposits, net | 503,814 | 222,334 | 66,346 |
Repayment of long term FHLB borrowing | (10) | (9) | (95,009) |
Advances, net of (repayments) of overnight and short-term FHLB borrowings | 540,000 | (54,000) | 16,400 |
Increase (decrease) in other borrowings, net | 7,870 | (9,825) | 7,360 |
Cash dividends paid | (59,280) | (65,759) | (28,282) |
Cash paid for repurchase of common stock | (34,401) | (31,045) | (50,772) |
Payments Related to Tax Withholding for Share-based Compensation | 1,554 | 1,630 | 870 |
Net cash provided from (used by) financing activities | 956,439 | 60,066 | (84,827) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 10,996 | 13,481 | (14,198) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 261,200 | 247,719 | 261,917 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 272,196 | 261,200 | 247,719 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid in cash | 28,098 | 18,875 | 16,722 |
Taxes paid in cash | 21,664 | 35,500 | 36,153 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||
Loans, net of discounts, specific loss allowances and unearned income, transferred to real estate owned and other repossessed assets | 1,645 | 10 | 9,146 |
Dividends accrued but not paid until after period end | 13,778 | 8,226 | 7,662 |
ACQUISITIONS (DISPOSITIONS): | |||
Assets Disposed | 915,821 | ||
Assets acquired (disposed) | (259,398) | 0 | |
Liabilities Transfered | $ 832,278 | ||
Liabilities assumed (transferred) | $ (160,465) | $ 0 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Banner Corporation (Banner or the Company) is a bank holding company incorporated in the State of Washington. The Company is primarily engaged in the business of planning, directing and coordinating the business activities of two wholly-owned subsidiaries, Banner Bank and Islanders Bank. Banner Bank is a Washington-chartered commercial bank that conducts business from its headquarters in Walla Walla, Washington and, as of December 31, 2018 , its 179 branch offices located in Washington, Oregon, California and Idaho. Banner Bank also has 17 loan production offices located in Washington, Oregon, California, Idaho and Utah. Islanders Bank is also a Washington-chartered commercial bank that conducts business from three locations in San Juan County, Washington. Banner Corporation is subject to regulation by the Board of Governors of the Federal Reserve System (Federal Reserve Board). Banner Bank and Islanders Bank (the Banks) are subject to regulation by the Washington State Department of Financial Institutions, Division of Banks (DFI) and the Federal Deposit Insurance Corporation (the FDIC). The Company’s operating results depend primarily on its net interest income, which is the difference between interest income on interest-earning assets, consisting of loans and investment securities, and interest expense on interest-bearing liabilities, composed primarily of customer deposits, FHLB advances, other borrowings and junior subordinated debentures. Net income also is affected by the level of the Company’s non-interest income, including deposit fees and other service charges, gains and losses on the sale of securities, results of mortgage banking operations, which includes loan origination and servicing fees and gains and losses on the sale of loans, as well as non-interest expense, provisions for loan losses and income tax provisions. In addition, net income is affected by the net change in the value of certain financial instruments carried at fair value. Basis of Presentation and Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions, profits and balances have been eliminated. The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and under the rules and regulations of the U.S. Securities and Exchange Commission (the SEC). At December 31, 2018 , the Company had nine wholly-owned subsidiary grantor trusts (the Trusts), which issued trust preferred securities and related common securities of the trusts. The Trust subsidiaries are not included in the Company’s consolidated financial statements. Subsequent Events: The Company has evaluated events and transactions subsequent to December 31, 2018 for potential recognition or disclosure. Cash and Cash Equivalents: Cash and cash equivalents include cash and due from banks and temporary investments which are federal funds sold and interest bearing balances due from other banks. Cash and cash equivalents generally have maturities of three months or less at the date of purchase. Business Combinations: Business combinations are accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed, both tangible and intangible, and consideration exchanged are recorded at acquisition date fair values. The excess purchase consideration over fair value of net assets acquired is recorded as goodwill. In the event that the fair value of net assets acquired exceeds the purchase price, including fair value of liabilities assumed, a bargain purchase gain is recorded on that acquisition. Expenses incurred in connection with a business combination are expensed as incurred, except for those items permitted to be capitalized under other GAAP. Changes in deferred tax asset valuation allowances related to acquired tax uncertainties are recognized in net income after the measurement period. Use of Estimates: In the opinion of management, the accompanying consolidated statements of financial condition and related consolidated statements of operations, comprehensive income, changes in shareholders’ equity and cash flows reflect all adjustments (which include reclassification and normal recurring adjustments) that are necessary for a fair presentation in conformity with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, management has identified several accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to an understanding of Banner’s financial statements. These policies relate to (i) the methodology for the recognition of interest income, (ii) determination of the provision and allowance for loan and lease losses, (iii) the valuation of financial assets and liabilities measured at fair value, including other-than-temporary impairment (OTTI) losses, (iv) the valuation of intangible assets, such as goodwill, core deposit intangibles (CDI) and mortgage servicing rights, (v) the valuation of real estate held for sale, (vi) the valuation or recognition of deferred tax assets and liabilities and (vii) the valuation of assets and liabilities acquired in business combinations and subsequent recognition of related income and expense. These policies and judgments, estimates and assumptions are described in greater detail in subsequent Notes to the Consolidated Financial Statements. Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the factual circumstances at the time. However, given the sensitivity of the financial statements to these critical accounting policies, the use of other judgments, estimates and assumptions could result in material differences in the Company’s results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a material impact on these estimates and the Company’s financial condition and operating results in future periods. Securities: Debt securities are classified as held-to-maturity when the Company has the ability and positive intent to hold them to maturity. Debt securities classified as available-for-sale are available for future liquidity requirements and may be sold prior to maturity. Debt securities classified as trading are also available for future liquidity requirements and may be sold prior to maturity. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Debt securities classified as held-to-maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts to maturity and, if appropriate, any other-than-temporary impairment losses. Debt securities classified as available-for-sale are measured at fair value. Unrealized holding gains and losses on debt securities classified as available-for-sale are excluded from earnings and are reported net of tax as accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity, until realized. Debt securities classified as trading are also measured at fair value. Unrealized holding gains and losses on securities classified as trading are included in earnings. (See Note 18 for a more complete discussion of accounting for the fair value of financial instruments.) Declines in the fair value of debt securities below their cost that are deemed to be other-than-temporary are recognized in earnings as realized losses. Realized gains and losses on sale are computed on the specific identification method and are included in earnings on the trade date sold. Beginning January 1, 2018, equity securities were required to be measured at fair value with changes in the fair value recognized through net income. Prior to January 1, 2018 the Company had classified its equity securities as available-for-sale, subsequent to this date equity securities are reported in other assets. The Company reviews investment securities on an ongoing basis for the presence of OTTI or permanent impairment, taking into consideration current market conditions, fair value in relationship to cost, extent and nature of the change in fair value, issuer rating changes and trends, whether the Company intends to sell a security or if it is likely that it will be required to sell the security before recovery of the amortized cost basis of the investment, which may be maturity, and other factors. For debt securities, if the Company intends to sell the security or it is likely that the Company will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is not likely that the Company will be required to sell the security but the Company does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to AOCI. Impairment losses related to all other factors are presented as separate categories within AOCI. For debt securities transferred from held-to-maturity to available-for-sale, unrealized gains or losses from the time of transfer are accreted or amortized over the remaining life of the debt security based on the amount and timing of future estimated cash flows. The accretion or amortization of the amount recorded in AOCI increases the carrying value of the investment and does not affect earnings. Investment in FHLB Stock: At December 31, 2018 , the Banks had $32.0 million in FHLB of Des Moines stock (FHLB stock), compared to $10.3 million at December 31, 2017 . FHLB stock does not have a readily determinable fair value. The Banks' investments in FHLB stock is carried at cost or par value ( $100 per share) adjusted for observable changes in market prices minus impairment. Ownership of FHLB stock is restricted to the FHLB and member institutions and can only be purchased and redeemed at par, therefore they has been no observable changes in market prices. As members of the FHLB system, the Banks are required to maintain a minimum level of investment in FHLB stock based on specific percentages of their outstanding FHLB advances. Management periodically evaluates FHLB stock for impairment. Management's determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB, and (4) the liquidity position of the FHLB. The Company has determined there is no impairment on the FHLB stock investment as of December 31, 2018 . Loans Receivable: The Banks originate residential one- to four-family and multifamily mortgage loans for both portfolio investment and sale in the secondary market. The Banks also originate construction and land development, commercial real estate, commercial business, agricultural and consumer loans for portfolio investment. Loans receivable not designated as held for sale are recorded at the principal amount outstanding, net of allowance for loan losses, deferred fees, discounts and premiums. Premiums, discounts and deferred loan fees are amortized to maturity using the level-yield methodology. Some of the Company’s loans are reported as troubled debt restructures (TDRs). Loans are reported as TDRs when the Banks grant a concession(s) to a borrower experiencing financial difficulties that it would not otherwise consider. Examples of such concessions include forgiveness of principal or accrued interest, extending the maturity date(s) or providing a lower interest rate than would be normally available for a transaction of similar risk. As a result of these concessions, loans identified as TDRs are impaired as the Banks will not collect all amounts due, both principal and interest, in accordance with the terms of the original loan agreement. TDRs are accounted for in accordance with the Banks’ impaired loan accounting policies. Loans Held for Sale . Residential one- to four-family and multifamily mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Residential one- to four-family loans under best effort delivery commitments are carried at the lower of aggregate cost or estimated market value. Residential one- to four-family loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the economic hedges on the loans. Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. During 2017, the Company elected fair value accounting on newly originated multifamily held-for-sale loans in order to match changes in the value of the loans with the value of the economic hedges on the loans; as a result, multifamily held-for-sale loans are carried at fair value as of December 31, 2017 and December 31, 2018 . Fair values for multifamily loans held for sale are calculated based on discounted cash flows using a discount rate that is a combination of market spreads for similar loan types added to selected index rates. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Non-refundable fees and direct loan origination costs related to loans held for sale are recognized as part of the cost basis of the loan. Gains and losses on sales of loans held for sale are determined using the specific identification method and are recorded in the mortgage banking operations component of non-interest income . Acquired Loans: Purchased loans, including loans acquired in business combinations, are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired or purchased non-credit-impaired. Purchased credit-impaired (PCI) loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The excess of the cash flows expected to be collected over a PCI pool's carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the pool using the effective yield method. The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents the Company's estimate of the credit losses expected to occur and was considered in determining the fair value of the loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at the purchase date are adjusted through a change to the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. For purchased non-credit-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loans. Any subsequent deterioration in credit quality is recognized by recording a provision for loan losses. Income Recognition on Nonaccrual and Impaired Loans and Securities: Interest on loans and securities is accrued as earned unless management doubts the collectability of the asset or the unpaid interest. Interest accruals on loans are generally discontinued when loans become 90 days past due for payment of interest or principal and the loans are then placed on nonaccrual status. All previously accrued but uncollected interest is deducted from interest income upon transfer to nonaccrual status. For any future payments collected, interest income is recognized only upon management’s assessment that there is a strong likelihood that the full amount of a loan will be repaid or recovered. A loan may be put on nonaccrual status sooner than this policy would dictate if, in management’s judgment, the interest may be uncollectable. While less common, similar interest reversal and nonaccrual treatment is applied to investment securities if their ultimate collectability becomes questionable. Provision and Allowance for Loan Losses: The provision for loan losses reflects the amount required to maintain the allowance for loan losses at an appropriate level based upon management’s evaluation of the adequacy of general and specific loss reserves. The Company maintains an allowance for loan losses consistent in all material respects with GAAP. The Company has established systematic methodologies for the determination of the adequacy of the Company’s allowance for loan losses. The methodologies are set forth in a formal policy and take into consideration the need for a general valuation allowance as well as specific allowances that are tied to individual problem loans. The Company increases its allowance for loan losses by charging provisions for probable loan losses against its income and values impaired loans consistent with accounting guidelines. The allowance for loan losses is maintained at a level sufficient to provide for estimated losses based on evaluating known and inherent risks in the loan portfolio and upon the Company’s continuing analysis of the factors underlying the quality of the loan portfolio. These factors include, among others, changes in the size and composition of the loan portfolio, delinquency rates, actual loan loss experience, current economic conditions, detailed analysis of individual loans for which full collectability may not be assured, and determination of the existence and realizable value of the collateral and guarantees securing the loans. Realized losses related to specific assets are applied as a reduction of the carrying value of the assets and charged immediately against the allowance for loan loss reserve. Recoveries on previously charged off loans are credited to the allowance for loan losses. The reserve is based upon factors and trends identified by Banner at the time financial statements are prepared. Although the Company uses the best information available, future adjustments to the allowance for loan losses may be necessary due to economic, operating, regulatory and other conditions beyond the Company’s control. The adequacy of general and specific reserves is based on a continuing evaluation of the pertinent factors underlying the quality of the loan portfolio as well as individual review of certain large balance loans. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Loans that are collectively evaluated for impairment include residential real estate and consumer loans and, as appropriate, smaller balance non-homogeneous loans. Larger balance non-homogeneous residential construction and land, commercial real estate, commercial business loans and unsecured loans are individually evaluated for impairment. Loans are considered impaired when, based on current information and events, the Company determines that it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors involved in determining impairment include, but are not limited to, the financial condition of the borrower and the value of the underlying collateral. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price, or if the loan is collateral dependent, at the fair value of collateral less selling costs. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. The Company’s methodology for assessing the appropriateness of the allowance for loan losses consists of several key elements, which include specific allowances, an allocated formula allowance and an unallocated allowance. Losses on specific loans are provided for when the losses are probable and estimable. General loan loss reserves are established to provide for inherent loan portfolio risks not specifically provided for. The level of general reserves is based on analysis of potential exposures existing in the loan portfolio including evaluation of historical trends, current market conditions and other relevant factors identified by us at the time the financial statements are prepared. The formula allowance is calculated by applying loss factors to outstanding loans, excluding those loans that are subject to individual analysis for specific allowances. Loss factors are based on the Company’s historical loss experience adjusted for significant environmental considerations, including the experience of other banking organizations, which in the judgment of management affects the collectability of the loan portfolio as of the evaluation date. The unallocated allowance is based upon the Company’s evaluation of various factors that are not directly measured in the determination of the formula and specific allowances. While the Company believes the estimates and assumptions used in the determination of the adequacy of the allowance for loan losses are reasonable, there can be no assurance that such estimates and assumptions will not be proved incorrect in the future, or that the actual amount of future provisions will not exceed the amount of past provisions or that any increased provisions that may be required will not adversely impact the financial condition and results of operations of the Company. In addition, the determination of the amount of the allowance for loan losses is subject to review by bank regulators as part of the routine examination process, which may result in the adjustment of reserves based upon their judgment of information available to them at the time of their examination. Loan Origination and Commitment Fees: Loan origination fees, net of certain specifically defined direct loan origination costs, are deferred and recognized as an adjustment of the loans’ interest yield using the level-yield method over the contractual term of each loan adjusted for actual loan prepayment experience. Net deferred fees or costs related to loans held for sale are recognized as part of the cost basis of the loan. Loan commitment fees are deferred until the expiration of the commitment period unless management believes there is a remote likelihood that the underlying commitment will be exercised, in which case the fees are amortized to fee income using the straight-line method over the commitment period. If a loan commitment is exercised, the deferred commitment fee is accounted for in the same manner as a loan origination fee. Deferred commitment fees associated with expired commitments are recognized as fee income. Reserve for Unfunded Commitments: A reserve for unfunded commitments is maintained at a level that, in the opinion of management, is adequate to absorb probable losses associated with the Banks' commitments to lend funds under existing agreements such as letters or lines of credit. Management determines the adequacy of the reserve for unfunded commitments based upon reviews of individual credit facilities, current economic conditions, the risk characteristics of the various categories of commitments and other relevant factors. The reserve is based on estimates and ultimate losses may vary from the current estimates. These estimates are evaluated on a regular basis and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Draws on unfunded commitments that are considered uncollectible at the time funds are advanced are charged to the allowance for loan losses. Provisions for unfunded commitment losses are recognized in non-interest expense and added to the reserve for unfunded commitments, which is included in other liabilities. Real Estate Owned: Property acquired by foreclosure or deed in lieu of foreclosure is initially recorded at the estimated fair value of the property, less expected selling costs. Development and improvement costs relating to the property are capitalized while direct holding costs are expensed. The carrying value of the property is periodically evaluated by management and, if necessary, allowances are established to reduce the carrying value to net realizable value. Gains or losses at the time the property is sold are charged or credited to operations in the period in which they are realized. The amounts the Banks will ultimately recover from real estate held for sale may differ substantially from the carrying value of the assets because of market factors beyond the Banks’ control or because of changes in the Banks’ strategies for recovering the investment. Property and Equipment: Property and equipment is carried at cost less accumulated depreciation. Depreciation is based upon the straight-line method applied to individual assets and groups of assets acquired in the same year over the lesser of their estimated useful lives or the related lease terms of the assets: Buildings and leased improvements 10–39 years Furniture and equipment 3 – 10 years Routine maintenance, repairs and replacement costs are expensed as incurred. Expenditures which significantly increase values or extend useful lives are capitalized. The Company reviews buildings, leasehold improvements and equipment for impairment whenever events or changes in circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. Property is classified as held for sale when the Company commits to plan to sale the property and is actively marketing the property for sale. Held for sale property is recorded at the lower of the estimated fair value of the property, less expected selling costs, or the book value at the date the property is transferred to held for sale. Depreciation is not recorded on held for sale property. Goodwill: Goodwill represents the excess of the purchase consideration over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, or more frequently as current circumstances and conditions warrant, for impairment. The Company completes is annual review of goodwill as of December 31. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment test is used to identify the existence of impairment and the amount of impairment loss and compares the reporting unit's estimated fair value, including goodwill, to its carrying amount. If the fair value exceeds the carrying amount then goodwill is not considered impaired. If the carrying amount exceeds its fair value, an impairment loss would be recognized equal to the amount of excess, limited to the amount of total goodwill allocated to that reporting unit. The impairment loss would be recognized as a charge to earnings. The disposal of a portion of a reporting unit that meets the definition of a business requires goodwill to be allocated for purposes of determining the gain or loss on disposal. Since the sale of the Utah branches in 2017 met the definition of a business, goodwill was allocated to the sale based on the fair value of the Utah branches compared to the relative fair value of the reporting unit. Other Intangible Assets: Other intangible assets consist primarily of core deposit intangibles (CDI), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the customer relationships associated with the deposits. CDI is being amortized on an accelerated basis over a weighted average estimated useful life of three to ten years. These assets are reviewed at least annually for events or circumstances that could impact their recoverability. These events could include loss of the underlying core deposits, increased competition or adverse changes in the economy. To the extent other identifiable intangible assets are deemed unrecoverable, impairment losses are recorded in other non-interest expense to reduce the carrying amount of the assets. Other intangibles also include favorable leasehold intangibles (LHI). LHI represents the value assigned to leases assumed in an acquisition in which the lease terms are favorable compared to a market lease at the date of acquisition. LHI is amortized over the underlying lease term and is reviewed at least annually for events or circumstances that could impair the value. Mortgage Servicing Rights: Servicing assets are recognized as separate assets when rights are acquired through purchase or sale of loans. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans, the value of the servicing right is estimated and capitalized. Fair values are estimated based on an independent dealer analysis of discounted cash flows. Capitalized servicing rights are reported in other assets and are amortized into mortgage banking operations in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics for the underlying loans, such as interest rate, balance outstanding, loan type, age and remaining term, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans and is reflected in mortgage banking operations on the Consolidated Statements of Operations. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is |
ACCOUNTING STANDARDS RECENTLY A
ACCOUNTING STANDARDS RECENTLY ADOPTED OR ISSUED | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS RECENTLY ADOPTED OR ISSUED | ACCOUNTING STANDARDS RECENTLY ISSUED OR ADOPTED Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers , which creates Topic 606 and supersedes Topic 605, Revenue Recognition . Subsequent to the issuance of ASU 2014-09, FASB issued ASU 2016-10 in April 2016 and issued ASU 2016-12 in May 2016. Both of these ASUs amend or clarify aspects of Topic 606. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The Company adopted Topic 606 on January 1, 2018 using the full retrospective method, meaning the standard is applied to all periods presented in the financial statements with the cumulative effect of initially applying the standard recognized at the beginning of the earliest period presented. In adopting Topic 606, the Company applied the following five steps in determining the correct treatment for the applicable revenue streams: 1. Identify the contract with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to performance obligations in the contract, and 5. Recognize revenue when or as the Company satisfies the performance obligation. The majority of the Company’s revenue streams including interest income, deferred loan fee accretion, premium/discount accretion, gains on sales of loans and investments, loan servicing income and other loan fee income are outside the scope of Topic 606. Revenue streams reported as deposit fees and other service charges include transaction based deposit fees, non-transaction based deposit fees, interchange fees on credit and debit cards and merchant service fees which are within the scope of Topic 606. The Company applied the requirements of Topic 606 to the revenue streams that are within its scope. The adoption of Topic 606 did not result in any changes in either the timing or amount of recognized revenue in prior periods by the Company; however, the presentation of certain costs associated with our merchant services are offset against deposit fees and other service charges in non-interest income. The Company previously recognized payment network related fees that were collected by the Company and passed through to another party related to its merchant services as non-interest expense. The change in presentation resulted in $7.8 million of expenses for the year ended December 31, 2018 being netted against deposit fees and other services charges and reported in non-interest income instead of as payment and card processing expenses in non-interest expense. In addition, to conform to the current period presentation, $8.3 million of merchant services related expenses for the year ended December 31, 2017, and $7.2 million of merchant services related expenses for the year ended December 31, 2016, were reclassified from payment and card processing expense in non-interest expense to being netted against deposit fees and other service charges in non-interest income. The Company elected to apply the practical expedient and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Company to expense costs related to obtaining a contract as incurred when the amortization period would have been one year or less. The following table presents the impact of adopting of the new revenue standard on our Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 (in thousands): For the year ended December 31, 2018 For the year ended December 31, 2017 For the year ended December 31, 2016 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: Deposit fees and other service charges $ 48,074 $ 55,841 $ (7,767 ) $ 43,452 $ 51,787 $ (8,335 ) $ 41,911 $ 49,156 $ (7,245 ) Non-interest expense: Payment and card processing expenses $ 15,412 $ 23,179 $ (7,767 ) $ 14,330 $ 22,665 $ (8,335 ) $ 14,359 $ 21,604 $ (7,245 ) Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASU require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value under certain circumstances and require enhanced disclosures about those investments. This ASU simplifies the impairment assessment of equity investments without readily determinable fair values. This ASU also eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The amendments in this ASU require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this ASU require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. The Company adopted this ASU on January 1, 2018. The adoption of this ASU resulted in the Company reclassifying $28.1 million from retained earnings to AOCI for the cumulative fair value adjustments on its junior subordinated debentures related to instrument specific credit risk. During the year ended December 31, 2018, the Company recorded a $11.7 million , net of tax, reduction in other comprehensive income (loss) for the change in instrument specific credit risk on its junior subordinated debentures. Prior to the adoption of this ASU this amount would have been recorded in the Consolidated Statement of Operations. In addition, as a result of adopting this ASU the Company recorded a $137,000 reduction in retained earnings representing the unrealized loss on available for sale equity securities at the date of adoption. Any future changes in fair value on equity securities will be recorded in the Consolidated Statement of Operations. During the year ended December 31, 2018, the Company recorded a $5,000 gain for the increase in fair value of its equity securities as a component of the net change in financial instruments carried at fair value in the Consolidated Statement of Operations. At December 31, 2018, the Company held $352,000 of equity investment securities which were previously reported as available-for-sale securities and are now reported in other assets. In addition, the adoption of this ASU resulted in changing how the Company estimates the fair value of portfolio loans for disclosure purposes. Fair values are estimated first by stratifying the portfolios of loans with similar financial characteristics. Loans are segregated by type such as multifamily real estate, residential mortgage, nonresidential mortgage, commercial/agricultural, consumer and other. Each loan category is further segmented into fixed- and adjustable-rate interest terms. An estimate of fair value is then calculated based on discounted cash flows using as a discount rate based on the current rate offered on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans, as well as a quarterly loss rate based on historical losses to arrive at an estimated exit price fair value. Fair value for impaired loans is also based on recent appraisals or estimated cash flows discounted using rates commensurate with risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. In February 2018, FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASU do not change the core principle of the guidance in Subtopic 825-10. Rather, the amendments in this ASU clarify the application of the guidance regarding the fair value measurement of equity securities without readily determinable fair value. The Company adopted this ASU upon its issuance. The impact of the Company's adoption of this ASU is described in the preceding paragraph. Leases (Topic 842) In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this ASU require lessees to recognize the following for all leases (with the exception of short-term) at the commencement date; a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU leave lessor accounting largely unchanged, although certain targeted improvements were made to align lessor accounting with the lessee accounting model. This ASU simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, and entities are required to use a modified retrospective approach for leases. The Company adopted the new guidance effective January 1, 2019. The Company elected the transition option provided in ASU No. 2018-11 and applied the modified retrospective approach. The Company also elected certain relief options for practical expedients: the option to not separate lease and non-lease components and instead to account for them as a single lease component, and the option to not recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e. leases terms of twelve months or less). The Company has 113 real property leases under non-cancelable operating leases, the majority of which will be subject to this ASU that will result in the recognition of right-of-use assets and lease liabilities. All of the Company’s equipment is owned or on short-term leases. The Company implemented a third party software solution to meet the new requirements of this ASU. The Company compiled a complete inventory of arrangements containing leases and analyzed the lease data necessary to meet the new requirements and has entered the leases into the new leasing software solution. In connection with the adoption of this ASU, as of January 1, 2019, the Company recorded a $51 million right of use asset and a $53 million lease liability on its Consolidated Statements of Financial Condition. In July 2018, FASB issued ASU No. 2018-11, Targeted Improvements . The amendments in this ASU provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). In addition, the amendments in this ASU provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606). The amendments of this ASU became effective for the Company on January 1, 2019. Derivatives and Hedging (Topic 815) In August 2017, FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU are intended to provide investors better insight to an entity's risk management hedging strategies by permitting a company to recognize the economic results of its hedging strategies in its financial statements. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The Company adopted this ASU effective January 1, 2019. The adoption of this ASU did not have a material impact on the Company's Consolidated Financial Statements. In October 2018, FASB issued ASU No. 2018-16, Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting . In the United States, eligible benchmark interest rates under Topic 815 are interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate (LIBOR) swap rate, and the Overnight Index Swap Rate based on the Fed Funds Effective Rate. ASU 2017-12 introduced the Securities Industry and Financial Markets Association Municipal Swap Rate as the fourth permissible U.S. benchmark rate. ASU 2018-16 adds the OIS rate based on SOFR as a U.S. benchmark interest rate to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate hedging strategies for both risk management and hedge accounting purposes. The Company adopted amendments in this ASU effective concurrently with its adoption of ASU 2017-12, effective January 1, 2019. Adoption of ASU 2018-16 did not have a material impact on the Company's Consolidated Financial Statements. Financial Instruments—Credit Losses (Topic 326) In June 2016, FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments . Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial asset not excluded from the scope that have the contractual right to receive cash. The ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This ASU broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. This ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is still evaluating the effects this ASU will have on the Company’s Consolidated Financial Statements. The Company has formed an internal committee to oversee the project, engaged a third-party vendor to assist with the project and has completed its gap analysis phase of the project. In addition, the Company has selected a second third-party vendor to assist with building and developing the required models and has completed the initial build out of the required models. The Company is evaluating different third party alternatives for providing a reasonable a supportable forecast. Once a source for the forecast has been selected, the Company will begin to add a reasonable and supportable forecast and qualitative factors into the models. Upon adoption, the Company expects changes in the processes and procedures used to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The new guidance may result in an increase in the allowance for loan losses which will also reflect the new requirement to include the nonaccretable principal differences on purchased credit-impaired loans; however, the Company is still in the process of determining the magnitude of the change and its impact on the Consolidated Financial Statements. In addition, the current accounting policy and procedures for other-than-temporary impairment on investment securities available-for-sale will be replaced with an allowance approach. Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities . This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the ASU requires the premium to be amortized to the earliest call date. Under current GAAP, premiums and discounts on callable debt securities generally are amortized to the maturity date. The ASU does not require an accounting change for securities held at a discount; the discount continues to be amortized to the maturity date. This ASU more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. The Company adopted this ASU effective January 1, 2019. The adoption of this ASU did not have a material impact on the Company's Consolidated Financial Statements. Income Statement - Reporting Comprehensive Income (Topic 220) In February 2018, FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from AOCI to retained earnings for the stranded tax effects on available-for-sale securities resulting from the 2017 Tax Act. The ASU eliminates the stranded tax effects resulting from the 2017 Tax Act and improves the usefulness of information reported to financial statement users. The ASU also requires certain disclosures about the stranded tax effects. This ASU is effective for all entities for fiscal years beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the federal corporate tax rate is recognized. The Company elected to early adopt this ASU and to reclassify $795,000 of stranded tax effects from AOCI to retained earnings in the fourth quarter of 2017. Income Taxes (Topic 740) In March 2018, FASB issued ASU No. 2018-05, Income Taxes (Topic 740). This ASU was issued to provide guidance on the income tax accounting implications of the 2017 Tax Act and allows entities to report provisional amounts for specific income tax effects of the Act for which the accounting under ASC Topic 740 was not yet complete but a reasonable estimate could be determined. A measurement period of one year is allowed to complete the accounting effects under ASC Topic 740 and revise any previous estimates reported. Any provisional amounts or subsequent adjustments included in an entity’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense in the reporting period the amounts are determined. The Company adopted this ASU with the provisional adjustments as reported in the Consolidated Financial Statements in the 2017 Form 10-K. During 2018, the Company recorded a $4.2 million decrease to tax expense related to provisional amounts recorded in 2017. Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for costs for internal-use software. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Adoption of ASU 2018-15 is not expected to have a material impact on the Company’s Consolidated Financial Statements. Fair Value Measurement (Topic 820) In August 2018, FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . The ASU removes, modifies and adds disclosure requirements in Topic 820. The following disclosure requirements were removed: 1) the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the policy for timing of transfers between levels, and 3) the valuation processes for Level 3 fair value measurements. This ASU modified disclosure requirements by requiring that the measurement uncertainty disclosure communicates information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added: 1) changes in unrealized gains and losses for the period included in other comprehensive income for the recurring Level 3 fair value measurements held at the end of the reporting period, and 2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. Adoption of ASU 2018-13 is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair value of securities at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Corporate bonds $ 27,203 $ 25,896 Available-for-Sale: U.S. Government and agency obligations $ 151,012 $ 149 $ (2,049 ) $ 149,112 Municipal bonds 116,548 1,806 (532 ) 117,822 Corporate bonds 3,556 — (61 ) 3,495 Mortgage-backed or related securities 1,355,258 5,210 (16,607 ) 1,343,861 Asset-backed securities 22,047 6 (120 ) 21,933 $ 1,648,421 $ 7,171 $ (19,369 ) $ 1,636,223 Held-to-Maturity: U.S. Government and agency obligations $ 1,006 $ 14 $ (1 ) $ 1,019 Municipal bonds: 176,663 1,727 (2,578 ) 175,812 Corporate bonds 3,736 — (13 ) 3,723 Mortgage-backed or related securities 52,815 66 (898 ) 51,983 $ 234,220 $ 1,807 $ (3,490 ) $ 232,537 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Municipal bonds $ 100 $ 100 Corporate bonds 27,132 22,058 Equity securities 14 160 $ 27,246 $ 22,318 Available-for-Sale: U.S. Government and agency obligations $ 72,829 $ 68 $ (431 ) $ 72,466 Municipal bonds 68,513 665 (445 ) 68,733 Corporate bonds 5,431 6 (44 ) 5,393 Mortgage-backed or related securities 745,956 1,003 (7,402 ) 739,557 Asset-backed securities 27,667 184 (93 ) 27,758 Equity securities 5,716 10 (148 ) 5,578 $ 926,112 $ 1,936 $ (8,563 ) $ 919,485 Held-to-Maturity: U.S. Government and agency obligations $ 1,024 $ 29 $ — $ 1,053 Municipal bonds: 189,860 3,385 (1,252 ) 191,993 Corporate bonds 3,978 7 — 3,985 Mortgage-backed or related securities 65,409 266 (518 ) 65,157 $ 260,271 $ 3,687 $ (1,770 ) $ 262,188 At December 31, 2018 and 2017 , the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position was as follows (in thousands): December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 75,885 $ (1,240 ) $ 50,508 $ (809 ) $ 126,393 $ (2,049 ) Municipal bonds 6,422 (54 ) 27,231 (478 ) 33,653 (532 ) Corporate bonds 3,199 (56 ) 295 (5 ) 3,494 (61 ) Mortgage-backed or related securities 316,074 (2,939 ) 571,989 (13,668 ) 888,063 (16,607 ) Asset-backed securities 10,582 (24 ) 9,913 (96 ) 20,495 (120 ) $ 412,162 $ (4,313 ) $ 659,936 $ (15,056 ) $ 1,072,098 $ (19,369 ) Held-to-Maturity: U.S. Government and agency obligations $ 145 $ (1 ) $ — $ — $ 145 $ (1 ) Municipal bonds 29,898 (274 ) 44,637 (2,304 ) 74,535 (2,578 ) Corporate bonds — — 487 (13 ) 487 (13 ) Mortgage-backed or related securities 10,761 (220 ) 30,035 (678 ) 40,796 (898 ) $ 40,804 $ (495 ) $ 75,159 $ (2,995 ) $ 115,963 $ (3,490 ) December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 31,276 $ (211 ) $ 23,341 $ (220 ) $ 54,617 $ (431 ) Municipal bonds 20,879 (185 ) 13,360 (260 ) 34,239 (445 ) Corporate bonds 296 (4 ) 4,682 (40 ) 4,978 (44 ) Mortgage-backed or related securities 559,916 (5,138 ) 100,662 (2,264 ) 660,578 (7,402 ) Asset-backed securities — — 9,926 (93 ) 9,926 (93 ) Equity securities 5,480 (148 ) — — 5,480 (148 ) $ 617,847 $ (5,686 ) $ 151,971 $ (2,877 ) $ 769,818 $ (8,563 ) Held-to-Maturity: Municipal bonds $ 21,839 $ (171 ) $ 34,314 $ (1,081 ) $ 56,153 $ (1,252 ) Mortgage-backed or related securities 38,023 (378 ) 4,434 (140 ) 42,457 (518 ) $ 59,862 $ (549 ) $ 38,748 $ (1,221 ) $ 98,610 $ (1,770 ) At December 31, 2018 , there were 271 securities—available-for-sale with unrealized losses, compared to 226 at December 31, 2017 . At December 31, 2018 , there were 90 securities—held-to-maturity with unrealized losses, compared to 66 at December 31, 2017 . Management does not believe that any individual unrealized loss as of December 31, 2018 or 2017 represented OTTI. The decline in fair market value of these securities was generally due to changes in interest rates. There were no sales of securities—trading for the year ended December 31, 2018 . Sales of securities—trading totaled $1.3 million with a resulting net gain of $28,000 for the year ended December 31, 2017 . Sales of securities—trading for the year ended December 31, 2016 totaled $7.8 million with a resulting net gain of $530,000 . There were no securities—trading in a nonaccrual status at both December 31, 2018 and 2017 . Net unrealized holding gains of $3.8 million and $658,000 were recognized in 2018 and 2017 , respectively. Sales of securities—available-for-sale totaled $214.6 million with a resulting net loss of $839,000 for the year ended December 31, 2018 . Sales of securities—available-for-sale totaled $522.6 million with a resulting net loss of $2.1 million for the year ended December 31, 2017 . Sales of securities—available-for-sale totaled $369.8 million with a resulting net gain of $311,000 for the year ended December 31, 2016 . There were no securities—available-for-sale in a nonaccrual status at December 31, 2018 and 2017 . There were no sales of securities—held-to-maturity during the years ended December 31, 2018 , 2017 or 2016 . There were no securities—held-to-maturity in a nonaccrual status at December 31, 2018 and 2017 although there were partial calls of securities that resulted in a net gain of $2,000 for the year ended December 31, 2018 . The amortized cost and estimated fair value of securities at December 31, 2018 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. December 31, 2018 Trading Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Maturing in one year or less $ — $ — $ 10,680 $ 10,661 $ 2,885 $ 2,875 Maturing after one year through five years — — 84,333 84,140 60,124 59,591 Maturing after five years through ten years — — 383,987 381,628 62,942 63,352 Maturing after ten years through twenty years 27,203 25,896 210,917 210,883 70,968 71,378 Maturing after twenty years — — 958,504 948,911 37,301 35,341 $ 27,203 $ 25,896 $ 1,648,421 $ 1,636,223 $ 234,220 $ 232,537 The following table presents, as of December 31, 2018 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 143,336 $ 143,505 $ 143,887 Interest rate swap counterparties 11,356 11,576 11,344 Repurchase transaction accounts 154,042 155,014 154,042 Other 3,827 3,827 3,719 Total pledged securities $ 312,561 $ 313,922 $ 312,992 |
LOANS RECEIVABLE AND THE ALLOWA
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES | LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES Loans receivable at December 31, 2018 and 2017 are summarized as follows (dollars in thousands): December 31, 2018 December 31, 2017 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,430,097 16.4 % $ 1,284,363 16.9 % Investment properties 2,131,059 24.5 1,937,423 25.5 Multifamily real estate 368,836 4.2 314,188 4.1 Commercial construction 172,410 2.0 148,435 2.0 Multifamily construction 184,630 2.1 154,662 2.0 One- to four-family construction 534,678 6.2 415,327 5.5 Land and land development: Residential 188,508 2.2 164,516 2.2 Commercial 27,278 0.3 24,583 0.3 Commercial business 1,483,614 17.1 1,279,894 16.8 Agricultural business, including secured by farmland 404,873 4.7 338,388 4.4 One- to four-family residential 973,616 11.2 848,289 11.2 Consumer: Consumer secured by one- to four-family 568,979 6.6 522,931 6.9 Consumer—other 216,017 2.5 165,885 2.2 Total loans outstanding 8,684,595 100.0 % 7,598,884 100.0 % Less allowance for loan losses (96,485 ) (89,028 ) Net loans $ 8,588,110 $ 7,509,856 Loan amounts are net of unearned loan fees in excess of unamortized costs of $1.4 million as of December 31, 2018 and included net unamortized costs of $158,000 at December 31, 2017 . Net loans include net discounts on acquired loans of $25.7 million and $21.1 million as of December 31, 2018 and 2017 , respectively. The Company’s loans to directors, executive officers and related entities are on substantially the same terms and underwriting as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than normal risk of collectability. Such loans had balances of $3.5 million and $3.5 million at December 31, 2018 and 2017 , respectively. Purchased credit-impaired loans: The outstanding contractual unpaid principal balance of PCI loans, excluding acquisition accounting adjustments, was $22.0 million at December 31, 2018 and $32.5 million at December 31, 2017 . The carrying balance of PCI loans was $14.4 million at December 31, 2018 and $21.3 million at December 31, 2017 . The following table presents the changes in the accretable yield for PCI loans for the years ended December 31, 2018 and 2017 (in thousands): Years Ended December 31 2018 2017 Balance, beginning of period $ 6,520 $ 8,717 Additions 995 — Accretion to interest income (7,509 ) (5,929 ) Disposals and other 58 (564 ) Reclassifications from non-accretable difference 5,152 4,296 Balance, end of period $ 5,216 $ 6,520 As of December 31, 2018 and December 31, 2017 , the non-accretable difference between the contractually required payments and cash flows expected to be collected was $7.1 million and $11.3 million , respectively. Impaired Loans and the Allowance for Loan Losses: A loan is considered impaired when, based on current information and circumstances, the Company determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments. Factors involved in determining impairment include, but are not limited to, the financial condition of the borrower, the value of the underlying collateral and the current status of the economy. Impaired loans are comprised of loans on nonaccrual, TDRs, and loans that are 90 days or more past due, but are still on accrual. Purchased credit-impaired loans are considered performing within the scope of the PCI accounting guidance and are not included in the impaired loan tables. The following tables provide additional information on impaired loans, excluding PCI loans, with and without specific allowance reserves at December 31, 2018 and 2017 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,193 $ 2,768 $ 200 $ 19 Investment properties 7,287 1,320 5,606 226 Multifamily construction 1,901 1,427 — — One- to four-family construction 919 919 — — Land and land development: Residential 1,134 798 — — Commercial 44 44 — — Commercial business 4,014 2,937 391 16 Agricultural business/farmland 4,863 1,751 2,561 96 One- to four-family residential 6,724 4,314 2,358 51 Consumer: Consumer secured by one- to four-family 1,622 1,438 133 6 Consumer—other 112 49 62 2 $ 31,813 $ 17,765 $ 11,311 $ 416 December 31, 2017 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 7,807 $ 6,447 $ 199 $ 18 Investment properties 11,296 4,200 6,884 263 One- to four-family construction 298 298 — — Land and land development: Residential 1,134 798 — — Commercial business 4,441 3,424 555 50 Agricultural business/farmland 9,388 6,230 3,031 264 One- to four-family residential 9,547 3,709 5,775 178 Consumer: Consumer secured by one- to four-family 1,498 1,324 139 7 Consumer—other 134 58 73 2 $ 45,543 $ 26,488 $ 16,656 $ 782 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $9.0 million and $10.6 million of homogenous and small balance loans as of December 31, 2018 and December 31, 2017 , respectively, that are collectively evaluated for impairment for which a general reserve has been established. (2) Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value. The following table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 3,806 $ 11 $ 3,697 $ 11 $ 2,721 $ 2 Investment properties 7,822 314 9,136 195 18,529 242 Multifamily real estate — — 251 10 513 21 Commercial construction 115 — — — — — One- to four-family construction 778 6 418 27 1,158 75 Land and land development: Residential 994 10 1,396 42 1,948 85 Commercial 4 — 867 — 1,003 — Commercial business 3,443 21 5,996 68 4,290 37 Agricultural business/farmland 5,501 102 6,184 207 5,004 119 One- to four-family residential 7,845 302 9,499 322 11,976 441 Consumer: Consumer secured by one- to four-family 1,583 17 1,635 9 1,778 17 Consumer—other 142 4 184 7 615 17 $ 32,033 $ 787 $ 39,263 $ 898 $ 49,535 $ 1,056 The following table presents TDRs by accrual and nonaccrual status at December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Accrual Status Nonaccrual Status Total TDRs Accrual Nonaccrual Total Commercial real estate: Owner-occupied $ 200 $ 78 $ 278 $ 199 $ 87 $ 286 Investment properties 5,606 — 5,606 6,884 — 6,884 Commercial business 391 — 391 555 — 555 Agricultural business/farmland 2,561 — 2,561 3,129 29 3,158 One- to four-family residential 4,469 239 4,708 5,136 801 5,937 Consumer: Consumer secured by one- to four-family 133 — 133 139 — 139 Consumer—other 62 — 62 73 — 73 $ 13,422 $ 317 $ 13,739 $ 16,115 $ 917 $ 17,032 As of December 31, 2018 and 2017 , the Company had commitments to advance funds up to an additional amount of none and $45,000 , respectively, related to TDRs. There were no new TDRs that occurred during the year ended December 31, 2018 . The following table presents new TDRs that occurred during the years ended December 31, 2017 and 2016 (dollars in thousands): Number of Contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Year Ended December 31, 2017 Recorded Investment (1) (2) Commercial real estate: Investment properties 1 $ 3,714 $ 3,714 Total 1 $ 3,714 $ 3,714 Year Ended December 31, 2016 Recorded Investment (1) (2) Commercial real estate: Owner-occupied 1 $ 194 $ 194 One- to four-family residential 1 $ 78 $ 78 Total 2 $ 272 $ 272 (1) Since most loans were already considered classified and/or on non-accrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses. (2) Generally, these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. There were no TDRs which incurred a payment default within the years ended December 31, 2018 and December 31, 2017 for which the payment default occurred within twelve months of the restructure date. A default on a restructured loan results in a transfer to nonaccrual status, a charge-off or a combination of both. Credit Quality Indicators : To appropriately and effectively manage the ongoing credit quality of the Company’s loan portfolio, management has implemented a risk-rating or loan grading system for its loans. The system is a tool to evaluate portfolio asset quality throughout each applicable loan’s life as an asset of the Company. Generally, loans and leases are risk rated on an aggregate borrower/relationship basis with individual loans sharing similar ratings. There are some instances when specific situations relating to individual loans will provide the basis for different risk ratings within the aggregate relationship. Loans are graded on a scale of 1 to 9. A description of the general characteristics of these categories is shown below: Overall Risk Rating Definitions : Risk-ratings contain both qualitative and quantitative measurements and take into account the financial strength of a borrower and the structure of the loan or lease. Consequently, the definitions are to be applied in the context of each lending transaction and judgment must also be used to determine the appropriate risk rating, as it is not unusual for a loan or lease to exhibit characteristics of more than one risk-rating category. Consideration for the final rating is centered in the borrower’s ability to repay, in a timely fashion, both principal and interest. There were no material changes in the risk-rating or loan grading system in 2018 . Risk Rating 1: Exceptional A credit supported by exceptional financial strength, stability, and liquidity. The risk rating of 1 is reserved for the Company’s top quality loans, generally reserved for investment grade credits underwritten to the standards of institutional credit providers. Risk Rating 2: Excellent A credit supported by excellent financial strength, stability and liquidity. The risk rating of 2 is reserved for very strong and highly stable customers with ready access to alternative financing sources. Risk Rating 3: Strong A credit supported by good overall financial strength and stability. Collateral margins are strong, cash flow is stable although susceptible to cyclical market changes. Risk Rating 4: Acceptable A credit supported by the borrower’s adequate financial strength and stability. Assets and cash flow are reasonably sound and provide for orderly debt reduction. Access to alternative financing sources will be more difficult to obtain. Risk Rating 5: Watch A credit with the characteristics of an acceptable credit but one which requires more than the normal level of supervision and warrants formal quarterly management reporting. Credits in this category are not yet criticized or classified, but due to adverse events or aspects of underwriting require closer than normal supervision. Generally, credits should be watch credits in most cases for six months or less as the impact of stress factors are analyzed. Risk Rating 6: Special Mention A credit with potential weaknesses that deserves management’s close attention is risk rated a 6. If left uncorrected, these potential weaknesses will result in deterioration in the capacity to repay debt. A key distinction between Special Mention and Substandard is that in a Special Mention credit, there are identified weaknesses that pose potential risk(s) to the repayment sources, versus well defined weaknesses that pose risk(s) to the repayment sources. Assets in this category are expected to be in this category no more than 9-12 months as the potential weaknesses in the credit are resolved. Risk Rating 7: Substandard A credit with well defined weaknesses that jeopardize the ability to repay in full is risk rated a 7. These credits are inadequately protected by either the sound net worth and payment capacity of the borrower or the value of pledged collateral. These are credits with a distinct possibility of loss. Loans headed for foreclosure and/or legal action due to deterioration are rated 7 or worse. Risk Rating 8: Doubtful A credit with an extremely high probability of loss is risk rated 8. These credits have all the same critical weaknesses that are found in a substandard loan; however, the weaknesses are elevated to the point that based upon current information, collection or liquidation in full is improbable. While some loss on doubtful credits is expected, pending events may strengthen a credit making the amount and timing of any loss indeterminate. In these situations taking the loss is inappropriate until it is clear that the pending event has failed to strengthen the credit and improve the capacity to repay debt. Risk Rating 9: Loss A credit that is considered to be currently uncollectible or of such little value that it is no longer a viable Bank asset is risk rated 9. Losses are taken in the accounting period in which the credit is determined to be uncollectible. Taking a loss does not mean that a credit has absolutely no recovery or salvage value but, rather, it is not practical or desirable to defer writing off the credit, even though partial recovery may occur in the future. The following tables show Banner’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristic as of December 31, 2018 and 2017 (in thousands): December 31, 2018 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,396,721 $ 6,963 $ 26,413 $ — $ — $ 1,430,097 Investment properties 2,122,621 — 8,438 — — 2,131,059 Multifamily real estate 368,262 — 574 — — 368,836 Commercial construction 159,167 11,816 1,427 — — 172,410 Multifamily construction 184,630 — — — — 184,630 One- to four-family construction 533,759 — 919 — — 534,678 Land and land development: Residential 187,710 — 798 — — 188,508 Commercial 27,200 — 78 — — 27,278 Commercial business 1,436,733 7,661 39,133 87 — 1,483,614 Agricultural business, including secured by farmland 392,318 4,214 8,341 — — 404,873 One- to four-family residential 969,011 499 4,106 — — 973,616 Consumer: Consumer secured by one- to four-family 564,001 — 4,978 — — 568,979 Consumer—other 215,706 9 302 — — 216,017 Total $ 8,557,839 $ 31,162 $ 95,507 $ 87 $ — $ 8,684,595 December 31, 2017 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,246,125 $ 12,227 $ 26,011 $ — $ — $ 1,284,363 Investment properties 1,918,940 9,118 9,365 — — 1,937,423 Multifamily real estate 313,432 — 756 — — 314,188 Commercial construction 148,435 — — — — 148,435 Multifamily construction 154,662 — — — — 154,662 One- to four-family construction 411,802 — 3,525 — — 415,327 Land and land development: Residential 153,073 10,554 889 — — 164,516 Commercial 21,665 — 2,918 — — 24,583 Commercial business 1,213,365 12,135 54,282 112 — 1,279,894 Agricultural business, including secured by farmland 321,110 3,852 13,426 — — 338,388 One- to four-family residential 842,304 569 5,416 — — 848,289 Consumer: Consumer secured by one- to four-family 520,675 — 2,256 — — 522,931 Consumer—other 165,594 13 278 — — 165,885 Total $ 7,431,182 $ 48,468 $ 119,122 $ 112 $ — $ 7,598,884 (1) The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, as of December 31, 2018 and 2017 , in the commercial business category, $590.9 million and $296.8 million , respectively, of credit-scored small business loans. As loans in these homogeneous pools become non-accrual, they are individually risk-rated. The following tables provide additional detail on the age analysis of Banner’s past due loans as of December 31, 2018 and 2017 (in thousands): December 31, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 785 $ 519 $ 2,223 $ 3,527 $ 8,531 $ 1,418,039 $ 1,430,097 $ — $ 2,768 Investment properties 91 498 934 1,523 3,462 2,126,074 2,131,059 — 1,320 Multifamily real estate 317 — — 317 138 368,381 368,836 — — Commercial construction — — 1,427 1,427 — 170,983 172,410 — 1,427 Multifamily construction — — — — — 184,630 184,630 — — One- to four-family construction 4,781 1,078 919 6,778 137 527,763 534,678 — 919 Land and land development: Residential 450 — 798 1,248 — 187,260 188,508 — 798 Commercial 34 — 44 78 — 27,200 27,278 — 44 Commercial business 3,982 1,305 1,756 7,043 1,028 1,475,543 1,483,614 1 2,936 Agricultural business/farmland 343 1,518 1,601 3,462 493 400,918 404,873 — 1,751 One- to four-family residential 5,440 1,790 1,657 8,887 101 964,628 973,616 658 1,544 Consumer: Consumer secured by one- to four-family 1,136 765 706 2,607 432 565,940 568,979 238 1,201 Consumer—other 911 385 9 1,305 91 214,621 216,017 9 40 Total $ 18,270 $ 7,858 $ 12,074 $ 38,202 $ 14,413 $ 8,631,980 $ 8,684,595 $ 906 $ 14,748 December 31, 2017 30–59 Days Past Due 60–89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 5,323 $ 76 $ 5,490 $ 10,889 $ 7,682 $ 1,265,792 $ 1,284,363 $ — $ 6,447 Investment properties 1,737 — 4,096 5,833 7,166 1,924,424 1,937,423 — 4,199 Multifamily real estate 105 — — 105 169 313,914 314,188 — — Commercial construction — — — — — 148,435 148,435 — — Multifamily construction 3,416 — — 3,416 — 151,246 154,662 — — One- to four-family construction 4,892 725 298 5,915 446 408,966 415,327 298 — Land and land development: Residential — — 798 798 — 163,718 164,516 — 798 Commercial — — — — 2,919 21,664 24,583 — — Commercial business 1,574 404 2,577 4,555 2,159 1,273,180 1,279,894 18 3,406 Agricultural business/farmland 598 533 2,017 3,148 565 334,675 338,388 — 6,132 One- to four-family residential 4,475 1,241 2,715 8,431 136 839,722 848,289 1,085 3,264 Consumer: Consumer secured by one- to four-family 1,355 62 713 2,130 — 520,801 522,931 85 1,239 Consumer—other 609 136 15 760 68 165,057 165,885 — 58 Total $ 24,084 $ 3,177 $ 18,719 $ 45,980 $ 21,310 $ 7,531,594 $ 7,598,884 $ 1,486 $ 25,543 The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the year ended December 31, 2018 (in thousands): For the Year Ended December 31, 2018 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 Provision for loan losses 3,063 2,185 (2,860 ) 2,129 417 1,952 5,141 (3,527 ) 8,500 Recoveries 1,646 — 213 1,049 64 750 366 — 4,088 Charge-offs (401 ) — (479 ) (2,051 ) (756 ) (43 ) (1,401 ) — (5,131 ) Ending balance $ 27,132 $ 3,818 $ 24,442 $ 19,438 $ 3,778 $ 4,714 $ 7,972 $ 5,191 $ 96,485 December 31, 2018 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance individually evaluated for impairment $ 246 $ — $ — $ 16 $ 96 $ 51 $ 7 $ — $ 416 Allowance collectively evaluated for impairment 26,886 3,818 24,442 19,399 3,622 4,663 7,965 5,191 95,986 Allowance for purchased credit-impaired loans — — — 23 60 — — — 83 Total allowance for loan losses $ 27,132 $ 3,818 $ 24,442 $ 19,438 $ 3,778 $ 4,714 $ 7,972 $ 5,191 $ 96,485 December 31, 2018 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Loan balances: Loans individually evaluated for impairment $ 8,625 $ — $ 3,096 $ 391 $ 3,298 $ 4,469 $ 196 $ — $ 20,075 Loans collectively evaluated for impairment 3,540,538 368,698 1,104,271 1,482,195 401,082 969,046 784,277 — 8,650,107 Purchased credit-impaired loans 11,993 138 137 1,028 493 101 523 — 14,413 Total loans $ 3,561,156 $ 368,836 $ 1,107,504 $ 1,483,614 $ 404,873 $ 973,616 $ 784,996 $ — $ 8,684,595 The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the year ended December 31, 2017 (in thousands): For the Year Ended December 31, 2017 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,993 $ 1,360 $ 34,252 $ 16,533 $ 2,967 $ 2,238 $ 4,104 $ 3,550 $ 85,997 Provision for loan losses 2,639 262 (7,921 ) 4,355 3,326 (415 ) 586 5,168 8,000 Recoveries 372 11 1,237 1,226 134 270 481 — 3,731 Charge-offs (1,180 ) — — (3,803 ) (2,374 ) (38 ) (1,305 ) — (8,700 ) Ending balance $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 December 31, 2017 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance individually evaluated for impairment $ 281 $ — $ — $ 50 $ 264 $ 178 $ 9 $ — $ 782 Allowance collectively evaluated for impairment 22,543 1,633 27,567 18,214 3,676 1,877 3,857 8,718 88,085 Allowance for purchased credit-impaired loans — — 1 47 113 — — — 161 Total allowance for loan losses $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 December 31, 2017 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Loan balances: Loans individually evaluated for impairment $ 16,017 $ — $ 750 $ 1,812 $ 8,585 $ 5,136 $ 212 $ — $ 32,512 Loans collectively evaluated for impairment 3,190,921 314,019 903,408 1,275,923 329,238 843,017 688,536 — 7,545,062 Purchased credit-impaired loans 14,848 169 3,365 2,159 565 136 68 — 21,310 Total loans $ 3,221,786 $ 314,188 $ 907,523 $ 1,279,894 $ 338,388 $ 848,289 $ 688,816 $ — $ 7,598,884 The following table provides additional information on the allowance for loan losses for the year ended December 31, 2016 (in thousands): For the Year Ended December 31, 2016 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,716 $ 4,195 $ 27,131 $ 13,856 $ 3,645 $ 4,732 $ 902 $ 2,831 $ 78,008 Provision for loan losses 441 (2,835 ) 5,566 1,632 (170 ) (3,402 ) 4,079 719 6,030 Recoveries 582 — 2,171 1,993 59 1,283 610 — 6,698 Charge-offs (746 ) — (616 ) (948 ) (567 ) (375 ) (1,487 ) — (4,739 ) Ending balance $ 20,993 $ 1,360 $ 34,252 $ 16,533 $ 2,967 $ 2,238 $ 4,104 $ 3,550 $ 85,997 |
REAL ESTATE OWNED, HELD FOR SAL
REAL ESTATE OWNED, HELD FOR SALE, NET | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
REAL ESTATE OWNED, HELD FOR SALE, NET | REAL ESTATE OWNED, HELD FOR SALE, NET The following table presents the changes in REO, net of valuation allowance, for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Years Ended December 31 2018 2017 2016 Balance, beginning of period $ 360 $ 11,081 $ 11,627 Additions from loan foreclosures 641 46 8,909 Additions from capitalized costs — 54 — Additions from acquisitions 2,593 — 400 Proceeds from dispositions of REO (838 ) (13,474 ) (10,812 ) Gain on sale of REO 242 2,909 1,833 Valuation adjustments in the period (387 ) (256 ) (876 ) Balance, end of period $ 2,611 $ 360 $ 11,081 The Company had no foreclosed residential real estate properties held as REO at December 31, 2018 or December 31, 2017. The recorded investment in one- to four-family residential loans in the process of foreclosure was $1.2 million at December 31, 2018 and $2.0 million at December 31, 2017. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Land, buildings and equipment owned by the Company and its subsidiaries at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31 2018 2017 Land (1) $ 37,835 $ 35,080 Buildings and leasehold improvements (1) 163,813 154,374 Furniture and equipment 122,614 105,643 324,262 295,097 Less accumulated depreciation (152,453 ) (140,282 ) Property and equipment, net $ 171,809 $ 154,815 (1) The Company had $557,000 and $3.8 million of properties held for sale that were included in land and buildings at December 31, 2018 and 2017 , respectively. The Company’s depreciation expense related to property and equipment was $15.2 million , $14.7 million , and $13.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company’s rental expense was $17.2 million , $16.4 million , and $16.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company’s obligations under long-term property leases are as follows (in thousands): Year Amount 2019 $ 10,876 2020 10,450 2021 9,485 2022 6,716 2023 4,248 Thereafter 11,225 Total $ 53,000 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS Deposits consist of the following at December 31, 2018 and 2017 (in thousands): December 31 2018 2017 Non-interest-bearing checking $ 3,657,817 $ 3,265,544 Interest-bearing checking 1,191,016 971,137 Regular savings accounts 1,842,581 1,557,500 Money market accounts 1,465,369 1,422,313 Total interest-bearing transaction and savings accounts 4,498,966 3,950,950 Certificates of deposit: Certificates of deposit less than or equal to $250,000 1,143,303 813,997 Certificates of deposit greater than $250,000 176,962 152,940 Total certificates of deposit (1) 1,320,265 966,937 Total deposits $ 9,477,048 $ 8,183,431 Included in total deposits: Public fund transaction accounts $ 217,401 $ 198,719 Public fund interest-bearing certificates 30,089 23,685 Total public deposits $ 247,490 $ 222,404 Total brokered deposits $ 377,347 $ 57,228 (1) Certificates of deposit included $563,000 of acquisition discounts at December 31, 2018 and $11,000 of acquisition premiums at December 31, 2017 . Deposits at December 31, 2018 and 2017 included deposits from the Company’s directors, executive officers and related entities totaling $8.3 million and $10.0 million , respectively. At December 31, 2018 and 2017 , the Company had certificates of deposit of $180.5 million and $155.9 million , respectively, that were equal to or greater than $250,000. Scheduled maturities and weighted average interest rates of certificate accounts at December 31, 2018 are as follows (dollars in thousands): December 31, 2018 Amount Weighted Average Rate Maturing in one year or less $ 1,001,206 1.15 % Maturing after one year through two years 201,919 1.09 Maturing after two years through three years 90,247 1.57 Maturing after three years through four years 13,364 1.22 Maturing after four years through five years 11,282 1.75 Maturing after five years 2,247 1.07 Total certificates of deposit $ 1,320,265 1.17 % |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK OF DES MOINES | 12 Months Ended |
Dec. 31, 2018 | |
Advances from Federal Home Loan Banks [Abstract] | |
ADVANCES FROM FEDERAL HOME LOAN BANK OF DES MOINES | ADVANCES FROM FEDERAL HOME LOAN BANK OF DES MOINES Utilizing a blanket pledge, qualifying loans receivable at December 31, 2018 and 2017 , were pledged as security for FHLB borrowings and there were no securities pledged as collateral as of December 31, 2018 or 2017 . At December 31, 2018 and 2017 , FHLB advances were scheduled to mature as follows (in thousands): At or for the Years Ended December 31 2018 2017 Amount Weighted Average Rate Amount Weighted Average Rate Maturing in one year or less $ 540,000 2.64 % $ — — % Maturing after one year through three years — — — — Maturing after three years through five years — — — — Maturing after five years 189 5.94 202 5.94 Total FHLB advances $ 540,189 2.64 % $ 202 5.94 % The maximum amount outstanding from the FHLB advances at any month end for the years ended December 31, 2018 and 2017 was $540.2 million and $453.2 million , respectively. The average FHLB advances balance outstanding for the years ended December 31, 2018 and 2017 was $253.7 million and $151.3 million , respectively. The average contractual interest rate on the FHLB advances for the years ended December 31, 2018 and 2017 was 2.22% and 1.26% , respectively. As of December 31, 2018 , Banner Bank has established a borrowing line with the FHLB to borrow up to 45% of its total assets, contingent on having sufficient qualifying collateral and ownership of FHLB stock. Islanders Bank similarly may borrow up to 35% of its total assets, also contingent on collateral and FHLB stock. At December 31, 2018 , the maximum total FHLB credit line was $4.59 billion and $103.5 million for Banner Bank and Islanders Bank, respectively. |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS Other borrowings consist of retail and wholesale repurchase agreements, other term borrowings and Federal Reserve Bank borrowings. Repurchase Agreements: At December 31, 2018 , retail repurchase agreements carry interest rates ranging from 0.10% to 0.55% . These repurchase agreements are secured by the pledge of certain mortgage-backed and agency securities with a carrying value of $154.0 million . Banner Bank has the right to pledge or sell these securities, but it must replace them with substantially the same securities. Banner Bank had no borrowings under wholesale repurchase agreements at December 31, 2018 or December 31, 2017 . Federal Reserve Bank of San Francisco and Other Borrowings: Banner Bank periodically borrows funds on an overnight basis from the Federal Reserve Bank through the Borrower-In-Custody program. Such borrowings are secured by a pledge of eligible loans. At December 31, 2018 , based upon available unencumbered collateral, Banner Bank was eligible to borrow $1.15 billion from the Federal Reserve Bank, although, at that date, as well as at December 31, 2017 , Banner Bank had no funds borrowed under this or other borrowing arrangements. At December 31, 2018 , Banner Bank had uncommitted federal funds lines of credit agreements with other financial institutions totaling $110.0 million , while Islanders Bank had an uncommitted federal funds line of credit agreement with another financial institution totaling $5.0 million . No balances were outstanding under these agreements as of December 31, 2018 and 2017 . Availability of lines is subject to federal funds balances available for loan and continued borrower eligibility. These lines are intended to support short-term liquidity needs and the agreements may restrict consecutive day usage. A summary of all other borrowings at December 31, 2018 and 2017 by the period remaining to maturity is as follows (dollars in thousands): At or for the Years Ended December 31 2018 2017 Amount Weighted Average Rate Amount Weighted Average Rate Repurchase agreements: Maturing in one year or less $ 118,995 0.21 % $ 95,860 0.29 % Maturing after one year through two years — — — — Maturing after two years — — — — Total year-end outstanding $ 118,995 0.21 % $ 95,860 0.29 % Average outstanding $ 108,065 0.21 % $ 111,872 0.28 % Maximum outstanding at any month-end $ 121,766 n/a $ 120,245 n/a |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES AND MANDATORILY REDEEMABLE TRUST PREFERRED SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
JUNIOR SUBORDINATED DEBENTURES AND MANDATORILY REDEEMABLE TRUST PREFERRED SECURITIES | JUNIOR SUBORDINATED DEBENTURES AND MANDATORILY REDEEMABLE TRUST PREFERRED SECURITIES At December 31, 2018 , the Company had nine wholly-owned subsidiary grantor trusts (the Trusts), which had issued $136.0 million of trust preferred securities to third parties, as well as $4.2 million of common capital securities, carried among other assets, which were issued to the Company. Trust preferred securities and common capital securities accrue and pay distributions periodically at specified annual rates as provided in the indentures. The Trusts used the proceeds from the offerings to purchase a like amount of junior subordinated debentures (the Debentures) of the Company. The Debentures are the sole assets of the Trusts. The Company’s obligations under the debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the obligations of the Trusts. The trust preferred securities (TPS) are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. The Company has the right to redeem the Debentures in whole on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. All of the trust preferred securities issued by the Trusts qualified as Tier 1 capital as of December 31, 2018 . At December 31, 2018 , the Trusts comprised $136.0 million , or 10.4% of the Company’s total risk-based capital. The following table is a summary of trust preferred securities at December 31, 2018 (dollars in thousands): Name of Trust Aggregate Liquidation Amount of Trust Preferred Securities Aggregate Liquidation Amount of Common Capital Securities Aggregate Principal Amount of Junior Subordinated Debentures Stated Maturity (1) Current Interest Rate Reset Period Interest Rate Spread Banner Capital Trust II $ 15,000 $ 464 $ 15,464 2033 5.79 % Quarterly Three-month LIBOR + 3.35% Banner Capital Trust III 15,000 465 15,465 2033 5.34 Quarterly Three-month LIBOR + 2.90% Banner Capital Trust IV 15,000 465 15,465 2034 5.29 Quarterly Three-month LIBOR + 2.85% Banner Capital Trust V 25,000 774 25,774 2035 4.22 Quarterly Three-month LIBOR + 1.57% Banner Capital Trust VI 25,000 774 25,774 2037 4.36 Quarterly Three-month LIBOR + 1.62% Banner Capital Trust VII 25,000 774 25,774 2037 3.78 Quarterly Three-month LIBOR + 1.38% Siuslaw Statutory Trust I 8,000 248 8,248 2034 5.49 Quarterly Three-month LIBOR + 2.70% Greater Sacramento Bancorp Statutory Trust I 4,000 124 4,124 2033 5.79 Quarterly Three-month LIBOR + 3.35% Greater Sacramento Bancorp Statutory Trust II 4,000 124 4,124 2035 4.47 Quarterly Three-month LIBOR + 1.68% Total TPS liability at par $ 136,000 $ 4,212 140,212 4.71 % Fair value adjustment (2) (26,121 ) Total TPS liability at fair value (2) $ 114,091 (1) All of the Company's trust preferred securities are eligible for redemption. (2) The Company has elected to use fair value accounting on its TPS. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table presents the components of the provision for income taxes included in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Years Ended December 31 2018 2017 2016 Current Federal $ 21,869 $ 30,961 $ 29,787 State 4,130 3,085 2,477 Total Current 25,999 34,046 32,264 Deferred Federal 2,021 58,646 9,908 State 575 (2,204 ) 2,083 Total Deferred 2,596 56,442 11,991 Provision for income taxes $ 28,595 $ 90,488 $ 44,255 The following table presents the reconciliation of the federal statutory rate to the actual effective rate for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31 2018 2017 2016 Federal income tax statutory rate 21.0 % 35.0 % 35.0 % Increase (decrease) in tax rate due to: Tax-exempt interest (2.0 ) (2.6 ) (2.6 ) Investment in life insurance (0.6 ) (1.1 ) (1.2 ) State income taxes, net of federal tax offset 2.3 2.0 2.2 Tax credits (0.8 ) (0.6 ) (0.8 ) Merger and acquisition costs 0.1 — — Valuation reserve release (2.5 ) — — Federal law change — 28.2 — Other (0.2 ) (1.1 ) 1.5 Effective income tax rate 17.3 % 59.8 % 34.1 % The following table reflects the effect of temporary differences that gave rise to the components of the net deferred tax asset as of December 31, 2018 and 2017 (in thousands): December 31 2018 2017 Deferred tax assets: Loan loss and REO $ 24,156 $ 22,294 Deferred compensation 15,991 13,045 Net operating loss carryforward 37,828 43,721 Federal and state tax credits 7,614 7,614 State net operating losses 6,105 6,706 Loan discount 5,756 4,736 Other 983 4,326 Total deferred tax assets 98,433 102,442 Deferred tax liabilities: Depreciation (3,771 ) (1,343 ) Deferred loan fees, servicing rights and loan origination costs (10,196 ) (9,564 ) Intangibles (8,428 ) (5,690 ) Financial instruments accounted for under fair value accounting (833 ) (9,702 ) Other — (325 ) Total deferred tax liabilities (23,228 ) (26,624 ) Deferred income tax asset 75,205 75,818 Valuation allowance (184 ) (4,391 ) Deferred tax asset, net $ 75,021 $ 71,427 Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recognized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period of enactment. In December 2017, the federal government enacted the 2017 Tax Act. Among other provisions, the 2017 Tax Act reduced the federal marginal corporate income tax rate from 35% to 21% . As a result of the passage of the 2017 Tax Act, the Company recorded a $42.6 million charge for the revaluation of its net deferred tax asset to account for the future impact of the decrease in the corporate income tax rate and other provisions of the legislation. The charge was recorded as an increase to tax expense and reduction of the net deferred tax asset for the year ending December 31, 2017. The $42.6 million charge recorded by the Company included $4.2 million of provisional income tax expense related to AMT credits that are limited under Section 382 of the Code, which resulted in a reduction in the AMT deferred tax asset. The adjustments to deferred tax assets and receivables related to the refundable nature of AMT credits were provisional amounts estimated based on information available as of December 31, 2017 . During 2018, the Company determined the Section 382 alternative minimum tax credits carryforward indefinitely and therefore released the provisional $4.2 million valuation reserve recorded in 2017 against the tax credits. The release was recorded as a reduction to current tax expense and an increase to the net deferred tax assets. At December 31, 2018 , the Company has federal net operating loss carryforwards of approximately $180.1 million . The Company also has $86.8 million of state net operating loss carryforwards, against which the Company has established a $184,000 valuation reserve. The federal and state net operating losses will expire, if unused, by the end of 2034 . The Company has federal general business credit carryforwards at December 31, 2018 of $3.4 million , which will expire, if unused, by the end of 2031 . The Company also has federal alternative minimum tax credit carryforwards of $4.2 million , which are available to reduce future federal regular income taxes, if any, over an indefinite period. At December 31, 2017 , the Company had federal and state net operating loss carryforwards of approximately $208.2 million and $94.6 million , respectively, and federal general business credits carryforwards of $3.4 million . At that same date, the Company also had federal alternative minimum tax credit carryforwards of approximately $4.2 million . As a consequence of our 2015 acquisition of Starbuck Bancshares, Inc., the Company experienced a change in control within the meaning of Section 382 of the Code. In addition, the underlying Section 382 limitations at Starbuck Bancshares, Inc.'s level continue to apply to the Company. Section 382 limits the ability of a corporate taxpayer to use net operating loss carryforwards, general business credits, and recognized built-in-losses, on an annual basis, incurred prior to the change in control against income earned after the change in control. As a result of the Section 382 limitations, the Company is limited to utilizing $21.5 million on an annual basis (after the application of the Section 382 limitations carried over from Starbuck Bancshares, Inc.) of federal net operating loss carryforwards, general business credits, and recognized built-in losses. The applicable state Section 382 limitations range from $525,000 to $21.5 million . The Company has provided a $184,000 valuation reserve against the portion of its various state net operating loss carryforwards and tax credits that it believes it is more likely than not that it will not realize the benefit because the application of the Section 382 limitations at the state level is based on future apportionment rates. In addition, as a consequence of Banner's capital raise in June 2010, the Company experienced a change in control within the meaning of Section 382 of the Code. As a result of the Section 382 limitations, the Company is limited to utilizing $6.9 million of net operating loss carryforwards which existed prior to the acquisition of Starbuck Bancshares, Inc., on an annual basis. Based on its analysis, the Company believes it is more likely than not that the June 2010 change in control will not impact its ability to utilize all of the related available net operating loss carryforwards, general business credits, and recognized built-in-losses. Retained earnings at December 31, 2018 and 2017 included approximately $5.4 million in tax basis bad debt reserves for which no income tax liability has been recorded. In the future, if this tax bad debt reserve is used for purposes other than to absorb bad debts or the Company no longer qualifies as a bank or is completely liquidated, the Company will incur a federal tax liability at the then-prevailing corporate tax rate, established as $1.1 million at December 31, 2018 . Tax credit investments: The Company invests in low income housing tax credit funds that are designed to generate a return primarily through the realization of federal tax credits. The Company accounts for these investments by amortizing the cost of tax credit investments over the life of the investment using a proportional amortization method and tax credit investment amortization expense is a component of the provision for income taxes. The following table presents the balances of the Company's tax credit investments and related unfunded commitments at December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Tax credit investments $ 17,360 $ 7,311 Unfunded commitments—tax credit investments 12,726 4,417 The following table presents other information related to the Company's tax credit investments for the years ended December 31, 2018 , 2017 and 2016 (in thousands): For the years ended December 31, 2018 2017 2016 Tax credits and other tax benefits recognized $ 1,456 $ 1,140 $ 1,136 Tax credit amortization expense included in provision for income taxes 1,151 1,144 672 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Employee Retirement Plans: Substantially all of the Company’s and the Banks' employees are eligible to participate in its 401(k)/Profit Sharing Plan, a defined contribution and profit sharing plan sponsored by the Company. Employees may elect to have a portion of their salary contributed to the plan in conformity with Section 401(k) of the Internal Revenue Code. At the discretion of the Company’s Board of Directors, the Company may elect to make matching and/or profit sharing contributions for the employees’ benefit. For the years ended December 31, 2018 , 2017 and 2016 , $5.4 million , $4.8 million and $4.6 million , respectively, was expensed for 401(k) contributions. The Board of Directors has elected to make a 4% of eligible compensation matching contribution for 2019 . Supplemental Retirement and Salary Continuation Plans: Through the Banks, the Company is obligated under various non-qualified deferred compensation plans to help supplement the retirement income of certain executives, including certain retired executives, selected by resolution of the Banks’ Boards of Directors or in certain cases by the former directors of acquired banks. These plans are unfunded, include both defined benefit and defined contribution plans, and provide for payments after the executive’s retirement. In the event of a participant employee’s death prior to or during retirement, the Company is obligated to pay to the designated beneficiary the benefits set forth under the plan. For the years ended December 31, 2018 , 2017 and 2016 , expense recorded for supplemental retirement and salary continuation plan benefits totaled $2.3 million , $3.5 million , and $2.7 million , respectively. At December 31, 2018 and 2017 , liabilities recorded for the various supplemental retirement and salary continuation plan benefits totaled $37.5 million and $38.6 million , respectively, and are recorded in a deferred compensation liability account. Deferred Compensation Plans and Rabbi Trusts: The Company and the Banks also offer non-qualified deferred compensation plans to members of their Boards of Directors and certain employees. The plans permit each participant to defer a portion of director fees, non-qualified retirement contributions, salary or bonuses for future receipt. Compensation is charged to expense in the period earned. In connection with its acquisitions, the Company also assumed liability for certain deferred compensation plans for key employees, retired employees and directors. In order to fund the plans’ future obligations, the Company has purchased life insurance policies or other investments, including Banner Corporation common stock, which in certain instances are held in irrevocable trusts commonly referred to as “Rabbi Trusts.” As the Company is the owner of the investments and the beneficiary of the insurance policies, and in order to reflect the Company’s policy to pay benefits equal to the accumulations, the assets and liabilities are reflected in the Consolidated Statements of Financial Condition. Banner Corporation common stock held for such plans is reported as a contra-equity account and was recorded at an original cost of $7.3 million at December 31, 2018 and $7.4 million at December 31, 2017 . At December 31, 2018 and 2017 , liabilities recorded in connection with deferred compensation plan benefits totaled $9.0 million ( $7.3 million in contra-equity) and $9.9 million ( $7.4 million in contra-equity), respectively, and are recorded in deferred compensation or equity as appropriate. The Banks have purchased, or acquired through mergers, life insurance policies in connection with the implementation of certain executive supplemental retirement, salary continuation and deferred compensation retirement plans, as well as additional policies not related to any specific plan. These policies provide protection against the adverse financial effects that could result from the death of a key employee and provide tax-exempt income to offset expenses associated with the plans. It is the Banks’ intent to hold these policies as a long-term investment. However, there will be an income tax impact if the Banks choose to surrender certain policies. Although the lives of individual current or former management-level employees are insured, the Banks are the owners and sole or partial beneficiaries. At December 31, 2018 and 2017 , the cash surrender value of these policies was $177.5 million and $162.7 million , respectively. The Banks are exposed to credit risk to the extent an insurance company is unable to fulfill its financial obligations under a policy. In order to mitigate this risk, the Banks use a variety of insurance companies and regularly monitor their financial condition. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The Company operates the following stock-based compensation plans as approved by its shareholders: • 2012 Restricted Stock and Incentive Bonus Plan (2012 Restricted Stock Plan). • 2014 Omnibus Incentive Plan (the 2014 Plan). • 2018 Omnibus Incentive Plan (the 2018 Plan). The purpose of these plans is to promote the success and enhance the value of the Company by providing a means for attracting and retaining highly skilled employees, officers and directors of Banner Corporation and its affiliates and linking their personal interests with those of the Company's shareholders. Under these plans the Company currently has outstanding restricted stock share grants and restricted stock unit grants. 2012 Restricted Stock and Incentive Bonus Plan Under the 2012 Restricted Stock Plan, which was approved by shareholders on April 24, 2012 , the Company is authorized to issue up to 300,000 shares of its common stock. Shares granted under the 2012 Restricted Stock Plan have a minimum vesting period of three years. The 2012 Restricted Stock Plan will continue in effect for a term of ten years, after which no further awards may be granted. The 2012 Restricted Stock Plan was amended on April 23, 2013 to provide for the ability to grant (1) cash-denominated incentive-based awards payable in cash or common stock, including those that are eligible to qualify as qualified performance-based compensation for the purposes of Section 162(m) of the Code and (2) restricted stock awards that qualify as qualified performance-based compensation for the purposes of Section 162(m) of the Code. Vesting requirements may include time-based conditions, operation-based conditions, and/or market-based conditions. As of December 31, 2018 , the Company had granted 269,863 shares of restricted stock from the 2012 Restricted Stock Plan (as amended and restated), of which 261,849 shares had vested and 8,014 shares remain unvested. 2014 Omnibus Incentive Plan The 2014 Plan was approved by shareholders on April 22, 2014. The 2014 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, other stock-based awards and other cash awards, and provides for vesting requirements which may include time-based or performance-based conditions. The Company has reserved 900,000 shares of its common stock for issuance under the 2014 Plan in connection with the exercise of awards. As of December 31, 2018 , 340,163 restricted stock shares and 186,373 restricted stock units have been granted under the 2014 Plan of which 181,478 restricted stock shares and 34,975 restricted stock units have vested. 2018 Omnibus Incentive Plan The 2018 Plan was approved by shareholders on April 24, 2018. The 2018 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, other stock-based awards and other cash awards, and provides for vesting requirements which may include time-based or performance-based conditions. The Company reserved 900,000 shares of common stock for issuance under the 2018 Plan in connection with the exercise of awards. As of December 31, 2018 , no shares have been granted under the 2018 Plan. The expense associated with all restricted stock and unit grants was $6.6 million , $6.0 million and $4.5 million respectively, for the years ended December 31, 2018 , 2017 and 2016 . Unrecognized compensation expense for these awards as of December 31, 2018 was $9.0 million and will be amortized over the next 34 months. A summary of the Company's Restricted Stock/Unit award activity during the years ended December 31, 2018 , 2017 and 2016 follows: Shares/Units Weighted Average Grant-Date Fair Value Unvested at January 1, 2016 231,562 $ 42.33 Granted (38,934 non-voting) 177,775 47.74 Vested (104,297 ) 41.47 Forfeited (14,321 ) 42.54 Unvested at December 31, 2016 290,719 42.26 Granted (41,318 non-voting) 153,777 55.86 Vested (103,259 ) 43.81 Forfeited (39,160 ) 39.83 Unvested at December 31, 2017 302,077 48.97 Granted (159,541 non-voting) 161,598 55.04 Vested (103,363 ) 48.60 Forfeited (42,215 ) 47.05 Unvested at December 31, 2018 318,097 52.43 |
PREFERRED STOCK AND RELATED WAR
PREFERRED STOCK AND RELATED WARRANT | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
PREFERRED STOCK AND RELATED WARRANT | PREFERRED STOCK AND RELATED WARRANT On November 21, 2008, as part of the Capital Purchase Program, the Company entered into a Purchase Agreement with U.S. Treasury pursuant to which the Company issued and sold 124,000 shares of Series A Preferred Stock, having a liquidation preference of $1,000 per share ( $124 million liquidation preference in the aggregate) and a ten -year warrant to purchase up to 243,998 shares of the Company’s common stock, par value $0.01 per share, at an initial exercise price of $76.23 per share (post reverse-split), for an aggregate purchase price of $18.6 million in cash. During the year ended December 31, 2012, the Company repurchased or redeemed its Series A Preferred Stock. The related warrants to purchase up to $18.6 million in Banner common stock ( 243,998 shares) were sold by the U.S. Treasury at public auction in June 2013. That sale did not change the Company's capital position and did not have any impact on the financial accounting and reporting for these securities. On November 21, 2018 the warrants expired unexercised. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS Banner Corporation is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended (BHCA), and the regulations of the Federal Reserve. Banner Bank and Islanders Bank, as state-chartered federally insured commercial banks, are subject to the capital requirements established by the FDIC. The Federal Reserve requires Banner to maintain capital adequacy that generally parallels the FDIC requirements. The following table shows the regulatory capital ratios of the Company and the Banks and the minimum regulatory requirements (dollars in thousands): Actual Minimum for Capital Adequacy Purposes Minimum to be Categorized as “Well-Capitalized” Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2018: The Company—consolidated: Total capital to risk-weighted assets $ 1,302,239 13.12 % $ 794,072 8.00 % $ 992,590 10.00 % Tier 1 capital to risk-weighted assets 1,203,155 12.12 595,554 6.00 595,554 6.00 Tier 1 common equity to risk-weighted assets 1,067,155 10.75 446,665 4.50 n/a n/a Tier 1 capital to average leverage assets 1,203,155 10.98 438,379 4.00 n/a n/a Banner Bank: Total capital to risk- weighted assets 1,217,173 12.50 778,766 8.00 973,457 10.00 Tier 1 capital to risk- weighted assets 1,120,523 11.51 584,074 6.00 778,766 8.00 Tier 1 common equity to risk-weighted assets 1,120,523 11.51 438,056 4.50 632,747 6.50 Tier 1 capital to average leverage assets 1,120,523 10.50 426,799 4.00 533,498 5.00 Islanders Bank: Total capital to risk- weighted assets 34,567 18.26 15,142 8.00 18,928 10.00 Tier 1 capital to risk- weighted assets 32,200 17.01 11,357 6.00 15,142 8.00 Tier 1 common equity to risk-weighted assets 32,200 17.01 8,518 4.50 12,303 6.50 Tier 1 capital to average leverage assets 32,200 11.16 11,543 4.00 14,428 5.00 December 31, 2017: The Company—consolidated: Total capital to risk-weighted assets $ 1,214,631 13.81 % $ 703,508 8.00 % $ 879,385 10.00 % Tier 1 capital to risk-weighted assets 1,123,154 12.77 527,631 6.00 527,631 6.00 Tier 1 common equity to risk-weighted assets 994,080 11.30 395,723 4.50 n/a n/a Tier 1 capital to average leverage assets 1,123,154 11.34 396,313 4.00 n/a n/a Banner Bank: Total capital to risk- weighted assets 1,102,195 12.83 687,266 8.00 859,083 10.00 Tier 1 capital to risk- weighted assets 1,013,079 11.79 515,450 6.00 687,266 8.00 Tier 1 common equity to risk-weighted assets 1,013,079 11.79 386,587 4.50 558,404 6.50 Tier 1 capital to average leverage assets 1,013,079 10.53 384,920 4.00 481,150 5.00 Islanders Bank: Total capital to risk- weighted assets 32,122 16.39 15,681 8.00 19,602 10.00 Tier 1 capital to risk- weighted assets 29,761 15.18 11,761 6.00 15,681 8.00 Tier 1 common equity to risk-weighted assets 29,761 15.18 8,821 4.50 12,741 6.50 Tier 1 capital to average leverage assets 29,761 10.65 11,183 4.00 13,979 5.00 At December 31, 2018 , Banner Corporation and the Banks each exceeded all regulatory capital adequacy requirements. There have been no conditions or events since December 31, 2018 that have materially adversely changed the Tier 1 or Tier 2 capital of the Company or the Banks. However, events beyond the control of the Banks, such as weak or depressed economic conditions in areas where the Banks have most of their loans, could adversely affect future earnings and, consequently, the ability of the Banks to meet their respective capital requirements. The Company may not declare or pay cash dividends on, or repurchase, any of its shares of common stock if the effect thereof would cause equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration and payment would otherwise violate regulatory requirements. Effective January 1, 2015 (with some changes transitioned into full effectiveness over several years), Banner Corporation and the Banks became subject to new capital regulations adopted by the Federal Reserve and the FDIC, which established minimum required ratios for common equity Tier 1 (“CET1”) capital, Tier 1 capital, total capital and the leverage ratio; risk-weightings of certain assets and other items for purposes of the risk-based capital ratios, a required capital conservation buffer over the required capital ratios, and defined what qualifies as capital for purposes of meeting the capital requirements. These regulations implement the regulatory capital reforms required by the Dodd-Frank Act and the “Basel III” regulatory capital requirements. Under the capital regulations, the minimum capital ratios are: (1) a CET1 capital ratio of 4.5% of risk-weighted assets; (2) a Tier 1 capital ratio of 6.0% of risk-weighted assets; (3) a total risk-based capital ratio of 8.0% of risk-weighted assets; and (4) a leverage ratio (the ratio of Tier 1 capital to average total consolidated assets) of 4.0%. CET1 generally consists of common stock; retained earnings; accumulated other comprehensive income (“AOCI”) unless an institution elects to exclude AOCI from regulatory capital; and certain minority interests; all subject to applicable regulatory adjustments and deductions. Tier 1 capital generally consists of CET1 and noncumulative perpetual preferred stock. Tier 2 capital generally consists of other preferred stock and subordinated debt meeting certain conditions plus an amount of the allowance for loan and lease losses up to 1.25% of assets. Total capital is the sum of Tier 1 and Tier 2 capital. For purposes of determining risk-based capital, assets and certain off-balance sheet items are risk-weighted from 0% to 1,250%, depending on the risk characteristics of the asset or item. The regulations changed certain risk-weightings compared to the earlier capital rules, including a 150% risk weight (up from 100%) for certain high volatility commercial real estate acquisition, development and construction loans and for non-residential mortgage loans that are 90 days past due or otherwise in nonaccrual status; a 20% (up from 0%) credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (up from 0%); and a 250% risk weight (up from 100%) for mortgage servicing and deferred tax assets that are not deducted from capital. In addition to the minimum CET1, Tier 1, leverage ratio and total capital ratios, Banner and each of the Banks must maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. The new capital conservation buffer requirement was phased in beginning on January 1, 2016 when a buffer greater than 0.625% of risk-weighted assets was required, which amount increased each year by 0.625% until the buffer requirement was fully implemented at 2.5% on January 1, 2019. The capital conservation requirement at December 31, 2018 was an amount greater than 1.875% of risk-weighted assets. |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2018 | |
Other Intangible Assets and Mortgage Servicing Rights [Abstract] | |
OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS | GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS Goodwill and Other Intangible Assets: At December 31, 2018 , intangible assets are comprised of goodwill, CDI, and LHI acquired in business combinations. Goodwill represents the excess of the total purchase consideration paid over the fair value of the assets acquired, net of the fair values of liabilities assumed, and is not amortized but is reviewed annually for impairment. Banner has identified one reporting unit for purposes of evaluating goodwill for impairment. At December 31, 2018 , the Company completed a qualitative assessment of goodwill and concluded that it is more likely than not that the fair value of Banner, the reporting unit, exceeds the carrying value. CDI represents the value of transaction-related deposits and the value of the customer relationships associated with the deposits. LHI represents the value ascribed to leases assumed in an acquisition in which the lease terms are favorable compared to a market lease at the date of acquisition. The Company amortizes CDI and LHI over their estimated useful lives and reviews them at least annually for events or circumstances that could impair their value. The CDI assets shown in the table below represent the value ascribed to the long-term deposit relationships acquired in various bank acquisitions. These intangible assets are being amortized using an accelerated method over estimated useful lives of three to ten years. The CDI and LHI assets are not estimated to have a significant residual value. The following table summarizes the changes in the Company’s goodwill, CDI and LHI for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Goodwill CDI LHI Total Balance, January 1, 2016 $ 247,738 $ 36,762 $ 710 $ 285,210 Amortization — (7,061 ) (249 ) (7,310 ) Other changes (1) (3,155 ) — — (3,155 ) Balance, December 31, 2016 244,583 29,701 461 274,745 Amortization — (6,247 ) (184 ) (6,431 ) Adjustments to goodwill (2) (1,924 ) (1,076 ) — (3,000 ) Balance, December 31, 2017 242,659 22,378 277 265,314 Additions through acquisition (3) 96,495 16,368 — 112,863 Amortization — (6,047 ) (52 ) (6,099 ) Balance, December 31, 2018 $ 339,154 $ 32,699 $ 225 $ 372,078 (1) The adjustments to goodwill in 2016 related to changes in the preliminary goodwill recorded for the Starbuck Bancshares, Inc. acquisition including adjustments to loan discount, deferred taxes and REO valuations. (2) Acquired Goodwill and CDI were adjusted for the sale of the Utah branches in 2017. (3) The additions to goodwill and CDI in 2018 relate to the acquisition of Skagit. Estimated amortization expense in future years with respect to CDI as of December 31, 2018 (in thousands): Year ended: Estimated Amortization 2019 $ 7,957 2020 6,888 2021 5,816 2022 4,651 Thereafter 7,387 Net carrying amount $ 32,699 Mortgage servicing rights are reported in other assets. Mortgage servicing rights are initially recognized at fair value and are amortized in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Mortgage servicing rights are subsequently evaluated for impairment based upon the fair value of the rights compared to the amortized cost (remaining unamortized initial fair value). If the fair value is less than the amortized cost, a valuation allowance is created through an impairment charge to servicing fee income. However, if the fair value is greater than the amortized cost, the amount above the amortized cost is not recognized in the carrying value. In 2018 , 2017 and 2016, the Company did no t record any impairment charges or recoveries against mortgage servicing rights. Unpaid principal balance of loans for which mortgage servicing rights have been recognized totaled $2.36 billion and $2.19 billion at December 31, 2018 and 2017 , respectively. Custodial accounts maintained in connection with this servicing totaled $11.1 million and $10.2 million at December 31, 2018 and 2017 , respectively. An analysis of the mortgage servicing rights for the years ended December 31, 2018 , 2017 and 2016 is presented below (in thousands): Years Ended December 31 2018 2017 2016 Balance, beginning of the year $ 14,738 $ 15,249 $ 13,295 Amounts capitalized 3,623 3,361 5,965 Additions through purchase 166 94 — Amortization (1) (3,889 ) (3,966 ) (4,011 ) Balance, end of the year (2) $ 14,638 $ 14,738 $ 15,249 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income and any unamortized balance is fully written off if the loan repays in full. (2) There was no valuation allowance as of December 31, 2018 and 2017 . |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE The following table presents estimated fair values of the Company’s financial instruments as of December 31, 2018 and 2017 , whether or not recognized or recorded in the Consolidated Statements of Financial Condition (in thousands): December 31, 2018 December 31, 2017 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 272,196 $ 272,196 $ 261,200 $ 261,200 Securities—trading 2,3 25,896 25,896 22,318 22,318 Securities—available-for-sale 2 1,636,223 1,636,223 919,485 919,485 Securities—held-to-maturity 2 230,984 229,301 256,793 258,710 Securities—held-to-maturity 3 3,236 3,236 3,478 3,478 Loans receivable held for sale 2 171,031 171,157 40,725 40,923 Loans receivable 3 8,684,595 8,629,450 7,598,884 7,445,990 FHLB stock 3 31,955 31,955 10,334 10,334 Bank-owned life insurance 1 177,467 177,467 162,668 162,668 Mortgage servicing rights 3 14,638 25,813 14,738 19,835 Equity securities 1 352 352 — — Derivatives: Interest rate swaps 2 3,138 3,138 5,083 5,083 Interest rate lock and forward sales commitments 2 471 471 523 523 Liabilities: Demand, interest-bearing checking and money market 2 6,314,202 6,314,202 5,658,994 5,658,994 Regular savings 2 1,842,581 1,842,581 1,557,500 1,557,500 Certificates of deposit 2 1,320,265 1,298,238 966,937 947,517 Advances from FHLB 2 540,189 540,189 202 202 Junior subordinated debentures at fair value 3 114,091 114,091 98,707 98,707 Other borrowings 2 118,995 118,995 95,860 95,860 Derivatives: Interest rate swaps 2 3,138 3,138 5,083 5,083 Interest rate lock and forward sales commitments 2 1,654 1,654 201 201 The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from non-binding single dealer quotes not corroborated by observable market data. In developing Level 3 measurements, management incorporates whatever market data might be available and uses discounted cash flow models where appropriate. These calculations include projections of future cash flows, including appropriate default and loss assumptions, and market based discount rates. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. Items Measured at Fair Value on a Recurring Basis: The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate Bonds (TPS securities) $ — $ — $ 25,896 $ 25,896 — — 25,896 25,896 Securities—available-for-sale U.S. Government and agency — 149,112 — 149,112 Municipal bonds — 117,822 — 117,822 Corporate bonds — 3,495 — 3,495 Mortgage-backed securities — 1,343,861 — 1,343,861 Asset-backed securities — 21,933 — 21,933 — 1,636,223 — 1,636,223 Loans held for sale — 164,767 — 164,767 Equity securities — 352 — 352 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 471 — 471 $ — $ 1,804,951 $ 25,896 $ 1,830,847 Liabilities Junior subordinated debentures at fair value $ — $ — $ 114,091 $ 114,091 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 1,654 — 1,654 $ — $ 4,792 $ 114,091 $ 118,883 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Securities—trading Municipal bonds $ — $ 100 $ — $ 100 Corporate Bonds (TPS securities) — — 22,058 22,058 Equity securities — 160 — 160 — 260 22,058 22,318 Securities—available-for-sale U.S. Government and agency — 72,466 — 72,466 Municipal bonds — 68,733 — 68,733 Corporate bonds — 5,393 — 5,393 Mortgage-backed securities — 739,557 — 739,557 Asset-backed securities — 27,758 — 27,758 Equity securities — 5,578 — 5,578 — 919,485 — 919,485 Loans held for sale — 32,392 — 32,392 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 523 — 523 $ — $ 957,743 $ 22,058 $ 979,801 Liabilities Junior subordinated debentures at fair value $ — $ — $ 98,707 $ 98,707 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 201 — 201 $ — $ 5,284 $ 98,707 $ 103,991 The following methods were used to estimate the fair value of each class of financial instruments: Securities: The estimated fair values of investment securities and mortgaged-backed securities are priced using current active market quotes, if available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used to establish the fair value. These measurements are considered Level 2. Due to the continued limited activity in the trust preferred markets that have limited the observability of market spreads for some of the Company’s TPS securities, management has classified these securities as a Level 3 fair value measure. Management periodically reviews the pricing information received from third-party pricing services and tests those prices against other sources to validate the reported fair values. Loans Held for Sale: Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Fair values for multifamily loans held for sale are calculated based on discounted cash flows using as a discount rate a combination of market spreads for similar loan types added to selected index rates. Mortgage Servicing Rights: Fair values are estimated based on an independent dealer analysis of discounted cash flows. The evaluation utilizes assumptions market participants would use in determining fair value including prepayment speeds, delinquency and foreclosure rates, the discount rate, servicing costs, and the timing of cash flows. The mortgage servicing portfolio is stratified by loan type and fair value estimates are adjusted up or down based on the serviced loan interest rates versus current rates on new loan originations since the most recent independent analysis. Junior Subordinated Debentures: The fair value of junior subordinated debentures is estimated using an income approach technique. The significant inputs included in the estimation of fair value are the credit risk adjusted spread and three month LIBOR. The credit risk adjusted spread represents the nonperformance risk of the liability. The Company utilizes an external valuation firm to validate the reasonableness of the credit risk adjusted spread used to determine the fair value. The junior subordinated debentures are carried at fair value which represents the estimated amount that would be paid to transfer these liabilities in an orderly transaction amongst market participants. Due to credit concerns in the capital markets and inactivity in the trust preferred markets that have limited the observability of market spreads, management has classified this as a Level 3 fair value measure. Derivatives: Derivatives include interest rate swap agreements, interest rate lock commitments to originate loans held for sale and forward sales contracts to sell loans and securities related to mortgage banking activities. Fair values for these instruments, which generally change as a result of changes in the level of market interest rates, are estimated based on dealer quotes and secondary market sources. Off-Balance Sheet Items: Off-balance sheet financial instruments include unfunded commitments to extend credit, including standby letters of credit, and commitments to purchase investment securities. The fair value of these instruments is not considered to be material. Limitations: The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2018 and 2017 . The factors used in the fair value estimates are subject to change subsequent to the dates the fair value estimates are completed, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table provides a description of the valuation technique, unobservable inputs, quantitative and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at December 31, 2018 and 2017 : December 31 2018 2017 Financial Instruments Valuation Technique Unobservable Inputs Weighted Average Rate Weighted Average Rate Corporate bonds (TPS securities) Discounted cash flows Discount rate 6.81 % 6.69 % Junior subordinated debentures Discounted cash flows Discount rate 6.81 % 6.69 % Impaired loans Collateral Valuations Discount to appraised value 0.0% to 8.5% 8.5% to 20.0% REO Appraisals Discount to appraised value 69.2 % 42.0 % TPS Securities : Management believes that the credit risk-adjusted spread used to develop the discount rate utilized in the fair value measurement of TPS securities is indicative of the risk premium a willing market participant would require under current market conditions for instruments with similar contractual rates, terms and conditions and issuers with similar credit risk profiles and with similar expected probability of default. Management attributes the change in fair value of these instruments, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of assets subsequent to their issuance. Junior subordinated debentures : Similar to the TPS securities discussed above, management believes that the credit risk-adjusted spread utilized in the fair value measurement of the junior subordinated debentures is indicative of the risk premium a willing market participant would require under current market conditions for an issuer with Banner's credit risk profile. Management attributes the change in fair value of the junior subordinated debentures, compared to their par value, primarily to perceived general market adjustments to the risk premiums for these types of liabilities subsequent to their issuance. Future contractions in the risk adjusted spread relative to the spread currently utilized to measure the Company's junior subordinated debentures at fair value as of December 31, 2018 , or the passage of time, will result in negative fair value adjustments. At December 31, 2018 , the discount rate utilized was based on a credit spread of 400 basis points and three month LIBOR of 281 basis points. The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2018 and 2017 (in thousands): Level 3 Fair Value Inputs TPS Securities Borrowings— Junior Subordinated Debentures Balance at January 1, 2017 $ 21,143 $ 95,200 Total gains or losses recognized Assets gains 915 — Liabilities losses — 3,507 Balance at December 31, 2017 22,058 98,707 Total gains or losses recognized Assets gains 3,838 — Liabilities losses — 15,384 Balance at December 31, 2018 $ 25,896 $ 114,091 The Company has elected to continue to recognize the interest income and dividends from the securities reclassified to fair value as a component of interest income as was done in prior years when they were classified as available-for-sale. Interest expense related to the junior subordinated debentures continues to be measured based on contractual interest rates and reported in interest expense. The change in fair market value on TPS securities and on junior subordinated debentures prior to 2018 has been recorded as a component of non-interest income. Beginning in 2018, the change in fair value of the junior subordinated debentures, which represents changes in instrument specific credit risk, is recorded in other comprehensive income (loss). Items Measured at Fair Value on a Non-recurring Basis The following table presents financial assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at December 31, 2018 and 2017 (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,915 $ 2,915 REO $ — $ — $ 2,611 $ 2,611 December 31, 2017 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 6,535 $ 6,535 REO — — 360 360 The following table presents the losses resulting from non-recurring fair value adjustments for the years ended December 31, 2018 , 2017 and 2016 (in thousands): For the years ended December 31, 2018 2017 2016 Impaired loans $ (910 ) $ (2,852 ) $ (182 ) REO (387 ) (256 ) (876 ) Total loss from nonrecurring measurements $ (1,297 ) $ (3,108 ) $ (1,058 ) Impaired loans : Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of collateral if the loan is collateral dependent. If this practical expedient is used, the impaired loans are considered to be held at fair value. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. Impaired loans are periodically evaluated to determine if valuation adjustments, or partial write-downs, should be recorded. The need for valuation adjustments arises when observable market prices or current appraised values of collateral indicate a shortfall in collateral value compared to current carrying values of the related loan. If the Company determines that the value of the impaired loan is less than the carrying value of the loan, the Company either establishes an impairment reserve as a specific component of the allowance for loan losses or charges off the impaired amount. These valuation adjustments are considered non-recurring fair value adjustments. REO : The Company records REO (acquired through a lending relationship) at fair value on a non-recurring basis. Fair value adjustments on REO are based on updated real estate appraisals which are based on current market conditions. All REO properties are recorded at the estimated fair value of the real estate, less expected selling costs. From time to time, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on an observable market price or current appraised value of property. Banner considers any valuation inputs related to REO to be Level 3 inputs. The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed to operations. |
BANNER CORPORATION (PARENT COMP
BANNER CORPORATION (PARENT COMPANY ONLY) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
BANNER CORPORATION (PARENT COMPANY ONLY) | BANNER CORPORATION (PARENT COMPANY ONLY) Summary financial information is as follows (in thousands): Statements of Financial Condition December 31 2018 2017 ASSETS Cash $ 38,029 $ 44,887 Investment in trust equities 4,212 4,212 Investment in subsidiaries 1,540,251 1,329,165 Other assets 25,267 3,072 Total assets $ 1,607,759 $ 1,381,336 LIABILITIES AND SHAREHOLDERS’ EQUITY Miscellaneous liabilities $ 15,073 $ 9,607 Deferred tax liability — 396 Junior subordinated debentures at fair value 114,091 98,707 Shareholders’ equity 1,478,595 1,272,626 Total liabilities and shareholders' equity $ 1,607,759 $ 1,381,336 Statements of Operations Years Ended December 31 2018 2017 2016 INTEREST INCOME: Interest-bearing deposits $ 49 $ 62 $ 127 OTHER INCOME (EXPENSE): Dividend income from subsidiaries 72,604 40,570 50,971 Equity in undistributed income of subsidiaries 72,419 27,477 40,852 Other income 56 53 60 Net change in valuation of financial instruments carried at fair value — (3,507 ) (2,720 ) Interest on other borrowings (6,136 ) (4,752 ) (4,040 ) Other expenses (4,761 ) (3,291 ) (3,450 ) Net income before taxes 134,231 56,612 81,800 BENEFIT FROM INCOME TAXES (2,284 ) (4,164 ) (3,585 ) NET INCOME $ 136,515 $ 60,776 $ 85,385 Statements of Cash Flows Years Ended December 31 2018 2017 2016 OPERATING ACTIVITIES: Net income $ 136,515 $ 60,776 $ 85,385 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (72,419 ) (27,477 ) (40,852 ) Decrease (increase) in deferred taxes 150 (1,442 ) (702 ) Net change in valuation of financial instruments carried at fair value — 3,507 2,720 Share-based compensation 6,554 5,965 4,305 (Increase) decrease in other assets (19,268 ) 10,684 7,332 Increase (decrease) in other liabilities 201 69 (202 ) Net cash provided from operating activities 51,733 52,082 57,986 INVESTING ACTIVITIES: Funds transferred to deferred compensation trust (27 ) (29 ) (26 ) Reduction in investment in subsidiaries 37,000 5,000 50,000 Acquisitions (329 ) — — Net cash provided from investing activities 36,644 4,971 49,974 FINANCING ACTIVITIES: Withholding taxes paid on share-based compensation (1,554 ) (1,630 ) (870 ) Repurchase of common stock (34,401 ) (31,045 ) (50,772 ) Cash dividends paid (59,280 ) (65,759 ) (28,282 ) Net cash used by financing activities (95,235 ) (98,434 ) (79,924 ) NET CHANGE IN CASH (6,858 ) (41,381 ) 28,036 CASH, BEGINNING OF PERIOD 44,887 86,268 58,232 CASH, END OF PERIOD $ 38,029 $ 44,887 $ 86,268 |
STOCK REPURCHASES
STOCK REPURCHASES | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
STOCK REPURCHASE | STOCK REPURCHASES On April 4, 2016, the Company announced that its Board of Directors had authorized the repurchase of up to 1,711,540 shares of the Company's common stock, or 5% of the Company's outstanding shares. On March 31, 2017 the Company announced that its Board of Directors had renewed its authorization to repurchase up to 5% of the Company's common stock, or 1,658,245 of the Company's outstanding shares. Under the authorization, shares were repurchased by the Company in open market purchases. The extent to which the Company repurchased its shares and the timing of such repurchases depended upon market conditions and other corporate considerations. During the year ended December 31, 2017, the Company repurchased 545,166 common shares under the authorization leaving 1,113,079 shares available for future repurchase. In addition to the shares repurchased under the authorization, there were 29,579 shares surrendered during 2017 by employees to satisfy tax withholding obligations upon vesting of restricted stock grants. On March 28, 2018 the Company announced that its Board of Directors had renewed its authorization to repurchase up to 5% of the Company's common stock, or 1,621,549 of the Company's outstanding shares. Under the authorization, shares could be repurchased by the Company in open market purchases. The extent to which the Company repurchases its shares and the timing of such repurchases depends upon market conditions and other corporate considerations. During the year ended December 31, 2018, the Company repurchased 594,711 common shares. Of the total shares repurchased, 269,711 shares were repurchased prior to March 28, 2018 and were therefore accounted for under the 2017 authorization. The remaining 325,000 shares were repurchased subsequent to March 28, 2018 and are accounted for under the 2018 authorization leaving 1,296,549 shares available for future repurchase. In addition to the shares repurchased under the authorization, there were 27,653 shares surrendered during 2018 by employees to satisfy tax withholding obligations upon vesting of restricted stock grants. |
CALCULATION OF EARNINGS PER COM
CALCULATION OF EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
CALCULATION OF EARNINGS PER COMMON SHARE | CALCULATION OF EARNINGS PER COMMON SHARE The following tables show the calculation of earnings per common share (in thousands, except per share data): Years Ended December 31 2018 2017 2016 Net income $ 136,515 $ 60,776 $ 85,385 Weighted average number of common shares outstanding Basic 32,784,724 32,888,007 33,820,148 Diluted 32,894,425 32,986,707 33,853,511 Earnings per common share Basic $ 4.16 $ 1.85 $ 2.52 Diluted $ 4.15 $ 1.84 $ 2.52 At December 31, 2018 , 2017 and 2016 there were 315,301 , 302,077 , and 290,719 , respectively, of issued but unvested restricted stock shares and units that were included in the computation of diluted earnings per share. At December 31, 2016 there were options to purchase an additional 5,000 shares of common stock that were not included in the computation of diluted earnings per share because their exercise price resulted in them being anti-dilutive. At December 31, 2017 and 2016 there was a warrant to purchase up to 243,998 shares of common stock and these shares were not included in the computation of diluted earnings per share because their exercise price resulted in them being anti-dilutive. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Results of operations on a quarterly basis for the years ended December 31, 2018 , 2017 and 2016 were as follows (dollars in thousands except for per share data): Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 104,820 $ 112,423 $ 117,648 $ 128,741 Interest expense 5,447 7,360 8,570 11,282 Net interest income before provision for loan losses 99,373 105,063 109,078 117,459 Provision for loan losses 2,000 2,000 2,000 2,500 Net interest income 97,373 103,063 107,078 114,959 Non-interest income 21,362 21,217 20,411 21,018 Non-interest expense 81,706 82,637 81,632 95,396 Income before provision for income taxes 37,029 41,643 45,857 40,581 Provision for income taxes 8,239 9,219 8,084 3,053 Net income $ 28,790 $ 32,424 $ 37,773 $ 37,528 Basic earnings per share $ 0.89 $ 1.01 $ 1.17 $ 1.10 Diluted earnings per share 0.89 1.00 1.17 1.09 Dividends declared 0.35 0.85 0.38 0.38 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 99,096 $ 104,436 $ 105,278 $ 103,475 Interest expense 4,242 4,730 5,068 5,211 Net interest income before provision for loan losses 94,854 99,706 100,210 98,264 Provision for loan losses 2,000 2,000 2,000 2,000 Net interest income 92,854 97,706 98,210 96,264 Non-interest income 19,048 20,396 18,081 27,675 Non-interest expense 76,281 79,857 80,331 82,501 Income before provision for income taxes 35,621 38,245 35,960 41,438 Provision for income taxes 11,828 12,791 10,883 54,986 Net income (loss) $ 23,793 $ 25,454 $ 25,077 $ (13,548 ) Basic earnings (loss) per share $ 0.72 $ 0.77 $ 0.76 $ (0.41 ) Diluted earnings (loss) per share 0.72 0.77 0.76 (0.41 ) Dividends declared 0.25 1.25 0.25 0.25 Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 95,301 $ 97,321 $ 97,849 $ 101,007 Interest expense 4,258 4,173 4,141 3,836 Net interest income before provision for loan losses 91,043 93,148 93,708 97,171 Provision for loan losses — 2,000 2,000 2,030 Net interest income 91,043 91,148 91,708 95,141 Non-interest income 19,959 20,537 23,512 19,463 Non-interest expense 84,034 79,887 79,092 79,857 Income before provision for income taxes 26,968 31,798 36,128 34,747 Provision for income taxes 9,194 10,841 12,277 11,943 Net income $ 17,774 $ 20,957 $ 23,851 $ 22,804 Basic earnings per share $ 0.52 $ 0.62 $ 0.70 $ 0.69 Diluted earnings per share 0.52 0.61 0.70 0.69 Dividends declared 0.21 0.21 0.23 0.23 The quarterly amounts shown above for 2018 and 2017 reflect the adoption of the Accounting Standards Update, Revenue From Contracts with Customers (see Note 2 in this Form 10-K for additional information). The quarterly amounts for 2016 are not updated. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Lease Commitments—The Company leases 113 buildings and offices under non-cancelable operating leases. The leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. Financial Instruments with Off-Balance Sheet Risk—The Company has financial instruments with off-balance-sheet risk generated in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, commitments related to standby letters of credit, commitments to originate loans, commitments to sell loans, and commitments to buy or sell securities. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved in on-balance sheet items recognized in our Consolidated Statements of Financial Condition. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument from commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as for on-balance sheet instruments. Outstanding commitments for which no asset or liability for the notional amount has been recorded consisted of the following at the dates indicated (in thousands): Contract or Notional Amount December 31, 2018 December 31, 2017 Commitments to extend credit $ 2,837,981 $ 2,300,593 Standby letters of credit and financial guarantees 17,784 14,579 Commitments to originate loans 32,145 56,030 Risk participation agreement 24,091 11,451 Derivatives also included in Note 24: Commitments to originate loans held for sale 31,728 48,091 Commitments to sell loans secured by one- to four-family residential properties 18,328 22,097 Commitments to sell securities related to mortgage banking activities 144,250 57,000 In addition to the commitments disclosed in the table above, the Company is committed to funding its' unfunded tax credit investments (see Note 12, Income Taxes). Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Many of the commitments may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income producing commercial properties. The Company's reserve for unfunded loan commitments was $2.6 million and $2.4 million , at December 31, 2018 and 2017 , respectively. Standby letters of credit are conditional commitments issued to guarantee a customer’s performance or payment to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Under a risk participation agreement, Banner Bank guarantees the financial performance of a borrower on the participated portion of a interest rate swap on a loan. Interest rates on residential one- to four-family mortgage loan applications are typically rate locked (committed) to customers during the application stage for periods ranging from 30 to 60 days, the most typical period being 45 days. Traditionally, these loan applications with rate lock commitments had the pricing for the sale of these loans locked with various qualified investors under a best-efforts delivery program at or near the time the interest rate is locked with the customer. The Bank then attempts to deliver these loans before their rate locks expired. This arrangement generally required delivery of the loans prior to the expiration of the rate lock. Delays in funding the loans would require a lock extension. The cost of a lock extension at times was borne by the customer and at times by the Bank. These lock extension costs have not had a material impact to our operations. For mandatory delivery commitments the Company enters into forward commitments at specific prices and settlement dates to deliver either: (1) residential mortgage loans for purchase by secondary market investors (i.e., Freddie Mac or Fannie Mae), or (2) mortgage-backed securities to broker/dealers. The purpose of these forward commitments is to offset the movement in interest rates between the execution of its residential mortgage rate lock commitments with borrowers and the sale of those loans to the secondary market investor. There were no counterparty default losses on forward contracts during 2018 or 2017 . Market risk with respect to forward contracts arises principally from changes in the value of contractual positions due to changes in interest rates. The Company limits its exposure to market risk by monitoring differences between commitments to customers and forward contracts with market investors and securities broker/dealers. In the event the Company has forward delivery contract commitments in excess of available mortgage loans, the transaction is completed by either paying or receiving a fee to or from the investor or broker/dealer equal to the increase or decrease in the market value of the forward contract. Changes in the value of rate lock commitments are recorded as assets and liabilities as explained in Note 1: “Derivative Instruments.” In the normal course of business, the Company and/or its subsidiaries have various legal proceedings and other contingent matters outstanding. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. These claims and counter-claims typically arise during the course of collection efforts on problem loans or with respect to action to enforce liens on properties in which the Banks hold a security interest. Based upon the information known to management at this time, the Company and the Banks are not a party to any legal proceedings that management believes would have a material adverse effect on the results of operations or consolidated financial position at December 31, 2018 . In connection with certain asset sales, the Banks typically make representations and warranties about the underlying assets conforming to specified guidelines. If the underlying assets do not conform to the specifications, the Bank may have an obligation to repurchase the assets or indemnify the purchaser against any loss. The Banks believe that the potential for material loss under these arrangements is remote. Accordingly, the fair value of such obligations is not material. |
DERIVATIVES AND HEDGING DERIVAT
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING The Company, through its Banner Bank subsidiary, is party to various derivative instruments that are used for asset and liability management and customer financing needs. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index, or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The Company obtains dealer quotations to value its derivative contracts. The Company's predominant derivative and hedging activities involve interest rate swaps related to certain term loans and forward sales contracts associated with mortgage banking activities. Generally, these instruments help the Company manage exposure to market risk and meet customer financing needs. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors. Derivatives Designated in Hedge Relationships The Company's fixed-rate loans result in exposure to losses in value or net interest income as interest rates change. The risk management objective for hedging fixed-rate loans is to effectively convert the fixed-rate received to a floating rate. The Company has hedged exposure to changes in the fair value of certain fixed-rate loans through the use of interest rate swaps. For a qualifying fair value hedge, changes in the value of the derivatives are recognized in current period earnings along with the corresponding changes in the fair value of the designated hedged item attributable to the risk being hedged. Under a prior program, customers received fixed interest rate commercial loans and Banner Bank subsequently hedged that fixed-rate loan by entering into an interest rate swap with a dealer counterparty. Banner Bank receives fixed-rate payments from the customers on the loans and makes similar fixed-rate payments to the dealer counterparty on the swaps in exchange for variable-rate payments based on the one-month LIBOR index. Some of these interest rate swaps are designated as fair value hedges. Through application of the “short cut method of accounting,” there is an assumption that the hedges are effective. Banner Bank discontinued originating interest rate swaps under this program in 2008. As of December 31, 2018 and December 31, 2017 , the notional values or contractual amounts and fair values of the Company's derivatives designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 3,973 $ 270 $ 4,350 $ 447 $ 3,973 $ 270 $ 4,350 $ 447 (1) Included in Loans Receivable on the Consolidated Statements of Financial Condition. (2) Included in Other Liabilities on the Consolidated Statements of Financial Condition. Derivatives Not Designated in Hedge Relationships Interest Rate Swaps: Banner Bank uses an interest rate swap program for commercial loan customers, that provides the client with a variable-rate loan and enters into an interest rate swap in which the client receives a variable-rate payment in exchange for a fixed-rate payment. The Bank offsets its risk exposure by entering into an offsetting interest rate swap with a dealer counterparty for the same notional amount and length of term as the client interest rate swap providing the dealer counterparty with a fixed-rate payment in exchange for a variable-rate payment. These swaps do not qualify as designated hedges; therefore, each swap is accounted for as a free standing derivative. Mortgage Banking: The Company sells originated one- to four-family and multifamily mortgage loans into the secondary mortgage loan markets. During the period of loan origination and prior to the sale of the loans in the secondary market, the Company has exposure to movements in interest rates associated with written interest rate lock commitments with potential borrowers to originate one- to four-family loans that are intended to be sold and for closed one- to four-family and multifamily mortgage loans held for sale that are awaiting sale and delivery into the secondary market. The Company economically hedges the risk of changing interest rates associated with these mortgage loan commitments by entering into forward sales contracts to sell one- to four-family and multifamily mortgage loans or mortgage-backed securities to broker/dealers at specific prices and dates. As of December 31, 2018 and December 31, 2017 , the notional values or contractual amounts and fair values of the Company's derivatives not designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 272,374 $ 2,868 $ 285,047 $ 4,636 $ 272,374 $ 2,868 $ 285,047 $ 4,636 Mortgage loan commitments 20,229 273 29,739 225 17,763 187 13,763 153 Forward sales contracts 18,328 198 43,069 298 144,250 1,467 47,000 48 $ 310,931 $ 3,339 $ 357,855 $ 5,159 $ 434,387 $ 4,522 $ 345,810 $ 4,837 (1) Included in Other Assets on the Consolidated Statements of Financial Condition, with the exception of those interest rate swaps from prior to 2009 that were not designated in hedge relationships (with a fair value of $270,000 at December 31, 2018 and $499,000 at December 31, 2017 ), which are included in Loans Receivable. (2) Included in Other Liabilities on the Consolidated Statements of Financial Condition. Gains (losses) recognized in income on non-designated hedging instruments for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands): For the Years Ended December 31 Location on Income Statement 2018 2017 2016 Mortgage loan commitments Mortgage banking operations $ 47 $ 195 $ (348 ) Forward sales contracts Mortgage banking operations (775 ) (491 ) 296 $ (728 ) $ (296 ) $ (52 ) The Company is exposed to credit-related losses in the event of nonperformance by the counterparty to these agreements. Credit risk of the financial contract is controlled through the credit approval, limits, and monitoring procedures and management does not expect the counterparties to fail their obligations. In connection with the interest rate swaps between Banner Bank and the dealer counterparties, the agreements contain a provision where if Banner Bank fails to maintain its status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and Banner Bank would be required to settle its obligations. Similarly, Banner Bank could be required to settle its obligations under certain of its agreements if specific regulatory events occur, such as a publicly issued prompt corrective action directive, cease and desist order, or a capital maintenance agreement that required Banner Bank to maintain a specific capital level. If Banner Bank had breached any of these provisions at December 31, 2018 or December 31, 2017 , it could have been required to settle its obligations under the agreements at the termination value. As of December 31, 2018 and 2017 , the termination value of derivatives in a net liability position related to these agreements was $1.3 million and $3.7 million , respectively. The Company generally posts collateral against derivative liabilities in the form of government agency-issued bonds, mortgage-backed securities, or commercial mortgage-backed securities. Collateral posted against derivative liabilities was $13.6 million and $16.9 million as of December 31, 2018 and 2017 , respectively. Derivative assets and liabilities are recorded at fair value on the balance sheet. Prior to 2018, the recorded derivative assets and liabilities on the balance sheet did not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis and to offset net derivative positions with related collateral where applicable. The following presents additional information related to the Company's derivative contracts, by type of financial instrument, as of December 31, 2018 and December 31, 2017 (in thousands): December 31, 2018 Gross Amounts of Financial Instruments Not Offset in the Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Derivative Amount Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 Derivative liabilities Interest rate swaps $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 December 31, 2017 Gross Amounts of Financial Instruments Not Offset in the Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Derivative Amount Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 Derivative liabilities Interest rate swaps $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue: Deposit fees and other service charges for the years ended December 31, 2018 , 2017 and 2016 are summarized as follows (in thousands): Years Ended December 31 2018 2017 2016 Deposit service charges 18,089 16,725 16,863 Debit and credit interchange fees 31,713 28,358 22,578 Debit and credit card expense (8,511 ) (7,390 ) (3,078 ) Merchant services income 10,226 10,159 9,052 Merchant services expenses (7,767 ) (8,335 ) (7,245 ) Other service charges 4,324 3,935 3,741 Total deposit fees and other service charges 48,074 43,452 41,911 Deposit fees and other service charges Deposit fees and other service charges include transaction and non-transaction based deposit fees. Transaction based fees on deposit accounts are charged to deposit customers for specific services provided to the customer. These fees include such items as wire fees, official check fees, and overdraft fees. These are contract specific to each individual transaction and do not extend beyond the individual transaction. The performance obligation is completed and the fees are recognized at the time the specific transactional service is provided to the customer. Non-transactional deposit fees are typically monthly account maintenance fees charged on deposit accounts. These are day-to-day contracts that can be canceled by either party without notice. The performance obligation is satisfied and the fees are recognized on a monthly basis after the service period is completed. Debit and credit card interchange income and expenses Debit and credit card interchange income represent fees earned when a credit or debit card issued by the Banks is used to purchase goods or services at a merchant. The merchant's bank pays the Banks a default interchange rate set by MasterCard on a transaction by transaction basis. The merchant acquiring bank can stop accepting the Banks’ cards at any time and the Banks can stop further use of cards issued by them at any time. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the Banks cardholders’ card. Direct expenses associated with the credit and debit card are recorded as a net reduction against the interchange income. Merchant services income Merchant services income represents fees earned by the Banks for card payment services provided to its merchant customers. The Banks have a contract with a third party to provide card payment services to the Banks’ merchants that contract for those services. The third party provider has contracts with the Banks’ merchants to provide the card payment services. The Banks do not have a direct contractual relationship with its merchants for these services. The Banks set the rates for the services provided by the third party. The third party provider passes the payments made by the Banks’ merchants through to the Banks. The Banks, in turn, pay the third party provider for the services it provides to the Banks’ merchants. These payments to the third party provider are recorded as expenses as a net reduction against fee income. In addition, a portion of the payment received by the Banks represents interchange fees which are passed through to the card issuing bank. Income is primarily earned based on the dollar volume and number of transactions processed. The performance obligation is satisfied and the related fee is earned when each payment is accepted by the processing network. |
Business Combination and Branch
Business Combination and Branch Divestiture (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combination and Branch Divestiture [Abstract] | |
Business Combination and Branch Divestiture Disclosure [Text Block] | BUSINESS COMBINATION AND BRANCH DIVESTITURE Acquisition of Skagit Bancorp, Inc. Effective as of the close of business on November 1, 2018 , the Company acquired 100% of the outstanding common shares of Skagit Bancorp, Inc. (“Skagit”) and its wholly-owned subsidiary, Skagit Bank, a Washington state chartered commercial bank headquartered in Burlington, Washington, with 11 branches serving markets along the I-5 corridor from Seattle to the Canadian border. On that date, Skagit merged with and into Banner and Skagit Bank merged with and into Banner Bank. The merged banks will operate as Banner Bank post system conversion. Pursuant to the previously announced terms of the merger, the equity holders of Skagit received an aggregate of 3.1 million shares of Banner voting common stock, plus cash in lieu of fractional shares and cash to buyout Skagit stock options for total consideration paid of $180.0 million . The acquisition provided $915.8 million in assets, $810.2 million in deposits and $632.4 million in loans to Banner. The application of the acquisition method of accounting resulted in recognition of a CDI asset of $16.4 million and goodwill of $96.5 million . The acquired CDI has been determined to have a useful life of approximately nine years and will be amortized on an accelerated basis. Goodwill is not amortized but will be evaluated for impairment on an annual basis or more often if circumstances dictate to determine if the carrying value remains appropriate. Goodwill will not be deductible for income tax purposes as the acquisition is accounted for as a tax-free exchange for tax purposes. The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): Skagit November 1, 2018 Consideration to Skagit equity holders: Cash paid $ 329 Fair value of common shares issued 179,709 Total consideration 180,038 Fair value of assets acquired: Cash and cash equivalents $ 19,167 Securities 210,326 Loans receivable (contractual amount of $645.6 million) 632,374 Real estate owned held for sale 2,593 Property and equipment 15,788 Core deposit intangible 16,368 Deferred tax asset 95 Other assets 19,110 Total assets acquired 915,821 Fair value of liabilities assumed: Deposits 810,209 Other liabilities 22,069 Total liabilities assumed 832,278 Net assets acquired 83,543 Goodwill $ 96,495 Acquired goodwill represents the premium the Company paid over the fair value of the net tangible and intangible assets acquired. The primary reason for the acquisition was to expand the Company’s presence and density in the North Sound region of the Pacific Northwest along the I-5 corridor. The Company paid this premium for a number of reasons, including growing the Company's customer base, acquiring assembled workforces, and expanding its presence in existing markets. See Note 17, Goodwill, Other Intangible Assets and Mortgage Servicing Rights for the accounting for goodwill and other intangible assets. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values becomes available. Additional adjustments to the acquisition accounting that may be required would most likely involve loans, property and equipment, or the deferred tax asset. As of November 1, 2018, the unpaid principal balance on purchased non-credit-impaired loans was $637.4 million . The fair value of the purchased non-credit-impaired loans was $625.2 million , resulting in a discount of $12.2 million recorded on these loans, which includes $7.9 million of a credit related discount. This discount is being accreted into income over the life of the loans on an effective yield basis. The following table presents the acquired PCI loans as of the acquisition date (in thousands): Skagit November 1, 2018 Acquired PCI loans: Contractually required principal and interest payments $ 9,897 Nonaccretable difference (1,915 ) Cash flows expected to be collected 7,982 Accretable yield (995 ) Fair value of PCI loans $ 6,987 The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities of Skagit for the period November 1, 2018 to December 31, 2018. Disclosure of the amount of Skagit’s revenue and net income (excluding integration costs) included in the Company’s Consolidated Statements of Operations is impracticable due to the integration of the operations and accounting for this acquisition. The pro forma impact of the Skagit acquisition to the historical financial results was determined to not be significant. Branch Divestiture On October 6, 2017, Banner Bank completed the sale of its Utah branches and related assets and liabilities to People’s Intermountain Bank, a banking subsidiary of People’s Utah Bancorp (NASDAQ: PUB). Under the terms of the purchase and assumption agreement, the sale included $253.8 million in loans, $160.3 million in deposits and all of Banner Bank’s seven Utah bank branches located in Provo, Orem, Salem, Springville, South Jordan, Salt Lake City and Woods Cross. The sale also included $4.0 million of property and equipment and $581,000 of accrued interest. In addition, Banner allocated an associated $1.9 million of goodwill and $1.1 million of other intangible assets with the divestiture, which constituted the disposal of a business. The deposit premium paid to Banner was $13.8 million based on average daily deposits for a period prior to closing. The net gain recorded on the sale was $12.2 million . |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018subsidiary | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions, profits and balances have been eliminated. The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and under the rules and regulations of the U.S. Securities and Exchange Commission (the SEC). At December 31, 2018 , the Company had nine wholly-owned subsidiary grantor trusts (the Trusts), which issued trust preferred securities and related common securities of the trusts. The Trust subsidiaries are not included in the Company’s consolidated financial statements. |
Number of Wholly-owned Grantor Trusts | 9 |
Subsequent Events | Subsequent Events: The Company has evaluated events and transactions subsequent to December 31, 2018 for potential recognition or disclosure. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents: Cash and cash equivalents include cash and due from banks and temporary investments which are federal funds sold and interest bearing balances due from other banks. Cash and cash equivalents generally have maturities of three months or less at the date of purchase. |
Business Combinations | Business Combinations: Business combinations are accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed, both tangible and intangible, and consideration exchanged are recorded at acquisition date fair values. The excess purchase consideration over fair value of net assets acquired is recorded as goodwill. In the event that the fair value of net assets acquired exceeds the purchase price, including fair value of liabilities assumed, a bargain purchase gain is recorded on that acquisition. Expenses incurred in connection with a business combination are expensed as incurred, except for those items permitted to be capitalized under other GAAP. Changes in deferred tax asset valuation allowances related to acquired tax uncertainties are recognized in net income after the measurement period. |
Use of Estimates | Use of Estimates: In the opinion of management, the accompanying consolidated statements of financial condition and related consolidated statements of operations, comprehensive income, changes in shareholders’ equity and cash flows reflect all adjustments (which include reclassification and normal recurring adjustments) that are necessary for a fair presentation in conformity with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, management has identified several accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to an understanding of Banner’s financial statements. These policies relate to (i) the methodology for the recognition of interest income, (ii) determination of the provision and allowance for loan and lease losses, (iii) the valuation of financial assets and liabilities measured at fair value, including other-than-temporary impairment (OTTI) losses, (iv) the valuation of intangible assets, such as goodwill, core deposit intangibles (CDI) and mortgage servicing rights, (v) the valuation of real estate held for sale, (vi) the valuation or recognition of deferred tax assets and liabilities and (vii) the valuation of assets and liabilities acquired in business combinations and subsequent recognition of related income and expense. These policies and judgments, estimates and assumptions are described in greater detail in subsequent Notes to the Consolidated Financial Statements. Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the factual circumstances at the time. However, given the sensitivity of the financial statements to these critical accounting policies, the use of other judgments, estimates and assumptions could result in material differences in the Company’s results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a material impact on these estimates and the Company’s financial condition and operating results in future periods. |
Securities | Securities: Debt securities are classified as held-to-maturity when the Company has the ability and positive intent to hold them to maturity. Debt securities classified as available-for-sale are available for future liquidity requirements and may be sold prior to maturity. Debt securities classified as trading are also available for future liquidity requirements and may be sold prior to maturity. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Debt securities classified as held-to-maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts to maturity and, if appropriate, any other-than-temporary impairment losses. Debt securities classified as available-for-sale are measured at fair value. Unrealized holding gains and losses on debt securities classified as available-for-sale are excluded from earnings and are reported net of tax as accumulated other comprehensive income (loss) (AOCI), a component of shareholders’ equity, until realized. Debt securities classified as trading are also measured at fair value. Unrealized holding gains and losses on securities classified as trading are included in earnings. (See Note 18 for a more complete discussion of accounting for the fair value of financial instruments.) Declines in the fair value of debt securities below their cost that are deemed to be other-than-temporary are recognized in earnings as realized losses. Realized gains and losses on sale are computed on the specific identification method and are included in earnings on the trade date sold. Beginning January 1, 2018, equity securities were required to be measured at fair value with changes in the fair value recognized through net income. Prior to January 1, 2018 the Company had classified its equity securities as available-for-sale, subsequent to this date equity securities are reported in other assets. The Company reviews investment securities on an ongoing basis for the presence of OTTI or permanent impairment, taking into consideration current market conditions, fair value in relationship to cost, extent and nature of the change in fair value, issuer rating changes and trends, whether the Company intends to sell a security or if it is likely that it will be required to sell the security before recovery of the amortized cost basis of the investment, which may be maturity, and other factors. For debt securities, if the Company intends to sell the security or it is likely that the Company will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is not likely that the Company will be required to sell the security but the Company does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to AOCI. Impairment losses related to all other factors are presented as separate categories within AOCI. For debt securities transferred from held-to-maturity to available-for-sale, unrealized gains or losses from the time of transfer are accreted or amortized over the remaining life of the debt security based on the amount and timing of future estimated cash flows. The accretion or amortization of the amount recorded in AOCI increases the carrying value of the investment and does not affect earnings. |
Investment in FHLB Stock | Investment in FHLB Stock: At December 31, 2018 , the Banks had $32.0 million in FHLB of Des Moines stock (FHLB stock), compared to $10.3 million at December 31, 2017 . FHLB stock does not have a readily determinable fair value. The Banks' investments in FHLB stock is carried at cost or par value ( $100 per share) adjusted for observable changes in market prices minus impairment. Ownership of FHLB stock is restricted to the FHLB and member institutions and can only be purchased and redeemed at par, therefore they has been no observable changes in market prices. As members of the FHLB system, the Banks are required to maintain a minimum level of investment in FHLB stock based on specific percentages of their outstanding FHLB advances. Management periodically evaluates FHLB stock for impairment. Management's determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB, and (4) the liquidity position of the FHLB. The Company has determined there is no impairment on the FHLB stock investment as of December 31, 2018 . |
Loans Receivable | Loans Receivable: The Banks originate residential one- to four-family and multifamily mortgage loans for both portfolio investment and sale in the secondary market. The Banks also originate construction and land development, commercial real estate, commercial business, agricultural and consumer loans for portfolio investment. Loans receivable not designated as held for sale are recorded at the principal amount outstanding, net of allowance for loan losses, deferred fees, discounts and premiums. Premiums, discounts and deferred loan fees are amortized to maturity using the level-yield methodology. Some of the Company’s loans are reported as troubled debt restructures (TDRs). Loans are reported as TDRs when the Banks grant a concession(s) to a borrower experiencing financial difficulties that it would not otherwise consider. Examples of such concessions include forgiveness of principal or accrued interest, extending the maturity date(s) or providing a lower interest rate than would be normally available for a transaction of similar risk. As a result of these concessions, loans identified as TDRs are impaired as the Banks will not collect all amounts due, both principal and interest, in accordance with the terms of the original loan agreement. TDRs are accounted for in accordance with the Banks’ impaired loan accounting policies. |
Finance, Loan and Lease Receivables, Held-for-sale | Loans Held for Sale . Residential one- to four-family and multifamily mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Residential one- to four-family loans under best effort delivery commitments are carried at the lower of aggregate cost or estimated market value. Residential one- to four-family loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the economic hedges on the loans. Fair values for residential mortgage loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. During 2017, the Company elected fair value accounting on newly originated multifamily held-for-sale loans in order to match changes in the value of the loans with the value of the economic hedges on the loans; as a result, multifamily held-for-sale loans are carried at fair value as of December 31, 2017 and December 31, 2018 . Fair values for multifamily loans held for sale are calculated based on discounted cash flows using a discount rate that is a combination of market spreads for similar loan types added to selected index rates. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Non-refundable fees and direct loan origination costs related to loans held for sale are recognized as part of the cost basis of the loan. Gains and losses on sales of loans held for sale are determined using the specific identification method and are recorded in the mortgage banking operations component of non-interest income . |
Acquired Loans Policy | Acquired Loans: Purchased loans, including loans acquired in business combinations, are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired or purchased non-credit-impaired. Purchased credit-impaired (PCI) loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The excess of the cash flows expected to be collected over a PCI pool's carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the pool using the effective yield method. The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents the Company's estimate of the credit losses expected to occur and was considered in determining the fair value of the loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at the purchase date are adjusted through a change to the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. For purchased non-credit-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loans. Any subsequent deterioration in credit quality is recognized by recording a provision for loan losses. |
Income Recognition on Nonaccrual and Impaired Loans | Income Recognition on Nonaccrual and Impaired Loans and Securities: Interest on loans and securities is accrued as earned unless management doubts the collectability of the asset or the unpaid interest. Interest accruals on loans are generally discontinued when loans become 90 days past due for payment of interest or principal and the loans are then placed on nonaccrual status. All previously accrued but uncollected interest is deducted from interest income upon transfer to nonaccrual status. For any future payments collected, interest income is recognized only upon management’s assessment that there is a strong likelihood that the full amount of a loan will be repaid or recovered. A loan may be put on nonaccrual status sooner than this policy would dictate if, in management’s judgment, the interest may be uncollectable. While less common, similar interest reversal and nonaccrual treatment is applied to investment securities if their ultimate collectability becomes questionable. |
Provision and Allowance for Loan Losses | Provision and Allowance for Loan Losses: The provision for loan losses reflects the amount required to maintain the allowance for loan losses at an appropriate level based upon management’s evaluation of the adequacy of general and specific loss reserves. The Company maintains an allowance for loan losses consistent in all material respects with GAAP. The Company has established systematic methodologies for the determination of the adequacy of the Company’s allowance for loan losses. The methodologies are set forth in a formal policy and take into consideration the need for a general valuation allowance as well as specific allowances that are tied to individual problem loans. The Company increases its allowance for loan losses by charging provisions for probable loan losses against its income and values impaired loans consistent with accounting guidelines. The allowance for loan losses is maintained at a level sufficient to provide for estimated losses based on evaluating known and inherent risks in the loan portfolio and upon the Company’s continuing analysis of the factors underlying the quality of the loan portfolio. These factors include, among others, changes in the size and composition of the loan portfolio, delinquency rates, actual loan loss experience, current economic conditions, detailed analysis of individual loans for which full collectability may not be assured, and determination of the existence and realizable value of the collateral and guarantees securing the loans. Realized losses related to specific assets are applied as a reduction of the carrying value of the assets and charged immediately against the allowance for loan loss reserve. Recoveries on previously charged off loans are credited to the allowance for loan losses. The reserve is based upon factors and trends identified by Banner at the time financial statements are prepared. Although the Company uses the best information available, future adjustments to the allowance for loan losses may be necessary due to economic, operating, regulatory and other conditions beyond the Company’s control. The adequacy of general and specific reserves is based on a continuing evaluation of the pertinent factors underlying the quality of the loan portfolio as well as individual review of certain large balance loans. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Loans that are collectively evaluated for impairment include residential real estate and consumer loans and, as appropriate, smaller balance non-homogeneous loans. Larger balance non-homogeneous residential construction and land, commercial real estate, commercial business loans and unsecured loans are individually evaluated for impairment. Loans are considered impaired when, based on current information and events, the Company determines that it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors involved in determining impairment include, but are not limited to, the financial condition of the borrower and the value of the underlying collateral. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price, or if the loan is collateral dependent, at the fair value of collateral less selling costs. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. The Company’s methodology for assessing the appropriateness of the allowance for loan losses consists of several key elements, which include specific allowances, an allocated formula allowance and an unallocated allowance. Losses on specific loans are provided for when the losses are probable and estimable. General loan loss reserves are established to provide for inherent loan portfolio risks not specifically provided for. The level of general reserves is based on analysis of potential exposures existing in the loan portfolio including evaluation of historical trends, current market conditions and other relevant factors identified by us at the time the financial statements are prepared. The formula allowance is calculated by applying loss factors to outstanding loans, excluding those loans that are subject to individual analysis for specific allowances. Loss factors are based on the Company’s historical loss experience adjusted for significant environmental considerations, including the experience of other banking organizations, which in the judgment of management affects the collectability of the loan portfolio as of the evaluation date. The unallocated allowance is based upon the Company’s evaluation of various factors that are not directly measured in the determination of the formula and specific allowances. While the Company believes the estimates and assumptions used in the determination of the adequacy of the allowance for loan losses are reasonable, there can be no assurance that such estimates and assumptions will not be proved incorrect in the future, or that the actual amount of future provisions will not exceed the amount of past provisions or that any increased provisions that may be required will not adversely impact the financial condition and results of operations of the Company. In addition, the determination of the amount of the allowance for loan losses is subject to review by bank regulators as part of the routine examination process, which may result in the adjustment of reserves based upon their judgment of information available to them at the time of their examination. |
Loan Origination and Commitment Fees | Loan Origination and Commitment Fees: Loan origination fees, net of certain specifically defined direct loan origination costs, are deferred and recognized as an adjustment of the loans’ interest yield using the level-yield method over the contractual term of each loan adjusted for actual loan prepayment experience. Net deferred fees or costs related to loans held for sale are recognized as part of the cost basis of the loan. Loan commitment fees are deferred until the expiration of the commitment period unless management believes there is a remote likelihood that the underlying commitment will be exercised, in which case the fees are amortized to fee income using the straight-line method over the commitment period. If a loan commitment is exercised, the deferred commitment fee is accounted for in the same manner as a loan origination fee. Deferred commitment fees associated with expired commitments are recognized as fee income. |
Reserve for Unfunded Commitments, Policy | Reserve for Unfunded Commitments: A reserve for unfunded commitments is maintained at a level that, in the opinion of management, is adequate to absorb probable losses associated with the Banks' commitments to lend funds under existing agreements such as letters or lines of credit. Management determines the adequacy of the reserve for unfunded commitments based upon reviews of individual credit facilities, current economic conditions, the risk characteristics of the various categories of commitments and other relevant factors. The reserve is based on estimates and ultimate losses may vary from the current estimates. These estimates are evaluated on a regular basis and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Draws on unfunded commitments that are considered uncollectible at the time funds are advanced are charged to the allowance for loan losses. Provisions for unfunded commitment losses are recognized in non-interest expense and added to the reserve for unfunded commitments, which is included in other liabilities. |
Real Estate Held for Sale | Real Estate Owned: Property acquired by foreclosure or deed in lieu of foreclosure is initially recorded at the estimated fair value of the property, less expected selling costs. Development and improvement costs relating to the property are capitalized while direct holding costs are expensed. The carrying value of the property is periodically evaluated by management and, if necessary, allowances are established to reduce the carrying value to net realizable value. Gains or losses at the time the property is sold are charged or credited to operations in the period in which they are realized. The amounts the Banks will ultimately recover from real estate held for sale may differ substantially from the carrying value of the assets because of market factors beyond the Banks’ control or because of changes in the Banks’ strategies for recovering the investment. |
Schedule of Property and Equipment Useful Lives | epreciation is based upon the straight-line method applied to individual assets and groups of assets acquired in the same year over the lesser of their estimated useful lives or the related lease terms of the assets: Buildings and leased improvements 10–39 years Furniture and equipment 3 – 10 years |
Property and Equipment | Property and Equipment: Property and equipment is carried at cost less accumulated depreciation. Depreciation is based upon the straight-line method applied to individual assets and groups of assets acquired in the same year over the lesser of their estimated useful lives or the related lease terms of the assets: Buildings and leased improvements 10–39 years Furniture and equipment 3 – 10 years Routine maintenance, repairs and replacement costs are expensed as incurred. Expenditures which significantly increase values or extend useful lives are capitalized. The Company reviews buildings, leasehold improvements and equipment for impairment whenever events or changes in circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. |
Goodwill, Policy | Goodwill: Goodwill represents the excess of the purchase consideration over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, or more frequently as current circumstances and conditions warrant, for impairment. The Company completes is annual review of goodwill as of December 31. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment test is used to identify the existence of impairment and the amount of impairment loss and compares the reporting unit's estimated fair value, including goodwill, to its carrying amount. If the fair value exceeds the carrying amount then goodwill is not considered impaired. If the carrying amount exceeds its fair value, an impairment loss would be recognized equal to the amount of excess, limited to the amount of total goodwill allocated to that reporting unit. The impairment loss would be recognized as a charge to earnings. The disposal of a portion of a reporting unit that meets the definition of a business requires goodwill to be allocated for purposes of determining the gain or loss on disposal. Since the sale of the Utah branches in 2017 met the definition of a business, goodwill was allocated to the sale based on the fair value of the Utah branches compared to the relative fair value of the reporting unit. |
Other Intangible Assets | Other Intangible Assets: Other intangible assets consist primarily of core deposit intangibles (CDI), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the customer relationships associated with the deposits. CDI is being amortized on an accelerated basis over a weighted average estimated useful life of three to ten years. These assets are reviewed at least annually for events or circumstances that could impact their recoverability. These events could include loss of the underlying core deposits, increased competition or adverse changes in the economy. To the extent other identifiable intangible assets are deemed unrecoverable, impairment losses are recorded in other non-interest expense to reduce the carrying amount of the assets. Other intangibles also include favorable leasehold intangibles (LHI). LHI represents the value assigned to leases assumed in an acquisition in which the lease terms are favorable compared to a market lease at the date of acquisition. LHI is amortized over the underlying lease term and is reviewed at least annually for events or circumstances that could impair the value. |
Mortgage Servicing Rights | Mortgage Servicing Rights: Servicing assets are recognized as separate assets when rights are acquired through purchase or sale of loans. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans, the value of the servicing right is estimated and capitalized. Fair values are estimated based on an independent dealer analysis of discounted cash flows. Capitalized servicing rights are reported in other assets and are amortized into mortgage banking operations in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics for the underlying loans, such as interest rate, balance outstanding, loan type, age and remaining term, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans and is reflected in mortgage banking operations on the Consolidated Statements of Operations. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. |
Bank-Owned Life Insurance (BOLI) | Bank-Owned Life Insurance (BOLI): The Banks have purchased, or acquired through mergers, life insurance policies in connection with the implementation of certain executive supplemental income, salary continuation and deferred compensation retirement plans. These policies provide protection against the adverse financial effects that could result from the death of a key employee and provide tax-exempt income to offset expenses associated with the plans. It is the Banks’ intent to hold these policies as a long-term investment; however, there may be an income tax impact if the Bank chooses to surrender certain policies. Although the lives of individual current or former management-level employees are insured, the Banks are the respective owners and sole or partial beneficiaries. BOLI is carried at the cash surrender value (CSV) of the underlying insurance contract. Changes in the CSV and any death benefits received in excess of the CSV are recognized as non-interest income. |
Derivative Instruments | Derivative Instruments: Derivatives include “off-balance-sheet” financial products, the value of which is dependent on the value of underlying financial assets, such as stock, bonds, foreign currency, or a reference rate or index. Such derivatives include “forwards,” “futures,” “options” or “swaps.” Banner Bank is a party to $4.0 million (all of which is designated in a hedge relationship) in notional amounts of interest rate swaps at December 31, 2018 . Some of these swaps serve as hedges to an equal amount of fixed rate loans which include market value prepayment penalties that mirror the provision of the specifically matched interest rate swaps. In addition, Banner Bank uses an interest rate swap program for commercial loan customers that provides the client with a variable rate loan and enters into an interest rate swap allowing them to effectively fix their loan interest rates. These customer swaps are matched with third party swaps with qualified broker/dealer or banks to offset the risk. At December 31, 2018 , Banner Bank had $272.4 million in notional amounts of these customer interest rate swaps outstanding, with an equal amount of offsetting third party swaps also in place. The fair value adjustments for these swaps are reflected in other assets or other liabilities as appropriate. Further, as a part of its mortgage banking activities, the Company issues “rate lock” commitments to one- to four-family loan borrowers and obtains offsetting “best efforts” delivery commitments from purchasers of loans. The Company uses forward contracts for the sale of mortgage-backed securities and mandatory delivery commitments for the sale of loans to hedge one- to four-family loan "rate lock" commitments and one- to four-family loans held for sale. The Company also uses forward contracts for the sale of mortgage backed securities to hedge multifamily loans held for sale. The commitments to originate mortgage loans held for sale and the related delivery contracts are considered derivatives. The Company recognizes all derivatives as either assets or liabilities in the balance sheet and requires measurement of those instruments at fair value through adjustments to current earnings. None of these residential mortgage loan related derivatives are designated as hedging instruments for accounting purposes. Rather, they are accounted for as free-standing derivatives, or economic hedges, and the Company reports changes in fair values of its derivatives in current period net income. The fair values for these instruments, which generally change as a result of changes in the level of market interest rates, are estimated based on dealer quotes and secondary market sources. Assumptions used include rate assumptions based on historical information, current mortgage interest rates, the stage of completion of the underlying application and underwriting process, the time remaining until the expiration of the derivative loan commitment, and the expected net future cash flows related to the associated servicing of the loan (see Note 24 for a more complete discussion of derivatives and hedging). |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Banks, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Banks do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Advertising Expenses | Advertising Expenses: Advertising costs are expensed as incurred. Costs related to production of advertising are considered incurred when the advertising is first used. |
Income Taxes | Income Taxes: The Company files a consolidated income tax return including all of its wholly-owned subsidiaries on a calendar year basis. Income taxes are accounted for using the asset and liability method. Under this method, a deferred tax asset or liability is determined based on the enacted tax rates which will be in effect when the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities are expected to be reported in the Company’s income tax returns. The effect on deferred taxes of a change in tax rates is recognized in income in the period of change. A valuation allowance is recognized as a reduction to deferred tax assets when management determines it is more likely than not that deferred tax assets will not be available to offset future income tax liabilities. In December 2017, the federal government enacted the Tax Cuts and Jobs Act (the 2017 Tax Act). Among other provisions, the 2017 Tax Act reduced the federal marginal corporate income tax rate from 35% to 21% . As a result of the passage of the 2017 Tax Act, the Company recorded a $42.6 million charge for the revaluation of its net deferred tax asset to account for the future impact of the decrease in the corporate income tax rate and other provisions of the legislation. The charge was recorded as an increase to tax expense and reduction of the net deferred asset for the year ended December 31, 2017. The Company’s 2017 financial results reflect the income tax effects of the 2017 Tax Act for which the accounting was complete and provisional amounts for those specific income tax effects of the 2017 Tax Act for which the accounting was incomplete but a reasonable estimate could be determined. The $42.6 million charge recorded by the Company included a $4.2 million of provisional income tax expense related to Alternative Minimum Tax (AMT) credits that are limited under Section 383 of the Internal Revenue Code of 1986 (Code), which resulted in a reduction in the AMT deferred tax asset. The utilization of the limited AMT credits under the refundable AMT credit law was uncertain as of December 31, 2017. Subsequently, in 2018 the Company determined it could use the AMT credits and reversed the previously recorded $4.2 million provisional income tax expense. Accounting standards for income taxes prescribe a recognition threshold and measurement process for financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return, and also provides guidance on the de-recognition of previously recorded benefits and their classification, as well as the proper recording of interest and penalties, accounting in interim periods, disclosures and transition. The Company periodically reviews its income tax positions based on tax laws and regulations and financial reporting considerations, and records adjustments as appropriate. This review takes into consideration the status of current taxing authorities’ examinations of the Company’s tax returns, recent positions taken by the taxing authorities on similar transactions, if any, and the overall tax environment. As of December 31, 2018 , the Company had an insignificant amount of unrecognized tax benefits for uncertain tax positions, none of which if recognized would materially affect the effective tax rate. The Company does not anticipate that the amount of unrecognized tax benefits will significantly increase or decrease in the next twelve months. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense. The amount of interest and penalties accrued for the years ended December 31, 2018 , 2017 and 2016 is immaterial. The Company files consolidated income tax returns in Oregon, California, Utah, Montana and Idaho and for federal purposes. The Company has tax years 2015–2017 open for tax examination under the statute of limitation provisions of the Code. |
Share-Based Compensation | Stock-Based Compensation: The Company maintains a number of stock-based incentive plans, which are discussed in more detail in Note 14, Stock-Based Compensation Plans. Under these plans, the Company compensates employees and directors with time-based restricted stock and restricted stock unit grants. Some restricted stock awards include performance-based and market-based goals that impact the number of shares that ultimately vest based on the level of goal achievement. The Company measures the cost of employee or director services received in exchange for an award of equity instruments based on the fair value of the award, which is the intrinsic value on the grant date. This cost is recognized as expense in the Consolidated Statements of Operations ratably over the vesting period of the award. Any tax benefit or deficiency is recorded as income tax benefit or expense in the period the shares vest. Excess tax benefits are classified along with other income tax cash flows as an operating activity. The Company issues restricted stock and restricted stock unit awards which vest over a one or three year period during which time the employee or director accrues or receives dividends and may have full voting rights depending on the terms of the grant. |
Earnings Per Share, Policy | Earnings Per Share: Earnings per common share is computed under the two-class method. Pursuant to the two-class method, nonvested stock-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Application of the two-class method resulted in the equivalent earnings per share to the treasury method. Basic earnings per common share is computed by dividing net earnings allocated to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. |
Comprehensive Income | Comprehensive Income: Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. In addition, certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, and such items, along with net income, are components of comprehensive income which is reported in the Consolidated Statements of Comprehensive Income. |
Business Segments | Business Segments: The Company is managed by legal entity and not by lines of business. Each of the Banks is a community oriented commercial bank chartered in the State of Washington. The Banks’ primary business is that of a traditional banking institution, gathering deposits and originating loans for portfolio in its respective primary market areas. The Banks offer a wide variety of deposit products to their consumer and commercial customers. Lending activities include the origination of real estate, commercial/agriculture business and consumer loans. Banner Bank is also an active participant in the secondary market, originating residential loans for sale on both a servicing released and servicing retained basis. In addition to interest income on loans and investment securities, the Banks receive other income from deposit service charges, loan servicing fees and from the sale of loans and investments. The performance of the Banks is reviewed by the Company’s executive management and Board of Directors on a monthly basis. All of the executive officers of the Company are members of Banner Bank’s management team. Generally Accepted Accounting Principles establish standards to report information about operating segments in annual financial statements and require reporting of selected information about operating segments in interim reports to shareholders. The Company has determined that its current business and operations consist of a single business segment and a single reporting unit. |
Reclassification | Reclassification: Certain reclassifications have been made to the prior years’ consolidated financial statements and/or schedules to conform to the current year’s presentation. These reclassifications may have affected certain reported amounts and ratios for the prior periods. These reclassifications had no effect on retained earnings or net income as previously presented and the effect of these reclassifications is considered immaterial. |
ACCOUNTING STANDARDS RECENTLY_2
ACCOUNTING STANDARDS RECENTLY ADOPTED OR ISSUED Schedule of new accounting pronouncements and changes in accounting principles (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table presents the impact of adopting of the new revenue standard on our Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 (in thousands): For the year ended December 31, 2018 For the year ended December 31, 2017 For the year ended December 31, 2016 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: Deposit fees and other service charges $ 48,074 $ 55,841 $ (7,767 ) $ 43,452 $ 51,787 $ (8,335 ) $ 41,911 $ 49,156 $ (7,245 ) Non-interest expense: Payment and card processing expenses $ 15,412 $ 23,179 $ (7,767 ) $ 14,330 $ 22,665 $ (8,335 ) $ 14,359 $ 21,604 $ (7,245 ) |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities | The amortized cost, gross unrealized gains and losses and estimated fair value of securities at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Corporate bonds $ 27,203 $ 25,896 Available-for-Sale: U.S. Government and agency obligations $ 151,012 $ 149 $ (2,049 ) $ 149,112 Municipal bonds 116,548 1,806 (532 ) 117,822 Corporate bonds 3,556 — (61 ) 3,495 Mortgage-backed or related securities 1,355,258 5,210 (16,607 ) 1,343,861 Asset-backed securities 22,047 6 (120 ) 21,933 $ 1,648,421 $ 7,171 $ (19,369 ) $ 1,636,223 Held-to-Maturity: U.S. Government and agency obligations $ 1,006 $ 14 $ (1 ) $ 1,019 Municipal bonds: 176,663 1,727 (2,578 ) 175,812 Corporate bonds 3,736 — (13 ) 3,723 Mortgage-backed or related securities 52,815 66 (898 ) 51,983 $ 234,220 $ 1,807 $ (3,490 ) $ 232,537 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Municipal bonds $ 100 $ 100 Corporate bonds 27,132 22,058 Equity securities 14 160 $ 27,246 $ 22,318 Available-for-Sale: U.S. Government and agency obligations $ 72,829 $ 68 $ (431 ) $ 72,466 Municipal bonds 68,513 665 (445 ) 68,733 Corporate bonds 5,431 6 (44 ) 5,393 Mortgage-backed or related securities 745,956 1,003 (7,402 ) 739,557 Asset-backed securities 27,667 184 (93 ) 27,758 Equity securities 5,716 10 (148 ) 5,578 $ 926,112 $ 1,936 $ (8,563 ) $ 919,485 Held-to-Maturity: U.S. Government and agency obligations $ 1,024 $ 29 $ — $ 1,053 Municipal bonds: 189,860 3,385 (1,252 ) 191,993 Corporate bonds 3,978 7 — 3,985 Mortgage-backed or related securities 65,409 266 (518 ) 65,157 $ 260,271 $ 3,687 $ (1,770 ) $ 262,188 |
Schedule of Securities with Continuous Loss Position | At December 31, 2018 and 2017 , the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position was as follows (in thousands): December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 75,885 $ (1,240 ) $ 50,508 $ (809 ) $ 126,393 $ (2,049 ) Municipal bonds 6,422 (54 ) 27,231 (478 ) 33,653 (532 ) Corporate bonds 3,199 (56 ) 295 (5 ) 3,494 (61 ) Mortgage-backed or related securities 316,074 (2,939 ) 571,989 (13,668 ) 888,063 (16,607 ) Asset-backed securities 10,582 (24 ) 9,913 (96 ) 20,495 (120 ) $ 412,162 $ (4,313 ) $ 659,936 $ (15,056 ) $ 1,072,098 $ (19,369 ) Held-to-Maturity: U.S. Government and agency obligations $ 145 $ (1 ) $ — $ — $ 145 $ (1 ) Municipal bonds 29,898 (274 ) 44,637 (2,304 ) 74,535 (2,578 ) Corporate bonds — — 487 (13 ) 487 (13 ) Mortgage-backed or related securities 10,761 (220 ) 30,035 (678 ) 40,796 (898 ) $ 40,804 $ (495 ) $ 75,159 $ (2,995 ) $ 115,963 $ (3,490 ) December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale: U.S. Government and agency obligations $ 31,276 $ (211 ) $ 23,341 $ (220 ) $ 54,617 $ (431 ) Municipal bonds 20,879 (185 ) 13,360 (260 ) 34,239 (445 ) Corporate bonds 296 (4 ) 4,682 (40 ) 4,978 (44 ) Mortgage-backed or related securities 559,916 (5,138 ) 100,662 (2,264 ) 660,578 (7,402 ) Asset-backed securities — — 9,926 (93 ) 9,926 (93 ) Equity securities 5,480 (148 ) — — 5,480 (148 ) $ 617,847 $ (5,686 ) $ 151,971 $ (2,877 ) $ 769,818 $ (8,563 ) Held-to-Maturity: Municipal bonds $ 21,839 $ (171 ) $ 34,314 $ (1,081 ) $ 56,153 $ (1,252 ) Mortgage-backed or related securities 38,023 (378 ) 4,434 (140 ) 42,457 (518 ) $ 59,862 $ (549 ) $ 38,748 $ (1,221 ) $ 98,610 $ (1,770 ) |
Schedule of Securities by Contractual Maturity Date | The amortized cost and estimated fair value of securities at December 31, 2018 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. December 31, 2018 Trading Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Maturing in one year or less $ — $ — $ 10,680 $ 10,661 $ 2,885 $ 2,875 Maturing after one year through five years — — 84,333 84,140 60,124 59,591 Maturing after five years through ten years — — 383,987 381,628 62,942 63,352 Maturing after ten years through twenty years 27,203 25,896 210,917 210,883 70,968 71,378 Maturing after twenty years — — 958,504 948,911 37,301 35,341 $ 27,203 $ 25,896 $ 1,648,421 $ 1,636,223 $ 234,220 $ 232,537 |
Schedule of Pledged Securities | The following table presents, as of December 31, 2018 , investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): Carrying Value Amortized Cost Fair Value Purpose or beneficiary: State and local governments public deposits $ 143,336 $ 143,505 $ 143,887 Interest rate swap counterparties 11,356 11,576 11,344 Repurchase transaction accounts 154,042 155,014 154,042 Other 3,827 3,827 3,719 Total pledged securities $ 312,561 $ 313,922 $ 312,992 |
LOANS RECEIVABLE AND THE ALLO_2
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Impaired loans excluding purchased credit impaired loans [Table Text Block] | The following tables provide additional information on impaired loans, excluding PCI loans, with and without specific allowance reserves at December 31, 2018 and 2017 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,193 $ 2,768 $ 200 $ 19 Investment properties 7,287 1,320 5,606 226 Multifamily construction 1,901 1,427 — — One- to four-family construction 919 919 — — Land and land development: Residential 1,134 798 — — Commercial 44 44 — — Commercial business 4,014 2,937 391 16 Agricultural business/farmland 4,863 1,751 2,561 96 One- to four-family residential 6,724 4,314 2,358 51 Consumer: Consumer secured by one- to four-family 1,622 1,438 133 6 Consumer—other 112 49 62 2 $ 31,813 $ 17,765 $ 11,311 $ 416 December 31, 2017 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 7,807 $ 6,447 $ 199 $ 18 Investment properties 11,296 4,200 6,884 263 One- to four-family construction 298 298 — — Land and land development: Residential 1,134 798 — — Commercial business 4,441 3,424 555 50 Agricultural business/farmland 9,388 6,230 3,031 264 One- to four-family residential 9,547 3,709 5,775 178 Consumer: Consumer secured by one- to four-family 1,498 1,324 139 7 Consumer—other 134 58 73 2 $ 45,543 $ 26,488 $ 16,656 $ 782 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $9.0 million and $10.6 million of homogenous and small balance loans as of December 31, 2018 and December 31, 2017 , respectively, that are collectively evaluated for impairment for which a general reserve has been established. (2) Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value. |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the year ended December 31, 2018 (in thousands): For the Year Ended December 31, 2018 Commercial Real Estate Multifamily Real Estate Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 Provision for loan losses 3,063 2,185 (2,860 ) 2,129 417 1,952 5,141 (3,527 ) 8,500 Recoveries 1,646 — 213 1,049 64 750 366 — 4,088 Charge-offs (401 ) — (479 ) (2,051 ) (756 ) (43 ) (1,401 ) — (5,131 ) Ending balance $ 27,132 $ 3,818 $ 24,442 $ 19,438 $ 3,778 $ 4,714 $ 7,972 $ 5,191 $ 96,485 December 31, 2018 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance individually evaluated for impairment $ 246 $ — $ — $ 16 $ 96 $ 51 $ 7 $ — $ 416 Allowance collectively evaluated for impairment 26,886 3,818 24,442 19,399 3,622 4,663 7,965 5,191 95,986 Allowance for purchased credit-impaired loans — — — 23 60 — — — 83 Total allowance for loan losses $ 27,132 $ 3,818 $ 24,442 $ 19,438 $ 3,778 $ 4,714 $ 7,972 $ 5,191 $ 96,485 December 31, 2018 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Loan balances: Loans individually evaluated for impairment $ 8,625 $ — $ 3,096 $ 391 $ 3,298 $ 4,469 $ 196 $ — $ 20,075 Loans collectively evaluated for impairment 3,540,538 368,698 1,104,271 1,482,195 401,082 969,046 784,277 — 8,650,107 Purchased credit-impaired loans 11,993 138 137 1,028 493 101 523 — 14,413 Total loans $ 3,561,156 $ 368,836 $ 1,107,504 $ 1,483,614 $ 404,873 $ 973,616 $ 784,996 $ — $ 8,684,595 The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the year ended December 31, 2017 (in thousands): For the Year Ended December 31, 2017 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,993 $ 1,360 $ 34,252 $ 16,533 $ 2,967 $ 2,238 $ 4,104 $ 3,550 $ 85,997 Provision for loan losses 2,639 262 (7,921 ) 4,355 3,326 (415 ) 586 5,168 8,000 Recoveries 372 11 1,237 1,226 134 270 481 — 3,731 Charge-offs (1,180 ) — — (3,803 ) (2,374 ) (38 ) (1,305 ) — (8,700 ) Ending balance $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 December 31, 2017 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance individually evaluated for impairment $ 281 $ — $ — $ 50 $ 264 $ 178 $ 9 $ — $ 782 Allowance collectively evaluated for impairment 22,543 1,633 27,567 18,214 3,676 1,877 3,857 8,718 88,085 Allowance for purchased credit-impaired loans — — 1 47 113 — — — 161 Total allowance for loan losses $ 22,824 $ 1,633 $ 27,568 $ 18,311 $ 4,053 $ 2,055 $ 3,866 $ 8,718 $ 89,028 December 31, 2017 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Loan balances: Loans individually evaluated for impairment $ 16,017 $ — $ 750 $ 1,812 $ 8,585 $ 5,136 $ 212 $ — $ 32,512 Loans collectively evaluated for impairment 3,190,921 314,019 903,408 1,275,923 329,238 843,017 688,536 — 7,545,062 Purchased credit-impaired loans 14,848 169 3,365 2,159 565 136 68 — 21,310 Total loans $ 3,221,786 $ 314,188 $ 907,523 $ 1,279,894 $ 338,388 $ 848,289 $ 688,816 $ — $ 7,598,884 The following table provides additional information on the allowance for loan losses for the year ended December 31, 2016 (in thousands): For the Year Ended December 31, 2016 Commercial Real Estate Multifamily Construction and Land Commercial Business Agricultural Business One- to Four-Family Residential Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 20,716 $ 4,195 $ 27,131 $ 13,856 $ 3,645 $ 4,732 $ 902 $ 2,831 $ 78,008 Provision for loan losses 441 (2,835 ) 5,566 1,632 (170 ) (3,402 ) 4,079 719 6,030 Recoveries 582 — 2,171 1,993 59 1,283 610 — 6,698 Charge-offs (746 ) — (616 ) (948 ) (567 ) (375 ) (1,487 ) — (4,739 ) Ending balance $ 20,993 $ 1,360 $ 34,252 $ 16,533 $ 2,967 $ 2,238 $ 4,104 $ 3,550 $ 85,997 |
Past Due Financing Receivables [Table Text Block] | The following tables provide additional detail on the age analysis of Banner’s past due loans as of December 31, 2018 and 2017 (in thousands): December 31, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 785 $ 519 $ 2,223 $ 3,527 $ 8,531 $ 1,418,039 $ 1,430,097 $ — $ 2,768 Investment properties 91 498 934 1,523 3,462 2,126,074 2,131,059 — 1,320 Multifamily real estate 317 — — 317 138 368,381 368,836 — — Commercial construction — — 1,427 1,427 — 170,983 172,410 — 1,427 Multifamily construction — — — — — 184,630 184,630 — — One- to four-family construction 4,781 1,078 919 6,778 137 527,763 534,678 — 919 Land and land development: Residential 450 — 798 1,248 — 187,260 188,508 — 798 Commercial 34 — 44 78 — 27,200 27,278 — 44 Commercial business 3,982 1,305 1,756 7,043 1,028 1,475,543 1,483,614 1 2,936 Agricultural business/farmland 343 1,518 1,601 3,462 493 400,918 404,873 — 1,751 One- to four-family residential 5,440 1,790 1,657 8,887 101 964,628 973,616 658 1,544 Consumer: Consumer secured by one- to four-family 1,136 765 706 2,607 432 565,940 568,979 238 1,201 Consumer—other 911 385 9 1,305 91 214,621 216,017 9 40 Total $ 18,270 $ 7,858 $ 12,074 $ 38,202 $ 14,413 $ 8,631,980 $ 8,684,595 $ 906 $ 14,748 December 31, 2017 30–59 Days Past Due 60–89 Days Past Due 90 Days or More Past Due Total Past Due Purchased Credit-Impaired Current Total Loans Loans 90 Days or More Past Due and Accruing Non-accrual Commercial real estate: Owner-occupied $ 5,323 $ 76 $ 5,490 $ 10,889 $ 7,682 $ 1,265,792 $ 1,284,363 $ — $ 6,447 Investment properties 1,737 — 4,096 5,833 7,166 1,924,424 1,937,423 — 4,199 Multifamily real estate 105 — — 105 169 313,914 314,188 — — Commercial construction — — — — — 148,435 148,435 — — Multifamily construction 3,416 — — 3,416 — 151,246 154,662 — — One- to four-family construction 4,892 725 298 5,915 446 408,966 415,327 298 — Land and land development: Residential — — 798 798 — 163,718 164,516 — 798 Commercial — — — — 2,919 21,664 24,583 — — Commercial business 1,574 404 2,577 4,555 2,159 1,273,180 1,279,894 18 3,406 Agricultural business/farmland 598 533 2,017 3,148 565 334,675 338,388 — 6,132 One- to four-family residential 4,475 1,241 2,715 8,431 136 839,722 848,289 1,085 3,264 Consumer: Consumer secured by one- to four-family 1,355 62 713 2,130 — 520,801 522,931 85 1,239 Consumer—other 609 136 15 760 68 165,057 165,885 — 58 Total $ 24,084 $ 3,177 $ 18,719 $ 45,980 $ 21,310 $ 7,531,594 $ 7,598,884 $ 1,486 $ 25,543 |
Schedule of Loans Receivable, Including Loans Held for Sale | Loans receivable at December 31, 2018 and 2017 are summarized as follows (dollars in thousands): December 31, 2018 December 31, 2017 Amount Percent of Total Amount Percent of Total Commercial real estate: Owner-occupied $ 1,430,097 16.4 % $ 1,284,363 16.9 % Investment properties 2,131,059 24.5 1,937,423 25.5 Multifamily real estate 368,836 4.2 314,188 4.1 Commercial construction 172,410 2.0 148,435 2.0 Multifamily construction 184,630 2.1 154,662 2.0 One- to four-family construction 534,678 6.2 415,327 5.5 Land and land development: Residential 188,508 2.2 164,516 2.2 Commercial 27,278 0.3 24,583 0.3 Commercial business 1,483,614 17.1 1,279,894 16.8 Agricultural business, including secured by farmland 404,873 4.7 338,388 4.4 One- to four-family residential 973,616 11.2 848,289 11.2 Consumer: Consumer secured by one- to four-family 568,979 6.6 522,931 6.9 Consumer—other 216,017 2.5 165,885 2.2 Total loans outstanding 8,684,595 100.0 % 7,598,884 100.0 % Less allowance for loan losses (96,485 ) (89,028 ) Net loans $ 8,588,110 $ 7,509,856 Loan amounts are net of unearned loan fees in excess of unamortized costs of $1.4 million as of December 31, 2018 and included net unamortized costs of $158,000 at December 31, 2017 . Net loans include net discounts on acquired loans of $25.7 million and $21.1 million as of December 31, 2018 and 2017 , respectively. |
Schedule of Purchased Credit-Impaired Loans, Changes in Accretable Yield | The following table presents the changes in the accretable yield for PCI loans for the years ended December 31, 2018 and 2017 (in thousands): Years Ended December 31 2018 2017 Balance, beginning of period $ 6,520 $ 8,717 Additions 995 — Accretion to interest income (7,509 ) (5,929 ) Disposals and other 58 (564 ) Reclassifications from non-accretable difference 5,152 4,296 Balance, end of period $ 5,216 $ 6,520 |
Schedule of Impaired Loans With and Without Specific Reserves | The following tables provide additional information on impaired loans, excluding PCI loans, with and without specific allowance reserves at December 31, 2018 and 2017 . Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands): December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 3,193 $ 2,768 $ 200 $ 19 Investment properties 7,287 1,320 5,606 226 Multifamily construction 1,901 1,427 — — One- to four-family construction 919 919 — — Land and land development: Residential 1,134 798 — — Commercial 44 44 — — Commercial business 4,014 2,937 391 16 Agricultural business/farmland 4,863 1,751 2,561 96 One- to four-family residential 6,724 4,314 2,358 51 Consumer: Consumer secured by one- to four-family 1,622 1,438 133 6 Consumer—other 112 49 62 2 $ 31,813 $ 17,765 $ 11,311 $ 416 December 31, 2017 Unpaid Principal Balance Recorded Investment Related Allowance Without Allowance (1) With Allowance (2) Commercial real estate: Owner-occupied $ 7,807 $ 6,447 $ 199 $ 18 Investment properties 11,296 4,200 6,884 263 One- to four-family construction 298 298 — — Land and land development: Residential 1,134 798 — — Commercial business 4,441 3,424 555 50 Agricultural business/farmland 9,388 6,230 3,031 264 One- to four-family residential 9,547 3,709 5,775 178 Consumer: Consumer secured by one- to four-family 1,498 1,324 139 7 Consumer—other 134 58 73 2 $ 45,543 $ 26,488 $ 16,656 $ 782 (1) Includes loans without an allowance reserve that have been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $9.0 million and $10.6 million of homogenous and small balance loans as of December 31, 2018 and December 31, 2017 , respectively, that are collectively evaluated for impairment for which a general reserve has been established. (2) Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value. The following table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate: Owner-occupied $ 3,806 $ 11 $ 3,697 $ 11 $ 2,721 $ 2 Investment properties 7,822 314 9,136 195 18,529 242 Multifamily real estate — — 251 10 513 21 Commercial construction 115 — — — — — One- to four-family construction 778 6 418 27 1,158 75 Land and land development: Residential 994 10 1,396 42 1,948 85 Commercial 4 — 867 — 1,003 — Commercial business 3,443 21 5,996 68 4,290 37 Agricultural business/farmland 5,501 102 6,184 207 5,004 119 One- to four-family residential 7,845 302 9,499 322 11,976 441 Consumer: Consumer secured by one- to four-family 1,583 17 1,635 9 1,778 17 Consumer—other 142 4 184 7 615 17 $ 32,033 $ 787 $ 39,263 $ 898 $ 49,535 $ 1,056 |
Schedule of Troubled Debt Restructurings | The following table presents TDRs by accrual and nonaccrual status at December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Accrual Status Nonaccrual Status Total TDRs Accrual Nonaccrual Total Commercial real estate: Owner-occupied $ 200 $ 78 $ 278 $ 199 $ 87 $ 286 Investment properties 5,606 — 5,606 6,884 — 6,884 Commercial business 391 — 391 555 — 555 Agricultural business/farmland 2,561 — 2,561 3,129 29 3,158 One- to four-family residential 4,469 239 4,708 5,136 801 5,937 Consumer: Consumer secured by one- to four-family 133 — 133 139 — 139 Consumer—other 62 — 62 73 — 73 $ 13,422 $ 317 $ 13,739 $ 16,115 $ 917 $ 17,032 As of December 31, 2018 and 2017 , the Company had commitments to advance funds up to an additional amount of none and $45,000 , respectively, related to TDRs. |
Schedule of Newly Restructured Loans | The following table presents new TDRs that occurred during the years ended December 31, 2017 and 2016 (dollars in thousands): Number of Contracts Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Year Ended December 31, 2017 Recorded Investment (1) (2) Commercial real estate: Investment properties 1 $ 3,714 $ 3,714 Total 1 $ 3,714 $ 3,714 Year Ended December 31, 2016 Recorded Investment (1) (2) Commercial real estate: Owner-occupied 1 $ 194 $ 194 One- to four-family residential 1 $ 78 $ 78 Total 2 $ 272 $ 272 (1) Since most loans were already considered classified and/or on non-accrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses. (2) Generally, these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. |
Schedule of Troubled Debt Restructurings Which Incurred A Payment Default | TDRs which incurred a payment default within the years ended December 31, 2018 and December 31, 2017 for which the payment default occurred within twelve months of the restructure date. A default on a restructured loan results in a transfer to nonaccrual status, a charge-off or a combination of both. |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables show Banner’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristic as of December 31, 2018 and 2017 (in thousands): December 31, 2018 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,396,721 $ 6,963 $ 26,413 $ — $ — $ 1,430,097 Investment properties 2,122,621 — 8,438 — — 2,131,059 Multifamily real estate 368,262 — 574 — — 368,836 Commercial construction 159,167 11,816 1,427 — — 172,410 Multifamily construction 184,630 — — — — 184,630 One- to four-family construction 533,759 — 919 — — 534,678 Land and land development: Residential 187,710 — 798 — — 188,508 Commercial 27,200 — 78 — — 27,278 Commercial business 1,436,733 7,661 39,133 87 — 1,483,614 Agricultural business, including secured by farmland 392,318 4,214 8,341 — — 404,873 One- to four-family residential 969,011 499 4,106 — — 973,616 Consumer: Consumer secured by one- to four-family 564,001 — 4,978 — — 568,979 Consumer—other 215,706 9 302 — — 216,017 Total $ 8,557,839 $ 31,162 $ 95,507 $ 87 $ — $ 8,684,595 December 31, 2017 By class: Pass (Risk Ratings 1-5) (1) Special Mention Substandard Doubtful Loss Total Loans Commercial real estate: Owner-occupied $ 1,246,125 $ 12,227 $ 26,011 $ — $ — $ 1,284,363 Investment properties 1,918,940 9,118 9,365 — — 1,937,423 Multifamily real estate 313,432 — 756 — — 314,188 Commercial construction 148,435 — — — — 148,435 Multifamily construction 154,662 — — — — 154,662 One- to four-family construction 411,802 — 3,525 — — 415,327 Land and land development: Residential 153,073 10,554 889 — — 164,516 Commercial 21,665 — 2,918 — — 24,583 Commercial business 1,213,365 12,135 54,282 112 — 1,279,894 Agricultural business, including secured by farmland 321,110 3,852 13,426 — — 338,388 One- to four-family residential 842,304 569 5,416 — — 848,289 Consumer: Consumer secured by one- to four-family 520,675 — 2,256 — — 522,931 Consumer—other 165,594 13 278 — — 165,885 Total $ 7,431,182 $ 48,468 $ 119,122 $ 112 $ — $ 7,598,884 (1) The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, as of December 31, 2018 and 2017 , in the commercial business category, $590.9 million and $296.8 million , respectively, of credit-scored small business loans. As loans in these homogeneous pools become non-accrual, they are individually risk-rated. |
REAL ESTATE OWNED, HELD FOR S_2
REAL ESTATE OWNED, HELD FOR SALE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Schedule of Changes in Real Estate Owned, Net of Valuation Allowance | The following table presents the changes in REO, net of valuation allowance, for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Years Ended December 31 2018 2017 2016 Balance, beginning of period $ 360 $ 11,081 $ 11,627 Additions from loan foreclosures 641 46 8,909 Additions from capitalized costs — 54 — Additions from acquisitions 2,593 — 400 Proceeds from dispositions of REO (838 ) (13,474 ) (10,812 ) Gain on sale of REO 242 2,909 1,833 Valuation adjustments in the period (387 ) (256 ) (876 ) Balance, end of period $ 2,611 $ 360 $ 11,081 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Land, buildings and equipment owned by the Company and its subsidiaries at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31 2018 2017 Land (1) $ 37,835 $ 35,080 Buildings and leasehold improvements (1) 163,813 154,374 Furniture and equipment 122,614 105,643 324,262 295,097 Less accumulated depreciation (152,453 ) (140,282 ) Property and equipment, net $ 171,809 $ 154,815 (1) The Company had $557,000 and $3.8 million of properties held for sale that were included in land and buildings at December 31, 2018 and 2017 , respectively. |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company’s obligations under long-term property leases are as follows (in thousands): Year Amount 2019 $ 10,876 2020 10,450 2021 9,485 2022 6,716 2023 4,248 Thereafter 11,225 Total $ 53,000 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | Deposits consist of the following at December 31, 2018 and 2017 (in thousands): December 31 2018 2017 Non-interest-bearing checking $ 3,657,817 $ 3,265,544 Interest-bearing checking 1,191,016 971,137 Regular savings accounts 1,842,581 1,557,500 Money market accounts 1,465,369 1,422,313 Total interest-bearing transaction and savings accounts 4,498,966 3,950,950 Certificates of deposit: Certificates of deposit less than or equal to $250,000 1,143,303 813,997 Certificates of deposit greater than $250,000 176,962 152,940 Total certificates of deposit (1) 1,320,265 966,937 Total deposits $ 9,477,048 $ 8,183,431 Included in total deposits: Public fund transaction accounts $ 217,401 $ 198,719 Public fund interest-bearing certificates 30,089 23,685 Total public deposits $ 247,490 $ 222,404 Total brokered deposits $ 377,347 $ 57,228 (1) Certificates of deposit included $563,000 of acquisition discounts at December 31, 2018 and $11,000 of acquisition premiums at December 31, 2017 . |
Schedule Maturities and Weighted Average Interest Rates of Certificates of Deposit | Scheduled maturities and weighted average interest rates of certificate accounts at December 31, 2018 are as follows (dollars in thousands): December 31, 2018 Amount Weighted Average Rate Maturing in one year or less $ 1,001,206 1.15 % Maturing after one year through two years 201,919 1.09 Maturing after two years through three years 90,247 1.57 Maturing after three years through four years 13,364 1.22 Maturing after four years through five years 11,282 1.75 Maturing after five years 2,247 1.07 Total certificates of deposit $ 1,320,265 1.17 % |
ADVANCES FROM FEDERAL HOME LO_2
ADVANCES FROM FEDERAL HOME LOAN BANK OF DES MOINES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of Federal Home Loan Bank Advances, Fiscal Year Maturity | At December 31, 2018 and 2017 , FHLB advances were scheduled to mature as follows (in thousands): At or for the Years Ended December 31 2018 2017 Amount Weighted Average Rate Amount Weighted Average Rate Maturing in one year or less $ 540,000 2.64 % $ — — % Maturing after one year through three years — — — — Maturing after three years through five years — — — — Maturing after five years 189 5.94 202 5.94 Total FHLB advances $ 540,189 2.64 % $ 202 5.94 % |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowings, Maturity | A summary of all other borrowings at December 31, 2018 and 2017 by the period remaining to maturity is as follows (dollars in thousands): At or for the Years Ended December 31 2018 2017 Amount Weighted Average Rate Amount Weighted Average Rate Repurchase agreements: Maturing in one year or less $ 118,995 0.21 % $ 95,860 0.29 % Maturing after one year through two years — — — — Maturing after two years — — — — Total year-end outstanding $ 118,995 0.21 % $ 95,860 0.29 % Average outstanding $ 108,065 0.21 % $ 111,872 0.28 % Maximum outstanding at any month-end $ 121,766 n/a $ 120,245 n/a |
JUNIOR SUBORDINATED DEBENTURE_2
JUNIOR SUBORDINATED DEBENTURES AND MANDATORILY REDEEMABLE TRUST PREFERRED SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Trust Preferred Securities | The following table is a summary of trust preferred securities at December 31, 2018 (dollars in thousands): Name of Trust Aggregate Liquidation Amount of Trust Preferred Securities Aggregate Liquidation Amount of Common Capital Securities Aggregate Principal Amount of Junior Subordinated Debentures Stated Maturity (1) Current Interest Rate Reset Period Interest Rate Spread Banner Capital Trust II $ 15,000 $ 464 $ 15,464 2033 5.79 % Quarterly Three-month LIBOR + 3.35% Banner Capital Trust III 15,000 465 15,465 2033 5.34 Quarterly Three-month LIBOR + 2.90% Banner Capital Trust IV 15,000 465 15,465 2034 5.29 Quarterly Three-month LIBOR + 2.85% Banner Capital Trust V 25,000 774 25,774 2035 4.22 Quarterly Three-month LIBOR + 1.57% Banner Capital Trust VI 25,000 774 25,774 2037 4.36 Quarterly Three-month LIBOR + 1.62% Banner Capital Trust VII 25,000 774 25,774 2037 3.78 Quarterly Three-month LIBOR + 1.38% Siuslaw Statutory Trust I 8,000 248 8,248 2034 5.49 Quarterly Three-month LIBOR + 2.70% Greater Sacramento Bancorp Statutory Trust I 4,000 124 4,124 2033 5.79 Quarterly Three-month LIBOR + 3.35% Greater Sacramento Bancorp Statutory Trust II 4,000 124 4,124 2035 4.47 Quarterly Three-month LIBOR + 1.68% Total TPS liability at par $ 136,000 $ 4,212 140,212 4.71 % Fair value adjustment (2) (26,121 ) Total TPS liability at fair value (2) $ 114,091 (1) All of the Company's trust preferred securities are eligible for redemption. (2) The Company has elected to use fair value accounting on its TPS. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of the provision for income taxes included in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Years Ended December 31 2018 2017 2016 Current Federal $ 21,869 $ 30,961 $ 29,787 State 4,130 3,085 2,477 Total Current 25,999 34,046 32,264 Deferred Federal 2,021 58,646 9,908 State 575 (2,204 ) 2,083 Total Deferred 2,596 56,442 11,991 Provision for income taxes $ 28,595 $ 90,488 $ 44,255 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the reconciliation of the federal statutory rate to the actual effective rate for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31 2018 2017 2016 Federal income tax statutory rate 21.0 % 35.0 % 35.0 % Increase (decrease) in tax rate due to: Tax-exempt interest (2.0 ) (2.6 ) (2.6 ) Investment in life insurance (0.6 ) (1.1 ) (1.2 ) State income taxes, net of federal tax offset 2.3 2.0 2.2 Tax credits (0.8 ) (0.6 ) (0.8 ) Merger and acquisition costs 0.1 — — Valuation reserve release (2.5 ) — — Federal law change — 28.2 — Other (0.2 ) (1.1 ) 1.5 Effective income tax rate 17.3 % 59.8 % 34.1 % |
Schedule of Net Deferred Tax Asset | The following table reflects the effect of temporary differences that gave rise to the components of the net deferred tax asset as of December 31, 2018 and 2017 (in thousands): December 31 2018 2017 Deferred tax assets: Loan loss and REO $ 24,156 $ 22,294 Deferred compensation 15,991 13,045 Net operating loss carryforward 37,828 43,721 Federal and state tax credits 7,614 7,614 State net operating losses 6,105 6,706 Loan discount 5,756 4,736 Other 983 4,326 Total deferred tax assets 98,433 102,442 Deferred tax liabilities: Depreciation (3,771 ) (1,343 ) Deferred loan fees, servicing rights and loan origination costs (10,196 ) (9,564 ) Intangibles (8,428 ) (5,690 ) Financial instruments accounted for under fair value accounting (833 ) (9,702 ) Other — (325 ) Total deferred tax liabilities (23,228 ) (26,624 ) Deferred income tax asset 75,205 75,818 Valuation allowance (184 ) (4,391 ) Deferred tax asset, net $ 75,021 $ 71,427 |
Schedule of Affordable Housing Tax Credit Information | The following table presents the balances of the Company's tax credit investments and related unfunded commitments at December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Tax credit investments $ 17,360 $ 7,311 Unfunded commitments—tax credit investments 12,726 4,417 The following table presents other information related to the Company's tax credit investments for the years ended December 31, 2018 , 2017 and 2016 (in thousands): For the years ended December 31, 2018 2017 2016 Tax credits and other tax benefits recognized $ 1,456 $ 1,140 $ 1,136 Tax credit amortization expense included in provision for income taxes 1,151 1,144 672 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the Company's Restricted Stock/Unit award activity during the years ended December 31, 2018 , 2017 and 2016 follows: Shares/Units Weighted Average Grant-Date Fair Value Unvested at January 1, 2016 231,562 $ 42.33 Granted (38,934 non-voting) 177,775 47.74 Vested (104,297 ) 41.47 Forfeited (14,321 ) 42.54 Unvested at December 31, 2016 290,719 42.26 Granted (41,318 non-voting) 153,777 55.86 Vested (103,259 ) 43.81 Forfeited (39,160 ) 39.83 Unvested at December 31, 2017 302,077 48.97 Granted (159,541 non-voting) 161,598 55.04 Vested (103,363 ) 48.60 Forfeited (42,215 ) 47.05 Unvested at December 31, 2018 318,097 52.43 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of the Regulatory Capital Ratios and Minimum Regulatory Requirements | The following table shows the regulatory capital ratios of the Company and the Banks and the minimum regulatory requirements (dollars in thousands): Actual Minimum for Capital Adequacy Purposes Minimum to be Categorized as “Well-Capitalized” Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2018: The Company—consolidated: Total capital to risk-weighted assets $ 1,302,239 13.12 % $ 794,072 8.00 % $ 992,590 10.00 % Tier 1 capital to risk-weighted assets 1,203,155 12.12 595,554 6.00 595,554 6.00 Tier 1 common equity to risk-weighted assets 1,067,155 10.75 446,665 4.50 n/a n/a Tier 1 capital to average leverage assets 1,203,155 10.98 438,379 4.00 n/a n/a Banner Bank: Total capital to risk- weighted assets 1,217,173 12.50 778,766 8.00 973,457 10.00 Tier 1 capital to risk- weighted assets 1,120,523 11.51 584,074 6.00 778,766 8.00 Tier 1 common equity to risk-weighted assets 1,120,523 11.51 438,056 4.50 632,747 6.50 Tier 1 capital to average leverage assets 1,120,523 10.50 426,799 4.00 533,498 5.00 Islanders Bank: Total capital to risk- weighted assets 34,567 18.26 15,142 8.00 18,928 10.00 Tier 1 capital to risk- weighted assets 32,200 17.01 11,357 6.00 15,142 8.00 Tier 1 common equity to risk-weighted assets 32,200 17.01 8,518 4.50 12,303 6.50 Tier 1 capital to average leverage assets 32,200 11.16 11,543 4.00 14,428 5.00 December 31, 2017: The Company—consolidated: Total capital to risk-weighted assets $ 1,214,631 13.81 % $ 703,508 8.00 % $ 879,385 10.00 % Tier 1 capital to risk-weighted assets 1,123,154 12.77 527,631 6.00 527,631 6.00 Tier 1 common equity to risk-weighted assets 994,080 11.30 395,723 4.50 n/a n/a Tier 1 capital to average leverage assets 1,123,154 11.34 396,313 4.00 n/a n/a Banner Bank: Total capital to risk- weighted assets 1,102,195 12.83 687,266 8.00 859,083 10.00 Tier 1 capital to risk- weighted assets 1,013,079 11.79 515,450 6.00 687,266 8.00 Tier 1 common equity to risk-weighted assets 1,013,079 11.79 386,587 4.50 558,404 6.50 Tier 1 capital to average leverage assets 1,013,079 10.53 384,920 4.00 481,150 5.00 Islanders Bank: Total capital to risk- weighted assets 32,122 16.39 15,681 8.00 19,602 10.00 Tier 1 capital to risk- weighted assets 29,761 15.18 11,761 6.00 15,681 8.00 Tier 1 common equity to risk-weighted assets 29,761 15.18 8,821 4.50 12,741 6.50 Tier 1 capital to average leverage assets 29,761 10.65 11,183 4.00 13,979 5.00 |
GOODWILL, OTHER INTANGIBLE AS_2
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Intangible Assets and Mortgage Servicing Rights [Abstract] | |
Schedule of Changes in Goodwill and Intangible Assets | The following table summarizes the changes in the Company’s goodwill, CDI and LHI for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Goodwill CDI LHI Total Balance, January 1, 2016 $ 247,738 $ 36,762 $ 710 $ 285,210 Amortization — (7,061 ) (249 ) (7,310 ) Other changes (1) (3,155 ) — — (3,155 ) Balance, December 31, 2016 244,583 29,701 461 274,745 Amortization — (6,247 ) (184 ) (6,431 ) Adjustments to goodwill (2) (1,924 ) (1,076 ) — (3,000 ) Balance, December 31, 2017 242,659 22,378 277 265,314 Additions through acquisition (3) 96,495 16,368 — 112,863 Amortization — (6,047 ) (52 ) (6,099 ) Balance, December 31, 2018 $ 339,154 $ 32,699 $ 225 $ 372,078 (1) The adjustments to goodwill in 2016 related to changes in the preliminary goodwill recorded for the Starbuck Bancshares, Inc. acquisition including adjustments to loan discount, deferred taxes and REO valuations. (2) Acquired Goodwill and CDI were adjusted for the sale of the Utah branches in 2017. |
Schedule of Estimated Annual Amortization Expense | Estimated amortization expense in future years with respect to CDI as of December 31, 2018 (in thousands): Year ended: Estimated Amortization 2019 $ 7,957 2020 6,888 2021 5,816 2022 4,651 Thereafter 7,387 Net carrying amount $ 32,699 |
Schedule of Mortgage Servicing Rights at Amortized Value | An analysis of the mortgage servicing rights for the years ended December 31, 2018 , 2017 and 2016 is presented below (in thousands): Years Ended December 31 2018 2017 2016 Balance, beginning of the year $ 14,738 $ 15,249 $ 13,295 Amounts capitalized 3,623 3,361 5,965 Additions through purchase 166 94 — Amortization (1) (3,889 ) (3,966 ) (4,011 ) Balance, end of the year (2) $ 14,638 $ 14,738 $ 15,249 (1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income and any unamortized balance is fully written off if the loan repays in full. (2) There was no valuation allowance as of December 31, 2018 and 2017 . |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments, by Balance Sheet Grouping | The following table presents estimated fair values of the Company’s financial instruments as of December 31, 2018 and 2017 , whether or not recognized or recorded in the Consolidated Statements of Financial Condition (in thousands): December 31, 2018 December 31, 2017 Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Cash and cash equivalents 1 $ 272,196 $ 272,196 $ 261,200 $ 261,200 Securities—trading 2,3 25,896 25,896 22,318 22,318 Securities—available-for-sale 2 1,636,223 1,636,223 919,485 919,485 Securities—held-to-maturity 2 230,984 229,301 256,793 258,710 Securities—held-to-maturity 3 3,236 3,236 3,478 3,478 Loans receivable held for sale 2 171,031 171,157 40,725 40,923 Loans receivable 3 8,684,595 8,629,450 7,598,884 7,445,990 FHLB stock 3 31,955 31,955 10,334 10,334 Bank-owned life insurance 1 177,467 177,467 162,668 162,668 Mortgage servicing rights 3 14,638 25,813 14,738 19,835 Equity securities 1 352 352 — — Derivatives: Interest rate swaps 2 3,138 3,138 5,083 5,083 Interest rate lock and forward sales commitments 2 471 471 523 523 Liabilities: Demand, interest-bearing checking and money market 2 6,314,202 6,314,202 5,658,994 5,658,994 Regular savings 2 1,842,581 1,842,581 1,557,500 1,557,500 Certificates of deposit 2 1,320,265 1,298,238 966,937 947,517 Advances from FHLB 2 540,189 540,189 202 202 Junior subordinated debentures at fair value 3 114,091 114,091 98,707 98,707 Other borrowings 2 118,995 118,995 95,860 95,860 Derivatives: Interest rate swaps 2 3,138 3,138 5,083 5,083 Interest rate lock and forward sales commitments 2 1,654 1,654 201 201 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Securities—trading Corporate Bonds (TPS securities) $ — $ — $ 25,896 $ 25,896 — — 25,896 25,896 Securities—available-for-sale U.S. Government and agency — 149,112 — 149,112 Municipal bonds — 117,822 — 117,822 Corporate bonds — 3,495 — 3,495 Mortgage-backed securities — 1,343,861 — 1,343,861 Asset-backed securities — 21,933 — 21,933 — 1,636,223 — 1,636,223 Loans held for sale — 164,767 — 164,767 Equity securities — 352 — 352 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 471 — 471 $ — $ 1,804,951 $ 25,896 $ 1,830,847 Liabilities Junior subordinated debentures at fair value $ — $ — $ 114,091 $ 114,091 Derivatives Interest rate swaps — 3,138 — 3,138 Interest rate lock and forward sales commitments — 1,654 — 1,654 $ — $ 4,792 $ 114,091 $ 118,883 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Securities—trading Municipal bonds $ — $ 100 $ — $ 100 Corporate Bonds (TPS securities) — — 22,058 22,058 Equity securities — 160 — 160 — 260 22,058 22,318 Securities—available-for-sale U.S. Government and agency — 72,466 — 72,466 Municipal bonds — 68,733 — 68,733 Corporate bonds — 5,393 — 5,393 Mortgage-backed securities — 739,557 — 739,557 Asset-backed securities — 27,758 — 27,758 Equity securities — 5,578 — 5,578 — 919,485 — 919,485 Loans held for sale — 32,392 — 32,392 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 523 — 523 $ — $ 957,743 $ 22,058 $ 979,801 Liabilities Junior subordinated debentures at fair value $ — $ — $ 98,707 $ 98,707 Derivatives Interest rate swaps — 5,083 — 5,083 Interest rate lock and forward sales commitments — 201 — 201 $ — $ 5,284 $ 98,707 $ 103,991 |
Schedule of Valuation Technique, Unobservable Input, and Qualitative Information for Unobservable Inputs | The following table provides a description of the valuation technique, unobservable inputs, quantitative and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at December 31, 2018 and 2017 : December 31 2018 2017 Financial Instruments Valuation Technique Unobservable Inputs Weighted Average Rate Weighted Average Rate Corporate bonds (TPS securities) Discounted cash flows Discount rate 6.81 % 6.69 % Junior subordinated debentures Discounted cash flows Discount rate 6.81 % 6.69 % Impaired loans Collateral Valuations Discount to appraised value 0.0% to 8.5% 8.5% to 20.0% REO Appraisals Discount to appraised value 69.2 % 42.0 % |
Schedule of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2018 and 2017 (in thousands): Level 3 Fair Value Inputs TPS Securities Borrowings— Junior Subordinated Debentures Balance at January 1, 2017 $ 21,143 $ 95,200 Total gains or losses recognized Assets gains 915 — Liabilities losses — 3,507 Balance at December 31, 2017 22,058 98,707 Total gains or losses recognized Assets gains 3,838 — Liabilities losses — 15,384 Balance at December 31, 2018 $ 25,896 $ 114,091 |
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents financial assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at December 31, 2018 and 2017 (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,915 $ 2,915 REO $ — $ — $ 2,611 $ 2,611 December 31, 2017 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 6,535 $ 6,535 REO — — 360 360 The following table presents the losses resulting from non-recurring fair value adjustments for the years ended December 31, 2018 , 2017 and 2016 (in thousands): For the years ended December 31, 2018 2017 2016 Impaired loans $ (910 ) $ (2,852 ) $ (182 ) REO (387 ) (256 ) (876 ) Total loss from nonrecurring measurements $ (1,297 ) $ (3,108 ) $ (1,058 ) |
BANNER CORPORATION (PARENT CO_2
BANNER CORPORATION (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Financial Condition | Summary financial information is as follows (in thousands): Statements of Financial Condition December 31 2018 2017 ASSETS Cash $ 38,029 $ 44,887 Investment in trust equities 4,212 4,212 Investment in subsidiaries 1,540,251 1,329,165 Other assets 25,267 3,072 Total assets $ 1,607,759 $ 1,381,336 LIABILITIES AND SHAREHOLDERS’ EQUITY Miscellaneous liabilities $ 15,073 $ 9,607 Deferred tax liability — 396 Junior subordinated debentures at fair value 114,091 98,707 Shareholders’ equity 1,478,595 1,272,626 Total liabilities and shareholders' equity $ 1,607,759 $ 1,381,336 |
Schedule of Condensed Statement of Operations | Statements of Operations Years Ended December 31 2018 2017 2016 INTEREST INCOME: Interest-bearing deposits $ 49 $ 62 $ 127 OTHER INCOME (EXPENSE): Dividend income from subsidiaries 72,604 40,570 50,971 Equity in undistributed income of subsidiaries 72,419 27,477 40,852 Other income 56 53 60 Net change in valuation of financial instruments carried at fair value — (3,507 ) (2,720 ) Interest on other borrowings (6,136 ) (4,752 ) (4,040 ) Other expenses (4,761 ) (3,291 ) (3,450 ) Net income before taxes 134,231 56,612 81,800 BENEFIT FROM INCOME TAXES (2,284 ) (4,164 ) (3,585 ) NET INCOME $ 136,515 $ 60,776 $ 85,385 |
Schedule of Condensed Statement of Cash Flows | Statements of Cash Flows Years Ended December 31 2018 2017 2016 OPERATING ACTIVITIES: Net income $ 136,515 $ 60,776 $ 85,385 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (72,419 ) (27,477 ) (40,852 ) Decrease (increase) in deferred taxes 150 (1,442 ) (702 ) Net change in valuation of financial instruments carried at fair value — 3,507 2,720 Share-based compensation 6,554 5,965 4,305 (Increase) decrease in other assets (19,268 ) 10,684 7,332 Increase (decrease) in other liabilities 201 69 (202 ) Net cash provided from operating activities 51,733 52,082 57,986 INVESTING ACTIVITIES: Funds transferred to deferred compensation trust (27 ) (29 ) (26 ) Reduction in investment in subsidiaries 37,000 5,000 50,000 Acquisitions (329 ) — — Net cash provided from investing activities 36,644 4,971 49,974 FINANCING ACTIVITIES: Withholding taxes paid on share-based compensation (1,554 ) (1,630 ) (870 ) Repurchase of common stock (34,401 ) (31,045 ) (50,772 ) Cash dividends paid (59,280 ) (65,759 ) (28,282 ) Net cash used by financing activities (95,235 ) (98,434 ) (79,924 ) NET CHANGE IN CASH (6,858 ) (41,381 ) 28,036 CASH, BEGINNING OF PERIOD 44,887 86,268 58,232 CASH, END OF PERIOD $ 38,029 $ 44,887 $ 86,268 |
CALCULATION OF EARNINGS PER C_2
CALCULATION OF EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Weighted Shares Outstanding | The following tables show the calculation of earnings per common share (in thousands, except per share data): Years Ended December 31 2018 2017 2016 Net income $ 136,515 $ 60,776 $ 85,385 Weighted average number of common shares outstanding Basic 32,784,724 32,888,007 33,820,148 Diluted 32,894,425 32,986,707 33,853,511 Earnings per common share Basic $ 4.16 $ 1.85 $ 2.52 Diluted $ 4.15 $ 1.84 $ 2.52 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | Results of operations on a quarterly basis for the years ended December 31, 2018 , 2017 and 2016 were as follows (dollars in thousands except for per share data): Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 104,820 $ 112,423 $ 117,648 $ 128,741 Interest expense 5,447 7,360 8,570 11,282 Net interest income before provision for loan losses 99,373 105,063 109,078 117,459 Provision for loan losses 2,000 2,000 2,000 2,500 Net interest income 97,373 103,063 107,078 114,959 Non-interest income 21,362 21,217 20,411 21,018 Non-interest expense 81,706 82,637 81,632 95,396 Income before provision for income taxes 37,029 41,643 45,857 40,581 Provision for income taxes 8,239 9,219 8,084 3,053 Net income $ 28,790 $ 32,424 $ 37,773 $ 37,528 Basic earnings per share $ 0.89 $ 1.01 $ 1.17 $ 1.10 Diluted earnings per share 0.89 1.00 1.17 1.09 Dividends declared 0.35 0.85 0.38 0.38 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 99,096 $ 104,436 $ 105,278 $ 103,475 Interest expense 4,242 4,730 5,068 5,211 Net interest income before provision for loan losses 94,854 99,706 100,210 98,264 Provision for loan losses 2,000 2,000 2,000 2,000 Net interest income 92,854 97,706 98,210 96,264 Non-interest income 19,048 20,396 18,081 27,675 Non-interest expense 76,281 79,857 80,331 82,501 Income before provision for income taxes 35,621 38,245 35,960 41,438 Provision for income taxes 11,828 12,791 10,883 54,986 Net income (loss) $ 23,793 $ 25,454 $ 25,077 $ (13,548 ) Basic earnings (loss) per share $ 0.72 $ 0.77 $ 0.76 $ (0.41 ) Diluted earnings (loss) per share 0.72 0.77 0.76 (0.41 ) Dividends declared 0.25 1.25 0.25 0.25 Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 95,301 $ 97,321 $ 97,849 $ 101,007 Interest expense 4,258 4,173 4,141 3,836 Net interest income before provision for loan losses 91,043 93,148 93,708 97,171 Provision for loan losses — 2,000 2,000 2,030 Net interest income 91,043 91,148 91,708 95,141 Non-interest income 19,959 20,537 23,512 19,463 Non-interest expense 84,034 79,887 79,092 79,857 Income before provision for income taxes 26,968 31,798 36,128 34,747 Provision for income taxes 9,194 10,841 12,277 11,943 Net income $ 17,774 $ 20,957 $ 23,851 $ 22,804 Basic earnings per share $ 0.52 $ 0.62 $ 0.70 $ 0.69 Diluted earnings per share 0.52 0.61 0.70 0.69 Dividends declared 0.21 0.21 0.23 0.23 The quarterly amounts shown above for 2018 and 2017 reflect the adoption of the Accounting Standards Update, Revenue From Contracts with Customers (see Note 2 in this Form 10-K for additional information). The quarterly amounts for 2016 are not updated. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | Outstanding commitments for which no asset or liability for the notional amount has been recorded consisted of the following at the dates indicated (in thousands): Contract or Notional Amount December 31, 2018 December 31, 2017 Commitments to extend credit $ 2,837,981 $ 2,300,593 Standby letters of credit and financial guarantees 17,784 14,579 Commitments to originate loans 32,145 56,030 Risk participation agreement 24,091 11,451 Derivatives also included in Note 24: Commitments to originate loans held for sale 31,728 48,091 Commitments to sell loans secured by one- to four-family residential properties 18,328 22,097 Commitments to sell securities related to mortgage banking activities 144,250 57,000 |
DERIVATIVES AND HEDGING DERIV_2
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | As of December 31, 2018 and December 31, 2017 , the notional values or contractual amounts and fair values of the Company's derivatives designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 3,973 $ 270 $ 4,350 $ 447 $ 3,973 $ 270 $ 4,350 $ 447 (1) Included in Loans Receivable on the Consolidated Statements of Financial Condition. (2) Included in Other Liabilities on the Consolidated Statements of Financial Condition. |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | As of December 31, 2018 and December 31, 2017 , the notional values or contractual amounts and fair values of the Company's derivatives not designated in hedge relationships were as follows (in thousands): Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (1) Notional/ Contract Amount Fair Value (2) Notional/ Contract Amount Fair Value (2) Interest rate swaps $ 272,374 $ 2,868 $ 285,047 $ 4,636 $ 272,374 $ 2,868 $ 285,047 $ 4,636 Mortgage loan commitments 20,229 273 29,739 225 17,763 187 13,763 153 Forward sales contracts 18,328 198 43,069 298 144,250 1,467 47,000 48 $ 310,931 $ 3,339 $ 357,855 $ 5,159 $ 434,387 $ 4,522 $ 345,810 $ 4,837 (1) Included in Other Assets on the Consolidated Statements of Financial Condition, with the exception of those interest rate swaps from prior to 2009 that were not designated in hedge relationships (with a fair value of $270,000 at December 31, 2018 and $499,000 at December 31, 2017 ), which are included in Loans Receivable. (2) Included in Other Liabilities on the Consolidated Statements of Financial Condition. Gains (losses) recognized in income on non-designated hedging instruments for the years ended December 31, 2018 , 2017 and 2016 were as follows (in thousands): For the Years Ended December 31 Location on Income Statement 2018 2017 2016 Mortgage loan commitments Mortgage banking operations $ 47 $ 195 $ (348 ) Forward sales contracts Mortgage banking operations (775 ) (491 ) 296 $ (728 ) $ (296 ) $ (52 ) |
Offsetting Assets and Liabilities | The following presents additional information related to the Company's derivative contracts, by type of financial instrument, as of December 31, 2018 and December 31, 2017 (in thousands): December 31, 2018 Gross Amounts of Financial Instruments Not Offset in the Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Derivative Amount Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 $ 5,038 $ (1,900 ) $ 3,138 $ — $ — $ 3,138 Derivative liabilities Interest rate swaps $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 $ 5,038 $ (1,900 ) $ 3,138 $ — $ (1,320 ) $ 1,818 December 31, 2017 Gross Amounts of Financial Instruments Not Offset in the Statement of Financial Condition Gross Amounts Recognized Amounts offset in the Statement of Financial Condition Net Amounts in the Statement of Financial Condition Derivative Amount Fair Value of Financial Collateral in the Statement of Financial Condition Net Amount Derivative assets Interest rate swaps $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 $ 5,083 $ — $ 5,083 $ (656 ) $ — $ 4,427 Derivative liabilities Interest rate swaps $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 $ 5,083 $ — $ 5,083 $ (656 ) $ (3,467 ) $ 960 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue: Deposit fees and other service charges for the years ended December 31, 2018 , 2017 and 2016 are summarized as follows (in thousands): Years Ended December 31 2018 2017 2016 Deposit service charges 18,089 16,725 16,863 Debit and credit interchange fees 31,713 28,358 22,578 Debit and credit card expense (8,511 ) (7,390 ) (3,078 ) Merchant services income 10,226 10,159 9,052 Merchant services expenses (7,767 ) (8,335 ) (7,245 ) Other service charges 4,324 3,935 3,741 Total deposit fees and other service charges 48,074 43,452 41,911 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combination Components [Abstract] | |
Business Combination Components [Table Text Block] | The following table presents a summary of the consideration paid and the estimated fair values as of the acquisition date for each major class of assets acquired and liabilities assumed (in thousands): Skagit November 1, 2018 Consideration to Skagit equity holders: Cash paid $ 329 Fair value of common shares issued 179,709 Total consideration 180,038 Fair value of assets acquired: Cash and cash equivalents $ 19,167 Securities 210,326 Loans receivable (contractual amount of $645.6 million) 632,374 Real estate owned held for sale 2,593 Property and equipment 15,788 Core deposit intangible 16,368 Deferred tax asset 95 Other assets 19,110 Total assets acquired 915,821 Fair value of liabilities assumed: Deposits 810,209 Other liabilities 22,069 Total liabilities assumed 832,278 Net assets acquired 83,543 Goodwill $ 96,495 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Investment in FHLB Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | ||
Federal Home Loan Bank (FHLB) stock | $ 31,955 | $ 10,334 |
Federal Home Loan Bank Stock, Par Value Per Share | $ 100 | |
Investment in Federal Home Loan Bank Stock [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Other than Temporary Impairment Losses, Investments | $ 0 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings and leased improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Buildings and leased improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 39 years |
Furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Textuals) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)subsidiaryofficelocation | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Number of wholly-owned subsidiaries | subsidiary | 2 |
Subsidiary, Banner Bank [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Number of offices | office | 179 |
Number of production offices | office | 17 |
Subsidiary, Islanders Bank [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Number of locations | location | 3 |
Minimum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Intangible asset, useful life | 3 years |
Minimum [Member] | Core Deposit Intangibles [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Intangible asset, useful life | 3 years |
Maximum [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Intangible asset, useful life | 10 years |
Maximum [Member] | Core Deposit Intangibles [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Intangible asset, useful life | 10 years |
Loans Receivable [Member] | Interest Rate Swap [Member] | F&M Bank [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Derivative Asset, Notional Amount | $ | $ 4 |
Other assets [Member] | Interest Rate Swap [Member] | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Derivative Asset, Notional Amount | $ | $ 272.4 |
BUSINESS COMBINATION AND BRAN_2
BUSINESS COMBINATION AND BRANCH DIVESTITURE Statement (Details) $ in Thousands, shares in Millions | Nov. 01, 2018USD ($)bank_branchshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 5,216 | $ 6,520 | $ 8,717 | ||
Goodwill | $ 339,154 | $ 242,659 | $ 244,583 | $ 247,738 | |
Skagit Bank [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 329 | ||||
Business Acquisition, Effective Date of Acquisition | Nov. 1, 2018 | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Cash Flows Expected to be Collected at Acquisition | $ 7,982 | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | (995) | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | $ 6,987 | ||||
Business combination, number of branches | bank_branch | 11 | ||||
Business Combination, Consideration Transfered, Equity Interests Issued and Issuable, Shares | shares | 3.1 | ||||
Business Combination, Consideration Transfered, Equity Interests Issued and Issuable, Shares | $ 179,709 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 915,821 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits | 810,209 | ||||
Business Combination, Acquired Receivable, Fair Value | 632,374 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 16,368 | ||||
Goodwill | 96,495 | ||||
Business Combination, Acquired Receivables, Non-Credit-Impaired | 637,400 | ||||
Business Combination, consideration transfered | 180,038 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 19,167 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 210,326 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Real Estate Held for Sale | 2,593 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 15,788 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 95 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 19,110 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liability, Other | 22,069 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 832,278 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 83,543 | ||||
Business Combination, Acquired Receivables, Non-Credit-Impaired, Fair Value | 625,200 | ||||
Business Combination, Acquired Receivables, Non-Credit-Impaired, Discount | 12,200 | ||||
Business Combination, Acquired Receivables, Non-Credit-Impaired, Credit Related Discount | 7,900 | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition | 9,897 | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Non-Accretable Difference | $ (1,915) |
ACCOUNTING STANDARDS RECENTLY_3
ACCOUNTING STANDARDS RECENTLY ADOPTED OR ISSUED Revenue Recognition Standard ASC 606 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total Deposit Fees and Other Service Charges | $ 48,074 | $ 43,452 | $ 41,911 |
Payment and card processing expenses | 15,412 | 14,330 | 14,359 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total Deposit Fees and Other Service Charges | 55,841 | 51,787 | 49,156 |
Payment and card processing expenses | 23,179 | 22,665 | 21,604 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total Deposit Fees and Other Service Charges | (7,767) | (8,335) | (7,245) |
Payment and card processing expenses | $ (7,767) | $ (8,335) | $ (7,245) |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trading: | ||
Trading Securities, Amortized Cost | $ 27,203 | $ 27,246 |
Trading Securities, Fair Value | 25,896 | 22,318 |
Available-for-Sale: | ||
Available-for-sale Securities, Amortized Cost | 1,648,421 | 926,112 |
Gross Unrealized Gains | 7,171 | 1,936 |
Gross Unrealized Losses | (19,369) | (8,563) |
Securities—available-for-sale | 1,636,223 | 919,485 |
Held-to-Maturity: | ||
Held-to-maturity Securities, Amortized Cost | 234,220 | 260,271 |
Gross Unrealized Gains | 1,807 | 3,687 |
Gross Unrealized Losses | (3,490) | (1,770) |
Debt Securities, Held-to-maturity, Fair Value | 232,537 | 262,188 |
U.S. Government and agency obligations | ||
Available-for-Sale: | ||
Available-for-sale Securities, Amortized Cost | 151,012 | 72,829 |
Gross Unrealized Gains | 149 | 68 |
Gross Unrealized Losses | (2,049) | (431) |
Securities—available-for-sale | 149,112 | 72,466 |
Held-to-Maturity: | ||
Held-to-maturity Securities, Amortized Cost | 1,006 | 1,024 |
Gross Unrealized Gains | 14 | 29 |
Gross Unrealized Losses | (1) | 0 |
Debt Securities, Held-to-maturity, Fair Value | 1,019 | 1,053 |
Municipal bonds | ||
Trading: | ||
Trading Securities, Amortized Cost | 100 | |
Trading Securities, Fair Value | 100 | |
Available-for-Sale: | ||
Available-for-sale Securities, Amortized Cost | 116,548 | 68,513 |
Gross Unrealized Gains | 1,806 | 665 |
Gross Unrealized Losses | (532) | (445) |
Securities—available-for-sale | 117,822 | 68,733 |
Held-to-Maturity: | ||
Held-to-maturity Securities, Amortized Cost | 176,663 | 189,860 |
Gross Unrealized Gains | 1,727 | 3,385 |
Gross Unrealized Losses | (2,578) | (1,252) |
Debt Securities, Held-to-maturity, Fair Value | 175,812 | 191,993 |
Corporate bonds | ||
Trading: | ||
Trading Securities, Amortized Cost | 27,203 | 27,132 |
Trading Securities, Fair Value | 25,896 | 22,058 |
Available-for-Sale: | ||
Available-for-sale Securities, Amortized Cost | 3,556 | 5,431 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | (61) | (44) |
Securities—available-for-sale | 3,495 | 5,393 |
Held-to-Maturity: | ||
Held-to-maturity Securities, Amortized Cost | 3,736 | 3,978 |
Gross Unrealized Gains | 0 | 7 |
Gross Unrealized Losses | (13) | 0 |
Debt Securities, Held-to-maturity, Fair Value | 3,723 | 3,985 |
Mortgage-backed or related securities | ||
Available-for-Sale: | ||
Available-for-sale Securities, Amortized Cost | 1,355,258 | 745,956 |
Gross Unrealized Gains | 5,210 | 1,003 |
Gross Unrealized Losses | (16,607) | (7,402) |
Securities—available-for-sale | 1,343,861 | 739,557 |
Held-to-Maturity: | ||
Held-to-maturity Securities, Amortized Cost | 52,815 | 65,409 |
Gross Unrealized Gains | 66 | 266 |
Gross Unrealized Losses | (898) | (518) |
Debt Securities, Held-to-maturity, Fair Value | 51,983 | 65,157 |
Asset-backed securities | ||
Available-for-Sale: | ||
Available-for-sale Securities, Amortized Cost | 22,047 | 27,667 |
Gross Unrealized Gains | 6 | 184 |
Gross Unrealized Losses | (120) | (93) |
Securities—available-for-sale | $ 21,933 | 27,758 |
Equity securities | ||
Trading: | ||
Trading Securities, Amortized Cost | 14 | |
Trading Securities, Fair Value | 160 | |
Available-for-Sale: | ||
Available-for-sale Securities, Amortized Cost | 5,716 | |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (148) | |
Securities—available-for-sale | $ 5,578 |
SECURITIES (Securities with Con
SECURITIES (Securities with Continuous Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-Sale: | ||
Less than 12 Months, Fair Value | $ 412,162 | $ 617,847 |
Less than 12 Months, Unrealized Losses | (4,313) | (5,686) |
12 Months or More, Fair Value | 659,936 | 151,971 |
12 Months or More, Unrealized Losses | (15,056) | (2,877) |
Total Fair Value | 1,072,098 | 769,818 |
Total Unrealized Losses | (19,369) | (8,563) |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 40,804 | 59,862 |
Less Than 12 Months, Unrealized Losses | (495) | (549) |
12 Months or More, Fair Value | 75,159 | 38,748 |
12 Months or More, Unrealized Losses | (2,995) | (1,221) |
Total Fair Value | 115,963 | 98,610 |
Total Unrealized Losses | (3,490) | (1,770) |
U.S. Government and agency obligations | ||
Available-for-Sale: | ||
Less than 12 Months, Fair Value | 75,885 | 31,276 |
Less than 12 Months, Unrealized Losses | (1,240) | (211) |
12 Months or More, Fair Value | 50,508 | 23,341 |
12 Months or More, Unrealized Losses | (809) | (220) |
Total Fair Value | 126,393 | 54,617 |
Total Unrealized Losses | (2,049) | (431) |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 145 | |
Less Than 12 Months, Unrealized Losses | (1) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 145 | |
Total Unrealized Losses | (1) | |
Municipal bonds | ||
Available-for-Sale: | ||
Less than 12 Months, Fair Value | 6,422 | 20,879 |
Less than 12 Months, Unrealized Losses | (54) | (185) |
12 Months or More, Fair Value | 27,231 | 13,360 |
12 Months or More, Unrealized Losses | (478) | (260) |
Total Fair Value | 33,653 | 34,239 |
Total Unrealized Losses | (532) | (445) |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 29,898 | 21,839 |
Less Than 12 Months, Unrealized Losses | (274) | (171) |
12 Months or More, Fair Value | 44,637 | 34,314 |
12 Months or More, Unrealized Losses | (2,304) | (1,081) |
Total Fair Value | 74,535 | 56,153 |
Total Unrealized Losses | (2,578) | (1,252) |
Corporate bonds | ||
Available-for-Sale: | ||
Less than 12 Months, Fair Value | 3,199 | 296 |
Less than 12 Months, Unrealized Losses | (56) | (4) |
12 Months or More, Fair Value | 295 | 4,682 |
12 Months or More, Unrealized Losses | (5) | (40) |
Total Fair Value | 3,494 | 4,978 |
Total Unrealized Losses | (61) | (44) |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 0 | |
Less Than 12 Months, Unrealized Losses | 0 | |
12 Months or More, Fair Value | 487 | |
12 Months or More, Unrealized Losses | (13) | |
Total Fair Value | 487 | |
Total Unrealized Losses | (13) | |
Mortgage-backed or related securities | ||
Available-for-Sale: | ||
Less than 12 Months, Fair Value | 316,074 | 559,916 |
Less than 12 Months, Unrealized Losses | (2,939) | (5,138) |
12 Months or More, Fair Value | 571,989 | 100,662 |
12 Months or More, Unrealized Losses | (13,668) | (2,264) |
Total Fair Value | 888,063 | 660,578 |
Total Unrealized Losses | (16,607) | (7,402) |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 10,761 | 38,023 |
Less Than 12 Months, Unrealized Losses | (220) | (378) |
12 Months or More, Fair Value | 30,035 | 4,434 |
12 Months or More, Unrealized Losses | (678) | (140) |
Total Fair Value | 40,796 | 42,457 |
Total Unrealized Losses | (898) | (518) |
Asset-backed securities | ||
Available-for-Sale: | ||
Less than 12 Months, Fair Value | 10,582 | 0 |
Less than 12 Months, Unrealized Losses | (24) | 0 |
12 Months or More, Fair Value | 9,913 | 9,926 |
12 Months or More, Unrealized Losses | (96) | (93) |
Total Fair Value | 20,495 | 9,926 |
Total Unrealized Losses | $ (120) | (93) |
Equity Securities | ||
Available-for-Sale: | ||
Less than 12 Months, Fair Value | 5,480 | |
Less than 12 Months, Unrealized Losses | (148) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 5,480 | |
Total Unrealized Losses | $ (148) |
SECURITIES (Securities Debt Mat
SECURITIES (Securities Debt Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Maturing in one year or less | $ 0 | |
Maturing after one year through five years | 0 | |
Maturing after five years through ten years | 0 | |
Maturing after ten years through twenty years | 27,203 | |
Maturing after twenty years | 0 | |
Total with Maturity Date | 27,203 | |
Trading Securities, Cost | 27,203 | $ 27,246 |
Fair Value | ||
Maturing in one year or less | 0 | |
Maturing after one year through five years | 0 | |
Maturing after five years through ten years | 0 | |
Maturing after ten years through twenty years | 25,896 | |
Maturing after twenty years | 0 | |
Total with Maturity Date | 25,896 | |
Trading Securities, Fair Value | 25,896 | 22,318 |
Amortized Cost | ||
Maturing in one year or less | 10,680 | |
Maturing after one year through five years | 84,333 | |
Maturing after five years through ten years | 383,987 | |
Maturing after ten years through twenty years | 210,917 | |
Maturing after twenty years | 958,504 | |
Total with Maturity Date | 1,648,421 | |
Available-for-sale Securities, Amortized Cost | 1,648,421 | 926,112 |
Fair Value | ||
Maturing in one year or less | 10,661 | |
Maturing after one year through five years | 84,140 | |
Maturing after five years through ten years | 381,628 | |
Maturing after ten years through twenty years | 210,883 | |
Maturing after twenty years | 948,911 | |
Total with Maturity Date | 1,636,223 | |
Fair Value | 1,636,223 | 919,485 |
Amortized Cost | ||
Maturing in one year or less | 2,885 | |
Maturing after one year through five years | 60,124 | |
Maturing after five years through ten years | 62,942 | |
Maturing after ten years through twenty years | 70,968 | |
Maturing after twenty years | 37,301 | |
Debt Securities, Held-to-maturity | 234,220 | 260,271 |
Fair Value | ||
Maturing in one year or less | 2,875 | |
Maturing after one year through five years | 59,591 | |
Maturing after five years through ten years | 63,352 | |
Maturing after ten years through twenty years | 71,378 | |
Maturing after twenty years | 35,341 | |
Debt Securities, Held-to-maturity, Fair Value | $ 232,537 | $ 262,188 |
SECURITIES (Securities Pledged)
SECURITIES (Securities Pledged) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pledged Financial Instruments, Not Separately Reported, Securities [Abstract] | |
State and local governments public deposits, carrying value | $ 143,336 |
Interest rate swap counterparties, carrying value | 11,356 |
Repurchase transaction accounts, carrying value | 154,042 |
Other, carrying value | 3,827 |
Total pledged securities, carrying value | 312,561 |
State and local governments public deposits, amortized cost | 143,505 |
Interest rate swap counterparties, amortized cost | 11,576 |
Repurchase transaction accounts, amortized cost | 155,014 |
Other, amortized cost | 3,827 |
Total pledged securities, amortized cost | 313,922 |
State and local governments public deposits, fair value | 143,887 |
Interest rate swap counterparties, fair value | 11,344 |
Repurchase transaction accounts, fair value | 154,042 |
Other, fair value | 3,719 |
Total pledged securities, fair value | $ 312,992 |
SECURITIES (Textuals) (Details)
SECURITIES (Textuals) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security | |
Trading: | |||
Trading securites, proceeds from sale | $ 0 | $ 1,258,000 | $ 7,839,000 |
Trading Securities, Realized Gain (Loss) | (28,000) | 530,000 | |
Trading securities, OTTI charges | $ 0 | $ 0 | $ 0 |
Trading securities, number of securities in nonaccrual status | security | 0 | 0 | 0 |
Trading securities, unrealized holding gain | $ 3,767,000 | $ 700,000 | |
Available-for-Sale: | |||
Available-for-sale securities, unrealized loss position, number of securities | security | 271 | 226 | |
Available-for-sale securities, proceeds from sale | $ 214,600,000 | $ 522,600,000 | $ 369,800,000 |
Available-for-sale securities, Realized Gain (Loss) | (839,000) | (2,100,000) | 311,000 |
Available-for-sale securities, OTTI charges | $ 0 | $ 0 | $ 0 |
Available-for-sale Securities, Number of Securities in Nonaccrual Status | security | 0 | 0 | 0 |
Held-to-Maturity: | |||
Held-to-maturity Securities, unrealized loss position, number of securities | security | 90 | 66 | |
Held-to-maturity Securities, proceeds from sale | $ 0 | $ 0 | $ 0 |
Held-to-maturity securities, number of securities in nonaccrual status | security | 0 | 0 | 0 |
Principal repayments and maturities of securities—held-to-maturity | $ 2,000 |
LOANS RECEIVABLE AND THE ALLO_3
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Loans by Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 8,684,595 | $ 7,598,884 | ||
Allowance for loan losses | 96,485 | 89,028 | $ 85,997 | $ 78,008 |
Total loans, net | $ 8,588,110 | $ 7,509,856 | ||
Percent of total loans | 100.00% | 100.00% | ||
Unearned loan fees in excess of unamortized costs | $ 1,375 | $ (200) | ||
Discount on acquired loans, net | 25,700 | 21,100 | ||
Related party loans | 3,500 | 3,500 | ||
Commerical real estate - owner-occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 1,430,097 | $ 1,284,363 | ||
Percent of total loans | 16.40% | 16.90% | ||
Commercial real estate - investment properties [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 2,131,059 | $ 1,937,423 | ||
Percent of total loans | 24.50% | 25.50% | ||
Multifamily real estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 368,836 | $ 314,188 | ||
Allowance for loan losses | $ 3,818 | $ 1,633 | 1,360 | 4,195 |
Percent of total loans | 4.20% | 4.10% | ||
Commercial Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 172,410 | $ 148,435 | ||
Percent of total loans | 2.00% | 2.00% | ||
Multifamily construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 184,630 | $ 154,662 | ||
Percent of total loans | 2.10% | 2.00% | ||
One-to four-family construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 534,678 | $ 415,327 | ||
Percent of total loans | 6.20% | 5.50% | ||
Land and land development - residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 188,508 | $ 164,516 | ||
Percent of total loans | 2.20% | 2.20% | ||
Land and land development - commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 27,278 | $ 24,583 | ||
Percent of total loans | 0.30% | 0.30% | ||
Commercial business [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 1,483,614 | $ 1,279,894 | ||
Allowance for loan losses | $ 19,438 | $ 18,311 | 16,533 | 13,856 |
Percent of total loans | 17.10% | 16.80% | ||
Agricultural business, including secured by farmland [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 404,873 | $ 338,388 | ||
Allowance for loan losses | $ 3,778 | $ 4,053 | 2,967 | 3,645 |
Percent of total loans | 4.70% | 4.40% | ||
One- to four-family residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 973,616 | $ 848,289 | ||
Allowance for loan losses | $ 4,714 | $ 2,055 | $ 2,238 | $ 4,732 |
Percent of total loans | 11.20% | 11.20% | ||
Consumer secured by one- to four-family [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 568,979 | $ 522,931 | ||
Percent of total loans | 6.60% | 6.90% | ||
Consumer Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans outstanding | $ 216,017 | $ 165,885 | ||
Percent of total loans | 2.50% | 2.20% |
LOANS RECEIVABLE AND THE ALLO_4
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Purchased Credit-Impaired Loans, Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions | $ 995 | $ 0 |
Outstanding contractual unpaid balance of purchased credit-impaired loans | 22,000 | |
Carrying balance of purchased credit-impaired loans | 14,413 | 21,310 |
Accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | 6,520 | 8,717 |
Accretion to interest income | 7,509 | 5,929 |
Disposals | (58) | 564 |
Reclassifications from non-accretable difference | 5,152 | 4,296 |
Balance, end of period | 5,216 | $ 6,520 |
Certain Loans Acquired in Transfer, Nonaccretable Difference | $ 7,100 |
LOANS RECEIVABLE AND THE ALLO_5
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Impaired Loans With and Without Specific Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | $ 31,813 | $ 45,543 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 17,765 | 26,488 | |
Recorded Investment | 11,311 | 16,656 | |
Related Allowance | 416 | 782 | |
Impaired Financing Receivable, Average Recorded Investment | 32,033 | 39,263 | $ 49,535 |
Interest Income Recognized | 787 | 898 | 1,056 |
Commerical real estate - owner-occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 3,193 | 7,807 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,768 | 6,447 | |
Recorded Investment | 200 | 199 | |
Related Allowance | 19 | 18 | |
Impaired Financing Receivable, Average Recorded Investment | 3,806 | 3,697 | 2,721 |
Interest Income Recognized | 11 | 11 | 2 |
Commercial real estate - investment properties [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 7,287 | 11,296 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,320 | 4,200 | |
Recorded Investment | 5,606 | 6,884 | |
Related Allowance | 226 | 263 | |
Impaired Financing Receivable, Average Recorded Investment | 7,822 | 9,136 | 18,529 |
Interest Income Recognized | 314 | 195 | 242 |
Multifamily real estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 0 | 251 | 513 |
Interest Income Recognized | 0 | 10 | 21 |
Commercial Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 115 | 0 | |
Interest Income Recognized | 0 | 0 | |
One-to four-family construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 919 | 298 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 919 | 298 | |
Recorded Investment | 0 | 0 | |
Related Allowance | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment | 778 | 418 | 1,158 |
Interest Income Recognized | 6 | 27 | 75 |
Land and land development - residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 1,134 | 1,134 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 798 | 798 | |
Recorded Investment | 0 | 0 | |
Related Allowance | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment | 994 | 1,396 | 1,948 |
Interest Income Recognized | 10 | 42 | 85 |
Land and land development - commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 44 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 44 | ||
Recorded Investment | 0 | ||
Related Allowance | 0 | ||
Impaired Financing Receivable, Average Recorded Investment | 4 | 867 | 1,003 |
Interest Income Recognized | 0 | 0 | 0 |
Commercial business [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 4,014 | 4,441 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,937 | 3,424 | |
Recorded Investment | 391 | 555 | |
Related Allowance | 16 | 50 | |
Impaired Financing Receivable, Average Recorded Investment | 3,443 | 5,996 | 4,290 |
Interest Income Recognized | 21 | 68 | 37 |
Agricultural business, including secured by farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 4,863 | 9,388 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,751 | 6,230 | |
Recorded Investment | 2,561 | 3,031 | |
Related Allowance | 96 | 264 | |
Impaired Financing Receivable, Average Recorded Investment | 5,501 | 6,184 | 5,004 |
Interest Income Recognized | 102 | 207 | 119 |
One- to four-family residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 6,724 | 9,547 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 4,314 | 3,709 | |
Recorded Investment | 2,358 | 5,775 | |
Related Allowance | 51 | 178 | |
Impaired Financing Receivable, Average Recorded Investment | 7,845 | 9,499 | 11,976 |
Interest Income Recognized | 302 | 322 | 441 |
Consumer secured by one- to four-family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 1,622 | 1,498 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,438 | 1,324 | |
Recorded Investment | 133 | 139 | |
Related Allowance | 6 | 7 | |
Impaired Financing Receivable, Average Recorded Investment | 1,583 | 1,635 | 1,778 |
Interest Income Recognized | 17 | 9 | 17 |
Consumer Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 112 | 134 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 49 | 58 | |
Recorded Investment | 62 | 73 | |
Related Allowance | 2 | 2 | |
Impaired Financing Receivable, Average Recorded Investment | 142 | 184 | 615 |
Interest Income Recognized | $ 4 | $ 7 | $ 17 |
LOANS RECEIVABLE AND THE ALLO_6
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | $ 13,422,000 | $ 16,115,000 |
Nonaccrual Status | 317,000 | 917,000 |
Total TDRs | 13,739,000 | 17,032,000 |
Financing Receivable, Modifications, Commitments to Advance Funds | 0 | 45,000 |
Commerical real estate - owner-occupied [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | 200,000 | 199,000 |
Nonaccrual Status | 78,000 | 87,000 |
Total TDRs | 278,000 | 286,000 |
Commercial real estate - investment properties [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | 5,606,000 | 6,884,000 |
Nonaccrual Status | 0 | 0 |
Total TDRs | 5,606,000 | 6,884,000 |
Commercial business [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | 391,000 | 555,000 |
Nonaccrual Status | 0 | 0 |
Total TDRs | 391,000 | 555,000 |
Agricultural business, including secured by farmland [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | 2,561,000 | 3,129,000 |
Nonaccrual Status | 0 | 29,000 |
Total TDRs | 2,561,000 | 3,158,000 |
One- to four-family residential [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | 4,469,000 | 5,136,000 |
Nonaccrual Status | 239,000 | 801,000 |
Total TDRs | 4,708,000 | 5,937,000 |
Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | 133,000 | 139,000 |
Nonaccrual Status | 0 | 0 |
Total TDRs | 133,000 | 139,000 |
Consumer Loan [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Accrual Status | 62,000 | 73,000 |
Nonaccrual Status | 0 | 0 |
Total TDRs | $ 62,000 | $ 73,000 |
LOANS RECEIVABLE AND THE ALLO_7
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Newly Restructured Loans) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | |
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Number of Contracts | contract | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 3,714 | $ 272 |
Post-Modification Outstanding Recorded Investment | $ 3,714 | $ 272 |
Commercial real estate - investment properties [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 3,714 | $ 194 |
Post-Modification Outstanding Recorded Investment | $ 3,714 | $ 194 |
Residential Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructurings [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 78 | |
Post-Modification Outstanding Recorded Investment | $ 78 |
LOANS RECEIVABLE AND THE ALLO_8
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring Which Incurred Payment Default) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 0 |
LOANS RECEIVABLE AND THE ALLO_9
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Risk-Rate and Non-Risk Rated Loans by Grade and Other Characteristic) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 8,684,595 | $ 7,598,884 |
Owner-occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,430,097 | 1,284,363 |
Commer[Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,131,059 | 1,937,423 |
Multifamily Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 368,836 | 314,188 |
Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 172,410 | 148,435 |
Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 184,630 | 154,662 |
One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 534,678 | 415,327 |
Residential Land and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 188,508 | 164,516 |
Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 27,278 | 24,583 |
Commercial business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,483,614 | 1,279,894 |
Agricultural Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 404,873 | 338,388 |
One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 973,616 | 848,289 |
Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 568,979 | 522,931 |
Consumer Borrower [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 216,017 | 165,885 |
Pass (Risk Ratings 1-5) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 8,557,839 | 7,431,182 |
Pass (Risk Ratings 1-5) [Member] | Small Credit-Scored Business Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 590,900 | 296,800 |
Pass (Risk Ratings 1-5) [Member] | Owner-occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,396,721 | 1,246,125 |
Pass (Risk Ratings 1-5) [Member] | Commer[Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,122,621 | 1,918,940 |
Pass (Risk Ratings 1-5) [Member] | Multifamily Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 368,262 | 313,432 |
Pass (Risk Ratings 1-5) [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 159,167 | 148,435 |
Pass (Risk Ratings 1-5) [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 184,630 | 154,662 |
Pass (Risk Ratings 1-5) [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 533,759 | 411,802 |
Pass (Risk Ratings 1-5) [Member] | Residential Land and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 187,710 | 153,073 |
Pass (Risk Ratings 1-5) [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 27,200 | 21,665 |
Pass (Risk Ratings 1-5) [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,436,733 | 1,213,365 |
Pass (Risk Ratings 1-5) [Member] | Agricultural Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 392,318 | 321,110 |
Pass (Risk Ratings 1-5) [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 969,011 | 842,304 |
Pass (Risk Ratings 1-5) [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 564,001 | 520,675 |
Pass (Risk Ratings 1-5) [Member] | Consumer Borrower [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 215,706 | 165,594 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 31,162 | 48,468 |
Special Mention [Member] | Owner-occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 6,963 | 12,227 |
Special Mention [Member] | Commer[Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 9,118 |
Special Mention [Member] | Multifamily Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 11,816 | 0 |
Special Mention [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | Residential Land and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 10,554 |
Special Mention [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 7,661 | 12,135 |
Special Mention [Member] | Agricultural Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,214 | 3,852 |
Special Mention [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 499 | 569 |
Special Mention [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Special Mention [Member] | Consumer Borrower [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 9 | 13 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 95,507 | 119,122 |
Substandard [Member] | Owner-occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 26,413 | 26,011 |
Substandard [Member] | Commer[Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 8,438 | 9,365 |
Substandard [Member] | Multifamily Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 574 | 756 |
Substandard [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,427 | 0 |
Substandard [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Substandard [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 919 | 3,525 |
Substandard [Member] | Residential Land and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 798 | 889 |
Substandard [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 78 | 2,918 |
Substandard [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 39,133 | 54,282 |
Substandard [Member] | Agricultural Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 8,341 | 13,426 |
Substandard [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,106 | 5,416 |
Substandard [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,978 | 2,256 |
Substandard [Member] | Consumer Borrower [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 302 | 278 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 87 | 112 |
Doubtful [Member] | Owner-occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Commer[Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Multifamily Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Residential Land and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 87 | 112 |
Doubtful [Member] | Agricultural Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Doubtful [Member] | Consumer Borrower [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Owner-occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Commer[Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Multifamily Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Residential Land and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Agricultural Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Loss [Member] | Consumer Borrower [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 0 | $ 0 |
LOANS RECEIVABLE AND THE ALL_10
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Age Analysis of Company's Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 38,202 | $ 45,980 |
Carrying balance of purchased credit-impaired loans | 14,413 | 21,310 |
Current | 8,631,980 | 7,531,594 |
Loans receivable | 8,684,595 | 7,598,884 |
Loans 90 Days or More Past Due and Accruing | 906 | 1,486 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 14,748 | 25,543 |
Commerical real estate - owner-occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,527 | 10,889 |
Carrying balance of purchased credit-impaired loans | 8,531 | 7,682 |
Current | 1,418,039 | 1,265,792 |
Loans receivable | 1,430,097 | 1,284,363 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,768 | 6,447 |
Commercial real estate - investment properties [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,523 | 5,833 |
Carrying balance of purchased credit-impaired loans | 3,462 | 7,166 |
Current | 2,126,074 | 1,924,424 |
Loans receivable | 2,131,059 | 1,937,423 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,320 | 4,199 |
Multifamily real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 317 | 105 |
Carrying balance of purchased credit-impaired loans | 138 | 169 |
Current | 368,381 | 313,914 |
Loans receivable | 368,836 | 314,188 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,427 | 0 |
Carrying balance of purchased credit-impaired loans | 0 | 0 |
Current | 170,983 | 148,435 |
Loans receivable | 172,410 | 148,435 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,427 | 0 |
Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 3,416 |
Carrying balance of purchased credit-impaired loans | 0 | 0 |
Current | 184,630 | 151,246 |
Loans receivable | 184,630 | 154,662 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6,778 | 5,915 |
Carrying balance of purchased credit-impaired loans | 137 | 446 |
Current | 527,763 | 408,966 |
Loans receivable | 534,678 | 415,327 |
Loans 90 Days or More Past Due and Accruing | 0 | 298 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 919 | 0 |
Land and land development - residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,248 | 798 |
Carrying balance of purchased credit-impaired loans | 0 | 0 |
Current | 187,260 | 163,718 |
Loans receivable | 188,508 | 164,516 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 798 | 798 |
Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 78 | 0 |
Carrying balance of purchased credit-impaired loans | 0 | 2,919 |
Current | 27,200 | 21,664 |
Loans receivable | 27,278 | 24,583 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 44 | 0 |
Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7,043 | 4,555 |
Carrying balance of purchased credit-impaired loans | 1,028 | 2,159 |
Current | 1,475,543 | 1,273,180 |
Loans receivable | 1,483,614 | 1,279,894 |
Loans 90 Days or More Past Due and Accruing | 1 | 18 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,936 | 3,406 |
Agricultural business, including secured by farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,462 | 3,148 |
Carrying balance of purchased credit-impaired loans | 493 | 565 |
Current | 400,918 | 334,675 |
Loans receivable | 404,873 | 338,388 |
Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,751 | 6,132 |
One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8,887 | 8,431 |
Carrying balance of purchased credit-impaired loans | 101 | 136 |
Current | 964,628 | 839,722 |
Loans receivable | 973,616 | 848,289 |
Loans 90 Days or More Past Due and Accruing | 658 | 1,085 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,544 | 3,264 |
Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,607 | 2,130 |
Carrying balance of purchased credit-impaired loans | 432 | 0 |
Current | 565,940 | 520,801 |
Loans receivable | 568,979 | 522,931 |
Loans 90 Days or More Past Due and Accruing | 238 | 85 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,201 | 1,239 |
Consumer Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,305 | 760 |
Carrying balance of purchased credit-impaired loans | 91 | 68 |
Current | 214,621 | 165,057 |
Loans receivable | 216,017 | 165,885 |
Loans 90 Days or More Past Due and Accruing | 9 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 40 | 58 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 18,270 | 24,084 |
30 to 59 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 785 | 5,323 |
30 to 59 Days Past Due [Member] | Commercial real estate - investment properties [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 91 | 1,737 |
30 to 59 Days Past Due [Member] | Multifamily real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 317 | 105 |
30 to 59 Days Past Due [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
30 to 59 Days Past Due [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 3,416 |
30 to 59 Days Past Due [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,781 | 4,892 |
30 to 59 Days Past Due [Member] | Land and land development - residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 450 | 0 |
30 to 59 Days Past Due [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 34 | 0 |
30 to 59 Days Past Due [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,982 | 1,574 |
30 to 59 Days Past Due [Member] | Agricultural business, including secured by farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 343 | 598 |
30 to 59 Days Past Due [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5,440 | 4,475 |
30 to 59 Days Past Due [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,136 | 1,355 |
30 to 59 Days Past Due [Member] | Consumer Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 911 | 609 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7,858 | 3,177 |
60 to 89 Days Past Due [Member] | Commerical real estate - owner-occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 519 | 76 |
60 to 89 Days Past Due [Member] | Commercial real estate - investment properties [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 498 | 0 |
60 to 89 Days Past Due [Member] | Multifamily real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60 to 89 Days Past Due [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60 to 89 Days Past Due [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60 to 89 Days Past Due [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,078 | 725 |
60 to 89 Days Past Due [Member] | Land and land development - residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60 to 89 Days Past Due [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60 to 89 Days Past Due [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,305 | 404 |
60 to 89 Days Past Due [Member] | Agricultural business, including secured by farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,518 | 533 |
60 to 89 Days Past Due [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,790 | 1,241 |
60 to 89 Days Past Due [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 765 | 62 |
60 to 89 Days Past Due [Member] | Consumer Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 385 | 136 |
90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12,074 | 18,719 |
90 Days or More Past Due [Member] | Commerical real estate - owner-occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,223 | 5,490 |
90 Days or More Past Due [Member] | Commercial real estate - investment properties [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 934 | 4,096 |
90 Days or More Past Due [Member] | Multifamily real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due [Member] | Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,427 | 0 |
90 Days or More Past Due [Member] | Multifamily construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due [Member] | One-to four-family construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 919 | 298 |
90 Days or More Past Due [Member] | Land and land development - residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 798 | 798 |
90 Days or More Past Due [Member] | Land and land development - commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 44 | 0 |
90 Days or More Past Due [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,756 | 2,577 |
90 Days or More Past Due [Member] | Agricultural business, including secured by farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,601 | 2,017 |
90 Days or More Past Due [Member] | One- to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,657 | 2,715 |
90 Days or More Past Due [Member] | Consumer secured by one- to four-family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 706 | 713 |
90 Days or More Past Due [Member] | Consumer Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 9 | $ 15 |
LOANS RECEIVABLE AND THE ALL_11
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | $ 89,028 | $ 85,997 | $ 78,008 | $ 89,028 | $ 85,997 | $ 78,008 | |||||||||||
Provision for loan losses | $ 2,500 | $ 2,000 | $ 2,000 | 2,000 | $ 2,000 | $ 2,000 | $ 2,000 | 2,000 | $ 2,030 | $ 2,000 | $ 2,000 | 0 | 8,500 | 8,000 | 6,030 | ||
Recoveries | 4,088 | 3,731 | 6,698 | ||||||||||||||
Charge-offs | (5,131) | (8,700) | (4,739) | ||||||||||||||
Ending balance | 96,485 | 89,028 | 85,997 | 96,485 | 89,028 | 85,997 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | $ 416 | $ 782 | |||||||||||||||
Allowance collectively evaluated for impairment | 95,986 | 88,085 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 161 | ||||||||||||||||
Allowance for loan losses | 96,485 | 89,028 | 89,028 | 85,997 | 85,997 | 78,008 | 89,028 | 85,997 | 78,008 | 96,485 | 89,028 | ||||||
Loans individually evaluated for impairment | 20,075 | 32,512 | |||||||||||||||
Loans collectively evaluated for impairment | 8,650,107 | 7,545,062 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 14,413 | 21,310 | |||||||||||||||
Loans receivable | 8,684,595 | 7,598,884 | |||||||||||||||
Commercial Real Estate [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 22,824 | 20,993 | 20,716 | 22,824 | 20,993 | 20,716 | |||||||||||
Provision for loan losses | 3,063 | 2,639 | 441 | ||||||||||||||
Recoveries | 1,646 | 372 | 582 | ||||||||||||||
Charge-offs | (401) | (1,180) | (746) | ||||||||||||||
Ending balance | 27,132 | 22,824 | 20,993 | 27,132 | 22,824 | 20,993 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 246 | 281 | |||||||||||||||
Allowance collectively evaluated for impairment | 26,886 | 22,543 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 0 | 0 | |||||||||||||||
Allowance for loan losses | 27,132 | 22,824 | 22,824 | 20,993 | 20,993 | 20,716 | 22,824 | 20,993 | 20,716 | 27,132 | 22,824 | ||||||
Loans individually evaluated for impairment | 8,625 | 16,017 | |||||||||||||||
Loans collectively evaluated for impairment | 3,540,538 | 3,190,921 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 11,993 | 14,848 | |||||||||||||||
Loans receivable | 3,561,156 | 3,221,786 | |||||||||||||||
Multifamily Real Estate [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 1,633 | 1,360 | 4,195 | 1,633 | 1,360 | 4,195 | |||||||||||
Provision for loan losses | 2,185 | 262 | (2,835) | ||||||||||||||
Recoveries | 0 | 11 | 0 | ||||||||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||||
Ending balance | 3,818 | 1,633 | 1,360 | 3,818 | 1,633 | 1,360 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||||||||||||
Allowance collectively evaluated for impairment | 3,818 | 1,633 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 0 | 0 | |||||||||||||||
Allowance for loan losses | 3,818 | 1,633 | 1,633 | 1,360 | 1,360 | 4,195 | 1,633 | 1,360 | 4,195 | 3,818 | 1,633 | ||||||
Loans individually evaluated for impairment | 0 | 0 | |||||||||||||||
Loans collectively evaluated for impairment | 368,698 | 314,019 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 138 | 169 | |||||||||||||||
Loans receivable | 368,836 | 314,188 | |||||||||||||||
Construction and Land [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 27,568 | 34,252 | 27,131 | 27,568 | 34,252 | 27,131 | |||||||||||
Provision for loan losses | (2,860) | (7,921) | 5,566 | ||||||||||||||
Recoveries | 213 | 1,237 | 2,171 | ||||||||||||||
Charge-offs | (479) | 0 | (616) | ||||||||||||||
Ending balance | 24,442 | 27,568 | 34,252 | 24,442 | 27,568 | 34,252 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||||||||||||
Allowance collectively evaluated for impairment | 24,442 | 27,567 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 0 | 1 | |||||||||||||||
Allowance for loan losses | 24,442 | 27,568 | 27,568 | 34,252 | 34,252 | 27,131 | 27,568 | 34,252 | 27,131 | 24,442 | 27,568 | ||||||
Loans individually evaluated for impairment | 3,096 | 750 | |||||||||||||||
Loans collectively evaluated for impairment | 1,104,271 | 903,408 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 137 | 3,365 | |||||||||||||||
Loans receivable | 1,107,504 | 907,523 | |||||||||||||||
Commercial business [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 18,311 | 16,533 | 13,856 | 18,311 | 16,533 | 13,856 | |||||||||||
Provision for loan losses | 2,129 | 4,355 | 1,632 | ||||||||||||||
Recoveries | 1,049 | 1,226 | 1,993 | ||||||||||||||
Charge-offs | (2,051) | (3,803) | (948) | ||||||||||||||
Ending balance | 19,438 | 18,311 | 16,533 | 19,438 | 18,311 | 16,533 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 16 | 50 | |||||||||||||||
Allowance collectively evaluated for impairment | 19,399 | 18,214 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 23 | 47 | |||||||||||||||
Allowance for loan losses | 19,438 | 18,311 | 18,311 | 16,533 | 16,533 | 13,856 | 18,311 | 16,533 | 13,856 | 19,438 | 18,311 | ||||||
Loans individually evaluated for impairment | 391 | 1,812 | |||||||||||||||
Loans collectively evaluated for impairment | 1,482,195 | 1,275,923 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 1,028 | 2,159 | |||||||||||||||
Loans receivable | 1,483,614 | 1,279,894 | |||||||||||||||
Agricultural Business [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 4,053 | 2,967 | 3,645 | 4,053 | 2,967 | 3,645 | |||||||||||
Provision for loan losses | 417 | 3,326 | (170) | ||||||||||||||
Recoveries | 64 | 134 | 59 | ||||||||||||||
Charge-offs | (756) | (2,374) | (567) | ||||||||||||||
Ending balance | 3,778 | 4,053 | 2,967 | 3,778 | 4,053 | 2,967 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 96 | 264 | |||||||||||||||
Allowance collectively evaluated for impairment | 3,622 | 3,676 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 60 | 113 | |||||||||||||||
Allowance for loan losses | 3,778 | 4,053 | 4,053 | 2,967 | 2,967 | 3,645 | 4,053 | 2,967 | 3,645 | 3,778 | 4,053 | ||||||
Loans individually evaluated for impairment | 3,298 | 8,585 | |||||||||||||||
Loans collectively evaluated for impairment | 401,082 | 329,238 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 493 | 565 | |||||||||||||||
Loans receivable | 404,873 | 338,388 | |||||||||||||||
One- to four-family residential [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 2,055 | 2,238 | 4,732 | 2,055 | 2,238 | 4,732 | |||||||||||
Provision for loan losses | 1,952 | (415) | (3,402) | ||||||||||||||
Recoveries | 750 | 270 | 1,283 | ||||||||||||||
Charge-offs | (43) | (38) | (375) | ||||||||||||||
Ending balance | 4,714 | 2,055 | 2,238 | 4,714 | 2,055 | 2,238 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 51 | 178 | |||||||||||||||
Allowance collectively evaluated for impairment | 4,663 | 1,877 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 0 | 0 | |||||||||||||||
Allowance for loan losses | 4,714 | 2,055 | 2,055 | 2,238 | 2,238 | 4,732 | 2,055 | 2,238 | 4,732 | 4,714 | 2,055 | ||||||
Loans individually evaluated for impairment | 4,469 | 5,136 | |||||||||||||||
Loans collectively evaluated for impairment | 969,046 | 843,017 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 101 | 136 | |||||||||||||||
Loans receivable | 973,616 | 848,289 | |||||||||||||||
Consumer [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 3,866 | 4,104 | 902 | 3,866 | 4,104 | 902 | |||||||||||
Provision for loan losses | 5,141 | 586 | 4,079 | ||||||||||||||
Recoveries | 366 | 481 | 610 | ||||||||||||||
Charge-offs | (1,401) | (1,305) | (1,487) | ||||||||||||||
Ending balance | 7,972 | 3,866 | 4,104 | 7,972 | 3,866 | 4,104 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 7 | 9 | |||||||||||||||
Allowance collectively evaluated for impairment | 7,965 | 3,857 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 0 | 0 | |||||||||||||||
Allowance for loan losses | 7,972 | 3,866 | 3,866 | 4,104 | 4,104 | 902 | 3,866 | 4,104 | 902 | 7,972 | 3,866 | ||||||
Loans individually evaluated for impairment | 196 | 212 | |||||||||||||||
Loans collectively evaluated for impairment | 784,277 | 688,536 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 523 | 68 | |||||||||||||||
Loans receivable | 784,996 | 688,816 | |||||||||||||||
Unallocated [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 8,718 | 3,550 | 2,831 | 8,718 | 3,550 | 2,831 | |||||||||||
Provision for loan losses | (3,527) | 5,168 | 719 | ||||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||||
Ending balance | 5,191 | 8,718 | 3,550 | 5,191 | 8,718 | 3,550 | |||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||||||||||||
Allowance collectively evaluated for impairment | 5,191 | 8,718 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses | 0 | 0 | |||||||||||||||
Allowance for loan losses | $ 5,191 | 8,718 | 8,718 | $ 3,550 | $ 3,550 | $ 2,831 | 8,718 | 3,550 | $ 2,831 | 5,191 | 8,718 | ||||||
Loans individually evaluated for impairment | 0 | 0 | |||||||||||||||
Loans collectively evaluated for impairment | 0 | 0 | |||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 0 | 0 | |||||||||||||||
Loans receivable | $ 0 | 0 | |||||||||||||||
Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||||||||
Beginning balance | 83 | 83 | |||||||||||||||
Ending balance | 83 | 83 | |||||||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||||||||||||||
Allowance for loan losses | $ 83 | $ 83 | $ 83 | $ 83 | $ 83 |
REAL ESTATE OWNED, HELD FOR S_3
REAL ESTATE OWNED, HELD FOR SALE, NET (REO Rollforward) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate [Abstract] | |||
Real Estate Acquired Through Foreclosure, Residential | $ 0 | ||
Mortgage Loans in Process of Foreclosure, Amount | 1 | $ 0 | |
Real Estate Owned [Roll Forward] | |||
Balance, beginning of period | 360,000 | 11,081,000 | $ 11,627,000 |
Additions from loan foreclosures | 641,000 | 46,000 | 8,909,000 |
Additions from capitalized costs | 0 | 54,000 | 0 |
Additions from acquisitions | 2,593,000 | 0 | 400,000 |
Proceeds from dispositions of REO | (838,000) | (13,474,000) | (10,812,000) |
Gain on sale of REO | 242,000 | 2,909,000 | 1,833,000 |
Valuation adjustments in the period | (387,000) | (256,000) | (876,000) |
Balance, end of period | $ 2,611,000 | $ 360,000 | $ 11,081,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Real Estate Held for Development and Sale | $ 600 | $ 3,800 | |
Land1 | [1] | 37,835 | 35,080 |
Buildings and leasehold improvements(1) | [1] | 163,813 | 154,374 |
Furniture and equipment | 122,614 | 105,643 | |
Property and equipment, gross | 324,262 | 295,097 | |
Less accumulated depreciation | (152,453) | (140,282) | |
Property and equipment, net | $ 171,809 | $ 154,815 | |
[1] | The Company had $557,000 and $3.8 million of properties held for sale that were included in land and buildings at December 31, 2018 and 2017, respectively. |
PROPERTY AND EQUIPMENT, NET (Op
PROPERTY AND EQUIPMENT, NET (Operating Lease Commitments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Property, Plant and Equipment [Abstract] | |
2,016 | $ 10,876 |
2,017 | 10,450 |
2,018 | 9,485 |
2,019 | 6,716 |
2,020 | 4,248 |
Thereafter | 11,225 |
Total | $ 53,000 |
PROPERTY AND EQUIPMENT, NET PRO
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 15,232 | $ 14,701 | $ 13,464 |
Rental expense | $ 17,200 | $ 16,400 | $ 16,700 |
DEPOSITS (Deposit Liabilities)
DEPOSITS (Deposit Liabilities) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Deposit Liabilities [Line Items] | |||
Non-interest-bearing checking | $ 3,657,817,000 | $ 3,265,544,000 | |
Interest-bearing checking | 1,191,016,000 | 971,137,000 | |
Regular savings accounts | 1,842,581,000 | 1,557,500,000 | |
Money market accounts | 1,465,369,000 | 1,422,313,000 | |
Total interest-bearing transaction and savings accounts | 4,498,966,000 | 3,950,950,000 | |
Time Deposits, $250,000 or less | 1,143,303,000 | 813,997,000 | |
Time Deposits, More than $250,000 | 176,962,000 | 152,940,000 | |
Interest-bearing certificates | [1] | 1,320,265,000 | 966,937,000 |
Total deposits | 9,477,048,000 | 8,183,431,000 | |
Included in total deposits: | |||
Public fund transaction accounts | 217,401,000 | 198,719,000 | |
Public fund interest-bearing certificates | 30,089,000 | 23,685,000 | |
Total public deposits | 247,490,000 | 222,404,000 | |
Total brokered deposits | 377,347,000 | 57,228,000 | |
Related Party Deposit Liabilities | 8,300,000 | 10,000,000 | |
Business Combination, Acquired Deposits, Time Deposit Premium | 563,000 | 11,000 | |
Time deposits equal to or greater than $250,000 | $ 180,500,000 | $ 155,900,000 | |
[1] | )Certificates of deposit included $563,000 of acquisition discounts at December 31, 2018 and $11,000 of acquisition premiums at December 31, 2017. |
DEPOSITS (Maturities and Weight
DEPOSITS (Maturities and Weighted Average Interest Rates of Certificates of Deposit) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Maturities of Time Deposits [Abstract] | |||
Maturing in one year or less | $ 1,001,206 | ||
Maturing after one year through two years | 201,919 | ||
Maturing after two years through three years | 90,247 | ||
Maturing after three years through four years | 13,364 | ||
Maturing after four years through five years | 11,282 | ||
Maturing after five years | 2,247 | ||
Total certificates of deposit | [1] | $ 1,320,265 | $ 966,937 |
Weighted Average Rate [Abstract] | |||
Maturing in one year or less | 1.15% | ||
Maturing after one year through two years | 1.09% | ||
Maturing after two years through three years | 1.57% | ||
Maturing after three years through four years | 1.22% | ||
Maturing after four years through five years | 1.75% | ||
Maturing after five years | 1.07% | ||
Total certificates of deposits | 1.17% | ||
[1] | )Certificates of deposit included $563,000 of acquisition discounts at December 31, 2018 and $11,000 of acquisition premiums at December 31, 2017. |
ADVANCES FROM FEDERAL HOME LO_3
ADVANCES FROM FEDERAL HOME LOAN BANK OF DES MOINES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | ||
Federal Home Loan Bank, advances, collateral pledged | $ 0 | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Maturing in one year or less | $ 540,000,000 | $ 0 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 2.64% | 0.00% |
Maturing after one year through three years | $ 0 | $ 0 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, Two to Three Years from Balance Sheet Date | 0.00% | 0.00% |
Maturing after three years through five years | $ 0 | $ 0 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, Three to Four Years from Balance Sheet Date | 0.00% | 0.00% |
Maturing after five years | $ 189,000 | $ 202,000 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, after Five Years from Balance Sheet Date | 5.94% | 5.94% |
Total FHLB advances | $ 540,189,000 | $ 202,000 |
Federal Home Loan Bank, advances, maximum outstanding at any month end | 540,200,000 | 453,200,000 |
Federal Home Loan Bank, advances, average balance outstanding | $ 253,700,000 | $ 151,300,000 |
Federal Home Loan Bank, Advances, Activity for Year, Average Interest Rate for Year | 2.22% | 1.26% |
Federal Home Loan Bank, advances, average interest rate for year | 2.64% | 5.94% |
Subsidiary, Banner Bank [Member] | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank, advances, percentage of total assets to support credit line | 45.00% | |
Federal Home Loan Bank, advances, maximum credit line | $ 4,590,000,000 | |
Subsidiary, Islanders Bank [Member] | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank, advances, percentage of total assets to support credit line | 35.00% | |
Federal Home Loan Bank, advances, maximum credit line | $ 103,500,000 |
OTHER BORROWINGS (Schedule of O
OTHER BORROWINGS (Schedule of Other Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Amount: | ||
Total year-end outstanding | $ 118,995 | $ 95,860 |
Repurchase Agreements [Member] | Retail repurchase agreements [Member] | ||
Amount: | ||
Maturing in one year or less | 118,995 | 95,860 |
Maturing after one year through two years | 0 | 0 |
Maturing after two years | 0 | 0 |
Total year-end outstanding | $ 118,995 | $ 95,860 |
Weighted Average Rate: | ||
Maturing in one year or less, weighted average interest rate | 0.21% | 0.29% |
Maturing after one year through two years, weighted average interest rate | 0.00% | 0.00% |
Maturing after two years, weighted average interest rate | 0.00% | 0.00% |
Total year-end outstanding, weighted average interest rate | 0.21% | 0.29% |
Other Borrowings, Activity for Year [Abstract] | ||
Average outstanding | $ 108,065 | $ 111,872 |
Average outstanding, weighted average interest rate | 0.21% | 0.28% |
Maximum outstanding at any month end | $ 121,766 | $ 120,245 |
OTHER BORROWINGS (Textuals) (De
OTHER BORROWINGS (Textuals) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Securities pledged to secure retail repurchase agreements | $ 154,042,000 | |
Funds Borrowed Against Current Borrowing Capacity | 118,995,000 | $ 95,860,000 |
Repurchase Agreements [Member] | Retail repurchase agreements [Member] | ||
Debt Instrument [Line Items] | ||
Funds Borrowed Against Current Borrowing Capacity | $ 118,995,000 | 95,860,000 |
Repurchase Agreements [Member] | Retail repurchase agreements [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements, interest rate | 0.10% | |
Repurchase Agreements [Member] | Retail repurchase agreements [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements, interest rate | 0.55% | |
Federal Reserve Bank Advances [Member] | Federal Reserve Bank of San Francisco [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 1,150,000,000 | |
Funds Borrowed Against Current Borrowing Capacity | 0 | 0 |
Subsidiary, Banner Bank [Member] | Federal Funds Purchased [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 110,000,000 | |
Line of credit, current | 0 | 0 |
Balance outstanding | 0 | |
Subsidiary, Islanders Bank [Member] | Federal Funds Purchased [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | 5,000,000 | |
Line of credit, current | $ 0 | $ 0 |
JUNIOR SUBORDINATED DEBENTURE_3
JUNIOR SUBORDINATED DEBENTURES AND MANDATORILY REDEEMABLE TRUST PREFERRED SECURITIES (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)subsidiary | Dec. 31, 2017USD ($) | |
Schedule of Trust Preferred Securities [Line Items] | ||
Number of wholly-owned Grantor Trusts | subsidiary | 9 | |
Grantor trusts amount of tier one risk based capital | $ 1,203,155 | $ 1,123,154 |
Debentures Subject to Mandatory Redemption [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 140,212 | |
Fair value adjustment | (26,121) | |
Total TPS liability at fair value | $ 114,091 | |
Current Interest Rate | 4.71% | |
Debentures Subject to Mandatory Redemption [Member] | Banner Capital Trusts [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Grantor trusts amount of tier one risk based capital | $ 136,000 | |
Grantor trusts percentage of tier one risk based capital | 10.40% | |
Debentures Subject to Mandatory Redemption [Member] | Banner Capital Trust II [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 15,464 | |
Current Interest Rate | 5.79% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 3.35% | |
Debentures Subject to Mandatory Redemption [Member] | Banner Capital Trust III [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 15,465 | |
Current Interest Rate | 5.34% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 2.90% | |
Debentures Subject to Mandatory Redemption [Member] | Banner Capital Trust IV [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 15,465 | |
Current Interest Rate | 5.29% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 2.85% | |
Debentures Subject to Mandatory Redemption [Member] | Banner Capital Trust V [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 25,774 | |
Current Interest Rate | 4.22% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 1.57% | |
Debentures Subject to Mandatory Redemption [Member] | Banner Capital Trust VI [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 25,774 | |
Current Interest Rate | 4.36% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 1.62% | |
Debentures Subject to Mandatory Redemption [Member] | Banner Capital Trust VII [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 25,774 | |
Current Interest Rate | 3.78% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 1.38% | |
Debentures Subject to Mandatory Redemption [Member] | Siuslaw Statutory Trust One [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 8,248 | |
Current Interest Rate | 5.49% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 2.70% | |
Debentures Subject to Mandatory Redemption [Member] | Greater Sacramento Bancorp Statutory Trust one [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 4,124 | |
Current Interest Rate | 5.79% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 3.35% | |
Debentures Subject to Mandatory Redemption [Member] | Greater Sacramento Bancorp Statutory Trust Two [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 4,124 | |
Current Interest Rate | 4.47% | |
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 1.68% | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 136,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Banner Capital Trust II [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 15,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Banner Capital Trust III [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 15,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Banner Capital Trust IV [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 15,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Banner Capital Trust V [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 25,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Banner Capital Trust VI [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 25,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Banner Capital Trust VII [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 25,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Siuslaw Statutory Trust One [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 8,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Greater Sacramento Bancorp Statutory Trust one [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 4,000 | |
Aggregate Liquidation Amount of Trust Preferred Securities [Member] | Greater Sacramento Bancorp Statutory Trust Two [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 4,000 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 4,212 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Banner Capital Trust II [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 464 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Banner Capital Trust III [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 465 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Banner Capital Trust IV [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 465 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Banner Capital Trust V [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 774 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Banner Capital Trust VI [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 774 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Banner Capital Trust VII [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 774 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Siuslaw Statutory Trust One [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 248 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Greater Sacramento Bancorp Statutory Trust one [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | 124 | |
Aggregate Liquidation Amount of Common Capital Securities [Member] | Greater Sacramento Bancorp Statutory Trust Two [Member] | ||
Schedule of Trust Preferred Securities [Line Items] | ||
Total TPS liability at par | $ 124 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||||||||||||||
Current Federal Tax Expense (Benefit) | $ 21,869 | $ 30,961 | $ 29,787 | ||||||||||||
Current State and Local Tax Expense (Benefit) | 4,130 | 3,085 | 2,477 | ||||||||||||
Current | 25,999 | 34,046 | 32,264 | ||||||||||||
Deferred Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||||||||||||||
Deferred Federal Income Tax Expense (Benefit) | 2,021 | 58,646 | 9,908 | ||||||||||||
Deferred State and Local Income Tax Expense (Benefit) | 575 | (2,204) | 2,083 | ||||||||||||
Deferred | 2,596 | 56,442 | 11,991 | ||||||||||||
Provision for (benefit from) income taxes | $ 3,053 | $ 8,084 | $ 9,219 | $ 8,239 | $ 54,986 | $ 10,883 | $ 12,791 | $ 11,828 | $ 11,943 | $ 12,277 | $ 10,841 | $ 9,194 | $ 28,595 | $ 90,488 | $ 44,255 |
INCOME TAXES (Effective Income
INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal income tax statutory rate | 21.00% | 35.00% | 35.00% |
Increase (decrease) in tax rate due to: | |||
Tax-exempt interest | (2.00%) | (2.60%) | (2.60%) |
Investment in life insurance | (0.60%) | (1.10%) | (1.20%) |
State income taxes, net of federal tax offset | 2.30% | 2.00% | 2.20% |
Tax credits | (0.80%) | (0.60%) | (0.80%) |
Change in effective income tax rate due to merger and acquisition costs | 0.10% | 0.00% | 0.00% |
Merger and acquisition costs | (2.50%) | 0.00% | 0.00% |
Increase in federal statutory income tax rate due to 2017 Tax Cuts and Jobs Act | 0.00% | 28.20% | |
Other | (0.20%) | (1.10%) | 1.50% |
Effective income tax rate | 17.30% | 59.80% | 34.10% |
INCOME TAXES (Schedule of Net D
INCOME TAXES (Schedule of Net Deferred Tax Asset ) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Loan loss and REO | $ 24,156 | $ 22,294 |
Deferred compensation | 15,991 | 13,045 |
Net operating loss carryforward | 37,828 | 43,721 |
Federal and state tax credits | 7,614 | 7,614 |
State net operating losses | 6,105 | 6,706 |
Deferred Tax Asset, Loan Discount | 5,756 | 4,736 |
Other | 983 | 4,326 |
Total deferred tax assets | 98,433 | 102,442 |
Deferred tax liabilities: | ||
Depreciation | (3,771) | (1,343) |
Deferred loan fees, servicing rights and loan origination costs | 10,196 | 9,564 |
Intangibles | (8,428) | (5,690) |
Financial instruments accounted for under fair value accounting | (833) | (9,702) |
Other | 0 | (325) |
Total deferred tax liabilities | (23,228) | (26,624) |
Deferred income tax asset | 75,205 | 75,818 |
Valuation allowance | 184 | 4,391 |
Deferred tax asset, net | $ 75,021 | $ 71,427 |
INCOME TAXES (Textuals) (Detail
INCOME TAXES (Textuals) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, amount expected to be utilized on an annual basis | $ 6.9 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 180.1 | $ 208.2 |
Operating loss carryforward, amount expected to be utilized on an annual basis | 21.5 | |
Tax basis bad debt reserves for which no income tax liability has been booked | 5.4 | 5.4 |
Unrecognized deferred tax liability related to bad debt reserves | 1.1 | |
Domestic Tax Authority [Member] | General Business Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Federal and state tax credit carryforwards | 3.4 | 3.4 |
Domestic Tax Authority [Member] | Alternative Minimum Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Federal and state tax credit carryforwards | 4.2 | 4.2 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 86.8 | $ 94.6 |
Operating loss carryforwards, valuation allowance | 0.2 | |
Operating loss carryforward, amount expected to be utilized on an annual basis, valuation allowance | $ 0.2 |
INCOME TAXES Affordable Housing
INCOME TAXES Affordable Housing Tax Credit Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Amortization Method Qualified Affordable Housing Project Investments | $ 17,360 | $ 7,311 | |
Qualified Affordable Housing Project Investments, Commitment | 12,726 | 4,417 | |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 1,456 | 1,140 | $ 1,136 |
Amortization Method Qualified Affordable Housing Project Investments, Amortization | $ 1,151 | $ 1,144 | $ 672 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Defined contribution plan expense | $ 5,400 | $ 4,800 | $ 4,600 |
Defined contribution plan, employer matching contribution percent | 4.00% | ||
Deferred compensation liability | $ 40,338 | 41,039 | |
Carrying value of shares held in trust for stock related compensation plans | 7,289 | 7,351 | |
Cash surrender value of bank-owned life insurance policies | 177,500 | 162,700 | |
Supplemental Retirement and Salary Contribution Plans [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation plans expense | 2,300 | 3,500 | $ 2,700 |
Deferred compensation liability | 37,500 | 38,600 | |
Deferred Compensation Plans and Rabbi Trusts [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation liability | 9,000 | 9,900 | |
Carrying value of shares held in trust for stock related compensation plans | $ 7,300 | $ 7,400 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Restricted Stock and Restricted Stock Units Activity) (Details) - Restricted Stock and Restricted Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unvested Shares: [Roll Forward] | |||
Unvested, Beginning Balance | 302,077 | 290,719 | 231,562 |
Granted | 161,598 | 153,777 | 177,775 |
Vested | (103,363) | (103,259) | (104,297) |
Forfeited | (42,215) | (39,160) | (14,321) |
Unvested, Ending Balance | 318,097 | 302,077 | 290,719 |
Weighted Average Grant-Date Fair Value (in dollars per share): | |||
Unvested, Beginning Balance | $ 48.97 | $ 42.26 | $ 42.33 |
Granted | 55.04 | 55.86 | 47.74 |
Vested | 48.60 | 43.81 | 41.47 |
Forfeited | 47.05 | 39.83 | 42.54 |
Unvested, Ending Balance | $ 52.43 | $ 48.97 | $ 42.26 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | 56 Months Ended | 80 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2018 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 6.6 | $ 6 | $ 4.5 | ||
Unrecognized compensation expense | $ 9 | $ 9 | $ 9 | ||
Unrecognized compensation expense, period for recognition | 34 months | ||||
2012 Restricted Stock and Incentive Bonus Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 300,000 | 300,000 | 300,000 | ||
2012 Restricted Stock and Incentive Bonus Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period | 269,863 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 261,849 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 8,014 | 8,014 | 8,014 | ||
Award vesting period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
2014 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 900,000 | 900,000 | 900,000 | ||
2014 Omnibus Incentive Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period | 340,163 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 181,478 | ||||
2014 Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period | 186,373 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 34,975 |
PREFERRED STOCK AND RELATED W_2
PREFERRED STOCK AND RELATED WARRANT (Details) - U.S. Treasury Capital Purchase Program [Member] $ / shares in Units, $ in Millions | Nov. 21, 2008USD ($)$ / sharesshares |
Series A Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Preferred stock, shares issued | shares | 124,000 |
Preferred stock, liquidation value per share | $ 1,000 |
Preferred stock aggregate liquidation preference | $ | $ 124 |
Common Stock [Member] | Warrant [Member] | |
Class of Stock [Line Items] | |
U.S. Treasury warrants, term (in years) | 10 years |
Warrant, option to purchase common stock (in shares) | shares | 243,998 |
Common stock, par value per share | $ 0.01 |
U.S. Treasury warrants, exercise price per share | $ 76.23 |
U.S. Treasury warrants, aggregate exercise price | $ | $ 18.6 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total capital to risk-weighted assets: | ||
Actual | $ 1,302,239 | $ 1,214,631 |
Actual, Ratio | 13.12% | 13.81% |
Minimum for Capital Adequacy Purposes | $ 794,072 | $ 703,508 |
Minimum for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 992,590 | $ 879,385 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets: | ||
Actual | $ 1,203,155 | $ 1,123,154 |
Actual, Ratio | 12.12% | 12.77% |
Minimum for Capital Adequacy Purposes | $ 595,554 | $ 527,631 |
Minimum for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 595,554 | $ 527,631 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.00% | 6.00% |
Common Equity Tier One Capital | $ 1,067,155 | |
Common Equity Tier One Capital Ratio | 10.75% | |
Tier 1 common equity to risk-weighted assets: | ||
Actual | $ 994,080 | |
Actual, Ratio | 11.30% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 446,665 | $ 395,723 |
Minimum for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Tier 1 leverage capital to average assets: | ||
Actual | $ 1,203,155 | $ 1,123,154 |
Actual, Ratio | 10.98% | 11.34% |
Minimum for Capital Adequacy Purposes | $ 438,379 | $ 396,313 |
Minimum for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Banner Bank [Member] | ||
Total capital to risk-weighted assets: | ||
Actual | $ 1,217,173 | $ 1,102,195 |
Actual, Ratio | 12.50% | 12.83% |
Minimum for Capital Adequacy Purposes | $ 778,766 | $ 687,266 |
Minimum for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 973,457 | $ 859,083 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets: | ||
Actual | $ 1,120,523 | $ 1,013,079 |
Actual, Ratio | 11.51% | 11.79% |
Minimum for Capital Adequacy Purposes | $ 584,074 | $ 515,450 |
Minimum for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 778,766 | $ 687,266 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 1,120,523 | |
Common Equity Tier One Capital Ratio | 11.51% | |
Tier 1 common equity to risk-weighted assets: | ||
Actual | $ 1,013,079 | |
Actual, Ratio | 11.79% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 438,056 | $ 386,587 |
Minimum for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier One Capital Required to be Well-Capitalized | $ 632,747 | $ 558,404 |
Tier One Risk Based Common Equity Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 leverage capital to average assets: | ||
Actual | $ 1,120,523 | $ 1,013,079 |
Actual, Ratio | 10.50% | 10.53% |
Minimum for Capital Adequacy Purposes | $ 426,799 | $ 384,920 |
Minimum for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 533,498 | $ 481,150 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Islanders Bank | ||
Total capital to risk-weighted assets: | ||
Actual | $ 34,567 | $ 32,122 |
Actual, Ratio | 18.26% | 16.39% |
Minimum for Capital Adequacy Purposes | $ 15,142 | $ 15,681 |
Minimum for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 18,928 | $ 19,602 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets: | ||
Actual | $ 32,200 | $ 29,761 |
Actual, Ratio | 17.01% | 15.18% |
Minimum for Capital Adequacy Purposes | $ 11,357 | $ 11,761 |
Minimum for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 15,142 | $ 15,681 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 32,200 | |
Common Equity Tier One Capital Ratio | 17.01% | |
Tier 1 common equity to risk-weighted assets: | ||
Actual | $ 29,761 | |
Actual, Ratio | 15.18% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 8,518 | $ 8,821 |
Minimum for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier One Capital Required to be Well-Capitalized | $ 12,303 | $ 12,741 |
Tier One Risk Based Common Equity Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 leverage capital to average assets: | ||
Actual | $ 32,200 | $ 29,761 |
Actual, Ratio | 11.16% | 10.65% |
Minimum for Capital Adequacy Purposes | $ 11,543 | $ 11,183 |
Minimum for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions | $ 14,428 | $ 13,979 |
Minimum to be Categorized as Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
GOODWILL, OTHER INTANGIBLE AS_3
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
GOODWILL, OTHER INTANGIBLE AS_4
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Goodwill [Line Items] | ||||
Goodwill, beginning of period | $ 242,659 | $ 244,583 | $ 247,738 | |
Intangible Assets, Net (Including Goodwill), beginning of period | 265,314 | 274,745 | 285,210 | |
Goodwill, Acquired During Period | 96,495 | |||
Acquired Intangible Assets (Including Goodwill) | 112,863 | |||
Amortization | (6,099) | (6,431) | (7,310) | |
Goodwill, Other Changes | (1,924) | (3,155) | ||
Finite-Lived Intangible Assets, Other Changes | (1,076) | [1] | 0 | |
Intangible Assets (including Goodwill), Other Changes | (3,000) | [1] | (3,155) | |
Goodwill, end of period | 339,154 | 242,659 | 244,583 | |
Balance, end of period | 32,699 | |||
Intangible Assets, Net (Including Goodwill), end of period | 372,078 | 265,314 | 274,745 | |
Core Deposit Intangibles [Member] | ||||
Goodwill [Line Items] | ||||
Balance, beginning of period | 22,378 | 29,701 | 36,762 | |
Additions through acquisition | 16,368 | |||
Amortization | (6,047) | (6,247) | (7,061) | |
Balance, end of period | 32,699 | 22,378 | 29,701 | |
Other Intangible Assets [Member] | ||||
Goodwill [Line Items] | ||||
Balance, beginning of period | 277 | 461 | 710 | |
Amortization | (52) | (184) | (249) | |
Balance, end of period | $ 225 | $ 277 | $ 461 | |
[1] | 1) The adjustments to goodwill in 2016 related to changes in the preliminary goodwill recorded for the Starbuck Bancshares, Inc. acquisition including adjustments to loan discount, deferred taxes and REO valuations |
GOODWILL, OTHER INTANGIBLE AS_5
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Estimated Annual Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||
Year Ended December 31, 2017 | $ 7,957 | |||
Year Ended December 31, 2018 | 6,888 | |||
Year Ended December 31, 2019 | 5,816 | |||
Year Ended December 31, 2020 | 4,651 | |||
Thereafter | 7,387 | |||
Net carrying amount | 32,699 | |||
Core Deposit Intangibles [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Net carrying amount | $ 32,699 | $ 22,378 | $ 29,701 | $ 36,762 |
GOODWILL, OTHER INTANGIBLE AS_6
GOODWILL, OTHER INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Servicing Asset at Amortized Value, Balance [Roll Forward] | |||||||
Servicing Asset at Amortized Cost, Additions | $ 166 | $ 94 | $ 0 | ||||
Serviced Loans | |||||||
Servicing Assets at Amortized Value [Line Items] | |||||||
Loans serviced for others | 2,360,000 | 2,190,000 | |||||
Mortgage Servicing Rights | |||||||
Servicing Assets at Amortized Value [Line Items] | |||||||
Custodial accounts | 11,100 | 10,200 | |||||
Servicing Asset at Amortized Value, Balance [Roll Forward] | |||||||
Balance, beginning of the year | 14,738 | [1] | 15,249 | [1] | 13,295 | ||
Amounts capitalized | 3,623 | 3,361 | 5,965 | ||||
Amortization | (3,889) | (3,966) | (4,011) | [2] | |||
Valuation adjustments in the period | 0 | ||||||
Balance, end of the year | [1] | 14,638 | 14,738 | 15,249 | |||
Valuation Allowance | $ 0 | $ 0 | $ 0 | ||||
[1] | (2) There was no valuation allowance as of December 31, 2018 and 2017. | ||||||
[2] | Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income and any unamortized balance is fully written off if the loan repays in full. |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities, Fair Value | $ 25,896,000 | $ 22,318,000 |
Securities—available-for-sale | 1,636,223,000 | 919,485,000 |
Debt Securities, Held-to-maturity, Fair Value | 232,537,000 | 262,188,000 |
Loans receivable held for sale | 164,800,000 | 32,400,000 |
Advances from FHLB | 540,189,000 | 202,000 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 272,196,000 | 261,200,000 |
Trading Securities, Fair Value | 25,896,000 | 22,318,000 |
Securities—available-for-sale | 1,636,223,000 | 919,485,000 |
Loans receivable held for sale | 171,031,000 | 40,725,000 |
Loans receivable | 8,684,595,000 | 7,598,884,000 |
FHLB stock | 31,955,000 | 10,334,000 |
Bank-owned life insurance | 177,467,000 | 162,668,000 |
MSRs | 14,638,000 | 14,738,000 |
Equity Securities, FV-NI | 352,000 | 0 |
Deposits, Demand NOW and Money Market Accounts, Fair Value Disclosure | 6,314,202,000 | 5,658,994,000 |
Deposits, Savings, Fair Value Disclosure | 1,842,581,000 | 1,557,500,000 |
Deposits, Certificates of Deposit, Fair Value Disclosure | 1,320,265,000 | 966,937,000 |
Advances from FHLB | 540,189,000 | 202,000 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 114,091,000 | 98,707,000 |
Other borrowings | 118,995,000 | 95,860,000 |
Reported Value Measurement [Member] | Interest Rate Forward Sales Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 471,000 | 523,000 |
Derivative liabilities | 1,654,000 | 201,000 |
Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3,138,000 | 5,083,000 |
Derivative liabilities | 3,138,000 | 5,083,000 |
Reported Value Measurement [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Held-to-maturity, Fair Value | 230,984,000 | 256,793,000 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Held-to-maturity, Fair Value | 3,236,000 | 3,478,000 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 272,196,000 | 261,200,000 |
Trading Securities, Fair Value | 25,896,000 | 22,318,000 |
Securities—available-for-sale | 1,636,223,000 | 919,485,000 |
Loans receivable held for sale | 171,157,000 | 40,923,000 |
Loans receivable | 8,629,450,000 | 7,445,990,000 |
FHLB stock | 31,955,000 | 10,334,000 |
Bank-owned life insurance | 177,467,000 | 162,668,000 |
MSRs | 25,813,000 | 19,835,000 |
Equity Securities, FV-NI | 352,000 | 0 |
Deposits, Demand NOW and Money Market Accounts, Fair Value Disclosure | 6,314,202,000 | 5,658,994,000 |
Deposits, Savings, Fair Value Disclosure | 1,842,581,000 | 1,557,500,000 |
Deposits, Certificates of Deposit, Fair Value Disclosure | 1,298,238,000 | 947,517,000 |
Advances from FHLB | 540,189,000 | 202,000 |
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | 114,091,000 | 98,707,000 |
Other borrowings | 118,995,000 | 95,860,000 |
Estimate of Fair Value Measurement [Member] | Interest Rate Forward Sales Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 471,000 | 523,000 |
Derivative liabilities | 1,654,000 | 201,000 |
Estimate of Fair Value Measurement [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3,138,000 | 5,083,000 |
Derivative liabilities | 3,138,000 | 5,083,000 |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Held-to-maturity, Fair Value | 229,301,000 | 258,710,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Held-to-maturity, Fair Value | $ 3,236,000 | $ 3,478,000 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value By Balance Sheet Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Trading Securities, Fair Value | $ 25,896 | $ 22,318 |
Securities—available-for-sale | 1,636,223 | 919,485 |
Loans Held-for-sale, Fair Value | 164,800 | 32,400 |
Liabilities: | ||
Advances from FHLB | 540,189 | 202 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 25,896 | 22,318 |
Securities—available-for-sale | 1,636,223 | 919,485 |
Assets, Fair Value Disclosure | 1,830,847 | 979,801 |
Liabilities: | ||
Junior subordinated debentures at fair value | 114,091 | 98,707 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 118,883 | 103,991 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | ||
Assets: | ||
Derivatives | 471 | 5,083 |
Liabilities: | ||
Derivatives | 1,654 | 5,083 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Derivatives | 3,138 | 523 |
Liabilities: | ||
Derivatives | 3,138 | 201 |
Fair Value, Measurements, Recurring [Member] | U.S. Government and agency obligations | ||
Assets: | ||
Securities—available-for-sale | 149,112 | 72,466 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds | ||
Assets: | ||
Trading Securities, Fair Value | 100 | |
Securities—available-for-sale | 117,822 | 68,733 |
Fair Value, Measurements, Recurring [Member] | Corporate bonds | ||
Assets: | ||
Securities—available-for-sale | 3,495 | 5,393 |
Fair Value, Measurements, Recurring [Member] | TPS and TRUP CDOs [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 25,896 | 22,058 |
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities, Other [Member] | ||
Assets: | ||
Securities—available-for-sale | 1,343,861 | 739,557 |
Fair Value, Measurements, Recurring [Member] | Equity securities | ||
Assets: | ||
Trading Securities, Fair Value | 160 | |
Securities—available-for-sale | 5,578 | |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities | ||
Assets: | ||
Securities—available-for-sale | 21,933 | 27,758 |
Fair Value, Measurements, Recurring [Member] | Loans [Member] | ||
Assets: | ||
Loans Held-for-sale, Fair Value | 164,767 | 32,392 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities: | ||
Junior subordinated debentures at fair value | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Interest Rate Contract [Member] | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Government and agency obligations | ||
Assets: | ||
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal bonds | ||
Assets: | ||
Trading Securities, Fair Value | 0 | |
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate bonds | ||
Assets: | ||
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | TPS and TRUP CDOs [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Mortgage Backed Securities, Other [Member] | ||
Assets: | ||
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Equity securities | ||
Assets: | ||
Trading Securities, Fair Value | 0 | |
Securities—available-for-sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Asset-backed securities | ||
Assets: | ||
Securities—available-for-sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Loans [Member] | ||
Assets: | ||
Loans Held-for-sale, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 0 | 260 |
Securities—available-for-sale | 1,636,223 | 919,485 |
Assets, Fair Value Disclosure | 1,804,951 | 957,743 |
Liabilities: | ||
Junior subordinated debentures at fair value | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 4,792 | 5,284 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Contract [Member] | ||
Assets: | ||
Derivatives | 471 | 5,083 |
Liabilities: | ||
Derivatives | 1,654 | 5,083 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Derivatives | 3,138 | 523 |
Liabilities: | ||
Derivatives | 3,138 | 201 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Government and agency obligations | ||
Assets: | ||
Securities—available-for-sale | 149,112 | 72,466 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal bonds | ||
Assets: | ||
Trading Securities, Fair Value | 100 | |
Securities—available-for-sale | 117,822 | 68,733 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate bonds | ||
Assets: | ||
Securities—available-for-sale | 3,495 | 5,393 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | TPS and TRUP CDOs [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Mortgage Backed Securities, Other [Member] | ||
Assets: | ||
Securities—available-for-sale | 1,343,861 | 739,557 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity securities | ||
Assets: | ||
Trading Securities, Fair Value | 160 | |
Securities—available-for-sale | 5,578 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Asset-backed securities | ||
Assets: | ||
Securities—available-for-sale | 21,933 | 27,758 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Loans [Member] | ||
Assets: | ||
Loans Held-for-sale, Fair Value | 164,767 | 32,392 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 25,896 | 22,058 |
Securities—available-for-sale | 0 | 0 |
Assets, Fair Value Disclosure | 25,896 | 22,058 |
Liabilities: | ||
Junior subordinated debentures at fair value | 114,091 | 98,707 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 114,091 | 98,707 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Interest Rate Contract [Member] | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. Government and agency obligations | ||
Assets: | ||
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal bonds | ||
Assets: | ||
Trading Securities, Fair Value | 0 | |
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate bonds | ||
Assets: | ||
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | TPS and TRUP CDOs [Member] | ||
Assets: | ||
Trading Securities, Fair Value | 25,896 | 22,058 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Mortgage Backed Securities, Other [Member] | ||
Assets: | ||
Securities—available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Equity securities | ||
Assets: | ||
Trading Securities, Fair Value | 0 | |
Securities—available-for-sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Asset-backed securities | ||
Assets: | ||
Securities—available-for-sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Loans [Member] | ||
Assets: | ||
Loans Held-for-sale, Fair Value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Asset Inputs) (Details) - Weighted Average [Member] - Level 3 [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
TPS Securities [Member] | Valuation, Income Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Input, Discount Rate | 6.81% | 6.69% |
Impaired Loans [Member] | discount to appraised value [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
fair value inputs, discount to appraised value | 0.0% to 8.5% | 8.5% to 20.0% |
Real Estate Owned [Member] | discount to appraised value [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
fair value inputs, discount to appraised value | .692 | 0.42 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Unobservable Inputs Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Borrowings - Junior Subordinated Debentures [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 98,707 | $ 95,200 |
Liabilities (gains) losses | 15,384 | 3,507 |
Ending balance | 114,091 | 98,707 |
TPS and TRUP CDOs [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 22,058 | 21,143 |
Assets gains (losses) | 3,838 | 915 |
Ending balance | $ 25,896 | $ 22,058 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 2,915 | $ 6,535 | |
REO | 2,611 | 360 | |
Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
REO | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
REO | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (1,297) | (3,108) | $ (1,058) |
Impaired loans | 2,915 | 6,535 | |
REO | 2,611 | 360 | |
Securities (Assets) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 352 | ||
Securities (Assets) [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 0 | ||
Securities (Assets) [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 352 | ||
Securities (Assets) [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 0 | ||
Impaired Loans [Member] | Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (910) | (2,852) | (182) |
Real Estate [Member] | Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | $ (387) | $ (256) | $ (876) |
BANNER CORPORATION (PARENT CO_3
BANNER CORPORATION (PARENT COMPANY ONLY) (Statements of Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Other assets | $ 74,108 | $ 53,177 | ||
Total assets | 11,871,317 | 9,763,209 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Junior subordinated debentures at fair value | 114,091 | 98,707 | ||
Shareholders’ equity | 1,478,595 | 1,272,626 | $ 1,305,710 | $ 1,300,059 |
Total liabilities and stockholders' equity | 11,871,317 | 9,763,209 | ||
Banner Corporation | ||||
ASSETS | ||||
Cash | 38,029 | 44,887 | ||
Investment in trust equities | 4,212 | 4,212 | ||
Investment in subsidiaries | 1,540,251 | 1,329,165 | ||
Other assets | 25,267 | 3,072 | ||
Total assets | 1,607,759 | 1,381,336 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Miscellaneous liabilities | 15,073 | 9,607 | ||
Deferred tax liability | 0 | 396 | ||
Junior subordinated debentures at fair value | 114,091 | 98,707 | ||
Shareholders’ equity | 1,478,595 | 1,272,626 | ||
Total liabilities and stockholders' equity | $ 1,607,759 | $ 1,381,336 |
BANNER CORPORATION (PARENT CO_4
BANNER CORPORATION (PARENT COMPANY ONLY) (Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST INCOME: | |||||||||||||||
Interest-bearing deposits | $ 117,459 | $ 109,078 | $ 105,063 | $ 99,373 | $ 98,264 | $ 100,210 | $ 99,706 | $ 94,854 | $ 97,171 | $ 93,708 | $ 93,148 | $ 91,043 | $ 430,973 | $ 393,034 | $ 375,069 |
OTHER INCOME (EXPENSE): | |||||||||||||||
Other income | 7,148 | 8,985 | 6,001 | ||||||||||||
Other expenses | (26,754) | (27,142) | (30,131) | ||||||||||||
Income before provision for income taxes | 40,581 | 45,857 | 41,643 | 37,029 | 41,438 | 35,960 | 38,245 | 35,621 | 34,747 | 36,128 | 31,798 | 26,968 | 165,110 | 151,264 | 129,640 |
PROVISION FOR INCOME TAXES | 3,053 | 8,084 | 9,219 | 8,239 | 54,986 | 10,883 | 12,791 | 11,828 | 11,943 | 12,277 | 10,841 | 9,194 | 28,595 | 90,488 | 44,255 |
NET INCOME | $ 37,528 | $ 37,773 | $ 32,424 | $ 28,790 | $ (13,548) | $ 25,077 | $ 25,454 | $ 23,793 | $ 22,804 | $ 23,851 | $ 20,957 | $ 17,774 | 136,515 | 60,776 | 85,385 |
Banner Corporation | |||||||||||||||
INTEREST INCOME: | |||||||||||||||
Interest-bearing deposits | 49 | 62 | 127 | ||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Dividend income from subsidiaries | 72,604 | 40,570 | 50,971 | ||||||||||||
Equity in undistributed income of subsidiaries | 72,419 | 27,477 | 40,852 | ||||||||||||
Other income | 56 | 53 | 60 | ||||||||||||
Net change in valuation of financial instruments carried at fair value | 0 | (3,507) | (2,720) | ||||||||||||
Interest on other borrowings | (6,136) | (4,752) | (4,040) | ||||||||||||
Other expenses | (4,761) | (3,291) | (3,450) | ||||||||||||
Income before provision for income taxes | 134,231 | 56,612 | 81,800 | ||||||||||||
PROVISION FOR INCOME TAXES | (2,284) | (4,164) | (3,585) | ||||||||||||
NET INCOME | $ 136,515 | $ 60,776 | $ 85,385 |
BANNER CORPORATION (PARENT CO_5
BANNER CORPORATION (PARENT COMPANY ONLY) (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES: | |||||||||||||||
Net income | $ 37,528 | $ 37,773 | $ 32,424 | $ 28,790 | $ (13,548) | $ 25,077 | $ 25,454 | $ 23,793 | $ 22,804 | $ 23,851 | $ 20,957 | $ 17,774 | $ 136,515 | $ 60,776 | $ 85,385 |
Adjustments to reconcile net income to net cash provided from (used by) operating activities: | |||||||||||||||
Decrease (increase) in deferred taxes | (3,498) | 56,267 | 7,883 | ||||||||||||
Net change in valuation of financial instruments carried at fair value | (3,775) | 2,844 | 2,620 | ||||||||||||
Equity-based compensation | 6,554 | 5,965 | 4,305 | ||||||||||||
(Increase) decrease in other assets | (15,861) | 2,546 | 3,759 | ||||||||||||
Increase (decrease) in other liabilities | 17,322 | (179) | (6,664) | ||||||||||||
Net cash provided from (used by) operating activities | 30,775 | 346,702 | (75,818) | ||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||
Net cash (used by) provided from investing activities | (976,218) | (393,287) | 146,447 | ||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (1,554) | (1,630) | (870) | ||||||||||||
Payments for Repurchase of Common Stock | 34,401 | 31,045 | 50,772 | ||||||||||||
Cash dividends paid | (59,280) | (65,759) | (28,282) | ||||||||||||
Net cash provided from (used by) financing activities | 956,439 | 60,066 | (84,827) | ||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 10,996 | 13,481 | (14,198) | ||||||||||||
CASH AND DUE FROM BANKS, BEGINNING OF YEAR | 199,624 | 199,624 | |||||||||||||
CASH AND DUE FROM BANKS, END OF YEAR | 231,029 | 199,624 | 231,029 | 199,624 | |||||||||||
Banner Corporation | |||||||||||||||
OPERATING ACTIVITIES: | |||||||||||||||
Net income | 136,515 | 60,776 | 85,385 | ||||||||||||
Adjustments to reconcile net income to net cash provided from (used by) operating activities: | |||||||||||||||
Equity in undistributed income of subsidiaries | (72,419) | (27,477) | (40,852) | ||||||||||||
Decrease (increase) in deferred taxes | 150 | (1,442) | (702) | ||||||||||||
Net change in valuation of financial instruments carried at fair value | 0 | 3,507 | 2,720 | ||||||||||||
Equity-based compensation | 6,554 | 5,965 | 4,305 | ||||||||||||
(Increase) decrease in other assets | (19,268) | 10,684 | 7,332 | ||||||||||||
Increase (decrease) in other liabilities | 201 | 69 | (202) | ||||||||||||
Net cash provided from (used by) operating activities | 51,733 | 52,082 | 57,986 | ||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||
Funds transferred to deferred compensation trust | (27) | (29) | (26) | ||||||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | 37,000 | 5,000 | 50,000 | ||||||||||||
Acquisitions | 329 | 0 | 0 | ||||||||||||
Net cash (used by) provided from investing activities | 36,644 | 4,971 | 49,974 | ||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (1,554) | (1,630) | (870) | ||||||||||||
Payments for Repurchase of Common Stock | 34,401 | 31,045 | 50,772 | ||||||||||||
Cash dividends paid | (59,280) | (65,759) | (28,282) | ||||||||||||
Net cash provided from (used by) financing activities | (95,235) | (98,434) | (79,924) | ||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (6,858) | (41,381) | 28,036 | ||||||||||||
CASH AND DUE FROM BANKS, BEGINNING OF YEAR | $ 44,887 | $ 86,268 | $ 58,232 | 44,887 | 86,268 | 58,232 | |||||||||
CASH AND DUE FROM BANKS, END OF YEAR | $ 38,029 | $ 44,887 | $ 86,268 | $ 38,029 | $ 44,887 | $ 86,268 |
STOCK REPURCHASES (Details)
STOCK REPURCHASES (Details) - Common Stock [Member] - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock repurchases | ||
Stock surrendered during period, shares | 27,653 | 29,579 |
Banner Corporation 2017 Share Repurchase Authorization [Member] | ||
Stock repurchases | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,658,245 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Percent of Total Outstanding | 5.00% | |
Stock Repurchased During Period, Shares | 545,166 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,113,079 | |
Banner Corporation 2018 Share Repurchase Authorization [Member] | ||
Stock repurchases | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,621,549 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Percent of Total Outstanding | 5.00% | |
Stock Repurchased During Period, Shares | 594,711 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,296,549 | |
Banner Corporation 2018 Share Repurchases, 2017 Authorization [Member] | ||
Stock repurchases | ||
Stock Repurchased During Period, Shares | 269,711 | |
Banner Corporation 2018 Share Repurchases, 2018 Authorization [Member] | ||
Stock repurchases | ||
Stock Repurchased During Period, Shares | 325,000 |
CALCULATION OF EARNINGS PER C_3
CALCULATION OF EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 136,515 | $ 60,776 | $ 85,385 | ||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||
Basic weighted average shares outstanding (in shares) | 32,784,724 | 32,888,007 | 33,820,148 | ||||||||||||
Diluted weighted shares outstanding (in shares) | 32,894,425 | 32,986,707 | 33,853,511 | ||||||||||||
Earnings per common share | |||||||||||||||
Basic (in dollars per share) | $ 1.10 | $ 1.17 | $ 1.01 | $ 0.89 | $ (0.41) | $ 0.76 | $ 0.77 | $ 0.72 | $ 0.69 | $ 0.70 | $ 0.62 | $ 0.52 | $ 4.16 | $ 1.85 | $ 2.52 |
Diluted (in dollars per share) | $ 1.09 | $ 1.17 | $ 1 | $ 0.89 | $ (0.41) | $ 0.76 | $ 0.77 | $ 0.72 | $ 0.69 | $ 0.70 | $ 0.61 | $ 0.52 | $ 4.15 | $ 1.84 | $ 2.52 |
CALCULATION OF EARNINGS PER C_4
CALCULATION OF EARNINGS PER COMMON SHARE (Textuals) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Unvested restricted stock shares included in computation of diluted earnings per share | 315,301 | 302,077 | 290,719 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 5,000 | ||
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 243,998 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Interest income | $ 128,741 | $ 117,648 | $ 112,423 | $ 104,820 | $ 103,475 | $ 105,278 | $ 104,436 | $ 99,096 | $ 101,007 | $ 97,849 | $ 97,321 | $ 95,301 | $ 463,632 | $ 412,284 | $ 391,477 |
Interest expense | 11,282 | 8,570 | 7,360 | 5,447 | 5,211 | 5,068 | 4,730 | 4,242 | 3,836 | 4,141 | 4,173 | 4,258 | 32,659 | 19,250 | 16,408 |
Interest-bearing deposits | 117,459 | 109,078 | 105,063 | 99,373 | 98,264 | 100,210 | 99,706 | 94,854 | 97,171 | 93,708 | 93,148 | 91,043 | 430,973 | 393,034 | 375,069 |
Provision for loan losses | 2,500 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,030 | 2,000 | 2,000 | 0 | 8,500 | 8,000 | 6,030 |
Net interest income | 114,959 | 107,078 | 103,063 | 97,373 | 96,264 | 98,210 | 97,706 | 92,854 | 95,141 | 91,708 | 91,148 | 91,043 | 422,473 | 385,034 | 369,039 |
Non-interest income | 21,018 | 20,411 | 21,217 | 21,362 | 27,675 | 18,081 | 20,396 | 19,048 | 19,463 | 23,512 | 20,537 | 19,959 | 84,008 | 85,200 | 76,225 |
Other operating expenses | 95,396 | 81,632 | 82,637 | 81,706 | 82,501 | 80,331 | 79,857 | 76,281 | 79,857 | 79,092 | 79,887 | 84,034 | 341,371 | 318,970 | 315,624 |
Income before provision for income taxes | 40,581 | 45,857 | 41,643 | 37,029 | 41,438 | 35,960 | 38,245 | 35,621 | 34,747 | 36,128 | 31,798 | 26,968 | 165,110 | 151,264 | 129,640 |
PROVISION FOR INCOME TAXES | 3,053 | 8,084 | 9,219 | 8,239 | 54,986 | 10,883 | 12,791 | 11,828 | 11,943 | 12,277 | 10,841 | 9,194 | 28,595 | 90,488 | 44,255 |
NET INCOME | $ 37,528 | $ 37,773 | $ 32,424 | $ 28,790 | $ (13,548) | $ 25,077 | $ 25,454 | $ 23,793 | $ 22,804 | $ 23,851 | $ 20,957 | $ 17,774 | $ 136,515 | $ 60,776 | $ 85,385 |
Basic earnings (loss) per share (in dollars per share) | $ 1.10 | $ 1.17 | $ 1.01 | $ 0.89 | $ (0.41) | $ 0.76 | $ 0.77 | $ 0.72 | $ 0.69 | $ 0.70 | $ 0.62 | $ 0.52 | $ 4.16 | $ 1.85 | $ 2.52 |
Diluted earnings (loss) per share (in dollars per share) | 1.09 | 1.17 | 1 | 0.89 | (0.41) | 0.76 | 0.77 | 0.72 | 0.69 | 0.70 | 0.61 | 0.52 | 4.15 | 1.84 | 2.52 |
Cumulative dividends declared per common share (in dollars per share) | $ 0.38 | $ 0.38 | $ 0.85 | $ 0.35 | $ 0.25 | $ 0.25 | $ 1.25 | $ 0.25 | $ 0.23 | $ 0.23 | $ 0.21 | $ 0.21 | $ 1.96 | $ 2 | $ 0.88 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Operating Leases, Number of Properties Subject to Non-cancelable Operating Leases | 113 | |
Reserve for Unfunded Loan Commitments | $ 2,600 | $ 2,400 |
Mortgage loan applications, day Interest rate is locked | 45 days | |
Minimum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Mortgage loan applications, day Interest rate is locked | 30 days | |
Maximum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Mortgage loan applications, day Interest rate is locked | 60 days | |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | $ 2,837,981 | 2,300,593 |
Standby letters of credit and financial guarantees | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 17,784 | 14,579 |
Commitments to originate loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 32,145 | 56,030 |
Risk Participation Agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 24,091 | 11,451 |
Commitments to originate loans held for sale | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 31,728 | 48,091 |
Commitments to sell loans secured by one- to four-family residential properties | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 18,328 | 22,097 |
Loss on Contract Termination for Default | 0 | |
Commitments to sell securities related to mortgage banking activities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | $ 144,250 | $ 57,000 |
DERIVATIVES AND HEDGING DERIV_3
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Derivatives Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 5,038 | $ 5,083 |
Derivative Liability, Fair Value, Gross Liability | 5,038 | 5,083 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 5,038 | 5,083 |
Derivative Liability, Fair Value, Gross Liability | 5,038 | 5,083 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 3,973 | 4,350 |
Derivative Liability, Notional Amount | 3,973 | 4,350 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 270 | 447 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 270 | $ 447 |
DERIVATIVES AND HEDGING DERIV_4
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Derivatives Not Designated as Hedging, by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 5,038 | $ 5,083 |
Derivative Liability, Fair Value, Gross Liability | 5,038 | 5,083 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 5,038 | 5,083 |
Derivative Liability, Fair Value, Gross Liability | 5,038 | 5,083 |
Interest Rate Swap [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 272,400 | |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 310,931 | 357,855 |
Derivative Liability, Notional Amount | 434,387 | 345,810 |
Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3,339 | 5,159 |
Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 4,522 | 4,837 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 272,374 | 285,047 |
Derivative Liability, Notional Amount | 272,374 | 285,047 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Loans Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 270 | 499 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,868 | 4,636 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 2,868 | 4,636 |
Not Designated as Hedging Instrument [Member] | Mortgage Loan Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 20,229 | 29,739 |
Derivative Liability, Notional Amount | 17,763 | 13,763 |
Not Designated as Hedging Instrument [Member] | Mortgage Loan Commitments [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 273 | 225 |
Not Designated as Hedging Instrument [Member] | Mortgage Loan Commitments [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 187 | 153 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 18,328 | 43,069 |
Derivative Liability, Notional Amount | 144,250 | 47,000 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 198 | 298 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 1,467 | $ 48 |
DERIVATIVES AND HEDGING DERIV_5
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Gain (Loss) On Derivatives Not Designated in Hedging Relationship) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (728) | $ (296) | $ (52) |
Mortgage Loan Commitments [Member] | Mortgage Banking Operations [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 47 | 195 | (348) |
Forward Sales Contracts [Member] | Mortgage Banking Operations [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (775) | $ (491) | $ 296 |
DERIVATIVES AND HEDGING DERIV_6
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 1.3 | $ 3.7 |
Collateral Already Posted, Aggregate Fair Value | $ 13.6 | $ 16.9 |
DERIVATIVES AND HEDGING DERIV_7
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Derivative Offsetting) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 5,038 | $ 5,083 |
Derivative Asset, Fair Value, Gross Liability | (1,900) | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 3,138 | 5,083 |
Derivative, Collateral, Obligation to Return Securities | 0 | (656) |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 3,138 | 4,427 |
Derivative Liability, Fair Value, Gross Liability | 5,038 | 5,083 |
Derivative Liability, Fair Value, Gross Asset | (1,900) | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 3,138 | 5,083 |
Derivative, Collateral, Right to Reclaim Securities | 0 | (656) |
Derivative, Collateral, Right to Reclaim Cash | (1,320) | (3,467) |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 1,818 | 960 |
Interest Rate Swap [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 5,038 | 5,083 |
Derivative Asset, Fair Value, Gross Liability | (1,900) | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 3,138 | 5,083 |
Derivative, Collateral, Obligation to Return Securities | 0 | (656) |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 3,138 | 4,427 |
Derivative Liability, Fair Value, Gross Liability | 5,038 | 5,083 |
Derivative Liability, Fair Value, Gross Asset | (1,900) | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 3,138 | 5,083 |
Derivative, Collateral, Right to Reclaim Securities | 0 | (656) |
Derivative, Collateral, Right to Reclaim Cash | (1,320) | (3,467) |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 1,818 | $ 960 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Debit And Credit Card Interchange Fees | $ 31,713 | $ 28,358 | $ 22,578 |
Debit and Credit Card Expense | (8,511) | (7,390) | (3,078) |
Merchant Services Expenses | (7,767) | (8,335) | (7,245) |
Other Service Charges | 4,324 | 3,935 | 3,741 |
Total Deposit Fees and Other Service Charges | 48,074 | 43,452 | 41,911 |
Deposit Account [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Mortgage banking operations | 18,089 | 16,725 | 16,863 |
Credit Card, Merchant Discount [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Mortgage banking operations | $ 10,226 | $ 10,159 | $ 9,052 |