☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2020
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ to ______________
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Washington
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91-1691604
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification Number)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $.01 per share
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BANR
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The NASDAQ Stock Market LLC
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PART I – FINANCIAL INFORMATION
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Item 1 – Financial Statements. The Unaudited Condensed Consolidated Financial Statements of Banner Corporation and Subsidiaries filed as a part of the report are as follows:
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Consolidated Statements of Financial Condition as of March 31, 2020 and December 31, 2019
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Consolidated Statements of Operations for the Three Months Ended March 31, 2020 and 2019
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Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2020 and 2019
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Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2020 and the Year Ended December 31, 2019
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Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019
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Selected Notes to the Consolidated Financial Statements
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Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations
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Executive Overview
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Comparison of Financial Condition at March 31, 2020 and December 31, 2019
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Comparison of Results of Operations for the Three Months Ended March 31, 2020 and 2019
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Asset Quality
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Liquidity and Capital Resources
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Capital Requirements
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Item 3 – Quantitative and Qualitative Disclosures About Market Risk
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Market Risk and Asset/Liability Management
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Sensitivity Analysis
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Item 4 – Controls and Procedures
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PART II – OTHER INFORMATION
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Item 1 – Legal Proceedings
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Item 1A – Risk Factors
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Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3 – Defaults upon Senior Securities
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Item 4 – Mine Safety Disclosures
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Item 5 – Other Information
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Item 6 – Exhibits
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SIGNATURES
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ASSETS
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March 31,
2020 |
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December 31,
2019 |
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||
Cash and due from banks
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$
|
211,013
|
|
|
$
|
234,359
|
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Interest bearing deposits
|
83,988
|
|
|
73,376
|
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||
Total cash and cash equivalents
|
295,001
|
|
|
307,735
|
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||
Securities—trading
|
21,040
|
|
|
25,636
|
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Securities—available-for-sale, amortized cost $1,544,513 and $1,529,946, respectively
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1,608,224
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1,551,557
|
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Securities—held-to-maturity, net of allowance for credit losses of $98 and none, respectively, fair value $449,237 and $237,805, respectively
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437,846
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236,094
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Total securities
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2,067,110
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1,813,287
|
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Federal Home Loan Bank (FHLB) stock
|
20,247
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28,342
|
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Loans held for sale (includes $169.2 million and $199.4 million, at fair value, respectively)
|
182,428
|
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210,447
|
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Loans receivable
|
9,285,744
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|
9,305,357
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Allowance for credit losses - loans
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(130,488
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)
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(100,559
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)
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Net loans receivable
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9,155,256
|
|
|
9,204,798
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Accrued interest receivable
|
40,732
|
|
|
37,962
|
|
||
Real estate owned (REO), held for sale, net
|
2,402
|
|
|
814
|
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||
Property and equipment, net
|
175,235
|
|
|
178,008
|
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Goodwill
|
373,121
|
|
|
373,121
|
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Other intangibles, net
|
27,157
|
|
|
29,158
|
|
||
Bank-owned life insurance (BOLI)
|
193,140
|
|
|
192,088
|
|
||
Deferred tax assets, net
|
46,582
|
|
|
59,639
|
|
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Other assets
|
202,539
|
|
|
168,632
|
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Total assets
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$
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12,780,950
|
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$
|
12,604,031
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LIABILITIES
|
|
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||||
Deposits:
|
|
|
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||||
Non-interest-bearing
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$
|
4,107,262
|
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$
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3,945,000
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Interest-bearing transaction and savings accounts
|
5,175,969
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4,983,238
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Interest-bearing certificates
|
1,166,306
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1,120,403
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Total deposits
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10,449,537
|
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10,048,641
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Advances from FHLB
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247,000
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450,000
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Other borrowings
|
128,764
|
|
|
118,474
|
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Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities)
|
99,795
|
|
|
119,304
|
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Accrued expenses and other liabilities
|
208,753
|
|
|
227,889
|
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Deferred compensation
|
45,401
|
|
|
45,689
|
|
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Total liabilities
|
11,179,250
|
|
|
11,009,997
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COMMITMENTS AND CONTINGENCIES (Note 13)
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SHAREHOLDERS’ EQUITY
|
|
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||||
Preferred stock - $0.01 par value per share, 500,000 shares authorized; no shares outstanding at March 31, 2020 and December 31, 2019
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—
|
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—
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Common stock and paid in capital - $0.01 par value per share, 50,000,000 shares authorized; 35,102,459 shares issued and outstanding at March 31, 2020; 35,712,384 shares issued and outstanding at December 31, 2019
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1,343,699
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1,373,198
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Common stock (non-voting) and paid in capital - $0.01 par value per share, 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2020; 39,192 shares issued and outstanding at December 31, 2019
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—
|
|
|
742
|
|
||
Retained earnings
|
177,922
|
|
|
186,838
|
|
||
Carrying value of shares held in trust for stock-based compensation plans
|
(7,650
|
)
|
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(7,507
|
)
|
||
Liability for common stock issued to stock related compensation plans
|
7,650
|
|
|
7,507
|
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Accumulated other comprehensive income
|
80,079
|
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|
33,256
|
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||
Total shareholders' equity
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1,601,700
|
|
|
1,594,034
|
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Total liabilities and shareholders' equity
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$
|
12,780,950
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|
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$
|
12,604,031
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Three Months Ended
March 31, |
||||||
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2020
|
|
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2019
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INTEREST INCOME:
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|
|
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||||
Loans receivable
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$
|
118,926
|
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$
|
115,455
|
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Mortgage-backed securities
|
9,137
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|
|
10,507
|
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||
Securities and cash equivalents
|
3,602
|
|
|
4,034
|
|
||
Total interest income
|
131,665
|
|
|
129,996
|
|
||
INTEREST EXPENSE:
|
|
|
|
||||
Deposits
|
8,750
|
|
|
8,643
|
|
||
FHLB advances
|
2,064
|
|
|
3,476
|
|
||
Other borrowings
|
116
|
|
|
60
|
|
||
Junior subordinated debentures
|
1,477
|
|
|
1,713
|
|
||
Total interest expense
|
12,407
|
|
|
13,892
|
|
||
Net interest income
|
119,258
|
|
|
116,104
|
|
||
PROVISION FOR CREDIT LOSSES
|
21,748
|
|
|
2,000
|
|
||
Net interest income after provision for credit losses
|
97,510
|
|
|
114,104
|
|
||
NON-INTEREST INCOME:
|
|
|
|
||||
Deposit fees and other service charges
|
9,803
|
|
|
12,618
|
|
||
Mortgage banking operations
|
10,191
|
|
|
3,415
|
|
||
Bank-owned life insurance (BOLI)
|
1,050
|
|
|
1,276
|
|
||
Miscellaneous
|
2,639
|
|
|
804
|
|
||
|
23,683
|
|
|
18,113
|
|
||
Net gain on sale of securities
|
78
|
|
|
1
|
|
||
Net change in valuation of financial instruments carried at fair value
|
(4,596
|
)
|
|
11
|
|
||
Total non-interest income
|
19,165
|
|
|
18,125
|
|
||
NON-INTEREST EXPENSE:
|
|
|
|
||||
Salary and employee benefits
|
59,908
|
|
|
54,640
|
|
||
Less capitalized loan origination costs
|
(5,806
|
)
|
|
(4,849
|
)
|
||
Occupancy and equipment
|
13,107
|
|
|
13,766
|
|
||
Information/computer data services
|
5,810
|
|
|
5,326
|
|
||
Payment and card processing expenses
|
4,240
|
|
|
3,984
|
|
||
Professional and legal expenses
|
1,919
|
|
|
2,434
|
|
||
Advertising and marketing
|
1,827
|
|
|
1,529
|
|
||
Deposit insurance expense
|
1,635
|
|
|
1,418
|
|
||
State/municipal business and use taxes
|
984
|
|
|
945
|
|
||
REO operations, net
|
100
|
|
|
(123
|
)
|
||
Amortization of core deposit intangibles
|
2,001
|
|
|
2,052
|
|
||
Provision for credit losses - unfunded loan commitments
|
1,722
|
|
|
—
|
|
||
Miscellaneous
|
6,357
|
|
|
6,744
|
|
||
|
93,804
|
|
|
87,866
|
|
||
COVID-19 expenses
|
239
|
|
|
—
|
|
||
Acquisition-related expenses
|
1,142
|
|
|
2,148
|
|
||
Total non-interest expense
|
95,185
|
|
|
90,014
|
|
||
Income before provision for income taxes
|
21,490
|
|
|
42,215
|
|
||
PROVISION FOR INCOME TAXES
|
4,608
|
|
|
8,869
|
|
||
NET INCOME
|
$
|
16,882
|
|
|
$
|
33,346
|
|
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.48
|
|
|
$
|
0.95
|
|
Diluted
|
$
|
0.47
|
|
|
$
|
0.95
|
|
Cumulative dividends declared per common share
|
$
|
0.41
|
|
|
$
|
0.41
|
|
Weighted average number of common shares outstanding:
|
|
|
|
||||
Basic
|
35,463,541
|
|
|
35,050,376
|
|
||
Diluted
|
35,640,463
|
|
|
35,172,056
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
|
2019
|
|
||
NET INCOME
|
$
|
16,882
|
|
|
$
|
33,346
|
|
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAXES:
|
|
|
|
||||
Unrealized holding gain on available-for-sale securities arising during the period
|
42,178
|
|
|
16,656
|
|
||
Reclassification for net gain on available-for-sale securities realized in earnings
|
(78
|
)
|
|
(1
|
)
|
||
Changes in fair value of junior subordinated debentures related to instrument specific credit risk
|
19,509
|
|
|
174
|
|
||
Income tax expense related to other comprehensive income
|
(14,786
|
)
|
|
(4,039
|
)
|
||
Other comprehensive income
|
46,823
|
|
|
12,790
|
|
||
COMPREHENSIVE INCOME
|
$
|
63,705
|
|
|
$
|
46,136
|
|
|
Common Stock
and Paid in Capital
|
|
Retained Earnings
|
|
Accumulated
Other Comprehensive Income
|
|
Stockholders’
Equity
|
|||||||||||
|
Shares
|
|
Amount
|
|
|
|
||||||||||||
Balance, January 1, 2019
|
35,182,772
|
|
|
$
|
1,337,436
|
|
|
$
|
134,055
|
|
|
$
|
7,104
|
|
|
$
|
1,478,595
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
|
|
|
|
33,346
|
|
|
|
|
33,346
|
|
|||||||
Other comprehensive income, net of income tax
|
|
|
|
|
|
|
12,790
|
|
|
12,790
|
|
|||||||
Accrual of dividends on common stock ($0.41/share)
|
|
|
|
|
(14,490
|
)
|
|
|
|
(14,490
|
)
|
|||||||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered
|
(30,026
|
)
|
|
950
|
|
|
|
|
|
|
950
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, March 31, 2019
|
35,152,746
|
|
|
$
|
1,338,386
|
|
|
$
|
152,911
|
|
|
$
|
19,894
|
|
|
$
|
1,511,191
|
|
Balance, April 1, 2019
|
35,152,746
|
|
|
$
|
1,338,386
|
|
|
$
|
152,911
|
|
|
$
|
19,894
|
|
|
$
|
1,511,191
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
|
|
|
|
39,700
|
|
|
|
|
39,700
|
|
|||||||
Other comprehensive income, net of income tax
|
|
|
|
|
|
|
16,016
|
|
|
16,016
|
|
|||||||
Accrual of dividends on common stock ($0.41/share)
|
|
|
|
|
(14,354
|
)
|
|
|
|
(14,354
|
)
|
|||||||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered
|
20,897
|
|
|
575
|
|
|
|
|
|
|
575
|
|
||||||
Repurchase of common stock
|
(600,000
|
)
|
|
(32,073
|
)
|
|
|
|
|
|
(32,073
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, June 30, 2019
|
34,573,643
|
|
|
$
|
1,306,888
|
|
|
$
|
178,257
|
|
|
$
|
35,910
|
|
|
$
|
1,521,055
|
|
|
Common Stock
and Paid in Capital
|
|
Retained Earnings
|
|
Accumulated
Other Comprehensive Income
|
|
Stockholders’
Equity
|
|||||||||||
|
Shares
|
|
Amounts
|
|
|
|
||||||||||||
Balance, July 1, 2019
|
34,573,643
|
|
|
$
|
1,306,888
|
|
|
$
|
178,257
|
|
|
$
|
35,910
|
|
|
$
|
1,521,055
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
|
|
|
|
39,577
|
|
|
|
|
39,577
|
|
|||||||
Other comprehensive income, net of income tax
|
|
|
|
|
|
|
4,610
|
|
|
4,610
|
|
|||||||
Accrual of dividends on common stock ($0.41/share)
|
|
|
|
|
(14,130
|
)
|
|
|
|
(14,130
|
)
|
|||||||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered
|
(286
|
)
|
|
1,672
|
|
|
|
|
|
|
1,672
|
|
||||||
Repurchase of common stock
|
(400,000
|
)
|
|
(21,849
|
)
|
|
|
|
|
|
(21,849
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, September 30, 2019
|
34,173,357
|
|
|
$
|
1,286,711
|
|
|
$
|
203,704
|
|
|
$
|
40,520
|
|
|
$
|
1,530,935
|
|
|
Common Stock
and Paid in Capital
|
|
Retained Earnings
|
|
Accumulated
Other Comprehensive Income
|
|
Stockholders’
Equity
|
|||||||||||
|
Shares
|
|
Amounts
|
|
|
|
||||||||||||
Balance, October 1, 2019
|
34,173,357
|
|
|
$
|
1,286,711
|
|
|
$
|
203,704
|
|
|
$
|
40,520
|
|
|
$
|
1,530,935
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
|
|
|
|
33,655
|
|
|
|
|
33,655
|
|
|||||||
Other comprehensive loss, net of income tax
|
|
|
|
|
|
|
(7,264
|
)
|
|
(7,264
|
)
|
|||||||
Accrual of dividends on common stock ($1.41/share)
|
|
|
|
|
(50,521
|
)
|
|
|
|
(50,521
|
)
|
|||||||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered
|
(132
|
)
|
|
2,029
|
|
|
|
|
|
|
2,029
|
|
||||||
Issuance of shares for acquisition
|
1,578,351
|
|
|
85,200
|
|
|
|
|
|
|
85,200
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, December 31, 2019
|
35,751,576
|
|
|
$
|
1,373,940
|
|
|
$
|
186,838
|
|
|
$
|
33,256
|
|
|
$
|
1,594,034
|
|
|
Common Stock
and Paid in Capital
|
|
Retained Earnings
|
|
Accumulated
Other Comprehensive Income |
|
Stockholders’
Equity
|
|||||||||||
|
Shares
|
|
Amount
|
|
|
|
||||||||||||
Balance, January 1, 2020
|
35,751,576
|
|
|
$
|
1,373,940
|
|
|
$
|
186,838
|
|
|
$
|
33,256
|
|
|
$
|
1,594,034
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
New credit standard (Topic 326) - impact in year of adoption
|
|
|
|
|
(11,215
|
)
|
|
|
|
(11,215
|
)
|
|||||||
Net income
|
|
|
|
|
16,882
|
|
|
|
|
16,882
|
|
|||||||
Other comprehensive income, net of income tax
|
|
|
|
|
|
|
46,823
|
|
|
46,823
|
|
|||||||
Accrual of dividends on common stock ($0.41/share)
|
|
|
|
|
(14,583
|
)
|
|
|
|
(14,583
|
)
|
|||||||
Amortization of stock-based compensation related to restricted stock grants, net of shares surrendered
|
(24,337
|
)
|
|
1,534
|
|
|
|
|
|
|
1,534
|
|
||||||
Repurchase of common stock
|
(624,780
|
)
|
|
(31,775
|
)
|
|
|
|
|
|
(31,775
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, March 31, 2020
|
35,102,459
|
|
|
$
|
1,343,699
|
|
|
$
|
177,922
|
|
|
$
|
80,079
|
|
|
$
|
1,601,700
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
|
2019
|
|
||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
16,882
|
|
|
$
|
33,346
|
|
Adjustments to reconcile net income to net cash provided from operating activities:
|
|
|
|
||||
Depreciation
|
4,614
|
|
|
4,481
|
|
||
Deferred income and expense, net of amortization
|
(1,129
|
)
|
|
(895
|
)
|
||
Amortization of core deposit intangibles
|
2,001
|
|
|
2,052
|
|
||
Gain on sale of securities
|
(78
|
)
|
|
(1
|
)
|
||
Net change in valuation of financial instruments carried at fair value
|
4,596
|
|
|
(11
|
)
|
||
Decrease in deferred taxes, net
|
16,507
|
|
|
5,379
|
|
||
Increase in current taxes payable
|
2,067
|
|
|
7,243
|
|
||
Stock-based compensation
|
1,872
|
|
|
1,219
|
|
||
Increase in cash surrender value of BOLI
|
(1,041
|
)
|
|
(1,267
|
)
|
||
Gain on sale of loans, including capitalized servicing rights
|
(8,363
|
)
|
|
(2,063
|
)
|
||
Loss on disposal of real estate held for sale and property and equipment
|
444
|
|
|
371
|
|
||
Provision for credit losses
|
21,748
|
|
|
2,000
|
|
||
Provision for credit losses - unfunded loan commitments
|
1,722
|
|
|
—
|
|
||
Origination of loans held for sale
|
(296,712
|
)
|
|
(134,747
|
)
|
||
Proceeds from sales of loans held for sale
|
333,094
|
|
|
261,978
|
|
||
Net change in:
|
|
|
|
||||
Other assets
|
(51,061
|
)
|
|
(1,472
|
)
|
||
Other liabilities
|
5,400
|
|
|
(12,847
|
)
|
||
Net cash provided from operating activities
|
52,563
|
|
|
164,766
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of securities—available-for-sale
|
(143,973
|
)
|
|
(5,140
|
)
|
||
Principal repayments and maturities of securities—available-for-sale
|
82,760
|
|
|
51,910
|
|
||
Proceeds from sales of securities—available-for-sale
|
44,509
|
|
|
516
|
|
||
Purchases of securities—held-to-maturity
|
(206,155
|
)
|
|
—
|
|
||
Principal repayments and maturities of securities—held-to-maturity
|
3,786
|
|
|
14,744
|
|
||
Loan originations, net of principal repayments
|
16,646
|
|
|
(8,988
|
)
|
||
Proceeds from sales of other loans
|
5,751
|
|
|
3,186
|
|
||
Purchases of property and equipment
|
(3,086
|
)
|
|
(3,947
|
)
|
||
Proceeds from sale of real estate held for sale and sale of other property, net
|
877
|
|
|
876
|
|
||
Proceeds from FHLB stock repurchase program
|
47,840
|
|
|
52,372
|
|
||
Purchase of FHLB stock
|
(39,745
|
)
|
|
(47,480
|
)
|
||
Other
|
(72
|
)
|
|
485
|
|
||
Net cash (used in) provided from investing activities
|
(190,862
|
)
|
|
58,534
|
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Increase (decrease) in deposits, net
|
400,895
|
|
|
(100,819
|
)
|
||
Proceeds from long term FHLB advances
|
—
|
|
|
300,000
|
|
||
Repayment of long term FHLB advances
|
—
|
|
|
(189
|
)
|
||
Repayment of overnight and short term FHLB advances, net
|
(203,000
|
)
|
|
(422,000
|
)
|
||
Increase in other borrowings, net
|
10,289
|
|
|
2,724
|
|
||
Cash dividends paid
|
(50,505
|
)
|
|
(13,405
|
)
|
||
Taxes paid related to net share settlement of equity awards
|
(339
|
)
|
|
(269
|
)
|
||
Cash paid for the repurchase of common stock
|
(31,775
|
)
|
|
—
|
|
||
Net cash provided from (used in) financing activities
|
125,565
|
|
|
(233,958
|
)
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(12,734
|
)
|
|
(10,658
|
)
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
307,735
|
|
|
272,196
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
295,001
|
|
|
$
|
261,538
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
|
2019
|
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
||||
Interest paid in cash
|
$
|
13,014
|
|
|
$
|
13,812
|
|
Tax refunds received
|
(29
|
)
|
|
(71
|
)
|
||
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
|
1,588
|
|
|
—
|
|
||
Dividends accrued but not paid until after period end
|
15,277
|
|
|
14,863
|
|
|
January 1, 2020 As Reported Under Topic 326
|
|
January 1, 2020 Pre-Topic 326 Adoption
|
|
Impact of Topic 326 Adoption
|
||||||
Assets
|
|
|
|
|
|
||||||
Held-to-maturity debt securities
|
|
|
|
|
|
||||||
U.S. Government and agency obligations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Municipal bonds
|
28
|
|
|
—
|
|
|
28
|
|
|||
Corporate bonds
|
35
|
|
|
—
|
|
|
35
|
|
|||
Mortgage-backed or related securities
|
—
|
|
|
—
|
|
|
—
|
|
|||
Allowance for credit losses on held-to-maturity debt securities
|
$
|
63
|
|
|
$
|
—
|
|
|
$
|
63
|
|
|
|
|
|
|
|
||||||
Loans
|
|
|
|
|
|
||||||
Commercial real estate
|
$
|
27,727
|
|
|
$
|
30,591
|
|
|
$
|
(2,864
|
)
|
Multifamily real estate
|
2,550
|
|
|
4,754
|
|
|
(2,204
|
)
|
|||
Construction and land
|
25,509
|
|
|
22,994
|
|
|
2,515
|
|
|||
Commercial business
|
26,380
|
|
|
23,370
|
|
|
3,010
|
|
|||
Agricultural business
|
3,769
|
|
|
4,120
|
|
|
(351
|
)
|
|||
One-to four-family residential
|
11,261
|
|
|
4,136
|
|
|
7,125
|
|
|||
Consumer
|
11,175
|
|
|
8,202
|
|
|
2,973
|
|
|||
Unallocated
|
—
|
|
|
2,392
|
|
|
(2,392
|
)
|
|||
Allowance for credit losses on loans
|
$
|
108,371
|
|
|
$
|
100,559
|
|
|
$
|
7,812
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
||||||
Allowance for credit losses on unfunded loan commitments
|
$
|
9,738
|
|
|
$
|
2,716
|
|
|
$
|
7,022
|
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
$
|
14,897
|
|
||||
|
|
|
|
|
|
|
AltaPacific
|
||||
|
November 1, 2019
|
||||
Consideration to AltaPacific equity holders:
|
|
|
|||
Cash paid
|
|
$
|
2,360
|
|
|
Fair value of common shares issued
|
|
85,200
|
|
||
Total consideration
|
|
87,560
|
|
||
|
|
|
|||
Fair value of assets acquired:
|
|
|
|||
Cash and cash equivalents
|
39,686
|
|
|
||
Securities
|
20,348
|
|
|
||
Federal Home Loan Bank stock
|
2,005
|
|
|
||
Loans receivable (contractual amount of $338.2 million)
|
332,355
|
|
|
||
Real estate owned held for sale
|
650
|
|
|
||
Property and equipment
|
3,809
|
|
|
||
Core deposit intangible
|
4,610
|
|
|
||
Bank-owned life insurance
|
11,890
|
|
|
||
Deferred tax asset
|
166
|
|
|
||
Other assets
|
10,150
|
|
|
||
Total assets acquired
|
425,669
|
|
|
||
|
|
|
|||
Fair value of liabilities assumed:
|
|
|
|||
Deposits
|
313,374
|
|
|
||
Advances from FHLB
|
40,226
|
|
|
||
Junior subordinated debentures
|
5,814
|
|
|
||
Deferred compensation
|
4,508
|
|
|
||
Other liabilities
|
8,154
|
|
|
||
Total liabilities assumed
|
372,076
|
|
|
||
|
|
|
|||
Net assets acquired
|
|
53,593
|
|
||
Goodwill
|
|
$
|
33,967
|
|
|
AltaPacific
|
||
|
November 1, 2019
|
||
Acquired PCI loans:
|
|
||
Contractually required principal and interest payments
|
$
|
5,881
|
|
Nonaccretable difference
|
(1,046
|
)
|
|
Cash flows expected to be collected
|
4,835
|
|
|
Accretable yield
|
(683
|
)
|
|
Fair value of PCI loans
|
$
|
4,152
|
|
|
March 31, 2020
|
||||||
|
Amortized Cost
|
|
Fair
Value
|
||||
Trading:
|
|
|
|
||||
Corporate bonds
|
$
|
27,203
|
|
|
$
|
21,040
|
|
|
$
|
27,203
|
|
|
$
|
21,040
|
|
|
March 31, 2020
|
||||||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Allowance for Credit Losses
|
|
Fair
Value
|
||||||||||
Available-for-Sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government and agency obligations
|
$
|
82,197
|
|
|
$
|
520
|
|
|
$
|
(954
|
)
|
|
$
|
—
|
|
|
$
|
81,763
|
|
Municipal bonds
|
171,486
|
|
|
9,726
|
|
|
(173
|
)
|
|
—
|
|
|
181,039
|
|
|||||
Corporate bonds
|
30,094
|
|
|
1,101
|
|
|
(209
|
)
|
|
—
|
|
|
30,986
|
|
|||||
Mortgage-backed or related securities
|
1,252,606
|
|
|
54,711
|
|
|
(518
|
)
|
|
—
|
|
|
1,306,799
|
|
|||||
Asset-backed securities
|
8,130
|
|
|
—
|
|
|
(493
|
)
|
|
—
|
|
|
7,637
|
|
|||||
|
$
|
1,544,513
|
|
|
$
|
66,058
|
|
|
$
|
(2,347
|
)
|
|
$
|
—
|
|
|
$
|
1,608,224
|
|
|
March 31, 2020
|
||||||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
|
Allowance for Credit Losses
|
||||||||||
Held-to-Maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government and agency obligations
|
$
|
373
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
381
|
|
|
$
|
—
|
|
Municipal bonds
|
380,483
|
|
|
10,830
|
|
|
(2,292
|
)
|
|
389,021
|
|
|
61
|
|
|||||
Corporate bonds
|
3,325
|
|
|
—
|
|
|
(10
|
)
|
|
3,315
|
|
|
37
|
|
|||||
Mortgage-backed or related securities
|
53,763
|
|
|
2,769
|
|
|
(12
|
)
|
|
56,520
|
|
|
—
|
|
|||||
|
$
|
437,944
|
|
|
$
|
13,607
|
|
|
$
|
(2,314
|
)
|
|
$
|
449,237
|
|
|
$
|
98
|
|
|
December 31, 2019
|
||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
||||||||
Trading:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
27,203
|
|
|
|
|
|
|
$
|
25,636
|
|
||||
|
$
|
27,203
|
|
|
|
|
|
|
$
|
25,636
|
|
||||
Available-for-Sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency obligations
|
$
|
90,468
|
|
|
$
|
286
|
|
|
$
|
(1,156
|
)
|
|
$
|
89,598
|
|
Municipal bonds
|
101,927
|
|
|
5,233
|
|
|
(3
|
)
|
|
107,157
|
|
||||
Corporate bonds
|
4,357
|
|
|
14
|
|
|
(6
|
)
|
|
4,365
|
|
||||
Mortgage-backed or related securities
|
1,324,999
|
|
|
20,325
|
|
|
(3,013
|
)
|
|
1,342,311
|
|
||||
Asset-backed securities
|
8,195
|
|
|
—
|
|
|
(69
|
)
|
|
8,126
|
|
||||
|
$
|
1,529,946
|
|
|
$
|
25,858
|
|
|
$
|
(4,247
|
)
|
|
$
|
1,551,557
|
|
Held-to-Maturity:
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency obligations
|
$
|
385
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
389
|
|
Municipal bonds
|
177,208
|
|
|
3,733
|
|
|
(2,213
|
)
|
|
178,728
|
|
||||
Corporate bonds
|
3,353
|
|
|
—
|
|
|
(11
|
)
|
|
3,342
|
|
||||
Mortgage-backed or related securities
|
55,148
|
|
|
921
|
|
|
(723
|
)
|
|
55,346
|
|
||||
|
$
|
236,094
|
|
|
$
|
4,658
|
|
|
$
|
(2,947
|
)
|
|
$
|
237,805
|
|
|
March 31, 2020
|
||||||||||||||||||||||
|
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
|
$
|
2,575
|
|
|
$
|
(18
|
)
|
|
$
|
56,531
|
|
|
$
|
(936
|
)
|
|
$
|
59,106
|
|
|
$
|
(954
|
)
|
Municipal bonds
|
11,767
|
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
11,767
|
|
|
(173
|
)
|
||||||
Corporate bonds
|
4,148
|
|
|
(209
|
)
|
|
—
|
|
|
—
|
|
|
4,148
|
|
|
(209
|
)
|
||||||
Mortgage-backed or related securities
|
42,545
|
|
|
(487
|
)
|
|
7,218
|
|
|
(31
|
)
|
|
49,763
|
|
|
(518
|
)
|
||||||
Asset-backed securities
|
1,371
|
|
|
(53
|
)
|
|
5,871
|
|
|
(440
|
)
|
|
7,242
|
|
|
(493
|
)
|
||||||
|
$
|
62,406
|
|
|
$
|
(940
|
)
|
|
$
|
69,620
|
|
|
$
|
(1,407
|
)
|
|
$
|
132,026
|
|
|
$
|
(2,347
|
)
|
|
December 31, 2019
|
||||||||||||||||||||||
|
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
|
$
|
2,747
|
|
|
$
|
(20
|
)
|
|
$
|
60,979
|
|
|
$
|
(1,136
|
)
|
|
$
|
63,726
|
|
|
$
|
(1,156
|
)
|
Municipal bonds
|
1,902
|
|
|
—
|
|
|
494
|
|
|
(3
|
)
|
|
2,396
|
|
|
(3
|
)
|
||||||
Corporate bonds
|
594
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
594
|
|
|
(6
|
)
|
||||||
Mortgage-backed or related securities
|
300,852
|
|
|
(2,829
|
)
|
|
33,360
|
|
|
(184
|
)
|
|
334,212
|
|
|
(3,013
|
)
|
||||||
Asset-backed securities
|
1,204
|
|
|
(17
|
)
|
|
5,989
|
|
|
(52
|
)
|
|
7,193
|
|
|
(69
|
)
|
||||||
|
$
|
307,299
|
|
|
$
|
(2,872
|
)
|
|
$
|
100,822
|
|
|
$
|
(1,375
|
)
|
|
$
|
408,121
|
|
|
$
|
(4,247
|
)
|
Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government and agency obligations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Municipal bonds
|
44,605
|
|
|
(1,889
|
)
|
|
19,017
|
|
|
(324
|
)
|
|
63,622
|
|
|
(2,213
|
)
|
||||||
Corporate bonds
|
—
|
|
|
—
|
|
|
489
|
|
|
(11
|
)
|
|
489
|
|
|
(11
|
)
|
||||||
Mortgage-backed or related securities
|
11,117
|
|
|
(723
|
)
|
|
—
|
|
|
—
|
|
|
11,117
|
|
|
(723
|
)
|
||||||
|
$
|
55,722
|
|
|
$
|
(2,612
|
)
|
|
$
|
19,506
|
|
|
$
|
(335
|
)
|
|
$
|
75,228
|
|
|
$
|
(2,947
|
)
|
|
March 31, 2020
|
||||||||||||||||||||||
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,500
|
|
|
$
|
2,496
|
|
|
$
|
807
|
|
|
$
|
808
|
|
Maturing after one year through five years
|
—
|
|
|
—
|
|
|
66,644
|
|
|
68,453
|
|
|
59,949
|
|
|
61,827
|
|
||||||
Maturing after five years through ten years
|
—
|
|
|
—
|
|
|
352,386
|
|
|
370,139
|
|
|
44,006
|
|
|
46,085
|
|
||||||
Maturing after ten years through twenty years
|
27,203
|
|
|
21,040
|
|
|
265,561
|
|
|
277,549
|
|
|
124,627
|
|
|
126,785
|
|
||||||
Maturing after twenty years
|
—
|
|
|
—
|
|
|
857,422
|
|
|
889,587
|
|
|
208,555
|
|
|
213,732
|
|
||||||
|
$
|
27,203
|
|
|
$
|
21,040
|
|
|
$
|
1,544,513
|
|
|
$
|
1,608,224
|
|
|
$
|
437,944
|
|
|
$
|
449,237
|
|
|
March 31, 2020
|
||||||||||
|
Carrying Value
|
|
Amortized Cost
|
|
Fair
Value
|
||||||
Purpose or beneficiary:
|
|
|
|
|
|
||||||
State and local governments public deposits
|
$
|
155,588
|
|
|
$
|
154,453
|
|
|
$
|
160,654
|
|
Interest rate swap counterparties
|
28,049
|
|
|
26,923
|
|
|
28,432
|
|
|||
Repurchase agreements
|
153,285
|
|
|
147,608
|
|
|
153,286
|
|
|||
Other
|
2,665
|
|
|
2,665
|
|
|
2,733
|
|
|||
Total pledged securities
|
$
|
339,587
|
|
|
$
|
331,649
|
|
|
$
|
345,105
|
|
|
March 31, 2020
|
||||||||||||||||||
|
U.S. Government and agency obligations
|
|
Municipal bonds
|
|
Corporate bonds
|
|
Mortgage-backed or related securities
|
|
Total
|
||||||||||
AAA/AA/A
|
$
|
—
|
|
|
$
|
348,662
|
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
349,162
|
|
BBB/BB/B
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Not Rated
|
373
|
|
|
31,821
|
|
|
2,825
|
|
|
53,763
|
|
|
88,782
|
|
|||||
|
$
|
373
|
|
|
$
|
380,483
|
|
|
$
|
3,325
|
|
|
$
|
53,763
|
|
|
$
|
437,944
|
|
|
Three Months Ended
March 31, 2020 |
||||||||||||||||||
|
U.S. Government and agency obligations
|
|
Municipal bonds
|
|
Corporate bonds
|
|
Mortgage-backed or related securities
|
|
Total
|
||||||||||
Allowance for credit losses - securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning Balance
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Impact of adopting ASC 326
|
—
|
|
|
28
|
|
|
35
|
|
|
—
|
|
|
63
|
|
|||||
Provision for credit losses
|
—
|
|
|
33
|
|
|
2
|
|
|
—
|
|
|
35
|
|
|||||
Securities charged-off
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending Balance
|
$
|
—
|
|
|
$
|
61
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
98
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Owner-occupied
|
$
|
1,024,089
|
|
|
11.0
|
%
|
|
$
|
980,021
|
|
|
10.5
|
%
|
Investment properties
|
2,007,537
|
|
|
21.6
|
|
|
2,024,988
|
|
|
21.8
|
|
||
Small balance CRE
|
591,783
|
|
|
6.4
|
|
|
613,484
|
|
|
6.6
|
|
||
Multifamily real estate
|
400,206
|
|
|
4.3
|
|
|
388,388
|
|
|
4.2
|
|
||
Construction, land and land development:
|
|
|
|
|
|
|
|
||||||
Commercial construction
|
205,476
|
|
|
2.2
|
|
|
210,668
|
|
|
2.3
|
|
||
Multifamily construction
|
250,410
|
|
|
2.7
|
|
|
233,610
|
|
|
2.5
|
|
||
One- to four-family construction
|
534,956
|
|
|
5.8
|
|
|
544,308
|
|
|
5.8
|
|
||
Land and land development
|
232,506
|
|
|
2.5
|
|
|
245,530
|
|
|
2.6
|
|
||
Commercial business:
|
|
|
|
|
|
|
|
||||||
Commercial business
|
1,357,817
|
|
|
14.6
|
|
|
1,364,650
|
|
|
14.7
|
|
||
Small business scored
|
807,539
|
|
|
8.7
|
|
|
772,657
|
|
|
8.3
|
|
||
Agricultural business, including secured by farmland
|
330,257
|
|
|
3.6
|
|
|
337,271
|
|
|
3.6
|
|
||
One- to four-family residential
|
881,387
|
|
|
9.5
|
|
|
925,531
|
|
|
9.9
|
|
||
Consumer:
|
|
|
|
|
|
|
|
||||||
Consumer—home equity revolving lines of credit
|
521,618
|
|
|
5.6
|
|
|
519,336
|
|
|
5.6
|
|
||
Consumer—other
|
140,163
|
|
|
1.5
|
|
|
144,915
|
|
|
1.6
|
|
||
Total loans
|
9,285,744
|
|
|
100.0
|
%
|
|
9,305,357
|
|
|
100.0
|
%
|
||
Less allowance for credit losses - loans
|
(130,488
|
)
|
|
|
|
|
(100,559
|
)
|
|
|
|
||
Net loans
|
$
|
9,155,256
|
|
|
|
|
|
$
|
9,204,798
|
|
|
|
|
|
December 31, 2019
|
|||||
|
Amount
|
|
Percent of Total
|
|||
Commercial real estate:
|
|
|
|
|||
Owner-occupied
|
$
|
1,580,650
|
|
|
17.0
|
%
|
Investment properties
|
2,309,221
|
|
|
24.8
|
|
|
Multifamily real estate
|
473,152
|
|
|
5.1
|
|
|
Commercial construction
|
210,668
|
|
|
2.3
|
|
|
Multifamily construction
|
233,610
|
|
|
2.5
|
|
|
One- to four-family construction
|
544,308
|
|
|
5.8
|
|
|
Land and land development:
|
|
|
|
|||
Residential
|
154,688
|
|
|
1.7
|
|
|
Commercial
|
26,290
|
|
|
0.3
|
|
|
Commercial business
|
1,693,824
|
|
|
18.2
|
|
|
Agricultural business, including secured by farmland
|
370,549
|
|
|
4.0
|
|
|
One- to four-family residential
|
945,622
|
|
|
10.2
|
|
|
Consumer:
|
|
|
|
|||
Consumer secured by one- to four-family
|
550,960
|
|
|
5.8
|
|
|
Consumer—other
|
211,815
|
|
|
2.3
|
|
|
Total loans
|
9,305,357
|
|
|
100.0
|
%
|
|
Less allowance for loan losses
|
(100,559
|
)
|
|
|
||
Net loans
|
$
|
9,204,798
|
|
|
|
|
Three Months Ended
March 31, |
||
|
2019
|
||
Balance, beginning of period
|
$
|
5,216
|
|
Accretion to interest income
|
(493
|
)
|
|
Disposals
|
—
|
|
|
Reclassifications from non-accretable difference
|
55
|
|
|
Balance, end of period
|
$
|
4,778
|
|
|
December 31, 2019
|
||||||||||||||
|
Unpaid Principal Balance
|
|
Recorded Investment
|
|
Related Allowance
|
||||||||||
|
|
Without Allowance (1)
|
|
With Allowance (2)
|
|
||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Owner-occupied
|
$
|
4,185
|
|
|
$
|
3,816
|
|
|
$
|
194
|
|
|
$
|
18
|
|
Investment properties
|
3,536
|
|
|
1,883
|
|
|
690
|
|
|
40
|
|
||||
Multifamily real estate
|
82
|
|
|
85
|
|
|
—
|
|
|
—
|
|
||||
Multifamily construction
|
573
|
|
|
98
|
|
|
—
|
|
|
—
|
|
||||
One- to four-family construction
|
1,799
|
|
|
1,799
|
|
|
—
|
|
|
—
|
|
||||
Land and land development:
|
|
|
|
|
|
|
|
||||||||
Residential
|
676
|
|
|
340
|
|
|
—
|
|
|
—
|
|
||||
Commercial business
|
25,117
|
|
|
4,614
|
|
|
19,330
|
|
|
4,128
|
|
||||
Agricultural business/farmland
|
3,044
|
|
|
661
|
|
|
2,243
|
|
|
141
|
|
||||
One- to four-family residential
|
7,290
|
|
|
5,613
|
|
|
1,648
|
|
|
41
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
||||||||
Consumer secured by one- to four-family
|
3,081
|
|
|
2,712
|
|
|
127
|
|
|
5
|
|
||||
Consumer—other
|
222
|
|
|
159
|
|
|
52
|
|
|
1
|
|
||||
|
$
|
49,605
|
|
|
$
|
21,780
|
|
|
$
|
24,284
|
|
|
$
|
4,374
|
|
(1)
|
Includes loans without an allowance reserve that had been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $13.5 million of homogeneous and small balance loans, as of December 31, 2019, that were collectively evaluated for impairment for which a general reserve was established.
|
(2)
|
Loans with a specific allowance reserve were individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value.
|
|
|
Three Months Ended
March 31, 2019 |
||||||
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||
Commercial real estate:
|
|
|
|
|
||||
Owner-occupied
|
|
$
|
3,451
|
|
|
$
|
2
|
|
Investment properties
|
|
7,227
|
|
|
76
|
|
||
Commercial construction
|
|
1,427
|
|
|
—
|
|
||
One- to four-family construction
|
|
919
|
|
|
—
|
|
||
Land and land development:
|
|
|
|
|
||||
Residential
|
|
726
|
|
|
—
|
|
||
Commercial business
|
|
3,803
|
|
|
5
|
|
||
Agricultural business/farmland
|
|
5,117
|
|
|
27
|
|
||
One- to four-family residential
|
|
6,446
|
|
|
65
|
|
||
Consumer:
|
|
|
|
|
||||
Consumer secured by one- to four-family
|
|
2,063
|
|
|
5
|
|
||
Consumer—other
|
|
319
|
|
|
1
|
|
||
|
|
$
|
31,498
|
|
|
$
|
181
|
|
|
Three months ended March 31, 2020
|
|||||||||
|
Number of
Contracts
|
|
Pre-
modification Outstanding
Recorded
Investment
|
|
Post-
modification Outstanding
Recorded
Investment
|
|||||
Recorded Investment
|
|
|
|
|
|
|||||
Commercial business:
|
|
|
|
|
|
|||||
Commercial business
|
2
|
|
|
4,796
|
|
|
4,796
|
|
||
Total
|
2
|
|
|
$
|
4,796
|
|
|
$
|
4,796
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
|
Three months ended March 31, 2019
|
|||||||||
|
Number of
Contracts
|
|
Pre-
modification Outstanding
Recorded
Investment
|
|
Post-
modification Outstanding
Recorded
Investment
|
|||||
Recorded Investment
|
|
|
|
|
|
|
|
|
||
Commercial real estate
|
|
|
|
|
|
|
|
|
||
Investment properties
|
1
|
|
|
1,090
|
|
|
1,090
|
|
||
|
1
|
|
|
$
|
1,090
|
|
|
$
|
1,090
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
Term Loans by Year of Origination
|
|
Revolving Loans
|
|
Total Loans
|
||||||||||||||||||||||||||
By class:
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate - owner occupied
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
86,515
|
|
|
$
|
209,528
|
|
|
$
|
171,907
|
|
|
$
|
133,579
|
|
|
$
|
109,177
|
|
|
$
|
280,979
|
|
|
$
|
7,927
|
|
|
$
|
999,612
|
|
Special Mention
|
—
|
|
|
2,438
|
|
|
1,369
|
|
|
2,353
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|
6,263
|
|
||||||||
Substandard
|
—
|
|
|
500
|
|
|
—
|
|
|
5,805
|
|
|
1,295
|
|
|
10,614
|
|
|
—
|
|
|
18,214
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Commercial real estate - owner occupied
|
$
|
86,515
|
|
|
$
|
212,466
|
|
|
$
|
173,276
|
|
|
$
|
141,737
|
|
|
$
|
110,472
|
|
|
$
|
291,696
|
|
|
$
|
7,927
|
|
|
$
|
1,024,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate - investment properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
42,548
|
|
|
$
|
296,128
|
|
|
$
|
347,941
|
|
|
$
|
309,865
|
|
|
$
|
328,239
|
|
|
$
|
631,602
|
|
|
$
|
30,284
|
|
|
$
|
1,986,607
|
|
Special Mention
|
—
|
|
|
3,360
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
976
|
|
|
—
|
|
|
4,336
|
|
||||||||
Substandard
|
—
|
|
|
3,934
|
|
|
2,405
|
|
|
—
|
|
|
442
|
|
|
9,813
|
|
|
—
|
|
|
16,594
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Commercial real estate - investment properties
|
$
|
42,548
|
|
|
$
|
303,422
|
|
|
$
|
350,346
|
|
|
$
|
309,865
|
|
|
$
|
328,681
|
|
|
$
|
642,391
|
|
|
$
|
30,284
|
|
|
$
|
2,007,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Multifamily real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
21,907
|
|
|
$
|
72,099
|
|
|
$
|
45,457
|
|
|
$
|
102,668
|
|
|
$
|
47,554
|
|
|
$
|
108,743
|
|
|
$
|
1,778
|
|
|
$
|
400,206
|
|
Special Mention
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Substandard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Multifamily real estate
|
$
|
21,907
|
|
|
$
|
72,099
|
|
|
$
|
45,457
|
|
|
$
|
102,668
|
|
|
$
|
47,554
|
|
|
$
|
108,743
|
|
|
$
|
1,778
|
|
|
$
|
400,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
Term Loans by Year of Origination
|
|
Revolving Loans
|
|
Total Loans
|
||||||||||||||||||||||||||
By class:
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
17,290
|
|
|
$
|
101,679
|
|
|
$
|
55,535
|
|
|
$
|
9,326
|
|
|
$
|
2,231
|
|
|
$
|
1,599
|
|
|
$
|
—
|
|
|
$
|
187,660
|
|
Special Mention
|
—
|
|
|
—
|
|
|
6,197
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,197
|
|
||||||||
Substandard
|
—
|
|
|
11,521
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
—
|
|
|
11,619
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Commercial construction
|
$
|
17,290
|
|
|
$
|
113,200
|
|
|
$
|
61,732
|
|
|
$
|
9,326
|
|
|
$
|
2,329
|
|
|
$
|
1,599
|
|
|
$
|
—
|
|
|
$
|
205,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Multifamily construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
39,395
|
|
|
$
|
115,501
|
|
|
$
|
76,925
|
|
|
$
|
12,945
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,644
|
|
|
$
|
250,410
|
|
Special Mention
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Substandard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Multifamily construction
|
$
|
39,395
|
|
|
$
|
115,501
|
|
|
$
|
76,925
|
|
|
$
|
12,945
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,644
|
|
|
$
|
250,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
One- to four- family construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
143,457
|
|
|
$
|
357,179
|
|
|
$
|
11,536
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
5,058
|
|
|
$
|
517,237
|
|
Special Mention
|
2,254
|
|
|
13,540
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
630
|
|
|
16,424
|
|
||||||||
Substandard
|
—
|
|
|
1,295
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,295
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total One- to four- family construction
|
$
|
145,711
|
|
|
$
|
372,014
|
|
|
$
|
11,536
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
5,688
|
|
|
$
|
534,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
Term Loans by Year of Origination
|
|
Revolving Loans
|
|
Total Loans
|
||||||||||||||||||||||||||
By class:
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Land and land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
36,452
|
|
|
$
|
126,901
|
|
|
$
|
44,296
|
|
|
$
|
10,708
|
|
|
$
|
7,275
|
|
|
$
|
6,580
|
|
|
$
|
260
|
|
|
$
|
232,472
|
|
Special Mention
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Substandard
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Land and land development
|
$
|
36,452
|
|
|
$
|
126,935
|
|
|
$
|
44,296
|
|
|
$
|
10,708
|
|
|
$
|
7,275
|
|
|
$
|
6,580
|
|
|
$
|
260
|
|
|
$
|
232,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
74,684
|
|
|
$
|
284,798
|
|
|
$
|
228,436
|
|
|
$
|
98,502
|
|
|
$
|
52,755
|
|
|
$
|
89,037
|
|
|
$
|
466,294
|
|
|
$
|
1,294,506
|
|
Special Mention
|
65
|
|
|
1,314
|
|
|
5,021
|
|
|
1,472
|
|
|
4,846
|
|
|
5,091
|
|
|
8,635
|
|
|
26,444
|
|
||||||||
Substandard
|
2,904
|
|
|
2,199
|
|
|
7,548
|
|
|
3,934
|
|
|
293
|
|
|
949
|
|
|
19,040
|
|
|
36,867
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Commercial business
|
$
|
77,653
|
|
|
$
|
288,311
|
|
|
$
|
241,005
|
|
|
$
|
103,908
|
|
|
$
|
57,894
|
|
|
$
|
95,077
|
|
|
$
|
493,969
|
|
|
$
|
1,357,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agricultural business including secured by farmland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pass
|
$
|
17,928
|
|
|
$
|
64,309
|
|
|
$
|
35,934
|
|
|
$
|
26,835
|
|
|
$
|
27,403
|
|
|
$
|
35,133
|
|
|
$
|
102,965
|
|
|
$
|
310,507
|
|
Special Mention
|
—
|
|
|
1,328
|
|
|
—
|
|
|
919
|
|
|
676
|
|
|
1,418
|
|
|
—
|
|
|
4,341
|
|
||||||||
Substandard
|
625
|
|
|
5,523
|
|
|
5,974
|
|
|
191
|
|
|
62
|
|
|
707
|
|
|
2,327
|
|
|
15,409
|
|
||||||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Agricultural business including secured by farmland
|
$
|
18,553
|
|
|
$
|
71,160
|
|
|
$
|
41,908
|
|
|
$
|
27,945
|
|
|
$
|
28,141
|
|
|
$
|
37,258
|
|
|
$
|
105,292
|
|
|
$
|
330,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
Term Loans by Year of Origination
|
|
Revolving Loans
|
|
Total Loans
|
||||||||||||||||||||||||||
By class:
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Small balance CRE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Past Due Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
3,076
|
|
|
$
|
72,221
|
|
|
$
|
91,455
|
|
|
$
|
75,742
|
|
|
$
|
80,463
|
|
|
$
|
265,178
|
|
|
$
|
1,189
|
|
|
$
|
589,324
|
|
30-59 Days Past Due
|
—
|
|
|
380
|
|
|
382
|
|
|
—
|
|
|
—
|
|
|
738
|
|
|
—
|
|
|
1,500
|
|
||||||||
60-89 Days Past Due
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
396
|
|
|
—
|
|
|
396
|
|
||||||||
90 Days + Past Due
|
—
|
|
|
—
|
|
|
—
|
|
|
340
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
563
|
|
||||||||
Total Small balance CRE
|
$
|
3,076
|
|
|
$
|
72,601
|
|
|
$
|
91,837
|
|
|
$
|
76,082
|
|
|
$
|
80,463
|
|
|
$
|
266,535
|
|
|
$
|
1,189
|
|
|
$
|
591,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Small business scored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Past Due Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
49,408
|
|
|
$
|
176,863
|
|
|
$
|
161,438
|
|
|
$
|
115,884
|
|
|
$
|
60,448
|
|
|
$
|
85,896
|
|
|
$
|
151,905
|
|
|
$
|
801,842
|
|
30-59 Days Past Due
|
31
|
|
|
459
|
|
|
215
|
|
|
977
|
|
|
68
|
|
|
325
|
|
|
466
|
|
|
2,541
|
|
||||||||
60-89 Days Past Due
|
—
|
|
|
184
|
|
|
150
|
|
|
197
|
|
|
55
|
|
|
—
|
|
|
5
|
|
|
591
|
|
||||||||
90 Days + Past Due
|
—
|
|
|
243
|
|
|
568
|
|
|
715
|
|
|
610
|
|
|
152
|
|
|
277
|
|
|
2,565
|
|
||||||||
Total Small business scored
|
$
|
49,439
|
|
|
$
|
177,749
|
|
|
$
|
162,371
|
|
|
$
|
117,773
|
|
|
$
|
61,181
|
|
|
$
|
86,373
|
|
|
$
|
152,653
|
|
|
$
|
807,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
One- to four- family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Past Due Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
10,298
|
|
|
$
|
119,074
|
|
|
$
|
141,540
|
|
|
$
|
156,046
|
|
|
$
|
77,252
|
|
|
$
|
357,521
|
|
|
$
|
4,801
|
|
|
$
|
866,532
|
|
30-59 Days Past Due
|
559
|
|
|
4,107
|
|
|
639
|
|
|
1,615
|
|
|
264
|
|
|
5,215
|
|
|
—
|
|
|
12,399
|
|
||||||||
60-89 Days Past Due
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
103
|
|
||||||||
90 Days + Past Due
|
358
|
|
|
—
|
|
|
607
|
|
|
45
|
|
|
—
|
|
|
1,343
|
|
|
—
|
|
|
2,353
|
|
||||||||
Total One- to four- family residential
|
$
|
11,236
|
|
|
$
|
123,181
|
|
|
$
|
142,786
|
|
|
$
|
157,706
|
|
|
$
|
77,516
|
|
|
$
|
364,161
|
|
|
$
|
4,801
|
|
|
$
|
881,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
Term Loans by Year of Origination
|
|
Revolving Loans
|
|
Total Loans
|
||||||||||||||||||||||||||
By class:
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consumer—home equity revolving lines of credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Past Due Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
14,227
|
|
|
$
|
2,053
|
|
|
$
|
1,774
|
|
|
$
|
2,137
|
|
|
$
|
1,223
|
|
|
$
|
3,840
|
|
|
$
|
493,903
|
|
|
$
|
519,157
|
|
30-59 Days Past Due
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
664
|
|
|
678
|
|
||||||||
60-89 Days Past Due
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
267
|
|
|
—
|
|
|
267
|
|
||||||||
90 Days + Past Due
|
—
|
|
|
—
|
|
|
—
|
|
|
520
|
|
|
297
|
|
|
158
|
|
|
541
|
|
|
1,516
|
|
||||||||
Total Consumer—home equity revolving lines of credit
|
$
|
14,227
|
|
|
$
|
2,053
|
|
|
$
|
1,774
|
|
|
$
|
2,657
|
|
|
$
|
1,520
|
|
|
$
|
4,279
|
|
|
$
|
495,108
|
|
|
$
|
521,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consumer-other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Past Due Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
7,199
|
|
|
$
|
22,156
|
|
|
$
|
21,985
|
|
|
$
|
18,571
|
|
|
$
|
12,885
|
|
|
$
|
26,316
|
|
|
$
|
30,214
|
|
|
$
|
139,326
|
|
30-59 Days Past Due
|
102
|
|
|
21
|
|
|
174
|
|
|
78
|
|
|
100
|
|
|
95
|
|
|
78
|
|
|
648
|
|
||||||||
60-89 Days Past Due
|
—
|
|
|
30
|
|
|
29
|
|
|
17
|
|
|
—
|
|
|
10
|
|
|
54
|
|
|
140
|
|
||||||||
90 Days + Past Due
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
||||||||
Total Consumer-other
|
$
|
7,301
|
|
|
$
|
22,207
|
|
|
$
|
22,188
|
|
|
$
|
18,666
|
|
|
$
|
13,034
|
|
|
$
|
26,421
|
|
|
$
|
30,346
|
|
|
$
|
140,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||||||||||
By class:
|
Pass (Risk Ratings 1-5)(1)
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total Loans
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied
|
$
|
1,546,649
|
|
|
$
|
4,198
|
|
|
$
|
29,803
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,580,650
|
|
Investment properties
|
2,288,785
|
|
|
2,193
|
|
|
18,243
|
|
|
—
|
|
|
—
|
|
|
2,309,221
|
|
||||||
Multifamily real estate
|
472,856
|
|
|
—
|
|
|
296
|
|
|
—
|
|
|
—
|
|
|
473,152
|
|
||||||
Commercial construction
|
198,986
|
|
|
—
|
|
|
11,682
|
|
|
—
|
|
|
—
|
|
|
210,668
|
|
||||||
Multifamily construction
|
233,610
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233,610
|
|
||||||
One- to four-family construction
|
530,307
|
|
|
12,534
|
|
|
1,467
|
|
|
—
|
|
|
—
|
|
|
544,308
|
|
||||||
Land and land development:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
154,348
|
|
|
—
|
|
|
340
|
|
|
—
|
|
|
—
|
|
|
154,688
|
|
||||||
Commercial
|
26,256
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
26,290
|
|
||||||
Commercial business
|
1,627,170
|
|
|
31,012
|
|
|
35,584
|
|
|
58
|
|
|
—
|
|
|
1,693,824
|
|
||||||
Agricultural business, including secured by farmland
|
352,408
|
|
|
10,840
|
|
|
7,301
|
|
|
—
|
|
|
—
|
|
|
370,549
|
|
||||||
One- to four-family residential
|
940,424
|
|
|
409
|
|
|
4,789
|
|
|
—
|
|
|
—
|
|
|
945,622
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer secured by one- to four-family
|
547,388
|
|
|
—
|
|
|
3,572
|
|
|
—
|
|
|
—
|
|
|
550,960
|
|
||||||
Consumer—other
|
211,475
|
|
|
3
|
|
|
337
|
|
|
—
|
|
|
—
|
|
|
211,815
|
|
||||||
Total
|
$
|
9,130,662
|
|
|
$
|
61,189
|
|
|
$
|
113,448
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
9,305,357
|
|
(1)
|
The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated. This includes all consumer loans, all one- to four-family residential loans and, as of December 31, 2019, in the commercial business category, $764.6 million of credit-scored small business loans. As loans in these pools become non-performing, they are individually risk-rated.
|
|
March 31, 2020
|
||||||||||||||||||
|
Real Estate
|
|
Accounts Receivable
|
|
Equipment
|
|
Inventory
|
|
Total
|
||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner-occupied
|
$
|
1,838
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,838
|
|
Investment properties
|
3,421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,421
|
|
|||||
Small Balance CRE
|
1,367
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,367
|
|
|||||
Multifamily real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction, land and land development:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Multifamily construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
One- to four-family construction
|
964
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
964
|
|
|||||
Land and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial business
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial business
|
2,851
|
|
|
11,344
|
|
|
4,597
|
|
|
1,215
|
|
|
20,007
|
|
|||||
Small business Scored
|
48
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
97
|
|
|||||
Agricultural business, including secured by farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
One- to four-family residential
|
868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
868
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer—home equity revolving lines of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer—other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
11,357
|
|
|
$
|
11,344
|
|
|
$
|
4,646
|
|
|
$
|
1,215
|
|
|
$
|
28,562
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||||||
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or More
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total Loans
|
|
Non-accrual with no Allowance
|
|
Total Non-accrual (1)
|
|
Loans 90 Days or More Past Due and Accruing
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Owner-occupied
|
$
|
1,209
|
|
|
$
|
—
|
|
|
$
|
1,837
|
|
|
$
|
3,046
|
|
|
$
|
1,021,043
|
|
|
$
|
1,024,089
|
|
|
$
|
1,837
|
|
|
$
|
2,243
|
|
|
$
|
—
|
|
Investment properties
|
607
|
|
|
—
|
|
|
3,888
|
|
|
4,495
|
|
|
2,003,042
|
|
|
2,007,537
|
|
|
3,420
|
|
|
3,863
|
|
|
24
|
|
|||||||||
Small Balance CRE
|
1,500
|
|
|
396
|
|
|
563
|
|
|
2,459
|
|
|
589,324
|
|
|
591,783
|
|
|
1,222
|
|
|
2,406
|
|
|
—
|
|
|||||||||
Multifamily real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
400,206
|
|
|
400,206
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Construction, land and land development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial construction
|
11,521
|
|
|
—
|
|
|
1,505
|
|
|
13,026
|
|
|
192,450
|
|
|
205,476
|
|
|
—
|
|
|
98
|
|
|
1,407
|
|
|||||||||
Multifamily construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250,410
|
|
|
250,410
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
One- to four-family construction
|
1,027
|
|
|
—
|
|
|
964
|
|
|
1,991
|
|
|
532,965
|
|
|
534,956
|
|
|
964
|
|
|
1,295
|
|
|
—
|
|
|||||||||
Land and land development
|
1,783
|
|
|
—
|
|
|
—
|
|
|
1,783
|
|
|
230,723
|
|
|
232,506
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Commercial business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial business
|
4,849
|
|
|
537
|
|
|
1,508
|
|
|
6,894
|
|
|
1,350,923
|
|
|
1,357,817
|
|
|
198
|
|
|
21,737
|
|
|
—
|
|
|||||||||
Small business scored
|
2,541
|
|
|
591
|
|
|
2,565
|
|
|
5,697
|
|
|
801,842
|
|
|
807,539
|
|
|
98
|
|
|
3,290
|
|
|
77
|
|
|||||||||
Agricultural business, including secured by farmland
|
580
|
|
|
2,083
|
|
|
894
|
|
|
3,557
|
|
|
326,700
|
|
|
330,257
|
|
|
—
|
|
|
495
|
|
|
461
|
|
|||||||||
One- to four-family residential
|
12,399
|
|
|
103
|
|
|
2,353
|
|
|
14,855
|
|
|
866,532
|
|
|
881,387
|
|
|
865
|
|
|
3,045
|
|
|
1,089
|
|
|||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consumer—home equity revolving lines of credit
|
678
|
|
|
267
|
|
|
1,516
|
|
|
2,461
|
|
|
519,157
|
|
|
521,618
|
|
|
—
|
|
|
1,713
|
|
|
320
|
|
|||||||||
Consumer—other
|
648
|
|
|
140
|
|
|
49
|
|
|
837
|
|
|
139,326
|
|
|
140,163
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|||||||||
Total
|
$
|
39,342
|
|
|
$
|
4,117
|
|
|
$
|
17,642
|
|
|
$
|
61,101
|
|
|
$
|
9,224,643
|
|
|
$
|
9,285,744
|
|
|
$
|
8,604
|
|
|
$
|
40,284
|
|
|
$
|
3,378
|
|
|
December 31, 2019
|
||||||||||||||||||||||||||||||||||
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or More
Past Due
|
|
Total
Past Due
|
|
Purchased Credit-Impaired
|
|
Current
|
|
Total Loans
|
|
Loans 90 Days or More Past Due and Accruing
|
|
Total Non-accrual (1)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Owner-occupied
|
$
|
486
|
|
|
$
|
1,246
|
|
|
$
|
2,889
|
|
|
$
|
4,621
|
|
|
$
|
8,578
|
|
|
$
|
1,567,451
|
|
|
$
|
1,580,650
|
|
|
$
|
89
|
|
|
$
|
4,069
|
|
Investment properties
|
—
|
|
|
260
|
|
|
1,883
|
|
|
2,143
|
|
|
6,345
|
|
|
2,300,733
|
|
|
2,309,221
|
|
|
—
|
|
|
1,883
|
|
|||||||||
Multifamily real estate
|
239
|
|
|
91
|
|
|
—
|
|
|
330
|
|
|
7
|
|
|
472,815
|
|
|
473,152
|
|
|
—
|
|
|
85
|
|
|||||||||
Commercial construction
|
1,397
|
|
|
—
|
|
|
98
|
|
|
1,495
|
|
|
—
|
|
|
209,173
|
|
|
210,668
|
|
|
—
|
|
|
98
|
|
|||||||||
Multifamily construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233,610
|
|
|
233,610
|
|
|
—
|
|
|
—
|
|
|||||||||
One-to-four-family construction
|
3,212
|
|
|
—
|
|
|
1,799
|
|
|
5,011
|
|
|
—
|
|
|
539,297
|
|
|
544,308
|
|
|
332
|
|
|
1,467
|
|
|||||||||
Land and land development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Residential
|
—
|
|
|
—
|
|
|
340
|
|
|
340
|
|
|
—
|
|
|
154,348
|
|
|
154,688
|
|
|
—
|
|
|
340
|
|
|||||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,290
|
|
|
26,290
|
|
|
—
|
|
|
—
|
|
|||||||||
Commercial business
|
2,343
|
|
|
1,583
|
|
|
3,412
|
|
|
7,338
|
|
|
368
|
|
|
1,686,118
|
|
|
1,693,824
|
|
|
401
|
|
|
23,015
|
|
|||||||||
Agricultural business, including secured by farmland
|
1,972
|
|
|
129
|
|
|
584
|
|
|
2,685
|
|
|
393
|
|
|
367,471
|
|
|
370,549
|
|
|
—
|
|
|
661
|
|
|||||||||
One-to four-family residential
|
3,777
|
|
|
1,088
|
|
|
2,876
|
|
|
7,741
|
|
|
74
|
|
|
937,807
|
|
|
945,622
|
|
|
877
|
|
|
3,410
|
|
|||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consumer secured by one- to four-family
|
1,174
|
|
|
327
|
|
|
1,846
|
|
|
3,347
|
|
|
110
|
|
|
547,503
|
|
|
550,960
|
|
|
398
|
|
|
2,314
|
|
|||||||||
Consumer—other
|
350
|
|
|
161
|
|
|
—
|
|
|
511
|
|
|
63
|
|
|
211,241
|
|
|
211,815
|
|
|
—
|
|
|
159
|
|
|||||||||
Total
|
$
|
14,950
|
|
|
$
|
4,885
|
|
|
$
|
15,727
|
|
|
$
|
35,562
|
|
|
$
|
15,938
|
|
|
$
|
9,253,857
|
|
|
$
|
9,305,357
|
|
|
$
|
2,097
|
|
|
$
|
37,501
|
|
(1)
|
The Company did not recognize any interest income on non-accrual loans during both the three months ended March 31, 2020 and the year ended December 31, 2019.
|
|
For the Three Months Ended March 31, 2020
|
||||||||||||||||||||||||||||||||||
|
Commercial
Real Estate
|
|
Multifamily
Real Estate
|
|
Construction and Land
|
|
Commercial Business
|
|
Agricultural Business
|
|
One- to Four-Family Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Beginning balance
|
$
|
30,591
|
|
|
$
|
4,754
|
|
|
$
|
22,994
|
|
|
$
|
23,370
|
|
|
$
|
4,120
|
|
|
$
|
4,136
|
|
|
$
|
8,202
|
|
|
$
|
2,392
|
|
|
$
|
100,559
|
|
Impact of Adopting Topic 326
|
(2,864
|
)
|
|
(2,204
|
)
|
|
2,515
|
|
|
3,010
|
|
|
(351
|
)
|
|
7,125
|
|
|
2,973
|
|
|
|
|
7,812
|
|
||||||||||
Provision/(recapture) for credit losses
|
1,545
|
|
|
321
|
|
|
8,708
|
|
|
6,447
|
|
|
(1,006
|
)
|
|
539
|
|
|
5,159
|
|
|
—
|
|
|
21,713
|
|
|||||||||
Recoveries
|
167
|
|
|
—
|
|
|
—
|
|
|
205
|
|
|
1,750
|
|
|
148
|
|
|
96
|
|
|
—
|
|
|
2,366
|
|
|||||||||
Charge-offs
|
(100
|
)
|
|
(66
|
)
|
|
—
|
|
|
(1,384
|
)
|
|
—
|
|
|
(64
|
)
|
|
(348
|
)
|
|
—
|
|
|
(1,962
|
)
|
|||||||||
Ending balance
|
$
|
29,339
|
|
|
$
|
2,805
|
|
|
$
|
34,217
|
|
|
$
|
31,648
|
|
|
$
|
4,513
|
|
|
$
|
11,884
|
|
|
$
|
16,082
|
|
|
$
|
—
|
|
|
$
|
130,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||||||||||
|
Commercial
Real Estate
|
|
Multifamily
Real Estate |
|
Construction and Land
|
|
Commercial Business
|
|
Agricultural Business
|
|
One- to Four-Family Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Beginning balance
|
$
|
27,132
|
|
|
$
|
3,818
|
|
|
$
|
24,442
|
|
|
$
|
19,438
|
|
|
$
|
3,778
|
|
|
$
|
4,714
|
|
|
$
|
7,972
|
|
|
$
|
5,191
|
|
|
$
|
96,485
|
|
Provision/(recapture) for loan losses
|
369
|
|
|
202
|
|
|
(751
|
)
|
|
(209
|
)
|
|
(178
|
)
|
|
(46
|
)
|
|
269
|
|
|
2,344
|
|
|
2,000
|
|
|||||||||
Recoveries
|
21
|
|
|
—
|
|
|
22
|
|
|
23
|
|
|
—
|
|
|
43
|
|
|
110
|
|
|
—
|
|
|
219
|
|
|||||||||
Charge-offs
|
(431
|
)
|
|
—
|
|
|
—
|
|
|
(590
|
)
|
|
(4
|
)
|
|
—
|
|
|
(371
|
)
|
|
—
|
|
|
(1,396
|
)
|
|||||||||
Ending balance
|
$
|
27,091
|
|
|
$
|
4,020
|
|
|
$
|
23,713
|
|
|
$
|
18,662
|
|
|
$
|
3,596
|
|
|
$
|
4,711
|
|
|
$
|
7,980
|
|
|
$
|
7,535
|
|
|
$
|
97,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||||||||||||||
|
Commercial
Real Estate
|
|
Multifamily
Real Estate |
|
Construction and Land
|
|
Commercial Business
|
|
Agricultural Business
|
|
One- to Four-Family Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
240
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
66
|
|
|
$
|
59
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
385
|
|
Collectively evaluated for impairment
|
26,851
|
|
|
4,020
|
|
|
23,713
|
|
|
18,627
|
|
|
3,472
|
|
|
4,652
|
|
|
7,972
|
|
|
7,535
|
|
|
96,842
|
|
|||||||||
Purchased credit-impaired loans
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|||||||||
Total allowance for loan losses
|
$
|
27,091
|
|
|
$
|
4,020
|
|
|
$
|
23,713
|
|
|
$
|
18,662
|
|
|
$
|
3,596
|
|
|
$
|
4,711
|
|
|
$
|
7,980
|
|
|
$
|
7,535
|
|
|
$
|
97,308
|
|
Loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
9,806
|
|
|
$
|
—
|
|
|
$
|
2,988
|
|
|
$
|
514
|
|
|
$
|
4,110
|
|
|
$
|
4,116
|
|
|
$
|
193
|
|
|
$
|
—
|
|
|
$
|
21,727
|
|
Collectively evaluated for impairment
|
3,545,162
|
|
|
387,014
|
|
|
1,093,159
|
|
|
1,523,166
|
|
|
368,781
|
|
|
963,370
|
|
|
776,948
|
|
|
—
|
|
|
8,657,600
|
|
|||||||||
Purchased credit impaired loans
|
11,805
|
|
|
128
|
|
|
—
|
|
|
618
|
|
|
431
|
|
|
95
|
|
|
253
|
|
|
—
|
|
|
13,330
|
|
|||||||||
Total loans
|
$
|
3,566,773
|
|
|
$
|
387,142
|
|
|
$
|
1,096,147
|
|
|
$
|
1,524,298
|
|
|
$
|
373,322
|
|
|
$
|
967,581
|
|
|
$
|
777,394
|
|
|
$
|
—
|
|
|
$
|
8,692,657
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Balance, beginning of the period
|
$
|
814
|
|
|
$
|
2,611
|
|
Additions from loan foreclosures
|
1,588
|
|
|
—
|
|
||
Balance, end of the period
|
$
|
2,402
|
|
|
$
|
2,611
|
|
|
Goodwill
|
|
CDI
|
|
LHI
|
|
Total
|
||||||||
Balance, December 31, 2018
|
$
|
339,154
|
|
|
$
|
32,699
|
|
|
$
|
225
|
|
|
$
|
372,078
|
|
Additions through acquisitions(1)
|
33,967
|
|
|
4,610
|
|
|
—
|
|
|
38,577
|
|
||||
Amortization
|
—
|
|
|
(8,151
|
)
|
|
—
|
|
|
(8,151
|
)
|
||||
Adjustments(2)
|
—
|
|
|
—
|
|
|
(225
|
)
|
|
(225
|
)
|
||||
Balance, December 31, 2019
|
373,121
|
|
|
29,158
|
|
|
—
|
|
|
402,279
|
|
||||
Amortization
|
—
|
|
|
(2,001
|
)
|
|
—
|
|
|
(2,001
|
)
|
||||
Balance, March 31, 2020
|
$
|
373,121
|
|
|
$
|
27,157
|
|
|
$
|
—
|
|
|
$
|
400,278
|
|
|
|
Estimated Amortization
|
||
Remainder of 2020
|
|
$
|
5,730
|
|
2021
|
|
6,571
|
|
|
2022
|
|
5,317
|
|
|
2023
|
|
3,814
|
|
|
2024
|
|
2,659
|
|
|
Thereafter
|
|
3,066
|
|
|
|
|
$
|
27,157
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Balance, beginning of the period
|
$
|
14,148
|
|
|
$
|
14,638
|
|
Additions—amounts capitalized
|
1,420
|
|
|
672
|
|
||
Additions—through purchase
|
63
|
|
|
47
|
|
||
Amortization (1)
|
(1,354
|
)
|
|
(940
|
)
|
||
Balance, end of the period (2)
|
$
|
14,277
|
|
|
$
|
14,417
|
|
(1)
|
Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income within mortgage banking operations and any unamortized balance is fully amortized if the loan repays in full.
|
(2)
|
There was no valuation allowance as of March 31, 2020 and 2019.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Non-interest-bearing accounts
|
$
|
4,107,262
|
|
|
$
|
3,945,000
|
|
Interest-bearing checking
|
1,331,860
|
|
|
1,280,003
|
|
||
Regular savings accounts
|
1,997,265
|
|
|
1,934,041
|
|
||
Money market accounts
|
1,846,844
|
|
|
1,769,194
|
|
||
Total interest-bearing transaction and saving accounts
|
5,175,969
|
|
|
4,983,238
|
|
||
Certificates of deposit:
|
|
|
|
||||
Certificates of deposit less than or equal to $250,000
|
972,667
|
|
|
936,940
|
|
||
Certificates of deposit greater than $250,000
|
193,639
|
|
|
183,463
|
|
||
Total certificates of deposit(1)
|
1,166,306
|
|
|
1,120,403
|
|
||
Total deposits
|
$
|
10,449,537
|
|
|
$
|
10,048,641
|
|
Included in total deposits:
|
|
|
|
|
|
||
Public fund transaction and savings accounts
|
$
|
246,312
|
|
|
$
|
244,418
|
|
Public fund interest-bearing certificates
|
48,232
|
|
|
35,184
|
|
||
Total public deposits
|
$
|
294,544
|
|
|
$
|
279,602
|
|
Total brokered deposits
|
$
|
250,977
|
|
|
$
|
202,884
|
|
(1)
|
Certificates of deposit include $206,000 and $269,000 of acquisition premiums at March 31, 2020 and December 31, 2019, respectively.
|
|
March 31, 2020
|
|||||
|
Amount
|
|
Weighted Average Rate
|
|||
Maturing in one year or less
|
$
|
887,586
|
|
|
1.24
|
%
|
Maturing after one year through two years
|
175,730
|
|
|
1.76
|
|
|
Maturing after two years through three years
|
76,073
|
|
|
1.81
|
|
|
Maturing after three years through four years
|
11,742
|
|
|
1.97
|
|
|
Maturing after four years through five years
|
12,652
|
|
|
1.97
|
|
|
Maturing after five years
|
2,523
|
|
|
1.14
|
|
|
Total certificates of deposit
|
$
|
1,166,306
|
|
|
1.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Level
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
1
|
|
$
|
295,001
|
|
|
$
|
295,001
|
|
|
$
|
307,735
|
|
|
$
|
307,735
|
|
Securities—trading
|
3
|
|
21,040
|
|
|
21,040
|
|
|
25,636
|
|
|
25,636
|
|
||||
Securities—available-for-sale
|
2
|
|
1,608,224
|
|
|
1,608,224
|
|
|
1,551,557
|
|
|
1,551,557
|
|
||||
Securities—held-to-maturity
|
2
|
|
435,119
|
|
|
446,412
|
|
|
233,241
|
|
|
234,952
|
|
||||
Securities—held-to-maturity
|
3
|
|
2,825
|
|
|
2,825
|
|
|
2,853
|
|
|
2,853
|
|
||||
Loans held for sale
|
2
|
|
182,428
|
|
|
182,766
|
|
|
210,447
|
|
|
210,670
|
|
||||
Loans receivable
|
3
|
|
9,285,744
|
|
|
9,272,174
|
|
|
9,305,357
|
|
|
9,304,340
|
|
||||
FHLB stock
|
3
|
|
20,247
|
|
|
20,247
|
|
|
28,342
|
|
|
28,342
|
|
||||
Bank-owned life insurance
|
1
|
|
193,140
|
|
|
193,140
|
|
|
192,088
|
|
|
192,088
|
|
||||
Mortgage servicing rights
|
3
|
|
14,277
|
|
|
20,931
|
|
|
14,148
|
|
|
22,611
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
2
|
|
42,687
|
|
|
42,687
|
|
|
15,202
|
|
|
15,202
|
|
||||
Interest rate lock and forward sales commitments
|
2,3
|
|
3,325
|
|
|
3,325
|
|
|
1,108
|
|
|
1,108
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Demand, interest checking and money market accounts
|
2
|
|
7,285,966
|
|
|
7,285,966
|
|
|
6,994,197
|
|
|
6,994,197
|
|
||||
Regular savings
|
2
|
|
1,997,265
|
|
|
1,997,265
|
|
|
1,934,041
|
|
|
1,934,041
|
|
||||
Certificates of deposit
|
2
|
|
1,166,306
|
|
|
1,173,126
|
|
|
1,120,403
|
|
|
1,117,921
|
|
||||
FHLB advances
|
2
|
|
247,000
|
|
|
251,978
|
|
|
450,000
|
|
|
452,720
|
|
||||
Other borrowings
|
2
|
|
128,764
|
|
|
128,764
|
|
|
118,474
|
|
|
118,474
|
|
||||
Junior subordinated debentures
|
3
|
|
99,795
|
|
|
99,795
|
|
|
119,304
|
|
|
119,304
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
2
|
|
23,280
|
|
|
23,280
|
|
|
10,966
|
|
|
10,966
|
|
||||
Interest rate lock and forward sales commitments
|
2
|
|
4,448
|
|
|
4,448
|
|
|
674
|
|
|
674
|
|
•
|
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.
|
|
March 31, 2020
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Securities—trading
|
|
|
|
|
|
|
|
||||||||
Corporate bonds (Trust Preferred Securities)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,040
|
|
|
$
|
21,040
|
|
|
|
|
|
|
|
|
|
||||||||
Securities—available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency obligations
|
—
|
|
|
81,763
|
|
|
—
|
|
|
81,763
|
|
||||
Municipal bonds
|
—
|
|
|
181,039
|
|
|
—
|
|
|
181,039
|
|
||||
Corporate bonds
|
—
|
|
|
30,986
|
|
|
—
|
|
|
30,986
|
|
||||
Mortgage-backed or related securities
|
—
|
|
|
1,306,799
|
|
|
—
|
|
|
1,306,799
|
|
||||
Asset-backed securities
|
—
|
|
|
7,637
|
|
|
—
|
|
|
7,637
|
|
||||
|
—
|
|
|
1,608,224
|
|
|
—
|
|
|
1,608,224
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
—
|
|
|
169,239
|
|
|
—
|
|
|
169,239
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
42,687
|
|
|
—
|
|
|
42,687
|
|
||||
Interest rate lock and forward sales commitments
|
—
|
|
|
808
|
|
|
2,517
|
|
|
3,325
|
|
||||
|
$
|
—
|
|
|
$
|
1,820,958
|
|
|
$
|
23,557
|
|
|
$
|
1,844,515
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Junior subordinated debentures, net of unamortized deferred issuance costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
99,795
|
|
|
$
|
99,795
|
|
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
23,280
|
|
|
—
|
|
|
23,280
|
|
||||
Interest rate lock and forward sales commitments
|
—
|
|
|
4,448
|
|
|
—
|
|
|
4,448
|
|
||||
|
$
|
—
|
|
|
$
|
27,728
|
|
|
$
|
99,795
|
|
|
$
|
127,523
|
|
|
December 31, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Securities—trading
|
|
|
|
|
|
|
|
||||||||
Corporate bonds (Trust Preferred Securities)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,636
|
|
|
$
|
25,636
|
|
|
|
|
|
|
|
|
|
||||||||
Securities—available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency obligations
|
—
|
|
|
89,598
|
|
|
—
|
|
|
89,598
|
|
||||
Municipal bonds
|
—
|
|
|
107,157
|
|
|
—
|
|
|
107,157
|
|
||||
Corporate bonds
|
—
|
|
|
4,365
|
|
|
—
|
|
|
4,365
|
|
||||
Mortgage-backed securities
|
—
|
|
|
1,342,311
|
|
|
—
|
|
|
1,342,311
|
|
||||
Asset-backed securities
|
—
|
|
|
8,126
|
|
|
—
|
|
|
8,126
|
|
||||
|
—
|
|
|
1,551,557
|
|
|
—
|
|
|
1,551,557
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
—
|
|
|
199,397
|
|
|
—
|
|
|
199,397
|
|
||||
Equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
15,202
|
|
|
—
|
|
|
15,202
|
|
||||
Interest rate lock and forward sales commitments
|
—
|
|
|
317
|
|
|
791
|
|
|
1,108
|
|
||||
|
$
|
—
|
|
|
$
|
1,766,473
|
|
|
$
|
26,427
|
|
|
$
|
1,792,900
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Junior subordinated debentures, net of unamortized deferred issuance costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
119,304
|
|
|
$
|
119,304
|
|
Derivatives
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
10,966
|
|
|
—
|
|
|
10,966
|
|
||||
Interest rate lock and forward sales commitments
|
—
|
|
|
674
|
|
|
—
|
|
|
674
|
|
||||
|
$
|
—
|
|
|
$
|
11,640
|
|
|
$
|
119,304
|
|
|
$
|
130,944
|
|
|
|
|
|
|
|
Weighted Average Rate / Range
|
||||
Financial Instruments
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
March 31, 2020
|
|
December 31, 2019
|
||
Corporate bonds (TPS securities)
|
|
Discounted cash flows
|
|
Discount rate
|
|
6.70
|
%
|
|
5.91
|
%
|
Junior subordinated debentures
|
|
Discounted cash flows
|
|
Discount rate
|
|
6.70
|
%
|
|
5.91
|
%
|
Loans individually evaluated
|
|
Collateral valuations
|
|
Discount to appraised value
|
|
0.0% to 20.0%
|
|
|
0.0% to 20.0%
|
|
REO
|
|
Appraisals
|
|
Discount to appraised value
|
|
52.03
|
%
|
|
58.50
|
%
|
Interest rate lock commitments
|
|
Pricing model
|
|
Pull-through rate
|
|
84.19
|
%
|
|
89.61
|
%
|
|
Three Months Ended
|
||||||
|
March 31, 2020
|
||||||
|
Level 3 Fair Value Inputs
|
||||||
|
TPS Securities
|
|
Borrowings—Junior Subordinated Debentures
|
||||
Beginning balance
|
$
|
25,636
|
|
|
$
|
119,304
|
|
Total gains or losses recognized
|
|
|
|
||||
Assets losses
|
(4,596
|
)
|
|
—
|
|
||
Liabilities gains
|
—
|
|
|
(19,509
|
)
|
||
Ending balance at March 31, 2020
|
$
|
21,040
|
|
|
$
|
99,795
|
|
|
|
|
|
||||
|
Three Months Ended
|
||||||
|
March 31, 2019
|
||||||
|
Level 3 Fair Value Inputs
|
||||||
|
TPS Securities
|
|
Borrowings—Junior Subordinated Debentures
|
||||
Beginning balance
|
$
|
25,896
|
|
|
$
|
114,091
|
|
Total gains or losses recognized
|
|
|
|
||||
Assets gains
|
(58
|
)
|
|
—
|
|
||
Liabilities losses
|
—
|
|
|
(174
|
)
|
||
Ending balance at March 31, 2019
|
$
|
25,838
|
|
|
$
|
113,917
|
|
|
March 31, 2020
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Loans individually evaluated
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,954
|
|
|
$
|
19,954
|
|
REO
|
—
|
|
|
—
|
|
|
2,402
|
|
|
2,402
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,853
|
|
|
$
|
14,853
|
|
REO
|
—
|
|
|
—
|
|
|
814
|
|
|
814
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Loans individually evaluated
|
|
$
|
—
|
|
|
$
|
(300
|
)
|
REO
|
|
—
|
|
|
—
|
|
||
Total loss from non-recurring measurements
|
|
$
|
—
|
|
|
$
|
(300
|
)
|
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Tax credit investments
|
$
|
33,811
|
|
|
$
|
29,620
|
|
Unfunded commitments—tax credit investments
|
24,409
|
|
|
20,235
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Tax credits and other tax benefits recognized
|
$
|
1,007
|
|
|
$
|
494
|
|
Tax credit amortization expense included in provision for income taxes
|
809
|
|
|
405
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Net income
|
$
|
16,882
|
|
|
$
|
33,346
|
|
|
|
|
|
|
|||
Basic weighted average shares outstanding
|
35,463,541
|
|
|
35,050,376
|
|
||
Plus unvested restricted stock
|
176,922
|
|
|
121,680
|
|
||
Diluted weighted shares outstanding
|
35,640,463
|
|
|
35,172,056
|
|
||
Earnings per common share
|
|
|
|
|
|
||
Basic
|
$
|
0.48
|
|
|
$
|
0.95
|
|
Diluted
|
$
|
0.47
|
|
|
$
|
0.95
|
|
•
|
2014 Omnibus Incentive Plan (the 2014 Plan).
|
•
|
2018 Omnibus Incentive Plan (the 2018 Plan).
|
|
Contract or Notional Amount
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
Commitments to extend credit
|
$
|
2,975,390
|
|
|
$
|
3,051,681
|
|
Standby letters of credit and financial guarantees
|
15,619
|
|
|
14,298
|
|
||
Commitments to originate loans
|
75,180
|
|
|
39,676
|
|
||
Risk participation agreement
|
41,004
|
|
|
41,022
|
|
||
|
|
|
|
||||
Derivatives also included in Note 14:
|
|
|
|
||||
Commitments to originate loans held for sale
|
191,119
|
|
|
66,196
|
|
||
Commitments to sell loans secured by one- to four-family residential properties
|
81,429
|
|
|
70,895
|
|
||
Commitments to sell securities related to mortgage banking activities
|
229,000
|
|
|
239,320
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||||
|
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
|
$
|
2,253
|
|
|
$
|
155
|
|
|
$
|
3,567
|
|
|
$
|
220
|
|
|
$
|
2,253
|
|
|
$
|
155
|
|
|
$
|
3,567
|
|
|
$
|
220
|
|
(1)
|
Included in Loans receivable on the consolidated statements of financial condition.
|
(2)
|
Included in Other liabilities on the consolidated statements of financial condition.
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||||
|
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
|
$
|
404,492
|
|
|
$
|
42,532
|
|
|
$
|
371,957
|
|
|
$
|
14,982
|
|
|
$
|
404,492
|
|
|
$
|
23,125
|
|
|
$
|
371,957
|
|
|
$
|
10,746
|
|
Mortgage loan commitments
|
170,207
|
|
|
2,517
|
|
|
50,755
|
|
|
791
|
|
|
51,063
|
|
|
2
|
|
|
65,855
|
|
|
190
|
|
||||||||
Forward sales contracts
|
81,429
|
|
|
808
|
|
|
70,895
|
|
|
317
|
|
|
229,000
|
|
|
4,446
|
|
|
239,320
|
|
|
484
|
|
||||||||
|
$
|
656,128
|
|
|
$
|
45,857
|
|
|
$
|
493,607
|
|
|
$
|
16,090
|
|
|
$
|
684,555
|
|
|
$
|
27,573
|
|
|
$
|
677,132
|
|
|
$
|
11,420
|
|
(1)
|
Included in Other assets on the Consolidated Statements of Financial Condition, with the exception of certain interest swaps and mortgage loan commitments (with a fair value of $959,000 at March 31, 2020 and $347,000 at December 31, 2019), which are included in Loans receivable.
|
(2)
|
Included in Other liabilities on the Consolidated Statements of Financial Condition.
|
|
Location on Consolidated
Statements of Operations
|
|
Three Months Ended
March 31, |
||||||
|
|
2020
|
|
2019
|
|||||
Mortgage loan commitments
|
Mortgage banking operations
|
|
$
|
1,726
|
|
|
$
|
7
|
|
Forward sales contracts
|
Mortgage banking operations
|
|
(3,068
|
)
|
|
150
|
|
||
|
|
|
$
|
(1,342
|
)
|
|
$
|
157
|
|
|
March 31, 2020
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition
|
|
|
||||||||||||||
|
Gross Amounts Recognized
|
|
Amounts offset
in the Statement
of Financial Condition
|
|
Net Amounts
in the Statement
of Financial Condition
|
|
Netting Adjustment Per Applicable Master Netting Agreements
|
|
Fair Value
of Financial Collateral
in the Statement
of Financial Condition
|
|
Net Amount
|
||||||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
42,687
|
|
|
$
|
—
|
|
|
$
|
42,687
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42,687
|
|
|
$
|
42,687
|
|
|
$
|
—
|
|
|
$
|
42,687
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
42,687
|
|
|
$
|
(19,407
|
)
|
|
$
|
23,280
|
|
|
$
|
—
|
|
|
$
|
(23,285
|
)
|
|
$
|
(5
|
)
|
|
$
|
42,687
|
|
|
$
|
(19,407
|
)
|
|
$
|
23,280
|
|
|
$
|
—
|
|
|
$
|
(23,285
|
)
|
|
$
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2019
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Gross Amounts of Financial Instruments Not Offset in the Consolidated Statements of Financial Condition
|
|
|
||||||||||||||
|
Gross Amounts Recognized
|
|
Amounts offset
in the Statement
of Financial Condition
|
|
Net Amounts
in the Statement
of Financial Condition
|
|
Netting Adjustment Per Applicable Master Netting Agreements
|
|
Fair Value
of Financial Collateral
in the Statement
of Financial Condition
|
|
Net Amount
|
||||||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
15,242
|
|
|
$
|
(40
|
)
|
|
$
|
15,202
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,202
|
|
|
$
|
15,242
|
|
|
$
|
(40
|
)
|
|
$
|
15,202
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
15,242
|
|
|
$
|
(4,276
|
)
|
|
$
|
10,966
|
|
|
$
|
—
|
|
|
$
|
(15,209
|
)
|
|
$
|
(4,243
|
)
|
|
$
|
15,242
|
|
|
$
|
(4,276
|
)
|
|
$
|
10,966
|
|
|
$
|
—
|
|
|
$
|
(15,209
|
)
|
|
$
|
(4,243
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Deposit service charges
|
$
|
4,832
|
|
|
$
|
4,586
|
|
Debit and credit card interchange fees
|
4,884
|
|
|
7,931
|
|
||
Debit and credit card expense
|
(1,932
|
)
|
|
(2,449
|
)
|
||
Merchant services income
|
3,002
|
|
|
2,856
|
|
||
Merchant services expense
|
(2,436
|
)
|
|
(2,319
|
)
|
||
Other service charges
|
1,453
|
|
|
2,013
|
|
||
Total deposit fees and other service charges
|
$
|
9,803
|
|
|
$
|
12,618
|
|
|
|
Classification on the Balance Sheet
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Assets
|
|
|
|
|
|
|
||||
Operating right-of-use lease assets
|
|
Other assets
|
|
$
|
59,620
|
|
|
$
|
61,766
|
|
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
|
||||
Operating lease liabilities
|
|
Accrued expenses and other liabilities
|
|
$
|
63,757
|
|
|
$
|
65,818
|
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2020
|
|
2019
|
||||
Operating lease cost (1)
|
|
$
|
4,164
|
|
|
$
|
3,975
|
|
Short-term lease cost (1)
|
|
21
|
|
|
121
|
|
||
Variable lease cost (1)
|
|
811
|
|
|
561
|
|
||
Less sublease income (1)
|
|
(254
|
)
|
|
(237
|
)
|
||
Total lease cost
|
|
$
|
4,742
|
|
|
$
|
4,420
|
|
|
|
Operating Leases
|
||
Remainder of 2020
|
|
$
|
12,180
|
|
2021
|
|
15,370
|
|
|
2022
|
|
11,764
|
|
|
2023
|
|
8,675
|
|
|
2024
|
|
6,756
|
|
|
Thereafter
|
|
16,489
|
|
|
Total minimum lease payments
|
|
71,234
|
|
|
Less: amount of lease payments representing interest
|
|
(7,477
|
)
|
|
Lease obligations
|
|
$
|
63,757
|
|
|
For the Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
ADJUSTED REVENUE
|
|
|
|
||||
Net interest income
|
$
|
119,258
|
|
|
$
|
116,104
|
|
Total non-interest income
|
19,165
|
|
|
18,125
|
|
||
Total GAAP revenue
|
138,423
|
|
|
134,229
|
|
||
Exclude net gain on sale of securities
|
(78
|
)
|
|
(1
|
)
|
||
Exclude change in valuation of financial instruments carried at fair value
|
4,596
|
|
|
(11
|
)
|
||
Adjusted Revenue (non-GAAP)
|
$
|
142,941
|
|
|
$
|
134,217
|
|
|
For the Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
ADJUSTED EARNINGS
|
|
|
|
||||
Net income (GAAP)
|
$
|
16,882
|
|
|
$
|
33,346
|
|
Exclude net gain on sale of securities
|
(78
|
)
|
|
(1
|
)
|
||
Exclude change in valuation of financial instruments carried at fair value
|
4,596
|
|
|
(11
|
)
|
||
Exclude acquisition-related expenses
|
1,142
|
|
|
2,148
|
|
||
Exclude COVID-19 expenses
|
239
|
|
|
—
|
|
||
Exclude related tax benefit
|
(1,405
|
)
|
|
(513
|
)
|
||
Total adjusted earnings (non-GAAP)
|
$
|
21,376
|
|
|
$
|
34,969
|
|
Diluted earnings per share (GAAP)
|
$
|
0.47
|
|
|
$
|
0.95
|
|
Diluted adjusted earnings per share (non-GAAP)
|
$
|
0.60
|
|
|
$
|
0.99
|
|
|
For the Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
ADJUSTED EFFICIENCY RATIO
|
|
|
|
||||
Non-interest expense (GAAP)
|
$
|
95,185
|
|
|
$
|
90,014
|
|
Exclude acquisition-related expenses
|
(1,142
|
)
|
|
(2,148
|
)
|
||
Exclude COVID-19 expenses
|
(239
|
)
|
|
—
|
|
||
Exclude CDI amortization
|
(2,001
|
)
|
|
(2,052
|
)
|
||
Exclude state/municipal tax expense
|
(984
|
)
|
|
(945
|
)
|
||
Exclude REO loss
|
(100
|
)
|
|
123
|
|
||
Adjusted non-interest expense (non-GAAP)
|
$
|
90,719
|
|
|
$
|
84,992
|
|
|
|
|
|
||||
Net interest income (GAAP)
|
$
|
119,258
|
|
|
$
|
116,104
|
|
Non-interest income (GAAP)
|
19,165
|
|
|
18,125
|
|
||
Total revenue
|
138,423
|
|
|
134,229
|
|
||
Exclude net gain on sale of securities
|
(78
|
)
|
|
(1
|
)
|
||
Exclude net change in valuation of financial instruments carried at fair value
|
4,596
|
|
|
(11
|
)
|
||
Adjusted revenue (non-GAAP)
|
$
|
142,941
|
|
|
$
|
134,217
|
|
|
|
|
|
||||
Efficiency ratio (GAAP)
|
68.76
|
%
|
|
67.06
|
%
|
||
Adjusted efficiency ratio (non-GAAP)
|
63.47
|
%
|
|
63.32
|
%
|
|
|
|
|
|
|
|
Percentage Change
|
||||||||||
|
Mar 31, 2020
|
|
Dec 31, 2019
|
|
Mar 31, 2019
|
|
Prior Year End
|
|
Prior Year
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||
Owner-occupied
|
$
|
1,024,089
|
|
|
$
|
980,021
|
|
|
$
|
869,634
|
|
|
4.5
|
%
|
|
17.8
|
%
|
Investment properties
|
2,007,537
|
|
|
2,024,988
|
|
|
1,838,328
|
|
|
(0.9
|
)
|
|
9.2
|
|
|||
Small balance CRE
|
591,783
|
|
|
613,484
|
|
|
619,646
|
|
|
(3.5
|
)
|
|
(4.5
|
)
|
|||
Multifamily real estate
|
400,206
|
|
|
388,388
|
|
|
300,684
|
|
|
3.0
|
|
|
33.1
|
|
|||
Construction, land and land development:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial construction
|
205,476
|
|
|
210,668
|
|
|
181,888
|
|
|
(2.5
|
)
|
|
13.0
|
|
|||
Multifamily construction
|
250,410
|
|
|
233,610
|
|
|
183,203
|
|
|
7.2
|
|
|
36.7
|
|
|||
One- to four-family construction
|
534,956
|
|
|
544,308
|
|
|
514,410
|
|
|
(1.7
|
)
|
|
4.0
|
|
|||
Land and land development
|
232,506
|
|
|
245,530
|
|
|
271,038
|
|
|
(5.3
|
)
|
|
(14.2
|
)
|
|||
Commercial business:
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial business
|
1,357,817
|
|
|
1,364,650
|
|
|
1,199,930
|
|
|
(0.5
|
)
|
|
13.2
|
|
|||
Small business scored
|
807,539
|
|
|
772,657
|
|
|
738,665
|
|
|
4.5
|
|
|
9.3
|
|
|||
Agricultural business, including secured by farmland
|
330,257
|
|
|
337,271
|
|
|
339,472
|
|
|
(2.1
|
)
|
|
(2.7
|
)
|
|||
One- to four-family residential
|
881,387
|
|
|
925,531
|
|
|
942,477
|
|
|
(4.8
|
)
|
|
(6.5
|
)
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer—home equity revolving lines of credit
|
521,618
|
|
|
519,336
|
|
|
532,600
|
|
|
0.4
|
|
|
(2.1
|
)
|
|||
Consumer—other
|
140,163
|
|
|
144,915
|
|
|
160,682
|
|
|
(3.3
|
)
|
|
(12.8
|
)
|
|||
Total loans receivable
|
$
|
9,285,744
|
|
|
$
|
9,305,357
|
|
|
$
|
8,692,657
|
|
|
(0.2
|
)%
|
|
6.8
|
%
|
|
Three Months Ended
|
||||||
|
Mar 31, 2020
|
|
Mar 31, 2019
|
||||
Commercial real estate
|
$
|
76,359
|
|
|
$
|
92,183
|
|
Multifamily real estate
|
10,171
|
|
|
3,733
|
|
||
Construction and land
|
369,613
|
|
|
231,744
|
|
||
Commercial business
|
199,873
|
|
|
137,142
|
|
||
Agricultural business
|
31,261
|
|
|
30,483
|
|
||
One-to four- family residential
|
31,041
|
|
|
31,186
|
|
||
Consumer
|
67,357
|
|
|
62,370
|
|
||
Total loan originations (excluding loans held for sale)
|
$
|
785,675
|
|
|
$
|
588,841
|
|
|
Mar 31, 2020
|
|
Dec 31, 2019
|
|
Mar 31, 2019
|
|
Percentage Change
|
|||||||||||||
|
Amount
|
|
Percentage
|
|
Amount
|
|
Amount
|
|
Prior Year End
|
|
Prior Year Qtr
|
|||||||||
Washington
|
$
|
4,350,273
|
|
|
46.7
|
%
|
|
$
|
4,364,764
|
|
|
$
|
4,329,759
|
|
|
(0.3
|
)%
|
|
0.5
|
%
|
California
|
2,140,895
|
|
|
23.1
|
|
|
2,129,789
|
|
|
1,581,654
|
|
|
0.5
|
|
|
35.4
|
|
|||
Oregon
|
1,664,652
|
|
|
17.9
|
|
|
1,650,704
|
|
|
1,639,427
|
|
|
0.8
|
|
|
1.5
|
|
|||
Idaho
|
524,663
|
|
|
5.7
|
|
|
530,016
|
|
|
524,705
|
|
|
(1.0
|
)
|
|
—
|
|
|||
Utah
|
52,747
|
|
|
0.6
|
|
|
60,958
|
|
|
59,940
|
|
|
(13.5
|
)
|
|
(12.0
|
)
|
|||
Other
|
552,514
|
|
|
6.0
|
|
|
569,126
|
|
|
557,172
|
|
|
(2.9
|
)
|
|
(0.8
|
)
|
|||
Total loans receivable
|
$
|
9,285,744
|
|
|
100.0
|
%
|
|
$
|
9,305,357
|
|
|
$
|
8,692,657
|
|
|
(0.2
|
)%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
Percentage Change
|
||||||||||
|
Mar 31, 2020
|
|
Dec 31, 2019
|
|
Mar 31, 2019
|
|
Prior Year End
|
|
Prior Year Quarter
|
||||||||
Non-interest-bearing
|
$
|
4,107,262
|
|
|
$
|
3,945,000
|
|
|
$
|
3,676,984
|
|
|
4.1
|
%
|
|
11.7
|
%
|
Interest-bearing checking
|
1,331,860
|
|
|
1,280,003
|
|
|
1,174,169
|
|
|
4.1
|
|
|
13.4
|
|
|||
Regular savings accounts
|
1,997,265
|
|
|
1,934,041
|
|
|
1,865,852
|
|
|
3.3
|
|
|
7.0
|
|
|||
Money market accounts
|
1,846,844
|
|
|
1,769,194
|
|
|
1,495,948
|
|
|
4.4
|
|
|
23.5
|
|
|||
Interest-bearing transaction & savings accounts
|
5,175,969
|
|
|
4,983,238
|
|
|
4,535,969
|
|
|
3.9
|
|
|
14.1
|
|
|||
Total core deposits
|
9,283,231
|
|
|
8,928,238
|
|
|
8,212,953
|
|
|
4.0
|
|
|
13.0
|
|
|||
Interest-bearing certificates
|
1,166,306
|
|
|
1,120,403
|
|
|
1,163,276
|
|
|
4.1
|
|
|
0.3
|
|
|||
Total deposits
|
$
|
10,449,537
|
|
|
$
|
10,048,641
|
|
|
$
|
9,376,229
|
|
|
4.0
|
%
|
|
11.4
|
%
|
|
Mar 31, 2020
|
|
Dec 31, 2019
|
|
Mar 31, 2019
|
|
Percentage Change
|
|||||||||||||
|
Amount
|
|
Percentage
|
|
Amount
|
|
Amount
|
|
Prior Year End
|
|
Prior Year Quarter
|
|||||||||
Washington(1)
|
$
|
6,037,864
|
|
|
57.8
|
%
|
|
$
|
5,861,809
|
|
|
$
|
5,604,567
|
|
|
3.0
|
%
|
|
7.7
|
%
|
Oregon
|
2,093,738
|
|
|
20.0
|
|
|
2,006,163
|
|
|
1,906,132
|
|
|
4.4
|
|
|
9.8
|
|
|||
California
|
1,828,064
|
|
|
17.5
|
|
|
1,698,289
|
|
|
1,402,213
|
|
|
7.6
|
|
|
30.4
|
|
|||
Idaho
|
489,871
|
|
|
4.7
|
|
|
482,380
|
|
|
463,317
|
|
|
1.6
|
|
|
5.7
|
|
|||
Total deposits
|
$
|
10,449,537
|
|
|
100.0
|
%
|
|
$
|
10,048,641
|
|
|
$
|
9,376,229
|
|
|
4.0
|
%
|
|
11.4
|
%
|
(1)
|
Includes brokered deposits.
|
|
Three Months Ended March 31, 2020
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Average Balance
|
|
Interest and Dividends
|
|
Yield/
Cost (3)
|
|
Average Balance
|
|
Interest and Dividends
|
|
Yield/
Cost (3)
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held for sale loans
|
$
|
152,627
|
|
|
$
|
1,520
|
|
|
4.01
|
%
|
|
$
|
98,005
|
|
|
$
|
1,121
|
|
|
4.64
|
%
|
Mortgage loans
|
7,310,115
|
|
|
92,454
|
|
|
5.09
|
|
|
6,833,933
|
|
|
88,602
|
|
|
5.26
|
|
||||
Commercial/agricultural loans
|
1,884,006
|
|
|
22,357
|
|
|
4.77
|
|
|
1,703,503
|
|
|
22,812
|
|
|
5.43
|
|
||||
Consumer and other loans
|
163,098
|
|
|
2,595
|
|
|
6.40
|
|
|
183,451
|
|
|
2,920
|
|
|
6.46
|
|
||||
Total loans (1)
|
9,509,846
|
|
|
118,926
|
|
|
5.03
|
|
|
8,818,892
|
|
|
115,455
|
|
|
5.31
|
|
||||
Mortgage-backed securities
|
1,354,585
|
|
|
9,137
|
|
|
2.71
|
|
|
1,392,118
|
|
|
10,507
|
|
|
3.06
|
|
||||
Other securities
|
458,116
|
|
|
2,887
|
|
|
2.53
|
|
|
484,134
|
|
|
3,479
|
|
|
2.91
|
|
||||
Interest-bearing deposits with banks
|
92,659
|
|
|
393
|
|
|
1.71
|
|
|
44,757
|
|
|
289
|
|
|
2.62
|
|
||||
FHLB stock
|
26,522
|
|
|
322
|
|
|
4.88
|
|
|
31,761
|
|
|
266
|
|
|
3.40
|
|
||||
Total investment securities
|
1,931,882
|
|
|
12,739
|
|
|
2.65
|
|
|
1,952,770
|
|
|
14,541
|
|
|
3.02
|
|
||||
Total interest-earning assets
|
11,441,728
|
|
|
131,665
|
|
|
4.63
|
|
|
10,771,662
|
|
|
129,996
|
|
|
4.89
|
|
||||
Non-interest-earning assets
|
1,193,256
|
|
|
|
|
|
|
1,031,591
|
|
|
|
|
|
||||||||
Total assets
|
$
|
12,634,984
|
|
|
|
|
|
|
$
|
11,803,253
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing checking accounts
|
$
|
1,266,647
|
|
|
469
|
|
|
0.15
|
|
|
$
|
1,153,949
|
|
|
475
|
|
|
0.17
|
|
||
Savings accounts
|
2,039,857
|
|
|
1,755
|
|
|
0.35
|
|
|
1,854,123
|
|
|
1,920
|
|
|
0.42
|
|
||||
Money market accounts
|
1,743,118
|
|
|
2,439
|
|
|
0.56
|
|
|
1,490,326
|
|
|
2,251
|
|
|
0.61
|
|
||||
Certificates of deposit
|
1,124,994
|
|
|
4,087
|
|
|
1.46
|
|
|
1,253,613
|
|
|
3,997
|
|
|
1.29
|
|
||||
Total interest-bearing deposits
|
6,174,616
|
|
|
8,750
|
|
|
0.57
|
|
|
5,752,011
|
|
|
8,643
|
|
|
0.61
|
|
||||
Non-interest-bearing deposits
|
3,965,380
|
|
|
—
|
|
|
—
|
|
|
3,605,922
|
|
|
—
|
|
|
—
|
|
||||
Total deposits
|
10,139,996
|
|
|
8,750
|
|
|
0.35
|
|
|
9,357,933
|
|
|
8,643
|
|
|
0.37
|
|
||||
Other interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FHLB advances
|
405,429
|
|
|
2,064
|
|
|
2.05
|
|
|
534,238
|
|
|
3,476
|
|
|
2.64
|
|
||||
Other borrowings
|
124,771
|
|
|
116
|
|
|
0.37
|
|
|
118,008
|
|
|
60
|
|
|
0.21
|
|
||||
Junior subordinated debentures
|
147,944
|
|
|
1,477
|
|
|
4.02
|
|
|
140,212
|
|
|
1,713
|
|
|
4.95
|
|
||||
Total borrowings
|
678,144
|
|
|
3,657
|
|
|
2.17
|
|
|
792,458
|
|
|
5,249
|
|
|
2.69
|
|
||||
Total funding liabilities
|
10,818,140
|
|
|
12,407
|
|
|
0.46
|
|
|
10,150,391
|
|
|
13,892
|
|
|
0.56
|
|
||||
Other non-interest-bearing liabilities (2)
|
212,162
|
|
|
|
|
|
|
151,937
|
|
|
|
|
|
||||||||
Total liabilities
|
11,030,302
|
|
|
|
|
|
|
10,302,328
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
1,604,682
|
|
|
|
|
|
|
1,500,925
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
12,634,984
|
|
|
|
|
|
|
$
|
11,803,253
|
|
|
|
|
|
||||||
Net interest income/rate spread
|
|
|
$
|
119,258
|
|
|
4.17
|
%
|
|
|
|
$
|
116,104
|
|
|
4.33
|
%
|
||||
Net interest margin
|
|
|
|
|
4.19
|
%
|
|
|
|
|
|
4.37
|
%
|
||||||||
Additional Key Financial Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
|
|
|
0.54
|
%
|
|
|
|
|
|
1.15
|
%
|
||||||||
Return on average equity
|
|
|
|
|
4.23
|
|
|
|
|
|
|
9.01
|
|
||||||||
Average equity / average assets
|
|
|
|
|
12.70
|
|
|
|
|
|
|
12.72
|
|
||||||||
Average interest-earning assets / average interest-bearing liabilities
|
|
|
|
|
166.97
|
|
|
|
|
|
|
164.59
|
|
||||||||
Average interest-earning assets / average funding liabilities
|
|
|
|
|
105.76
|
|
|
|
|
|
|
106.12
|
|
||||||||
Non-interest income / average assets
|
|
|
|
|
0.61
|
|
|
|
|
|
|
0.62
|
|
||||||||
Non-interest expense / average assets
|
|
|
|
|
3.03
|
|
|
|
|
|
|
3.09
|
|
||||||||
Efficiency ratio (4)
|
|
|
|
|
68.76
|
|
|
|
|
|
|
67.06
|
|
||||||||
Adjusted efficiency ratio (5)
|
|
|
|
|
63.47
|
|
|
|
|
|
|
63.32
|
|
(1)
|
Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans.
|
(2)
|
Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures.
|
(3)
|
Yields and costs have not been adjusted for the effect of tax-exempt interest.
|
(4)
|
Non-interest expense divided by the total of net interest income (before provision for loan losses) and non-interest income.
|
(5)
|
Adjusted non-interest expense divided by adjusted revenue. These represent non-GAAP financial measures. See the non-GAAP reconciliation tables above under "Executive Overview—Non-GAAP Financial Measures."
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL INFORMATION
|
|
|
|
|
|
|
||||||
(dollars in thousands)
|
|
|
|
|
|
|
||||||
|
|
Quarters Ended
|
||||||||||
CHANGE IN THE
|
|
Mar 31, 2020
|
|
Dec 31, 2019
|
|
Mar 31, 2019
|
||||||
ALLOWANCE FOR CREDIT LOSSES - LOANS
|
|
|
|
|
|
|
||||||
Balance, beginning of period
|
|
$
|
100,559
|
|
|
$
|
97,801
|
|
|
$
|
96,485
|
|
Beginning balance adjustment for adoption of Topic 326
|
|
7,812
|
|
|
—
|
|
|
—
|
|
|||
Provision for credit losses - loans
|
|
21,713
|
|
|
4,000
|
|
|
2,000
|
|
|||
Recoveries of loans previously charged off:
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
167
|
|
|
199
|
|
|
21
|
|
|||
Construction and land
|
|
—
|
|
|
—
|
|
|
22
|
|
|||
One- to four-family real estate
|
|
148
|
|
|
159
|
|
|
43
|
|
|||
Commercial business
|
|
205
|
|
|
225
|
|
|
23
|
|
|||
Agricultural business, including secured by farmland
|
|
1,750
|
|
|
10
|
|
|
—
|
|
|||
Consumer
|
|
96
|
|
|
61
|
|
|
110
|
|
|||
|
|
2,366
|
|
|
654
|
|
|
219
|
|
|||
Loans charged off:
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
(100
|
)
|
|
—
|
|
|
(431
|
)
|
|||
Multifamily real estate
|
|
(66
|
)
|
|
—
|
|
|
—
|
|
|||
Construction and land
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|||
One- to four-family real estate
|
|
(64
|
)
|
|
—
|
|
|
—
|
|
|||
Commercial business
|
|
(1,384
|
)
|
|
(1,180
|
)
|
|
(590
|
)
|
|||
Agricultural business, including secured by farmland
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||
Consumer
|
|
(348
|
)
|
|
(667
|
)
|
|
(371
|
)
|
|||
|
|
(1,962
|
)
|
|
(1,896
|
)
|
|
(1,396
|
)
|
|||
Net charge-offs
|
|
404
|
|
|
(1,242
|
)
|
|
(1,177
|
)
|
|||
Balance, end of period
|
|
$
|
130,488
|
|
|
$
|
100,559
|
|
|
$
|
97,308
|
|
Net charge-offs / Average loans receivable
|
|
0.004
|
%
|
|
(0.013
|
)%
|
|
(0.013
|
)%
|
|
Three months ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Change Amount
|
|
Change Percent
|
|||||||
Deposit fees and other service charges
|
$
|
9,803
|
|
|
$
|
12,618
|
|
|
$
|
(2,815
|
)
|
|
(22.3
|
)%
|
Mortgage banking operations
|
10,191
|
|
|
3,415
|
|
|
6,776
|
|
|
198.4
|
|
|||
Bank owned life insurance
|
1,050
|
|
|
1,276
|
|
|
(226
|
)
|
|
(17.7
|
)
|
|||
Miscellaneous
|
2,639
|
|
|
804
|
|
|
1,835
|
|
|
228.2
|
|
|||
|
23,683
|
|
|
18,113
|
|
|
5,570
|
|
|
30.8
|
|
|||
Net gain on sale of securities
|
78
|
|
|
1
|
|
|
77
|
|
|
nm
|
|
|||
Net change in valuation of financial instruments carried at fair value
|
(4,596
|
)
|
|
11
|
|
|
(4,607
|
)
|
|
nm
|
|
|||
Total non-interest income
|
$
|
19,165
|
|
|
$
|
18,125
|
|
|
$
|
1,040
|
|
|
5.7
|
|
|
For the Three Months Ended March 31,
|
|||||||||||||
|
2020
|
|
2019
|
|
Change Amount
|
|
Change Percent
|
|||||||
Salaries and employee benefits
|
$
|
59,908
|
|
|
$
|
54,640
|
|
|
$
|
5,268
|
|
|
9.6
|
%
|
Less capitalized loan origination costs
|
(5,806
|
)
|
|
(4,849
|
)
|
|
(957
|
)
|
|
19.7
|
|
|||
Occupancy and equipment
|
13,107
|
|
|
13,766
|
|
|
(659
|
)
|
|
(4.8
|
)
|
|||
Information/computer data services
|
5,810
|
|
|
5,326
|
|
|
484
|
|
|
9.1
|
|
|||
Payment and card processing expenses
|
4,240
|
|
|
3,984
|
|
|
256
|
|
|
6.4
|
|
|||
Professional and legal expenses
|
1,919
|
|
|
2,434
|
|
|
(515
|
)
|
|
(21.2
|
)
|
|||
Advertising and marketing
|
1,827
|
|
|
1,529
|
|
|
298
|
|
|
19.5
|
|
|||
Deposit insurance expense
|
1,635
|
|
|
1,418
|
|
|
217
|
|
|
15.3
|
|
|||
State/municipal business and use taxes
|
984
|
|
|
945
|
|
|
39
|
|
|
4.1
|
|
|||
REO operations
|
100
|
|
|
(123
|
)
|
|
223
|
|
|
(181.3
|
)
|
|||
Amortization of core deposit intangibles
|
2,001
|
|
|
2,052
|
|
|
(51
|
)
|
|
(2.5
|
)
|
|||
Provision for credit losses - unfunded loan commitments
|
1,722
|
|
|
—
|
|
|
1,722
|
|
|
nm
|
|
|||
Miscellaneous
|
6,357
|
|
|
6,744
|
|
|
(387
|
)
|
|
(5.7
|
)
|
|||
|
93,804
|
|
|
87,866
|
|
|
5,938
|
|
|
6.8
|
|
|||
COVID-19 expenses
|
239
|
|
|
—
|
|
|
239
|
|
|
nm
|
|
|||
Acquisition-related expenses
|
1,142
|
|
|
2,148
|
|
|
(1,006
|
)
|
|
(46.8
|
)
|
|||
Total non-interest expense
|
$
|
95,185
|
|
|
$
|
90,014
|
|
|
$
|
5,171
|
|
|
5.7
|
%
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
||||||
Nonaccrual Loans: (1)
|
|
|
|
|
|
||||||
Secured by real estate:
|
|
|
|
|
|
||||||
Commercial
|
$
|
8,512
|
|
|
$
|
5,952
|
|
|
$
|
5,734
|
|
Multifamily
|
—
|
|
|
85
|
|
|
—
|
|
|||
Construction and land
|
1,393
|
|
|
1,905
|
|
|
3,036
|
|
|||
One- to four-family
|
3,045
|
|
|
3,410
|
|
|
1,538
|
|
|||
Commercial business
|
25,027
|
|
|
23,015
|
|
|
3,614
|
|
|||
Agricultural business, including secured by farmland
|
495
|
|
|
661
|
|
|
2,507
|
|
|||
Consumer
|
1,812
|
|
|
2,473
|
|
|
2,181
|
|
|||
|
40,284
|
|
|
37,501
|
|
|
18,610
|
|
|||
Loans more than 90 days delinquent, still on accrual:
|
|
|
|
|
|
|
|
|
|||
Secured by real estate:
|
|
|
|
|
|
|
|
|
|||
Commercial
|
24
|
|
|
89
|
|
|
—
|
|
|||
Construction and land
|
1,407
|
|
|
332
|
|
|
—
|
|
|||
One- to four-family
|
1,089
|
|
|
877
|
|
|
640
|
|
|||
Commercial business
|
77
|
|
|
401
|
|
|
1
|
|
|||
Agricultural business, including secured by farmland
|
461
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
320
|
|
|
398
|
|
|
42
|
|
|||
|
3,378
|
|
|
2,097
|
|
|
683
|
|
|||
Total non-performing loans
|
43,662
|
|
|
39,598
|
|
|
19,293
|
|
|||
REO, net (2)
|
2,402
|
|
|
814
|
|
|
2,611
|
|
|||
Other repossessed assets held for sale
|
47
|
|
|
122
|
|
|
50
|
|
|||
Total non-performing assets
|
$
|
46,111
|
|
|
$
|
40,534
|
|
|
$
|
21,954
|
|
|
|
|
|
|
|
||||||
Total non-performing loans to loans before allowance for credit losses
/ allowance for loan losses
|
0.47
|
%
|
|
0.43
|
%
|
|
0.22
|
%
|
|||
Total non-performing loans to total assets
|
0.34
|
%
|
|
0.31
|
%
|
|
0.16
|
%
|
|||
Total non-performing assets to total assets
|
0.36
|
%
|
|
0.32
|
%
|
|
0.19
|
%
|
|||
|
|
|
|
|
|
||||||
Restructured loans performing under their restructured terms (3)
|
$
|
6,423
|
|
|
$
|
6,466
|
|
|
$
|
13,036
|
|
|
|
|
|
|
|
||||||
Loans 30-89 days past due and on accrual (4)
|
$
|
39,974
|
|
|
$
|
20,178
|
|
|
$
|
28,972
|
|
(1)
|
Includes $6.6 million of nonaccrual TDR loans at March 31, 2020. For the three months ended March 31, 2020, interest income was reduced by $472,000 as a result of nonaccrual loan activity, which includes the reversal of $222,000 of accrued interest as of the date the loan was placed on nonaccrual. There was no interest income recognized on nonaccrual loans for the three months ended March 31, 2020.
|
(2)
|
Real estate acquired by us as a result of foreclosure or by deed-in-lieu of foreclosure is classified as REO until it is sold. When property is acquired, it is recorded at the estimated fair value of the property, less expected selling costs. Subsequent to foreclosure, the property is carried at the lower of the foreclosed amount or net realizable value. Upon receipt of a new appraisal and market analysis, the carrying value is written down through the establishment of a specific reserve to the anticipated sales price, less selling and holding costs.
|
(3)
|
These loans were performing under their restructured repayment terms at the dates indicated.
|
|
Three Months Ended
|
||||||
|
Mar 31, 2020
|
|
Mar 31, 2019
|
||||
Balance, beginning of period
|
$
|
814
|
|
|
$
|
2,611
|
|
Additions from loan foreclosures
|
1,588
|
|
|
—
|
|
||
Balance, end of period
|
$
|
2,402
|
|
|
$
|
2,611
|
|
|
|
Actual
|
|
Minimum to be Categorized as "Adequately Capitalized"
|
|
Minimum to be Categorized as “Well-Capitalized”
|
|||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Amount
|
|||||||||
Banner Corporation—consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk-weighted assets
|
|
$
|
1,397,202
|
|
|
12.98
|
%
|
|
$
|
860,978
|
|
|
8.00
|
%
|
|
$
|
1,076,223
|
|
|
10.00
|
%
|
Tier 1 capital to risk-weighted assets
|
|
1,275,806
|
|
|
11.85
|
|
|
645,734
|
|
|
6.00
|
|
|
645,734
|
|
|
6.00
|
|
|||
Tier 1 leverage capital to average assets
|
|
1,275,806
|
|
|
10.45
|
|
|
488,124
|
|
|
4.00
|
|
|
n/a
|
|
|
n/a
|
|
|||
Common equity tier 1 capital
|
|
1,132,306
|
|
|
10.52
|
|
|
484,300
|
|
|
4.50
|
|
|
n/a
|
|
|
n/a
|
|
|||
Banner Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk-weighted assets
|
|
1,331,615
|
|
|
12.59
|
|
|
846,284
|
|
|
8.00
|
|
|
1,057,856
|
|
|
10.00
|
|
|||
Tier 1 capital to risk-weighted assets
|
|
1,212,733
|
|
|
11.46
|
|
|
634,713
|
|
|
6.00
|
|
|
846,284
|
|
|
8.00
|
|
|||
Tier 1 leverage capital to average assets
|
|
1,212,733
|
|
|
10.18
|
|
|
476,371
|
|
|
4.00
|
|
|
595,464
|
|
|
5.00
|
|
|||
Common equity tier 1 capital
|
|
1,212,733
|
|
|
11.46
|
|
|
476,035
|
|
|
4.50
|
|
|
687,606
|
|
|
6.50
|
|
|||
Islanders Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk-weighted assets
|
|
31,693
|
|
|
16.99
|
|
|
14,923
|
|
|
8.00
|
|
|
18,654
|
|
|
10.00
|
|
|||
Tier 1 capital to risk-weighted assets
|
|
29,398
|
|
|
15.76
|
|
|
11,193
|
|
|
6.00
|
|
|
14,923
|
|
|
8.00
|
|
|||
Tier 1 leverage capital to average assets
|
|
29,398
|
|
|
10.05
|
|
|
11,706
|
|
|
4.00
|
|
|
14,632
|
|
|
5.00
|
|
|||
Common equity tier 1 capital
|
|
29,398
|
|
|
15.76
|
|
|
8,394
|
|
|
4.50
|
|
|
12,125
|
|
|
6.50
|
|
|
|
Estimated Increase (Decrease) in
|
|||||||||||||||||||
Change (in Basis Points) in Interest Rates (1)
|
|
Net Interest Income
Next 12 Months
|
|
Net Interest Income
Next 24 Months
|
|
Economic Value of Equity
|
|||||||||||||||
+400
|
|
$
|
31,287
|
|
|
7.2
|
%
|
|
$
|
99,072
|
|
|
11.7
|
%
|
|
$
|
(82,595
|
)
|
|
(3.6
|
)%
|
+300
|
|
32,230
|
|
|
7.4
|
|
|
97,861
|
|
|
11.6
|
|
|
24,300
|
|
|
1.1
|
|
|||
+200
|
|
27,055
|
|
|
6.2
|
|
|
81,968
|
|
|
9.7
|
|
|
99,800
|
|
|
4.4
|
|
|||
+100
|
|
17,083
|
|
|
3.9
|
|
|
51,497
|
|
|
6.1
|
|
|
109,397
|
|
|
4.8
|
|
|||
0
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
-25
|
|
(4,816
|
)
|
|
(1.1
|
)
|
|
(14,935
|
)
|
|
(1.8
|
)
|
|
(45,973
|
)
|
|
(2.0
|
)
|
(1)
|
Assumes an instantaneous and sustained uniform change in market interest rates at all maturities; however, no rates are allowed to go below zero. The targeted Federal Funds Rate was between 0.00% and 0.25% at March 31, 2020.
|
|
Within
6 Months
|
|
After
6 Months
Within
1 Year
|
|
After
1 Year
Within
3 Years
|
|
After
3 Years
Within
5 Years
|
|
After
5 Years
Within
10 Years
|
|
Over
10 Years
|
|
Total
|
||||||||||||||
Interest-earning assets: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction loans
|
$
|
794,925
|
|
|
$
|
70,792
|
|
|
$
|
121,213
|
|
|
$
|
26,560
|
|
|
$
|
12,779
|
|
|
$
|
1,874
|
|
|
$
|
1,028,143
|
|
Fixed-rate mortgage loans
|
319,587
|
|
|
242,806
|
|
|
771,977
|
|
|
464,599
|
|
|
385,444
|
|
|
21,253
|
|
|
2,205,666
|
|
|||||||
Adjustable-rate mortgage loans
|
1,216,470
|
|
|
437,462
|
|
|
1,255,110
|
|
|
607,564
|
|
|
148,629
|
|
|
11
|
|
|
3,665,246
|
|
|||||||
Fixed-rate mortgage-backed securities
|
229,236
|
|
|
185,315
|
|
|
318,638
|
|
|
161,895
|
|
|
244,468
|
|
|
35,595
|
|
|
1,175,147
|
|
|||||||
Adjustable-rate mortgage-backed securities
|
144,215
|
|
|
10,827
|
|
|
38,345
|
|
|
5,857
|
|
|
4,924
|
|
|
—
|
|
|
204,168
|
|
|||||||
Fixed-rate commercial/agricultural loans
|
156,958
|
|
|
119,045
|
|
|
239,322
|
|
|
99,540
|
|
|
82,975
|
|
|
23,151
|
|
|
720,991
|
|
|||||||
Adjustable-rate commercial/agricultural loans
|
1,006,593
|
|
|
25,960
|
|
|
74,566
|
|
|
40,465
|
|
|
15,333
|
|
|
—
|
|
|
1,162,917
|
|
|||||||
Consumer and other loans
|
490,585
|
|
|
52,858
|
|
|
67,147
|
|
|
15,003
|
|
|
15,564
|
|
|
36,213
|
|
|
677,370
|
|
|||||||
Investment securities and interest-earning deposits
|
129,105
|
|
|
18,430
|
|
|
65,555
|
|
|
57,548
|
|
|
295,592
|
|
|
122,399
|
|
|
688,629
|
|
|||||||
Total rate sensitive assets
|
4,487,674
|
|
|
1,163,495
|
|
|
2,951,873
|
|
|
1,479,031
|
|
|
1,205,708
|
|
|
240,496
|
|
|
11,528,277
|
|
|||||||
Interest-bearing liabilities: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Regular savings
|
207,310
|
|
|
139,722
|
|
|
451,846
|
|
|
321,149
|
|
|
462,022
|
|
|
415,215
|
|
|
1,997,264
|
|
|||||||
Interest checking accounts
|
118,894
|
|
|
54,445
|
|
|
193,325
|
|
|
160,278
|
|
|
292,631
|
|
|
512,288
|
|
|
1,331,861
|
|
|||||||
Money market deposit accounts
|
188,902
|
|
|
122,938
|
|
|
406,784
|
|
|
298,575
|
|
|
443,942
|
|
|
385,703
|
|
|
1,846,844
|
|
|||||||
Certificates of deposit
|
633,477
|
|
|
254,350
|
|
|
251,773
|
|
|
24,434
|
|
|
2,478
|
|
|
—
|
|
|
1,166,512
|
|
|||||||
FHLB advances
|
97,000
|
|
|
50,000
|
|
|
100,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247,000
|
|
|||||||
Junior subordinated debentures
|
147,944
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,944
|
|
|||||||
Retail repurchase agreements
|
128,764
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128,764
|
|
|||||||
Total rate sensitive liabilities
|
1,522,291
|
|
|
621,455
|
|
|
1,403,728
|
|
|
804,436
|
|
|
1,201,073
|
|
|
1,313,206
|
|
|
6,866,189
|
|
|||||||
Excess (deficiency) of interest-sensitive assets over interest-sensitive liabilities
|
$
|
2,965,383
|
|
|
$
|
542,040
|
|
|
$
|
1,548,145
|
|
|
$
|
674,595
|
|
|
$
|
4,635
|
|
|
$
|
(1,072,710
|
)
|
|
$
|
4,662,088
|
|
Cumulative excess of interest-sensitive assets
|
$
|
2,965,383
|
|
|
$
|
3,507,423
|
|
|
$
|
5,055,568
|
|
|
$
|
5,730,163
|
|
|
$
|
5,734,798
|
|
|
$
|
4,662,088
|
|
|
$
|
4,662,088
|
|
Cumulative ratio of interest-earning assets to interest-bearing liabilities
|
294.80
|
%
|
|
263.61
|
%
|
|
242.51
|
%
|
|
231.67
|
%
|
|
203.27
|
%
|
|
167.90
|
%
|
|
167.90
|
%
|
|||||||
Interest sensitivity gap to total assets
|
23.20
|
%
|
|
4.24
|
%
|
|
12.11
|
%
|
|
5.28
|
%
|
|
0.04
|
%
|
|
(8.39
|
)%
|
|
36.48
|
%
|
|||||||
Ratio of cumulative gap to total assets
|
23.20
|
%
|
|
27.44
|
%
|
|
39.56
|
%
|
|
44.83
|
%
|
|
44.87
|
%
|
|
36.48
|
%
|
|
36.48
|
%
|
(1)
|
Adjustable-rate assets are included in the period in which interest rates are next scheduled to adjust rather than in the period in which they are due to mature, and fixed-rate assets are included in the period in which they are scheduled to be repaid based upon scheduled amortization, in each case adjusted to take into account estimated prepayments. Mortgage loans and other loans are not reduced for allowances for loan losses and non-performing loans. Mortgage loans, mortgage-backed securities, other loans and investment securities are not adjusted for deferred fees, unamortized acquisition premiums and discounts.
|
(2)
|
Adjustable-rate liabilities are included in the period in which interest rates are next scheduled to adjust rather than in the period they are due to mature. Although regular savings, demand, interest checking, and money market deposit accounts are subject to immediate withdrawal, based on historical experience management considers a substantial amount of such accounts to be core deposits having significantly longer maturities. For the purpose of the gap analysis, these accounts have been assigned decay rates to reflect their longer effective maturities. If all of these accounts had been assumed to be short-term, the one-year cumulative gap of interest-sensitive assets would have been $(836,000), or (6.54)% of total assets at March 31, 2020. Interest-bearing liabilities for this table exclude certain non-interest-bearing deposits which are included in the average balance calculations in the table contained in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Comparison of Results of Operations for the Three Months Ended March 31, 2020 and 2019” of this report on Form 10-Q.
|
(a)
|
Evaluation of Disclosure Controls and Procedures: An evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) was carried out under the supervision and with the participation of our Chief Executive Officer, Chief Financial Officer and several other members of our senior management as of the end of the period covered by this report. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2020, our disclosure controls and procedures were effective in ensuring that the information required to be disclosed by us in the reports it files or submits under the Exchange Act is (i) accumulated and communicated to our management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
|
(b)
|
Changes in Internal Controls Over Financial Reporting: In the quarter ended March 31, 2020, there was no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting other than the adoption of internal controls over financial reporting due to the implementation of FASB ASU 2016-13, Financial Instruments: Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended and commonly referred to as CECL.
|
Period
|
|
Total Number of Common Shares Purchased
|
|
Average Price Paid per Common Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced authorization
|
|
Maximum Number of Remaining Shares that May be Purchased as Part of Publicly Announced Authorization
|
|||||
January 1, 2020 - January 31, 2020
|
|
663
|
|
|
$
|
52.01
|
|
|
—
|
|
|
1,118,151
|
|
February 1, 2020 - February 28, 2020
|
|
420,249
|
|
|
53.21
|
|
|
414,780
|
|
|
703,371
|
|
|
March 1, 2020 - March 31, 2020
|
|
225,460
|
|
|
45.33
|
|
|
210,000
|
|
|
493,371
|
|
|
Total for quarter
|
|
646,372
|
|
|
50.46
|
|
|
624,780
|
|
|
493,371
|
|
Exhibit
|
Index of Exhibits
|
|
|
3{a}
|
|
|
|
3{b}
|
|
|
|
3{c}
|
|
|
|
3{d}
|
|
|
|
10{a}
|
|
|
|
10{b}
|
|
|
|
10{c}
|
|
|
|
10{d}
|
|
|
|
10{e}
|
|
|
|
10{f}
|
|
|
|
10{g}
|
|
|
|
10{h}
|
|
|
|
10{i}
|
|
|
|
10{j}
|
|
|
|
10{k}
|
|
|
|
10{l}
|
|
|
|
10{m}
|
|
|
|
10{n}
|
|
Banner Corporation
|
|
|
|
|
May 7, 2020
|
/s/ Mark J. Grescovich
|
|
|
Mark J. Grescovich
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
May 7, 2020
|
/s/ Peter J. Conner
|
|
|
Peter J. Conner
|
|
|
Executive Vice President, Treasurer and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 of Banner Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
May 7, 2020
|
|
/s/Mark J. Grescovich
|
|
Mark J. Grescovich
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 of Banner Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
May 7, 2020
|
|
/s/ Peter J. Conner
|
|
Peter J. Conner
|
|
|
Chief Financial Officer
|
•
|
the report fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, and
|
•
|
the information contained in the report fairly presents, in all material respects, the Company’s financial condition and results of operations as of the dates and for the periods presented in the financial statements included in such report.
|
May 7, 2020
|
|
/s/ Mark J. Grescovich
|
|
|
Mark J. Grescovich
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 7, 2020
|
|
/s/ Peter J. Conner
|
|
|
Peter J. Conner
|
|
|
Chief Financial Officer
|