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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Feb. 20, 2019	Jun. 29, 2018
Document and Entity Information
Entity Registrant Name	Midland States Bancorp, Inc.
Entity Central Index Key	0001466026
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 728,830,258
Entity Common Stock, Shares Outstanding		24,050,292
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 210,780	$ 214,519
Federal funds sold	2,920	683
Cash and cash equivalents	213,700	215,202
Investment securities available for sale, at fair value	657,451	450,525
Equity securities, at fair value	3,334
Loans	4,137,551	3,226,678
Allowance for loan losses	(20,903)	(16,431)
Total loans, net	4,116,648	3,210,247
Loans held for sale, at fair value	30,401	50,089
Premises and equipment, net	94,840	76,162
Other real estate owned	3,483	5,708
Nonmarketable equity securities	42,472	34,796
Accrued interest receivable	16,560	11,715
Mortgage servicing rights, at lower of cost or fair value	53,447	56,352
Mortgage servicing rights held for sale	3,545	10,176
Intangible assets	37,376	16,932
Goodwill	164,673	98,624
Cash surrender value of life insurance policies	138,783	113,366
Accrued income taxes receivable	8,809	8,358
Deferred tax assets, net	1,251	12,024
Other assets	50,900	42,425
Total assets	5,637,673	4,412,701
Deposits:
Noninterest-bearing	972,164	724,443
Interest-bearing	3,102,006	2,406,646
Total deposits	4,074,170	3,131,089
Short-term borrowings	124,235	156,126
FHLB advances and other borrowings	640,631	496,436
Subordinated debt	94,134	93,972
Trust preferred debentures	47,794	47,330
Accrued interest payable	4,855	2,531
Other liabilities	43,329	35,672
Total liabilities	5,029,148	3,963,156
Shareholders' Equity:
Preferred stock, Series H, $2 par value, $1,000 per share liquidation value; 2,636 shares authorized, issued and outstanding at December 31, 2018 and 2017, respectively	2,781	2,970
Common stock, $0.01 par value; 40,000,000 shares authorized; 23,751,798 and 19,122,049 shares issued and outstanding at December 31, 2018 and 2017, respectively	238	191
Capital surplus	473,833	330,148
Retained earnings	133,781	114,478
Accumulated other comprehensive (loss) income	(2,108)	1,758
Total shareholders' equity	608,525	449,545
Total liabilities and shareholders' equity	$ 5,637,673	$ 4,412,701

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Liquidation value	$ 1,000	$ 1,000
Preferred stock, par value	$ 2	$ 2
Preferred stock, shares authorized	2,636	2,636
Preferred stock, shares issued	2,636	2,636
Preferred stock, shares outstanding	2,636	2,636
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	23,751,798	19,122,049
Common stock, shares outstanding	23,751,798	19,122,049

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans:
Taxable	$ 194,688	$ 135,898	$ 102,211
Tax exempt	3,327	1,255	1,155
Loans held for sale	1,749	2,297	3,320
Investment securities:
Taxable	13,894	6,763	9,294
Tax exempt	4,553	3,741	3,634
Nonmarketable equity securities	1,980	1,194	687
Federal funds sold and cash investments	3,176	1,965	948
Total interest income	223,367	153,113	121,249
Interest expense:
Deposits	22,054	12,132	8,936
Short-term borrowings	698	379	303
FHLB advances and other borrowings	11,347	4,594	1,057
Subordinated debt	6,056	4,054	3,858
Trust preferred debentures	3,125	2,292	1,841
Total interest expense	43,280	23,451	15,995
Net interest income	180,087	129,662	105,254
Provision for loan losses	9,430	9,556	5,591
Net interest income after provision for loan losses	170,657	120,106	99,663
Noninterest income:
Commercial FHA revenue	10,980	17,752	22,064
Residential mortgage banking revenue	5,729	9,119	13,389
Wealth management revenue	20,513	13,340	8,091
Service charges on deposit accounts	10,440	5,975	3,904
Interchange revenue	10,674	5,353	3,750
FDIC loss-sharing expense			(1,661)
Gain on sales of investment securities, net	464	222	14,702
Other-than-temporary impairment on investment securities			(824)
Gain on sales of other real estate owned	544	145	113
Other income	12,447	7,456	8,529
Total noninterest income	71,791	59,362	72,057
Noninterest expense:
Salaries and employee benefits	97,410	78,712	66,293
Occupancy and equipment	18,914	14,659	13,080
Data processing	26,062	15,171	10,658
FDIC insurance	2,209	1,806	1,707
Professional	12,782	14,359	8,049
Marketing	4,757	3,290	2,733
Communications	4,405	2,473	2,150
Loan expense	2,033	1,954	1,957
Other real estate owned	524	800	935
Amortization of intangible assets	6,956	3,325	2,147
Loss on mortgage servicing rights held for sale	458	4,059
Other expense	15,133	12,389	11,580
Total noninterest expense	191,643	152,997	121,289
Income before income taxes	50,805	26,471	50,431
Income taxes	11,384	10,415	18,889
Net income	39,421	16,056	31,542
Preferred stock dividends and premium amortization	141	83
Net income available to common shareholders	$ 39,280	$ 15,973	$ 31,542
Per common share data:
Basic earnings per common share	$ 1.69	$ 0.89	$ 2.22
Diluted earnings per common share	$ 1.66	$ 0.87	$ 2.17
Weighted average common shares outstanding	23,130,475	17,781,631	14,130,552
Weighted average diluted common shares outstanding	23,549,025	18,283,214	14,428,839

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 39,421	$ 16,056	$ 31,542
Investment securities available for sale:
Unrealized (losses) gains that occurred during the period	(4,845)	443	3,556
Reclassification adjustment for securities transferred from held to maturity to available for sale		3,366
Reclassification adjustment for realized net gains on sales of investment securities included in net income	(464)	(222)	(14,702)
Income tax effect	1,443	(1,104)	4,469
Change in investment securities available for sale, net of tax	(3,866)	2,483	(6,677)
Investment securities held to maturity:
Amortization of unrealized gain on investment securities transferred from available-for-sale		(188)	(66)
Income tax effect		73	29
Change in investment securities held to maturity, net of tax		(115)	(37)
Cash flow hedges:
Change in fair value of interest rate swap			126
Income tax effect			(51)
Change in cash flow hedges, net of tax			75
Other comprehensive (loss) income, net of tax	(3,866)	2,368	(6,639)
Total comprehensive income	$ 35,555	$ 18,424	$ 24,903

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Alpine Bank Common stock	Alpine Bank Capital surplus	Alpine Bank	CedarPoint Common stock	CedarPoint Capital surplus	CedarPoint	Centrue Preferred stock	Centrue Common stock	Centrue Capital surplus	Centrue	Preferred stock	Common stock	Capital surplus	Retained earnings	Accumulated other comprehensive (loss) income	Total
Beginning Balance at Dec. 31, 2015												$ 118	$ 135,909	$ 90,824	$ 6,029	$ 232,880
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income														31,542		31,542
Compensation expense for stock option grants													492			492
Amortization of restricted stock awards													555			555
Common dividends declared														(9,853)		(9,853)
Initial public offering of 3,590,065 shares of common stock, net of issuance costs												36	71,439			71,475
Issuance of common stock under employee benefit plans												1	1,317			1,318
Other comprehensive income (loss)															(6,639)	(6,639)
Ending Balance at Dec. 31, 2016												155	209,712	112,513	(610)	321,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income														16,056		16,056
Compensation expense for stock option grants													548			548
Amortization of restricted stock awards													836			836
Preferred dividends declared														(184)		(184)
Preferred stock, premium amortization											$ (101)			101		101
Common dividends declared														(14,008)		(14,008)
Acquisition				$ 1	$ 3,350	$ 3,351	$ 3,071	$ 32	$ 112,480	$ 115,583
Issuance of common stock under employee benefit plans												3	3,222			3,225
Other comprehensive income (loss)															2,368	2,368
Ending Balance at Dec. 31, 2017											2,970	191	330,148	114,478	1,758	449,545
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income														39,421		39,421
Compensation expense for stock option grants													334			334
Amortization of restricted stock awards													1,199			1,199
Preferred dividends declared														(330)		(330)
Preferred stock, premium amortization											(189)			189		189
Common dividends declared														(19,977)		(19,977)
Acquisition	$ 45	$ 139,876	$ 139,921
Issuance of common stock under employee benefit plans												2	2,276			2,278
Other comprehensive income (loss)															(3,866)	(3,866)
Ending Balance at Dec. 31, 2018											$ 2,781	$ 238	$ 473,833	$ 133,781	$ (2,108)	$ 608,525

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Common dividend declared, per share	$ 0.88	$ 0.80	$ 0.72
IPO
Common stock shares			3,590,065

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 39,421	$ 16,056	$ 31,542
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	9,430	9,556	5,591
Depreciation on premises and equipment	6,166	5,014	5,080
Amortization of intangible assets	6,956	3,325	2,147
FDIC loss-sharing expense			1,661
Compensation expense for stock option grants	334	548	492
Amortization of restricted stock awards	1,199	836	555
Increase in cash surrender value of life insurance	(3,579)	(2,791)	(2,150)
Provision for deferred income taxes	10,522	12,032	14,541
Investment securities amortization, net	3,898	1,960	1,133
Other-than-temporary impairment on investment securities			824
Gain on sales of investment securities, net	(464)	(222)	(14,702)
Gain on sales of other real estate owned	(544)	(145)	(113)
Impairment of other real estate owned	301	244	247
Origination of loans held for sale	(557,305)	(778,626)	(1,176,716)
Proceeds from sales of loans held for sale	590,282	815,471	1,184,739
Gain on loans sold and held for sale	(11,165)	(24,295)	(35,127)
Loss on disposals of premises and equipment	385	64	97
Gain on proceeds from bank-owned life insurance	(709)		(732)
Amortization of mortgage servicing rights	2,949	5,107	6,141
(Recapture) impairment of mortgage servicing rights	(449)	2,324	3,135
Loss on mortgage servicing rights held for sale	458	4,059
Net change in operating assets and liabilities:
Accrued interest receivable	(431)	(1,137)	(505)
Accrued interest payable	1,785	1,211	66
Accrued income taxes receivable	(451)	(2,496)	2,892
Other assets	(5,712)	5,189	(6,399)
Other liabilities	3,783	(2,835)	(313)
Net cash provided by operating activities	97,060	70,449	24,126
Investment securities available for sale:
Purchases	(76,289)	(259,098)	(198,680)
Sales	20,178	22,595	115,999
Maturities and payments	131,220	247,929	74,948
Investment securities held to maturity:
Purchases		(3,155)	(2,617)
Maturities		16,889	11,019
Equity Securities:
Purchases	(59)
Sales	7,733
Net increase in loans	(131,114)	(238,398)	(335,943)
Proceeds from sale of premises and equipment	33	4,286	11
Purchases of premises and equipment	(7,200)	(6,182)	(2,179)
Proceeds from sales of mortgage servicing rights held for sale	12,994
Proceeds from settlements of bank-owned life insurance	1,449		1,385
Purchase of bank-owned life insurance			(20,000)
Purchases of nonmarketable equity securities	(20,737)	(18,376)	(4,103)
Sales of nonmarketable equity securities	15,099	11,233	90
Proceeds from sales of other real estate owned	3,879	6,189	6,199
Net cash acquired (paid) in acquisitions	36,153	(18,519)	(5,191)
Net cash used in investing activities	(6,661)	(234,607)	(359,062)
Cash flows from financing activities:
Net (decrease) increase in deposits	(168,049)	(13,144)	36,718
Net (decrease) increase in short-term borrowings	(31,891)	10,135	24,019
Proceeds from FHLB borrowings	1,017,080	447,357	1,015,000
Payments made on FHLB borrowings	(886,726)	(320,857)	(817,500)
Proceeds from other borrowings		39,964
Payments made on other borrowings	(4,286)	(3,198)
Proceeds from issuance of subordinated debt		39,354
Payments made on subordinated debt			(8,000)
Cash dividends paid on preferred stock	(330)	(184)
Cash dividends paid on common stock	(19,977)	(14,008)	(9,853)
Proceeds from issuance of common stock in initial public offering, net of issuance costs			71,475
Proceeds from issuance of common stock under employee benefit plans	2,278	3,225	1,318
Net cash (used in) provided by financing activities	(91,901)	188,644	313,177
Net (decrease) increase in cash and cash equivalents	(1,502)	24,486	(21,759)
Cash and cash equivalents:
Beginning of period	215,202	190,716	212,475
End of period	213,700	215,202	190,716
Cash payments for:
Interest paid on deposits and borrowed funds	40,956	21,965	15,929
Income tax paid	580	653	1,073
Supplemental disclosures of noncash investing and financing activities:
Transfer of investment securities held to maturity to investment securities available for sale		64,520
Transfer of investment securities available for sale to equity securities	2,830
Transfer of loans to other real estate owned	1,104	3,718	$ 4,839
Transfer of premises and equipment to assets held for sale		3,988
Transfer of mortgage servicing rights at lower of cost or market to mortgage servicing rights held for sale	$ 3,649	$ 14,234

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	MIDLAND STATES BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 – Summary of Significant Accounting Policies Nature of Operations Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Its wholly-owned banking subsidiary, Midland States Bank (the “Bank”), has branches across Illinois and in Missouri, and provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management, and insurance and financial planning services. In addition, multifamily and healthcare facility FHA financing is provided through Love Funding, our non-bank subsidiary. On February 28, 2018, we completed the acquisition of Alpine Bancorporation, Inc. (“Alpine”) and its banking subsidiary, Alpine Bank & Trust Co. (“Alpine Bank”), as more fully described in Note 2 to the consolidated financial statements. Through the Alpine acquisition, we greatly expanded our commercial and retail banking presence in northern Illinois. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; residential mortgage loan originations, sales and servicing; and, from time to time, gains on sales of assets. Our income sources also include Love Funding’s commercial FHA loan origination and servicing income. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for loan losses and income tax expense. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Certain reclassifications of 2017 and 2016 amounts have been made to conform to the 2018 presentation but do not have an effect on net income. Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying consolidated financial statements. Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under the acquisition method, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired companies in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest‑bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one‑day periods, but not longer than 30 days. Investment Securities Investment securities consist of debt securities of the U.S. Treasury, government sponsored entities, states, counties, municipalities, corporations, agency mortgage‑backed securities and non‑agency mortgage‑backed securities. Securities transactions are recorded on a trade date basis. The Company classifies its securities as equity, available for sale or held to maturity at the time of purchase. Investments in stock of a publicly traded company or in mutual funds are classified as equity securities. Equity securities are recorded at fair value with unrealized gains and losses recognized in earnings. Held‑to‑maturity securities are those debt instruments which the Company has the positive intent and ability to hold until maturity. Held‑to‑maturity securities are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. All other securities are classified as available for sale. Available‑for‑sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available‑for‑sale securities are included in other comprehensive income and the related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. On a quarterly basis, the Company makes an assessment to determine whether there have been any events or circumstances to indicate that a security for which there is an unrealized loss is impaired on an other than temporary basis. This determination requires significant judgment. A decline in the fair value of any available‑for‑sale or held‑to‑maturity security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. In estimating other‑than‑temporary impairment (“OTTI”) losses, we consider the severity and duration of the impairment; the financial condition and near‑term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. Purchase premiums are amortized over the estimated life or to the earliest call date and purchase discounts are accreted over the estimated life of the related investment security as an adjustment to yield using the effective interest method. Unamortized premiums, unaccreted discounts, and early payment premiums are recognized in interest income upon disposition of the related security. Interest and dividend income are recognized when earned. Realized gains and losses from the sale of available‑for‑sale securities are determined using the specific identification method and are included in other noninterest income. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income. Nonmarketable Equity Securities Nonmarketable equity securities include the Bank’s required investments in the stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”). The Bank is a member of the FHLB system as well as its regional FRB. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock and FRB stock are both carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Non‑Purchased Credit Impaired loans (“Non-PCI loans”). Non‑PCI loans, for which the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified as loans in the consolidated balance sheets. Non‑PCI loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of any unearned discount or unamortized premium. Interest income is recorded on the accrual basis in accordance with the terms of the respective loan. Loans are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability in the normal course of business. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Loans are restored to accrual status when loans become well‑secured and management believes full collectability of principal and interest is probable. Nonrefundable loan fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees or costs are recognized as an adjustment to interest income over the contractual life of the loans using the interest method or taken into income when the related loans are paid off or sold. The amortization of loan fees or costs is discontinued when a loan is placed on nonaccrual status. Lease Financing. The Company provides financing leases to small businesses for purchases of business equipment. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 15% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the leased property is delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximate level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Residual value is the estimated fair market value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, we rely on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. Our estimates are reviewed continuously to ensure reasonableness; however, the amounts we will ultimately realize could differ from the estimated amounts. If the review results in a lower estimate than had been previously established, a determination is made as to whether the decline in estimated residual value is other‑than‑temporary. If the decline in estimated unguaranteed residual value is judged to be other‑than‑temporary, the accounting for the transaction is revised using the changed estimate. The resulting reduction in the investment is recognized as a loss in the period in which the estimate is changed. An upward adjustment of the estimated residual value is not recorded. Purchased Credit Impaired loans (“PCI loans”). We account for PCI loans under ASC 310‑30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“acquired impaired loan accounting”) when we acquire loans deemed to be impaired or when there is evidence of credit deterioration since their origination and it is probable at the date of acquisition that we would be unable to collect all contractually required payments. Revolving credit agreements, such as commercial lines of credit and home equity lines, and lease financings are excluded from PCI loans. For PCI loans, we (i) determine the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (ii) estimate the amount and timing of undiscounted expected principal and interest payments including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loans and such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is initially determined by discounting expected cash flows. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income on a level‑yield basis over the estimated life of the acquired loans. The excess of expected cash flows at acquisition over the initial fair value of the PCI loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. Subsequent to acquisition, the Company aggregates loans into pools of loans with common credit risk characteristics such as loan type and risk rating. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated usually result in a provision for loan losses and the establishment of an allowance for loan losses. As the accretable yield increases or decreases from changes in cash flow expectations, the offset is a decrease or increase to the nonaccretable difference or an addition to accretable yield. The accretable yield is measured at each financial reporting date based on information then currently available and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. Under acquired impaired loan accounting, PCI loans are generally considered accruing and performing loans as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans. Impaired loans. A loan is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans include loans on nonaccrual status, any loan past due 90 days or more and still accruing interest, and performing troubled debt restructured loans. Income from loans on nonaccrual status is recognized to the extent cash is received and when the loan’s principal balance is deemed collectible. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A loan is considered collateral dependent when repayment of the loan is based solely on the liquidation of the collateral. Fair value, where possible, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the fair value may be adjusted based on specific events, such as if deterioration of quality of the collateral comes to our attention as part of our problem loan monitoring process, or if discussions with the borrower lead us to believe the last appraised value no longer reflects the actual market for the collateral. The impairment amount on a collateral‑dependent loan is charged‑off to the allowance if deemed not collectible and the impairment amount on a loan that is not collateral‑dependent is set up as a specific reserve. Troubled Debt Restructurings. A loan is classified as a troubled debt restructuring when we grant a concession to a borrower experiencing financial difficulties. These concessions may include a reduction of the interest rate, principal or accrued interest, extension of the maturity date or other actions intended to minimize potential losses. Loans restructured at a market rate of a new loan with comparable risk at the time the loan is modified may be excluded from restructured loan disclosures in years subsequent to the restructuring if the loans are in compliance with their modified terms. A loan that has been placed on nonaccrual that is subsequently restructured will usually remain on nonaccrual status until the borrower is able to demonstrate repayment performance in compliance with the restructured terms for a sustained period, typically for six months. A loan that has not been placed on nonaccrual may be restructured and such loan may remain on accrual status after such restructuring. In these circumstances, the borrower has made payments before and after the restructuring. Generally, this restructuring involves a reduction in the loan interest rate and/or a change to interest‑only payments for a period of time. A restructured loan is considered impaired despite its accrual status and a specific reserve is calculated based on the present value of expected cash flows discounted at the loan’s effective interest rate or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Allowance for Loan Losses. The allowance for loan losses (“allowance”) provides for probable losses in the loan portfolio that have been identified with specific customer relationships and for probable losses believed to be inherent in the remainder of the loan portfolio but that have not been specifically identified. The allowance is comprised of specific allowances (assessed for loans that have known credit weaknesses), general allowances based on historical loan loss experience for each loan type and other factors for imprecision in the subjective nature of the general allowance methodology and an allowance for PCI loans. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is appropriate to absorb probable losses inherent in the loan portfolio. Our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Our regulators may require the Company to recognize additions to the allowance based on their judgments related to information available to them at the time of their examinations. Acquired non‑PCI and PCI loans are recorded at their estimated fair value at the date of acquisition, with the estimated fair value including a component for estimated credit losses. These loans, however, may require an allowance subsequent to their acquisition. An allowance may be set aside in the future for acquired non‑PCI loans based on our allowance methodology for non‑PCI loans. An allowance may be set aside in the future for PCI loans if the PCI loan pools experience a decrease in expected cash flows as compared to those projected at the acquisition date. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired commercial, commercial real estate, construction and land development loans, (ii) allocations, by loan classes, on loan portfolios based on historical loan loss experience and on other factors for the imprecision in the overall allowance methodology and (iii) valuation allowances on PCI loan pools based on decreases in expected cash flows. The first element reflects the Company’s establishment of valuation allowances based upon probable losses identified during the systematic review of impaired commercial, commercial real estate, construction and land development loans in the non‑purchased credit impaired loan portfolios. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, expected future cash flows and discounted collateral exposure. The Company measures the investment in an impaired loan based on one of three methods: the loan’s observable market price; the fair value of the collateral; or the present value of expected future cash flows discounted at the loan’s effective interest rate. It is the Company’s general policy to, at least annually, obtain new appraisals on impaired loans that are primarily secured by real estate. When the Company determines that the net realizable value of the collateral is less than the carrying value of an impaired loan on nonaccrual status and a portion is deemed not collectible, the portion of the impairment that is deemed not collectible is charged off and deducted from the allowance. The remaining carrying value of the impaired loan is classified as a nonperforming loan. When the Company determines that the net realizable value of the collateral is less than the carrying value of an impaired loan but believes it is probable it will recover this impairment, the Company establishes a valuation allowance for such impairment. The second element relates to allocations, by loan classes, on loan portfolios based on historical loan loss experience and on other factors for the imprecision in the overall allowance methodology. All loans are not evaluated individually for impairment and any individually evaluated loans determined not to be impaired are segmented into groups based on similar risk characteristics, as described above. Historical loss rates for each risk group, which are updated quarterly, are quantified using all recorded loan charge‑offs and recoveries and changes in specific allowances on loans. These historical loss rates for each risk group are used as the starting point to determine the level of the allowance. The Company’s methodology incorporates an estimated loss emergence period for each loan category. The loss emergence period is the period of time from when a borrower experiences a loss event and when the actual loss is recognized in the financial statements, generally at the time of initial charge‑off of the loan balance. The Company’s methodology also includes qualitative risk factors that allow management to adjust its estimate of losses based on the most recent information available and to address other limitations in the quantitative component that is based on historical loss rates. Such risk factors are generally reviewed and updated quarterly, as appropriate, and are adjusted to reflect actual changes and anticipated changes in national and local economic conditions and developments, the volume and severity of delinquent and internally classified loans, loan concentrations, assessment of trends in collateral values, and changes in lending policies and procedures, including underwriting standards and collections, charge‑off and recovery practices. The third element relates to PCI loans. PCI loans are aggregated into pools based on common risk characteristics. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors including changes in property values of collateral dependent loans, default rates and loss severities. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to PCI loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in, first, a reduction in the allowance allocated to PCI loans for the particular pool to the extent an allowance has been previously recorded, and then as an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in current and subsequent periods. Loans Held for Sale Loans held for sale consist of residential and commercial FHA mortgage loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method better reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. The changes in the fair value of loans held for sale are reflected in commercial FHA revenue and residential mortgage banking revenue on the consolidated statements of income. Mortgage Repurchase Reserve The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to investors are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis. The Company’s agreements to sell residential mortgage loans usually require general representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability, which if subsequently untrue or breached, could require the Company to indemnify or repurchase certain loans affected. The balance in the repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Company could incur from repurchasing a loan, as well as loss reimbursements, indemnification, and other “make whole” settlement resolutions. Refer to Note 22 in the consolidated financial statements for additional information on the mortgage repurchase reserve. Premises and Equipment Premises, furniture and equipment, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation expense is computed principally on the straight‑line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight‑line basis over the shorter of the life of the asset or the lease term. Estimated useful lives of premises and equipment range from 10 to 40 years and from 3 to 10 years, respectively. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. We periodically review the carrying value of our long‑lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount. Other Real Estate Owned Other real estate owned (“OREO”) represents properties acquired through foreclosure or other proceedings and is initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost basis. After foreclosure, OREO is held for sale and is carried at the lower of cost or fair value less estimated costs of disposal. Any write‑down to fair value at the time of transfer to OREO is charged to the allowance for loan losses. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income and expense from the operations of OREO and decreases in valuations are included in OREO expense in the consolidated statements of income. Goodwill and Intangible Assets Goodwill resulting from a business combination is generally determined as the excess of the fair value of consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. Other intangible assets, which consist of core deposit and acquired customer relationship intangible assets, are typically amortized over a period ranging from 1 to 20 years using an accelerated method of amortization. On a periodic basis, we evaluate events and circumstances that may indicate a change in the recoverability of the carrying value. Mortgage Servicing Rights When loans are sold with servicing retained, a servicing rights asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. As the Company has not elected to subsequently measure servicing assets under the fair value measurement method, the Company follows the amortization method. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. The Company periodically evaluates its mortgage servicing rights asset for impairment. Impairment is assessed based on the fair value of net servicing cash flows at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are determined based on current market conditions. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the mortgage servicing rights exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other‑than‑temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write‑down of the mortgage servicing rights asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write‑down permanently reduces the carrying value of the mortgage servicing rights asset and valuation allowance, precluding subsequent recoveries. We recognize revenue from servicing residential and commercial FHA mortgages as earned based on the specific contractual terms. This revenue, along with changes in impairment on servicing rights, is reported in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Mortgage Servicing Rights Held for Sale Mortgage servicing rights held for sale consist of residential mortgage servicing rights that management has committed to a plan to sell and has the ability to sell them to a buyer in their present condition. Mortgage servicing rights held for sale are carried at the lower of their carrying value or fair value less estimated costs to sell. Decreases in the valuation of mortgage servicing rights held for sale are included in loss on mortgage servicing rights held for sale in the consolidated statements of income. Cash Surrender Value of Life Insurance Policies We have purchased life insurance policies on the lives of certain officers and key employees and are the owner and beneficiary of the policies. These policies provide an efficient form of funding for long‑term retirement and other employee benefits costs. These policies are recorded as cash surrender value of life insurance policies in the consolidated balance sheets at each policy’s respective cash surrender value, with changes in value recorded in noninterest income in the consolidated statements of income. Derivative Financial Instruments All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. On the date the derivative contract is entered into, the derivative is designated as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability “cash flow” hedge. Changes in the fair value of a derivative that is highly effective as—and that is designated and qualifies as—a cash flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable‑rate asset or liability are recorded in earnings). We formally document all relationships between hedging instruments and hedged items, as well as the risk‑management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, hedge accounting is prospectively discontinued, as discussed below. Hedge accounting is prospectively discontinued when (a) it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is no longer designated as a hedge instrument, because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were in accumulated other comprehensive income will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the consolidated balance sheet, with subsequent changes in its fair value recognized in current‑period earnings. The Company also enters into interest rate lock commitments, which are agreements to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. Interest rate lock commitments for mortgage loans that will be held for resale are carried at fair value on the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue. The Company also has forward loan sales commitments related to its interest rate lock commitments and its loans held for sale. Forward loan sales commitments that meet the definition of a derivative are recorded at fair value in the consolidated balance sheet with changes in fair value reflected in commercial FHA and residential mortgage banking income. Credit‑Related Financial Instruments In the ordinary course of business, the Company has entered into credit‑related financial instruments consisting of commitments to extend credit, commercial letters of credit and standby letters of credit. The notional amount of these commitments is not reflected in the consolidated financial statements until they are funded. A liability for losses related to unfunded commitments is maintained by the Company at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the consolidated balance sheets. The determination of the adequacy of the liability is based on an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Company’s allowance for loan losses, as discussed above. Net adjustments to the liability for unfunded commitments are included in other noninterest expense in the consolidated statements of income. The liability for unfunded commitments totaled $1.2 million and $670,000 at December 31, 2018 and 2017, respectively. Income Taxes We file consolidated federal and state income tax returns, with each organization computing its taxes on a separate return basis. The provision for income taxes is based on income as reported in the consolidated financial statements. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. The deferred tax assets and liabilities are computed based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. When tax returns are filed, it is highly certain that some positions taken will be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more‑likely than‑not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. Interest and penalties associated with unrecognized tax benefits are to be classified as additional income taxes in the consolidated statements of income. The Company evaluated its tax positions and concluded that it had taken no uncertain tax positions that require adjustment in the consolidated financial statements. Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. This amendment superseded and replaced nearly all existing revenue recognition guidance, including industry-specific guidance, established a new control-based revenue recognition model, changed the basis for deciding when revenue is recognized over time or at a point in time, provided new and more detailed guidance on specific topics and expanded and improved disclosures about revenue. The impact of applying Topic 606 to the Company’s consolidated financial statements was determined to be immaterial on the measurement or recognition of revenue. The Company elected to implement this standard using the modified retrospective approach, with the cumulative effect recorded as an adjustment to opening retained earnings at January 1, 2018. Since the impact of applying the standard was determined to be immaterial, the Company did not record a cumulative effect adjustment to beginning retained earnings on January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with previous GAAP. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The recognition of revenue associated with these noninterest income streams did not change significantly from current practice upon adoption of Topic 606. The noninterest income streams considered in-scope by Topic 606 are discussed in Note 25 in the consolidated financial statements. Stock Compensation Plans Compensation cost for share‑based payment awards is based on the fair value of the award at the date of grant. The fair value of stock options is estimated at the date of grant using a Black‑Scholes option pricing model. The fair value of restricted stock is determined based on the Company’s current market price on the date of grant. Compensation cost is recognized in the consolidated financial statements on a straight‑line basis over the requisite service period, which is generally defined as the vesting period. Additionally, the Company accounts for forfeitures as they occur. Comprehensive Income Comprehensive income is defined as net income plus transactions and other occurrences that are the result of non‑owner changes in equity. Non‑owner equity changes include unrealized gains and losses on available for sale securities and changes in the fair value of cash flow hedges. These are components of comprehensive income and do not have an impact on the Company’s net income. Earnings per Share Earnings per share are calculated utilizing the two‑class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. Impact of Recently Issued Accounting Standards FASB ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.” – In January 2016, the FASB issued this standard which is intended to improve the recognition and measurement of financial instruments. This standard, among other things: (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The adoption of ASU 2016-1 on January 1, 2018 did not have a material impact on its consolidated financial statements. FASB ASU 2016-02, “Leases (Topic 842)” – In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This update revises the model to assess how a lease should be classified and provides guidance for lessees and lessors, when presenting right-of-use assets and lease liabilities on the balance sheet. Under the new guidance, lessees will be required to recognize the following for all leases, with the exception of short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. This update became effective for the Company on January 1, 2019. In July 2018, the FASB issued supplementary ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides for an additional transition method allowing for a modified retrospective adoption approach where the guidance would only be applied to existing leases in effect at the adoption date and new leases going forward, with a cumulative effect adjustment to retained earnings as of the adoption date and additional required disclosures regarding leasing arrangements only for those periods after adoption. This update also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company has elected the practical expedients permitted by ASU 2018-11. The Company developed and is currently executing on a project plan for implementing the provisions of the new lease standard. At the adoption date, the Company reported increased assets and liabilities of approximately $12.1 million on its consolidated statement of financial condition as a result of recognizing right-of-use assets and lease liabilities related to non-cancelable operating lease agreements for office space, which currently are not recorded on its consolidated statement of financial condition. The Company does not expect the adoption of this guidance will be material to its Consolidated Statement of Income. FASB ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” – In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”).” The objective of this update is to improve financial reporting by providing timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will use forward-looking information to better understand their credit loss estimates. For public companies that are filers with the SEC, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted for any organization for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As previously disclosed, the Company has established a cross-functional governance structure, which oversees overall strategy for implementation of Topic 326. Additionally, a working group was formed and has developed a project plan focused on understanding the ASU, researching issues, data requirements, technology solutions and future state processes. The project plan is targeting data and model validation completion during the first half of 2019, with parallel processing of our existing allowance for loan losses model with CECL until implementation. The Company continues to focus on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls and considering various reporting disclosures. The Company also continues to believe that the adoption of the standard will result in an overall increase in the allowance for loan losses to cover credit losses over the estimated life of the financial assets. However, the magnitude of the increase in its allowance for loan losses at the adoption date will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. FASB ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” – In August 2017, the FASB issued this standard, the objectives of which are to: (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. This standard is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not utilize hedge accounting. However, the Company is currently evaluating this standard to determine whether its provisions will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users. FASB ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” – In February 2018, ASU 2018-02 was issued following the enactment of the Tax Cuts and Jobs Act (the “Tax Act”), which changed the Company’s federal income tax rate from 35% to 21%. This standard allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The standard is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company adopted this standard in the first quarter of 2018. The impact of this update on the Company’s consolidated financial statements was not material. FASB ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” – In August 2018, the FASB issued ASU No. 2018-13 to improve the disclosure requirements on fair value measurements. The amendment removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements. The update also adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update become effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is not expected to have a material impact. FASB ASU No. 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract”– In August 2018, the FASB issued ASU No. 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update become effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements.

ACQUISITIONS

12 Months Ended

Dec. 31, 2018

ACQUISITIONS

ACQUISITIONS

Note 2 – Acquisitions

Alpine Bancorporation, Inc.

On February 28, 2018, the Company completed its acquisition of Alpine and its banking subsidiary, Alpine Bank, which operated 19 locations in northern Illinois. In the aggregate, the Company acquired Alpine for consideration valued at approximately $173.2 million, which consisted of approximately $33.3 million in cash and the issuance of 4,463,200 shares of the Company’s common stock. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while $22.4 million of transaction and integration costs have been expensed as incurred through December 31, 2018.

Management’s preliminary valuation of the tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, and the resulting allocation of the consideration paid for the allocation is reflected in the table below. Prior to the end of the one-year measurement period for finalizing the consideration paid allocation, if information becomes available which would indicate adjustments are required to the allocation, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined. During the fourth quarter of 2018, the Company updated its preliminary valuation of mortgage servicing rights, which required a measurement period adjustment of $629,000 to increase goodwill.

Centrue Financial Corporation

On June 9, 2017, the Company completed its acquisition of Centrue and its banking subsidiary, Centrue Bank, which operated 20 full-service banking centers located principally in northern Illinois. In the aggregate, the Company acquired Centrue for approximately $176.6 million, which consisted of approximately $61.0 million in cash and the issuance of 3,219,238 shares of the Company’s common stock, 181 shares of Series G preferred stock and 2,635.5462 shares of Series H preferred stock. This acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while $17.9 million of transaction and integration costs were expensed as incurred.

As of June 30, 2018, the Company finalized its valuation of all assets acquired and liabilities assumed in its acquisition of Centrue, resulting in no material change to acquisition accounting adjustments. A summary of the fair value of the assets acquired, liabilities assumed and resulting goodwill are included in the table below.


(dollars in thousands)	Alpine		Centrue
Assets acquired:
Cash and cash equivalents	$	69,459	$	42,461
Investment securities available for sale		293,428		149,013
Equity securities		8,372		—
Loans		786,186		679,582
Loans held for sale		3,416		531
Premises and equipment		18,126		17,147
Other real estate owned		53		4,983
Nonmarketable equity securities		2,038		8,168
Accrued interest receivable		4,414		2,376
Mortgage servicing rights		—		1,933
Mortgage servicing rights held for sale		3,068		—
Intangible assets		27,400		11,070
Cash surrender value of life insurance policies		22,578		36,349
Deferred tax assets, net		—		34,339
Other assets		4,770		2,256
Total assets acquired		1,243,308		990,208
Liabilities assumed:
Deposits		1,111,130		739,867
Short-term borrowings		—		14,434
FHLB advances and other borrowings		18,127		95,332
Trust preferred debentures		—		7,565
Accrued interest payable		539		275
Deferred tax liabilities, net		1,749		—
Other liabilities		4,500		3,600
Total liabilities assumed		1,136,045		861,073
Net assets acquired		107,263		129,135
Goodwill		65,964		47,444
Total consideration paid	$	173,227	$	176,579

Intangible assets:
Core deposit intangible	$	21,100	$	11,070
Customer relationship intangible		6,300		—
Total intangible assets	$	27,400	$	11,070
Estimated useful lives:
Core deposit intangible		13 years		8 years
Customer relationship intangible		13 years		N/A

Goodwill arising from the acquisitions consists largely of the synergies and economies of scale expected from combining the operations of Alpine and Centrue into the Company. The goodwill is assigned as part of the Company’s banking reporting unit. The portion of the consideration paid allocated to goodwill will not be deductible for tax purposes.

The identifiable assets acquired from Alpine and Centrue included core deposit intangibles and customer relationship intangibles, which are being amortized on an accelerated basis as shown above.

Acquired loan data for Alpine and Centrue can be found in the table below:


						Best Estimate at
						Acquisition Date of
		Fair Value		Gross Contractual		Contractual Cash
		of Acquired Loans		Amounts Receivable		Flows Not Expected
(dollars in thousands)		at Acquisition Date		at Acquisition Date		to be Collected
Alpine:
Acquired receivables subject to ASC 310-30	$		34,993	$	50,342	$	9,254
Acquired receivables not subject to ASC 310-30			751,193		774,836		4,244
Centrue:
Acquired receivables subject to ASC 310-30		$	11,381	$	20,253	$	7,227
Acquired receivables not subject to ASC 310-30			668,201		821,338		4,835

The unaudited pro-forma financial information below for years ended December 31, 2018 and 2017 gives effect to the Alpine acquisition as if it had occurred on January 1, 2017, which combines the historical results of Alpine with the Company’s consolidated statements of income, adjusted for the impact of the application of the acquisition method of accounting including loan discount accretion, intangible assets amortization, and deposit premium accretion, net of taxes. The unaudited pro-forma financial information also gives effect to the Centrue acquisition that closed on June 9, 2017 as if that transaction became effective January 1, 2017. The unaudited pro-forma financial information has been prepared for comparative purposes only and is not necessarily indicative of the results of operations had the acquisition actually occurred on January 1, 2017. No assumptions have been applied regarding revenue enhancements, expense efficiencies or asset dispositions. Only the acquisition related expenses that have been incurred as of December 31, 2018 are included in net income in the table below. Acquisition related expenses associated with Alpine that were recognized and are included in the unaudited pro-forma net income for the year ended December 31, 2018 totaled $21.5 million on a pre-tax basis.


(dollars in thousands, except per share data)	2018		2017
Revenue(1)	$	264,670	$	280,538
Net income		42,261		31,188
Diluted earnings per common share	$	1.73	$	1.28

(1)

Net interest income plus noninterest income

CedarPoint Investment Advisors, Inc.

On March 28, 2017, the Company acquired all of the outstanding capital stock of CedarPoint Investment Advisors, Inc., an SEC registered investment advisory firm, pursuant to an Agreement and Plan of Merger, dated as of March 15, 2017. CedarPoint had approximately $180.0 million of assets under administration. The Company acquired CedarPoint for $3.7 million, which consisted of the issuance of 102,000 shares of the Company’s common stock and an accrual in other liabilities of $345,000 for the fair value of 18,000 shares that will be held in a special purpose escrow account (the “escrow shares”) as additional consideration until at least March 31, 2019. Payout of the escrow shares is contingent on CedarPoint reaching certain target revenue levels. Intangible assets recognized as a result of the transaction consisted of approximately $2.4 million in goodwill and $2.0 million in customer relationship intangibles. The customer relationship intangibles are being amortized on a straight-line basis over 12 years.

CASH AND DUE FROM BANKS	12 Months Ended
CASH AND DUE FROM BANKS	Dec. 31, 2018
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS	Note 3 – Cash and Due From Banks The Bank is required to maintain cash reserves based on the level of certain of its deposits. This reserve requirement may be met by funds on deposit with the FRB and cash on hand. The required balance at December 31, 2018 and 2017 was $33.6 million and $25.0 million, respectively. The Bank maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Bank has not experienced any losses in such accounts. The Bank believes it is not exposed to any significant credit risk from cash and cash equivalents.

INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2018

INVESTMENT SECURITIES

INVESTMENT SECURITIES

Note 4 – Investment Securities

Investment securities as of December 31, 2018 and 2017 were as follows:


	2018
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
(dollars in thousands)	cost		gains		losses		value
Available for sale securities
U.S. Treasury securities	$	25,018	$	—	$	368	$	24,650
Government sponsored entity debt securities		76,554		17		887		75,684
Agency mortgage-backed securities		329,690		371		3,756		326,305
State and municipal securities		156,795		3,282		815		159,262
Corporate securities		72,302		383		1,135		71,550
Total available for sale securities	$	660,359	$	4,053	$	6,961	$	657,451
Equity securities (1)							$	3,334


	2017
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
(dollars in thousands)	cost		gains		losses		value
Available for sale securities
U.S. Treasury securities	$	28,005	$	—	$	287	$	27,718
Government sponsored entity debt securities		25,445		41		275		25,211
Agency mortgage-backed securities		233,606		882		2,101		232,387
State and municipal securities		99,449		3,632		514		102,567
Corporate securities		58,904		1,087		179		59,812
Equity securities (1)		2,715		140		25		2,830
Total available for sale securities	$	448,124	$	5,782	$	3,381	$	450,525

(1)

As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within available for sale securities and are now presented within equity securities in the consolidated balance sheet for the current period. For further discussion of this guidance, see Note 1 to the consolidated financial statements.

During 2017, the Company transferred its held to maturity (“HTM”) investment securities portfolio to investment securities available for sale (“AFS”), which had an amortized cost and fair value of $64.5 million and $67.9 million, respectively, resulting in $3.4 million of unrealized gains on investment securities available for sale at time of transfer. As a result of the Centrue acquisition discussed in Note 2 to the consolidated financial statements, the Company underwent a capital planning assessment which included transferring all HTM securities to AFS securities.

Unrealized losses and fair values for investment securities as of December 31, 2018 and 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:


	2018
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	value		loss		value		loss		value		loss
Available for sale securities
U.S. Treasury securities	$	5,012	$	1	$	19,638	$	367	$	24,650	$	368
Government sponsored entity debt securities		51,717		195		23,223		692		74,940		887
Agency mortgage-backed securities		139,115		528		126,561		3,228		265,676		3,756
State and municipal securities		15,791		146		27,692		669		43,483		815
Corporate securities		32,616		575		8,535		560		41,151		1,135
Total available for sale securities	$	244,251	$	1,445	$	205,649	$	5,516	$	449,900	$	6,961


	2017
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	value		loss		value		loss		value		loss
Available for sale securities
U.S. Treasury securities	$	19,758	$	251	$	7,960	$	36	$	27,718	$	287
Government sponsored entity debt securities		24,168		275		—		—		24,168		275
Agency mortgage-backed securities		124,192		1,500		19,530		601		143,722		2,101
State and municipal securities		29,338		331		5,889		183		35,227		514
Corporate securities		5,917		85		3,463		94		9,380		179
Equity securities(1)		2,603		25		—		—		2,603		25
Total available for sale securities	$	205,976	$	2,467	$	36,842	$	914	$	242,818	$	3,381

(1)

At December 31, 2018 and 2017, 291 and 173 investment securities available for sale, respectively, had unrealized losses with aggregate depreciation of 1.52% and 1.37%, respectively, from their amortized cost basis. The unrealized losses relate principally to the fluctuations in the current interest rate environment. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not have the intent to sell and it is not more likely than not that it will be required to sell a security in an unrealized loss position; therefore, the Company does not consider these securities to be other than temporarily impaired at December 31, 2018.

During 2018 and 2017, the Company did not recognize OTTI losses on its investment securities. During 2016, the Company determined that three non-agency mortgage-backed securities, covered by our FDIC loss share agreement, which were sold in October 2016, had OTTI of $824,000, primarily resulting from changes in expected cash flows. These amounts were recognized as losses in the consolidated statements of income.

The following is a summary of the amortized cost and fair value of available-for-sale investment securities, by maturity, at December 31, 2018. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other available-for-sale investment securities are based on final contractual maturity.


	Amortized		Fair
(dollars in thousands)	cost		value
Available for sale securities:
Within one year	$	39,092	$	39,087
After one year through five years		122,564		122,554
After five years through ten years		138,494		138,937
After ten years		30,519		30,568
Mortgage-backed securities		329,690		326,305
Total available for sale securities	$	660,359	$	657,451

Proceeds from the sale of securities available for sale were $20.2 million, $22.6 million and $116.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. Gross realized gains from the sale of securities available for sale were $542,000, $242,000 and $15.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Gross realized losses were $25,000, $20,000 and $837,000 for the years ended December 31, 2018, 2017 and 2016, respectively. On October 4, 2016, the Company sold its previously covered non-agency mortgage-backed securities which had a carrying value of $72.1 million. These securities were covered under the loss-sharing agreement we entered into with the FDIC in connection with our 2009 acquisition. This agreement was terminated on October 3, 2016. As a result of the sale, the Company realized a gain totaling $14.3 million.

Proceeds from the sale of equity securities were $7.7 million for the year ended December 31, 2018. Gross realized losses from the sale of equity securities were $53,000 and there were no gross realized gains for the year ended December 31, 2018. During the year ended December 31, 2018, the Company recognized net unrealized losses of $10,000, which was recorded in noninterest income on the consolidated statements of income.

LOANS

12 Months Ended

Dec. 31, 2018

LOANS

LOANS

Note 5 – Loans

The following table presents total loans outstanding by portfolio, which includes Non-PCI loans and PCI loans, as of December 31, 2018 and 2017:


	2018						2017
	Non-PCI		PCI				Non-PCI		PCI
(dollars in thousands)	Loans		Loans (1)		Total		Loans		Loans (1)		Total
Loans:
Commercial	$	806,027	$	4,857	$	810,884	$	553,257	$	2,673	$	555,930
Commercial real estate		1,619,903		19,252		1,639,155		1,427,076		12,935		1,440,011
Construction and land development		223,898		8,331		232,229		199,853		734		200,587
Total commercial loans		2,649,828		32,440		2,682,268		2,180,186		16,342		2,196,528
Residential real estate		569,289		8,759		578,048		447,602		5,950		453,552
Consumer		611,408		1,776		613,184		371,286		169		371,455
Lease financing		264,051		—		264,051		205,143		—		205,143
Total loans	$	4,094,576	$	42,975	$	4,137,551	$	3,204,217	$	22,461	$	3,226,678

(1)

The unpaid principal balance for PCI loans totaled $56.9 million and $32.8 million as of December 31, 2018 and 2017, respectively.

Total loans include net deferred loan fees of $11.6 million and $10.1 million at December 31, 2018 and 2017, respectively, and unearned discounts of $29.2 million and $20.7 million within the lease financing portfolio at December 31, 2018 and 2017, respectively.

At December 31, 2018 and 2017, the Company had commercial and residential loans held for sale, that were originated with the intent to sell, totaling $30.4 million and $50.1 million, respectively. During the years ended December 31, 2018 and 2017, the Company sold commercial and residential real estate loans with proceeds totaling $590.3 million and $815.5 million, respectively.

The Company monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Company monitors the performance of its loan portfolio and estimates its allowance for loan losses.

Commercial—Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment.

Commercial real estate—Loans secured by real estate occupied by the borrower for ongoing operations, including loans to borrowers engaged in agricultural production, and non-owner occupied real estate leased to one or more tenants, including commercial office, industrial, special purpose, retail and multi-family residential real estate loans.

Construction and land development—Secured loans for the construction of business and residential properties. Real estate construction loans often convert to a real estate commercial loan at the completion of the construction period. Secured development loans are made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Interest reserves may be established on real estate construction loans.

Residential real estate—Loans secured by residential properties that generally do not qualify for secondary market sale; however, the risk to return and/or overall relationship are considered acceptable to the Company. This category also includes loans whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan.

Consumer—Loans to consumers primarily for the purpose of home improvements, acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers.

Lease financing—Our equipment leasing business provides financing leases to varying types of businesses, nationwide, for purchases of business equipment and software. The financing is secured by a first priority interest in the financed assets and generally requires monthly payments.

Commercial, commercial real estate, and construction and land development loans are collectively referred to as the Company’s commercial loan portfolio, while residential real estate and consumer loans and lease financing receivables are collectively referred to as the Company’s other loan portfolio.

We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon normal terms, including collateralization and interest rates prevailing at the time, and did not involve more than the normal risk of repayment by the borrower. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates totaled $26.5 million and $22.4 million at December 31, 2018 and 2017, respectively. During 2018 and 2017, there were $11.1 million and $4.0 million, respectively, of new loans and other additions, while repayments and other reductions totaled $6.9 million and $8.1 million, respectively.

Credit Quality Monitoring

The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. Our equipment leasing business provides financing to business customers across the country.

The Company has a loan approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Company’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities.

The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Company’s Consumer Collections Group for resolution. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred.

Loans in the commercial loan portfolio tend to be larger and more complex than those in the other loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various individuals within the Company at least quarterly.

The Company maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Company also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Company.

Credit Quality Indicators

The Company uses a ten grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, and coverage and payment behavior as shown in the borrower’s financial statements. The risk grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. A summary of the Company’s loan grades (or, characteristics of the loans with each grade) is as follows:

Risk Grades 1‑6 (Acceptable Credit Quality)—All loans in Risk Grades 1 ‑ 6 are considered to be acceptable credit risks by the Company and are grouped for purposes of financial reporting. The six grades essentially represent a ranking of loans that are all viewed to be of acceptable credit quality, taking into consideration the various factors mentioned above, but with varying degrees of financial strength, debt coverage, management and factors that could impact credit quality. Business credits within Risk Grades 1 ‑ 6 range from Risk Grade 1: Excellent (factors include: excellent business credit; excellent debt capacity and coverage; outstanding management; strong guarantors; superior liquidity and net worth; favorable loan‑to‑value ratios; debt secured by cash or equivalents, or backed by the full faith and credit of the U.S. Government) to Risk Grade 6: Marginal (factors include: acceptable business credit, but with added risk due to specific industry or internal situations; uncertainty associated with performance or repayment ability).

Risk Grade 7 (Special Mention)—A business credit that is not acceptable within the Company’s loan origination criteria; cash flow may not be adequate or is continually inconsistent to service current debt; financial condition has deteriorated as company trends/management have become inconsistent; the company is slow in furnishing quality financial information; working capital needs of the company are reliant on short‑term borrowings; personal guarantees are weak and/or with little or no liquidity; the net worth of the company has deteriorated after recent or continued losses; the loan has potential weaknesses that require the Company’s close attention; payment delinquencies becoming more serious; if left uncorrected, these potential weaknesses may, at some future date, result in deterioration of repayment prospects.

Risk Grade 8 (Substandard)—A business credit that is inadequately protected by the current financial net worth and paying capacity of the obligor or of the collateral pledged, if any; management has deteriorated or has become non‑existent; quality financial information is unattainable; a high level of maintenance is required by the Company; cash flow can no longer support debt requirements; loan payments are continually and/or severely delinquent; negative net worth; personal guaranty has become insignificant; a credit that has a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. The Company still expects a full recovery of all contractual principal and interest payments; however, a possibility exists that the Company will sustain some loss if deficiencies are not corrected.

Risk Grade 9 (Substandard‑Nonaccrual)—A business credit accounted for on a nonaccrual basis that has all the weaknesses inherent in a loan classified as Risk Grade 8 with the added characteristic that the weaknesses are so pronounced that, on the basis of current financial information, conditions, and values, collection in full is highly questionable; a partial loss is possible and interest is no longer being accrued. This loan meets the definition of an impaired loan. The risk of loss requires analysis to determine whether a valuation allowance needs to be established.

Risk Grade 10 (Doubtful)—A business credit that has all the weaknesses inherent in a loan classified as Risk Grade 8 and interest is no longer being accrued, but additional deficiencies make it highly probable that liquidation will not satisfy the majority of the obligation; the primary source of repayment is nonexistent and there is doubt as to the value of the secondary source of repayment; the possibility of loss is likely, but current pending factors could strengthen the credit. This loan meets the definition of an impaired loan. A loan charge‑off is recorded when management deems an amount uncollectible; however, the Company will establish a valuation allowance for probable losses, if required.

The Company considers all loans with Risk Grades of 1 – 6 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans with Risk Grades of 7 are considered “watch credits” and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans with Risk Grades of 8 – 10 are considered problematic and require special care. Further, loans with Risk Grades of 7 – 10 are managed and monitored regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Company, which includes highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Company’s special assets group. Loans not graded are small loans that are monitored by aging status and payment activity.

The following table presents the recorded investment of commercial loans (excluding PCI loans) by risk category as of December 31, 2018 and 2017:


	2018								2017
			Commercial		Construction						Commercial		Construction
			Real		and Land						Real		and Land
(dollars in thousands)	Commercial		Estate		Development		Total		Commercial		Estate		Development		Total
Acceptable credit quality	$	748,296	$	1,536,127	$	218,798	$	2,503,221	$	510,928	$	1,384,630	$	191,872	$	2,087,430
Special mention		35,103		15,306		3,448		53,857		12,290		11,497		—		23,787
Substandard		14,139		46,976		—		61,115		27,718		14,695		—		42,413
Substandard – nonaccrual		8,489		21,494		1,171		31,154		1,266		12,482		785		14,533
Doubtful		—		—		—		—		—		—		—		—
Not graded		—		—		481		481		1,055		3,772		7,196		12,023
Total (excluding PCI)	$	806,027	$	1,619,903	$	223,898	$	2,649,828	$	553,257	$	1,427,076	$	199,853	$	2,180,186

The Company evaluates the credit quality of its other loans based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, any loan past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be impaired for purposes of credit quality evaluation. The following table presents the recorded investment of our other loans (excluding PCI loans) based on the credit risk profile of loans that are performing and loans that are impaired as of December 31, 2018 and 2017:


	2018								2017
	Residential				Lease				Residential				Lease
(dollars in thousands)	Real Estate		Consumer		Financing		Total		Real Estate		Consumer		Financing		Total
Performing	$	562,019	$	610,839	$	263,094	$	1,435,952	$	441,418	$	370,999	$	203,797	$	1,016,214
Impaired		7,270		569		957		8,796		6,184		287		1,346		7,817
Total (excluding PCI)	$	569,289	$	611,408	$	264,051	$	1,444,748	$	447,602	$	371,286	$	205,143	$	1,024,031

Impaired Loans

Impaired loans include loans on nonaccrual status, any loan past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings. Impaired loans at December 31, 2018 and 2017 do not include $43.0 million and $22.5 million, respectively, of PCI loans. The risk of credit loss on acquired loans was recognized as part of the fair value adjustment at the acquisition date.

A summary of impaired loans (excluding PCI loans) as of December 31, 2018 and 2017 is as follows:


(dollars in thousands)	2018		2017
Nonaccrual loans:
Commercial	$	8,489	$	1,266
Commercial real estate		21,494		12,482
Construction and land development		1,171		785
Residential real estate		5,894		5,204
Consumer		388		234
Lease financing		751		1,346
Total nonaccrual loans		38,187		21,317
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial		4		2,538
Commercial real estate		149		—
Construction and land development		85		—
Residential real estate		566		51
Consumer		51		53
Lease financing		206		—
Total accruing loans contractually past due 90 days or more as to interest or principal payments		1,061		2,642
Loans modified under troubled debt restructurings and still accruing:
Commercial		435		299
Commercial real estate		2,225		1,515
Construction and land development		51		58
Residential real estate		810		929
Consumer		130		—
Lease financing		—		—
Total loans modified under troubled debt restructurings and still accruing		3,651		2,801
Total impaired loans (excluding PCI)	$	42,899	$	26,760

There was no interest income recognized on nonaccrual loans during 2018, 2017 and 2016 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $1.8 million, $860,000 and $718,000 in 2018, 2017 and 2016, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $97,000, $85,000 and $339,000 in 2018, 2017 and 2016, respectively.

The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance, as of December 31, 2018 and 2017:


	2018						2017
			Unpaid		Related				Unpaid		Related
	Recorded		Principal		Valuation		Recorded		Principal		Valuation
(dollars in thousands)	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans with a valuation allowance:
Commercial	$	7,945	$	8,102	$	4,448	$	3,237	$	3,297	$	526
Commercial real estate		7,496		13,844		523		2,297		3,508		329
Construction and land development		171		171		54		103		102		10
Residential real estate		4,055		4,662		554		4,028		4,705		566
Consumer		428		444		45		266		279		29
Lease financing		766		766		361		1,064		1,064		345
Total impaired loans with a valuation allowance		20,861		27,989		5,985		10,995		12,955		1,805
Impaired loans with no related valuation allowance:
Commercial		983		4,392		—		866		5,782		—
Commercial real estate		16,372		16,921		—		11,700		17,359		—
Construction and land development		1,136		1,136		—		740		780		—
Residential real estate		3,215		3,516		—		2,156		2,380		—
Consumer		141		145		—		21		21		—
Lease financing		191		191		—		282		282		—
Total impaired loans with no related valuation allowance		22,038		26,301		—		15,765		26,604		—
Total impaired loans:
Commercial		8,928		12,494		4,448		4,103		9,079		526
Commercial real estate		23,868		30,765		523		13,997		20,867		329
Construction and land development		1,307		1,307		54		843		882		10
Residential real estate		7,270		8,178		554		6,184		7,085		566
Consumer		569		589		45		287		300		29
Lease financing		957		957		361		1,346		1,346		345
Total impaired loans (excluding PCI)	$	42,899	$	54,290	$	5,985	$	26,760	$	39,559	$	1,805

The difference between a loan’s recorded investment and the unpaid principal balance represents: (1) a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan’s principal balance and management’s assessment that the full collection of the loan balance is not likely and/or (2) payments received on nonaccrual loans that are fully applied to principal on the loan’s recorded investment as compared to being applied to principal and interest on the unpaid customer principal and interest balance. The difference between the recorded investment and the unpaid principal balance was $11.4 million and $12.8 million at December 31, 2018 and 2017, respectively.

The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the years ended December 31, 2018, 2017 and 2016 are included in the table below:


	2018				2017				2016
			Interest Income				Interest Income				Interest Income
	Average		Recognized		Average		Recognized		Average		Recognized
	Recorded		While on		Recorded		While on		Recorded		While on
(dollars in thousands)	Investment		Impaired Status		Investment		Impaired Status		Investment		Impaired Status
Impaired loans with a valuation allowance:
Commercial	$	8,359	$	30	$	2,969	$	15	$	3,974	$	15
Commercial real estate		8,082		45		5,408		70		2,379		306
Construction and land development		175		3		83		4		87		7
Residential real estate		3,855		41		3,854		38		3,782		30
Consumer		360		—		299		—		221		—
Lease financing		766		—		1,064		—		1,331		—
Total impaired loans with a valuation allowance		21,597		119		13,677		127		11,774		358
Impaired loans with no related valuation allowance:
Commercial		1,233		—		2,369		—		5,604		1
Commercial real estate		16,253		22		16,822		—		16,847		17
Construction and land development		1,152		—		815		—		—		—
Residential real estate		3,348		22		2,055		3		1,179		2
Consumer		95		—		13		—		26		—
Lease financing		191		—		282		—		—		—
Total impaired loans with no related valuation allowance		22,272		44		22,356		3		23,656		20
Total impaired loans:
Commercial		9,592		30		5,338		15		9,578		16
Commercial real estate		24,335		67		22,230		70		19,226		323
Construction and land development		1,327		3		898		4		87		7
Residential real estate		7,203		63		5,909		41		4,961		32
Consumer		455		—		312		—		247		—
Lease financing		957		—		1,346		—		1,331		—
Total impaired loans (excluding PCI)	$	43,869	$	163	$	36,033	$	130	$	35,430	$	378

The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2018:


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
(dollars in thousands)	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	4,013	$	2,581	$	4	$	8,489	$	15,087	$	790,940	$	806,027
Commercial real estate		1,667		945		149		21,494		24,255		1,595,648		1,619,903
Construction and land development		989		—		85		1,171		2,245		221,653		223,898
Residential real estate		1,292		728		566		5,894		8,480		560,809		569,289
Consumer		5,211		2,533		51		388		8,183		603,225		611,408
Lease financing		4,322		932		206		751		6,211		257,840		264,051
Total loans (excluding PCI)	$	17,494	$	7,719	$	1,061	$	38,187	$	64,461	$	4,030,115	$	4,094,576

The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2017:


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
(dollars in thousands)	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	3,282	$	177	$	2,538	$	1,266	$	7,263	$	545,994	$	553,257
Commercial real estate		3,116		630		—		12,482		16,228		1,410,848		1,427,076
Construction and land development		1,953		—		—		785		2,738		197,115		199,853
Residential real estate		897		632		51		5,204		6,784		440,818		447,602
Consumer		2,824		1,502		53		234		4,613		366,673		371,286
Lease financing		392		—		—		1,346		1,738		203,405		205,143
Total loans (excluding PCI)	$	12,464	$	2,941	$	2,642	$	21,317	$	39,364	$	3,164,853	$	3,204,217

Troubled Debt Restructurings

A loan is categorized as a troubled debt restructuring (“TDR”) if a concession is granted to provide for a reduction of either interest or principal due to deterioration in the financial condition of the borrower. TDRs can take the form of a reduction of the stated interest rate, splitting a loan into separate loans with market terms on one loan and concessionary terms on the other loans, receipts of assets from a debtor in partial or full satisfaction of a loan, the extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk, the reduction of the face amount or maturity of the debt as stated in the instrument or other agreement, the reduction of accrued interest, the release of a personal guarantee in a bankruptcy situation or any other concessionary type of renegotiated debt. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received.

Loans modified as TDRs for commercial and commercial real estate loans generally consist of allowing commercial borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans’ contractual terms. TDRs that continue to accrue interest and are greater than $50,000 are individually evaluated for impairment, on a quarterly basis, and transferred to nonaccrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default. The allowance for loan losses on TDRs totaled $557,000 and $240,000 as of December 31, 2018 and 2017, respectively. The Company had no unfunded commitments in connection with TDRs at December 31, 2018 and 2017.

The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio (excluding PCI loans) as of December 31, 2018 and 2017:


	2018						2017
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	435	$	406	$	841	$	299	$	—	$	299
Commercial real estate		2,225		9,103		11,328		1,515		9,915		11,430
Construction and land development		51		—		51		58		—		58
Residential real estate		810		853		1,663		929		282		1,211
Consumer		130		—		130		—		—		—
Lease financing		—		—		—		—		—		—
Total loans (excluding PCI)	$	3,651	$	10,362	$	14,013	$	2,801	$	10,197	$	12,998

(1)

These loans are still accruing interest.

(2)

These loans are included in non-accrual loans in the preceding tables.

The following table presents a summary of loans by portfolio that were restructured during the year ended December 31, 2018 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the year ended December 31, 2018:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Troubled debt restructurings:
Number of loans		2		2		—		7		25		—		36
Pre-modification outstanding balance	$	423	$	1,571	$	—	$	708	$	130	$	—	$	2,832
Post-modification outstanding balance		408		1,565		—		696		130		—		2,799

Troubled debt restructurings that subsequently defaulted
Number of loans		—		—		—		—		—		—		—
Recorded balance	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The following table presents a summary of loans by portfolio that were restructured during the year ended December 31, 2017 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the year ended December 31, 2017:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Troubled debt restructurings:
Number of loans		1		1		—		4		—		—		6
Pre-modification outstanding balance	$	362	$	323	$	—	$	528	$	—	$	—	$	1,213
Post-modification outstanding balance		299		323		—		508		—		—		1,130

Troubled debt restructurings that subsequently defaulted
Number of loans		—		—		—		—		—		—		—
Recorded balance	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The following table presents a summary of loans by portfolio that were restructured during the year ended December 31, 2016 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the year ended December 31, 2016:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
(dollars in thousands)
Troubled debt restructurings:
Number of loans		3		2		—		3		—		—		8
Pre-modification outstanding balance	$	685	$	10,207	$	—	$	206	$	—	$	—	$	11,098
Post-modification outstanding balance		647		10,139		—		206		—		—		10,992

Troubled debt restructurings that subsequently defaulted
Number of loans		—		1		—		—		—		—		1
Recorded balance	$	—	$	28	$	—	$	—	$	—	$	—	$	28

Purchased Credit Impaired Loans

Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan losses. PCI loans are purchased loans that have evidence of credit deterioration since origination, and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. Evidence of credit quality deterioration as of the purchase date may include factors such as past due and nonaccrual status. The difference between contractually required principal and interest at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. Subsequent decreases to the expected cash flows will generally result in impairment, which is recorded as provision for loan losses in the consolidated statements of income. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from non-accretable to accretable with a positive impact on interest income. Further, any excess cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. Accretion recorded as loan interest income totaled $6.1 million, $5.5 million and $8.6 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Accretable yield of PCI loans, or income expected to be collected was as follows for the years ended December 31, 2018, 2017 and 2016:



(dollars in thousands)	2018		2017		2016
Balance, beginning of period	$	5,732	$	9,035	$	10,526
New loans purchased – Alpine acquisition		6,095		—		—
New loans purchased – Centrue acquisition		—		1,929		—
Accretion		(6,092)		(5,546)		(8,579)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)		2,682		120		915
Reclassification from non-accretable		3,823		194		6,173
Balance, end of period	$	12,240	$	5,732	$	9,035

Allowance for Loan Losses

The Company’s loan portfolio is principally comprised of commercial, commercial real estate, construction and land development, residential real estate and consumer loans and lease financing receivables. The principal risks to each category of loans are as follows:

Commercial – The principal risk of commercial loans is that these loans are primarily made based on the identified cash flow of the borrower and secondarily on the collateral underlying the loans. Most often, this collateral consists of accounts receivable, inventory and equipment. Inventory and equipment may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. If the cash flow from business operations is reduced, the borrower’s ability to repay the loan may be impaired. As such, repayment of such loans is often more sensitive than other types of loans to adverse conditions in the general economy.

Commercial real estate – As with commercial loans, repayment of commercial real estate loans is often dependent on the borrower’s ability to make repayment from the cash flow of the commercial venture. While commercial real estate loans are collateralized by the borrower’s underlying real estate, foreclosure on such assets may be more difficult than with other types of collateralized loans because of the possible effect the foreclosure would have on the borrower’s business, and property values may tend to be partially based upon the value of the business situated on the property.

Construction and land development – Construction and land development lending involves additional risks not generally present in other types of lending because funds are advanced upon the estimated future value of the project, which is uncertain prior to its completion and at the time the loan is made, and costs may exceed realizable values in declining real estate markets. Moreover, if the estimate of the value of the completed project proves to be overstated or market values or rental rates decline, the collateral may prove to be inadequate security for the repayment of the loan. Additional funds may also be required to complete the project, and the project may have to be held for an unspecified period of time before a disposition can occur.

Residential real estate – The principal risk to residential real estate lending is associated with residential loans not sold into the secondary market. In such cases, the value of the underlying property may have deteriorated as a result of a change in the residential real estate market, and the borrower may have little incentive to repay the loan or continue living in the property. Additionally, in areas with high vacancy rates, reselling the property without substantial loss may be difficult.

Consumer – The repayment of consumer loans is typically dependent on the borrower remaining employed through the life of the loan, as well as the possibility that the collateral underlying the loan may not be adequately maintained by the borrower.

Lease financing – Our financing leases are primarily for business equipment leased to varying types of businesses, nationwide, for the purchase of business equipment and software. If the cash flow from business operations is reduced, the business’s ability to repay may become impaired.

Changes in the allowance for loan losses for the years ended December 31, 2018, 2017 and 2016 were as follows:


	2018						2017						2016
	Non-PCI		PCI				Non-PCI		PCI				Non-PCI		PCI
(dollars in thousands)	Loans		Loans		Total		Loans		Loans		Total		Loans		Loans		Total
Balance, beginning of period	$	14,902	$	1,529	$	16,431	$	13,744	$	1,118	$	14,862	$	14,093	$	1,895	$	15,988
Provision for loan losses		9,246		184		9,430		9,295		261		9,556		6,425		(834)		5,591
Loan charge-offs		(6,844)		(145)		(6,989)		(9,822)		—		(9,822)		(7,668)		(68)		(7,736)
Loan recoveries		2,031		—		2,031		1,685		150		1,835		894		125		1,019
Net loan (charge-offs) recoveries		(4,813)		(145)		(4,958)		(8,137)		150		(7,987)		(6,774)		57		(6,717)
Balance, end of period	$	19,335	$	1,568	$	20,903	$	14,902	$	1,529	$	16,431	$	13,744	$	1,118	$	14,862

In 2018, the Company recorded $6.8 million of non-PCI loan charge-offs. In 2017, the Company recorded $9.8 million of non-PCI loan charge-offs, which included a $4.6 million charge-off on a nonperforming commercial real estate loan to one borrower and a $1.2 million charge-off on nonperforming commercial loans related to a single credit relationship as a result of the deterioration in the borrower’s collateral position on the respective loans. In 2016, the Company recorded $7.7 million of non-PCI loan charge-offs, which included a $1.6 million charge-off on a nonperforming commercial loan to one borrower, a $1.4 million charge-off on a nonperforming commercial loan to one borrower and a $530,000 charge-off on nonperforming commercial loans related to a single credit relationship as a result of the deterioration in the borrower’s collateral position on the respective loans.

The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the year ended December 31, 2018 and provides details regarding the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2018 by impairment evaluation method:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for loan losses in 2018:
Beginning balance	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Provision for loan losses		4,941		(207)		(227)		(517)		2,156		3,284		9,430
Charge-offs		(1,236)		(492)		—		(361)		(1,876)		(3,024)		(6,989)
Recoveries		563		378		81		169		530		310		2,031
Ending balance	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903
Allowance for loan losses at December 31, 2018 attributable to:
Loans individually evaluated for impairment	$	4,405	$	476	$	48	$	233	$	—	$	330	$	5,492
Loans collectively evaluated for impairment		43		47		6		321		45		31		493
Non-impaired loans collectively evaluated for impairment		4,971		3,356		318		1,051		1,926		1,728		13,350
Loans acquired with deteriorated credit quality (1)		105		844		—		436		183		—		1,568
Total allowance for loan losses	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903
Recorded investment (loan balance) at December 31, 2018:
Impaired loans individually evaluated for impairment	$	8,520	$	23,431	$	1,249	$	3,929	$	5	$	668	$	37,802
Impaired loans collectively evaluated for impairment		408		437		58		3,341		564		289		5,097
Non-impaired loans collectively evaluated for impairment		797,099		1,596,035		222,591		562,019		610,839		263,094		4,051,677
Loans acquired with deteriorated credit quality (1)		4,857		19,252		8,331		8,759		1,776		—		42,975
Total recorded investment (loan balance)	$	810,884	$	1,639,155	$	232,229	$	578,048	$	613,184	$	264,051	$	4,137,551

(1)

Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date and the risk of credit loss was recognized at that date based on estimates of expected cash flows.

The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the year ended December 31, 2017 and provides details regarding the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2017 by impairment evaluation method:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for loan losses in 2017:
Beginning balance	$	5,920	$	3,225	$	345	$	2,929	$	930	$	1,513	$	14,862
Provision for loan losses		(118)		7,879		110		1		954		730		9,556
Charge-offs		(737)		(6,552)		—		(698)		(794)		(1,041)		(9,822)
Recoveries		191		492		63		518		254		317		1,835
Ending balance	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Allowance for loan losses at December 31, 2017 attributable to:
Loans individually evaluated for impairment	$	221	$	281	$	5	$	302	$	—	$	261	$	1,070
Loans collectively evaluated for impairment		305		48		5		264		29		84		735
Non-impaired loans collectively evaluated for impairment		4,230		4,379		504		1,644		1,166		1,174		13,097
Loans acquired with deteriorated credit quality (1)		500		336		4		540		149		—		1,529
Total allowance for loan losses	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Recorded investment (loan balance) at December 31, 2017:
Impaired loans individually evaluated for impairment	$	1,285	$	13,554	$	797	$	3,700	$	4	$	568	$	19,908
Impaired loans collectively evaluated for impairment		2,818		443		46		2,484		283		778		6,852
Non-impaired loans collectively evaluated for impairment		549,154		1,413,079		199,010		441,418		370,999		203,797		3,177,457
Loans acquired with deteriorated credit quality (1)		2,673		12,935		734		5,950		169		—		22,461
Total recorded investment (loan balance)	$	555,930	$	1,440,011	$	200,587	$	453,552	$	371,455	$	205,143	$	3,226,678

(1)

PREMISES AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2018

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT, NET

Note 6 – Premises and Equipment, Net

A summary of premises and equipment as of December 31, 2018 and 2017 is as follows:


(dollars in thousands)	2018		2017
Land	$	20,231	$	16,109
Buildings and improvements		76,141		63,837
Furniture and equipment		29,858		25,843
Total		126,230		105,789
Accumulated depreciation		(31,390)		(29,627)
Premises and equipment, net	$	94,840	$	76,162

Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $6.2 million, $5.0 million, and $5.1 million, respectively.

MORTGAGE SERVICING RIGHTS

12 Months Ended

Dec. 31, 2018

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS

Note 7 – Mortgage Servicing Rights

The Company serviced commercial FHA mortgage loans for others with unpaid principal balances of approximately $3.98 billion at December 31, 2018 and 2017. Changes in our commercial FHA mortgage servicing rights were as follows for the years ended December 31, 2018, 2017 and 2016:




(dollars in thousands)	2018		2017		2016
Mortgage servicing rights:
Balance, beginning of period	$	55,714	$	52,006	$	47,589
Originated servicing		3,174		6,287		6,805
Amortization		(2,636)		(2,579)		(2,388)
Balance, end of period		56,252		55,714		52,006
Valuation allowances:
Balance, beginning of period		3,254		1,712		—
Additions		931		1,542		1,920
Reductions		(1,380)		—		(208)
Balance, end of period		2,805		3,254		1,712
Mortgage servicing rights, net	$	53,447	$	52,460	$	50,294
Fair value:
At beginning of period	$	52,460	$	50,294	$	47,589
At end of period	$	53,447	$	52,460	$	50,294

The following table is a summary of key assumptions, representing both general economic and other published information and the weighted average characteristics of the commercial portfolio, used in the valuation of servicing rights at December 31, 2018 and 2017. Assumptions used in the prepayment rate consider many factors as appropriate, including lockouts, balloons, prepayment penalties, interest rate ranges, delinquencies and geographic location. The discount rate is based on an average pre‑tax internal rate of return utilized by market participants in pricing the servicing portfolio. Significant increases or decreases in any one of these assumptions would result in a significantly lower or higher fair value measurement.


					Remaining
	Servicing		Interest		Years to	Prepayment		Servicing		Discount
	Fee		Rate		Maturity	Rate		Cost		Rate
December 31, 2018:
Commercial FHA mortgage loans	0.13	%	3.67	%	30.1	8.24	%	$	1,000	10 - 14	%

December 31, 2017:
Commercial FHA mortgage loans	0.12	%	3.67	%	30.3	8.27	%	$	1,000	10 - 14	%

We recognize revenue from servicing commercial FHA and residential mortgages as earned based on the specific contractual terms. This revenue, along with amortization of and changes in impairment on servicing rights, is reported in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Mortgage servicing rights do not trade in an active market with readily observable prices. The fair value of mortgage servicing rights and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured residential and commercial mortgages and conventional residential mortgages. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, costs to service, contractual servicing fee income, ancillary income, late fees, replacement reserves and other economic factors that are determined based on current market conditions.

At December 31, 2018 and 2017, the Company serviced residential mortgage loans for others with unpaid principal balances of approximately $897.6 million and $1.99 billion, respectively. During the year ended December 31, 2017, the Company recognized a $4.1 million loss to reflect certain residential mortgage servicing rights classified as held for sale at the lower of their carrying value or fair value less estimated costs to sell. On January 2, 2018, the Company sold its $10.2 million of residential mortgage servicing rights held for sale. Subsequent to this sale, the Company transferred all remaining residential mortgage servicing rights to mortgage servicing rights held for sale. At December 31, 2018, residential mortgage servicing rights of $3.5 million are reflected in the consolidated balance sheet as mortgage servicing rights held for sale.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2018

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Note 8 – Goodwill and Intangible Assets

At December 31, 2018 and 2017, goodwill totaled $164.7 million and $98.6 million, respectively, reflecting an increase as a result of the Alpine acquisition on February 28, 2018, as further discussed in Note 2 to the consolidated financial statements. Goodwill represents the amount by which the cost of an acquisition exceeded fair value of net assets acquired in connection with the purchase of another financial institution. Goodwill is tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company performed its most recent annual goodwill impairment test as of September 30, 2018 and concluded that no impairment existed as of that date.

The following table summarizes the carrying amount of goodwill by segment at December 31, 2018 and 2017.


(dollars in thousands)	2018		2017
Banking	$	149,035	$	82,986
Commercial FHA origination and servicing		10,892		10,892
Wealth management		4,746		4,746
Total goodwill	$	164,673	$	98,624

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of December 31, 2018 and 2017 are summarized as follows:


	2018						2017
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
(dollars in thousands)	Amount		Amortization		Total		Amount		Amortization		Total
Core deposit intangibles	$	52,712	$	(24,803)	$	27,909	$	31,612	$	(18,943)	$	12,669
Customer relationship intangibles		13,771		(4,304)		9,467		7,471		(3,208)		4,263
Total intangible assets	$	66,483	$	(29,107)	$	37,376	$	39,083	$	(22,151)	$	16,932

In conjunction with the acquisition of Alpine on February 28, 2018, we recorded $21.1 million of core deposit intangibles and $6.3 million of customer relationship intangibles, which are both being amortized on an accelerated basis over an estimated useful life of 13 years, as further discussed in Note 2 to the consolidated financial statements.

Amortization of intangible assets was $7.0 million, $3.3 million and $2.1 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2019	$	6,716
2020		5,792
2021		5,032
2022		4,326
2023		3,620
Thereafter		11,890
Total	$	37,376

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2018

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

Note 9 – Derivative Instruments

As part of the Company’s overall management of interest rate sensitivity, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments, forward commitments to sell mortgage-backed securities and interest rate swap contracts.

Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities

The Company issues interest rate lock commitments on originated fixed-rate commercial and residential real estate loans to be sold. The interest rate lock commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities. The fair value of the interest rate lock commitments and forward contracts to sell mortgage-backed securities are included in other assets in the consolidated balance sheets. Changes in the fair value of derivative financial instruments are recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

The following tables summarize the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at December 31, 2018 and 2017:


	Notional Amount				Fair Value Gain
(dollars in thousands)	2018		2017		2018		2017
Derivative Instruments (included in Other Assets):
Interest rate lock commitments	$	264,710	$	345,152	$	4,492	$	6,331
Forward commitments to sell mortgage-backed securities		276,871		372,824		—		31
Total	$	541,581	$	717,976	$	4,492	$	6,362


	Notional Amount				Fair Value Loss
(dollars in thousands)	2018		2017		2018		2017
Derivative Instruments (included in Other Liabilities):
Forward commitments to sell mortgage-backed securities	$	54	$	—	$	—	$	—

Net losses recognized on derivative instruments were $2.0 million and $16,000 for the years ended December 31, 2018 and December 31, 2017, respectively. Net gains recognized on derivative instruments were $351,000 for the year ended December 31, 2016. Net gains or losses on derivative instruments were recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

Interest Rate Swap Contracts

The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. These swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with mirror-image terms. Because of the mirror-image terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in the fair value subsequent to initial recognition have a minimal effect on earnings. These derivative contracts do not qualify for hedge accounting.

The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $9.5 million and $10.0 million at December 31, 2018 and 2017, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $145,000 and $17,000 at December 31, 2018 and 2017, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

DEPOSITS

12 Months Ended

Dec. 31, 2018

DEPOSITS

DEPOSITS

Note 10 – Deposits

The following table summarizes the classification of deposits as of December 31, 2018 and 2017:


(dollars in thousands)	2018		2017
Noninterest-bearing demand	$	972,164	$	724,443
Interest-bearing:
Checking		1,002,275		785,934
Money market		862,171		646,426
Savings		442,132		281,212
Time		795,428		693,074
Total deposits	$	4,074,170	$	3,131,089

Included in time deposits are time certificates of $250,000 or more and brokered certificates of deposits of $76.0 million and $161.6 million as of December 31, 2018, respectively, and $69.9 million and $190.3 million as of December 31, 2017, respectively.

Investment securities with a carrying amount of $182.4 million and $116.0 million were pledged for public deposits at December 31, 2018 and 2017, respectively. Standby letters of credit issued by the FHLB on our behalf of $120.0 million were pledged for public deposits at December 31, 2018 and 2017.

As of December 31, 2018, the scheduled maturities of time deposits are as follows:


(dollars in thousands)	Amount
Year ending December 31,
2019	$	523,651
2020		135,754
2021		97,871
2022		22,183
2023		15,968
Thereafter		1
Total	$	795,428

SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2018

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS

Note 11 – Short-Term Borrowings

The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended December 31, 2018 and 2017:


	Repurchase Agreements
(dollars in thousands)	2018			2017
Outstanding at period-end	$	124,235		$	156,126
Average amount outstanding		138,135			163,461
Maximum amount outstanding at any month end		173,387			196,278
Weighted average interest rate:
During period		0.51	%		0.23	%
End of period		0.71	%		0.28	%

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction, which represents the amount of the Bank’s obligation. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. Investment securities with a carrying amount of $132.2 million and $157.2 million at December 31, 2018 and 2017, respectively, were pledged for securities sold under agreements to repurchase.

The Company had lines of credit of $56.8 million and $32.5 million at December 31, 2018 and 2017, respectively, from the Federal Reserve Discount Window. The lines are collateralized by a collateral agreement with respect to a pool of commercial real estate loans totaling $67.6 million and $36.5 million at December 31, 2018 and 2017, respectively. There were no outstanding borrowings at December 31, 2018 and 2017.

At December 31, 2018, the Company had federal funds lines of credit totaling $45.0 million. These lines of credit were unused at December 31, 2018.

FHLB ADVANCES AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2018

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

Note 12 – FHLB Advances and Other Borrowings

The following table summarizes our FHLB advances and other borrowings as of December 31, 2018 and 2017:


(dollars in thousands)	2018		2017
Midland States Bancorp, Inc.
Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 4.63% and 3.63% at December 31, 2018 and 2017, respectively – maturing May 25, 2020	$	32,840	$	37,113
Series G redeemable preferred stock - 181 shares at $1,000 per share		181		181
Midland States Bank
FHLB advances – fixed rate, fixed term of $87.7 million and $145.0 million, at rates averaging 2.35% and 1.35% at December 31, 2018 and 2017, respectively – maturing through February 2023, and putable fixed rate of $520.0 million and $305.0 million at rates averaging 2.09% and 1.29% at December 31, 2018 and 2017, respectively, – maturing through August 2025 with call provisions through August 2021		607,610		450,137
FHLB advances – variable rate, fixed term, at rates averaging 1.20% at December 31, 2017 – maturing through March 2018		—		9,000
Other		—		5
Total FHLB advances and other borrowings	$	640,631	$	496,436

In May 2017, the Company entered into a loan agreement with another bank for a revolving line of credit in the original principal amount of up to $10.0 million and a term loan in the original principal amount of $40.0 million. The term loan matures on May 25, 2020 and pays a variable rate of interest equal to one-month LIBOR plus 225 basis points. Beginning September 1, 2017, the Company was required to begin making quarterly principal and interest payments on the term loan of $1.4 million with the remaining principal and any unpaid interest due at maturity. The loan is unsecured with a negative pledge of shares of the Company’s common stock. The loan agreement contains financial covenants that require the Company to maintain a minimum total capital to risk-weighted assets ratio, a minimum adjusted loan loss reserves to nonperforming loans ratio, a minimum fixed charge coverage ratio and a maximum percentage of nonperforming assets to tangible capital. At December 31, 2018, the Company was in compliance with or has obtained waivers for each of these financial covenants.

In conjunction with the acquisition of Centrue on June 9, 2017, as further discussed in Note 2 to the consolidated financial statements, each share of Centrue’s Series B preferred stock was converted into the right to receive a share of a newly created series of Series G preferred stock of the Company, and was recorded at fair value of $181,000 at the time of acquisition.

The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling approximately $2.22 billion and $1.86 billion at December 31, 2018 and 2017, respectively.

Contractual payments over the next five years for FHLB advances and other borrowings are as follows:


(dollars in thousands)	Amount
2019	$	73,074
2020		30,953
2021		5,814
2022		153,210
2023		267,580
Thereafter		110,000
Total	$	640,631

SUBORDINATED DEBT

12 Months Ended

Dec. 31, 2018

SUBORDINATED DEBT

SUBORDINATED DEBT

Note 13 – Subordinated Debt

The following table summarizes the Company’s subordinated debt as of December 31, 2018 and 2017:


(dollars in thousands)	2018		2017
Subordinated debt issued June 2015 – fixed interest rate of 6.00% for the first five years through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, $40,325 maturing June 18, 2025	$	39,871	$	39,800
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $15,000 maturing June 18, 2025		14,831		14,805
Subordinated debt issued October 2017 - fixed interest rate of 6.25% for the first five years through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 maturing October 15, 2027		39,432		39,367
Total subordinated debt	$	94,134	$	93,972

In June 2015, the Company issued $55.3 million of subordinated debt in a private placement. The transaction was structured in two tranches: (1) $40.3 million, maturing on June 18, 2025 with a redemption option on or after June 18, 2020, with a fixed rate of interest of 6.00% for the first five years, payable semiannually in arrears beginning December 18, 2015, and a floating rate of interest equivalent to the three-month LIBOR plus 435 basis points thereafter, payable quarterly beginning on September 18, 2020; and (2) $15.0 million, maturing on June 18, 2025, with a fixed rate of interest of 6.50%, payable semiannually in arrears beginning December 18, 2015. The value of the subordinated debentures was reduced by $0.9 million with the recording of debt issuance costs associated with the issuance of the subordinated debentures, which are being amortized on a straight line basis through maturity of the subordinated notes. The subordinated debentures may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

On October 13, 2017, the Company issued, through a private placement, $40.0 million aggregate principal amount of subordinated debentures with a maturity date of October 15, 2027. The subordinated debentures bear a fixed rate of interest of 6.25% for the first five years, payable semiannually in arrears beginning April 15, 2018, and a floating rate of interest equal to the three-month LIBOR plus 422.9 basis points thereafter, payable quarterly in arrears beginning January 15, 2023. The subordinated debentures will be redeemable by the Company, in whole or in part, on or after October 15, 2022, and are not subject to redemption at the option of the holders. The value of the subordinated debentures was reduced by approximately $0.6 million related to debt issuance costs, which are being amortized on a straight line basis through the maturity of the subordinated debentures. The subordinated debenture issues may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

TRUST PREFERRED DEBENTURES

12 Months Ended

Dec. 31, 2018

TRUST PREFERRED DEBENTURES

TRUST PREFERRED DEBENTURES

Note 14 – Trust Preferred Debentures

The following table summarizes the Company’s trust preferred debentures as of December 31, 2018 and 2017:


(dollars in thousands)	2018		2017
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 5.23% and 4.11% at December 31, 2018 and 2017, respectively – $10,310 maturing April 23, 2034	$	10,272	$	10,269
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 5.37% and 4.23%, at December 31, 2018 and 2017, respectively – $3,093 maturing January 23, 2034		2,209		2,151
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 4.54% and 3.34% at December 31, 2018 and 2017, respectively – $20,619 maturing December 31, 2036		14,074		13,911
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 4.21% and 2.98% at December 31, 2018 and 2017, respectively – $20,619 maturing September 6, 2037		13,249		13,084
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 5.44% and 4.25% at December 31, 2018 and 2017, respectively - $10,310 maturing June 17, 2034		7,990		7,915
Total trust preferred debentures	$	47,794	$	47,330

On March 26, 2004, Midland States Preferred Securities Trust (“Midland Trust”), a statutory trust under the Delaware Statutory Trust Act, was formed by the Company. The Midland Trust issued a pool of $10.0 million of floating rate Cumulative Trust Preferred Debentures with a liquidation amount of $1,000 per security. The Company issued $10.0 million of subordinated debentures to the Midland Trust in exchange for ownership of all the common securities of the Midland Trust. The Company is not considered the primary beneficiary of this trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Company’s investment in the common stock of the trust was $310,000 and is included in other assets.

In conjunction with the acquisition of Grant Park Bancshares, Inc. on June 5, 2013, the Company assumed $3.0 million of subordinated debentures that were recorded at a fair value of $1.8 million at the time of acquisition. On December 19, 2003, the Grant Park Statutory Trust I (“Grant Park Trust”) issued 3,000 shares of preferred securities with a liquidation amount of $1,000 per security. Grant Park issued $3.0 million of subordinated debentures to the Grant Park Trust in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of the Grant Park Trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Company’s investment in the common stock of the trust was $93,000 and is included in other assets.

In conjunction with the acquisition of Love Savings Holding Company (“LSHC”) on December 31, 2014, the Company assumed $40.0 million of subordinated debentures that were recorded at a fair value of $26.1 million at the time of acquisition. On November 30, 2006, the Love Savings/Heartland Capital Trust III (“LSHC Trust III”) issued 20,000 shares of capital securities with a liquidation amount of $1,000 per security. LSHC issued $20.0 million of subordinated debentures to LSHC Trust III in exchange for ownership of all the common securities of the trust. On June 6, 2007, the Love Savings/Heartland Capital Trust IV (“LSHC Trust IV”) issued 20,000 shares of capital securities with a liquidation amount of $1,000 per security. LSHC issued $20.0 million of subordinated debentures to LSHC Trust IV in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of LSHC Trust III or LSHC Trust IV; therefore, the trusts are not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Company’s investment in the common stock of the trusts was $1.2 million and is included in other assets.

In conjunction with the acquisition of Centrue on June 9, 2017, as further discussed in Note 2 to the consolidated financial statements, the Company assumed $10.0 million of subordinated debentures that were recorded at a fair value of $7.6 million at the time of acquisition. In April 2004, the Centrue Statutory Trust II (“Centrue Trust II”) issued 10,000 shares of preferred securities with a liquidation amount of $1,000 per preferred security. Centrue issued $10.0 million of subordinated debentures to Centrue Trust II in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of Centrue Trust II; therefore, the trust is not consolidated in the Company’s consolidated financial statements, but rather the subordinated debentures are shown as a liability, and the Company’s investment in the common stock of Centrue Trust II of $310,000 is included in other assets.

For all of the debentures mentioned above, interest is payable quarterly. The debentures and the common securities issued by each of the trusts are redeemable in whole or in part on dates each quarter at the redemption price plus interest accrued to the redemption date, as specified in the trust indenture document. The debentures are also redeemable in whole or in part from time to time upon the occurrence of “special events” defined within the indenture document. Subject to certain exceptions and limitations, the Company may, from time to time, defer subordinated debenture interest payments, which would result in a deferral of distribution payments on the related debentures, and, with certain exceptions, prevent the Company from declaring or paying cash distributions on common stock or debt securities that rank pari passu or junior to the subordinated debenture.

INCOME TAXES

12 Months Ended

Dec. 31, 2018

INCOME TAXES

INCOME TAXES

Note 15 – Income Taxes

The components of income taxes for the years ended December 31, 2018, 2017 and 2016 were as follows:


(dollars in thousands)	2018		2017		2016
Federal:
Current	$	55	$	(696)	$	1,718
Deferred		6,748		11,632		11,381
State:
Current		807		(921)		2,630
Deferred		3,774		400		3,160
Total income tax expense	$	11,384	$	10,415	$	18,889

The Company’s income tax expense differed from the statutory federal rate of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016 as follows:


(dollars in thousands)	2018		2017		2016
Expected income taxes	$	10,665	$	9,244	$	17,648
Less income tax effect of:
Tax exempt interest, net		(1,441)		(1,635)		(1,637)
State tax, net of federal benefit		4,028		(110)		3,132
Increase in cash surrender value of life insurance policies		(854)		(969)		(1,007)
Equity-based compensation benefit		(62)		(1,297)		(366)
Non-deductible transaction costs		71		389		—
Valuation allowance		(409)		(229)		631
Effect of federal rate change enacted in 2017		—		4,540		—
Other		(614)		482		488
Actual income tax expense	$	11,384	$	10,415	$	18,889

Deferred tax assets, net in the accompanying consolidated balance sheets as of December 31, 2018 and 2017 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2018		2017
Assets:
Allowance for loan losses	$	5,748	$	4,405
Deferred compensation		2,158		1,896
Loans		6,579		3,896
Write-down of other real estate owned		563		776
Tax credits		1,041		1,501
Nonaccrual interest		730		708
Unrealized loss on securities		802		—
Stock compensation		700		907
Deferred loan fees, net of costs		—		133
Net operating losses		17,417		20,097
Accrued litigation		179		101
Allowance for repurchase reserves		135		100
Allowance for unfunded commitments		319		180
Fair value adjustment on investments		1,330		—
Charitable contributions		202		58
Other, net		720		324
Deferred tax assets		38,623		35,082
Valuation allowance		—		(409)
Deferred tax assets, net of valuation allowance		38,623		34,673
Liabilities:
Premises and equipment		3,522		1,657
Unrealized gain on securities		—		412
Mortgage servicing rights		11,460		11,424
Fair value adjustment on trust preferred debentures		4,694		4,700
Federal Home Loan Bank stock dividends		391		310
Deferred loan costs, net of fees		1,495		—
Intangible assets		8,741		2,729
Accounting method changes		74		399
Prepaid expenses		708		796
Software development costs		1,667		—
Leased equipment		4,351		—
Other, net		269		222
Deferred tax liabilities		37,372		22,649
Deferred tax assets, net	$	1,251	$	12,024

At December 31, 2018 and 2017, the accumulation of prior year’s earnings representing tax bad debt deductions was approximately $3.1 million for both years. If these tax bad debt reserves were charged for losses other than bad debt losses, the Company would be required to recognize taxable income in the amount of the charge. It is not expected that such tax‑restricted retained earnings will be used in a manner that would create federal income tax liabilities.

The Company had $62.6 million of federal net operating loss carryforwards expiring 2021 through 2034, $53.4 million of Illinois post-apportioned net operating loss carryforwards expiring 2022 through 2026, and $62.6 million of Missouri pre-apportioned net operating loss carryforwards expiring 2021 through 2034, at December 31, 2018. The utilization of the federal and Missouri net operating losses are subject to the limitations of IRC Section 382.

The Company has a federal alternative minimum tax credit carryforward of $3.6 million that can be carried forward indefinitely and became a refundable credit with the enactment of the Tax Act on December 22, 2017. As of December 31, 2018 and 2017 this credit is not reflected in deferred tax assets and is presented in income taxes receivable.

The Company has state tax credit carryforwards of $1.0 million with a five year carryforward period, and expiring between 2019 and 2023. Any amounts that are expected to expire before being fully utilized have been accounted for through a valuation allowance as discussed below.

As a result of the enactment of the Tax Act on December 22, 2017, the Company was required to write down deferred tax assets by $4.5 million. Following the guidance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), the write down of the deferred tax assets was determined using reasonable estimates for certain effects of tax reform, and the Company recorded the amount of the write down as a provisional amount at December 31, 2017. The final analysis of the impact of the Tax Act was completed once the Company finalized its 2017 tax returns in the third quarter of 2018. The results of this analysis yielded an immaterial true-up to the $4.5 million provisional estimate previously recorded in 2017.

We had no unrecognized tax benefits as of December 31, 2018 and 2017, and did not recognize any increase of unrecognized benefits during 2018 relative to any tax positions taken during the year.

Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in other income or expense; no such accruals existed as of December 31, 2018 and 2017.

Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. All available evidence, both positive and negative, should be considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. At December 31, 2017, the Company concluded, based on all available evidence, a valuation allowance was needed for the Company’s deferred tax asset related to state tax credit carryforwards. A valuation allowance in the amount of $409,000 was established for the state tax credit carryforwards at December 31, 2017. During 2018 the valuation allowance for the state tax credit carryforwards was released due to a one-time restructuring event that created taxable income that was offset by the utilization of the state tax credits prior to their expiration. For the Company’s remaining deferred tax assets, based on our taxpaying history and estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences.

The Company is subject to U.S. federal income tax as well as income tax of various states. Years that remain open for potential review by the Internal Revenue Service are 2015 through 2017 and for state taxing authorities are 2014 through 2017.

RETIREMENT PLANS	12 Months Ended
RETIREMENT PLANS	Dec. 31, 2018
RETIREMENT PLANS
RETIREMENT PLANS	Note 16 – Retirement Plans We sponsor the Midland States Bank 401(k) Profit Sharing Plan which provides retirement benefits to substantially all of our employees. There were no employer discretionary profit sharing contributions made to the 401(k) plan in 2018, 2017 and 2016. The 401(k) component of the plan allows participants to defer a portion of their compensation ranging from 1% to 100%. Such deferrals accumulate on a tax deferred basis until the employee withdraws the funds. The Company matches 50% of employee contributions up to 6% of their compensation. Total expense recorded for the Company match was $1.8 million, $1.2 million and $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Certain directors and executive officers participate in a deferred compensation arrangement. We match 25% of the amount deferred by directors who defer all of their director fees into a Company stock unit account. At December 31, 2018 and 2017, the accrued liability for these arrangements totaled $4.2 million and $3.8 million, respectively, and was reflected in other liabilities in the consolidated balance sheets. Expenses associated with these arrangements were $754,000, $659,000 and $605,000 for the years ended December 31, 2018, 2017 and 2016, respectively. During the years ended December 31, 2018, 2017 and 2016, there were distributions made of $356,000, $100,000 and $126,000, respectively. In November 2015, the Company entered into a supplemental retirement agreement with its former Chief Executive Officer (“CEO”). The former CEO is eligible to receive supplemental retirement payments in each of 2019, 2020 and 2021 equal to 50%, 40% and 30%, respectively, of his final salary on December 31, 2018 (retirement date). The Company expensed $282,000, $210,000 and $219,000 for the years ended December 31, 2018, 2017 and 2016, respectively, for this arrangement. Midland participates in the Pentegra Defined Benefit Plan for Financial Institutions, a noncontributory defined benefit pension plan for certain former employees of Heartland Bank who have met prescribed eligibility requirements. The multiple‑employer plan operates as a single plan under Internal Revenue code 413(c) and, as a result, all of the amounts contributed by the participating institutions are maintained in the aggregate. The plan is funded based on an annual valuation performed by the plan administrator. Benefits under the plan were frozen in 2004. The funded status of the plan (market value of assets divided by funding target) was 121.96% as of July 1, 2018, the latest actuarial valuation date. Future costs for administration, shortfalls in funds to maintain the frozen level of benefit coverage and differences of actuarial assumptions related to the frozen benefits will be expensed as incurred. The minimum required contribution for these costs in 2018 and 2017 was $122,000 and $121,000, respectively.

STOCK BASED COMPENSATION

12 Months Ended

Dec. 31, 2018

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION

Note 17 – Stock Based Compensation

On October 18, 2010, the board of directors approved the Midland States Bancorp, Inc. 2010 Long‑Term Incentive Plan (“2010 Incentive Plan”). The 2010 Incentive Plan was amended and restated effective February 2, 2016, which made available 2,000,000 shares (the initial 1,000,000 of which may be granted as incentive stock options) to be issued to selected employees and directors of, and service providers to, the Company or its subsidiaries. The granting of awards under this plan can be in the form of incentive stock options, non‑qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other awards. The awards are granted by the compensation committee, which is comprised of members of the board of directors.

Stock Option awards were granted during the years ended December 31, 2017 and 2016. The fair value of each grant is estimated at the grant date using the Black‑Scholes option‑pricing model with the following weighted average assumptions:


	2017		2016
Dividend yield	2.50	%	3.00	%
Expected volatility	16.63		16.98
Risk free interest rate	2.12		1.64
Expected life	6.25	years	6.25	years

The summary of our stock option activity during the years ended December 31, 2018 and 2017 is as follows:


	2018					2017
				Weighted					Weighted
		Weighted		average			Weighted		average
		average		remaining			average		remaining
		exercise		contractual			exercise		contractual
	Shares	price		life		Shares	price		life
Options outstanding, beginning of year	1,148,537	$	19.39			1,319,259	$	18.73
Options granted	—		—			31,259		32.89
Options exercised	(108,344)		16.42			(179,760)		16.02
Options forfeited	(34,049)		26.27			(22,221)		26.08
Options outstanding, end of year	1,006,144	$	19.48	4.9	years	1,148,537	$	19.39	5.8	years
Options exercisable	885,817	$	18.53	4.6	years	673,706	$	17.55	4.6	years
Options vested and expected to vest	991,774	$	19.38	4.9	years	1,088,853	$	19.27	5.7	years

The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2018 was $3.8 million and $3.8 million, respectively. As of December 31, 2018, there was $311,000 of total unrecognized compensation cost related to nonvested share‑based compensation arrangements granted under our stock option plans. This cost is expected to be recognized over a period of 1.7 years. The weighted average fair value of options granted during the years ended December 31, 2017 and 2016 was $4.33 and $2.94, respectively.

The total intrinsic value and cash received from options exercised under all share‑based payment arrangements was $1.6 million and $1.8 million, respectively, for the year ended December 31, 2018, $2.3 million and $2.9 million, respectively, for the year ended December 31, 2017, and $971,000 and $890,000, respectively, for the year ended December 31, 2016.

The following table summarizes information about the Company’s nonvested stock option activity for 2018:


		Weighted
		average
		grant date
Stock Options	Shares	fair value
Nonvested at December 31, 2017	474,831	$	2.83
Granted	—		—
Vested	(324,508)		2.72
Forfeited	(29,996)		2.91
Nonvested at December 31, 2018	120,327	$	3.11

In 2018 and 2017, the Company granted 138,683 and 70,951 shares of restricted stock awards, respectively. These awards have a vesting period of four years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of issue. Also, in 2017, the Company granted 12,965 restricted stock unit awards that may be settled in cash or stock, at the election of the recipient. These awards had a vesting period of one year. They were classified as liability awards and measured at each financial reporting date until settled.

A summary of the activity for restricted stock awards and restricted stock unit awards for the year follows:


		Weighted
		average
	Number	grant date
	outstanding	fair value
Nonvested at December 31, 2017	149,368	$	28.83
Granted during the year	138,683		28.47
Vested during the year	(56,907)		27.95
Forfeited during the year	(33,427)		30.17
Nonvested at December 31, 2018	197,717	$	28.61

As of December 31, 2018, there was $5.3 million of total unrecognized compensation cost related to the nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted average period of 3.3 years.

The weighted average grant date fair value for restricted stock awards was $28.47, $31.03 and $27.38 during the years ended December 31, 2018, 2017 and 2016, respectively.

Compensation cost that has been charged against income for these plans was $1.8 million, $1.8 million and $1.1 million for 2018, 2017 and 2016, respectively.

PREFERRED STOCK	12 Months Ended
PREFERRED STOCK	Dec. 31, 2018
PREFERRED STOCK
PREFERRED STOCK	Note 18 – Preferred Stock Series G Preferred Stock In conjunction with the acquisition of Centrue on June 9, 2017, as discussed in Note 2 to the consolidated financial statements, each share of Centrue’s Series B preferred stock was converted into the right to receive a share of a newly created series of Series G preferred stock of the Company, which are shown in FHLB advances and other borrowings in Note 12 to the consolidated financial statements. Preferential cumulative cash dividends are payable quarterly at an annual rate of $60.00 per share. Dividends accrue on each share of Series G preferred stock from the date of issuance and from day to day, thereafter, whether or not earned or declared. Fixed Rate Non-Voting Perpetual Non-Cumulative Preferred Stock, Series H In conjunction with the acquisition of Centrue on June 9, 2017, as discussed in Note 2 to the consolidated financial statements, each share of Centrue’s Series D preferred stock was converted into the right to receive a share of a newly created series of Series H preferred stock of the Company, and was recorded at fair value of $3.1 million at the time of acquisition. Dividends are payable at a fixed rate of 12.5% per annum, payable quarterly and are non-cumulative. No dividends may be paid on shares of common stock, shares of preferred stock that rank junior to Series H preferred stock (other than dividends payable solely in shares of common stock), or shares of preferred stock that rank on parity with Series H preferred stock, if a dividend is not paid in full on the Series H preferred stock, for a period of three calendar quarters from the date of the missing dividend payment date. The Company has the option to redeem, in whole or in part, the shares of Series H preferred stock at any time after July 29, 2019. The per share price payable by the Company for such shares of Series H preferred stock will be equal to $1,000 per share, plus any accrued but unpaid dividends.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2018

EARNINGS PER SHARE

EARNINGS PER SHARE

Note 19 – Earnings Per Share

Earnings per share are calculated utilizing the two‑class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the years ended December 31, 2018, 2017 and 2016 excluded antidilutive stock options of 31,259, 662 and 114,648, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective years. Presented below are the calculations for basic and diluted earnings per common share for the years ended December 31, 2018, 2017 and 2016:




(dollars in thousands, except per share data)	2018		2017		2016
Net income	$	39,421	$	16,056	$	31,542
Preferred stock dividends		(330)		(184)		—
Preferred stock, premium amortization		189		101		—
Net income available to common shareholders equity		39,280		15,973		31,542
Common shareholder dividends		(19,838)		(13,922)		(9,797)
Unvested restricted stock award dividends		(139)		(86)		(56)
Undistributed earnings to unvested restricted stock awards		(123)		(11)		(110)
Undistributed earnings to common shareholders	$	19,180	$	1,954	$	21,579
Basic
Distributed earnings to common shareholders	$	19,838	$	13,922	$	9,797
Undistributed earnings to common shareholders		19,180		1,954		21,579
Total common shareholders earnings, basic	$	39,018	$	15,876	$	31,376
Diluted
Distributed earnings to common shareholders	$	19,838	$	13,922	$	9,797
Undistributed earnings to common shareholders		19,180		1,954		21,579
Total common shareholders earnings		39,018		15,876		31,376
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		2		—		2
Total common shareholders earnings, diluted	$	39,020	$	15,876	$	31,378
Weighted average common shares outstanding, basic		23,130,475		17,781,631		14,130,552
Options and warrants		418,550		501,583		298,287
Weighted average common shares outstanding, diluted		23,549,025		18,283,214		14,428,839
Basic earnings per common share	$	1.69	$	0.89	$	2.22
Diluted earnings per common share		1.66		0.87		2.17

CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2018

CAPITAL REQUIREMENTS

CAPITAL REQUIREMENTS

Note 20 – Capital Requirements

The Company’s primary source of cash is dividends received from the Bank. The Bank is restricted by Illinois law and regulations of the Illinois Department of Financial and Professional Regulation and the FDIC as to the maximum amount of dividends the Bank can pay to us. As a practical matter, the Bank restricts dividends to a lesser amount because of the need to maintain an adequate capital structure.

We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. The regulators require the Company to meet specific capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance‑sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total capital, Tier 1 capital and Common equity tier 1 capital to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations).

Beginning on January 1, 2016, a capital conservation buffer became effective for banking organizations, which is designed to establish a capital range above minimum requirements to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels. The minimum capital conservation buffer in 2017 was 1.25%, 1.875% in 2018, and was fully phased in at 2.5% on January 1, 2019.

As of December 31, 2018, the Company and the Bank met all capital adequacy requirements to which they were subject, and the Bank’s capital position exceeded the regulatory definition of well-capitalized.

At December 31, 2018 and 2017, the Company’s and the Bank’s actual and required capital ratios were as follows:


	2018
									Required to be
					Minimum Required				Well Capitalized Under
					For Capital				Prompt Corrective
	Actual				Adequacy Purposes				Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio			Amount	Ratio
Total capital (to risk-weighted assets):
Midland States Bancorp, Inc.	$	584,409	12.79	%	$	365,547	8.00	%		N/A	N/A
Midland States Bank		583,465	12.76			365,894	8.00		$	457,368	10.00	%
Tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		468,212	10.25			274,160	6.00			N/A	N/A
Midland States Bank		561,402	12.27			274,421	6.00			365,894	8.00
Common equity tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		400,480	8.76			205,620	4.50			N/A	N/A
Midland States Bank		561,402	12.27			205,815	4.50			297,289	6.50
Tier 1 leverage (to average assets):
Midland States Bancorp, Inc.		468,212	8.53			219,602	4.00			N/A	N/A
Midland States Bank		561,402	10.22			219,622	4.00			274,528	5.00


	2017
									Required to be
					Minimum Required				Well Capitalized Under
					For Capital				Prompt Corrective
	Actual				Adequacy Purposes				Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio			Amount	Ratio
Total capital (to risk-weighted assets):
Midland States Bancorp, Inc.	$	478,914	13.26	%	$	288,895	8.00	%		N/A	N/A
Midland States Bank		445,285	12.32			289,252	8.00		$	361,565	10.00	%
Tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		367,841	10.19			216,671	6.00			N/A	N/A
Midland States Bank		428,184	11.84			216,939	6.00			289,252	8.00
Common equity tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		304,974	8.45			162,503	4.50			N/A	N/A
Midland States Bank		428,184	11.84			162,704	4.50			235,017	6.50
Tier 1 leverage (to average assets):
Midland States Bancorp, Inc.		367,841	8.63			170,566	4.00			N/A	N/A
Midland States Bank		428,184	10.04			170,608	4.00			213,260	5.00

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

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+ Details

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2018

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

Note 21 – Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:

Level 1: Unadjusted quoted prices for identical assets or liabilities traded in active markets.

Level 2: Significant other observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment securities available for sale. The fair values for investment securities available for sale are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For investment securities available for sale where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Securities classified as Level 3 are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. There were no transfers between Levels 1, 2 or 3 during the years ended December 31, 2018 or 2017 for assets measured at fair value on a recurring basis.

Loans held for sale. The fair value of loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2).

Mortgage servicing rights held for sale. The fair value of mortgage servicing rights held for sale is determined by quoted market prices less costs to sell (Level 1).

Assets held for sale. Assets held for sale represent the fair value of the banking facilities that are expected to be sold as a result of the branch network optimization plan that was announced in November 2016. The fair value of the assets held for sale was based on estimated market prices from independently prepared current appraisals. Such valuation inputs result in a fair value measurement that is categorized as a Level 2 measurement on a nonrecurring basis.

Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis as of December 31, 2018 and 2017, are summarized below:


	2018
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
(dollars in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	24,650	$	24,650	$	—	$	—
Government sponsored entity debt securities		75,684		—		75,684		—
Agency mortgage-backed securities		326,305		—		326,305		—
State and municipal securities		159,262		—		159,262		—
Corporate securities		71,550		—		69,627		1,923
Equity securities		3,334		—		3,334		—
Loans held for sale		30,401		—		30,401		—
Interest rate lock commitments		4,492		—		4,492		—
Interest rate swap contracts		145		—		145		—
Total	$	695,823	$	24,650	$	669,250	$	1,923
Liabilities
Interest rate swap contracts	$	145	$	—	$	145	$	—

Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	$	53,447	$	—	$	—	$	53,447
Mortgage servicing rights held for sale		3,545		3,545		—		—
Impaired loans		11,238		—		9,226		2,012
Other real estate owned		1,439		—		1,439		—
Assets held for sale		1,687		—		1,687		—


	2017
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
(dollars in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	27,718	$	27,718	$	—	$	—
Government sponsored entity debt securities		25,211		—		25,211		—
Agency mortgage-backed securities		232,387		—		232,387		—
State and municipal securities		102,567		—		102,567		—
Corporate securities		59,812		—		55,033		4,779
Equity Securities		2,830		—		2,830		—
Loans held for sale		50,089		—		50,089		—
Interest rate lock commitments		6,331		—		6,331		—
Forward commitments to sell mortgage-backed securities		31		—		31		—
Interest rate swap contracts		17		—		17		—
Total	$	506,993	$	27,718	$	474,496	$	4,779
Liabilities
Interest rate swap contracts		17		—	$	17	$	—

Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	$	56,352	$	—	$	—	$	56,352
Mortgage servicing rights held for sale		10,176		10,176		—		—
Impaired loans		9,385		—		7,631		1,754
Other real estate owned		801		—		801		—
Assets held for sale		3,358		—		3,358		—

The following table presents losses recognized on assets measured on a non‑recurring basis for the years ended December 31, 2018, 2017 and 2016:




(dollars in thousands)	2018		2017		2016
Mortgage servicing rights	$	—	$	2,324	$	3,135
Mortgage servicing rights held for sale		458		4,059		—
Impaired loans		5,800		7,096		2,459
Other real estate owned		301		253		247
Assets held for sale		—		1,516		1,646
Total loss on assets measured on a nonrecurring basis	$	6,559	$	15,248	$	7,487

The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2018 and 2017:


	2018		2017
					Non-Agency
	Corporate		Corporate		Mortgage-Backed
(dollars in thousands)	Securities		Securities		Securities
Balance, beginning of period	$	4,779	$	7,480	$	1
Total realized in earnings (1)		242		289		—
Total unrealized in other comprehensive income		(36)		264		—
Net settlements (principal and interest)		(3,062)		(3,254)		(1)
Balance, end of period	$	1,923	$	4,779	$	—

(1)

Amounts included in interest income from investment securities taxable in the consolidated statements of income.

The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at December 31, 2018:

Non-recurring

Fair Value

Valuation

Unobservable

fair value measurements

(dollars in thousands)

technique

input / assumptions

Range (weighted average)

Mortgage servicing rights

53,447

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.24%)

Discount rate

10.00% - 27.00% (11.12%)

Impaired loans

2,012

Fair value of collateral

Discount for type of property,

5.00% - 7.26% (5.26%)

age of appraisal and current status

The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at December 31, 2017:

Non-recurring

Fair Value

Valuation

Unobservable

fair value measurements

(dollars in thousands)

technique

input / assumptions

Range (weighted average)

Mortgage servicing rights

56,352

Discounted cash flow

Prepayment speed

6.36% - 42.90% (8.83%)

Discount rate

8.00% - 14.50% (11.18%)

Impaired loans

1,754

Fair value of collateral

Discount for type of property,

4.84% - 18.24% (8.64%)

age of appraisal and current status

Mortgage Servicing Rights. In accordance with GAAP, the Company must record impairment charges on mortgage servicing rights on a non-recurring basis when the carrying value exceeds the estimated fair value. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are estimated based on current market conditions. The determination of fair value of servicing rights relies upon Level 3 inputs. The fair value of mortgage servicing rights at December 31, 2018 and 2017 were $53.4 million and $56.4 million, respectively.

Impaired loans. Impaired loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and restructured loans are considered impaired and are reviewed individually for the amount of impairment, if any. Most of our loans are collateral dependent and, accordingly, we measure impaired loans based on the estimated fair value of such collateral. The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral; such valuation inputs result in a nonrecurring fair value measurement that is categorized as a Level 2 measurement. When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. The impaired loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, cash flows discounted at the effective loan rate, and management’s judgment.

ASC Topic 825, Financial Instruments, requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements.

The Company has elected the fair value option for newly originated residential and commercial loans held for sale. These loans are intended for sale and are hedged with derivative instruments. We have elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification.

The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of December 31, 2018 and 2017:


	2018						2017
	Aggregate				Contractual		Aggregate				Contractual
(dollars in thousands)	fair value		Difference		principal		fair value		Difference		principal
Residential loans held for sale	$	8,121	$	484	$	7,637	$	12,241	$	374	$	11,867
Commercial loans held for sale		22,280		595		21,685		37,846		343		37,503
Total loans held for sale	$	30,401	$	1,079	$	29,322	$	50,087	$	717	$	49,370

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2018 and 2017:


(dollars in thousands)	2018		2017
Residential loans held for sale	$	6	$	(74)
Commercial loans held for sale		252		(650)
Total loans held for sale	$	258	$	(724)

The following tables are a summary of the carrying values and fair value estimates of certain financial instruments as of December 31, 2018 and 2017:


	2018
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
(dollars in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	210,780	$	210,780	$	210,780	$	—	$	—
Federal funds sold		2,920		2,920		2,920		—		—
Investment securities available for sale		660,785		660,785		24,650		634,212		1,923
Nonmarketable equity securities		42,472		42,472		—		42,472		—
Loans, net		4,116,648		4,091,438		—		—		4,091,438
Loans held for sale		30,401		30,401		—		30,401		—
Accrued interest receivable		16,560		16,560		—		16,560		—
Interest rate lock commitments		4,492		4,492		—		4,492		—
Interest rate swap contracts		145		145		—		145		—
Liabilities
Deposits	$	4,074,170	$	4,069,098	$	—	$	4,069,098	$	—
Short-term borrowings		124,235		124,235		—		124,235		—
FHLB and other borrowings		640,631		641,050		—		641,050		—
Subordinated debt		94,134		91,926		—		91,926		—
Trust preferred debentures		47,794		56,805		—		56,805		—
Accrued interest payable		4,855		4,855		—		4,855		—
Interest rate swap contracts		145		145		—		145		—


	2017
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
(dollars in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	214,519	$	214,519	$	214,519	$	—	$	—
Federal funds sold		683		683		683		—		—
Investment securities available for sale		450,525		450,525		27,718		418,028		4,779
Nonmarketable equity securities		34,796		34,796		—		34,796		—
Loans, net		3,210,247		3,200,016		—		—		3,200,016
Loans held for sale		50,089		50,089		—		50,089		—
Accrued interest receivable		11,715		11,715		—		11,715		—
Interest rate lock commitments		6,331		6,331		—		6,331		—
Forward commitments to sell mortgage-backed securities		31		31		—		31		—
Interest rate swap contracts		17		17		—		17		—
Liabilities
Deposits	$	3,131,089	$	3,127,626	$	—	$	3,127,626	$	—
Short-term borrowings		156,126		156,126		—		156,126		—
FHLB and other borrowings		496,436		494,634		—		494,634		—
Subordinated debt		93,972		90,860		—		90,860		—
Trust preferred debentures		45,379		46,069		—		46,069		—
Accrued interest payable		2,531		2,531		—		2,531		—
Interest rate swap contracts		17		17		—		17		—

The methods utilized to estimate fair value of financial instruments at December 31, 2017 did not necessarily represent an exit price. In accordance with our adoption of ASU 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at December 31, 2018 represent an approximation of exit price, however, an actual exit price may differ.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

12 Months Ended

Dec. 31, 2018

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

Note 22 – Commitments, Contingencies and Credit Risk

In the normal course of business, there are outstanding various contingent liabilities such as claims and legal actions, which are not reflected in the consolidated financial statements. No material losses are anticipated as a result of these actions or claims.

We are obligated under noncancelable operating leases for office space and other commitments. Certain leases contain escalation clauses providing for increased rental payments based primarily on increases in real estate taxes or in the average consumer price index. Net rent expense under operating leases included in occupancy and equipment expense was approximately $3.2 million, $2.7 million and $2.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The projected minimum rental payments under the terms of the leases as of December 31, 2018 are as follows:


(dollars in thousands)	Amount
Year ending December 31:
2019	$	2,878
2020		2,361
2021		2,193
2022		1,955
2023		1,397
Thereafter		2,249
Total estimated lease payments	$	13,033

We are a party to financial instruments with off-balance‑sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.

Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments as of December 31, 2018 and 2017 are as follows:


(dollars in thousands)	2018		2017
Commitments to extend credit	$	663,555	$	568,356
Financial guarantees – standby letters of credit		142,859		142,189

The Company establishes a mortgage repurchase liability to reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on the volume of loans sold in 2018 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. As a result of make-whole requests and loan repurchases, the Company incurred losses totaling $11,000, $17,000 and $83,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The liability for unresolved repurchase demands totaled $492,000 and $371,000 at December 31, 2018 and 2017, respectively.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2018

SEGMENT INFORMATION

SEGMENT INFORMATION

Note 23 – Segment Information

Our business segments are defined as Banking, Commercial FHA Origination and Servicing, Wealth Management and Other. The reportable business segments are consistent with the internal reporting and evaluation of the principle lines of business of the Company. The banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; commercial equipment leasing; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services; and corporate treasury management services. The commercial FHA origination and servicing segment provides for the origination and servicing of government sponsored mortgages for multifamily and healthcare facilities. The wealth management segment consists of trust and fiduciary services, brokerage and retirement planning services. The other segment includes the operating results of the parent company, our captive insurance business unit, and the elimination of intercompany transactions.

During 2018, the Company re-evaluated its business segments and changed the composition of its reportable segments to those described above and restated all prior period information.

Selected business segment financial information as of and for the years ended December 31, 2018, 2017 and 2016 were as follows:


			Commercial FHA
			Origination and			Wealth
(dollars in thousands)	Banking		Servicing			Management	Other		Total
December 31, 2018
Net interest income (expense)	$	190,883	$	(422)	$	298	$	(10,672)	$	180,087
Provision for loan losses		9,430		—		—		—		9,430
Noninterest income		40,313		11,457		20,484		(463)		71,791
Noninterest expense		165,744		15,058		11,680		(839)		191,643
Income (loss) before income taxes (benefit)		56,022		(4,023)		9,102		(10,296)		50,805
Income taxes (benefit)		14,154		(979)		514		(2,305)		11,384
Net income (loss)	$	41,868	$	(3,044)	$	8,588	$	(7,991)	$	39,421
Total assets	$	5,571,752	$	91,108	$	18,218	$	(43,405)	$	5,637,673

December 31, 2017
Net interest income (expense)	$	135,974	$	312	$	524	$	(7,148)	$	129,662
Provision for loan losses		9,556		—		—		—		9,556
Noninterest income		27,955		18,570		13,339		(502)		59,362
Noninterest expense		129,626		13,729		8,823		819		152,997
Income (loss) before income taxes (benefit)		24,747		5,153		5,040		(8,469)		26,471
Income taxes (benefit)		17,102		(1,033)		423		(6,077)		10,415
Net income (loss)	$	7,645	$	6,186	$	4,617	$	(2,392)	$	16,056
Total assets	$	4,336,301	$	99,685	$	15,979	$	(39,264)	$	4,412,701

December 31, 2016
Net interest income (expense)	$	109,950	$	1,003	$	—	$	(5,699)	$	105,254
Provision for loan losses		5,591		—		—		—		5,591
Noninterest income		41,055		22,979		8,073		(50)		72,057
Noninterest expense		99,003		15,104		6,533		649		121,289
Income (loss) before income taxes (benefit)		46,411		8,878		1,540		(6,398)		50,431
Income taxes (benefit)		17,129		3,332		115		(1,687)		18,889
Net income (loss)	$	29,282	$	5,546	$	1,425	$	(4,711)	$	31,542
Total assets	$	3,170,630	$	129,943	$	5,550	$	(72,400)	$	3,233,723

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	Note 24 – Related Party Transactions The Company utilizes the services of a company to act as a general manager for the construction of new facilities. A member of our board of directors is a substantial shareholder of this company and currently serves as its Chairman. During the years ended December 31, 2018, 2017 and 2016, the Company paid $418,000, $20,000 and $161,000, respectively, to this company for work on various projects. A former member of our board of directors had an ownership interest in the Company’s office building located in Clayton, Missouri and three of the Bank’s full-service branch facilities as of December 31, 2018. During the years ended December 31, 2018, 2017 and 2016, the Company paid rent on these properties of $712,000, $719,000 and $706,000, respectively. A member of our board of directors has an ownership interest in a building the Company utilizes for office space located in Effingham, IL. During the year ended December 31, 2018, the Company paid rent on this space of $42,000. A member of our board of directors is an executive and board member of a company we utilize for relationship and marketplace studies. During the year ended December 31, 2017, the Company paid $116,000 for these services.

REVENUE FROM CONTRACT WITH CUSTOMERS

12 Months Ended

Dec. 31, 2018

Revenue from contract with customers

Revenue from contract with customers

Note 25 – Revenue From Contracts with Customers

On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in “Note 2 – Basis of Presentation and Summary of Significant Accounting Policies,” the implementation of the new standard did not have a material impact on the measurement or recognition of revenue. Since the impact of applying the standard was determined to be immaterial, the Company did not record a cumulative effect adjustment to beginning retained earnings on January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with previous GAAP.

Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The recognition of revenue associated with these noninterest income streams did not change significantly from current practice upon adoption of Topic 606. The noninterest income streams considered in-scope by Topic 606 are discussed below.

Wealth Management Revenue. Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted by them to the Company on a monthly basis for that month’s transactional activity.

Service Charges on Deposit Accounts. Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account.

Interchange Revenue. Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed.

Gain on Sales of Other Real Estate Owned. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to a buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present.

Other Noninterest Income. The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, and other noninterest related fees. Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Account management fees are considered earned at the time the merchant’s transactions are processed or other services are performed. Fees related to the other components of other noninterest income within the scope of Topic 606 are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at the point in time the customer uses the selected service to execute a transaction.

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2018, 2017 and 2016:


(dollars in thousands)	2018		2017		2016
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	16,099	$	9,751	$	5,985
Investment advisory fees		2,041		1,364		—
Investment brokerage fees		1,065		1,388		1,324
Other		1,308		837		782
Service charges on deposit accounts:
Nonsufficient fund fees		7,672		4,193		2,562
Other		2,768		1,782		1,342
Interchange revenues		10,674		5,353		3,750
Other income:
Merchant services revenue		1,650		1,103		1,697
Other		2,935		1,869		1,815
Noninterest income - out-of-scope of Topic 606		25,579		31,722		52,800
Total noninterest income	$	71,791	$	59,362	$	72,057

Contract Balances. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2018 and 2017, the Company did not have any significant contract balances.

Contract Acquisition Costs. In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs.

PARENT COMPANY ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2018

PARENT COMPANY ONLY FINANCIAL INFORMATION

PARENT COMPANY ONLY FINANCIAL INFORMATION

Note 26 – Parent Company Only Financial Information

The following tables present condensed financial information for Midland States Bancorp, Inc.:


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2018		2017
Assets:
Cash	$	20,312	$	60,424
Investment in common stock of subsidiaries		764,483		563,541
Accrued income taxes receivable		—		3,300
Other assets		2,330		2,303
Total assets	$	787,125	$	629,568
Liabilities:
Subordinated debt	$	94,134	$	93,972
Trust preferred debentures		47,794		47,330
Other borrowings		33,021		37,294
Accrued income taxes payable		778		—
Deferred tax liabilities, net		972		252
Other liabilities		1,901		1,175
Total liabilities		178,600		180,023
Shareholders’ equity		608,525		449,545
Total liabilities and shareholders’ equity	$	787,125	$	629,568


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2018		2017		2016
Dividends from subsidiaries	$	17,000	$	19,500	$	—
Other income		6		4		428
Interest expense		(10,714)		(7,162)		(5,699)
Other expense		(1,180)		(1,295)		(1,130)
Income (loss) before income tax benefit and equity in undistributed income (loss) of subsidiaries		5,112		11,047		(6,401)
Income tax benefit		2,312		6,080		1,687
Income (loss) before equity in undistributed income (loss) of subsidiaries		7,424		17,127		(4,714)
Equity in undistributed income (loss) of subsidiaries		31,997		(1,071)		36,256
Net income	$	39,421	$	16,056	$	31,542


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2018		2017		2016
Cash flows from operating activities:
Net income	$	39,421	$	16,056	$	31,542
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries		(31,997)		1,071		(36,256)
Amortization of restricted stock awards		1,199		836		555
Compensation expense for stock option grants		334		548		492
Change in other assets		3,273		(3,226)		4,237
Change in other liabilities		2,863		1,649		225
Net cash provided by operating activities		15,093		16,934		795
Cash flows from investing activities:
Net cash paid in acquisition		(32,890)		(60,457)		—
Capital injection to subsidiaries		—		(350)		(25,250)
Net cash used in investing activities		(32,890)		(60,807)		(25,250)
Cash flows from financing activities:
Payment made on subordinated debt		—		—		(8,000)
Proceeds from issuance of subordinated debt, net of issuance costs		—		39,354		—
Proceeds from other borrowings, net of issuance costs		—		39,964		—
Payments made on other borrowings		(4,286)		(2,857)		—
Cash dividends paid on preferred stock		(330)		(184)		(9,853)
Cash dividends paid on common stock		(19,977)		(14,008)		—
Proceeds from issuance of common stock in initial public offering, net of issuance costs		—		—		71,475
Proceeds from issuance of common stock under employee benefit plans		2,278		3,225		1,318
Net cash (used in) provided by financing activities		(22,315)		65,494		54,940
Net (decrease) increase in cash		(40,112)		21,621		30,485
Cash:
Beginning of year		60,424		38,803		8,318
End of year	$	20,312	$	60,424	$	38,803

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2018

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED)

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED)

Note 27 – Quarterly Condensed Financial Information (Unaudited)

The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2018 and 2017:


	2018 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	46,505	$	58,283	$	56,987	$	61,592
Interest expense		8,320		9,997		11,906		13,057
Net interest income		38,185		48,286		45,081		48,535
Provision for loan losses		2,006		1,854		2,103		3,467
Net interest income after provision for loan losses		36,179		46,432		42,978		45,068
Noninterest income		16,502		15,847		18,272		21,170
Noninterest expense		49,499		46,452		50,317		45,375
Income before income taxes		3,182		15,827		10,933		20,863
Income taxes		1,376		3,045		2,436		4,527
Net income		1,806		12,782		8,497		16,336
Preferred stock dividends		36		36		35		34
Net income available to common shareholders	$	1,770	$	12,746	$	8,462	$	16,302
Per common share data:
Basic earnings per common share	$	0.08	$	0.53	$	0.35	$	0.68
Diluted earnings per common share		0.08		0.52		0.35		0.67


	2017 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	31,839	$	34,528	$	43,246	$	43,500
Interest expense		4,378		5,128		6,481		7,464
Net interest income		27,461		29,400		36,765		36,036
Provision for loan losses		1,533		458		1,489		6,076
Net interest income after provision for loan losses		25,928		28,942		35,276		29,960
Noninterest income		16,342		13,619		15,403		13,998
Noninterest expense		30,797		37,645		48,363		36,192
Income before income taxes		11,473		4,916		2,316		7,766
Income taxes		2,983		1,377		280		5,775
Net income	$	8,490	$	3,539	$	2,036	$	1,991
Per common share data:
Basic earnings per common share	$	0.54	$	0.21	$	0.10	$	0.10
Diluted earnings per common share		0.52		0.20		0.10		0.10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Certain reclassifications of 2017 and 2016 amounts have been made to conform to the 2018 presentation but do not have an effect on net income.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying consolidated financial statements.
Business Combinations	Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under the acquisition method, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired companies in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest‑bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one‑day periods, but not longer than 30 days.
Investment Securities	Investment Securities Investment securities consist of debt securities of the U.S. Treasury, government sponsored entities, states, counties, municipalities, corporations, agency mortgage‑backed securities and non‑agency mortgage‑backed securities. Securities transactions are recorded on a trade date basis. The Company classifies its securities as equity, available for sale or held to maturity at the time of purchase. Investments in stock of a publicly traded company or in mutual funds are classified as equity securities. Equity securities are recorded at fair value with unrealized gains and losses recognized in earnings. Held‑to‑maturity securities are those debt instruments which the Company has the positive intent and ability to hold until maturity. Held‑to‑maturity securities are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. All other securities are classified as available for sale. Available‑for‑sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available‑for‑sale securities are included in other comprehensive income and the related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. On a quarterly basis, the Company makes an assessment to determine whether there have been any events or circumstances to indicate that a security for which there is an unrealized loss is impaired on an other than temporary basis. This determination requires significant judgment. A decline in the fair value of any available‑for‑sale or held‑to‑maturity security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. In estimating other‑than‑temporary impairment (“OTTI”) losses, we consider the severity and duration of the impairment; the financial condition and near‑term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. Purchase premiums are amortized over the estimated life or to the earliest call date and purchase discounts are accreted over the estimated life of the related investment security as an adjustment to yield using the effective interest method. Unamortized premiums, unaccreted discounts, and early payment premiums are recognized in interest income upon disposition of the related security. Interest and dividend income are recognized when earned. Realized gains and losses from the sale of available‑for‑sale securities are determined using the specific identification method and are included in other noninterest income. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income.
Nonmarketable Equity Securities	Nonmarketable Equity Securities Nonmarketable equity securities include the Bank’s required investments in the stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”). The Bank is a member of the FHLB system as well as its regional FRB. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock and FRB stock are both carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.
Loans	Loans Non‑Purchased Credit Impaired loans (“Non-PCI loans”). Non‑PCI loans, for which the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified as loans in the consolidated balance sheets. Non‑PCI loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of any unearned discount or unamortized premium. Interest income is recorded on the accrual basis in accordance with the terms of the respective loan. Loans are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability in the normal course of business. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Loans are restored to accrual status when loans become well‑secured and management believes full collectability of principal and interest is probable. Nonrefundable loan fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees or costs are recognized as an adjustment to interest income over the contractual life of the loans using the interest method or taken into income when the related loans are paid off or sold. The amortization of loan fees or costs is discontinued when a loan is placed on nonaccrual status. Lease Financing. The Company provides financing leases to small businesses for purchases of business equipment. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 15% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the leased property is delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximate level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Residual value is the estimated fair market value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, we rely on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. Our estimates are reviewed continuously to ensure reasonableness; however, the amounts we will ultimately realize could differ from the estimated amounts. If the review results in a lower estimate than had been previously established, a determination is made as to whether the decline in estimated residual value is other‑than‑temporary. If the decline in estimated unguaranteed residual value is judged to be other‑than‑temporary, the accounting for the transaction is revised using the changed estimate. The resulting reduction in the investment is recognized as a loss in the period in which the estimate is changed. An upward adjustment of the estimated residual value is not recorded. Purchased Credit Impaired loans (“PCI loans”). We account for PCI loans under ASC 310‑30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“acquired impaired loan accounting”) when we acquire loans deemed to be impaired or when there is evidence of credit deterioration since their origination and it is probable at the date of acquisition that we would be unable to collect all contractually required payments. Revolving credit agreements, such as commercial lines of credit and home equity lines, and lease financings are excluded from PCI loans. For PCI loans, we (i) determine the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (ii) estimate the amount and timing of undiscounted expected principal and interest payments including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loans and such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is initially determined by discounting expected cash flows. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income on a level‑yield basis over the estimated life of the acquired loans. The excess of expected cash flows at acquisition over the initial fair value of the PCI loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. Subsequent to acquisition, the Company aggregates loans into pools of loans with common credit risk characteristics such as loan type and risk rating. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated usually result in a provision for loan losses and the establishment of an allowance for loan losses. As the accretable yield increases or decreases from changes in cash flow expectations, the offset is a decrease or increase to the nonaccretable difference or an addition to accretable yield. The accretable yield is measured at each financial reporting date based on information then currently available and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. Under acquired impaired loan accounting, PCI loans are generally considered accruing and performing loans as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans. Impaired loans. A loan is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans include loans on nonaccrual status, any loan past due 90 days or more and still accruing interest, and performing troubled debt restructured loans. Income from loans on nonaccrual status is recognized to the extent cash is received and when the loan’s principal balance is deemed collectible. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A loan is considered collateral dependent when repayment of the loan is based solely on the liquidation of the collateral. Fair value, where possible, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the fair value may be adjusted based on specific events, such as if deterioration of quality of the collateral comes to our attention as part of our problem loan monitoring process, or if discussions with the borrower lead us to believe the last appraised value no longer reflects the actual market for the collateral. The impairment amount on a collateral‑dependent loan is charged‑off to the allowance if deemed not collectible and the impairment amount on a loan that is not collateral‑dependent is set up as a specific reserve. Troubled Debt Restructurings. A loan is classified as a troubled debt restructuring when we grant a concession to a borrower experiencing financial difficulties. These concessions may include a reduction of the interest rate, principal or accrued interest, extension of the maturity date or other actions intended to minimize potential losses. Loans restructured at a market rate of a new loan with comparable risk at the time the loan is modified may be excluded from restructured loan disclosures in years subsequent to the restructuring if the loans are in compliance with their modified terms. A loan that has been placed on nonaccrual that is subsequently restructured will usually remain on nonaccrual status until the borrower is able to demonstrate repayment performance in compliance with the restructured terms for a sustained period, typically for six months. A loan that has not been placed on nonaccrual may be restructured and such loan may remain on accrual status after such restructuring. In these circumstances, the borrower has made payments before and after the restructuring. Generally, this restructuring involves a reduction in the loan interest rate and/or a change to interest‑only payments for a period of time. A restructured loan is considered impaired despite its accrual status and a specific reserve is calculated based on the present value of expected cash flows discounted at the loan’s effective interest rate or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Allowance for Loan Losses. The allowance for loan losses (“allowance”) provides for probable losses in the loan portfolio that have been identified with specific customer relationships and for probable losses believed to be inherent in the remainder of the loan portfolio but that have not been specifically identified. The allowance is comprised of specific allowances (assessed for loans that have known credit weaknesses), general allowances based on historical loan loss experience for each loan type and other factors for imprecision in the subjective nature of the general allowance methodology and an allowance for PCI loans. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is appropriate to absorb probable losses inherent in the loan portfolio. Our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Our regulators may require the Company to recognize additions to the allowance based on their judgments related to information available to them at the time of their examinations. Acquired non‑PCI and PCI loans are recorded at their estimated fair value at the date of acquisition, with the estimated fair value including a component for estimated credit losses. These loans, however, may require an allowance subsequent to their acquisition. An allowance may be set aside in the future for acquired non‑PCI loans based on our allowance methodology for non‑PCI loans. An allowance may be set aside in the future for PCI loans if the PCI loan pools experience a decrease in expected cash flows as compared to those projected at the acquisition date. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired commercial, commercial real estate, construction and land development loans, (ii) allocations, by loan classes, on loan portfolios based on historical loan loss experience and on other factors for the imprecision in the overall allowance methodology and (iii) valuation allowances on PCI loan pools based on decreases in expected cash flows. The first element reflects the Company’s establishment of valuation allowances based upon probable losses identified during the systematic review of impaired commercial, commercial real estate, construction and land development loans in the non‑purchased credit impaired loan portfolios. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, expected future cash flows and discounted collateral exposure. The Company measures the investment in an impaired loan based on one of three methods: the loan’s observable market price; the fair value of the collateral; or the present value of expected future cash flows discounted at the loan’s effective interest rate. It is the Company’s general policy to, at least annually, obtain new appraisals on impaired loans that are primarily secured by real estate. When the Company determines that the net realizable value of the collateral is less than the carrying value of an impaired loan on nonaccrual status and a portion is deemed not collectible, the portion of the impairment that is deemed not collectible is charged off and deducted from the allowance. The remaining carrying value of the impaired loan is classified as a nonperforming loan. When the Company determines that the net realizable value of the collateral is less than the carrying value of an impaired loan but believes it is probable it will recover this impairment, the Company establishes a valuation allowance for such impairment. The second element relates to allocations, by loan classes, on loan portfolios based on historical loan loss experience and on other factors for the imprecision in the overall allowance methodology. All loans are not evaluated individually for impairment and any individually evaluated loans determined not to be impaired are segmented into groups based on similar risk characteristics, as described above. Historical loss rates for each risk group, which are updated quarterly, are quantified using all recorded loan charge‑offs and recoveries and changes in specific allowances on loans. These historical loss rates for each risk group are used as the starting point to determine the level of the allowance. The Company’s methodology incorporates an estimated loss emergence period for each loan category. The loss emergence period is the period of time from when a borrower experiences a loss event and when the actual loss is recognized in the financial statements, generally at the time of initial charge‑off of the loan balance. The Company’s methodology also includes qualitative risk factors that allow management to adjust its estimate of losses based on the most recent information available and to address other limitations in the quantitative component that is based on historical loss rates. Such risk factors are generally reviewed and updated quarterly, as appropriate, and are adjusted to reflect actual changes and anticipated changes in national and local economic conditions and developments, the volume and severity of delinquent and internally classified loans, loan concentrations, assessment of trends in collateral values, and changes in lending policies and procedures, including underwriting standards and collections, charge‑off and recovery practices. The third element relates to PCI loans. PCI loans are aggregated into pools based on common risk characteristics. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors including changes in property values of collateral dependent loans, default rates and loss severities. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to PCI loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in, first, a reduction in the allowance allocated to PCI loans for the particular pool to the extent an allowance has been previously recorded, and then as an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in current and subsequent periods.
Loans Held for Sale	Loans Held for Sale Loans held for sale consist of residential and commercial FHA mortgage loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method better reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. The changes in the fair value of loans held for sale are reflected in commercial FHA revenue and residential mortgage banking revenue on the consolidated statements of income.
Mortgage Repurchase Reserve	Mortgage Repurchase Reserve The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to investors are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis. The Company’s agreements to sell residential mortgage loans usually require general representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability, which if subsequently untrue or breached, could require the Company to indemnify or repurchase certain loans affected. The balance in the repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Company could incur from repurchasing a loan, as well as loss reimbursements, indemnification, and other “make whole” settlement resolutions. Refer to Note 22 in the consolidated financial statements for additional information on the mortgage repurchase reserve.
Premises and Equipment	Premises and Equipment Premises, furniture and equipment, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation expense is computed principally on the straight‑line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight‑line basis over the shorter of the life of the asset or the lease term. Estimated useful lives of premises and equipment range from 10 to 40 years and from 3 to 10 years, respectively. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. We periodically review the carrying value of our long‑lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount.
Other Real Estate Owned	Other Real Estate Owned Other real estate owned (“OREO”) represents properties acquired through foreclosure or other proceedings and is initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost basis. After foreclosure, OREO is held for sale and is carried at the lower of cost or fair value less estimated costs of disposal. Any write‑down to fair value at the time of transfer to OREO is charged to the allowance for loan losses. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income and expense from the operations of OREO and decreases in valuations are included in OREO expense in the consolidated statements of income.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill resulting from a business combination is generally determined as the excess of the fair value of consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. Other intangible assets, which consist of core deposit and acquired customer relationship intangible assets, are typically amortized over a period ranging from 1 to 20 years using an accelerated method of amortization. On a periodic basis, we evaluate events and circumstances that may indicate a change in the recoverability of the carrying value.
Mortgage Servicing Rights	Mortgage Servicing Rights When loans are sold with servicing retained, a servicing rights asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. As the Company has not elected to subsequently measure servicing assets under the fair value measurement method, the Company follows the amortization method. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. The Company periodically evaluates its mortgage servicing rights asset for impairment. Impairment is assessed based on the fair value of net servicing cash flows at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are determined based on current market conditions. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the mortgage servicing rights exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other‑than‑temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write‑down of the mortgage servicing rights asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write‑down permanently reduces the carrying value of the mortgage servicing rights asset and valuation allowance, precluding subsequent recoveries. We recognize revenue from servicing residential and commercial FHA mortgages as earned based on the specific contractual terms. This revenue, along with changes in impairment on servicing rights, is reported in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.
Mortgage Servicing Rights Held for Sale	Mortgage Servicing Rights Held for Sale Mortgage servicing rights held for sale consist of residential mortgage servicing rights that management has committed to a plan to sell and has the ability to sell them to a buyer in their present condition. Mortgage servicing rights held for sale are carried at the lower of their carrying value or fair value less estimated costs to sell. Decreases in the valuation of mortgage servicing rights held for sale are included in loss on mortgage servicing rights held for sale in the consolidated statements of income.
Cash Surrender Value of Life Insurance Policies	Cash Surrender Value of Life Insurance Policies We have purchased life insurance policies on the lives of certain officers and key employees and are the owner and beneficiary of the policies. These policies provide an efficient form of funding for long‑term retirement and other employee benefits costs. These policies are recorded as cash surrender value of life insurance policies in the consolidated balance sheets at each policy’s respective cash surrender value, with changes in value recorded in noninterest income in the consolidated statements of income.
Derivative Financial Instruments	Derivative Financial Instruments All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. On the date the derivative contract is entered into, the derivative is designated as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability “cash flow” hedge. Changes in the fair value of a derivative that is highly effective as—and that is designated and qualifies as—a cash flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable‑rate asset or liability are recorded in earnings). We formally document all relationships between hedging instruments and hedged items, as well as the risk‑management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, hedge accounting is prospectively discontinued, as discussed below. Hedge accounting is prospectively discontinued when (a) it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is no longer designated as a hedge instrument, because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were in accumulated other comprehensive income will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the consolidated balance sheet, with subsequent changes in its fair value recognized in current‑period earnings. The Company also enters into interest rate lock commitments, which are agreements to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. Interest rate lock commitments for mortgage loans that will be held for resale are carried at fair value on the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue. The Company also has forward loan sales commitments related to its interest rate lock commitments and its loans held for sale. Forward loan sales commitments that meet the definition of a derivative are recorded at fair value in the consolidated balance sheet with changes in fair value reflected in commercial FHA and residential mortgage banking income.
Credit Related Financial Instruments	Credit‑Related Financial Instruments In the ordinary course of business, the Company has entered into credit‑related financial instruments consisting of commitments to extend credit, commercial letters of credit and standby letters of credit. The notional amount of these commitments is not reflected in the consolidated financial statements until they are funded. A liability for losses related to unfunded commitments is maintained by the Company at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the consolidated balance sheets. The determination of the adequacy of the liability is based on an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Company’s allowance for loan losses, as discussed above. Net adjustments to the liability for unfunded commitments are included in other noninterest expense in the consolidated statements of income. The liability for unfunded commitments totaled $1.2 million and $670,000 at December 31, 2018 and 2017, respectively.
Income Taxes	Income Taxes We file consolidated federal and state income tax returns, with each organization computing its taxes on a separate return basis. The provision for income taxes is based on income as reported in the consolidated financial statements. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. The deferred tax assets and liabilities are computed based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. When tax returns are filed, it is highly certain that some positions taken will be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more‑likely than‑not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. Interest and penalties associated with unrecognized tax benefits are to be classified as additional income taxes in the consolidated statements of income. The Company evaluated its tax positions and concluded that it had taken no uncertain tax positions that require adjustment in the consolidated financial statements.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. This amendment superseded and replaced nearly all existing revenue recognition guidance, including industry-specific guidance, established a new control-based revenue recognition model, changed the basis for deciding when revenue is recognized over time or at a point in time, provided new and more detailed guidance on specific topics and expanded and improved disclosures about revenue. The impact of applying Topic 606 to the Company’s consolidated financial statements was determined to be immaterial on the measurement or recognition of revenue. The Company elected to implement this standard using the modified retrospective approach, with the cumulative effect recorded as an adjustment to opening retained earnings at January 1, 2018. Since the impact of applying the standard was determined to be immaterial, the Company did not record a cumulative effect adjustment to beginning retained earnings on January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with previous GAAP. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The recognition of revenue associated with these noninterest income streams did not change significantly from current practice upon adoption of Topic 606. The noninterest income streams considered in-scope by Topic 606 are discussed in Note 25 in the consolidated financial statements.
Stock Compensation Plans	Stock Compensation Plans Compensation cost for share‑based payment awards is based on the fair value of the award at the date of grant. The fair value of stock options is estimated at the date of grant using a Black‑Scholes option pricing model. The fair value of restricted stock is determined based on the Company’s current market price on the date of grant. Compensation cost is recognized in the consolidated financial statements on a straight‑line basis over the requisite service period, which is generally defined as the vesting period. Additionally, the Company accounts for forfeitures as they occur.
Comprehensive Income	Comprehensive Income Comprehensive income is defined as net income plus transactions and other occurrences that are the result of non‑owner changes in equity. Non‑owner equity changes include unrealized gains and losses on available for sale securities and changes in the fair value of cash flow hedges. These are components of comprehensive income and do not have an impact on the Company’s net income.
Earnings per Share	Earnings per Share Earnings per share are calculated utilizing the two‑class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards FASB ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.” – In January 2016, the FASB issued this standard which is intended to improve the recognition and measurement of financial instruments. This standard, among other things: (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The adoption of ASU 2016-1 on January 1, 2018 did not have a material impact on its consolidated financial statements. FASB ASU 2016-02, “Leases (Topic 842)” – In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This update revises the model to assess how a lease should be classified and provides guidance for lessees and lessors, when presenting right-of-use assets and lease liabilities on the balance sheet. Under the new guidance, lessees will be required to recognize the following for all leases, with the exception of short-term leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. This update became effective for the Company on January 1, 2019. In July 2018, the FASB issued supplementary ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides for an additional transition method allowing for a modified retrospective adoption approach where the guidance would only be applied to existing leases in effect at the adoption date and new leases going forward, with a cumulative effect adjustment to retained earnings as of the adoption date and additional required disclosures regarding leasing arrangements only for those periods after adoption. This update also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company has elected the practical expedients permitted by ASU 2018-11. The Company developed and is currently executing on a project plan for implementing the provisions of the new lease standard. At the adoption date, the Company reported increased assets and liabilities of approximately $12.1 million on its consolidated statement of financial condition as a result of recognizing right-of-use assets and lease liabilities related to non-cancelable operating lease agreements for office space, which currently are not recorded on its consolidated statement of financial condition. The Company does not expect the adoption of this guidance will be material to its Consolidated Statement of Income. FASB ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” – In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”).” The objective of this update is to improve financial reporting by providing timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will use forward-looking information to better understand their credit loss estimates. For public companies that are filers with the SEC, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted for any organization for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As previously disclosed, the Company has established a cross-functional governance structure, which oversees overall strategy for implementation of Topic 326. Additionally, a working group was formed and has developed a project plan focused on understanding the ASU, researching issues, data requirements, technology solutions and future state processes. The project plan is targeting data and model validation completion during the first half of 2019, with parallel processing of our existing allowance for loan losses model with CECL until implementation. The Company continues to focus on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls and considering various reporting disclosures. The Company also continues to believe that the adoption of the standard will result in an overall increase in the allowance for loan losses to cover credit losses over the estimated life of the financial assets. However, the magnitude of the increase in its allowance for loan losses at the adoption date will depend upon the nature and characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that time. FASB ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” – In August 2017, the FASB issued this standard, the objectives of which are to: (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. This standard is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not utilize hedge accounting. However, the Company is currently evaluating this standard to determine whether its provisions will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users. FASB ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” – In February 2018, ASU 2018-02 was issued following the enactment of the Tax Cuts and Jobs Act (the “Tax Act”), which changed the Company’s federal income tax rate from 35% to 21%. This standard allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The standard is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company adopted this standard in the first quarter of 2018. The impact of this update on the Company’s consolidated financial statements was not material. FASB ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” – In August 2018, the FASB issued ASU No. 2018-13 to improve the disclosure requirements on fair value measurements. The amendment removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements. The update also adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update become effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is not expected to have a material impact. FASB ASU No. 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract”– In August 2018, the FASB issued ASU No. 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this update become effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements.

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2018

ACQUISITIONS

Schedule of allocation of consideration


(dollars in thousands)	Alpine		Centrue
Assets acquired:
Cash and cash equivalents	$	69,459	$	42,461
Investment securities available for sale		293,428		149,013
Equity securities		8,372		—
Loans		786,186		679,582
Loans held for sale		3,416		531
Premises and equipment		18,126		17,147
Other real estate owned		53		4,983
Nonmarketable equity securities		2,038		8,168
Accrued interest receivable		4,414		2,376
Mortgage servicing rights		—		1,933
Mortgage servicing rights held for sale		3,068		—
Intangible assets		27,400		11,070
Cash surrender value of life insurance policies		22,578		36,349
Deferred tax assets, net		—		34,339
Other assets		4,770		2,256
Total assets acquired		1,243,308		990,208
Liabilities assumed:
Deposits		1,111,130		739,867
Short-term borrowings		—		14,434
FHLB advances and other borrowings		18,127		95,332
Trust preferred debentures		—		7,565
Accrued interest payable		539		275
Deferred tax liabilities, net		1,749		—
Other liabilities		4,500		3,600
Total liabilities assumed		1,136,045		861,073
Net assets acquired		107,263		129,135
Goodwill		65,964		47,444
Total consideration paid	$	173,227	$	176,579

Intangible assets:
Core deposit intangible	$	21,100	$	11,070
Customer relationship intangible		6,300		—
Total intangible assets	$	27,400	$	11,070
Estimated useful lives:
Core deposit intangible		13 years		8 years
Customer relationship intangible		13 years		N/A

Schedule of acquired loan data


						Best Estimate at
						Acquisition Date of
		Fair Value		Gross Contractual		Contractual Cash
		of Acquired Loans		Amounts Receivable		Flows Not Expected
(dollars in thousands)		at Acquisition Date		at Acquisition Date		to be Collected
Alpine:
Acquired receivables subject to ASC 310-30	$		34,993	$	50,342	$	9,254
Acquired receivables not subject to ASC 310-30			751,193		774,836		4,244
Centrue:
Acquired receivables subject to ASC 310-30		$	11,381	$	20,253	$	7,227
Acquired receivables not subject to ASC 310-30			668,201		821,338		4,835

Schedule of unaudited pro-forma information


(dollars in thousands, except per share data)	2018		2017
Revenue(1)	$	264,670	$	280,538
Net income		42,261		31,188
Diluted earnings per common share	$	1.73	$	1.28

(1)

Net interest income plus noninterest income

INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2018

INVESTMENT SECURITIES

Schedule of investment securities classified as available for sale


	2018
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
(dollars in thousands)	cost		gains		losses		value
Available for sale securities
U.S. Treasury securities	$	25,018	$	—	$	368	$	24,650
Government sponsored entity debt securities		76,554		17		887		75,684
Agency mortgage-backed securities		329,690		371		3,756		326,305
State and municipal securities		156,795		3,282		815		159,262
Corporate securities		72,302		383		1,135		71,550
Total available for sale securities	$	660,359	$	4,053	$	6,961	$	657,451
Equity securities (1)							$	3,334


	2017
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
(dollars in thousands)	cost		gains		losses		value
Available for sale securities
U.S. Treasury securities	$	28,005	$	—	$	287	$	27,718
Government sponsored entity debt securities		25,445		41		275		25,211
Agency mortgage-backed securities		233,606		882		2,101		232,387
State and municipal securities		99,449		3,632		514		102,567
Corporate securities		58,904		1,087		179		59,812
Equity securities (1)		2,715		140		25		2,830
Total available for sale securities	$	448,124	$	5,782	$	3,381	$	450,525

(1)

Schedule of unrealized losses and fair values for investment securities


	2018
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	value		loss		value		loss		value		loss
Available for sale securities
U.S. Treasury securities	$	5,012	$	1	$	19,638	$	367	$	24,650	$	368
Government sponsored entity debt securities		51,717		195		23,223		692		74,940		887
Agency mortgage-backed securities		139,115		528		126,561		3,228		265,676		3,756
State and municipal securities		15,791		146		27,692		669		43,483		815
Corporate securities		32,616		575		8,535		560		41,151		1,135
Total available for sale securities	$	244,251	$	1,445	$	205,649	$	5,516	$	449,900	$	6,961


	2017
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	value		loss		value		loss		value		loss
Available for sale securities
U.S. Treasury securities	$	19,758	$	251	$	7,960	$	36	$	27,718	$	287
Government sponsored entity debt securities		24,168		275		—		—		24,168		275
Agency mortgage-backed securities		124,192		1,500		19,530		601		143,722		2,101
State and municipal securities		29,338		331		5,889		183		35,227		514
Corporate securities		5,917		85		3,463		94		9,380		179
Equity securities(1)		2,603		25		—		—		2,603		25
Total available for sale securities	$	205,976	$	2,467	$	36,842	$	914	$	242,818	$	3,381

(1)

Contractual maturity of amortized cost and fair value


	Amortized		Fair
(dollars in thousands)	cost		value
Available for sale securities:
Within one year	$	39,092	$	39,087
After one year through five years		122,564		122,554
After five years through ten years		138,494		138,937
After ten years		30,519		30,568
Mortgage-backed securities		329,690		326,305
Total available for sale securities	$	660,359	$	657,451

LOANS (Tables)

12 Months Ended

Dec. 31, 2018

LOANS

Summary of loans


	2018						2017
	Non-PCI		PCI				Non-PCI		PCI
(dollars in thousands)	Loans		Loans (1)		Total		Loans		Loans (1)		Total
Loans:
Commercial	$	806,027	$	4,857	$	810,884	$	553,257	$	2,673	$	555,930
Commercial real estate		1,619,903		19,252		1,639,155		1,427,076		12,935		1,440,011
Construction and land development		223,898		8,331		232,229		199,853		734		200,587
Total commercial loans		2,649,828		32,440		2,682,268		2,180,186		16,342		2,196,528
Residential real estate		569,289		8,759		578,048		447,602		5,950		453,552
Consumer		611,408		1,776		613,184		371,286		169		371,455
Lease financing		264,051		—		264,051		205,143		—		205,143
Total loans	$	4,094,576	$	42,975	$	4,137,551	$	3,204,217	$	22,461	$	3,226,678

(1)

The unpaid principal balance for PCI loans totaled $56.9 million and $32.8 million as of December 31, 2018 and 2017, respectively.

Summary of recorded investment (excluding PCI loans) by risk category


	2018								2017
			Commercial		Construction						Commercial		Construction
			Real		and Land						Real		and Land
(dollars in thousands)	Commercial		Estate		Development		Total		Commercial		Estate		Development		Total
Acceptable credit quality	$	748,296	$	1,536,127	$	218,798	$	2,503,221	$	510,928	$	1,384,630	$	191,872	$	2,087,430
Special mention		35,103		15,306		3,448		53,857		12,290		11,497		—		23,787
Substandard		14,139		46,976		—		61,115		27,718		14,695		—		42,413
Substandard – nonaccrual		8,489		21,494		1,171		31,154		1,266		12,482		785		14,533
Doubtful		—		—		—		—		—		—		—		—
Not graded		—		—		481		481		1,055		3,772		7,196		12,023
Total (excluding PCI)	$	806,027	$	1,619,903	$	223,898	$	2,649,828	$	553,257	$	1,427,076	$	199,853	$	2,180,186


	2018								2017
	Residential				Lease				Residential				Lease
(dollars in thousands)	Real Estate		Consumer		Financing		Total		Real Estate		Consumer		Financing		Total
Performing	$	562,019	$	610,839	$	263,094	$	1,435,952	$	441,418	$	370,999	$	203,797	$	1,016,214
Impaired		7,270		569		957		8,796		6,184		287		1,346		7,817
Total (excluding PCI)	$	569,289	$	611,408	$	264,051	$	1,444,748	$	447,602	$	371,286	$	205,143	$	1,024,031

Summary of impaired loans (excluding PCI loans)


(dollars in thousands)	2018		2017
Nonaccrual loans:
Commercial	$	8,489	$	1,266
Commercial real estate		21,494		12,482
Construction and land development		1,171		785
Residential real estate		5,894		5,204
Consumer		388		234
Lease financing		751		1,346
Total nonaccrual loans		38,187		21,317
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial		4		2,538
Commercial real estate		149		—
Construction and land development		85		—
Residential real estate		566		51
Consumer		51		53
Lease financing		206		—
Total accruing loans contractually past due 90 days or more as to interest or principal payments		1,061		2,642
Loans modified under troubled debt restructurings and still accruing:
Commercial		435		299
Commercial real estate		2,225		1,515
Construction and land development		51		58
Residential real estate		810		929
Consumer		130		—
Lease financing		—		—
Total loans modified under troubled debt restructurings and still accruing		3,651		2,801
Total impaired loans (excluding PCI)	$	42,899	$	26,760

The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance, as of December 31, 2018 and 2017:


	2018						2017
			Unpaid		Related				Unpaid		Related
	Recorded		Principal		Valuation		Recorded		Principal		Valuation
(dollars in thousands)	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans with a valuation allowance:
Commercial	$	7,945	$	8,102	$	4,448	$	3,237	$	3,297	$	526
Commercial real estate		7,496		13,844		523		2,297		3,508		329
Construction and land development		171		171		54		103		102		10
Residential real estate		4,055		4,662		554		4,028		4,705		566
Consumer		428		444		45		266		279		29
Lease financing		766		766		361		1,064		1,064		345
Total impaired loans with a valuation allowance		20,861		27,989		5,985		10,995		12,955		1,805
Impaired loans with no related valuation allowance:
Commercial		983		4,392		—		866		5,782		—
Commercial real estate		16,372		16,921		—		11,700		17,359		—
Construction and land development		1,136		1,136		—		740		780		—
Residential real estate		3,215		3,516		—		2,156		2,380		—
Consumer		141		145		—		21		21		—
Lease financing		191		191		—		282		282		—
Total impaired loans with no related valuation allowance		22,038		26,301		—		15,765		26,604		—
Total impaired loans:
Commercial		8,928		12,494		4,448		4,103		9,079		526
Commercial real estate		23,868		30,765		523		13,997		20,867		329
Construction and land development		1,307		1,307		54		843		882		10
Residential real estate		7,270		8,178		554		6,184		7,085		566
Consumer		569		589		45		287		300		29
Lease financing		957		957		361		1,346		1,346		345
Total impaired loans (excluding PCI)	$	42,899	$	54,290	$	5,985	$	26,760	$	39,559	$	1,805

The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the years ended December 31, 2018, 2017 and 2016 are included in the table below:


	2018				2017				2016
			Interest Income				Interest Income				Interest Income
	Average		Recognized		Average		Recognized		Average		Recognized
	Recorded		While on		Recorded		While on		Recorded		While on
(dollars in thousands)	Investment		Impaired Status		Investment		Impaired Status		Investment		Impaired Status
Impaired loans with a valuation allowance:
Commercial	$	8,359	$	30	$	2,969	$	15	$	3,974	$	15
Commercial real estate		8,082		45		5,408		70		2,379		306
Construction and land development		175		3		83		4		87		7
Residential real estate		3,855		41		3,854		38		3,782		30
Consumer		360		—		299		—		221		—
Lease financing		766		—		1,064		—		1,331		—
Total impaired loans with a valuation allowance		21,597		119		13,677		127		11,774		358
Impaired loans with no related valuation allowance:
Commercial		1,233		—		2,369		—		5,604		1
Commercial real estate		16,253		22		16,822		—		16,847		17
Construction and land development		1,152		—		815		—		—		—
Residential real estate		3,348		22		2,055		3		1,179		2
Consumer		95		—		13		—		26		—
Lease financing		191		—		282		—		—		—
Total impaired loans with no related valuation allowance		22,272		44		22,356		3		23,656		20
Total impaired loans:
Commercial		9,592		30		5,338		15		9,578		16
Commercial real estate		24,335		67		22,230		70		19,226		323
Construction and land development		1,327		3		898		4		87		7
Residential real estate		7,203		63		5,909		41		4,961		32
Consumer		455		—		312		—		247		—
Lease financing		957		—		1,346		—		1,331		—
Total impaired loans (excluding PCI)	$	43,869	$	163	$	36,033	$	130	$	35,430	$	378

Summary of aging status of recorded investments in loans by portfolio (excluding PCI loans)


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
(dollars in thousands)	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	4,013	$	2,581	$	4	$	8,489	$	15,087	$	790,940	$	806,027
Commercial real estate		1,667		945		149		21,494		24,255		1,595,648		1,619,903
Construction and land development		989		—		85		1,171		2,245		221,653		223,898
Residential real estate		1,292		728		566		5,894		8,480		560,809		569,289
Consumer		5,211		2,533		51		388		8,183		603,225		611,408
Lease financing		4,322		932		206		751		6,211		257,840		264,051
Total loans (excluding PCI)	$	17,494	$	7,719	$	1,061	$	38,187	$	64,461	$	4,030,115	$	4,094,576

The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2017:


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
(dollars in thousands)	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	3,282	$	177	$	2,538	$	1,266	$	7,263	$	545,994	$	553,257
Commercial real estate		3,116		630		—		12,482		16,228		1,410,848		1,427,076
Construction and land development		1,953		—		—		785		2,738		197,115		199,853
Residential real estate		897		632		51		5,204		6,784		440,818		447,602
Consumer		2,824		1,502		53		234		4,613		366,673		371,286
Lease financing		392		—		—		1,346		1,738		203,405		205,143
Total loans (excluding PCI)	$	12,464	$	2,941	$	2,642	$	21,317	$	39,364	$	3,164,853	$	3,204,217

Summary of TDRs loans


	2018						2017
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	435	$	406	$	841	$	299	$	—	$	299
Commercial real estate		2,225		9,103		11,328		1,515		9,915		11,430
Construction and land development		51		—		51		58		—		58
Residential real estate		810		853		1,663		929		282		1,211
Consumer		130		—		130		—		—		—
Lease financing		—		—		—		—		—		—
Total loans (excluding PCI)	$	3,651	$	10,362	$	14,013	$	2,801	$	10,197	$	12,998

(1)

These loans are still accruing interest.

(2)

These loans are included in non-accrual loans in the preceding tables.


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Troubled debt restructurings:
Number of loans		2		2		—		7		25		—		36
Pre-modification outstanding balance	$	423	$	1,571	$	—	$	708	$	130	$	—	$	2,832
Post-modification outstanding balance		408		1,565		—		696		130		—		2,799

Troubled debt restructurings that subsequently defaulted
Number of loans		—		—		—		—		—		—		—
Recorded balance	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Troubled debt restructurings:
Number of loans		1		1		—		4		—		—		6
Pre-modification outstanding balance	$	362	$	323	$	—	$	528	$	—	$	—	$	1,213
Post-modification outstanding balance		299		323		—		508		—		—		1,130

Troubled debt restructurings that subsequently defaulted
Number of loans		—		—		—		—		—		—		—
Recorded balance	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
(dollars in thousands)
Troubled debt restructurings:
Number of loans		3		2		—		3		—		—		8
Pre-modification outstanding balance	$	685	$	10,207	$	—	$	206	$	—	$	—	$	11,098
Post-modification outstanding balance		647		10,139		—		206		—		—		10,992

Troubled debt restructurings that subsequently defaulted
Number of loans		—		1		—		—		—		—		1
Recorded balance	$	—	$	28	$	—	$	—	$	—	$	—	$	28

Summary of changes in accretable yield for PCI loans



(dollars in thousands)	2018		2017		2016
Balance, beginning of period	$	5,732	$	9,035	$	10,526
New loans purchased – Alpine acquisition		6,095		—		—
New loans purchased – Centrue acquisition		—		1,929		—
Accretion		(6,092)		(5,546)		(8,579)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)		2,682		120		915
Reclassification from non-accretable		3,823		194		6,173
Balance, end of period	$	12,240	$	5,732	$	9,035

Summary of changes in allowance for loan losses


	2018						2017						2016
	Non-PCI		PCI				Non-PCI		PCI				Non-PCI		PCI
(dollars in thousands)	Loans		Loans		Total		Loans		Loans		Total		Loans		Loans		Total
Balance, beginning of period	$	14,902	$	1,529	$	16,431	$	13,744	$	1,118	$	14,862	$	14,093	$	1,895	$	15,988
Provision for loan losses		9,246		184		9,430		9,295		261		9,556		6,425		(834)		5,591
Loan charge-offs		(6,844)		(145)		(6,989)		(9,822)		—		(9,822)		(7,668)		(68)		(7,736)
Loan recoveries		2,031		—		2,031		1,685		150		1,835		894		125		1,019
Net loan (charge-offs) recoveries		(4,813)		(145)		(4,958)		(8,137)		150		(7,987)		(6,774)		57		(6,717)
Balance, end of period	$	19,335	$	1,568	$	20,903	$	14,902	$	1,529	$	16,431	$	13,744	$	1,118	$	14,862

Summary of changes in allowance for loan losses, by loan portfolio


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for loan losses in 2018:
Beginning balance	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Provision for loan losses		4,941		(207)		(227)		(517)		2,156		3,284		9,430
Charge-offs		(1,236)		(492)		—		(361)		(1,876)		(3,024)		(6,989)
Recoveries		563		378		81		169		530		310		2,031
Ending balance	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903
Allowance for loan losses at December 31, 2018 attributable to:
Loans individually evaluated for impairment	$	4,405	$	476	$	48	$	233	$	—	$	330	$	5,492
Loans collectively evaluated for impairment		43		47		6		321		45		31		493
Non-impaired loans collectively evaluated for impairment		4,971		3,356		318		1,051		1,926		1,728		13,350
Loans acquired with deteriorated credit quality (1)		105		844		—		436		183		—		1,568
Total allowance for loan losses	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903
Recorded investment (loan balance) at December 31, 2018:
Impaired loans individually evaluated for impairment	$	8,520	$	23,431	$	1,249	$	3,929	$	5	$	668	$	37,802
Impaired loans collectively evaluated for impairment		408		437		58		3,341		564		289		5,097
Non-impaired loans collectively evaluated for impairment		797,099		1,596,035		222,591		562,019		610,839		263,094		4,051,677
Loans acquired with deteriorated credit quality (1)		4,857		19,252		8,331		8,759		1,776		—		42,975
Total recorded investment (loan balance)	$	810,884	$	1,639,155	$	232,229	$	578,048	$	613,184	$	264,051	$	4,137,551

(1)


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for loan losses in 2017:
Beginning balance	$	5,920	$	3,225	$	345	$	2,929	$	930	$	1,513	$	14,862
Provision for loan losses		(118)		7,879		110		1		954		730		9,556
Charge-offs		(737)		(6,552)		—		(698)		(794)		(1,041)		(9,822)
Recoveries		191		492		63		518		254		317		1,835
Ending balance	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Allowance for loan losses at December 31, 2017 attributable to:
Loans individually evaluated for impairment	$	221	$	281	$	5	$	302	$	—	$	261	$	1,070
Loans collectively evaluated for impairment		305		48		5		264		29		84		735
Non-impaired loans collectively evaluated for impairment		4,230		4,379		504		1,644		1,166		1,174		13,097
Loans acquired with deteriorated credit quality (1)		500		336		4		540		149		—		1,529
Total allowance for loan losses	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Recorded investment (loan balance) at December 31, 2017:
Impaired loans individually evaluated for impairment	$	1,285	$	13,554	$	797	$	3,700	$	4	$	568	$	19,908
Impaired loans collectively evaluated for impairment		2,818		443		46		2,484		283		778		6,852
Non-impaired loans collectively evaluated for impairment		549,154		1,413,079		199,010		441,418		370,999		203,797		3,177,457
Loans acquired with deteriorated credit quality (1)		2,673		12,935		734		5,950		169		—		22,461
Total recorded investment (loan balance)	$	555,930	$	1,440,011	$	200,587	$	453,552	$	371,455	$	205,143	$	3,226,678

PREMISES AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2018

PREMISES AND EQUIPMENT

Summary of premises and equipment


(dollars in thousands)	2018		2017
Land	$	20,231	$	16,109
Buildings and improvements		76,141		63,837
Furniture and equipment		29,858		25,843
Total		126,230		105,789
Accumulated depreciation		(31,390)		(29,627)
Premises and equipment, net	$	94,840	$	76,162

MORTGAGE SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 31, 2018

MORTGAGE SERVICING RIGHTS

Schedule of other mortgage notes serviced and changes in our mortgage servicing rights




(dollars in thousands)	2018		2017		2016
Mortgage servicing rights:
Balance, beginning of period	$	55,714	$	52,006	$	47,589
Originated servicing		3,174		6,287		6,805
Amortization		(2,636)		(2,579)		(2,388)
Balance, end of period		56,252		55,714		52,006
Valuation allowances:
Balance, beginning of period		3,254		1,712		—
Additions		931		1,542		1,920
Reductions		(1,380)		—		(208)
Balance, end of period		2,805		3,254		1,712
Mortgage servicing rights, net	$	53,447	$	52,460	$	50,294
Fair value:
At beginning of period	$	52,460	$	50,294	$	47,589
At end of period	$	53,447	$	52,460	$	50,294

Schedule of summary of key assumptions


					Remaining
	Servicing		Interest		Years to	Prepayment		Servicing		Discount
	Fee		Rate		Maturity	Rate		Cost		Rate
December 31, 2018:
Commercial FHA mortgage loans	0.13	%	3.67	%	30.1	8.24	%	$	1,000	10 - 14	%

December 31, 2017:
Commercial FHA mortgage loans	0.12	%	3.67	%	30.3	8.27	%	$	1,000	10 - 14	%

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

GOODWILL AND INTANGIBLE ASSETS

Schedule of intangible assets


(dollars in thousands)	2018		2017
Banking	$	149,035	$	82,986
Commercial FHA origination and servicing		10,892		10,892
Wealth management		4,746		4,746
Total goodwill	$	164,673	$	98,624

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of December 31, 2018 and 2017 are summarized as follows:


	2018						2017
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
(dollars in thousands)	Amount		Amortization		Total		Amount		Amortization		Total
Core deposit intangibles	$	52,712	$	(24,803)	$	27,909	$	31,612	$	(18,943)	$	12,669
Customer relationship intangibles		13,771		(4,304)		9,467		7,471		(3,208)		4,263
Total intangible assets	$	66,483	$	(29,107)	$	37,376	$	39,083	$	(22,151)	$	16,932

Schedule of estimated future amortization expense of intangible assets


(dollars in thousands)	Amount
Year ending December 31,
2019	$	6,716
2020		5,792
2021		5,032
2022		4,326
2023		3,620
Thereafter		11,890
Total	$	37,376

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2018

DERIVATIVE INSTRUMENTS

Schedule of derivative instruments, fair value and notional amounts


	Notional Amount				Fair Value Gain
(dollars in thousands)	2018		2017		2018		2017
Derivative Instruments (included in Other Assets):
Interest rate lock commitments	$	264,710	$	345,152	$	4,492	$	6,331
Forward commitments to sell mortgage-backed securities		276,871		372,824		—		31
Total	$	541,581	$	717,976	$	4,492	$	6,362


	Notional Amount				Fair Value Loss
(dollars in thousands)	2018		2017		2018		2017
Derivative Instruments (included in Other Liabilities):
Forward commitments to sell mortgage-backed securities	$	54	$	—	$	—	$	—

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2018

DEPOSITS

Schedule summarizes the classification of deposits


(dollars in thousands)	2018		2017
Noninterest-bearing demand	$	972,164	$	724,443
Interest-bearing:
Checking		1,002,275		785,934
Money market		862,171		646,426
Savings		442,132		281,212
Time		795,428		693,074
Total deposits	$	4,074,170	$	3,131,089

Schedule of maturities of time deposits


(dollars in thousands)	Amount
Year ending December 31,
2019	$	523,651
2020		135,754
2021		97,871
2022		22,183
2023		15,968
Thereafter		1
Total	$	795,428

SHORT-TERM BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2018

SHORT-TERM BORROWINGS

Schedule of short term borrowings


	Repurchase Agreements
(dollars in thousands)	2018			2017
Outstanding at period-end	$	124,235		$	156,126
Average amount outstanding		138,135			163,461
Maximum amount outstanding at any month end		173,387			196,278
Weighted average interest rate:
During period		0.51	%		0.23	%
End of period		0.71	%		0.28	%

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2018

FHLB ADVANCES AND OTHER BORROWINGS

Schedule of Federal Home Loan Bank (FHLB) advances


(dollars in thousands)	2018		2017
Midland States Bancorp, Inc.
Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 4.63% and 3.63% at December 31, 2018 and 2017, respectively – maturing May 25, 2020	$	32,840	$	37,113
Series G redeemable preferred stock - 181 shares at $1,000 per share		181		181
Midland States Bank
FHLB advances – fixed rate, fixed term of $87.7 million and $145.0 million, at rates averaging 2.35% and 1.35% at December 31, 2018 and 2017, respectively – maturing through February 2023, and putable fixed rate of $520.0 million and $305.0 million at rates averaging 2.09% and 1.29% at December 31, 2018 and 2017, respectively, – maturing through August 2025 with call provisions through August 2021		607,610		450,137
FHLB advances – variable rate, fixed term, at rates averaging 1.20% at December 31, 2017 – maturing through March 2018		—		9,000
Other		—		5
Total FHLB advances and other borrowings	$	640,631	$	496,436

Schedule of payments over the next five years


(dollars in thousands)	Amount
2019	$	73,074
2020		30,953
2021		5,814
2022		153,210
2023		267,580
Thereafter		110,000
Total	$	640,631

SUBORDINATED DEBT (Tables)

12 Months Ended

Dec. 31, 2018

SUBORDINATED DEBT

Schedule of summary of company's subordinated debt


(dollars in thousands)	2018		2017
Subordinated debt issued June 2015 – fixed interest rate of 6.00% for the first five years through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, $40,325 maturing June 18, 2025	$	39,871	$	39,800
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $15,000 maturing June 18, 2025		14,831		14,805
Subordinated debt issued October 2017 - fixed interest rate of 6.25% for the first five years through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 maturing October 15, 2027		39,432		39,367
Total subordinated debt	$	94,134	$	93,972

TRUST PREFERRED DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2018

TRUST PREFERRED DEBENTURES

Summary of trust preferred debentures


(dollars in thousands)	2018		2017
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 5.23% and 4.11% at December 31, 2018 and 2017, respectively – $10,310 maturing April 23, 2034	$	10,272	$	10,269
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 5.37% and 4.23%, at December 31, 2018 and 2017, respectively – $3,093 maturing January 23, 2034		2,209		2,151
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 4.54% and 3.34% at December 31, 2018 and 2017, respectively – $20,619 maturing December 31, 2036		14,074		13,911
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 4.21% and 2.98% at December 31, 2018 and 2017, respectively – $20,619 maturing September 6, 2037		13,249		13,084
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 5.44% and 4.25% at December 31, 2018 and 2017, respectively - $10,310 maturing June 17, 2034		7,990		7,915
Total trust preferred debentures	$	47,794	$	47,330

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

Schedule of components of income taxes


(dollars in thousands)	2018		2017		2016
Federal:
Current	$	55	$	(696)	$	1,718
Deferred		6,748		11,632		11,381
State:
Current		807		(921)		2,630
Deferred		3,774		400		3,160
Total income tax expense	$	11,384	$	10,415	$	18,889

Schedule of reconciliation of income tax expense


(dollars in thousands)	2018		2017		2016
Expected income taxes	$	10,665	$	9,244	$	17,648
Less income tax effect of:
Tax exempt interest, net		(1,441)		(1,635)		(1,637)
State tax, net of federal benefit		4,028		(110)		3,132
Increase in cash surrender value of life insurance policies		(854)		(969)		(1,007)
Equity-based compensation benefit		(62)		(1,297)		(366)
Non-deductible transaction costs		71		389		—
Valuation allowance		(409)		(229)		631
Effect of federal rate change enacted in 2017		—		4,540		—
Other		(614)		482		488
Actual income tax expense	$	11,384	$	10,415	$	18,889

Schedule of deferred tax assets, net


(dollars in thousands)	2018		2017
Assets:
Allowance for loan losses	$	5,748	$	4,405
Deferred compensation		2,158		1,896
Loans		6,579		3,896
Write-down of other real estate owned		563		776
Tax credits		1,041		1,501
Nonaccrual interest		730		708
Unrealized loss on securities		802		—
Stock compensation		700		907
Deferred loan fees, net of costs		—		133
Net operating losses		17,417		20,097
Accrued litigation		179		101
Allowance for repurchase reserves		135		100
Allowance for unfunded commitments		319		180
Fair value adjustment on investments		1,330		—
Charitable contributions		202		58
Other, net		720		324
Deferred tax assets		38,623		35,082
Valuation allowance		—		(409)
Deferred tax assets, net of valuation allowance		38,623		34,673
Liabilities:
Premises and equipment		3,522		1,657
Unrealized gain on securities		—		412
Mortgage servicing rights		11,460		11,424
Fair value adjustment on trust preferred debentures		4,694		4,700
Federal Home Loan Bank stock dividends		391		310
Deferred loan costs, net of fees		1,495		—
Intangible assets		8,741		2,729
Accounting method changes		74		399
Prepaid expenses		708		796
Software development costs		1,667		—
Leased equipment		4,351		—
Other, net		269		222
Deferred tax liabilities		37,372		22,649
Deferred tax assets, net	$	1,251	$	12,024

STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2018

STOCK BASED COMPENSATION

Schedule of fair value of each grant which is estimated at the grant date using the Black Scholes option pricing model with the following weighted average assumptions


	2017		2016
Dividend yield	2.50	%	3.00	%
Expected volatility	16.63		16.98
Risk free interest rate	2.12		1.64
Expected life	6.25	years	6.25	years

Summary of our stock option plan and changes made


	2018					2017
				Weighted					Weighted
		Weighted		average			Weighted		average
		average		remaining			average		remaining
		exercise		contractual			exercise		contractual
	Shares	price		life		Shares	price		life
Options outstanding, beginning of year	1,148,537	$	19.39			1,319,259	$	18.73
Options granted	—		—			31,259		32.89
Options exercised	(108,344)		16.42			(179,760)		16.02
Options forfeited	(34,049)		26.27			(22,221)		26.08
Options outstanding, end of year	1,006,144	$	19.48	4.9	years	1,148,537	$	19.39	5.8	years
Options exercisable	885,817	$	18.53	4.6	years	673,706	$	17.55	4.6	years
Options vested and expected to vest	991,774	$	19.38	4.9	years	1,088,853	$	19.27	5.7	years

Summary of information about the Company's nonvested stock option activity


		Weighted
		average
		grant date
Stock Options	Shares	fair value
Nonvested at December 31, 2017	474,831	$	2.83
Granted	—		—
Vested	(324,508)		2.72
Forfeited	(29,996)		2.91
Nonvested at December 31, 2018	120,327	$	3.11

Summary of the activity for restricted stock awards


		Weighted
		average
	Number	grant date
	outstanding	fair value
Nonvested at December 31, 2017	149,368	$	28.83
Granted during the year	138,683		28.47
Vested during the year	(56,907)		27.95
Forfeited during the year	(33,427)		30.17
Nonvested at December 31, 2018	197,717	$	28.61

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

EARNINGS PER SHARE

Schedule of basic and diluted earnings per common share




(dollars in thousands, except per share data)	2018		2017		2016
Net income	$	39,421	$	16,056	$	31,542
Preferred stock dividends		(330)		(184)		—
Preferred stock, premium amortization		189		101		—
Net income available to common shareholders equity		39,280		15,973		31,542
Common shareholder dividends		(19,838)		(13,922)		(9,797)
Unvested restricted stock award dividends		(139)		(86)		(56)
Undistributed earnings to unvested restricted stock awards		(123)		(11)		(110)
Undistributed earnings to common shareholders	$	19,180	$	1,954	$	21,579
Basic
Distributed earnings to common shareholders	$	19,838	$	13,922	$	9,797
Undistributed earnings to common shareholders		19,180		1,954		21,579
Total common shareholders earnings, basic	$	39,018	$	15,876	$	31,376
Diluted
Distributed earnings to common shareholders	$	19,838	$	13,922	$	9,797
Undistributed earnings to common shareholders		19,180		1,954		21,579
Total common shareholders earnings		39,018		15,876		31,376
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		2		—		2
Total common shareholders earnings, diluted	$	39,020	$	15,876	$	31,378
Weighted average common shares outstanding, basic		23,130,475		17,781,631		14,130,552
Options and warrants		418,550		501,583		298,287
Weighted average common shares outstanding, diluted		23,549,025		18,283,214		14,428,839
Basic earnings per common share	$	1.69	$	0.89	$	2.22
Diluted earnings per common share		1.66		0.87		2.17

CAPITAL REQUIREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

CAPITAL REQUIREMENTS

Schedule of actual and required capital amounts and ratios


	2018
									Required to be
					Minimum Required				Well Capitalized Under
					For Capital				Prompt Corrective
	Actual				Adequacy Purposes				Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio			Amount	Ratio
Total capital (to risk-weighted assets):
Midland States Bancorp, Inc.	$	584,409	12.79	%	$	365,547	8.00	%		N/A	N/A
Midland States Bank		583,465	12.76			365,894	8.00		$	457,368	10.00	%
Tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		468,212	10.25			274,160	6.00			N/A	N/A
Midland States Bank		561,402	12.27			274,421	6.00			365,894	8.00
Common equity tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		400,480	8.76			205,620	4.50			N/A	N/A
Midland States Bank		561,402	12.27			205,815	4.50			297,289	6.50
Tier 1 leverage (to average assets):
Midland States Bancorp, Inc.		468,212	8.53			219,602	4.00			N/A	N/A
Midland States Bank		561,402	10.22			219,622	4.00			274,528	5.00


	2017
									Required to be
					Minimum Required				Well Capitalized Under
					For Capital				Prompt Corrective
	Actual				Adequacy Purposes				Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio			Amount	Ratio
Total capital (to risk-weighted assets):
Midland States Bancorp, Inc.	$	478,914	13.26	%	$	288,895	8.00	%		N/A	N/A
Midland States Bank		445,285	12.32			289,252	8.00		$	361,565	10.00	%
Tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		367,841	10.19			216,671	6.00			N/A	N/A
Midland States Bank		428,184	11.84			216,939	6.00			289,252	8.00
Common equity tier 1 capital (to risk-weighted assets):
Midland States Bancorp, Inc.		304,974	8.45			162,503	4.50			N/A	N/A
Midland States Bank		428,184	11.84			162,704	4.50			235,017	6.50
Tier 1 leverage (to average assets):
Midland States Bancorp, Inc.		367,841	8.63			170,566	4.00			N/A	N/A
Midland States Bank		428,184	10.04			170,608	4.00			213,260	5.00

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2018

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of assets and liabilities measured and recorded at fair value


	2018
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
(dollars in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	24,650	$	24,650	$	—	$	—
Government sponsored entity debt securities		75,684		—		75,684		—
Agency mortgage-backed securities		326,305		—		326,305		—
State and municipal securities		159,262		—		159,262		—
Corporate securities		71,550		—		69,627		1,923
Equity securities		3,334		—		3,334		—
Loans held for sale		30,401		—		30,401		—
Interest rate lock commitments		4,492		—		4,492		—
Interest rate swap contracts		145		—		145		—
Total	$	695,823	$	24,650	$	669,250	$	1,923
Liabilities
Interest rate swap contracts	$	145	$	—	$	145	$	—

Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	$	53,447	$	—	$	—	$	53,447
Mortgage servicing rights held for sale		3,545		3,545		—		—
Impaired loans		11,238		—		9,226		2,012
Other real estate owned		1,439		—		1,439		—
Assets held for sale		1,687		—		1,687		—


	2017
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
(dollars in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	27,718	$	27,718	$	—	$	—
Government sponsored entity debt securities		25,211		—		25,211		—
Agency mortgage-backed securities		232,387		—		232,387		—
State and municipal securities		102,567		—		102,567		—
Corporate securities		59,812		—		55,033		4,779
Equity Securities		2,830		—		2,830		—
Loans held for sale		50,089		—		50,089		—
Interest rate lock commitments		6,331		—		6,331		—
Forward commitments to sell mortgage-backed securities		31		—		31		—
Interest rate swap contracts		17		—		17		—
Total	$	506,993	$	27,718	$	474,496	$	4,779
Liabilities
Interest rate swap contracts		17		—	$	17	$	—

Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	$	56,352	$	—	$	—	$	56,352
Mortgage servicing rights held for sale		10,176		10,176		—		—
Impaired loans		9,385		—		7,631		1,754
Other real estate owned		801		—		801		—
Assets held for sale		3,358		—		3,358		—

Schedule of losses recognized on assets measured on a non-recurring basis




(dollars in thousands)	2018		2017		2016
Mortgage servicing rights	$	—	$	2,324	$	3,135
Mortgage servicing rights held for sale		458		4,059		—
Impaired loans		5,800		7,096		2,459
Other real estate owned		301		253		247
Assets held for sale		—		1,516		1,646
Total loss on assets measured on a nonrecurring basis	$	6,559	$	15,248	$	7,487

Schedule presenting activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)


	2018		2017
					Non-Agency
	Corporate		Corporate		Mortgage-Backed
(dollars in thousands)	Securities		Securities		Securities
Balance, beginning of period	$	4,779	$	7,480	$	1
Total realized in earnings (1)		242		289		—
Total unrealized in other comprehensive income		(36)		264		—
Net settlements (principal and interest)		(3,062)		(3,254)		(1)
Balance, end of period	$	1,923	$	4,779	$	—

(1)

Amounts included in interest income from investment securities taxable in the consolidated statements of income.

Schedule presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3)

Non-recurring

Fair Value

Valuation

Unobservable

fair value measurements

(dollars in thousands)

technique

input / assumptions

Range (weighted average)

Mortgage servicing rights

53,447

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.24%)

Discount rate

10.00% - 27.00% (11.12%)

Impaired loans

2,012

Fair value of collateral

Discount for type of property,

5.00% - 7.26% (5.26%)

age of appraisal and current status

The following table presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) at December 31, 2017:

Non-recurring

Fair Value

Valuation

Unobservable

fair value measurements

(dollars in thousands)

technique

input / assumptions

Range (weighted average)

Mortgage servicing rights

56,352

Discounted cash flow

Prepayment speed

6.36% - 42.90% (8.83%)

Discount rate

8.00% - 14.50% (11.18%)

Impaired loans

1,754

Fair value of collateral

Discount for type of property,

4.84% - 18.24% (8.64%)

age of appraisal and current status

Schedule of the fair value option for newly originated residential and commercial loans held for sale


	2018						2017
	Aggregate				Contractual		Aggregate				Contractual
(dollars in thousands)	fair value		Difference		principal		fair value		Difference		principal
Residential loans held for sale	$	8,121	$	484	$	7,637	$	12,241	$	374	$	11,867
Commercial loans held for sale		22,280		595		21,685		37,846		343		37,503
Total loans held for sale	$	30,401	$	1,079	$	29,322	$	50,087	$	717	$	49,370


(dollars in thousands)	2018		2017
Residential loans held for sale	$	6	$	(74)
Commercial loans held for sale		252		(650)
Total loans held for sale	$	258	$	(724)

Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments


	2018
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
(dollars in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	210,780	$	210,780	$	210,780	$	—	$	—
Federal funds sold		2,920		2,920		2,920		—		—
Investment securities available for sale		660,785		660,785		24,650		634,212		1,923
Nonmarketable equity securities		42,472		42,472		—		42,472		—
Loans, net		4,116,648		4,091,438		—		—		4,091,438
Loans held for sale		30,401		30,401		—		30,401		—
Accrued interest receivable		16,560		16,560		—		16,560		—
Interest rate lock commitments		4,492		4,492		—		4,492		—
Interest rate swap contracts		145		145		—		145		—
Liabilities
Deposits	$	4,074,170	$	4,069,098	$	—	$	4,069,098	$	—
Short-term borrowings		124,235		124,235		—		124,235		—
FHLB and other borrowings		640,631		641,050		—		641,050		—
Subordinated debt		94,134		91,926		—		91,926		—
Trust preferred debentures		47,794		56,805		—		56,805		—
Accrued interest payable		4,855		4,855		—		4,855		—
Interest rate swap contracts		145		145		—		145		—


	2017
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
(dollars in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	214,519	$	214,519	$	214,519	$	—	$	—
Federal funds sold		683		683		683		—		—
Investment securities available for sale		450,525		450,525		27,718		418,028		4,779
Nonmarketable equity securities		34,796		34,796		—		34,796		—
Loans, net		3,210,247		3,200,016		—		—		3,200,016
Loans held for sale		50,089		50,089		—		50,089		—
Accrued interest receivable		11,715		11,715		—		11,715		—
Interest rate lock commitments		6,331		6,331		—		6,331		—
Forward commitments to sell mortgage-backed securities		31		31		—		31		—
Interest rate swap contracts		17		17		—		17		—
Liabilities
Deposits	$	3,131,089	$	3,127,626	$	—	$	3,127,626	$	—
Short-term borrowings		156,126		156,126		—		156,126		—
FHLB and other borrowings		496,436		494,634		—		494,634		—
Subordinated debt		93,972		90,860		—		90,860		—
Trust preferred debentures		45,379		46,069		—		46,069		—
Accrued interest payable		2,531		2,531		—		2,531		—
Interest rate swap contracts		17		17		—		17		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)

12 Months Ended

Dec. 31, 2018

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

Projected minimum rental payments under leases


(dollars in thousands)	Amount
Year ending December 31:
2019	$	2,878
2020		2,361
2021		2,193
2022		1,955
2023		1,397
Thereafter		2,249
Total estimated lease payments	$	13,033

Schedule of loan commitments


(dollars in thousands)	2018		2017
Commitments to extend credit	$	663,555	$	568,356
Financial guarantees – standby letters of credit		142,859		142,189

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

SEGMENT INFORMATION

Schedule of segment financial information


			Commercial FHA
			Origination and			Wealth
(dollars in thousands)	Banking		Servicing			Management	Other		Total
December 31, 2018
Net interest income (expense)	$	190,883	$	(422)	$	298	$	(10,672)	$	180,087
Provision for loan losses		9,430		—		—		—		9,430
Noninterest income		40,313		11,457		20,484		(463)		71,791
Noninterest expense		165,744		15,058		11,680		(839)		191,643
Income (loss) before income taxes (benefit)		56,022		(4,023)		9,102		(10,296)		50,805
Income taxes (benefit)		14,154		(979)		514		(2,305)		11,384
Net income (loss)	$	41,868	$	(3,044)	$	8,588	$	(7,991)	$	39,421
Total assets	$	5,571,752	$	91,108	$	18,218	$	(43,405)	$	5,637,673

December 31, 2017
Net interest income (expense)	$	135,974	$	312	$	524	$	(7,148)	$	129,662
Provision for loan losses		9,556		—		—		—		9,556
Noninterest income		27,955		18,570		13,339		(502)		59,362
Noninterest expense		129,626		13,729		8,823		819		152,997
Income (loss) before income taxes (benefit)		24,747		5,153		5,040		(8,469)		26,471
Income taxes (benefit)		17,102		(1,033)		423		(6,077)		10,415
Net income (loss)	$	7,645	$	6,186	$	4,617	$	(2,392)	$	16,056
Total assets	$	4,336,301	$	99,685	$	15,979	$	(39,264)	$	4,412,701

December 31, 2016
Net interest income (expense)	$	109,950	$	1,003	$	—	$	(5,699)	$	105,254
Provision for loan losses		5,591		—		—		—		5,591
Noninterest income		41,055		22,979		8,073		(50)		72,057
Noninterest expense		99,003		15,104		6,533		649		121,289
Income (loss) before income taxes (benefit)		46,411		8,878		1,540		(6,398)		50,431
Income taxes (benefit)		17,129		3,332		115		(1,687)		18,889
Net income (loss)	$	29,282	$	5,546	$	1,425	$	(4,711)	$	31,542
Total assets	$	3,170,630	$	129,943	$	5,550	$	(72,400)	$	3,233,723

REVENUE FROM CONTRACT WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from contract with customers

Summary of noninterest income, segregated by revenue


(dollars in thousands)	2018		2017		2016
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	16,099	$	9,751	$	5,985
Investment advisory fees		2,041		1,364		—
Investment brokerage fees		1,065		1,388		1,324
Other		1,308		837		782
Service charges on deposit accounts:
Nonsufficient fund fees		7,672		4,193		2,562
Other		2,768		1,782		1,342
Interchange revenues		10,674		5,353		3,750
Other income:
Merchant services revenue		1,650		1,103		1,697
Other		2,935		1,869		1,815
Noninterest income - out-of-scope of Topic 606		25,579		31,722		52,800
Total noninterest income	$	71,791	$	59,362	$	72,057

PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

PARENT COMPANY ONLY FINANCIAL INFORMATION

Schedule of condensed balance sheets


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2018		2017
Assets:
Cash	$	20,312	$	60,424
Investment in common stock of subsidiaries		764,483		563,541
Accrued income taxes receivable		—		3,300
Other assets		2,330		2,303
Total assets	$	787,125	$	629,568
Liabilities:
Subordinated debt	$	94,134	$	93,972
Trust preferred debentures		47,794		47,330
Other borrowings		33,021		37,294
Accrued income taxes payable		778		—
Deferred tax liabilities, net		972		252
Other liabilities		1,901		1,175
Total liabilities		178,600		180,023
Shareholders’ equity		608,525		449,545
Total liabilities and shareholders’ equity	$	787,125	$	629,568

Schedule of condensed Statement of income


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2018		2017		2016
Dividends from subsidiaries	$	17,000	$	19,500	$	—
Other income		6		4		428
Interest expense		(10,714)		(7,162)		(5,699)
Other expense		(1,180)		(1,295)		(1,130)
Income (loss) before income tax benefit and equity in undistributed income (loss) of subsidiaries		5,112		11,047		(6,401)
Income tax benefit		2,312		6,080		1,687
Income (loss) before equity in undistributed income (loss) of subsidiaries		7,424		17,127		(4,714)
Equity in undistributed income (loss) of subsidiaries		31,997		(1,071)		36,256
Net income	$	39,421	$	16,056	$	31,542

Schedule of condensed cash flows


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2018		2017		2016
Cash flows from operating activities:
Net income	$	39,421	$	16,056	$	31,542
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries		(31,997)		1,071		(36,256)
Amortization of restricted stock awards		1,199		836		555
Compensation expense for stock option grants		334		548		492
Change in other assets		3,273		(3,226)		4,237
Change in other liabilities		2,863		1,649		225
Net cash provided by operating activities		15,093		16,934		795
Cash flows from investing activities:
Net cash paid in acquisition		(32,890)		(60,457)		—
Capital injection to subsidiaries		—		(350)		(25,250)
Net cash used in investing activities		(32,890)		(60,807)		(25,250)
Cash flows from financing activities:
Payment made on subordinated debt		—		—		(8,000)
Proceeds from issuance of subordinated debt, net of issuance costs		—		39,354		—
Proceeds from other borrowings, net of issuance costs		—		39,964		—
Payments made on other borrowings		(4,286)		(2,857)		—
Cash dividends paid on preferred stock		(330)		(184)		(9,853)
Cash dividends paid on common stock		(19,977)		(14,008)		—
Proceeds from issuance of common stock in initial public offering, net of issuance costs		—		—		71,475
Proceeds from issuance of common stock under employee benefit plans		2,278		3,225		1,318
Net cash (used in) provided by financing activities		(22,315)		65,494		54,940
Net (decrease) increase in cash		(40,112)		21,621		30,485
Cash:
Beginning of year		60,424		38,803		8,318
End of year	$	20,312	$	60,424	$	38,803

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2018

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED)

Schedule of unaudited quarterly condensed financial information


	2018 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	46,505	$	58,283	$	56,987	$	61,592
Interest expense		8,320		9,997		11,906		13,057
Net interest income		38,185		48,286		45,081		48,535
Provision for loan losses		2,006		1,854		2,103		3,467
Net interest income after provision for loan losses		36,179		46,432		42,978		45,068
Noninterest income		16,502		15,847		18,272		21,170
Noninterest expense		49,499		46,452		50,317		45,375
Income before income taxes		3,182		15,827		10,933		20,863
Income taxes		1,376		3,045		2,436		4,527
Net income		1,806		12,782		8,497		16,336
Preferred stock dividends		36		36		35		34
Net income available to common shareholders	$	1,770	$	12,746	$	8,462	$	16,302
Per common share data:
Basic earnings per common share	$	0.08	$	0.53	$	0.35	$	0.68
Diluted earnings per common share		0.08		0.52		0.35		0.67


	2017 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	31,839	$	34,528	$	43,246	$	43,500
Interest expense		4,378		5,128		6,481		7,464
Net interest income		27,461		29,400		36,765		36,036
Provision for loan losses		1,533		458		1,489		6,076
Net interest income after provision for loan losses		25,928		28,942		35,276		29,960
Noninterest income		16,342		13,619		15,403		13,998
Noninterest expense		30,797		37,645		48,363		36,192
Income before income taxes		11,473		4,916		2,316		7,766
Income taxes		2,983		1,377		280		5,775
Net income	$	8,490	$	3,539	$	2,036	$	1,991
Per common share data:
Basic earnings per common share	$	0.54	$	0.21	$	0.10	$	0.10
Diluted earnings per common share		0.52		0.20		0.10		0.10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 01, 2019 USD ($)
Indemnification Asset Due from FDIC
Liabilities for unfunded commitments	$ 1,200,000	$ 670,000
Impact of Recently Issued Accounting Standards
Effective income tax rate	21.00%	35.00%
Forecast \| ASU 2016-02
Impact of Recently Issued Accounting Standards
Increase in assets and liabilities			$ 12,100,000
Minimum
Lease Financing
Percentage of residual value	3
Goodwill and Intangible Assets
Other intangible assets amortized over a period	1 year
Maximum
Lease Financing
Percentage of residual value	15
Goodwill and Intangible Assets
Other intangible assets amortized over a period	20 years
Premises \| Minimum
Premises and Equipment
Estimated useful lives	10 years
Premises \| Maximum
Premises and Equipment
Estimated useful lives	40 years
Furniture and equipment \| Minimum
Premises and Equipment
Estimated useful lives	3 years
Furniture and equipment \| Maximum
Premises and Equipment
Estimated useful lives	10 years

ACQUISITIONS - Alpine (Details)					3 Months Ended	12 Months Ended
ACQUISITIONS - Alpine (Details)	Jun. 30, 2018 USD ($)	Feb. 28, 2018 USD ($) item shares	Jun. 09, 2017 USD ($) item shares	Jun. 09, 2016	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($) $ / shares
Liabilities assumed:
Goodwill						$ 164,673,000	$ 98,624,000
Alpine Bank
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Number of service banking centers acquired \| item		19
Total consideration		$ 173,200,000
Cash transferred		$ 33,300,000
Shares issued \| shares		4,463,200
Transaction and integration costs		$ 22,400,000
Measurement period adjustment increase in goodwill					$ 629,000
Assets acquired:
Cash and cash equivalents	$ 69,459,000
Investment securities available for sale	293,428,000
Equity securities	8,372,000
Loans	786,186,000
Loans held for sale	3,416,000
Premises and equipment	18,126,000
Other real estate owned	53,000
Nonmarketable equity securities	2,038,000
Accrued interest receivable	4,414,000
Mortgage servicing rights held for sale	3,068,000
Intangible assets	27,400,000
Cash surrender value of life insurance policies	22,578,000
Other assets	4,770,000
Total assets acquired	1,243,308,000
Liabilities assumed:
Deposits	1,111,130,000
FHLB advances and other borrowings	18,127,000
Accrued interest payable	539,000
Deferred tax liabilities, net	1,749,000
Other liabilities	4,500,000
Total liabilities assumed	1,136,045,000
Net assets acquired	107,263,000
Goodwill	65,964,000
Total consideration paid	173,227,000
Business Acquisition, Pro Forma Information
Revenue (1)						264,670,000	280,538,000
Net income						$ 42,261,000	$ 31,188,000
Diluted earnings per common share \| $ / shares						$ 1.73	$ 1.28
Intangible assets:
Total intangible assets	27,400,000
Alpine Bank \| Core deposits
Intangible assets:
Total intangible assets	21,100,000	$ 21,100,000
Estimated useful lives:
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		13 years
Alpine Bank \| Customer relationship
Intangible assets:
Total intangible assets	6,300,000	$ 6,300,000
Estimated useful lives:
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		13 years
Centrue
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Number of service banking centers acquired \| item			20
Total consideration			$ 176,600,000
Cash transferred			61,000,000
Transaction and integration costs			$ 17,900,000			$ 21,500,000
Assets acquired:
Cash and cash equivalents	42,461,000
Investment securities available for sale	149,013,000
Loans	679,582,000
Loans held for sale	531,000
Premises and equipment	17,147,000
Other real estate owned	4,983,000
Nonmarketable equity securities	8,168,000
Accrued interest receivable	2,376,000
Mortgage servicing rights	1,933,000
Intangible assets	11,070,000
Cash surrender value of life insurance policies	36,349,000
Deferred tax assets, net	34,339,000
Other assets	2,256,000
Total assets acquired	990,208,000
Liabilities assumed:
Deposits	739,867,000
Short-term borrowings	14,434,000
FHLB advances and other borrowings	95,332,000
Trust preferred debentures	7,565,000
Accrued interest payable	275,000
Other liabilities	3,600,000
Total liabilities assumed	861,073,000
Net assets acquired	129,135,000
Goodwill	47,444,000
Total consideration paid	176,579,000
Intangible assets:
Total intangible assets	11,070,000
Centrue \| Core deposits
Intangible assets:
Total intangible assets	11,070,000
Estimated useful lives:
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				8 years
Centrue \| Common stock
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Shares issued \| shares			3,219,238
Centrue \| Series G Preferred Stock
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Shares issued \| shares			181
Centrue \| Series H Preferred Stock
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Shares issued \| shares			2,635.5462
Acquired receivables subject to ASC 310-30 \| Alpine Bank
Acquired loan data
Fair value of acquired loans at acquisition date		$ 34,993,000
Gross contractual amounts receivable at acquisition date		50,342,000
Best estimate at acquisition date of contractual cash flows not expected to be collected		9,254,000
Acquired receivables subject to ASC 310-30 \| Centrue
Acquired loan data
Fair value of acquired loans at acquisition date	11,381,000
Gross contractual amounts receivable at acquisition date	20,253,000
Best estimate at acquisition date of contractual cash flows not expected to be collected	7,227,000
Acquired receivables not subject to ASC 310-30 [member] \| Alpine Bank
Acquired loan data
Fair value of acquired loans at acquisition date		751,193,000
Gross contractual amounts receivable at acquisition date		774,836,000
Best estimate at acquisition date of contractual cash flows not expected to be collected		$ 4,244,000
Acquired receivables not subject to ASC 310-30 [member] \| Centrue
Acquired loan data
Fair value of acquired loans at acquisition date	668,201,000
Gross contractual amounts receivable at acquisition date	821,338,000
Best estimate at acquisition date of contractual cash flows not expected to be collected	$ 4,835,000

ACQUISITIONS - CedarPoint (Details) - USD ($) $ in Thousands	Mar. 28, 2017	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition
Goodwill		$ 164,673	$ 98,624
CedarPoint
Business Acquisition
Assets under administration	$ 180,000
Total consideration	3,700
Consideration transferred, value of shares	18
Additional consideration as accrual in other liabilities	345
Goodwill	2,400
CedarPoint \| Customer relationship
Business Acquisition
Intangible assets	$ 2,000
Finite-Lived Intangible Assets, Remaining Amortization Period	12 years
Common stock \| CedarPoint \| Customer relationship
Business Acquisition
Share consideration	102,000

ACQUISITIONS - Sterling (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition
Goodwill	$ 164,673	$ 98,624

CASH AND DUE FROM BANKS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
CASH AND DUE FROM BANKS
Required Cash Reserve	$ 33.6	$ 25.0

INVESTMENT SECURITIES - Classified (Details) - USD ($)	12 Months Ended
INVESTMENT SECURITIES - Classified (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Available for sale securities
Amortized cost	$ 660,359,000	$ 448,124,000
Gross unrealized gains	4,053,000	5,782,000
Gross unrealized losses	6,961,000	3,381,000
Investment securities available for sale	657,451,000	450,525,000
Equity securities	3,334,000
Gross realized gains	542,000	242,000	$ 15,500,000
Held to maturity securities transferred to security at amortized cost		64,500,000
Held-to-maturity securities, transferred to available for sale, at fair value	67,900,000
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax		3,366,000
U.S. Treasury securities
Available for sale securities
Amortized cost	25,018,000	28,005,000
Gross unrealized losses	368,000	287,000
Investment securities available for sale	24,650,000	27,718,000
Government sponsored entity debt securities
Available for sale securities
Amortized cost	76,554,000	25,445,000
Gross unrealized gains	17,000	41,000
Gross unrealized losses	887,000	275,000
Investment securities available for sale	75,684,000	25,211,000
Agency mortgage-backed securities
Available for sale securities
Amortized cost	329,690,000	233,606,000
Gross unrealized gains	371,000	882,000
Gross unrealized losses	3,756,000	2,101,000
Investment securities available for sale	326,305,000	232,387,000
State and municipal securities
Available for sale securities
Amortized cost	156,795,000	99,449,000
Gross unrealized gains	3,282,000	3,632,000
Gross unrealized losses	815,000	514,000
Investment securities available for sale	159,262,000	102,567,000
Corporate Securities
Available for sale securities
Amortized cost	72,302,000	58,904,000
Gross unrealized gains	383,000	1,087,000
Gross unrealized losses	1,135,000	179,000
Investment securities available for sale	71,550,000	59,812,000
Equity Security
Available for sale securities
Amortized cost		2,715,000
Gross unrealized gains		140,000
Gross unrealized losses		25,000
Investment securities available for sale	$ 3,334,000	$ 2,830,000

INVESTMENT SECURITIES - Continuous unrealized loss position (Details)	12 Months Ended
	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($) item
Securities available for sale:
Less than 12 Months, Fair value	$ 244,251,000	$ 205,976,000
Less than 12 Months, Unrealized loss	1,445,000	2,467,000
12 Months or more, Fair value	205,649,000	36,842,000
12 Months or more, Unrealized loss	5,516,000	914,000
Total, Fair value	449,900,000	242,818,000
Total, Unrealized loss	$ 6,961,000	$ 3,381,000
Unrealized loss
Debt Securities Available For Sale Unrealized Loss Position Number Of Positions \| item	291	173
Aggregate depreciation	1.52%	1.37%
Other than temporary impairment:
Other than temporary impairment, recognized as losses	$ 0	$ 0
U.S. Treasury securities
Securities available for sale:
Less than 12 Months, Fair value	5,012,000	19,758,000
Less than 12 Months, Unrealized loss	1,000	251,000
12 Months or more, Fair value	19,638,000	7,960,000
12 Months or more, Unrealized loss	367,000	36,000
Total, Fair value	24,650,000	27,718,000
Total, Unrealized loss	368,000	287,000
Government sponsored entity debt securities
Securities available for sale:
Less than 12 Months, Fair value	51,717,000	24,168,000
Less than 12 Months, Unrealized loss	195,000	275,000
12 Months or more, Fair value	23,223,000
12 Months or more, Unrealized loss	692,000
Total, Fair value	74,940,000	24,168,000
Total, Unrealized loss	887,000	275,000
Agency mortgage-backed securities
Securities available for sale:
Less than 12 Months, Fair value	139,115,000	124,192,000
Less than 12 Months, Unrealized loss	528,000	1,500,000
12 Months or more, Fair value	126,561,000	19,530,000
12 Months or more, Unrealized loss	3,228,000	601,000
Total, Fair value	265,676,000	143,722,000
Total, Unrealized loss	3,756,000	2,101,000
State and municipal securities
Securities available for sale:
Less than 12 Months, Fair value	15,791,000	29,338,000
Less than 12 Months, Unrealized loss	146,000	331,000
12 Months or more, Fair value	27,692,000	5,889,000
12 Months or more, Unrealized loss	669,000	183,000
Total, Fair value	43,483,000	35,227,000
Total, Unrealized loss	815,000	514,000
Corporate Securities
Securities available for sale:
Less than 12 Months, Fair value	32,616,000	5,917,000
Less than 12 Months, Unrealized loss	575,000	85,000
12 Months or more, Fair value	8,535,000	3,463,000
12 Months or more, Unrealized loss	560,000	94,000
Total, Fair value	41,151,000	9,380,000
Total, Unrealized loss	$ 1,135,000	179,000
Equity Security
Securities available for sale:
Less than 12 Months, Fair value		2,603,000
Less than 12 Months, Unrealized loss		25,000
Total, Fair value		2,603,000
Total, Unrealized loss		$ 25,000
Non-agency mortgage-backed securities
Other than temporary impairment:
Number of other than temporary impairment securities \| item			3
Other than temporary impairment, recognized as losses			$ 824,000

INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($)		12 Months Ended
	Oct. 04, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amortized cost of available-for-sale securities, by contractual maturity
Within one year		$ 39,092,000
After one year through five years		122,564,000
After five years through ten years		138,494,000
After ten years		30,519,000
Total, single maturity date		660,359,000
Fair Value of available-for-sale securities, by contractual maturity
Within one year		39,087,000
After one year through five years		122,554,000
After five years through ten years		138,937,000
After ten years		30,568,000
Total, single maturity date		657,451,000
Proceeds from Sale of Available-for-sale Securities
Proceed from sale of investments		20,178,000	$ 22,595,000	$ 115,999,000
Gross realized gains/losses
Gross realized gains		542,000	242,000	15,500,000
Investment securities available for sale		657,451,000	450,525,000
Gross realized losses		25,000	$ 20,000	$ 837,000
Equity securities		3,334,000
Sales of equity securities		(7,733,000)
Equity securities, realized losses		53,000
Equity securities, realized gains		0
Non interest income
Gross realized gains/losses
Equity securities, unrealized losses		10,000
Unrealized losses recognized		10,000
Covered non-agency mortgage-backed securities
Gross realized gains/losses
Gross realized gains	$ 14,300,000
Investment securities available for sale	$ 72,100,000
Mortgage-backed securities
Amortized cost of available-for-sale securities, by contractual maturity
Total, single maturity date		329,690,000
Fair Value of available-for-sale securities, by contractual maturity
Total, single maturity date		$ 326,305,000

LOANS - Summary of loans (Details) - USD ($) $ in Thousands	12 Months Ended
LOANS - Summary of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Summary of loans
Loans	$ 4,137,551	$ 3,226,678
Loans, additional information
Net deferred loan fees	11,600	10,100
Unearned discounts	29,200	20,700
Loans held for sale	30,401	50,089
Proceeds from sales of loans held for sale	590,282	815,471	$ 1,184,739
Directors, executive officers, principal shareholders and affiliates
Loans to certain directors, executive officers, principal shareholders and their affiliates:
Loans outstanding to related parties	26,500	22,400
New loans to related parties and other additions	11,100	4,000
Repayments from related parties and other reductions	6,900	8,100
Commercial real estate
Summary of loans
Loans	2,682,268	2,196,528
Commercial real estate \| Commercial
Summary of loans
Loans	810,884	555,930
Commercial real estate \| Commercial real estate
Summary of loans
Loans	1,639,155	1,440,011
Commercial real estate \| Construction and land development
Summary of loans
Loans	232,229	200,587
Other loan portfolio \| Residential real estate
Summary of loans
Loans	578,048	453,552
Other loan portfolio \| Consumer
Summary of loans
Loans	613,184	371,455
Other loan portfolio \| Lease financing
Summary of loans
Loans	264,051	205,143
Commercial and Residential Loan
Loans, additional information
Loans held for sale	30,400	50,100
Proceeds from sales of loans held for sale	590,300	815,500,000
Non-PCI loans
Summary of loans
Loans	4,094,576	3,204,217
Non-PCI loans \| Commercial real estate
Summary of loans
Loans	2,649,828	2,180,186
Non-PCI loans \| Commercial real estate \| Commercial
Summary of loans
Loans	806,027	553,257
Non-PCI loans \| Commercial real estate \| Commercial real estate
Summary of loans
Loans	1,619,903	1,427,076
Non-PCI loans \| Commercial real estate \| Construction and land development
Summary of loans
Loans	223,898	199,853
Non-PCI loans \| Other loan portfolio
Summary of loans
Loans	1,444,748	1,024,031
Non-PCI loans \| Other loan portfolio \| Residential real estate
Summary of loans
Loans	569,289	447,602
Non-PCI loans \| Other loan portfolio \| Consumer
Summary of loans
Loans	611,408	371,286
Non-PCI loans \| Other loan portfolio \| Lease financing
Summary of loans
Loans	264,051	205,143
PCI loans
Summary of loans
Loans	42,975	22,461
Customer outstanding balances	56,900	32,800
PCI loans \| Commercial real estate
Summary of loans
Loans	32,440	16,342
PCI loans \| Commercial real estate \| Commercial
Summary of loans
Loans	4,857	2,673
PCI loans \| Commercial real estate \| Commercial real estate
Summary of loans
Loans	19,252	12,935
PCI loans \| Commercial real estate \| Construction and land development
Summary of loans
Loans	8,331	734
PCI loans \| Other loan portfolio \| Residential real estate
Summary of loans
Loans	8,759	5,950
PCI loans \| Other loan portfolio \| Consumer
Summary of loans
Loans	$ 1,776	$ 169

LOANS - Impaired Loans (Details) - USD ($)	12 Months Ended
LOANS - Impaired Loans (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0	$ 0
Additional interest income that would have been recorded had they been current	1,800,000	860,000	718,000
Recognized interest income on loans modified under troubled debt restructurings	97,000	85,000	$ 339,000
PCI loans
Summary of impaired loans
Total impaired loans	43,000,000	22,500,000
Non-PCI loans \| Impaired
Summary of impaired loans
Accruing loans contractually past due 90 days or more as to interest or principal payments	1,061,000	2,642,000
Total impaired loans	42,899,000	26,760,000
Commercial real estate \| Commercial \| Non-PCI loans \| Impaired
Summary of impaired loans
Accruing loans contractually past due 90 days or more as to interest or principal payments	4,000	2,538,000
Total impaired loans	8,928,000	4,103,000
Commercial real estate \| Commercial real estate \| Non-PCI loans \| Impaired
Summary of impaired loans
Accruing loans contractually past due 90 days or more as to interest or principal payments	149,000
Total impaired loans	23,868,000	13,997,000
Commercial real estate \| Construction and land development \| Non-PCI loans \| Impaired
Summary of impaired loans
Accruing loans contractually past due 90 days or more as to interest or principal payments	85,000
Total impaired loans	1,307,000	843,000
Other loan portfolio \| Residential real estate \| Non-PCI loans \| Impaired
Summary of impaired loans
Accruing loans contractually past due 90 days or more as to interest or principal payments	566,000	51,000
Total impaired loans	7,270,000	6,184,000
Other loan portfolio \| Consumer \| Non-PCI loans \| Impaired
Summary of impaired loans
Accruing loans contractually past due 90 days or more as to interest or principal payments	51,000	53,000
Total impaired loans	569,000	287,000
Other loan portfolio \| Lease financing \| Non-PCI loans \| Impaired
Summary of impaired loans
Accruing loans contractually past due 90 days or more as to interest or principal payments	206,000
Total impaired loans	$ 957,000	$ 1,346,000

LOANS - Impaired Loans Individually Evaluated (excluding PCI loans) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Impaired loans (excluding PCI loans) by portfolio
Difference between the recorded investment and unpaid principal balance	$ 11,400	$ 12,800
Impaired \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	20,861	10,995
With a valuation allowance, Unpaid Principal Balance	27,989	12,955
With a valuation allowance, Average Annual Recorded Investment	21,597	13,677	$ 11,774
With a related valuation allowance, Interest Income Recognized while on Impaired Status	119	127	358
With no related valuation allowance, Recorded Investment	22,038	15,765
With no related valuation allowance, Unpaid Principal Balance	26,301	26,604
With no related valuation allowance, Average Annual Recorded Investment	22,272	22,356	23,656
With no related valuation allowance, Interest Income Recognized while on Impaired Status	44	3	20
Total impaired loans	42,899	26,760
Total, Unpaid Principal Balance	54,290	39,559
Total, Related Valuation Allowance	5,985	1,805
Total, Average Annual Recorded Investment	43,869	36,033	35,430
Total, Interest Income Recognized While on Impaired Status	163	130	378
Commercial \| Impaired \| Commercial real estate \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	7,945	3,237
With a valuation allowance, Unpaid Principal Balance	8,102	3,297
With a valuation allowance, Average Annual Recorded Investment	8,359	2,969	3,974
With a related valuation allowance, Interest Income Recognized while on Impaired Status	30	15	15
With no related valuation allowance, Recorded Investment	983	866
With no related valuation allowance, Unpaid Principal Balance	4,392	5,782
With no related valuation allowance, Average Annual Recorded Investment	1,233	2,369	5,604
With no related valuation allowance, Interest Income Recognized while on Impaired Status			1
Total impaired loans	8,928	4,103
Total, Unpaid Principal Balance	12,494	9,079
Total, Related Valuation Allowance	4,448	526
Total, Average Annual Recorded Investment	9,592	5,338	9,578
Total, Interest Income Recognized While on Impaired Status	30	15	16
Commercial real estate \| Impaired \| Commercial real estate \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	7,496	2,297
With a valuation allowance, Unpaid Principal Balance	13,844	3,508
With a valuation allowance, Average Annual Recorded Investment	8,082	5,408	2,379
With a related valuation allowance, Interest Income Recognized while on Impaired Status	45	70	306
With no related valuation allowance, Recorded Investment	16,372	11,700
With no related valuation allowance, Unpaid Principal Balance	16,921	17,359
With no related valuation allowance, Average Annual Recorded Investment	16,253	16,822	16,847
With no related valuation allowance, Interest Income Recognized while on Impaired Status	22		17
Total impaired loans	23,868	13,997
Total, Unpaid Principal Balance	30,765	20,867
Total, Related Valuation Allowance	523	329
Total, Average Annual Recorded Investment	24,335	22,230	19,226
Total, Interest Income Recognized While on Impaired Status	67	70	323
Construction and land development \| Impaired \| Commercial real estate \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	171	103
With a valuation allowance, Unpaid Principal Balance	171	102
With a valuation allowance, Average Annual Recorded Investment	175	83	87
With a related valuation allowance, Interest Income Recognized while on Impaired Status	3	4	7
With no related valuation allowance, Recorded Investment	1,136	740
With no related valuation allowance, Unpaid Principal Balance	1,136	780
With no related valuation allowance, Average Annual Recorded Investment	1,152	815
Total impaired loans	1,307	843
Total, Unpaid Principal Balance	1,307	882
Total, Related Valuation Allowance	54	10
Total, Average Annual Recorded Investment	1,327	898	87
Total, Interest Income Recognized While on Impaired Status	3	4	7
Residential real estate \| Impaired \| Other loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	4,055	4,028
With a valuation allowance, Unpaid Principal Balance	4,662	4,705
With a valuation allowance, Average Annual Recorded Investment	3,855	3,854	3,782
With a related valuation allowance, Interest Income Recognized while on Impaired Status	41	38	30
With no related valuation allowance, Recorded Investment	3,215	2,156
With no related valuation allowance, Unpaid Principal Balance	3,516	2,380
With no related valuation allowance, Average Annual Recorded Investment	3,348	2,055	1,179
With no related valuation allowance, Interest Income Recognized while on Impaired Status	22	3	2
Total impaired loans	7,270	6,184
Total, Unpaid Principal Balance	8,178	7,085
Total, Related Valuation Allowance	554	566
Total, Average Annual Recorded Investment	7,203	5,909	4,961
Total, Interest Income Recognized While on Impaired Status	63	41	32
Consumer \| Impaired \| Other loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	428	266
With a valuation allowance, Unpaid Principal Balance	444	279
With a valuation allowance, Average Annual Recorded Investment	360	299	221
With no related valuation allowance, Recorded Investment	141	21
With no related valuation allowance, Unpaid Principal Balance	145	21
With no related valuation allowance, Average Annual Recorded Investment	95	13	26
Total impaired loans	569	287
Total, Unpaid Principal Balance	589	300
Total, Related Valuation Allowance	45	29
Total, Average Annual Recorded Investment	455	312	247
Lease financing \| Impaired \| Other loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	766	1,064
With a valuation allowance, Unpaid Principal Balance	766	1,064
With a valuation allowance, Average Annual Recorded Investment	766	1,064	1,331
With no related valuation allowance, Recorded Investment	191	282
With no related valuation allowance, Unpaid Principal Balance	191	282
With no related valuation allowance, Average Annual Recorded Investment	191	282
Total impaired loans	957	1,346
Total, Unpaid Principal Balance	957	1,346
Total, Related Valuation Allowance	361	345
Total, Average Annual Recorded Investment	$ 957	$ 1,346	$ 1,331

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	$ 4,137,551	$ 3,226,678
Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	38,187	21,317
Total Past Due	64,461	39,364
Current	4,030,115	3,164,853
Loans and Leases Receivable, Gross, Total	4,094,576	3,204,217
Non-PCI loans \| Impaired
Aging Status of recorded investment
Nonaccrual Loans	38,187	21,317
Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	17,494	12,464
Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	7,719	2,941
Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	1,061	2,642
Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,682,268	2,196,528
Commercial real estate \| Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,649,828	2,180,186
Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,444,748	1,024,031
Other loan portfolio \| Non-PCI loans \| Impaired
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	8,796	7,817
Commercial \| Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	810,884	555,930
Commercial \| Commercial real estate \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	8,489	1,266
Total Past Due	15,087	7,263
Current	790,940	545,994
Loans and Leases Receivable, Gross, Total	806,027	553,257
Commercial \| Commercial real estate \| Non-PCI loans \| Impaired
Aging Status of recorded investment
Nonaccrual Loans	8,489	1,266
Commercial \| Commercial real estate \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	4,013	3,282
Commercial \| Commercial real estate \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	2,581	177
Commercial \| Commercial real estate \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	4	2,538
Commercial real estate \| Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,639,155	1,440,011
Commercial real estate \| Commercial real estate \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	21,494	12,482
Total Past Due	24,255	16,228
Current	1,595,648	1,410,848
Loans and Leases Receivable, Gross, Total	1,619,903	1,427,076
Commercial real estate \| Commercial real estate \| Non-PCI loans \| Impaired
Aging Status of recorded investment
Nonaccrual Loans	21,494	12,482
Commercial real estate \| Commercial real estate \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,667	3,116
Commercial real estate \| Commercial real estate \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	945	630
Commercial real estate \| Commercial real estate \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	149
Construction and land development \| Commercial real estate
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	232,229	200,587
Construction and land development \| Commercial real estate \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	1,171	785
Total Past Due	2,245	2,738
Current	221,653	197,115
Loans and Leases Receivable, Gross, Total	223,898	199,853
Construction and land development \| Commercial real estate \| Non-PCI loans \| Impaired
Aging Status of recorded investment
Nonaccrual Loans	1,171	785
Construction and land development \| Commercial real estate \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	989	1,953
Construction and land development \| Commercial real estate \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	85
Residential real estate \| Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	578,048	453,552
Residential real estate \| Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	5,894	5,204
Total Past Due	8,480	6,784
Current	560,809	440,818
Loans and Leases Receivable, Gross, Total	569,289	447,602
Residential real estate \| Other loan portfolio \| Non-PCI loans \| Impaired
Aging Status of recorded investment
Nonaccrual Loans	5,894	5,204
Loans and Leases Receivable, Gross, Total	7,270	6,184
Residential real estate \| Other loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	1,292	897
Residential real estate \| Other loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	728	632
Residential real estate \| Other loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	566	51
Consumer \| Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	613,184	371,455
Consumer \| Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	388	234
Total Past Due	8,183	4,613
Current	603,225	366,673
Loans and Leases Receivable, Gross, Total	611,408	371,286
Consumer \| Other loan portfolio \| Non-PCI loans \| Impaired
Aging Status of recorded investment
Nonaccrual Loans	388	234
Loans and Leases Receivable, Gross, Total	569	287
Consumer \| Other loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	5,211	2,824
Consumer \| Other loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	2,533	1,502
Consumer \| Other loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	51	53
Lease financing \| Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	264,051	205,143
Lease financing \| Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	751	1,346
Total Past Due	6,211	1,738
Current	257,840	203,405
Loans and Leases Receivable, Gross, Total	264,051	205,143
Lease financing \| Other loan portfolio \| Non-PCI loans \| Impaired
Aging Status of recorded investment
Nonaccrual Loans	751	1,346
Loans and Leases Receivable, Gross, Total	957	1,346
Lease financing \| Other loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	4,322	$ 392
Lease financing \| Other loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	932
Lease financing \| Other loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	$ 206

LOANS - TDRs by portfolio (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 557,000	$ 240,000
Unfunded commitments	0	0
Minimum \| Performing
Troubled debt restructuring
TDRs, individually evaluated for impairment, threshold	50,000
Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	3,651,000	2,801,000
TDR's Nonaccrual	10,362,000	10,197,000
Total	14,013,000	12,998,000
Non-PCI loans \| Impaired
TDRs by loan portfolio (excluding PCI loans):
Total	3,651,000	2,801,000
Commercial \| Commercial real estate \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	435,000	299,000
TDR's Nonaccrual	406,000
Total	841,000	299,000
Commercial \| Commercial real estate \| Non-PCI loans \| Impaired
TDRs by loan portfolio (excluding PCI loans):
Total	435,000	299,000
Commercial real estate \| Commercial real estate \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,225,000	1,515,000
TDR's Nonaccrual	9,103,000	9,915,000
Total	11,328,000	11,430,000
Commercial real estate \| Commercial real estate \| Non-PCI loans \| Impaired
TDRs by loan portfolio (excluding PCI loans):
Total	2,225,000	1,515,000
Construction and land development \| Commercial real estate \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	51,000	58,000
Total	51,000	58,000
Construction and land development \| Commercial real estate \| Non-PCI loans \| Impaired
TDRs by loan portfolio (excluding PCI loans):
Total	51,000	58,000
Residential real estate \| Other loan portfolio \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	810,000	929,000
TDR's Nonaccrual	853,000	282,000
Total	1,663,000	1,211,000
Residential real estate \| Other loan portfolio \| Non-PCI loans \| Impaired
TDRs by loan portfolio (excluding PCI loans):
Total	810,000	$ 929,000
Consumer \| Other loan portfolio \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	130,000
Total	130,000
Consumer \| Other loan portfolio \| Non-PCI loans \| Impaired
TDRs by loan portfolio (excluding PCI loans):
Total	$ 130,000

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) loan	Dec. 31, 2017 USD ($) loan	Dec. 31, 2016 USD ($) loan
Troubled debt restructurings:
Number of loans \| loan	36	6	8
Pre-modification outstanding balance	$ 2,832	$ 1,213	$ 11,098
Post-modification outstanding balance	$ 2,799	$ 1,130	$ 10,992
Troubled debt restructurings that subsequently defaulted
Number of loans \| loan			1
Recorded balance			$ 28
Commercial \| Commercial real estate
Troubled debt restructurings:
Number of loans \| loan	2	1	3
Pre-modification outstanding balance	$ 423	$ 362	$ 685
Post-modification outstanding balance	$ 408	$ 299	$ 647
Commercial real estate \| Commercial real estate
Troubled debt restructurings:
Number of loans \| loan	2	1	2
Pre-modification outstanding balance	$ 1,571	$ 323	$ 10,207
Post-modification outstanding balance	$ 1,565	$ 323	$ 10,139
Troubled debt restructurings that subsequently defaulted
Number of loans \| loan			1
Recorded balance			$ 28
Residential real estate \| Other loan portfolio
Troubled debt restructurings:
Number of loans \| loan	7	4	3
Pre-modification outstanding balance	$ 708	$ 528	$ 206
Post-modification outstanding balance	$ 696	$ 508	$ 206
Consumer \| Other loan portfolio
Troubled debt restructurings:
Number of loans \| loan	25
Pre-modification outstanding balance	$ 130
Post-modification outstanding balance	$ 130

LOANS - PCI Loans - Changes in the accretable yield for PCI loans (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Summary of loans
Accretion recorded as loan interest income	$ 45,068	$ 42,978	$ 46,432	$ 36,179	$ 29,960	$ 35,276	$ 28,942	$ 25,928	$ 170,657	$ 120,106	$ 99,663
PCI loans
Changes in the accretable yield for PCI loans
Balance, beginning of period				$ 5,732				$ 9,035	5,732	9,035	10,526
Accretion									(6,092)	(5,546)	(8,579)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)									2,682	120	915
Reclassification from (to) non-accretable									3,823	194	6,173
Balance, end of period	$ 12,240				$ 5,732				12,240	5,732	$ 9,035
Alpine Bank \| PCI loans
Changes in the accretable yield for PCI loans
New loans purchased									$ 6,095
Centrue \| PCI loans
Changes in the accretable yield for PCI loans
New loans purchased										$ 1,929

LOANS - Allowance for loan losses (Details) - USD ($)	3 Months Ended								12 Months Ended
LOANS - Allowance for loan losses (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in allowance for loan losses :
Beginning balance				$ 16,431,000				$ 14,862,000	$ 16,431,000	$ 14,862,000	$ 15,988,000
Provision for loan losses	$ 3,467,000	$ 2,103,000	$ 1,854,000	2,006,000	$ 6,076,000	$ 1,489,000	$ 458,000	1,533,000	9,430,000	9,556,000	5,591,000
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs									(6,989,000)	(9,822,000)	(7,736,000)
Loan recoveries									2,031,000	1,835,000	1,019,000
Net loan (charge-offs) recoveries									(4,958,000)	(7,987,000)	(6,717,000)
Ending balance	20,903,000				16,431,000				20,903,000	16,431,000	14,862,000
Non-PCI loans
Changes in allowance for loan losses :
Beginning balance				14,902,000				13,744,000	14,902,000	13,744,000	14,093,000
Provision for loan losses									9,246,000	9,295,000	6,425,000
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs									(6,844,000)	(9,822,000)	(7,668,000)
Loan recoveries									2,031,000	1,685,000	894,000
Net loan (charge-offs) recoveries									(4,813,000)	(8,137,000)	(6,774,000)
Ending balance	19,335,000				14,902,000				19,335,000	14,902,000	13,744,000
Non-PCI loans \| Nonperforming, one borrower
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs									(4,600,000)	1,400,000
Non-PCI loans \| Nonperforming, single credit relationship borrower
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs									(1,200,000)	530,000
Non-PCI loans \| Nonperforming, group of nonperforming loans
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs										(1,600,000)
PCI loans
Changes in allowance for loan losses :
Beginning balance				$ 1,529,000				$ 1,118,000	1,529,000	1,118,000	1,895,000
Provision for loan losses									184,000	261,000	(834,000)
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs									(145,000)		(68,000)
Loan recoveries										150,000	125,000
Net loan (charge-offs) recoveries									(145,000)	150,000	57,000
Ending balance	$ 1,568,000				$ 1,529,000				$ 1,568,000	$ 1,529,000	$ 1,118,000

LOANS - Allowance for loan losses by loan portfolio and recorded investment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Changes in allowance for loan losses :
Beginning balance				$ 16,431				$ 14,862	$ 16,431	$ 14,862	$ 15,988
Provision for loan losses	$ 3,467	$ 2,103	$ 1,854	2,006	$ 6,076	$ 1,489	$ 458	1,533	9,430	9,556	5,591
Charge-offs									(6,989)	(9,822)	(7,736)
Recoveries									2,031	1,835	1,019
Ending balance	20,903				16,431				20,903	16,431	14,862
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment												$ 5,492	$ 1,070
Loans collectively evaluated for impairment												493	735
Non-impaired loans collectively evaluated for impairment												13,350	13,097
Loans acquired with deteriorated credit quality												1,568	1,529
Total	20,903			16,431	16,431			14,862	16,431	14,862	15,988	20,903	16,431
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment												37,802	19,908
Impaired loans collectively evaluated for impairment												5,097	6,852
Non-impaired loans collectively evaluated for impairment												4,051,677	3,177,457
Loans acquired with deteriorated credit quality												42,975	22,461
Loans and Leases Receivable, Gross, Total												4,137,551	3,226,678
PCI loans
Changes in allowance for loan losses :
Beginning balance				1,529				1,118	1,529	1,118	1,895
Provision for loan losses									184	261	(834)
Charge-offs									(145)		(68)
Recoveries										150	125
Ending balance	1,568				1,529				1,568	1,529	1,118
Allowance for loan losses balance at December 31, 2014 attributable to:
Total	1,568			1,529	1,529			1,118	1,529	1,118	1,895	1,568	1,529
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												42,975	22,461
Commercial real estate
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												2,682,268	2,196,528
Commercial real estate \| PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												32,440	16,342
Commercial \| Commercial real estate
Changes in allowance for loan losses :
Beginning balance				5,256				5,920	5,256	5,920
Provision for loan losses									4,941	(118)
Charge-offs									(1,236)	(737)
Recoveries									563	191
Ending balance	9,524				5,256				9,524	5,256	5,920
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment												4,405	221
Loans collectively evaluated for impairment												43	305
Non-impaired loans collectively evaluated for impairment												4,971	4,230
Loans acquired with deteriorated credit quality												105	500
Total	9,524			5,256	5,256			5,920	5,256	5,920	5,920	9,524	5,256
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment												8,520	1,285
Impaired loans collectively evaluated for impairment												408	2,818
Non-impaired loans collectively evaluated for impairment												797,099	549,154
Loans acquired with deteriorated credit quality												4,857	2,673
Loans and Leases Receivable, Gross, Total												810,884	555,930
Commercial \| Commercial real estate \| PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												4,857	2,673
Commercial real estate \| Commercial real estate
Changes in allowance for loan losses :
Beginning balance				5,044				3,225	5,044	3,225
Provision for loan losses									(207)	7,879
Charge-offs									(492)	(6,552)
Recoveries									378	492
Ending balance	4,723				5,044				4,723	5,044	3,225
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment												476	281
Loans collectively evaluated for impairment												47	48
Non-impaired loans collectively evaluated for impairment												3,356	4,379
Loans acquired with deteriorated credit quality												844	336
Total	4,723			5,044	5,044			3,225	5,044	3,225	3,225	4,723	5,044
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment												23,431	13,554
Impaired loans collectively evaluated for impairment												437	443
Non-impaired loans collectively evaluated for impairment												1,596,035	1,413,079
Loans acquired with deteriorated credit quality												19,252	12,935
Loans and Leases Receivable, Gross, Total												1,639,155	1,440,011
Commercial real estate \| Commercial real estate \| PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												19,252	12,935
Construction and land development \| Commercial real estate
Changes in allowance for loan losses :
Beginning balance				518				345	518	345
Provision for loan losses									(227)	110
Recoveries									81	63
Ending balance	372				518				372	518	345
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment												48	5
Loans collectively evaluated for impairment												6	5
Non-impaired loans collectively evaluated for impairment												318	504
Loans acquired with deteriorated credit quality													4
Total	372			518	518			345	518	345	345	372	518
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment												1,249	797
Impaired loans collectively evaluated for impairment												58	46
Non-impaired loans collectively evaluated for impairment												222,591	199,010
Loans acquired with deteriorated credit quality												8,331	734
Loans and Leases Receivable, Gross, Total												232,229	200,587
Construction and land development \| Commercial real estate \| PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												8,331	734
Residential real estate \| Other loan portfolio
Changes in allowance for loan losses :
Beginning balance				2,750				2,929	2,750	2,929
Provision for loan losses									(517)	1
Charge-offs									(361)	(698)
Recoveries									169	518
Ending balance	2,041				2,750				2,041	2,750	2,929
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment												233	302
Loans collectively evaluated for impairment												321	264
Non-impaired loans collectively evaluated for impairment												1,051	1,644
Loans acquired with deteriorated credit quality												436	540
Total	2,041			2,750	2,750			2,929	2,750	2,929	2,929	2,041	2,750
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment												3,929	3,700
Impaired loans collectively evaluated for impairment												3,341	2,484
Non-impaired loans collectively evaluated for impairment												562,019	441,418
Loans acquired with deteriorated credit quality												8,759	5,950
Loans and Leases Receivable, Gross, Total												578,048	453,552
Residential real estate \| Other loan portfolio \| PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												8,759	5,950
Consumer \| Other loan portfolio
Changes in allowance for loan losses :
Beginning balance				1,344				930	1,344	930
Provision for loan losses									2,156	954
Charge-offs									(1,876)	(794)
Recoveries									530	254
Ending balance	2,154				1,344				2,154	1,344	930
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans collectively evaluated for impairment												45	29
Non-impaired loans collectively evaluated for impairment												1,926	1,166
Loans acquired with deteriorated credit quality												183	149
Total	2,154			1,344	1,344			930	1,344	930	930	2,154	1,344
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment												5	4
Impaired loans collectively evaluated for impairment												564	283
Non-impaired loans collectively evaluated for impairment												610,839	370,999
Loans acquired with deteriorated credit quality												1,776	169
Loans and Leases Receivable, Gross, Total												613,184	371,455
Consumer \| Other loan portfolio \| PCI loans
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total												1,776	169
Lease financing \| Other loan portfolio
Changes in allowance for loan losses :
Beginning balance				1,519				1,513	1,519	1,513
Provision for loan losses									3,284	730
Charge-offs									(3,024)	(1,041)
Recoveries									310	317
Ending balance	2,089				1,519				2,089	1,519	1,513
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment												330	261
Loans collectively evaluated for impairment												31	84
Non-impaired loans collectively evaluated for impairment												1,728	1,174
Total	$ 2,089			$ 1,519	$ 1,519			$ 1,513	$ 1,519	$ 1,513	$ 1,513	2,089	1,519
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment												668	568
Impaired loans collectively evaluated for impairment												289	778
Non-impaired loans collectively evaluated for impairment												263,094	203,797
Loans and Leases Receivable, Gross, Total												$ 264,051	$ 205,143

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 126,230	$ 105,789
Accumulated depreciation	(31,390)	(29,627)
Premises and equipment, net	94,840	76,162
Depreciation	6,166	5,014	$ 5,080
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	20,231	16,109
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	76,141	63,837
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 29,858	$ 25,843

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Commercial FHA Mortgage Loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	$ 3,980.0	$ 3,980.0
Residential mortgage loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	$ 897.6	$ 1,990.0

MORTGAGE SERVICING RIGHTS - Changes in MSR (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 02, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Mortgage servicing rights:
Balance, beginning of period		$ 55,714	$ 52,006	$ 47,589
Balance, end of period		56,252	55,714	52,006
Valuation allowances:
Balance, beginning of period		3,254	1,712
Impairment		931	1,542	1,920
Reductions		(1,380)		(208)
Balance, end of period		2,805	3,254	1,712
Mortgage servicing rights, net		53,447	52,460	50,294
Fair Value		53,447	52,460	50,294	$ 47,589
Loss on mortgage servicing rights held for sale		(458)	(4,059)
Mortgage servicing rights held for sale		3,545	10,176
Commercial FHA Mortgage Loans
Mortgage servicing rights:
Originated servicing		3,174	6,287	6,805
Amortization		(2,636)	(2,579)	$ (2,388)
Residential mortgage loans
Valuation allowances:
Loss on mortgage servicing rights held for sale			$ 4,100
Sale of mortgage servicing rights held for sale	$ 10,200
Mortgage servicing rights held for sale		$ 3,500

MORTGAGE SERVICING RIGHTS - Summary of key assumptions (Details) - Commercial FHA Mortgage Loans - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Assumptions Used to Estimate Fair Value
Servicing Fee	0.13%	0.12%
Interest Rate	3.67%	3.67%
Remaining Years to Maturity	30 years 1 month 6 days	30 years 3 months 18 days
Prepayment Rate	8.24%	8.27%
Servicing Cost	$ 1,000.00	$ 1,000.00
Maximum
Assumptions Used to Estimate Fair Value
Discount Rate	14.00%	14.00%
Minimum
Assumptions Used to Estimate Fair Value
Discount Rate	10.00%	10.00%

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill		$ 164,673		$ 98,624
Goodwill, Impairment Loss	$ 0
Alpine Bank
Goodwill [Line Items]
Goodwill			$ 65,964
Centrue
Goodwill [Line Items]
Goodwill			$ 47,444
Banking
Goodwill [Line Items]
Goodwill		149,035		82,986
Commercial FHA origination and servicing
Goodwill [Line Items]
Goodwill		10,892		10,892
Wealth management
Goodwill [Line Items]
Goodwill		$ 4,746		$ 4,746

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands			12 Months Ended
	Jun. 30, 2018	Feb. 28, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finite-lived intangible assets
Gross Carrying Amount			$ 66,483	$ 39,083
Accumulated Amortization			(29,107)	(22,151)
Total			37,376	16,932
Amortization of intangible assets			6,956	3,325	$ 2,147
Estimated amortization expense of intangible assets
2019			6,716
2020			5,792
2021			5,032
2022			4,326
2023			3,620
Thereafter			11,890
Core deposits
Finite-lived intangible assets
Gross Carrying Amount			52,712	31,612
Accumulated Amortization			(24,803)	(18,943)
Total			27,909	12,669
Customer relationship
Finite-lived intangible assets
Gross Carrying Amount			13,771	7,471
Accumulated Amortization			(4,304)	(3,208)
Total			$ 9,467	$ 4,263
Alpine Bank
Finite-lived intangible assets
Total intangible assets	$ 27,400
Alpine Bank \| Core deposits
Finite-lived intangible assets
Total intangible assets	21,100	$ 21,100
Alpine Bank \| Customer relationship
Finite-lived intangible assets
Total intangible assets	$ 6,300	$ 6,300
Amortization period		13 years

DERIVATIVE INSTRUMENTS (Details) - USD ($)	12 Months Ended
DERIVATIVE INSTRUMENTS (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	$ 541,581,000	$ 717,976,000
Fair value of asset derivatives	4,492,000	6,362,000
Net (losses) gains recognized on derivative instruments	2,000,000	16,000	$ 351,000
Notional amount of interest rate swaps		10,000,000
Interest rate lock commitments
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	264,710,000	345,152,000
Fair value of asset derivatives	4,492,000	6,331,000
Forward commitments to sell mortgage-backed securities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	276,871,000	372,824,000
Notional amount, liability derivatives	54,000
Fair value of asset derivatives		$ 31,000
Interest rate swap contracts
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount of interest rate swaps	9,500,000
Interest rate swap contracts \| Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value of asset derivatives	$ 145,000

DERIVATIVE INSTRUMENTS - Interest Rate Swap Agreements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Derivative disclosures
Notional amount of interest rate swaps		$ 10,000,000
Fair value of asset derivatives	$ 4,492,000	6,362,000
LIBOR
Derivative disclosures
Variable interest rate (as a percent)	4.35%
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	$ 9,500,000
Interest rate swap contracts \| Other assets
Derivative disclosures
Fair value of asset derivatives	$ 145,000
Interest rate swap contracts \| Other liabilities.
Derivative disclosures
Fair value of liability derivatives		$ 17,000

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Classification of deposits
Noninterest-bearing demand	$ 972,164	$ 724,443
Interest-bearing:
Checking	1,002,275	785,934
Money market	862,171	646,426
Savings	442,132	281,212
Time	795,428	693,074
Total deposits	4,074,170	3,131,089
Time deposits 250000 or more	76,000	69,900
Brokered certificate of deposit	161,600	190,300
Schedule of maturities of time deposits
2019	523,651
2020	135,754
2021	97,871
2022	22,183
2023	15,968
Thereafter	1
Total	795,428
Investment Securities
Interest-bearing:
Amounts pledged for public deposits	182,400	$ 116,000
Standby Letters of Credit
Interest-bearing:
Amounts pledged for public deposits	$ 120,000

SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	12 Months Ended
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Outstanding at period-end	$ 124,235	$ 156,126
Average amount outstanding	138,135	163,461
Maximum amount outstanding at any month end	$ 173,387	$ 196,278
Weighted average interest rate:
During period	0.51%	0.23%
End of period	0.71%	0.28%
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 132,200	$ 157,200
Line of credit	0	0
Federal funds lines of credit	45,000
Commercial real estate
Short-Term Borrowings
Loans and Leases Receivable, Gross, Carrying Amount, Commercial	67,600	36,500
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 56,800	$ 32,500

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($)	12 Months Ended
FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Jun. 09, 2017
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 640,631,000	$ 496,436,000
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued	2,636	2,636
Preferred stock, par value	$ 2	$ 2
FHLB advances interest rate	1.20%
Principal payment on term loan	$ 1,400,000
Line of Credit Facility, Maximum Borrowing Capacity	45,000,000
FHLB advances, collateral for mortgage and home equity line of credit loans	$ 2,220,000,000	$ 1,860,000,000
Revolving Credit Facility [Member] \| Maximum
Federal Home Loan Bank Advances, Interest Rate Information
Line of Credit Facility, Maximum Borrowing Capacity		10,000,000
Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Face Amount		$ 40,000,000
LIBOR
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate	4.35%
LIBOR \| Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate		2.25%
Variable rate basis		one-month LIBOR
Series G Preferred Stock
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued	181	181
Preferred stock, par value	$ 1,000
Midland States Bancorp, Inc \| Term loan
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 32,840,000	$ 37,113,000
Midland States Bancorp, Inc \| LIBOR \| Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate	2.25%
Interest rate during the period	4.63%	3.63%
Midland States Bancorp, Inc \| Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 181,000	$ 181,000	$ 181,000
Midland States Bank \| Obligations under capital leases implicit interest rate of 1.70% maturing through July 2018
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		5,000
Midland States Bank \| Fixed Rate Term Loan
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	607,610,000	450,137,000
Midland States Bank \| Fixed rate, fixed term maturing through June 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 87,700,000	$ 145,000,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	2.35%	1.35%
Midland States Bank \| Putable fixed rate loan maturing through August 2023
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 520,000,000	$ 305,000,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	2.09%	1.29%
Midland States Bank \| Variable rate, fixed term maturing through March 2018
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 9,000,000

FHLB ADVANCES AND OTHER BORROWINGS - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2019	$ 73,074
2020	30,953
2021	5,814
2022	153,210
2023	267,580
Thereafter	110,000
Total	$ 640,631	$ 496,436

SUBORDINATED DEBT (Details) $ in Thousands		1 Months Ended	12 Months Ended
SUBORDINATED DEBT (Details) $ in Thousands	Oct. 13, 2017 USD ($)	Jun. 30, 2015 USD ($) tranche	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Subordinated Borrowing [Line Items]
Carrying amount			$ 94,134	$ 93,972
Duration with fixed interest rate			5 years
Number of tranches \| tranche		2
Common stock			$ 238	191
Repayments of Subordinated Debt					$ 8,000
LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)			4.35%
Subordinate debt
Subordinated Borrowing [Line Items]
Debt issuance costs	$ 600	$ 900
Subordinate debt, $40,325 maturing June 18, 2025
Subordinated Borrowing [Line Items]
Fixed interest rate			6.00%
Carrying amount			$ 39,871	39,800
Variable rate basis			three-month LIBOR
Face Amount			$ 40,325
Subordinate debt, $40,325 maturing June 18, 2025 \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		4.35%
Subordinate debt, $15,000 maturing June 18, 2025
Subordinated Borrowing [Line Items]
Fixed interest rate			6.50%
Carrying amount			$ 14,831	14,805
Face Amount			$ 15,000
Subordinated debt $40,000 maturing October 15, 2027
Subordinated Borrowing [Line Items]
Fixed interest rate			6.25%
Carrying amount			$ 39,432	39,367
Duration with fixed interest rate			5 years
Variable rate basis			three-month LIBOR
Face Amount			$ 40,000
Subordinated debt $40,000 maturing October 15, 2027 \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)	4.229%		4.23%
Term loan
Subordinated Borrowing [Line Items]
Face Amount				$ 40,000
Term loan \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)				2.25%
Variable rate basis				one-month LIBOR
Private Placement \| Subordinate debt
Subordinated Borrowing [Line Items]
Face Amount	$ 40,000	$ 55,300

TRUST PREFERRED DEBENTURES (Details) - USD ($)	12 Months Ended
TRUST PREFERRED DEBENTURES (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Jun. 09, 2017	Dec. 31, 2014	Jun. 05, 2013	Jun. 06, 2007	Nov. 30, 2006	Apr. 30, 2004	Mar. 26, 2004	Dec. 19, 2003
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 47,794,000	$ 47,330,000
LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	4.35%
Centrue
TRUST PREFERRED DEBENTURES
Liquidation amount per security								$ 1,000
Book value of subordinated debentures			$ 10,000,000
Fair value of subordinated debentures			$ 7,600,000
Number of preferred securities issued								10,000
Grant Park Trust
TRUST PREFERRED DEBENTURES
Liquidation amount per security										$ 1,000
Book value of subordinated debentures					$ 3,000,000
Fair value of subordinated debentures					$ 1,800,000
Number of preferred securities issued										3,000
Midland Trust
TRUST PREFERRED DEBENTURES
Pool issued									$ 10,000,000
Liquidation amount per security									$ 1,000
LSHC Trust III
TRUST PREFERRED DEBENTURES
Liquidation amount per security							$ 1,000
Book value of subordinated debentures				$ 40,000,000
Fair value of subordinated debentures				$ 26,100,000
Number of preferred securities issued							20,000
LSHC Trust IV
TRUST PREFERRED DEBENTURES
Liquidation amount per security						$ 1,000
Number of preferred securities issued						20,000
Centrue Bank
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 7,990,000	7,915,000
Trust preferred debentures maturing January 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 2,209,000	$ 2,151,000
Trust preferred debentures maturing January 23, 2034 \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	5.37%	4.23%
Face Amount								$ 3,093,000		$ 3,000,000
Trust preferred debentures maturing January 23, 2034 \| Grant Park Trust \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.85%
Trust preferred debentures maturing January 23, 2034 \| Midland Trust
TRUST PREFERRED DEBENTURES
Face Amount								10,310,000
Trust preferred debentures maturing April 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 10,272,000	$ 10,269,000
Trust preferred debentures maturing April 23, 2034 \| Midland Trust
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	5.23%	4.11%
Face Amount									$ 10,000,000
Trust preferred debentures maturing April 23, 2034 \| Midland Trust \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.75%
Trust preferred debentures maturing December 31, 2036
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 14,074,000	$ 13,911,000
Trust preferred debentures maturing December 31, 2036 \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	4.54%	3.34%
Face Amount							$ 20,000,000	20,619,000
Trust preferred debentures maturing December 31, 2036 \| LSHC Trust III \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.75%
Trust preferred debentures maturing September 6, 2037
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 13,249,000	$ 13,084,000
Trust preferred debentures maturing September 6, 2037 \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	4.21%	2.98%
Face Amount						$ 20,000,000		20,619,000
Trust preferred debentures maturing September 6, 2037 \| LSHC Trust IV \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.47%
Trust Preferred Debentures Maturing June 17, 2034 \| Centrue Bank
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)		4.25%
Face Amount								10,310,000
Trust Preferred Debentures Maturing June 17, 2034 \| Centrue Bank \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.65%
Interest rate (as a percent)	5.44%
Other assets \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Investment in common stock										$ 93,000
Other assets \| Midland Trust
TRUST PREFERRED DEBENTURES
Investment in common stock									$ 310,000
Other assets \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Investment in common stock						$ 1,200,000
Other assets \| Centrue Bank
TRUST PREFERRED DEBENTURES
Investment in common stock								$ 310,000

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Federal:
Current									$ 55	$ (696)	$ 1,718
Deferred									6,748	11,632	11,381
State:
Current									807	(921)	2,630
Deferred									3,774	400	3,160
Total income tax expense	$ 4,527	$ 2,436	$ 3,045	$ 1,376	$ 5,775	$ 280	$ 1,377	$ 2,983	$ 11,384	$ 10,415	$ 18,889
Effective tax rate									21.00%	35.00%

INCOME TAXES - Statutory federal rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation between the amount of reported income tax and the amount computed using statutory federal rate
Effective income tax rate									21.00%	35.00%
Expected income taxes									$ 10,665	$ 9,244	$ 17,648
Less income tax effect of:
Tax exempt interest									(1,441)	(1,635)	(1,637)
State tax, net of federal benefit									4,028	(110)	3,132
Increase in cash surrender value of life insurance policies									(854)	(969)	(1,007)
Equity-based compensation benefit									(62)	(1,297)	(366)
Non-deductible transaction costs									71	389
Valuation allowance									(409)	(229)	631
Effect of federal rate change enacted in 2017										4,540
Other									(614)	482	488
Actual income tax expense	$ 4,527	$ 2,436	$ 3,045	$ 1,376	$ 5,775	$ 280	$ 1,377	$ 2,983	$ 11,384	$ 10,415	$ 18,889

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($)		12 Months Ended
	Dec. 22, 2017	Dec. 31, 2018	Dec. 31, 2017
Assets:
Allowance for loan losses		$ 5,748,000	$ 4,405,000
Deferred compensation		2,158,000	1,896,000
Loans		6,579,000	3,896,000
Write-down of other real estate owned		563,000	776,000
Tax credits		1,041,000	1,501,000
Nonaccrual interest		730,000	708,000
Unrealized loss on securities		802,000
Stock compensation		700,000	907,000
Deferred loan fees, net of costs			133,000
Net operating losses		17,417,000	20,097,000
Accrued litigation		179,000	101,000
Allowance for repurchase reserves		135,000	100,000
Allowance for unfunded commitments		319,000	180,000
Fair value adjustment on investments		1,330,000
Charitable Contributions		202,000	58,000
Other, net		720,000	324,000
Deferred tax assets		38,623,000	35,082,000
Valuation allowance			(409,000)
Deferred tax assets, net of valuation allowance		38,623,000	34,673,000
Liabilities:
Premises and equipment		3,522,000	1,657,000
Unrealized gain on securities			412,000
Mortgage servicing rights		11,460,000	11,424,000
Fair value adjustment on trust preferred debentures		4,694,000	4,700,000
Federal Home Loan Bank stock dividends		391,000	310,000
Deferred loan costs, net of fees		1,495,000
Intangible assets		8,741,000	2,729,000
Accounting method changes		74,000	399,000
Prepaid expenses		708,000	796,000
Software development costs		1,667,000
Leased equipment		4,351,000
Other, net		269,000	222,000
Deferred tax liabilities		37,372,000	22,649,000
Deferred tax assets, net			12,024,000
Deferred tax assets (liabilities), net		1,251,000
Accumulation of prior year's earnings representing tax bad debt deductions		3,100,000	3,100,000
Write-down of deferred tax assets	$ 4,500,000
Unrecognized tax benefits		0	0
Interest or penalties relative to unrecognized tax benefits		$ 0	0
State tax credit carryforwards Valuation allowance			$ 409,000
Effect of Tax Cuts and Jobs Act of 2017
Effective income tax rate		21.00%	35.00%
Federal
Assets:
Net operating losses		$ 62,600,000
Liabilities:
Tax credit carryforward		3,600,000
State
Liabilities:
Tax credit carryforward		$ 1,000,000
Period for tax credit carryforward.		5 years
State \| Illinois
Liabilities:
Post-apportioned operating loss carryforward		$ 53,400,000
State \| Missouri
Liabilities:
Pre-apportioned operating loss carryforward		$ 62,600,000

RETIREMENT PLANS (Details) - USD ($)	12 Months Ended
RETIREMENT PLANS (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jul. 01, 2017
Defined Contribution Plan Disclosure [Line Items]
Employer's contribution, discretionary amount	$ 0	$ 0	$ 0
Employer's matching contribution, percentage	50.00%
Employee's contribution, percentage of gross pay	6.00%
Employer's matching contribution, percentage of employee compensation	50.00%
Total expense recorded	$ 1,800,000	1,200,000	1,200,000
Director \| Deferred Compensation Arrangement
Defined Contribution Plan Disclosure [Line Items]
Employer's matching contribution, percentage	25.00%
Deferred Compensation Arrangements [Abstract]
Deferred compensation arrangement, compensation expense	$ 754,000	659,000	605,000
Deferred compensation arrangement, distributions	356,000	100,000	126,000
Chief Executive Officer [Member] \| Deferred Compensation Arrangement
Deferred Compensation Arrangements [Abstract]
Deferred compensation arrangement, accrued liability	282,000	210,000	$ 219,000
Chief Executive Officer [Member] \| Deferred Compensation Arrangement \| Forecast
Deferred Compensation Arrangements [Abstract]
Deferred compensation arrangement, supplement retirement payments, percentage of final salary				30.00%	40.00%	50.00%
Other Postretirement Benefit Plan [Member]
Deferred Compensation Arrangements [Abstract]
Funded status of the plan (market value of assets divided by funding target)							121.96%
Defined benefit plan, minimum required contribution, administrative expense	122,000	121,000
Other liabilities. \| Director \| Deferred Compensation Arrangement
Deferred Compensation Arrangements [Abstract]
Deferred compensation arrangement, accrued liability	$ 4,200,000	$ 3,800,000
Minimum
Defined Contribution Plan Disclosure [Line Items]
Employee's contribution, percentage of gross pay	1.00%
Maximum
Defined Contribution Plan Disclosure [Line Items]
Employee's contribution, percentage of gross pay	100.00%

STOCK BASED COMPENSATION - Grant date using the Black Scholes (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
2010 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be issued			2,000,000
Stock option
Fair value of each grant is estimated at the grant date using the Black Scholes option pricing model with the following weighted average assumptions
Dividend yield	2.50%	3.00%
Expected volatility	16.63%	16.98%
Risk free interest rate	2.12%	1.64%
Expected life	6 years 3 months	6 years 3 months
Stock option \| 2010 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be issued			1,000,000

STOCK BASED COMPENSATION - stock option plan (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Weighted average exercise price
Total unrecognized compensation (in years)	1 year 8 months 12 days
Stock option
Number of shares
Options outstanding, beginning of year (in shares)	1,148,537	1,319,259
Options granted (in shares)		31,259
Options exercised (in shares)	(108,344)	(179,760)
Options forfeited (in shares)	(34,049)	(22,221)
Options outstanding, end of year (in shares)	1,006,144	1,148,537	1,319,259
Options exercisable (in shares)	885,817	673,706
Options vested and expected to vest (in shares)	991,774	1,088,853
Weighted average exercise price
Options outstanding, beginning of year (in dollars per share)	$ 19.39	$ 18.73
Options granted (in dollars per share)		32.89
Options exercised (in dollars per share)	16.42	16.02
Options forfeited (in dollars per share)	26.27	26.08
Options outstanding, end of year (in dollars per share)	19.48	19.39	$ 18.73
Options exercisable (in dollars per share)	18.53	17.55
Options vested and expected to vest (in dollars per share)	$ 19.38	$ 19.27
Options outstanding, end of year (in years)	4 years 10 months 24 days	5 years 9 months 18 days
Options exercisable (in years)	4 years 7 months 6 days	4 years 7 months 6 days
Options vested and expected to vest (in years)	4 years 10 months 24 days	5 years 8 months 12 days
Aggregate intrinsic value of options outstanding	$ 3,800,000
Aggregate intrinsic value of options exercisable	3,800,000
Total unrecognized compensation	311,000
Weighted average fair value of options granted		$ 4.33	$ 2.94
Total intrinsic value from options exercised	1,600,000	$ 2,300,000	$ 971,000
Cash received from options exercised	$ 1,800,000	$ 2,900,000	$ 890,000

STOCK BASED COMPENSATION - Nonvested stock option (Details) - Stock option - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of shares
Nonvested at December 31, 2015 (in shares)	474,831
Granted (in shares)		31,259
Vested (in shares)	(324,508)
Forfeited (in shares)	(29,996)
Nonvested at December 31, 2016 (in shares)	120,327	474,831
Weighted average grant date fair value
Nonvested at December 31, 2015 (in dollars per shares)	$ 2.83
Vested (in dollars per shares)	2.72
Forfeited (in dollars per shares)	2.91
Nonvested at December 31, 2016 (in dollars per shares)	$ 3.11	$ 2.83

STOCK BASED COMPENSATION - Restricted stock awards (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Weighted average grant date fair value
Total unrecognized compensation (in years)	1 year 8 months 12 days
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Number outstanding
Granted during the year (in shares)	138,683	70,951
Weighted average grant date fair value
Nonvested at December 31, 2015 (in dollars per shares)	$ 31.03	$ 27.38
Nonvested at December 31, 2016 (in dollars per shares)	$ 28.47	31.03	$ 27.38
Total unrecognized compensation				$ 5.3
Total unrecognized compensation (in years)	3 years 3 months 18 days
Weighted average grant date fair value for restricted stock awards	$ 31.03	$ 27.38	$ 27.38	$ 28.47
Compensation cost that has been charged against income	$ 1.8	$ 1.8	$ 1.1
Restricted Stock Units (RSUs)
Number outstanding
Granted during the year (in shares)		12,965
Restricted Stock And Restricted Stock Unit Awards [Member]
Number outstanding
Nonvested at December 31, 2015 (in shares)	149,368
Granted during the year (in shares)	138,683
Vested during the year (in shares)	(56,907)
Forfeited during the year (in shares)	(33,427)
Nonvested at December 31, 2016 (in shares)	197,717	149,368
Weighted average grant date fair value
Nonvested at December 31, 2015 (in dollars per shares)	$ 28.83
Granted during the year (in dollars per shares)	28.47
Vested during the year (in dollars per shares)	27.95
Forfeited during the year (in dollars per shares)	30.17
Nonvested at December 31, 2016 (in dollars per shares)	28.61	$ 28.83
Weighted average grant date fair value for restricted stock awards	$ 28.83	$ 28.83		$ 28.61

PREFERRED STOCK (Details). - USD ($) $ / shares in Units, $ in Thousands	Jun. 09, 2017	Dec. 31, 2018	Dec. 31, 2017
Fair value of preferred stock issued		$ 2,781	$ 2,970
Series G Preferred Stock
Dividend rate, per-dollar-amount	$ 60.00
Series H Preferred Stock
Fair value of preferred stock issued	$ 3,100
Dividend rate	12.50%
Redemption price per share	$ 1,000

EARNINGS PER SHARE (Details) - shares	12 Months Ended
EARNINGS PER SHARE (Details) - shares	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	31,259	662	114,648

EARNINGS PER SHARE (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
EARNINGS PER SHARE
Net income									$ 39,421	$ 16,056	$ 31,542
Preferred dividends declared									(330)	(184)
Preferred stock, premium amortization									189	101
Net income available to common shareholders	$ 16,302	$ 8,462	$ 12,746	$ 1,770					39,280	15,973	31,542
Common shareholder dividends									(19,838)	(13,922)	(9,797)
Unvested restricted stock award dividends									(139)	(86)	(56)
Undistributed earnings to unvested restricted stock awards									(123)	(11)	(110)
Undistributed earnings to common shareholders									19,180	1,954	21,579
Basic
Common shareholder dividends									(19,838)	(13,922)	(9,797)
Undistributed earnings to common shareholders									19,180	1,954	21,579
Net income available to common shareholders									39,018	15,876	31,376
Diluted
Common shareholder dividends									(19,838)	(13,922)	(9,797)
Undistributed earnings to common shareholders									19,180	1,954	21,579
Net income available to common shareholders									39,018	15,876	31,376
Add back:
Undistributed earnings reallocated from unvested restricted stock awards									2		2
Total common shareholders earnings, diluted									$ 39,020	$ 15,876	$ 31,378
Weighted average common shares outstanding, basic (In shares)									23,130,475	17,781,631	14,130,552
Options and warrants									418,550	501,583	298,287
Weighted average common shares outstanding, diluted (In shares)									23,549,025	18,283,214	14,428,839
Basic earnings per common share (In dollars per share)	$ 0.68	$ 0.35	$ 0.53	$ 0.08	$ 0.10	$ 0.10	$ 0.21	$ 0.54	$ 1.69	$ 0.89	$ 2.22
Diluted earnings per common share (In dollars per share)	$ 0.67	$ 0.35	$ 0.52	$ 0.08	$ 0.10	$ 0.10	$ 0.20	$ 0.52	$ 1.66	$ 0.87	$ 2.17

CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Capital requirements and restrictions on dividends
Minimum capital conservation buffer percentage		1.875%	1.25%
Total Capital (to Risk Weighted Assets): Actual Amount		$ 584,409	$ 478,914
Total Capital (to Risk Weighted Assets): Actual Ratio		12.79%	13.26%
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount		$ 365,547	$ 288,895
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio		8.00%	8.00%
Tier I Capital (to Risk Weighted Assets): Actual Amount		$ 468,212	$ 367,841
Tier I Capital (to Risk Weighted Assets): Actual Ratio		10.25%	10.19%
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount		$ 274,160	$ 216,671
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio		6.00%	6.00%
Common equity Tier 1 capital (to risk-weighted assets): Actual Amount		$ 400,480	$ 304,974
Common equity Tier 1 capital (to risk-weighted assets): Actual Ratio		8.76%	8.45%
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount		$ 205,620	$ 162,503
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Ratio		4.50%	4.50%
Tier I Capital (to Average Assets): Actual Amount		$ 468,212	$ 367,841
Tier I Capital (to Average Assets): Actual Ratio		8.53%	8.63%
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount		$ 219,602	$ 170,566
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio		4.00%	4.00%
Forecast
Capital requirements and restrictions on dividends
Minimum capital conservation buffer percentage	2.50%
Midland States Bank
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount		$ 583,465	$ 445,285
Total Capital (to Risk Weighted Assets): Actual Ratio		12.76%	12.32%
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount		$ 365,894	$ 289,252
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio		8.00%	8.00%
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements		$ 457,368	$ 361,565
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements		10.00%	10.00%
Tier I Capital (to Risk Weighted Assets): Actual Amount		$ 561,402	$ 428,184
Tier I Capital (to Risk Weighted Assets): Actual Ratio		12.27%	11.84%
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount		$ 274,421	$ 216,939
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio		6.00%	6.00%
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements		$ 365,894	$ 289,252
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements		8.00%	8.00%
Common equity Tier 1 capital (to risk-weighted assets): Actual Amount		$ 561,402	$ 428,184
Common equity Tier 1 capital (to risk-weighted assets): Actual Ratio		12.27%	11.84%
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount		$ 205,815	$ 162,704
Common equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Ratio		4.50%	4.50%
Common equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements		$ 297,289	$ 235,017
Common equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements		6.50%	6.50%
Tier I Capital (to Average Assets): Actual Amount		$ 561,402	$ 428,184
Tier I Capital (to Average Assets): Actual Ratio		10.22%	10.04%
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount		$ 219,622	$ 170,608
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio		4.00%	4.00%
Tier I Capital (to Average Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements		$ 274,528	$ 213,260
Tier I Capital (to Average Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements		5.00%	5.00%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	12 Months Ended			24 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Oct. 04, 2016
Assets and liabilities measured at fair value on a recurring basis:
Transfer of assets between level 1 to 2	$ 0			$ 0
Transfer of assets between level 2 to 1	0			0
Transfer of assets into level 3				0
Transfer of assets out of level 3				0
Assets
Investment securities available for sale	657,451	$ 450,525		657,451
Equity securities	3,334			3,334
Loans held for sale	30,401	50,087		30,401
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	3,545	10,176		3,545
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights	(449)	2,324	$ 3,135
Mortgage servicing rights held for sale	458	4,059
Impaired loans	5,800	7,096	2,459
Other real estate owned	301	253	247
Assets held for sale		1,516	1,646
Total loss on assets measured on a nonrecurring basis	6,559	15,248	$ 7,487
U.S. Treasury securities
Assets
Investment securities available for sale	24,650	27,718		24,650
Government sponsored entity debt securities
Assets
Investment securities available for sale	75,684	25,211		75,684
State and municipal securities
Assets
Investment securities available for sale	159,262	102,567		159,262
Corporate Securities
Assets
Investment securities available for sale	71,550	59,812		71,550
Equity Security
Assets
Investment securities available for sale	3,334	2,830		3,334
Covered non-agency mortgage-backed securities
Assets
Investment securities available for sale					$ 72,100
Level 1
Assets
Investment securities available for sale	24,650	27,718		24,650
Level 2
Assets
Investment securities available for sale	634,212	418,028		634,212
Loans held for sale	30,401	50,089		30,401
Level 2 \| Interest rate lock commitments
Assets
Derivative Assets	4,492	6,331		4,492
Level 2 \| Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets		31
Level 2 \| Interest rate swap contracts
Assets
Derivative Assets	145	17		145
Liabilities
Derivative liability	145	17		145
Level 3
Assets
Investment securities available for sale	1,923	4,779		1,923
Recurring member
Assets
Loans held for sale	30,401	50,089		30,401
Total Assets	695,823	506,993		695,823
Recurring member \| U.S. Treasury securities
Assets
Investment securities available for sale	24,650	27,718		24,650
Recurring member \| Government sponsored entity debt securities
Assets
Investment securities available for sale	75,684	25,211		75,684
Recurring member \| Agency mortgage-backed securities
Assets
Investment securities available for sale	326,305	232,387		326,305
Recurring member \| State and municipal securities
Assets
Investment securities available for sale	159,262	102,567		159,262
Recurring member \| Corporate Securities
Assets
Investment securities available for sale	71,550	59,812		71,550
Recurring member \| Equity Security
Assets
Equity securities	3,334	2,830		3,334
Recurring member \| Interest rate lock commitments
Assets
Derivative Assets	4,492	6,331		4,492
Recurring member \| Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets		31
Recurring member \| Interest rate swap contracts
Assets
Derivative Assets	145	17		145
Liabilities
Derivative liability	145	17		145
Recurring member \| Level 1
Assets
Total Assets	24,650	27,718		24,650
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Investment securities available for sale	24,650	27,718		24,650
Recurring member \| Level 2
Assets
Loans held for sale	30,401	50,089		30,401
Total Assets	669,250	474,496		669,250
Recurring member \| Level 2 \| Government sponsored entity debt securities
Assets
Investment securities available for sale	75,684	25,211		75,684
Recurring member \| Level 2 \| Agency mortgage-backed securities
Assets
Investment securities available for sale	326,305	232,387		326,305
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale	159,262	102,567		159,262
Recurring member \| Level 2 \| Corporate Securities
Assets
Investment securities available for sale	69,627	55,033		69,627
Recurring member \| Level 2 \| Equity Security
Assets
Equity securities	3,334	2,830		3,334
Recurring member \| Level 2 \| Interest rate lock commitments
Assets
Derivative Assets	4,492	6,331		4,492
Recurring member \| Level 2 \| Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets		31
Recurring member \| Level 2 \| Interest rate swap contracts
Assets
Derivative Assets	145	17		145
Liabilities
Derivative liability	145	17		145
Recurring member \| Level 3
Assets
Total Assets	1,923	4,779		1,923
Recurring member \| Level 3 \| Corporate Securities
Assets
Investment securities available for sale	1,923	4,779		1,923
Non recurring member
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	53,447	56,352		53,447
Mortgage servicing rights held for sale	3,545	10,176		3,545
Impaired loans	11,238	9,385		11,238
Other real estate owned	1,439	801		1,439
Assets held for sale	1,687	3,358		1,687
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	3,545	10,176		3,545
Non recurring member \| Level 2
Assets measured at fair value on a non-recurring basis:
Impaired loans	9,226	7,631		9,226
Other real estate owned	1,439	801		1,439
Assets held for sale	1,687	3,358		1,687
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	53,447	56,352		53,447
Impaired loans	$ 2,012	$ 1,754		$ 2,012

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands	12 Months Ended		24 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transferred to Level 2			$ 0
Corporate Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 4,779	$ 7,480	7,480
Total realized in earnings	242	289
Total unrealized in other comprehensive income	(36)	264
Net settlements (principal and interest)	(3,062)	(3,254)
Ending balance	$ 1,923	4,779	1,923
Non-agency mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		1	$ 1
Net settlements (principal and interest)		$ (1)

FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) - Non recurring member	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($) item
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	$ 53,447,000	$ 56,352,000
Impaired loans	11,238,000	9,385,000
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	53,447,000	56,352,000
Impaired loans	$ 2,012,000	$ 1,754,000
Level 3 \| Mortgage servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Level 3 \| Discounted cash flow \| Mortgage servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights		$ 56,352,000
Level 3 \| Discounted cash flow \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	$ 53,447,000
Level 3 \| Fair value of collateral \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 2,012,000	$ 1,754,000
Minimum \| Level 3 \| Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.10	0.08
Minimum \| Level 3 \| Measurement Input, Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset \| item	0.08	0.0636
Minimum \| Level 3 \| Measurement Input, Discount for type of property, age of appraisal and current status
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans	0.0500	0.0484
Maximum \| Level 3 \| Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset \| item	0.27	0.1450
Maximum \| Level 3 \| Measurement Input, Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.18	42.90
Maximum \| Level 3 \| Measurement Input, Discount for type of property, age of appraisal and current status
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans	0.0726	0.1824
Weighted average \| Level 3 \| Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset \| item	0.1112	0.1118
Weighted average \| Level 3 \| Measurement Input, Prepayment Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset \| item	0.0824	0.0883
Weighted average \| Level 3 \| Measurement Input, Discount for type of property, age of appraisal and current status
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans	0.0526	0.0864

FAIR VALUE OF FINANCIAL INSTRUMENTS- Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 30,401	$ 50,087
Difference	1,079	717
Contractual principal	29,322	49,370
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	258	(724)
Residential loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	8,121	12,241
Difference	484	374
Contractual principal	7,637	11,867
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	6	(74)
Commercial real estate
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	22,280	37,846
Difference	595	343
Contractual principal	21,685	37,503
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ 252	$ (650)

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Assets
Investment securities available for sale		$ 657,451	$ 450,525
Equity securities		3,334
Loans held for sale		30,401	50,087
Accrued interest receivable		16,560	11,715
Liabilities
Trust preferred debentures		47,794	47,330
Accrued interest payable		4,855	2,531
Fair value, additional information
Other-than-temporary impairment on investment securities	$ 824
Level 1
Assets
Cash and due from banks		210,780	214,519
Federal funds sold		2,920	683
Investment securities available for sale		24,650	27,718
Level 2
Assets
Investment securities available for sale		634,212	418,028
Nonmarketable equity securities		42,472	34,796
Loans held for sale		30,401	50,089
Accrued interest receivable		16,560	11,715
Liabilities
Deposits		4,069,098	3,127,626
Short-term borrowings		124,235	156,126
FHLB and other borrowings		641,050	494,634
Subordinated debt		91,926	90,860
Trust preferred debentures		56,805	46,069
Accrued interest payable		4,855
Level 3
Assets
Investment securities available for sale		1,923	4,779
Loans, net		4,091,438	3,200,016
Carrying value
Assets
Cash and due from banks		210,780	214,519
Federal funds sold		2,920	683
Investment securities available for sale		660,785	450,525
Nonmarketable equity securities		42,472	34,796
Loans, net		4,116,648	3,210,247
Loans held for sale		30,401	50,089
Accrued interest receivable		16,560	11,715
Liabilities
Deposits		4,074,170	3,131,089
Short-term borrowings		124,235	156,126
FHLB and other borrowings		640,631	496,436
Subordinated debt		94,134	93,972
Trust preferred debentures		47,794	45,379
Accrued interest payable		4,855
Fair value
Assets
Cash and due from banks		210,780	214,519
Federal funds sold		2,920	683
Investment securities available for sale		660,785	450,525
Nonmarketable equity securities		42,472	34,796
Loans, net		4,091,438	3,200,016
Loans held for sale		30,401	50,089
Accrued interest receivable		16,560	11,715
Liabilities
Deposits		4,069,098	3,127,626
Short-term borrowings		124,235	156,126
FHLB and other borrowings		641,050	494,634
Subordinated debt		91,926	90,860
Trust preferred debentures		56,805	46,069
Accrued interest payable		4,855
Interest rate lock commitments \| Level 2
Assets
Derivative Assets		4,492	6,331
Interest rate lock commitments \| Carrying value
Assets
Derivative Assets		4,492	6,331
Interest rate lock commitments \| Fair value
Assets
Derivative Assets		4,492	6,331
Forward commitments to sell mortgage-backed securities \| Level 2
Assets
Derivative Assets			31
Forward commitments to sell mortgage-backed securities \| Carrying value
Assets
Derivative Assets			31
Forward commitments to sell mortgage-backed securities \| Fair value
Assets
Derivative Assets			31
Interest rate swap contracts \| Level 2
Assets
Derivative Assets		145	17
Liabilities
Accrued interest payable			2,531
Derivative Liability		145	17
Interest rate swap contracts \| Carrying value
Assets
Derivative Assets		145	17
Liabilities
Accrued interest payable			2,531
Derivative Liability		145	17
Interest rate swap contracts \| Fair value
Assets
Derivative Assets		145	17
Liabilities
Accrued interest payable			2,531
Derivative Liability		145	17
Corporate Securities
Assets
Investment securities available for sale		$ 71,550	$ 59,812

COMMITMENTS, CONTINGENCIES AND CREDIT RISK - Minimum Rental Payments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Anticipated material loss	$ 0
Net rent expense under operating leases	3,200,000	$ 2,700,000	$ 2,400,000
Losses as a result of make whole requests and loan repurchases	11,000	17,000	$ 83,000
Liability for unresolved repurchase demands	492,000	371,000
Minimum rental payments under the terms of leases
2019	2,878,000
2020	2,361,000
2021	2,193,000
2022	1,955,000
2023	1,397,000
Thereafter	2,249,000
Total estimated lease payments	13,033,000
Commitments to extend credit
Loan commitments	663,555,000	568,356,000
Financial guarantees - standby letters of credit
Loan commitments	$ 142,859,000	$ 142,189,000

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 48,535	$ 45,081	$ 48,286	$ 38,185	$ 36,036	$ 36,765	$ 29,400	$ 27,461	$ 180,087	$ 129,662	$ 105,254
Provision for loan losses	3,467	2,103	1,854	2,006	6,076	1,489	458	1,533	9,430	9,556	5,591
Noninterest income	21,170	18,272	15,847	16,502	13,998	15,403	13,619	16,342	71,791	59,362	72,057
Noninterest expense	45,375	50,317	46,452	49,499	36,192	48,363	37,645	30,797	191,643	152,997	121,289
Income (loss) before income taxes (benefit)	20,863	10,933	15,827	3,182	7,766	2,316	4,916	11,473	50,805	26,471	50,431
Income taxes (benefit)	4,527	$ 2,436	$ 3,045	$ 1,376	5,775	$ 280	$ 1,377	$ 2,983	11,384	10,415	18,889
Net income (loss)									39,421	16,056	31,542
Total assets	5,637,673				4,412,701				5,637,673	4,412,701	3,233,723
Commercial FHA origination and servicing
Segment Reporting Information [Line Items]
Net interest income (expense)									(422)	312	1,003
Noninterest income									11,457	18,570	22,979
Noninterest expense									15,058	13,729	15,104
Income (loss) before income taxes (benefit)									(4,023)	5,153	8,878
Income taxes (benefit)									(979)	(1,033)	3,332
Net income (loss)									(3,044)	6,186	5,546
Total assets	91,108				99,685				91,108	99,685	129,943
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)									298	524
Noninterest income									20,484	13,339	8,073
Noninterest expense									11,680	8,823	6,533
Income (loss) before income taxes (benefit)									9,102	5,040	1,540
Income taxes (benefit)									514	423	115
Net income (loss)									8,588	4,617	1,425
Total assets	18,218				15,979				18,218	15,979	5,550
Other
Segment Reporting Information [Line Items]
Net interest income (expense)									(10,672)	(7,148)	(5,699)
Noninterest income									(463)	(502)	(50)
Noninterest expense									(839)	819	649
Income (loss) before income taxes (benefit)									(10,296)	(8,469)	(6,398)
Income taxes (benefit)									(2,305)	(6,077)	(1,687)
Net income (loss)									(7,991)	(2,392)	(4,711)
Total assets	(43,405)				(39,264)				(43,405)	(39,264)	(72,400)
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)									190,883	135,974	109,950
Provision for loan losses									9,430	9,556	5,591
Noninterest income									40,313	27,955	41,055
Noninterest expense									165,744	129,626	99,003
Income (loss) before income taxes (benefit)									56,022	24,747	46,411
Income taxes (benefit)									14,154	17,102	17,129
Net income (loss)									41,868	7,645	29,282
Total assets	$ 5,571,752				$ 4,336,301				$ 5,571,752	$ 4,336,301	$ 3,170,630

RELATED PARTY TRANSACTIONS (Details)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details)	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Related Party Transaction [Line Items]
Rent paid	$ 712,000	$ 719,000	$ 706,000
Former member of board of directors
Related Party Transaction [Line Items]
Number of the bank's full-service branch facilities \| item	3
One Of The Board Of Directors
Related Party Transaction [Line Items]
Payments to related party	$ 116,000
Chairman
Related Party Transaction [Line Items]
Payments to related party	418,000	$ 20,000	$ 161,000,000,000
Related Party Operating Lease Member
Related Party Transaction [Line Items]
Rent paid	$ 42,000

REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606									$ 25,579
Total noninterest income	$ 21,170	$ 18,272	$ 15,847	$ 16,502	$ 13,998	$ 15,403	$ 13,619	$ 16,342	$ 71,791	$ 59,362	$ 72,057
Contract Acquisition Costs
Practical expedient, amortization period	1 year								1 year
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606										31,722	52,800
Total noninterest income										59,362	72,057
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									$ 16,099
Trust management/administration fees \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										9,751	5,985
Investment advisory fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									2,041
Investment advisory fees \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										1,364
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									1,065
Investment brokerage fees \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										1,388	1,324
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									1,308
Other \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										837	782
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									7,672
Nonsufficient fund fees \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										4,193	2,562
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									2,768
Other \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										1,782	1,342
Interchange revenues
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									10,674
Interchange revenues \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										5,353	3,750
Merchant services revenue
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									1,650
Merchant services revenue \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										1,103	1,697
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									$ 2,935
Other \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										$ 1,869	$ 1,815

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Financial Information (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Accrued income taxes receivable	$ 8,809	$ 8,358
Other assets	50,900	42,425
Total assets	5,637,673	4,412,701	$ 3,233,723
Liabilities:
Subordinated debt	94,134	93,972
Trust preferred debentures	47,794	47,330
Other liabilities	43,329	35,672
Total liabilities	5,029,148	3,963,156
Shareholders' equity	608,525	449,545	$ 321,770	$ 232,880
Total liabilities and shareholders' equity	5,637,673	4,412,701
Midland States Bancorp, Inc
Assets
Cash	20,312	60,424
Investment in common stock of subsidiaries	764,483	563,541
Accrued income taxes receivable		3,300
Other assets	2,330	2,303
Total assets	787,125	629,568
Liabilities:
Subordinated debt	94,134	93,972
Trust preferred debentures	47,794	47,330
Other borrowings	33,021	37,294
Accrued income taxes payable	778
Deferred tax liabilities, net	972	252
Other liabilities	1,901	1,175
Total liabilities	178,600	180,023
Shareholders' equity	608,525	449,545
Total liabilities and shareholders' equity	$ 787,125	$ 629,568

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Statements of Income
Interest expense	$ (13,057)	$ (11,906)	$ (9,997)	$ (8,320)	$ (7,464)	$ (6,481)	$ (5,128)	$ (4,378)	$ (43,280)	$ (23,451)	$ (15,995)
Income (loss) before income taxes and equity in undistributed (loss) income of subsidiaries	20,863	10,933	15,827	3,182	7,766	2,316	4,916	11,473	50,805	26,471	50,431
Income tax benefit	$ (4,527)	$ (2,436)	$ (3,045)	$ (1,376)	$ (5,775)	$ (280)	$ (1,377)	$ (2,983)	(11,384)	(10,415)	(18,889)
Net income									39,421	16,056	31,542
Midland States Bancorp, Inc
Condensed Statements of Income
Dividends received from subsidiaries									17,000	19,500
Other income									6	4	428
Interest expense									(10,714)	(7,162)	(5,699)
Other expense									(1,180)	(1,295)	(1,130)
Income (loss) before income taxes and equity in undistributed (loss) income of subsidiaries									5,112	11,047	(6,401)
Income tax benefit									2,312	6,080	1,687
Income (loss) after income taxes and before equity in undistributed (loss) income of subsidiaries									7,424	17,127	(4,714)
Equity in undistributed (loss) income of subsidiaries									31,997	(1,071)	36,256
Net income									$ 39,421	$ 16,056	$ 31,542

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 16,336	$ 8,497	$ 12,782	$ 1,806	$ 1,991	$ 2,036	$ 3,539	$ 8,490	$ 39,421	$ 16,056	$ 31,542
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of restricted stock awards									1,199	836	555
Compensation expense for stock option grants									334	548	492
Change in other assets									(5,712)	5,189	(6,399)
Change in other liabilities									3,783	(2,835)	(313)
Net cash provided by operating activities									97,060	70,449	24,126
Cash flows from investing activities:
Net cash acquired (paid) in acquisitions									36,153	(18,519)	(5,191)
Net cash used in investing activities									(6,661)	(234,607)	(359,062)
Cash flows from financing activities:
Payments made on subordinated debt											(8,000)
Proceeds from issuance of subordinated debt										39,354
Proceeds from other borrowings, net of issuance costs										39,964
Payments made on other borrowings									(4,286)	(3,198)
Cash dividends paid on preferred stock									(330)	(184)
Cash dividends paid on common stock									(19,977)	(14,008)	(9,853)
Proceeds from issuance of common stock in initial public offering, net of issuance costs											71,475
Proceeds from issuance of common stock under employee benefit plans									2,278	3,225	1,318
Net cash (used in) provided by financing activities									(91,901)	188,644	313,177
Cash and cash equivalents:
Beginning of year				215,202					215,202
End of year	213,700				215,202				213,700	215,202
Midland States Bancorp, Inc
Cash flows from operating activities:
Net income									39,421	16,056	31,542
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed loss (income) of subsidiaries									(31,997)	1,071	(36,256)
Amortization of restricted stock awards									1,199	836	555
Compensation expense for stock option grants									334	548	492
Change in other assets									3,273	(3,226)	4,237
Change in other liabilities									2,863	1,649	225
Net cash provided by operating activities									15,093	16,934	795
Cash flows from investing activities:
Net cash acquired (paid) in acquisitions									(32,890)	(60,457)
Capital injection to subsidiaries										(350)	(25,250)
Net cash used in investing activities									(32,890)	(60,807)	(25,250)
Cash flows from financing activities:
Payments made on subordinated debt											(8,000)
Proceeds from issuance of subordinated debt										39,354
Proceeds from other borrowings, net of issuance costs										39,964
Payments made on other borrowings									(4,286)	(2,857)
Cash dividends paid on preferred stock									(330)	(184)	(9,853)
Cash dividends paid on common stock									(19,977)	(14,008)
Proceeds from issuance of common stock in initial public offering, net of issuance costs											71,475
Proceeds from issuance of common stock under employee benefit plans									2,278	3,225	1,318
Net cash (used in) provided by financing activities									(22,315)	65,494	54,940
Net increase (decrease) in cash									(40,112)	21,621	30,485
Cash and cash equivalents:
Beginning of year				$ 60,424				$ 38,803	60,424	38,803	8,318
End of year	$ 20,312				$ 60,424				$ 20,312	$ 60,424	$ 38,803

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED)
Interest income	$ 61,592	$ 56,987	$ 58,283	$ 46,505	$ 43,500	$ 43,246	$ 34,528	$ 31,839	$ 223,367	$ 153,113	$ 121,249
Interest expense	13,057	11,906	9,997	8,320	7,464	6,481	5,128	4,378	43,280	23,451	15,995
Net interest income	48,535	45,081	48,286	38,185	36,036	36,765	29,400	27,461	180,087	129,662	105,254
Provision for loan losses	3,467	2,103	1,854	2,006	6,076	1,489	458	1,533	9,430	9,556	5,591
Net interest income after provision for loan losses	45,068	42,978	46,432	36,179	29,960	35,276	28,942	25,928	170,657	120,106	99,663
Noninterest income	21,170	18,272	15,847	16,502	13,998	15,403	13,619	16,342	71,791	59,362	72,057
Noninterest expense	45,375	50,317	46,452	49,499	36,192	48,363	37,645	30,797	191,643	152,997	121,289
Income (loss) before income taxes (benefit)	20,863	10,933	15,827	3,182	7,766	2,316	4,916	11,473	50,805	26,471	50,431
Income taxes	4,527	2,436	3,045	1,376	5,775	280	1,377	2,983	11,384	10,415	18,889
Net income	16,336	8,497	12,782	1,806	$ 1,991	$ 2,036	$ 3,539	$ 8,490	39,421	16,056	31,542
Preferred stock dividends	34	35	36	36
Net income available to common shareholders	$ 16,302	$ 8,462	$ 12,746	$ 1,770					$ 39,280	$ 15,973	$ 31,542
Per common share data:
Basic earnings per common share (In dollars per share)	$ 0.68	$ 0.35	$ 0.53	$ 0.08	$ 0.10	$ 0.10	$ 0.21	$ 0.54	$ 1.69	$ 0.89	$ 2.22
Diluted earnings per common share (In dollars per share)	$ 0.67	$ 0.35	$ 0.52	$ 0.08	$ 0.10	$ 0.10	$ 0.20	$ 0.52	$ 1.66	$ 0.87	$ 2.17

LOANS - Risk category (Details) $ in Thousands	12 Months Ended
LOANS - Risk category (Details) $ in Thousands	Dec. 31, 2018 USD ($) region	Dec. 31, 2017 USD ($)
Risk category
Number of main regions \| region	4
Loans and Leases Receivable, Gross, Total	$ 4,137,551	$ 3,226,678
Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,682,268	2,196,528
Non-PCI loans
Risk category
Loans and Leases Receivable, Gross, Total	4,094,576	3,204,217
Non-PCI loans \| Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	2,649,828	2,180,186
Non-PCI loans \| Commercial real estate \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	2,503,221	2,087,430
Non-PCI loans \| Commercial real estate \| Special mention
Risk category
Loans and Leases Receivable, Gross, Total	53,857	23,787
Non-PCI loans \| Commercial real estate \| Substandard
Risk category
Loans and Leases Receivable, Gross, Total	61,115	42,413
Non-PCI loans \| Commercial real estate \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	31,154	14,533
Non-PCI loans \| Commercial real estate \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total	481	12,023
Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	1,444,748	1,024,031
Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	1,435,952	1,016,214
Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	8,796	7,817
Commercial \| Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	810,884	555,930
Commercial \| Non-PCI loans \| Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	806,027	553,257
Commercial \| Non-PCI loans \| Commercial real estate \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	748,296	510,928
Commercial \| Non-PCI loans \| Commercial real estate \| Special mention
Risk category
Loans and Leases Receivable, Gross, Total	35,103	12,290
Commercial \| Non-PCI loans \| Commercial real estate \| Substandard
Risk category
Loans and Leases Receivable, Gross, Total	14,139	27,718
Commercial \| Non-PCI loans \| Commercial real estate \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	8,489	1,266
Commercial \| Non-PCI loans \| Commercial real estate \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total		1,055
Commercial real estate \| Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,639,155	1,440,011
Commercial real estate \| Non-PCI loans \| Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	1,619,903	1,427,076
Commercial real estate \| Non-PCI loans \| Commercial real estate \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	1,536,127	1,384,630
Commercial real estate \| Non-PCI loans \| Commercial real estate \| Special mention
Risk category
Loans and Leases Receivable, Gross, Total	15,306	11,497
Commercial real estate \| Non-PCI loans \| Commercial real estate \| Substandard
Risk category
Loans and Leases Receivable, Gross, Total	46,976	14,695
Commercial real estate \| Non-PCI loans \| Commercial real estate \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	21,494	12,482
Commercial real estate \| Non-PCI loans \| Commercial real estate \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total		3,772
Construction and land development \| Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	232,229	200,587
Construction and land development \| Non-PCI loans \| Commercial real estate
Risk category
Loans and Leases Receivable, Gross, Total	223,898	199,853
Construction and land development \| Non-PCI loans \| Commercial real estate \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	218,798	191,872
Construction and land development \| Non-PCI loans \| Commercial real estate \| Special mention
Risk category
Loans and Leases Receivable, Gross, Total	3,448
Construction and land development \| Non-PCI loans \| Commercial real estate \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	1,171	785
Construction and land development \| Non-PCI loans \| Commercial real estate \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total	481	7,196
Residential real estate \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	578,048	453,552
Residential real estate \| Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	569,289	447,602
Residential real estate \| Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	562,019	441,418
Residential real estate \| Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	7,270	6,184
Consumer \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	613,184	371,455
Consumer \| Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	611,408	371,286
Consumer \| Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	610,839	370,999
Consumer \| Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	569	287
Lease financing \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	264,051	205,143
Lease financing \| Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	264,051	205,143
Lease financing \| Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	263,094	203,797
Lease financing \| Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	$ 957	$ 1,346