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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information
Entity Registrant Name	Midland States Bancorp, Inc.
Entity Central Index Key	0001466026
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		19,098,890
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 180,807	$ 189,543
Federal funds sold	2,765	1,173
Cash and cash equivalents	183,572	190,716
Investment securities available for sale, at fair value	396,985	246,339
Investment securities held to maturity, at amortized cost (fair value of $75,142 and $81,952 at September 30, 2017 and December 31, 2016, respectively)	70,867	78,672
Loans	3,157,972	2,319,976
Allowance for loan losses	(16,861)	(14,862)
Total loans, net	3,141,111	2,305,114
Loans held for sale, at fair value	35,874	70,565
Premises and equipment, net	80,941	66,692
Other real estate owned	6,379	3,560
Nonmarketable equity securities	34,391	19,485
Accrued interest receivable	11,673	8,202
Mortgage servicing rights, at lower of cost or market	56,299	68,008
Mortgage servicing rights held for sale	10,618
Intangible assets	17,966	7,187
Goodwill	97,351	48,836
Cash surrender value of life insurance policies	112,591	74,226
Accrued income taxes receivable	2,209	5,862
Deferred tax assets, net	22,845
Other assets	66,089	40,259
Total assets	4,347,761	3,233,723
Deposits:
Noninterest-bearing	674,118	562,333
Interest-bearing	2,440,349	1,842,033
Total deposits	3,114,467	2,404,366
Short-term borrowings	153,443	131,557
FHLB advances and other borrowings	488,870	237,518
Subordinated debt	54,581	54,508
Trust preferred debentures	45,267	37,405
Accrued interest payable	2,355	1,045
Deferred tax liabilities, net		8,598
Other liabilities	38,089	36,956
Total liabilities	3,897,072	2,911,953
Shareholder's Equity:
Preferred stock, Series H, $2 par value, $1,000 per share liquidation value; 2,636 shares authorized, issued and outstanding at September 30, 2017	3,015
Common stock, $0.01 par value; 40,000,000 shares authorized; 19,093,153 and 15,483,499 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	191	155
Capital surplus	329,934	209,712
Retained earnings	116,373	112,513
Accumulated other comprehensive income (loss)	1,176	(610)
Total shareholders' equity	450,689	321,770
Total liabilities and shareholders' equity	$ 4,347,761	$ 3,233,723

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Investment securities held to maturity	$ 75,142,000	$ 81,952,000
Liquidation value	$ 1,000	$ 1,000
Preferred stock, par value	$ 2	$ 2
Preferred stock, shares authorized	2,636
Preferred stock, shares issued	2,636
Preferred stock, shares outstanding	2,636
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	19,093,153	15,483,499
Common stock, shares outstanding	19,093,153	15,483,499

CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Loans:
Taxable	$ 38,689	$ 26,047	$ 97,016	$ 75,741
Tax exempt	313	254	953	899
Loans held for sale	438	858	1,926	2,401
Investment securities:
Taxable	1,905	2,766	4,705	8,222
Tax exempt	963	892	2,820	2,739
Nonmarketable equity securities	331	174	788	504
Federal funds sold and cash investments	607	195	1,405	762
Total interest income	43,246	31,186	109,613	91,268
Interest expense:
Deposits	3,377	2,189	8,570	6,701
Short-term borrowings	100	81	262	217
FHLB advances and other borrowings	1,494	306	2,901	698
Subordinated debt	873	873	2,619	2,985
Trust preferred debentures	637	472	1,635	1,373
Total interest expense	6,481	3,921	15,987	11,974
Net interest income	36,765	27,265	93,626	79,294
Provision for loan losses	1,489	1,392	3,480	3,146
Net interest income after provision for loan losses	35,276	25,873	90,146	76,148
Noninterest income:
Commercial FHA revenue	3,777	3,260	14,625	18,360
Residential mortgage banking revenue	2,317	4,990	7,563	7,148
Wealth management revenue	3,475	1,941	9,754	5,596
Service charges on deposit accounts	2,133	1,044	4,147	2,916
Interchange revenue	1,724	920	3,816	2,829
FDIC loss-sharing expense				(1,661)
Gain on sales of investment securities, net	98	39	219	315
Other-than-temporary impairment on investment securities				(824)
Gain on sales of other real estate owned	22	33	54	112
Other income	1,857	2,710	5,186	6,781
Total noninterest income	15,403	14,937	45,364	41,572
Noninterest expense:
Salaries and employee benefits	22,411	16,568	61,368	48,967
Occupancy and equipment	4,144	3,271	10,800	9,815
Data processing	5,786	2,586	11,531	7,830
FDIC insurance	565	388	1,403	1,350
Professional	4,151	1,877	10,285	5,151
Marketing	1,070	717	2,517	2,009
Communications	723	546	1,655	1,609
Loan expense	629	314	1,531	1,351
Other real estate owned	146	179	725	748
Amortization of intangible assets	1,187	514	2,291	1,613
Loss on mortgage service rights held for sale	(3,617)		(3,617)
Other expense	3,934	1,697	9,082	6,756
Total noninterest expense	48,363	28,657	116,805	87,199
Income before income taxes	2,316	12,153	18,705	30,521
Income taxes	280	4,102	4,640	10,562
Net income	2,036	8,051	14,065	19,959
Preferred stock dividend and premium amortization	27		46
Net income available to common shareholders	$ 2,009	$ 8,051	$ 14,019	$ 19,959
Per common share data:
Basic earnings per common share	$ 0.10	$ 0.51	$ 0.81	$ 1.46
Diluted earnings per common share	$ 0.10	$ 0.51	$ 0.78	$ 1.43
Weighted average common shares outstanding	19,265,409	15,578,703	17,274,746	13,637,997
Weighted average diluted common shares outstanding	19,704,217	15,858,273	17,797,235	13,902,664

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 2,036	$ 8,051	$ 14,065	$ 19,959
Investment securities available for sale:
Unrealized gains (losses) that occurred during the period	305	(233)	3,245	5,789
Reclassification adjustment for realized net gains on sales of investment securities included in net income	(98)	(39)	(219)	(315)
Income tax effect	(94)	110	(1,188)	(2,203)
Change in investment securities available for sale, net of tax	113	(162)	1,838	3,271
Investment securities held to maturity:
Amortization of unrealized gain on investment securities transferred from available-for-sale	(25)	(3)	(83)	(42)
Income tax effect	9	1	31	17
Change in investment securities held to maturity, net of tax	(16)	(2)	(52)	(25)
Cash flow hedges:
Change in fair value of interest rate swap		32		93
Income tax effect		(13)		(38)
Change in cash flow hedges, net of tax		19		55
Other comprehensive income (loss), net of tax	97	(145)	1,786	3,301
Total comprehensive income	$ 2,133	$ 7,906	$ 15,851	$ 23,260

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle \| Adjustments for New Accounting Principle, Early Adoption [Member] \| Accounting Standards Update 2016-09 [Member]										$ 87	$ (87)
Beginning Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2015									$ 118	135,822	90,911	$ 6,029	$ 232,880
Beginning Balance at Dec. 31, 2015									118	135,909	90,824	6,029	232,880
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income											19,959		19,959
Compensation expense for stock option grants										315			315
Amortization of restricted stock awards										387			387
Common dividends declared											(7,057)		(7,057)
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 benefits plans										489			489
Other comprehensive income												3,301	3,301
Ending Balance at Sep. 30, 2016									154	208,539	103,726	9,330	321,749
Beginning Balance at Dec. 31, 2016									155	209,712	112,513	(610)	321,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income											14,065		14,065
Compensation expense for stock option grants										413			413
Amortization of restricted stock awards										599			599
Preferred dividends declared											(102)		(102)
Amortization of preferred stock premium								$ (56)			56		56
Common dividends declared											(10,159)		(10,159)
Acquisition	$ 1	$ 3,350	$ 3,351	$ 3,071	$ 32	$ 112,480	$ 115,583
Issuance of common stock under employee benefits plans									3	3,380			3,383
Other comprehensive income												1,786	1,786
Ending Balance at Sep. 30, 2017								$ 3,015	$ 191	$ 329,934	$ 116,373	$ 1,176	$ 450,689

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Common dividend declared, per share	$ 0.60	$ 0.54
IPO
Common stock shares		3,590,065

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 14,065,000	$ 19,959,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	3,480,000	3,146,000
Depreciation on premises and equipment	3,666,000	3,816,000
Amortization of intangible assets	2,291,000	1,613,000
FDIC loss-sharing expense		1,661,000
Amortization of restricted stock awards	599,000	387,000
Compensation expense for stock option grants	413,000	315,000
Increase in cash surrender value of life insurance	(2,016,000)	(1,547,000)
Investment securities amortization, net	1,358,000	840,000
Other-than-temporary impairment on investment securities		824,000
Gain on sales of investment securities, net	(219,000)	(315,000)
Gain on sales of other real estate owned	(54,000)	(112,000)
Write-down of other real estate owned	171,000	219,000
Origination of loans held for sale	(630,601,000)	(894,445,000)
Proceeds from sales of loans held for sale	679,217,000	907,306,000
Gain on loans sold and held for sale	(20,844,000)	(28,827,000)
Amortization of mortgage servicing rights	4,254,000	4,410,000
Impairment of mortgage servicing rights	1,830,000	6,093,000
Loss on mortgage service rights held for sale	3,617,000
Net change in operating assets and liabilities:
Accrued interest receivable	(1,095,000)	(1,114,000)
Accrued interest payable	1,035,000	896,000
Accrued income taxes receivable	3,653,000	7,304,000
Other assets	159,000	460,000
Other liabilities	(2,341,000)	(2,620,000)
Net cash provided by operating activities	62,638,000	30,269,000
Investment securities available for sale:
Purchases	(221,617,000)	(64,396,000)
Sales	11,250,000	31,191,000
Maturities and payments	192,791,000	22,038,000
Investment securities held to maturity:
Purchases	(2,929,000)	(2,401,000)
Maturities	10,480,000	6,646,000
Net increase in loans	(160,266,000)	(325,009,000)
Purchases of premises and equipment	(5,261,000)	(1,410,000)
Purchase of bank-owned life insurance		(20,000,000)
Purchases of nonmarketable equity securities	(16,575,000)	(3,428,000)
Sales of nonmarketable equity securities	9,837,000	90,000
Proceeds from sales of other real estate owned	4,525,000	4,423,000
Net cash paid in acquisitions	(18,519,000)
Net cash used in investing activities	(196,284,000)	(352,256,000)
Cash flows from financing activities:
Net (decrease) increase in deposits	(29,766,000)	52,384,000
Net increase in short-term borrowings	7,452,000	30,751,000
Proceeds from FHLB borrowings	347,357,000	850,000,000
Payments made on FHLB borrowings	(229,857,000)	(652,500,000)
Proceeds from other borrowings, net of issuance costs	39,964,000
Payments made on other borrowings	(1,770,000)
Payments made on subordinated debt		(8,000,000)
Cash dividends paid on common stock	(10,159,000)	(7,057,000)
Cash dividends paid on preferred stock	(102,000)
Proceeds from issuance of common stock in initial public offering, net of issuance costs		71,475,000
Proceeds from issuance of common stock under employee benefit plans	3,383,000	489,000
Net cash provided by financing activities	126,502,000	337,542,000
Net (decrease) increase in cash and cash equivalents	(7,144,000)	15,555,000
Cash and cash equivalents:
Beginning of period	190,716,000	212,475,000
End of period	183,572,000	228,030,000
Cash payments for:
Interest paid on deposits and borrowed funds	14,677,000	11,078,000
Income tax paid	637,000	157,000
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to other real estate owned	2,659,000	$ 4,245,000
Transfer of premises and equipment to assets held for sale	2,858,000
Transfer of mortgage servicing rights at lower of cost or market to mortgage servicing rights held for sale	$ 10,618,000

BUSINESS DESCRIPTION	9 Months Ended
BUSINESS DESCRIPTION	Sep. 30, 2017
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION	Note 1 – Business Description Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Our 136-year old banking subsidiary, Midland States Bank (the “Bank”), has branches across Illinois and in Missouri and Colorado, and provides a broad array of traditional community banking and other complementary financial services, including commercial lending, residential mortgage origination, wealth management, merchant services and prime consumer lending. We also originate and service government sponsored mortgages for multifamily and healthcare facilities through our subsidiary, Love Funding Corporation (“Love Funding”), based in Washington, D.C. and operate a commercial equipment leasing business on a nationwide basis through our subsidiary, Heartland Business Credit Corporation (“Business Credit”), based in Denver, Colorado. On June 9, 2017, we completed the acquisition of Centrue Financial Corporation (“Centrue”) and its banking subsidiary, Centrue Bank, as more fully described in Note 3 to the consolidated financial statements. Through the Centrue acquisition, we greatly expanded our commercial and retail banking presence in northern and central 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 earned on loans and leases 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 Federal Housing Administration (“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. Initial Public Offering On May 24, 2016, we completed our initial public offering and received gross proceeds of $67.0 million for the 3,044,252 shares of common stock sold by us in the offering. On June 6, 2016, we received additional gross proceeds of $12.0 million for the 545,813 shares of common stock sold when the underwriters fully exercised their option to purchase additional shares of common stock. After deducting underwriting discounts and offering expenses, we received total net proceeds of $71.5 million from the initial public offering.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2017. The consolidated financial statements have been prepared in accordance with the 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 the interim periods presented herein, have been included. Certain reclassifications of 2016 amounts have been made to conform to the 2017 presentation. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. 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 unaudited consolidated financial statements. The Company operates through its principal wholly owned banking subsidiary, Midland States Bank. The Bank operates through its branch banking offices and principal subsidiaries: Love Funding and Business Credit. Summary of Significant Accounting Policies 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. Impact of Recently Issued Accounting Standards FASB Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”; FASB ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”; FASB ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”; FASB ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”; FASB ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” – In May 2014, the Financial Accounting Standards Board (the “FASB”) amended existing guidance related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for us for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09. The Company has determined the result of applying ASU 2014-09 to the individual revenue streams affected, as well as on an aggregate basis, will not be material to the Company’s consolidated financial statements. The Company continues to evaluate the impact of the disclosure requirements associated with ASU 2014-09. 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. This update is effective for us on January 1, 2019, with early adoption permitted. We have not yet decided whether we will early adopt the new standard. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has developed a project plan for evaluating the provisions of the new lease standard, but has not yet determined the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the pending adoption of ASU 2016-02 and its impact on the Company’s consolidated financial statements. 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.” 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. We have formed a committee that is assessing our data and system needs and are evaluating the impact of adopting the new guidance. While the Company generally expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, the Company cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the potential impact on the Company’s consolidated financial statements. FASB ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” – In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which amends FASB Accounting Standards Codification (“ASC”) 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. For public business entities, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to early adopt the new guidance in the first quarter of 2017. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. FASB ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” – In March 2017, the FASB issued ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date, rather than contractual maturity date as currently required under GAAP. For public business entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to early adopt the new guidance in the first quarter of 2017. Adoption of the ASU did not have a material impact on the Company’s consolidated financial statements.

ACQUISITIONS

9 Months Ended

Sep. 30, 2017

ACQUISITIONS

ACQUISITIONS

Note 3 – Acquisitions

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. Through September 30, 2017, transaction and integration costs of $15.0 million associated with the acquisition have been expensed as incurred.

Under the acquisition method of accounting, the consideration paid is allocated to net tangible and intangible assets based on current estimated fair values on the date of acquisition. During the third quarter of 2017, the Company updated the preliminary valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which required a measurement period adjustment of $169,000 to increase goodwill. Based on management’s preliminary valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the consideration paid for the acquisition is allocated as follows (in thousands):


Assets acquired:
Cash and cash equivalents	$	42,461
Investment securities available for sale		149,013
Loans		681,870
Loans held for sale		531
Premises and equipment		17,147
Other real estate owned		4,759
Nonmarketable equity securities		8,168
Accrued interest receivable		2,376
Mortgage servicing rights		1,933
Intangible assets		11,070
Cash surrender value of life insurance policies		36,349
Deferred tax assets, net		33,461
Other assets		2,256
Total assets acquired		991,394
Liabilities assumed:
Deposits		739,867
Short-term borrowings		14,434
FHLB advances and other borrowings		95,332
Trust preferred debentures		7,565
Accrued interest payable		275
Other liabilities		3,429
Total liabilities assumed		860,902
Net assets acquired		130,492
Goodwill		46,087
Total consideration paid	$	176,579

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.

Goodwill of $46.1 million arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of 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 included the establishment of $11.1 million in core deposit intangibles, which are being amortized on an accelerated basis over an estimated useful life of eight years.

Acquired loan data for Centrue can be found in the table below (in thousands):


					Best Estimate at
					Acquisition Date of
	Fair Value		Gross Contractual		Contractual Cash
	of Acquired Loans		Amounts Receivable		Flows Not Expected
	at Acquisition Date		at Acquisition Date		to be Collected
Acquired receivables subject to ASC 310-30	$	13,352	$	20,719	$	5,256
Acquired receivables not subject to ASC 310-30		668,518		821,338		4,518

The following table provides the unaudited pro forma information for the results of operations for three and nine months ended September 30, 2017 and 2016, as if the acquisition had occurred on January 1, 2016 (in thousands, except per share data). The pro forma results combine the historical results of Centrue 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 and trust preferred securities premium accretion, net of taxes. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations had the acquisition actually occurred on January 1, 2016. No assumptions have been applied to the pro forma results of operations regarding revenue enhancements, expense efficiencies or asset dispositions. Only the acquisition related expenses that have been incurred as of September 30, 2017 are included in net income in the table below. Acquisition related expenses that were recognized and are included in the pro forma net income for the three and nine months ended September 30, 2017 totaled $7.3 million and $15.0 million, respectively, on a pre-tax basis.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Revenue (1)	$	52,168	$	52,139	$	156,851	$	152,532
Net income		2,036		8,850		15,299		23,490
Diluted earnings per common share	$	0.10	$	0.46	$	0.71	$	1.37

(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. (“CedarPoint”), 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.

Acquisition of Wealth Management Assets

On November 10, 2016, the Bank completed its acquisition of approximately $400.0 million in wealth management assets from Sterling National Bank of Yonkers, New York (“Sterling”) for approximately $5.2 million in cash. Intangible assets recognized as a result of the transaction consisted of approximately $2.3 million in goodwill and $2.3 million in customer relationship intangibles. The customer relationship intangibles are being amortized on a straight-line basis over 20 years.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

INVESTMENT SECURITIES AVAILABLE FOR SALE

9 Months Ended

Sep. 30, 2017

Available for sale

Schedule of Available-for-sale Securities [Line Items]

Investment securities

Note 4 – Investment Securities Available for Sale

Investment securities classified as available for sale as of September 30, 2017 and December 31, 2016 are as follows (in thousands):


	September 30, 2017
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
U.S. Treasury securities	$	47,979	$	—	$	72	$	47,907
Government sponsored entity debt securities		19,290		104		5		19,389
Agency mortgage-backed securities		229,382		1,103		631		229,854
State and municipal securities		39,385		376		45		39,716
Corporate securities		56,404		1,070		167		57,307
Equity securities		2,705		115		8		2,812
Total	$	395,145	$	2,768	$	928	$	396,985


	December 31, 2016
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
U.S. Treasury securities	$	75,973	$	—	$	72	$	75,901
Government sponsored entity debt securities		7,653		57		22		7,688
Agency mortgage-backed securities		90,629		373		932		90,070
Non-agency mortgage-backed securities		1		—		—		1
State and municipal securities		25,826		15		567		25,274
Corporate securities		47,443		403		441		47,405
Total	$	247,525	$	848	$	2,034	$	246,339

Unrealized losses and fair values for investment securities available for sale as of September 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows (in thousands):


	September 30, 2017
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		loss		value		loss		value		loss
U.S. Treasury securities	$	42,936	$	47	$	4,971	$	25	$	47,907	$	72
Government sponsored entity debt securities		6,467		5		—		—		6,467		5
Agency mortgage-backed securities		50,978		370		10,569		261		61,547		631
State and municipal securities		4,609		14		2,569		31		7,178		45
Corporate securities		4,957		52		5,412		115		10,369		167
Equity securities		2,606		8		—		—		2,606		8
Total	$	112,553	$	496	$	23,521	$	432	$	136,074	$	928


	December 31, 2016
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		loss		value		loss		value		loss
U.S. Treasury securities	$	75,901	$	72	$	—	$	—	$	75,901	$	72
Government sponsored entity debt securities		4,107		22		—		—		4,107		22
Agency mortgage-backed securities		57,882		930		402		2		58,284		932
State and municipal securities		20,215		567		—		—		20,215		567
Corporate securities		11,111		334		8,312		107		19,423		441
Total	$	169,216	$	1,925	$	8,714	$	109	$	177,930	$	2,034

For all of the above investment securities, the unrealized losses are generally due to changes in interest rates and continued financial market stress, and unrealized losses are considered to be temporary.

We evaluate securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, at a minimum, and more frequently when economic or market concerns warrant such evaluation. In estimating 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.

At September 30, 2017, 63 investment securities available for sale had unrealized losses with aggregate depreciation of 0.68% 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 September 30, 2017.

For the three and nine months ended September 30, 2017, there was no OTTI recognized on investment securities available for sale. During the three and nine months ended September 30, 2016, the Company recognized $0 and $824,000, respectively, of OTTI on its investment securities available for sale.

The amortized cost and fair value of the available-for-sale investment securities as of September 30, 2017 are shown by expected maturity in the following table (in thousands). Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	cost		value
Debt securities:
Within one year	$	37,340	$	37,307
After one year through five years		235,754		236,319
After five years through ten years		102,922		104,113
After ten years		16,424		16,434
Equity securities		2,705		2,812
Total	$	395,145	$	396,985

Proceeds from the sale of securities available for sale were $2.7 million and $11.3 million for the three and nine months ended September 30, 2017, respectively. Gross realized gains from the sale of securities available for sale were $98,000 and $219,000 for the three and nine months ended September 30, 2017, respectively. There were no gross realized losses for the three and nine months ended September 30, 2017.

Proceeds from the sale of securities available for sale were $865,000 and $31.2 million for the three and nine months ended September 30, 2016, respectively. Gross realized gains from the sale of securities available for sale were $39,000 and $315,000 for the three and nine months ended September 30, 2016, respectively. There were no gross realized losses for the three and nine months ended September 30, 2016.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

INVESTMENT SECURITIES HELD TO MATURITY

9 Months Ended

Sep. 30, 2017

Held to maturity

Schedule of Held-to-maturity Securities [Line Items]

Investment securities

Note 5 – Investment Securities Held to Maturity

Investment securities classified as held to maturity as of September 30, 2017 and December 31, 2016 are as follows (in thousands):


	September 30, 2017
			Gross		Gross
	Amortized		unrecognized		unrecognized		Fair
	cost		gains		losses		value
State and municipal securities	$	70,867	$	4,381	$	106	$	75,142


	December 31, 2016
			Gross		Gross
	Amortized		unrecognized		unrecognized		Fair
	cost		gains		losses		value
State and municipal securities	$	78,672	$	3,517	$	237	$	81,952

Unrecognized losses and fair value for investment securities held to maturity as of September 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrecognized loss position, are summarized as follows (in thousands):


	September 30, 2017
	Less than 12 Months				12 Months or more				Total
	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
	value		loss		value		loss		value		loss
State and municipal securities	$	3,343	$	32	$	3,490	$	74	$	6,833	$	106


	December 31, 2016
	Less than 12 Months				12 Months or more				Total
	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
	value		loss		value		loss		value		loss
State and municipal securities	$	13,991	$	140	$	2,699	$	97	$	16,690	$	237

For all of the above investment securities, the unrecognized losses are generally due to changes in interest rates and continued financial market stress and unrecognized losses are considered to be temporary.

We evaluate securities for OTTI on a quarterly basis, at a minimum, and more frequently when economic or market concerns warrant such evaluation. In estimating 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.

At September 30, 2017, 27 investment securities held to maturity had unrecognized losses with aggregate depreciation of 1.53% from their amortized cost basis. The unrecognized losses relate principally to the fluctuations in the current interest rate environment. In analyzing an issuer’s financial condition, we consider who issued the securities 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 unrecognized loss position; therefore, the Company does not consider these securities to be other than temporarily impaired at September 30, 2017.

The amortized cost and fair value of investment securities held to maturity as of September 30, 2017, by contractual maturity, are as follows (in thousands):


	Amortized		Fair
	cost		value
Within one year	$	871	$	877
After one year through five years		19,055		19,709
After five years through ten years		35,164		38,478
After ten years		15,777		16,078
Total	$	70,867	$	75,142

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

LOANS

9 Months Ended

Sep. 30, 2017

LOANS

LOANS

Note 6 – Loans

The following table presents total loans outstanding by portfolio, which includes non-purchased credit impaired (“Non-PCI”) loans and purchased credit impaired (“PCI”) loans, as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017						December 31, 2016
	Non-PCI		PCI				Non-PCI		PCI
	Loans		Loans (1)		Total		Loans		Loans (1)		Total
Loans:
Commercial	$	510,457	$	3,087	$	513,544	$	454,310	$	3,517	$	457,827
Commercial real estate		1,456,620		15,664		1,472,284		963,895		5,720		969,615
Construction and land development		181,763		750		182,513		165,175		12,150		177,325
Total commercial loans		2,148,840		19,501		2,168,341		1,583,380		21,387		1,604,767
Residential real estate		438,973		6,774		445,747		247,156		6,557		253,713
Consumer		342,863		175		343,038		269,705		312		270,017
Lease financing		200,846		—		200,846		191,479		—		191,479
Total loans	$	3,131,522	$	26,450	$	3,157,972	$	2,291,720	$	28,256	$	2,319,976

(1)

The unpaid principal balance for PCI loans totaled $38.9 million and $34.6 million as of September 30, 2017 and December 31, 2016, respectively.

Total loans include net deferred loan fees of $11.4 million and $3.1 million at September 30, 2017 and December 31, 2016, respectively, and unearned discounts of $20.7 million within the lease financing portfolio at both September 30, 2017 and December 31, 2016.

At September 30, 2017 and December 31, 2016, the Company had commercial and residential loans held for sale totaling $35.9 million and $70.6 million, respectively. During the three and nine months ended September 30, 2017, the Company sold commercial and residential real estate loans with proceeds totaling $206.2 million and $679.2 million, respectively, and sold commercial and residential real estate loans with proceeds totaling $450.9 million and $907.3 million for the comparable periods in 2016, 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 predominantly 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 commercial real estate 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 and acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers.

Lease financing—Indirect financing leases to small businesses for purchases of business equipment. All indirect financing leases require monthly payments, and the weighted average maturity of our leases is less than four years.

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 at both September 30, 2017 and December 31, 2016. During the three and nine months ended September 30, 2017, there were $982,000 and $4.0 million, respectively, of new loans and other additions, while repayments and other reductions totaled $948,000 and $4.0 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, based in Denver, 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.

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 in the commercial loan portfolio are small loans that are monitored by aging status and payment activity.

The following table presents the recorded investment of the commercial loan portfolio (excluding PCI loans) by risk category as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017								December 31, 2016
			Commercial		Construction						Commercial		Construction
			Real		and Land						Real		and Land
	Commercial		Estate		Development		Total		Commercial		Estate		Development		Total
Acceptable credit quality	$	474,513	$	1,408,398	$	174,115	$	2,057,026	$	426,560	$	925,244	$	159,702	$	1,511,506
Special mention		16,543		9,121		—		25,664		10,930		8,735		—		19,665
Substandard		17,695		13,639		—		31,334		12,649		21,178		450		34,277
Substandard – nonaccrual		1,469		21,454		—		22,923		3,559		7,145		21		10,725
Doubtful		—		—		—		—		—		—		—		—
Not graded		237		4,008		7,648		11,893		612		1,593		5,002		7,207
Total (excluding PCI)	$	510,457	$	1,456,620	$	181,763	$	2,148,840	$	454,310	$	963,895	$	165,175	$	1,583,380

The Company evaluates the credit quality of its other loan portfolio 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 loan portfolio (excluding PCI loans) based on the credit risk profile of loans that are performing and loans that are impaired as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017								December 31, 2016
	Residential				Lease				Residential				Lease
	Real Estate		Consumer		Financing		Total		Real Estate		Consumer		Financing		Total
Performing	$	433,653	$	342,586	$	199,784	$	976,023	$	242,127	$	269,492	$	190,148	$	701,767
Impaired		5,320		277		1,062		6,659		5,029		213		1,331		6,573
Total (excluding PCI)	$	438,973	$	342,863	$	200,846	$	982,682	$	247,156	$	269,705	$	191,479	$	708,340

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 September 30, 2017 and December 31, 2016 do not include $26.5 million and $28.3 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 September 30, 2017 and December 31, 2016 is as follows (in thousands):


	September 30,		December 31,
	2017		2016
Nonaccrual loans:
Commercial	$	1,469	$	3,559
Commercial real estate		21,454		7,145
Construction and land development		—		21
Residential real estate		4,355		4,629
Consumer		273		187
Lease financing		1,062		1,330
Total nonaccrual loans		28,613		16,871
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial		2,212		2,378
Commercial real estate		—		—
Construction and land development		45		—
Residential real estate		193		—
Consumer		4		26
Lease financing		—		1
Total accruing loans contractually past due 90 days or more as to interest or principal payments		2,454		2,405
Loans modified under troubled debt restructurings and still accruing:
Commercial		319		611
Commercial real estate		1,214		11,253
Construction and land development		59		63
Residential real estate		772		400
Consumer		—		—
Lease financing		—		—
Total loans modified under troubled debt restructurings and still accruing		2,364		12,327
Total impaired loans (excluding PCI)	$	33,431	$	31,603

There was no interest income recognized on nonaccrual loans during the three and nine months ended September 30, 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 $124,000 and $532,000 for the three and nine months ended September 30, 2017, respectively, and $243,000 and $484,000 for the three and nine months ended September 30, 2016, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $40,000 and $59,000 for the three and nine months ended September 30, 2017, respectively, and $90,000 and $196,000 for the comparable periods in 2016, respectively.

The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017						December 31, 2016
			Unpaid		Related				Unpaid		Related
	Recorded		Principal		Valuation		Recorded		Principal		Valuation
	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans with a valuation allowance:
Commercial	$	3,047	$	3,111	$	500	$	3,877	$	3,888	$	882
Commercial real estate		16,454		17,540		3,570		2,142		2,331		309
Construction and land development		104		104		10		84		84		8
Residential real estate		3,056		3,634		490		3,735		4,404		604
Consumer		277		289		31		213		190		23
Lease financing		757		757		186		1,331		1,331		356
Total impaired loans with a valuation allowance		23,695		25,435		4,787		11,382		12,228		2,182
Impaired loans with no related valuation allowance:
Commercial		953		5,874		—		2,671		7,567		—
Commercial real estate		6,214		8,291		—		16,256		17,058		—
Construction and land development		—		813		—		—		—		—
Residential real estate		2,264		2,500		—		1,294		1,462		—
Consumer		—		—		—		—		26		—
Lease financing		305		305		—		—		—		—
Total impaired loans with no related valuation allowance		9,736		17,783		—		20,221		26,113		—
Total impaired loans:
Commercial		4,000		8,985		500		6,548		11,455		882
Commercial real estate		22,668		25,831		3,570		18,398		19,389		309
Construction and land development		104		917		10		84		84		8
Residential real estate		5,320		6,134		490		5,029		5,866		604
Consumer		277		289		31		213		216		23
Lease financing		1,062		1,062		186		1,331		1,331		356
Total impaired loans (excluding PCI)	$	33,431	$	43,218	$	4,787	$	31,603	$	38,341	$	2,182

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 on loans was $9.8 million and $6.7 million at September 30, 2017 and December 31, 2016, respectively.

The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the three months ended September 30, 2017 and 2016 are included in the table below (in thousands):


	Three Months Ended September 30,
	2017				2016
			Interest Income				Interest Income
	Average		Recognized		Average		Recognized
	Recorded		While on		Recorded		While on
	Investment		Impaired Status		Investment		Impaired Status
Impaired loans with a valuation allowance:
Commercial	$	3,054	$	6	$	6,426	$	23
Commercial real estate		16,243		34		2,170		65
Construction and land development		104		2		65		3
Residential real estate		3,090		9		3,157		13
Consumer		289		—		115		—
Lease financing		757		—		727		—
Total impaired loans with a valuation allowance		23,537		51		12,660		104
Impaired loans with no related valuation allowance:
Commercial		2,912		—		439		2
Commercial real estate		6,238		—		15,610		—
Construction and land development		—		—		—		—
Residential real estate		2,276		2		1,341		1
Consumer		—		—		91		—
Lease financing		305		—		—		—
Total impaired loans with no related valuation allowance		11,731		2		17,481		3
Total impaired loans:
Commercial		5,966		6		6,865		25
Commercial real estate		22,481		34		17,780		65
Construction and land development		104		2		65		3
Residential real estate		5,366		11		4,498		14
Consumer		289		—		206		—
Lease financing		1,062		—		727		—
Total impaired loans (excluding PCI)	$	35,268	$	53	$	30,141	$	107

The average balance of impaired loans (excluding PCI loans) and interest income recognized on impaired loans during the nine months ended September 30, 2017 and 2016 are included in the table below (in thousands):


	Nine Months Ended September 30,
	2017				2016
			Interest Income				Interest Income
	Average		Recognized		Average		Recognized
	Recorded		While on		Recorded		While on
	Investment		Impaired Status		Investment		Impaired Status
Impaired loans with a valuation allowance:
Commercial	$	3,068	$	8	$	8,115	$	24
Commercial real estate		16,808		51		2,273		115
Construction and land development		106		3		66		6
Residential real estate		3,032		12		3,234		24
Consumer		311		—		118		—
Lease financing		757		—		727		—
Total impaired loans with a valuation allowance		24,082		74		14,533		169
Impaired loans with no related valuation allowance:
Commercial		3,199		—		313		1
Commercial real estate		6,332		—		15,742		56
Construction and land development		—		—		—		—
Residential real estate		2,174		3		1,364		3
Consumer		—		—		91		—
Lease financing		305		—		—		—
Total impaired loans with no related valuation allowance		12,010		3		17,510		60
Total impaired loans:
Commercial		6,267		8		8,428		25
Commercial real estate		23,140		51		18,015		171
Construction and land development		106		3		66		6
Residential real estate		5,206		15		4,598		27
Consumer		311		—		209		—
Lease financing		1,062		—		727		—
Total impaired loans (excluding PCI)	$	36,092	$	77	$	32,043	$	229

The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of September 30, 2017 (in thousands):


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	3,395	$	2,161	$	2,212	$	1,469	$	9,237	$	501,220	$	510,457
Commercial real estate		364		1,044		—		21,454		22,862		1,433,758		1,456,620
Construction and land development		115		67		45		—		227		181,536		181,763
Residential real estate		2,271		228		193		4,355		7,047		431,926		438,973
Consumer		2,055		1,228		4		273		3,560		339,303		342,863
Lease financing		598		—		—		1,062		1,660		199,186		200,846
Total (excluding PCI)	$	8,798	$	4,728	$	2,454	$	28,613	$	44,593	$	3,086,929	$	3,131,522

The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2016 (in thousands):


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	3,326	$	138	$	2,378	$	3,559	$	9,401	$	444,909	$	454,310
Commercial real estate		648		787		—		7,145		8,580		955,315		963,895
Construction and land development		—		—		—		21		21		165,154		165,175
Residential real estate		3,472		13		—		4,629		8,114		239,042		247,156
Consumer		1,701		588		26		187		2,502		267,203		269,705
Lease financing		94		—		1		1,330		1,425		190,054		191,479
Total (excluding PCI)	$	9,241	$	1,526	$	2,405	$	16,871	$	30,043	$	2,261,677	$	2,291,720

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 $2.4 million and $203,000 as of September 30, 2017 and December 31, 2016, respectively. The Company had no unfunded commitments in connection with TDRs at September 30, 2017 and December 31, 2016.

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 September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017						December 31, 2016
	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	319	$	—	$	319	$	611	$	—	$	611
Commercial real estate		1,214		14,812		16,026		11,253		5,098		16,351
Construction and land development		59		—		59		63		—		63
Residential real estate		772		614		1,386		400		527		927
Consumer		—		—		—		—		—		—
Lease financing		—		—		—		—		—		—
Total loans (excluding PCI)	$	2,364	$	15,426	$	17,790	$	12,327	$	5,625	$	17,952

(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 three and nine months ended September 30, 2017 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2017 (dollars in thousands):


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
For the Three Months Ended September 30, 2017:
Troubled debt restructurings:
Number of loans		—		—		—		1		—		—		1
Pre-modification outstanding balance	$	—	$	—	$	—	$	91	$	—	$	—	$	91
Post-modification outstanding balance		—		—		—		90		—		—		90

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

For the Nine Months Ended September 30, 2017:
Troubled debt restructurings:
Number of loans		1		—		—		3		—		—		4
Pre-modification outstanding balance	$	362	$	—	$	—	$	475	$	—	$	—	$	837
Post-modification outstanding balance		339		—		—		474		—		—		813

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 three and nine months ended September 30, 2016 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2016 (dollars in thousands):


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
For the Three Months Ended September 30, 2016:
Troubled debt restructurings:
Number of loans		—		2		—		—		—		—		2
Pre-modification outstanding balance	$	—	$	10,207	$	—	$	—	$	—	$	—	$	10,207
Post-modification outstanding balance		—		10,207		—		—		—		—		10,207

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

For the Nine Months Ended September 30, 2016:
Troubled debt restructurings:
Number of loans		3		2		—		—		—		—		5
Pre-modification outstanding balance	$	685	$	10,207	$	—	$	—	$	—	$	—	$	10,892
Post-modification outstanding balance		647		10,207		—		—		—		—		10,854

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

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 $1.1 million and $4.3 million during the three and nine months ended September 30, 2017, respectively, and $1.8 million and $7.1 million during the three and nine months ended September 30, 2016, respectively.

Accretable yield of PCI loans, or income expected to be collected, is as follows (in thousands):


	Nine Months Ended
	September 30,
	2017		2016
Balance, beginning of period	$	9,035	$	10,526
New loans purchased – Centrue acquisition		2,111		—
Accretion		(4,276)		(7,066)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)		(1,558)		(96)
Reclassification from non-accretable		1,519		4,302
Balance, end of period	$	6,831	$	7,666

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 indirect financing leases are primarily for business equipment leased to varying types of small businesses. 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 three and nine months ended September 30, 2017 and 2016 are as follows (in thousands):


	Three Months Ended September 30,
	2017						2016
	Non-PCI		PCI				Non-PCI		PCI
	Loans		Loans		Total		Loans		Loans		Total
Balance, beginning of period	$	14,037	$	1,387	$	15,424	$	13,629	$	1,123	$	14,752
Provision for loan losses		1,435		54		1,489		1,156		236		1,392
Loan charge-offs		(335)		—		(335)		(806)		(58)		(864)
Loan recoveries		278		5		283		250		29		279
Net loan (charge-offs) recoveries		(57)		5		(52)		(556)		(29)		(585)
Balance, end of period	$	15,415	$	1,446	$	16,861	$	14,229	$	1,330	$	15,559


	Nine Months Ended September 30,
	2017						2016
	Non-PCI		PCI				Non-PCI		PCI
	Loans		Loans		Total		Loans		Loans		Total
Balance, beginning of period	$	13,744	$	1,118	$	14,862	$	14,093	$	1,895	$	15,988
Provision for loan losses		3,260		220		3,480		3,752		(606)		3,146
Loan charge-offs		(2,856)		—		(2,856)		(4,228)		(58)		(4,286)
Loan recoveries		1,267		108		1,375		612		99		711
Net loan (charge-offs) recoveries		(1,589)		108		(1,481)		(3,616)		41		(3,575)
Balance, end of period	$	15,415	$	1,446	$	16,861	$	14,229	$	1,330	$	15,559

The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016 (in thousands):


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for loan losses for the three months ended September 30, 2017:
Beginning balance	$	5,381	$	3,996	$	147	$	3,377	$	1,385	$	1,138	$	15,424
Provision for loan losses		(745)		2,715		55		(433)		(92)		(11)		1,489
Charge-offs		—		—		—		(128)		(105)		(102)		(335)
Recoveries		54		56		13		47		81		32		283
Ending balance	$	4,690	$	6,767	$	215	$	2,863	$	1,269	$	1,057	$	16,861

Changes in allowance for loan losses for the three months ended September 30, 2016:
Beginning balance	$	6,186	$	3,511	$	569	$	2,584	$	827	$	1,075	$	14,752
Provision for loan losses		1,216		(12)		(271)		220		326		(87)		1,392
Charge-offs		(251)		(214)		(1)		(153)		(91)		(154)		(864)
Recoveries		36		129		13		32		20		49		279
Ending balance	$	7,187	$	3,414	$	310	$	2,683	$	1,082	$	883	$	15,559

Changes in allowance for loan losses for the nine months ended September 30, 2017:
Beginning balance	$	5,920	$	3,225	$	345	$	2,929	$	930	$	1,513	$	14,862
Provision for loan losses		(630)		3,577		(178)		113		678		(80)		3,480
Charge-offs		(737)		(470)		—		(455)		(536)		(658)		(2,856)
Recoveries		137		435		48		276		197		282		1,375
Ending balance	$	4,690	$	6,767	$	215	$	2,863	$	1,269	$	1,057	$	16,861

Changes in allowance for loan losses for the nine months ended September 30, 2016:
Beginning balance	$	6,917	$	5,179	$	435	$	2,120	$	749	$	588	$	15,988
Provision for loan losses		2,619		(1,520)		(154)		886		479		836		3,146
Charge-offs		(2,513)		(461)		(1)		(454)		(225)		(632)		(4,286)
Recoveries		164		216		30		131		79		91		711
Ending balance	$	7,187	$	3,414	$	310	$	2,683	$	1,082	$	883	$	15,559

The following table represents, by loan portfolio, details regarding the balance in the allowance for loan losses and the recorded investment in loans as of September 30, 2017 and December 31, 2016 by impairment evaluation method (in thousands):


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
September 30, 2017:

Allowance for loan losses:
Loans individually evaluated for impairment	$	212	$	3,549	$	5	$	248	$	—	$	115	$	4,129
Loans collectively evaluated for impairment		288		21		5		242		31		71		658
Non-impaired loans collectively evaluated for impairment		3,702		2,872		204		1,893		1,086		871		10,628
Loans acquired with deteriorated credit quality (1)		488		325		1		480		152		—		1,446
Total allowance for loan losses	$	4,690	$	6,767	$	215	$	2,863	$	1,269	$	1,057	$	16,861
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment	$	1,384	$	22,482	$	59	$	3,124	$	—	$	420	$	27,469
Impaired loans collectively evaluated for impairment		2,616		186		45		2,196		277		642		5,962
Non-impaired loans collectively evaluated for impairment		506,457		1,433,952		181,659		433,653		342,586		199,784		3,098,091
Loans acquired with deteriorated credit quality (1)		3,087		15,664		750		6,774		175		—		26,450
Total recorded investment (loan balance)	$	513,544	$	1,472,284	$	182,513	$	445,747	$	343,038	$	200,846	$	3,157,972

December 31, 2016:

Allowance for loan losses:
Loans individually evaluated for impairment	$	878	$	296	$	6	$	379	$	—	$	285	$	1,844
Loans collectively evaluated for impairment		4		13		2		225		23		71		338
Non-impaired loans collectively evaluated for impairment		4,539		2,684		337		1,968		877		1,157		11,562
Loans acquired with deteriorated credit quality (1)		499		232		—		357		30		—		1,118
Total allowance for loan losses	$	5,920	$	3,225	$	345	$	2,929	$	930	$	1,513	$	14,862
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment	$	6,504	$	18,275	$	63	$	2,920	$	—	$	670	$	28,432
Impaired loans collectively evaluated for impairment		44		123		21		2,109		213		661		3,171
Non-impaired loans collectively evaluated for impairment		447,762		945,497		165,091		242,127		269,492		190,148		2,260,117
Loans acquired with deteriorated credit quality (1)		3,517		5,720		12,150		6,557		312		—		28,256
Total recorded investment (loan balance)	$	457,827	$	969,615	$	177,325	$	253,713	$	270,017	$	191,479	$	2,319,976

(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.

MORTGAGE SERVICING RIGHTS

9 Months Ended

Sep. 30, 2017

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS

Note 7 – Mortgage Servicing Rights

At September 30, 2017 and December 31, 2016, the Company serviced mortgage loans for others totaling $5.95 billion and $5.64 billion, respectively. A summary of mortgage loans serviced for others as of September 30, 2017 and December 31, 2016 is as follows (in thousands):


	September 30,		December 31,
	2017		2016
Commercial FHA mortgage loans	$	3,895,455	$	3,811,066
Residential mortgage loans		2,053,933		1,833,443
Total loans serviced for others	$	5,949,388	$	5,644,509

Changes in our mortgage servicing rights were as follows for the three and nine months ended September 30, 2017 and 2016 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Mortgage servicing rights:
Balance, beginning of period	$	75,705	$	68,395	$	71,710	$	67,218
Servicing rights acquired – residential mortgage loans		—		—		1,933		—
Servicing rights transferred to held for sale - residential mortgage loans		(16,229)		—		(16,229)		—
Servicing rights capitalized – commercial FHA mortgage loans		1,432		3,506		5,020		5,777
Servicing rights capitalized – residential mortgage loans		435		1,125		1,656		2,764
Amortization – commercial FHA mortgage loans		(650)		(592)		(1,928)		(1,741)
Amortization – residential mortgage loans		(857)		(1,085)		(2,326)		(2,669)
Balance, end of period		59,836		71,349		59,836		71,349
Valuation allowances:
Balance, beginning of period		5,428		5,587		3,702		567
Additions		104		1,073		1,942		6,301
Reductions		—		—		(112)		(208)
Servicing rights transferred to held for sale - residential mortgage loans		(1,995)		—		(1,995)		—
Balance, end of period		3,537		6,660		3,537		6,660
Mortgage servicing rights, net	$	56,299	$	64,689	$	56,299	$	64,689
Fair value:
At beginning of period	$	70,277	$	62,960	$	68,008	$	66,700
At end of period	$	56,299	$	64,689	$	56,299	$	64,689

During the third quarter of 2017, the Company transferred $14.2 million of residential mortgage servicing rights, net of valuation allowance, to mortgage servicing rights held for sale. The Company has committed to a plan to sell certain residential mortgage servicing rights and has the ability to sell them to a buyer in their present condition. During the three and nine months ended September 30, 2017, the Company recognized a $3.6 million loss on mortgage servicing rights held for sale to reflect them at the lower of their carrying value or fair value less estimated costs to sell. As a result of recognizing this loss, mortgage servicing rights held for sale had a net carrying value of $10.6 million at September 30, 2017.

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 and residential portfolios, used in the valuation of servicing rights at September 30, 2017 and December 31, 2016. 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 portfolios. 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
September 30, 2017:
Commercial FHA mortgage loans	0.13	%	3.67	%	30.3	8.25	%	$	1,000	10 - 12	%
Residential mortgage loans	0.26	%	3.93	%	22.6	11.52	%	$	67	9 - 11	%

December 31, 2016:
Commercial FHA mortgage loans	0.13	%	3.72	%	30.2	8.31	%	$	1,000	10 - 13	%
Residential mortgage loans	0.26	%	3.89	%	24.2	9.72	%	$	60	9 - 11	%

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, cost to service, contractual servicing fee income, ancillary income, late fees, replacement reserves and other economic factors that are determined based on current market conditions.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References + Details

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Note 8 – Goodwill and Intangible Assets

At September 30, 2017 and December 31, 2016, goodwill totaled $97.4 million and $48.8 million, respectively. Goodwill increased $46.1 million as a result of the acquisition of Centrue on June 9, 2017 and $2.4 million as a result of the acquisition of CedarPoint on March 28, 2017, as further discussed in Note 3 to the consolidated financial statements.

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of September 30, 2017 and December 31, 2016 are summarized as follows (in thousands):


	September 30, 2017						December 31, 2016
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
	Amount		Amortization		Total		Amount		Amortization		Total
Core deposit intangibles	$	31,612	$	(17,998)	$	13,614	$	20,542	$	(16,181)	$	4,361
Customer relationship intangibles		7,471		(3,119)		4,352		5,471		(2,645)		2,826
Total intangible assets	$	39,083	$	(21,117)	$	17,966	$	26,013	$	(18,826)	$	7,187

In conjunction with the acquisition of Centrue on June 9, 2017, we recorded $11.1 million of core deposit intangibles, which are being amortized on an accelerated basis over an estimated useful life of eight years, as further discussed in Note 3 to the consolidated financial statements.

In conjunction with the acquisition of CedarPoint on March 28, 2017, we recorded $2.0 million of customer relationship intangibles, which are being amortized on a straight-line basis over 12 years, as further discussed in Note 3 to the consolidated financial statements.

Amortization of intangible assets was $1.2 million and $2.3 million for the three and nine months ended September 30, 2017, respectively, and $514,000 and $1.6 million for the comparable periods in 2016, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

DERIVATIVE INSTRUMENTS

9 Months Ended

Sep. 30, 2017

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 and forward commitments to sell mortgage-backed securities.

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

Derivative instruments issued by the Company consist of interest rate lock commitments to originate fixed-rate loans to be sold. Commitments to originate fixed-rate loans consist of commercial and residential real estate loans. 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 or other liabilities 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 table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount, estimated fair values and the location in which the derivative instruments are reported in the consolidated balances sheets at September 30, 2017 and December 31, 2016 (in thousands):


	Notional Amount				Fair Value Gain
	September 30,		December 31,		September 30,		December 31,
	2017		2016		2017		2016
Derivative Instruments (included in Other Assets):
Interest rate lock commitments	$	337,280	$	264,359	$	6,421	$	6,253
Forward commitments to sell mortgage-backed securities		349,945		301,788		5		125
Total	$	687,225	$	566,147	$	6,426	$	6,378

Net losses of $1.1 million and net gains of $48,000 were recognized on derivative instruments for the three and nine months ended September 30, 2017, respectively. Net losses of $5.2 million and net gains of $527,000 were recognized on derivative instruments for the three and nine months ended September 30, 2016, respectively. Net gains and 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 derivative instruments related to 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 $10.1 million at September 30, 2017. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $121,000 at September 30, 2017, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 30
-Section 45
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-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1A
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

DEPOSITS

9 Months Ended

Sep. 30, 2017

Deposits [Abstract]

DEPOSITS

Note 10 – Deposits

The following table summarizes the classification of deposits as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
Noninterest-bearing demand	$	674,118	$	562,333
Interest-bearing:
Checking		800,649		656,248
Money market		633,844		399,851
Savings		278,977		166,910
Time		726,879		619,024
Total deposits	$	3,114,467	$	2,404,366

SHORT-TERM BORROWINGS

9 Months Ended

Sep. 30, 2017

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 as of and for the nine months ended September 30, 2017 and as of and for the year ended December 31, 2016 (in thousands):


	Repurchase Agreements
	September 30,			December 31,
	2017			2016
Outstanding at period-end	$	153,443		$	131,557
Average amount outstanding		157,388			130,228
Maximum amount outstanding at any month end		183,327			168,369
Weighted average interest rate:
During period		0.22	%		0.23	%
End of period		0.23	%		0.21	%

At September 30, 2017, the Company had federal funds lines of credit totaling $55.0 million. The lines of credit were unused at September 30, 2017.

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 $185.7 million and $140.0 million at September 30, 2017 and December 31, 2016, respectively, were pledged for securities sold under agreements to repurchase.

The Company had lines of credit of $23.2 million and $35.1 million at September 30, 2017 and December 31, 2016, 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 $31.5 million and $43.3 million at September 30, 2017 and December 31, 2016, respectively. There were no outstanding borrowings at September 30, 2017 and December 31, 2016.

FHLB ADVANCES AND OTHER BORROWINGS

9 Months Ended

Sep. 30, 2017

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

Note 12 – FHLB Advances and Other Borrowings

The following table summarizes our Federal Home Loan Bank (“FHLB”) advances and other borrowings as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
Midland States Bancorp, Inc.
Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 3.50% at September 30, 2017 – maturing through May 25, 2020	$	38,539	$	—
Series G redeemable preferred stock - 181 shares at $1,000 per share		181		—
Midland States Bank
FHLB advances – fixed rate, fixed term of $176.0 million and $112.5 million, at rates averaging 1.28% and 1.00% at September 30, 2017 and December 31, 2016, respectively – maturing through June 2021, and putable fixed rate of $235.0 million and $125.0 million at rates averaging 1.10% and 0.79% at September 30, 2017 and December 31, 2016, respectively, – maturing through August 2023 with call provisions through June 2019		411,144		237,500
FHLB advances – variable rate, fixed term, at rates averaging 0.85% at September 30, 2017 – maturing through March 2018		39,000		—
Other		6		18
Total FHLB advances and other borrowings	$	488,870	$	237,518

On May 25, 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 revolving line of credit matures on May 24, 2018 and pays a variable rate of interest equal to one-month LIBOR plus 2.00%. There were no advances made on the line of credit as of September 30, 2017. The term loan matures on May 25, 2020 and pays a variable rate of interest equal to one-month LIBOR plus 2.25%. 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 September 30, 2017, the Company was in compliance with each of these financial covenants.

In conjunction with the acquisition of Centrue on June 9, 2017, as further discussed in Note 3 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 Bank’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 $1.63 billion and $1.18 billion at September 30, 2017 and December 31, 2016, respectively.

SUBORDINATED DEBT

9 Months Ended

Sep. 30, 2017

SUBORDINATED DEBT

SUBORDINATED DEBT

Note 13 – Subordinated Debt

The following table summarizes the Company’s subordinated debt as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
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	$	39,783	$	39,729
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $15,000 maturing June 18, 2025		14,798		14,779
Total subordinated debt	$	54,581	$	54,508

TRUST PREFERRED DEBENTURES

9 Months Ended

Sep. 30, 2017

TRUST PREFERRED DEBENTURES.

TRUST PREFERRED DEBENTURES

Note 14 – Trust Preferred Debentures

The following table summarizes the Company’s trust preferred debentures as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 4.16% and 3.74%, at September 30, 2017 and December 31, 2016, respectively – $3,000 maturing January 23, 2034	$	2,043	$	1,996
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 4.06% and 3.63% at September 30, 2017 and December 31, 2016, respectively – $10,000 maturing April 23, 2034		9,959		9,957
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 3.07% and 2.71% at September 30, 2017 and December 31, 2016, respectively – $20,000 maturing December 31, 2036		13,253		13,141
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 2.79% and 2.42% at September 30, 2017 and December 31, 2016, respectively – $20,000 maturing September 6, 2037		12,425		12,311
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 3.97% at September 30, 2017 - $10,000 maturing June 17, 2034		7,587		—
Total trust preferred debentures	$	45,267	$	37,405

In conjunction with the acquisition of Centrue on June 9, 2017, as further discussed in Note 3 to the consolidated financial statements, the Company assumed $10.0 million of subordinated debentures that were recorded at 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.

PREFERRED STOCK	9 Months Ended
PREFERRED STOCK	Sep. 30, 2017
Preferred Stock
PREFERRED STOCK	Note 15 – Preferred Stock Series G Preferred Stock In conjunction with the acquisition of Centrue on June 9, 2017, as previously discussed in Note 3 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 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

9 Months Ended

Sep. 30, 2017

Earnings Per Share

EARNINGS PER SHARE

Note 16 – 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 using the treasury stock method (outstanding stock options and unvested restricted stock) and common stock warrants. Presented below are the calculations for basic and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Net income	$	2,036	$	8,051	$	14,065	$	19,959
Preferred stock dividends		(83)		—		(102)
Amortization of preferred stock premium		56		—		56		—
Net income available to common equity		2,009		8,051		14,019		19,959
Common shareholder dividends		(3,818)		(2,773)		(10,100)		(7,022)
Unvested restricted stock award dividends		(19)		(12)		(59)		(35)
Undistributed earnings to unvested restricted stock awards		—		(26)		(21)		(69)
Undistributed earnings to common shareholders	$	(1,828)	$	5,240	$	3,839	$	12,833
Basic
Distributed earnings to common shareholders	$	3,818	$	2,773	$	10,100	$	7,022
Undistributed earnings to common shareholders		(1,828)		5,240		3,839		12,833
Total common shareholders earnings, basic	$	1,990	$	8,013	$	13,939	$	19,855
Diluted
Distributed earnings to common shareholders	$	3,818	$	2,773	$	10,100	$	7,022
Undistributed earnings to common shareholders		(1,828)		5,240		3,839		12,833
Total common shareholders earnings		1,990		8,013		13,939		19,855
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		—		—		1		1
Total common shareholders earnings, diluted	$	1,990	$	8,013	$	13,940	$	19,856
Weighted average common shares outstanding, basic		19,265,409		15,578,703		17,274,746		13,637,997
Options and warrants		438,808		279,570		522,489		264,667
Weighted average common shares outstanding, diluted		19,704,217		15,858,273		17,797,235		13,902,664
Basic earnings per common share	$	0.10	$	0.51	$	0.81	$	1.46
Diluted earnings per common share		0.10		0.51		0.78		1.43

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2017

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

Note 17 – Fair Value of Financial Instruments

ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value including a three‑level valuation hierarchy, and expands disclosures about fair value measurements. 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: 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, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3: Inputs to a valuation methodology that is unobservable, supported by little or no market activity, and significant to the fair value measurement. These valuation methodologies generally include pricing models, discounted cash flow models, or a determination of fair value that requires significant management judgment or estimation. This category also includes observable inputs from a pricing service not corroborated by observable market data, such as pricing corporate securities.

Fair value is used on a recurring basis to account for securities available for sale and derivative instruments, and for financial assets for which the Company has elected the fair value option. For assets and liabilities measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for impaired loans and other real estate owned and also to record impairment on certain assets, such as mortgage servicing rights, goodwill, intangible assets and other long-lived assets.

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 September 30, 2017 and December 31, 2016, are summarized below (in thousands):


	September 30, 2017
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Securities available for sale:
U.S. Treasury securities	$	47,907	$	47,907	$	—	$	—
Government sponsored entity debt securities		19,389		—		19,389		—
Agency mortgage-backed securities		229,854		—		229,854		—
State and municipal securities		39,716		—		39,716		—
Corporate securities		57,307		—		52,558		4,749
Equity securities		2,812		—		2,812		—
Loans held for sale		35,874		—		35,874		—
Interest rate lock commitments		6,421		—		6,421		—
Forward commitments to sell mortgage-backed securities		5		—		5		—
Interest rate swap contracts		121		—		121		—
Total	$	439,406	$	47,907	$	386,750	$	4,749
Liabilities
Interest rate swap contracts	$	121	$	—	$	121	$	—

Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	$	56,299	$	—	$	—	$	56,299
Mortgage servicing rights held for sale		10,618		—		—		10,618
Impaired loans		18,311		—		6,227		12,084
Assets held for sale		2,858		—		2,858		—


	December 31, 2016
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level) 3
Assets and liabilities measured at fair value on a recurring basis:
Assets
Securities available for sale:
U.S. Treasury securities	$	75,901	$	75,901	$	—	$	—
Government sponsored entity debt securities		7,688		—		7,688		—
Agency mortgage-backed securities		90,070		—		90,070		—
Non-agency mortgage-backed securities		1		—		—		1
State and municipal securities		25,274		—		25,274		—
Corporate securities		47,405		—		39,925		7,480
Loans held for sale		70,565		—		70,565		—
Interest rate lock commitments		6,253		—		6,253		—
Forward commitments to sell mortgage-backed securities		125		—		125		—
Total	$	323,282	$	75,901	$	239,900	$	7,481
Liabilities
None

Assets measured at fair value on a non-recurring basis:
Impaired loans	$	10,202	$	—	$	6,635	$	3,567
Other real estate owned		165		—		165		—
Assets held for sale		1,550		—		1,550		—

The following table presents losses recognized on assets measured on a non‑recurring basis for the three and nine months ended September 30, 2017 and 2016 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Mortgage servicing rights	$	104	$	1,073	$	1,830	$	6,093
Mortgage servicing rights held for sale		3,617		—		3,617		—
Impaired loans		1		144		564		310
Other real estate owned		—		4		180		219
Assets held for sale		—		—		1,130		—
Total loss on assets measured on a nonrecurring basis	$	3,722	$	1,221	$	7,321	$	6,622

The following table presents activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2017 (in thousands):


					Non-Agency
	Corporate				Mortgage-Backed
	Securities				Securities
	Three Months		Nine Months		Three Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30,		September 30,		September 30,		September 30,
	2017				2017
Balance, beginning of period	$	4,740	$	7,480	$	—	$	1
Total realized in earnings (1)		54		235		—		—
Total unrealized in other comprehensive income		—		242		—		—
Net settlements (principal and interest)		(45)		(3,208)		—		(1)
Balance, end of period	$	4,749	$	4,749	$	—	$	—

(1)

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


					Non-Agency
	Corporate				Mortgage-Backed
	Securities				Securities
	Three Months		Nine Months		Three Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30,		September 30,		September 30,		September 30,
	2016				2016
Balance, beginning of period	$	9,765	$	—	$	2	$	—
Transferred from Level 2		—		6,749		—		2
Transferred to Level 2		(2,000)		(2,000)		—		—
Purchases of investment securities recognized as Level 3		—		3,000		—		—
Total realized in earnings (1)		93		251		—		—
Total unrealized in other comprehensive income		(294)		(296)		—		—
Net settlements (principal and interest)		(84)		(224)		(1)		(1)
Balance, end of period	$	7,480	$	7,480	$	1	$	1

(1)

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

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 following tables are a summary of the carrying values and fair value estimates of certain financial instruments as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	180,807	$	180,807	$	180,807	$	—	$	—
Federal funds sold		2,765		2,765		2,765		—		—
Investment securities available for sale		396,985		396,985		47,907		344,329		4,749
Investment securities held to maturity		70,867		75,142		—		75,142		—
Nonmarketable equity securities		34,391		N/A		N/A		N/A		N/A
Loans, net		3,141,111		3,142,910		—		—		3,142,910
Loans held for sale		35,874		35,874		—		35,874		—
Accrued interest receivable		11,673		11,673		—		11,673		—
Interest rate lock commitments		6,421		6,421		—		6,421		—
Forward commitments to sell mortgage-backed securities		5		5		—		5		—
Interest rate swap contracts		121		121		—		121		—
Liabilities
Deposits	$	3,114,467	$	3,112,541	$	—	$	3,112,541	$	—
Short-term borrowings		153,443		153,443		—		153,443		—
FHLB and other borrowings		488,870		488,196		—		488,196		—
Subordinated debt		54,581		50,055		—		50,055		—
Trust preferred debentures		45,267		43,114		—		43,114		—
Accrued interest payable		2,355		2,355		—		2,355		—
Interest rate swap contracts		121		121		—		121		—


	December 31, 2016
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	189,543	$	189,543	$	189,543	$	—	$	—
Federal funds sold		1,173		1,173		1,173		—		—
Investment securities available for sale		246,339		246,339		75,901		162,957		7,481
Investment securities held to maturity		78,672		81,952		—		81,952		—
Nonmarketable equity securities		19,485		N/A		N/A		N/A		N/A
Loans, net		2,305,114		2,305,206		—		—		2,305,206
Loans held for sale		70,565		70,565		—		70,565		—
Accrued interest receivable		8,202		8,202		—		8,202		—
Interest rate lock commitments		6,253		6,253		—		6,253		—
Forward commitments to sell mortgage-backed securities		125		125		—		125		—
Liabilities
Deposits	$	2,404,366	$	2,404,231	$	—	$	2,404,231	$	—
Short-term borrowings		131,557		131,557		—		131,557		—
FHLB and other borrowings		237,518		236,736		—		236,736		—
Subordinated debt		54,508		49,692		—		49,692		—
Trust preferred debentures		37,405		33,054		—		33,054		—
Accrued interest payable		1,045		1,045		—		1,045		—

The following is a description of the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820) and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825):

Cash and due from banks and federal funds sold. The carrying amounts are assumed to be the fair value because of the liquidity of these instruments.

Investment securities available for sale. Investment securities available for sale are measured and carried at fair value on a recurring basis. Unrealized gains and losses on investment securities available for sale are reported as a component of accumulated other comprehensive income in the consolidated balance sheets.

For investment securities available for sale where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). In determining the fair value of investment securities available for sale categorized as Level 2, we obtain a report from a nationally recognized broker‑dealer detailing the fair value of each investment security we hold as of each reporting date. The broker‑dealer uses observable market information to value our fixed income securities, with the primary source being a nationally recognized pricing service. The fair value of the municipal securities is based on a proprietary model maintained by the broker‑dealer. We review all of the broker‑dealer supplied quotes on the securities we own as of the reporting date for reasonableness based on our understanding of the marketplace, and we consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy.

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). During the nine months ended September 30, 2016, $6.7 million of corporate securities and $2,000 of non-agency mortgage backed securities were transferred from Level 2 to Level 3 because observable market inputs were not available and the securities were not actively traded; therefore, the fair value was determined utilizing third-party valuation services through consensus pricing. There were no investment securities available for sale transferred from Level 2 to Level 3 during the three and nine months ended September 30, 2017.

Corporate 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. The significant unobservable input used in the fair value measurement of Level 3 corporate securities is net market price (range of -2.0% to 2.5%; weighted average of 1.5%). Significant changes in any of the inputs in isolation would result in a significant change to the fair value measurement. Net market price generally increases when market interest rates decline and declines when market interest rates increase.

During both the three and nine months ended September 30, 2016, $2.0 million of corporate securities were transferred from Level 3 to Level 2 because a more liquid market for these securities had developed and prices supported by observable market inputs had become available.

Investment securities held to maturity. Investment securities held to maturity are those debt instruments which the Company has the positive intent and ability to hold until maturity. Securities held to maturity are recorded at cost, adjusted for the amortization of premiums or accretion of discounts.

For investment securities held to maturity where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). In determining the fair value of investment securities held to maturity categorized as Level 2, we obtain a report from a nationally recognized broker‑dealer detailing the fair value of each investment security we hold as of each reporting date. The fair value of the municipal securities is based on a proprietary model maintained by the broker‑dealer. We review all of the broker‑dealer supplied quotes on the securities we own as of the reporting date for reasonableness based on our understanding of the marketplace, and we consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy.

Nonmarketable equity securities. Nonmarketable equity securities are primarily FHLB and Federal Reserve Bank stock. The Company is a member of the FHLB and the Federal Reserve System. The carrying value is our basis because it is not practical to determine the fair value due to restrictions placed on transferability.

Loans. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type and further segmented into fixed and adjustable rate interest terms and by credit risk categories. The fair value estimates do not take into consideration the value of the loan portfolio in the event the loans have to be sold outside the parameters of normal operating activities. The fair value of performing fixed rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market prepayment speeds and estimated market discount rates that reflect the credit and interest rate risk inherent in the loans. The estimated market discount rates used for performing fixed rate loans are the Company’s current offering rates for comparable instruments with similar terms. The fair value of performing adjustable rate loans is estimated by discounting scheduled cash flows through the next repricing date. As these loans reprice frequently at market rates and the credit risk is not considered to be greater than normal, the market value is typically close to the carrying amount of these loans. The method of estimating fair value does not incorporate the exit‑price concept of fair value prescribed by ASC Topic 820.

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. The loan balances shown in the above tables represent nonaccrual and restructured loans for which impairment was recognized during the three and nine months ended September 30, 2017 and 2016. The amounts shown as losses represent, for the loan balances shown, the impairment recognized during those same years.

Loans held for sale. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market.

Other real estate owned. The fair value of foreclosed real estate is generally based on estimated market prices from independently prepared current appraisals or negotiated sales prices with potential buyers; such valuation inputs result in a fair value measurement that is categorized as a Level 2 measurement on a nonrecurring basis. When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement.

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.

Accrued interest receivable. The carrying amounts approximate their fair values.

Deposits. Deposits are carried at historical cost. The fair value of deposits with no stated maturity, such as noninterest‑bearing demand deposits, money market, savings and checking accounts, is equal to the amount payable on demand as of the balance sheet date. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Short-term borrowings. Short-term borrowings consist of repurchase agreements. These borrowings typically have terms of less than 30 days, and therefore, their carrying amounts are a reasonable estimate of fair value.

FHLB advances and other borrowings and subordinated debt. Borrowings are carried at amortized cost. The fair value of fixed rate borrowings is calculated by discounting scheduled cash flows through the estimated maturity or call dates using estimated market discount rates that reflect rates offered at that time for borrowings with similar remaining maturities and other characteristics.

Trust preferred debentures. Debentures are carried at amortized cost. The fair value of variable rate debentures is calculated by discounting scheduled cash flows through the estimated maturity or call dates using estimated market discount rates that reflect spreads offered at that time for borrowings with similar remaining maturities and other characteristics.

Accrued interest payable. The carrying amounts approximate their fair values.

Derivative financial instruments. The Company 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. These commitments are carried at fair value in other assets on the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. The Company also has forward loan sales commitments related to its interest rate lock commitments and its loans held for sale. These commitments are carried at fair value in other assets or other liabilities on the consolidated balance sheets with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. The interest rate swaps are carried at fair value on a recurring basis based upon the amounts required to settle the contracts.

- 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

9 Months Ended

Sep. 30, 2017

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

Note 18 – 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 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 September 30, 2017 and December 31, 2016 are as follows (in thousands):


	September 30,		December 31,
	2017		2016
Commitments to extend credit	$	605,419	$	483,345
Financial guarantees – standby letters of credit		71,616		89,233

The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis, primarily to government-sponsored enterprises (“GSEs”). The Company’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Company may be obligated to repurchase the loan or reimburse the GSEs for losses incurred. The make-whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. The Company establishes a mortgage repurchase liability related to these events that reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on a combination of factors. Such factors incorporate the volume of loans sold in 2017 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. The Company incurred losses as a result of make-whole requests and loan repurchases totaling $17,000 for both the three and nine months ended September 30, 2017, and $83,000 for the nine months ended September 30, 2016. There were no losses incurred for the three months ended September 30, 2016. The liability for unresolved repurchase demands totaled $366,000 and $329,000 at September 30, 2017 and December 31, 2016, respectively.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2017

SEGMENT INFORMATION

SEGMENT INFORMATION

Note 19 – Segment Information

Our business segments are defined as Banking, Commercial FHA Origination and Servicing, 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 other segment includes the operating results of the parent company, our wealth management business unit, our captive insurance business unit, and the elimination of intercompany transactions. Wealth management activities consist of trust and fiduciary services, brokerage and retirement planning services.

Selected business segment financial information as of and for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands):


			Commercial FHA
			Origination and
	Banking		Servicing		Other		Total
Three Months Ended September 30, 2017
Net interest income (expense)	$	38,598	$	(79)	$	(1,754)	$	36,765
Provision for loan losses		1,489		—		—		1,489
Noninterest income		8,571		3,966		2,866		15,403
Noninterest expense		42,425		3,910		2,028		48,363
Income (loss) before income taxes (benefit)		3,255		(23)		(916)		2,316
Income taxes (benefit)		996		(9)		(707)		280
Net income (loss)	$	2,259	$	(14)	$	(209)	$	2,036
Total assets	$	4,370,600	$	121,514	$	(144,353)	$	4,347,761

Three Months Ended September 30, 2016
Net interest income (expense)	$	28,394	$	215	$	(1,344)	$	27,265
Provision for loan losses		1,392		—		—		1,392
Noninterest income		9,714		3,557		1,666		14,937
Noninterest expense		23,640		3,511		1,506		28,657
Income (loss) before income taxes (benefit)		13,076		261		(1,184)		12,153
Income taxes (benefit)		4,573		104		(575)		4,102
Net income (loss)	$	8,503	$	157	$	(609)	$	8,051
Total assets	$	3,252,421	$	100,516	$	(105,210)	$	3,247,727


			Commercial FHA
			Origination and
	Banking		Servicing		Other		Total
Nine Months Ended September 30, 2017
Net interest income (expense)	$	97,580	$	325	$	(4,279)	$	93,626
Provision for loan losses		3,480		—		—		3,480
Noninterest income		24,339		15,189		5,836		45,364
Noninterest expense		99,214		11,639		5,952		116,805
Income (loss) before income taxes (benefit)		19,225		3,875		(4,395)		18,705
Income taxes (benefit)		4,870		1,550		(1,780)		4,640
Net income (loss)	$	14,355	$	2,325	$	(2,615)	$	14,065
Total assets	$	4,370,600	$	121,514	$	(144,353)	$	4,347,761

Nine Months Ended September 30, 2016
Net interest income (expense)	$	82,939	$	712	$	(4,357)	$	79,294
Provision for loan losses		3,146		—		—		3,146
Noninterest income		21,347		19,212		1,013		41,572
Noninterest expense		69,784		12,203		5,212		87,199
Income (loss) before income taxes (benefit)		31,356		7,721		(8,556)		30,521
Income taxes (benefit)		9,348		3,088		(1,874)		10,562
Net income (loss)	$	22,008	$	4,633	$	(6,682)	$	19,959
Total assets	$	3,252,421	$	100,516	$	(105,210)	$	3,247,727

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Accounting Standards Codification
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+ Details

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2017
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	Note 20 – Related Party Transactions A member of our board of directors has an ownership interest in the office building located in Clayton, Missouri and three of the Bank’s full-service branch facilities. During the three and nine months ended September 30, 2017, the Company paid rent on these facilities of $166,000 and $553,000, respectively, and $165,000 and $540,000 for the comparable periods in 2016, respectively. 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 nine months ended September 30, 2017, the Company paid $116,000 for these services.

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	Note 21 – Subsequent Events On October 16, 2017, the Company announced that it had entered into a definitive agreement to acquire Alpine Bancorporation, Inc. (“Alpine”) for estimated total consideration of approximately $181.0 million, consisting of $33.3 million in cash (the “Cash Consideration”) and an aggregate of 4,463,200 shares of Midland common stock (the “Stock Consideration”). Alpine, the parent company of Alpine Bank & Trust is headquartered in Belvidere, Illinois, and operates 19 locations in northern Illinois. As of June 30, 2017, Alpine had total assets of $1.28 billion, gross loans of $830.2 million and total deposits of $1.14 billion. Under the terms of the definitive agreement, upon consummation of the transaction, holders of Alpine common stock will have the right to receive a pro rata share of the Cash Consideration and a pro rate share of the Stock Consideration, subject to potential adjustment based on Alpine’s tangible stockholders’ equity as of the month-end preceding the closing date. Based on an assumed value of $33.10 per share of Midland common stock, which was the closing price on NASDAQ on the trading day preceding the announcement of the transaction, the Company estimates the value of the total consideration will be $181.0 million, although the actual value of the total consideration will be higher or lower to the extent the trading price of Company common stock at closing differs from $33.10 per share. The transaction is expected to close during the first quarter of 2018, subject to the receipt of regulatory approvals, the approval of Alpine’s and the Company’s shareholders, and the satisfaction of other customary closing conditions. 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 is expected to be reduced by approximately $0.6 million related to debt issuance costs, which will be amortized on a straight line basis through the maturity of the subordinated debentures. The subordinated debentures will be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2017. The consolidated financial statements have been prepared in accordance with the 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 the interim periods presented herein, have been included. Certain reclassifications of 2016 amounts have been made to conform to the 2017 presentation. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.
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 unaudited consolidated financial statements. The Company operates through its principal wholly owned banking subsidiary, Midland States Bank. The Bank operates through its branch banking offices and principal subsidiaries: Love Funding and Business Credit. Summary of Significant Accounting Policies 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.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards FASB Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”; FASB ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”; FASB ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”; FASB ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”; FASB ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” – In May 2014, the Financial Accounting Standards Board (the “FASB”) amended existing guidance related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for us for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09. The Company has determined the result of applying ASU 2014-09 to the individual revenue streams affected, as well as on an aggregate basis, will not be material to the Company’s consolidated financial statements. The Company continues to evaluate the impact of the disclosure requirements associated with ASU 2014-09. 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. This update is effective for us on January 1, 2019, with early adoption permitted. We have not yet decided whether we will early adopt the new standard. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has developed a project plan for evaluating the provisions of the new lease standard, but has not yet determined the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the pending adoption of ASU 2016-02 and its impact on the Company’s consolidated financial statements. 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.” 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. We have formed a committee that is assessing our data and system needs and are evaluating the impact of adopting the new guidance. While the Company generally expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, the Company cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements. The Company is continuing to evaluate the potential impact on the Company’s consolidated financial statements. FASB ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” – In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which amends FASB Accounting Standards Codification (“ASC”) 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. For public business entities, this update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to early adopt the new guidance in the first quarter of 2017. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. FASB ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” – In March 2017, the FASB issued ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date, rather than contractual maturity date as currently required under GAAP. For public business entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application is permitted for any organization in any interim period or fiscal year. The Company elected to early adopt the new guidance in the first quarter of 2017. Adoption of the ASU did not have a material impact on the Company’s consolidated financial statements.

ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2017

ACQUISITIONS

Schedule of allocation of consideration

Based on management’s preliminary valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the consideration paid for the acquisition is allocated as follows (in thousands):


Assets acquired:
Cash and cash equivalents	$	42,461
Investment securities available for sale		149,013
Loans		681,870
Loans held for sale		531
Premises and equipment		17,147
Other real estate owned		4,759
Nonmarketable equity securities		8,168
Accrued interest receivable		2,376
Mortgage servicing rights		1,933
Intangible assets		11,070
Cash surrender value of life insurance policies		36,349
Deferred tax assets, net		33,461
Other assets		2,256
Total assets acquired		991,394
Liabilities assumed:
Deposits		739,867
Short-term borrowings		14,434
FHLB advances and other borrowings		95,332
Trust preferred debentures		7,565
Accrued interest payable		275
Other liabilities		3,429
Total liabilities assumed		860,902
Net assets acquired		130,492
Goodwill		46,087
Total consideration paid	$	176,579

Schedule of acquired loan data

Acquired loan data for Centrue can be found in the table below (in thousands):


					Best Estimate at
					Acquisition Date of
	Fair Value		Gross Contractual		Contractual Cash
	of Acquired Loans		Amounts Receivable		Flows Not Expected
	at Acquisition Date		at Acquisition Date		to be Collected
Acquired receivables subject to ASC 310-30	$	13,352	$	20,719	$	5,256
Acquired receivables not subject to ASC 310-30		668,518		821,338		4,518

Schedule of unaudited pro-forma information


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Revenue (1)	$	52,168	$	52,139	$	156,851	$	152,532
Net income		2,036		8,850		15,299		23,490
Diluted earnings per common share	$	0.10	$	0.46	$	0.71	$	1.37

(1)

Net interest income plus noninterest income

INVESTMENT SECURITIES AVAILABLE FOR SALE (Tables) - Available for sale

9 Months Ended

Sep. 30, 2017

Schedule of Available-for-sale Securities [Line Items]

Schedule of investment securities classified as available for sale

Investment securities classified as available for sale as of September 30, 2017 and December 31, 2016 are as follows (in thousands):


	September 30, 2017
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
U.S. Treasury securities	$	47,979	$	—	$	72	$	47,907
Government sponsored entity debt securities		19,290		104		5		19,389
Agency mortgage-backed securities		229,382		1,103		631		229,854
State and municipal securities		39,385		376		45		39,716
Corporate securities		56,404		1,070		167		57,307
Equity securities		2,705		115		8		2,812
Total	$	395,145	$	2,768	$	928	$	396,985


	December 31, 2016
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
U.S. Treasury securities	$	75,973	$	—	$	72	$	75,901
Government sponsored entity debt securities		7,653		57		22		7,688
Agency mortgage-backed securities		90,629		373		932		90,070
Non-agency mortgage-backed securities		1		—		—		1
State and municipal securities		25,826		15		567		25,274
Corporate securities		47,443		403		441		47,405
Total	$	247,525	$	848	$	2,034	$	246,339

Schedule of unrealized losses and fair values for investment securities


	September 30, 2017
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		loss		value		loss		value		loss
U.S. Treasury securities	$	42,936	$	47	$	4,971	$	25	$	47,907	$	72
Government sponsored entity debt securities		6,467		5		—		—		6,467		5
Agency mortgage-backed securities		50,978		370		10,569		261		61,547		631
State and municipal securities		4,609		14		2,569		31		7,178		45
Corporate securities		4,957		52		5,412		115		10,369		167
Equity securities		2,606		8		—		—		2,606		8
Total	$	112,553	$	496	$	23,521	$	432	$	136,074	$	928


	December 31, 2016
	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		loss		value		loss		value		loss
U.S. Treasury securities	$	75,901	$	72	$	—	$	—	$	75,901	$	72
Government sponsored entity debt securities		4,107		22		—		—		4,107		22
Agency mortgage-backed securities		57,882		930		402		2		58,284		932
State and municipal securities		20,215		567		—		—		20,215		567
Corporate securities		11,111		334		8,312		107		19,423		441
Total	$	169,216	$	1,925	$	8,714	$	109	$	177,930	$	2,034

Contractual maturity of amortized cost and fair value


	Amortized		Fair
	cost		value
Debt securities:
Within one year	$	37,340	$	37,307
After one year through five years		235,754		236,319
After five years through ten years		102,922		104,113
After ten years		16,424		16,434
Equity securities		2,705		2,812
Total	$	395,145	$	396,985

INVESTMENT SECURITIES HELD TO MATURITY (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Held-to-maturity Securities [Line Items]

Schedule of investment securities classified as held to maturity

Investment securities classified as held to maturity as of September 30, 2017 and December 31, 2016 are as follows (in thousands):


	September 30, 2017
			Gross		Gross
	Amortized		unrecognized		unrecognized		Fair
	cost		gains		losses		value
State and municipal securities	$	70,867	$	4,381	$	106	$	75,142


	December 31, 2016
			Gross		Gross
	Amortized		unrecognized		unrecognized		Fair
	cost		gains		losses		value
State and municipal securities	$	78,672	$	3,517	$	237	$	81,952

Held to maturity

Schedule of Held-to-maturity Securities [Line Items]

Schedule of unrealized losses and fair values for investment securities


	September 30, 2017
	Less than 12 Months				12 Months or more				Total
	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
	value		loss		value		loss		value		loss
State and municipal securities	$	3,343	$	32	$	3,490	$	74	$	6,833	$	106


	December 31, 2016
	Less than 12 Months				12 Months or more				Total
	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
	value		loss		value		loss		value		loss
State and municipal securities	$	13,991	$	140	$	2,699	$	97	$	16,690	$	237

Contractual maturity of amortized cost and fair value

The amortized cost and fair value of investment securities held to maturity as of September 30, 2017, by contractual maturity, are as follows (in thousands):


	Amortized		Fair
	cost		value
Within one year	$	871	$	877
After one year through five years		19,055		19,709
After five years through ten years		35,164		38,478
After ten years		15,777		16,078
Total	$	70,867	$	75,142

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References + Details

LOANS (Tables)

9 Months Ended

Sep. 30, 2017

LOANS

Summary of loans


	September 30, 2017						December 31, 2016
	Non-PCI		PCI				Non-PCI		PCI
	Loans		Loans (1)		Total		Loans		Loans (1)		Total
Loans:
Commercial	$	510,457	$	3,087	$	513,544	$	454,310	$	3,517	$	457,827
Commercial real estate		1,456,620		15,664		1,472,284		963,895		5,720		969,615
Construction and land development		181,763		750		182,513		165,175		12,150		177,325
Total commercial loans		2,148,840		19,501		2,168,341		1,583,380		21,387		1,604,767
Residential real estate		438,973		6,774		445,747		247,156		6,557		253,713
Consumer		342,863		175		343,038		269,705		312		270,017
Lease financing		200,846		—		200,846		191,479		—		191,479
Total loans	$	3,131,522	$	26,450	$	3,157,972	$	2,291,720	$	28,256	$	2,319,976

(1)

The unpaid principal balance for PCI loans totaled $38.9 million and $34.6 million as of September 30, 2017 and December 31, 2016, respectively.

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

The following table presents the recorded investment of the commercial loan portfolio (excluding PCI loans) by risk category as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017								December 31, 2016
			Commercial		Construction						Commercial		Construction
			Real		and Land						Real		and Land
	Commercial		Estate		Development		Total		Commercial		Estate		Development		Total
Acceptable credit quality	$	474,513	$	1,408,398	$	174,115	$	2,057,026	$	426,560	$	925,244	$	159,702	$	1,511,506
Special mention		16,543		9,121		—		25,664		10,930		8,735		—		19,665
Substandard		17,695		13,639		—		31,334		12,649		21,178		450		34,277
Substandard – nonaccrual		1,469		21,454		—		22,923		3,559		7,145		21		10,725
Doubtful		—		—		—		—		—		—		—		—
Not graded		237		4,008		7,648		11,893		612		1,593		5,002		7,207
Total (excluding PCI)	$	510,457	$	1,456,620	$	181,763	$	2,148,840	$	454,310	$	963,895	$	165,175	$	1,583,380


	September 30, 2017								December 31, 2016
	Residential				Lease				Residential				Lease
	Real Estate		Consumer		Financing		Total		Real Estate		Consumer		Financing		Total
Performing	$	433,653	$	342,586	$	199,784	$	976,023	$	242,127	$	269,492	$	190,148	$	701,767
Impaired		5,320		277		1,062		6,659		5,029		213		1,331		6,573
Total (excluding PCI)	$	438,973	$	342,863	$	200,846	$	982,682	$	247,156	$	269,705	$	191,479	$	708,340

Summary of impaired loans (excluding PCI loans)

A summary of impaired loans (excluding PCI loans) as of September 30, 2017 and December 31, 2016 is as follows (in thousands):


	September 30,		December 31,
	2017		2016
Nonaccrual loans:
Commercial	$	1,469	$	3,559
Commercial real estate		21,454		7,145
Construction and land development		—		21
Residential real estate		4,355		4,629
Consumer		273		187
Lease financing		1,062		1,330
Total nonaccrual loans		28,613		16,871
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial		2,212		2,378
Commercial real estate		—		—
Construction and land development		45		—
Residential real estate		193		—
Consumer		4		26
Lease financing		—		1
Total accruing loans contractually past due 90 days or more as to interest or principal payments		2,454		2,405
Loans modified under troubled debt restructurings and still accruing:
Commercial		319		611
Commercial real estate		1,214		11,253
Construction and land development		59		63
Residential real estate		772		400
Consumer		—		—
Lease financing		—		—
Total loans modified under troubled debt restructurings and still accruing		2,364		12,327
Total impaired loans (excluding PCI)	$	33,431	$	31,603

The following table presents impaired loans (excluding PCI loans) by portfolio and related valuation allowance as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017						December 31, 2016
			Unpaid		Related				Unpaid		Related
	Recorded		Principal		Valuation		Recorded		Principal		Valuation
	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans with a valuation allowance:
Commercial	$	3,047	$	3,111	$	500	$	3,877	$	3,888	$	882
Commercial real estate		16,454		17,540		3,570		2,142		2,331		309
Construction and land development		104		104		10		84		84		8
Residential real estate		3,056		3,634		490		3,735		4,404		604
Consumer		277		289		31		213		190		23
Lease financing		757		757		186		1,331		1,331		356
Total impaired loans with a valuation allowance		23,695		25,435		4,787		11,382		12,228		2,182
Impaired loans with no related valuation allowance:
Commercial		953		5,874		—		2,671		7,567		—
Commercial real estate		6,214		8,291		—		16,256		17,058		—
Construction and land development		—		813		—		—		—		—
Residential real estate		2,264		2,500		—		1,294		1,462		—
Consumer		—		—		—		—		26		—
Lease financing		305		305		—		—		—		—
Total impaired loans with no related valuation allowance		9,736		17,783		—		20,221		26,113		—
Total impaired loans:
Commercial		4,000		8,985		500		6,548		11,455		882
Commercial real estate		22,668		25,831		3,570		18,398		19,389		309
Construction and land development		104		917		10		84		84		8
Residential real estate		5,320		6,134		490		5,029		5,866		604
Consumer		277		289		31		213		216		23
Lease financing		1,062		1,062		186		1,331		1,331		356
Total impaired loans (excluding PCI)	$	33,431	$	43,218	$	4,787	$	31,603	$	38,341	$	2,182


	Three Months Ended September 30,
	2017				2016
			Interest Income				Interest Income
	Average		Recognized		Average		Recognized
	Recorded		While on		Recorded		While on
	Investment		Impaired Status		Investment		Impaired Status
Impaired loans with a valuation allowance:
Commercial	$	3,054	$	6	$	6,426	$	23
Commercial real estate		16,243		34		2,170		65
Construction and land development		104		2		65		3
Residential real estate		3,090		9		3,157		13
Consumer		289		—		115		—
Lease financing		757		—		727		—
Total impaired loans with a valuation allowance		23,537		51		12,660		104
Impaired loans with no related valuation allowance:
Commercial		2,912		—		439		2
Commercial real estate		6,238		—		15,610		—
Construction and land development		—		—		—		—
Residential real estate		2,276		2		1,341		1
Consumer		—		—		91		—
Lease financing		305		—		—		—
Total impaired loans with no related valuation allowance		11,731		2		17,481		3
Total impaired loans:
Commercial		5,966		6		6,865		25
Commercial real estate		22,481		34		17,780		65
Construction and land development		104		2		65		3
Residential real estate		5,366		11		4,498		14
Consumer		289		—		206		—
Lease financing		1,062		—		727		—
Total impaired loans (excluding PCI)	$	35,268	$	53	$	30,141	$	107


	Nine Months Ended September 30,
	2017				2016
			Interest Income				Interest Income
	Average		Recognized		Average		Recognized
	Recorded		While on		Recorded		While on
	Investment		Impaired Status		Investment		Impaired Status
Impaired loans with a valuation allowance:
Commercial	$	3,068	$	8	$	8,115	$	24
Commercial real estate		16,808		51		2,273		115
Construction and land development		106		3		66		6
Residential real estate		3,032		12		3,234		24
Consumer		311		—		118		—
Lease financing		757		—		727		—
Total impaired loans with a valuation allowance		24,082		74		14,533		169
Impaired loans with no related valuation allowance:
Commercial		3,199		—		313		1
Commercial real estate		6,332		—		15,742		56
Construction and land development		—		—		—		—
Residential real estate		2,174		3		1,364		3
Consumer		—		—		91		—
Lease financing		305		—		—		—
Total impaired loans with no related valuation allowance		12,010		3		17,510		60
Total impaired loans:
Commercial		6,267		8		8,428		25
Commercial real estate		23,140		51		18,015		171
Construction and land development		106		3		66		6
Residential real estate		5,206		15		4,598		27
Consumer		311		—		209		—
Lease financing		1,062		—		727		—
Total impaired loans (excluding PCI)	$	36,092	$	77	$	32,043	$	229

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

The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of September 30, 2017 (in thousands):


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	3,395	$	2,161	$	2,212	$	1,469	$	9,237	$	501,220	$	510,457
Commercial real estate		364		1,044		—		21,454		22,862		1,433,758		1,456,620
Construction and land development		115		67		45		—		227		181,536		181,763
Residential real estate		2,271		228		193		4,355		7,047		431,926		438,973
Consumer		2,055		1,228		4		273		3,560		339,303		342,863
Lease financing		598		—		—		1,062		1,660		199,186		200,846
Total (excluding PCI)	$	8,798	$	4,728	$	2,454	$	28,613	$	44,593	$	3,086,929	$	3,131,522

The following table presents the aging status of the recorded investment in loans by portfolio (excluding PCI loans) as of December 31, 2016 (in thousands):


	Accruing Loans
	30-59		60-89		Past Due
	Days		Days		90 Days		Nonaccrual		Total				Total
	Past Due		Past Due		or More		Loans		Past Due		Current		Loans
Commercial	$	3,326	$	138	$	2,378	$	3,559	$	9,401	$	444,909	$	454,310
Commercial real estate		648		787		—		7,145		8,580		955,315		963,895
Construction and land development		—		—		—		21		21		165,154		165,175
Residential real estate		3,472		13		—		4,629		8,114		239,042		247,156
Consumer		1,701		588		26		187		2,502		267,203		269,705
Lease financing		94		—		1		1,330		1,425		190,054		191,479
Total (excluding PCI)	$	9,241	$	1,526	$	2,405	$	16,871	$	30,043	$	2,261,677	$	2,291,720

Summary of TDRs loans

The following table presents TDRs by loan portfolio (excluding PCI loans) as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017						December 31, 2016
	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	319	$	—	$	319	$	611	$	—	$	611
Commercial real estate		1,214		14,812		16,026		11,253		5,098		16,351
Construction and land development		59		—		59		63		—		63
Residential real estate		772		614		1,386		400		527		927
Consumer		—		—		—		—		—		—
Lease financing		—		—		—		—		—		—
Total loans (excluding PCI)	$	2,364	$	15,426	$	17,790	$	12,327	$	5,625	$	17,952

(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
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
For the Three Months Ended September 30, 2017:
Troubled debt restructurings:
Number of loans		—		—		—		1		—		—		1
Pre-modification outstanding balance	$	—	$	—	$	—	$	91	$	—	$	—	$	91
Post-modification outstanding balance		—		—		—		90		—		—		90

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

For the Nine Months Ended September 30, 2017:
Troubled debt restructurings:
Number of loans		1		—		—		3		—		—		4
Pre-modification outstanding balance	$	362	$	—	$	—	$	475	$	—	$	—	$	837
Post-modification outstanding balance		339		—		—		474		—		—		813

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
For the Three Months Ended September 30, 2016:
Troubled debt restructurings:
Number of loans		—		2		—		—		—		—		2
Pre-modification outstanding balance	$	—	$	10,207	$	—	$	—	$	—	$	—	$	10,207
Post-modification outstanding balance		—		10,207		—		—		—		—		10,207

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

For the Nine Months Ended September 30, 2016:
Troubled debt restructurings:
Number of loans		3		2		—		—		—		—		5
Pre-modification outstanding balance	$	685	$	10,207	$	—	$	—	$	—	$	—	$	10,892
Post-modification outstanding balance		647		10,207		—		—		—		—		10,854

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

Summary of changes in accretable yield for PCI loans

Accretable yield of PCI loans, or income expected to be collected, is as follows (in thousands):


	Nine Months Ended
	September 30,
	2017		2016
Balance, beginning of period	$	9,035	$	10,526
New loans purchased – Centrue acquisition		2,111		—
Accretion		(4,276)		(7,066)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)		(1,558)		(96)
Reclassification from non-accretable		1,519		4,302
Balance, end of period	$	6,831	$	7,666

Summary of changes in allowance for loan losses

Changes in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands):


	Three Months Ended September 30,
	2017						2016
	Non-PCI		PCI				Non-PCI		PCI
	Loans		Loans		Total		Loans		Loans		Total
Balance, beginning of period	$	14,037	$	1,387	$	15,424	$	13,629	$	1,123	$	14,752
Provision for loan losses		1,435		54		1,489		1,156		236		1,392
Loan charge-offs		(335)		—		(335)		(806)		(58)		(864)
Loan recoveries		278		5		283		250		29		279
Net loan (charge-offs) recoveries		(57)		5		(52)		(556)		(29)		(585)
Balance, end of period	$	15,415	$	1,446	$	16,861	$	14,229	$	1,330	$	15,559


	Nine Months Ended September 30,
	2017						2016
	Non-PCI		PCI				Non-PCI		PCI
	Loans		Loans		Total		Loans		Loans		Total
Balance, beginning of period	$	13,744	$	1,118	$	14,862	$	14,093	$	1,895	$	15,988
Provision for loan losses		3,260		220		3,480		3,752		(606)		3,146
Loan charge-offs		(2,856)		—		(2,856)		(4,228)		(58)		(4,286)
Loan recoveries		1,267		108		1,375		612		99		711
Net loan (charge-offs) recoveries		(1,589)		108		(1,481)		(3,616)		41		(3,575)
Balance, end of period	$	15,415	$	1,446	$	16,861	$	14,229	$	1,330	$	15,559

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

The following table represents, by loan portfolio, a summary of changes in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016 (in thousands):


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for loan losses for the three months ended September 30, 2017:
Beginning balance	$	5,381	$	3,996	$	147	$	3,377	$	1,385	$	1,138	$	15,424
Provision for loan losses		(745)		2,715		55		(433)		(92)		(11)		1,489
Charge-offs		—		—		—		(128)		(105)		(102)		(335)
Recoveries		54		56		13		47		81		32		283
Ending balance	$	4,690	$	6,767	$	215	$	2,863	$	1,269	$	1,057	$	16,861

Changes in allowance for loan losses for the three months ended September 30, 2016:
Beginning balance	$	6,186	$	3,511	$	569	$	2,584	$	827	$	1,075	$	14,752
Provision for loan losses		1,216		(12)		(271)		220		326		(87)		1,392
Charge-offs		(251)		(214)		(1)		(153)		(91)		(154)		(864)
Recoveries		36		129		13		32		20		49		279
Ending balance	$	7,187	$	3,414	$	310	$	2,683	$	1,082	$	883	$	15,559

Changes in allowance for loan losses for the nine months ended September 30, 2017:
Beginning balance	$	5,920	$	3,225	$	345	$	2,929	$	930	$	1,513	$	14,862
Provision for loan losses		(630)		3,577		(178)		113		678		(80)		3,480
Charge-offs		(737)		(470)		—		(455)		(536)		(658)		(2,856)
Recoveries		137		435		48		276		197		282		1,375
Ending balance	$	4,690	$	6,767	$	215	$	2,863	$	1,269	$	1,057	$	16,861

Changes in allowance for loan losses for the nine months ended September 30, 2016:
Beginning balance	$	6,917	$	5,179	$	435	$	2,120	$	749	$	588	$	15,988
Provision for loan losses		2,619		(1,520)		(154)		886		479		836		3,146
Charge-offs		(2,513)		(461)		(1)		(454)		(225)		(632)		(4,286)
Recoveries		164		216		30		131		79		91		711
Ending balance	$	7,187	$	3,414	$	310	$	2,683	$	1,082	$	883	$	15,559


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
	Commercial		Estate		Development		Estate		Consumer		Financing		Total
September 30, 2017:

Allowance for loan losses:
Loans individually evaluated for impairment	$	212	$	3,549	$	5	$	248	$	—	$	115	$	4,129
Loans collectively evaluated for impairment		288		21		5		242		31		71		658
Non-impaired loans collectively evaluated for impairment		3,702		2,872		204		1,893		1,086		871		10,628
Loans acquired with deteriorated credit quality (1)		488		325		1		480		152		—		1,446
Total allowance for loan losses	$	4,690	$	6,767	$	215	$	2,863	$	1,269	$	1,057	$	16,861
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment	$	1,384	$	22,482	$	59	$	3,124	$	—	$	420	$	27,469
Impaired loans collectively evaluated for impairment		2,616		186		45		2,196		277		642		5,962
Non-impaired loans collectively evaluated for impairment		506,457		1,433,952		181,659		433,653		342,586		199,784		3,098,091
Loans acquired with deteriorated credit quality (1)		3,087		15,664		750		6,774		175		—		26,450
Total recorded investment (loan balance)	$	513,544	$	1,472,284	$	182,513	$	445,747	$	343,038	$	200,846	$	3,157,972

December 31, 2016:

Allowance for loan losses:
Loans individually evaluated for impairment	$	878	$	296	$	6	$	379	$	—	$	285	$	1,844
Loans collectively evaluated for impairment		4		13		2		225		23		71		338
Non-impaired loans collectively evaluated for impairment		4,539		2,684		337		1,968		877		1,157		11,562
Loans acquired with deteriorated credit quality (1)		499		232		—		357		30		—		1,118
Total allowance for loan losses	$	5,920	$	3,225	$	345	$	2,929	$	930	$	1,513	$	14,862
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment	$	6,504	$	18,275	$	63	$	2,920	$	—	$	670	$	28,432
Impaired loans collectively evaluated for impairment		44		123		21		2,109		213		661		3,171
Non-impaired loans collectively evaluated for impairment		447,762		945,497		165,091		242,127		269,492		190,148		2,260,117
Loans acquired with deteriorated credit quality (1)		3,517		5,720		12,150		6,557		312		—		28,256
Total recorded investment (loan balance)	$	457,827	$	969,615	$	177,325	$	253,713	$	270,017	$	191,479	$	2,319,976

MORTGAGE SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2017

MORTGAGE SERVICING RIGHTS

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

A summary of mortgage loans serviced for others as of September 30, 2017 and December 31, 2016 is as follows (in thousands):


	September 30,		December 31,
	2017		2016
Commercial FHA mortgage loans	$	3,895,455	$	3,811,066
Residential mortgage loans		2,053,933		1,833,443
Total loans serviced for others	$	5,949,388	$	5,644,509

Changes in our mortgage servicing rights were as follows for the three and nine months ended September 30, 2017 and 2016 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Mortgage servicing rights:
Balance, beginning of period	$	75,705	$	68,395	$	71,710	$	67,218
Servicing rights acquired – residential mortgage loans		—		—		1,933		—
Servicing rights transferred to held for sale - residential mortgage loans		(16,229)		—		(16,229)		—
Servicing rights capitalized – commercial FHA mortgage loans		1,432		3,506		5,020		5,777
Servicing rights capitalized – residential mortgage loans		435		1,125		1,656		2,764
Amortization – commercial FHA mortgage loans		(650)		(592)		(1,928)		(1,741)
Amortization – residential mortgage loans		(857)		(1,085)		(2,326)		(2,669)
Balance, end of period		59,836		71,349		59,836		71,349
Valuation allowances:
Balance, beginning of period		5,428		5,587		3,702		567
Additions		104		1,073		1,942		6,301
Reductions		—		—		(112)		(208)
Servicing rights transferred to held for sale - residential mortgage loans		(1,995)		—		(1,995)		—
Balance, end of period		3,537		6,660		3,537		6,660
Mortgage servicing rights, net	$	56,299	$	64,689	$	56,299	$	64,689
Fair value:
At beginning of period	$	70,277	$	62,960	$	68,008	$	66,700
At end of period	$	56,299	$	64,689	$	56,299	$	64,689

Schedule of summary of key assumptions


					Remaining
	Servicing		Interest		Years to	Prepayment		Servicing		Discount
	Fee		Rate		Maturity	Rate		Cost		Rate
September 30, 2017:
Commercial FHA mortgage loans	0.13	%	3.67	%	30.3	8.25	%	$	1,000	10 - 12	%
Residential mortgage loans	0.26	%	3.93	%	22.6	11.52	%	$	67	9 - 11	%

December 31, 2016:
Commercial FHA mortgage loans	0.13	%	3.72	%	30.2	8.31	%	$	1,000	10 - 13	%
Residential mortgage loans	0.26	%	3.89	%	24.2	9.72	%	$	60	9 - 11	%

GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2017

GOODWILL AND INTANGIBLE ASSETS

Schedule of intangible assets

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of September 30, 2017 and December 31, 2016 are summarized as follows (in thousands):


	September 30, 2017						December 31, 2016
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
	Amount		Amortization		Total		Amount		Amortization		Total
Core deposit intangibles	$	31,612	$	(17,998)	$	13,614	$	20,542	$	(16,181)	$	4,361
Customer relationship intangibles		7,471		(3,119)		4,352		5,471		(2,645)		2,826
Total intangible assets	$	39,083	$	(21,117)	$	17,966	$	26,013	$	(18,826)	$	7,187

DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2017

DERIVATIVE INSTRUMENTS

Schedule of derivative instruments, fair value and notional amounts


	Notional Amount				Fair Value Gain
	September 30,		December 31,		September 30,		December 31,
	2017		2016		2017		2016
Derivative Instruments (included in Other Assets):
Interest rate lock commitments	$	337,280	$	264,359	$	6,421	$	6,253
Forward commitments to sell mortgage-backed securities		349,945		301,788		5		125
Total	$	687,225	$	566,147	$	6,426	$	6,378

DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2017

Deposits [Abstract]

Schedule Of interest and non interest bearing deposits

The following table summarizes the classification of deposits as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
Noninterest-bearing demand	$	674,118	$	562,333
Interest-bearing:
Checking		800,649		656,248
Money market		633,844		399,851
Savings		278,977		166,910
Time		726,879		619,024
Total deposits	$	3,114,467	$	2,404,366

SHORT-TERM BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2017

SHORT-TERM BORROWINGS

Schedule of short term borrowings


	Repurchase Agreements
	September 30,			December 31,
	2017			2016
Outstanding at period-end	$	153,443		$	131,557
Average amount outstanding		157,388			130,228
Maximum amount outstanding at any month end		183,327			168,369
Weighted average interest rate:
During period		0.22	%		0.23	%
End of period		0.23	%		0.21	%

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2017

FHLB ADVANCES AND OTHER BORROWINGS

Schedule of Federal Home Loan Bank (FHLB) advances

The following table summarizes our Federal Home Loan Bank (“FHLB”) advances and other borrowings as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
Midland States Bancorp, Inc.
Term loan - variable interest rate equal to LIBOR plus 2.25%, which was 3.50% at September 30, 2017 – maturing through May 25, 2020	$	38,539	$	—
Series G redeemable preferred stock - 181 shares at $1,000 per share		181		—
Midland States Bank
FHLB advances – fixed rate, fixed term of $176.0 million and $112.5 million, at rates averaging 1.28% and 1.00% at September 30, 2017 and December 31, 2016, respectively – maturing through June 2021, and putable fixed rate of $235.0 million and $125.0 million at rates averaging 1.10% and 0.79% at September 30, 2017 and December 31, 2016, respectively, – maturing through August 2023 with call provisions through June 2019		411,144		237,500
FHLB advances – variable rate, fixed term, at rates averaging 0.85% at September 30, 2017 – maturing through March 2018		39,000		—
Other		6		18
Total FHLB advances and other borrowings	$	488,870	$	237,518

SUBORDINATED DEBT (Tables)

9 Months Ended

Sep. 30, 2017

SUBORDINATED DEBT

Schedule of summary of company's subordinated debt

The following table summarizes the Company’s subordinated debt as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
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	$	39,783	$	39,729
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $15,000 maturing June 18, 2025		14,798		14,779
Total subordinated debt	$	54,581	$	54,508

TRUST PREFERRED DEBENTURES (Tables)

9 Months Ended

Sep. 30, 2017

TRUST PREFERRED DEBENTURES.

Summary of trust preferred debentures

The following table summarizes the Company’s trust preferred debentures as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30,		December 31,
	2017		2016
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 4.16% and 3.74%, at September 30, 2017 and December 31, 2016, respectively – $3,000 maturing January 23, 2034	$	2,043	$	1,996
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 4.06% and 3.63% at September 30, 2017 and December 31, 2016, respectively – $10,000 maturing April 23, 2034		9,959		9,957
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 3.07% and 2.71% at September 30, 2017 and December 31, 2016, respectively – $20,000 maturing December 31, 2036		13,253		13,141
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 2.79% and 2.42% at September 30, 2017 and December 31, 2016, respectively – $20,000 maturing September 6, 2037		12,425		12,311
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 3.97% at September 30, 2017 - $10,000 maturing June 17, 2034		7,587		—
Total trust preferred debentures	$	45,267	$	37,405

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share

Schedule of basic and diluted earnings per common share

Presented below are the calculations for basic and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Net income	$	2,036	$	8,051	$	14,065	$	19,959
Preferred stock dividends		(83)		—		(102)
Amortization of preferred stock premium		56		—		56		—
Net income available to common equity		2,009		8,051		14,019		19,959
Common shareholder dividends		(3,818)		(2,773)		(10,100)		(7,022)
Unvested restricted stock award dividends		(19)		(12)		(59)		(35)
Undistributed earnings to unvested restricted stock awards		—		(26)		(21)		(69)
Undistributed earnings to common shareholders	$	(1,828)	$	5,240	$	3,839	$	12,833
Basic
Distributed earnings to common shareholders	$	3,818	$	2,773	$	10,100	$	7,022
Undistributed earnings to common shareholders		(1,828)		5,240		3,839		12,833
Total common shareholders earnings, basic	$	1,990	$	8,013	$	13,939	$	19,855
Diluted
Distributed earnings to common shareholders	$	3,818	$	2,773	$	10,100	$	7,022
Undistributed earnings to common shareholders		(1,828)		5,240		3,839		12,833
Total common shareholders earnings		1,990		8,013		13,939		19,855
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		—		—		1		1
Total common shareholders earnings, diluted	$	1,990	$	8,013	$	13,940	$	19,856
Weighted average common shares outstanding, basic		19,265,409		15,578,703		17,274,746		13,637,997
Options and warrants		438,808		279,570		522,489		264,667
Weighted average common shares outstanding, diluted		19,704,217		15,858,273		17,797,235		13,902,664
Basic earnings per common share	$	0.10	$	0.51	$	0.81	$	1.46
Diluted earnings per common share		0.10		0.51		0.78		1.43

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2017

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of assets and liabilities measured and recorded at fair value


	September 30, 2017
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Securities available for sale:
U.S. Treasury securities	$	47,907	$	47,907	$	—	$	—
Government sponsored entity debt securities		19,389		—		19,389		—
Agency mortgage-backed securities		229,854		—		229,854		—
State and municipal securities		39,716		—		39,716		—
Corporate securities		57,307		—		52,558		4,749
Equity securities		2,812		—		2,812		—
Loans held for sale		35,874		—		35,874		—
Interest rate lock commitments		6,421		—		6,421		—
Forward commitments to sell mortgage-backed securities		5		—		5		—
Interest rate swap contracts		121		—		121		—
Total	$	439,406	$	47,907	$	386,750	$	4,749
Liabilities
Interest rate swap contracts	$	121	$	—	$	121	$	—

Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	$	56,299	$	—	$	—	$	56,299
Mortgage servicing rights held for sale		10,618		—		—		10,618
Impaired loans		18,311		—		6,227		12,084
Assets held for sale		2,858		—		2,858		—


	December 31, 2016
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level) 3
Assets and liabilities measured at fair value on a recurring basis:
Assets
Securities available for sale:
U.S. Treasury securities	$	75,901	$	75,901	$	—	$	—
Government sponsored entity debt securities		7,688		—		7,688		—
Agency mortgage-backed securities		90,070		—		90,070		—
Non-agency mortgage-backed securities		1		—		—		1
State and municipal securities		25,274		—		25,274		—
Corporate securities		47,405		—		39,925		7,480
Loans held for sale		70,565		—		70,565		—
Interest rate lock commitments		6,253		—		6,253		—
Forward commitments to sell mortgage-backed securities		125		—		125		—
Total	$	323,282	$	75,901	$	239,900	$	7,481
Liabilities
None

Assets measured at fair value on a non-recurring basis:
Impaired loans	$	10,202	$	—	$	6,635	$	3,567
Other real estate owned		165		—		165		—
Assets held for sale		1,550		—		1,550		—

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


	December 31, 2016
			Quoted prices
			in active		Significant
			markets		other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level) 3
Assets and liabilities measured at fair value on a recurring basis:
Assets
Securities available for sale:
U.S. Treasury securities	$	75,901	$	75,901	$	—	$	—
Government sponsored entity debt securities		7,688		—		7,688		—
Agency mortgage-backed securities		90,070		—		90,070		—
Non-agency mortgage-backed securities		1		—		—		1
State and municipal securities		25,274		—		25,274		—
Corporate securities		47,405		—		39,925		7,480
Loans held for sale		70,565		—		70,565		—
Interest rate lock commitments		6,253		—		6,253		—
Forward commitments to sell mortgage-backed securities		125		—		125		—
Total	$	323,282	$	75,901	$	239,900	$	7,481
Liabilities
None

Assets measured at fair value on a non-recurring basis:
Impaired loans	$	10,202	$	—	$	6,635	$	3,567
Other real estate owned		165		—		165		—
Assets held for sale		1,550		—		1,550		—

The following table presents losses recognized on assets measured on a non‑recurring basis for the three and nine months ended September 30, 2017 and 2016 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Mortgage servicing rights	$	104	$	1,073	$	1,830	$	6,093
Mortgage servicing rights held for sale		3,617		—		3,617		—
Impaired loans		1		144		564		310
Other real estate owned		—		4		180		219
Assets held for sale		—		—		1,130		—
Total loss on assets measured on a nonrecurring basis	$	3,722	$	1,221	$	7,321	$	6,622

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


					Non-Agency
	Corporate				Mortgage-Backed
	Securities				Securities
	Three Months		Nine Months		Three Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30,		September 30,		September 30,		September 30,
	2017				2017
Balance, beginning of period	$	4,740	$	7,480	$	—	$	1
Total realized in earnings (1)		54		235		—		—
Total unrealized in other comprehensive income		—		242		—		—
Net settlements (principal and interest)		(45)		(3,208)		—		(1)
Balance, end of period	$	4,749	$	4,749	$	—	$	—

(1)

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


					Non-Agency
	Corporate				Mortgage-Backed
	Securities				Securities
	Three Months		Nine Months		Three Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30,		September 30,		September 30,		September 30,
	2016				2016
Balance, beginning of period	$	9,765	$	—	$	2	$	—
Transferred from Level 2		—		6,749		—		2
Transferred to Level 2		(2,000)		(2,000)		—		—
Purchases of investment securities recognized as Level 3		—		3,000		—		—
Total realized in earnings (1)		93		251		—		—
Total unrealized in other comprehensive income		(294)		(296)		—		—
Net settlements (principal and interest)		(84)		(224)		(1)		(1)
Balance, end of period	$	7,480	$	7,480	$	1	$	1

(1)

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

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

The following tables are a summary of the carrying values and fair value estimates of certain financial instruments as of September 30, 2017 and December 31, 2016 (in thousands):


	September 30, 2017
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	180,807	$	180,807	$	180,807	$	—	$	—
Federal funds sold		2,765		2,765		2,765		—		—
Investment securities available for sale		396,985		396,985		47,907		344,329		4,749
Investment securities held to maturity		70,867		75,142		—		75,142		—
Nonmarketable equity securities		34,391		N/A		N/A		N/A		N/A
Loans, net		3,141,111		3,142,910		—		—		3,142,910
Loans held for sale		35,874		35,874		—		35,874		—
Accrued interest receivable		11,673		11,673		—		11,673		—
Interest rate lock commitments		6,421		6,421		—		6,421		—
Forward commitments to sell mortgage-backed securities		5		5		—		5		—
Interest rate swap contracts		121		121		—		121		—
Liabilities
Deposits	$	3,114,467	$	3,112,541	$	—	$	3,112,541	$	—
Short-term borrowings		153,443		153,443		—		153,443		—
FHLB and other borrowings		488,870		488,196		—		488,196		—
Subordinated debt		54,581		50,055		—		50,055		—
Trust preferred debentures		45,267		43,114		—		43,114		—
Accrued interest payable		2,355		2,355		—		2,355		—
Interest rate swap contracts		121		121		—		121		—


	December 31, 2016
					Quoted prices
					in active		Significant
					markets		other		Significant
					for identical		observable		unobservable
	Carrying				assets		inputs		inputs
	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and due from banks	$	189,543	$	189,543	$	189,543	$	—	$	—
Federal funds sold		1,173		1,173		1,173		—		—
Investment securities available for sale		246,339		246,339		75,901		162,957		7,481
Investment securities held to maturity		78,672		81,952		—		81,952		—
Nonmarketable equity securities		19,485		N/A		N/A		N/A		N/A
Loans, net		2,305,114		2,305,206		—		—		2,305,206
Loans held for sale		70,565		70,565		—		70,565		—
Accrued interest receivable		8,202		8,202		—		8,202		—
Interest rate lock commitments		6,253		6,253		—		6,253		—
Forward commitments to sell mortgage-backed securities		125		125		—		125		—
Liabilities
Deposits	$	2,404,366	$	2,404,231	$	—	$	2,404,231	$	—
Short-term borrowings		131,557		131,557		—		131,557		—
FHLB and other borrowings		237,518		236,736		—		236,736		—
Subordinated debt		54,508		49,692		—		49,692		—
Trust preferred debentures		37,405		33,054		—		33,054		—
Accrued interest payable		1,045		1,045		—		1,045		—

- 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)

9 Months Ended

Sep. 30, 2017

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

Schedule of Loan Commitments

Loan commitments as of September 30, 2017 and December 31, 2016 are as follows (in thousands):


	September 30,		December 31,
	2017		2016
Commitments to extend credit	$	605,419	$	483,345
Financial guarantees – standby letters of credit		71,616		89,233

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2017

SEGMENT INFORMATION

Schedule of segment financial information

Selected business segment financial information as of and for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands):


			Commercial FHA
			Origination and
	Banking		Servicing		Other		Total
Three Months Ended September 30, 2017
Net interest income (expense)	$	38,598	$	(79)	$	(1,754)	$	36,765
Provision for loan losses		1,489		—		—		1,489
Noninterest income		8,571		3,966		2,866		15,403
Noninterest expense		42,425		3,910		2,028		48,363
Income (loss) before income taxes (benefit)		3,255		(23)		(916)		2,316
Income taxes (benefit)		996		(9)		(707)		280
Net income (loss)	$	2,259	$	(14)	$	(209)	$	2,036
Total assets	$	4,370,600	$	121,514	$	(144,353)	$	4,347,761

Three Months Ended September 30, 2016
Net interest income (expense)	$	28,394	$	215	$	(1,344)	$	27,265
Provision for loan losses		1,392		—		—		1,392
Noninterest income		9,714		3,557		1,666		14,937
Noninterest expense		23,640		3,511		1,506		28,657
Income (loss) before income taxes (benefit)		13,076		261		(1,184)		12,153
Income taxes (benefit)		4,573		104		(575)		4,102
Net income (loss)	$	8,503	$	157	$	(609)	$	8,051
Total assets	$	3,252,421	$	100,516	$	(105,210)	$	3,247,727


			Commercial FHA
			Origination and
	Banking		Servicing		Other		Total
Nine Months Ended September 30, 2017
Net interest income (expense)	$	97,580	$	325	$	(4,279)	$	93,626
Provision for loan losses		3,480		—		—		3,480
Noninterest income		24,339		15,189		5,836		45,364
Noninterest expense		99,214		11,639		5,952		116,805
Income (loss) before income taxes (benefit)		19,225		3,875		(4,395)		18,705
Income taxes (benefit)		4,870		1,550		(1,780)		4,640
Net income (loss)	$	14,355	$	2,325	$	(2,615)	$	14,065
Total assets	$	4,370,600	$	121,514	$	(144,353)	$	4,347,761

Nine Months Ended September 30, 2016
Net interest income (expense)	$	82,939	$	712	$	(4,357)	$	79,294
Provision for loan losses		3,146		—		—		3,146
Noninterest income		21,347		19,212		1,013		41,572
Noninterest expense		69,784		12,203		5,212		87,199
Income (loss) before income taxes (benefit)		31,356		7,721		(8,556)		30,521
Income taxes (benefit)		9,348		3,088		(1,874)		10,562
Net income (loss)	$	22,008	$	4,633	$	(6,682)	$	19,959
Total assets	$	3,252,421	$	100,516	$	(105,210)	$	3,247,727

BUSINESS DESCRIPTION (Details) - USD ($) $ in Millions				9 Months Ended
BUSINESS DESCRIPTION (Details) - USD ($) $ in Millions	Jun. 06, 2016	Jun. 06, 2016	May 24, 2016	Sep. 30, 2017	Dec. 31, 2016
Common Stock, Shares, Issued				19,093,153	15,483,499
Proceeds from the IPO	$ 71.5
Unused Elements [Abstract]
Number of year old of the banking subsidiary				136 years
IPO
Common Stock, Shares, Issued			3,044,252
Proceeds from the IPO			$ 67.0
Over-Allotment Option [Member]
Common Stock, Shares, Issued	545,813	545,813
Proceeds from the IPO		$ 12.0

ACQUISITIONS - Centrue Financial Corp (Details)		3 Months Ended		9 Months Ended
ACQUISITIONS - Centrue Financial Corp (Details)	Jun. 09, 2017 USD ($) item shares	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($) $ / shares	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($) $ / shares	Dec. 31, 2016 USD ($)
Business Acquisition
Amortization of Intangible Assets		$ 1,187,000	$ 514,000	$ 2,291,000	$ 1,613,000
Liabilities assumed:
Goodwill		97,351,000		97,351,000		$ 48,836,000
Centrue
Business Acquisition
Number of banking centers \| item	20
Total consideration	$ 176,600,000
Cash consideration	61,000,000
Transaction and integration costs		15,000,000		15,000,000
Adjustment to increase goodwill		169,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash and cash equivalents	42,461,000
Investment securities available for sale	149,013,000
Loans	681,870,000
Loans held for sale	531,000
Premises and equipment	17,147,000
Other real estate owned	4,759,000
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	33,461,000
Other assets	2,256,000
Total assets acquired	991,394,000
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	3,429,000
Total liabilities assumed	860,902,000
Net assets acquired	130,492,000
Goodwill	46,087,000
Total consideration paid	$ 176,579,000
Business Acquisition, Pro Forma Information
Revenue (1)		52,168,000	52,139,000	156,851,000	152,532,000
Net income		$ 2,036,000	$ 8,850,000	$ 15,299,000	$ 23,490,000
Diluted earnings per common share \| $ / shares		$ 0.10	$ 0.46	$ 0.71	$ 1.37
Acquisition related costs		$ 7,300,000		$ 15,000,000
Centrue \| Core deposits
Business Acquisition
Amortization period	8 years
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Intangible assets	$ 11,100,000
Centrue \| Common stock
Business Acquisition
Share consideration \| shares	3,219,238
Centrue \| Series G Preferred Stock
Business Acquisition
Share consideration \| shares	181
Centrue \| Series H Preferred Stock
Business Acquisition
Share consideration \| shares	2,635.5462
Acquired receivables subject to ASC 310-30 \| Centrue
Acquired loan data
Fair value of acquired loans at acquisition date		13,352,000		13,352,000
Gross contractual amounts receivable at acquisition date		20,719,000		20,719,000
Best estimate at acquisition date of contractual cash flows not expected to be collected		5,256,000		5,256,000
Acquired receivables not subject to ASC 310-30 [member] \| Centrue
Acquired loan data
Fair value of acquired loans at acquisition date		668,518,000		668,518,000
Gross contractual amounts receivable at acquisition date		821,338,000		821,338,000
Best estimate at acquisition date of contractual cash flows not expected to be collected		$ 4,518,000		$ 4,518,000

ACQUISITIONS - CedarPoint (Details) - USD ($)	Mar. 28, 2017	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition
Goodwill		$ 97,351,000	$ 48,836,000
CedarPoint
Business Acquisition
Assets under administration	$ 180,000,000
Total consideration	3,700,000
Additional consideration as accrual in other liabilities	$ 345,000
Consideration transferred, shares, in escrow	18,000
Goodwill	$ 2,400,000
CedarPoint \| Customer relationship
Business Acquisition
Intangible assets	$ 2,000,000
Amortization period	12 years
Common stock \| CedarPoint \| Customer relationship
Business Acquisition
Share consideration	102,000

ACQUISITIONS - Sterling (Details) - USD ($) $ in Thousands	Nov. 10, 2016	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition
Goodwill		$ 97,351	$ 48,836
Sterling
Business Acquisition
Assets under administration	$ 400,000
Cash transferred	5,200
Goodwill	2,300
Sterling \| Customer relationship
Business Acquisition
Intangible assets	$ 2,300
Amortization period	20 years

INVESTMENT SECURITIES AVAILABLE FOR SALE - Classified (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Investment securities classified as available for sale
Amortized cost	$ 395,145,000		$ 395,145,000		$ 247,525,000
Gross unrealized gains	2,768,000		2,768,000		848,000
Gross unrealized losses	928,000		928,000		2,034,000
Investment securities available for sale	396,985,000		396,985,000		246,339,000
Available-for-sale Securities	396,985,000		396,985,000		246,339,000
Available-for-sale Securities, Gross Realized Gains	98,000	$ 39,000	219,000	$ 315,000
U.S. Treasury securities
Investment securities classified as available for sale
Amortized cost	47,979,000		47,979,000		75,973,000
Gross unrealized losses	72,000		72,000		72,000
Investment securities available for sale	47,907,000		47,907,000		75,901,000
Available-for-sale Securities	47,907,000		47,907,000		75,901,000
Government sponsored entity debt securities
Investment securities classified as available for sale
Amortized cost	19,290,000		19,290,000		7,653,000
Gross unrealized gains	104,000		104,000		57,000
Gross unrealized losses	5,000		5,000		22,000
Investment securities available for sale	19,389,000		19,389,000		7,688,000
Available-for-sale Securities	19,389,000		19,389,000		7,688,000
Agency mortgage-backed securities
Investment securities classified as available for sale
Amortized cost	229,382,000		229,382,000		90,629,000
Gross unrealized gains	1,103,000		1,103,000		373,000
Gross unrealized losses	631,000		631,000		932,000
Investment securities available for sale	229,854,000		229,854,000		90,070,000
Available-for-sale Securities	229,854,000		229,854,000		90,070,000
Non-agency mortgage-backed securities
Investment securities classified as available for sale
Amortized cost					1,000
Investment securities available for sale					1,000
Available-for-sale Securities					1,000
State and municipal securities
Investment securities classified as available for sale
Amortized cost	39,385,000		39,385,000		25,826,000
Gross unrealized gains	376,000		376,000		15,000
Gross unrealized losses	45,000		45,000		567,000
Investment securities available for sale	39,716,000		39,716,000		25,274,000
Available-for-sale Securities	39,716,000		39,716,000		25,274,000
Corporate securities
Investment securities classified as available for sale
Amortized cost	56,404,000		56,404,000		47,443,000
Gross unrealized gains	1,070,000		1,070,000		403,000
Gross unrealized losses	167,000		167,000		441,000
Investment securities available for sale	57,307,000		57,307,000		47,405,000
Available-for-sale Securities	57,307,000		57,307,000		$ 47,405,000
Equity securities
Investment securities classified as available for sale
Amortized cost	2,705,000		2,705,000
Gross unrealized gains	115,000		115,000
Gross unrealized losses	8,000		8,000
Investment securities available for sale	2,812,000		2,812,000
Available-for-sale Securities	$ 2,812,000		$ 2,812,000

INVESTMENT SECURITIES AVAILABLE FOR SALE - Continuous unrealized loss position (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($) item	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) item	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Securities available for sale:
Less than 12 Months, Fair value	$ 112,553,000		$ 112,553,000		$ 169,216,000
Less than 12 Months, Unrealized loss			496,000		1,925,000
12 Months or more, Fair value	23,521,000		23,521,000		8,714,000
12 Months or more, Unrealized loss			432,000		109,000
Total, Fair value	$ 136,074,000		136,074,000		177,930,000
Total, Unrealized loss			$ 928,000		2,034,000
Unrealized loss
Number of securities, unrealized losses \| item	63		63
Aggregate depreciation	0.68%		0.68%
Other than temporary impairment:
Other than temporary impairment, recognized as losses	$ 0	$ 0	$ 0	$ 824,000
U.S. Treasury securities
Securities available for sale:
Less than 12 Months, Fair value	42,936,000		42,936,000		75,901,000
Less than 12 Months, Unrealized loss			47,000		72,000
12 Months or more, Fair value	4,971,000		4,971,000
12 Months or more, Unrealized loss			25,000
Total, Fair value	47,907,000		47,907,000		75,901,000
Total, Unrealized loss			72,000		72,000
Government sponsored entity debt securities
Securities available for sale:
Less than 12 Months, Fair value	6,467,000		6,467,000		4,107,000
Less than 12 Months, Unrealized loss			5,000		22,000
Total, Fair value	6,467,000		6,467,000		4,107,000
Total, Unrealized loss			5,000		22,000
Agency mortgage-backed securities
Securities available for sale:
Less than 12 Months, Fair value	50,978,000		50,978,000		57,882,000
Less than 12 Months, Unrealized loss			370,000		930,000
12 Months or more, Fair value	10,569,000		10,569,000		402,000
12 Months or more, Unrealized loss			261,000		2,000
Total, Fair value	61,547,000		61,547,000		58,284,000
Total, Unrealized loss			631,000		932,000
State and municipal securities
Securities available for sale:
Less than 12 Months, Fair value	4,609,000		4,609,000		20,215,000
Less than 12 Months, Unrealized loss			14,000		567,000
12 Months or more, Fair value	2,569,000		2,569,000
12 Months or more, Unrealized loss			31,000
Total, Fair value	7,178,000		7,178,000		20,215,000
Total, Unrealized loss			45,000		567,000
Corporate securities
Securities available for sale:
Less than 12 Months, Fair value	4,957,000		4,957,000		11,111,000
Less than 12 Months, Unrealized loss			52,000		334,000
12 Months or more, Fair value	5,412,000		5,412,000		8,312,000
12 Months or more, Unrealized loss			115,000		107,000
Total, Fair value	10,369,000		10,369,000		19,423,000
Total, Unrealized loss			167,000		$ 441,000
Equity securities
Securities available for sale:
Less than 12 Months, Fair value	2,606,000		2,606,000
Less than 12 Months, Unrealized loss			8,000
Total, Fair value	$ 2,606,000		2,606,000
Total, Unrealized loss			$ 8,000

INVESTMENT SECURITIES AVAILABLE FOR SALE - Amortized cost and fair value (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Amortized cost of available-for-sale securities, by contractual maturity
Within one year	$ 37,340,000		$ 37,340,000
One to five years	235,754,000		235,754,000
Five to ten years	102,922,000		102,922,000
After ten years	16,424,000		16,424,000
Equity securities	2,705,000		2,705,000
Total, single maturity date	395,145,000		395,145,000
Fair Value of available-for-sale securities, by contractual maturity
Within one year	37,307,000		37,307,000
One to five years	236,319,000		236,319,000
Five to ten years	104,113,000		104,113,000
After ten years	16,434,000		16,434,000
Equity Securities	2,812,000		2,812,000
Total, single maturity date	396,985,000		396,985,000
Proceeds from Sale of Available-for-sale Securities
Proceed from sales	2,700,000	$ 865,000	11,250,000	$ 31,191,000
Gross realized gains/losses
Gross realized gains	98,000	39,000	219,000	315,000
Gross realized losses	$ 0	$ 0	$ 0	$ 0

INVESTMENT SECURITIES HELD TO MATURITY - Classified (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 70,867	$ 78,672
Fair value	75,142	81,952
State and municipal securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	70,867	78,672
Gross unrecognized gains	4,381	3,517
Gross unrecognized losses	106	237
Fair value	$ 75,142	$ 81,952

INVESTMENT SECURITIES HELD TO MATURITY - Continuous unrealized loss position (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($) item	Dec. 31, 2016 USD ($)
Unrecognized loss
Number of securities, unrecognized losses \| item	27
Aggregate depreciation	1.53%
State and municipal securities
Securities held to maturity:
Less than 12 Months, Fair value	$ 3,343	$ 13,991
Less than 12 Months, Unrecognized loss	32	140
12 Months or more, Fair value	3,490	2,699
12 Months or more, Unrecognized loss	74	97
Total, Fair value	6,833	16,690
Total, Unrealized loss	$ 106	$ 237

INVESTMENT SECURITIES HELD TO MATURITY - Amortized cost and fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized cost of held-to-maturity securities, by contractual maturity
Within one year	$ 871
One to five years	19,055
Five to ten years	35,164
After ten years	15,777
Amortized cost	70,867	$ 78,672
Fair Value of held-to-maturity securities, by contractual maturity
Within one year	877
One to five years	19,709
Five to ten years	38,478
After ten years	16,078
Fair value	$ 75,142	$ 81,952

LOANS - Covered and noncovered loans (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Covered and noncovered loans
Non-covered loans	$ 3,141,111	$ 2,305,114
Loans	3,157,972	2,319,976
Non-PCI loans
Covered and noncovered loans
Loans	3,131,522	2,291,720
PCI loans
Covered and noncovered loans
Loans	26,450	28,256
Customer outstanding balances	38,900	34,600
Commercial loan portfolio
Covered and noncovered loans
Loans	2,168,341	1,604,767
Commercial loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	2,148,840	1,583,380
Commercial loan portfolio \| PCI loans
Covered and noncovered loans
Loans	19,501	21,387
Other loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	982,682	708,340
Commercial \| Commercial loan portfolio
Covered and noncovered loans
Loans	513,544	457,827
Commercial \| Commercial loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	510,457	454,310
Commercial \| Commercial loan portfolio \| PCI loans
Covered and noncovered loans
Loans	3,087	3,517
Commercial real estate \| Commercial loan portfolio
Covered and noncovered loans
Loans	1,472,284	969,615
Commercial real estate \| Commercial loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	1,456,620	963,895
Commercial real estate \| Commercial loan portfolio \| PCI loans
Covered and noncovered loans
Loans	15,664	5,720
Construction and land development \| Commercial loan portfolio
Covered and noncovered loans
Loans	182,513	177,325
Construction and land development \| Commercial loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	181,763	165,175
Construction and land development \| Commercial loan portfolio \| PCI loans
Covered and noncovered loans
Loans	750	12,150
Residential real estate \| Other loan portfolio
Covered and noncovered loans
Loans	445,747	253,713
Residential real estate \| Other loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	438,973	247,156
Residential real estate \| Other loan portfolio \| PCI loans
Covered and noncovered loans
Loans	6,774	6,557
Consumer \| Other loan portfolio
Covered and noncovered loans
Loans	343,038	270,017
Consumer \| Other loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	342,863	269,705
Consumer \| Other loan portfolio \| PCI loans
Covered and noncovered loans
Loans	175	312
Lease financing \| Other loan portfolio
Covered and noncovered loans
Loans	200,846	191,479
Lease financing \| Other loan portfolio \| Non-PCI loans
Covered and noncovered loans
Loans	$ 200,846	$ 191,479

LOANS - Summary of loans (Details) - USD ($)	3 Months Ended		9 Months Ended
LOANS - Summary of loans (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Summary of loans
Loans and Leases Receivable, Gross, Total	$ 3,157,972,000		$ 3,157,972,000		$ 2,319,976,000
Loans, additional information
Net deferred loan fees	11,400,000		11,400,000		3,100,000
Unearned discounts	20,700,000		20,700,000
Loans held for sale	35,874,000		35,874,000		70,565,000
Proceeds from sales of loans held for sale			679,217,000	$ 907,306,000
Directors, executive officers, principal shareholders and affiliates
Loans to certain directors, executive officers, principal shareholders and their affiliates:
Loans outstanding to related parties	26,500,000		26,500,000		26,500,000
New loans to related parties and other additions	982,000		4,000,000
Repayments from related parties and other reductions	948,000		4,000,000
Loans and Leases Receivable, Related Parties, Collections	948,000		4,000,000
Commercial loan portfolio
Summary of loans
Loans and Leases Receivable, Gross, Total	2,168,341,000		2,168,341,000		1,604,767,000
Commercial loan portfolio \| Commercial
Summary of loans
Loans and Leases Receivable, Gross, Total	513,544,000		513,544,000		457,827,000
Commercial loan portfolio \| Commercial real estate
Summary of loans
Loans and Leases Receivable, Gross, Total	1,472,284,000		1,472,284,000		969,615,000
Commercial loan portfolio \| Construction and land development
Summary of loans
Loans and Leases Receivable, Gross, Total	182,513,000		$ 182,513,000		177,325,000
Other loan portfolio \| Maximum
Loans, additional information
Term of lease			4 years
Other loan portfolio \| Residential real estate
Summary of loans
Loans and Leases Receivable, Gross, Total	445,747,000		$ 445,747,000		253,713,000
Other loan portfolio \| Consumer
Summary of loans
Loans and Leases Receivable, Gross, Total	343,038,000		343,038,000		270,017,000
Other loan portfolio \| Lease financing
Summary of loans
Loans and Leases Receivable, Gross, Total	200,846,000		200,846,000		191,479,000
Commercial and Residential Loan
Loans, additional information
Loans held for sale	35,900,000		35,900,000		$ 70,600,000
Proceeds from sales of loans held for sale	$ 206,200,000	$ 450,900,000	$ 679,200,000	$ 907,300,000

LOANS - Risk category (Details) $ in Thousands	9 Months Ended
LOANS - Risk category (Details) $ in Thousands	Sep. 30, 2017 USD ($) region	Dec. 31, 2016 USD ($)
Risk category
Number of main regions \| region	4
Loans and Leases Receivable, Gross, Total	$ 3,157,972	$ 2,319,976
Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	2,168,341	1,604,767
Non-PCI loans
Risk category
Loans and Leases Receivable, Gross, Total	3,131,522	2,291,720
Non-PCI loans \| Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	2,148,840	1,583,380
Non-PCI loans \| Commercial loan portfolio \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	2,057,026	1,511,506
Non-PCI loans \| Commercial loan portfolio \| Special mention
Risk category
Loans and Leases Receivable, Gross, Total	25,664	19,665
Non-PCI loans \| Commercial loan portfolio \| Substandard
Risk category
Loans and Leases Receivable, Gross, Total	31,334	34,277
Non-PCI loans \| Commercial loan portfolio \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	22,923	10,725
Non-PCI loans \| Commercial loan portfolio \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total	11,893	7,207
Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	982,682	708,340
Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	976,023	701,767
Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	6,659	6,573
Commercial \| Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	513,544	457,827
Commercial \| Non-PCI loans \| Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	510,457	454,310
Commercial \| Non-PCI loans \| Commercial loan portfolio \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	474,513	426,560
Commercial \| Non-PCI loans \| Commercial loan portfolio \| Special mention
Risk category
Loans and Leases Receivable, Gross, Total	16,543	10,930
Commercial \| Non-PCI loans \| Commercial loan portfolio \| Substandard
Risk category
Loans and Leases Receivable, Gross, Total	17,695	12,649
Commercial \| Non-PCI loans \| Commercial loan portfolio \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	1,469	3,559
Commercial \| Non-PCI loans \| Commercial loan portfolio \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total	237	612
Commercial real estate \| Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	1,472,284	969,615
Commercial real estate \| Non-PCI loans \| Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	1,456,620	963,895
Commercial real estate \| Non-PCI loans \| Commercial loan portfolio \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	1,408,398	925,244
Commercial real estate \| Non-PCI loans \| Commercial loan portfolio \| Special mention
Risk category
Loans and Leases Receivable, Gross, Total	9,121	8,735
Commercial real estate \| Non-PCI loans \| Commercial loan portfolio \| Substandard
Risk category
Loans and Leases Receivable, Gross, Total	13,639	21,178
Commercial real estate \| Non-PCI loans \| Commercial loan portfolio \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total	21,454	7,145
Commercial real estate \| Non-PCI loans \| Commercial loan portfolio \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total	4,008	1,593
Construction and land development \| Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	182,513	177,325
Construction and land development \| Non-PCI loans \| Commercial loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	181,763	165,175
Construction and land development \| Non-PCI loans \| Commercial loan portfolio \| Acceptable credit quality
Risk category
Loans and Leases Receivable, Gross, Total	174,115	159,702
Construction and land development \| Non-PCI loans \| Commercial loan portfolio \| Substandard
Risk category
Loans and Leases Receivable, Gross, Total		450
Construction and land development \| Non-PCI loans \| Commercial loan portfolio \| Substandard - nonaccrual
Risk category
Loans and Leases Receivable, Gross, Total		21
Construction and land development \| Non-PCI loans \| Commercial loan portfolio \| Not graded
Risk category
Loans and Leases Receivable, Gross, Total	7,648	5,002
Residential real estate \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	445,747	253,713
Residential real estate \| Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	438,973	247,156
Residential real estate \| Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	433,653	242,127
Residential real estate \| Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	5,320	5,029
Consumer \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	343,038	270,017
Consumer \| Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	342,863	269,705
Consumer \| Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	342,586	269,492
Consumer \| Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	277	213
Lease financing \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	200,846	191,479
Lease financing \| Non-PCI loans \| Other loan portfolio
Risk category
Loans and Leases Receivable, Gross, Total	200,846	191,479
Lease financing \| Non-PCI loans \| Other loan portfolio \| Performing
Risk category
Loans and Leases Receivable, Gross, Total	199,784	190,148
Lease financing \| Non-PCI loans \| Other loan portfolio \| Impaired
Risk category
Loans and Leases Receivable, Gross, Total	$ 1,062	$ 1,331

LOANS - Impaired Loans (Details) - USD ($)	3 Months Ended		9 Months Ended
LOANS - Impaired Loans (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Summary of impaired loans
Loans modified under troubled debt restructuring	$ 17,790,000		$ 17,790,000		$ 17,952,000
Interest income :
Interest income recognized on nonaccrual loans	0	$ 0	0	$ 0
Additional interest income that would have been recorded had they been current	124,000	243,000	532,000	484,000
Recognized interest income on loans modified under troubled debt restructurings	40,000	$ 90,000	59,000	$ 196,000
Non-PCI loans
Summary of impaired loans
Nonaccrual loans	28,613,000		28,613,000		16,871,000
Non-PCI loans \| Impaired
Summary of impaired loans
Nonaccrual loans	28,613,000		28,613,000		16,871,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	2,454,000		2,454,000		2,405,000
Loans modified under troubled debt restructuring	2,364,000		2,364,000		12,327,000
Total impaired loans	33,431,000		33,431,000		31,603,000
PCI loans
Summary of impaired loans
Total impaired loans	26,500,000		26,500,000		28,300,000
Commercial \| Commercial loan portfolio \| Non-PCI loans
Summary of impaired loans
Nonaccrual loans	1,469,000		1,469,000		3,559,000
Loans modified under troubled debt restructuring	319,000		319,000		611,000
Commercial \| Commercial loan portfolio \| Non-PCI loans \| Impaired
Summary of impaired loans
Nonaccrual loans	1,469,000		1,469,000		3,559,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	2,212,000		2,212,000		2,378,000
Loans modified under troubled debt restructuring	319,000		319,000		611,000
Total impaired loans	4,000,000		4,000,000		6,548,000
Commercial real estate \| Commercial loan portfolio \| Non-PCI loans
Summary of impaired loans
Nonaccrual loans	21,454,000		21,454,000		7,145,000
Loans modified under troubled debt restructuring	16,026,000		16,026,000		16,351,000
Commercial real estate \| Commercial loan portfolio \| Non-PCI loans \| Impaired
Summary of impaired loans
Nonaccrual loans	21,454,000		21,454,000		7,145,000
Loans modified under troubled debt restructuring	1,214,000		1,214,000		11,253,000
Total impaired loans	22,668,000		22,668,000		18,398,000
Construction and land development \| Commercial loan portfolio \| Non-PCI loans
Summary of impaired loans
Nonaccrual loans					21,000
Loans modified under troubled debt restructuring	59,000		59,000		63,000
Construction and land development \| Commercial loan portfolio \| Non-PCI loans \| Impaired
Summary of impaired loans
Nonaccrual loans					21,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	45,000		45,000
Loans modified under troubled debt restructuring	59,000		59,000		63,000
Total impaired loans	104,000		104,000		84,000
Residential real estate \| Other loan portfolio \| Non-PCI loans
Summary of impaired loans
Nonaccrual loans	4,355,000		4,355,000		4,629,000
Loans modified under troubled debt restructuring	1,386,000		1,386,000		927,000
Residential real estate \| Other loan portfolio \| Non-PCI loans \| Impaired
Summary of impaired loans
Nonaccrual loans	4,355,000		4,355,000		4,629,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	193,000		193,000
Loans modified under troubled debt restructuring	772,000		772,000		400,000
Total impaired loans	5,320,000		5,320,000		5,029,000
Consumer \| Other loan portfolio \| Non-PCI loans
Summary of impaired loans
Nonaccrual loans	273,000		273,000		187,000
Consumer \| Other loan portfolio \| Non-PCI loans \| Impaired
Summary of impaired loans
Nonaccrual loans	273,000		273,000		187,000
Accruing loans contractually past due 90 days or more as to interest or principal payments	4,000		4,000		26,000
Total impaired loans	277,000		277,000		213,000
Lease financing \| Other loan portfolio \| Non-PCI loans
Summary of impaired loans
Nonaccrual loans	1,062,000		1,062,000		1,330,000
Lease financing \| Other loan portfolio \| Non-PCI loans \| Impaired
Summary of impaired loans
Nonaccrual loans	1,062,000		1,062,000		1,330,000
Accruing loans contractually past due 90 days or more as to interest or principal payments					1,000
Total impaired loans	$ 1,062,000		$ 1,062,000		$ 1,331,000

LOANS - Impaired Loans Individually Evaluated (excluding PCI loans) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Impaired loans (excluding PCI loans) by portfolio
Difference between the recorded investment and unpaid principal balance	$ 9,800		$ 9,800		$ 6,700
Impaired \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	23,695		23,695		11,382
With a valuation allowance, Unpaid Principal Balance	25,435		25,435		12,228
With a valuation allowance, Average Annual Recorded Investment	23,537	$ 12,660	24,082	$ 14,533
With a related valuation allowance, Interest Income Recognized while on Impaired Status	51	104	74	169
With no related valuation allowance, Recorded Investment	9,736		9,736		20,221
With no related valuation allowance, Unpaid Principal Balance	17,783		17,783		26,113
With no related valuation allowance, Average Annual Recorded Investment	11,731	17,481	12,010	17,510
With no related valuation allowance, Interest Income Recognized while on Impaired Status	2	3	3	60
Total impaired loans	33,431		33,431		31,603
Total, Unpaid Principal Balance	43,218		43,218		38,341
Total, Related Valuation Allowance	4,787		4,787		2,182
Total, Average Annual Recorded Investment	35,268	30,141	36,092	32,043
Total, Interest Income Recognized While on Impaired Status	53	107	77	229
Commercial \| Impaired \| Commercial loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	3,047		3,047		3,877
With a valuation allowance, Unpaid Principal Balance	3,111		3,111		3,888
With a valuation allowance, Average Annual Recorded Investment	3,054	6,426	3,068	8,115
With a related valuation allowance, Interest Income Recognized while on Impaired Status	6	23	8	24
With no related valuation allowance, Recorded Investment	953		953		2,671
With no related valuation allowance, Unpaid Principal Balance	5,874		5,874		7,567
With no related valuation allowance, Average Annual Recorded Investment	2,912	439	3,199	313
With no related valuation allowance, Interest Income Recognized while on Impaired Status		2		1
Total impaired loans	4,000		4,000		6,548
Total, Unpaid Principal Balance	8,985		8,985		11,455
Total, Related Valuation Allowance	500		500		882
Total, Average Annual Recorded Investment	5,966	6,865	6,267	8,428
Total, Interest Income Recognized While on Impaired Status	6	25	8	25
Commercial real estate \| Impaired \| Commercial loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	16,454		16,454		2,142
With a valuation allowance, Unpaid Principal Balance	17,540		17,540		2,331
With a valuation allowance, Average Annual Recorded Investment	16,243	2,170	16,808	2,273
With a related valuation allowance, Interest Income Recognized while on Impaired Status	34	65	51	115
With no related valuation allowance, Recorded Investment	6,214		6,214		16,256
With no related valuation allowance, Unpaid Principal Balance	8,291		8,291		17,058
With no related valuation allowance, Average Annual Recorded Investment	6,238	15,610	6,332	15,742
With no related valuation allowance, Interest Income Recognized while on Impaired Status				56
Total impaired loans	22,668		22,668		18,398
Total, Unpaid Principal Balance	25,831		25,831		19,389
Total, Related Valuation Allowance	3,570		3,570		309
Total, Average Annual Recorded Investment	22,481	17,780	23,140	18,015
Total, Interest Income Recognized While on Impaired Status	34	65	51	171
Construction and land development \| Impaired \| Commercial loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	104		104		84
With a valuation allowance, Unpaid Principal Balance	104		104		84
With a valuation allowance, Average Annual Recorded Investment	104	65	106	66
With a related valuation allowance, Interest Income Recognized while on Impaired Status	2	3	3	6
With no related valuation allowance, Unpaid Principal Balance	813		813
Total impaired loans	104		104		84
Total, Unpaid Principal Balance	917		917		84
Total, Related Valuation Allowance	10		10		8
Total, Average Annual Recorded Investment	104	65	106	66
Total, Interest Income Recognized While on Impaired Status	2	3	3	6
Residential real estate \| Impaired \| Other loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	3,056		3,056		3,735
With a valuation allowance, Unpaid Principal Balance	3,634		3,634		4,404
With a valuation allowance, Average Annual Recorded Investment	3,090	3,157	3,032	3,234
With a related valuation allowance, Interest Income Recognized while on Impaired Status	9	13	12	24
With no related valuation allowance, Recorded Investment	2,264		2,264		1,294
With no related valuation allowance, Unpaid Principal Balance	2,500		2,500		1,462
With no related valuation allowance, Average Annual Recorded Investment	2,276	1,341	2,174	1,364
With no related valuation allowance, Interest Income Recognized while on Impaired Status	2	1	3	3
Total impaired loans	5,320		5,320		5,029
Total, Unpaid Principal Balance	6,134		6,134		5,866
Total, Related Valuation Allowance	490		490		604
Total, Average Annual Recorded Investment	5,366	4,498	5,206	4,598
Total, Interest Income Recognized While on Impaired Status	11	14	15	27
Consumer \| Impaired \| Other loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	277		277		213
With a valuation allowance, Unpaid Principal Balance	289		289		190
With a valuation allowance, Average Annual Recorded Investment	289	115	311	118
With no related valuation allowance, Unpaid Principal Balance					26
With no related valuation allowance, Average Annual Recorded Investment		91		91
Total impaired loans	277		277		213
Total, Unpaid Principal Balance	289		289		216
Total, Related Valuation Allowance	31		31		23
Total, Average Annual Recorded Investment	289	206	311	209
Lease financing \| Impaired \| Other loan portfolio \| Non-PCI loans
Impaired loans (excluding PCI loans) by portfolio
With a valuation allowance, Recorded Investment	757		757		1,331
With a valuation allowance, Unpaid Principal Balance	757		757		1,331
With a valuation allowance, Average Annual Recorded Investment	757	727	757	727
With no related valuation allowance, Recorded Investment	305		305
With no related valuation allowance, Unpaid Principal Balance	305		305
With no related valuation allowance, Average Annual Recorded Investment	305		305
Total impaired loans	1,062		1,062		1,331
Total, Unpaid Principal Balance	1,062		1,062		1,331
Total, Related Valuation Allowance	186		186		$ 356
Total, Average Annual Recorded Investment	$ 1,062	$ 727	$ 1,062	$ 727

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	$ 3,157,972	$ 2,319,976
Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	28,613	16,871
Total Past Due	44,593	30,043
Current	3,086,929	2,261,677
Loans and Leases Receivable, Gross, Total	3,131,522	2,291,720
Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	8,798	9,241
Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	4,728	1,526
Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	2,454	2,405
Commercial loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,168,341	1,604,767
Commercial loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	2,148,840	1,583,380
Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	982,682	708,340
Commercial \| Commercial loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	513,544	457,827
Commercial \| Commercial loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	1,469	3,559
Total Past Due	9,237	9,401
Current	501,220	444,909
Loans and Leases Receivable, Gross, Total	510,457	454,310
Commercial \| Commercial loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	3,395	3,326
Commercial \| Commercial loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	2,161	138
Commercial \| Commercial loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	2,212	2,378
Commercial real estate \| Commercial loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	1,472,284	969,615
Commercial real estate \| Commercial loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	21,454	7,145
Total Past Due	22,862	8,580
Current	1,433,758	955,315
Loans and Leases Receivable, Gross, Total	1,456,620	963,895
Commercial real estate \| Commercial loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	364	648
Commercial real estate \| Commercial loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	1,044	787
Construction and land development \| Commercial loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	182,513	177,325
Construction and land development \| Commercial loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans		21
Total Past Due	227	21
Current	181,536	165,154
Loans and Leases Receivable, Gross, Total	181,763	165,175
Construction and land development \| Commercial loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	115
Construction and land development \| Commercial loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	67
Construction and land development \| Commercial loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	45
Residential real estate \| Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	445,747	253,713
Residential real estate \| Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	4,355	4,629
Total Past Due	7,047	8,114
Current	431,926	239,042
Loans and Leases Receivable, Gross, Total	438,973	247,156
Residential real estate \| Other loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,271	3,472
Residential real estate \| Other loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	228	13
Residential real estate \| Other loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	193
Consumer \| Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	343,038	270,017
Consumer \| Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	273	187
Total Past Due	3,560	2,502
Current	339,303	267,203
Loans and Leases Receivable, Gross, Total	342,863	269,705
Consumer \| Other loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	2,055	1,701
Consumer \| Other loan portfolio \| Non-PCI loans \| 60-89 Days Past Due
Aging Status of recorded investment
Past Due	1,228	588
Consumer \| Other loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due	4	26
Lease financing \| Other loan portfolio
Aging Status of recorded investment
Loans and Leases Receivable, Gross, Total	200,846	191,479
Lease financing \| Other loan portfolio \| Non-PCI loans
Aging Status of recorded investment
Nonaccrual Loans	1,062	1,330
Total Past Due	1,660	1,425
Current	199,186	190,054
Loans and Leases Receivable, Gross, Total	200,846	191,479
Lease financing \| Other loan portfolio \| Non-PCI loans \| 31-59 Days Past Due
Aging Status of recorded investment
Past Due	$ 598	94
Lease financing \| Other loan portfolio \| Non-PCI loans \| Accruing Loans past Due 90 Days or More
Aging Status of recorded investment
Past Due		$ 1

LOANS - TDRs by portfolio (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 2,400,000	$ 203,000
Unfunded commitments	0	0
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,364,000	12,327,000
TDR's Nonaccrual	15,426,000	5,625,000
Total	17,790,000	17,952,000
Minimum \| Performing
Troubled debt restructuring
TDRs, individually evaluated for impairment, threshold	50,000
Commercial \| Commercial loan portfolio \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	319,000	611,000
Total	319,000	611,000
Commercial real estate \| Commercial loan portfolio \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	1,214,000	11,253,000
TDR's Nonaccrual	14,812,000	5,098,000
Total	16,026,000	16,351,000
Construction and land development \| Commercial loan portfolio \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	59,000	63,000
Total	59,000	63,000
Residential real estate \| Other loan portfolio \| Non-PCI loans
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	772,000	400,000
TDR's Nonaccrual	614,000	527,000
Total	$ 1,386,000	$ 927,000

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) loan	Sep. 30, 2016 USD ($) loan	Sep. 30, 2017 USD ($) loan	Sep. 30, 2016 USD ($) loan
Troubled debt restructurings:
Number of loans \| loan	1	2	4	5
Pre-modification outstanding balance	$ 91	$ 10,207	$ 837	$ 10,892
Post-modification outstanding balance	$ 90	$ 10,207	$ 813	$ 10,854
Commercial \| Commercial loan portfolio
Troubled debt restructurings:
Number of loans \| loan			1	3
Pre-modification outstanding balance			$ 362	$ 685
Post-modification outstanding balance			$ 339	$ 647
Commercial real estate \| Commercial loan portfolio
Troubled debt restructurings:
Number of loans \| loan		2		2
Pre-modification outstanding balance		$ 10,207		$ 10,207
Post-modification outstanding balance		$ 10,207		$ 10,207
Residential real estate \| Other loan portfolio
Troubled debt restructurings:
Number of loans \| loan	1		3
Pre-modification outstanding balance	$ 91		$ 475
Post-modification outstanding balance	$ 90		$ 474

LOANS - PCI Loans - Changes in the accretable yield for PCI loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Summary of loans
Accretion recorded as loan interest income	$ 35,276	$ 25,873	$ 90,146	$ 76,148
PCI loans
Changes in the accretable yield for PCI loans
Balance, beginning of period			9,035,000	10,526,000
New loans purchased - Centrue acquisition			2,111,000
Accretion	(1,100)	(1,800)	(4,276,000)	(7,066,000)
Other adjustments (including maturities, charge-offs and impact of changes in timing of expected cash flows)			(1,558,000)	(96,000)
Reclassification from (to) non-accretable			1,519,000	4,302,000
Balance, end of period	$ 6,831,000	$ 7,666,000	$ 6,831,000	$ 7,666,000

LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Changes in allowance for loan losses :
Beginning balance	$ 15,424	$ 14,752	$ 14,862	$ 15,988
Provision for loan losses	1,489	1,392	3,480	3,146
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(335)	(864)	(2,856)	(4,286)
Loan recoveries	283	279	1,375	711
Net loan (charge-offs) recoveries	(52)	(585)	(1,481)	(3,575)
Ending balance	16,861	15,559	16,861	15,559
Non-PCI loans
Changes in allowance for loan losses :
Beginning balance	14,037	13,629	13,744	14,093
Provision for loan losses	1,435	1,156	3,260	3,752
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs	(335)	(806)	(2,856)	(4,228)
Loan recoveries	278	250	1,267	612
Net loan (charge-offs) recoveries	(57)	(556)	(1,589)	(3,616)
Ending balance	15,415	14,229	15,415	14,229
PCI loans
Changes in allowance for loan losses :
Beginning balance	1,387	1,123	1,118	1,895
Provision for loan losses	54	236	220	(606)
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Loan charge-offs		(58)		(58)
Loan recoveries	5	29	108	99
Net loan (charge-offs) recoveries	5	(29)	108	41
Ending balance	$ 1,446	$ 1,330	$ 1,446	$ 1,330

LOANS - Allowance for loan losses by loan portfolio and recorded investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Changes in allowance for loan losses :
Beginning balance	$ 15,424	$ 14,752	$ 14,862	$ 15,988
Provision for loan losses	1,489	1,392	3,480	3,146
Charge-offs	(335)	(864)	(2,856)	(4,286)
Recoveries	283	279	1,375	711
Ending balance	16,861	15,559	16,861	15,559
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					$ 4,129	$ 1,844
Loans collectively evaluated for impairment					658	338
Non-impaired loans collectively evaluated for impairment					10,628	11,562
Loans acquired with deteriorated credit quality					1,446	1,118
Total	15,424	14,752	14,862	15,988	16,861	14,862
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					27,469	28,432
Impaired loans collectively evaluated for impairment					5,962	3,171
Non-impaired loans collectively evaluated for impairment					3,098,091	2,260,117
Loans acquired with deteriorated credit quality					26,450	28,256
Loans and Leases Receivable, Gross, Total					3,157,972	2,319,976
Commercial loan portfolio
Recorded investment (loan balance) at December 31, 2014:
Loans and Leases Receivable, Gross, Total					2,168,341	1,604,767
Commercial \| Commercial loan portfolio
Changes in allowance for loan losses :
Beginning balance	5,381	6,186	5,920	6,917
Provision for loan losses	(745)	1,216	(630)	2,619
Charge-offs		(251)	(737)	(2,513)
Recoveries	54	36	137	164
Ending balance	4,690	7,187	4,690	7,187
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					212	878
Loans collectively evaluated for impairment					288	4
Non-impaired loans collectively evaluated for impairment					3,702	4,539
Loans acquired with deteriorated credit quality					488	499
Total	5,381	6,186	5,920	6,917	4,690	5,920
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					1,384	6,504
Impaired loans collectively evaluated for impairment					2,616	44
Non-impaired loans collectively evaluated for impairment					506,457	447,762
Loans acquired with deteriorated credit quality					3,087	3,517
Loans and Leases Receivable, Gross, Total					513,544	457,827
Commercial real estate \| Commercial loan portfolio
Changes in allowance for loan losses :
Beginning balance	3,996	3,511	3,225	5,179
Provision for loan losses	2,715	(12)	3,577	(1,520)
Charge-offs		(214)	(470)	(461)
Recoveries	56	129	435	216
Ending balance	6,767	3,414	6,767	3,414
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					3,549	296
Loans collectively evaluated for impairment					21	13
Non-impaired loans collectively evaluated for impairment					2,872	2,684
Loans acquired with deteriorated credit quality					325	232
Total	3,996	3,511	3,225	5,179	6,767	3,225
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					22,482	18,275
Impaired loans collectively evaluated for impairment					186	123
Non-impaired loans collectively evaluated for impairment					1,433,952	945,497
Loans acquired with deteriorated credit quality					15,664	5,720
Loans and Leases Receivable, Gross, Total					1,472,284	969,615
Construction and land development \| Commercial loan portfolio
Changes in allowance for loan losses :
Beginning balance	147	569	345	435
Provision for loan losses	55	(271)	(178)	(154)
Charge-offs		(1)		(1)
Recoveries	13	13	48	30
Ending balance	215	310	215	310
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					5	6
Loans collectively evaluated for impairment					5	2
Non-impaired loans collectively evaluated for impairment					204	337
Loans acquired with deteriorated credit quality					1
Total	147	569	345	435	215	345
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					59	63
Impaired loans collectively evaluated for impairment					45	21
Non-impaired loans collectively evaluated for impairment					181,659	165,091
Loans acquired with deteriorated credit quality					750	12,150
Loans and Leases Receivable, Gross, Total					182,513	177,325
Residential real estate \| Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	3,377	2,584	2,929	2,120
Provision for loan losses	(433)	220	113	886
Charge-offs	(128)	(153)	(455)	(454)
Recoveries	47	32	276	131
Ending balance	2,863	2,683	2,863	2,683
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					248	379
Loans collectively evaluated for impairment					242	225
Non-impaired loans collectively evaluated for impairment					1,893	1,968
Loans acquired with deteriorated credit quality					480	357
Total	3,377	2,584	2,929	2,120	2,863	2,929
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					3,124	2,920
Impaired loans collectively evaluated for impairment					2,196	2,109
Non-impaired loans collectively evaluated for impairment					433,653	242,127
Loans acquired with deteriorated credit quality					6,774	6,557
Loans and Leases Receivable, Gross, Total					445,747	253,713
Consumer \| Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	1,385	827	930	749
Provision for loan losses	(92)	326	678	479
Charge-offs	(105)	(91)	(536)	(225)
Recoveries	81	20	197	79
Ending balance	1,269	1,082	1,269	1,082
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans collectively evaluated for impairment					31	23
Non-impaired loans collectively evaluated for impairment					1,086	877
Loans acquired with deteriorated credit quality					152	30
Total	1,385	827	930	749	1,269	930
Recorded investment (loan balance) at December 31, 2014:
Impaired loans collectively evaluated for impairment					277	213
Non-impaired loans collectively evaluated for impairment					342,586	269,492
Loans acquired with deteriorated credit quality					175	312
Loans and Leases Receivable, Gross, Total					343,038	270,017
Lease financing \| Other loan portfolio
Changes in allowance for loan losses :
Beginning balance	1,138	1,075	1,513	588
Provision for loan losses	(11)	(87)	(80)	836
Charge-offs	(102)	(154)	(658)	(632)
Recoveries	32	49	282	91
Ending balance	1,057	883	1,057	883
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment					115	285
Loans collectively evaluated for impairment					71	71
Non-impaired loans collectively evaluated for impairment					871	1,157
Total	$ 1,138	$ 1,075	$ 1,513	$ 588	1,057	1,513
Recorded investment (loan balance) at December 31, 2014:
Impaired loans individually evaluated for impairment					420	670
Impaired loans collectively evaluated for impairment					642	661
Non-impaired loans collectively evaluated for impairment					199,784	190,148
Loans and Leases Receivable, Gross, Total					$ 200,846	$ 191,479

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Servicing Assets at Fair Value [Line Items]
Total loans serviced for others	$ 5,949,388	$ 5,644,509
Commercial FHA Mortgage Loans
Servicing Assets at Fair Value [Line Items]
Total loans serviced for others	3,895,455	3,811,066
Residential mortgage loans
Servicing Assets at Fair Value [Line Items]
Total loans serviced for others	$ 2,053,933	$ 1,833,443

MORTGAGE SERVICING RIGHTS - Changes in MSR (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Mortgage servicing rights:
Balance, beginning of period	$ 75,705	$ 68,395	$ 71,710	$ 67,218
Balance, end of period	59,836	71,349	59,836	71,349
Valuation allowances:
Balance, beginning of period	5,428	5,587	3,702	567
Additions	104	1,073	1,942	6,301
Reductions			(112)	(208)
Balance, end of period	3,537	6,660	3,537	6,660
Mortgage servicing rights, net	56,299	64,689	56,299	64,689
Fair Value	56,299	64,689	56,299	64,689	$ 70,277	$ 68,008	$ 62,960	$ 66,700
Loss on mortgage service rights held for sale	(3,617)		(3,617)
Servicing Rights Held For Sale	10,618		10,618
Commercial FHA Mortgage Loans
Mortgage servicing rights:
Servicing rights capitalized	1,432	3,506	5,020	5,777
Amortization	(650)	(592)	(1,928)	(1,741)
Residential mortgage loans
Mortgage servicing rights:
Payments to Acquire Mortgage Servicing Rights (MSR)			1,933
Servicing rights transferred to held for sale-residential mortgage loans	(16,229)		(16,229)
Servicing rights capitalized	435	1,125	1,656	2,764
Amortization	(857)	$ (1,085)	(2,326)	$ (2,669)
Valuation allowances:
Servicing rights transferred to held for sale-residential mortgage loans	1,995		$ 1,995
Servicing asset transferred to mortgage servicing rights held for sale after net of valuation allowance	$ 14,200

MORTGAGE SERVICING RIGHTS - Summary of key assumptions (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Commercial FHA Mortgage Loans
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Servicing Fee	0.13%	0.13%
Interest Rate	3.67%	3.72%
Remaining Years to Maturity	30 years 3 months 18 days	30 years 2 months 12 days
Prepayment Rate	8.25%	8.31%
Servicing Cost	1000.00%	1000.00%
Commercial FHA Mortgage Loans \| Maximum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	12.00%	13.00%
Commercial FHA Mortgage Loans \| Minimum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	10.00%	10.00%
Residential mortgage loans
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Servicing Fee	0.26%	0.26%
Interest Rate	3.93%	3.89%
Remaining Years to Maturity	22 years 7 months 6 days	24 years 2 months 12 days
Prepayment Rate	11.52%	9.72%
Servicing Cost	67.00%	60.00%
Residential mortgage loans \| Maximum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	11.00%	11.00%
Residential mortgage loans \| Minimum
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rate	9.00%	9.00%

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jun. 09, 2017	Mar. 28, 2017	Sep. 30, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill			$ 97,351	$ 48,836
CedarPoint
Goodwill [Line Items]
Goodwill		$ 2,400
Amount of increase in goodwill		$ 2,400
Centrue
Goodwill [Line Items]
Goodwill	$ 46,087
Amount of increase in goodwill	$ 46,100

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands				3 Months Ended		9 Months Ended
	Jun. 09, 2017	Mar. 28, 2017	Nov. 10, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite-lived intangible assets
Gross Carrying Amount				$ 39,083		$ 39,083		$ 26,013
Accumulated Amortization				(21,117)		(21,117)		(18,826)
Total				17,966		17,966		7,187
Amortization of intangible assets				1,187	$ 514	2,291	$ 1,613
Estimated amortization expense of intangible assets
Total				17,966		17,966		7,187
Core deposits
Finite-lived intangible assets
Gross Carrying Amount				31,612		31,612		20,542
Accumulated Amortization				(17,998)		(17,998)		(16,181)
Total				13,614		13,614		4,361
Estimated amortization expense of intangible assets
Total				13,614		13,614		4,361
Customer relationship
Finite-lived intangible assets
Gross Carrying Amount				7,471		7,471		5,471
Accumulated Amortization				(3,119)		(3,119)		(2,645)
Total				4,352		4,352		2,826
Estimated amortization expense of intangible assets
Total				$ 4,352		$ 4,352		$ 2,826
Sterling \| Customer relationship
Finite-lived intangible assets
Intangible assets			$ 2,300
Amortization period			20 years
CedarPoint \| Customer relationship
Finite-lived intangible assets
Intangible assets		$ 2,000
Amortization period		12 years
Centrue
Finite-lived intangible assets
Intangible assets	$ 11,070
Centrue \| Core deposits
Finite-lived intangible assets
Intangible assets	$ 11,100
Amortization period	8 years

DERIVATIVE INSTRUMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
DERIVATIVE INSTRUMENTS (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Net (losses) gains recognized on derivative instruments	$ 1,100,000	$ 5,200,000	$ 48,000,000,000	$ 527,000,000,000
Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	687,225,000		687,225,000		$ 566,147,000
Fair value of asset derivatives	6,426,000		6,426,000		6,378,000
Interest rate lock commitments \| Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	337,280,000		337,280,000		264,359,000
Fair value of asset derivatives	6,421,000		6,421,000		6,253,000
Forward commitments to sell mortgage-backed securities \| Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	349,945,000		349,945,000		301,788,000
Fair value of asset derivatives	5,000		5,000		$ 125,000
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	10,100,000		10,100,000
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	121,000		121,000
Interest rate swap contracts \| Other liabilities.
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value of liability derivatives	$ 121,000		$ 121,000

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Classification of deposits
Non-interest bearing demand	$ 674,118	$ 562,333
Interest bearing:
Checking	800,649	656,248
Money market	633,844	399,851
Savings	278,977	166,910
Time	726,879	619,024
Total deposits	$ 3,114,467	$ 2,404,366

SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Outstanding at period-end	$ 153,443	$ 131,557
Average amount outstanding	157,388	130,228
Maximum amount outstanding at any month end	$ 183,327	$ 168,369
Weighted average interest rate:
During period	0.22%	0.23%
End of period	0.23%	0.21%
Short-term Debt, Other Disclosures [Abstract]
Federal funds lines of credit	$ 55,000
Line of credit	0	$ 0
Loans and Leases Receivable, Gross, Carrying Amount, Commercial	1,630,000	1,180,000
Commercial real estate
Short-term Debt, Other Disclosures [Abstract]
Loans and Leases Receivable, Gross, Carrying Amount, Commercial	31,500	43,300
Securities sold under repurchase agreement
Short-term Debt, Other Disclosures [Abstract]
Investment securities pledged/collateralized for secured borrowings	185,700	140,000
Federal Reserve Discount Window
Short-term Debt, Other Disclosures [Abstract]
Line of credit	$ 23,200	$ 35,100

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
	May 25, 2017	Sep. 30, 2017	Dec. 31, 2016
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings		$ 488,870	$ 237,518
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued		2,636
Preferred stock, par value		$ 2	$ 2
Line of credit		$ 55,000
Advances		0	$ 0
Principal payment on term loan		1,400
Qualifying collateralized loans		$ 1,630,000	$ 1,180,000
Revolving Credit Facility [Member] \| Maximum
Federal Home Loan Bank Advances, Interest Rate Information
Line of credit	$ 10,000
LIBOR \| Revolving Credit Facility [Member]
Federal Home Loan Bank Advances, Interest Rate Information
Variable rate basis	one-month LIBOR
Basis spread on variable rate	2.00%
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 \| Series G Preferred Stock
Federal Home Loan Bank Advances, Interest Rate Information
Long term debt		$ 181
Obligations under capital leases ? implicit interest rate of 1.70% ? maturing through July 2018 \| Midland States Bank
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings		6	$ 18
Term loan
Federal Home Loan Bank Advances, Interest Rate Information
Face amount	$ 40,000
Term loan \| LIBOR
Federal Home Loan Bank Advances, Interest Rate Information
Variable rate basis	one-month LIBOR
Basis spread on variable rate	2.25%
Term loan \| Midland States Bancorp, Inc
Federal Home Loan Bank Advances, Interest Rate Information
Long term debt		$ 38,539
Term loan \| Midland States Bancorp, Inc \| LIBOR
Federal Home Loan Bank Advances, Interest Rate Information
Basis spread on variable rate		2.25%
Interest rate during the period		3.50%
Fixed Rate Term Loan \| Midland States Bank
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings		$ 411,144	237,500
Fixed rate, fixed term maturing through June 2021 \| Midland States Bank
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings		$ 176,000	$ 112,500
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		1.28%	1.00%
Putable fixed rate loan maturing through August 2023 \| Midland States Bank
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings		$ 235,000	$ 125,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		1.10%	0.79%
Variable rate, fixed term maturing through March 2018 \| Midland States Bank
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Total FHLB advances and other borrowings		$ 39,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		0.85%

SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	9 Months Ended
SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Subordinated Borrowing [Line Items]
Carrying amount	$ 54,581	$ 54,508
Subordinate debt, $40,325 maturing June 18, 2025
Subordinated Borrowing [Line Items]
Fixed interest rate	6.00%
Face amount	$ 40,325
Carrying amount	$ 39,783	39,729
Duration with fixed interest rate	5 years
Subordinate debt, $40,325 maturing June 18, 2025 \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)	4.35%
Variable rate basis	three month LIBOR
Subordinate debt, $15,000 maturing June 18, 2025
Subordinated Borrowing [Line Items]
Fixed interest rate	6.50%
Face amount	$ 15,000
Carrying amount	$ 14,798	$ 14,779

TRUST PREFERRED DEBNTURES (Details) - USD ($)	9 Months Ended
TRUST PREFERRED DEBNTURES (Details) - USD ($)	Sep. 30, 2017	Jun. 09, 2017	Dec. 31, 2016	Jun. 05, 2013	Jun. 07, 2007	Nov. 30, 2006	Apr. 30, 2004	Mar. 26, 2004
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 45,267,000		$ 37,405,000
Centrue
TRUST PREFERRED DEBENTURES
Book value of subordinated debentures		$ 10,000,000
Liquidation amount per security							$ 1,000
Number of preferred securities issued							10,000
Fair value of subordinated debentures		$ 7,600,000
Centrue Bank
TRUST PREFERRED DEBENTURES
Trust preferred debentures	7,587,000
Trust preferred debentures maturing January 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 2,043,000		$ 1,996,000
Trust preferred debentures maturing January 23, 2034 \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Face amount				$ 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%
Interest rate (as a percent)	4.16%		3.74%
Trust preferred debentures maturing April 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 9,959,000		$ 9,957,000
Trust preferred debentures maturing April 23, 2034 \| Midland Trust
TRUST PREFERRED DEBENTURES
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%
Interest rate (as a percent)	4.06%		3.63%
Trust preferred debentures maturing December 31, 2036
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 13,253,000		$ 13,141,000
Trust preferred debentures maturing December 31, 2036 \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Face amount						$ 20,000,000
Trust preferred debentures maturing December 31, 2036 \| LSHC Trust III \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.75%
Interest rate (as a percent)	3.07%		2.71%
Trust preferred debentures maturing September 6, 2037
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 12,425,000		$ 12,311,000
Trust preferred debentures maturing September 6, 2037 \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Face amount					$ 20,000,000
Trust preferred debentures maturing September 6, 2037 \| LSHC Trust IV \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.47%
Interest rate (as a percent)	2.79%		2.42%
Trust preferred debentures maturing April 22, 2034 \| Centrue Bank
TRUST PREFERRED DEBENTURES
Face amount							$ 10,000
Trust preferred debentures maturing April 22, 2034 \| Centrue Bank \| LIBOR
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.65%
Interest rate (as a percent)	3.97%
Other assets \| Centrue Bank
TRUST PREFERRED DEBENTURES
Company's investment in the common stock of trust							$ 310,000

PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 09, 2017	Sep. 30, 2017
Fair value of preferred stock issued		$ 3,015
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) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 2,036	$ 8,051	$ 14,065	$ 19,959
Preferred dividends declared	(83)		(102)
Amortization of preferred stock premium	56		56
Net income available to common shareholders	2,009	8,051	14,019	19,959
Common shareholder dividends	(3,818)	(2,773)	(10,100)	(7,022)
Unvested restricted stock award dividends	(19)	(12)	(59)	(35)
Undistributed earnings to unvested restricted stock awards		(26)	(21)	(69)
Undistributed earnings to common shareholders	(1,828)	5,240	3,839	12,833
Basic
Distributed earnings to common shareholders	3,818	2,773	10,100	7,022
Undistributed earnings to common shareholders	(1,828)	5,240	3,839	12,833
Net income	2,009	8,051	14,019	19,959
Total common shareholders earnings	1,990	8,013	13,939	19,855
Diluted
Distributed earnings to common shareholders	3,818	2,773	10,100	7,022
Undistributed earnings to common shareholders	(1,828)	5,240	3,839	12,833
Net income	2,009	8,051	14,019	19,959
Add back:
Undistributed earnings reallocated from unvested restricted stock awards			1	1
Total common shareholders earnings, diluted	$ 1,990	$ 8,013	$ 13,940	$ 19,856
Weighted average common shares outstanding, basic (In shares)	19,265,409	15,578,703	17,274,746	13,637,997
Weighted average common shares outstanding, diluted (In shares)	19,704,217	15,858,273	17,797,235	13,902,664
Basic earnings per common share (In dollars per share)	$ 0.10	$ 0.51	$ 0.81	$ 1.46
Diluted earnings per common share (In dollars per share)	$ 0.10	$ 0.51	$ 0.78	$ 1.43
Options and warrants
Add back:
Options and warrants	438,808	279,570	522,489	264,667

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Available-for-sale Securities	$ 396,985	$ 246,339
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	10,618
U.S. Treasury securities
Assets
Available-for-sale Securities	47,907	75,901
Government sponsored entity debt securities
Assets
Available-for-sale Securities	19,389	7,688
State and municipal securities
Assets
Available-for-sale Securities	39,716	25,274
Corporate securities
Assets
Available-for-sale Securities	57,307	47,405
Equity securities
Assets
Available-for-sale Securities	2,812
Level 1
Assets
Available-for-sale Securities	47,907	75,901
Level 2
Assets
Available-for-sale Securities	344,329	162,957
Loans held for sale	35,874	70,565
Level 2 \| Interest rate lock commitments
Assets
Derivative Assets	6,421	6,253
Level 2 \| Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets	5	125
Level 2 \| Interest rate swap contracts
Assets
Derivative Assets	121
Liabilities
Derivative liability	121
Level 3
Assets
Available-for-sale Securities	4,749	7,481
Recurring member
Assets
Loans held for sale	35,874	70,565
Total Assets	439,406	323,282
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	10,618
Assets held for sale	2,858
Recurring member \| Interest rate lock commitments
Assets
Derivative Assets	6,421	6,253
Recurring member \| Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets	5	125
Recurring member \| Interest rate swap contracts
Assets
Derivative Assets	121
Liabilities
Derivative liability	121
Recurring member \| U.S. Treasury securities
Assets
Available-for-sale Securities	47,907	75,901
Recurring member \| Government sponsored entity debt securities
Assets
Available-for-sale Securities	19,389	7,688
Recurring member \| Agency mortgage-backed securities
Assets
Available-for-sale Securities	229,854	90,070
Recurring member \| Non-agency mortgage-backed securities
Assets
Available-for-sale Securities		1
Recurring member \| State and municipal securities
Assets
Available-for-sale Securities	39,716	25,274
Recurring member \| Corporate securities
Assets
Available-for-sale Securities	57,307	47,405
Recurring member \| Equity securities
Assets
Available-for-sale Securities	2,812
Recurring member \| Level 1
Assets
Total Assets	47,907	75,901
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Available-for-sale Securities	47,907	75,901
Recurring member \| Level 2
Assets
Loans held for sale	35,874	70,565
Total Assets	386,750	239,900
Assets measured at fair value on a non-recurring basis:
Assets held for sale	2,858
Recurring member \| Level 2 \| Interest rate lock commitments
Assets
Derivative Assets	6,421	6,253
Recurring member \| Level 2 \| Forward commitments to sell mortgage-backed securities
Assets
Derivative Assets	5	125
Recurring member \| Level 2 \| Interest rate swap contracts
Assets
Derivative Assets	121
Liabilities
Derivative liability	121
Recurring member \| Level 2 \| Government sponsored entity debt securities
Assets
Available-for-sale Securities	19,389	7,688
Recurring member \| Level 2 \| Agency mortgage-backed securities
Assets
Available-for-sale Securities	229,854	90,070
Recurring member \| Level 2 \| State and municipal securities
Assets
Available-for-sale Securities	39,716	25,274
Recurring member \| Level 2 \| Corporate securities
Assets
Available-for-sale Securities	52,558	39,925
Recurring member \| Level 2 \| Equity securities
Assets
Available-for-sale Securities	2,812
Recurring member \| Level 3
Assets
Total Assets	4,749	7,481
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights held for sale	10,618
Recurring member \| Level 3 \| Non-agency mortgage-backed securities
Assets
Available-for-sale Securities		1
Recurring member \| Level 3 \| Corporate securities
Assets
Available-for-sale Securities	4,749	7,480
Non recurring member
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	56,299
Impaired loans	18,311	10,202
Other real estate owned		165
Assets held for sale		1,550
Non recurring member \| Level 2
Assets measured at fair value on a non-recurring basis:
Impaired loans	6,227	6,635
Other real estate owned		165
Assets held for sale		1,550
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Mortgage servicing rights	56,299
Impaired loans	$ 12,084	$ 3,567

FAIR VALUE OF FINANCIAL INSTRUMENTS - Losses Recognized on Assets, Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights			$ 1,830	$ 6,093
Mortgage servicing rights held for sale	$ 3,617		3,617
Non recurring member
Losses recognized on assets measured on non-recurring basis
Mortgage servicing rights	104	$ 1,073	1,830	6,093
Mortgage servicing rights held for sale	3,617		3,617
Impaired loans	1	144	564	310
Other real estate owned		4	180	219
Assets held for sale			1,130
Total loss on assets measured on a nonrecurring basis	$ 3,722	$ 1,221	$ 7,321	$ 6,622

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Corporate securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 4,740,000	$ 9,765,000	$ 7,480,000
Transferred from Level 2	0		0	$ 6,749,000
Transferred to Level 2		(2,000,000)		(2,000,000)
Purchases of investment securities recognized as Level 3				3,000,000
Total realized in earnings	54,000	(93,000)	235,000	(251,000)
Total unrealized in other comprehensive income		(294,000)	242,000	(296,000)
Net settlements (principal and interest)	(45,000)	(84,000)	(3,208,000)	(224,000)
Ending balance	$ 4,749,000	7,480,000	4,749,000	7,480,000
Non-agency mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		2,000	1,000
Transferred from Level 2				2,000
Net settlements (principal and interest)		(1,000)	$ (1,000)	(1,000)
Ending balance		$ 1,000		$ 1,000

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Investment securities available for sale	$ 396,985	$ 246,339
Investment securities held to maturity	75,142	81,952
Accrued interest receivable	11,673	8,202
Liabilities
Trust preferred debentures	45,267	37,405
Accrued interest payable	2,355	1,045
Level 1
Assets
Cash and due from banks	180,807	189,543
Federal funds sold	2,765	1,173
Investment securities available for sale	47,907	75,901
Level 2
Assets
Investment securities available for sale	344,329	162,957
Investment securities held to maturity	75,142	81,952
Loans held for sale	35,874	70,565
Accrued interest receivable	11,673	8,202
Liabilities
Deposits	3,112,541	2,404,231
Short-term borrowings	153,443	131,557
FHLB and other borrowings	488,196	236,736
Subordinated debt	50,055	49,692
Trust preferred debentures	43,114	33,054
Accrued interest payable	2,355	1,045
Level 3
Assets
Investment securities available for sale	4,749	7,481
Loans, net	3,142,910	2,305,206
Carrying value
Assets
Cash and due from banks	180,807	189,543
Federal funds sold	2,765	1,173
Investment securities available for sale	396,985	246,339
Investment securities held to maturity	70,867	78,672
Nonmarketable equity securities	34,391	19,485
Loans, net	3,141,111	2,305,114
Loans held for sale	35,874	70,565
Accrued interest receivable	11,673	8,202
Liabilities
Deposits	3,114,467	2,404,366
Short-term borrowings	153,443	131,557
FHLB and other borrowings	488,870	237,518
Subordinated debt	54,581	54,508
Trust preferred debentures	45,267	37,405
Accrued interest payable	2,355	1,045
Fair value
Assets
Cash and due from banks	180,807	189,543
Federal funds sold	2,765	1,173
Investment securities available for sale	396,985	246,339
Investment securities held to maturity	75,142	81,952
Loans, net	3,142,910	2,305,206
Loans held for sale	35,874	70,565
Accrued interest receivable	11,673	8,202
Liabilities
Deposits	3,112,541	2,404,231
Short-term borrowings	153,443	131,557
FHLB and other borrowings	488,196	236,736
Subordinated debt	50,055	49,692
Trust preferred debentures	43,114	33,054
Accrued interest payable	2,355	1,045
Interest rate lock commitments \| Level 2
Assets
Derivative Assets	6,421	6,253
Interest rate lock commitments \| Carrying value
Assets
Derivative Assets	6,421	6,253
Interest rate lock commitments \| Fair value
Assets
Derivative Assets	6,421	6,253
Forward commitments to sell mortgage-backed securities \| Level 2
Assets
Derivative Assets	5	125
Forward commitments to sell mortgage-backed securities \| Carrying value
Assets
Derivative Assets	5	125
Forward commitments to sell mortgage-backed securities \| Fair value
Assets
Derivative Assets	5	$ 125
Interest rate swap contracts \| Level 2
Assets
Derivative Assets	121
Liabilities
Derivative Liability	121
Interest rate swap contracts \| Carrying value
Assets
Derivative Assets	121
Liabilities
Derivative Liability	121
Interest rate swap contracts \| Fair value
Assets
Derivative Assets	121
Liabilities
Derivative Liability	$ 121

FAIR VALUE OF FINANCIAL INSTRUMENTS- Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Corporate securities
Fair value, additional information
AFS transferred to Level 3	$ 0		$ 0	$ 6,749,000
Transferred to Level 2		$ 2,000,000		2,000,000
Corporate securities \| Minimum
Fair value, additional information
Discount rate (negative)			2.0
Corporate securities \| Maximum
Fair value, additional information
Discount rate			2.50%
Corporate securities \| Weighted average
Fair value, additional information
Discount rate			1.50%
Non-agency mortgage-backed securities
Fair value, additional information
AFS transferred to Level 3				$ 2,000

COMMITMENTS, CONTINGENCIES AND CREDIT RISK - Maturities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Anticipated material loss	$ 0		$ 0
Losses as a result of make whole requests and loan repurchases	17,000,000	$ 0	17,000,000	$ 83,000,000
Liability for unresolved repurchase demands	366,000		366,000		$ 329,000
Commitments to extend credit
Loan commitments	605,419,000		605,419,000		483,345,000
Financial guarantees - standby letters of credit
Loan commitments	$ 71,616,000		$ 71,616,000		$ 89,233,000

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 36,765	$ 27,265	$ 93,626	$ 79,294
Provision for loan losses	1,489	1,392	3,480	3,146
Noninterest income	15,403	14,937	45,364	41,572
Noninterest expense	48,363	28,657	116,805	87,199
Income (loss) before income taxes (benefit)	2,316	12,153	18,705	30,521
Income taxes (benefit)	280	4,102	4,640	10,562
Net income	2,036	8,051	14,065	19,959
Total assets	4,347,761	3,247,727	4,347,761	3,247,727	$ 3,233,723
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	38,598	28,394	97,580	82,939
Provision for loan losses	1,489	1,392	3,480	3,146
Noninterest income	8,571	9,714	24,339	21,347
Noninterest expense	42,425	23,640	99,214	69,784
Income (loss) before income taxes (benefit)	3,255	13,076	19,225	31,356
Income taxes (benefit)	996	4,573	4,870	9,348
Net income	2,259	8,503	14,355	22,008
Total assets	4,370,600	3,252,421	4,370,600	3,252,421
Commercial FHA Origination and Servicing
Segment Reporting Information [Line Items]
Net interest income (expense)	(79)	215	325	712
Noninterest income	3,966	3,557	15,189	19,212
Noninterest expense	3,910	3,511	11,639	12,203
Income (loss) before income taxes (benefit)	(23)	261	3,875	7,721
Income taxes (benefit)	(9)	104	1,550	3,088
Net income	(14)	157	2,325	4,633
Total assets	121,514	100,516	121,514	100,516
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(1,754)	(1,344)	(4,279)	(4,357)
Noninterest income	2,866	1,666	5,836	1,013
Noninterest expense	2,028	1,506	5,952	5,212
Income (loss) before income taxes (benefit)	(916)	(1,184)	(4,395)	(8,556)
Income taxes (benefit)	(707)	(575)	(1,780)	(1,874)
Net income	(209)	(609)	(2,615)	(6,682)
Total assets	$ (144,353)	$ (105,210)	$ (144,353)	$ (105,210)

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended		9 Months Ended
RELATED PARTY TRANSACTIONS (Details)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) item	Sep. 30, 2016 USD ($)
One Of The Board Of Directors
Related Party Transaction [Line Items]
Payments to related party	$ 116,000
Related Party Operating Lease Member
Related Party Transaction [Line Items]
Number of the bank's full-service branch facilities \| item			3
Payments to related party	$ 166,000	$ 165,000	$ 553,000	$ 540,000

SUBSEQUENT EVENTS (Details)			9 Months Ended
SUBSEQUENT EVENTS (Details)	Oct. 16, 2017 USD ($) location $ / shares shares	Oct. 13, 2017 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)
Subsequent Event [Line Items]
Total assets			$ 4,347,761,000	$ 3,233,723,000	$ 3,247,727,000
Subordinated Debentures Maturing October 15 2027 \| LIBOR
Subsequent Event [Line Items]
Variable rate basis			three-month LIBOR
Variable interest rate (as a percent)		422.90%
Subsequent Events
Subsequent Event [Line Items]
Share Price \| $ / shares	$ 33.10
Subsequent Events \| Subordinated Debentures Maturing October 15 2027
Subsequent Event [Line Items]
Face amount		$ 40,000,000
Interest rate		6.25%
Period of debentures		5 years
Finance cost		$ 600,000
Subsequent Events \| Alpine
Subsequent Event [Line Items]
Total consideration	$ 181,000,000
Cash transferred	$ 33,300,000
Number of service banking centers acquired \| location	19
Total assets	$ 1,280,000,000
Loans	830,200,000
Deposits	$ 1,140,000,000.0000
Subsequent Events \| Alpine \| Common stock
Subsequent Event [Line Items]
Shares issued \| shares	4,463,200