Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HomeStreet, Inc. | |
Entity Central Index Key | 1,518,715 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,884,028.6 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents (including interest-earning instruments of $23,107 and $34,615) | $ 54,447 | $ 53,932 |
Investment securities (includes $884,266 and $993,990 carried at fair value) | 936,522 | 1,043,851 |
Loans held for sale (includes $680,959 and $656,334 carried at fair value) | 784,556 | 714,559 |
Loans held for investment (net of allowance for loan losses of $36,136 and $34,001; includes $5,134 and $17,988 carried at fair value) | 4,156,424 | 3,819,027 |
Mortgage servicing rights (includes $236,621 and $226,113 carried at fair value) | 258,222 | 245,860 |
Other real estate owned | 4,597 | 5,243 |
Federal Home Loan Bank stock, at cost | 41,769 | 40,347 |
Premises and equipment, net | 101,797 | 77,636 |
Goodwill | 22,175 | 22,175 |
Other assets | 226,048 | 221,070 |
Total assets | 6,586,557 | 6,243,700 |
Liabilities: | ||
Deposits | 4,747,771 | 4,429,701 |
Federal Home Loan Bank advances | 867,290 | 868,379 |
Accounts payable and other liabilities | 190,421 | 191,189 |
Long-term debt | 125,234 | 125,147 |
Total liabilities | 5,930,716 | 5,614,416 |
Commitments and contingencies (Note 8) | ||
Shareholders’ equity: | ||
Preferred stock, no par value, authorized 10,000 shares, issued and outstanding, 0 shares and 0 shares | 0 | 0 |
Common stock, no par value, authorized 160,000,000 shares, issued and outstanding, 26,874,871 shares and 26,800,183 shares | 511 | 511 |
Additional paid-in capital | 337,515 | 336,149 |
Retained earnings | 323,228 | 303,036 |
Accumulated other comprehensive loss | (5,413) | (10,412) |
Total shareholders' equity | 655,841 | 629,284 |
Total liabilities and shareholders' equity | $ 6,586,557 | $ 6,243,700 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Interest-bearing instruments | $ 23,107 | $ 34,615 |
Investment securities held at fair value (AFS) | 884,266 | 993,990 |
Fair value of loans held for sale | 680,959 | 656,334 |
Allowance for losses on loans held for investment | 36,136 | 34,001 |
Fair value of loans held for investment | 5,134 | 17,988 |
Fair value of single family MSR | $ 236,621 | $ 226,113 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 26,874,871 | 26,800,183 |
Common stock, shares outstanding | 26,874,871 | 26,800,183 |
Interim Consolidated Statements
Interim Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income: | ||||
Loans | $ 51,198 | $ 47,262 | $ 100,704 | $ 89,996 |
Investment securities | 5,419 | 4,002 | 11,051 | 7,055 |
Other | 125 | 27 | 261 | 294 |
Total interest income | 56,742 | 51,291 | 112,016 | 97,345 |
Interest expense: | ||||
Deposits | 5,867 | 4,449 | 11,490 | 8,018 |
Federal Home Loan Bank advances | 2,368 | 1,462 | 4,769 | 2,881 |
Federal funds purchased and securities sold under agreements to repurchase | 5 | 0 | 5 | 0 |
Long-term debt | 1,514 | 823 | 2,993 | 1,134 |
Other | 120 | 75 | 240 | 139 |
Total interest expense | 9,874 | 6,809 | 19,497 | 12,172 |
Net interest income | 46,868 | 44,482 | 92,519 | 85,173 |
Provision for credit losses | 500 | 1,100 | 500 | 2,500 |
Net interest income after provision for credit losses | 46,368 | 43,382 | 92,019 | 82,673 |
Noninterest income: | ||||
Net gain on loan origination and sale activities | 65,908 | 85,630 | 126,189 | 146,893 |
Mortgage servicing income | 8,764 | 12,703 | 18,003 | 20,735 |
Income from WMS Series LLC | 406 | 1,164 | 591 | 1,300 |
Depositor and other retail banking fees | 1,811 | 1,652 | 3,467 | 3,247 |
Insurance agency commissions | 501 | 370 | 897 | 764 |
Gain on sale of investment securities available for sale | 551 | 62 | 557 | 97 |
Other | 3,067 | 895 | 5,765 | 1,148 |
Total noninterest income | 81,008 | 102,476 | 155,469 | 174,184 |
Noninterest expense: | ||||
Salaries and related costs | 76,390 | 75,167 | 147,698 | 142,451 |
General and administrative | 15,872 | 16,739 | 33,000 | 32,261 |
Amortization of core deposit intangibles | 493 | 525 | 1,007 | 1,057 |
Legal | 150 | 605 | 310 | 1,048 |
Consulting | 771 | 1,177 | 1,829 | 2,849 |
Federal Deposit Insurance Corporation assessments | 697 | 784 | 1,521 | 1,500 |
Occupancy | 8,880 | 7,513 | 17,089 | 14,668 |
Information services | 8,172 | 8,447 | 15,820 | 15,981 |
Net (benefit) cost from operation and sale of other real estate owned | (181) | 74 | (156) | 569 |
Total noninterest expense | 111,244 | 111,031 | 218,118 | 212,384 |
Income before income taxes | 16,132 | 34,827 | 29,370 | 44,473 |
Income tax expense | 4,923 | 13,078 | 9,178 | 16,317 |
NET INCOME | $ 11,209 | $ 21,749 | $ 20,192 | $ 28,156 |
Basic income per share (in dollars per share) | $ 0.42 | $ 0.88 | $ 0.75 | $ 1.16 |
Diluted income per share (in dollars per share) | $ 0.41 | $ 0.87 | $ 0.75 | $ 1.15 |
Basic weighted average number of shares outstanding (in shares) | 26,866,230 | 24,708,375 | 26,843,813 | 24,192,441 |
Diluted weighted average number of shares outstanding (in shares) | 27,084,608 | 24,911,919 | 27,071,028 | 24,394,648 |
Interim Consolidated Statement5
Interim Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 11,209 | $ 21,749 | $ 20,192 | $ 28,156 |
Unrealized gain on investment securities available for sale: | ||||
Unrealized holding gain arising during the period, net of tax expense of $1,848 and $3,030 for the three months ended June 30, 2017 and 2016, and $2,887 and $6,602 for the six months ended June 30, 2017 and 2016, respectively | 3,431 | 5,627 | 5,361 | 12,260 |
Reclassification adjustment for net gains included in net income, net of tax expense of $193 and $22 for the three months ended June 30, 2017 and 2016 and, $195 and $34 for the six months ended June 30, 2017 and 2016, respectively | (358) | (40) | (362) | (63) |
Other comprehensive income | 3,073 | 5,587 | 4,999 | 12,197 |
Comprehensive income | $ 14,282 | $ 27,336 | $ 25,191 | $ 40,353 |
Interim Consolidated Statement6
Interim Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense on unrealized holding gain on securities | $ 1,848 | $ 3,030 | $ 2,887 | $ 6,602 |
Tax expense on reclassification adjustment for net gain on securities included in net income | $ 193 | $ 22 | $ 195 | $ 34 |
Interim Consolidated Statement7
Interim Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2015 | $ 465,275 | $ 511 | $ 222,328 | $ 244,885 | $ (2,449) |
Common Stock, Shares, Outstanding, beginning balance at Dec. 31, 2015 | 22,076,534 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 28,156 | 28,156 | |||
Share-based compensation expense | 827 | 827 | |||
Common stock issued | 53,148 | $ 0 | 53,148 | ||
Common stock issued, shares | 2,744,815 | ||||
Other comprehensive income | 12,197 | 12,197 | |||
Ending balance at Jun. 30, 2016 | 559,603 | $ 511 | 276,303 | 273,041 | 9,748 |
Common Stock, Shares, Outstanding, ending balance at Jun. 30, 2016 | 24,821,349 | ||||
Beginning balance at Mar. 31, 2016 | 4,161 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 21,749 | ||||
Other comprehensive income | 5,587 | 5,587 | |||
Ending balance at Jun. 30, 2016 | 559,603 | $ 511 | 276,303 | 273,041 | 9,748 |
Common Stock, Shares, Outstanding, ending balance at Jun. 30, 2016 | 24,821,349 | ||||
Beginning balance at Dec. 31, 2016 | $ 629,284 | $ 511 | 336,149 | 303,036 | (10,412) |
Common Stock, Shares, Outstanding, beginning balance at Dec. 31, 2016 | 26,800,183 | 26,800,183 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 20,192 | 20,192 | |||
Share-based compensation expense | 1,211 | 1,211 | |||
Common stock issued | 155 | $ 0 | 155 | ||
Common stock issued, shares | 74,688 | ||||
Other comprehensive income | 4,999 | 4,999 | |||
Ending balance at Jun. 30, 2017 | $ 655,841 | $ 511 | 337,515 | 323,228 | (5,413) |
Common Stock, Shares, Outstanding, ending balance at Jun. 30, 2017 | 26,874,871 | 26,874,871 | |||
Beginning balance at Mar. 31, 2017 | (8,486) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 11,209 | ||||
Other comprehensive income | 3,073 | 3,073 | |||
Ending balance at Jun. 30, 2017 | $ 655,841 | $ 511 | $ 337,515 | $ 323,228 | $ (5,413) |
Common Stock, Shares, Outstanding, ending balance at Jun. 30, 2017 | 26,874,871 | 26,874,871 |
Interim Consolidated Statement8
Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 20,192 | $ 28,156 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation, amortization and accretion | 10,911 | 8,565 |
Provision for credit losses | 500 | 2,500 |
Net fair value adjustment and gain on sale of loans held for sale | (113,742) | (131,102) |
Fair value adjustment of loans held for investment | (1,203) | 1,272 |
Origination of mortgage servicing rights | (35,211) | (34,580) |
Change in fair value of mortgage servicing rights | 21,722 | 57,284 |
Net gain on sale of investment securities | (557) | (97) |
Net gain on sale of loans originated as held for investment | (297) | (793) |
Net fair value adjustment, gain on sale and provision for losses on other real estate owned | (356) | 646 |
Loss on disposal of fixed assets | 106 | 513 |
Loss on lease abandonment | 502 | 0 |
Net deferred income tax expense (benefit) | 7,510 | (7,951) |
Share-based compensation expense | 1,362 | 827 |
Origination of loans held for sale | (3,665,396) | (3,930,954) |
Proceeds from sale of loans originated as held for sale | 3,769,126 | 3,931,729 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable and other assets | (7,207) | (51,974) |
(Decrease) increase in accounts payable and other liabilities | (17,371) | 17,077 |
Net cash used in operating activities | (9,409) | (108,882) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment securities | (246,435) | (356,975) |
Proceeds from sale of investment securities | 314,633 | 11,467 |
Principal repayments and maturities of investment securities | 50,043 | 37,099 |
Proceeds from sale of other real estate owned | 2,170 | 164 |
Proceeds from sale of loans originated as held for investment | 23,780 | 39,022 |
Mortgage servicing rights purchased from others | (565) | 0 |
Capital expenditures related to other real estate owned | (57) | (32) |
Origination of loans held for investment and principal repayments, net | (420,530) | (414,089) |
Proceeds from sale of property and equipment | 0 | 1,148 |
Purchase of property and equipment | (28,789) | (12,151) |
Net cash acquired from acquisitions | 0 | 17,495 |
Net cash used in investing activities | (305,750) | (676,852) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase in deposits, net | 318,132 | 880,701 |
Proceeds from Federal Home Loan Bank advances | 4,497,700 | 7,621,460 |
Repayment of Federal Home Loan Bank advances | (4,498,700) | (7,774,960) |
Proceeds from federal funds purchased and securities sold under agreements to repurchase | 326,618 | 0 |
Repayment of federal funds purchased and securities sold under agreements to repurchase | (326,618) | 0 |
Proceeds from Federal Home Loan Bank stock repurchase | 91,939 | 123,038 |
Purchase of Federal Home Loan Bank stock | (93,362) | (117,879) |
Proceeds from debt issuance, net | 0 | 63,255 |
Proceeds from stock issuance, net | 11 | 2,664 |
Payments from equity raise | (46) | 0 |
Net cash provided by financing activities | 315,674 | 798,279 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 515 | 12,545 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of year | 53,932 | 32,684 |
End of period | 54,447 | 45,229 |
Cash paid during the period for: | ||
Interest paid | 19,757 | 14,905 |
Federal and state income taxes paid (refunded), net | (23,382) | (1,464) |
Non-cash activities: | ||
Loans held for investment foreclosed and transferred to other real estate owned | 1,125 | 1,168 |
Loans transferred from held for investment to held for sale | 113,278 | 37,648 |
Loans transferred from held for sale to held for investment | 29,809 | 7,129 |
(Reduction in) Ginnie Mae loans recognized with the right to repurchase, net | (2,358) | (2,725) |
Orange County Business Bank [Member] | ||
Assets acquired, excluding cash acquired | 0 | 165,786 |
Liabilities assumed | 0 | 141,267 |
Goodwill | 0 | 8,360 |
Common stock issued | $ 0 | $ 50,373 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: HomeStreet, Inc. and its wholly owned subsidiaries (the “Company”) is a diversified financial services company serving customers primarily in the western United States, including Hawaii. The Company is principally engaged in commercial banking, mortgage banking, and consumer/retail banking activities. The Company's consolidated financial statements include the accounts of HomeStreet, Inc. and its wholly owned subsidiaries, HomeStreet Capital Corporation and HomeStreet Bank (the “Bank”), and the Bank’s subsidiaries, HomeStreet/WMS, Inc., HomeStreet Reinsurance, Ltd., Continental Escrow Company, HS Properties, Inc., HS Evergreen Corporate Center LLC and Union Street Holdings LLC. HomeStreet Bank was formed in 1986 and is a state-chartered commercial bank. The Company’s accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Inter-company balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. These estimates that require application of management's most difficult, subjective or complex judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. Management has made significant estimates in several areas, including the fair value of assets acquired and liabilities assumed in business combinations (Note 2, Business Combinations ), allowance for credit losses (Note 4, Loans and Credit Quality ), valuation of residential mortgage servicing rights and loans held for sale (Note 7, Mortgage Banking Operations ), valuation of certain loans held for investment (Note 4, Loans and Credit Quality ), valuation of investment securities (Note 3, Investment Securities ), and valuation of derivatives (Note 6, Derivatives and Hedging Activities ). We have reclassified certain prior period amounts to conform to the current period presentation. These reclassifications are immaterial and have no effect on net income, comprehensive income, cash flows, total assets or total shareholder's equity as previously reported. These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results of the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Form 10-Q. The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. The interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (“2016 Annual Report on Form 10-K”). Recent Accounting Developments In March 2017 the Financial Accounting Standards Board ('"FASB") issued Accounting Standards Update ("ASU") No. 2017-08, Receivables - Nonrefundable Fees and other Costs (Subtopic 320-20): Premium Amortization on Purchased Callable Debt Securities, or ASU 2017-08. This standard shortens the amortization period for the premium to the earliest call date to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. Adoption of ASU 2017-08 is required for fiscal years and interim periods within those fiscal years, beginning after December, 15, 2018, early adoption is permitted. The Company is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Adoption of ASU 2017-04 is required for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption being permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations Clarifying the Definition of a Business (Topic 805), for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted for transactions that occurred before the issuance date or effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance. The standard must be applied prospectively. Upon adoption, the standard will impact how we assess acquisitions (or disposals) of assets or businesses. Management does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements. On November 17, 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash: a Consensus of the FASB Emerging Issues Task Force.” This ASU requires a company’s cash flow statement to explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash, and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. This ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. Management does not anticipate that this guidance will have a material impact on its consolidated financial statements. On August 26, 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments (Topic 230) . The amendments in this ASU were issued to reduce diversity in how certain cash receipts and payments are presented and classified in the statement of cash flows in eight specific areas. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and should be applied using a retrospective transition method to each period presented. Early application was permitted upon issuance of the ASU. Management is currently evaluating the impact of this ASU but does not expect this ASU to have a material impact on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) . The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the current expected credit losses (CECL) on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments to this ASU require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in this ASU eliminate the requirement that losses be recognized only when incurred, and instead require that an entity recognize its current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The amendments to this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in this ASU should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. Management is currently evaluating the impact of this ASU and the Company expects this ASU to have a material impact on the Company’s consolidated financial statements. On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The amendments in this ASU require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. This ASU simplifies the accounting for sale and leaseback transactions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application was permitted upon issuance of the ASU. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. While we have not quantified the impact to our balance sheet, upon the adoption of this ASU we expect to report increased assets and liabilities on our Consolidated Statement of Financial Condition as a result of recognizing right-of-use assets and lease liabilities related to these leases and certain equipment under non-cancelable operating lease agreements, which currently are not on our Consolidated Statement of Financial Condition. In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value under certain circumstances and require enhanced disclosures about those investments. This ASU simplifies the impairment assessment of equity investments without readily determinable fair values. This ASU also eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The amendments in this ASU require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this ASU require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU No. 2016-01 to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU clarifies the principles for recognizing revenue from contracts with customers. On August 12, 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. On March 17, 2016, the FASB issued Accounting Standards Update 2016-08 to clarify the implementation guidance on principal versus agent considerations. We intend to adopt this new guidance on January 1, 2018. We are in the process of completing an analysis that includes (1)identification of all revenue streams included in the financial statements ; (2) of the revenue streams identified, determine which are within the scope of the pronouncement; (3) determination of size, timing and amount of revenue recognition for streams of income within the scope of this pronouncement; (4) determination of the sample size of contracts for further analysis; and (5) completion of analysis on sample of contracts to evaluate the impact of the new guidance. Based on this analysis, we are developing processes and procedures in 2017 to address the amendments of this ASU, including new disclosures. Additionally, we do not expect the implementation of this guidance to have a material impact on our consolidated financial statements. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS: Recent Acquisition Activity On November 10, 2016, the Company completed its acquisition of two branches and their related deposits in Southern California, from Boston Private Bank and Trust. The provisional application of the acquisition method of accounting resulted in goodwill of $2.3 million . On August 12, 2016, the Company completed its acquisition of certain assets and liabilities, including two branches in Lake Oswego, Oregon from The Bank of Oswego. The provisional application of the acquisition method of accounting resulted in goodwill of $19 thousand . On February 1, 2016, the Company completed its acquisition of Orange County Business Bank ("OCBB") located in Irvine, California through the merger of OCBB with and into HomeStreet Bank with HomeStreet Bank as the surviving subsidiary. The purchase price of this acquisition was $55.9 million . OCBB shareholders as of the effective time received merger consideration equal to 0.5206 shares of HomeStreet common stock, and $1.1641 in cash upon the surrender of their OCBB shares, which resulted in the issuance of 2,459,461 shares of HomeStreet common stock. The application of the acquisition method of accounting resulted in goodwill of $8.4 million . |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES: The following table sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale and held to maturity. At June 30, 2017 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 154,145 $ 1 $ (3,211 ) $ 150,935 Commercial 23,592 22 (233 ) 23,381 Municipal bonds 373,336 3,334 (3,941 ) 372,729 Collateralized mortgage obligations: Residential 187,351 273 (2,929 ) 184,695 Commercial 76,961 75 (806 ) 76,230 Corporate debt securities 30,839 61 (682 ) 30,218 U.S. Treasury securities 10,890 — (150 ) 10,740 Agency 35,457 — (119 ) 35,338 $ 892,571 $ 3,766 $ (12,071 ) $ 884,266 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,104 $ 73 $ (68 ) $ 13,109 Commercial 16,127 137 (10 ) 16,254 Collateralized mortgage obligations 3,500 — — 3,500 Municipal bonds 19,425 315 (152 ) 19,588 Corporate debt securities 100 — — 100 $ 52,256 $ 525 $ (230 ) $ 52,551 At December 31, 2016 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 181,158 $ 31 $ (4,115 ) $ 177,074 Commercial 25,896 13 (373 ) 25,536 Municipal bonds 473,153 1,333 (6,813 ) 467,673 Collateralized mortgage obligations: Residential 194,982 32 (3,813 ) 191,201 Commercial 71,870 29 (1,135 ) 70,764 Corporate debt securities 52,045 110 (1,033 ) 51,122 U.S. Treasury securities 10,882 — (262 ) 10,620 $ 1,009,986 $ 1,548 $ (17,544 ) $ 993,990 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,844 $ 71 $ (90 ) $ 13,825 Commercial 16,303 70 (64 ) 16,309 Municipal bonds 19,612 99 (459 ) 19,252 Corporate debt securities 102 — — 102 $ 49,861 $ 240 $ (613 ) $ 49,488 Mortgage-backed securities ("MBS") and collateralized mortgage obligations ("CMO") represent securities issued by government sponsored enterprises ("GSEs"). Each of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by revenues from the specific project being financed) issued by various municipal corporations. As of June 30, 2017 and December 31, 2016 , all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon external ratings where available and, where not available, based upon internal ratings which correspond to ratings as defined by Standard and Poor’s Rating Services (“S&P”) or Moody’s Investors Services (“Moody’s”). As of June 30, 2017 and December 31, 2016 , substantially all securities held had ratings available by external ratings agencies. Investment securities available for sale and held to maturity that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position. At June 30, 2017 Less than 12 months 12 months or more Total (in thousands) Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (2,952 ) $ 132,749 $ (259 ) $ 10,212 $ (3,211 ) $ 142,961 Commercial (233 ) 21,660 — — (233 ) 21,660 Municipal bonds (3,805 ) 199,291 (136 ) 8,661 (3,941 ) 207,952 Collateralized mortgage obligations: Residential (1,855 ) 129,559 (1,074 ) 23,623 (2,929 ) 153,182 Commercial (545 ) 57,142 (261 ) 9,124 (806 ) 66,266 Corporate debt securities (282 ) 14,807 (400 ) 7,137 (682 ) 21,944 U.S. Treasury securities (150 ) 10,740 — — (150 ) 10,740 Agency (119 ) 35,338 — $ — (119 ) 35,338 $ (9,941 ) $ 601,286 $ (2,130 ) $ 58,757 $ (12,071 ) $ 660,043 HELD TO MATURITY Mortgage-backed securities: Residential $ (68 ) $ 6,360 $ — $ — $ (68 ) $ 6,360 Commercial (10 ) 4,533 — — (10 ) 4,533 Municipal bonds (152 ) 10,690 — — (152 ) 10,690 $ (230 ) $ 21,583 $ — $ — $ (230 ) $ 21,583 At December 31, 2016 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (3,842 ) $ 144,240 $ (273 ) $ 9,907 $ (4,115 ) $ 154,147 Commercial (373 ) 23,798 — — (373 ) 23,798 Municipal bonds (6,813 ) 283,531 — — (6,813 ) 283,531 Collateralized mortgage obligations: Residential (3,052 ) 175,490 (761 ) 11,422 (3,813 ) 186,912 Commercial (1,005 ) 60,926 (130 ) 5,349 (1,135 ) 66,275 Corporate debt securities (472 ) 24,447 (561 ) 11,677 (1,033 ) 36,124 U.S. Treasury securities (262 ) 10,620 — — (262 ) 10,620 $ (15,819 ) $ 723,052 $ (1,725 ) $ 38,355 $ (17,544 ) $ 761,407 HELD TO MATURITY Mortgage-backed securities: Residential $ (90 ) $ 5,481 $ — $ — $ (90 ) $ 5,481 Commercial (64 ) 13,156 — — (64 ) 13,156 Municipal bonds (459 ) 11,717 — — (459 ) 11,717 $ (613 ) $ 30,354 $ — $ — $ (613 ) $ 30,354 The Company has evaluated securities available for sale that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of June 30, 2017 and December 31, 2016 . In addition, as of June 30, 2017 and December 31, 2016 , the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. The following tables present the fair value of investment securities available for sale and held to maturity by contractual maturity along with the associated contractual yield for the periods indicated below. Contractual maturities for mortgage-backed securities and collateralized mortgage obligations as presented exclude the effect of expected prepayments. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature. The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis. At June 30, 2017 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 1 0.28 % $ — — % $ 1,663 1.53 % $ 149,271 1.89 % $ 150,935 1.88 % Commercial — — 18,763 2.08 4,618 2.04 — — 23,381 2.07 Municipal bonds 508 3.96 21,843 3.15 39,867 3.07 310,511 3.76 372,729 3.65 Collateralized mortgage obligations: Residential — — — — 507 1.24 184,188 1.98 184,695 1.98 Commercial — — 10,671 1.91 14,938 2.88 50,621 2.02 76,230 2.17 Agency — — 5,072 1.90 30,266 2.24 — — 35,338 2.20 Corporate debt securities — — 7,884 2.74 8,622 3.37 13,712 3.47 30,218 3.25 U.S. Treasury securities 999 0.64 — — 9,741 1.78 — — 10,740 1.68 Total available for sale $ 1,508 1.75 % $ 64,233 2.48 % $ 110,222 2.65 % $ 708,303 2.78 % $ 884,266 2.74 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 13,109 2.96 % $ 13,109 2.95 % Commercial — — 4,533 2.04 11,721 2.69 — — 16,254 2.50 Collateralized mortgage obligations — — — — — — 3,500 1.75 3,500 1.75 Municipal bonds — — 1,167 2.92 5,435 2.79 12,986 3.40 19,588 3.20 Corporate debt securities — — — — — — 100 6.00 100 6.00 Total held to maturity $ — — % $ 5,700 2.21 % $ 17,156 2.72 % $ 29,695 3.01 % $ 52,551 2.83 % At December 31, 2016 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 1 0.29 % $ — — % $ 2,122 1.59 % $ 174,951 2.03 % $ 177,074 2.02 % Commercial — — 20,951 2.13 4,585 2.06 — — 25,536 2.11 Municipal bonds 3,479 3.30 20,939 2.94 52,043 2.55 391,212 3.08 467,673 3.02 Collateralized mortgage obligations: Residential — — — — 1,639 1.32 189,562 2.06 191,201 2.06 Commercial — — 10,860 1.84 19,273 2.74 40,631 1.91 70,764 2.12 Corporate debt securities — — 10,516 2.67 21,493 3.74 19,113 3.54 51,122 3.45 U.S. Treasury securities 999 0.64 — — 9,621 1.76 — — 10,620 1.66 Total available for sale $ 4,479 2.70 % $ 63,266 2.43 % $ 110,776 2.69 % $ 815,469 2.57 % $ 993,990 2.57 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 13,825 3.11 % $ 13,825 3.11 % Commercial — — 4,581 2.06 11,728 2.71 — — 16,309 2.53 Municipal bonds — — — — 6,450 2.73 12,802 3.31 19,252 3.11 Corporate debt securities — — — — — — 102 6.00 102 6.00 Total held to maturity $ — — % $ 4,581 2.06 % $ 18,178 2.72 % $ 26,729 3.22 % $ 49,488 2.93 % Sales of investment securities available for sale were as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Proceeds $ 312,247 $ 1,706 $ 314,633 $ 11,467 Gross gains 551 62 576 97 Gross losses — — (19 ) — The following table summarizes the carrying value of securities pledged as collateral to secure borrowings, public deposits and other purposes as permitted or required by law: (in thousands) At June 30, Federal Home Loan Bank to secure borrowings $ 203,377 Washington and California State to secure public deposits 32,495 Securities pledged to secure derivatives in a liability position 6,757 Other securities pledged 7,273 Total securities pledged as collateral $ 249,902 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little risk. There were no securities pledged under repurchase agreements at June 30, 2017 and December 31, 2016 . Tax-exempt interest income on securities available for sale totaling $2.4 million and $1.5 million for the three months ended June 30, 2017 and 2016 , respectively, and $4.9 million and $2.4 million for the six months ended June 30, 2017 and 2016 , respectively, and was recorded in the Company's consolidated statements of operations. |
Loans and Credit Quality
Loans and Credit Quality | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
LOANS AND CREDIT QUALITY | LOANS AND CREDIT QUALITY: For a detailed discussion of loans and credit quality, including accounting policies and the methodology used to estimate the allowance for credit losses, see Note 1, Summary of Significant Accounting Policies, and Note 5 , Loans and Credit Quality, within our 2016 Annual Report on Form 10-K. The Company's portfolio of loans held for investment is divided into two portfolio segments, consumer loans and commercial loans, which are the same segments used to determine the allowance for loan losses. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: single family and home equity and other loans within the consumer loan portfolio segment and commercial real estate, multifamily, construction/land development and commercial business loans within the commercial loan portfolio segment. Loans held for investment consist of the following: (in thousands) At June 30, At December 31, Consumer loans Single family (1) $ 1,148,229 $ 1,083,822 Home equity and other 414,506 359,874 1,562,735 1,443,696 Commercial loans Commercial real estate 942,122 871,563 Multifamily 780,602 674,219 Construction/land development 648,672 636,320 Commercial business 248,908 223,653 2,620,304 2,405,755 4,183,039 3,849,451 Net deferred loan fees and costs 9,521 3,577 4,192,560 3,853,028 Allowance for loan losses (36,136 ) (34,001 ) $ 4,156,424 $ 3,819,027 (1) Includes $5.1 million and $18.0 million at June 30, 2017 and December 31, 2016 , respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. Loans in the amount of $1.75 billion and $1.59 billion at June 30, 2017 and December 31, 2016 , respectively, were pledged to secure borrowings from the FHLB as part of our liquidity management strategy. Additionally, loans totaling $732.5 million and $554.7 million at June 30, 2017 and December 31, 2016 , respectively, were pledged to secure borrowings from the Federal Reserve Bank. The FHLB and Federal Reserve Bank do not have the right to sell or re-pledge these loans. Credit Risk Concentrations Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Loans held for investment are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At June 30, 2017 , we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and commercial real estate within the state of Washington, which represented 13.7% and 13.1% of the total portfolio, respectively. At December 31, 2016 we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and commercial real estate within the state of Washington, which represented 13.8% and 14.4% of the total portfolio, respectively. Credit Quality Management considers the level of allowance for loan losses to be appropriate to cover credit losses inherent within the loans held for investment portfolio as of June 30, 2017 . In addition to the allowance for loan losses, the Company maintains a separate allowance for losses related to unfunded loan commitments, and this amount is included in accounts payable and other liabilities on the consolidated statements of financial condition. Collectively, these allowances are referred to as the allowance for credit losses. For further information on the policies that govern the determination of the allowance for loan losses levels, see Note 1, Summary of Significant Accounting Policies, within our 2016 Annual Report on Form 10-K. Activity in the allowance for credit losses was as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Allowance for credit losses (roll-forward): Beginning balance $ 36,042 $ 32,423 $ 35,264 $ 30,659 Provision for credit losses 500 1,100 500 2,500 Recoveries, net of charge-offs 928 478 1,706 842 Ending balance $ 37,470 $ 34,001 $ 37,470 $ 34,001 Components: Allowance for loan losses $ 36,136 $ 32,656 $ 36,136 $ 32,656 Allowance for unfunded commitments 1,334 1,345 1,334 1,345 Allowance for credit losses $ 37,470 $ 34,001 $ 37,470 $ 34,001 Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Three Months Ended June 30, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 7,954 $ (2 ) $ 683 $ (347 ) $ 8,288 Home equity and other 6,546 (186 ) 67 429 6,856 14,500 (188 ) 750 82 15,144 Commercial loans Commercial real estate 7,036 — — 419 7,455 Multifamily 3,793 — — 266 4,059 Construction/land development 8,069 — 214 (57 ) 8,226 Commercial business 2,644 (16 ) 168 (210 ) 2,586 21,542 (16 ) 382 418 22,326 Total allowance for credit losses $ 36,042 $ (204 ) $ 1,132 $ 500 $ 37,470 Three Months Ended June 30, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 9,026 $ — $ 2 $ (734 ) $ 8,294 Home equity and other 4,852 (204 ) 87 665 5,400 13,878 (204 ) 89 (69 ) 13,694 Commercial loans Commercial real estate 5,175 — — 870 6,045 Multifamily 1,832 — — 216 2,048 Construction/land development 9,286 — 573 (490 ) 9,369 Commercial business 2,252 — 20 573 2,845 18,545 — 593 1,169 20,307 Total allowance for credit losses $ 32,423 $ (204 ) $ 682 $ 1,100 $ 34,001 Six Months Ended June 30, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,196 $ (2 ) $ 1,016 $ (922 ) $ 8,288 Home equity and other 6,153 (511 ) 353 861 6,856 14,349 (513 ) 1,369 (61 ) 15,144 Commercial loans Commercial real estate 6,680 — — 775 7,455 Multifamily 3,086 — — 973 4,059 Construction/land development 8,553 — 434 (761 ) 8,226 Commercial business 2,596 (16 ) 432 (426 ) 2,586 20,915 (16 ) 866 561 22,326 Total allowance for credit losses $ 35,264 $ (529 ) $ 2,235 $ 500 $ 37,470 Six Months Ended June 30, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,942 $ (32 ) $ 86 $ (702 ) $ 8,294 Home equity and other 4,620 (298 ) 338 740 5,400 13,562 (330 ) 424 38 13,694 Commercial loans Commercial real estate 4,847 — — 1,198 6,045 Multifamily 1,194 — — 854 2,048 Construction/land development 9,271 (42 ) 783 (643 ) 9,369 Commercial business 1,785 (26 ) 33 1,053 2,845 17,097 (68 ) 816 2,462 20,307 Total allowance for credit losses $ 30,659 $ (398 ) $ 1,240 $ 2,500 $ 34,001 The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology. At June 30, 2017 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 7,964 $ 324 $ 8,288 $ 1,059,203 $ 83,968 $ 1,143,171 Home equity and other 6,810 46 6,856 412,729 1,701 414,430 14,774 370 15,144 1,471,932 85,669 1,557,601 Commercial loans Commercial real estate 7,455 — 7,455 938,765 3,357 942,122 Multifamily 4,059 — 4,059 779,774 828 780,602 Construction/land development 8,226 — 8,226 647,649 1,023 648,672 Commercial business 2,414 172 2,586 247,083 1,825 248,908 22,154 172 22,326 2,613,271 7,033 2,620,304 Total loans evaluated for impairment 36,928 542 37,470 4,085,203 92,702 4,177,905 Loans held for investment carried at fair value 5,134 (1) Total loans held for investment $ 36,928 $ 542 $ 37,470 $ 4,085,203 $ 92,702 $ 4,183,039 (1) Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2016 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 7,871 $ 325 $ 8,196 $ 985,219 $ 80,676 $ 1,065,895 Home equity and other 6,104 49 6,153 358,350 1,463 359,813 13,975 374 14,349 1,343,569 82,139 1,425,708 Commercial loans Commercial real estate 6,680 — 6,680 869,225 2,338 871,563 Multifamily 3,086 — 3,086 673,374 845 674,219 Construction/land development 8,553 — 8,553 634,427 1,893 636,320 Commercial business 2,591 5 2,596 220,360 3,293 223,653 20,910 5 20,915 2,397,386 8,369 2,405,755 Total loans evaluated for impairment 34,885 379 35,264 3,740,955 90,508 3,831,463 Loans held for investment carried at fair value 17,988 (1) Total loans held for investment $ 34,885 $ 379 $ 35,264 $ 3,740,955 $ 90,508 $ 3,849,451 (1) Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. Impaired Loans The following tables present impaired loans by loan portfolio segment and loan class. At June 30, 2017 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 79,782 $ 81,373 $ — Home equity and other 1,185 1,211 — 80,967 82,584 — Commercial loans Commercial real estate 3,357 3,874 — Multifamily 828 845 — Construction/land development 1,023 1,549 — Commercial business 395 1,623 — 5,603 7,891 — $ 86,570 $ 90,475 $ — With an allowance recorded: Consumer loans Single family $ 4,186 $ 4,277 $ 324 Home equity and other 516 516 46 4,702 4,793 370 Commercial loans Commercial business 1,430 1,481 172 $ 6,132 $ 6,274 $ 542 Total: Consumer loans Single family (3) $ 83,968 $ 85,650 $ 324 Home equity and other 1,701 1,727 46 85,669 87,377 370 Commercial loans Commercial real estate 3,357 3,874 — Multifamily 828 845 — Construction/land development 1,023 1,549 — Commercial business 1,825 3,104 172 7,033 9,372 172 Total impaired loans $ 92,702 $ 96,749 $ 542 (1) Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $77.5 million in single family performing trouble debt restructurings "TDRs". At December 31, 2016 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 77,756 $ 80,573 $ — Home equity and other 946 977 — 78,702 81,550 — Commercial loans Commercial real estate 2,338 2,846 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Commercial business 2,945 4,365 — 8,021 10,881 — $ 86,723 $ 92,431 $ — With an allowance recorded: Consumer loans Single family $ 2,920 $ 3,011 $ 325 Home equity and other 517 517 49 3,437 3,528 374 Commercial loans Commercial business 348 347 5 348 347 5 $ 3,785 $ 3,875 $ 379 Total: Consumer loans Single family (3) $ 80,676 $ 83,584 $ 325 Home equity and other 1,463 1,494 49 82,139 85,078 374 Commercial loans Commercial real estate 2,338 2,846 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Commercial business 3,293 4,712 5 8,369 11,228 5 Total impaired loans $ 90,508 $ 96,306 $ 379 (1) Includes partial charge-offs and nonaccrual interest paid. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $73.1 million in single family performing TDRs. The following tables provide the average recorded investment and interest income recognized on impaired loans by portfolio segment and class. (in thousands) Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Consumer loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Single family $ 83,653 $ 790 $ 81,754 $ 740 Home equity and other 1,568 24 1,412 17 85,221 814 83,166 757 Commercial loans Commercial real estate 4,441 37 3,125 4 Multifamily 832 6 1,864 6 Construction/land development 1,105 21 2,458 23 Commercial business 2,380 36 2,802 23 8,758 100 10,249 56 $ 93,979 $ 914 $ 93,415 $ 813 (in thousands) Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Consumer loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Single family $ 82,661 $ 1,540 $ 81,612 $ 1,444 Home equity and other 1,533 43 1,504 33 84,194 1,583 83,116 1,477 Commercial loans Commercial real estate 3,740 96 3,124 8 Multifamily 836 12 1,878 35 Construction/land development 1,368 47 3,023 44 Commercial business 2,684 83 2,503 41 8,628 238 10,528 128 $ 92,822 $ 1,821 $ 93,644 $ 1,605 Credit Quality Indicators Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with applicable bank regulations. The Company's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The Company differentiates its lending portfolios into homogeneous loans and non-homogeneous loans. The 10 risk rating categories can be generally described by the following groupings for non-homogeneous loans: Pass. We have five pass risk ratings which represent a level of credit quality that ranges from no well-defined deficiency or weakness to some noted weakness, however the risk of default on any loan classified as pass is expected to be remote. The five pass risk ratings are described below: Minimal Risk . A minimal risk loan, risk rated 1-Exceptional, is to a borrower of the highest quality. The borrower has an unquestioned ability to produce consistent profits and service all obligations and can absorb severe market disturbances with little or no difficulty. Low Risk. A low risk loan, risk rated 2-Superior, is similar in characteristics to a minimal risk loan. Balance sheet and operations are slightly more prone to fluctuations within the business cycle; however, debt capacity and debt service coverage remains strong. The borrower will have a strong demonstrated ability to produce profits and absorb market disturbances. Modest Risk. A modest risk loan, risk rated 3-Excellent, is a desirable loan with excellent sources of repayment and no currently identifiable risk associated with collection. The borrower exhibits a very strong capacity to repay the loan in accordance with the repayment agreement. The borrower may be susceptible to economic cycles, but will have cash reserves to weather these cycles. Average Risk. An average risk loan, risk rated 4-Good, is an attractive loan with sound sources of repayment and no material collection or repayment weakness evident. The borrower has an acceptable capacity to pay in accordance with the agreement. The borrower is susceptible to economic cycles and more efficient competition, but should have modest reserves sufficient to survive all but the most severe downturns or major setbacks. Acceptable Risk. An acceptable risk loan, risk rated 5-Acceptable, is a loan with lower than average, but still acceptable credit risk. These borrowers may have higher leverage, less certain but viable repayment sources, have limited financial reserves and may possess weaknesses that can be adequately mitigated through collateral, structural or credit enhancement. The borrower is susceptible to economic cycles and is less resilient to negative market forces or financial events. Reserves may be insufficient to survive a modest downturn. Watch. A watch loan, risk rated 6-Watch, is still pass-rated, but represents the lowest level of acceptable risk due to an emerging risk element or declining performance trend. Watch ratings are expected to be temporary, with issues resolved or manifested to the extent that a higher or lower rating would be appropriate. The borrower should have a plausible plan, with reasonable certainty of success, to correct the problems in a short period of time. Borrowers rated watch are characterized by elements of uncertainty, such as: • The borrower may be experiencing declining operating trends, strained cash flows or less-than anticipated performance. Cash flow should still be adequate to cover debt service, and the negative trends should be identified as being of a short-term or temporary nature. • The borrower may have experienced a minor, unexpected covenant violation. • Companies who may be experiencing tight working capital or have a cash cushion deficiency. • A loan may also be a watch if financial information is late, there is a documentation deficiency, the borrower has experienced unexpected management turnover, or if they face industry issues that, when combined with performance factors create uncertainty in their future ability to perform. • Delinquent payments, increasing and material overdraft activity, request for bulge and/or out- of-formula advances may be an indicator of inadequate working capital and may suggest a lower rating. • Failure of the intended repayment source to materialize as expected, or renewal of a loan (other than cash/marketable security secured or lines of credit) without reduction are possible indicators of a watch or worse risk rating. Special Mention. A special mention loan, risk rated 7-Special Mention, has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or the institutions credit position at some future date. They contain unfavorable characteristics and are generally undesirable. Loans in this category are currently protected but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of a substandard classification. A special mention loan has potential weaknesses, which if not checked or corrected, weaken the loan or inadequately protect the Company’s position at some future date. Such weaknesses include: • Performance is poor or significantly less than expected. There may be a temporary debt-servicing deficiency or inadequate working capital as evidenced by a cash cushion deficiency, but not to the extent that repayment is compromised. Material violation of financial covenants is common. • Loans with unresolved material issues that significantly cloud the debt service outlook, even though a debt servicing deficiency does not currently exist. • Modest underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt as structured. Depth of support for interest carry provided by owner/guarantors may mitigate and provide for improved rating. • This rating may be assigned when a loan officer is unable to supervise the credit properly, an inadequate loan agreement, an inability to control collateral, failure to obtain proper documentation, or any other deviation from prudent lending practices. • Unlike a substandard credit, there should be a reasonable expectation that these temporary issues will be corrected within the normal course of business, rather than liquidation of assets, and in a reasonable period of time. Substandard. A substandard loan, risk rated 8-Substandard, is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. Loans are classified as substandard when they have unsatisfactory characteristics causing unacceptable levels of risk. A substandard loan normally has one or more well-defined weaknesses that could jeopardize repayment of the loan. The likely need to liquidate assets to correct the problem, rather than repayment from successful operations is the key distinction between special mention and substandard. The following are examples of well-defined weaknesses: • Cash flow deficiencies or trends are of a magnitude to jeopardize current and future payments with no immediate relief. A loss is not presently expected, however the outlook is sufficiently uncertain to preclude ruling out the possibility. • The borrower has been unable to adjust to prolonged and unfavorable industry or economic trends. • Material underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt and risk is not mitigated by willingness and capacity of owner/guarantor to support interest payments. • Management character or honesty has become suspect. This includes instances where the borrower has become uncooperative. • Due to unprofitable or unsuccessful business operations, some form of restructuring of the business, including liquidation of assets, has become the primary source of loan repayment. Cash flow has deteriorated, or been diverted, to the point that sale of collateral is now the Company’s primary source of repayment (unless this was the original source of repayment). If the collateral is under the Company’s control and is cash or other liquid, highly marketable securities and properly margined, then a more appropriate rating might be special mention or watch. • The borrower is involved in bankruptcy proceedings where collateral liquidation values are expected to fully protect the Company against loss. • There is material, uncorrectable faulty documentation or materially suspect financial information. Doubtful. Loans classified as doubtful, risk rated 9-Doubtful, have all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work towards strengthening of the loan, classification as a loss (and immediate charge-off) is deferred until more exact status may be determined. Pending factors include proposed merger, acquisition, liquidation procedures, capital injection, and perfection of liens on additional collateral and refinancing plans. In certain circumstances, a doubtful rating will be temporary, while the Company is awaiting an updated collateral valuation. In these cases, once the collateral is valued and appropriate margin applied, the remaining un-collateralized portion will be charged-off. The remaining balance, properly margined, may then be upgraded to substandard, however must remain on non-accrual. Loss. Loans classified as loss, risk rated 10-Loss, are considered un-collectible and of such little value that the continuance as an active Company asset is not warranted. This rating does not mean that the loan has no recovery or salvage value, but rather that the loan should be charged-off now, even though partial or full recovery may be possible in the future. Impaired. Loans are classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement, without unreasonable delay. This generally includes all loans classified as nonaccrual and troubled debt restructurings. Impaired loans are risk rated for internal and regulatory rating purposes, but presented separately for clarification. Homogeneous loans maintain their original risk rating until they are greater than 30 days past due, and risk rating reclassification is based primarily on the past due status of the loan. The risk rating categories can be generally described by the following groupings for commercial and commercial real estate homogeneous loans: Watch. A homogeneous watch loan, risk rated 6, is 30-59 days past due from the required payment date at month-end. Special Mention. A homogeneous special mention loan, risk rated 7, is 60-89 days past due from the required payment date at month-end. S ubstandard. A homogeneous substandard loan, risk rated 8, is 90-179 days past due from the required payment date at month-end. Loss. A homogeneous loss loan, risk rated 10, is 180 days and more past due from the required payment date. These loans are generally charged-off in the month in which the 180 day time period elapses. The risk rating categories can be generally described by the following groupings for residential and home equity and other homogeneous loans: Watch. A homogeneous retail watch loan, risk rated 6, is 60-89 days past due from the required payment date at month-end. Substandard. A homogeneous retail substandard loan, risk rated 8, is 90-179 days past due from the required payment date at month-end. Loss. A homogeneous retail loss loan, risk rated 10, becomes past due 180 cumulative days from the contractual due date. These loans are generally charged-off in the month in which the 180 day period elapses. Residential and home equity loans modified in a troubled debt restructure are not considered homogeneous. The risk rating classification for such loans are based on the non-homogeneous definitions noted above. The following tables summarize designated loan grades by loan portfolio segment and loan class. At June 30, 2017 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,117,636 (1) $ 3,508 $ 15,243 $ 11,842 $ 1,148,229 Home equity and other 412,039 205 659 1,603 414,506 1,529,675 3,713 15,902 13,445 1,562,735 Commercial loans Commercial real estate 886,638 42,739 8,713 4,032 942,122 Multifamily 765,652 12,737 1,893 320 780,602 Construction/land development 632,857 14,366 1,449 — 648,672 Commercial business 195,504 46,362 4,549 2,493 248,908 2,480,651 116,204 16,604 6,845 2,620,304 $ 4,010,326 $ 119,917 $ 32,506 $ 20,290 $ 4,183,039 (1) Includes $5.1 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2016 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,051,463 (1) $ 4,348 $ 15,172 $ 12,839 $ 1,083,822 Home equity and other 357,191 597 514 1,572 359,874 1,408,654 4,945 15,686 14,411 1,443,696 Commercial loans Commercial real estate 809,996 52,519 7,165 1,883 871,563 Multifamily 660,234 13,140 508 337 674,219 Construction/land development 615,675 16,074 3,083 1,488 636,320 Commercial business 171,883 42,767 3,385 5,618 223,653 2,257,788 124,500 14,141 9,326 2,405,755 $ 3,666,442 $ 129,445 $ 29,827 $ 23,737 $ 3,849,451 (1) Includes $18.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. As of June 30, 2017 and December 31, 2016 , none of the Company's loans were rated Doubtful or Loss. For a detailed discussion on credit quality, see Note 5, Loans and Credit Quality , within our 2016 Annual Report on Form 10-K. Nonaccrual and Past Due Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. Loans whose repayments are insured by the FHA or guaranteed by the VA are generally maintained on accrual status even if 90 days or more past due. The following table presents an aging analysis of past due loans by loan portfolio segment and loan class. At June 30, 2017 (in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and accruing Consumer loans Single family $ 9,911 $ 4,246 $ 45,545 $ 59,702 $ 1,088,527 (1) $ 1,148,229 $ 33,824 (2) Home equity and other 1,096 73 1,603 2,772 411,734 414,506 — 11,007 4,319 47,148 62,474 1,500,261 1,562,735 33,824 Commercial loans Commercial real estate — — 1,242 1,242 940,880 942,122 — Multifamily — — 320 320 780,282 780,602 — Construction/land development 147 — — 147 648,525 648,672 — Commercial business 424 — 590 1,014 247,894 248,908 — 571 — 2,152 2,723 2,617,581 2,620,304 — $ 11,578 $ 4,319 $ 49,300 $ 65,197 $ 4,117,842 $ 4,183,039 $ 33,824 At December 31, 2016 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or Consumer loans Single family $ 4,310 $ 5,459 $ 53,563 $ 63,332 $ 1,020,490 (1) $ 1,083,822 $ 40,846 (2) Home equity and other 251 442 1,571 2,264 357,610 359,874 — 4,561 5,901 55,134 65,596 1,378,100 1,443,696 40,846 Commercial loans Commercial real estate 71 205 2,127 2,403 869,160 871,563 — Multifamily — — 337 337 673,882 674,219 — Construction/land development — — 1,376 1,376 634,944 636,320 — Commercial business 202 — 2,414 2,616 221,037 223,653 — 273 205 6,254 6,732 2,399,023 2,405,755 — $ 4,834 $ 6,106 $ 61,388 $ 72,328 $ 3,777,123 $ 3,849,451 $ 40,846 (1) Includes $5.1 million and $18.0 million of loans at June 30, 2017 and December 31, 2016 , respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss and are a subset of the 90 days or more past due balance. The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. At June 30, 2017 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,136,508 (1) $ 11,721 $ 1,148,229 Home equity and other 412,903 1,603 414,506 1,549,411 13,324 1,562,735 Commercial loans Commercial real estate 940,880 1,242 942,122 Multifamily 780,282 320 780,602 Construction/land development 648,672 — 648,672 Commercial business 248,318 590 248,908 2,618,152 2,152 2,620,304 $ 4,167,563 $ 15,476 $ 4,183,039 At December 31, 2016 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,071,105 (1) $ 12,717 $ 1,083,822 Home equity and other 358,303 1,571 359,874 1,429,408 14,288 1,443,696 Commercial loans Commercial real estate 869,436 2,127 871,563 Multifamily 673,882 337 674,219 Construction/land development 634,944 1,376 636,320 Commercial business 221,239 2,414 223,653 2,399,501 6,254 2,405,755 $ 3,828,909 $ 20,542 $ 3,849,451 (1) Includes $5.1 million and $18.0 million of loans at June 30, 2017 and December 31, 2016 , where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. The following tables present information about TDR activity during the periods presented. Three Months Ended June 30, 2017 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 13 $ 2,097 $ — Payment restructure 30 6,015 — Home equity and other Payment restructure 1 277 — Total consumer Interest rate reduction 13 2,097 — Payment restructure 31 6,292 — 44 8,389 — Commercial loans Construction/land development Payment restructure 1 436 — Total commercial Payment restructure 1 436 — 1 436 — Total loans Interest rate reduction 13 2,097 — Payment restructure 32 6,728 — 45 $ 8,825 $ — Three Months Ended June 30, 2016 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 13 $ 2,369 $ — Payment restructure 19 3,747 — Home equity and other Interest rate r |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS: Deposit balances, including stated rates, were as follows. (in thousands) At June 30, At December 31, Noninterest-bearing accounts $ 1,015,301 $ 964,829 NOW accounts, 0.00% to 1.00% at June 30, 2017 and December 31, 2016 541,592 468,812 Statement savings accounts, due on demand, 0.05% to 1.13% at June 30, 2017 and December 31, 2016 311,202 301,361 Money market accounts, due on demand, 0.00% to 1.70% and at June 30, 2017 and December 31, 2016 1,587,741 1,603,141 Certificates of deposit, 0.05% to 3.80% at June 30, 2017 and December 31, 2016 1,291,935 1,091,558 $ 4,747,771 $ 4,429,701 Interest expense on deposits was as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 NOW accounts $ 503 $ 489 $ 980 $ 981 Statement savings accounts 253 255 505 509 Money market accounts 1,935 1,606 4,165 2,973 Certificates of deposit 3,176 2,099 5,840 3,555 $ 5,867 $ 4,449 $ 11,490 $ 8,018 The weighted-average interest rates on certificates of deposit were 1.01% and 0.96% at June 30, 2017 and December 31, 2016 , respectively. Certificates of deposit outstanding mature as follows. (in thousands) At June 30, Within one year $ 967,731 One to two years 265,348 Two to three years 32,627 Three to four years 14,060 Four to five years 11,944 Thereafter 225 $ 1,291,935 The aggregate amount of time deposits in denominations of $100 thousand or more at June 30, 2017 and December 31, 2016 were $481.1 million and $508.6 million , respectively. The aggregate amount of time deposits in denominations of more than $250 thousand at June 30, 2017 and December 31, 2016 were $102.1 million and $87.4 million , respectively. There were $412.7 million and $234.4 million of brokered deposits at June 30, 2017 and December 31, 2016 , respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES: To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as certain mortgage loans held for sale or MSRs, the Company utilizes derivatives, such as forward sale commitments, futures, option contracts, interest rate swaps and "swaptions" as risk management instruments in its hedging strategy. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. We held no derivatives designated as a fair value, cash flow or foreign currency hedge instrument at June 30, 2017 or December 31, 2016 . Derivatives are reported at their respective fair values in the other assets or accounts payable and other liabilities line items on the consolidated statements of financial condition, with changes in fair value reflected in current period earnings. As permitted under U.S. GAAP, the Company nets derivative assets and liabilities when a legally enforceable master netting agreement exists between the Company and the derivative counterparty, which are documented under industry standard master agreements and credit support annexes. The Company's master netting agreements provide that following an uncured payment default or other event of default the non-defaulting party may promptly terminate all transactions between the parties and determine a net amount due to be paid to, or by, the defaulting party. An event of default may also occur under a credit support annex if a party fails to make a collateral delivery (which remains uncured following applicable notice and grace periods). The Company's right of offset requires that master netting agreements are legally enforceable and that the exercise of rights by the non-defaulting party under these agreements will not be stayed, or avoided under applicable law upon an event of default including bankruptcy, insolvency or similar proceeding. The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties is included in other assets on the Company's consolidated statements of financial condition. Any securities pledged to counterparties as collateral remain on the consolidated statement of financial condition. Refer to Note 3, Investment Securities, for further information on securities collateral pledged. At June 30, 2017 and December 31, 2016 , the Company did not hold any collateral received from counterparties under derivative transactions. For further information on the policies that govern derivative and hedging activities, see Note 1, Summary of Significant Accounting Policies, and Note 11, Derivatives and Hedging Activities, within our 2016 Annual Report on Form 10-K. The notional amounts and fair values for derivatives consist of the following. At June 30, 2017 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 2,110,125 $ 4,665 $ (3,818 ) Interest rate swaptions 30,000 1 — Interest rate lock and purchase loan commitments 831,294 22,331 (48 ) Interest rate swaps 1,912,850 14,139 (21,139 ) Eurodollar futures 1,188,000 98 (52 ) Total derivatives before netting $ 6,072,269 41,234 (25,057 ) Netting adjustment/Cash collateral (1) 16,873 21,329 Carrying value on consolidated statements of financial condition $ 58,107 $ (3,728 ) (1) Includes cash collateral of $38.2 million at June 30, 2017 as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. At December 31, 2016 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 3,596,677 $ 24,623 $ (15,203 ) Interest rate swaptions 20,000 1 — Interest rate lock and purchase loan commitments 746,102 19,586 (367 ) Interest rate swaps 1,689,850 15,016 (26,829 ) Total derivatives before netting $ 6,052,629 59,226 (42,399 ) Netting adjustment/Cash collateral (1) 10,174 37,836 Carrying value on consolidated statements of financial condition $ 69,400 $ (4,563 ) (1) Includes cash collateral of $48.0 million at December 31, 2016 as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. The following tables present gross and net information about derivative instruments. At June 30, 2017 (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 41,234 $ 16,873 $ 58,107 $ — $ 58,107 Derivative liabilities $ (25,057 ) $ 21,329 $ (3,728 ) $ 2,616 $ (1,112 ) At December 31, 2016 (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 59,226 $ 10,174 $ 69,400 $ — $ 69,400 Derivative liabilities $ (42,399 ) $ 37,836 $ (4,563 ) $ 1,820 $ (2,743 ) (1) Includes cash collateral of $38.2 million and $48.0 million at June 30, 2017 and December 31, 2016 respectively, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. The following table presents the net gain (loss) recognized on derivatives, including economic hedge derivatives, within the respective line items in the statement of operations for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Recognized in noninterest income: Net gain (loss) on loan origination and sale activities (1) $ (10,109 ) $ 761 $ (11,608 ) $ (331 ) Loan servicing income (2) 8,874 22,241 9,253 53,948 Other (3) — (390 ) — (1,352 ) $ (1,235 ) $ 22,612 $ (2,355 ) $ 52,265 (1) Comprised of interest rate lock commitments ("IRLCs") and forward contracts used as an economic hedge of IRLCs and single family mortgage loans held for sale. (2) Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs. (3) Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of fair value option loans held for investment. |
Mortgage Banking Operations
Mortgage Banking Operations | 6 Months Ended |
Jun. 30, 2017 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING OPERATIONS | MORTGAGE BANKING OPERATIONS: Loans held for sale consisted of the following. (in thousands) At June 30, At December 31, Single family $ 680,959 $ 656,334 Multifamily DUS ® (1) 39,099 35,506 Other (2) 64,498 22,719 Total loans held for sale $ 784,556 $ 714,559 (1) Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS" ® ) is a registered trademark of Fannie Mae. (2) Includes multifamily and commercial loans originated from sources other than DUS ® . Loans sold consisted of the following. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Single family $ 1,808,500 $ 2,173,392 $ 3,548,237 $ 3,644,975 Multifamily DUS ® 35,312 109,394 112,161 157,364 Other (1) 24,695 31,813 37,881 31,813 Total loans sold $ 1,868,507 $ 2,314,599 $ 3,698,279 $ 3,834,152 (1) Includes multifamily and commercial loans originated from sources other than DUS ® . Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Single family: Servicing value and secondary market gains (1) $ 57,353 $ 73,685 $ 107,891 $ 127,812 Loan origination and administration fees 6,823 7,355 12,604 12,683 Total single family 64,176 81,040 120,495 140,495 Multifamily DUS ® 1,273 3,655 4,633 5,184 Other (2) 459 935 1,061 1,214 Total gain on loan origination and sale activities $ 65,908 $ 85,630 $ 126,189 $ 146,893 (1) Comprised of gains and losses on interest rate lock and purchase loan commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold. (2) Includes multifamily and commercial loans originated from sources other than DUS ® . The Company’s portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. Loans serviced for others are not included in the consolidated statements of financial condition as they are not assets of the Company. The composition of loans serviced for others is presented below at the unpaid principal balance. (in thousands) At June 30, At December 31, Single family U.S. government and agency $ 20,574,300 $ 18,931,835 Other 530,308 556,621 21,104,608 19,488,456 Commercial Multifamily DUS ® 1,135,722 1,108,040 Other 75,336 69,323 1,211,058 1,177,363 Total loans serviced for others $ 22,315,666 $ 20,665,819 The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, appraisal errors, early payment defaults and fraud. For further information on the Company's mortgage repurchase liability, see Note 8, Commitments, Guarantees and Contingencies, of this Form 10-Q. The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 2,863 $ 2,725 $ 3,382 $ 2,922 Additions (reductions), net (1) 328 885 (32 ) 912 Realized losses (2) (201 ) (231 ) (360 ) (455 ) Balance, end of period $ 2,990 $ 3,379 $ 2,990 $ 3,379 (1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. (2) Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expense. The Company has agreements with certain investors, depending on the requirements, to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $6.4 million and $7.5 million were recorded in other assets as of June 30, 2017 and December 31, 2016 , respectively. When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company then records the loan on its consolidated statement of financial condition. At both June 30, 2017 and December 31, 2016 , delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated statements of financial condition totaled $33.4 million and $35.8 million , respectively, with a corresponding amount recorded within accounts payable and other liabilities on the consolidated statements of financial condition. The recognition of previously sold loans does not impact the accounting for the previously recognized MSRs. Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Servicing income, net: Servicing fees and other $ 15,977 $ 12,923 $ 32,156 $ 25,356 Changes in fair value of single family MSRs due to modeled amortization (1) (8,909 ) (7,758 ) (17,429 ) (15,015 ) Amortization of multifamily MSRs (761 ) (648 ) (1,692 ) (1,285 ) 6,307 4,517 13,035 9,056 Risk management, single family MSRs: Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (6,417 ) (14,055 ) (4,285 ) (42,269 ) Net gain from derivatives economically hedging MSR 8,874 22,241 9,253 53,948 2,457 8,186 4,968 11,679 Mortgage servicing income $ 8,764 $ 12,703 $ 18,003 $ 20,735 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. All MSRs are initially measured and recorded at fair value at the time loans are sold. Single family MSRs are subsequently carried at fair value with changes in fair value reflected in earnings in the periods in which the changes occur, while multifamily MSRs are subsequently carried at the lower of amortized cost or fair value. The fair value of MSRs is determined based on the price that would be received to sell the MSRs in an orderly transaction between market participants at the measurement date. The Company determines fair value using a valuation model that calculates the net present value of estimated future cash flows. Estimates of future cash flows include contractual servicing fees, ancillary income and costs of servicing, the timing of which are impacted by assumptions, primarily expected prepayment speeds and discount rates, which relate to the underlying performance of the loans. The initial fair value measurement of MSRs is adjusted up or down depending on whether the underlying loan pool interest rate is at a premium, discount or par. Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows. Three Months Ended June 30, Six Months Ended June 30, (rates per annum) (1) 2017 2016 2017 2016 Constant prepayment rate ("CPR") (2) 14.75 % 15.62 % 13.39 % 16.30 % Discount rate (3) 10.30 % 10.57 % 10.29 % 10.44 % (1) Weighted average rates for sales during the period for sales of loans with similar characteristics. (2) Represents the expected lifetime average. (3) Discount rate is a rate based on market observations. Key economic assumptions and the sensitivity of the current fair value for single family MSRs to immediate adverse changes in those assumptions were as follows. (dollars in thousands) At June 30, 2017 Fair value of single family MSR $ 236,621 Expected weighted-average life (in years) 6.02 Constant prepayment rate (1) 12.94 % Impact on 25 basis points adverse change in interest rates $ (17,984 ) Impact on 50 basis points adverse change in interest rates $ (37,908 ) Discount rate 10.40 % Impact on fair value of 100 basis points increase $ (8,206 ) Impact on fair value of 200 basis points increase $ (15,868 ) (1) Represents the expected lifetime average. These sensitivities are hypothetical and subject to key assumptions of the underlying valuation model. As the table above demonstrates, the Company’s methodology for estimating the fair value of MSRs is highly sensitive to changes in key assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may provide an incentive to refinance; however, this may also indicate a slowing economy and an increase in the unemployment rate, which reduces the number of borrowers who qualify for refinancing), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. The changes in single family MSRs measured at fair value are as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance $ 235,997 $ 133,449 $ 226,113 $ 156,604 Additions and amortization: Originations 15,748 19,264 31,666 31,580 Purchases 211 — 565 — Sale of single family MSRs — — — — Changes due to modeled amortization (1) (8,909 ) (7,758 ) (17,429 ) (15,015 ) Net additions and amortization 7,050 11,506 14,802 16,565 Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (6,426 ) (14,055 ) (4,294 ) (42,269 ) Ending balance $ 236,621 $ 130,900 $ 236,621 $ 130,900 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. MSRs resulting from the sale of multifamily loans are recorded at fair value and subsequently carried at the lower of amortized cost or fair value. Multifamily MSRs are amortized in proportion to, and over, the estimated period the net servicing income will be collected. The changes in multifamily MSRs measured at the lower of amortized cost or fair value were as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance $ 21,424 $ 15,402 $ 19,747 $ 14,651 Origination 937 1,612 3,545 3,000 Amortization (761 ) (648 ) (1,692 ) (1,285 ) Ending balance $ 21,600 $ 16,366 $ 21,600 $ 16,366 At June 30, 2017 , the expected weighted-average life of the Company’s multifamily MSRs was 10.21 years . Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows. (in thousands) At June 30, 2017 Remainder of 2017 $ 1,498 2018 2,944 2019 2,842 2020 2,760 2021 2,546 2022 and thereafter 9,010 Carrying value of multifamily MSR $ 21,600 |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES AND CONTINGENCIES | COMMITMENTS, GUARANTEES AND CONTINGENCIES: Commitments Commitments to extend credit are agreements to lend to customers in accordance with predetermined contractual provisions. These commitments may be for specific periods or contain termination clauses and may require the payment of a fee by the borrower. The total amount of unused commitments do not necessarily represent future credit exposure or cash requirements in that commitments may expire without being drawn upon. The Company makes certain unfunded loan commitments as part of its lending activities that have not been recognized in the Company’s financial statements. These include commitments to extend credit made as part of the Company's lending activities on loans the Company intends to hold in its loans held for investment portfolio. The aggregate amount of these unrecognized unfunded loan commitments existing at June 30, 2017 and December 31, 2016 was $89.0 million and $42.6 million , respectively. In the ordinary course of business, the Company extends secured and unsecured open-end loans to meet the financing needs of its customers. Undistributed construction loan commitments, where the Company has an obligation to advance funds for construction progress payments, were $614.2 million and $603.8 million at June 30, 2017 and December 31, 2016 , respectively. Unused home equity and commercial banking funding lines totaled $390.6 million and $289.3 million at June 30, 2017 and December 31, 2016 , respectively. The Company has recorded an allowance for credit losses on loan commitments, included in accounts payable and other liabilities on the consolidated statements of financial condition, of $1.3 million and $1.3 million at June 30, 2017 and December 31, 2016 , respectively. Guarantees In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily DUS ® that are subject to a credit loss sharing arrangement. The Company services the loans for Fannie Mae and shares in the risk of loss with Fannie Mae under the terms of the DUS ® contracts. Under the program, the DUS ® lender is contractually responsible for the first 5% of losses and then shares in the remainder of losses with Fannie Mae with a maximum lender loss of 20% of the original principal balance of each DUS ® loan. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. As of June 30, 2017 and December 31, 2016 , the total unpaid principal balance of loans sold under this program was $1.14 billion and $1.11 billion , respectively. The Company’s reserve liability related to this arrangement totaled $1.7 million and $1.8 million at June 30, 2017 and December 31, 2016 , respectively. There were no actual losses incurred under this arrangement during the three and six months ended June 30, 2017 and 2016 . Mortgage repurchase liability In the ordinary course of business, the Company sells residential mortgage loans to GSEs and other entities. In addition, the Company pools FHA-insured and VA-guaranteed mortgage loans into Ginnie Mae guaranteed mortgage-backed securities and pools conventional loans into Fannie Mae and Freddie Mac guaranteed mortgage-backed securities. The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans, or indemnify loan purchasers, or FHA or VA due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. These obligations expose the Company to mark-to-market and credit losses on the repurchased mortgage loans after accounting for any mortgage insurance that we may receive. Generally, the maximum amount of future payments the Company would be required to make for breaches of these representations and warranties would be equal to the unpaid principal balance of such loans that are deemed to have defects that were sold to purchasers plus, in certain circumstances, accrued and unpaid interest on such loans and certain expenses. The Company does not typically receive repurchase requests from the FHA or VA. As an originator of FHA-insured or VA-guaranteed loans, the Company is responsible for obtaining the insurance with the FHA or the guarantee with the VA. If loans are later found not to meet the requirements of the FHA or VA, through required internal quality control reviews or through agency audits, the Company may be required to indemnify the FHA or VA against losses. The loans remain in Ginnie Mae pools unless and until they are repurchased by the Company. In general, once an FHA or VA loan becomes 90 days past due, the Company repurchases the FHA or VA residential mortgage loan to minimize the cost of interest advances on the loan. If the loan is cured through borrower efforts or through loss mitigation activities, the loan may be resold into a Ginnie Mae pool. The Company's liability for mortgage loan repurchase losses incorporates probable losses associated with such indemnification. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $21.18 billion and $19.56 billion as of June 30, 2017 and December 31, 2016 , respectively. At June 30, 2017 and December 31, 2016 , the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, included in accounts payable and other liabilities on the consolidated statements of financial condition, of $3.0 million and $3.4 million , respectively. Contingencies In the normal course of business, the Company may have various legal claims and other similar contingent matters outstanding for which a loss may be realized. For these claims, the Company establishes a liability for contingent losses when it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. For claims determined to be reasonably possible but not probable of resulting in a loss, there may be a range of possible losses in excess of the established liability. At June 30, 2017 , we reviewed our legal claims and determined that there were no material claims that were considered to be probable or reasonably possible of resulting in a loss. As a result, the Company did not have any material amounts reserved for legal claims as of June 30, 2017 . |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT: For a further discussion of fair value measurements, including information regarding the Company’s valuation methodologies and the fair value hierarchy, see Note 17, Fair Value Measurement within our 2016 Annual Report on Form 10-K. Valuation Processes The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. The Finance Committee of the Board provides oversight and approves the Company’s Asset/Liability Management Policy ("ALMP"). The Company's ALMP governs, among other things, the application and control of the valuation models used to measure fair value. On a quarterly basis, the Company’s Asset/Liability Management Committee ("ALCO") and the Finance Committee of the Board review significant modeling variables used to measure the fair value of the Company’s financial instruments, including the significant inputs used in the valuation of single family MSRs. Additionally, ALCO periodically obtains an independent review of the MSR valuation process and procedures, including a review of the model architecture and the valuation assumptions. The Company obtains an MSR valuation from an independent valuation firm monthly to assist with the validation of the fair value estimate and the reasonableness of the assumptions used in measuring fair value. The Company’s real estate valuations are overseen by the Company’s appraisal department. The appraisal department maintains the Company’s appraisal policy and recommends changes to the policy subject to approval by the Company’s Loan Committee and the Credit Committee of the Board. The Company’s appraisals are prepared by independent third-party appraisers and the Company’s internal appraisers. Single family appraisals are generally reviewed by the Company’s single family loan underwriters. Single family appraisals with unusual, higher risk or complex characteristics, as well as commercial real estate appraisals, are reviewed by the Company’s appraisal department. We obtain pricing from third party service providers for determining the fair value of a substantial portion of our investment securities available for sale. We have processes in place to evaluate such third party pricing services to ensure information obtained and valuation techniques used are appropriate. For fair value measurements obtained from third party services, we monitor and review the results to ensure the values are reasonable and in line with market experience for similar classes of securities. While the inputs used by the pricing vendor in determining fair value are not provided, and therefore unavailable for our review, we do perform certain procedures to validate the values received, including comparisons to other sources of valuation (if available), comparisons to other independent market data and a variance analysis of prices by Company personnel that are not responsible for the performance of the investment securities. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities, and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities. Asset/Liability class Valuation methodology, inputs and assumptions Classification Cash and cash equivalents Carrying value is a reasonable estimate of fair value based on the short-term nature of the instruments. Estimated fair value classified as Level 1. Investment securities Investment securities available for sale Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 2 recurring fair value measurement Investment securities held to maturity Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Carried at amortized cost. Loans held for sale Single family loans, excluding loans transferred from held for investment Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments Level 2 recurring fair value measurement When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Estimated fair value classified as Level 3. Loans originated as held for investment and transferred to held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Carried at lower of amortized cost or fair value. Multifamily loans (DUS ® ) and other The sale price is set at the time the loan commitment is made, and as such subsequent changes in market conditions have a very limited effect, if any, on the value of these loans carried on the consolidated statements of financial condition, which are typically sold within 30 days of origination. Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 2. Asset/Liability class Valuation methodology, inputs and assumptions Classification Loans held for investment Loans held for investment, excluding collateral dependent loans and loans transferred from held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments For the carrying value of loans see Note 1–Summary of Significant Accounting Policies of the 2016 Annual Report on Form 10-K. Loans held for investment, collateral dependent Fair value is based on appraised value of collateral, which considers sales comparison and income approach methodologies. Adjustments are made for various factors, which may include: • Adjustments for variations in specific property qualities such as location, physical dissimilarities, market conditions at the time of sale, income producing characteristics and other factors Carried at lower of amortized cost or fair value of collateral, less the estimated cost to sell. Loans held for investment transferred from loans held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 3 recurring fair value measurement Mortgage servicing rights Single family MSRs For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement Multifamily MSRs and other Fair value is based on discounted estimated future servicing fees and other revenue, less estimated costs to service the loans. Carried at lower of amortized cost or fair value Estimated fair value classified as Level 3. Derivatives Eurodollar futures Fair value is based on closing exchange prices. Level 1 recurring fair value measurement Interest rate swaps Interest rate swaptions Forward sale commitments Fair value is based on quoted prices for identical or similar instruments, when available. Level 2 recurring fair value measurement Asset/Liability class Valuation methodology, inputs and assumptions Classification Interest rate lock and purchase loan commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement Other real estate owned (“OREO”) Fair value is based on appraised value of collateral, less the estimated cost to sell. See discussion of "loans held for investment, collateral dependent" above for further information on appraisals. Carried at lower of amortized cost or fair value of collateral (Level 3), less the estimated cost to sell. Federal Home Loan Bank stock Carrying value approximates fair value as FHLB stock can only be purchased or redeemed at par value. Carried at par value. Estimated fair value classified as Level 2. Deposits Demand deposits Fair value is estimated as the amount payable on demand at the reporting date. Carried at historical cost. Estimated fair value classified as Level 2. Fixed-maturity certificates of deposit Fair value is estimated using discounted cash flows based on market rates currently offered for deposits of similar remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Federal Home Loan Bank advances Fair value is estimated using discounted cash flows based on rates currently available for advances with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Long-term debt Fair value is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. The following table presents the levels of the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis. (in thousands) Fair Value at June 30, 2017 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 150,935 $ — $ 150,935 $ — Commercial 23,381 — 23,381 — Municipal bonds 372,729 — 372,729 — Collateralized mortgage obligations: Residential 184,695 — 184,695 — Commercial 76,230 — 76,230 — Corporate debt securities 30,218 — 30,218 — U.S. Treasury securities 10,740 — 10,740 — Agency 35,338 — 35,338 — Single family mortgage servicing rights 236,621 — — 236,621 Single family loans held for sale 680,959 — 651,700 29,259 Single family loans held for investment 5,134 — — 5,134 Derivatives Eurodollar futures 98 98 — — Forward sale commitments 4,665 — 4,665 — Interest rate swaptions 1 — 1 — Interest rate lock and purchase loan commitments 22,331 — — 22,331 Interest rate swaps 14,139 — 14,139 — Total assets $ 1,848,214 $ 98 $ 1,554,771 $ 293,345 Liabilities: Derivatives Eurodollar futures $ 52 $ 52 $ — $ — Forward sale commitments 3,818 — 3,818 — Interest rate lock and purchase loan commitments 48 — — 48 Interest rate swaps 21,139 — 21,139 — Total liabilities $ 25,057 $ 52 $ 24,957 $ 48 (in thousands) Fair Value at December 31, 2016 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 177,074 $ — $ 177,074 $ — Commercial 25,536 — 25,536 — Municipal bonds 467,673 — 467,673 — Collateralized mortgage obligations: Residential 191,201 — 191,201 — Commercial 70,764 — 70,764 — Corporate debt securities 51,122 — 51,122 — U.S. Treasury securities 10,620 — 10,620 — Single family mortgage servicing rights 226,113 — — 226,113 Single family loans held for sale 656,334 — 614,524 41,810 Single family loans held for investment 17,988 — — 17,988 Derivatives Forward sale commitments 24,623 — 24,623 — Interest rate swaptions 1 — 1 — Interest rate lock and purchase loan commitments 19,586 — — 19,586 Interest rate swaps 15,016 — 15,016 — Total assets $ 1,953,651 $ — $ 1,648,154 $ 305,497 Liabilities: Derivatives Forward sale commitments $ 15,203 $ — $ 15,203 $ — Interest rate lock and purchase loan commitments 367 — — 367 Interest rate swaps 26,829 — 26,829 — Total liabilities $ 42,399 $ — $ 42,032 $ 367 There were no transfers between levels of the fair value hierarchy during the three and six months ended June 30, 2017 and 2016 . Level 3 Recurring Fair Value Measurements The Company's level 3 recurring fair value measurements consist of single family mortgage servicing rights, single family loans held for investment where fair value option was elected, certain single family loans held for sale, and interest rate lock and purchase loan commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the three and six months ended June 30, 2017 and 2016 , see Note 7, Mortgage Banking Operations of this Form 10-Q. The Company transferred certain loans from held for sale to held for investment. These loans were originated as held for sale loans where the Company had elected fair value option. The Company determined these loans to be level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $5.1 million at June 30, 2017 . The following information presents significant Level 3 unobservable inputs used to measure fair value of single family loans held for investment where fair value option was elected. (dollars in thousands) At June 30, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 5,134 Income approach Implied spread to benchmark interest rate curve 3.53% 4.88% 4.21% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 17,988 Income approach Implied spread to benchmark interest rate curve 3.62% 4.97% 4.49% The following information presents significant Level 3 unobservable inputs used to measure fair value of certain single family loans held for sale where fair value option was elected. (dollars in thousands) At June 30, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 29,259 Income approach Implied spread to benchmark interest rate curve 3.24% 5.26% 4.47% Market price movement from comparable bond (0.27)% (0.09)% (0.18)% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 41,810 Income approach Implied spread to benchmark interest rate curve 3.46% 6.14% 4.23% Market price movement from comparable bond (0.49)% (0.11)% (0.27)% The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance, net $ 27,136 $ 28,482 $ 19,219 $ 17,711 Total realized/unrealized gains 34,127 58,767 69,586 103,295 Settlements (38,980 ) (47,258 ) (66,522 ) (81,015 ) Ending balance, net $ 22,283 $ 39,991 $ 22,283 $ 39,991 The following table presents fair value changes and activity for Level 3 loans held for sale and loans held for investment. Three Months Ended June 30, 2017 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 40,331 $ 197 $ 13,755 $ (25,884 ) $ 860 $ 29,259 Loans held for investment 19,042 — (13,575 ) (479 ) 146 5,134 Three Months Ended June 30, 2016 Loans held for sale $ 45,558 $ 7,480 $ (4,582 ) $ (3,696 ) $ (1,018 ) $ 43,742 Loans held for investment 18,327 106 4,572 (503 ) (140 ) 22,362 Six Months Ended June 30, 2017 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 41,810 $ 2,996 $ 13,066 $ (29,110 ) $ 497 $ 29,259 Loans held for investment 17,988 — (12,369 ) (479 ) (6 ) 5,134 Six Months Ended June 30, 2016 Loans held for sale $ 49,322 $ 7,963 $ (4,582 ) $ (8,525 ) $ (436 ) $ 43,742 Loans held for investment 21,544 106 4,572 (3,583 ) (277 ) 22,362 The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock and purchase loan commitments. (dollars in thousands) At June 30, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 22,283 Income approach Fall-out factor 0.40% 62.52% 14.30% Value of servicing 0.64% 1.92% 1.02% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 19,219 Income approach Fall-out factor 0.50% 60.34% 11.95% Value of servicing 0.65% 2.27% 1.08% Nonrecurring Fair Value Measurements Certain assets held by the Company are not included in the tables above, but are measured at fair value on a nonrecurring basis. These assets include certain loans held for investment and other real estate owned that are carried at the lower of cost or fair value of the underlying collateral, less the estimated cost to sell. The estimated fair values of real estate collateral are generally based on internal evaluations and appraisals of such collateral, which use the market approach and income approach methodologies. All impaired loans are subject to an internal evaluation completed quarterly by management as part of the allowance process. The fair value of commercial properties are generally based on third-party appraisals that consider recent sales of comparable properties, including their income-generating characteristics, adjusted (generally based on unobservable inputs) to reflect the general assumptions that a market participant would make when analyzing the property for purchase. The Company uses a fair value of collateral technique to apply adjustments to the appraisal value of certain commercial loans held for investment that are collateralized by real estate. During the three and six months ended June 30, 2017 , the Company recorded an adjustment of 7.10% to the appraisal values of certain commercial loans held for investment that are collateralized by real estate. During the three and six months ended June 30, 2016, the Company recorded no adjustment to the appraisal values of certain commercial loans held for investment that are collateralized by real estate. The Company uses a fair value of collateral technique to apply adjustments to the stated value of certain commercial loans held for investment that are not collateralized by real estate. During the three months ended June 30, 2017 , the Company applied a range of stated value adjustments of 0.0% to 42.6% , with a weighted average of 42.3% . During the six months ended June 30, 2017, the Company applied a range of stated value adjustments of 0.0% to 100.0% , with a weighted average of 41.3% . During the three and six months ended June 30, 2016 , the Company applied a stated value adjustment of 63.4% . During the three and six months ended June 30, 2017 and 2016 , the Company did not apply any adjustment to the appraisal value of OREO. Residential properties are generally based on unadjusted third-party appraisals. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. These adjustments include management assumptions that are based on the type of collateral dependent loan and may increase or decrease an appraised value. Management adjustments vary significantly depending on the location, physical characteristics and income producing potential of each individual property. The quality and volume of market information available at the time of the appraisal can vary from period-to-period and cause significant changes to the nature and magnitude of the unobservable inputs used. Given these variations, changes in these unobservable inputs are generally not a reliable indicator for how fair value will increase or decrease from period to period. The following tables present assets that had changes in their recorded fair value during the three and six months ended June 30, 2017 and 2016 and what we still held at the end of the respective reporting period. At or for the Three Months Ended June 30, 2017 (in thousands) Fair Value of Assets Held at June 30, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,003 $ — $ — $ 2,003 $ 162 At or for the Three Months Ended June 30, 2016 (in thousands) Fair Value of Assets Held at June 30, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,581 $ — $ — $ 2,581 $ 20 At or for the Six Months Ended June 30, 2017 (in thousands) Fair Value of Assets Held at June 30, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,003 $ — $ — $ 2,003 $ 140 At or for the Six Months Ended June 30, 2016 (in thousands) Fair Value of Assets Held at June 30, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,581 $ — $ — $ 2,581 $ (14 ) Other real estate owned (2) 5,485 — — 5,485 (391 ) Total $ 8,066 $ — $ — $ 8,066 $ (405 ) (1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. (2) Represents other real estate owned where an updated fair value of collateral is used to adjust the carrying amount subsequent to the initial classification as other real estate owned. Fair Value of Financial Instruments The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis. At June 30, 2017 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 54,447 $ 54,447 $ 54,447 $ — $ — Investment securities held to maturity 52,256 52,551 — 52,551 — Loans held for investment 4,151,290 4,205,010 — — 4,205,010 Loans held for sale – transferred from held for investment 62,183 62,183 — — 62,183 Loans held for sale – multifamily and other 41,414 41,414 — 41,414 — Mortgage servicing rights – multifamily 21,600 23,662 — — 23,662 Federal Home Loan Bank stock 41,769 41,769 — 41,769 — Liabilities: Deposits $ 4,747,771 $ 4,727,531 $ — $ 4,727,531 $ — Federal Home Loan Bank advances 867,290 869,559 — 869,559 — Long-term debt 125,234 122,712 — 122,712 — At December 31, 2016 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 53,932 $ 53,932 $ 53,932 $ — $ — Investment securities held to maturity 49,861 49,488 — 49,488 — Loans held for investment 3,801,039 3,840,990 — — 3,840,990 Loans held for sale – transferred from held for investment 17,512 17,512 — — 17,512 Loans held for sale – multifamily 40,712 40,712 — 40,712 — Mortgage servicing rights – multifamily 19,747 21,610 — — 21,610 Federal Home Loan Bank stock 40,347 40,347 — 40,347 — Liabilities: Deposits $ 4,429,701 $ 4,410,213 $ — $ 4,410,213 $ — Federal Home Loan Bank advances 868,379 870,782 — 870,782 — Long-term debt 125,147 122,357 — 122,357 — |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2017 2016 2017 2016 Net income $ 11,209 $ 21,749 $ 20,192 $ 28,156 Weighted average shares: Basic weighted-average number of common shares outstanding 26,866,230 24,708,375 26,843,813 24,192,441 Dilutive effect of outstanding common stock equivalents (1) 218,378 203,544 227,215 202,207 Diluted weighted-average number of common stock outstanding 27,084,608 24,911,919 27,071,028 24,394,648 Earnings per share: Basic earnings per share $ 0.42 $ 0.88 $ 0.75 $ 1.16 Diluted earnings per share $ 0.41 $ 0.87 $ 0.75 $ 1.15 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the three and six months ended June 30, 2017 and 2016 were certain stock options and unvested restricted stock issued to key senior management personnel and directors of the Company. The aggregate number of common stock equivalents related to such options and unvested restricted shares, which could potentially be dilutive in future periods, was 6,417 at June 30, 2017 and zero at June 30, 2016 . |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS: The Company's business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is currently evaluated by management. The Company organizes the segments into two lines of business: Commercial and Consumer Banking segment and Mortgage Banking segment. A description of the Company's business segments and the products and services that they provide is as follows. Commercial and Consumer Banking provides diversified financial products and services to our commercial and consumer customers through bank branches and through ATMs, online, mobile and telephone banking. These products and services include deposit products; residential, consumer, business and agricultural portfolio loans; non-deposit investment products; insurance products and cash management services. We originate construction loans, bridge loans and permanent loans for our portfolio primarily on single family residences, and on office, retail, industrial and multifamily property types. We originate multifamily real estate loans through our Fannie Mae DUS ® business, whereby loans are sold to or securitized by Fannie Mae, while the Company generally retains the servicing rights. This segment also reflects the results for the management of the Company's portfolio of investment securities. Mortgage Banking originates single family residential mortgage loans for sale in the secondary markets and performs mortgage servicing on certain loans. The majority of our mortgage loans are sold to or securitized by Fannie Mae, Freddie Mac or Ginnie Mae, while we retain the right to service these loans. We have become a rated originator and servicer of jumbo loans, allowing us to sell these loans to other securitizers. Additionally, we purchase loans from WMS Series LLC through a correspondent arrangement with that company. We also sell loans on a servicing-released and servicing-retained basis to securitizers and correspondent lenders. A small percentage of our loans are brokered to other lenders or sold on a servicing-released basis to correspondent lenders. On occasion, we may sell a portion of our MSR portfolio. We reflect the results from the management of loan funding and the interest rate risk associated with the secondary market loan sales and the retained single family mortgage servicing rights within this business segment. Financial highlights by operating segment were as follows. Three Months Ended June 30, 2017 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 4,420 $ 42,448 $ 46,868 Provision for credit losses — 500 500 Noninterest income 72,732 8,276 81,008 Noninterest expense 74,613 36,631 111,244 Income before income taxes 2,539 13,593 16,132 Income tax expense 776 4,147 4,923 Net income $ 1,763 $ 9,446 $ 11,209 Total assets $ 992,668 $ 5,593,889 $ 6,586,557 Three Months Ended June 30, 2016 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 6,089 $ 38,393 $ 44,482 Provision for credit losses — 1,100 1,100 Noninterest income 94,295 8,181 102,476 Noninterest expense 76,928 34,103 111,031 Income before income taxes 23,456 11,371 34,827 Income tax expense 8,786 4,292 13,078 Net income $ 14,670 $ 7,079 $ 21,749 Total assets $ 966,586 $ 4,974,592 $ 5,941,178 Six Months Ended June 30, 2017 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 9,167 $ 83,352 $ 92,519 Provision for credit losses — 500 500 Noninterest income 137,768 17,701 155,469 Noninterest expense 145,017 73,101 218,118 Income before income taxes 1,918 27,452 29,370 Income tax expense 464 8,714 9,178 Net income $ 1,454 $ 18,738 $ 20,192 Total assets $ 992,668 $ 5,593,889 $ 6,586,557 Six Months Ended June 30, 2016 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 11,134 $ 74,039 $ 85,173 Provision for credit losses — 2,500 2,500 Noninterest income 161,360 12,824 174,184 Noninterest expense 141,651 70,733 212,384 Income before income taxes 30,843 13,630 44,473 Income tax expense 11,308 5,009 16,317 Net income $ 19,535 $ 8,621 $ 28,156 Total assets $ 966,586 $ 4,974,592 $ 5,941,178 (1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): The following table shows changes in accumulated other comprehensive income (loss) from unrealized gain (loss) on available-for-sale securities, net of tax. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance $ (8,486 ) $ 4,161 $ (10,412 ) $ (2,449 ) Other comprehensive income before reclassifications 3,431 5,627 5,361 12,260 Amounts reclassified from accumulated other comprehensive loss (358 ) (40 ) (362 ) (63 ) Net current-period other comprehensive income 3,073 5,587 4,999 12,197 Ending balance $ (5,413 ) $ 9,748 $ (5,413 ) $ 9,748 The following table shows the affected line items in the consolidated statements of operations from reclassifications of unrealized gain on available-for-sale securities from accumulated other comprehensive income (loss). Affected Line Item in the Consolidated Statements of Operations Amount Reclassified from Accumulated Other Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Gain on sale of investment securities available for sale $ 551 $ 62 $ 557 $ 97 Income tax expense 193 22 195 34 Total, net of tax $ 358 $ 40 $ 362 $ 63 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q and has concluded that there are no significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the consolidated financial statements. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Company’s accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Inter-company balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. These estimates that require application of management's most difficult, subjective or complex judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. |
Recent Accounting Developments | Recent Accounting Developments In March 2017 the Financial Accounting Standards Board ('"FASB") issued Accounting Standards Update ("ASU") No. 2017-08, Receivables - Nonrefundable Fees and other Costs (Subtopic 320-20): Premium Amortization on Purchased Callable Debt Securities, or ASU 2017-08. This standard shortens the amortization period for the premium to the earliest call date to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. Adoption of ASU 2017-08 is required for fiscal years and interim periods within those fiscal years, beginning after December, 15, 2018, early adoption is permitted. The Company is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Adoption of ASU 2017-04 is required for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption being permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations Clarifying the Definition of a Business (Topic 805), for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted for transactions that occurred before the issuance date or effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance. The standard must be applied prospectively. Upon adoption, the standard will impact how we assess acquisitions (or disposals) of assets or businesses. Management does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements. On November 17, 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash: a Consensus of the FASB Emerging Issues Task Force.” This ASU requires a company’s cash flow statement to explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash, and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. This ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. Management does not anticipate that this guidance will have a material impact on its consolidated financial statements. On August 26, 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments (Topic 230) . The amendments in this ASU were issued to reduce diversity in how certain cash receipts and payments are presented and classified in the statement of cash flows in eight specific areas. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and should be applied using a retrospective transition method to each period presented. Early application was permitted upon issuance of the ASU. Management is currently evaluating the impact of this ASU but does not expect this ASU to have a material impact on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) . The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the current expected credit losses (CECL) on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments to this ASU require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in this ASU eliminate the requirement that losses be recognized only when incurred, and instead require that an entity recognize its current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The amendments to this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in this ASU should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. Management is currently evaluating the impact of this ASU and the Company expects this ASU to have a material impact on the Company’s consolidated financial statements. On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The amendments in this ASU require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. This ASU simplifies the accounting for sale and leaseback transactions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application was permitted upon issuance of the ASU. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. Management is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. While we have not quantified the impact to our balance sheet, upon the adoption of this ASU we expect to report increased assets and liabilities on our Consolidated Statement of Financial Condition as a result of recognizing right-of-use assets and lease liabilities related to these leases and certain equipment under non-cancelable operating lease agreements, which currently are not on our Consolidated Statement of Financial Condition. In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value under certain circumstances and require enhanced disclosures about those investments. This ASU simplifies the impairment assessment of equity investments without readily determinable fair values. This ASU also eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The amendments in this ASU require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this ASU require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU No. 2016-01 to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU clarifies the principles for recognizing revenue from contracts with customers. On August 12, 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. On March 17, 2016, the FASB issued Accounting Standards Update 2016-08 to clarify the implementation guidance on principal versus agent considerations. We intend to adopt this new guidance on January 1, 2018. We are in the process of completing an analysis that includes (1)identification of all revenue streams included in the financial statements ; (2) of the revenue streams identified, determine which are within the scope of the pronouncement; (3) determination of size, timing and amount of revenue recognition for streams of income within the scope of this pronouncement; (4) determination of the sample size of contracts for further analysis; and (5) completion of analysis on sample of contracts to evaluate the impact of the new guidance. Based on this analysis, we are developing processes and procedures in 2017 to address the amendments of this ASU, including new disclosures. Additionally, we do not expect the implementation of this guidance to have a material impact on our consolidated financial statements. |
Loans and Leases Receivable | The Company's portfolio of loans held for investment is divided into two portfolio segments, consumer loans and commercial loans, which are the same segments used to determine the allowance for loan losses. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: single family and home equity and other loans within the consumer loan portfolio segment and commercial real estate, multifamily, construction/land development and commercial business loans within the commercial loan portfolio segment. |
Allowance for Loan and Lease Losses | Management considers the level of allowance for loan losses to be appropriate to cover credit losses inherent within the loans held for investment portfolio as of June 30, 2017 . In addition to the allowance for loan losses, the Company maintains a separate allowance for losses related to unfunded loan commitments, and this amount is included in accounts payable and other liabilities on the consolidated statements of financial condition. Collectively, these allowances are referred to as the allowance for credit losses. |
Derivatives and Hedging Activities | To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as certain mortgage loans held for sale or MSRs, the Company utilizes derivatives, such as forward sale commitments, futures, option contracts, interest rate swaps and "swaptions" as risk management instruments in its hedging strategy. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. We held no derivatives designated as a fair value, cash flow or foreign currency hedge instrument at June 30, 2017 or December 31, 2016 . Derivatives are reported at their respective fair values in the other assets or accounts payable and other liabilities line items on the consolidated statements of financial condition, with changes in fair value reflected in current period earnings. As permitted under U.S. GAAP, the Company nets derivative assets and liabilities when a legally enforceable master netting agreement exists between the Company and the derivative counterparty, which are documented under industry standard master agreements and credit support annexes. The Company's master netting agreements provide that following an uncured payment default or other event of default the non-defaulting party may promptly terminate all transactions between the parties and determine a net amount due to be paid to, or by, the defaulting party. An event of default may also occur under a credit support annex if a party fails to make a collateral delivery (which remains uncured following applicable notice and grace periods). The Company's right of offset requires that master netting agreements are legally enforceable and that the exercise of rights by the non-defaulting party under these agreements will not be stayed, or avoided under applicable law upon an event of default including bankruptcy, insolvency or similar proceeding. The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties is included in other assets on the Company's consolidated statements of financial condition. Any securities pledged to counterparties as collateral remain on the consolidated statement of financial condition. Refer to Note 3, Investment Securities, for further information on securities collateral pledged. |
Mortgage Banking Operations | The fair value of MSRs is determined based on the price that would be received to sell the MSRs in an orderly transaction between market participants at the measurement date. The Company determines fair value using a valuation model that calculates the net present value of estimated future cash flows. Estimates of future cash flows include contractual servicing fees, ancillary income and costs of servicing, the timing of which are impacted by assumptions, primarily expected prepayment speeds and discount rates, which relate to the underlying performance of the loans. |
Fair Value Measurement | Valuation Processes The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. The Finance Committee of the Board provides oversight and approves the Company’s Asset/Liability Management Policy ("ALMP"). The Company's ALMP governs, among other things, the application and control of the valuation models used to measure fair value. On a quarterly basis, the Company’s Asset/Liability Management Committee ("ALCO") and the Finance Committee of the Board review significant modeling variables used to measure the fair value of the Company’s financial instruments, including the significant inputs used in the valuation of single family MSRs. Additionally, ALCO periodically obtains an independent review of the MSR valuation process and procedures, including a review of the model architecture and the valuation assumptions. The Company obtains an MSR valuation from an independent valuation firm monthly to assist with the validation of the fair value estimate and the reasonableness of the assumptions used in measuring fair value. The Company’s real estate valuations are overseen by the Company’s appraisal department. The appraisal department maintains the Company’s appraisal policy and recommends changes to the policy subject to approval by the Company’s Loan Committee and the Credit Committee of the Board. The Company’s appraisals are prepared by independent third-party appraisers and the Company’s internal appraisers. Single family appraisals are generally reviewed by the Company’s single family loan underwriters. Single family appraisals with unusual, higher risk or complex characteristics, as well as commercial real estate appraisals, are reviewed by the Company’s appraisal department. We obtain pricing from third party service providers for determining the fair value of a substantial portion of our investment securities available for sale. We have processes in place to evaluate such third party pricing services to ensure information obtained and valuation techniques used are appropriate. For fair value measurements obtained from third party services, we monitor and review the results to ensure the values are reasonable and in line with market experience for similar classes of securities. While the inputs used by the pricing vendor in determining fair value are not provided, and therefore unavailable for our review, we do perform certain procedures to validate the values received, including comparisons to other sources of valuation (if available), comparisons to other independent market data and a variance analysis of prices by Company personnel that are not responsible for the performance of the investment securities. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities, and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities. Asset/Liability class Valuation methodology, inputs and assumptions Classification Cash and cash equivalents Carrying value is a reasonable estimate of fair value based on the short-term nature of the instruments. Estimated fair value classified as Level 1. Investment securities Investment securities available for sale Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 2 recurring fair value measurement Investment securities held to maturity Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Carried at amortized cost. Loans held for sale Single family loans, excluding loans transferred from held for investment Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments Level 2 recurring fair value measurement When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Estimated fair value classified as Level 3. Loans originated as held for investment and transferred to held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Carried at lower of amortized cost or fair value. Multifamily loans (DUS ® ) and other The sale price is set at the time the loan commitment is made, and as such subsequent changes in market conditions have a very limited effect, if any, on the value of these loans carried on the consolidated statements of financial condition, which are typically sold within 30 days of origination. Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 2. Asset/Liability class Valuation methodology, inputs and assumptions Classification Loans held for investment Loans held for investment, excluding collateral dependent loans and loans transferred from held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments For the carrying value of loans see Note 1–Summary of Significant Accounting Policies of the 2016 Annual Report on Form 10-K. Loans held for investment, collateral dependent Fair value is based on appraised value of collateral, which considers sales comparison and income approach methodologies. Adjustments are made for various factors, which may include: • Adjustments for variations in specific property qualities such as location, physical dissimilarities, market conditions at the time of sale, income producing characteristics and other factors Carried at lower of amortized cost or fair value of collateral, less the estimated cost to sell. Loans held for investment transferred from loans held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 3 recurring fair value measurement Mortgage servicing rights Single family MSRs For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement Multifamily MSRs and other Fair value is based on discounted estimated future servicing fees and other revenue, less estimated costs to service the loans. Carried at lower of amortized cost or fair value Estimated fair value classified as Level 3. Derivatives Eurodollar futures Fair value is based on closing exchange prices. Level 1 recurring fair value measurement Interest rate swaps Interest rate swaptions Forward sale commitments Fair value is based on quoted prices for identical or similar instruments, when available. Level 2 recurring fair value measurement Asset/Liability class Valuation methodology, inputs and assumptions Classification Interest rate lock and purchase loan commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement Other real estate owned (“OREO”) Fair value is based on appraised value of collateral, less the estimated cost to sell. See discussion of "loans held for investment, collateral dependent" above for further information on appraisals. Carried at lower of amortized cost or fair value of collateral (Level 3), less the estimated cost to sell. Federal Home Loan Bank stock Carrying value approximates fair value as FHLB stock can only be purchased or redeemed at par value. Carried at par value. Estimated fair value classified as Level 2. Deposits Demand deposits Fair value is estimated as the amount payable on demand at the reporting date. Carried at historical cost. Estimated fair value classified as Level 2. Fixed-maturity certificates of deposit Fair value is estimated using discounted cash flows based on market rates currently offered for deposits of similar remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Federal Home Loan Bank advances Fair value is estimated using discounted cash flows based on rates currently available for advances with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Long-term debt Fair value is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and fair value of investment securities available for sale | The following table sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale and held to maturity. At June 30, 2017 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 154,145 $ 1 $ (3,211 ) $ 150,935 Commercial 23,592 22 (233 ) 23,381 Municipal bonds 373,336 3,334 (3,941 ) 372,729 Collateralized mortgage obligations: Residential 187,351 273 (2,929 ) 184,695 Commercial 76,961 75 (806 ) 76,230 Corporate debt securities 30,839 61 (682 ) 30,218 U.S. Treasury securities 10,890 — (150 ) 10,740 Agency 35,457 — (119 ) 35,338 $ 892,571 $ 3,766 $ (12,071 ) $ 884,266 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,104 $ 73 $ (68 ) $ 13,109 Commercial 16,127 137 (10 ) 16,254 Collateralized mortgage obligations 3,500 — — 3,500 Municipal bonds 19,425 315 (152 ) 19,588 Corporate debt securities 100 — — 100 $ 52,256 $ 525 $ (230 ) $ 52,551 At December 31, 2016 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 181,158 $ 31 $ (4,115 ) $ 177,074 Commercial 25,896 13 (373 ) 25,536 Municipal bonds 473,153 1,333 (6,813 ) 467,673 Collateralized mortgage obligations: Residential 194,982 32 (3,813 ) 191,201 Commercial 71,870 29 (1,135 ) 70,764 Corporate debt securities 52,045 110 (1,033 ) 51,122 U.S. Treasury securities 10,882 — (262 ) 10,620 $ 1,009,986 $ 1,548 $ (17,544 ) $ 993,990 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,844 $ 71 $ (90 ) $ 13,825 Commercial 16,303 70 (64 ) 16,309 Municipal bonds 19,612 99 (459 ) 19,252 Corporate debt securities 102 — — 102 $ 49,861 $ 240 $ (613 ) $ 49,488 |
Amortized cost and fair value of held-to-maturity securities | The following table sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale and held to maturity. At June 30, 2017 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 154,145 $ 1 $ (3,211 ) $ 150,935 Commercial 23,592 22 (233 ) 23,381 Municipal bonds 373,336 3,334 (3,941 ) 372,729 Collateralized mortgage obligations: Residential 187,351 273 (2,929 ) 184,695 Commercial 76,961 75 (806 ) 76,230 Corporate debt securities 30,839 61 (682 ) 30,218 U.S. Treasury securities 10,890 — (150 ) 10,740 Agency 35,457 — (119 ) 35,338 $ 892,571 $ 3,766 $ (12,071 ) $ 884,266 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,104 $ 73 $ (68 ) $ 13,109 Commercial 16,127 137 (10 ) 16,254 Collateralized mortgage obligations 3,500 — — 3,500 Municipal bonds 19,425 315 (152 ) 19,588 Corporate debt securities 100 — — 100 $ 52,256 $ 525 $ (230 ) $ 52,551 At December 31, 2016 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 181,158 $ 31 $ (4,115 ) $ 177,074 Commercial 25,896 13 (373 ) 25,536 Municipal bonds 473,153 1,333 (6,813 ) 467,673 Collateralized mortgage obligations: Residential 194,982 32 (3,813 ) 191,201 Commercial 71,870 29 (1,135 ) 70,764 Corporate debt securities 52,045 110 (1,033 ) 51,122 U.S. Treasury securities 10,882 — (262 ) 10,620 $ 1,009,986 $ 1,548 $ (17,544 ) $ 993,990 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,844 $ 71 $ (90 ) $ 13,825 Commercial 16,303 70 (64 ) 16,309 Municipal bonds 19,612 99 (459 ) 19,252 Corporate debt securities 102 — — 102 $ 49,861 $ 240 $ (613 ) $ 49,488 |
Investment securities in an unrealized loss position | Investment securities available for sale and held to maturity that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position. At June 30, 2017 Less than 12 months 12 months or more Total (in thousands) Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (2,952 ) $ 132,749 $ (259 ) $ 10,212 $ (3,211 ) $ 142,961 Commercial (233 ) 21,660 — — (233 ) 21,660 Municipal bonds (3,805 ) 199,291 (136 ) 8,661 (3,941 ) 207,952 Collateralized mortgage obligations: Residential (1,855 ) 129,559 (1,074 ) 23,623 (2,929 ) 153,182 Commercial (545 ) 57,142 (261 ) 9,124 (806 ) 66,266 Corporate debt securities (282 ) 14,807 (400 ) 7,137 (682 ) 21,944 U.S. Treasury securities (150 ) 10,740 — — (150 ) 10,740 Agency (119 ) 35,338 — $ — (119 ) 35,338 $ (9,941 ) $ 601,286 $ (2,130 ) $ 58,757 $ (12,071 ) $ 660,043 HELD TO MATURITY Mortgage-backed securities: Residential $ (68 ) $ 6,360 $ — $ — $ (68 ) $ 6,360 Commercial (10 ) 4,533 — — (10 ) 4,533 Municipal bonds (152 ) 10,690 — — (152 ) 10,690 $ (230 ) $ 21,583 $ — $ — $ (230 ) $ 21,583 At December 31, 2016 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (3,842 ) $ 144,240 $ (273 ) $ 9,907 $ (4,115 ) $ 154,147 Commercial (373 ) 23,798 — — (373 ) 23,798 Municipal bonds (6,813 ) 283,531 — — (6,813 ) 283,531 Collateralized mortgage obligations: Residential (3,052 ) 175,490 (761 ) 11,422 (3,813 ) 186,912 Commercial (1,005 ) 60,926 (130 ) 5,349 (1,135 ) 66,275 Corporate debt securities (472 ) 24,447 (561 ) 11,677 (1,033 ) 36,124 U.S. Treasury securities (262 ) 10,620 — — (262 ) 10,620 $ (15,819 ) $ 723,052 $ (1,725 ) $ 38,355 $ (17,544 ) $ 761,407 HELD TO MATURITY Mortgage-backed securities: Residential $ (90 ) $ 5,481 $ — $ — $ (90 ) $ 5,481 Commercial (64 ) 13,156 — — (64 ) 13,156 Municipal bonds (459 ) 11,717 — — (459 ) 11,717 $ (613 ) $ 30,354 $ — $ — $ (613 ) $ 30,354 |
Computation of weighted average yield using coupon on the fair value | The following tables present the fair value of investment securities available for sale and held to maturity by contractual maturity along with the associated contractual yield for the periods indicated below. Contractual maturities for mortgage-backed securities and collateralized mortgage obligations as presented exclude the effect of expected prepayments. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature. The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis. At June 30, 2017 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 1 0.28 % $ — — % $ 1,663 1.53 % $ 149,271 1.89 % $ 150,935 1.88 % Commercial — — 18,763 2.08 4,618 2.04 — — 23,381 2.07 Municipal bonds 508 3.96 21,843 3.15 39,867 3.07 310,511 3.76 372,729 3.65 Collateralized mortgage obligations: Residential — — — — 507 1.24 184,188 1.98 184,695 1.98 Commercial — — 10,671 1.91 14,938 2.88 50,621 2.02 76,230 2.17 Agency — — 5,072 1.90 30,266 2.24 — — 35,338 2.20 Corporate debt securities — — 7,884 2.74 8,622 3.37 13,712 3.47 30,218 3.25 U.S. Treasury securities 999 0.64 — — 9,741 1.78 — — 10,740 1.68 Total available for sale $ 1,508 1.75 % $ 64,233 2.48 % $ 110,222 2.65 % $ 708,303 2.78 % $ 884,266 2.74 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 13,109 2.96 % $ 13,109 2.95 % Commercial — — 4,533 2.04 11,721 2.69 — — 16,254 2.50 Collateralized mortgage obligations — — — — — — 3,500 1.75 3,500 1.75 Municipal bonds — — 1,167 2.92 5,435 2.79 12,986 3.40 19,588 3.20 Corporate debt securities — — — — — — 100 6.00 100 6.00 Total held to maturity $ — — % $ 5,700 2.21 % $ 17,156 2.72 % $ 29,695 3.01 % $ 52,551 2.83 % At December 31, 2016 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 1 0.29 % $ — — % $ 2,122 1.59 % $ 174,951 2.03 % $ 177,074 2.02 % Commercial — — 20,951 2.13 4,585 2.06 — — 25,536 2.11 Municipal bonds 3,479 3.30 20,939 2.94 52,043 2.55 391,212 3.08 467,673 3.02 Collateralized mortgage obligations: Residential — — — — 1,639 1.32 189,562 2.06 191,201 2.06 Commercial — — 10,860 1.84 19,273 2.74 40,631 1.91 70,764 2.12 Corporate debt securities — — 10,516 2.67 21,493 3.74 19,113 3.54 51,122 3.45 U.S. Treasury securities 999 0.64 — — 9,621 1.76 — — 10,620 1.66 Total available for sale $ 4,479 2.70 % $ 63,266 2.43 % $ 110,776 2.69 % $ 815,469 2.57 % $ 993,990 2.57 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 13,825 3.11 % $ 13,825 3.11 % Commercial — — 4,581 2.06 11,728 2.71 — — 16,309 2.53 Municipal bonds — — — — 6,450 2.73 12,802 3.31 19,252 3.11 Corporate debt securities — — — — — — 102 6.00 102 6.00 Total held to maturity $ — — % $ 4,581 2.06 % $ 18,178 2.72 % $ 26,729 3.22 % $ 49,488 2.93 % |
Sales of investment securities available for sale | Sales of investment securities available for sale were as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Proceeds $ 312,247 $ 1,706 $ 314,633 $ 11,467 Gross gains 551 62 576 97 Gross losses — — (19 ) — |
Carrying value of securities pledged as collateral | The following table summarizes the carrying value of securities pledged as collateral to secure borrowings, public deposits and other purposes as permitted or required by law: (in thousands) At June 30, Federal Home Loan Bank to secure borrowings $ 203,377 Washington and California State to secure public deposits 32,495 Securities pledged to secure derivatives in a liability position 6,757 Other securities pledged 7,273 Total securities pledged as collateral $ 249,902 |
Loans and Credit Quality (Table
Loans and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment consist of the following: (in thousands) At June 30, At December 31, Consumer loans Single family (1) $ 1,148,229 $ 1,083,822 Home equity and other 414,506 359,874 1,562,735 1,443,696 Commercial loans Commercial real estate 942,122 871,563 Multifamily 780,602 674,219 Construction/land development 648,672 636,320 Commercial business 248,908 223,653 2,620,304 2,405,755 4,183,039 3,849,451 Net deferred loan fees and costs 9,521 3,577 4,192,560 3,853,028 Allowance for loan losses (36,136 ) (34,001 ) $ 4,156,424 $ 3,819,027 (1) Includes $5.1 million and $18.0 million at June 30, 2017 and December 31, 2016 , respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Activity in allowance for credit losses | Activity in the allowance for credit losses was as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Allowance for credit losses (roll-forward): Beginning balance $ 36,042 $ 32,423 $ 35,264 $ 30,659 Provision for credit losses 500 1,100 500 2,500 Recoveries, net of charge-offs 928 478 1,706 842 Ending balance $ 37,470 $ 34,001 $ 37,470 $ 34,001 Components: Allowance for loan losses $ 36,136 $ 32,656 $ 36,136 $ 32,656 Allowance for unfunded commitments 1,334 1,345 1,334 1,345 Allowance for credit losses $ 37,470 $ 34,001 $ 37,470 $ 34,001 |
Allowance for credit losses by loan portfolio segment and loan class | Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Three Months Ended June 30, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 7,954 $ (2 ) $ 683 $ (347 ) $ 8,288 Home equity and other 6,546 (186 ) 67 429 6,856 14,500 (188 ) 750 82 15,144 Commercial loans Commercial real estate 7,036 — — 419 7,455 Multifamily 3,793 — — 266 4,059 Construction/land development 8,069 — 214 (57 ) 8,226 Commercial business 2,644 (16 ) 168 (210 ) 2,586 21,542 (16 ) 382 418 22,326 Total allowance for credit losses $ 36,042 $ (204 ) $ 1,132 $ 500 $ 37,470 Three Months Ended June 30, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 9,026 $ — $ 2 $ (734 ) $ 8,294 Home equity and other 4,852 (204 ) 87 665 5,400 13,878 (204 ) 89 (69 ) 13,694 Commercial loans Commercial real estate 5,175 — — 870 6,045 Multifamily 1,832 — — 216 2,048 Construction/land development 9,286 — 573 (490 ) 9,369 Commercial business 2,252 — 20 573 2,845 18,545 — 593 1,169 20,307 Total allowance for credit losses $ 32,423 $ (204 ) $ 682 $ 1,100 $ 34,001 Six Months Ended June 30, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,196 $ (2 ) $ 1,016 $ (922 ) $ 8,288 Home equity and other 6,153 (511 ) 353 861 6,856 14,349 (513 ) 1,369 (61 ) 15,144 Commercial loans Commercial real estate 6,680 — — 775 7,455 Multifamily 3,086 — — 973 4,059 Construction/land development 8,553 — 434 (761 ) 8,226 Commercial business 2,596 (16 ) 432 (426 ) 2,586 20,915 (16 ) 866 561 22,326 Total allowance for credit losses $ 35,264 $ (529 ) $ 2,235 $ 500 $ 37,470 Six Months Ended June 30, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,942 $ (32 ) $ 86 $ (702 ) $ 8,294 Home equity and other 4,620 (298 ) 338 740 5,400 13,562 (330 ) 424 38 13,694 Commercial loans Commercial real estate 4,847 — — 1,198 6,045 Multifamily 1,194 — — 854 2,048 Construction/land development 9,271 (42 ) 783 (643 ) 9,369 Commercial business 1,785 (26 ) 33 1,053 2,845 17,097 (68 ) 816 2,462 20,307 Total allowance for credit losses $ 30,659 $ (398 ) $ 1,240 $ 2,500 $ 34,001 |
Recorded investment in loans by Impairment Methodology | The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology. At June 30, 2017 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 7,964 $ 324 $ 8,288 $ 1,059,203 $ 83,968 $ 1,143,171 Home equity and other 6,810 46 6,856 412,729 1,701 414,430 14,774 370 15,144 1,471,932 85,669 1,557,601 Commercial loans Commercial real estate 7,455 — 7,455 938,765 3,357 942,122 Multifamily 4,059 — 4,059 779,774 828 780,602 Construction/land development 8,226 — 8,226 647,649 1,023 648,672 Commercial business 2,414 172 2,586 247,083 1,825 248,908 22,154 172 22,326 2,613,271 7,033 2,620,304 Total loans evaluated for impairment 36,928 542 37,470 4,085,203 92,702 4,177,905 Loans held for investment carried at fair value 5,134 (1) Total loans held for investment $ 36,928 $ 542 $ 37,470 $ 4,085,203 $ 92,702 $ 4,183,039 (1) Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2016 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 7,871 $ 325 $ 8,196 $ 985,219 $ 80,676 $ 1,065,895 Home equity and other 6,104 49 6,153 358,350 1,463 359,813 13,975 374 14,349 1,343,569 82,139 1,425,708 Commercial loans Commercial real estate 6,680 — 6,680 869,225 2,338 871,563 Multifamily 3,086 — 3,086 673,374 845 674,219 Construction/land development 8,553 — 8,553 634,427 1,893 636,320 Commercial business 2,591 5 2,596 220,360 3,293 223,653 20,910 5 20,915 2,397,386 8,369 2,405,755 Total loans evaluated for impairment 34,885 379 35,264 3,740,955 90,508 3,831,463 Loans held for investment carried at fair value 17,988 (1) Total loans held for investment $ 34,885 $ 379 $ 35,264 $ 3,740,955 $ 90,508 $ 3,849,451 (1) Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Impaired loans by loan portfolio segment and loan class | The following tables present impaired loans by loan portfolio segment and loan class. At June 30, 2017 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 79,782 $ 81,373 $ — Home equity and other 1,185 1,211 — 80,967 82,584 — Commercial loans Commercial real estate 3,357 3,874 — Multifamily 828 845 — Construction/land development 1,023 1,549 — Commercial business 395 1,623 — 5,603 7,891 — $ 86,570 $ 90,475 $ — With an allowance recorded: Consumer loans Single family $ 4,186 $ 4,277 $ 324 Home equity and other 516 516 46 4,702 4,793 370 Commercial loans Commercial business 1,430 1,481 172 $ 6,132 $ 6,274 $ 542 Total: Consumer loans Single family (3) $ 83,968 $ 85,650 $ 324 Home equity and other 1,701 1,727 46 85,669 87,377 370 Commercial loans Commercial real estate 3,357 3,874 — Multifamily 828 845 — Construction/land development 1,023 1,549 — Commercial business 1,825 3,104 172 7,033 9,372 172 Total impaired loans $ 92,702 $ 96,749 $ 542 (1) Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $77.5 million in single family performing trouble debt restructurings "TDRs". At December 31, 2016 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 77,756 $ 80,573 $ — Home equity and other 946 977 — 78,702 81,550 — Commercial loans Commercial real estate 2,338 2,846 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Commercial business 2,945 4,365 — 8,021 10,881 — $ 86,723 $ 92,431 $ — With an allowance recorded: Consumer loans Single family $ 2,920 $ 3,011 $ 325 Home equity and other 517 517 49 3,437 3,528 374 Commercial loans Commercial business 348 347 5 348 347 5 $ 3,785 $ 3,875 $ 379 Total: Consumer loans Single family (3) $ 80,676 $ 83,584 $ 325 Home equity and other 1,463 1,494 49 82,139 85,078 374 Commercial loans Commercial real estate 2,338 2,846 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Commercial business 3,293 4,712 5 8,369 11,228 5 Total impaired loans $ 90,508 $ 96,306 $ 379 (1) Includes partial charge-offs and nonaccrual interest paid. (2) Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. (3) Includes $73.1 million in single family performing TDRs. |
Average recorded investment in impaired loans | The following tables provide the average recorded investment and interest income recognized on impaired loans by portfolio segment and class. (in thousands) Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Consumer loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Single family $ 83,653 $ 790 $ 81,754 $ 740 Home equity and other 1,568 24 1,412 17 85,221 814 83,166 757 Commercial loans Commercial real estate 4,441 37 3,125 4 Multifamily 832 6 1,864 6 Construction/land development 1,105 21 2,458 23 Commercial business 2,380 36 2,802 23 8,758 100 10,249 56 $ 93,979 $ 914 $ 93,415 $ 813 (in thousands) Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Consumer loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Single family $ 82,661 $ 1,540 $ 81,612 $ 1,444 Home equity and other 1,533 43 1,504 33 84,194 1,583 83,116 1,477 Commercial loans Commercial real estate 3,740 96 3,124 8 Multifamily 836 12 1,878 35 Construction/land development 1,368 47 3,023 44 Commercial business 2,684 83 2,503 41 8,628 238 10,528 128 $ 92,822 $ 1,821 $ 93,644 $ 1,605 |
Designated loan grades by loan portfolio segment and loan class | The following tables summarize designated loan grades by loan portfolio segment and loan class. At June 30, 2017 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,117,636 (1) $ 3,508 $ 15,243 $ 11,842 $ 1,148,229 Home equity and other 412,039 205 659 1,603 414,506 1,529,675 3,713 15,902 13,445 1,562,735 Commercial loans Commercial real estate 886,638 42,739 8,713 4,032 942,122 Multifamily 765,652 12,737 1,893 320 780,602 Construction/land development 632,857 14,366 1,449 — 648,672 Commercial business 195,504 46,362 4,549 2,493 248,908 2,480,651 116,204 16,604 6,845 2,620,304 $ 4,010,326 $ 119,917 $ 32,506 $ 20,290 $ 4,183,039 (1) Includes $5.1 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2016 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,051,463 (1) $ 4,348 $ 15,172 $ 12,839 $ 1,083,822 Home equity and other 357,191 597 514 1,572 359,874 1,408,654 4,945 15,686 14,411 1,443,696 Commercial loans Commercial real estate 809,996 52,519 7,165 1,883 871,563 Multifamily 660,234 13,140 508 337 674,219 Construction/land development 615,675 16,074 3,083 1,488 636,320 Commercial business 171,883 42,767 3,385 5,618 223,653 2,257,788 124,500 14,141 9,326 2,405,755 $ 3,666,442 $ 129,445 $ 29,827 $ 23,737 $ 3,849,451 (1) Includes $18.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Past due loans by portfolio segment and loan class | The following table presents an aging analysis of past due loans by loan portfolio segment and loan class. At June 30, 2017 (in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and accruing Consumer loans Single family $ 9,911 $ 4,246 $ 45,545 $ 59,702 $ 1,088,527 (1) $ 1,148,229 $ 33,824 (2) Home equity and other 1,096 73 1,603 2,772 411,734 414,506 — 11,007 4,319 47,148 62,474 1,500,261 1,562,735 33,824 Commercial loans Commercial real estate — — 1,242 1,242 940,880 942,122 — Multifamily — — 320 320 780,282 780,602 — Construction/land development 147 — — 147 648,525 648,672 — Commercial business 424 — 590 1,014 247,894 248,908 — 571 — 2,152 2,723 2,617,581 2,620,304 — $ 11,578 $ 4,319 $ 49,300 $ 65,197 $ 4,117,842 $ 4,183,039 $ 33,824 At December 31, 2016 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or Consumer loans Single family $ 4,310 $ 5,459 $ 53,563 $ 63,332 $ 1,020,490 (1) $ 1,083,822 $ 40,846 (2) Home equity and other 251 442 1,571 2,264 357,610 359,874 — 4,561 5,901 55,134 65,596 1,378,100 1,443,696 40,846 Commercial loans Commercial real estate 71 205 2,127 2,403 869,160 871,563 — Multifamily — — 337 337 673,882 674,219 — Construction/land development — — 1,376 1,376 634,944 636,320 — Commercial business 202 — 2,414 2,616 221,037 223,653 — 273 205 6,254 6,732 2,399,023 2,405,755 — $ 4,834 $ 6,106 $ 61,388 $ 72,328 $ 3,777,123 $ 3,849,451 $ 40,846 (1) Includes $5.1 million and $18.0 million of loans at June 30, 2017 and December 31, 2016 , respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss and are a subset of the 90 days or more past due balance. |
Performing and non-performing loan balances by portfolio segment and loan class | The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. At June 30, 2017 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,136,508 (1) $ 11,721 $ 1,148,229 Home equity and other 412,903 1,603 414,506 1,549,411 13,324 1,562,735 Commercial loans Commercial real estate 940,880 1,242 942,122 Multifamily 780,282 320 780,602 Construction/land development 648,672 — 648,672 Commercial business 248,318 590 248,908 2,618,152 2,152 2,620,304 $ 4,167,563 $ 15,476 $ 4,183,039 At December 31, 2016 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,071,105 (1) $ 12,717 $ 1,083,822 Home equity and other 358,303 1,571 359,874 1,429,408 14,288 1,443,696 Commercial loans Commercial real estate 869,436 2,127 871,563 Multifamily 673,882 337 674,219 Construction/land development 634,944 1,376 636,320 Commercial business 221,239 2,414 223,653 2,399,501 6,254 2,405,755 $ 3,828,909 $ 20,542 $ 3,849,451 (1) Includes $5.1 million and $18.0 million of loans at June 30, 2017 and December 31, 2016 , where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
TDR activity by loan portfolio segment and loan class | The following tables present information about TDR activity during the periods presented. Three Months Ended June 30, 2017 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 13 $ 2,097 $ — Payment restructure 30 6,015 — Home equity and other Payment restructure 1 277 — Total consumer Interest rate reduction 13 2,097 — Payment restructure 31 6,292 — 44 8,389 — Commercial loans Construction/land development Payment restructure 1 436 — Total commercial Payment restructure 1 436 — 1 436 — Total loans Interest rate reduction 13 2,097 — Payment restructure 32 6,728 — 45 $ 8,825 $ — Three Months Ended June 30, 2016 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 13 $ 2,369 $ — Payment restructure 19 3,747 — Home equity and other Interest rate reduction 1 13 — Total consumer Interest rate reduction 14 2,382 — Payment restructure 19 3,747 — 33 6,129 — Total loans Interest rate reduction 14 2,382 — Payment restructure 19 3,747 — 33 $ 6,129 $ — Six Months Ended June 30, 2017 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 39 $ 6,920 $ — Payment restructure 42 8,892 — Home equity and other Payment restructure 2 351 — Total consumer Interest rate reduction 39 6,920 — Payment restructure 44 9,243 — 83 16,163 — Commercial loans Construction/land development Payment restructure 1 436 — Commercial business Payment restructure 1 18 — Total commercial Payment restructure 2 454 — 2 454 — Total loans Interest rate reduction 39 6,920 — Payment restructure 46 9,697 — 85 $ 16,617 $ — Six Months Ended June 30, 2016 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 18 $ 3,389 $ — Payment restructure 34 6,918 — Home equity and other Interest rate reduction 1 13 — Total consumer Interest rate reduction 19 3,402 — Payment restructure 34 6,918 — 53 10,320 — Total loans Interest rate reduction 19 3,402 — Payment restructure 34 6,918 — 53 $ 10,320 $ — |
TDR balances that subsequently re-defaulted | The following table presents loans that were modified as TDRs within the previous 12 months and subsequently re-defaulted during the three and six months ended June 30, 2017 and 2016 , respectively. A TDR loan is considered re-defaulted when it becomes doubtful that the objectives of the modifications will be met, generally when a consumer loan TDR becomes 60 days or more past due on principal or interest payments or when a commercial loan TDR becomes 90 days or more past due on principal or interest payments. Three Months Ended June 30, 2017 2016 (dollars in thousands) Number of loan relationships that re-defaulted Recorded Number of loan relationships that re-defaulted Recorded Consumer loans Single family 7 $ 1,382 8 $ 2,367 Home equity and other — — 1 93 7 $ 1,382 9 $ 2,460 Six Months Ended June 30, 2017 2016 (dollars in thousands) Number of loan relationships that re-defaulted Recorded Number of loan relationships that re-defaulted Recorded Consumer loans Single family 8 $ 1,652 9 $ 2,638 Home equity and other — — 1 93 8 $ 1,652 10 $ 2,731 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Deposit balances, including stated rates | Deposit balances, including stated rates, were as follows. (in thousands) At June 30, At December 31, Noninterest-bearing accounts $ 1,015,301 $ 964,829 NOW accounts, 0.00% to 1.00% at June 30, 2017 and December 31, 2016 541,592 468,812 Statement savings accounts, due on demand, 0.05% to 1.13% at June 30, 2017 and December 31, 2016 311,202 301,361 Money market accounts, due on demand, 0.00% to 1.70% and at June 30, 2017 and December 31, 2016 1,587,741 1,603,141 Certificates of deposit, 0.05% to 3.80% at June 30, 2017 and December 31, 2016 1,291,935 1,091,558 $ 4,747,771 $ 4,429,701 |
Interest expense on deposits | Interest expense on deposits was as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 NOW accounts $ 503 $ 489 $ 980 $ 981 Statement savings accounts 253 255 505 509 Money market accounts 1,935 1,606 4,165 2,973 Certificates of deposit 3,176 2,099 5,840 3,555 $ 5,867 $ 4,449 $ 11,490 $ 8,018 |
Certificates of deposit outstanding | Certificates of deposit outstanding mature as follows. (in thousands) At June 30, Within one year $ 967,731 One to two years 265,348 Two to three years 32,627 Three to four years 14,060 Four to five years 11,944 Thereafter 225 $ 1,291,935 |
Derivatives and Hedging Activ26
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amount and fair value for derivatives | The notional amounts and fair values for derivatives consist of the following. At June 30, 2017 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 2,110,125 $ 4,665 $ (3,818 ) Interest rate swaptions 30,000 1 — Interest rate lock and purchase loan commitments 831,294 22,331 (48 ) Interest rate swaps 1,912,850 14,139 (21,139 ) Eurodollar futures 1,188,000 98 (52 ) Total derivatives before netting $ 6,072,269 41,234 (25,057 ) Netting adjustment/Cash collateral (1) 16,873 21,329 Carrying value on consolidated statements of financial condition $ 58,107 $ (3,728 ) (1) Includes cash collateral of $38.2 million at June 30, 2017 as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. At December 31, 2016 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 3,596,677 $ 24,623 $ (15,203 ) Interest rate swaptions 20,000 1 — Interest rate lock and purchase loan commitments 746,102 19,586 (367 ) Interest rate swaps 1,689,850 15,016 (26,829 ) Total derivatives before netting $ 6,052,629 59,226 (42,399 ) Netting adjustment/Cash collateral (1) 10,174 37,836 Carrying value on consolidated statements of financial condition $ 69,400 $ (4,563 ) (1) Includes cash collateral of $48.0 million at December 31, 2016 as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. |
Fair value, concentration of risk | The following tables present gross and net information about derivative instruments. At June 30, 2017 (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 41,234 $ 16,873 $ 58,107 $ — $ 58,107 Derivative liabilities $ (25,057 ) $ 21,329 $ (3,728 ) $ 2,616 $ (1,112 ) At December 31, 2016 (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 59,226 $ 10,174 $ 69,400 $ — $ 69,400 Derivative liabilities $ (42,399 ) $ 37,836 $ (4,563 ) $ 1,820 $ (2,743 ) (1) Includes cash collateral of $38.2 million and $48.0 million at June 30, 2017 and December 31, 2016 respectively, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. |
Net gains (losses) recognized on economic hedge derivatives | The following table presents the net gain (loss) recognized on derivatives, including economic hedge derivatives, within the respective line items in the statement of operations for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Recognized in noninterest income: Net gain (loss) on loan origination and sale activities (1) $ (10,109 ) $ 761 $ (11,608 ) $ (331 ) Loan servicing income (2) 8,874 22,241 9,253 53,948 Other (3) — (390 ) — (1,352 ) $ (1,235 ) $ 22,612 $ (2,355 ) $ 52,265 (1) Comprised of interest rate lock commitments ("IRLCs") and forward contracts used as an economic hedge of IRLCs and single family mortgage loans held for sale. (2) Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs. (3) Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of fair value option loans held for investment. |
Mortgage Banking Operations (Ta
Mortgage Banking Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Mortgage Banking [Abstract] | |
Mortgage loans on real estate, by loan | Loans held for sale consisted of the following. (in thousands) At June 30, At December 31, Single family $ 680,959 $ 656,334 Multifamily DUS ® (1) 39,099 35,506 Other (2) 64,498 22,719 Total loans held for sale $ 784,556 $ 714,559 (1) Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS" ® ) is a registered trademark of Fannie Mae. (2) Includes multifamily and commercial loans originated from sources other than DUS ® . Loans sold consisted of the following. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Single family $ 1,808,500 $ 2,173,392 $ 3,548,237 $ 3,644,975 Multifamily DUS ® 35,312 109,394 112,161 157,364 Other (1) 24,695 31,813 37,881 31,813 Total loans sold $ 1,868,507 $ 2,314,599 $ 3,698,279 $ 3,834,152 (1) Includes multifamily and commercial loans originated from sources other than DUS ® . |
Net gain on loan origination and sale activity | Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Single family: Servicing value and secondary market gains (1) $ 57,353 $ 73,685 $ 107,891 $ 127,812 Loan origination and administration fees 6,823 7,355 12,604 12,683 Total single family 64,176 81,040 120,495 140,495 Multifamily DUS ® 1,273 3,655 4,633 5,184 Other (2) 459 935 1,061 1,214 Total gain on loan origination and sale activities $ 65,908 $ 85,630 $ 126,189 $ 146,893 (1) Comprised of gains and losses on interest rate lock and purchase loan commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold. (2) Includes multifamily and commercial loans originated from sources other than DUS ® . |
Company's portfolio of loans serviced for others | The composition of loans serviced for others is presented below at the unpaid principal balance. (in thousands) At June 30, At December 31, Single family U.S. government and agency $ 20,574,300 $ 18,931,835 Other 530,308 556,621 21,104,608 19,488,456 Commercial Multifamily DUS ® 1,135,722 1,108,040 Other 75,336 69,323 1,211,058 1,177,363 Total loans serviced for others $ 22,315,666 $ 20,665,819 |
Mortgage repurchase losses | The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Balance, beginning of period $ 2,863 $ 2,725 $ 3,382 $ 2,922 Additions (reductions), net (1) 328 885 (32 ) 912 Realized losses (2) (201 ) (231 ) (360 ) (455 ) Balance, end of period $ 2,990 $ 3,379 $ 2,990 $ 3,379 (1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. (2) Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expense. |
Revenue from mortgage servicing, including the effects of derivative risk management instruments | Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Servicing income, net: Servicing fees and other $ 15,977 $ 12,923 $ 32,156 $ 25,356 Changes in fair value of single family MSRs due to modeled amortization (1) (8,909 ) (7,758 ) (17,429 ) (15,015 ) Amortization of multifamily MSRs (761 ) (648 ) (1,692 ) (1,285 ) 6,307 4,517 13,035 9,056 Risk management, single family MSRs: Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (6,417 ) (14,055 ) (4,285 ) (42,269 ) Net gain from derivatives economically hedging MSR 8,874 22,241 9,253 53,948 2,457 8,186 4,968 11,679 Mortgage servicing income $ 8,764 $ 12,703 $ 18,003 $ 20,735 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. |
Key economic assumptions used in measuring initial FV of capitalized single family MSRs | Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows. Three Months Ended June 30, Six Months Ended June 30, (rates per annum) (1) 2017 2016 2017 2016 Constant prepayment rate ("CPR") (2) 14.75 % 15.62 % 13.39 % 16.30 % Discount rate (3) 10.30 % 10.57 % 10.29 % 10.44 % (1) Weighted average rates for sales during the period for sales of loans with similar characteristics. (2) Represents the expected lifetime average. (3) Discount rate is a rate based on market observations. |
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets | Key economic assumptions and the sensitivity of the current fair value for single family MSRs to immediate adverse changes in those assumptions were as follows. (dollars in thousands) At June 30, 2017 Fair value of single family MSR $ 236,621 Expected weighted-average life (in years) 6.02 Constant prepayment rate (1) 12.94 % Impact on 25 basis points adverse change in interest rates $ (17,984 ) Impact on 50 basis points adverse change in interest rates $ (37,908 ) Discount rate 10.40 % Impact on fair value of 100 basis points increase $ (8,206 ) Impact on fair value of 200 basis points increase $ (15,868 ) (1) Represents the expected lifetime average. |
Changes in single family MSRs measured at fair value | The changes in single family MSRs measured at fair value are as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance $ 235,997 $ 133,449 $ 226,113 $ 156,604 Additions and amortization: Originations 15,748 19,264 31,666 31,580 Purchases 211 — 565 — Sale of single family MSRs — — — — Changes due to modeled amortization (1) (8,909 ) (7,758 ) (17,429 ) (15,015 ) Net additions and amortization 7,050 11,506 14,802 16,565 Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (6,426 ) (14,055 ) (4,294 ) (42,269 ) Ending balance $ 236,621 $ 130,900 $ 236,621 $ 130,900 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. |
Changes in multifamily MSRs measured at the lower of amortized cost or fair value | The changes in multifamily MSRs measured at the lower of amortized cost or fair value were as follows. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance $ 21,424 $ 15,402 $ 19,747 $ 14,651 Origination 937 1,612 3,545 3,000 Amortization (761 ) (648 ) (1,692 ) (1,285 ) Ending balance $ 21,600 $ 16,366 $ 21,600 $ 16,366 |
Projected amortization expense for the gross carrying value of multifamily MSRs | At June 30, 2017 , the expected weighted-average life of the Company’s multifamily MSRs was 10.21 years . Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows. (in thousands) At June 30, 2017 Remainder of 2017 $ 1,498 2018 2,944 2019 2,842 2020 2,760 2021 2,546 2022 and thereafter 9,010 Carrying value of multifamily MSR $ 21,600 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Methodologies | The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities. Asset/Liability class Valuation methodology, inputs and assumptions Classification Cash and cash equivalents Carrying value is a reasonable estimate of fair value based on the short-term nature of the instruments. Estimated fair value classified as Level 1. Investment securities Investment securities available for sale Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 2 recurring fair value measurement Investment securities held to maturity Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Carried at amortized cost. Loans held for sale Single family loans, excluding loans transferred from held for investment Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments Level 2 recurring fair value measurement When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Estimated fair value classified as Level 3. Loans originated as held for investment and transferred to held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Carried at lower of amortized cost or fair value. Multifamily loans (DUS ® ) and other The sale price is set at the time the loan commitment is made, and as such subsequent changes in market conditions have a very limited effect, if any, on the value of these loans carried on the consolidated statements of financial condition, which are typically sold within 30 days of origination. Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 2. Asset/Liability class Valuation methodology, inputs and assumptions Classification Loans held for investment Loans held for investment, excluding collateral dependent loans and loans transferred from held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments For the carrying value of loans see Note 1–Summary of Significant Accounting Policies of the 2016 Annual Report on Form 10-K. Loans held for investment, collateral dependent Fair value is based on appraised value of collateral, which considers sales comparison and income approach methodologies. Adjustments are made for various factors, which may include: • Adjustments for variations in specific property qualities such as location, physical dissimilarities, market conditions at the time of sale, income producing characteristics and other factors Carried at lower of amortized cost or fair value of collateral, less the estimated cost to sell. Loans held for investment transferred from loans held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 3 recurring fair value measurement Mortgage servicing rights Single family MSRs For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement Multifamily MSRs and other Fair value is based on discounted estimated future servicing fees and other revenue, less estimated costs to service the loans. Carried at lower of amortized cost or fair value Estimated fair value classified as Level 3. Derivatives Eurodollar futures Fair value is based on closing exchange prices. Level 1 recurring fair value measurement Interest rate swaps Interest rate swaptions Forward sale commitments Fair value is based on quoted prices for identical or similar instruments, when available. Level 2 recurring fair value measurement Asset/Liability class Valuation methodology, inputs and assumptions Classification Interest rate lock and purchase loan commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement Other real estate owned (“OREO”) Fair value is based on appraised value of collateral, less the estimated cost to sell. See discussion of "loans held for investment, collateral dependent" above for further information on appraisals. Carried at lower of amortized cost or fair value of collateral (Level 3), less the estimated cost to sell. Federal Home Loan Bank stock Carrying value approximates fair value as FHLB stock can only be purchased or redeemed at par value. Carried at par value. Estimated fair value classified as Level 2. Deposits Demand deposits Fair value is estimated as the amount payable on demand at the reporting date. Carried at historical cost. Estimated fair value classified as Level 2. Fixed-maturity certificates of deposit Fair value is estimated using discounted cash flows based on market rates currently offered for deposits of similar remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Federal Home Loan Bank advances Fair value is estimated using discounted cash flows based on rates currently available for advances with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Long-term debt Fair value is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. |
Schedule of Fair Value Hierarchy Measurement | The following table presents the levels of the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis. (in thousands) Fair Value at June 30, 2017 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 150,935 $ — $ 150,935 $ — Commercial 23,381 — 23,381 — Municipal bonds 372,729 — 372,729 — Collateralized mortgage obligations: Residential 184,695 — 184,695 — Commercial 76,230 — 76,230 — Corporate debt securities 30,218 — 30,218 — U.S. Treasury securities 10,740 — 10,740 — Agency 35,338 — 35,338 — Single family mortgage servicing rights 236,621 — — 236,621 Single family loans held for sale 680,959 — 651,700 29,259 Single family loans held for investment 5,134 — — 5,134 Derivatives Eurodollar futures 98 98 — — Forward sale commitments 4,665 — 4,665 — Interest rate swaptions 1 — 1 — Interest rate lock and purchase loan commitments 22,331 — — 22,331 Interest rate swaps 14,139 — 14,139 — Total assets $ 1,848,214 $ 98 $ 1,554,771 $ 293,345 Liabilities: Derivatives Eurodollar futures $ 52 $ 52 $ — $ — Forward sale commitments 3,818 — 3,818 — Interest rate lock and purchase loan commitments 48 — — 48 Interest rate swaps 21,139 — 21,139 — Total liabilities $ 25,057 $ 52 $ 24,957 $ 48 (in thousands) Fair Value at December 31, 2016 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 177,074 $ — $ 177,074 $ — Commercial 25,536 — 25,536 — Municipal bonds 467,673 — 467,673 — Collateralized mortgage obligations: Residential 191,201 — 191,201 — Commercial 70,764 — 70,764 — Corporate debt securities 51,122 — 51,122 — U.S. Treasury securities 10,620 — 10,620 — Single family mortgage servicing rights 226,113 — — 226,113 Single family loans held for sale 656,334 — 614,524 41,810 Single family loans held for investment 17,988 — — 17,988 Derivatives Forward sale commitments 24,623 — 24,623 — Interest rate swaptions 1 — 1 — Interest rate lock and purchase loan commitments 19,586 — — 19,586 Interest rate swaps 15,016 — 15,016 — Total assets $ 1,953,651 $ — $ 1,648,154 $ 305,497 Liabilities: Derivatives Forward sale commitments $ 15,203 $ — $ 15,203 $ — Interest rate lock and purchase loan commitments 367 — — 367 Interest rate swaps 26,829 — 26,829 — Total liabilities $ 42,399 $ — $ 42,032 $ 367 |
Fair Value Inputs, Assets, Quantitative Information | The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock and purchase loan commitments. (dollars in thousands) At June 30, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 22,283 Income approach Fall-out factor 0.40% 62.52% 14.30% Value of servicing 0.64% 1.92% 1.02% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 19,219 Income approach Fall-out factor 0.50% 60.34% 11.95% Value of servicing 0.65% 2.27% 1.08% The following information presents significant Level 3 unobservable inputs used to measure fair value of single family loans held for investment where fair value option was elected. (dollars in thousands) At June 30, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 5,134 Income approach Implied spread to benchmark interest rate curve 3.53% 4.88% 4.21% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 17,988 Income approach Implied spread to benchmark interest rate curve 3.62% 4.97% 4.49% The following information presents significant Level 3 unobservable inputs used to measure fair value of certain single family loans held for sale where fair value option was elected. (dollars in thousands) At June 30, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 29,259 Income approach Implied spread to benchmark interest rate curve 3.24% 5.26% 4.47% Market price movement from comparable bond (0.27)% (0.09)% (0.18)% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 41,810 Income approach Implied spread to benchmark interest rate curve 3.46% 6.14% 4.23% Market price movement from comparable bond (0.49)% (0.11)% (0.27)% |
Schedule of Fair Value Changes and Activity for Level 3 | The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance, net $ 27,136 $ 28,482 $ 19,219 $ 17,711 Total realized/unrealized gains 34,127 58,767 69,586 103,295 Settlements (38,980 ) (47,258 ) (66,522 ) (81,015 ) Ending balance, net $ 22,283 $ 39,991 $ 22,283 $ 39,991 The following table presents fair value changes and activity for Level 3 loans held for sale and loans held for investment. Three Months Ended June 30, 2017 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 40,331 $ 197 $ 13,755 $ (25,884 ) $ 860 $ 29,259 Loans held for investment 19,042 — (13,575 ) (479 ) 146 5,134 Three Months Ended June 30, 2016 Loans held for sale $ 45,558 $ 7,480 $ (4,582 ) $ (3,696 ) $ (1,018 ) $ 43,742 Loans held for investment 18,327 106 4,572 (503 ) (140 ) 22,362 Six Months Ended June 30, 2017 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 41,810 $ 2,996 $ 13,066 $ (29,110 ) $ 497 $ 29,259 Loans held for investment 17,988 — (12,369 ) (479 ) (6 ) 5,134 Six Months Ended June 30, 2016 Loans held for sale $ 49,322 $ 7,963 $ (4,582 ) $ (8,525 ) $ (436 ) $ 43,742 Loans held for investment 21,544 106 4,572 (3,583 ) (277 ) 22,362 |
Fair Value Measurements on Nonrecurring Basis | The following tables present assets that had changes in their recorded fair value during the three and six months ended June 30, 2017 and 2016 and what we still held at the end of the respective reporting period. At or for the Three Months Ended June 30, 2017 (in thousands) Fair Value of Assets Held at June 30, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,003 $ — $ — $ 2,003 $ 162 At or for the Three Months Ended June 30, 2016 (in thousands) Fair Value of Assets Held at June 30, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,581 $ — $ — $ 2,581 $ 20 At or for the Six Months Ended June 30, 2017 (in thousands) Fair Value of Assets Held at June 30, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,003 $ — $ — $ 2,003 $ 140 At or for the Six Months Ended June 30, 2016 (in thousands) Fair Value of Assets Held at June 30, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 2,581 $ — $ — $ 2,581 $ (14 ) Other real estate owned (2) 5,485 — — 5,485 (391 ) Total $ 8,066 $ — $ — $ 8,066 $ (405 ) (1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. (2) Represents other real estate owned where an updated fair value of collateral is used to adjust the carrying amount subsequent to the initial classification as other real estate owned. |
Fair Value, by Balance Sheet Grouping | The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis. At June 30, 2017 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 54,447 $ 54,447 $ 54,447 $ — $ — Investment securities held to maturity 52,256 52,551 — 52,551 — Loans held for investment 4,151,290 4,205,010 — — 4,205,010 Loans held for sale – transferred from held for investment 62,183 62,183 — — 62,183 Loans held for sale – multifamily and other 41,414 41,414 — 41,414 — Mortgage servicing rights – multifamily 21,600 23,662 — — 23,662 Federal Home Loan Bank stock 41,769 41,769 — 41,769 — Liabilities: Deposits $ 4,747,771 $ 4,727,531 $ — $ 4,727,531 $ — Federal Home Loan Bank advances 867,290 869,559 — 869,559 — Long-term debt 125,234 122,712 — 122,712 — At December 31, 2016 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 53,932 $ 53,932 $ 53,932 $ — $ — Investment securities held to maturity 49,861 49,488 — 49,488 — Loans held for investment 3,801,039 3,840,990 — — 3,840,990 Loans held for sale – transferred from held for investment 17,512 17,512 — — 17,512 Loans held for sale – multifamily 40,712 40,712 — 40,712 — Mortgage servicing rights – multifamily 19,747 21,610 — — 21,610 Federal Home Loan Bank stock 40,347 40,347 — 40,347 — Liabilities: Deposits $ 4,429,701 $ 4,410,213 $ — $ 4,410,213 $ — Federal Home Loan Bank advances 868,379 870,782 — 870,782 — Long-term debt 125,147 122,357 — 122,357 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per share, Basic and Diluted | The following table summarizes the calculation of earnings per share. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2017 2016 2017 2016 Net income $ 11,209 $ 21,749 $ 20,192 $ 28,156 Weighted average shares: Basic weighted-average number of common shares outstanding 26,866,230 24,708,375 26,843,813 24,192,441 Dilutive effect of outstanding common stock equivalents (1) 218,378 203,544 227,215 202,207 Diluted weighted-average number of common stock outstanding 27,084,608 24,911,919 27,071,028 24,394,648 Earnings per share: Basic earnings per share $ 0.42 $ 0.88 $ 0.75 $ 1.16 Diluted earnings per share $ 0.41 $ 0.87 $ 0.75 $ 1.15 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the three and six months ended June 30, 2017 and 2016 were certain stock options and unvested restricted stock issued to key senior management personnel and directors of the Company. The aggregate number of common stock equivalents related to such options and unvested restricted shares, which could potentially be dilutive in future periods, was 6,417 at June 30, 2017 and zero at June 30, 2016 . |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Condensed Income Statement | Financial highlights by operating segment were as follows. Three Months Ended June 30, 2017 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 4,420 $ 42,448 $ 46,868 Provision for credit losses — 500 500 Noninterest income 72,732 8,276 81,008 Noninterest expense 74,613 36,631 111,244 Income before income taxes 2,539 13,593 16,132 Income tax expense 776 4,147 4,923 Net income $ 1,763 $ 9,446 $ 11,209 Total assets $ 992,668 $ 5,593,889 $ 6,586,557 Three Months Ended June 30, 2016 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 6,089 $ 38,393 $ 44,482 Provision for credit losses — 1,100 1,100 Noninterest income 94,295 8,181 102,476 Noninterest expense 76,928 34,103 111,031 Income before income taxes 23,456 11,371 34,827 Income tax expense 8,786 4,292 13,078 Net income $ 14,670 $ 7,079 $ 21,749 Total assets $ 966,586 $ 4,974,592 $ 5,941,178 Six Months Ended June 30, 2017 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 9,167 $ 83,352 $ 92,519 Provision for credit losses — 500 500 Noninterest income 137,768 17,701 155,469 Noninterest expense 145,017 73,101 218,118 Income before income taxes 1,918 27,452 29,370 Income tax expense 464 8,714 9,178 Net income $ 1,454 $ 18,738 $ 20,192 Total assets $ 992,668 $ 5,593,889 $ 6,586,557 Six Months Ended June 30, 2016 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 11,134 $ 74,039 $ 85,173 Provision for credit losses — 2,500 2,500 Noninterest income 161,360 12,824 174,184 Noninterest expense 141,651 70,733 212,384 Income before income taxes 30,843 13,630 44,473 Income tax expense 11,308 5,009 16,317 Net income $ 19,535 $ 8,621 $ 28,156 Total assets $ 966,586 $ 4,974,592 $ 5,941,178 (1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment. |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows changes in accumulated other comprehensive income (loss) from unrealized gain (loss) on available-for-sale securities, net of tax. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Beginning balance $ (8,486 ) $ 4,161 $ (10,412 ) $ (2,449 ) Other comprehensive income before reclassifications 3,431 5,627 5,361 12,260 Amounts reclassified from accumulated other comprehensive loss (358 ) (40 ) (362 ) (63 ) Net current-period other comprehensive income 3,073 5,587 4,999 12,197 Ending balance $ (5,413 ) $ 9,748 $ (5,413 ) $ 9,748 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table shows the affected line items in the consolidated statements of operations from reclassifications of unrealized gain on available-for-sale securities from accumulated other comprehensive income (loss). Affected Line Item in the Consolidated Statements of Operations Amount Reclassified from Accumulated Other Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Gain on sale of investment securities available for sale $ 551 $ 62 $ 557 $ 97 Income tax expense 193 22 195 34 Total, net of tax $ 358 $ 40 $ 362 $ 63 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ / shares in Units, $ in Thousands | Nov. 10, 2016USD ($)branch | Aug. 12, 2016USD ($)branch | Feb. 01, 2016USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill from acquisition | $ 22,175 | $ 22,175 | |||
Boston Private Bank and Trust [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of branches opened | branch | 2 | ||||
Goodwill from acquisition | $ 2,300 | ||||
Bank of Oswego [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of branches opened | branch | 2 | ||||
Goodwill from acquisition | $ 19 | ||||
Orange County Business Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill from acquisition | $ 8,400 | ||||
Purchase price of acquisition | $ 55,900 | ||||
Equity interests issued per share | 0.5206 | ||||
Share price (in dollars per share) | $ / shares | $ 1.1641 | ||||
Equity interests issued for acquisition (in shares) | shares | 2,459,461 |
Investment Securities - Unreali
Investment Securities - Unrealized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
AVAILABLE FOR SALE | ||
Amortized cost | $ 892,571 | $ 1,009,986 |
Gross unrealized gains | 3,766 | 1,548 |
Gross unrealized losses | (12,071) | (17,544) |
Fair value | 884,266 | 993,990 |
HELD TO MATURITY | ||
Amortized cost | 52,256 | 49,861 |
Gross unrealized gains | 525 | 240 |
Gross unrealized losses | (230) | (613) |
Fair value | 52,551 | 49,488 |
Residential Mortgage-backed Securities [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 154,145 | 181,158 |
Gross unrealized gains | 1 | 31 |
Gross unrealized losses | (3,211) | (4,115) |
Fair value | 150,935 | 177,074 |
HELD TO MATURITY | ||
Amortized cost | 13,104 | 13,844 |
Gross unrealized gains | 73 | 71 |
Gross unrealized losses | (68) | (90) |
Fair value | 13,109 | 13,825 |
Commercial Mortgage-backed Securities [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 23,592 | 25,896 |
Gross unrealized gains | 22 | 13 |
Gross unrealized losses | (233) | (373) |
Fair value | 23,381 | 25,536 |
HELD TO MATURITY | ||
Amortized cost | 16,127 | 16,303 |
Gross unrealized gains | 137 | 70 |
Gross unrealized losses | (10) | (64) |
Fair value | 16,254 | 16,309 |
Collateralized Mortgage Obligations [Member] | ||
HELD TO MATURITY | ||
Amortized cost | 3,500 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 3,500 | |
Municipal Bonds [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 373,336 | 473,153 |
Gross unrealized gains | 3,334 | 1,333 |
Gross unrealized losses | (3,941) | (6,813) |
Fair value | 372,729 | 467,673 |
HELD TO MATURITY | ||
Amortized cost | 19,425 | 19,612 |
Gross unrealized gains | 315 | 99 |
Gross unrealized losses | (152) | (459) |
Fair value | 19,588 | 19,252 |
Residential Collateralized Mortgage Obligations [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 187,351 | 194,982 |
Gross unrealized gains | 273 | 32 |
Gross unrealized losses | (2,929) | (3,813) |
Fair value | 184,695 | 191,201 |
Commercial Collateralized Mortgage Obligations [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 76,961 | 71,870 |
Gross unrealized gains | 75 | 29 |
Gross unrealized losses | (806) | (1,135) |
Fair value | 76,230 | 70,764 |
Corporate Debt Securities [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 30,839 | 52,045 |
Gross unrealized gains | 61 | 110 |
Gross unrealized losses | (682) | (1,033) |
Fair value | 30,218 | 51,122 |
HELD TO MATURITY | ||
Amortized cost | 100 | 102 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 100 | 102 |
US Treasury Securities [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 10,890 | 10,882 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (150) | (262) |
Fair value | 10,740 | $ 10,620 |
Agency Securities [Member] | ||
AVAILABLE FOR SALE | ||
Amortized cost | 35,457 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (119) | |
Fair value | $ 35,338 |
Investment Securities - Continu
Investment Securities - Continuous Unrealized Loss on Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | $ (9,941) | $ (15,819) |
Less than 12 months, Fair value | 601,286 | 723,052 |
12 months or more, Gross unrealized losses | (2,130) | (1,725) |
12 months or more, Fair value | 58,757 | 38,355 |
Total, Gross unrealized losses | (12,071) | (17,544) |
Total, Fair value | 660,043 | 761,407 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (230) | (613) |
Less than 12 months, Fair value | 21,583 | 30,354 |
12 months or more, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
Total, Gross unrealized losses | (230) | (613) |
Total, Fair value | 21,583 | 30,354 |
Residential Mortgage-backed Securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (2,952) | (3,842) |
Less than 12 months, Fair value | 132,749 | 144,240 |
12 months or more, Gross unrealized losses | (259) | (273) |
12 months or more, Fair value | 10,212 | 9,907 |
Total, Gross unrealized losses | (3,211) | (4,115) |
Total, Fair value | 142,961 | 154,147 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (68) | (90) |
Less than 12 months, Fair value | 6,360 | 5,481 |
12 months or more, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
Total, Gross unrealized losses | (68) | (90) |
Total, Fair value | 6,360 | 5,481 |
Commercial Mortgage-backed Securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (233) | (373) |
Less than 12 months, Fair value | 21,660 | 23,798 |
12 months or more, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
Total, Gross unrealized losses | (233) | (373) |
Total, Fair value | 21,660 | 23,798 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (10) | (64) |
Less than 12 months, Fair value | 4,533 | 13,156 |
12 months or more, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
Total, Gross unrealized losses | (10) | (64) |
Total, Fair value | 4,533 | 13,156 |
Municipal Bonds [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (3,805) | (6,813) |
Less than 12 months, Fair value | 199,291 | 283,531 |
12 months or more, Gross unrealized losses | (136) | 0 |
12 months or more, Fair value | 8,661 | 0 |
Total, Gross unrealized losses | (3,941) | (6,813) |
Total, Fair value | 207,952 | 283,531 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (152) | (459) |
Less than 12 months, Fair value | 10,690 | 11,717 |
12 months or more, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
Total, Gross unrealized losses | (152) | (459) |
Total, Fair value | 10,690 | 11,717 |
Residential Collateralized Mortgage Obligations [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (1,855) | (3,052) |
Less than 12 months, Fair value | 129,559 | 175,490 |
12 months or more, Gross unrealized losses | (1,074) | (761) |
12 months or more, Fair value | 23,623 | 11,422 |
Total, Gross unrealized losses | (2,929) | (3,813) |
Total, Fair value | 153,182 | 186,912 |
Commercial Collateralized Mortgage Obligations [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (545) | (1,005) |
Less than 12 months, Fair value | 57,142 | 60,926 |
12 months or more, Gross unrealized losses | (261) | (130) |
12 months or more, Fair value | 9,124 | 5,349 |
Total, Gross unrealized losses | (806) | (1,135) |
Total, Fair value | 66,266 | 66,275 |
Corporate Debt Securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (282) | (472) |
Less than 12 months, Fair value | 14,807 | 24,447 |
12 months or more, Gross unrealized losses | (400) | (561) |
12 months or more, Fair value | 7,137 | 11,677 |
Total, Gross unrealized losses | (682) | (1,033) |
Total, Fair value | 21,944 | 36,124 |
US Treasury Securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (150) | (262) |
Less than 12 months, Fair value | 10,740 | 10,620 |
12 months or more, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
Total, Gross unrealized losses | (150) | (262) |
Total, Fair value | 10,740 | $ 10,620 |
Agency Securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (119) | |
Less than 12 months, Fair value | 35,338 | |
12 months or more, Gross unrealized losses | 0 | |
12 months or more, Fair value | 0 | |
Total, Gross unrealized losses | (119) | |
Total, Fair value | $ 35,338 |
Investment Securities - Weighte
Investment Securities - Weighted Average Yield (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 1,508 | $ 4,479 |
Due in one through five years, Fair value | 64,233 | 63,266 |
Due in five through ten years, Fair value | 110,222 | 110,776 |
Due in ten years or more, Fair value | 708,303 | 815,469 |
Total, Fair value | $ 884,266 | $ 993,990 |
Weighted Average Yield, due within one year (as a percent) | 1.75% | 2.70% |
Weighted Average Yield, due in one through five years (as a percent) | 2.48% | 2.43% |
Weighted Average Yield, due in five through ten years (as a percent) | 2.65% | 2.69% |
Weighted Average Yield, due in ten years or more (as a percent) | 2.78% | 2.57% |
Weighted average yield contractual maturities, Total (as a percent) | 2.74% | 2.57% |
HELD TO MATURITY | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 5,700 | 4,581 |
Due in five through ten years, Fair value | 17,156 | 18,178 |
Due in ten years or more, Fair value | 29,695 | 26,729 |
Total, Fair value | $ 52,551 | $ 49,488 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 2.21% | 2.06% |
Weighted Average Yield, due in five through ten years (as a percent) | 2.72% | 2.72% |
Weighted Average Yield, due in ten years or more (as a percent) | 3.01% | 3.22% |
Weighted average yield contractual maturities, Total (as a percent) | 2.83% | 2.93% |
Residential Mortgage-backed Securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 1 | $ 1 |
Due in one through five years, Fair value | 0 | 0 |
Due in five through ten years, Fair value | 1,663 | 2,122 |
Due in ten years or more, Fair value | 149,271 | 174,951 |
Total, Fair value | $ 150,935 | $ 177,074 |
Weighted Average Yield, due within one year (as a percent) | 0.28% | 0.29% |
Weighted Average Yield, due in one through five years (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in five through ten years (as a percent) | 1.53% | 1.59% |
Weighted Average Yield, due in ten years or more (as a percent) | 1.89% | 2.03% |
Weighted average yield contractual maturities, Total (as a percent) | 1.88% | 2.02% |
HELD TO MATURITY | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 0 | 0 |
Due in five through ten years, Fair value | 0 | 0 |
Due in ten years or more, Fair value | 13,109 | 13,825 |
Total, Fair value | $ 13,109 | $ 13,825 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in five through ten years (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in ten years or more (as a percent) | 2.96% | 3.11% |
Weighted average yield contractual maturities, Total (as a percent) | 2.95% | 3.11% |
Commercial Mortgage-backed Securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 18,763 | 20,951 |
Due in five through ten years, Fair value | 4,618 | 4,585 |
Due in ten years or more, Fair value | 0 | 0 |
Total, Fair value | $ 23,381 | $ 25,536 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 2.08% | 2.13% |
Weighted Average Yield, due in five through ten years (as a percent) | 2.04% | 2.06% |
Weighted Average Yield, due in ten years or more (as a percent) | 0.00% | 0.00% |
Weighted average yield contractual maturities, Total (as a percent) | 2.07% | 2.11% |
HELD TO MATURITY | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 4,533 | 4,581 |
Due in five through ten years, Fair value | 11,721 | 11,728 |
Due in ten years or more, Fair value | 0 | 0 |
Total, Fair value | $ 16,254 | $ 16,309 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 2.04% | 2.06% |
Weighted Average Yield, due in five through ten years (as a percent) | 2.69% | 2.71% |
Weighted Average Yield, due in ten years or more (as a percent) | 0.00% | 0.00% |
Weighted average yield contractual maturities, Total (as a percent) | 2.50% | 2.53% |
Collateralized Mortgage Obligations [Member] | ||
HELD TO MATURITY | ||
Due within one year, Fair value | $ 0 | |
Due in one through five years, Fair value | 0 | |
Due in five through ten years, Fair value | 0 | |
Due in ten years or more, Fair value | 3,500 | |
Total, Fair value | $ 3,500 | |
Weighted Average Yield, due within one year (as a percent) | 0.00% | |
Weighted Average Yield, due in one through five years (as a percent) | 0.00% | |
Weighted Average Yield, due in five through ten years (as a percent) | 0.00% | |
Weighted Average Yield, due in ten years or more (as a percent) | 1.75% | |
Weighted average yield contractual maturities, Total (as a percent) | 1.75% | |
Municipal Bonds [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 508 | $ 3,479 |
Due in one through five years, Fair value | 21,843 | 20,939 |
Due in five through ten years, Fair value | 39,867 | 52,043 |
Due in ten years or more, Fair value | 310,511 | 391,212 |
Total, Fair value | $ 372,729 | $ 467,673 |
Weighted Average Yield, due within one year (as a percent) | 3.96% | 3.30% |
Weighted Average Yield, due in one through five years (as a percent) | 3.15% | 2.94% |
Weighted Average Yield, due in five through ten years (as a percent) | 3.07% | 2.55% |
Weighted Average Yield, due in ten years or more (as a percent) | 3.76% | 3.08% |
Weighted average yield contractual maturities, Total (as a percent) | 3.65% | 3.02% |
HELD TO MATURITY | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 1,167 | 0 |
Due in five through ten years, Fair value | 5,435 | 6,450 |
Due in ten years or more, Fair value | 12,986 | 12,802 |
Total, Fair value | $ 19,588 | $ 19,252 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 2.92% | 0.00% |
Weighted Average Yield, due in five through ten years (as a percent) | 2.79% | 2.73% |
Weighted Average Yield, due in ten years or more (as a percent) | 3.40% | 3.31% |
Weighted average yield contractual maturities, Total (as a percent) | 3.20% | 3.11% |
Residential Collateralized Mortgage Obligations [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 0 | 0 |
Due in five through ten years, Fair value | 507 | 1,639 |
Due in ten years or more, Fair value | 184,188 | 189,562 |
Total, Fair value | $ 184,695 | $ 191,201 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in five through ten years (as a percent) | 1.24% | 1.32% |
Weighted Average Yield, due in ten years or more (as a percent) | 1.98% | 2.06% |
Weighted average yield contractual maturities, Total (as a percent) | 1.98% | 2.06% |
Commercial Collateralized Mortgage Obligations [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 10,671 | 10,860 |
Due in five through ten years, Fair value | 14,938 | 19,273 |
Due in ten years or more, Fair value | 50,621 | 40,631 |
Total, Fair value | $ 76,230 | $ 70,764 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 1.91% | 1.84% |
Weighted Average Yield, due in five through ten years (as a percent) | 2.88% | 2.74% |
Weighted Average Yield, due in ten years or more (as a percent) | 2.02% | 1.91% |
Weighted average yield contractual maturities, Total (as a percent) | 2.17% | 2.12% |
Agency Securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | |
Due in one through five years, Fair value | 5,072 | |
Due in five through ten years, Fair value | 30,266 | |
Due in ten years or more, Fair value | 0 | |
Total, Fair value | $ 35,338 | |
Weighted Average Yield, due within one year (as a percent) | 0.00% | |
Weighted Average Yield, due in one through five years (as a percent) | 1.90% | |
Weighted Average Yield, due in five through ten years (as a percent) | 2.24% | |
Weighted Average Yield, due in ten years or more (as a percent) | 0.00% | |
Weighted average yield contractual maturities, Total (as a percent) | 2.20% | |
Corporate Debt Securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 7,884 | 10,516 |
Due in five through ten years, Fair value | 8,622 | 21,493 |
Due in ten years or more, Fair value | 13,712 | 19,113 |
Total, Fair value | $ 30,218 | $ 51,122 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 2.74% | 2.67% |
Weighted Average Yield, due in five through ten years (as a percent) | 3.37% | 3.74% |
Weighted Average Yield, due in ten years or more (as a percent) | 3.47% | 3.54% |
Weighted average yield contractual maturities, Total (as a percent) | 3.25% | 3.45% |
HELD TO MATURITY | ||
Due within one year, Fair value | $ 0 | $ 0 |
Due in one through five years, Fair value | 0 | 0 |
Due in five through ten years, Fair value | 0 | 0 |
Due in ten years or more, Fair value | 100 | 102 |
Total, Fair value | $ 100 | $ 102 |
Weighted Average Yield, due within one year (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in one through five years (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in five through ten years (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in ten years or more (as a percent) | 6.00% | 6.00% |
Weighted average yield contractual maturities, Total (as a percent) | 6.00% | 6.00% |
US Treasury Securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 999 | $ 999 |
Due in one through five years, Fair value | 0 | 0 |
Due in five through ten years, Fair value | 9,741 | 9,621 |
Due in ten years or more, Fair value | 0 | 0 |
Total, Fair value | $ 10,740 | $ 10,620 |
Weighted Average Yield, due within one year (as a percent) | 0.64% | 0.64% |
Weighted Average Yield, due in one through five years (as a percent) | 0.00% | 0.00% |
Weighted Average Yield, due in five through ten years (as a percent) | 1.78% | 1.76% |
Weighted Average Yield, due in ten years or more (as a percent) | 0.00% | 0.00% |
Weighted average yield contractual maturities, Total (as a percent) | 1.68% | 1.66% |
Investment Securities - Realize
Investment Securities - Realized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 312,247 | $ 1,706 | $ 314,633 | $ 11,467 |
Gross gains | 551 | 62 | 576 | 97 |
Gross losses | $ 0 | $ 0 | $ (19) | $ 0 |
Investment Securities - Pledged
Investment Securities - Pledged to Secure Borrowings And Public Deposits (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Federal Home Loan Bank to secure borrowings | $ 203,377 |
Washington and California State to secure public deposits | 32,495 |
Securities pledged to secure derivatives in a liability position | 6,757 |
Other securities pledged | 7,273 |
Total securities pledged as collateral | $ 249,902 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Security pledged under repurchase agreement | $ 0 | $ 0 | $ 0 | ||
Tax exempt interest income on available-for-sale securities | $ 2,400,000 | $ 1,500,000 | $ 4,900,000 | $ 2,400,000 |
Loans and Credit Quality - Loan
Loans and Credit Quality - Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Loans held for investment | |||
Total loans before fees and costs | $ 4,183,039 | $ 3,849,451 | |
Net deferred loan fees and costs | 9,521 | 3,577 | |
Total loans | 4,192,560 | 3,853,028 | |
Allowance for loan losses | (36,136) | (34,001) | $ (32,656) |
Loans held for investment | 4,156,424 | 3,819,027 | |
Fair value of loans held for investment | 5,134 | 17,988 | |
Consumer Loans [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 1,562,735 | 1,443,696 | |
Consumer Loans [Member] | Single Family [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 1,148,229 | 1,083,822 | |
Consumer Loans [Member] | Home Equity and Other [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 414,506 | 359,874 | |
Commercial Loans [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 2,620,304 | 2,405,755 | |
Commercial Loans [Member] | Commercial Real Estate [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 942,122 | 871,563 | |
Commercial Loans [Member] | Multifamily [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 780,602 | 674,219 | |
Commercial Loans [Member] | Construction/Land Development [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 648,672 | 636,320 | |
Commercial Loans [Member] | Commercial Business [Member] | |||
Loans held for investment | |||
Total loans before fees and costs | 248,908 | 223,653 | |
Fair Value, Measurements, Recurring [Member] | |||
Loans held for investment | |||
Fair value of loans held for investment | 5,134 | 17,988 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Loans held for investment | |||
Fair value of loans held for investment | $ 5,134 | $ 17,988 |
Loans and Credit Quality - Allo
Loans and Credit Quality - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||
Beginning Balance | $ 36,042 | $ 32,423 | $ 35,264 | $ 30,659 | |||
Provision for credit losses | 500 | 1,100 | 500 | 2,500 | |||
Recoveries, net of charge-offs | 928 | 478 | 1,706 | 842 | |||
Ending Balance | 37,470 | 34,001 | 37,470 | 34,001 | |||
Allowance for loan losses | $ 36,136 | $ 34,001 | $ 32,656 | ||||
Allowance for unfunded commitments | 1,334 | 1,300 | 1,345 | ||||
Allowance for credit losses | $ 36,042 | $ 32,423 | $ 35,264 | $ 30,659 | $ 37,470 | $ 35,264 | $ 34,001 |
Loans and Credit Quality - Acti
Loans and Credit Quality - Activity in Allowance for Credit Losses by Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | $ 36,042 | $ 32,423 | $ 35,264 | $ 30,659 |
Charge-offs | (204) | (204) | (529) | (398) |
Recoveries | 1,132 | 682 | 2,235 | 1,240 |
Provision for (Reversal of) credit losses | 500 | 1,100 | 500 | 2,500 |
Ending Balance | 37,470 | 34,001 | 37,470 | 34,001 |
Consumer Loans [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 14,500 | 13,878 | 14,349 | 13,562 |
Charge-offs | (188) | (204) | (513) | (330) |
Recoveries | 750 | 89 | 1,369 | 424 |
Provision for (Reversal of) credit losses | 82 | (69) | (61) | 38 |
Ending Balance | 15,144 | 13,694 | 15,144 | 13,694 |
Consumer Loans [Member] | Single Family [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 7,954 | 9,026 | 8,196 | 8,942 |
Charge-offs | (2) | 0 | (2) | (32) |
Recoveries | 683 | 2 | 1,016 | 86 |
Provision for (Reversal of) credit losses | (347) | (734) | (922) | (702) |
Ending Balance | 8,288 | 8,294 | 8,288 | 8,294 |
Consumer Loans [Member] | Home Equity and Other [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 6,546 | 4,852 | 6,153 | 4,620 |
Charge-offs | (186) | (204) | (511) | (298) |
Recoveries | 67 | 87 | 353 | 338 |
Provision for (Reversal of) credit losses | 429 | 665 | 861 | 740 |
Ending Balance | 6,856 | 5,400 | 6,856 | 5,400 |
Commercial Loans [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 21,542 | 18,545 | 20,915 | 17,097 |
Charge-offs | (16) | 0 | (16) | (68) |
Recoveries | 382 | 593 | 866 | 816 |
Provision for (Reversal of) credit losses | 418 | 1,169 | 561 | 2,462 |
Ending Balance | 22,326 | 20,307 | 22,326 | 20,307 |
Commercial Loans [Member] | Commercial Real Estate [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 7,036 | 5,175 | 6,680 | 4,847 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for (Reversal of) credit losses | 419 | 870 | 775 | 1,198 |
Ending Balance | 7,455 | 6,045 | 7,455 | 6,045 |
Commercial Loans [Member] | Multifamily [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 3,793 | 1,832 | 3,086 | 1,194 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for (Reversal of) credit losses | 266 | 216 | 973 | 854 |
Ending Balance | 4,059 | 2,048 | 4,059 | 2,048 |
Commercial Loans [Member] | Construction/Land Development [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 8,069 | 9,286 | 8,553 | 9,271 |
Charge-offs | 0 | 0 | 0 | (42) |
Recoveries | 214 | 573 | 434 | 783 |
Provision for (Reversal of) credit losses | (57) | (490) | (761) | (643) |
Ending Balance | 8,226 | 9,369 | 8,226 | 9,369 |
Commercial Loans [Member] | Commercial Business [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 2,644 | 2,252 | 2,596 | 1,785 |
Charge-offs | (16) | 0 | (16) | (26) |
Recoveries | 168 | 20 | 432 | 33 |
Provision for (Reversal of) credit losses | (210) | 573 | (426) | 1,053 |
Ending Balance | $ 2,586 | $ 2,845 | $ 2,586 | $ 2,845 |
Loans and Credit Quality - Reco
Loans and Credit Quality - Recorded Investment in Loans by Impairment Methodology (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | $ 36,928 | $ 34,885 | ||||
Allowance: individually evaluated for impairment | 542 | 379 | ||||
Allowance for credit losses | 37,470 | $ 36,042 | 35,264 | $ 34,001 | $ 32,423 | $ 30,659 |
Loans: collectively evaluated for impairment | 4,085,203 | 3,740,955 | ||||
Loans: individually evaluated for impairment | 92,702 | 90,508 | ||||
Total | 4,177,905 | 3,831,463 | ||||
Loans held for investment carried at fair value | 5,134 | 17,988 | ||||
Total loans held for investment | 4,183,039 | 3,849,451 | ||||
Consumer Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 14,774 | 13,975 | ||||
Allowance: individually evaluated for impairment | 370 | 374 | ||||
Allowance for credit losses | 15,144 | 14,500 | 14,349 | 13,694 | 13,878 | 13,562 |
Loans: collectively evaluated for impairment | 1,471,932 | 1,343,569 | ||||
Loans: individually evaluated for impairment | 85,669 | 82,139 | ||||
Total | 1,557,601 | 1,425,708 | ||||
Total loans held for investment | 1,562,735 | 1,443,696 | ||||
Consumer Loans [Member] | Single Family [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 7,964 | 7,871 | ||||
Allowance: individually evaluated for impairment | 324 | 325 | ||||
Allowance for credit losses | 8,288 | 7,954 | 8,196 | 8,294 | 9,026 | 8,942 |
Loans: collectively evaluated for impairment | 1,059,203 | 985,219 | ||||
Loans: individually evaluated for impairment | 83,968 | 80,676 | ||||
Total | 1,143,171 | 1,065,895 | ||||
Total loans held for investment | 1,148,229 | 1,083,822 | ||||
Consumer Loans [Member] | Home Equity and Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 6,810 | 6,104 | ||||
Allowance: individually evaluated for impairment | 46 | 49 | ||||
Allowance for credit losses | 6,856 | 6,546 | 6,153 | 5,400 | 4,852 | 4,620 |
Loans: collectively evaluated for impairment | 412,729 | 358,350 | ||||
Loans: individually evaluated for impairment | 1,701 | 1,463 | ||||
Total | 414,430 | 359,813 | ||||
Total loans held for investment | 414,506 | 359,874 | ||||
Commercial Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 22,154 | 20,910 | ||||
Allowance: individually evaluated for impairment | 172 | 5 | ||||
Allowance for credit losses | 22,326 | 21,542 | 20,915 | 20,307 | 18,545 | 17,097 |
Loans: collectively evaluated for impairment | 2,613,271 | 2,397,386 | ||||
Loans: individually evaluated for impairment | 7,033 | 8,369 | ||||
Total | 2,620,304 | 2,405,755 | ||||
Total loans held for investment | 2,620,304 | 2,405,755 | ||||
Commercial Loans [Member] | Commercial Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 7,455 | 6,680 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 7,455 | 7,036 | 6,680 | 6,045 | 5,175 | 4,847 |
Loans: collectively evaluated for impairment | 938,765 | 869,225 | ||||
Loans: individually evaluated for impairment | 3,357 | 2,338 | ||||
Total | 942,122 | 871,563 | ||||
Total loans held for investment | 942,122 | 871,563 | ||||
Commercial Loans [Member] | Multifamily [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 4,059 | 3,086 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 4,059 | 3,793 | 3,086 | 2,048 | 1,832 | 1,194 |
Loans: collectively evaluated for impairment | 779,774 | 673,374 | ||||
Loans: individually evaluated for impairment | 828 | 845 | ||||
Total | 780,602 | 674,219 | ||||
Total loans held for investment | 780,602 | 674,219 | ||||
Commercial Loans [Member] | Construction/Land Development [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 8,226 | 8,553 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 8,226 | 8,069 | 8,553 | 9,369 | 9,286 | 9,271 |
Loans: collectively evaluated for impairment | 647,649 | 634,427 | ||||
Loans: individually evaluated for impairment | 1,023 | 1,893 | ||||
Total | 648,672 | 636,320 | ||||
Total loans held for investment | 648,672 | 636,320 | ||||
Commercial Loans [Member] | Commercial Business [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 2,414 | 2,591 | ||||
Allowance: individually evaluated for impairment | 172 | 5 | ||||
Allowance for credit losses | 2,586 | $ 2,644 | 2,596 | $ 2,845 | $ 2,252 | $ 1,785 |
Loans: collectively evaluated for impairment | 247,083 | 220,360 | ||||
Loans: individually evaluated for impairment | 1,825 | 3,293 | ||||
Total | 248,908 | 223,653 | ||||
Total loans held for investment | $ 248,908 | $ 223,653 |
Loans and Credit Quality - Impa
Loans and Credit Quality - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | $ 86,570 | $ 86,723 |
Recorded investment with related allowance recorded | 6,132 | 3,785 |
Total recorded investment | 92,702 | 90,508 |
Unpaid principal balance with no related allowance recorded | 90,475 | 92,431 |
Unpaid principal balance with related allowance recorded | 6,274 | 3,875 |
Total unpaid principal balance | 96,749 | 96,306 |
Related allowance | 542 | 379 |
Performing TDRs | 77,500 | 73,100 |
Consumer Loans [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 80,967 | 78,702 |
Recorded investment with related allowance recorded | 4,702 | 3,437 |
Total recorded investment | 85,669 | 82,139 |
Unpaid principal balance with no related allowance recorded | 82,584 | 81,550 |
Unpaid principal balance with related allowance recorded | 4,793 | 3,528 |
Total unpaid principal balance | 87,377 | 85,078 |
Related allowance | 370 | 374 |
Consumer Loans [Member] | Single Family [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 79,782 | 77,756 |
Recorded investment with related allowance recorded | 4,186 | 2,920 |
Total recorded investment | 83,968 | 80,676 |
Unpaid principal balance with no related allowance recorded | 81,373 | 80,573 |
Unpaid principal balance with related allowance recorded | 4,277 | 3,011 |
Total unpaid principal balance | 85,650 | 83,584 |
Related allowance | 324 | 325 |
Consumer Loans [Member] | Home Equity and Other [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 1,185 | 946 |
Recorded investment with related allowance recorded | 516 | 517 |
Total recorded investment | 1,701 | 1,463 |
Unpaid principal balance with no related allowance recorded | 1,211 | 977 |
Unpaid principal balance with related allowance recorded | 516 | 517 |
Total unpaid principal balance | 1,727 | 1,494 |
Related allowance | 46 | 49 |
Commercial Loans [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 5,603 | 8,021 |
Recorded investment with related allowance recorded | 348 | |
Total recorded investment | 7,033 | 8,369 |
Unpaid principal balance with no related allowance recorded | 7,891 | 10,881 |
Unpaid principal balance with related allowance recorded | 347 | |
Total unpaid principal balance | 9,372 | 11,228 |
Related allowance | 172 | 5 |
Commercial Loans [Member] | Commercial Real Estate [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 3,357 | 2,338 |
Total recorded investment | 3,357 | 2,338 |
Unpaid principal balance with no related allowance recorded | 3,874 | 2,846 |
Total unpaid principal balance | 3,874 | 2,846 |
Related allowance | 0 | 0 |
Commercial Loans [Member] | Multifamily [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 828 | 845 |
Total recorded investment | 828 | 845 |
Unpaid principal balance with no related allowance recorded | 845 | 851 |
Total unpaid principal balance | 845 | 851 |
Related allowance | 0 | 0 |
Commercial Loans [Member] | Construction/Land Development [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 1,023 | 1,893 |
Total recorded investment | 1,023 | 1,893 |
Unpaid principal balance with no related allowance recorded | 1,549 | 2,819 |
Total unpaid principal balance | 1,549 | 2,819 |
Related allowance | 0 | 0 |
Commercial Loans [Member] | Commercial Business [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 395 | 2,945 |
Recorded investment with related allowance recorded | 1,430 | 348 |
Total recorded investment | 1,825 | 3,293 |
Unpaid principal balance with no related allowance recorded | 1,623 | 4,365 |
Unpaid principal balance with related allowance recorded | 1,481 | 347 |
Total unpaid principal balance | 3,104 | 4,712 |
Related allowance | $ 172 | $ 5 |
Loans and Credit Quality - Aver
Loans and Credit Quality - Average Recorded Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | $ 93,979 | $ 93,415 | $ 92,822 | $ 93,644 |
Interest Income Recognized | 914 | 813 | 1,821 | 1,605 |
Consumer Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 85,221 | 83,166 | 84,194 | 83,116 |
Interest Income Recognized | 814 | 757 | 1,583 | 1,477 |
Consumer Loans [Member] | Single Family [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 83,653 | 81,754 | 82,661 | 81,612 |
Interest Income Recognized | 790 | 740 | 1,540 | 1,444 |
Consumer Loans [Member] | Home Equity and Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 1,568 | 1,412 | 1,533 | 1,504 |
Interest Income Recognized | 24 | 17 | 43 | 33 |
Commercial Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 8,758 | 10,249 | 8,628 | 10,528 |
Interest Income Recognized | 100 | 56 | 238 | 128 |
Commercial Loans [Member] | Commercial Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 4,441 | 3,125 | 3,740 | 3,124 |
Interest Income Recognized | 37 | 4 | 96 | 8 |
Commercial Loans [Member] | Multifamily [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 832 | 1,864 | 836 | 1,878 |
Interest Income Recognized | 6 | 6 | 12 | 35 |
Commercial Loans [Member] | Construction/Land Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 1,105 | 2,458 | 1,368 | 3,023 |
Interest Income Recognized | 21 | 23 | 47 | 44 |
Commercial Loans [Member] | Commercial Business [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 2,380 | 2,802 | 2,684 | 2,503 |
Interest Income Recognized | $ 36 | $ 23 | $ 83 | $ 41 |
Loans and Credit Quality - Lo45
Loans and Credit Quality - Loan Grades by Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | $ 4,183,039 | $ 3,849,451 |
Fair value of loans held for investment | 5,134 | 17,988 |
Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 4,010,326 | 3,666,442 |
Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 119,917 | 129,445 |
Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 32,506 | 29,827 |
Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 20,290 | 23,737 |
Consumer Loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,562,735 | 1,443,696 |
Consumer Loans [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,529,675 | 1,408,654 |
Consumer Loans [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 3,713 | 4,945 |
Consumer Loans [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 15,902 | 15,686 |
Consumer Loans [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 13,445 | 14,411 |
Consumer Loans [Member] | Single Family [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,148,229 | 1,083,822 |
Consumer Loans [Member] | Single Family [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,117,636 | 1,051,463 |
Consumer Loans [Member] | Single Family [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 3,508 | 4,348 |
Consumer Loans [Member] | Single Family [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 15,243 | 15,172 |
Consumer Loans [Member] | Single Family [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 11,842 | 12,839 |
Consumer Loans [Member] | Home Equity and Other [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 414,506 | 359,874 |
Consumer Loans [Member] | Home Equity and Other [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 412,039 | 357,191 |
Consumer Loans [Member] | Home Equity and Other [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 205 | 597 |
Consumer Loans [Member] | Home Equity and Other [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 659 | 514 |
Consumer Loans [Member] | Home Equity and Other [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,603 | 1,572 |
Commercial Loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,620,304 | 2,405,755 |
Commercial Loans [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,480,651 | 2,257,788 |
Commercial Loans [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 116,204 | 124,500 |
Commercial Loans [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 16,604 | 14,141 |
Commercial Loans [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 6,845 | 9,326 |
Commercial Loans [Member] | Commercial Real Estate [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 942,122 | 871,563 |
Commercial Loans [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 886,638 | 809,996 |
Commercial Loans [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 42,739 | 52,519 |
Commercial Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 8,713 | 7,165 |
Commercial Loans [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 4,032 | 1,883 |
Commercial Loans [Member] | Multifamily [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 780,602 | 674,219 |
Commercial Loans [Member] | Multifamily [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 765,652 | 660,234 |
Commercial Loans [Member] | Multifamily [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 12,737 | 13,140 |
Commercial Loans [Member] | Multifamily [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,893 | 508 |
Commercial Loans [Member] | Multifamily [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 320 | 337 |
Commercial Loans [Member] | Construction/Land Development [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 648,672 | 636,320 |
Commercial Loans [Member] | Construction/Land Development [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 632,857 | 615,675 |
Commercial Loans [Member] | Construction/Land Development [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 14,366 | 16,074 |
Commercial Loans [Member] | Construction/Land Development [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,449 | 3,083 |
Commercial Loans [Member] | Construction/Land Development [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 0 | 1,488 |
Commercial Loans [Member] | Commercial Business [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 248,908 | 223,653 |
Commercial Loans [Member] | Commercial Business [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 195,504 | 171,883 |
Commercial Loans [Member] | Commercial Business [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 46,362 | 42,767 |
Commercial Loans [Member] | Commercial Business [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 4,549 | 3,385 |
Commercial Loans [Member] | Commercial Business [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,493 | 5,618 |
Fair Value, Measurements, Recurring [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Fair value of loans held for investment | 5,134 | 17,988 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Fair value of loans held for investment | $ 5,134 | $ 17,988 |
Loans and Credit Quality - Agin
Loans and Credit Quality - Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 65,197 | $ 72,328 |
Current | 4,117,842 | 3,777,123 |
Total loans | 4,183,039 | 3,849,451 |
90-days or more past due and still accruing | 33,824 | 40,846 |
Fair value of loans held for investment | 5,134 | 17,988 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 11,578 | 4,834 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,319 | 6,106 |
90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 49,300 | 61,388 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 62,474 | 65,596 |
Current | 1,500,261 | 1,378,100 |
Total loans | 1,562,735 | 1,443,696 |
90-days or more past due and still accruing | 33,824 | 40,846 |
Consumer Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 11,007 | 4,561 |
Consumer Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,319 | 5,901 |
Consumer Loans [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 47,148 | 55,134 |
Consumer Loans [Member] | Single Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 59,702 | 63,332 |
Current | 1,088,527 | 1,020,490 |
Total loans | 1,148,229 | 1,083,822 |
90-days or more past due and still accruing | 33,824 | 40,846 |
Consumer Loans [Member] | Single Family [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 9,911 | 4,310 |
Consumer Loans [Member] | Single Family [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,246 | 5,459 |
Consumer Loans [Member] | Single Family [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 45,545 | 53,563 |
Consumer Loans [Member] | Home Equity and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,772 | 2,264 |
Current | 411,734 | 357,610 |
Total loans | 414,506 | 359,874 |
90-days or more past due and still accruing | 0 | 0 |
Consumer Loans [Member] | Home Equity and Other [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,096 | 251 |
Consumer Loans [Member] | Home Equity and Other [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 73 | 442 |
Consumer Loans [Member] | Home Equity and Other [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,603 | 1,571 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,723 | 6,732 |
Current | 2,617,581 | 2,399,023 |
Total loans | 2,620,304 | 2,405,755 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 571 | 273 |
Commercial Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 205 |
Commercial Loans [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,152 | 6,254 |
Commercial Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,242 | 2,403 |
Current | 940,880 | 869,160 |
Total loans | 942,122 | 871,563 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Loans [Member] | Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 71 |
Commercial Loans [Member] | Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 205 |
Commercial Loans [Member] | Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,242 | 2,127 |
Commercial Loans [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 320 | 337 |
Current | 780,282 | 673,882 |
Total loans | 780,602 | 674,219 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Loans [Member] | Multifamily [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Loans [Member] | Multifamily [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Loans [Member] | Multifamily [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 320 | 337 |
Commercial Loans [Member] | Construction/Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 147 | 1,376 |
Current | 648,525 | 634,944 |
Total loans | 648,672 | 636,320 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Loans [Member] | Construction/Land Development [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 147 | 0 |
Commercial Loans [Member] | Construction/Land Development [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Loans [Member] | Construction/Land Development [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 1,376 |
Commercial Loans [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,014 | 2,616 |
Current | 247,894 | 221,037 |
Total loans | 248,908 | 223,653 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Loans [Member] | Commercial Business [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 424 | 202 |
Commercial Loans [Member] | Commercial Business [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Loans [Member] | Commercial Business [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 590 | 2,414 |
Fair Value, Measurements, Recurring [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,134 | 17,988 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | $ 5,134 | $ 17,988 |
Loans and Credit Quality - Perf
Loans and Credit Quality - Performing and Nonaccrual (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | $ 4,167,563 | $ 3,828,909 |
Nonaccrual | 15,476 | 20,542 |
Total loans held for investment | 4,183,039 | 3,849,451 |
Fair value of loans held for investment | 5,134 | 17,988 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 1,549,411 | 1,429,408 |
Nonaccrual | 13,324 | 14,288 |
Total loans held for investment | 1,562,735 | 1,443,696 |
Consumer Loans [Member] | Single Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 1,136,508 | 1,071,105 |
Nonaccrual | 11,721 | 12,717 |
Total loans held for investment | 1,148,229 | 1,083,822 |
Consumer Loans [Member] | Home Equity and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 412,903 | 358,303 |
Nonaccrual | 1,603 | 1,571 |
Total loans held for investment | 414,506 | 359,874 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 2,618,152 | 2,399,501 |
Nonaccrual | 2,152 | 6,254 |
Total loans held for investment | 2,620,304 | 2,405,755 |
Commercial Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 940,880 | 869,436 |
Nonaccrual | 1,242 | 2,127 |
Total loans held for investment | 942,122 | 871,563 |
Commercial Loans [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 780,282 | 673,882 |
Nonaccrual | 320 | 337 |
Total loans held for investment | 780,602 | 674,219 |
Commercial Loans [Member] | Construction/Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 648,672 | 634,944 |
Nonaccrual | 0 | 1,376 |
Total loans held for investment | 648,672 | 636,320 |
Commercial Loans [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 248,318 | 221,239 |
Nonaccrual | 590 | 2,414 |
Total loans held for investment | 248,908 | 223,653 |
Fair Value, Measurements, Recurring [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,134 | 17,988 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | $ 5,134 | $ 17,988 |
Loans and Credit Quality - TDRs
Loans and Credit Quality - TDRs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($)loan | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($)loan | |
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 45 | 33 | 85 | 53 |
Recorded investment - TDR | $ 8,825 | $ 6,129 | $ 16,617 | $ 10,320 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 13 | 14 | 39 | 19 |
Recorded investment - TDR | $ 2,097 | $ 2,382 | $ 6,920 | $ 3,402 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 32 | 19 | 46 | 34 |
Recorded investment - TDR | $ 6,728 | $ 3,747 | $ 9,697 | $ 6,918 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 44 | 33 | 83 | 53 |
Recorded investment - TDR | $ 8,389 | $ 6,129 | $ 16,163 | $ 10,320 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 13 | 14 | 39 | 19 |
Recorded investment - TDR | $ 2,097 | $ 2,382 | $ 6,920 | $ 3,402 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 31 | 19 | 44 | 34 |
Recorded investment - TDR | $ 6,292 | $ 3,747 | $ 9,243 | $ 6,918 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans [Member] | Single Family [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 13 | 13 | 39 | 18 |
Recorded investment - TDR | $ 2,097 | $ 2,369 | $ 6,920 | $ 3,389 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans [Member] | Single Family [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 30 | 19 | 42 | 34 |
Recorded investment - TDR | $ 6,015 | $ 3,747 | $ 8,892 | $ 6,918 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans [Member] | Home Equity and Other [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | 1 | ||
Recorded investment - TDR | $ 13 | $ 13 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Consumer Loans [Member] | Home Equity and Other [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | 2 | ||
Recorded investment - TDR | $ 277 | $ 351 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Commercial Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | 1 | 2 | ||
Recorded investment - TDR | $ 436 | $ 454 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Commercial Loans [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | 1 | 2 | ||
Recorded investment - TDR | $ 436 | $ 454 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Commercial Loans [Member] | Commercial Real Estate [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | 1 | ||
Recorded investment - TDR | $ 436 | $ 436 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Commercial Loans [Member] | Commercial Business [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | |||
Recorded investment - TDR | $ 18 | |||
Related charge-offs - TDR | $ 0 |
Loans and Credit Quality - TDR
Loans and Credit Quality - TDR Re-defaults (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($)loan | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of days past due for consumer loans TDR to be re-default | 60 days | |||
Number of days past due for commercial loans TDR to be re-default | 90 days | |||
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 7 | 9 | 8 | 10 |
Recorded investment | $ | $ 1,382 | $ 2,460 | $ 1,652 | $ 2,731 |
Consumer Loans [Member] | Single Family [Member] | ||||
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 7 | 8 | 8 | 9 |
Recorded investment | $ | $ 1,382 | $ 2,367 | $ 1,652 | $ 2,638 |
Consumer Loans [Member] | Home Equity and Other [Member] | ||||
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 0 | 1 | 0 | 1 |
Recorded investment | $ | $ 0 | $ 93 | $ 0 | $ 93 |
Loans and Credit Quality - Narr
Loans and Credit Quality - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Financing Receivable, Impaired [Line Items] | ||
Number of portfolio segments | segment | 2 | |
Concentration percentage | 10.00% | 10.00% |
Federal Home Loan Bank Advances [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans pledged as collateral | $ 1,750 | $ 1,590 |
Federal Reserve Bank Advances [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans pledged as collateral | $ 732.5 | $ 554.7 |
Washington | Single Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Percentage of loan portfolio | 13.70% | 13.80% |
Washington | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Percentage of loan portfolio | 13.10% | 14.40% |
Deposits - Schedule of Deposit
Deposits - Schedule of Deposit Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Deposit balances, including stated rates | ||
Noninterest-bearing accounts | $ 1,015,301 | $ 964,829 |
NOW accounts, 0.00% to 1.00% at June 30, 2017 and December 31, 2016 | 541,592 | 468,812 |
Statement savings accounts, due on demand, 0.05% to 1.13% at June 30, 2017 and December 31, 2016 | 311,202 | 301,361 |
Money market accounts, due on demand, 0.00% to 1.70% and at June 30, 2017 and December 31, 2016 | 1,587,741 | 1,603,141 |
Certificates of deposit, 0.05% to 3.80% at June 30, 2017 and December 31, 2016 | 1,291,935 | 1,091,558 |
Deposits, Total | $ 4,747,771 | $ 4,429,701 |
Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate, NOW accounts (as a percent) | 1.00% | 1.00% |
Weighted Average Rate, Statement savings accounts (as a percent) | 1.13% | 1.13% |
Weighted Average Rate, Money market accounts (as a percent) | 1.70% | 1.70% |
Weighted Average Rate, Certificates of deposit (as a percent) | 3.80% | 3.80% |
Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate, NOW accounts (as a percent) | 0.00% | 0.00% |
Weighted Average Rate, Statement savings accounts (as a percent) | 0.05% | 0.05% |
Weighted Average Rate, Money market accounts (as a percent) | 0.00% | 0.00% |
Weighted Average Rate, Certificates of deposit (as a percent) | 0.05% | 0.05% |
Deposits - Schedule of Interest
Deposits - Schedule of Interest expense on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest expense on deposits | ||||
NOW accounts | $ 503 | $ 489 | $ 980 | $ 981 |
Statement savings accounts | 253 | 255 | 505 | 509 |
Money market accounts | 1,935 | 1,606 | 4,165 | 2,973 |
Certificates of deposit | 3,176 | 2,099 | 5,840 | 3,555 |
Interest expense on deposits, Total | $ 5,867 | $ 4,449 | $ 11,490 | $ 8,018 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Certificates of deposit outstanding | ||
Within one year | $ 967,731 | |
One to two years | 265,348 | |
Two to three years | 32,627 | |
Three to four years | 14,060 | |
Four to five years | 11,944 | |
Thereafter | 225 | |
Total | $ 1,291,935 | $ 1,091,558 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Weighted-average interest rate on certificates of deposit (as a percent) | 1.01% | 0.96% |
Aggregate amount of time deposits in denominations of 100,000 | $ 481.1 | $ 508.6 |
Aggregate amount of time deposits in denominations of 250,000 | 102.1 | 87.4 |
Brokered deposits | $ 412.7 | $ 234.4 |
Derivatives and Hedging Activ55
Derivatives and Hedging Activities - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 6,072,269 | $ 6,052,629 |
Derivatives before netting, Derivative assets | 41,234 | 59,226 |
Netting adjustments, Derivative assets | 16,873 | 10,174 |
Derivative Assets | 58,107 | 69,400 |
Derivatives before netting, Derivative Liabilities | (25,057) | (42,399) |
Netting adjustments, Derivative liabilities | 21,329 | 37,836 |
Derivative Liabilities | (3,728) | (4,563) |
Forward Sale Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,110,125 | 3,596,677 |
Derivatives before netting, Derivative assets | 4,665 | 24,623 |
Derivatives before netting, Derivative Liabilities | (3,818) | (15,203) |
Interest Rate Swaptions [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 30,000 | 20,000 |
Derivatives before netting, Derivative assets | 1 | 1 |
Derivatives before netting, Derivative Liabilities | 0 | 0 |
Interest Rate Lock and Purchase Loan Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 831,294 | 746,102 |
Derivatives before netting, Derivative assets | 22,331 | 19,586 |
Derivatives before netting, Derivative Liabilities | (48) | (367) |
Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,912,850 | 1,689,850 |
Derivatives before netting, Derivative assets | 14,139 | 15,016 |
Derivatives before netting, Derivative Liabilities | (21,139) | (26,829) |
Eurodollar Futures [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,188,000 | |
Derivatives before netting, Derivative assets | 98 | |
Derivatives before netting, Derivative Liabilities | (52) | |
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral, as part of netting adjustment | $ 38,200 | $ 48,000 |
Derivatives and Hedging Activ56
Derivatives and Hedging Activities - Master Netting Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Gross fair value, Derivative assets | $ 41,234 | $ 59,226 |
Netting adjustments, Derivative assets | 16,873 | 10,174 |
Derivative Assets | 58,107 | 69,400 |
Securities pledged, Derivative assets | 0 | 0 |
Net amount - Derivative assets | 58,107 | 69,400 |
Derivatives before netting, Derivative Liabilities | (25,057) | (42,399) |
Netting adjustments, Derivative liabilities | 21,329 | 37,836 |
Derivative Liabilities | (3,728) | (4,563) |
Securities pledged, Derivative liabilities | 2,616 | 1,820 |
Net amount, Derivative liabilities | (1,112) | (2,743) |
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | ||
Derivative [Line Items] | ||
Cash collateral, as part of netting adjustment | $ 38,200 | $ 48,000 |
Derivatives and Hedging Activ57
Derivatives and Hedging Activities - Gain (Loss) Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Loans [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | $ (10,109) | $ 761 | $ (11,608) | $ (331) |
Servicing Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | 8,874 | 22,241 | 9,253 | 53,948 |
Other Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | 0 | (390) | 0 | (1,352) |
Mortgages [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | $ (1,235) | $ 22,612 | $ (2,355) | $ 52,265 |
Derivatives and Hedging Activ58
Derivatives and Hedging Activities - Narrative (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives designated as a hedging instrument | $ 0 | $ 0 |
Mortgage Banking Operations - L
Mortgage Banking Operations - Loans Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Loans held for sale | $ 784,556 | $ 714,559 |
Single Family [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Single family, held-for-sale | 680,959 | 656,334 |
Multifamily DUS [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans held for sale | 39,099 | 35,506 |
Commercial Mortgage, excluding DUS [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans held for sale | $ 64,498 | $ 22,719 |
Mortgage Banking Operations -60
Mortgage Banking Operations - Loans Sold (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Mortgage Loans on Real Estate [Line Items] | ||||
Loans sold | $ 1,868,507 | $ 2,314,599 | $ 3,698,279 | $ 3,834,152 |
Single Family [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Loans sold | 1,808,500 | 2,173,392 | 3,548,237 | 3,644,975 |
Multifamily DUS [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Loans sold | 35,312 | 109,394 | 112,161 | 157,364 |
Commercial Mortgage, excluding DUS [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Loans sold | $ 24,695 | $ 31,813 | $ 37,881 | $ 31,813 |
Mortgage Banking Operations - G
Mortgage Banking Operations - Gain on Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Net gain on loan origination and sale activities | $ 65,908 | $ 85,630 | $ 126,189 | $ 146,893 |
Single Family [Member] | ||||
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Servicing value and secondary market gains | 57,353 | 73,685 | 107,891 | 127,812 |
Loan origination and funding fees | 6,823 | 7,355 | 12,604 | 12,683 |
Net gain on loan origination and sale activities | 64,176 | 81,040 | 120,495 | 140,495 |
Multifamily DUS [Member] | ||||
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Net gain on loan origination and sale activities | 1,273 | 3,655 | 4,633 | 5,184 |
Commercial Mortgage, excluding DUS [Member] | ||||
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Net gain on loan origination and sale activities | $ 459 | $ 935 | $ 1,061 | $ 1,214 |
Mortgage Banking Operations -62
Mortgage Banking Operations - Loans Serviced for Others (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | $ 22,315,666 | $ 20,665,819 |
Single Family Residential [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 21,104,608 | 19,488,456 |
Agency Securities [Member] | Single Family Residential [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 20,574,300 | 18,931,835 |
Single Family other [Member] | Single Family Residential [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 530,308 | 556,621 |
Commercial Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 1,211,058 | 1,177,363 |
Commercial Loans [Member] | Multifamily DUS [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 1,135,722 | 1,108,040 |
Commercial Loans [Member] | Commercial Mortgage, excluding DUS [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | $ 75,336 | $ 69,323 |
Mortgage Banking Operations - M
Mortgage Banking Operations - Mortgage Repurchase Liability (Details) - Representations and Warranties Reserve for Loan Receivables [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Mortgage Repurchase Losses [Roll Forward] | ||||
Balance, beginning of period | $ 2,863 | $ 2,725 | $ 3,382 | $ 2,922 |
Additions | 328 | 885 | (32) | 912 |
Realized losses | (201) | (231) | (360) | (455) |
Balance, end of period | $ 2,990 | $ 3,379 | $ 2,990 | $ 3,379 |
Mortgage Banking Operations - R
Mortgage Banking Operations - Revenue from Mortgage Servicing (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Mortgage Loans on Real Estate [Line Items] | ||||
Servicing fees and other | $ 15,977 | $ 12,923 | $ 32,156 | $ 25,356 |
Changes in fair value of single family MSRs due to modeled amortization | (8,909) | (7,758) | (17,429) | (15,015) |
Amortization of multifamily MSRs | (761) | (648) | (1,692) | (1,285) |
Net servicing income | 6,307 | 4,517 | 13,035 | 9,056 |
Changes in fair value due to changes in model inputs and/or assumptions | (6,417) | (14,055) | (4,285) | (42,269) |
Mortgage servicing rights, risk management | 2,457 | 8,186 | 4,968 | 11,679 |
Mortgage servicing income | 8,764 | 12,703 | 18,003 | 20,735 |
Servicing Contracts [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Net gain from derivatives economically hedging MSR | $ 8,874 | $ 22,241 | $ 9,253 | $ 53,948 |
Mortgage Banking Operations - K
Mortgage Banking Operations - Key Economic Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Mortgage Banking [Abstract] | ||||
Constant prepayment rate (CPR) | 14.75% | 15.62% | 13.39% | 16.30% |
Discount rate | 10.30% | 10.57% | 10.29% | 10.44% |
Mortgage Banking Operations - S
Mortgage Banking Operations - Sensitivity Analysis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Fair value of single family MSR | $ 236,621 | $ 226,113 |
Expected weighted-average life | 6 years 7 days | |
Constant prepayment rate (as a percent) | 12.94% | |
Impact on fair value of 25 basis points decrease | $ (17,984) | |
Impact on fair value of 50 basis points decrease | $ (37,908) | |
Discount rate (as a percent) | 10.40% | |
Impact on fair value of 100 basis points increase | $ (8,206) | |
Impact on fair value of 200 basis points increase | $ (15,868) |
Mortgage Banking Operations -67
Mortgage Banking Operations - Single Family MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 226,113 | |||
Sale of single family MSRs | $ 0 | $ 0 | ||
Changes due to modeled amortization | $ 8,909 | 7,758 | 17,429 | 15,015 |
Changes in fair value of MSR due to changes in market inputs and/or model updates | (6,417) | (14,055) | (4,285) | (42,269) |
Ending balance | 236,621 | 236,621 | ||
Single family MSRs [Member] | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 235,997 | 133,449 | 226,113 | 156,604 |
Originations | 15,748 | 19,264 | 31,666 | 31,580 |
Purchases | 211 | 0 | 565 | 0 |
Sale of single family MSRs | 0 | 0 | ||
Changes due to modeled amortization | (8,909) | (7,758) | (17,429) | (15,015) |
Net additions and amortization | 7,050 | 11,506 | 14,802 | 16,565 |
Changes in fair value of MSR due to changes in market inputs and/or model updates | (6,426) | (14,055) | (4,294) | (42,269) |
Ending balance | $ 236,621 | $ 130,900 | $ 236,621 | $ 130,900 |
Mortgage Banking Operations -68
Mortgage Banking Operations - Multifamily MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||
Beginning balance | $ 21,424 | $ 15,402 | $ 19,747 | $ 14,651 |
Origination | 937 | 1,612 | 3,545 | 3,000 |
Amortization | (761) | (648) | (1,692) | (1,285) |
Ending balance | $ 21,600 | $ 16,366 | $ 21,600 | $ 16,366 |
Mortgage Banking Operations -69
Mortgage Banking Operations - MSR Projected Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Projected Amortization Expense [Abstract] | ||||||
Remainder of 2017 | $ 1,498 | |||||
2,018 | 2,944 | |||||
2,019 | 2,842 | |||||
2,020 | 2,760 | |||||
2,021 | 2,546 | |||||
2022 and thereafter | 9,010 | |||||
Carrying value of multifamily MSR | 21,600 | $ 21,424 | $ 19,747 | $ 16,366 | $ 15,402 | $ 14,651 |
Multifamily originations [Member] | ||||||
Projected Amortization Expense [Abstract] | ||||||
Carrying value of multifamily MSR | $ 21,600 |
Mortgage Banking Operations - N
Mortgage Banking Operations - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Servicing Advances | $ 6.4 | $ 7.5 |
Early Buyout Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans Receivable, in Ginnie Mae pool | $ 33.4 | $ 35.8 |
Multifamily DUS [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Weighted average life of company's multifamily MSRs | 10 years 2 months 15 days |
Commitments, Guarantees and C71
Commitments, Guarantees and Contingencies - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017USD ($)claim | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)claim | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Unfunded loan commitments | $ 89,000,000 | $ 89,000,000 | $ 42,600,000 | |||||
Allowance for unfunded commitments | $ 1,334,000 | $ 1,345,000 | $ 1,334,000 | $ 1,345,000 | 1,300,000 | |||
Number of material claims pending | claim | 0 | 0 | ||||||
Representations and Warranties Reserve for Loan Receivables [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | $ 21,180,000,000 | $ 21,180,000,000 | 19,560,000,000 | |||||
Reserve liability related to mortgage repurchase | 2,990,000 | 3,379,000 | 2,990,000 | 3,379,000 | $ 2,863,000 | 3,382,000 | $ 2,725,000 | $ 2,922,000 |
Undisbursed construction loan funds [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | 614,200,000 | 614,200,000 | 603,800,000 | |||||
Home Equity and Business Banking Credit Lines [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | 390,600,000 | 390,600,000 | 289,300,000 | |||||
Loss Sharing Relationship [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to multifamily DUS program | 1,700,000 | 1,700,000 | 1,800,000 | |||||
Loss Sharing Relationship [Member] | Multifamily [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
UPB of loans sold through DUS | 1,140,000,000 | 1,140,000,000 | 1,110,000,000 | |||||
Losses incurred - related to DUS | 0 | $ 0 | 0 | $ 0 | ||||
Credit Risk [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to mortgage repurchase | $ 3,000,000 | $ 3,000,000 | $ 3,400,000 | |||||
Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of loss that lender is responsible for on loans sold under loss sharing agreement | 5.00% | |||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of loss that lender is responsible for on loans sold under loss sharing agreement | 20.00% |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Fair Value Hierarchy Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Investment securities available for sale | $ 884,266 | $ 993,990 |
Single family mortgage servicing rights | 236,621 | 226,113 |
Fair value of loans held for sale | 680,959 | 656,334 |
Fair value of loans held for investment | 5,134 | 17,988 |
Derivative assets | 58,107 | 69,400 |
Liabilities: | ||
Derivative liabilities | 3,728 | 4,563 |
Residential Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 150,935 | 177,074 |
Commercial Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 23,381 | 25,536 |
Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 372,729 | 467,673 |
Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 30,218 | 51,122 |
Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 35,338 | |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 236,621 | 226,113 |
Fair value of loans held for sale | 680,959 | 656,334 |
Fair value of loans held for investment | 5,134 | 17,988 |
Total assets | 1,848,214 | 1,953,651 |
Liabilities: | ||
Total liabilities | 25,057 | 42,399 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 150,935 | 177,074 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 23,381 | 25,536 |
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 372,729 | 467,673 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 184,695 | 191,201 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 76,230 | 70,764 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 30,218 | 51,122 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 10,740 | 10,620 |
Fair Value, Measurements, Recurring [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 35,338 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 0 | 0 |
Fair value of loans held for sale | 0 | 0 |
Fair value of loans held for investment | 0 | 0 |
Total assets | 98 | 0 |
Liabilities: | ||
Total liabilities | 52 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Residential Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | US Treasury Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 0 | 0 |
Fair value of loans held for sale | 651,700 | 614,524 |
Fair value of loans held for investment | 0 | 0 |
Total assets | 1,554,771 | 1,648,154 |
Liabilities: | ||
Total liabilities | 24,957 | 42,032 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Residential Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 150,935 | 177,074 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 23,381 | 25,536 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 372,729 | 467,673 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 184,695 | 191,201 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 76,230 | 70,764 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 30,218 | 51,122 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | US Treasury Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 10,740 | 10,620 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 35,338 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 236,621 | 226,113 |
Fair value of loans held for sale | 29,259 | 41,810 |
Fair value of loans held for investment | 5,134 | 17,988 |
Total assets | 293,345 | 305,497 |
Liabilities: | ||
Total liabilities | 48 | 367 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Residential Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial Mortgage-backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | US Treasury Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Futures [Member] | ||
Assets: | ||
Derivative assets | 98 | |
Liabilities: | ||
Derivative liabilities | 52 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Futures [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative assets | 98 | |
Liabilities: | ||
Derivative liabilities | 52 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Futures [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Futures [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Forward Sale Commitments [Member] | ||
Assets: | ||
Derivative assets | 4,665 | 24,623 |
Liabilities: | ||
Derivative liabilities | 3,818 | 15,203 |
Fair Value, Measurements, Recurring [Member] | Forward Sale Commitments [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Forward Sale Commitments [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative assets | 4,665 | 24,623 |
Liabilities: | ||
Derivative liabilities | 3,818 | 15,203 |
Fair Value, Measurements, Recurring [Member] | Forward Sale Commitments [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaptions [Member] | ||
Assets: | ||
Derivative assets | 1 | 1 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaptions [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaptions [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative assets | 1 | 1 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaptions [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock and Purchase Loan Commitments [Member] | ||
Assets: | ||
Derivative assets | 22,331 | 19,586 |
Liabilities: | ||
Derivative liabilities | 48 | 367 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock and Purchase Loan Commitments [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock and Purchase Loan Commitments [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock and Purchase Loan Commitments [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative assets | 22,331 | 19,586 |
Liabilities: | ||
Derivative liabilities | 48 | 367 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | ||
Assets: | ||
Derivative assets | 14,139 | 15,016 |
Liabilities: | ||
Derivative liabilities | 21,139 | 26,829 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative assets | 14,139 | 15,016 |
Liabilities: | ||
Derivative liabilities | 21,139 | 26,829 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurement - Sche73
Fair Value Measurement - Schedule of Single Family Loans Held for Sale Measure Using Level 3 Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Loans held for investment carried at fair value | $ 5,134 | $ 5,134 | $ 17,988 | ||
Loans held for sale, fair value | $ 680,959 | $ 680,959 | 656,334 | ||
Market price movement from comparable bond (as a percent) | 7.10% | 0.00% | 7.10% | 0.00% | |
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Loans held for investment carried at fair value | $ 5,134 | $ 5,134 | 17,988 | ||
Loans held for sale, fair value | 680,959 | 680,959 | 656,334 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Loans held for investment carried at fair value | 5,134 | 5,134 | 17,988 | ||
Loans held for sale, fair value | $ 29,259 | $ 29,259 | $ 41,810 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Loans Held for Investment [Member] | Minimum [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Implied spread to benchmark interest rate curve (as a percent) | 3.53% | 3.62% | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Loans Held for Investment [Member] | Maximum [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Implied spread to benchmark interest rate curve (as a percent) | 4.88% | 4.97% | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Loans Held for Investment [Member] | Weighted Average [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Implied spread to benchmark interest rate curve (as a percent) | 4.21% | 4.49% | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Loans Held for Sale [Member] | Minimum [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Implied spread to benchmark interest rate curve (as a percent) | 3.24% | 3.46% | |||
Market price movement from comparable bond (as a percent) | (0.27%) | (0.49%) | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Loans Held for Sale [Member] | Maximum [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Implied spread to benchmark interest rate curve (as a percent) | 5.26% | 6.14% | |||
Market price movement from comparable bond (as a percent) | (0.09%) | (0.11%) | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Loans Held for Sale [Member] | Weighted Average [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Implied spread to benchmark interest rate curve (as a percent) | 4.47% | 4.23% | |||
Market price movement from comparable bond (as a percent) | (0.18%) | (0.27%) |
Fair Value Measurement - Sche74
Fair Value Measurement - Schedule of Fair Value Changes and Activity for Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Loans Held for Sale [Member] | ||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||
Beginning balance | $ 40,331 | $ 45,558 | $ 41,810 | $ 49,322 |
Additions | 197 | 7,480 | 2,996 | 7,963 |
Transfers | 13,755 | (4,582) | 13,066 | (4,582) |
Settlements | (25,884) | (3,696) | (29,110) | (8,525) |
Realized/unrealized gains (losses) | 860 | (1,018) | 497 | (436) |
Ending balance | 29,259 | 43,742 | 29,259 | 43,742 |
Loans Held for Investment [Member] | ||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||
Beginning balance | 19,042 | 18,327 | 17,988 | 21,544 |
Additions | 0 | 106 | 0 | 106 |
Transfers | (13,575) | 4,572 | (12,369) | 4,572 |
Settlements | (479) | (503) | (479) | (3,583) |
Realized/unrealized gains (losses) | 146 | (140) | (6) | (277) |
Ending balance | 5,134 | 22,362 | 5,134 | 22,362 |
Interest Rate Lock and Purchase Loan Commitments [Member] | ||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||
Beginning balance | 27,136 | 28,482 | 19,219 | 17,711 |
Settlements | (38,980) | (47,258) | (66,522) | (81,015) |
Realized/unrealized gains (losses) | 34,127 | 58,767 | 69,586 | 103,295 |
Ending balance | $ 22,283 | $ 39,991 | $ 22,283 | $ 39,991 |
Fair Value Measurement - Sche75
Fair Value Measurement - Schedule of Interest Rate Lock and Purchase Loan Commitments Fair Value Measure Using Level 3 Unobservable Inputs (Details) - Interest Rate Lock and Purchase Loan Commitments [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net | $ 22,283 | $ 19,219 | $ 27,136 | $ 39,991 | $ 28,482 | $ 17,711 |
Minimum [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Fair value inputs, fall-out factor | 0.40% | 0.50% | ||||
Fair value inputs, initial value of servicing | 0.64% | 0.65% | ||||
Maximum [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Fair value inputs, fall-out factor | 62.52% | 60.34% | ||||
Fair value inputs, initial value of servicing | 1.92% | 2.27% | ||||
Weighted Average [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Fair value inputs, fall-out factor | 14.30% | 11.95% | ||||
Fair value inputs, initial value of servicing | 1.02% | 1.08% |
Fair Value Measurement - FV Uno
Fair Value Measurement - FV Unobservable Inputs - Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | $ 884,266 | $ 884,266 | $ 993,990 | ||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | |||||
Gains (losses) on loans held for investment | 1,203 | $ (1,272) | |||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | 2,003 | $ 2,581 | 2,003 | 2,581 | |
Other real estate owned | 5,485 | 5,485 | |||
Total | 8,066 | 8,066 | |||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | |||||
Gains (losses) on loans held for investment | 162 | 20 | 140 | (14) | |
Gains (losses) on other real estate owned | (391) | ||||
Total gains (losses) | (405) | ||||
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | 0 | 0 | 0 | 0 | |
Other real estate owned | 0 | 0 | |||
Total | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | 0 | 0 | 0 | 0 | |
Other real estate owned | 0 | 0 | |||
Total | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | $ 2,003 | 2,581 | $ 2,003 | 2,581 | |
Other real estate owned | 5,485 | 5,485 | |||
Total | $ 8,066 | $ 8,066 |
Fair Value Measurement - FV of
Fair Value Measurement - FV of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||||
Investment securities held to maturity | $ 52,551 | $ 49,488 | ||||
Fair value of loans held for investment | 5,134 | 17,988 | ||||
Loans held for sale, fair value | 680,959 | 656,334 | ||||
Mortgage servicing rights - multifamily | 21,600 | $ 21,424 | 19,747 | $ 16,366 | $ 15,402 | $ 14,651 |
Carrying value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 54,447 | 53,932 | ||||
Investment securities held to maturity | 52,256 | 49,861 | ||||
Fair value of loans held for investment | 4,151,290 | 3,801,039 | ||||
Loans held for sale - transferred from held for investment | 62,183 | 17,512 | ||||
Federal Home Loan Bank Stock | 41,769 | 40,347 | ||||
Liabilities: | ||||||
Deposits | 4,747,771 | 4,429,701 | ||||
Federal Home Loan Bank advances | 867,290 | 868,379 | ||||
Long-term debt | 125,234 | 125,147 | ||||
Fair value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 54,447 | 53,932 | ||||
Investment securities held to maturity | 52,551 | 49,488 | ||||
Fair value of loans held for investment | 4,205,010 | 3,840,990 | ||||
Loans held for sale - transferred from held for investment | 62,183 | 17,512 | ||||
Federal Home Loan Bank Stock | 41,769 | 40,347 | ||||
Liabilities: | ||||||
Deposits | 4,727,531 | 4,410,213 | ||||
Federal Home Loan Bank advances | 869,559 | 870,782 | ||||
Long-term debt | 122,712 | 122,357 | ||||
Level 1 [Member] | Fair value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 54,447 | 53,932 | ||||
Investment securities held to maturity | 0 | 0 | ||||
Fair value of loans held for investment | 0 | 0 | ||||
Loans held for sale - transferred from held for investment | 0 | 0 | ||||
Federal Home Loan Bank Stock | 0 | 0 | ||||
Liabilities: | ||||||
Deposits | 0 | 0 | ||||
Federal Home Loan Bank advances | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Level 2 [Member] | Fair value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Investment securities held to maturity | 52,551 | 49,488 | ||||
Fair value of loans held for investment | 0 | 0 | ||||
Loans held for sale - transferred from held for investment | 0 | 0 | ||||
Federal Home Loan Bank Stock | 41,769 | 40,347 | ||||
Liabilities: | ||||||
Deposits | 4,727,531 | 4,410,213 | ||||
Federal Home Loan Bank advances | 869,559 | 870,782 | ||||
Long-term debt | 122,712 | 122,357 | ||||
Level 3 [Member] | Fair value [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Investment securities held to maturity | 0 | 0 | ||||
Fair value of loans held for investment | 4,205,010 | 3,840,990 | ||||
Loans held for sale - transferred from held for investment | 62,183 | 17,512 | ||||
Federal Home Loan Bank Stock | 0 | 0 | ||||
Liabilities: | ||||||
Deposits | 0 | 0 | ||||
Federal Home Loan Bank advances | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Multifamily [Member] | Carrying value [Member] | ||||||
Assets: | ||||||
Loans held for sale, fair value | 41,414 | 40,712 | ||||
Mortgage servicing rights - multifamily | 21,600 | 19,747 | ||||
Multifamily [Member] | Fair value [Member] | ||||||
Assets: | ||||||
Loans held for sale, fair value | 41,414 | 40,712 | ||||
Mortgage servicing rights - multifamily | 23,662 | 21,610 | ||||
Multifamily [Member] | Level 1 [Member] | Fair value [Member] | ||||||
Assets: | ||||||
Loans held for sale, fair value | 0 | 0 | ||||
Mortgage servicing rights - multifamily | 0 | 0 | ||||
Multifamily [Member] | Level 2 [Member] | Fair value [Member] | ||||||
Assets: | ||||||
Loans held for sale, fair value | 41,414 | 40,712 | ||||
Mortgage servicing rights - multifamily | 0 | 0 | ||||
Multifamily [Member] | Level 3 [Member] | Fair value [Member] | ||||||
Assets: | ||||||
Loans held for sale, fair value | 0 | 0 | ||||
Mortgage servicing rights - multifamily | $ 23,662 | $ 21,610 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair value of loans held for investment | $ 5,134 | $ 5,134 | $ 17,988 | ||
Adjustments to appraisal value for commercial loans held for investment collateralized by real estate | 7.10% | 0.00% | 7.10% | 0.00% | |
Loans Receivable [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Range of stated value (as a percent) | 63.40% | 63.40% | |||
Loans Receivable [Member] | Minimum [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Range of stated value (as a percent) | 0.00% | 0.00% | |||
Loans Receivable [Member] | Maximum [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Range of stated value (as a percent) | 42.60% | 100.00% | |||
Loans Receivable [Member] | Weighted Average [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Range of stated value (as a percent) | 42.30% | 41.30% | |||
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of loans held for investment | $ 5,134 | $ 5,134 | 17,988 | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of loans held for investment | $ 5,134 | $ 5,134 | $ 17,988 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of EPS Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 11,209 | $ 21,749 | $ 20,192 | $ 28,156 |
Weighted average shares: | ||||
Basic weighted average number of shares outstanding (in shares) | 26,866,230 | 24,708,375 | 26,843,813 | 24,192,441 |
Dilutive effect of outstanding common stock equivalents (in shares) | 218,378 | 203,544 | 227,215 | 202,207 |
Diluted weighted-average number of shares outstanding (in shares) | 27,084,608 | 24,911,919 | 27,071,028 | 24,394,648 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.42 | $ 0.88 | $ 0.75 | $ 1.16 |
Diluted income per share (in dollars per share) | $ 0.41 | $ 0.87 | $ 0.75 | $ 1.15 |
Aggregate number of common stock equivalents and unvested restricted stock (in shares) | 6,417 | 0 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 2 | ||||
Condensed income statement: | |||||
Net interest income | $ 46,868 | $ 44,482 | $ 92,519 | $ 85,173 | |
Provision for credit losses | 500 | 1,100 | 500 | 2,500 | |
Noninterest Income | 81,008 | 102,476 | 155,469 | 174,184 | |
Noninterest expense | 111,244 | 111,031 | 218,118 | 212,384 | |
Income before income taxes | 16,132 | 34,827 | 29,370 | 44,473 | |
Income tax expense | 4,923 | 13,078 | 9,178 | 16,317 | |
NET INCOME | 11,209 | 21,749 | 20,192 | 28,156 | |
Total assets | 6,586,557 | 5,941,178 | 6,586,557 | 5,941,178 | $ 6,243,700 |
Mortgage Banking [Member] | |||||
Condensed income statement: | |||||
Net interest income | 4,420 | 6,089 | 9,167 | 11,134 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest Income | 72,732 | 94,295 | 137,768 | 161,360 | |
Noninterest expense | 74,613 | 76,928 | 145,017 | 141,651 | |
Income before income taxes | 2,539 | 23,456 | 1,918 | 30,843 | |
Income tax expense | 776 | 8,786 | 464 | 11,308 | |
NET INCOME | 1,763 | 14,670 | 1,454 | 19,535 | |
Total assets | 992,668 | 966,586 | 992,668 | 966,586 | |
Commercial and Consumer Banking [Member] | |||||
Condensed income statement: | |||||
Net interest income | 42,448 | 38,393 | 83,352 | 74,039 | |
Provision for credit losses | 500 | 1,100 | 500 | 2,500 | |
Noninterest Income | 8,276 | 8,181 | 17,701 | 12,824 | |
Noninterest expense | 36,631 | 34,103 | 73,101 | 70,733 | |
Income before income taxes | 13,593 | 11,371 | 27,452 | 13,630 | |
Income tax expense | 4,147 | 4,292 | 8,714 | 5,009 | |
NET INCOME | 9,446 | 7,079 | 18,738 | 8,621 | |
Total assets | $ 5,593,889 | $ 4,974,592 | $ 5,593,889 | $ 4,974,592 |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 629,284 | $ 465,275 | ||
Amounts reclassified from accumulated other comprehensive loss | $ (358) | $ (40) | (362) | (63) |
Other comprehensive income | 3,073 | 5,587 | 4,999 | 12,197 |
Ending balance | 655,841 | 559,603 | 655,841 | 559,603 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (8,486) | 4,161 | (10,412) | (2,449) |
Other comprehensive income before reclassifications | 3,431 | 5,627 | 5,361 | 12,260 |
Amounts reclassified from accumulated other comprehensive loss | (358) | (40) | (362) | (63) |
Other comprehensive income | 3,073 | 5,587 | 4,999 | 12,197 |
Ending balance | $ (5,413) | $ 9,748 | $ (5,413) | $ 9,748 |
Accumulated Other Comprehensi82
Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Gain on sale of investment securities available for sale | $ 551 | $ 62 | $ 557 | $ 97 |
Income tax expense | 4,923 | 13,078 | 9,178 | 16,317 |
Total, net of tax | 358 | 40 | 362 | 63 |
Gains and Losses on Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Gain on sale of investment securities available for sale | 551 | 62 | 557 | 97 |
Income tax expense | $ 193 | $ 22 | $ 195 | $ 34 |