Disclosures About Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers' financial instruments at September 30, 2016 and December 31, 2015 were as follows:

					Fair Value Measurements at September 30, 2016
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(amounts in thousands)
Assets:
Cash and cash equivalents	$	265,588	$	265,588	$	265,588	$	—	$	—
Investment securities, available for sale	530,896		530,896		16,736		514,160		—
Loans held for sale	2,402,708		2,402,848		—		2,377,445		25,403
Loans receivable, net of allowance for loan losses	5,979,098		5,998,001		—		—		5,998,001
FHLB, Federal Reserve Bank and other restricted stock	71,621		71,621		—		71,621		—
Derivatives	18,789		18,789		—		18,704		85
Liabilities:
Deposits	$	7,388,970	$	7,398,218	$	4,459,937	$	2,938,281	$	—
Federal funds purchased	52,000		52,000		52,000		—		—
FHLB advances	1,036,700		1,037,706		851,700		186,006		—
Other borrowings	86,957		88,967		63,655		25,312		—
Subordinated debt	108,758		111,650		—		111,650		—
Derivatives	25,466		25,466		—		25,466		—

					Fair Value Measurements at December 31, 2015
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(amounts in thousands)
Assets:
Cash and cash equivalents	$	264,593	$	264,593	$	264,593	$	—	$	—
Investment securities, available for sale	560,253		560,253		19,212		541,041		—
Loans held for sale	1,797,064		1,797,458		—		1,757,807		39,651
Loans receivable, net of allowance for loan losses	5,417,832		5,353,903		—		—		5,353,903
FHLB, Federal Reserve Bank and other restricted stock	90,841		90,841		—		90,841		—
Derivatives	9,295		9,295		—		9,250		45
Liabilities:
Deposits	$	5,909,501	$	5,911,754	$	3,561,905	$	2,349,849	$	—
Federal funds purchased	70,000		70,000		70,000		—		—
FHLB advances	1,625,300		1,625,468		1,365,300		260,168		—
Other borrowings	86,457		93,804		68,867		24,937		—
Subordinated debt	108,685		110,825		—		110,825		—
Derivatives	13,932		13,932		—		13,932		—

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2016 and December 31, 2015 were as follows:

	September 30, 2016
	Fair Value Measurements at the End of the Reporting Period Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
(amounts in thousands)
Measured at Fair Value on a Recurring Basis:
Assets
Available-for-sale securities:
Agency-guaranteed residential mortgage-backed securities	$	—	$	254,320	$	—	$	254,320
Agency guaranteed commercial real estate mortgage-backed securities	—		213,799		—		213,799
Corporate notes	—		46,041		—		46,041
Equity securities	16,736		—		—		16,736
Derivatives	—		18,704		85		18,789
Loans held for sale – fair value option	—		2,377,445		—		2,377,445
Total assets - recurring fair value measurements	$	16,736	$	2,910,309	$	85	$	2,927,130
Liabilities
Derivatives	$	—	$	25,466	$	—	$	25,466
Measured at Fair Value on a Nonrecurring Basis:
Assets
Impaired loans, net of specific reserves of $3,404	$	—	$	—	$	4,929	$	4,929
Other real estate owned	—		—		2,645		2,645
Total assets - nonrecurring fair value measurements	$	—	$	—	$	7,574	$	7,574

	December 31, 2015
	Fair Value Measurements at the End of the Reporting Period Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
(amounts in thousands)
Measured at Fair Value on a Recurring Basis:
Assets
Available-for-sale securities:
Agency-guaranteed residential mortgage-backed securities	$	—	$	298,104	$	—	$	298,104
Agency-guaranteed commercial real estate mortgage-backed securities	—		202,870		—		202,870
Corporate notes	—		40,067		—		40,067
Equity securities	19,212		—		—		19,212
Derivatives	—		9,250		45		9,295
Loans held for sale – fair value option	—		1,757,807		—		1,757,807
Total assets - recurring fair value measurements	$	19,212	$	2,308,098	$	45	$	2,327,355
Liabilities
Derivatives	$	—	$	13,932	$	—	$	13,932
Measured at Fair Value on a Nonrecurring Basis:
Assets
Impaired loans, net of specific reserves of $2,273	$	—	$	—	$	4,346	$	4,346
Other real estate owned	—		—		358		358
Total assets - nonrecurring fair value measurements	$	—	$	—	$	4,704	$	4,704

Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis for the three and nine months ended September 30, 2016 and 2015 are summarized as follows.

	Residential Mortgage Loan Commitments
	Three Months Ended September 30,
	2016			2015
(amounts in thousands)
Balance at June 30	$	157		$	71
Issuances	85			70
Settlements	(157		)	(71		)
Balance at September 30	$	85		$	70

	Residential Mortgage Loan Commitments
	Nine Months Ended September 30,
	2016			2015
(amounts in thousands)
Balance at December 31	$	45		$	43
Issuances	315			228
Settlements	(275		)	(201		)
Balance at Balance at September 30	$	85		$	70

Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2016 and December 31, 2015 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value.

	Quantitative Information about Level 3 Fair Value Measurements
September 30, 2016	Fair Value Estimate		Valuation Technique	Unobservable Input	Range (Weighted Average)
(amounts in thousands)
Impaired loans	$	4,929	Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Other real estate owned	2,645		Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Residential mortgage loan commitments	85		Adjusted market bid	Pull-through rate	90%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2015	Fair Value Estimate		Valuation Technique	Unobservable Input	Range (Weighted Average)
(amounts in thousands)
Impaired loans	$	4,346	Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Other real estate owned	358		Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Residential mortgage loan commitments	45		Adjusted market bid	Pull-through rate	94%

(1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals.

(2) Fair value is adjusted for estimated costs to sell based on a percentage of the value as determined by the appraisal.