XML 44 R32.htm IDEA: XBRL DOCUMENT v3.7.0.1

Disclosures About Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers' financial instruments at June 30, 2017 and December 31, 2016 were as follows:

									Fair Value Measurements at June 30, 2017
	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	$	401,690			$	401,690			$	401,690			$	—			$	—
Investment securities, available for sale	1,012,605				1,012,605				10,661				1,001,944				—
Loans held for sale	2,255,096				2,255,276				—				2,104,338				150,938
Loans receivable, net of allowance for loan losses	6,684,820				6,715,271				—				—				6,715,271
FHLB, Federal Reserve Bank and other restricted stock	129,689				129,689				—				129,689				—
Derivatives	10,754				10,754				—				10,652				102
Assets held for sale	13,482				13,482				11,552				—				1,930
Liabilities:
Deposits	$	7,021,922			$	7,020,634			$	4,579,560			$	2,441,074			$	—
Deposits held for sale	453,441				453,441				453,441				—				—
Federal funds purchased	150,000				150,000				150,000				—				—
FHLB advances	1,999,600				1,999,358				1,189,600				809,758				—
Other borrowings	186,030				191,887				66,362				125,525				—
Subordinated debt	108,831				114,400				—				114,400				—
Derivatives	13,116				13,116				—				13,116				—

									Fair Value Measurements at December 31, 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	$	244,709			$	244,709			$	244,709			$	—			$	—
Investment securities, available for sale	493,474				493,474				15,246				478,228				—
Loans held for sale	2,117,510				2,117,510				—				2,117,510				—
Loans receivable, net of allowance for loan losses	6,105,075				6,149,773				—				—				6,149,773
FHLB, Federal Reserve Bank and other restricted stock	68,408				68,408				—				68,408				—
Derivatives	10,864				10,864				—				10,819				45
Assets held for sale	32,248				32,248				20,000				—				12,248
Liabilities:
Deposits	$	6,846,980			$	6,846,868			$	4,015,218			$	2,831,650			$	—
Deposits held for sale	456,795				456,795				456,795				—				—
Federal funds purchased	83,000				83,000				83,000				—				—
FHLB advances	868,800				869,049				688,800				180,249				—
Other borrowings	87,123				91,761				66,261				25,500				—
Subordinated debt	108,783				111,375				—				111,375				—
Derivatives	14,172				14,172				—				14,172				—

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 June 30, 2017 and December 31, 2016 were as follows:

	June 30, 2017
	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	$	—			$	209,744			$	—			$	209,744
Agency guaranteed commercial mortgage-backed securities	—				746,423				—				746,423
Corporate notes	—				45,777				—				45,777
Equity securities	10,661				—				—				10,661
Derivatives	—				10,652				102				10,754
Loans held for sale – fair value option	—				2,104,338				—				2,104,338
Total assets - recurring fair value measurements	$	10,661			$	3,116,934			$	102			$	3,127,697
Liabilities
Derivatives	$	—			$	13,116			$	—			$	13,116
Measured at Fair Value on a Nonrecurring Basis:
Assets
Impaired loans, net of reserves of $2,791	$	—			$	—			$	6,725			$	6,725
Other real estate owned	—				—				2,070				2,070
Total assets - nonrecurring fair value measurements	$	—			$	—			$	8,795			$	8,795

	December 31, 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	$	—			$	231,263			$	—			$	231,263
Agency-guaranteed commercial mortgage-backed securities	—				201,817				—				201,817
Corporate notes	—				45,148				—				45,148
Equity securities	15,246				—				—				15,246
Derivatives	—				10,819				45				10,864
Loans held for sale – fair value option	—				2,117,510				—				2,117,510
Total assets - recurring fair value measurements	$	15,246			$	2,606,557			$	45			$	2,621,848
Liabilities
Derivatives	$	—			$	14,172			$	—			$	14,172
Measured at Fair Value on a Nonrecurring Basis:
Assets
Impaired loans, net of reserves of $1,360	$	—			$	—			$	6,527			$	6,527
Other real estate owned	—				—				2,731				2,731
Total assets - nonrecurring fair value measurements	$	—			$	—			$	9,258			$	9,258

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 six months ended June 30, 2017 and 2016 are summarized as follows.

	Residential Mortgage Loan Commitments
	Three Months Ended June 30,
	2017				2016
(amounts in thousands)
Balance at March 31	$	95			$	73
Issuances	102				157
Settlements	(95		)		(73		)
Balance at June 30	$	102			$	157

	Residential Mortgage Loan Commitments
	Six Months Ended June 30,
	2017				2016
(amounts in thousands)
Balance at December 31	$	45			$	45
Issuances	197				230
Settlements	(140		)		(118		)
Balance at June 30	$	102			$	157

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 June 30, 2017 and December 31, 2016 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
June 30, 2017	Fair Value Estimate				Valuation Technique		Unobservable Input		Range (Weighted Average) (4)
(amounts in thousands)
Impaired loans	$	6,725			Collateral appraisal (1)		Liquidation expenses (2)		(8)%
Other real estate owned	2,070				Collateral appraisal (1)		Liquidation expenses (2)		(8)%
Residential mortgage loan commitments	102				Adjusted market bid		Pull-through rate		90%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2016	Fair Value Estimate				Valuation Technique		Unobservable Input		Range (Weighted Average) (4)
(amounts in thousands)
Impaired loans	$	1,431			Collateral appraisal (1)		Liquidation expenses (2)		(8)%
Impaired loans	5,096				Discounted cash flow		Projected cash flows (3)		4 times EBITDA
Other real estate owned	2,731				Collateral appraisal (1)		Liquidation expenses (2)		(8)%
Residential mortgage loan commitments	45				Adjusted market bid		Pull-through rate		90%

(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.

(3) Projected cash flows of the business derived using EBITDA multiple based on management's best estimate.

(4) Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned.

X

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bb)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2C
-URI http://asc.fasb.org/extlink&oid=66048111&loc=SL7498348-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13476-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13467-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=75026489&loc=d3e13220-108610

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13433-108611

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration