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Disclosures about Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers’ financial instruments were as follows at December 31, 2017 and 2016.

	Carrying Amount				Estimated Fair Value				Fair Value Measurements at December 31, 2017
									Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(amounts in thousands) (as restated)
Assets
Cash and cash equivalents	$	146,323			$	146,323			$	146,323			$	—			$	—
Investment securities, available for sale	471,371				471,371				3,352				468,019				—
Loans held for sale (as restated)	146,077				146,251				—				1,886				144,365
Total loans receivable, net of allowance for loan losses (as restated)	8,523,651				8,470,171				—				1,793,408				6,676,763
FHLB, Federal Reserve Bank and other restricted stock	105,918				105,918				—				105,918				—
Derivatives	9,752				9,752				—				9,692				60
Liabilities
Deposits	$	6,800,142			$	6,796,095			$	4,894,449			$	1,901,646			$	—
Federal funds purchased	155,000				155,000				155,000				—				—
FHLB advances	1,611,860				1,611,603				881,860				729,743				—
Other borrowings	186,497				193,557				65,072				128,485				—
Subordinated debt	108,880				115,775				—				115,775				—
Derivatives	10,074				10,074				—				10,074				—

	Carrying Amount				Estimated Fair Value				Fair Value Measurements at December 31, 2016
									Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(amounts in thousands) (as restated)
Assets
Cash and cash equivalents	$	264,709			$	264,709			$	264,709			$	—			$	—
Investment securities, available for sale	493,474				493,474				15,246				478,228				—
Loans held for sale (as restated)	695				695				—				695				—
Total loans receivable, net of allowance for loan losses (as restated)	8,234,137				8,278,835				—				2,116,815				6,162,020
FHLB and Federal Reserve Bank, and other restricted stock	68,408				68,408				—				68,408				—
Derivatives	10,864				10,864				—				10,819				45
Liabilities
Deposits	$	7,303,775			$	7,303,663			$	4,472,013			$	2,831,650			$	—
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 Non-recurring Basis

For financial assets and liabilities measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2017 and 2016, were as follows:

	December 31, 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) (as restated)
Measured at Fair Value on a Recurring Basis
Assets
Available-for-sale securities
Agency-guaranteed residential mortgage-backed securities	$	—			$	183,458			$	—			$	183,458
Agency-guaranteed commercial mortgage-backed securities	—				238,472				—				238,472
Corporate notes	—				46,089				—				46,089
Equity securities	3,352				—				—				3,352
Derivatives	—				9,692				60				9,752
Loans held for sale – fair value option (as restated)	—				1,886				—				1,886
Loans receivable, mortgage warehouse – fair value option (as restated)	—				1,793,408				—				1,793,408
Total assets - recurring fair value measurements	$	3,352			$	2,273,005			$	60			$	2,276,417
Liabilities
Derivatives	$	—			$	10,074			$	—			$	10,074
Measured at Fair Value on a Nonrecurring Basis
Assets
Impaired loans, net of specific reserves of $1,451	$	—			$	—			$	13,902			$	13,902
Other real estate owned	—				—				1,449				1,449
Total assets - nonrecurring fair value measurements	$	—			$	—			$	15,351			$	15,351

	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) (as restated)
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 (as restated)	—				695				—				695
Loans receivable, mortgage warehouse – fair value option (as restated)	—				2,116,815				—				2,116,815
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 specific 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 and Liabilities Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016, were as follows:

		For the Years Ended December 31,
		2017				2016
		Residential Mortgage Loan Commitments
(amounts in thousands)
Balance at December 31,		$	45			$	45
Issuances		360				400
Settlements		(345		)		(400		)
Balance at December 31,		$	60			$	45

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 December 31, 2017 and 2016, for which Customers utilized Level 3 inputs to measure fair value:

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2017	Fair Value Estimate				Valuation Technique		Unobservable Input		Range (Weighted Average) (4)
(dollars in thousands)
Impaired loans	$	13,902			Collateral appraisal (1)		Liquidation expenses (2)		(8	)%
Other real estate owned	1,449				Collateral appraisal (1)		Liquidation expenses (2)		(8	)%
Residential mortgage loan commitments	60				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)
(dollars 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 EBIDTA
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. Customers does not generally discount appraisals.

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

(3) Projected cash flows of the business derived using EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) 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.

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- 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.

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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.

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