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Fair value measurements (Tables) | 9 Months Ended
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Sep. 30, 2014
Fair Value Disclosures [Abstract] |
Schedule of estimated fair values of certain of the Company's financial instruments | The estimated fair values of certain of the Company’s and the Utilities' financial instruments were as follows:
|  |  |  | Estimated fair value
|  | Carrying or notional amount |  | Quoted prices in active markets for identical assets |  | Significant other observable inputs |  | Significant unobservable inputs |  |
(in thousands) |  |  | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
September 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |
Available-for-sale investment and mortgage-related securities |  | 531,603 |  |  | — |  |  | 531,603 |  |  | — |  |  | 531,603 |
Investment in stock of Federal Home Loan Bank of Seattle |  | 75,063 |  |  | — |  |  | 75,063 |  |  | — |  |  | 75,063 |
Loans receivable, net |  | 4,294,288 |  |  | — |  |  | — |  |  | 4,444,869 |  |  | 4,444,869 |
Derivative assets |  | 17,011 |  |  | — |  |  | 217 |  |  | — |  |  | 217 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposit liabilities |  | 4,533,797 |  |  | — |  |  | 4,534,177 |  |  | — |  |  | 4,534,177 |
Short-term borrowings—other than bank |  | 150,576 |  |  | — |  |  | 150,576 |  |  | — |  |  | 150,576 |
The Utilities' short-term borrowings (included in amount above) |  | 84,987 |  |  | — |  |  | 84,987 |  |  | — |  |  | 84,987 |
Other bank borrowings |  | 263,204 |  |  | — |  |  | 271,872 |  |  | — |  |  | 271,872 |
Long-term debt, net—other than bank |  | 1,517,946 |  |  | — |  |  | 1,626,159 |  |  | — |  |  | 1,626,159 |
The Utilities' long-term debt, net (included in amount above) |  | 1,217,946 |  |  | — |  |  | 1,316,380 |  |  | — |  |  | 1,316,380 |
Derivative liabilities |  | 10,207 |  |  | 23 |  |  | 4 |  |  | — |  |  | 27 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |
Available-for-sale investment and mortgage-related securities |  | 529,007 |  |  | — |  |  | 529,007 |  |  | — |  |  | 529,007 |
Investment in stock of Federal Home Loan Bank of Seattle |  | 92,546 |  |  | — |  |  | 92,546 |  |  | — |  |  | 92,546 |
Loans receivable, net |  | 4,115,415 |  |  | — |  |  | — |  |  | 4,211,290 |  |  | 4,211,290 |
Derivative assets |  | 46,356 |  |  | 98 |  |  | 531 |  |  | — |  |  | 629 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposit liabilities |  | 4,372,477 |  |  | — |  |  | 4,374,377 |  |  | — |  |  | 4,374,377 |
Short-term borrowings—other than bank |  | 105,482 |  |  | — |  |  | 105,482 |  |  | — |  |  | 105,482 |
Other bank borrowings |  | 244,514 |  |  | — |  |  | 256,029 |  |  | — |  |  | 256,029 |
Long-term debt, net—other than bank |  | 1,492,945 |  |  | — |  |  | 1,508,425 |  |  | — |  |  | 1,508,425 |
The Utilities' long-term debt, net (included in amount above) |  | 1,217,945 |  |  | — |  |  | 1,228,966 |  |  | — |  |  | 1,228,966 |
Derivative liabilities |  | 4,732 |  |  | — |  |  | 26 |  |  | — |  |  | 26 |
Schedule of assets measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows:
|  | September 30, 2014 |  | December 31, 2013
|  | Fair value measurements using |  | Fair value measurements using
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Money market funds (“other” segment) |  | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |
Available-for-sale securities (bank segment) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-related securities-FNMA, FHLMC and GNMA |  | $ | — |  |  | $ | 425,307 |  |  | $ | — |  |  | $ | — |  |  | $ | 369,444 |  |  | $ | — |
U.S. Treasury and federal agency obligations |  | — |  |  | 106,296 |  |  | — |  |  | — |  |  | 80,973 |  |  | — |
Municipal bonds |  | — |  |  | — |  |  | — |  |  | — |  |  | 78,590 |  |  | — |
|  | $ | — |  |  | $ | 531,603 |  |  | $ | — |  |  | $ | — |  |  | $ | 529,007 |  |  | $ | — |
Derivative assets 1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments |  | $ | — |  |  | $ | 216 |  |  | $ | — |  |  | $ | — |  |  | $ | 488 |  |  | $ | — |
Forward commitments |  | — |  |  | 1 |  |  | — |  |  | 98 |  |  | 43 |  |  | — |
|  | $ | — |  |  | $ | 217 |  |  | $ | — |  |  | $ | 98 |  |  | $ | 531 |  |  | $ | — |
Derivative liabilities 1 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 24 |  |  | $ | — |
Forward commitments |  | 23 |  |  | 3 |  |  | — |  |  | — |  |  | 2 |  |  | — |
|  | $ | 23 |  |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |
1 Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income.
Schedule of assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis were as follows:
|  |  |  | Fair value measurements
(in millions) |  | Balance |  | Level 1 |  | Level 2 |  | Level 3
Loans |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2014 |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
December 31, 2013 |  | 4 |  |  | — |  |  | — |  |  | 4 |
Real estate acquired in settlement of loans |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2014 |  | $ | 1 |  |  | — |  |  | — |  |  | $ | 1 |
December 31, 2013 |  | — |  |  | — |  |  | — |  |  | — |
Schedule of significant unobservable inputs used in the fair value measurement | Key assumptions used in estimating the fair value of the bank’s mortgage servicing rights were as follows:
(dollars in thousands) |  | September 30, 2014 |  |  | September 30, 2013 |
Unpaid principal balance |  | $ | 1,380,299 |  |  | $ | 1,329,815 |
Weighted average note rate |  | 4.08 | % |  | 4.06 | %
Weighted average discount rate |  | 9.6 | % |  | 10.1 | %
Weighted average prepayment speed |  | 8.1 | % |  | 6.6 | %
For loans and real estate acquired in settlement of loans classified as Level 3 as of September 30, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurement were as follows:
|  |  |  |  |  |  |  | Significant unobservable input value 1
($ in thousands) |  | Fair value |  | Valuation technique |  | Significant unobservable input |  | Range |  | Weighted Average
September 30, 2014 |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 1,928 |  |  | Fair value of property or collateral |  | Appraised value less 7% selling costs |  | 44-96% |  | 83%
Commercial loans |  | 216 |  |  | Fair value of property or collateral |  | Fair value of business assets |  |  |  | 19%
Total loans |  | $ | 2,144 |  |  |  |  |  |  |  |  |
Real estate acquired in settlement of loans |  | $ | 554 |  |  | Fair value of property or collateral |  | Appraised value less 7% selling costs |  | 100% |  | 100%
December 31, 2013 |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 2,361 |  |  | Fair value of property or collateral |  | Appraised value less 7% selling costs |  | 44-96% |  | 87%
Home equity lines of credit |  | 170 |  |  | Fair value of property or collateral |  | Appraised value less 7% selling costs |  | 45-50% |  | 50%
Commercial loans |  | 217 |  |  | Fair value of property or collateral |  | Fair value of business assets |  |  |  | 19%
Commercial loans |  | 1,668 |  |  | Discounted cash flows |  | Present value of expected future cash flows |  |  |  | 58%
|  |  |  |  |  | Discount rate |  |  |  | 4.5%
Total loans |  | $ | 4,416 |  |  |  |  |  |  |  |  |
1 Represent percent of outstanding principal balance.

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=25499696&loc=d3e19296-110258 + Details
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- 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 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=25499696&loc=d3e19207-110258 Reference 2: 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=28364263&loc=d3e13433-108611 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=28364263&loc=d3e13467-108611 Reference 4: 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=28364263&loc=d3e13476-108611 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=6957238&loc=d3e14172-108612 Reference 6: 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=6447952&loc=d3e13220-108610 + Details
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- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + 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=25499696&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: 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=25499696&loc=d3e19190-110258 + Details
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