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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized below:
 
 

Fair Value Measurements at the End of the Reporting Period Using
 
March 31, 2017

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
Assets:







Securities available for sale:







GSE debt securities
$
9,998

 
$
—

 
$
9,998

 
$
—

GSE collateralized mortgage obligations (residential)
726,619


—


726,619


—

GSE mortgage-backed securities (residential)
732,692


—


732,692


—

Corporate securities
4,313


—


4,313


—

Municipal securities
97,254


—


96,126


1,128

Mutual funds
13,070


13,070


—


—

Interest rate swaps
(1,623
)
 
—

 
(1,623
)
 
—

Mortgage banking derivatives
113

 
—

 
113

 
—

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest rate swaps
(1,623
)
 
—

 
(1,623
)
 
—

Mortgage banking derivatives
40

 
—

 
40

 
—



 
 
 
 
Fair Value Measurements at the End of the Reporting Period Using
 
December 31, 2016
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
Assets:
 
 
 
 
 
 
 
Securities available for sale:
 
 
 
 
 
 
 
GSE debt securities
$
12,008

 
$
—

 
$
12,008

 
$
—

GSE collateralized mortgage obligations (residential)
705,667

 
—

 
705,667

 
—

GSE mortgage-backed securities (residential)
728,041

 
—

 
728,041

 
—

Corporate securities
11,127

 
—

 
11,127

 
—

Municipal securities
86,839

 
—

 
85,700

 
1,139

Mutual funds
13,058

 
13,058

 
—

 
—

Interest rate swaps
(1,565
)
 
—

 
(1,565
)
 
—

Mortgage banking derivatives
147

 
—

 
147

 
—

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest rate swaps
(1,565
)
 
—

 
(1,565
)
 
—

Mortgage banking derivatives
41

 
—

 
41

 
—
Schedule of Derivative Instruments
The following table reflects the notional amount and fair value of mortgage banking derivatives for the dates indicated:
 
As of March 31, 2017
 
As of December 31, 2016
(Dollars in thousands)
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
Assets:
 
 
 
 
 
 
 
Interest rate lock commitments
$
6,801

 
$
113

 
$
11,168

 
$
130

Forward sale contracts related to mortgage banking
$
626

 
$
—

 
$
3,223

 
$
17

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest rate lock commitments
$
—

 
$
—

 
$
1,810

 
$
(3
)
Forward sale contracts related to mortgage banking
$
6,175

 
$
(40
)
 
$
9,755

 
$
(38
)
The following table reflects the notional amount and fair value of mortgage banking derivatives for the date indicated:
 
As of March 31, 2017
 
As of December 31, 2016
 
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
 
(Dollars in thousands)
Assets:
 
 
 
 
 
 
 
Interest rate lock commitments
$
6,801

 
$
113

 
$
11,168

 
$
130

Forward sale contracts related to mortgage banking
$
626

 
$
—

 
$
3,223

 
$
17

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest rate lock commitments
$
—

 
$
—

 
$
1,810

 
$
(3
)
Forward sale contracts related to mortgage banking
$
6,175

 
$
(40
)
 
$
9,755

 
$
(38
)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017:
 
 
Three Months Ended March 31,
 
 
2017
 
2016
 
 
(Dollars in thousands)
Beginning Balance, January 1
 
$
1,139

 
$
1,166

Total (losses) or gains included in other comprehensive income
 
(11
)
 
43

Ending Balance, March 31
 
$
1,128

 
$
1,209
Assets Measured at Fair Value on a Non-recurring Basis
Assets measured at fair value on a non-recurring basis are summarized below:
 
 

Fair Value Measurements at the End of the Reporting Period Using
 
March 31, 2017

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
Assets:







Impaired loans at fair value:







Real estate loans
$
65,125


$
—


$
—


$
65,125

Commercial business
9,407


—


—


9,407

Trade finance
4,365

 
—

 
—

 
4,365

Consumer
97

 
—

 
—

 
97

Loans held for sale, net
6,571


—


6,571


—

OREO
19,096


—


—


19,096


 
 
 
Fair Value Measurements at the End of the Reporting Period Using
 
December 31, 2016
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
Assets:
 
 
 
 
 
 
 
Impaired loans at fair value:
 
 
 
 
 
 
 
Real estate loans
$
58,882

 
$
—

 
$
—

 
$
58,882

Commercial business
6,563

 
—

 
—

 
6,563

Trade Finance
—

 
—

 
—

 
—

Consumer
253

 
—

 
—

 
253

Impaired loans held for sale, net
3,788

 
—

 
3,788

 
—

OREO
21,990

 
—

 
—

 
21,990


For assets measured at fair value on a non-recurring basis, the total net gains (losses), which include charge offs, recoveries, specific reserves, and recognized gains and losses on sales are summarized below:
 
For the Three Months Ended March 31,
 
2017
 
2016
 
(Dollars in thousands)
Assets:
 
 
 
Impaired loans at fair value:
 
 
 
Real estate loans
$
(2,002
)
 
$
309

Commercial business
(974
)
 
(2,672
)
Trade Finance
(712
)
 
1,296

Consumer
(266
)
 
(62
)
Impaired loans held for sale, net
420

 
15

OREO
(595
)
 
(577
)
Carrying Amounts and Estimated Fair Values of Financial Instruments
Carrying amounts and estimated fair values of financial instruments, not previously presented, at March 31, 2017 and December 31, 2016 were as follows:
 
March 31, 2017
 
Carrying
Amount

Estimated
Fair Value
 
Fair Value Measurement Using
 
(Dollars in thousands)
Financial Assets:



 

Cash and cash equivalents
$
461,068


$
461,068

 
Level 1
Interest bearing deposits in other financial institutions and
  other investments
43,958

 
43,630

 
Level 2/3
Loans held for sale
19,141


20,291

 
Level 2
Loans receivable—net
10,471,008


10,633,834

 
Level 3
FHLB stock
21,203


N/A

 
N/A
Accrued interest receivable
25,683


25,683

 
Level 2/3
Customers’ liabilities on acceptances
2,771


2,771

 
Level 2
Financial Liabilities:



 

Noninterest bearing deposits
$
2,963,947


$
2,963,947

 
Level 2
Saving and other interest bearing demand deposits
3,771,155


3,771,155

 
Level 2
Time deposits
3,968,675


3,963,545

 
Level 2
FHLB advances
703,850


698,287

 
Level 2
Subordinated debentures
100,067


100,067

 
Level 2
Accrued interest payable
10,592


10,592

 
Level 2
Servicing Assets
25,941

 
25,941

 
Level 3
Acceptances outstanding
2,771


2,771

 
Level 2
 
December 31, 2016
 
Carrying
Amount

Estimated
Fair Value
 
Fair Value Measurement Using
 
(Dollars in thousands)
Financial Assets:



 
 
Cash and cash equivalents
$
437,334


$
437,334

 
Level 1
Interest bearing deposits in other financial institutions and
  other investments
44,202

 
43,773

 
Level 2/3
Loans held for sale
22,785


24,492

 
Level 2
Loans receivable—net
10,463,989


10,666,642

 
Level 3
FHLB stock
21,964


N/A

 
N/A
Accrued interest receivable
26,880


26,880

 
Level 2/3
Customers’ liabilities on acceptances
2,899


2,899

 
Level 2
Financial Liabilities:
 
 
 
 
 
Noninterest bearing deposits
$
2,900,241


$
2,900,241

 
Level 2
Saving and other interest bearing demand deposits
3,703,352


3,703,352

 
Level 2
Time deposits
4,038,442


4,036,664

 
Level 2
FHLB advances
754,290


749,486

 
Level 2
Subordinated debentures
99,808


99,808

 
Level 2
Accrued interest payable
10,863


10,863

 
Level 2
Servicing Assets
26,457

 
26,457

 
Level 3
Acceptances outstanding
2,899


2,899

 
Level 2