Disclosures About Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers' financial instruments at September 30, 2017 and December 31, 2016 were as follows. BankMobile assets and liabilities previously reported as held for sale have been reclassified as held and used to conform with the current period presentation.

					Fair Value Measurements at September 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	$	219,480	$	219,480	$	219,480	$	—	$	—
Investment securities, available for sale	584,823		584,823		2,311		582,512		—
Loans held for sale	2,113,293		2,113,473		—		1,963,076		150,397
Loans receivable, net of allowance for loan losses	7,023,024		7,020,487		—		—		7,020,487
FHLB, Federal Reserve Bank and other restricted stock	98,611		98,611		—		98,611		—
Derivatives	10,447		10,447		—		10,344		103
Liabilities:
Deposits	$	7,597,076	$	7,596,324	$	5,296,636	$	2,299,688	$	—
Federal funds purchased	147,000		147,000		147,000		—		—
FHLB advances	1,462,343		1,462,245		727,343		734,902		—
Other borrowings	186,258		194,157		65,704		128,453		—
Subordinated debt	108,856		115,500		—		115,500		—
Derivatives	12,092		12,092		—		12,092		—

					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	$	264,709	$	264,709	$	264,709	$	—	$	—
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	6,117,322		6,162,020		—		—		6,162,020
FHLB, 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 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, 2017 and December 31, 2016 were as follows:

	September 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	$	—	$	196,327	$	—	$	196,327
Agency guaranteed commercial mortgage-backed securities	—		340,108		—		340,108
Corporate notes	—		46,077		—		46,077
Equity securities	2,311		—		—		2,311
Derivatives	—		10,344		103		10,447
Loans held for sale – fair value option	—		1,963,076		—		1,963,076
Total assets - recurring fair value measurements	$	2,311	$	2,555,932	$	103	$	2,558,346
Liabilities
Derivatives	$	—	$	12,092	$	—	$	12,092
Measured at Fair Value on a Nonrecurring Basis:
Assets
Impaired loans, net of reserves of $1,527	$	—	$	—	$	2,976	$	2,976
Other real estate owned	—		—		782		782
Total assets - nonrecurring fair value measurements	$	—	$	—	$	3,758	$	3,758

	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 nine months ended September 30, 2017 and 2016 are summarized as follows. Additional information about residential mortgage loan commitments can be found in NOTE 13 - DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES.

	Residential Mortgage Loan Commitments
	Three Months Ended September 30,
	2017			2016
(amounts in thousands)
Balance at June 30	$	102		$	157
Issuances	103			85
Settlements	(102		)	(157		)
Balance at September 30	$	103		$	85

	Residential Mortgage Loan Commitments
	Nine Months Ended September 30,
	2017			2016
(amounts in thousands)
Balance at December 31	$	45		$	45
Issuances	300			315
Settlements	(242		)	(275		)
Balance at September 30	$	103		$	85

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, 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
September 30, 2017	Fair Value Estimate		Valuation Technique	Unobservable Input	Range (Weighted Average) (4)
(amounts in thousands)
Impaired loans	$	2,976	Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Other real estate owned	782		Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Residential mortgage loan commitments	103		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.