Disclosures About Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers' financial instruments at March 31, 2016 and December 31, 2015 were as follows:

					Fair Value Measurements at March 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	$	262,638	$	262,638	$	262,638	$	—	$	—
Investment securities, available for sale	556,165		556,165		17,458		538,707		—
Loans held for sale	1,969,280		1,969,558		—		1,941,602		27,956
Loans receivable, net of allowance for loan losses	5,869,710		5,825,695		—		—		5,825,695
FHLB, Federal Reserve Bank and other restricted stock	92,269		92,269		—		92,269		—
Derivatives	15,324		15,324		—		15,251		73
Liabilities:
Deposits	$	6,478,615	$	6,486,780	$	4,108,287	$	2,378,493	$	—
Federal funds purchased	80,000		80,000		80,000		—		—
FHLB advances	1,633,700		1,635,165		1,323,700		311,465		—
Other borrowings	86,624		84,784		59,784		25,000		—
Subordinated debt	108,709		110,000		—		110,000		—
Derivatives	22,957		22,957		—		22,957		—

					Fair Value Measurements at December 31, 2015
	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	$	264,593	$	264,593	$	264,593	$	—	$	—
Investment securities, available for sale	560,253		560,253		19,212		541,041		—
Loans held for sale	1,797,064		1,797,458		—		1,757,807		39,651
Loans receivable, net of allowance for loan losses	5,417,832		5,353,903		—		—		5,353,903
FHLB, Federal Reserve Bank and other restricted stock	90,841		90,841		—		90,841		—
Derivatives	9,295		9,295		—		9,250		45
Liabilities:
Deposits	$	5,909,501	$	5,911,754	$	3,561,905	$	2,349,849	$	—
Federal funds purchased	70,000		70,000		70,000		—		—
FHLB advances	1,625,300		1,625,468		1,365,300		260,168		—
Other borrowings	86,457		93,804		68,867		24,937		—
Subordinated debt	108,685		110,825		—		110,825		—
Derivatives	13,932		13,932		—		13,932		—

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 March 31, 2016 and December 31, 2015 were as follows:

	March 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	$	—	$	286,289	$	—	$	286,289
Agency guaranteed commercial real estate mortgage-backed securities	—		207,397		—		207,397
Corporate notes	—		45,021		—		45,021
Equity securities	17,458		—		—		17,458
Derivatives	—		15,251		73		15,324
Loans held for sale – fair value option	—		1,941,602		—		1,941,602
Total assets - recurring fair value measurements	$	17,458	$	2,495,560	$	73	$	2,513,091
Liabilities
Derivatives	$	—	$	22,957	$	—	$	22,957
Measured at Fair Value on a Nonrecurring Basis:
Assets
Impaired loans, net of specific reserves of $3,670	$	—	$	—	$	6,354	$	6,354
Other real estate owned	—		—		688		688
Total assets - nonrecurring fair value measurements	$	—	$	—	$	7,042	$	7,042

	December 31, 2015
	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	$	—	$	298,104	$	—	$	298,104
Agency-guaranteed commercial real estate mortgage-backed securities	—		202,870		—		202,870
Corporate notes	—		40,067		—		40,067
Equity securities	19,212		—		—		19,212
Derivatives	—		9,250		45		$	9,295
Loans held for sale – fair value option	—		1,757,807		—		1,757,807
Total assets - recurring fair value measurements	$	19,212	$	2,308,098	$	45	$	2,327,355
Liabilities
Derivatives	—		$	13,932	—		$	13,932
Measured at Fair Value on a Nonrecurring Basis:
Assets
Impaired loans, net of specific reserves of $2,273	$	—	$	—	$	4,346	$	4,346
Other real estate owned	—		—		358		358
Total assets - nonrecurring fair value measurements	$	—	$	—	$	4,704	$	4,704

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 months ended March 31, 2016 and 2015 are summarized as follows.

	Three Months Ended March 31,
	2016			2015
	Residential Mortgage Loan Commitments
(amounts in thousands)
Balance at December 31	$	45		$	43
Issuances	73			87
Settlements	(45		)	(43		)
Balance at March 31	$	73		$	87

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 March 31, 2016 and December 31, 2015 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
March 31, 2016	Fair Value Estimate		Valuation Technique	Unobservable Input	Range (Weighted Average) (3)
(amounts in thousands)
Impaired loans	$	6,354	Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Other real estate owned	688		Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Residential mortgage loan commitments	73		Adjusted market bid	Pull-through rate	90%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2015	Fair Value Estimate		Valuation Technique	Unobservable Input	Range (Weighted Average) (3)
(amounts in thousands)
Impaired loans	$	4,346	Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Other real estate owned	358		Collateral appraisal (1)	Liquidation expenses (2)	(8)%
Residential mortgage loan commitments	45		Adjusted market bid	Pull-through rate	94%

(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.

(3) Presented as a percentage of the value determined by appraisal.