Washington | 91-0186600 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
Large Accelerated Filer | o | Accelerated Filer | x | ||
Non-accelerated Filer | o | Smaller Reporting Company | o |
PART I – FINANCIAL INFORMATION | ||
ITEM 1 | FINANCIAL STATEMENTS | |
ITEM 2 | ||
ITEM 1. FINANCIAL STATEMENTS |
(in thousands, except share data) | September 30, 2016 | December 31, 2015 | ||||||
ASSETS | ||||||||
Cash and cash equivalents (including interest-earning instruments of $8,580 and $2,079) | $ | 55,998 | $ | 32,684 | ||||
Investment securities (includes $949,075 and $541,151 carried at fair value) | 991,325 | 572,164 | ||||||
Loans held for sale (includes $834,144 and $632,273 carried at fair value) | 893,513 | 650,163 | ||||||
Loans held for investment (net of allowance for loan losses of $33,975 and $29,278; includes $20,547, and $21,544 carried at fair value) | 3,764,178 | 3,192,720 | ||||||
Mortgage servicing rights (includes $149,910 and $156,604 carried at fair value) | 167,501 | 171,255 | ||||||
Other real estate owned | 6,440 | 7,531 | ||||||
Federal Home Loan Bank stock, at cost | 39,783 | 44,342 | ||||||
Premises and equipment, net | 72,951 | 63,738 | ||||||
Goodwill | 19,900 | 11,521 | ||||||
Other assets | 215,012 | 148,377 | ||||||
Total assets | $ | 6,226,601 | $ | 4,894,495 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | $ | 4,504,560 | $ | 3,231,953 | ||||
Federal Home Loan Bank advances | 858,923 | 1,018,159 | ||||||
Accounts payable and other liabilities | 151,968 | 117,251 | ||||||
Long-term debt | 125,122 | 61,857 | ||||||
Total liabilities | 5,640,573 | 4,429,220 | ||||||
Commitments and contingencies (Note 9) | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, no par value, authorized 10,000 shares, issued and outstanding, 0 shares and 0 shares | — | — | ||||||
Common stock, no par value, authorized 160,000,000, issued and outstanding, 24,833,008 shares and 22,076,534 shares | 511 | 511 | ||||||
Additional paid-in capital | 276,844 | 222,328 | ||||||
Retained earnings | 300,742 | 244,885 | ||||||
Accumulated other comprehensive income (loss) | 7,931 | (2,449 | ) | |||||
Total shareholders' equity | 586,028 | 465,275 | ||||||
Total liabilities and shareholders' equity | $ | 6,226,601 | $ | 4,894,495 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Interest income: | |||||||||||||||
Loans | $ | 49,752 | $ | 41,012 | $ | 139,748 | $ | 111,603 | |||||||
Investment securities | 5,476 | 2,754 | 12,531 | 8,426 | |||||||||||
Other | 102 | 224 | 396 | 647 | |||||||||||
55,330 | 43,990 | 152,675 | 120,676 | ||||||||||||
Interest expense: | |||||||||||||||
Deposits | 5,362 | 3,069 | 13,380 | 8,656 | |||||||||||
Federal Home Loan Bank advances | 1,605 | 958 | 4,486 | 2,476 | |||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2 | — | 2 | 8 | |||||||||||
Long-term debt | 1,440 | 278 | 2,574 | 815 | |||||||||||
Other | 119 | 51 | 258 | 123 | |||||||||||
8,528 | 4,356 | 20,700 | 12,078 | ||||||||||||
Net interest income | 46,802 | 39,634 | 131,975 | 108,598 | |||||||||||
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 | |||||||||||
Net interest income after provision for credit losses | 45,552 | 38,934 | 128,225 | 104,398 | |||||||||||
Noninterest income: | |||||||||||||||
Net gain on mortgage loan origination and sale activities | 92,600 | 57,885 | 239,493 | 189,746 | |||||||||||
Mortgage servicing income | 14,544 | 4,768 | 35,855 | 10,896 | |||||||||||
Income from WMS Series LLC | 1,174 | 380 | 2,474 | 1,428 | |||||||||||
Depositor and other retail banking fees | 1,744 | 1,701 | 4,991 | 4,239 | |||||||||||
Insurance agency commissions | 441 | 477 | 1,205 | 1,183 | |||||||||||
Gain on sale of investment securities available for sale | 48 | 1,002 | 145 | 1,002 | |||||||||||
Bargain purchase gain | — | 796 | — | 7,345 | |||||||||||
Other | 1,194 | 459 | 1,766 | (11 | ) | ||||||||||
111,745 | 67,468 | 285,929 | 215,828 | ||||||||||||
Noninterest expense: | |||||||||||||||
Salaries and related costs | 79,164 | 60,991 | 221,615 | 180,238 | |||||||||||
General and administrative | 14,949 | 14,342 | 47,210 | 41,122 | |||||||||||
Amortization of core deposit intangibles | 579 | 527 | 1,636 | 1,410 | |||||||||||
Legal | 639 | 868 | 1,687 | 1,912 | |||||||||||
Consulting | 1,390 | 166 | 4,239 | 6,544 | |||||||||||
Federal Deposit Insurance Corporation assessments | 919 | 504 | 2,419 | 1,890 | |||||||||||
Occupancy | 7,740 | 6,077 | 22,408 | 18,024 | |||||||||||
Information services | 7,876 | 8,159 | 23,857 | 21,993 | |||||||||||
Net cost from operation and sale of other real estate owned | 1,143 | 392 | 1,712 | 710 | |||||||||||
114,399 | 92,026 | 326,783 | 273,843 | ||||||||||||
Income before income taxes | 42,898 | 14,376 | 87,371 | 46,383 | |||||||||||
Income tax expense | 15,197 | 4,415 | 31,514 | 13,742 | |||||||||||
NET INCOME | $ | 27,701 | $ | 9,961 | $ | 55,857 | $ | 32,641 | |||||||
Basic income per share | $ | 1.12 | $ | 0.45 | $ | 2.29 | $ | 1.60 | |||||||
Diluted income per share | $ | 1.11 | $ | 0.45 | $ | 2.27 | $ | 1.58 | |||||||
Basic weighted average number of shares outstanding | 24,811,169 | 22,035,317 | 24,398,683 | 20,407,386 | |||||||||||
Diluted weighted average number of shares outstanding | 24,996,747 | 22,291,810 | 24,595,348 | 20,646,540 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income | $ | 27,701 | $ | 9,961 | $ | 55,857 | $ | 32,641 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on investment securities available for sale: | |||||||||||||||
Unrealized holding (loss) gain arising during the period, net of tax (benefit) expense of $(962) and $1,576 for the three months ended September 30, 2016 and 2015, and $5,640 and $430 for the nine months ended September 30, 2016 and 2015, respectively | (1,786 | ) | 2,926 | 10,474 | 798 | ||||||||||
Reclassification adjustment for net gains included in net income, net of tax expense of $17 and $351 for the three months ended September 30, 2016 and 2015, and $51 and $351 for the nine months ended September 30, 2016 and 2015, respectively | (31 | ) | (651 | ) | (94 | ) | (651 | ) | |||||||
Other comprehensive (loss) income | (1,817 | ) | 2,275 | 10,380 | 147 | ||||||||||
Comprehensive income | $ | 25,884 | $ | 12,236 | $ | 66,237 | $ | 32,788 |
(in thousands, except share data) | Number of shares | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total | ||||||||||||||||
Balance, January 1, 2015 | 14,856,611 | $ | 511 | $ | 96,615 | $ | 203,566 | $ | 1,546 | $ | 302,238 | |||||||||||
Net income | — | — | — | 32,641 | — | 32,641 | ||||||||||||||||
Share-based compensation expense | — | — | 986 | — | — | 986 | ||||||||||||||||
Common stock issued | 7,205,091 | — | 124,446 | — | — | 124,446 | ||||||||||||||||
Other comprehensive income | — | — | — | — | 147 | 147 | ||||||||||||||||
Balance, September 30, 2015 | 22,061,702 | $ | 511 | $ | 222,047 | $ | 236,207 | $ | 1,693 | $ | 460,458 | |||||||||||
Balance, January 1, 2016 | 22,076,534 | $ | 511 | $ | 222,328 | $ | 244,885 | $ | (2,449 | ) | $ | 465,275 | ||||||||||
Net income | — | — | — | 55,857 | — | 55,857 | ||||||||||||||||
Share-based compensation expense | — | — | 1,278 | — | — | 1,278 | ||||||||||||||||
Common stock issued | 2,756,474 | — | 53,238 | — | — | 53,238 | ||||||||||||||||
Other comprehensive income | — | — | — | — | 10,380 | 10,380 | ||||||||||||||||
Balance, September 30, 2016 | 24,833,008 | $ | 511 | $ | 276,844 | $ | 300,742 | $ | 7,931 | $ | 586,028 |
Nine Months Ended September 30, | |||||||
(in thousands) | 2016 | 2015 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 55,857 | $ | 32,641 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation, amortization and accretion | 12,789 | 10,700 | |||||
Provision for credit losses | 3,750 | 4,200 | |||||
Net fair value adjustment and gain on sale of loans held for sale | (220,944 | ) | (3,797 | ) | |||
Fair value adjustment of loans held for investment | (863 | ) | 1,797 | ||||
Origination of mortgage servicing rights | (59,487 | ) | (58,158 | ) | |||
Change in fair value of mortgage servicing rights | 61,294 | 34,949 | |||||
Net gain on sale of investment securities | (145 | ) | (1,002 | ) | |||
Net gain on sale of loans originated as held for investment | (1,181 | ) | — | ||||
Net fair value adjustment, gain on sale and provision for losses on other real estate owned | 1,653 | 290 | |||||
Loss on disposal of fixed assets | 186 | 89 | |||||
Net deferred income tax expense | 116 | 11,491 | |||||
Share-based compensation expense | 1,478 | 783 | |||||
Bargain purchase gain | — | (7,345 | ) | ||||
Origination of loans held for sale | (6,582,189 | ) | (5,599,978 | ) | |||
Proceeds from sale of loans originated as held for sale | 6,571,684 | 5,349,444 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in other assets | (55,845 | ) | (32,025 | ) | |||
Increase in accounts payable and other liabilities | 30,569 | 22,550 | |||||
Net cash used in operating activities | (181,278 | ) | (233,371 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of investment securities | (468,900 | ) | (177,535 | ) | |||
Proceeds from sale of investment securities | 21,107 | 28,080 | |||||
Principal repayments and maturities of investment securities | 61,018 | 25,835 | |||||
Proceeds from sale of other real estate owned | 4,310 | 4,953 | |||||
Proceeds from sale of loans originated as held for investment | 80,956 | — | |||||
Proceeds from sale of mortgage servicing rights | — | 3,825 | |||||
Mortgage servicing rights purchased from others | — | (9 | ) | ||||
Capital expenditures related to other real estate owned | (270 | ) | — | ||||
Origination of loans held for investment and principal repayments, net | (497,222 | ) | (260,404 | ) | |||
Proceeds from sale of property and equipment | 1,148 | — | |||||
Purchase of property and equipment | (17,932 | ) | (16,961 | ) | |||
Net cash acquired from acquisitions | 24,248 | 112,196 | |||||
Net cash used in investing activities | (791,537 | ) | (280,020 | ) |
Nine Months Ended September 30, | |||||||
(in thousands) | 2016 | 2015 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Increase in deposits, net | $ | 1,097,970 | $ | 212,710 | |||
Proceeds from Federal Home Loan Bank advances | 11,323,660 | 7,332,200 | |||||
Repayment of Federal Home Loan Bank advances | (11,497,160 | ) | (6,969,700 | ) | |||
Proceeds from federal funds purchased and securities sold under agreements to repurchase | 52,304 | 73,004 | |||||
Repayment of federal funds purchased and securities sold under agreements to repurchase | (52,304 | ) | (123,004 | ) | |||
Proceeds from Federal Home Loan Bank stock repurchase | 197,876 | 90,565 | |||||
Purchase of Federal Home Loan Bank stock | (192,086 | ) | (95,783 | ) | |||
Proceeds from debt issuance, net | 63,205 | — | |||||
Proceeds from stock issuance, net | 2,664 | 177 | |||||
Excess tax benefit related to the exercise of stock options | — | 23 | |||||
Net cash provided by financing activities | 996,129 | 520,192 | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 23,314 | 6,801 | |||||
CASH AND CASH EQUIVALENTS: | |||||||
Beginning of year | 32,684 | 30,502 | |||||
End of period | $ | 55,998 | $ | 37,303 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest paid | $ | 19,067 | $ | 12,021 | |||
Federal and state income taxes paid, net | 14,318 | 16,533 | |||||
Non-cash activities: | |||||||
Loans held for investment foreclosed and transferred to other real estate owned | 1,661 | 4,095 | |||||
Loans transferred from held for investment to held for sale | 101,938 | 32,421 | |||||
Loans transferred from held for sale to held for investment | 10,262 | 25,668 | |||||
(Reduction in) Ginnie Mae loans recognized with the right to repurchase, net | (33 | ) | 3,345 | ||||
Simplicity acquisition: | |||||||
Assets acquired, excluding cash acquired | — | 738,279 | |||||
Liabilities assumed | — | 718,916 | |||||
Bargain purchase gain | — | 7,345 | |||||
Common stock issued | — | 124,214 | |||||
Orange County Business Bank acquisition: | |||||||
Assets acquired, excluding cash acquired | 165,786 | — | |||||
Liabilities assumed | 141,267 | — | |||||
Goodwill | 8,360 | — | |||||
Common stock issued | $ | 50,373 | $ | — |
(in thousands) | March 1, 2015 | ||||||
Fair value consideration paid to Simplicity shareholders: | |||||||
Cash paid (79,399 stock options, consideration based on intrinsic value at a calculated price of $17.53) | $ | 471 | |||||
Fair value of common shares issued (7,180,005 shares at $17.30 per share) | 124,214 | ||||||
Total purchase price | $ | 124,685 | |||||
Fair value of assets acquired: | |||||||
Cash and cash equivalents | 112,667 | ||||||
Investment securities | 26,845 | ||||||
Acquired loans | 664,148 | ||||||
Mortgage servicing rights | 980 | ||||||
Federal Home Loan Bank stock | 5,520 | ||||||
Premises and equipment | 2,966 | ||||||
Bank-owned life insurance | 14,501 | ||||||
Core deposit intangibles | 7,450 | ||||||
Accounts receivable and other assets | 15,869 | ||||||
Total assets acquired | 850,946 | ||||||
Fair value of liabilities assumed: | |||||||
Deposits | 651,202 | ||||||
Federal Home Loan Bank advances | 65,855 | ||||||
Accounts payable and accrued expenses | 1,859 | ||||||
Total liabilities assumed | 718,916 | ||||||
Net assets acquired | $ | 132,030 | |||||
Bargain purchase (gain) | $ | (7,345 | ) |
Nine Months Ended | |||
(in thousands) | September 30, 2015 | ||
Noninterest expense | |||
Salaries and related costs | $ | 7,669 | |
General and administrative | 1,256 | ||
Legal | 530 | ||
Consulting | 5,539 | ||
Occupancy | 335 | ||
Information services | 481 | ||
Total noninterest expense | $ | 15,810 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net interest income | $ | 46,802 | $ | 39,603 | $ | 131,975 | $ | 113,190 | |||||||
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 | |||||||||||
Total noninterest income | 111,745 | 66,676 | 285,929 | 209,239 | |||||||||||
Total noninterest expense | 114,399 | 91,557 | 326,783 | 266,243 | |||||||||||
Net income | $ | 27,701 | $ | 9,756 | $ | 55,857 | $ | 35,355 | |||||||
Basic income per share | $ | 1.12 | $ | 0.44 | $ | 2.29 | $ | 1.60 | |||||||
Diluted income per share | $ | 1.11 | $ | 0.44 | $ | 2.27 | $ | 1.59 | |||||||
Basic weighted average number of shares outstanding | 24,811,169 | 22,035,317 | 24,398,683 | 22,034,201 | |||||||||||
Diluted weighted average number of shares outstanding | 24,996,747 | 22,291,810 | 24,595,348 | 22,207,764 |
At September 30, 2016 | |||||||||||||||
(in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||
Mortgage-backed securities: | |||||||||||||||
Residential | $ | 151,521 | $ | 993 | $ | (278 | ) | $ | 152,236 | ||||||
Commercial | 26,898 | 333 | (23 | ) | 27,208 | ||||||||||
Municipal bonds | 348,181 | 7,582 | (419 | ) | 355,344 | ||||||||||
Collateralized mortgage obligations: | |||||||||||||||
Residential | 182,631 | 906 | (704 | ) | 182,833 | ||||||||||
Commercial | 118,589 | 1,775 | (105 | ) | 120,259 | ||||||||||
Corporate debt securities | 83,026 | 2,511 | (346 | ) | 85,191 | ||||||||||
U.S. Treasury securities | 26,003 | 1 | — | 26,004 | |||||||||||
$ | 936,849 | $ | 14,101 | $ | (1,875 | ) | $ | 949,075 |
At December 31, 2015 | |||||||||||||||
(in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||
Mortgage-backed securities: | |||||||||||||||
Residential | $ | 69,342 | $ | 19 | $ | (1,260 | ) | $ | 68,101 | ||||||
Commercial | 18,142 | 14 | (305 | ) | 17,851 | ||||||||||
Municipal bonds | 168,722 | 3,460 | (313 | ) | 171,869 | ||||||||||
Collateralized mortgage obligations: | |||||||||||||||
Residential | 86,167 | 32 | (1,702 | ) | 84,497 | ||||||||||
Commercial | 80,190 | 43 | (1,100 | ) | 79,133 | ||||||||||
Corporate debt securities | 81,280 | 125 | (2,669 | ) | 78,736 | ||||||||||
U.S. Treasury securities | 41,047 | — | (83 | ) | 40,964 | ||||||||||
$ | 544,890 | $ | 3,693 | $ | (7,432 | ) | $ | 541,151 |
At September 30, 2016 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Residential | $ | (66 | ) | $ | 28,439 | $ | (212 | ) | $ | 10,282 | $ | (278 | ) | $ | 38,721 | ||||||||
Commercial | (23 | ) | 3,041 | — | — | (23 | ) | 3,041 | |||||||||||||||
Municipal bonds | (420 | ) | 64,081 | — | — | (420 | ) | 64,081 | |||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||
Residential | (340 | ) | 77,897 | (364 | ) | 9,666 | (704 | ) | 87,563 | ||||||||||||||
Commercial | (44 | ) | 11,125 | (61 | ) | 6,059 | (105 | ) | 17,184 | ||||||||||||||
Corporate debt securities | (30 | ) | 1,615 | (315 | ) | 11,163 | (345 | ) | 12,778 | ||||||||||||||
U.S. Treasury securities | — | 1,000 | — | — | — | 1,000 | |||||||||||||||||
$ | (923 | ) | $ | 187,198 | $ | (952 | ) | $ | 37,170 | $ | (1,875 | ) | $ | 224,368 |
At December 31, 2015 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Residential | $ | (572 | ) | $ | 36,477 | $ | (688 | ) | $ | 21,119 | $ | (1,260 | ) | $ | 57,596 | ||||||||
Commercial | (305 | ) | 16,072 | — | — | (305 | ) | 16,072 | |||||||||||||||
Municipal bonds | (211 | ) | 21,302 | (101 | ) | 5,839 | (312 | ) | 27,141 | ||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||
Residential | (673 | ) | 50,490 | (1,029 | ) | 26,028 | (1,702 | ) | 76,518 | ||||||||||||||
Commercial | (986 | ) | 60,812 | (115 | ) | 4,348 | (1,101 | ) | 65,160 | ||||||||||||||
Corporate debt securities | (1,142 | ) | 36,953 | (1,527 | ) | 27,405 | (2,669 | ) | 64,358 | ||||||||||||||
U.S. Treasury securities | (83 | ) | 40,964 | — | — | (83 | ) | 40,964 | |||||||||||||||
$ | (3,972 | ) | $ | 263,070 | $ | (3,460 | ) | $ | 84,739 | $ | (7,432 | ) | $ | 347,809 |
At September 30, 2016 | ||||||||||||||||||||||||||||||||||
Within one year | After one year through five years | After five years through ten years | After ten years | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||
Residential | $ | — | — | % | $ | 2 | 0.31 | % | $ | 4,065 | 1.71 | % | $ | 148,169 | 1.86 | % | $ | 152,236 | 1.86 | % | ||||||||||||||
Commercial | — | — | 22,349 | 2.14 | 4,859 | 2.39 | — | — | 27,208 | 2.18 | ||||||||||||||||||||||||
Municipal bonds | 1,712 | 3.95 | 17,030 | 2.97 | 46,779 | 3.04 | 289,823 | 3.78 | 355,344 | 3.65 | ||||||||||||||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||||||||||||||||||||
Residential | — | — | — | — | 2,291 | 1.32 | 180,542 | 1.84 | 182,833 | 1.84 | ||||||||||||||||||||||||
Commercial | — | — | 22,472 | 2.00 | 53,350 | 2.49 | 44,437 | 1.97 | 120,259 | 2.21 | ||||||||||||||||||||||||
Corporate debt securities | — | — | 19,567 | 2.97 | 33,473 | 3.71 | 32,151 | 3.98 | 85,191 | 3.64 | ||||||||||||||||||||||||
U.S. Treasury securities | 26,004 | 0.37 | — | — | — | — | — | — | 26,004 | 0.37 | ||||||||||||||||||||||||
Total available for sale | $ | 27,716 | 0.59 | % | $ | 81,420 | 2.47 | % | $ | 144,817 | 2.91 | % | $ | 695,122 | 2.75 | % | $ | 949,075 | 2.69 | % |
At December 31, 2015 | ||||||||||||||||||||||||||||||||||
Within one year | After one year through five years | After five years through ten years | After ten years | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | Fair Value | Weighted Average Yield | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||
Residential | $ | — | — | % | $ | 4 | 0.39 | % | $ | 3,176 | 1.63 | % | $ | 64,921 | 1.88 | % | $ | 68,101 | 1.87 | % | ||||||||||||||
Commercial | — | — | — | — | 17,851 | 2.20 | — | — | 17,851 | 2.20 | ||||||||||||||||||||||||
Municipal bonds | 510 | 2.09 | 8,828 | 3.33 | 31,806 | 3.16 | 130,725 | 3.99 | 171,869 | 3.79 | ||||||||||||||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||||||||||||||||||||
Residential | — | — | — | — | 153 | 0.92 | 84,344 | 1.74 | 84,497 | 1.74 | ||||||||||||||||||||||||
Commercial | — | — | 5,354 | 1.87 | 56,506 | 2.29 | 17,273 | 1.87 | 79,133 | 2.17 | ||||||||||||||||||||||||
Corporate debt securities | — | — | 10,413 | 2.70 | 38,291 | 3.20 | 30,032 | 3.64 | 78,736 | 3.31 | ||||||||||||||||||||||||
U.S. Treasury securities | 39,971 | 0.39 | 993 | 0.63 | — | — | — | — | 40,964 | 0.40 | ||||||||||||||||||||||||
Total available for sale | $ | 40,481 | 0.41 | % | $ | 25,592 | 2.65 | % | $ | 147,783 | 2.69 | % | $ | 327,295 | 2.83 | % | $ | 541,151 | 2.60 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Proceeds | $ | 9,641 | $ | 28,080 | $ | 21,108 | $ | 28,080 | |||||||
Gross gains | 48 | 1,002 | 145 | 1,002 | |||||||||||
Gross losses | $ | — | $ | — | $ | — | $ | — |
(in thousands) | At September 30, 2016 | ||
Federal Home Loan Bank to secure borrowings | $ | 92,313 | |
Washington and California State to secure public deposits | 30,877 | ||
Securities pledged to secure derivatives in a liability position | 25,003 | ||
Other securities pledged | 9,193 | ||
Total securities pledged as collateral | $ | 157,386 |
(in thousands) | At September 30, 2016 | At December 31, 2015 | |||||
Consumer loans | |||||||
Single family(1) | $ | 1,186,476 | $ | 1,203,180 | |||
Home equity and other | 338,155 | 256,373 | |||||
1,524,631 | 1,459,553 | ||||||
Commercial loans | |||||||
Commercial real estate | 810,346 | 600,703 | |||||
Multifamily | 562,272 | 426,557 | |||||
Construction/land development | 661,813 | 583,160 | |||||
Commercial business | 237,117 | 154,262 | |||||
2,271,548 | 1,764,682 | ||||||
3,796,179 | 3,224,235 | ||||||
Net deferred loan fees and costs | 1,974 | (2,237 | ) | ||||
3,798,153 | 3,221,998 | ||||||
Allowance for loan losses | (33,975 | ) | (29,278 | ) | |||
$ | 3,764,178 | $ | 3,192,720 |
(1) | Includes $20.5 million and $21.5 million at September 30, 2016 and December 31, 2015, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Allowance for credit losses (roll-forward): | |||||||||||||||
Beginning balance | $ | 34,001 | $ | 26,448 | $ | 30,659 | $ | 22,524 | |||||||
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 | |||||||||||
Recoveries and (charge-offs), net | (18 | ) | 739 | 824 | 1,163 | ||||||||||
Ending balance | $ | 35,233 | $ | 27,887 | $ | 35,233 | $ | 27,887 | |||||||
Components: | |||||||||||||||
Allowance for loan losses | $ | 33,975 | $ | 26,922 | $ | 33,975 | $ | 26,922 | |||||||
Allowance for unfunded commitments | 1,258 | 965 | 1,258 | 965 | |||||||||||
Allowance for credit losses | $ | 35,233 | $ | 27,887 | $ | 35,233 | $ | 27,887 |
Three Months Ended September 30, 2016 | |||||||||||||||||||
(in thousands) | Beginning balance | Charge-offs | Recoveries | (Reversal of) Provision | Ending balance | ||||||||||||||
Consumer loans | |||||||||||||||||||
Single family | $ | 8,294 | $ | (42 | ) | $ | 1 | $ | 995 | $ | 9,248 | ||||||||
Home equity and other | 5,400 | (356 | ) | 192 | 512 | 5,748 | |||||||||||||
13,694 | (398 | ) | 193 | 1,507 | 14,996 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 6,045 | — | — | 80 | 6,125 | ||||||||||||||
Multifamily | 2,048 | — | — | 49 | 2,097 | ||||||||||||||
Construction/land development | 9,369 | — | 176 | (524 | ) | 9,021 | |||||||||||||
Commercial business | 2,845 | — | 11 | 138 | 2,994 | ||||||||||||||
20,307 | — | 187 | (257 | ) | 20,237 | ||||||||||||||
Total allowance for credit losses | $ | 34,001 | $ | (398 | ) | $ | 380 | $ | 1,250 | $ | 35,233 |
Three Months Ended September 30, 2015 | |||||||||||||||||||
(in thousands) | Beginning balance | Charge-offs | Recoveries | (Reversal of) Provision | Ending balance | ||||||||||||||
Consumer loans | |||||||||||||||||||
Single family | $ | 8,997 | $ | (232 | ) | $ | 250 | $ | (298 | ) | $ | 8,717 | |||||||
Home equity and other | 3,882 | (255 | ) | 84 | 541 | 4,252 | |||||||||||||
12,879 | (487 | ) | 334 | 243 | 12,969 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 5,046 | — | — | (355 | ) | 4,691 | |||||||||||||
Multifamily | 780 | (150 | ) | — | 153 | 783 | |||||||||||||
Construction/land development | 5,943 | — | 1,033 | 435 | 7,411 | ||||||||||||||
Commercial business | 1,800 | (14 | ) | 23 | 224 | 2,033 | |||||||||||||
13,569 | (164 | ) | 1,056 | 457 | 14,918 | ||||||||||||||
Total allowance for credit losses | $ | 26,448 | $ | (651 | ) | $ | 1,390 | $ | 700 | $ | 27,887 |
Nine Months Ended September 30, 2016 | |||||||||||||||||||
(in thousands) | Beginning balance | Charge-offs | Recoveries | (Reversal of) Provision | Ending balance | ||||||||||||||
Consumer loans | |||||||||||||||||||
Single family | $ | 8,942 | $ | (74 | ) | $ | 87 | $ | 293 | $ | 9,248 | ||||||||
Home equity and other | 4,620 | (654 | ) | 530 | 1,252 | 5,748 | |||||||||||||
13,562 | (728 | ) | 617 | 1,545 | 14,996 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 4,847 | — | — | 1,278 | 6,125 | ||||||||||||||
Multifamily | 1,194 | — | — | 903 | 2,097 | ||||||||||||||
Construction/land development | 9,271 | (42 | ) | 959 | (1,167 | ) | 9,021 | ||||||||||||
Commercial business | 1,785 | (26 | ) | 44 | 1,191 | 2,994 | |||||||||||||
17,097 | (68 | ) | 1,003 | 2,205 | 20,237 | ||||||||||||||
Total allowance for credit losses | $ | 30,659 | $ | (796 | ) | $ | 1,620 | $ | 3,750 | $ | 35,233 |
Nine Months Ended September 30, 2015 | |||||||||||||||||||
(in thousands) | Beginning balance | Charge-offs | Recoveries | (Reversal of) Provision | Ending balance | ||||||||||||||
Consumer loans | |||||||||||||||||||
Single family | $ | 9,447 | $ | (232 | ) | $ | 496 | $ | (994 | ) | $ | 8,717 | |||||||
Home equity and other | 3,322 | (456 | ) | 225 | 1,161 | 4,252 | |||||||||||||
12,769 | (688 | ) | 721 | 167 | 12,969 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 3,846 | (16 | ) | 37 | 824 | 4,691 | |||||||||||||
Multifamily | 673 | (150 | ) | — | 260 | 783 | |||||||||||||
Construction/land development | 3,818 | — | 1,132 | 2,461 | 7,411 | ||||||||||||||
Commercial business | 1,418 | (23 | ) | 150 | 488 | 2,033 | |||||||||||||
9,755 | (189 | ) | 1,319 | 4,033 | 14,918 | ||||||||||||||
Total allowance for credit losses | $ | 22,524 | $ | (877 | ) | $ | 2,040 | $ | 4,200 | $ | 27,887 |
At September 30, 2016 | ||||||||||||||||||||||||
(in thousands) | Allowance: collectively evaluated for impairment | Allowance: individually evaluated for impairment | Total | Loans: collectively evaluated for impairment | Loans: individually evaluated for impairment | Total | ||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||
Single family | $ | 8,223 | $ | 1,025 | $ | 9,248 | $ | 1,079,132 | $ | 86,797 | $ | 1,165,929 | ||||||||||||
Home equity and other | 5,696 | 52 | 5,748 | 336,809 | 1,346 | 338,155 | ||||||||||||||||||
13,919 | 1,077 | 14,996 | 1,415,941 | 88,143 | 1,504,084 | |||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||
Commercial real estate | 6,124 | 1 | 6,125 | 806,600 | 3,746 | 810,346 | ||||||||||||||||||
Multifamily | 2,097 | — | 2,097 | 561,651 | 621 | 562,272 | ||||||||||||||||||
Construction/land development | 9,021 | — | 9,021 | 659,480 | 2,333 | 661,813 | ||||||||||||||||||
Commercial business | 2,767 | 227 | 2,994 | 231,650 | 5,467 | 237,117 | ||||||||||||||||||
20,009 | 228 | 20,237 | 2,259,381 | 12,167 | 2,271,548 | |||||||||||||||||||
Total loans evaluated for impairment | 33,928 | 1,305 | 35,233 | 3,675,322 | 100,310 | 3,775,632 | ||||||||||||||||||
Loans held for investment carried at fair value | 20,547 | (1) | ||||||||||||||||||||||
Total loans held for investment | $ | 33,928 | $ | 1,305 | $ | 35,233 | $ | 3,675,322 | $ | 100,310 | $ | 3,796,179 |
(1) | Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
At December 31, 2015 | ||||||||||||||||||||||||
(in thousands) | Allowance: collectively evaluated for impairment | Allowance: individually evaluated for impairment | Total | Loans: collectively evaluated for impairment | Loans: individually evaluated for impairment | Total | ||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||
Single family | $ | 8,723 | $ | 219 | $ | 8,942 | $ | 1,101,891 | $ | 79,745 | $ | 1,181,636 | ||||||||||||
Home equity and other | 4,545 | 75 | 4,620 | 254,762 | 1,611 | 256,373 | ||||||||||||||||||
13,268 | 294 | 13,562 | 1,356,653 | 81,356 | 1,438,009 | |||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||
Commercial real estate | 4,847 | — | 4,847 | 597,571 | 3,132 | 600,703 | ||||||||||||||||||
Multifamily | 1,194 | — | 1,194 | 423,424 | 3,133 | 426,557 | ||||||||||||||||||
Construction/land development | 9,271 | — | 9,271 | 579,446 | 3,714 | 583,160 | ||||||||||||||||||
Commercial business | 1,512 | 273 | 1,785 | 151,924 | 2,338 | 154,262 | ||||||||||||||||||
16,824 | 273 | 17,097 | 1,752,365 | 12,317 | 1,764,682 | |||||||||||||||||||
Total loans evaluated for impairment | 30,092 | 567 | 30,659 | 3,109,018 | 93,673 | 3,202,691 | ||||||||||||||||||
Loans held for investment carried at fair value | 21,544 | (1) | ||||||||||||||||||||||
Total loans held for investment | $ | 30,092 | $ | 567 | $ | 30,659 | $ | 3,109,018 | $ | 93,673 | $ | 3,224,235 |
(1) | Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
At September 30, 2016 | |||||||||||
(in thousands) | Recorded investment (1) | Unpaid principal balance (2) | Related allowance | ||||||||
With no related allowance recorded: | |||||||||||
Consumer loans | |||||||||||
Single family | $ | 82,898 | $ | 85,153 | $ | — | |||||
Home equity and other | 790 | 822 | — | ||||||||
83,688 | 85,975 | — | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 2,217 | 2,758 | — | ||||||||
Multifamily | 621 | 745 | — | ||||||||
Construction/land development | 2,333 | 3,259 | — | ||||||||
Commercial business | 1,094 | 1,977 | — | ||||||||
6,265 | 8,739 | — | |||||||||
$ | 89,953 | $ | 94,714 | $ | — | ||||||
With an allowance recorded: | |||||||||||
Consumer loans | |||||||||||
Single family | $ | 3,899 | $ | 3,990 | $ | 1,025 | |||||
Home equity and other | 556 | 555 | 52 | ||||||||
4,455 | 4,545 | 1,077 | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 1,529 | 1,529 | 1 | ||||||||
Commercial business | 4,373 | 4,445 | 227 | ||||||||
5,902 | 5,974 | 228 | |||||||||
$ | 10,357 | $ | 10,519 | $ | 1,305 | ||||||
Total: | |||||||||||
Consumer loans | |||||||||||
Single family(3) | $ | 86,797 | $ | 89,143 | $ | 1,025 | |||||
Home equity and other | 1,346 | 1,377 | 52 | ||||||||
88,143 | 90,520 | 1,077 | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 3,746 | 4,287 | 1 | ||||||||
Multifamily | 621 | 745 | — | ||||||||
Construction/land development | 2,333 | 3,259 | — | ||||||||
Commercial business | 5,467 | 6,422 | 227 | ||||||||
12,167 | 14,713 | 228 | |||||||||
Total impaired loans | $ | 100,310 | $ | 105,233 | $ | 1,305 |
(1) | Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums. |
(2) | Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. |
(3) | Includes $77.5 million in single family performing TDRs. |
At December 31, 2015 | |||||||||||
(in thousands) | Recorded investment (1) | Unpaid principal balance (2) | Related allowance | ||||||||
With no related allowance recorded: | |||||||||||
Consumer loans | |||||||||||
Single family | $ | 78,240 | $ | 80,486 | $ | — | |||||
Home equity and other | 955 | 1,033 | — | ||||||||
79,195 | 81,519 | — | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 3,132 | 3,421 | — | ||||||||
Multifamily | 3,133 | 3,429 | — | ||||||||
Construction/land development | 3,714 | 4,214 | — | ||||||||
Commercial business | 1,373 | 1,475 | — | ||||||||
11,352 | 12,539 | — | |||||||||
$ | 90,547 | $ | 94,058 | $ | — | ||||||
With an allowance recorded: | |||||||||||
Consumer loans | |||||||||||
Single family | $ | 1,505 | $ | 1,618 | $ | 219 | |||||
Home equity and other | 656 | 656 | 75 | ||||||||
2,161 | 2,274 | 294 | |||||||||
Commercial loans | |||||||||||
Commercial business | 965 | 1,019 | 273 | ||||||||
965 | 1,019 | 273 | |||||||||
$ | 3,126 | $ | 3,293 | $ | 567 | ||||||
Total: | |||||||||||
Consumer loans | |||||||||||
Single family(3) | $ | 79,745 | $ | 82,104 | $ | 219 | |||||
Home equity and other | 1,611 | 1,689 | 75 | ||||||||
81,356 | 83,793 | 294 | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 3,132 | 3,421 | — | ||||||||
Multifamily | 3,133 | 3,429 | — | ||||||||
Construction/land development | 3,714 | 4,214 | — | ||||||||
Commercial business | 2,338 | 2,494 | 273 | ||||||||
12,317 | 13,558 | 273 | |||||||||
Total impaired loans | $ | 93,673 | $ | 97,351 | $ | 567 |
(1) | Includes partial charge-offs and nonaccrual interest paid. |
(2) | Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. |
(3) | Includes $74.7 million in single family performing TDRs. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Consumer loans | |||||||||||||||
Single family | $ | 85,138 | $ | 78,432 | $ | 83,271 | $ | 78,358 | |||||||
Home equity and other | 1,371 | 1,872 | 1,479 | 2,184 | |||||||||||
86,509 | 80,304 | 84,750 | 80,542 | ||||||||||||
Commercial loans | |||||||||||||||
Commercial real estate | 3,431 | 15,797 | 3,439 | 20,328 | |||||||||||
Multifamily | 621 | 4,590 | 1,877 | 4,022 | |||||||||||
Construction/land development | 2,333 | 4,466 | 3,023 | 4,968 | |||||||||||
Commercial business | 4,068 | 5,883 | 3,902 | 4,691 | |||||||||||
10,453 | 30,736 | 12,241 | 34,009 | ||||||||||||
$ | 96,962 | $ | 111,040 | $ | 96,991 | $ | 114,551 |
• | The borrower may be experiencing declining operating trends, strained cash flows or less-than anticipated performance. Cash flow should still be adequate to cover debt service, and the negative trends should be identified as being of a short-term or temporary nature. |
• | The borrower may have experienced a minor, unexpected covenant violation. |
• | Companies who may be experiencing tight working capital or have a cash cushion deficiency. |
• | A loan may also be a watch if financial information is late, there is a documentation deficiency, the borrower has experienced unexpected management turnover, or if they face industry issues that, when combined with performance factors create uncertainty in their future ability to perform. |
• | Delinquent payments, increasing and material overdraft activity, request for bulge and/or out- of-formula advances may be an indicator of inadequate working capital and may suggest a lower rating. |
• | Failure of the intended repayment source to materialize as expected, or renewal of a loan (other than cash/marketable security secured or lines of credit) without reduction are possible indicators of a watch or worse risk rating. |
• | Performance is poor or significantly less than expected. There may be a temporary debt-servicing deficiency or inadequate working capital as evidenced by a cash cushion deficiency, but not to the extent that repayment is compromised. Material violation of financial covenants is common. |
• | Loans with unresolved material issues that significantly cloud the debt service outlook, even though a debt servicing deficiency does not currently exist. |
• | Modest underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt as structured. Depth of support for interest carry provided by owner/guarantors may mitigate and provide for improved rating. |
• | This rating may be assigned when a loan officer is unable to supervise the credit properly, an inadequate loan agreement, an inability to control collateral, failure to obtain proper documentation, or any other deviation from prudent lending practices. |
• | Unlike a substandard credit, there should be a reasonable expectation that these temporary issues will be corrected within the normal course of business, rather than liquidation of assets, and in a reasonable period of time. |
• | Cash flow deficiencies or trends are of a magnitude to jeopardize current and future payments with no immediate relief. A loss is not presently expected, however the outlook is sufficiently uncertain to preclude ruling out the possibility. |
• | The borrower has been unable to adjust to prolonged and unfavorable industry or economic trends. |
• | Material underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt and risk is not mitigated by willingness and capacity of owner/guarantor to support interest payments. |
• | Management character or honesty has become suspect. This includes instances where the borrower has become uncooperative. |
• | Due to unprofitable or unsuccessful business operations, some form of restructuring of the business, including liquidation of assets, has become the primary source of loan repayment. Cash flow has deteriorated, or been diverted, to the point that sale of collateral is now the Company’s primary source of repayment (unless this was the original source of repayment). If the collateral is under the Company’s control and is cash or other liquid, highly marketable securities and properly margined, then a more appropriate rating might be special mention or watch. |
• | The borrower is involved in bankruptcy proceedings where collateral liquidation values are expected to fully protect the Company against loss. |
• | There is material, uncorrectable faulty documentation or materially suspect financial information. |
At September 30, 2016 | |||||||||||||||||||
(in thousands) | Pass | Watch | Special mention | Substandard | Total | ||||||||||||||
Consumer loans | |||||||||||||||||||
Single family | $ | 1,152,096 | (1) | $ | 4,073 | $ | 15,307 | $ | 15,000 | $ | 1,186,476 | ||||||||
Home equity and other | 335,966 | 304 | 320 | 1,565 | 338,155 | ||||||||||||||
1,488,062 | 4,377 | 15,627 | 16,565 | 1,524,631 | |||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 744,279 | 55,490 | 4,098 | 6,479 | 810,346 | ||||||||||||||
Multifamily | 542,091 | 19,206 | 862 | 113 | 562,272 | ||||||||||||||
Construction/land development | 640,379 | 15,771 | 4,181 | 1,482 | 661,813 | ||||||||||||||
Commercial business | 179,532 | 43,819 | 4,298 | 9,468 | 237,117 | ||||||||||||||
2,106,281 | 134,286 | 13,439 | 17,542 | 2,271,548 | |||||||||||||||
$ | 3,594,343 | $ | 138,663 | $ | 29,066 | $ | 34,107 | $ | 3,796,179 |
(1) | Includes $20.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
At December 31, 2015 | |||||||||||||||||||
(in thousands) | Pass | Watch | Special mention | Substandard | Total | ||||||||||||||
Consumer loans | |||||||||||||||||||
Single family | $ | 1,165,990 | (1) | $ | 7,933 | $ | 16,439 | $ | 12,818 | $ | 1,203,180 | ||||||||
Home equity and other | 253,912 | 381 | 478 | 1,602 | 256,373 | ||||||||||||||
1,419,902 | 8,314 | 16,917 | 14,420 | 1,459,553 | |||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 535,903 | 55,058 | 7,067 | 2,675 | 600,703 | ||||||||||||||
Multifamily | 403,604 | 20,738 | 1,657 | 558 | 426,557 | ||||||||||||||
Construction/land development | 552,819 | 25,520 | 4,407 | 414 | 583,160 | ||||||||||||||
Commercial business | 120,969 | 30,300 | 1,731 | 1,262 | 154,262 | ||||||||||||||
1,613,295 | 131,616 | 14,862 | 4,909 | 1,764,682 | |||||||||||||||
$ | 3,033,197 | $ | 139,930 | $ | 31,779 | $ | 19,329 | $ | 3,224,235 |
(1) | Includes $21.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
At September 30, 2016 | ||||||||||||||||||||||||||||
(in thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | 90 days or more past due and accruing | |||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||
Single family | $ | 9,108 | $ | 3,727 | $ | 46,385 | $ | 59,220 | $ | 1,127,256 | (1) | $ | 1,186,476 | $ | 32,108 | (2) | ||||||||||||
Home equity and other | 385 | 144 | 1,563 | 2,092 | 336,063 | 338,155 | — | |||||||||||||||||||||
9,493 | 3,871 | 47,948 | 61,312 | 1,463,319 | 1,524,631 | 32,108 | ||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||||
Commercial real estate | — | — | 3,731 | 3,731 | 806,615 | 810,346 | — | |||||||||||||||||||||
Multifamily | — | 354 | 113 | 467 | 561,805 | 562,272 | — | |||||||||||||||||||||
Construction/land development | — | — | 1,376 | 1,376 | 660,437 | 661,813 | — | |||||||||||||||||||||
Commercial business | — | — | 4,861 | 4,861 | 232,256 | 237,117 | — | |||||||||||||||||||||
— | 354 | 10,081 | 10,435 | 2,261,113 | 2,271,548 | — | ||||||||||||||||||||||
$ | 9,493 | $ | 4,225 | $ | 58,029 | $ | 71,747 | $ | 3,724,432 | $ | 3,796,179 | $ | 32,108 |
At December 31, 2015 | ||||||||||||||||||||||||||||
(in thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | 90 days or more past due and accruing | |||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||
Single family | $ | 7,098 | $ | 3,537 | $ | 48,714 | $ | 59,349 | $ | 1,143,831 | (1) | $ | 1,203,180 | $ | 36,595 | (2) | ||||||||||||
Home equity and other | 1,095 | 398 | 1,576 | 3,069 | 253,304 | 256,373 | — | |||||||||||||||||||||
8,193 | 3,935 | 50,290 | 62,418 | 1,397,135 | 1,459,553 | 36,595 | ||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||||
Commercial real estate | 233 | — | 2,341 | 2,574 | 598,129 | 600,703 | — | |||||||||||||||||||||
Multifamily | — | — | 119 | 119 | 426,438 | 426,557 | — | |||||||||||||||||||||
Construction/land development | 77 | — | 339 | 416 | 582,744 | 583,160 | — | |||||||||||||||||||||
Commercial business | — | — | 692 | 692 | 153,570 | 154,262 | 17 | |||||||||||||||||||||
310 | — | 3,491 | 3,801 | 1,760,881 | 1,764,682 | 17 | ||||||||||||||||||||||
$ | 8,503 | $ | 3,935 | $ | 53,781 | $ | 66,219 | $ | 3,158,016 | $ | 3,224,235 | $ | 36,612 |
(1) | Includes $20.5 million and $21.5 million of loans at September 30, 2016 and December 31, 2015, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
(2) | FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. |
At September 30, 2016 | |||||||||||
(in thousands) | Accrual | Nonaccrual | Total | ||||||||
Consumer loans | |||||||||||
Single family | $ | 1,172,199 | (1) | $ | 14,277 | $ | 1,186,476 | ||||
Home equity and other | 336,592 | 1,563 | 338,155 | ||||||||
1,508,791 | 15,840 | 1,524,631 | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 806,615 | 3,731 | 810,346 | ||||||||
Multifamily | 562,159 | 113 | 562,272 | ||||||||
Construction/land development | 660,437 | 1,376 | 661,813 | ||||||||
Commercial business | 232,256 | 4,861 | 237,117 | ||||||||
2,261,467 | 10,081 | 2,271,548 | |||||||||
$ | 3,770,258 | $ | 25,921 | $ | 3,796,179 |
At December 31, 2015 | |||||||||||
(in thousands) | Accrual | Nonaccrual | Total | ||||||||
Consumer loans | |||||||||||
Single family | $ | 1,191,061 | (1) | $ | 12,119 | $ | 1,203,180 | ||||
Home equity and other | 254,797 | 1,576 | 256,373 | ||||||||
1,445,858 | 13,695 | 1,459,553 | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 598,362 | 2,341 | 600,703 | ||||||||
Multifamily | 426,438 | 119 | 426,557 | ||||||||
Construction/land development | 582,821 | 339 | 583,160 | ||||||||
Commercial business | 153,588 | 674 | 154,262 | ||||||||
1,761,209 | 3,473 | 1,764,682 | |||||||||
$ | 3,207,067 | $ | 17,168 | $ | 3,224,235 |
(1) | Includes $20.5 million and $21.5 million of loans at September 30, 2016 and December 31, 2015, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Three Months Ended September 30, 2016 | ||||||||||||
(dollars in thousands) | Concession type | Number of loan modifications | Recorded investment | Related charge- offs | ||||||||
Consumer loans | ||||||||||||
Single family | ||||||||||||
Interest rate reduction | 11 | $ | 2,492 | $ | — | |||||||
Payment restructure | 12 | 2,773 | — | |||||||||
Home equity and other | ||||||||||||
Interest rate reduction | 1 | 100 | — | |||||||||
Total consumer | ||||||||||||
Interest rate reduction | 12 | 2,592 | — | |||||||||
Payment restructure | 12 | 2,773 | — | |||||||||
24 | 5,365 | — | ||||||||||
Total loans | ||||||||||||
Interest rate reduction | 12 | 2,592 | — | |||||||||
Payment restructure | 12 | 2,773 | — | |||||||||
24 | $ | 5,365 | $ | — |
Three Months Ended September 30, 2015 | ||||||||||||
(dollars in thousands) | Concession type | Number of loan modifications | Recorded investment | Related charge- offs | ||||||||
Consumer loans | ||||||||||||
Single family | ||||||||||||
Interest rate reduction | 11 | $ | 1,722 | $ | — | |||||||
Total consumer | ||||||||||||
Interest rate reduction | 11 | 1,722 | — | |||||||||
11 | 1,722 | — | ||||||||||
Total loans | ||||||||||||
Interest rate reduction | 11 | 1,722 | — | |||||||||
11 | $ | 1,722 | $ | — |
Nine Months Ended September 30, 2016 | ||||||||||||
(dollars in thousands) | Concession type | Number of loan modifications | Recorded investment | Related charge- offs | ||||||||
Consumer loans | ||||||||||||
Single family | ||||||||||||
Interest rate reduction | 29 | $ | 5,881 | $ | — | |||||||
Payment restructure | 46 | 9,691 | — | |||||||||
Home equity and other | ||||||||||||
Interest rate reduction | 2 | 113 | — | |||||||||
Total consumer | ||||||||||||
Interest rate reduction | 31 | 5,994 | — | |||||||||
Payment restructure | 46 | 9,691 | — | |||||||||
77 | 15,685 | — | ||||||||||
Total loans | ||||||||||||
Interest rate reduction | 31 | 5,994 | — | |||||||||
Payment restructure | 46 | 9,691 | — | |||||||||
77 | $ | 15,685 | $ | — |
Nine Months Ended September 30, 2015 | ||||||||||||
(dollars in thousands) | Concession type | Number of loan modifications | Recorded investment | Related charge- offs | ||||||||
Consumer loans | ||||||||||||
Single family | ||||||||||||
Interest rate reduction | 39 | $ | 8,514 | $ | — | |||||||
Home equity and other | ||||||||||||
Interest rate reduction | 1 | 37 | — | |||||||||
Total consumer | ||||||||||||
Interest rate reduction | 40 | 8,551 | — | |||||||||
Commercial loans | ||||||||||||
Commercial business | ||||||||||||
Interest rate reduction | 2 | 482 | — | |||||||||
Total commercial | ||||||||||||
Interest rate reduction | 2 | 482 | — | |||||||||
2 | 482 | — | ||||||||||
Total loans | ||||||||||||
Interest rate reduction | 42 | 9,033 | — | |||||||||
42 | $ | 9,033 | $ | — |
Three Months Ended September 30, | |||||||||||||
2016 | 2015 | ||||||||||||
(dollars in thousands) | Number of loan relationships that re-defaulted | Recorded investment | Number of loan relationships that re-defaulted | Recorded investment | |||||||||
Consumer loans | |||||||||||||
Single family | 7 | $ | 1,173 | 3 | $ | 552 | |||||||
Home equity and other | — | — | 1 | 68 | |||||||||
7 | $ | 1,173 | 4 | $ | 620 |
Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | ||||||||||||
(dollars in thousands) | Number of loan relationships that re-defaulted | Recorded investment | Number of loan relationships that re-defaulted | Recorded investment | |||||||||
Consumer loans | |||||||||||||
Single family | 16 | $ | 3,811 | 10 | $ | 2,270 | |||||||
Home equity and other | 1 | 93 | 1 | 68 | |||||||||
17 | $ | 3,904 | 11 | $ | 2,338 |
(in thousands) | At September 30, 2016 | At December 31, 2015 | |||||
Noninterest-bearing accounts | $ | 1,088,508 | $ | 643,028 | |||
NOW accounts, 0.00% to 1.00% at September 30, 2016 and December 31, 2015 | 501,370 | 408,477 | |||||
Statement savings accounts, due on demand, 0.00% to 1.13% at September 30, 2016 and 0.00% to 1.00% at December 31, 2015 | 303,872 | 292,092 | |||||
Money market accounts, due on demand, 0.00% to 1.50% at September 30, 2016 and 0.00% to 1.45% at December 31, 2015 | 1,513,547 | 1,155,464 | |||||
Certificates of deposit, 0.05% to 3.80% at September 30, 2016 and 0.05% to 3.80% at December 31, 2015 | 1,097,263 | 732,892 | |||||
$ | 4,504,560 | $ | 3,231,953 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
NOW accounts | $ | 484 | $ | 495 | $ | 1,465 | $ | 1,283 | |||||||
Statement savings accounts | 262 | 257 | 771 | 778 | |||||||||||
Money market accounts | 2,084 | 1,272 | 5,057 | 3,655 | |||||||||||
Certificates of deposit | 2,532 | 1,045 | 6,087 | 2,940 | |||||||||||
$ | 5,362 | $ | 3,069 | $ | 13,380 | $ | 8,656 |
(in thousands) | At September 30, 2016 | ||
Within one year | $ | 742,312 | |
One to two years | 280,983 | ||
Two to three years | 38,740 | ||
Three to four years | 19,786 | ||
Four to five years | 14,129 | ||
Thereafter | 1,313 | ||
$ | 1,097,263 |
HomeStreet Statutory | |||||||
(in thousands) | I | II | III | IV | |||
Date issued | June 2005 | September 2005 | February 2006 | March 2007 | |||
Amount | $5,155 | $20,619 | $20,619 | $15,464 | |||
Interest rate | 3 MO LIBOR + 1.70% | 3 MO LIBOR + 1.50% | 3 MO LIBOR + 1.37% | 3 MO LIBOR + 1.68% | |||
Maturity date | June 2035 | December 2035 | March 2036 | June 2037 | |||
Call option(1) | 5 years | 5 years | 5 years | 5 years |
At September 30, 2016 | |||||||||||
Notional amount | Fair value derivatives | ||||||||||
(in thousands) | Asset | Liability | |||||||||
Forward sale commitments | $ | 3,902,372 | $ | 3,612 | $ | (11,681 | ) | ||||
Interest rate swaptions | 120,000 | 57 | — | ||||||||
Interest rate lock and purchase loan commitments | 1,334,615 | 45,403 | (43 | ) | |||||||
Interest rate swaps | 2,134,050 | 43,500 | (13,667 | ) | |||||||
Total derivatives before netting | $ | 7,491,037 | 92,572 | (25,391 | ) | ||||||
Netting adjustment/Cash collateral (1) | 10,991 | 23,799 | |||||||||
Carrying value on consolidated statements of financial condition | $ | 103,563 | $ | (1,592 | ) |
At December 31, 2015 | |||||||||||
Notional amount | Fair value derivatives | ||||||||||
(in thousands) | Asset | Liability | |||||||||
Forward sale commitments | $ | 1,069,102 | $ | 1,885 | $ | (1,496 | ) | ||||
Interest rate lock and purchase loan commitments | 594,360 | 17,719 | (8 | ) | |||||||
Interest rate swaps | 1,109,350 | 8,670 | (4,007 | ) | |||||||
Total derivatives before netting | $ | 2,772,812 | 28,274 | (5,511 | ) | ||||||
Netting adjustment/Cash collateral (1) | 8,971 | 5,411 | |||||||||
Carrying value on consolidated statements of financial condition | $ | 37,245 | $ | (100 | ) |
(1) | Includes cash collateral of $34.8 million and $14.4 million at September 30, 2016 and December 31, 2015 respectively, as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. |
At September 30, 2016 | |||||||||||||||||||
(in thousands) | Gross fair value | Netting adjustments/ Cash collateral(1) | Carrying value | Securities not offset in consolidated balance sheet (disclosure-only netting) | Net amount | ||||||||||||||
Derivative assets | $ | 92,572 | $ | 10,991 | $ | 103,563 | $ | — | $ | 103,563 | |||||||||
Derivative liabilities | $ | (25,391 | ) | $ | 23,799 | $ | (1,592 | ) | $ | 2 | $ | (1,590 | ) |
At December 31, 2015 | |||||||||||||||||||
(in thousands) | Gross fair value | Netting adjustments/ Cash collateral(1) | Carrying value | Securities not offset in consolidated balance sheet (disclosure-only netting) | Net amount | ||||||||||||||
Derivative assets | $ | 28,274 | $ | 8,971 | $ | 37,245 | $ | — | $ | 37,245 | |||||||||
Derivative liabilities | $ | (5,511 | ) | $ | 5,411 | $ | (100 | ) | $ | 5 | $ | (95 | ) |
(1) | Includes cash collateral of $34.8 million and $14.4 million at September 30, 2016 and December 31, 2015 respectively, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Recognized in noninterest income: | |||||||||||||||
Net gain (loss) on mortgage loan origination and sale activities (1) | $ | (3,675 | ) | $ | (17,135 | ) | $ | (4,006 | ) | $ | 5,116 | ||||
Mortgage servicing income (2) | 3,162 | 22,017 | 57,110 | 17,030 | |||||||||||
Other (3) | 2,087 | — | 735 | — | |||||||||||
$ | 1,574 | $ | 4,882 | $ | 53,839 | $ | 22,146 |
(1) | Comprised of interest rate lock commitments ("IRLCs") and forward contracts used as an economic hedge of IRLCs and single family mortgage loans held for sale. |
(2) | Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs. |
(3) | Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of fair value option loans held for investment. |
(in thousands) | At September 30, 2016 | At December 31, 2015 | |||||
Single family | $ | 834,144 | $ | 632,273 | |||
Multifamily DUS® (1) | 26,429 | 11,076 | |||||
Other (2) | 32,940 | 6,814 | |||||
Total loans held for sale | $ | 893,513 | $ | 650,163 |
(1) | Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS"®) is a registered trademark of Fannie Mae. |
(2) | Includes multifamily loans originated from sources other than DUS. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Single family | $ | 2,489,415 | $ | 1,965,223 | $ | 6,134,390 | $ | 5,176,569 | |||||||
Multifamily DUS | 58,484 | 42,333 | 215,848 | 140,965 | |||||||||||
Other (1) | 50,255 | — | 82,068 | — | |||||||||||
Total loans sold | $ | 2,598,154 | $ | 2,007,556 | $ | 6,432,306 | $ | 5,317,534 |
(1) | Includes multifamily loans originated from sources other than DUS. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Single family: | |||||||||||||||
Servicing value and secondary market gains(1) | $ | 79,946 | $ | 49,613 | $ | 207,758 | $ | 167,786 | |||||||
Loan origination and funding fees | 8,931 | 6,362 | 21,614 | 16,452 | |||||||||||
Total single family | 88,877 | 55,975 | 229,372 | 184,238 | |||||||||||
Multifamily DUS | 2,695 | 1,488 | 7,879 | 4,741 | |||||||||||
Other (2) | 1,028 | 422 | 2,242 | 767 | |||||||||||
Total gain on mortgage loan origination and sale activities | $ | 92,600 | $ | 57,885 | $ | 239,493 | $ | 189,746 |
(1) | Comprised of gains and losses on interest rate lock and purchase loan commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold. |
(2) | Includes multifamily loans originated from sources other than DUS. |
(in thousands) | At September 30, 2016 | At December 31, 2015 | |||||
Single family | |||||||
U.S. government and agency | $ | 17,593,901 | $ | 14,628,596 | |||
Other | 605,139 | 719,215 | |||||
18,199,040 | 15,347,811 | ||||||
Commercial | |||||||
Multifamily DUS | 1,055,181 | 924,367 | |||||
Other | 67,348 | 79,513 | |||||
1,122,529 | 1,003,880 | ||||||
Total loans serviced for others | $ | 19,321,569 | $ | 16,351,691 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Balance, beginning of period | $ | 3,379 | $ | 2,480 | $ | 2,922 | $ | 1,956 | |||||||
Additions (1) | 495 | 883 | 1,407 | 2,052 | |||||||||||
Realized losses (2) | (251 | ) | (128 | ) | (706 | ) | (773 | ) | |||||||
Balance, end of period | $ | 3,623 | $ | 3,235 | $ | 3,623 | $ | 3,235 |
(1) | Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. |
(2) | Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expense. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Servicing income, net: | |||||||||||||||
Servicing fees and other | $ | 16,053 | $ | 11,136 | $ | 41,985 | $ | 30,256 | |||||||
Changes in fair value of single family MSRs due to modeled amortization (1) | (8,925 | ) | (8,478 | ) | (23,940 | ) | (26,725 | ) | |||||||
Amortization of multifamily MSRs | (661 | ) | (511 | ) | (1,946 | ) | (1,441 | ) | |||||||
6,467 | 2,147 | 16,099 | 2,090 | ||||||||||||
Risk management, single family MSRs: | |||||||||||||||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) | 4,915 | (19,396 | ) | (37,354 | ) | (8,224 | ) | ||||||||
Net gain from derivatives economically hedging MSR | 3,162 | 22,017 | 57,110 | 17,030 | |||||||||||
8,077 | 2,621 | 19,756 | 8,806 | ||||||||||||
Mortgage servicing income | $ | 14,544 | $ | 4,768 | $ | 35,855 | $ | 10,896 |
(1) | Represents changes due to collection/realization of expected cash flows and curtailments. |
(2) | Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
(rates per annum) (1) | 2016 | 2015 | 2016 | 2015 | |||||||
Constant prepayment rate ("CPR") (2) | 14.77 | % | 14.96 | % | 15.67 | % | 14.71 | % | |||
Discount rate (3) | 10.19 | % | 10.34 | % | 10.34 | % | 10.31 | % |
(1) | Weighted average rates for sales during the period for sales of loans with similar characteristics. |
(2) | Represents the expected lifetime average. |
(3) | Discount rate is a rate based on market observations. |
(dollars in thousands) | At September 30, 2016 | ||
Fair value of single family MSR | $ | 149,910 | |
Expected weighted-average life (in years) | 4.13 | ||
Constant prepayment rate (1) | 20.36 | % | |
Impact on 25 basis points adverse change | $ | (19,011 | ) |
Impact on 50 basis points adverse change | $ | (37,011 | ) |
Discount rate | 10.40 | % | |
Impact on fair value of 100 basis points increase | $ | (4,121 | ) |
Impact on fair value of 200 basis points increase | $ | (8,014 | ) |
(1) | Represents the expected lifetime average. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Beginning balance | $ | 130,900 | $ | 140,588 | $ | 156,604 | $ | 112,439 | |||||||
Additions and amortization: | |||||||||||||||
Originations | 23,020 | 19,984 | 54,600 | 55,202 | |||||||||||
Purchases | — | 3 | — | 9 | |||||||||||
Changes due to modeled amortization(1) | (8,925 | ) | (8,478 | ) | (23,940 | ) | (26,725 | ) | |||||||
Net additions and amortization | 14,095 | 11,509 | 30,660 | 28,486 | |||||||||||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) | 4,915 | (19,396 | ) | (37,354 | ) | (8,224 | ) | ||||||||
Ending balance | $ | 149,910 | $ | 132,701 | $ | 149,910 | $ | 132,701 |
(1) | Represents changes due to collection/realization of expected cash flows and curtailments. |
(2) | Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Beginning balance | $ | 16,366 | $ | 12,649 | $ | 14,651 | $ | 10,885 | |||||||
Origination | 1,886 | 1,241 | 4,886 | 3,935 | |||||||||||
Amortization | (661 | ) | (511 | ) | (1,946 | ) | (1,441 | ) | |||||||
Ending balance | $ | 17,591 | $ | 13,379 | $ | 17,591 | $ | 13,379 |
(in thousands) | At September 30, 2016 | ||
Remainder of 2016 | $ | 649 | |
2017 | 2,494 | ||
2018 | 2,360 | ||
2019 | 2,252 | ||
2020 | 2,168 | ||
2021 and thereafter | 7,668 | ||
Carrying value of multifamily MSR | $ | 17,591 |
Asset/Liability class | Valuation methodology, inputs and assumptions | Classification | ||
Cash and cash equivalents | Carrying value is a reasonable estimate of fair value based on the short-term nature of the instruments. | Estimated fair value classified as Level 1. | ||
Investment securities | ||||
Investment securities available for sale | Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments | Level 2 recurring fair value measurement | ||
Investment securities held to maturity | Observable market prices of identical or similar securities are used where available. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments | Carried at amortized cost. Estimated fair value classified as Level 2. | ||
Loans held for sale | ||||
Single family loans, excluding loans transferred from held for investment | Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments | Level 2 recurring fair value measurement | ||
When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments | Estimated fair value classified as Level 3. | |||
Loans originated as held for investment and transferred to held for sale | Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments | Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 3. | ||
Multifamily loans (DUS) and other | The sale price is set at the time the loan commitment is made, and as such subsequent changes in market conditions have a very limited effect, if any, on the value of these loans carried on the consolidated statements of financial condition, which are typically sold within 30 days of origination. | Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 2. |
Asset/Liability class | Valuation methodology, inputs and assumptions | Classification | ||
Loans held for investment | ||||
Loans held for investment, excluding collateral dependent loans and loans transferred from held for sale | Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments | For the carrying value of loans see Note 1–Summary of Significant Accounting Policies of the 2015 Annual Report on Form 10-K. Estimated fair value classified as Level 3. | ||
Loans held for investment, collateral dependent | Fair value is based on appraised value of collateral, which considers sales comparison and income approach methodologies. Adjustments are made for various factors, which may include: • Adjustments for variations in specific property qualities such as location, physical dissimilarities, market conditions at the time of sale, income producing characteristics and other factors • Adjustments to obtain “upon completion” and “upon stabilization” values (e.g., property hold discounts where the highest and best use would require development of a property over time) • Bulk discounts applied for sales costs, holding costs and profit for tract development and certain other properties | Carried at lower of amortized cost or fair value of collateral, less the estimated cost to sell. Classified as a Level 3 nonrecurring fair value measurement in periods where carrying value is adjusted to reflect the fair value of collateral. | ||
Loans held for investment transferred from loans held for sale | Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments | Level 3 recurring fair value measurement | ||
Mortgage servicing rights | ||||
Single family MSRs | For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 8, Mortgage Banking Operations. | Level 3 recurring fair value measurement | ||
Multifamily MSRs and other | Fair value is based on discounted estimated future servicing fees and other revenue, less estimated costs to service the loans. | Carried at lower of amortized cost or fair value Estimated fair value classified as Level 3. | ||
Derivatives | ||||
Interest rate swaps Interest rate swaptions Forward sale commitments | Fair value is based on quoted prices for identical or similar instruments, when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs including: • Forward interest rates • Interest rate volatilities | Level 2 recurring fair value measurement | ||
Interest rate lock and purchase loan commitments | The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor | Level 3 recurring fair value measurement |
Asset/Liability class | Valuation methodology, inputs and assumptions | Classification | ||
Other real estate owned (“OREO”) | Fair value is based on appraised value of collateral, less the estimated cost to sell. See discussion of "loans held for investment, collateral dependent" above for further information on appraisals. | Carried at lower of amortized cost or fair value of collateral (Level 3), less the estimated cost to sell. | ||
Federal Home Loan Bank stock | Carrying value approximates fair value as FHLB stock can only be purchased or redeemed at par value. | Carried at par value. Estimated fair value classified as Level 2. | ||
Deposits | ||||
Demand deposits | Fair value is estimated as the amount payable on demand at the reporting date. | Carried at historical cost. Estimated fair value classified as Level 2. | ||
Fixed-maturity certificates of deposit | Fair value is estimated using discounted cash flows based on market rates currently offered for deposits of similar remaining time to maturity. | Carried at historical cost. Estimated fair value classified as Level 2. | ||
Federal Home Loan Bank advances | Fair value is estimated using discounted cash flows based on rates currently available for advances with similar terms and remaining time to maturity. | Carried at historical cost. Estimated fair value classified as Level 2. | ||
Long-term debt | Fair value is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. | Carried at historical cost. Estimated fair value classified as Level 2. |
(in thousands) | Fair Value at September 30, 2016 | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||||
Investment securities available for sale | |||||||||||||||
Mortgage backed securities: | |||||||||||||||
Residential | $ | 152,236 | $ | — | $ | 152,236 | $ | — | |||||||
Commercial | 27,208 | — | 27,208 | — | |||||||||||
Municipal bonds | 355,344 | — | 355,344 | — | |||||||||||
Collateralized mortgage obligations: | |||||||||||||||
Residential | 182,833 | — | 182,833 | — | |||||||||||
Commercial | 120,259 | — | 120,259 | — | |||||||||||
Corporate debt securities | 85,191 | — | 85,191 | — | |||||||||||
U.S. Treasury securities | 26,004 | — | 26,004 | — | |||||||||||
Single family mortgage servicing rights | 149,910 | — | — | 149,910 | |||||||||||
Single family loans held for sale | 834,144 | — | 789,844 | 44,300 | |||||||||||
Single family loans held for investment | 20,547 | — | — | 20,547 | |||||||||||
Derivatives | |||||||||||||||
Forward sale commitments | 3,612 | — | 3,612 | — | |||||||||||
Interest rate swaptions | 57 | — | 57 | — | |||||||||||
Interest rate lock and purchase loan commitments | 45,403 | — | — | 45,403 | |||||||||||
Interest rate swaps | 43,500 | — | 43,500 | — | |||||||||||
Total assets | $ | 2,046,248 | $ | — | $ | 1,786,088 | $ | 260,160 | |||||||
Liabilities: | |||||||||||||||
Derivatives | |||||||||||||||
Forward sale commitments | $ | 11,681 | $ | — | $ | 11,681 | $ | — | |||||||
Interest rate lock and purchase loan commitments | 43 | — | — | 43 | |||||||||||
Interest rate swaps | 13,667 | — | 13,667 | — | |||||||||||
Total liabilities | $ | 25,391 | $ | — | $ | 25,348 | $ | 43 |
(in thousands) | Fair Value at December 31, 2015 | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||||
Investment securities available for sale | |||||||||||||||
Mortgage backed securities: | |||||||||||||||
Residential | $ | 68,101 | $ | — | $ | 68,101 | $ | — | |||||||
Commercial | 17,851 | — | 17,851 | — | |||||||||||
Municipal bonds | 171,869 | — | 171,869 | — | |||||||||||
Collateralized mortgage obligations: | |||||||||||||||
Residential | 84,497 | — | 84,497 | — | |||||||||||
Commercial | 79,133 | — | 79,133 | — | |||||||||||
Corporate debt securities | 78,736 | — | 78,736 | — | |||||||||||
U.S. Treasury securities | 40,964 | — | 40,964 | — | |||||||||||
Single family mortgage servicing rights | 156,604 | — | — | 156,604 | |||||||||||
Single family loans held for sale | 632,273 | — | 582,951 | 49,322 | |||||||||||
Single family loans held for investment | 21,544 | — | — | 21,544 | |||||||||||
Derivatives | |||||||||||||||
Forward sale commitments | 1,884 | — | 1,884 | — | |||||||||||
Interest rate lock and purchase loan commitments | 17,719 | — | — | 17,719 | |||||||||||
Interest rate swaps | 8,670 | — | 8,670 | — | |||||||||||
Total assets | $ | 1,379,845 | $ | — | $ | 1,134,656 | $ | 245,189 | |||||||
Liabilities: | |||||||||||||||
Derivatives | |||||||||||||||
Forward sale commitments | $ | 1,496 | $ | — | $ | 1,496 | $ | — | |||||||
Interest rate lock and purchase loan commitments | 8 | — | — | 8 | |||||||||||
Interest rate swaps | 4,007 | — | 4,007 | — | |||||||||||
Total liabilities | $ | 5,511 | $ | — | $ | 5,503 | $ | 8 |
(dollars in thousands) | At September 30, 2016 | ||||||||||||
Fair Value | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | ||||||||
Loans held for investment, fair value option | $ | 20,547 | Income approach | Implied spread to benchmark interest rate curve | 4.22% | 6.33% | 5.12% |
(dollars in thousands) | At December 31, 2015 | ||||||||||||
Fair Value | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | ||||||||
Loans held for investment, fair value option | $ | 21,544 | Income approach | Implied spread to benchmark interest rate curve | 3.26% | 4.35% | 4.01% |
(dollars in thousands) | At September 30, 2016 | ||||||||||||
Fair Value | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | ||||||||
Loans held for sale, fair value option | $ | 44,300 | Income approach | Implied spread to benchmark interest rate curve | 3.82% | 5.00% | 4.70% | ||||||
Market price movement from comparable bond | 0.00% | 0.52% | 0.47% |
(dollars in thousands) | At December 31, 2015 | ||||||||||||
Fair Value | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | ||||||||
Loans held for sale, fair value option | $ | 49,322 | Income approach | Implied spread to benchmark interest rate curve | 2.68% | 7.62% | 3.91% | ||||||
Market price movement from comparable bond | (0.43)% | (0.06)% | (0.27)% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Beginning balance, net | $ | 39,991 | $ | 23,487 | $ | 17,711 | $ | 11,933 | |||||||
Total realized/unrealized gains | 56,752 | 43,784 | 160,047 | 131,930 | |||||||||||
Settlements | (51,383 | ) | (41,062 | ) | (132,398 | ) | (117,654 | ) | |||||||
Ending balance, net | $ | 45,360 | $ | 26,209 | $ | 45,360 | $ | 26,209 |
(dollars in thousands) | At September 30, 2016 | ||||||||||||
Fair Value | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | ||||||||
Interest rate lock and purchase loan commitments, net | $ | 45,360 | Income approach | Fall-out factor | 0.00% | 61.84% | 12.79% | ||||||
Value of servicing | 0.55% | 1.75% | 0.96% |
(dollars in thousands) | At December 31, 2015 | ||||||||||||
Fair Value | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | ||||||||
Interest rate lock and purchase loan commitments, net | $ | 17,711 | Income approach | Fall-out factor | 0.60% | 61.16% | 15.80% | ||||||
Value of servicing | 0.53% | 1.71% | 0.80% |
At or for the Three Months Ended September 30, 2016 | |||||||||||||||||||
(in thousands) | Fair Value of Assets Held at September 30, 2016 | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | ||||||||||||||
Loans held for investment(1) | $ | 10,570 | $ | — | $ | — | $ | 10,570 | $ | (750 | ) | ||||||||
Other real estate owned(2) | 5,755 | — | — | 5,755 | (1,160 | ) | |||||||||||||
Total | $ | 16,325 | $ | — | $ | — | $ | 16,325 | $ | (1,910 | ) |
At or for the Three Months Ended September 30, 2015 | |||||||||||||||||||
(in thousands) | Fair Value of Assets Held at September 30, 2015 | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | ||||||||||||||
Loans held for investment(1) | $ | 9,171 | $ | — | $ | — | $ | 9,171 | $ | (375 | ) | ||||||||
Other real estate owned(2) | 6,532 | — | — | 6,532 | (399 | ) | |||||||||||||
Total | $ | 15,703 | $ | — | $ | — | $ | 15,703 | $ | (774 | ) |
At or for the Nine Months Ended September 30, 2016 | |||||||||||||||||||
(in thousands) | Fair Value of Assets Held at September 30, 2016 | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | ||||||||||||||
Loans held for investment(1) | $ | 10,570 | $ | — | $ | — | $ | 10,570 | $ | (827 | ) | ||||||||
Other real estate owned(2) | 5,755 | — | — | 5,755 | (1,551 | ) | |||||||||||||
Total | $ | 16,325 | $ | — | $ | — | $ | 16,325 | $ | (2,378 | ) |
At or for the Nine Months Ended September 30, 2015 | |||||||||||||||||||
(in thousands) | Fair Value of Assets Held at September 30, 2015 | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | ||||||||||||||
Loans held for investment(1) | $ | 9,171 | $ | — | $ | — | $ | 9,171 | $ | (287 | ) | ||||||||
Other real estate owned(2) | 6,532 | — | — | 6,532 | (399 | ) | |||||||||||||
Total | $ | 15,703 | $ | — | $ | — | $ | 15,703 | $ | (686 | ) |
(1) | Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. |
(2) | Represents other real estate owned where an updated fair value of collateral is used to adjust the carrying amount subsequent to the initial classification as other real estate owned. |
At September 30, 2016 | |||||||||||||||||||
(in thousands) | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 55,998 | $ | 55,998 | $ | 55,998 | $ | — | $ | — | |||||||||
Investment securities held to maturity | 42,250 | 43,364 | — | 43,364 | — | ||||||||||||||
Loans held for investment | 3,743,631 | 3,835,362 | — | — | 3,835,362 | ||||||||||||||
Loans held for sale – transferred from held for investment | 26,514 | 26,514 | — | — | 26,514 | ||||||||||||||
Loans held for sale – multifamily and other | 32,855 | 32,855 | — | 32,855 | — | ||||||||||||||
Mortgage servicing rights – multifamily | 17,591 | 19,393 | — | — | 19,393 | ||||||||||||||
Federal Home Loan Bank stock | 39,783 | 39,783 | — | 39,783 | — | ||||||||||||||
Liabilities: | |||||||||||||||||||
Deposits | $ | 4,504,560 | $ | 4,488,239 | $ | — | $ | 4,488,239 | $ | — | |||||||||
Federal Home Loan Bank advances | 858,923 | 862,420 | — | 862,420 | — | ||||||||||||||
Long-term debt | 125,122 | 125,859 | — | 125,859 | — |
At December 31, 2015 | |||||||||||||||||||
(in thousands) | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 32,684 | $ | 32,684 | $ | 32,684 | $ | — | $ | — | |||||||||
Investment securities held to maturity | 31,013 | 31,387 | — | 31,387 | — | ||||||||||||||
Loans held for investment | 3,171,176 | 3,255,740 | — | — | 3,255,740 | ||||||||||||||
Loans held for sale – transferred from held for investment | 6,814 | 6,814 | — | — | 6,814 | ||||||||||||||
Loans held for sale – multifamily | 11,076 | 11,076 | — | 11,076 | — | ||||||||||||||
Mortgage servicing rights – multifamily | 14,651 | 16,412 | — | — | 16,412 | ||||||||||||||
Federal Home Loan Bank stock | 44,342 | 44,342 | — | 44,342 | — | ||||||||||||||
Liabilities: | |||||||||||||||||||
Deposits | $ | 3,231,953 | $ | 3,229,670 | $ | — | $ | 3,229,670 | $ | — | |||||||||
Federal Home Loan Bank advances | 1,018,159 | 1,021,344 | — | 1,021,344 | — | ||||||||||||||
Long-term debt | 61,857 | 60,239 | — | 60,239 | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except share and per share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income | $ | 27,701 | $ | 9,961 | $ | 55,857 | $ | 32,641 | |||||||
Weighted average shares: | |||||||||||||||
Basic weighted-average number of common shares outstanding | 24,811,169 | 22,035,317 | 24,398,683 | 20,407,386 | |||||||||||
Dilutive effect of outstanding common stock equivalents (1) | 185,578 | 256,493 | 196,665 | 239,154 | |||||||||||
Diluted weighted-average number of common stock outstanding | 24,996,747 | 22,291,810 | 24,595,348 | 20,646,540 | |||||||||||
Earnings per share: | |||||||||||||||
Basic earnings per share | $ | 1.12 | $ | 0.45 | $ | 2.29 | $ | 1.60 | |||||||
Diluted earnings per share | $ | 1.11 | $ | 0.45 | $ | 2.27 | $ | 1.58 |
(1) | Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the three and nine months ended September 30, 2016 and 2015 were certain stock options and unvested restricted stock issued to key senior management personnel and directors of the Company. The aggregate number of common stock equivalents related to such options and unvested restricted shares, which could potentially be dilutive in future periods, was zero at September 30, 2016 and 2015, respectively. |
Three Months Ended September 30, 2016 | |||||||||||
(in thousands) | Mortgage Banking | Commercial and Consumer Banking | Total | ||||||||
Condensed income statement: | |||||||||||
Net interest income (1) | $ | 7,463 | $ | 39,339 | $ | 46,802 | |||||
Provision for credit losses | — | 1,250 | 1,250 | ||||||||
Noninterest income | 101,974 | 9,771 | 111,745 | ||||||||
Noninterest expense | 82,229 | 32,170 | 114,399 | ||||||||
Income before income taxes | 27,208 | 15,690 | 42,898 | ||||||||
Income tax expense | 9,640 | 5,557 | 15,197 | ||||||||
Net income | $ | 17,568 | $ | 10,133 | $ | 27,701 | |||||
Total assets | $ | 1,103,899 | $ | 5,122,702 | $ | 6,226,601 |
Three Months Ended September 30, 2015 | |||||||||||
(in thousands) | Mortgage Banking | Commercial and Consumer Banking | Total | ||||||||
Condensed income statement: | |||||||||||
Net interest income (1) | $ | 8,125 | $ | 31,509 | $ | 39,634 | |||||
Provision for credit losses | — | 700 | 700 | ||||||||
Noninterest income | 60,584 | 6,884 | 67,468 | ||||||||
Noninterest expense | 63,916 | 28,110 | 92,026 | ||||||||
Income before income taxes | 4,793 | 9,583 | 14,376 | ||||||||
Income tax expense | 1,632 | 2,783 | 4,415 | ||||||||
Net income | $ | 3,161 | $ | 6,800 | $ | 9,961 | |||||
Total assets | $ | 1,089,832 | $ | 3,885,821 | $ | 4,975,653 |
Nine Months Ended September 30, 2016 | |||||||||||
(in thousands) | Mortgage Banking | Commercial and Consumer Banking | Total | ||||||||
Condensed income statement: | |||||||||||
Net interest income (1) | $ | 18,597 | $ | 113,378 | $ | 131,975 | |||||
Provision for credit losses | — | 3,750 | 3,750 | ||||||||
Noninterest income | 263,334 | 22,595 | 285,929 | ||||||||
Noninterest expense | 223,880 | 102,903 | 326,783 | ||||||||
Income before income taxes | 58,051 | 29,320 | 87,371 | ||||||||
Income tax expense | 20,948 | 10,566 | 31,514 | ||||||||
Net income | $ | 37,103 | $ | 18,754 | $ | 55,857 | |||||
Total assets | $ | 1,103,899 | $ | 5,122,702 | $ | 6,226,601 |
Nine Months Ended September 30, 2015 | |||||||||||
(in thousands) | Mortgage Banking | Commercial and Consumer Banking | Total | ||||||||
Condensed income statement: | |||||||||||
Net interest income (1) | $ | 21,337 | $ | 87,261 | $ | 108,598 | |||||
Provision for credit losses | — | 4,200 | 4,200 | ||||||||
Noninterest income | 195,239 | 20,589 | 215,828 | ||||||||
Noninterest expense | 180,787 | 93,056 | 273,843 | ||||||||
Income before income taxes | 35,789 | 10,594 | 46,383 | ||||||||
Income tax expense | 12,788 | 954 | 13,742 | ||||||||
Net income | $ | 23,001 | $ | 9,640 | $ | 32,641 | |||||
Total assets | $ | 1,089,832 | $ | 3,885,821 | $ | 4,975,653 |
(1) | Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Beginning balance | $ | 9,748 | $ | (582 | ) | $ | (2,449 | ) | $ | 1,546 | ||||||
Other comprehensive income (loss) before reclassifications | (1,786 | ) | 2,926 | 10,474 | 798 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (31 | ) | (651 | ) | (94 | ) | (651 | ) | ||||||||
Net current-period other comprehensive income (loss) | (1,817 | ) | 2,275 | 10,380 | 147 | |||||||||||
Ending balance | $ | 7,931 | $ | 1,693 | $ | 7,931 | $ | 1,693 |
Affected Line Item in the Consolidated Statements of Operations | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Gain on sale of investment securities available for sale | $ | 48 | $ | 1,002 | $ | 145 | $ | 1,002 | ||||||||
Income tax expense | 17 | 351 | 51 | 351 | ||||||||||||
Total, net of tax | $ | 31 | $ | 651 | $ | 94 | $ | 651 |
ITEM 2 | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | any projections of revenues, estimated operating expenses or other financial items; |
• | any statements of the plans and objectives of management for future operations or programs; |
• | any statements regarding future operations, plans, or regulatory or shareholder approvals; |
• | any statements concerning proposed new products or services; |
• | any statements about the expected or estimated performance of our loan portfolio |
• | any statements regarding pending or future mergers, acquisitions or other transactions; and |
• | any statement regarding future economic conditions or performance, and any statement of assumption underlying any of the foregoing. |
At or for the Three Months Ended | At or for the Nine Months Ended | ||||||||||||||||||||||||||
(dollars in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | ||||||||||||||||||||
Income statement data (for the period ended): | |||||||||||||||||||||||||||
Net interest income | $ | 46,802 | $ | 44,482 | $ | 40,691 | $ | 39,740 | $ | 39,634 | $ | 131,975 | $ | 108,598 | |||||||||||||
Provision for credit losses | 1,250 | 1,100 | 1,400 | 1,900 | 700 | 3,750 | 4,200 | ||||||||||||||||||||
Noninterest income | 111,745 | 102,476 | 71,708 | 65,409 | 67,468 | 285,929 | 215,828 | ||||||||||||||||||||
Noninterest expense | 114,399 | 111,031 | 101,353 | 92,725 | 92,026 | 326,783 | 273,843 | ||||||||||||||||||||
Income before income taxes | 42,898 | 34,827 | 9,646 | 10,524 | 14,376 | 87,371 | 46,383 | ||||||||||||||||||||
Income tax expense | 15,197 | 13,078 | 3,239 | 1,846 | 4,415 | 31,514 | 13,742 | ||||||||||||||||||||
Net income | $ | 27,701 | $ | 21,749 | $ | 6,407 | $ | 8,678 | $ | 9,961 | $ | 55,857 | $ | 32,641 | |||||||||||||
Basic income per share | $ | 1.12 | $ | 0.88 | $ | 0.27 | $ | 0.39 | $ | 0.45 | $ | 2.29 | $ | 1.60 | |||||||||||||
Diluted income per share | $ | 1.11 | $ | 0.87 | $ | 0.27 | $ | 0.39 | $ | 0.45 | $ | 2.27 | $ | 1.58 | |||||||||||||
Common shares outstanding | 24,833,008 | 24,821,349 | 24,550,219 | 22,076,534 | 22,061,702 | 24,833,008 | 22,061,702 | ||||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||
Basic | 24,811,169 | 24,708,375 | 23,676,506 | 22,050,022 | 22,035,317 | 24,398,683 | 20,407,386 | ||||||||||||||||||||
Diluted | 24,996,747 | 24,911,919 | 23,877,376 | 22,297,183 | 22,291,810 | 24,595,348 | 20,646,540 | ||||||||||||||||||||
Shareholders' equity per share | $ | 23.60 | $ | 22.55 | $ | 21.55 | $ | 21.08 | $ | 20.87 | $ | 23.60 | $ | 20.87 | |||||||||||||
Financial position (at period end): | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 55,998 | $ | 45,229 | $ | 46,356 | $ | 32,684 | $ | 37,303 | $ | 55,998 | $ | 37,303 | |||||||||||||
Investment securities | 991,325 | 928,364 | 687,081 | 572,164 | 602,018 | 991,325 | 602,018 | ||||||||||||||||||||
Loans held for sale | 893,513 | 772,780 | 696,692 | 650,163 | 882,319 | 893,513 | 882,319 | ||||||||||||||||||||
Loans held for investment, net | 3,764,178 | 3,698,959 | 3,523,551 | 3,192,720 | 3,012,943 | 3,764,178 | 3,012,943 | ||||||||||||||||||||
Mortgage servicing rights | 167,501 | 147,266 | 148,851 | 171,255 | 146,080 | 167,501 | 146,080 | ||||||||||||||||||||
Other real estate owned | 6,440 | 10,698 | 7,273 | 7,531 | 8,273 | 6,440 | 8,273 | ||||||||||||||||||||
Total assets | 6,226,601 | 5,941,178 | 5,417,252 | 4,894,495 | 4,975,653 | 6,226,601 | 4,975,653 | ||||||||||||||||||||
Deposits | 4,504,560 | 4,239,155 | 3,823,027 | 3,231,953 | 3,307,693 | 4,504,560 | 3,307,693 | ||||||||||||||||||||
Federal Home Loan Bank advances | 858,923 | 878,987 | 883,574 | 1,018,159 | 1,025,745 | 858,923 | 1,025,745 | ||||||||||||||||||||
Shareholders' equity | $ | 586,028 | $ | 559,603 | $ | 529,132 | $ | 465,275 | $ | 460,458 | $ | 586,028 | $ | 460,458 | |||||||||||||
Financial position (averages): | |||||||||||||||||||||||||||
Investment securities | $ | 981,223 | $ | 766,248 | $ | 625,695 | $ | 584,519 | $ | 539,330 | $ | 791,749 | $ | 503,280 | |||||||||||||
Loans held for investment | 3,770,133 | 3,677,361 | 3,399,479 | 3,120,644 | 2,975,624 | 3,616,222 | 2,738,085 | ||||||||||||||||||||
Total interest-earning assets | 5,692,999 | 5,186,131 | 4,629,507 | 4,452,326 | 4,394,557 | 5,171,456 | 4,048,237 | ||||||||||||||||||||
Total interest-bearing deposits | 3,343,339 | 3,072,314 | 2,734,975 | 2,587,125 | 2,573,512 | 3,051,279 | 2,470,022 | ||||||||||||||||||||
Federal Home Loan Bank advances | 988,358 | 946,488 | 896,726 | 987,803 | 887,711 | 944,020 | 730,519 | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,242 | — | — | 100 | — | 753 | 15,204 | ||||||||||||||||||||
Total interest-bearing liabilities | 4,459,213 | 4,110,208 | 3,693,558 | 3,636,885 | 3,523,080 | 4,089,016 | 3,277,602 | ||||||||||||||||||||
Shareholders’ equity | $ | 588,335 | $ | 548,080 | $ | 510,883 | $ | 470,635 | $ | 460,489 | $ | 549,242 | $ | 429,071 |
At or for the Three Months Ended | At or for the Nine Months Ended | ||||||||||||||||||||||||||
(dollars in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | ||||||||||||||||||||
Financial performance: | |||||||||||||||||||||||||||
Return on average shareholders' equity (1) | 18.83 | % | 15.87 | % | 5.02 | % | 7.38 | % | 8.65 | % | 13.56 | % | 10.14 | % | |||||||||||||
Return on average assets | 1.79 | % | 1.54 | % | 0.51 | % | 0.71 | % | 0.83 | % | 1.33 | % | 0.98 | % | |||||||||||||
Net interest margin (2) | 3.34 | % | 3.48 | % | 3.55 | % | 3.61 | % | 3.67 | % | 3.46 | % | 3.63 | % | |||||||||||||
Efficiency ratio (3) | 72.15 | % | 75.55 | % | 90.17 | % | 88.18 | % | 85.92 | % | 78.20 | % | 84.41 | % | |||||||||||||
Asset quality: | |||||||||||||||||||||||||||
Allowance for credit losses | $ | 35,233 | $ | 34,001 | $ | 32,423 | $ | 30,659 | $ | 27,887 | $ | 35,233 | $ | 27,887 | |||||||||||||
Allowance for loan losses/total loans (4) | 0.89 | % | 0.88 | % | 0.88 | % | 0.91 | % | 0.89 | % | 0.89 | % | 0.89 | % | |||||||||||||
Allowance for loan losses/nonaccrual loans | 131.07 | % | 207.41 | % | 195.51 | % | 170.54 | % | 138.27 | % | 131.07 | % | 138.27 | % | |||||||||||||
Total nonaccrual loans (5)(6) | $ | 25,921 | $ | 15,745 | $ | 16,012 | $ | 17,168 | $ | 19,470 | $ | 25,921 | $ | 19,470 | |||||||||||||
Nonaccrual loans/total loans | 0.68 | % | 0.42 | % | 0.45 | % | 0.53 | % | 0.64 | % | 0.68 | % | 0.64 | % | |||||||||||||
Other real estate owned | $ | 6,440 | $ | 10,698 | $ | 7,273 | $ | 7,531 | $ | 8,273 | $ | 6,440 | $ | 8,273 | |||||||||||||
Total nonperforming assets (6) | $ | 32,361 | $ | 26,443 | $ | 23,285 | $ | 24,699 | $ | 27,743 | $ | 32,361 | $ | 27,743 | |||||||||||||
Nonperforming assets/total assets | 0.52 | % | 0.45 | % | 0.43 | % | 0.50 | % | 0.56 | % | 0.52 | % | 0.56 | % | |||||||||||||
Net charge-offs (recoveries) | $ | 18 | $ | (478 | ) | $ | (364 | ) | $ | (872 | ) | $ | (739 | ) | $ | (824 | ) | $ | (1,163 | ) | |||||||
Regulatory capital ratios for the Bank: | |||||||||||||||||||||||||||
Tier 1 leverage capital (to average assets) | 9.91 | % | 10.28 | % | 10.17 | % | 9.46 | % | 9.69 | % | 9.91 | % | 9.69 | % | |||||||||||||
Tier 1 common equity risk-based capital (to risk-weighted assets) | 13.61 | % | 13.52 | % | 13.09 | % | 13.04 | % | 13.35 | % | 13.61 | % | 13.35 | % | |||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 13.61 | % | 13.52 | % | 13.09 | % | 13.04 | % | 13.35 | % | 13.61 | % | 13.35 | % | |||||||||||||
Total risk-based capital (to risk-weighted assets) | 14.41 | % | 14.33 | % | 13.93 | % | 13.92 | % | 14.15 | % | 14.41 | % | 14.15 | % | |||||||||||||
Regulatory capital ratios for the Company: | |||||||||||||||||||||||||||
Tier 1 leverage capital (to average assets) | 9.52 | % | 9.88 | % | 10.50 | % | 9.95 | % | 10.00 | % | 9.52 | % | 10.00 | % | |||||||||||||
Tier 1 common equity risk-based capital (to risk-weighted assets) | 10.37 | % | 10.31 | % | 10.60 | % | 10.52 | % | 10.65 | % | 10.37 | % | 10.65 | % | |||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 11.55 | % | 11.51 | % | 11.89 | % | 11.94 | % | 12.09 | % | 11.55 | % | 12.09 | % | |||||||||||||
Total risk-based capital (to risk-weighted assets) | 12.25 | % | 12.22 | % | 12.63 | % | 12.70 | % | 12.79 | % | 12.25 | % | 12.79 | % |
(1) | Net earnings available to common shareholders divided by average shareholders’ equity. |
(2) | Net interest income divided by total average interest-earning assets on a tax equivalent basis. |
(3) | Noninterest expense divided by total revenue (net interest income and noninterest income). |
(4) | Includes loans acquired with bank acquisitions. Excluding acquired loans, allowance for loan losses /total loans was 1.05%, 1.03%, 1.07%, 1.10% and 1.11% at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
(5) | Generally, loans are placed on nonaccrual status when they are 90 or more days past due, unless payment is insured by the FHA or guaranteed by the VA. |
(6) | Includes $2.1 million, $2.6 million, $2.6 million, $1.2 million and $1.5 million of nonperforming loans guaranteed by the SBA at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
At or for the Three Months Ended | At or for the Nine Months Ended | |||||||||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | |||||||||||||||||||||
SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||
Loans serviced for others | ||||||||||||||||||||||||||||
Single family | $ | 18,199,040 | $ | 17,073,520 | $ | 15,980,932 | $ | 15,347,811 | $ | 14,271,187 | $ | 18,199,040 | $ | 14,271,187 | ||||||||||||||
Multifamily DUS | 1,055,181 | 1,023,505 | 946,191 | 924,367 | 866,880 | 1,055,181 | 866,880 | |||||||||||||||||||||
Other | 67,348 | 62,466 | 62,566 | 79,513 | 86,567 | 67,348 | 86,567 | |||||||||||||||||||||
Total loans serviced for others | $ | 19,321,569 | $ | 18,159,491 | $ | 16,989,689 | $ | 16,351,691 | $ | 15,224,634 | $ | 19,321,569 | $ | 15,224,634 | ||||||||||||||
Loan production volumes: | ||||||||||||||||||||||||||||
Mortgage Banking segment: | ||||||||||||||||||||||||||||
Single family mortgage closed loans(1)(2) | $ | 2,647,943 | $ | 2,261,599 | $ | 1,573,148 | $ | 1,648,735 | $ | 1,934,151 | $ | 6,482,690 | $ | 5,563,700 | ||||||||||||||
Single family mortgage interest rate lock commitments(2) | 2,689,640 | 2,361,691 | 1,803,703 | 1,340,148 | 1,806,767 | 6,855,034 | 5,590,960 | |||||||||||||||||||||
Single family mortgage loans sold(2) | 2,489,415 | 2,173,392 | 1,471,583 | 1,830,768 | 1,965,223 | 6,134,390 | 5,176,569 | |||||||||||||||||||||
Commercial and Consumer Banking segment: | ||||||||||||||||||||||||||||
Loan originations | ||||||||||||||||||||||||||||
Multifamily DUS® (3) | $ | 45,497 | $ | 146,535 | $ | 39,094 | $ | 53,279 | $ | 47,342 | 231,126 | 151,559 | ||||||||||||||||
Other (4) | 2,913 | 5,528 | — | — | — | 8,441 | — | |||||||||||||||||||||
Loans sold | ||||||||||||||||||||||||||||
Multifamily DUS® (3) | 58,484 | 109,394 | 47,970 | 63,779 | 42,333 | 215,848 | 140,965 | |||||||||||||||||||||
Other (4) | $ | 50,255 | $ | 31,813 | $ | — | $ | — | $ | — | $ | 82,068 | $ | — |
(1) | Represents single family mortgage production volume designated for sale to the secondary market during each respective period. |
(2) | Includes loans originated by WMS Series LLC and purchased by HomeStreet Bank. |
(3) | Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS"®) is a registered trademark of Fannie Mae. |
(4) | Includes multifamily loans originated from sources other than DUS. |
1 DUS® is a registered trademark of Fannie Mae | 62 |
At or for the Three Months Ended September 30, | Percent Change | At or for the Nine Months Ended September 30, | Percent Change | |||||||||||||||||||
(in thousands, except per share data and ratios) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Selected statement of operations data | ||||||||||||||||||||||
Total net revenue (1) | $ | 158,547 | $ | 107,102 | 48 | % | $ | 417,904 | $ | 324,426 | 29 | % | ||||||||||
Total noninterest expense | 114,399 | 92,026 | 24 | % | 326,783 | 273,843 | 19 | % | ||||||||||||||
Provision for credit losses | 1,250 | 700 | 79 | % | 3,750 | 4,200 | (11 | )% | ||||||||||||||
Income tax expense | 15,197 | 4,415 | 244 | % | 31,514 | 13,742 | 129 | % | ||||||||||||||
Net income | $ | 27,701 | $ | 9,961 | 178 | % | $ | 55,857 | $ | 32,641 | 71 | % | ||||||||||
Financial performance | ||||||||||||||||||||||
Diluted income per share | $ | 1.11 | $ | 0.45 | $ | 2.27 | $ | 1.58 | ||||||||||||||
Return on average common shareholders’ equity | 18.83 | % | 8.65 | % | 13.56 | % | 10.14 | % | ||||||||||||||
Return on average assets | 1.79 | % | 0.83 | % | 1.33 | % | 0.98 | % | ||||||||||||||
Net interest margin | 3.34 | % | 3.67 | % | 3.46 | % | 3.63 | % |
(1) | Total net revenue is net interest income and noninterest income. |
• | Allowance for Loan Losses |
• | Fair Value of Financial Instruments |
• | Single Family mortgage servicing rights ("MSRs") |
• | Other real estate owned ("OREO") |
• | Income Taxes |
• | Business Combinations |
Three Months Ended September 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: (1) | |||||||||||||||||||||
Cash and cash equivalents | $ | 39,069 | $ | 104 | 1.06 | % | $ | 27,725 | $ | 13 | 0.18 | % | |||||||||
Investment securities | 981,223 | 6,363 | 2.59 | % | 539,330 | 3,453 | 2.54 | % | |||||||||||||
Loans held for sale | 902,574 | 8,201 | 3.63 | % | 851,878 | 8,394 | 3.91 | % | |||||||||||||
Loans held for investment | 3,770,133 | 41,580 | 4.38 | % | 2,975,624 | 32,727 | 4.36 | % | |||||||||||||
Total interest-earning assets | 5,692,999 | 56,248 | 3.93 | % | 4,394,557 | 44,587 | 4.03 | % | |||||||||||||
Noninterest-earning assets (2) | 490,242 | 423,048 | |||||||||||||||||||
Total assets | $ | 6,183,241 | $ | 4,817,605 | |||||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing demand accounts | $ | 458,660 | $ | 484 | 0.42 | % | $ | 404,874 | $ | 495 | 0.49 | % | |||||||||
Savings accounts | 300,831 | 261 | 0.35 | % | 299,135 | 258 | 0.34 | % | |||||||||||||
Money market accounts | 1,443,111 | 2,064 | 0.57 | % | 1,126,119 | 1,268 | 0.45 | % | |||||||||||||
Certificate accounts | 1,140,737 | 2,669 | 0.93 | % | 743,384 | 1,101 | 0.59 | % | |||||||||||||
Total interest-bearing deposits | 3,343,339 | 5,478 | 0.65 | % | 2,573,512 | 3,122 | 0.48 | % | |||||||||||||
Federal Home Loan Bank advances | 988,358 | 1,605 | 0.65 | % | 887,711 | 958 | 0.43 | % | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,242 | 5 | 0.85 | % | — | — | — | % | |||||||||||||
Long-term debt | 125,274 | 1,440 | 4.57 | % | 61,857 | 278 | 1.78 | % | |||||||||||||
Total interest-bearing liabilities | 4,459,213 | 8,528 | 0.76 | % | 3,523,080 | 4,358 | 0.49 | % | |||||||||||||
Noninterest-bearing liabilities | 1,135,693 | 834,036 | |||||||||||||||||||
Total liabilities | 5,594,906 | 4,357,116 | |||||||||||||||||||
Shareholders’ equity | 588,335 | 460,489 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,183,241 | $ | 4,817,605 | |||||||||||||||||
Net interest income (3) | $ | 47,720 | $ | 40,229 | |||||||||||||||||
Net interest spread | 3.17 | % | 3.54 | % | |||||||||||||||||
Impact of noninterest-bearing sources | 0.17 | % | 0.13 | % | |||||||||||||||||
Net interest margin | 3.34 | % | 3.67 | % |
(1) | The average balances of nonaccrual assets and related income, if any, are included in their respective categories. |
(2) | Includes former loan balances that have been foreclosed and are now reclassified to OREO. |
(3) | Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $918 thousand and $595 thousand for the three months ended September 30, 2016 and 2015, respectively. The estimated federal statutory tax rate was 35% for the periods presented. |
Nine Months Ended September 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: (1) | |||||||||||||||||||||
Cash and cash equivalents | $ | 38,893 | $ | 175 | 0.60 | % | $ | 37,719 | $ | 55 | 0.19 | % | |||||||||
Investment securities | 791,749 | 14,805 | 2.48 | % | 503,280 | 10,355 | 2.74 | % | |||||||||||||
Loans held for sale | 724,592 | 20,252 | 3.75 | % | 769,153 | 22,010 | 3.81 | % | |||||||||||||
Loans held for investment | 3,616,222 | 119,586 | 4.39 | % | 2,738,085 | 89,786 | 4.37 | % | |||||||||||||
Total interest-earning assets | 5,171,456 | 154,818 | 3.99 | % | 4,048,237 | 122,206 | 4.02 | % | |||||||||||||
Noninterest-earning assets (2) | 448,172 | 389,691 | |||||||||||||||||||
Total assets | $ | 5,619,628 | $ | 4,437,928 | |||||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing demand accounts | $ | 444,782 | $ | 1,465 | 0.44 | % | $ | 283,523 | $ | 1,004 | 0.46 | % | |||||||||
Savings accounts | 299,763 | 777 | 0.35 | % | 281,212 | 800 | 0.39 | % | |||||||||||||
Money market accounts | 1,308,760 | 5,021 | 0.51 | % | 1,113,001 | 3,643 | 0.44 | % | |||||||||||||
Certificate accounts | 997,974 | 6,374 | 0.84 | % | 792,285 | 3,313 | 0.56 | % | |||||||||||||
Total interest-bearing deposits | 3,051,279 | 13,637 | 0.59 | % | 2,470,021 | 8,760 | 0.47 | % | |||||||||||||
Federal Home Loan Bank advances | 944,020 | 4,486 | 0.63 | % | 730,519 | 2,477 | 0.46 | % | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 753 | 5 | 0.28 | % | 15,204 | 28 | 0.16 | % | |||||||||||||
Long-term debt | 92,964 | 2,573 | 3.40 | % | 61,857 | 814 | 1.76 | % | |||||||||||||
Total interest-bearing liabilities | 4,089,016 | 20,701 | 0.67 | % | 3,277,601 | 12,079 | 0.49 | % | |||||||||||||
Noninterest-bearing liabilities | 981,370 | 731,256 | |||||||||||||||||||
Total liabilities | 5,070,386 | 4,008,857 | |||||||||||||||||||
Shareholders’ equity | 549,242 | 429,071 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,619,628 | $ | 4,437,928 | |||||||||||||||||
Net interest income (3) | $ | 134,117 | $ | 110,127 | |||||||||||||||||
Net interest spread | 3.32 | % | 3.53 | % | |||||||||||||||||
Impact of noninterest-bearing sources | 0.14 | % | 0.10 | % | |||||||||||||||||
Net interest margin | 3.46 | % | 3.63 | % |
(1) | The average balances of nonaccrual assets and related income, if any, are included in their respective categories. |
(2) | Includes former loan balances that have been foreclosed and are now reclassified to OREO. |
(3) | Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $2.1 million and $1.5 million for the nine months ended September 30, 2016 and 2015, respectively. The estimated federal statutory tax rate was 35% for the periods presented. |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||||
Gain on mortgage loan origination and sale activities (1) | $ | 92,600 | $ | 57,885 | $ | 34,715 | 60 | % | $ | 239,493 | $ | 189,746 | $ | 49,747 | 26 | % | |||||||||||||
Mortgage servicing income | 14,544 | 4,768 | 9,776 | 205 | 35,855 | 10,896 | 24,959 | 229 | |||||||||||||||||||||
Income from WMS Series LLC | 1,174 | 380 | 794 | 209 | 2,474 | 1,428 | 1,046 | 73 | |||||||||||||||||||||
Depositor and other retail banking fees | 1,744 | 1,701 | 43 | 3 | 4,991 | 4,239 | 752 | 18 | |||||||||||||||||||||
Insurance agency commissions | 441 | 477 | (36 | ) | (8 | ) | 1,205 | 1,183 | 22 | 2 | |||||||||||||||||||
Gain on sale of investment securities available for sale | 48 | 1,002 | (954 | ) | (95 | ) | 145 | 1,002 | (857 | ) | (86 | ) | |||||||||||||||||
Bargain purchase gain | — | 796 | (796 | ) | NM | — | 7,345 | (7,345 | ) | NM | |||||||||||||||||||
Other | 1,194 | 459 | 735 | 160 | 1,766 | (11 | ) | 1,777 | NM | ||||||||||||||||||||
Total noninterest income | $ | 111,745 | $ | 67,468 | $ | 44,277 | 66 | % | $ | 285,929 | $ | 215,828 | $ | 70,101 | 32 | % | |||||||||||||
NM = not meaningful |
(1) | Single family and multifamily mortgage banking activities. |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Single family held for sale: | |||||||||||||||||||||||||||||
Servicing value and secondary market gains(1) | $ | 79,946 | $ | 49,613 | $ | 30,333 | 61 | % | $ | 207,758 | $ | 167,786 | $ | 39,972 | 24 | % | |||||||||||||
Loan origination and funding fees | 8,931 | 6,362 | 2,569 | 40 | 21,614 | 16,452 | 5,162 | 31 | |||||||||||||||||||||
Total single family held for sale | 88,877 | 55,975 | 32,902 | 59 | 229,372 | 184,238 | 45,134 | 24 | |||||||||||||||||||||
Multifamily DUS | 2,695 | 1,488 | 1,207 | 81 | 7,879 | 4,741 | 3,138 | 66 | |||||||||||||||||||||
Other (2) | 1,028 | 422 | 606 | 144 | 2,242 | 767 | 1,475 | 192 | |||||||||||||||||||||
Gain on mortgage loan origination and sale activities | $ | 92,600 | $ | 57,885 | $ | 34,715 | 60 | % | $ | 239,493 | $ | 189,746 | $ | 49,747 | 26 | % |
(1) | Comprised of gains and losses on interest rate lock and purchase loan commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold. |
(2) | Includes multifamily loans from sources other than DUS. |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Single family mortgage closed loan volume (1) | $ | 2,647,943 | $ | 1,934,151 | $ | 713,792 | 37 | % | $ | 6,482,690 | $ | 5,563,700 | $ | 918,990 | 17 | % | |||||||||||||
Single family mortgage interest rate lock commitments (1) | $ | 2,689,640 | $ | 1,806,767 | $ | 882,873 | 49 | % | $ | 6,855,034 | $ | 5,590,960 | $ | 1,264,074 | 23 | % |
(1) | Includes loans originated by WMS Series LLC and purchased by HomeStreet Bank. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Effect of changes to the mortgage repurchase liability recorded in gain on mortgage loan origination and sale activities: | |||||||||||||||
New loan sales (1) | $ | (1,066 | ) | $ | (883 | ) | $ | (2,520 | ) | $ | (2,052 | ) | |||
Other changes in estimated repurchase losses(2) | 571 | — | 1,113 | — | |||||||||||
$ | (495 | ) | $ | (883 | ) | $ | (1,407 | ) | $ | (2,052 | ) |
(1) | Represents the estimated fair value of the repurchase or indemnity obligation recognized as a reduction of proceeds on new loan sales. |
(2) | Represents changes in estimated probable future repurchase losses on previously sold loans. |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Servicing income, net: | |||||||||||||||||||||||||||||
Servicing fees and other | $ | 16,053 | $ | 11,136 | $ | 4,917 | 44 | % | $ | 41,985 | $ | 30,256 | $ | 11,729 | 39 | % | |||||||||||||
Changes in fair value of MSRs due to modeled amortization (1) | (8,925 | ) | (8,478 | ) | (447 | ) | 5 | (23,940 | ) | (26,725 | ) | 2,785 | (10 | ) | |||||||||||||||
Amortization of multifamily MSRs | (661 | ) | (511 | ) | (150 | ) | 29 | (1,946 | ) | (1,441 | ) | (505 | ) | 35 | |||||||||||||||
6,467 | 2,147 | 4,320 | 201 | 16,099 | 2,090 | 14,009 | 670 | ||||||||||||||||||||||
Risk management: | |||||||||||||||||||||||||||||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) | 4,915 | (19,396 | ) | 24,311 | (125 | ) | (37,354 | ) | (8,224 | ) | (29,130 | ) | 354 | ||||||||||||||||
Net gain (loss) from derivatives economically hedging MSRs | 3,162 | 22,017 | (18,855 | ) | (86 | ) | 57,110 | 17,030 | 40,080 | 235 | |||||||||||||||||||
8,077 | 2,621 | 5,456 | 208 | 19,756 | 8,806 | 10,950 | 124 | ||||||||||||||||||||||
Mortgage servicing income | $ | 14,544 | $ | 4,768 | $ | 9,776 | 205 | % | $ | 35,855 | $ | 10,896 | $ | 24,959 | 229 | % |
(1) | Represents changes due to collection/realization of expected cash flows and curtailments. |
(2) | Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Fees: | |||||||||||||||||||||||||||||
Monthly maintenance and deposit-related fees | $ | 763 | $ | 721 | $ | 42 | 6 | % | $ | 2,135 | $ | 1,931 | $ | 204 | 11 | % | |||||||||||||
Debit Card/ATM fees | 960 | 954 | 6 | 1 | 2,796 | 2,242 | 554 | 25 | |||||||||||||||||||||
Other fees | 21 | 26 | (5 | ) | (19 | ) | 60 | 66 | (6 | ) | (9 | ) | |||||||||||||||||
Total depositor and other retail banking fees | $ | 1,744 | $ | 1,701 | $ | 43 | 3 | % | $ | 4,991 | $ | 4,239 | $ | 752 | 18 | % |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||
Salaries and related costs | $ | 79,164 | $ | 60,991 | $ | 18,173 | 30 | % | $ | 221,615 | $ | 180,238 | $ | 41,377 | 23 | % | |||||||||||||
General and administrative | 14,949 | 14,342 | 607 | 4 | 47,210 | 41,122 | 6,088 | 15 | |||||||||||||||||||||
Amortization of core deposit intangibles | 579 | 527 | 52 | 10 | 1,636 | 1,410 | 226 | 16 | |||||||||||||||||||||
Legal | 639 | 868 | (229 | ) | (26 | ) | 1,687 | 1,912 | (225 | ) | (12 | ) | |||||||||||||||||
Consulting | 1,390 | 166 | 1,224 | 737 | 4,239 | 6,544 | (2,305 | ) | (35 | ) | |||||||||||||||||||
Federal Deposit Insurance Corporation assessments | 919 | 504 | 415 | 82 | 2,419 | 1,890 | 529 | 28 | |||||||||||||||||||||
Occupancy | 7,740 | 6,077 | 1,663 | 27 | 22,408 | 18,024 | 4,384 | 24 | |||||||||||||||||||||
Information services | 7,876 | 8,159 | (283 | ) | (3 | ) | 23,857 | 21,993 | 1,864 | 8 | |||||||||||||||||||
Net cost of operation and sale of other real estate owned | 1,143 | 392 | 751 | 192 | 1,712 | 710 | 1,002 | 141 | |||||||||||||||||||||
Total noninterest expense | $ | 114,399 | $ | 92,026 | $ | 22,373 | 24 | % | $ | 326,783 | $ | 273,843 | $ | 52,940 | 19 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and related costs | $ | 6 | $ | (7 | ) | $ | 4,128 | $ | 7,669 | ||||||
General and administrative | 35 | 7 | 500 | 1,256 | |||||||||||
Legal | 63 | 179 | 110 | 530 | |||||||||||
Consulting | 280 | (212 | ) | 1,296 | 5,539 | ||||||||||
Occupancy | 7 | (48 | ) | 132 | 335 | ||||||||||
Information services | 121 | 518 | 569 | 481 | |||||||||||
Total noninterest expense | $ | 512 | $ | 437 | $ | 6,735 | $ | 15,810 |
At September 30, 2016 | At December 31, 2015 | ||||||||||||
(in thousands) | Fair Value | Percent | Fair Value | Percent | |||||||||
Investment securities available for sale: | |||||||||||||
Mortgage-backed securities: | |||||||||||||
Residential | $ | 152,236 | 16 | % | $ | 68,101 | 13 | % | |||||
Commercial | 27,208 | 3 | 17,851 | 3 | |||||||||
Municipal bonds | 355,344 | 37 | 171,869 | 32 | |||||||||
Collateralized mortgage obligations: | |||||||||||||
Residential | 182,833 | 19 | 84,497 | 16 | |||||||||
Commercial | 120,259 | 13 | 79,133 | 15 | |||||||||
Corporate debt securities | 85,191 | 9 | 78,736 | 14 | |||||||||
U.S. Treasury securities | 26,004 | 3 | 40,964 | 7 | |||||||||
Total investment securities available for sale | $ | 949,075 | 100 | % | $ | 541,151 | 100 | % |
At September 30, 2016 | At December 31, 2015 | ||||||||||||
(in thousands) | Amount | Percent | Amount | Percent | |||||||||
Consumer loans: | |||||||||||||
Single family (1) | $ | 1,186,476 | 31.3 | % | $ | 1,203,180 | 37.3 | % | |||||
Home equity and other | 338,155 | 8.9 | 256,373 | 8.0 | |||||||||
1,524,631 | 40.3 | 1,459,553 | 45.3 | ||||||||||
Commercial loans: | |||||||||||||
Commercial real estate (2) | 810,346 | 21.3 | 600,703 | 18.6 | |||||||||
Multifamily | 562,272 | 14.8 | 426,557 | 13.2 | |||||||||
Construction/ land development | 661,813 | 17.4 | 583,160 | 18.1 | |||||||||
Commercial business | 237,117 | 6.2 | 154,262 | 4.8 | |||||||||
2,271,548 | 59.7 | 1,764,682 | 54.7 | ||||||||||
3,796,179 | 100.0 | % | 3,224,235 | 100.0 | % | ||||||||
Net deferred loan fees and costs | 1,974 | (2,237 | ) | ||||||||||
3,798,153 | 3,221,998 | ||||||||||||
Allowance for loan losses | (33,975 | ) | (29,278 | ) | |||||||||
$ | 3,764,178 | $ | 3,192,720 |
(1) | Includes $20.5 million and $21.5 million at September 30, 2016 and December 31, 2015, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
(2) | September 30, 2016 and December 31, 2015 balances comprised of $278.3 million and $154.9 million of owner-occupied loans, respectively, and $532.0 million and $445.8 million of non-owner-occupied loans, respectively. |
(in thousands) | At September 30, 2016 | At December 31, 2015 | ||||||||||||
Amount | Percent | Amount | Percent | |||||||||||
Noninterest-bearing accounts - checking and savings | $ | 499,106 | 11.1 | % | $ | 370,523 | 11.5 | % | ||||||
Interest-bearing transaction and savings deposits: | ||||||||||||||
NOW accounts | 501,370 | 11.1 | 408,477 | 12.6 | ||||||||||
Statement savings accounts due on demand | 303,872 | 6.7 | 292,092 | 9.0 | ||||||||||
Money market accounts due on demand | 1,513,547 | 33.6 | 1,155,464 | 35.8 | ||||||||||
Total interest-bearing transaction and savings deposits | 2,318,789 | 51.5 | 1,856,033 | 57.4 | ||||||||||
Total transaction and savings deposits | 2,817,895 | 62.5 | 2,226,556 | 68.9 | ||||||||||
Certificates of deposit | 1,097,263 | 24.4 | 732,892 | 22.7 | ||||||||||
Noninterest-bearing accounts - other | 589,402 | 13.1 | 272,505 | 8.4 | ||||||||||
Total deposits | $ | 4,504,560 | 100.0 | % | $ | 3,231,953 | 100.0 | % |
At or For the Three Months Ended September 30, | At or For the Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Return on assets (1) | 1.79 | % | 0.83 | % | 1.33 | % | 0.98 | % | |||
Return on equity (2) | 18.83 | % | 8.65 | % | 13.56 | % | 10.14 | % | |||
Equity to assets ratio (3) | 9.51 | % | 9.56 | % | 9.77 | % | 9.67 | % |
(1) | Net income (annualized) divided by average total assets. |
(2) | Net earnings available to common shareholders (annualized) divided by average common shareholders’ equity. |
(3) | Average equity divided by average total assets. |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Net interest income | $ | 39,339 | $ | 31,509 | $ | 7,830 | 25 | % | $ | 113,378 | $ | 87,261 | $ | 26,117 | 30 | % | |||||||||||||
Provision for credit losses | 1,250 | 700 | 550 | 79 | 3,750 | 4,200 | (450 | ) | (11 | ) | |||||||||||||||||||
Noninterest income | 9,771 | 6,884 | 2,887 | 42 | 22,595 | 20,589 | 2,006 | 10 | |||||||||||||||||||||
Noninterest expense | 32,170 | 28,110 | 4,060 | 14 | 102,903 | 93,056 | 9,847 | 11 | |||||||||||||||||||||
Income before income tax expense | 15,690 | 9,583 | 6,107 | 64 | 29,320 | 10,594 | 18,726 | 177 | |||||||||||||||||||||
Income tax expense | 5,557 | 2,783 | 2,774 | 100 | 10,566 | 954 | 9,612 | 1,008 | |||||||||||||||||||||
Net income | $ | 10,133 | $ | 6,800 | $ | 3,333 | 49 | % | $ | 18,754 | $ | 9,640 | $ | 9,114 | 95 | % | |||||||||||||
Total assets | $ | 5,122,702 | $ | 3,885,821 | $ | 1,236,881 | 32 | % | $ | 5,122,702 | $ | 3,885,821 | $ | 1,236,881 | 32 | % | |||||||||||||
Efficiency ratio (1) | 65.51 | % | 73.22 | % | 75.68 | % | 86.28 | % | |||||||||||||||||||||
Full-time equivalent employees (ending) | 948 | 807 | 948 | 807 | |||||||||||||||||||||||||
Net gain on loan origination and sale activities: | |||||||||||||||||||||||||||||
Multifamily DUS | $ | 2,695 | $ | 1,488 | $ | 1,207 | 81 | % | $ | 7,879 | $ | 4,741 | 3,138 | 66 | % | ||||||||||||||
Other (2) | 1,028 | 422 | 606 | 144 | 2,242 | 767 | 1,475 | 192 | % | ||||||||||||||||||||
$ | 3,723 | $ | 1,910 | $ | 1,813 | 95 | % | $ | 10,121 | $ | 5,508 | 4,613 | 84 | % | |||||||||||||||
Production volumes for sale to the secondary market: | |||||||||||||||||||||||||||||
Loan originations | |||||||||||||||||||||||||||||
Multifamily DUS | $ | 45,497 | $ | 47,342 | $ | (1,845 | ) | (4 | )% | $ | 231,126 | $ | 151,559 | $ | 79,567 | 52 | % | ||||||||||||
Other (2) | 2,913 | — | 2,913 | NM | 8,441 | — | $ | 8,441 | NM | ||||||||||||||||||||
Loans sold | |||||||||||||||||||||||||||||
Multifamily DUS | $ | 58,484 | $ | 42,333 | $ | 16,151 | 38 | % | $ | 215,848 | $ | 140,965 | $ | 74,883 | 53 | % | |||||||||||||
Other (2) | $ | 50,255 | $ | — | $ | 50,255 | NM | $ | 82,068 | $ | — | 82,068 | NM | ||||||||||||||||
NM = not meaningful |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Servicing income, net: | |||||||||||||||||||||||||||||
Servicing fees and other | $ | 3,425 | $ | 1,181 | $ | 2,244 | 190 | % | $ | 6,737 | $ | 3,202 | $ | 3,535 | 110 | % | |||||||||||||
Amortization of multifamily MSRs | (661 | ) | (511 | ) | (150 | ) | 29 | (1,946 | ) | (1,441 | ) | (505 | ) | 35 | |||||||||||||||
Commercial mortgage servicing income | $ | 2,764 | $ | 670 | $ | 2,094 | 313 | % | $ | 4,791 | $ | 1,761 | $ | 3,030 | 172 | % |
At September 30, 2016 | At December 31, 2015 | ||||||
(in thousands) | |||||||
Multifamily DUS | $ | 1,055,181 | $ | 924,367 | |||
Other | 67,348 | 79,513 | |||||
Total commercial loans serviced for others | $ | 1,122,529 | $ | 1,003,880 |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Net interest income | $ | 7,463 | $ | 8,125 | $ | (662 | ) | (8 | )% | $ | 18,597 | $ | 21,337 | $ | (2,740 | ) | (13 | )% | |||||||||||
Noninterest income | 101,974 | 60,584 | 41,390 | 68 | 263,334 | 195,239 | 68,095 | 35 | |||||||||||||||||||||
Noninterest expense | 82,229 | 63,916 | 18,313 | 29 | 223,880 | 180,787 | 43,093 | 24 | |||||||||||||||||||||
Income before income tax expense | 27,208 | 4,793 | 22,415 | 468 | 58,051 | 35,789 | 22,262 | 62 | |||||||||||||||||||||
Income tax expense | 9,640 | 1,632 | 8,008 | 491 | 20,948 | 12,788 | 8,160 | 64 | |||||||||||||||||||||
Net income | $ | 17,568 | $ | 3,161 | $ | 14,407 | 456 | % | $ | 37,103 | $ | 23,001 | $ | 14,102 | 61 | % | |||||||||||||
Total assets | $ | 1,103,899 | $ | 1,089,832 | $ | 14,067 | 1 | % | $ | 1,103,899 | 1,089,832 | $ | 14,067 | 1 | % | ||||||||||||||
Efficiency ratio (1) | 75.14 | % | 93.02 | % | 79.41 | % | 83.48 | % | |||||||||||||||||||||
Full-time equivalent employees (ending) | 1,483 | 1,293 | 1,483 | 1,293 | |||||||||||||||||||||||||
Production volumes for sale to the secondary market: | |||||||||||||||||||||||||||||
Single family mortgage closed loan volume (2)(3) | $ | 2,647,943 | $ | 1,934,151 | $ | 713,792 | 37 | % | $ | 6,482,690 | $ | 5,563,700 | $ | 918,990 | 17 | % | |||||||||||||
Single family mortgage interest rate lock commitments(2) | $ | 2,689,640 | $ | 1,806,767 | $ | 882,873 | 49 | % | 6,855,034 | 5,590,960 | $ | 1,264,074 | 23 | % | |||||||||||||||
Single family mortgage loans sold(2) | $ | 2,489,415 | $ | 1,965,223 | $ | 524,192 | 27 | % | $ | 6,134,390 | $ | 5,176,569 | $ | 957,821 | 19 | % |
(1) | Noninterest expense divided by total net revenue (net interest income and noninterest income). |
(2) | Includes loans originated by WMS Series LLC and purchased by HomeStreet Bank. |
(3) | Represents single family mortgage production volume designated for sale to the secondary market during each respective period. |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | |||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||
Single family: (1) | ||||||||||||||||||||||||||||||
Servicing value and secondary market gains(2) | $ | 79,946 | $ | 49,613 | $ | 30,333 | 61 | % | $ | 207,758 | $ | 167,786 | $ | 39,972 | 24 | % | ||||||||||||||
Loan origination and funding fees | 8,931 | 6,362 | 2,569 | 40 | 21,614 | 16,452 | 5,162 | 31 | ||||||||||||||||||||||
Total mortgage banking gain on mortgage loan origination and sale activities(1) | $ | 88,877 | $ | 55,975 | $ | 32,902 | 59 | % | $ | 229,372 | $ | 184,238 | $ | 45,134 | 24 | % |
(1) | Excludes inter-segment activities. |
(2) | Comprised of gains and losses on interest rate lock commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and the estimated fair value of the repurchase or indemnity obligation recognized on new loan sales. |
Three Months Ended September 30, | Dollar Change | Percent Change | Nine Months Ended September 30, | Dollar Change | Percent Change | ||||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Servicing income, net: | |||||||||||||||||||||||||||||
Servicing fees and other | $ | 12,628 | $ | 9,955 | $ | 2,673 | 27 | % | $ | 35,248 | $ | 27,054 | $ | 8,194 | 30 | % | |||||||||||||
Changes in fair value of MSRs due to modeled amortization (1) | (8,925 | ) | (8,478 | ) | (447 | ) | 5 | (23,940 | ) | (26,725 | ) | 2,785 | (10 | ) | |||||||||||||||
3,703 | 1,477 | 2,226 | 151 | 11,308 | 329 | 10,979 | 3,337 | ||||||||||||||||||||||
Risk management: | |||||||||||||||||||||||||||||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) | 4,915 | (19,396 | ) | 24,311 | (125 | ) | (37,354 | ) | (8,224 | ) | (29,130 | ) | 354 | ||||||||||||||||
Net gain from derivatives economically hedging MSRs | 3,162 | 22,017 | (18,855 | ) | (86 | ) | 57,110 | 17,030 | 40,080 | 235 | |||||||||||||||||||
8,077 | 2,621 | 5,456 | 208 | 19,756 | 8,806 | 10,950 | 124 | ||||||||||||||||||||||
Mortgage Banking servicing income | $ | 11,780 | $ | 4,098 | $ | 7,682 | 187 | % | $ | 31,064 | $ | 9,135 | $ | 21,929 | 240 | % |
(1) | Represents changes due to collection/realization of expected cash flows and curtailments. |
(2) | Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. |
At September 30, 2016 | At December 31, 2015 | ||||||
(in thousands) | |||||||
Single family | |||||||
U.S. government and agency | $ | 17,593,901 | $ | 14,628,596 | |||
Other | 605,139 | 719,215 | |||||
Total single family loans serviced for others | $ | 18,199,040 | $ | 15,347,811 |
At September 30, 2016 | |||||||||||
(in thousands) | Recorded Investment | Unpaid Principal Balance (2) | Related Allowance | ||||||||
Impaired loans: | |||||||||||
Loans with no related allowance recorded | $ | 89,953 | $ | 94,714 | $ | — | |||||
Loans with an allowance recorded | 10,357 | 10,519 | 1,305 | ||||||||
Total | $ | 100,310 | (1) | $ | 105,233 | $ | 1,305 | ||||
At December 31, 2015 | |||||||||||
(in thousands) | Recorded Investment | Unpaid Principal Balance (2) | Related Allowance | ||||||||
Impaired loans: | |||||||||||
Loans with no related allowance recorded | $ | 90,547 | $ | 94,058 | $ | — | |||||
Loans with an allowance recorded | 3,126 | 3,293 | 567 | ||||||||
Total | $ | 93,673 | (1) | $ | 97,351 | $ | 567 |
(1) | Includes $77.5 million and $74.7 million in single family performing troubled debt restructurings ("TDRs") at September 30, 2016 and December 31, 2015, respectively. |
(2) | Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances. |
At September 30, 2016 | At December 31, 2015 | ||||||||||||||||||
(in thousands) | Amount | Percent of Allowance to Total Allowance | Loan Category as a % of Total Loans (1) | Amount | Percent of Allowance to Total Allowance | Loan Category as a % of Total Loans (1) | |||||||||||||
Consumer loans | |||||||||||||||||||
Single family | $ | 9,248 | 26.2 | % | 30.9 | % | $ | 8,942 | 29.2 | % | 36.9 | % | |||||||
Home equity and other | 5,748 | 16.3 | 9.0 | 4,620 | 15.1 | 8.0 | |||||||||||||
14,996 | 42.5 | 39.9 | 13,562 | 44.3 | 44.9 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 6,125 | 17.4 | 21.5 | 4,847 | 15.8 | 18.8 | |||||||||||||
Multifamily | 2,097 | 6.0 | 14.9 | 1,194 | 3.9 | 13.3 | |||||||||||||
Construction/land development | 9,021 | 25.6 | 17.5 | 9,271 | 30.2 | 18.2 | |||||||||||||
Commercial business | 2,994 | 8.5 | 6.2 | 1,785 | 5.8 | 4.8 | |||||||||||||
20,237 | 57.5 | 60.1 | 17,097 | 55.7 | 55.1 | ||||||||||||||
Total allowance for credit losses | $ | 35,233 | 100.0 | % | 100.0 | % | $ | 30,659 | 100.0 | % | 100.0 | % |
(1) | Excludes loans held for investment balances that are carried at fair value. |
At September 30, 2016 | |||||||||||
(in thousands) | Accrual | Nonaccrual | Total | ||||||||
Consumer | |||||||||||
Single family (1) | $ | 77,487 | $ | 3,677 | $ | 81,164 | |||||
Home equity and other | 1,153 | 193 | 1,346 | ||||||||
78,640 | 3,870 | 82,510 | |||||||||
Commercial | |||||||||||
Commercial real estate | — | 960 | 960 | ||||||||
Multifamily | 508 | — | 508 | ||||||||
Construction/land development | 1,627 | 707 | 2,334 | ||||||||
Commercial business | 495 | 143 | 638 | ||||||||
2,630 | 1,810 | 4,440 | |||||||||
$ | 81,270 | $ | 5,680 | $ | 86,950 |
(1) | Includes loan balances insured by the FHA or guaranteed by the VA of $37.1 million at September 30, 2016. |
At December 31, 2015 | |||||||||||
(in thousands) | Accrual | Nonaccrual | Total | ||||||||
Consumer | |||||||||||
Single family (1) | $ | 74,685 | $ | 2,452 | $ | 77,137 | |||||
Home equity and other | 1,340 | 271 | 1,611 | ||||||||
76,025 | 2,723 | 78,748 | |||||||||
Commercial | |||||||||||
Commercial real estate | — | 1,023 | 1,023 | ||||||||
Multifamily | 3,014 | — | 3,014 | ||||||||
Construction/land development | 3,714 | — | 3,714 | ||||||||
Commercial business | 1,658 | 185 | 1,843 | ||||||||
8,386 | 1,208 | 9,594 | |||||||||
$ | 84,411 | $ | 3,931 | $ | 88,342 |
(1) | Includes loan balances insured by the FHA or guaranteed by the VA of $29.6 million at December 31, 2015. |
At September 30, 2016 | |||||||||||||||||||||||
(in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Nonaccrual | 90 Days or More Past Due and Accruing | Total Past Due Loans | Other Real Estate Owned | |||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Single family | $ | 9,108 | $ | 3,727 | $ | 14,277 | $ | 32,108 | (1) | $ | 59,220 | $ | 3,780 | ||||||||||
Home equity and other | 385 | 144 | 1,563 | — | 2,092 | — | |||||||||||||||||
9,493 | 3,871 | 15,840 | 32,108 | 61,312 | 3,780 | ||||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | — | — | 3,731 | — | 3,731 | 398 | |||||||||||||||||
Multifamily | — | 354 | 113 | — | 467 | — | |||||||||||||||||
Construction/land development | — | — | 1,376 | — | 1,376 | 2,262 | |||||||||||||||||
Commercial business | — | — | 4,861 | — | 4,861 | — | |||||||||||||||||
— | 354 | 10,081 | — | 10,435 | 2,660 | ||||||||||||||||||
Total | $ | 9,493 | $ | 4,225 | $ | 25,921 | $ | 32,108 | $ | 71,747 | $ | 6,440 |
(1) | FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. |
At December 31, 2015 | |||||||||||||||||||||||
(in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Nonaccrual | 90 Days or More Past Due and Accruing | Total Past Due Loans | Other Real Estate Owned | |||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Single family | $ | 7,098 | $ | 3,537 | $ | 12,119 | $ | 36,595 | (1) | $ | 59,349 | $ | 301 | ||||||||||
Home equity and other | 1,095 | 398 | 1,576 | — | 3,069 | — | |||||||||||||||||
8,193 | 3,935 | 13,695 | 36,595 | 62,418 | 301 | ||||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | 233 | — | 2,341 | — | 2,574 | 4,071 | |||||||||||||||||
Multifamily | — | — | 119 | — | 119 | — | |||||||||||||||||
Construction/land development | 77 | — | 339 | — | 416 | 3,159 | |||||||||||||||||
Commercial business | — | — | 674 | 17 | 691 | — | |||||||||||||||||
310 | — | 3,473 | 17 | 3,800 | 7,230 | ||||||||||||||||||
Total | $ | 8,503 | $ | 3,935 | $ | 17,168 | $ | 36,612 | $ | 66,218 | $ | 7,531 |
(1) | FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status as they have little to no risk of loss. |
• | MSRs in excess of a 10% threshold must be deducted from common equity. The disallowable portion of MSRs will be phased in incrementally (40% in 2015; 60% in 2016; 80% in 2017) to 100% deduction in 2018. |
• | In addition, the combined balance of MSRs and deferred tax assets is limited to approximately 15% of the Bank’s and the Company’s common equity Tier 1 capital. These combined assets must be deducted from common equity to the extent that they exceed the 15% threshold. |
• | Any portion of the Bank’s and the Company’s MSRs that are not deducted from the calculation of common equity Tier 1 are subject to a 100% risk weight that will increase to 250% in 2018. |
At September 30, 2016 | |||||||||||||||||||||
HomeStreet Bank | Actual | For Minimum Capital Adequacy Purposes | To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||
(in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Common equity risk-based capital (to risk-weighted assets) | 604,757 | 13.61 | % | 199,913 | 4.5 | % | 288,764 | 6.5 | % | ||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 604,757 | 13.61 | % | 266,551 | 6.0 | % | 355,401 | 8.0 | % | ||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 639,991 | 14.41 | % | $ | 355,401 | 8.0 | % | $ | 444,252 | 10.0 | % | |||||||||
Tier 1 leverage capital (to average assets) | $ | 604,757 | 9.91 | % | $ | 244,124 | 4.0 | % | $ | 305,155 | 5.0 | % |
At September 30, 2016 | |||||||||||||||||||||
HomeStreet, Inc. | Actual | For Minimum Capital Adequacy Purposes | To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||
(in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Common equity risk-based capital (to risk-weighted assets) | 522,889 | 10.37 | % | 226,921 | 4.5 | % | 327,775 | 6.5 | % | ||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 582,489 | 11.55 | % | 302,562 | 6.0 | % | 403,416 | 8.0 | % | ||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 617,723 | 12.25 | % | $ | 403,416 | 8.0 | % | $ | 504,270 | 10.0 | % | |||||||||
Tier 1 leverage capital (to average assets) | $ | 582,489 | 9.52 | % | $ | 244,788 | 4.0 | % | $ | 305,985 | 5.0 | % |
At December 31, 2015 | |||||||||||||||||||||
HomeStreet Bank | Actual | For Minimum Capital Adequacy Purposes | To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||
(in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Common equity risk-based capital (to risk-weighted assets) | 455,101 | 13.04 | % | 157,074 | 4.5 | % | 226,885 | 6.5 | % | ||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 455,101 | 13.04 | % | 209,432 | 6.0 | % | 279,243 | 8.0 | % | ||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 485,761 | 13.92 | % | $ | 279,243 | 8.0 | % | $ | 349,054 | 10.0 | % | |||||||||
Tier 1 leverage capital (to average assets) | $ | 455,101 | 9.46 | % | $ | 192,428 | 4.0 | % | $ | 240,536 | 5.0 | % |
At December 31, 2015 | |||||||||||||||||||||
HomeStreet, Inc. | Actual | For Minimum Capital Adequacy Purposes | To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||
(in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Common equity risk-based capital (to risk-weighted assets) | 423,005 | 10.52 | % | 180,912 | 4.5 | % | 261,317 | 6.5 | % | ||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 480,038 | 11.94 | % | 241,216 | 6.0 | % | 321,621 | 8.0 | % | ||||||||||||
Total risk-based capital (to risk-weighted assets) | $ | 510,697 | 12.70 | % | $ | 321,621 | 8.0 | % | $ | 402,026 | 10.0 | % | |||||||||
Tier 1 leverage capital (to average assets) | $ | 480,038 | 9.95 | % | $ | 193,025 | 4.0 | % | $ | 241,281 | 5.0 | % |
ITEM 3 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
• | understanding the nature and level of the Company's interest rate risk and interest rate sensitivity; |
• | assessing how that risk fits within our overall business strategies; |
• | ensuring an appropriate level of rigor and sophistication in the risk management process for the overall level of risk; |
• | complying with and reviewing the asset/liability management policy; and |
• | formulating and implementing strategies to improve balance sheet mix and earnings. |
September 30, 2016 | |||||||||||||||||||||||||||||||
(dollars in thousands) | 3 Mos. or Less | More Than 3 Mos. to 6 Mos. | More Than 6 Mos. to 12 Mos. | More Than 12 Mos. to 3 Yrs. | More Than 3 Yrs. to 5 Yrs. | More Than 5 Yrs. | Non-Rate- Sensitive | Total | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||
Cash & cash equivalents | $ | 55,998 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 55,998 | |||||||||||||||
FHLB Stock | — | — | — | — | — | 39,783 | — | 39,783 | |||||||||||||||||||||||
Investment securities(1) | 73,366 | 27,600 | 50,110 | 188,249 | 191,833 | 460,167 | — | 991,325 | |||||||||||||||||||||||
Mortgage loans held for sale | 865,742 | 34 | 78 | 436 | 3,091 | 24,132 | — | 893,513 | |||||||||||||||||||||||
Loans held for investment(1) | 1,115,768 | 220,722 | 460,884 | 899,715 | 485,799 | 581,290 | — | 3,764,178 | |||||||||||||||||||||||
Total interest-earning assets | 2,110,874 | 248,356 | 511,072 | 1,088,400 | 680,723 | 1,105,372 | — | 5,744,797 | |||||||||||||||||||||||
Non-interest-earning assets | — | — | — | — | — | — | 481,804 | 481,804 | |||||||||||||||||||||||
Total assets | $ | 2,110,874 | $ | 248,356 | $ | 511,072 | $ | 1,088,400 | $ | 680,723 | $ | 1,105,372 | $ | 481,804 | $ | 6,226,601 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||
NOW accounts(2) | $ | 501,370 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 501,370 | |||||||||||||||
Statement savings accounts(2) | 303,872 | — | — | — | — | — | — | 303,872 | |||||||||||||||||||||||
Money market accounts(2) | 1,513,547 | — | — | — | — | — | — | 1,513,547 | |||||||||||||||||||||||
Certificates of deposit | 212,897 | 238,074 | 326,994 | 287,728 | 31,537 | 33 | — | 1,097,263 | |||||||||||||||||||||||
FHLB advances | 801,833 | — | — | 51,500 | — | 5,590 | — | 858,923 | |||||||||||||||||||||||
Long-term debt(3) | 60,122 | — | — | — | — | 65,000 | — | 125,122 | |||||||||||||||||||||||
Total interest-bearing liabilities | 3,393,641 | 238,074 | 326,994 | 339,228 | 31,537 | 70,623 | — | 4,400,097 | |||||||||||||||||||||||
Non-interest bearing liabilities | — | — | — | — | — | — | 1,240,476 | 1,240,476 | |||||||||||||||||||||||
Equity | — | — | — | — | — | — | 586,028 | 586,028 | |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,393,641 | $ | 238,074 | $ | 326,994 | $ | 339,228 | $ | 31,537 | $ | 70,623 | $ | 1,826,504 | $ | 6,226,601 | |||||||||||||||
Interest sensitivity gap | (1,282,767 | ) | 10,282 | 184,078 | 749,172 | 649,186 | 1,034,749 | ||||||||||||||||||||||||
Cumulative interest sensitivity gap | $ | (1,282,767 | ) | $ | (1,272,485 | ) | $ | (1,088,407 | ) | $ | (339,235 | ) | $ | 309,951 | $ | 1,344,700 | |||||||||||||||
Cumulative interest sensitivity gap as a percentage of total assets | (21 | )% | (20 | )% | (17 | )% | (5 | )% | 5 | % | 22 | % | |||||||||||||||||||
Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities | 62 | % | 65 | % | 73 | % | 92 | % | 107 | % | 131 | % |
(1) | Based on contractual maturities, repricing dates and forecasted principal payments assuming normal amortization and, where applicable, prepayments. |
(2) | Assumes 100% of interest-bearing non-maturity deposits are subject to repricing in three months or less. |
(3) | Based on contractual maturity. |
September 30, 2016 | December 31, 2015 | |||||||||||
Change in Interest Rates (basis points) (1) | Percentage Change | |||||||||||
Net Interest Income (2) | Net Portfolio Value (3) | Net Interest Income (1) | Net Portfolio Value (2) | |||||||||
+200 | 0.0 | % | (1.3 | )% | (5.1 | )% | (10.0 | )% | ||||
+100 | (0.2 | ) | 2.0 | (2.6 | ) | (2.4 | ) | |||||
-100 | (1.4 | ) | (11.1 | ) | 0.1 | (8.3 | ) | |||||
-200 | (3.6 | )% | (19.6 | )% | (4.4 | )% | (19.4 | )% |
(1) | For purposes of our model, we assume interest rates will not go below zero. This "floor" limits the effect of a potential negative interest rate shock in a low rate environment like the one we are currently experiencing. |
(2) | This percentage change represents the impact to net interest income for a one-year period, assuming there is no change in the structure of the balance sheet. |
(3) | This percentage change represents the impact to the net present value of equity, assuming there is no change in the structure of the balance sheet. |
ITEM 4 | CONTROLS AND PROCEDURES |
ITEM 1 | LEGAL PROCEEDINGS |
ITEM 1A | RISK FACTORS |
• | Loss of or damage to key customer relationships; |
• | Distraction of management from ordinary course operations; |
• | Costs incurred in the process of vetting potential acquisition candidates which we may not recoup; |
• | Loss of key employees or significant numbers of employees; |
• | The potential of litigation from prior employers relating to the portability of their employees; |
• | Costs associated with opening new offices and systems expansion to accommodate our growth in employees; |
• | Increased costs related to hiring, training and providing initial compensation to new employees, which may not be recouped if those employees do not remain with us long enough to be profitable; |
• | Challenges in complying with legal and regulatory requirements in new jurisdictions; |
• | Inadequacies in our computer systems, accounting policies and procedures, and management personnel (some of which may be difficult to detect until other problems become manifest); |
• | Challenges integrating different systems, practices, and customer relationships; |
• | An inability to attract and retain personnel whose experience and (in certain circumstances) business relationships promote the achievement of our strategic goals; and |
• | Increasing volatility in our operating results as we progress through these initiatives. |
• | Diversion of management's attention from normal daily operations of the business; |
• | Difficulties in integrating the operations, technologies, and personnel of the acquired companies; |
• | Difficulties in implementing, upgrading and maintaining our internal controls over financial reporting and our disclosure controls and procedures; |
• | Inability to maintain the key business relationships and the reputations of acquired businesses; |
• | Entry into markets in which we have limited or no prior experience and in which competitors have stronger market positions; |
• | Potential responsibility for the liabilities of acquired businesses; |
• | Inability to maintain our internal standards, procedures and policies at the acquired companies or businesses; and |
• | Potential loss of key employees of the acquired companies. |
• | Reduced cash flows and capital resources, as we are required to make cash advances to meet contractual obligations to investors, process foreclosures, and maintain, repair and market foreclosed properties; |
• | Declining mortgage servicing fee revenues because we recognize these revenues only upon collection; |
• | Increasing loan servicing costs; |
• | Declining fair value on our mortgage servicing rights; and |
• | Declining fair values and liquidity of securities held in our investment portfolio that are collateralized by mortgage obligations. |
• | Increases in interest rates may limit our ability to make loans, decrease our net interest income and noninterest income, reduce demand for loans, increase the cost of deposits and otherwise negatively impact our financial situation; |
• | Volatility in mortgage markets, which is driven by factors outside of our control such as interest rate changes, housing inventory and general economic conditions, may negatively impact our ability to originate loans and change the fair value of our existing loans and servicing rights; |
• | Changes in regulations may negatively impact the Company or the Bank and may limit our ability to offer certain products or services or may increase our costs of compliance; |
• | Increased costs from growth through acquisition could exceed the income growth anticipated from these opportunities, especially in the short term as these acquisitions are integrated into our business; |
• | Increased costs for controls over data confidentiality, integrity, and availability due to growth or to strengthen the security profile of our computer systems and computer networks; |
• | Changes in government-sponsored enterprises and their ability to insure or to buy our loans in the secondary market may result in significant changes in our ability to recognize income on sale of our loans to third parties; |
• | Competition in the mortgage market industry may drive down the interest rates we are able to offer on our mortgages, which will negatively impact our net interest income; |
• | Changes in the cost structures and fees of government-sponsored enterprises to whom we sell many of these loans may compress our margins and reduce our net income and profitability; and |
• | Our hedging strategies to offset risks related to interest rate changes may not prove to be successful and may result in unanticipated losses for the Company. |
• | Market developments may affect consumer confidence levels and may cause adverse changes in payment patterns, resulting in increased delinquencies and default rates on loans and other credit facilities; |
• | The models we use to assess the creditworthiness of our customers may prove less reliable than we had anticipated in predicting future behaviors which may impair our ability to make good underwriting decisions; |
• | If our forecasts of economic conditions and other economic predictions are not accurate, we may face challenges in accurately estimating the ability of our borrowers to repay their loans; |
• | Changes in U.S. tax policy may limit our ability to pursue growth and return profits to shareholders; and |
• | Future political developments and fiscal policy decisions may create uncertainty in the marketplace. |
• | Training and educating our employees and independent contractors regarding our obligations relating to confidential information; |
• | Monitoring changes in state or federal privacy and compliance requirements; |
• | Drafting and enforcing appropriate contractual provisions into any contract that raises proprietary and confidentiality issues; |
• | Maintaining secure storage facilities and protocols for tangible records; |
• | Physically and technologically securing access to electronic information; and |
• | Performing vulnerability scanning and penetration testing of our computer systems and computer networks to identify potential weaknesses and to develop mitigating controls. |
• | A classified board of directors so that only approximately one third of our board of directors is elected each year; |
• | Elimination of cumulative voting in the election of directors; |
• | Procedures for advance notification of shareholder nominations and proposals; |
• | The ability of our board of directors to amend our bylaws without shareholder approval; and |
• | The ability of our board of directors to issue shares of preferred stock without shareholder approval upon the terms and conditions and with the rights, privileges and preferences as the board of directors may determine. |
ITEM 2 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3 | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4 | MINE SAFETY DISCLOSURES |
ITEM 5 | OTHER INFORMATION |
ITEM 6 | EXHIBITS |
Exhibit Number | Description | |
12.1 | Ratio of Earnings to Fixed Charges | |
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
32(1) | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. | |
101.INS(2)(3) | XBRL Instance Document | |
101.SCH (2) | XBRL Taxonomy Extension Schema Document | |
101.CAL (2) | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF (2) | XBRL Taxonomy Extension Label Linkbase Document | |
101.LAB (2) | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.PRE (2) | XBRL Taxonomy Extension Definitions Linkbase Document |
(1) | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
(2) | As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections. |
(3) | Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and 2015, (ii) the Consolidated Statements of Financial Condition as of September 30, 2016 and December 31, 2015, (iii) the Consolidated Statements of Shareholders’ Equity for the nine months ended September 30, 2016 and 2015, and Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015, (iv) the Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015, and (v) the Notes to Consolidated Financial Statements. |
HomeStreet, Inc. | ||
By: | /s/ Mark K. Mason | |
Mark K. Mason | ||
President and Chief Executive Officer |
HomeStreet, Inc. | ||
By: | /s/ Melba A. Bartels | |
Melba A. Bartels | ||
Senior Executive Vice President and Chief Financial Officer | ||
Nine Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2015 | 2014 | 2013 | ||||||||||||||
Fixed Charges | |||||||||||||||||||
Interest expense, excluding deposits | $ | 7,320 | $ | 3,422 | $ | 4,975 | $ | 3,193 | $ | 4,116 | |||||||||
Amortization of premiums | 2,940 | 914 | 3,461 | 1,068 | 589 | ||||||||||||||
Estimated interest on rental expense (1) | 6,223 | 4,790 | 6,628 | 5,049 | 3,762 | ||||||||||||||
Preferred stock dividends | — | — | — | — | — | ||||||||||||||
Total Fixed Charges | $ | 16,483 | $ | 9,126 | $ | 15,064 | $ | 9,310 | $ | 8,467 | |||||||||
Earnings | |||||||||||||||||||
Income before income taxes | $ | 87,371 | $ | 46,383 | $ | 56,907 | $ | 33,315 | $ | 34,794 | |||||||||
Add: distributed income of equity investees | 1,827 | 2,100 | 2,512 | 1,306 | 1,656 | ||||||||||||||
Add: fixed charges | 16,483 | 9,126 | 15,064 | 9,310 | 8,467 | ||||||||||||||
Less: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges | 2,474 | 1,428 | 1,624 | 101 | 704 | ||||||||||||||
Total earnings | $ | 103,207 | $ | 56,181 | $ | 72,859 | $ | 43,830 | $ | 44,213 | |||||||||
Ratio of Earnings to fixed charges, excluding interest on deposits | 6.26 | 6.16 | 4.84 | 4.71 | 5.22 |
Nine Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2015 | 2014 | 2013 | ||||||||||||||
Fixed Charges | |||||||||||||||||||
Interest expense, including deposits | $ | 20,700 | $ | 12,078 | $ | 16,776 | $ | 12,624 | $ | 14,532 | |||||||||
Amortization of premiums | 2,940 | 914 | 3,461 | 1,068 | 589 | ||||||||||||||
Estimated interest on rental expense (1) | 6,223 | 4,790 | 6,628 | 5,049 | 3,762 | ||||||||||||||
Preferred stock dividends | — | — | — | — | — | ||||||||||||||
Total Fixed Charges | $ | 29,863 | $ | 17,782 | $ | 26,865 | $ | 18,741 | $ | 18,883 | |||||||||
Earnings | |||||||||||||||||||
Income before income taxes | $ | 87,371 | $ | 46,383 | $ | 56,907 | $ | 33,315 | $ | 34,794 | |||||||||
Add: distributed income of equity investees | 1,827 | 2,100 | 2,512 | 1,306 | 1,656 | ||||||||||||||
Add: fixed charges | 29,863 | 17,782 | 26,865 | 18,741 | 18,883 | ||||||||||||||
Subtract: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges | 2,474 | 1,428 | 1,624 | 101 | 704 | ||||||||||||||
Total earnings | $ | 116,587 | $ | 64,837 | $ | 84,660 | $ | 53,261 | $ | 54,629 | |||||||||
Ratio of Earnings to fixed charges, including interest on deposits | 3.90 | 3.65 | 3.15 | 2.84 | 2.89 |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2016 of HomeStreet, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | November 8, 2016 | By: | /s/ Mark K. Mason |
Mark K. Mason | |||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2016 of HomeStreet, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | November 8, 2016 | By: | /s/ Melba A. Bartels |
Melba A. Bartels | |||
Senior Executive Vice President and Chief Financial Officer | |||
1. | The Quarterly Report on Form 10-Q for the period ended September 30, 2016 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | November 8, 2016 | By: | /s/ Mark K. Mason |
Mark K. Mason | |||
President and Chief Executive Officer |
1. | The Quarterly Report on Form 10-Q for the period ended September 30, 2016 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | November 8, 2016 | By: | /s/ Melba A. Bartels |
Melba A. Bartels | |||
Senior Executive Vice President and Chief Financial Officer | |||
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Nov. 02, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HomeStreet, Inc. | |
Entity Central Index Key | 0001518715 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 24,836,124.6 |
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Statement of Financial Position [Abstract] | ||||
Interest-bearing instruments | $ 8,580 | $ 2,079 | ||
Investment securities held at fair value (AFS) | 949,075 | 541,151 | ||
Fair value of loans held for sale | 834,144 | 632,273 | ||
Allowance for losses on loans held for investment | 33,975 | 29,278 | ||
Fair value of loans held for investment | [1] | 20,547 | 21,544 | |
Fair value of single family MSR | $ 149,910 | $ 156,604 | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 | ||
Preferred stock, shares authorized | 10,000 | 10,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | ||
Common stock, shares authorized | 160,000,000 | 160,000,000 | ||
Common stock, shares issued | 24,833,008 | 22,076,534 | ||
Common stock, shares outstanding | 24,833,008 | 22,076,534 | ||
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Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Interest income: | ||||||
Loans | $ 49,752 | $ 41,012 | $ 139,748 | $ 111,603 | ||
Investment securities | 5,476 | 2,754 | 12,531 | 8,426 | ||
Other | 102 | 224 | 396 | 647 | ||
Total interest income | 55,330 | 43,990 | 152,675 | 120,676 | ||
Interest expense: | ||||||
Deposits | 5,362 | 3,069 | 13,380 | 8,656 | ||
Federal Home Loan Bank advances | 1,605 | 958 | 4,486 | 2,476 | ||
Federal funds purchased and securities sold under agreements to repurchase | 2 | 0 | 2 | 8 | ||
Long-term debt | 1,440 | 278 | 2,574 | 815 | ||
Other | 119 | 51 | 258 | 123 | ||
Total interest expense | 8,528 | 4,356 | 20,700 | 12,078 | ||
Net interest income | [1] | 46,802 | 39,634 | 131,975 | 108,598 | |
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 | ||
Net interest income after provision for credit losses | 45,552 | 38,934 | 128,225 | 104,398 | ||
Noninterest income: | ||||||
Net gain on mortgage loan origination and sale activities | 92,600 | 57,885 | 239,493 | 189,746 | ||
Mortgage servicing income | 14,544 | 4,768 | 35,855 | 10,896 | ||
Income from WMS Series LLC | 1,174 | 380 | 2,474 | 1,428 | ||
Depositor and other retail banking fees | 1,744 | 1,701 | 4,991 | 4,239 | ||
Insurance agency commissions | 441 | 477 | 1,205 | 1,183 | ||
Gain on sale of investment securities available for sale | 48 | 1,002 | 145 | 1,002 | ||
Bargain purchase gain | 0 | 796 | 0 | 7,345 | ||
Other | 1,194 | 459 | 1,766 | (11) | ||
Total noninterest income | 111,745 | 67,468 | 285,929 | 215,828 | ||
Noninterest expense: | ||||||
Salaries and related costs | 79,164 | 60,991 | 221,615 | 180,238 | ||
General and administrative | 14,949 | 14,342 | 47,210 | 41,122 | ||
Amortization of core deposit intangibles | 579 | 527 | 1,636 | 1,410 | ||
Legal | 639 | 868 | 1,687 | 1,912 | ||
Consulting | 1,390 | 166 | 4,239 | 6,544 | ||
Federal Deposit Insurance Corporation assessments | 919 | 504 | 2,419 | 1,890 | ||
Occupancy | 7,740 | 6,077 | 22,408 | 18,024 | ||
Information services | 7,876 | 8,159 | 23,857 | 21,993 | ||
Net cost from operation and sale of other real estate owned | 1,143 | 392 | 1,712 | 710 | ||
Total noninterest expense | 114,399 | 92,026 | 326,783 | 273,843 | ||
Income before income taxes | 42,898 | 14,376 | 87,371 | 46,383 | ||
Income tax expense | 15,197 | 4,415 | 31,514 | 13,742 | ||
NET INCOME | $ 27,701 | $ 9,961 | $ 55,857 | $ 32,641 | ||
Basic income per share (in dollars per share) | $ 1.12 | $ 0.45 | $ 2.29 | $ 1.60 | ||
Diluted income per share (in dollars per share) | $ 1.11 | $ 0.45 | $ 2.27 | $ 1.58 | ||
Basic weighted average number of shares outstanding | 24,811,169 | 22,035,317 | 24,398,683 | 20,407,386 | ||
Diluted weighted average number of shares outstanding | 24,996,747 | 22,291,810 | 24,595,348 | 20,646,540 | ||
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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 27,701 | $ 9,961 | $ 55,857 | $ 32,641 |
Unrealized gain (loss) on investment securities available for sale: | ||||
Unrealized holding (loss) gain arising during the period, net of tax (benefit) expense of $(962) and $1,576 for the three months ended September 30, 2016 and 2015, and $5,640 and $430 for the nine months ended September 30, 2016 and 2015, respectively | (1,786) | 2,926 | 10,474 | 798 |
Reclassification adjustment for net gains included in net income, net of tax expense of $17 and $351 for the three months ended September 30, 2016 and 2015, and $51 and $351 for the nine months ended September 30, 2016 and 2015, respectively | (31) | (651) | (94) | (651) |
Other comprehensive income (loss) | (1,817) | 2,275 | 10,380 | 147 |
Comprehensive income | $ 25,884 | $ 12,236 | $ 66,237 | $ 32,788 |
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Statement of Comprehensive Income [Abstract] | ||||
Tax expense on unrealized holding gain on securities | $ (962) | $ 1,576 | $ 5,640 | $ 430 |
Tax expense on reclassification adjustment for net gain on securities included in net income | $ 17 | $ 351 | $ 51 | $ 351 |
Summary of Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Text Block) | NOTE 1–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: HomeStreet, Inc. and its wholly owned subsidiaries (the “Company”) is a diversified financial services company serving customers primarily in the western United States, including Hawaii. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. The consolidated financial statements include the accounts of HomeStreet, Inc. and its wholly owned subsidiaries, HomeStreet Capital Corporation and HomeStreet Bank (the “Bank”), and the Bank’s subsidiaries, HomeStreet/WMS, Inc., HomeStreet Reinsurance, Ltd., Continental Escrow Company, HS Properties, Inc. and Union Street Holdings LLC. HomeStreet Bank was formed in 1986 and is a state-chartered commercial bank. The Company’s accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Inter-company balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. These estimates that require application of management's most difficult, subjective or complex judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. Management has made significant estimates in several areas, including the fair value of assets acquired and liabilities assumed in business combinations (Note 2, Business Combinations), allowance for credit losses (Note 4, Loans and Credit Quality), valuation of residential mortgage servicing rights and loans held for sale (Note 8, Mortgage Banking Operations), valuation of certain loans held for investment (Note 4, Loans and Credit Quality), valuation of investment securities (Note 3, Investment Securities), and valuation of derivatives (Note 7, Derivatives and Hedging Activities). Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results of the periods presented. These adjustments are of a normal recurring mature, unless otherwise disclosed in this Form 10-Q.The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. The interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission (“2015 Annual Report on Form 10-K”). Recent Accounting Developments On August 26, 2016, the FASB issued Accounting Standards Update ("ASU") 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU were issued to reduce diversity in how certain cash receipts and payments are presented and classified in the statement of cash flows in eight specific areas. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and should be applied using a retrospective transition method to each period presented. Early application was permitted upon issuance of the ASU. The Company is currently evaluating the impact of this ASU and the Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the current expected credit losses (CECL) on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments to this ASU require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in this ASU eliminate the probable initial recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The amendments to this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in this ASU should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The Company is currently evaluating the impact of this ASU and the Company expects this ASU to have a material impact on the Company’s consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. This new accounting standard simplifies several areas of accounting for share-based payment transactions, including tax provision, classification in the cash-flow statement, forfeitures, and statutory tax withholding requirements. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Early application was permitted upon issuance of the ASU. The Company determined to early adopt the provisions of ASU 2016-09 during the second quarter of 2016 and determined the new standard did not have a material impact on the Company's Consolidated Financial Statements. On February 25 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this ASU require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. This ASU simplifies the accounting for sale and leaseback transactions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application was permitted upon issuance of the ASU. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. The ASU was issued to simplify the accounting for measurement period adjustments for business combinations. The amendments in the ASU require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this ASU were effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company adopted this guidance during the first quarter of 2016 and applied it prospectively to adjustments to provisional amounts. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU was issued to simplify the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented on the statement of financial condition as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. This guidance became effective for the Company for the interim and annual periods beginning after December 15, 2015, and early adoption was permitted for financial statements that had not been previously issued. The guidance is required to be applied on a retrospective basis to each individual period presented on the statement of financial condition. The Company adopted this guidance during the first quarter of 2016 and determined there was no material impact on the Company’s consolidated financial statements. On April 15, 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. This guidance became effective for the Company for the interim and annual periods beginning after December 15, 2015; early adoption was permitted. The Company could elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company adopted this guidance during the first quarter of 2016 and determined there was no material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation. The ASU provides an additional requirement for a limited partnership or similar entity to qualify as a voting interest entity, amending the criteria for consolidating such an entity and eliminating the deferral provided under previous guidance for investment companies. In addition, the new guidance amends the criteria for evaluating fees paid to a decision maker or service provider as a variable interest and amends the criteria for evaluating the effect of fee arrangements and related parties on a variable interest entity ("VIE") primary beneficiary determination. This guidance was effective for interim and annual reporting periods beginning after December 15, 2015. The Company adopted this guidance during the first quarter of 2016 and determined there was no material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU clarifies the principles for recognizing revenue from contracts with customers. On August 12, 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. On March 17, 2016, the FASB issued Accounting Standards Update 2016-08 to clarify the implementation guidance on principal versus agent considerations. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | NOTE 2–BUSINESS COMBINATIONS: Recent Acquisition Activity On August 12, 2016, the Company completed its acquisition of certain assets and liabilities, including two branches in Lake Oswego, Oregon from The Bank of Oswego. This acquisition increases HomeStreet’s network of branches in the Portland, Oregon metropolitan area to a total of five retail deposit branches. On February 1, 2016, the Company completed its acquisition of Orange County Business Bank ("OCBB") located in Irvine, California through the merger of OCBB with and into HomeStreet Bank with HomeStreet Bank as the surviving subsidiary. The purchase price of this acquisition was $55.9 million. OCBB shareholders as of the effective time received merger consideration equal to 0.5206 shares of HomeStreet common stock, and $1.1641 in cash upon the surrender of their OCBB shares, which resulted in the issuance of 2,459,408 shares of HomeStreet common stock. The provisional application of the acquisition method of accounting resulted in goodwill of $8.3 million. The primary objective for this acquisition is to grow our Commercial and Consumer Banking segment. Along with one de novo branch opened in California during the quarter, adding Orange County Business Bank’s branch brings HomeStreet’s Southern California retail deposit branch network to eleven locations. On December 11, 2015, the Company acquired a former AmericanWest Bank retail deposit branch and certain related assets located in Dayton, Washington. This acquisition increases HomeStreet’s network of branches in eastern Washington to a total of five retail deposit branches. The Company purchased the branch from Banner Bank, which had recently acquired AmericanWest Bank. The purchase resulted in a bargain purchase gain of $381 thousand. Simplicity Acquisition On March 1, 2015, the Company completed its acquisition of Simplicity Bancorp, Inc., a Maryland corporation (“Simplicity”) and Simplicity’s wholly owned subsidiary, Simplicity Bank. Simplicity’s principal business activities prior to the merger were attracting retail deposits from the general public, originating or purchasing loans, primarily loans secured by first mortgages on owner-occupied, one-to-four family residences and multifamily residences located in Southern California and, to a lesser extent, commercial real estate, automobile and other consumer loans; and the origination and sale of fixed-rate, conforming, one-to-four family residential real estate loans in the secondary market, usually with servicing retained. The primary objective for this acquisition was to grow our Commercial and Consumer Banking segment by expanding the business of the former Simplicity branches by offering additional banking and lending products to former Simplicity customers as well as new customers. The acquisition was accomplished by the merger of Simplicity with and into HomeStreet, Inc. with HomeStreet, Inc. as the surviving corporation, followed by the merger of Simplicity Bank with and into HomeStreet Bank with HomeStreet Bank as the surviving subsidiary. The results of operations of Simplicity are included in the consolidated results of operations from the date of acquisition. At the closing, there were 7,180,005 shares of Simplicity common stock, par value $0.01, outstanding, all of which were cancelled and exchanged for an equal number of shares of HomeStreet common stock, no par value, issued to Simplicity’s stockholders. In connection with the merger, all outstanding options to purchase Simplicity common stock were cancelled in exchange for a cash payment equal to the difference between a calculated price of HomeStreet common stock and the exercise price of the option, provided, however, that any options that were out-of-the-money at the time of closing were cancelled for no consideration. The calculated price of $17.53 was determined by averaging the closing price of HomeStreet common stock for the 10 trading days prior to but not including the 5th business day before the closing date. The aggregate consideration paid by us in the Simplicity acquisition was approximately $471 thousand in cash and 7,180,005 shares of HomeStreet common stock with a fair value of approximately $124.2 million as of the acquisition date. We used current liquidity sources to fund the cash consideration. The acquisition was accounted for under the acquisition method of accounting pursuant to ASC 805, Business Combinations. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of acquisition date. The Company made significant estimates and exercised significant judgment in estimating the fair values and accounting for such acquired assets and assumed liabilities. A summary of the consideration paid, the assets acquired and liabilities assumed in the merger are presented below:
The application of the acquisition method of accounting resulted in a bargain purchase gain of $7.3 million which was reported as a component of noninterest income on our consolidated statements of operations. A substantial portion of the assets acquired from Simplicity were mortgage-related assets, which generally decrease in value as interest rates rise and increase in value as interest rates fall. The bargain purchase gain was driven largely by a substantial decline in long-term interest rates between the period shortly after our announcement of the Simplicity acquisition and its closing, which resulted in an increase in the fair value of the acquired mortgage assets and the overall net fair value of assets acquired. In addition, the Company believes it was able to acquire Simplicity for less than the fair value of its net assets due to Simplicity’s stock trading below its book value for an extended period of time prior to the announcement of the acquisition. The Company negotiated a purchase price per share for Simplicity that was above the prevailing stock price thereby representing a premium to the shareholders. The stock consideration transferred was based on a 1:1 stock conversion ratio. The price of the Company’s shares declined between the time the deal was announced and when it closed which also attributed to the bargain purchase gain. The acquisition of Simplicity by the Company was approved by Simplicity’s shareholders. For tax purposes, the bargain purchase gain is a non-taxable event. The operations of Simplicity are included in the Company's operating results as of the acquisition date of March 1, 2015. Acquisition-related costs were expensed as incurred in noninterest expense as acquisition and integration costs. The following table provides a breakout of acquisition-related expense for the nine months ended September 30, 2015:
The $664.1 million estimated fair value of loans acquired from Simplicity was determined by utilizing a discounted cash flow methodology considering credit and interest rate risk. Cash flows were determined by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on the Company’s weighted average cost of capital. The discount for acquired loans from Simplicity was $16.6 million as of the acquisition date. A core deposit intangible (“CDI”) of $7.5 million was recognized related to the core deposits acquired from Simplicity. A discounted cash flow method was used to estimate the fair value of the certificates of deposit. The CDI is amortized over its estimated useful life of approximately ten years using an accelerated method and will be reviewed for impairment quarterly. The fair value of savings and transaction deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. A discounted cash flow method was used to estimate the fair value of the certificates of deposit. A premium, which will be amortized over the contractual life of the deposits, of $4.0 million was recorded for certificates of deposit. The fair value of Federal Home Loan Bank advances was estimated using a discounted cash flow method. A premium, which will be amortized over the contractual life of the advances, of $855 thousand was recorded for the Federal Home Loan Bank advances. The Company determined that meeting the disclosure requirements related to the amounts of revenues and earnings of the acquiree included in the consolidated statements of operations since the acquisition date is impracticable. The financial activity and operating results of the acquiree were commingled with the Company’s financial activity and operating results as of the acquisition date. Unaudited Pro Forma Results of Operations The following table presents our unaudited pro forma results of operations for the periods presented as if the Simplicity acquisition had been completed on January 1, 2014. The unaudited pro forma results of operations include the historical accounts of Simplicity and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the Simplicity acquisition been completed at the beginning of 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.
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Investment Securities Available for Sale |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES AVAILABLE FOR SALE | NOTE 3–INVESTMENT SECURITIES: The following table sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale.
Mortgage-backed securities ("MBS") and collateralized mortgage obligations ("CMO") represent securities issued by government sponsored enterprises ("GSEs"). Each of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by revenues from the specific project being financed) issued by various municipal corporations. As of September 30, 2016 and December 31, 2015, all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon external ratings where available and, where not available, based upon internal ratings which correspond to ratings as defined by Standard and Poor’s Rating Services (“S&P”) or Moody’s Investors Services (“Moody’s”). As of September 30, 2016 and December 31, 2015, substantially all securities held had ratings available by external ratings agencies. Investment securities available for sale that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position.
The Company has evaluated securities available for sale that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of September 30, 2016 and December 31, 2015. In addition, as of September 30, 2016 and December 31, 2015, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. The following tables present the fair value of investment securities available for sale by contractual maturity along with the associated contractual yield for the periods indicated below. Contractual maturities for mortgage-backed securities and collateralized mortgage obligations as presented exclude the effect of expected prepayments. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature. The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis.
Sales of investment securities available for sale were as follows.
The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:
The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little risk. There were no securities pledged under repurchase agreements at September 30, 2016 and December 31, 2015. Tax-exempt interest income on securities available for sale totaling $1.8 million and $968 thousand for the three months ended September 30, 2016 and 2015, respectively, and $4.3 million and $2.6 million for the nine months ended September 30, 2016 and 2015, respectively, was recorded in the Company's consolidated statements of operations. |
Loans and Credit Quality |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND CREDIT QUALITY | NOTE 4–LOANS AND CREDIT QUALITY: For a detailed discussion of loans and credit quality, including accounting policies and the methodology used to estimate the allowance for credit losses, see Note 1, Summary of Significant Accounting Policies, and Note 5, Loans and Credit Quality, within our 2015 Annual Report on Form 10-K. The Company's portfolio of loans held for investment is divided into two portfolio segments, consumer loans and commercial loans, which are the same segments used to determine the allowance for loan losses. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: single family and home equity and other loans within the consumer loan portfolio segment and commercial real estate, multifamily, construction/land development and commercial business loans within the commercial loan portfolio segment. Loans held for investment consist of the following:
Loans in the amount of $1.59 billion and $1.73 billion at September 30, 2016 and December 31, 2015, respectively, were pledged to secure borrowings from the FHLB as part of our liquidity management strategy. Additionally, loans totaling $674.4 million and $572.0 million at September 30, 2016 and December 31, 2015, respectively, were pledged to secure borrowings from the Federal Reserve Bank. The FHLB and Federal Reserve Bank do not have the right to sell or re-pledge these loans. Credit Risk Concentrations Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Loans held for investment are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At September 30, 2016, we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and commercial real estate within the state of Washington, which represented 14.5% and 14.6% of the total portfolio, respectively. Additionally, we had a concentration representing 10% or more by state and property type for the single family loan class within the state of California, which represented 11.6% of the total portfolio. At December 31, 2015 we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family, commercial real estate and construction/land development within the state of Washington, which represented 18.0%, 14.7% and 11.3% of the total portfolio, respectively. Additionally, we had a concentration representing 10% or more by state and property type for the single family loan class within the state of California, which represented 13.6% of the total portfolio. Credit Quality Management considers the level of allowance for loan losses to be appropriate to cover credit losses inherent within the loans held for investment portfolio as of September 30, 2016. In addition to the allowance for loan losses, the Company maintains a separate allowance for losses related to unfunded loan commitments, and this amount is included in accounts payable and other liabilities on the consolidated statements of financial condition. Collectively, these allowances are referred to as the allowance for credit losses. For further information on the policies that govern the determination of the allowance for loan losses levels, see Note 1, Summary of Significant Accounting Policies, within our 2015 Annual Report on Form 10-K. Activity in the allowance for credit losses was as follows.
Activity in the allowance for credit losses by loan portfolio and loan class was as follows.
The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology.
Impaired Loans The following tables present impaired loans by loan portfolio segment and loan class.
The following table provides the average recorded investment in impaired loans by portfolio segment and class.
Credit Quality Indicators Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with applicable bank regulations. The Company's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The Company differentiates its lending portfolios into homogeneous loans and non-homogeneous loans. The 10 risk rating categories can be generally described by the following groupings for non-homogeneous loans: Pass. We have five pass risk ratings which represent a level of credit quality that ranges from no well-defined deficiency or weakness to some noted weakness, however the risk of default on any loan classified as pass is expected to be remote. The five pass risk ratings are described below: Minimal Risk. A minimal risk loan, risk rated 1-Exceptional, is to a borrower of the highest quality. The borrower has an unquestioned ability to produce consistent profits and service all obligations and can absorb severe market disturbances with little or no difficulty. Low Risk. A low risk loan, risk rated 2-Superior, is similar in characteristics to a minimal risk loan. Balance sheet and operations are slightly more prone to fluctuations within the business cycle; however, debt capacity and debt service coverage remains strong. The borrower will have a strong demonstrated ability to produce profits and absorb market disturbances. Modest Risk. A modest risk loan, risk rated 3-Excellent, is a desirable loan with excellent sources of repayment and no currently identifiable risk associated with collection. The borrower exhibits a very strong capacity to repay the loan in accordance with the repayment agreement. The borrower may be susceptible to economic cycles, but will have cash reserves to weather these cycles. Average Risk. An average risk loan, risk rated 4-Good, is an attractive loan with sound sources of repayment and no material collection or repayment weakness evident. The borrower has an acceptable capacity to pay in accordance with the agreement. The borrower is susceptible to economic cycles and more efficient competition, but should have modest reserves sufficient to survive all but the most severe downturns or major setbacks. Acceptable Risk. An acceptable risk loan, risk rated 5-Acceptable, is a loan with lower than average, but still acceptable credit risk. These borrowers may have higher leverage, less certain but viable repayment sources, have limited financial reserves and may possess weaknesses that can be adequately mitigated through collateral, structural or credit enhancement. The borrower is susceptible to economic cycles and is less resilient to negative market forces or financial events. Reserves may be insufficient to survive a modest downturn. Watch. A watch loan, risk rated 6-Watch, is still pass-rated, but represents the lowest level of acceptable risk due to an emerging risk element or declining performance trend. Watch ratings are expected to be temporary, with issues resolved or manifested to the extent that a higher or lower rating would be appropriate. The borrower should have a plausible plan, with reasonable certainty of success, to correct the problems in a short period of time. Borrowers rated watch are characterized by elements of uncertainty, such as:
Special Mention. A special mention loan, risk rated 7-Special Mention, has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or the institutions credit position at some future date. They contain unfavorable characteristics and are generally undesirable. Loans in this category are currently protected but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of a substandard classification. A special mention loan has potential weaknesses, which if not checked or corrected, weaken the loan or inadequately protect the Company’s position at some future date. Such weaknesses include:
Substandard. A substandard loan, risk rated 8-Substandard, is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. Loans are classified as substandard when they have unsatisfactory characteristics causing unacceptable levels of risk. A substandard loan normally has one or more well-defined weaknesses that could jeopardize repayment of the loan. The likely need to liquidate assets to correct the problem, rather than repayment from successful operations is the key distinction between special mention and substandard. The following are examples of well-defined weaknesses:
Doubtful. Loans classified as doubtful, risk rated 9-Doubtful, have all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work towards strengthening of the loan, classification as a loss (and immediate charge-off) is deferred until more exact status may be determined. Pending factors include proposed merger, acquisition, liquidation procedures, capital injection, and perfection of liens on additional collateral and refinancing plans. In certain circumstances, a doubtful rating will be temporary, while the Company is awaiting an updated collateral valuation. In these cases, once the collateral is valued and appropriate margin applied, the remaining un-collateralized portion will be charged-off. The remaining balance, properly margined, may then be upgraded to substandard, however must remain on non-accrual. Loss. Loans classified as loss, risk rated 10-Loss, are considered un-collectible and of such little value that the continuance as an active Company asset is not warranted. This rating does not mean that the loan has no recovery or salvage value, but rather that the loan should be charged-off now, even though partial or full recovery may be possible in the future. Impaired. Loans are classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement, without unreasonable delay. This generally includes all loans classified as nonaccrual and troubled debt restructurings. Impaired loans are risk rated for internal and regulatory rating purposes, but presented separately for clarification. Homogeneous loans maintain their original risk rating until they are greater than 30 days past due, and risk rating reclassification is based primarily on the past due status of the loan. The risk rating categories can be generally described by the following groupings for commercial and commercial real estate homogeneous loans: Watch. A homogeneous watch loan, risk rated 6, is 30-59 days past due from the required payment date at month-end. Special Mention. A homogeneous special mention loan, risk rated 7, is 60-89 days past due from the required payment date at month-end. Substandard. A homogeneous substandard loan, risk rated 8, is 90-179 days past due from the required payment date at month-end. Loss. A homogeneous loss loan, risk rated 10, is 180 days and more past due from the required payment date. These loans are generally charged-off in the month in which the 180 day time period elapses. The risk rating categories can be generally described by the following groupings for residential and home equity and other homogeneous loans: Watch. A homogeneous retail watch loan, risk rated 6, is 60-89 days past due from the required payment date at month-end. Substandard. A homogeneous retail substandard loan, risk rated 8, is 90-179 days past due from the required payment date at month-end. Loss. A homogeneous retail loss loan, risk rated 10, becomes past due 180 cumulative days from the contractual due date. These loans are generally charged-off in the month in which the 180 day period elapses. Residential and home equity loans modified in a troubled debt restructure are not considered homogeneous. The risk rating classification for such loans are based on the non-homogeneous definitions noted above. The following tables summarize designated loan grades by loan portfolio segment and loan class.
As of September 30, 2016 and December 31, 2015, none of the Company's loans were rated Doubtful or Loss. For a detailed discussion on credit quality, see Note 5, Loans and Credit Quality, within our 2015 Annual Report on Form 10-K. Nonaccrual and Past Due Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. Loans whose repayments are insured by the FHA or guaranteed by the VA are generally maintained on accrual status even if 90 days or more past due. The following table presents an aging analysis of past due loans by loan portfolio segment and loan class.
The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class.
The following tables present information about TDR activity during the periods presented.
The following tables present loans that were modified as TDRs within the previous 12 months and subsequently re-defaulted during the three and nine months ended September 30, 2016 and 2015, respectively. A TDR loan is considered re-defaulted when it becomes doubtful that the objectives of the modifications will be met, generally when a consumer loan TDR becomes 60 days or more past due on principal or interest payments or when a commercial loan TDR becomes 90 days or more past due on principal or interest payments.
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Deposits |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEPOSITS | NOTE 5–DEPOSITS: Deposit balances, including stated rates, were as follows.
Interest expense on deposits was as follows.
The weighted-average interest rates on certificates of deposit were 0.96% at both September 30, 2016 and December 31, 2015, respectively. Certificates of deposit outstanding mature as follows.
The aggregate amount of time deposits in denominations of $100 thousand or more at September 30, 2016 and December 31, 2015 was $523.4 million and $290.1 million, respectively. The aggregate amount of time deposits in denominations of more than $250 thousand at September 30, 2016 and December 31, 2015 was $78.1 million and $81.7 million, respectively. There were $243.6 million and $120.3 million of brokered deposits at September 30, 2016 and December 31, 2015, respectively. |
Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT: On May 26, 2016, the Company closed on a $65.0 million in aggregate principal amount of its 6.50% Senior Notes due 2026 (the “Senior Notes”) at an offering price of 100% plus accrued interest. The Company raised capital by issuing trust preferred securities during the period from 2005 through 2007 resulting in a debt balance of $61.9 million that remains outstanding at September 30, 2016. In connection with the issuance of trust preferred securities, HomeStreet, Inc. issued to HomeStreet Statutory Trust Junior Subordinated Deferrable Interest Debentures. The sole assets of the HomeStreet Statutory Trust are the Subordinated Debt Securities I, II, III, and IV. The Subordinated Debt Securities are as follows:
(1) Call options are exercisable at par. |
Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 7–DERIVATIVES AND HEDGING ACTIVITIES: To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as certain mortgage loans held for sale or MSRs, the Company utilizes derivatives, such as forward sale commitments, futures, option contracts, interest rate swaps and swaptions as risk management instruments in its hedging strategy. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. We held no derivatives designated as a fair value, cash flow or foreign currency hedge instrument at September 30, 2016 or December 31, 2015. Derivatives are reported at their respective fair values in the other assets or accounts payable and other liabilities line items on the consolidated statements of financial condition, with changes in fair value reflected in current period earnings. As permitted under U.S. GAAP, the Company nets derivative assets and liabilities when a legally enforceable master netting agreement exists between the Company and the derivative counterparty, which are documented under industry standard master agreements and credit support annexes. The Company's master netting agreements provide that following an uncured payment default or other event of default the non-defaulting party may promptly terminate all transactions between the parties and determine a net amount due to be paid to, or by, the defaulting party. An event of default may also occur under a credit support annex if a party fails to make a collateral delivery (which remains uncured following applicable notice and grace periods). The Company's right of offset requires that master netting agreements are legally enforceable and that the exercise of rights by the non-defaulting party under these agreements will not be stayed, or avoided under applicable law upon an event of default including bankruptcy, insolvency or similar proceeding. The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties is included in other assets on the Company's consolidated statements of financial condition. Any securities pledged to counterparties as collateral remain on the consolidated statement of financial condition. Refer to Note 3, Investment Securities, for further information on securities collateral pledged. At September 30, 2016 and December 31, 2015, the Company did not hold any collateral received from counterparties under derivative transactions. For further information on the policies that govern derivative and hedging activities, see Note 1, Summary of Significant Accounting Policies, and Note 11, Derivatives and Hedging Activities, within our 2015 Annual Report on Form 10-K. The notional amounts and fair values for derivatives consist of the following.
The following tables present gross and net information about derivative instruments.
The following table presents the net gain (loss) recognized on derivatives, including economic hedge derivatives, within the respective line items in the statement of operations for the periods indicated.
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Mortgage Banking Operations |
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Mortgage Banking [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE BANKING OPERATIONS | NOTE 8–MORTGAGE BANKING OPERATIONS: Loans held for sale consisted of the following.
Loans sold consisted of the following.
Gain on mortgage loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following.
The Company’s portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. Loans serviced for others are not included in the consolidated statements of financial condition as they are not assets of the Company. The composition of loans serviced for others is presented below at the unpaid principal balance.
The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, appraisal errors, early payment defaults and fraud. For further information on the Company's mortgage repurchase liability, see Note 9, Commitments, Guarantees and Contingencies, of this Form 10-Q. The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses.
The Company has agreements with investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $5.3 million and $9.6 million were recorded in other assets as of September 30, 2016 and December 31, 2015, respectively. When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company then records the loan on its consolidated statement of financial condition. At both September 30, 2016 and December 31, 2015, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated statements of financial condition totaled $29.0 million, with a corresponding amount recorded within accounts payable and other liabilities on the consolidated statements of financial condition. The recognition of previously sold loans does not impact the accounting for the previously recognized MSRs. Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following.
All MSRs are initially measured and recorded at fair value at the time loans are sold. Single family MSRs are subsequently carried at fair value with changes in fair value reflected in earnings in the periods in which the changes occur, while multifamily MSRs are subsequently carried at the lower of amortized cost or fair value. The fair value of MSRs is determined based on the price that would be received to sell the MSRs in an orderly transaction between market participants at the measurement date. The Company determines fair value using a valuation model that calculates the net present value of estimated future cash flows. Estimates of future cash flows include contractual servicing fees, ancillary income and costs of servicing, the timing of which are impacted by assumptions, primarily expected prepayment speeds and discount rates, which relate to the underlying performance of the loans. The initial fair value measurement of MSRs is adjusted up or down depending on whether the underlying loan pool interest rate is at a premium, discount or par. Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows.
Key economic assumptions and the sensitivity of the current fair value for single family MSRs to immediate adverse changes in those assumptions were as follows.
These sensitivities are hypothetical and subject to key assumptions of the underlying valuation model. As the table above demonstrates, the Company’s methodology for estimating the fair value of MSRs is highly sensitive to changes in key assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may provide an incentive to refinance; however, this may also indicate a slowing economy and an increase in the unemployment rate, which reduces the number of borrowers who qualify for refinancing), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. The changes in single family MSRs measured at fair value are as follows.
MSRs resulting from the sale of multifamily loans are recorded at fair value and subsequently carried at the lower of amortized cost or fair value. Multifamily MSRs are amortized in proportion to, and over, the estimated period the net servicing income will be collected. The changes in multifamily MSRs measured at the lower of amortized cost or fair value were as follows.
At September 30, 2016, the expected weighted-average life of the Company’s multifamily MSRs was 10.05 years. Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows.
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Commitments, Guarantees, and Contingencies |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, AND CONTINGENCIES | NOTE 9–COMMITMENTS, GUARANTEES AND CONTINGENCIES: Commitments Commitments to extend credit are agreements to lend to customers in accordance with predetermined contractual provisions. These commitments may be for specific periods or contain termination clauses and may require the payment of a fee by the borrower. The total amount of unused commitments do not necessarily represent future credit exposure or cash requirements in that commitments may expire without being drawn upon. The Company makes certain unfunded loan commitments as part of its lending activities that have not been recognized in the Company’s financial statements. These include commitments to extend credit made as part of the Company's lending activities on loans the Company intends to hold in its loans held for investment portfolio. The aggregate amount of these unrecognized unfunded loan commitments existing at September 30, 2016 and December 31, 2015 was $159.5 million and $52.9 million, respectively. In the ordinary course of business, the Company extends secured and unsecured open-end loans to meet the financing needs of its customers. Undistributed construction loan commitments, where the Company has an obligation to advance funds for construction progress payments, were $546.5 million and $456.4 million at September 30, 2016 and December 31, 2015, respectively. Unused home equity and commercial banking funding lines totaled $260.6 million and $216.5 million at September 30, 2016 and December 31, 2015, respectively. The Company has recorded an allowance for credit losses on loan commitments, included in accounts payable and other liabilities on the consolidated statements of financial condition, of $1.3 million and $1.4 million at September 30, 2016 and December 31, 2015, respectively. Guarantees In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS"®)1 that are subject to a credit loss sharing arrangement. The Company services the loans for Fannie Mae and shares in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the program, the DUS lender is contractually responsible for the first 5% of losses and then shares in the remainder of losses with Fannie Mae with a maximum lender loss of 20% of the original principal balance of each DUS loan. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. As of September 30, 2016 and December 31, 2015, the total unpaid principal balance of loans sold under this program was $1.06 billion and $924.4 million, respectively. The Company’s reserve liability related to this arrangement totaled $1.7 million and $3.0 million at September 30, 2016 and December 31, 2015, respectively. There were no actual losses incurred under this arrangement during the three and nine months ended September 30, 2016 and 2015. Mortgage repurchase liability In the ordinary course of business, the Company sells residential mortgage loans to GSEs and other entities. In addition, the Company pools FHA-insured and VA-guaranteed mortgage loans into Ginnie Mae, Fannie Mae and Freddie Mac guaranteed mortgage-backed securities. The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. These obligations expose the Company to mark-to-market and credit losses on the repurchased mortgage loans after accounting for any mortgage insurance that we may receive. Generally, the maximum amount of future payments the Company would be required to make for breaches of these representations and warranties would be equal to the unpaid principal balance of such loans that are deemed to have defects that were sold to purchasers plus, in certain circumstances, accrued and unpaid interest on such loans and certain expenses. The Company does not typically receive repurchase requests from the FHA or VA. As an originator of FHA-insured or VA-guaranteed loans, the Company is responsible for obtaining the insurance with the FHA or the guarantee with the VA. If loans are later found not to meet the requirements of the FHA or VA, through required internal quality control reviews or through agency audits, the Company may be required to indemnify the FHA or VA against losses. The loans remain in Ginnie Mae pools unless and until they are repurchased by the Company. In general, once an FHA or VA loan becomes 90 days past due, the Company repurchases the FHA or VA residential mortgage loan to minimize the cost of interest advances on the loan. If the loan is cured through borrower efforts or through loss mitigation activities, the loan may be resold into a Ginnie Mae pool. The Company's liability for mortgage loan repurchase losses incorporates probable losses associated with such indemnification. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $18.27 billion and $15.43 billion as of September 30, 2016 and December 31, 2015, respectively. At September 30, 2016 and December 31, 2015, the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, included in accounts payable and other liabilities on the consolidated statements of financial condition, of $3.6 million and $2.9 million, respectively. Contingencies In the normal course of business, the Company may have various legal claims and other similar contingent matters outstanding for which a loss may be realized. For these claims, the Company establishes a liability for contingent losses when it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. For claims determined to be reasonably possible but not probable of resulting in a loss, there may be a range of possible losses in excess of the established liability. At September 30, 2016, we reviewed our legal claims and determined that there were no material claims that were considered to be probable or reasonably possible of resulting in a loss. As a result, the Company did not have any material amounts reserved for legal claims as of September 30, 2016. |
Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | NOTE 10–FAIR VALUE MEASUREMENT: For a further discussion of fair value measurements, including information regarding the Company’s valuation methodologies and the fair value hierarchy, see Note 17, Fair Value Measurement within our 2015 Annual Report on Form 10-K. Valuation Processes The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. The Finance Committee of the Board provides oversight and approves the Company’s Asset/Liability Management Policy ("ALMP"). The Company's ALMP governs, among other things, the application and control of the valuation models used to measure fair value. On a quarterly basis, the Company’s Asset/Liability Management Committee ("ALCO") and the Finance Committee of the Board review significant modeling variables used to measure the fair value of the Company’s financial instruments, including the significant inputs used in the valuation of single family MSRs. Additionally, ALCO periodically obtains an independent review of the MSR valuation process and procedures, including a review of the model architecture and the valuation assumptions. The Company obtains an MSR valuation from an independent valuation firm monthly to assist with the validation of the fair value estimate and the reasonableness of the assumptions used in measuring fair value. The Company’s real estate valuations are overseen by the Company’s appraisal department, which is independent of the Company’s lending and credit administration functions. The appraisal department maintains the Company’s appraisal policy and recommends changes to the policy subject to approval by the Company’s Loan Committee and the Credit Committee of the Board. The Company’s appraisals are prepared by independent third-party appraisers and the Company’s internal appraisers. Single family appraisals are generally reviewed by the Company’s single family loan underwriters. Single family appraisals with unusual, higher risk or complex characteristics, as well as commercial real estate appraisals, are reviewed by the Company’s appraisal department. We obtain pricing from third party service providers for determining the fair value of a substantial portion of our investment securities available for sale. We have processes in place to evaluate such third party pricing services to ensure information obtained and valuation techniques used are appropriate. For fair value measurements obtained from third party services, we monitor and review the results to ensure the values are reasonable and in line with market experience for similar classes of securities. While the inputs used by the pricing vendor in determining fair value are not provided, and therefore unavailable for our review, we do perform certain procedures to validate the values received, including comparisons to other sources of valuation (if available), comparisons to other independent market data and a variance analysis of prices by Company personnel that are not responsible for the performance of the investment securities. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities, and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities.
The following table presents the levels of the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis.
There were no transfers between levels of the fair value hierarchy during the three and nine months ended September 30, 2016 and 2015. Level 3 Recurring Fair Value Measurements The Company's level 3 recurring fair value measurements consist of single family mortgage servicing rights, single family loans held for investment where fair value option was elected, certain single family loans held for sale, and interest rate lock and purchase loan commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the three and nine months ended September 30, 2016 and 2015, see Note 8, Mortgage Banking Operations of this Form 10-Q. The Company transferred certain loans from held for sale to held for investment. These loans were originated as held for sale loans where the Company had elected fair value option. The Company determined these loans to be level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $20.5 million at September 30, 2016. The following information presents significant Level 3 unobservable inputs used to measure fair value of single family loans held for investment where fair value option was elected.
The following information presents significant Level 3 unobservable inputs used to measure fair value of certain single family loans held for sale where fair value option was elected.
The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments.
The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock and purchase loan commitments.
Nonrecurring Fair Value Measurements Certain assets held by the Company are not included in the tables above, but are measured at fair value on a nonrecurring basis. These assets include certain loans held for investment and other real estate owned that are carried at the lower of cost or fair value of the underlying collateral, less the estimated cost to sell. The estimated fair values of real estate collateral are generally based on internal evaluations and appraisals of such collateral, which use the market approach and income approach methodologies. All impaired loans are subject to an internal evaluation completed quarterly by management as part of the allowance process. The fair value of commercial properties are generally based on third-party appraisals that consider recent sales of comparable properties, including their income-generating characteristics, adjusted (generally based on unobservable inputs) to reflect the general assumptions that a market participant would make when analyzing the property for purchase. The Company uses a fair value of collateral technique to apply adjustments to the appraisal value of certain commercial loans held for investment that are collateralized by real estate. During the three and nine months ended September 30, 2016 and 2015, the Company recorded no adjustments to the appraisal values of certain commercial loans held for investment that are collateralized by real estate. The Company uses a fair value of collateral technique to apply adjustments to the stated value of certain commercial loans held for investment that are not collateralized by real estate. During the three months ended September 30, 2016, the Company applied a stated value adjustment of 7.0%. During the nine months ended September 30, 2016, the Company applied a range of stated value adjustments of 7.0% to 63.4%, with a weighted average of 58.4%. During the three months ended September 30, 2015, the Company applied a range of stated value adjustments of 26.2% to 100.0%, with a weighted average of 35.2%. During the nine months ended September 30, 2015, the Company applied a range of stated value adjustments of 25.0% to 100.0%, with a weighted average of 36.3%. During the three and nine months ended September 30, 2016 the Company used a fair value of collateral technique to apply an adjustment to the appraisal value of certain OREO using a range of discount adjustments of 27.4% to 49.1%, with a weighted average rate of 32.1%. During the three and nine months ended September 30, 2015, the Company did not apply any adjustment to the appraisal value of OREO. Residential properties are generally based on unadjusted third-party appraisals. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. These adjustments include management assumptions that are based on the type of collateral dependent loan and may increase or decrease an appraised value. Management adjustments vary significantly depending on the location, physical characteristics and income producing potential of each individual property. The quality and volume of market information available at the time of the appraisal can vary from period-to-period and cause significant changes to the nature and magnitude of the unobservable inputs used. Given these variations, changes in these unobservable inputs are generally not a reliable indicator for how fair value will increase or decrease from period to period. The following tables present assets that had changes in their recorded fair value during the three and nine months ended September 30, 2016 and 2015 and what we still held at the end of the respective reporting period.
Fair Value of Financial Instruments The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | NOTE 11–EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share.
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Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING SEGMENTS | NOTE 12–BUSINESS SEGMENTS: The Company's business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is currently evaluated by management. The Company organizes the segments into two lines of business: Commercial and Consumer Banking segment and Mortgage Banking segment. A description of the Company's business segments and the products and services that they provide is as follows. Commercial and Consumer Banking provides diversified financial products and services to our commercial and consumer customers through bank branches and through ATMs, online, mobile and telephone banking. These products and services include deposit products; residential, consumer, business and agricultural portfolio loans; non-deposit investment products; insurance products and cash management services. We originate construction loans, bridge loans and permanent loans for our portfolio primarily on single family residences, and on office, retail, industrial and multifamily property types. We originate multifamily real estate loans through our Fannie Mae DUS business, whereby loans are sold to or securitized by Fannie Mae, while the Company generally retains the servicing rights. This segment also reflects the results for the management of the Company's portfolio of investment securities. Mortgage Banking originates single family residential mortgage loans for sale in the secondary markets. The majority of our mortgage loans are sold to or securitized by Fannie Mae, Freddie Mac or Ginnie Mae, while we retain the right to service these loans. We have become a rated originator and servicer of jumbo loans, allowing us to sell these loans to other securitizers. Additionally, we purchase loans from WMS Series LLC through a correspondent arrangement with that company. We also sell loans on a servicing-released and servicing-retained basis to securitizers and correspondent lenders. A small percentage of our loans are brokered to other lenders or sold on a servicing-released basis to correspondent lenders. On occasion, we may sell a portion of our MSR portfolio. We reflect the results from the management of loan funding and the interest rate risk associated with the secondary market loan sales and the retained single family mortgage servicing rights within this business segment. Financial highlights by operating segment were as follows.
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Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income | NOTE 13–ACCUMULATED OTHER COMPREHENSIVE INCOME: The following table shows changes in accumulated other comprehensive income (loss) from unrealized gain (loss) on available-for-sale securities, net of tax.
The following table shows the affected line items in the consolidated statements of operations from reclassifications of unrealized gain (loss) on available-for-sale securities from accumulated other comprehensive income (loss).
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Subsequent Events |
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Subsequent Events [Abstract] | |
Subsequent Events (Text Block) | NOTE 14–SUBSEQUENT EVENTS: The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q and has concluded that there are no significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the consolidated financial statements. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The Company’s accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Inter-company balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. These estimates that require application of management's most difficult, subjective or complex judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Developments On August 26, 2016, the FASB issued Accounting Standards Update ("ASU") 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU were issued to reduce diversity in how certain cash receipts and payments are presented and classified in the statement of cash flows in eight specific areas. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and should be applied using a retrospective transition method to each period presented. Early application was permitted upon issuance of the ASU. The Company is currently evaluating the impact of this ASU and the Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the current expected credit losses (CECL) on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments to this ASU require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in this ASU eliminate the probable initial recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The amendments to this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments in this ASU should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The Company is currently evaluating the impact of this ASU and the Company expects this ASU to have a material impact on the Company’s consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. This new accounting standard simplifies several areas of accounting for share-based payment transactions, including tax provision, classification in the cash-flow statement, forfeitures, and statutory tax withholding requirements. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Early application was permitted upon issuance of the ASU. The Company determined to early adopt the provisions of ASU 2016-09 during the second quarter of 2016 and determined the new standard did not have a material impact on the Company's Consolidated Financial Statements. On February 25 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in this ASU require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. This ASU simplifies the accounting for sale and leaseback transactions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application was permitted upon issuance of the ASU. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. The ASU was issued to simplify the accounting for measurement period adjustments for business combinations. The amendments in the ASU require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this ASU were effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company adopted this guidance during the first quarter of 2016 and applied it prospectively to adjustments to provisional amounts. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU was issued to simplify the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented on the statement of financial condition as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. This guidance became effective for the Company for the interim and annual periods beginning after December 15, 2015, and early adoption was permitted for financial statements that had not been previously issued. The guidance is required to be applied on a retrospective basis to each individual period presented on the statement of financial condition. The Company adopted this guidance during the first quarter of 2016 and determined there was no material impact on the Company’s consolidated financial statements. On April 15, 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. This guidance became effective for the Company for the interim and annual periods beginning after December 15, 2015; early adoption was permitted. The Company could elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company adopted this guidance during the first quarter of 2016 and determined there was no material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation. The ASU provides an additional requirement for a limited partnership or similar entity to qualify as a voting interest entity, amending the criteria for consolidating such an entity and eliminating the deferral provided under previous guidance for investment companies. In addition, the new guidance amends the criteria for evaluating fees paid to a decision maker or service provider as a variable interest and amends the criteria for evaluating the effect of fee arrangements and related parties on a variable interest entity ("VIE") primary beneficiary determination. This guidance was effective for interim and annual reporting periods beginning after December 15, 2015. The Company adopted this guidance during the first quarter of 2016 and determined there was no material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU clarifies the principles for recognizing revenue from contracts with customers. On August 12, 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. On March 17, 2016, the FASB issued Accounting Standards Update 2016-08 to clarify the implementation guidance on principal versus agent considerations. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Business Combinations Policy [Policy Text Block] | The acquisition was accounted for under the acquisition method of accounting pursuant to ASC 805, Business Combinations. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of acquisition date. The Company made significant estimates and exercised significant judgment in estimating the fair values and accounting for such acquired assets and assumed liabilities. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | The Company has evaluated securities available for sale that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of September 30, 2016 and December 31, 2015. In addition, as of September 30, 2016 and December 31, 2015, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | The Company's portfolio of loans held for investment is divided into two portfolio segments, consumer loans and commercial loans, which are the same segments used to determine the allowance for loan losses. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: single family and home equity and other loans within the consumer loan portfolio segment and commercial real estate, multifamily, construction/land development and commercial business loans within the commercial loan portfolio segment. |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts [Policy Text Block] | Management considers the level of allowance for loan losses to be appropriate to cover credit losses inherent within the loans held for investment portfolio as of September 30, 2016. In addition to the allowance for loan losses, the Company maintains a separate allowance for losses related to unfunded loan commitments, and this amount is included in accounts payable and other liabilities on the consolidated statements of financial condition. Collectively, these allowances are referred to as the allowance for credit losses. |
Derivatives, Policy [Policy Text Block] | To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as certain mortgage loans held for sale or MSRs, the Company utilizes derivatives, such as forward sale commitments, futures, option contracts, interest rate swaps and swaptions as risk management instruments in its hedging strategy. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. We held no derivatives designated as a fair value, cash flow or foreign currency hedge instrument at September 30, 2016 or December 31, 2015. Derivatives are reported at their respective fair values in the other assets or accounts payable and other liabilities line items on the consolidated statements of financial condition, with changes in fair value reflected in current period earnings. As permitted under U.S. GAAP, the Company nets derivative assets and liabilities when a legally enforceable master netting agreement exists between the Company and the derivative counterparty, which are documented under industry standard master agreements and credit support annexes. The Company's master netting agreements provide that following an uncured payment default or other event of default the non-defaulting party may promptly terminate all transactions between the parties and determine a net amount due to be paid to, or by, the defaulting party. An event of default may also occur under a credit support annex if a party fails to make a collateral delivery (which remains uncured following applicable notice and grace periods). The Company's right of offset requires that master netting agreements are legally enforceable and that the exercise of rights by the non-defaulting party under these agreements will not be stayed, or avoided under applicable law upon an event of default including bankruptcy, insolvency or similar proceeding. The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties is included in other assets on the Company's consolidated statements of financial condition. Any securities pledged to counterparties as collateral remain on the consolidated statement of financial condition. Refer to Note 3, Investment Securities, for further information on securities collateral pledged. At September 30, 2016 and December 31, 2015, the Company did not hold any collateral received from counterparties under derivative transactions. |
Loans and Leases Receivable, Mortgage Banking Activities, Policy [Policy Text Block] | The fair value of MSRs is determined based on the price that would be received to sell the MSRs in an orderly transaction between market participants at the measurement date. The Company determines fair value using a valuation model that calculates the net present value of estimated future cash flows. Estimates of future cash flows include contractual servicing fees, ancillary income and costs of servicing, the timing of which are impacted by assumptions, primarily expected prepayment speeds and discount rates, which relate to the underlying performance of the loans. |
Fair Value Measurement, Policy [Policy Text Block] | Valuation Processes The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. The Finance Committee of the Board provides oversight and approves the Company’s Asset/Liability Management Policy ("ALMP"). The Company's ALMP governs, among other things, the application and control of the valuation models used to measure fair value. On a quarterly basis, the Company’s Asset/Liability Management Committee ("ALCO") and the Finance Committee of the Board review significant modeling variables used to measure the fair value of the Company’s financial instruments, including the significant inputs used in the valuation of single family MSRs. Additionally, ALCO periodically obtains an independent review of the MSR valuation process and procedures, including a review of the model architecture and the valuation assumptions. The Company obtains an MSR valuation from an independent valuation firm monthly to assist with the validation of the fair value estimate and the reasonableness of the assumptions used in measuring fair value. The Company’s real estate valuations are overseen by the Company’s appraisal department, which is independent of the Company’s lending and credit administration functions. The appraisal department maintains the Company’s appraisal policy and recommends changes to the policy subject to approval by the Company’s Loan Committee and the Credit Committee of the Board. The Company’s appraisals are prepared by independent third-party appraisers and the Company’s internal appraisers. Single family appraisals are generally reviewed by the Company’s single family loan underwriters. Single family appraisals with unusual, higher risk or complex characteristics, as well as commercial real estate appraisals, are reviewed by the Company’s appraisal department. We obtain pricing from third party service providers for determining the fair value of a substantial portion of our investment securities available for sale. We have processes in place to evaluate such third party pricing services to ensure information obtained and valuation techniques used are appropriate. For fair value measurements obtained from third party services, we monitor and review the results to ensure the values are reasonable and in line with market experience for similar classes of securities. While the inputs used by the pricing vendor in determining fair value are not provided, and therefore unavailable for our review, we do perform certain procedures to validate the values received, including comparisons to other sources of valuation (if available), comparisons to other independent market data and a variance analysis of prices by Company personnel that are not responsible for the performance of the investment securities. |
Business Combinations (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | A summary of the consideration paid, the assets acquired and liabilities assumed in the merger are presented below:
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Business Combination, Acquisition Related Costs [Table Text Block] | The following table provides a breakout of acquisition-related expense for the nine months ended September 30, 2015:
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Business Acquisition, Pro Forma Information [Table Text Block] | The following table presents our unaudited pro forma results of operations for the periods presented as if the Simplicity acquisition had been completed on January 1, 2014. The unaudited pro forma results of operations include the historical accounts of Simplicity and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the Simplicity acquisition been completed at the beginning of 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.
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Investment Securities Available for Sale (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and fair value of investment securities available for sale | The following table sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale.
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Investment securities in an unrealized loss position | Investment securities available for sale that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position.
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Computation of weighted average yield using coupon on the fair value | The following tables present the fair value of investment securities available for sale by contractual maturity along with the associated contractual yield for the periods indicated below. Contractual maturities for mortgage-backed securities and collateralized mortgage obligations as presented exclude the effect of expected prepayments. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature. The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis.
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Sales of investment securities available for sale | Sales of investment securities available for sale were as follows.
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Schedule of Financial Instruments Owned and Pledged as Collateral | The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:
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Loans and Credit Quality (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment [Table Text Block] | Loans held for investment consist of the following:
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Activity in allowance for credit losses [Table Text Block] | Activity in the allowance for credit losses was as follows.
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Allowance for credit losses by loan portfolio segment and loan class [Table Text Block] | Activity in the allowance for credit losses by loan portfolio and loan class was as follows.
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Recorded investment in loans by Impairment Methodology [Table Text Block] | The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology.
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Impaired loans by loan portfolio segment and loan class [Table Text Block] | The following tables present impaired loans by loan portfolio segment and loan class.
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Average Recorded Investment in Impaired Loans [Table Text Block] | The following table provides the average recorded investment in impaired loans by portfolio segment and class.
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Designated loan grades by loan portfolio segment and loan class [Table Text Block] | The following tables summarize designated loan grades by loan portfolio segment and loan class.
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Past due loans by portfolio segment and loan class [Table Text Block] | The following table presents an aging analysis of past due loans by loan portfolio segment and loan class.
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Performing and non-performing loan balances by portfolio segment and loan class [Table Text Block] | The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class.
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TDR activity by loan portfolio segment and loan class [Table Text Block] | The following tables present information about TDR activity during the periods presented.
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TDR balances that subsequently re-defaulted [Table Text Block] | The following tables present loans that were modified as TDRs within the previous 12 months and subsequently re-defaulted during the three and nine months ended September 30, 2016 and 2015, respectively. A TDR loan is considered re-defaulted when it becomes doubtful that the objectives of the modifications will be met, generally when a consumer loan TDR becomes 60 days or more past due on principal or interest payments or when a commercial loan TDR becomes 90 days or more past due on principal or interest payments.
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Deposits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposit balances, including stated rates (Table Text Block) | Deposit balances, including stated rates, were as follows.
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Interest expense on deposits (Table Text Block) | Interest expense on deposits was as follows.
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Certificates of deposit outstanding (Table text Block) | Certificates of deposit outstanding mature as follows.
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Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The Subordinated Debt Securities are as follows:
(1) Call options are exercisable at par. |
Derivatives And Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional amount and fair value for derivatives (Table Text Block) | The notional amounts and fair values for derivatives consist of the following.
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Fair Value, Concentration of Risk [Table Text Block] | The following tables present gross and net information about derivative instruments.
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Net gains (losses) recognized on economic hedge derivatives | The following table presents the net gain (loss) recognized on derivatives, including economic hedge derivatives, within the respective line items in the statement of operations for the periods indicated.
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Mortgage Banking Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mortgage Banking [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate, by Loan Disclosure [Table Text Block] | Loans sold consisted of the following.
Loans held for sale consisted of the following.
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Net gain on mortgage loan origination and sale activity (Table Text Block) | Gain on mortgage loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following.
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Company's portfolio of loans serviced for others (Table Text Block) | The composition of loans serviced for others is presented below at the unpaid principal balance.
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Mortgage Repurchase Losses [Table Text Block] | The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses.
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Revenue from mortgage servicing, including the effects of derivative risk management instruments (Table Text Block) | Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following.
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Key economic assumptions used in measuring initial FV of capitalized single family MSRs (Table Text Block) | Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows.
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Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | Key economic assumptions and the sensitivity of the current fair value for single family MSRs to immediate adverse changes in those assumptions were as follows.
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Changes in single family MSRs measured at fair value | The changes in single family MSRs measured at fair value are as follows.
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Changes in multifamily MSRs measured at the lower of amortized cost or fair value | The changes in multifamily MSRs measured at the lower of amortized cost or fair value were as follows.
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Projected amortization expense for the gross carrying value of multifamily MSRs | At September 30, 2016, the expected weighted-average life of the Company’s multifamily MSRs was 10.05 years. Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows.
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Fair Value Measurement (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Methodologies [Table Text Block] | The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities.
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents the levels of the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis.
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Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | The following information presents significant Level 3 unobservable inputs used to measure fair value of single family loans held for investment where fair value option was elected.
The following information presents significant Level 3 unobservable inputs used to measure fair value of certain single family loans held for sale where fair value option was elected.
The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock and purchase loan commitments.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments.
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Fair Value Measurements on Nonrecurring Basis (Table Text Block) | The following tables present assets that had changes in their recorded fair value during the three and nine months ended September 30, 2016 and 2015 and what we still held at the end of the respective reporting period.
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Fair Value, by Balance Sheet Grouping (Table Text Block) | The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis.
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per share, Basic and Diluted (Table Text Block) | The following table summarizes the calculation of earnings per share.
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Business Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed income statement | Financial highlights by operating segment were as follows.
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Accumulated Other Comprehensive Income (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table shows changes in accumulated other comprehensive income (loss) from unrealized gain (loss) on available-for-sale securities, net of tax.
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Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table shows the affected line items in the consolidated statements of operations from reclassifications of unrealized gain (loss) on available-for-sale securities from accumulated other comprehensive income (loss).
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Business Combinations Acquisition expenses (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2015
USD ($)
| |
Business Combinations [Abstract] | |
Salaries and related costs | $ 7,669 |
General and administrative | 1,256 |
Legal expenses | 530 |
Consulting expenses | 5,539 |
Occupancy expenses | 335 |
Information services expenses | 481 |
Total noninterest expense | $ 15,810 |
Business Combinations Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net Interest Income | $ 46,802 | $ 39,603 | $ 131,975 | $ 113,190 |
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 |
Total Noninterest Income | 111,745 | 66,676 | 285,929 | 209,239 |
Total Noninterest Expense | 114,399 | 91,557 | 326,783 | 266,243 |
Net Income | 27,701 | 9,756 | 35,355 | |
Net income | $ 27,701 | $ 9,961 | $ 55,857 | $ 32,641 |
Basic income per share (in dollars per share) | $ 1.12 | $ 0.44 | $ 2.29 | $ 1.60 |
Diluted income per share (in dollars per share) | $ 1.11 | $ 0.44 | $ 2.27 | $ 1.59 |
Basic weighted average number of shares outstanding | 24,811,169 | 22,035,317 | 24,398,683 | 22,034,201 |
Diluted Weighted average number of shares outstanding | 24,996,747 | 22,291,810 | 24,595,348 | 22,207,764 |
Investment Securities Available for Sale (Realized Gain/Loss on Investment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 9,641 | $ 28,080 | $ 21,108 | $ 28,080 |
Gross gains | 48 | 1,002 | 145 | 1,002 |
Gross losses | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities Available for Sale (Investment Securities Pledged to Secure Borrowings And Public Deposits) (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Investments, Debt and Equity Securities [Abstract] | |
Securities pledged to secure borrowings from Federal Home Loan Bank | $ 92,313 |
Securities pledged to Washington and California State to secure public deposits | 30,877 |
Securities pledged to secure derivatives in a liability position | 25,003 |
Other securities pledged | 9,193 |
Total securities pledged as collateral | $ 157,386 |
Investment Securities Available for Sale (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Investment Securities Available for Sale [Abstract] | |||||
Security pledged under repurchase agreement | $ 0 | $ 0 | $ 0 | ||
Tax exempt interest income on available-for-sale securities | $ 1,821 | $ 968 | $ 4,263 | $ 2,604 |
Loans and Credit Quality (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
|
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||
Beginning Balance | $ 34,001 | $ 26,448 | $ 30,659 | $ 22,524 | |||
Provision for loan losses | 1,250 | 700 | 3,750 | 4,200 | |||
Recoveries, net of charge-offs | (18) | 739 | 824 | 1,163 | |||
Ending Balance | 35,233 | 27,887 | 35,233 | 27,887 | |||
Allowance for loan losses | $ 33,975 | $ 29,278 | $ 26,922 | ||||
Allowance for unfunded commitments | 1,258 | 1,381 | 965 | ||||
Allowance for credit losses | $ 34,001 | $ 26,448 | $ 30,659 | $ 22,524 | $ 35,233 | $ 30,659 | $ 27,887 |
Loans and Credit Quality (Activity in Allowance for Credit Losses by Loan Portfolio) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | $ 34,001 | $ 26,448 | $ 30,659 | $ 22,524 |
Charge-offs | (398) | (651) | (796) | (877) |
Recoveries | 380 | 1,390 | 1,620 | 2,040 |
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 |
Ending Balance | 35,233 | 27,887 | 35,233 | 27,887 |
Residential Mortgage [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 8,294 | 8,997 | 8,942 | 9,447 |
Charge-offs | (42) | (232) | (74) | (232) |
Recoveries | 1 | 250 | 87 | 496 |
Provision for credit losses | 995 | (298) | 293 | (994) |
Ending Balance | 9,248 | 8,717 | 9,248 | 8,717 |
Home Equity Line of Credit [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 5,400 | 3,882 | 4,620 | 3,322 |
Charge-offs | (356) | (255) | (654) | (456) |
Recoveries | 192 | 84 | 530 | 225 |
Provision for credit losses | 512 | 541 | 1,252 | 1,161 |
Ending Balance | 5,748 | 4,252 | 5,748 | 4,252 |
Consumer Portfolio Segment [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 13,694 | 12,879 | 13,562 | 12,769 |
Charge-offs | (398) | (487) | (728) | (688) |
Recoveries | 193 | 334 | 617 | 721 |
Provision for credit losses | 1,507 | 243 | 1,545 | 167 |
Ending Balance | 14,996 | 12,969 | 14,996 | 12,969 |
Commercial Real Estate [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 6,045 | 5,046 | 4,847 | 3,846 |
Charge-offs | 0 | 0 | 0 | (16) |
Recoveries | 0 | 0 | 0 | 37 |
Provision for credit losses | 80 | (355) | 1,278 | 824 |
Ending Balance | 6,125 | 4,691 | 6,125 | 4,691 |
Multifamily Residential [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 2,048 | 780 | 1,194 | 673 |
Charge-offs | 0 | (150) | 0 | (150) |
Recoveries | 0 | 0 | 0 | 0 |
Provision for credit losses | 49 | 153 | 903 | 260 |
Ending Balance | 2,097 | 783 | 2,097 | 783 |
Construction Loans [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 9,369 | 5,943 | 9,271 | 3,818 |
Charge-offs | 0 | 0 | (42) | 0 |
Recoveries | 176 | 1,033 | 959 | 1,132 |
Provision for credit losses | (524) | 435 | (1,167) | 2,461 |
Ending Balance | 9,021 | 7,411 | 9,021 | 7,411 |
Commercial Loan [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 2,845 | 1,800 | 1,785 | 1,418 |
Charge-offs | 0 | (14) | (26) | (23) |
Recoveries | 11 | 23 | 44 | 150 |
Provision for credit losses | 138 | 224 | 1,191 | 488 |
Ending Balance | 2,994 | 2,033 | 2,994 | 2,033 |
Commercial Portfolio Segment [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning Balance | 20,307 | 13,569 | 17,097 | 9,755 |
Charge-offs | 0 | (164) | (68) | (189) |
Recoveries | 187 | 1,056 | 1,003 | 1,319 |
Provision for credit losses | (257) | 457 | 2,205 | 4,033 |
Ending Balance | $ 20,237 | $ 14,918 | $ 20,237 | $ 14,918 |
Loans and Credit Quality (Recorded investment in loans by impairment methodology) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | $ 33,928 | $ 30,092 | |||||||||
Allowance individually evaluated for impairment | 1,305 | 567 | |||||||||
Allowance for credit losses | 35,233 | $ 34,001 | 30,659 | $ 27,887 | $ 26,448 | $ 22,524 | |||||
Loans collectively evaluated for impairment | 3,675,322 | 3,109,018 | |||||||||
Loans individually evaluated for impairment | 100,310 | 93,673 | |||||||||
Total | 3,775,632 | 3,202,691 | |||||||||
Fair value of loans held for investment | [1] | 20,547 | 21,544 | ||||||||
Total loans held for investment | 3,796,179 | 3,224,235 | |||||||||
Residential Mortgage [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 8,223 | 8,723 | |||||||||
Allowance individually evaluated for impairment | 1,025 | 219 | |||||||||
Allowance for credit losses | 9,248 | 8,294 | 8,942 | 8,717 | 8,997 | 9,447 | |||||
Loans collectively evaluated for impairment | 1,079,132 | 1,101,891 | |||||||||
Loans individually evaluated for impairment | 86,797 | 79,745 | |||||||||
Total | 1,165,929 | 1,181,636 | |||||||||
Total loans held for investment | [2] | 1,186,476 | 1,203,180 | ||||||||
Home Equity Line of Credit [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 5,696 | 4,545 | |||||||||
Allowance individually evaluated for impairment | 52 | 75 | |||||||||
Allowance for credit losses | 5,748 | 5,400 | 4,620 | 4,252 | 3,882 | 3,322 | |||||
Loans collectively evaluated for impairment | 336,809 | 254,762 | |||||||||
Loans individually evaluated for impairment | 1,346 | 1,611 | |||||||||
Total | 338,155 | 256,373 | |||||||||
Total loans held for investment | 338,155 | 256,373 | |||||||||
Consumer Portfolio Segment [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 13,919 | 13,268 | |||||||||
Allowance individually evaluated for impairment | 1,077 | 294 | |||||||||
Allowance for credit losses | 14,996 | 13,694 | 13,562 | 12,969 | 12,879 | 12,769 | |||||
Loans collectively evaluated for impairment | 1,415,941 | 1,356,653 | |||||||||
Loans individually evaluated for impairment | 88,143 | 81,356 | |||||||||
Total | 1,504,084 | 1,438,009 | |||||||||
Total loans held for investment | 1,524,631 | 1,459,553 | |||||||||
Commercial Real Estate [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 6,124 | 4,847 | |||||||||
Allowance individually evaluated for impairment | 1 | 0 | |||||||||
Allowance for credit losses | 6,125 | 6,045 | 4,847 | 4,691 | 5,046 | 3,846 | |||||
Loans collectively evaluated for impairment | 806,600 | 597,571 | |||||||||
Loans individually evaluated for impairment | 3,746 | 3,132 | |||||||||
Total | 810,346 | 600,703 | |||||||||
Total loans held for investment | 810,346 | 600,703 | |||||||||
Multifamily Residential [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 2,097 | 1,194 | |||||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||||||
Allowance for credit losses | 2,097 | 2,048 | 1,194 | 783 | 780 | 673 | |||||
Loans collectively evaluated for impairment | 561,651 | 423,424 | |||||||||
Loans individually evaluated for impairment | 621 | 3,133 | |||||||||
Total | 562,272 | 426,557 | |||||||||
Total loans held for investment | 562,272 | 426,557 | |||||||||
Construction Loans [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 9,021 | 9,271 | |||||||||
Allowance individually evaluated for impairment | 0 | 0 | |||||||||
Allowance for credit losses | 9,021 | 9,369 | 9,271 | 7,411 | 5,943 | 3,818 | |||||
Loans collectively evaluated for impairment | 659,480 | 579,446 | |||||||||
Loans individually evaluated for impairment | 2,333 | 3,714 | |||||||||
Total | 661,813 | 583,160 | |||||||||
Total loans held for investment | 661,813 | 583,160 | |||||||||
Commercial Loan [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 2,767 | 1,512 | |||||||||
Allowance individually evaluated for impairment | 227 | 273 | |||||||||
Allowance for credit losses | 2,994 | 2,845 | 1,785 | 2,033 | 1,800 | 1,418 | |||||
Loans collectively evaluated for impairment | 231,650 | 151,924 | |||||||||
Loans individually evaluated for impairment | 5,467 | 2,338 | |||||||||
Total | 237,117 | 154,262 | |||||||||
Total loans held for investment | 237,117 | 154,262 | |||||||||
Commercial Portfolio Segment [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Allowance collectively evaluated for impairment | 20,009 | 16,824 | |||||||||
Allowance individually evaluated for impairment | 228 | 273 | |||||||||
Allowance for credit losses | 20,237 | $ 20,307 | 17,097 | $ 14,918 | $ 13,569 | $ 9,755 | |||||
Loans collectively evaluated for impairment | 2,259,381 | 1,752,365 | |||||||||
Loans individually evaluated for impairment | 12,167 | 12,317 | |||||||||
Total | 2,271,548 | 1,764,682 | |||||||||
Total loans held for investment | $ 2,271,548 | $ 1,764,682 | |||||||||
|
Loans and Credit Quality (Impaired loans by loan class) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | $ 89,953 | $ 90,547 | ||||||||||
Recorded investment With related allowance recorded | [1] | 10,357 | 3,126 | ||||||||||
Total Recorded investment | [1] | 100,310 | 93,673 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 94,714 | 94,058 | ||||||||||
Unpaid principal balance With related allowance recorded | [2] | 10,519 | 3,293 | ||||||||||
Total Unpaid principal balance | [2] | 105,233 | 97,351 | ||||||||||
Related Allowance | 1,305 | 567 | |||||||||||
Residential Mortgage [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 82,898 | 78,240 | ||||||||||
Recorded investment With related allowance recorded | [1] | 3,899 | 1,505 | ||||||||||
Total Recorded investment | [1] | 86,797 | [3] | 79,745 | [4] | ||||||||
Unpaid principal balance With no related allowance recorded | [2] | 85,153 | 80,486 | ||||||||||
Unpaid principal balance With related allowance recorded | [2] | 3,990 | 1,618 | ||||||||||
Total Unpaid principal balance | [2] | 89,143 | [3] | 82,104 | [4] | ||||||||
Related Allowance | 1,025 | 219 | |||||||||||
Home Equity Line of Credit [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 790 | 955 | ||||||||||
Recorded investment With related allowance recorded | [1] | 556 | 656 | ||||||||||
Total Recorded investment | [1] | 1,346 | 1,611 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 822 | 1,033 | ||||||||||
Unpaid principal balance With related allowance recorded | [2] | 555 | 656 | ||||||||||
Total Unpaid principal balance | [2] | 1,377 | 1,689 | ||||||||||
Related Allowance | 52 | 75 | |||||||||||
Consumer Portfolio Segment [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 83,688 | 79,195 | ||||||||||
Recorded investment With related allowance recorded | [1] | 4,455 | 2,161 | ||||||||||
Total Recorded investment | [1] | 88,143 | 81,356 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 85,975 | 81,519 | ||||||||||
Unpaid principal balance With related allowance recorded | [2] | 4,545 | 2,274 | ||||||||||
Total Unpaid principal balance | [2] | 90,520 | 83,793 | ||||||||||
Related Allowance | 1,077 | 294 | |||||||||||
Commercial Real Estate [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 2,217 | 3,132 | ||||||||||
Recorded investment With related allowance recorded | [1] | 1,529 | |||||||||||
Total Recorded investment | [1] | 3,746 | 3,132 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 2,758 | 3,421 | ||||||||||
Unpaid principal balance With related allowance recorded | [2] | 1,529 | |||||||||||
Total Unpaid principal balance | [2] | 4,287 | 3,421 | ||||||||||
Related Allowance | 1 | 0 | |||||||||||
Multifamily Residential [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 621 | 3,133 | ||||||||||
Total Recorded investment | [1] | 621 | 3,133 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 745 | 3,429 | ||||||||||
Total Unpaid principal balance | [2] | 745 | 3,429 | ||||||||||
Related Allowance | 0 | 0 | |||||||||||
Construction Loans [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 2,333 | 3,714 | ||||||||||
Total Recorded investment | [1] | 2,333 | 3,714 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 3,259 | 4,214 | ||||||||||
Total Unpaid principal balance | [2] | 3,259 | 4,214 | ||||||||||
Related Allowance | 0 | 0 | |||||||||||
Commercial Loan [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 1,094 | 1,373 | ||||||||||
Recorded investment With related allowance recorded | [1] | 4,373 | 965 | ||||||||||
Total Recorded investment | [1] | 5,467 | 2,338 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 1,977 | 1,475 | ||||||||||
Unpaid principal balance With related allowance recorded | [2] | 4,445 | 1,019 | ||||||||||
Total Unpaid principal balance | [2] | 6,422 | 2,494 | ||||||||||
Related Allowance | 227 | 273 | |||||||||||
Commercial Portfolio Segment [Member] | |||||||||||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||||||||||
Recorded investment With no related allowance recorded | [1] | 6,265 | 11,352 | ||||||||||
Recorded investment With related allowance recorded | [1] | 5,902 | 965 | ||||||||||
Total Recorded investment | [1] | 12,167 | 12,317 | ||||||||||
Unpaid principal balance With no related allowance recorded | [2] | 8,739 | 12,539 | ||||||||||
Unpaid principal balance With related allowance recorded | [2] | 5,974 | 1,019 | ||||||||||
Total Unpaid principal balance | [2] | 14,713 | 13,558 | ||||||||||
Related Allowance | $ 228 | $ 273 | |||||||||||
|
Loan and Credit Quality (Average Recorded Investment in Impaired Loans) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | $ 96,962 | $ 111,040 | $ 96,991 | $ 114,551 |
Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 85,138 | 78,432 | 83,271 | 78,358 |
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 1,371 | 1,872 | 1,479 | 2,184 |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 86,509 | 80,304 | 84,750 | 80,542 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 3,431 | 15,797 | 3,439 | 20,328 |
Multifamily Residential [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 621 | 4,590 | 1,877 | 4,022 |
Construction Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 2,333 | 4,466 | 3,023 | 4,968 |
Commercial Loan [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 4,068 | 5,883 | 3,902 | 4,691 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | $ 10,453 | $ 30,736 | $ 12,241 | $ 34,009 |
Loans and Credit Quality (Loans by loan grade) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | $ 3,796,179 | $ 3,224,235 | |||
Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 3,594,343 | 3,033,197 | |||
Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 138,663 | 139,930 | |||
Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 29,066 | 31,779 | |||
Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 34,107 | 19,329 | |||
Residential Mortgage [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | [1] | 1,186,476 | 1,203,180 | ||
Residential Mortgage [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | [1] | 1,152,096 | 1,165,990 | ||
Residential Mortgage [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 4,073 | 7,933 | |||
Residential Mortgage [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 15,307 | 16,439 | |||
Residential Mortgage [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 15,000 | 12,818 | |||
Home Equity Line of Credit [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 338,155 | 256,373 | |||
Home Equity Line of Credit [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 335,966 | 253,912 | |||
Home Equity Line of Credit [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 304 | 381 | |||
Home Equity Line of Credit [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 320 | 478 | |||
Home Equity Line of Credit [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 1,565 | 1,602 | |||
Consumer Portfolio Segment [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 1,524,631 | 1,459,553 | |||
Consumer Portfolio Segment [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 1,488,062 | 1,419,902 | |||
Consumer Portfolio Segment [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 4,377 | 8,314 | |||
Consumer Portfolio Segment [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 15,627 | 16,917 | |||
Consumer Portfolio Segment [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 16,565 | 14,420 | |||
Commercial Real Estate [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 810,346 | 600,703 | |||
Commercial Real Estate [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 744,279 | 535,903 | |||
Commercial Real Estate [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 55,490 | 55,058 | |||
Commercial Real Estate [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 4,098 | 7,067 | |||
Commercial Real Estate [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 6,479 | 2,675 | |||
Multifamily Residential [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 562,272 | 426,557 | |||
Multifamily Residential [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 542,091 | 403,604 | |||
Multifamily Residential [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 19,206 | 20,738 | |||
Multifamily Residential [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 862 | 1,657 | |||
Multifamily Residential [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 113 | 558 | |||
Construction Loans [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 661,813 | 583,160 | |||
Construction Loans [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 640,379 | 552,819 | |||
Construction Loans [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 15,771 | 25,520 | |||
Construction Loans [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 4,181 | 4,407 | |||
Construction Loans [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 1,482 | 414 | |||
Commercial Loan [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 237,117 | 154,262 | |||
Commercial Loan [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 179,532 | 120,969 | |||
Commercial Loan [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 43,819 | 30,300 | |||
Commercial Loan [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 4,298 | 1,731 | |||
Commercial Loan [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 9,468 | 1,262 | |||
Commercial Portfolio Segment [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 2,271,548 | 1,764,682 | |||
Commercial Portfolio Segment [Member] | Pass [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 2,106,281 | 1,613,295 | |||
Commercial Portfolio Segment [Member] | Watch [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 134,286 | 131,616 | |||
Commercial Portfolio Segment [Member] | Special Mention [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | 13,439 | 14,862 | |||
Commercial Portfolio Segment [Member] | Substandard [Member] | |||||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||||
Total loans | $ 17,542 | $ 4,909 | |||
|
Loans and Credit Quality (Aging Analysis) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | $ 71,747 | $ 66,219 | |||||
Current | 3,724,432 | 3,158,016 | |||||
Total loans | 3,796,179 | 3,224,235 | |||||
90-days or more past due and still accruing | 32,108 | 36,612 | |||||
30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 9,493 | 8,503 | |||||
60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 4,225 | 3,935 | |||||
90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 58,029 | 53,781 | |||||
Residential Mortgage [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 59,220 | 59,349 | |||||
Current | [1] | 1,127,256 | 1,143,831 | ||||
Total loans | [1] | 1,186,476 | 1,203,180 | ||||
90-days or more past due and still accruing | [2] | 32,108 | 36,595 | ||||
Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 9,108 | 7,098 | |||||
Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 3,727 | 3,537 | |||||
Residential Mortgage [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 46,385 | 48,714 | |||||
Home Equity Line of Credit [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 2,092 | 3,069 | |||||
Current | 336,063 | 253,304 | |||||
Total loans | 338,155 | 256,373 | |||||
90-days or more past due and still accruing | 0 | 0 | |||||
Home Equity Line of Credit [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 385 | 1,095 | |||||
Home Equity Line of Credit [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 144 | 398 | |||||
Home Equity Line of Credit [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 1,563 | 1,576 | |||||
Consumer Portfolio Segment [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 61,312 | 62,418 | |||||
Current | 1,463,319 | 1,397,135 | |||||
Total loans | 1,524,631 | 1,459,553 | |||||
90-days or more past due and still accruing | 32,108 | 36,595 | |||||
Consumer Portfolio Segment [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 9,493 | 8,193 | |||||
Consumer Portfolio Segment [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 3,871 | 3,935 | |||||
Consumer Portfolio Segment [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 47,948 | 50,290 | |||||
Commercial Real Estate [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 3,731 | 2,574 | |||||
Current | 806,615 | 598,129 | |||||
Total loans | 810,346 | 600,703 | |||||
90-days or more past due and still accruing | 0 | 0 | |||||
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 233 | |||||
Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 0 | |||||
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 3,731 | 2,341 | |||||
Multifamily Residential [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 467 | 119 | |||||
Current | 561,805 | 426,438 | |||||
Total loans | 562,272 | 426,557 | |||||
90-days or more past due and still accruing | 0 | 0 | |||||
Multifamily Residential [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 0 | |||||
Multifamily Residential [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 354 | 0 | |||||
Multifamily Residential [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 113 | 119 | |||||
Construction Loans [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 1,376 | 416 | |||||
Current | 660,437 | 582,744 | |||||
Total loans | 661,813 | 583,160 | |||||
90-days or more past due and still accruing | 0 | 0 | |||||
Construction Loans [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 77 | |||||
Construction Loans [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 0 | |||||
Construction Loans [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 1,376 | 339 | |||||
Commercial Loan [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 4,861 | 692 | |||||
Current | 232,256 | 153,570 | |||||
Total loans | 237,117 | 154,262 | |||||
90-days or more past due and still accruing | 0 | 17 | |||||
Commercial Loan [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 0 | |||||
Commercial Loan [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 0 | |||||
Commercial Loan [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 4,861 | 692 | |||||
Commercial Portfolio Segment [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 10,435 | 3,801 | |||||
Current | 2,261,113 | 1,760,881 | |||||
Total loans | 2,271,548 | 1,764,682 | |||||
90-days or more past due and still accruing | 0 | 17 | |||||
Commercial Portfolio Segment [Member] | 30 to 59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 0 | 310 | |||||
Commercial Portfolio Segment [Member] | 60 to 89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | 354 | 0 | |||||
Commercial Portfolio Segment [Member] | 90 Days or More Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Total past due | $ 10,081 | $ 3,491 | |||||
|
Loans and Credit Quality (Performing and nonaccrual) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | $ 3,770,258 | $ 3,207,067 | |||
Nonaccrual | 25,921 | 17,168 | |||
Total loans | 3,796,179 | 3,224,235 | |||
Residential Mortgage [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | [1] | 1,172,199 | 1,191,061 | ||
Nonaccrual | 14,277 | 12,119 | |||
Total loans | [1] | 1,186,476 | 1,203,180 | ||
Home Equity Line of Credit [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | 336,592 | 254,797 | |||
Nonaccrual | 1,563 | 1,576 | |||
Total loans | 338,155 | 256,373 | |||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | 1,508,791 | 1,445,858 | |||
Nonaccrual | 15,840 | 13,695 | |||
Total loans | 1,524,631 | 1,459,553 | |||
Commercial Real Estate [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | 806,615 | 598,362 | |||
Nonaccrual | 3,731 | 2,341 | |||
Total loans | 810,346 | 600,703 | |||
Multifamily Residential [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | 562,159 | 426,438 | |||
Nonaccrual | 113 | 119 | |||
Total loans | 562,272 | 426,557 | |||
Construction Loans [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | 660,437 | 582,821 | |||
Nonaccrual | 1,376 | 339 | |||
Total loans | 661,813 | 583,160 | |||
Commercial Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | 232,256 | 153,588 | |||
Nonaccrual | 4,861 | 674 | |||
Total loans | 237,117 | 154,262 | |||
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Accrual | 2,261,467 | 1,761,209 | |||
Nonaccrual | 10,081 | 3,473 | |||
Total loans | $ 2,271,548 | $ 1,764,682 | |||
|
Loans and Credit Quality (TDRs) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
loan
|
Sep. 30, 2015
USD ($)
loan
|
Sep. 30, 2016
USD ($)
loan
|
Sep. 30, 2015
USD ($)
loan
|
|
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 24 | 11 | 77 | 42 |
Recorded investment - TDR | $ 5,365 | $ 1,722 | $ 15,685 | $ 9,033 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 12 | 11 | 31 | 42 |
Recorded investment - TDR | $ 2,592 | $ 1,722 | $ 5,994 | $ 9,033 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 12 | 46 | ||
Recorded investment - TDR | $ 2,773 | $ 9,691 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Residential Mortgage [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 11 | 11 | 29 | 39 |
Recorded investment - TDR | $ 2,492 | $ 1,722 | $ 5,881 | $ 8,514 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Residential Mortgage [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 12 | 46 | ||
Recorded investment - TDR | $ 2,773 | $ 9,691 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Home Equity Line of Credit [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | 2 | 1 | |
Recorded investment - TDR | $ 100 | $ 113 | $ 37 | |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | |
Consumer loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 24 | 11 | 77 | |
Recorded investment - TDR | $ 5,365 | $ 1,722 | $ 15,685 | |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | |
Consumer loans [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 12 | 11 | 31 | 40 |
Recorded investment - TDR | $ 2,592 | $ 1,722 | $ 5,994 | $ 8,551 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Payment Restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 12 | 46 | ||
Recorded investment - TDR | $ 2,773 | $ 9,691 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Commercial Loan [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 2 | |||
Recorded investment - TDR | $ 482 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 2 | |||
Recorded investment - TDR | $ 482 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial Portfolio Segment [Member] | Interest Rate Reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 2 | |||
Recorded investment - TDR | $ 482 | |||
Related charge-offs - TDR | $ 0 |
Loans and Credit Quality (TDR re-defaults) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
loan
|
Sep. 30, 2015
USD ($)
loan
|
Sep. 30, 2016
USD ($)
loan
|
Sep. 30, 2015
USD ($)
loan
|
|
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 7 | 4 | 17 | 11 |
Recorded investment | $ | $ 1,173 | $ 620 | $ 3,904 | $ 2,338 |
Residential Mortgage [Member] | ||||
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 7 | 3 | 16 | 10 |
Recorded investment | $ | $ 1,173 | $ 552 | $ 3,811 | $ 2,270 |
Home Equity Line of Credit [Member] | ||||
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 0 | 1 | 1 | 1 |
Recorded investment | $ | $ 0 | $ 68 | $ 93 | $ 68 |
Loans and Credit Quality (Details Textual) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|||
Financing Receivable, Impaired [Line Items] | ||||
Fair value of loans held for investment | [1] | $ 20,547 | $ 21,544 | |
Number of days past due for consumer loans TDR to be re-default | 60 | |||
Number of days past due for commercial loans TDR to be re-default | 90 | |||
Performing TDRs | $ 77,500 | $ 74,700 | ||
Loans and Credit Quality (Textual) [Abstract] | ||||
Concentration percentage | 10.00% | 10.00% | ||
Federal Home Loan Bank Advances [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Pledged as Collateral | $ 1,590,000 | $ 1,730,000 | ||
Federal Reserve Bank Advances [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans Pledged as Collateral | $ 674,400 | $ 572,000 | ||
WASHINGTON | Residential Mortgage [Member] | ||||
Loans and Credit Quality (Textual) [Abstract] | ||||
Percentage of Loan Portfolio | 14.50% | 18.00% | ||
WASHINGTON | Commercial Real Estate [Member] | ||||
Loans and Credit Quality (Textual) [Abstract] | ||||
Percentage of Loan Portfolio | 14.60% | 14.70% | ||
WASHINGTON | Construction Loans [Member] | ||||
Loans and Credit Quality (Textual) [Abstract] | ||||
Percentage of Loan Portfolio | 11.30% | |||
CALIFORNIA | Residential Mortgage [Member] | ||||
Loans and Credit Quality (Textual) [Abstract] | ||||
Percentage of Loan Portfolio | 11.60% | 13.60% | ||
Level 3 [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Fair value of loans held for investment | $ 20,547 | $ 21,544 | ||
|
Deposit Balances (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Banking and Thrift [Abstract] | ||
Time Deposits Weighted Average Interest Rate | 0.96% | 0.96% |
Deposit balances, including stated rates | ||
Noninterest bearing accounts | $ 1,088,508 | $ 643,028 |
NOW accounts | 501,370 | 408,477 |
Statement savings accounts, due on demand | 303,872 | 292,092 |
Money market accounts, due on demand | 1,513,547 | 1,155,464 |
Certificates of deposit | 1,097,263 | 732,892 |
Deposits, Total | $ 4,504,560 | $ 3,231,953 |
Deposits (Interest expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Interest expense on deposits | ||||
NOW accounts | $ 484 | $ 495 | $ 1,465 | $ 1,283 |
Statement savings accounts | 262 | 257 | 771 | 778 |
Money market accounts | 2,084 | 1,272 | 5,057 | 3,655 |
Certificates of deposit | 2,532 | 1,045 | 6,087 | 2,940 |
Interest expense on deposits, Total | $ 5,362 | $ 3,069 | $ 13,380 | $ 8,656 |
Deposits (Time deposits) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Certificates of deposit outstanding | ||
Within one year | $ 742,312 | |
One to two years | 280,983 | |
Two to three years | 38,740 | |
Three to four years | 19,786 | |
Four to five years | 14,129 | |
Thereafter | 1,313 | |
Total | $ 1,097,263 | $ 732,892 |
Deposits (Details Textual) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Deposits (Additional Textual) [Abstract] | ||
Weighted-average interest rate on certificates of deposit | 0.96% | 0.96% |
Aggregate amount of time deposits in denominations of 100,000 | $ 523.4 | $ 290.1 |
Aggregate amount of time deposits in denominations of 250,000 | 78.1 | 81.7 |
Interest-bearing Domestic Deposit, Brokered | $ 243.6 | $ 120.3 |
Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate, NOW accounts | 1.00% | 1.00% |
Weighted Average Rate, Statement savings accounts | 1.13% | 1.00% |
Weighted Average Rate, Money market accounts | 1.50% | 1.45% |
Weighted Average Rate, Certificates of deposit | 3.80% | 3.80% |
Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate, NOW accounts | 0.00% | 0.00% |
Weighted Average Rate, Statement savings accounts | 0.00% | 0.00% |
Weighted Average Rate, Money market accounts | 0.00% | 0.00% |
Weighted Average Rate, Certificates of deposit | 0.05% | 0.05% |
Long-Term Debt (Details) - Subordinated Debt [Member] $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
Rate
| ||||
HomeStreet Statutory Trust Subordinated Debt Securities I [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance Date | Jun. 30, 2005 | |||
Face Amount | $ | $ 5,155 | |||
Basis Spread on Variable Rate - LIBOR plus | Rate | 1.70% | |||
Maturity Date | Jun. 30, 2035 | |||
Call Option | 5 years | [1] | ||
HomeStreet Statutory Trust Subordinated Debt Securities II [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance Date | Sep. 30, 2005 | |||
Face Amount | $ | $ 20,619 | |||
Basis Spread on Variable Rate - LIBOR plus | Rate | 1.50% | |||
Maturity Date | Dec. 31, 2035 | |||
Call Option | 5 years | [1] | ||
HomeStreet Statutory Trust Subordinated Debt Securities III [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance Date | Feb. 28, 2006 | |||
Face Amount | $ | $ 20,619 | |||
Basis Spread on Variable Rate - LIBOR plus | Rate | 1.37% | |||
Maturity Date | Mar. 30, 2036 | |||
Call Option | 5 years | [1] | ||
HomeStreet Statutory Trust Subordinated Debt Securities IV. [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance Date | Mar. 30, 2007 | |||
Face Amount | $ | $ 15,464 | |||
Basis Spread on Variable Rate - LIBOR plus | Rate | 1.68% | |||
Maturity Date | Jun. 30, 2037 | |||
Call Option | 5 years | [1] | ||
|
Long-Term Debt Textual (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||
Long-term Debt | $ 125,122 | $ 61,857 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 65,000 | |
Debt Instrument, Interest Rate | 6.50% | |
Senior Note, Maturity Date | Jun. 01, 2026 | |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 61,857 |
Derivatives and Hedging Activities (Fair Value) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | |||||
Derivative, Fair Value, Net | $ 0 | $ 0 | |||
Notional Amount | 7,491,037 | 2,772,812 | |||
Derivatives before netting, Derivative assets | 92,572 | 28,274 | |||
Netting adjustments, Derivative assets | [1] | 10,991 | 8,971 | ||
Derivative Assets | 103,563 | 37,245 | |||
Derivatives before netting, Derivative Liability | (25,391) | (5,511) | |||
Netting adjustments, Derivative liabilities | [1] | 23,799 | 5,411 | ||
Derivative Liabilities | (1,592) | (100) | |||
Forward Contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 3,902,372 | 1,069,102 | |||
Derivatives before netting, Derivative assets | 3,612 | 1,885 | |||
Derivatives before netting, Derivative Liability | (11,681) | (1,496) | |||
Interest Rate Swaption [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 120,000 | ||||
Derivatives before netting, Derivative assets | 57 | ||||
Derivatives before netting, Derivative Liability | 0 | ||||
Interest Rate Lock Commitments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 1,334,615 | 594,360 | |||
Derivatives before netting, Derivative assets | 45,403 | 17,719 | |||
Derivatives before netting, Derivative Liability | (43) | (8) | |||
Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 2,134,050 | 1,109,350 | |||
Derivatives before netting, Derivative assets | 43,500 | 8,670 | |||
Derivatives before netting, Derivative Liability | (13,667) | (4,007) | |||
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral, as part of netting adjustment | $ 34,800 | $ 14,400 | |||
|
Derivatives and Hedging Activities (Master Netting Agreements) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Derivative [Line Items] | |||||
Gross fair value, Derivative assets | $ 92,572 | $ 28,274 | |||
Netting adjustments, Derivative assets | [1] | 10,991 | 8,971 | ||
Derivative Assets | 103,563 | 37,245 | |||
Securities pledged, Derivative assets | 0 | 0 | |||
Net amount - Derivative assets | 103,563 | 37,245 | |||
Gross fair value, Derivative Liabilities | (25,391) | (5,511) | |||
Netting adjustments, Derivative liabilities | [1] | 23,799 | 5,411 | ||
Derivative Liabilities | (1,592) | (100) | |||
Securities pledged, Derivative liabilities | 2 | 5 | |||
Net amount, Derivative liabilities | (1,590) | (95) | |||
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | |||||
Derivative [Line Items] | |||||
Cash collateral, as part of netting adjustment | $ 34,800 | $ 14,400 | |||
|
Derivatives and Hedging Activities (Gain/loss recognized in income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
||||||||
Loans [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Net gain (loss) recognized on derivatives, including economic hedge | [1] | $ (3,675) | $ (17,135) | $ (4,006) | $ 5,116 | ||||||
Servicing Contracts [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Net gain (loss) recognized on derivatives, including economic hedge | [2] | 3,162 | 22,017 | 57,110 | 17,030 | ||||||
Other Credit Derivatives [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Net gain (loss) recognized on derivatives, including economic hedge | [3] | 2,087 | 0 | 735 | 0 | ||||||
Mortgages [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Net gain (loss) recognized on derivatives, including economic hedge | $ 1,574 | $ 4,882 | $ 53,839 | $ 22,146 | |||||||
|
Derivatives and Hedging Activities Derivative and Hedging Activities - Textual (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives designated as a fair value | $ 0 | $ 0 |
Mortgage Banking Operations (Loans held for sale) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Loans held for sale | |||||||
Loans held for sale | $ 893,513 | $ 650,163 | |||||
Residential Mortgage [Member] | |||||||
Loans held for sale | |||||||
Single family, held-for-sale | 834,144 | 632,273 | |||||
Multifamily DUS [Member] | |||||||
Loans held for sale | |||||||
Loans held for sale | [1] | 26,429 | 11,076 | ||||
Commercial Mortgage, excluding DUS [Member] | |||||||
Loans held for sale | |||||||
Loans held for sale | [2] | $ 32,940 | $ 6,814 | ||||
|
Mortgage Banking Operations (Loans Sold) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|||
Mortgage Loans on Real Estate [Line Items] | ||||||
Loans sold | $ 2,598,154 | $ 2,007,556 | $ 6,432,306 | $ 5,317,534 | ||
Residential Mortgage [Member] | ||||||
Mortgage Loans on Real Estate [Line Items] | ||||||
Loans sold | 2,489,415 | 1,965,223 | 6,134,390 | 5,176,569 | ||
Multifamily DUS [Member] | ||||||
Mortgage Loans on Real Estate [Line Items] | ||||||
Loans sold | 58,484 | 42,333 | 215,848 | 140,965 | ||
Commercial Mortgage, excluding DUS [Member] | ||||||
Mortgage Loans on Real Estate [Line Items] | ||||||
Loans sold | [1] | $ 50,255 | $ 0 | $ 82,068 | $ 0 | |
|
Mortgage Banking Operations (Gain on sale) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
||||||
Gain on mortgage loan origination and sale activities [Line Items] | |||||||||
Net gain on mortgage loan origination and sale activities | $ 92,600 | $ 57,885 | $ 239,493 | $ 189,746 | |||||
Residential Mortgage [Member] | |||||||||
Gain on mortgage loan origination and sale activities [Line Items] | |||||||||
Servicing value and secondary market gains | [1] | 79,946 | 49,613 | 207,758 | 167,786 | ||||
Loan origination and funding fees | 8,931 | 6,362 | 21,614 | 16,452 | |||||
Net gain on mortgage loan origination and sale activities | 88,877 | 55,975 | 229,372 | 184,238 | |||||
Multifamily DUS [Member] | |||||||||
Gain on mortgage loan origination and sale activities [Line Items] | |||||||||
Net gain on mortgage loan origination and sale activities | 2,695 | 1,488 | 7,879 | 4,741 | |||||
Commercial Mortgage, excluding DUS [Member] | |||||||||
Gain on mortgage loan origination and sale activities [Line Items] | |||||||||
Net gain on mortgage loan origination and sale activities | [2] | $ 1,028 | $ 422 | $ 2,242 | $ 767 | ||||
|
Mortgage Banking Operations (Loans serviced for others) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | $ 19,321,569 | $ 16,351,691 |
Single Family Residential [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 18,199,040 | 15,347,811 |
Agency Securities [Member] | Single Family Residential [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 17,593,901 | 14,628,596 |
Single Family other [Member] | Single Family Residential [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 605,139 | 719,215 |
Commercial Portfolio Segment [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 1,122,529 | 1,003,880 |
Commercial Portfolio Segment [Member] | Multifamily DUS [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | 1,055,181 | 924,367 |
Commercial Portfolio Segment [Member] | Commercial Mortgage, excluding DUS [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans serviced for others | $ 67,348 | $ 79,513 |
Mortgage Banking Operations Mortgage Repurchase Liability (Details) - Representations and Warranties Reserve for Loan Receivables [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
||||||
Loss Contingencies [Line Items] | |||||||||
Balance, beginning of period | $ 3,379 | $ 2,480 | $ 2,922 | $ 1,956 | |||||
Additions | [1] | 495 | 883 | 1,407 | 2,052 | ||||
Realized losses | [2] | (251) | (128) | (706) | (773) | ||||
Balance, end of period | $ 3,623 | $ 3,235 | $ 3,623 | $ 3,235 | |||||
|
Mortgage Banking Operations (Servicing income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||
Servicing fees and other | $ 16,053 | $ 11,136 | $ 41,985 | $ 30,256 | |||||||
Changes in fair value of single family MSRs due to modeled amortization | [1] | (8,925) | (8,478) | (23,940) | (26,725) | ||||||
Amortization of multifamily MSRs | (661) | (511) | (1,946) | (1,441) | |||||||
Net Servicing Income | 6,467 | 2,147 | 16,099 | 2,090 | |||||||
Changes in fair value due to changes in model inputs and/or assumptions | [2] | 4,915 | (19,396) | (37,354) | (8,224) | ||||||
Mortgage servicing rights, risk management | 8,077 | 2,621 | 19,756 | 8,806 | |||||||
Mortgage servicing income | 14,544 | 4,768 | 35,855 | 10,896 | |||||||
Servicing Contracts [Member] | |||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||
Net gain from derivatives economically hedging MSR | [3] | 3,162 | 22,017 | 57,110 | 17,030 | ||||||
Mortgages [Member] | |||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||
Net gain from derivatives economically hedging MSR | $ 1,574 | $ 4,882 | $ 53,839 | $ 22,146 | |||||||
|
Mortgage Banking Operations (Key economic assumptions) (Details) |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
||||||||
Rates per annum [Abstract] | |||||||||||
Constant prepayment rate (CPR) | [1],[2] | 14.77% | 14.96% | 15.67% | 14.71% | ||||||
Discount rate | [2],[3] | 10.19% | 10.34% | 10.34% | 10.31% | ||||||
|
Mortgage Banking Operations (Sensitivity analysis) (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||||
Fair value of single family MSR | $ 149,910 | $ 156,604 | ||
Expected weighted-average life (in years) | 4 years 49 days | |||
Constant prepayment rate | [1] | 20.36% | ||
Impact on fair value of 25 basis points decrease | $ (19,011) | |||
Impact on fair value of 50 basis points decrease | $ (37,011) | |||
Discount rate | 10.40% | |||
Impact on fair value of 100 basis points increase | $ (4,121) | |||
Impact on fair value of 200 basis points increase | $ (8,014) | |||
|
Mortgage Banking Operations (SF MSR roll forward) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||||||
Beginning balance | $ 156,604 | ||||||||
Changes due to modeled amortization | [1] | $ (8,925) | $ (8,478) | (23,940) | $ (26,725) | ||||
Changes in fair value due to changes in model inputs and/or assumptions | [2] | 4,915 | (19,396) | (37,354) | (8,224) | ||||
Ending balance | 149,910 | 149,910 | |||||||
Single family MSRs [Member] | |||||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||||||
Beginning balance | 130,900 | 140,588 | 156,604 | 112,439 | |||||
Origination of mortgage servicing rights | 23,020 | 19,984 | 54,600 | 55,202 | |||||
Purchases | 0 | 3 | 0 | 9 | |||||
Changes due to modeled amortization | [1] | (8,925) | (8,478) | (23,940) | (26,725) | ||||
Net additions and amortization of servicing assets | 14,095 | 11,509 | 30,660 | 28,486 | |||||
Changes in fair value due to changes in model inputs and/or assumptions | [2] | 4,915 | (19,396) | (37,354) | (8,224) | ||||
Ending balance | $ 149,910 | $ 132,701 | $ 149,910 | $ 132,701 | |||||
|
Mortgage Banking Operations (MF MSR roll forward) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||
Beginning balance | $ 16,366 | $ 12,649 | $ 14,651 | $ 10,885 |
Origination | 1,886 | 1,241 | 4,886 | 3,935 |
Amortization | (661) | (511) | (1,946) | (1,441) |
Ending balance | $ 17,591 | $ 13,379 | $ 17,591 | $ 13,379 |
Mortgage Banking Operations (MSR projected amortization) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|---|
Projected Amortization Expense [Abstract] | ||||||
2016 | $ 649 | |||||
2017 | 2,494 | |||||
2018 | 2,360 | |||||
2019 | 2,252 | |||||
2020 | 2,168 | |||||
2021 and thereafter | 7,668 | |||||
Carrying value of multifamily MSR | 17,591 | $ 16,366 | $ 14,651 | $ 13,379 | $ 12,649 | $ 10,885 |
Multifamily originations [Member] | ||||||
Projected Amortization Expense [Abstract] | ||||||
Carrying value of multifamily MSR | $ 17,591 |
Mortgage Banking Operations (Details Textual) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Mortgage Banking Operations (Textual) [Abstract] | ||
Servicing Advances | $ 5.3 | $ 9.6 |
Early Buyout Loans [Member] | ||
Mortgage Banking Operations (Textual) [Abstract] | ||
Loans Receivable, in Ginnie Mae pool | $ 29.0 | $ 29.0 |
Multifamily DUS [Member] | ||
Mortgage Banking Operations (Textual) [Abstract] | ||
Weighted average life of company's multifamily MSRs | 10 years 20 days |
Commitments Guarantees and Contingencies (Details Textual) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Loss Contingencies [Line Items] | ||||||||
Unfunded loan commitments | $ 159,500 | $ 159,500 | $ 52,900 | |||||
Allowance for unfunded commitments | $ 1,258 | $ 965 | $ 1,258 | $ 965 | 1,381 | |||
Number of material claims pending | 0 | 0 | ||||||
Undisbursed construction loan funds [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | $ 546,500 | $ 546,500 | 456,400 | |||||
Home Equity and Business Banking Credit Lines [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | 260,600 | 260,600 | 216,500 | |||||
Loss Sharing Relationship [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to multifamily DUS program | 1,700 | 1,700 | 3,000 | |||||
Credit Risk [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to mortgage repurchase | 3,600 | 3,600 | 2,900 | |||||
Multifamily Residential [Member] | Loss Sharing Relationship [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
UPB of loans sold through DUS | 1,055,200 | 1,055,200 | 924,400 | |||||
Losses incurred - related to DUS | 0 | 0 | $ 0 | 0 | ||||
Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of Loss that Lender is Responsible For on Loans Sold under Loss Sharing Agreement | 5.00% | |||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of Loss that Lender is Responsible For on Loans Sold under Loss Sharing Agreement | 20.00% | |||||||
Representations and Warranties Reserve for Loan Receivables [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | 18,270,000 | $ 18,270,000 | 15,430,000 | |||||
Reserve liability related to mortgage repurchase | $ 3,623 | $ 3,235 | $ 3,623 | $ 3,235 | $ 3,379 | $ 2,922 | $ 2,480 | $ 1,956 |
Fair Value Measurement (FV hierarchy - recurring and non-recurring) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Assets: | ||||
Investment securities available for sale | $ 949,075 | $ 541,151 | ||
Single family mortgage servicing rights | 149,910 | 156,604 | ||
Fair value of loans held for sale | 834,144 | 632,273 | ||
Loans held for investment, fair value option | [1] | 20,547 | 21,544 | |
Derivative Assets | 103,563 | 37,245 | ||
Total assets | 2,046,248 | 1,379,845 | ||
Liabilities: | ||||
Derivative Liabilities | 1,592 | 100 | ||
Total Liabilities | 25,391 | 5,511 | ||
Residential Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 152,236 | 68,101 | ||
Commercial Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 27,208 | 17,851 | ||
Municipal Bonds [Member] | ||||
Assets: | ||||
Investment securities available for sale | 355,344 | 171,869 | ||
Collateralized Mortgage Obligations Residential [Member] | ||||
Assets: | ||||
Investment securities available for sale | 182,833 | 84,497 | ||
Collateralized Mortgage Obligations Commercial [Member] | ||||
Assets: | ||||
Investment securities available for sale | 120,259 | 79,133 | ||
Corporate Debt Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 85,191 | 78,736 | ||
US Treasury securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 26,004 | 40,964 | ||
Level 1 [Member] | ||||
Assets: | ||||
Single family mortgage servicing rights | 0 | 0 | ||
Fair value of loans held for sale | 0 | 0 | ||
Loans held for investment, fair value option | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities: | ||||
Total Liabilities | 0 | 0 | ||
Level 1 [Member] | Residential Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 1 [Member] | Municipal Bonds [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 1 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 1 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 1 [Member] | Corporate Debt Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 1 [Member] | US Treasury securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 2 [Member] | ||||
Assets: | ||||
Single family mortgage servicing rights | 0 | 0 | ||
Fair value of loans held for sale | 789,844 | 582,951 | ||
Loans held for investment, fair value option | 0 | 0 | ||
Total assets | 1,786,088 | 1,134,656 | ||
Liabilities: | ||||
Total Liabilities | 25,348 | 5,503 | ||
Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 152,236 | 68,101 | ||
Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 27,208 | 17,851 | ||
Level 2 [Member] | Municipal Bonds [Member] | ||||
Assets: | ||||
Investment securities available for sale | 355,344 | 171,869 | ||
Level 2 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||||
Assets: | ||||
Investment securities available for sale | 182,833 | 84,497 | ||
Level 2 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||||
Assets: | ||||
Investment securities available for sale | 120,259 | 79,133 | ||
Level 2 [Member] | Corporate Debt Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 85,191 | 78,736 | ||
Level 2 [Member] | US Treasury securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 26,004 | 40,964 | ||
Level 3 [Member] | ||||
Assets: | ||||
Single family mortgage servicing rights | 149,910 | 156,604 | ||
Fair value of loans held for sale | 44,300 | 49,322 | ||
Loans held for investment, fair value option | 20,547 | 21,544 | ||
Total assets | 260,160 | 245,189 | ||
Liabilities: | ||||
Total Liabilities | 43 | 8 | ||
Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 3 [Member] | Municipal Bonds [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 3 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 3 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 3 [Member] | Corporate Debt Securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Level 3 [Member] | US Treasury securities [Member] | ||||
Assets: | ||||
Investment securities available for sale | 0 | 0 | ||
Forward Contracts [Member] | ||||
Assets: | ||||
Derivative Assets | 3,612 | 1,884 | ||
Liabilities: | ||||
Derivative Liabilities | 11,681 | 1,496 | ||
Forward Contracts [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivative Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative Liabilities | 0 | 0 | ||
Forward Contracts [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivative Assets | 3,612 | 1,884 | ||
Liabilities: | ||||
Derivative Liabilities | 11,681 | 1,496 | ||
Forward Contracts [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivative Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative Liabilities | 0 | 0 | ||
Interest Rate Swaption [Member] | ||||
Assets: | ||||
Derivative Assets | 57 | |||
Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Derivative Assets | 45,403 | 17,719 | ||
Liabilities: | ||||
Derivative Liabilities | 43 | 8 | ||
Interest Rate Lock Commitments [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivative Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative Liabilities | 0 | 0 | ||
Interest Rate Lock Commitments [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivative Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative Liabilities | 0 | 0 | ||
Interest Rate Lock Commitments [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivative Assets | 45,403 | 17,719 | ||
Liabilities: | ||||
Derivative Liabilities | 43 | 8 | ||
Interest Rate Swap [Member] | ||||
Assets: | ||||
Derivative Assets | 43,500 | 8,670 | ||
Liabilities: | ||||
Derivative Liabilities | 13,667 | 4,007 | ||
Interest Rate Swap [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivative Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative Liabilities | 0 | 0 | ||
Interest Rate Swap [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivative Assets | 43,500 | 8,670 | ||
Liabilities: | ||||
Derivative Liabilities | 13,667 | 4,007 | ||
Interest Rate Swap [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivative Assets | 0 | 0 | ||
Liabilities: | ||||
Derivative Liabilities | 0 | $ 0 | ||
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaption [Member] | Level 1 [Member] | ||||
Assets: | ||||
Derivative Assets | 0 | |||
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaption [Member] | Level 2 [Member] | ||||
Assets: | ||||
Derivative Assets | 57 | |||
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaption [Member] | Level 3 [Member] | ||||
Assets: | ||||
Derivative Assets | $ 0 | |||
|
Fair Value Measurement (Quantitative Information) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Loans held for investment, fair value option | [1] | $ 20,547 | $ 21,544 | |||||
Loans held for sale, fair value | $ 834,144 | $ 632,273 | ||||||
Minimum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Market price movement from comparable bond | 0.00% | (0.43%) | ||||||
Maximum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Market price movement from comparable bond | 0.52% | (0.06%) | ||||||
Weighted Average [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Market price movement from comparable bond | 0.47% | (0.27%) | ||||||
Loans held for investment [Member] | Minimum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Implied spread | 4.22% | 3.26% | ||||||
Loans held for investment [Member] | Maximum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Implied spread | 6.33% | 4.35% | ||||||
Loans held for investment [Member] | Weighted Average [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Implied spread | 5.12% | 4.01% | ||||||
Loans held for sale [Member] | Minimum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Implied spread | 3.82% | 2.68% | ||||||
Loans held for sale [Member] | Maximum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Implied spread | 5.00% | 7.62% | ||||||
Loans held for sale [Member] | Weighted Average [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Implied spread | 4.70% | 3.91% | ||||||
Interest Rate Lock Commitments [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Interest rate lock and purchase loan commitment | $ 45,360 | $ 17,711 | $ 39,991 | $ 26,209 | $ 23,487 | $ 11,933 | ||
Interest Rate Lock Commitments [Member] | Minimum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fall out factor | 0.00% | 0.60% | ||||||
Value of servicing | 0.55% | 0.53% | ||||||
Interest Rate Lock Commitments [Member] | Maximum [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fall out factor | 61.84% | 61.16% | ||||||
Value of servicing | 1.75% | 1.71% | ||||||
Interest Rate Lock Commitments [Member] | Weighted Average [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fall out factor | 12.79% | 15.80% | ||||||
Value of servicing | 0.96% | 0.80% | ||||||
Level 3 [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Loans held for investment, fair value option | $ 20,547 | $ 21,544 | ||||||
Loans held for sale, fair value | $ 44,300 | $ 49,322 | ||||||
|
Fair Value Measurement (Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) - Interest Rate Lock Commitments [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance, net | $ 39,991 | $ 23,487 | $ 17,711 | $ 11,933 |
Total realized/unrealized gains | 56,752 | 43,784 | 160,047 | 131,930 |
Settlements | (51,383) | (41,062) | (132,398) | (117,654) |
Ending balance, net | $ 45,360 | $ 26,209 | $ 45,360 | $ 26,209 |
Fair Value Measurement (FV Unobservable inputs - nonrecurring basis) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans held for investment | $ 949,075 | $ 949,075 | $ 541,151 | |||||||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | ||||||||||
Gains/losses on loans held for investment | 863 | $ (1,797) | ||||||||
Fair Value, Measurements, Nonrecurring [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans held for investment | [1] | 10,570 | $ 9,171 | 10,570 | 9,171 | |||||
Other real estate owned | [2] | 5,755 | 6,532 | 5,755 | 6,532 | |||||
Total | 16,325 | 15,703 | 16,325 | 15,703 | ||||||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | ||||||||||
Gains/losses on loans held for investment | [1] | (750) | (375) | (827) | (287) | |||||
Gains/losses on other real estate owned | [2] | (1,160) | (399) | (1,551) | (399) | |||||
Total gains/(losses) | (1,910) | (774) | (2,378) | (686) | ||||||
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans held for investment | [1] | 0 | 0 | 0 | 0 | |||||
Other real estate owned | [2] | 0 | 0 | 0 | 0 | |||||
Total | 0 | 0 | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans held for investment | [1] | 0 | 0 | 0 | 0 | |||||
Other real estate owned | [2] | 0 | 0 | 0 | 0 | |||||
Total | 0 | 0 | 0 | 0 | ||||||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Loans held for investment | [1] | 10,570 | 9,171 | 10,570 | 9,171 | |||||
Other real estate owned | [2] | 5,755 | 6,532 | 5,755 | 6,532 | |||||
Total | $ 16,325 | $ 15,703 | $ 16,325 | $ 15,703 | ||||||
|
Fair Value Measurement (FV of financial instruments) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
||
---|---|---|---|---|---|---|---|---|
Assets: | ||||||||
Fair value of loans held for investment | [1] | $ 20,547 | $ 21,544 | |||||
Loans held for sale, fair value | 834,144 | 632,273 | ||||||
Mortgage servicing rights - multifamily | 17,591 | $ 16,366 | 14,651 | $ 13,379 | $ 12,649 | $ 10,885 | ||
Carrying value [Member] | ||||||||
Assets: | ||||||||
Cash and cash equivalents | 55,998 | 32,684 | ||||||
Investment securities held to maturity | 42,250 | 31,013 | ||||||
Fair value of loans held for investment | 3,743,631 | 3,171,176 | ||||||
Loans held for sale - transferred from held for investment | 26,514 | 6,814 | ||||||
Federal Home Loan Bank Stock | 39,783 | 44,342 | ||||||
Liabilities: | ||||||||
Deposits | 4,504,560 | 3,231,953 | ||||||
Federal Home Loan Bank advances | 858,923 | 1,018,159 | ||||||
Long-term debt | 125,122 | 61,857 | ||||||
Fair value [Member] | ||||||||
Assets: | ||||||||
Cash and cash equivalents | 55,998 | 32,684 | ||||||
Investment securities held to maturity | 43,364 | 31,387 | ||||||
Fair value of loans held for investment | 3,835,362 | 3,255,740 | ||||||
Loans held for sale - transferred from held for investment | 26,514 | 6,814 | ||||||
Federal Home Loan Bank Stock | 39,783 | 44,342 | ||||||
Liabilities: | ||||||||
Deposits | 4,488,239 | 3,229,670 | ||||||
Federal Home Loan Bank advances | 862,420 | 1,021,344 | ||||||
Long-term debt | 125,859 | 60,239 | ||||||
Level 1 [Member] | ||||||||
Assets: | ||||||||
Fair value of loans held for investment | 0 | 0 | ||||||
Loans held for sale, fair value | 0 | 0 | ||||||
Level 1 [Member] | Fair value [Member] | ||||||||
Assets: | ||||||||
Cash and cash equivalents | 55,998 | 32,684 | ||||||
Investment securities held to maturity | 0 | 0 | ||||||
Fair value of loans held for investment | 0 | 0 | ||||||
Loans held for sale - transferred from held for investment | 0 | 0 | ||||||
Federal Home Loan Bank Stock | 0 | 0 | ||||||
Liabilities: | ||||||||
Deposits | 0 | 0 | ||||||
Federal Home Loan Bank advances | 0 | 0 | ||||||
Long-term debt | 0 | 0 | ||||||
Level 2 [Member] | ||||||||
Assets: | ||||||||
Fair value of loans held for investment | 0 | 0 | ||||||
Loans held for sale, fair value | 789,844 | 582,951 | ||||||
Level 2 [Member] | Fair value [Member] | ||||||||
Assets: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Investment securities held to maturity | 43,364 | 31,387 | ||||||
Fair value of loans held for investment | 0 | 0 | ||||||
Loans held for sale - transferred from held for investment | 0 | 0 | ||||||
Federal Home Loan Bank Stock | 39,783 | 44,342 | ||||||
Liabilities: | ||||||||
Deposits | 4,488,239 | 3,229,670 | ||||||
Federal Home Loan Bank advances | 862,420 | 1,021,344 | ||||||
Long-term debt | 125,859 | 60,239 | ||||||
Level 3 [Member] | ||||||||
Assets: | ||||||||
Fair value of loans held for investment | 20,547 | 21,544 | ||||||
Loans held for sale, fair value | 44,300 | 49,322 | ||||||
Level 3 [Member] | Fair value [Member] | ||||||||
Assets: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Investment securities held to maturity | 0 | 0 | ||||||
Fair value of loans held for investment | 3,835,362 | 3,255,740 | ||||||
Loans held for sale - transferred from held for investment | 26,514 | 6,814 | ||||||
Federal Home Loan Bank Stock | 0 | 0 | ||||||
Liabilities: | ||||||||
Deposits | 0 | 0 | ||||||
Federal Home Loan Bank advances | 0 | 0 | ||||||
Long-term debt | 0 | 0 | ||||||
Multifamily Residential [Member] | Carrying value [Member] | ||||||||
Assets: | ||||||||
Loans held for sale, fair value | 32,855 | 11,076 | ||||||
Mortgage servicing rights - multifamily | 17,591 | 14,651 | ||||||
Multifamily Residential [Member] | Fair value [Member] | ||||||||
Assets: | ||||||||
Loans held for sale, fair value | 32,855 | 11,076 | ||||||
Mortgage servicing rights - multifamily | 19,393 | 16,412 | ||||||
Multifamily Residential [Member] | Level 1 [Member] | Fair value [Member] | ||||||||
Assets: | ||||||||
Loans held for sale, fair value | 0 | 0 | ||||||
Mortgage servicing rights - multifamily | 0 | 0 | ||||||
Multifamily Residential [Member] | Level 2 [Member] | Fair value [Member] | ||||||||
Assets: | ||||||||
Loans held for sale, fair value | 32,855 | 11,076 | ||||||
Mortgage servicing rights - multifamily | 0 | 0 | ||||||
Multifamily Residential [Member] | Level 3 [Member] | Fair value [Member] | ||||||||
Assets: | ||||||||
Loans held for sale, fair value | 0 | 0 | ||||||
Mortgage servicing rights - multifamily | $ 19,393 | $ 16,412 | ||||||
|
Fair Value Measurement (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 | $ 0 | $ 0 | |||
Fair value of loans held for investment | [1] | 20,547 | 20,547 | $ 21,544 | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 | |||
Loans Receivable [Member] | Minimum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Range of stated value | 7.00% | 26.20% | 7.00% | 25.00% | |||
Loans Receivable [Member] | Maximum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Range of stated value | 7.00% | 100.00% | 63.40% | 100.00% | |||
Loans Receivable [Member] | Weighted Average [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Range of stated value | 7.00% | 35.20% | 58.40% | 36.30% | |||
Real Estate Acquired in Satisfaction of Debt [Member] | Minimum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Range of stated value | 27.40% | 0.00% | 27.40% | 0.00% | |||
Real Estate Acquired in Satisfaction of Debt [Member] | Maximum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Range of stated value | 49.10% | 0.00% | 49.10% | 0.00% | |||
Real Estate Acquired in Satisfaction of Debt [Member] | Weighted Average [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Range of stated value | 32.10% | 0.00% | 32.10% | 0.00% | |||
Early Buyout Loans [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Loans Receivable, Net | $ 29,000 | $ 29,000 | $ 29,000 | ||||
|
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|||
Earnings Per Share [Abstract] | ||||||
Net income | $ 27,701 | $ 9,961 | $ 55,857 | $ 32,641 | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ 27,701 | $ 9,756 | $ 35,355 | |||
Weighted average shares: | ||||||
Basic weighted average number of shares outstanding | 24,811,169 | 22,035,317 | 24,398,683 | 20,407,386 | ||
Dilutive effect of outstanding common stock equivalents (in shares) | [1] | 185,578 | 256,493 | 196,665 | 239,154 | |
Diluted weighted-average number of shares outstanding | 24,996,747 | 22,291,810 | 24,595,348 | 20,646,540 | ||
Earnings per share: | ||||||
Basic earnings per share (in dollars per share) | $ 1.12 | $ 0.45 | $ 2.29 | $ 1.60 | ||
Diluted income per share (in dollars per share) | $ 1.11 | $ 0.45 | $ 2.27 | $ 1.58 | ||
|
Earnings Per Share (Details Textual) - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Earnings Per Share (Textual) [Abstract] | ||
Aggregate number of common stock equivalents and unvested restricted stock (in shares) | 0 | 0 |
Business Segments (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
segment
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
||||
Segment Reporting Information [Line Items] | ||||||||
Number of loan portfolio segments | segment | 2 | |||||||
Condensed income statement: | ||||||||
Net interest income | [1] | $ 46,802 | $ 39,634 | $ 131,975 | $ 108,598 | |||
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 | ||||
Noninterest Income | 111,745 | 67,468 | 285,929 | 215,828 | ||||
Noninterest expense | 114,399 | 92,026 | 326,783 | 273,843 | ||||
Income before income taxes | 42,898 | 14,376 | 87,371 | 46,383 | ||||
Income tax expense | 15,197 | 4,415 | 31,514 | 13,742 | ||||
Net income | 27,701 | 9,961 | 55,857 | 32,641 | ||||
Total Assets | 6,226,601 | 4,975,653 | 6,226,601 | 4,975,653 | $ 4,894,495 | |||
Mortgage Banking [Member] | ||||||||
Condensed income statement: | ||||||||
Net interest income | [1] | 7,463 | 8,125 | 18,597 | 21,337 | |||
Provision for credit losses | 0 | 0 | 0 | 0 | ||||
Noninterest Income | 101,974 | 60,584 | 263,334 | 195,239 | ||||
Noninterest expense | 82,229 | 63,916 | 223,880 | 180,787 | ||||
Income before income taxes | 27,208 | 4,793 | 58,051 | 35,789 | ||||
Income tax expense | 9,640 | 1,632 | 20,948 | 12,788 | ||||
Net income | 17,568 | 3,161 | 37,103 | 23,001 | ||||
Total Assets | 1,103,899 | 1,089,832 | 1,103,899 | 1,089,832 | ||||
Consumer and Commercial Banking [Member] | ||||||||
Condensed income statement: | ||||||||
Net interest income | [1] | 39,339 | 31,509 | 113,378 | 87,261 | |||
Provision for credit losses | 1,250 | 700 | 3,750 | 4,200 | ||||
Noninterest Income | 9,771 | 6,884 | 22,595 | 20,589 | ||||
Noninterest expense | 32,170 | 28,110 | 102,903 | 93,056 | ||||
Income before income taxes | 15,690 | 9,583 | 29,320 | 10,594 | ||||
Income tax expense | 5,557 | 2,783 | 10,566 | 954 | ||||
Net income | 10,133 | 6,800 | 18,754 | 9,640 | ||||
Total Assets | $ 5,122,702 | $ 3,885,821 | $ 5,122,702 | $ 3,885,821 | ||||
|
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accumulated Other Comprehensive Income [Abstract] | ||||
Beginning balance | $ 9,748 | $ (582) | $ (2,449) | $ 1,546 |
Other comprehensive income (loss) before reclassifications | (1,786) | 2,926 | 10,474 | 798 |
Amount reclassified from accumulated other comprehensive income | (31) | (651) | (94) | (651) |
Other comprehensive income (loss) | (1,817) | 2,275 | 10,380 | 147 |
Ending balance | $ 7,931 | $ 1,693 | $ 7,931 | $ 1,693 |
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accumulated Other Comprehensive Income [Abstract] | ||||
Gain on sale of investment securities available for sale | $ 48 | $ 1,002 | $ 145 | $ 1,002 |
Income tax expense | 17 | 351 | 51 | 351 |
Total, net of tax | $ 31 | $ 651 | $ 94 | $ 651 |
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