Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 07, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HomeStreet, Inc. | ||
Entity Central Index Key | 1,518,715 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 24,550,296.6 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 380,470 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents (including interest-earning instruments of $2,079 and $10,271) | $ 32,684 | $ 30,502 |
Investment securities (includes $541,151and $427,326 carried at fair value) | 572,164 | 455,332 |
Loans held for sale (includes $632,273 and $610,350 carried at fair value) | 650,163 | 621,235 |
Loans held for investment (net of allowance for loan losses of $29,278 and $22,021; includes $21,544 and $0 carried at fair value) | 3,192,720 | 2,099,129 |
Mortgage servicing rights (includes $156,604 and $112,439 carried at fair value) | 171,255 | 123,324 |
Other real estate owned | 7,531 | 9,448 |
Federal Home Loan Bank stock, at cost | 44,342 | 33,915 |
Premises and equipment, net | 63,738 | 45,251 |
Goodwill | 11,521 | 11,945 |
Other assets | 148,377 | 105,009 |
Total assets | 4,894,495 | 3,535,090 |
Liabilities: | ||
Deposits | 3,231,953 | 2,445,430 |
Federal Home Loan Bank advances | 1,018,159 | 597,590 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 0 | 50,000 |
Accounts payable and other liabilities | 117,251 | 77,975 |
Long-term debt | 61,857 | 61,857 |
Total liabilities | $ 4,429,220 | $ 3,232,852 |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Preferred stock, no par value, authorized 10,000 shares, issued and outstanding, 0 shares and 0 shares | $ 0 | $ 0 |
Common stock, no par value, authorized 160,000,000, issued and outstanding, 22,076,534 shares and 14,856,611 shares | 511 | 511 |
Additional paid-in capital | 222,328 | 96,615 |
Retained earnings | 244,885 | 203,566 |
Accumulated other comprehensive (loss) income | (2,449) | 1,546 |
Total shareholders' equity | 465,275 | 302,238 |
Total liabilities and shareholders' equity | $ 4,894,495 | $ 3,535,090 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ / shares in Thousands, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest-bearing instruments | $ 2,079 | $ 10,271 | |
Investment securities held at fair value (AFS) | 541,151 | 427,326 | |
Fair value of loans held for sale | 632,273 | 610,350 | |
Allowance for losses on loans held for investment | (29,278) | (22,021) | |
Fair value of loans held for investment | 21,544 | [1] | 0 |
Fair value of single family MSR | $ 156,604 | $ 112,439 | |
Preferred stock, par value | $ 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 | $ 0 | $ 0 | |
Common stock, shares authorized | 160,000,000 | 160,000,000 | |
Common stock, shares issued | 22,076,534 | 14,856,611 | |
Common stock, shares outstanding | 22,076,534 | 14,856,611 | |
[1] | Includes $21.5 million of loans at December 31, 2015 where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Interest income: | |||||
Loans | $ 152,621 | $ 100,107 | $ 76,442 | ||
Investment securities | 11,590 | 10,565 | 12,391 | ||
Other | 903 | 621 | 143 | ||
Total interest income | 165,114 | 111,293 | 88,976 | ||
Interest expense: | |||||
Deposits | 11,801 | 9,431 | 10,416 | ||
Federal Home Loan Bank advances | 3,668 | 1,980 | 1,532 | ||
Federal funds purchased and securities sold under agreements to repurchase | 8 | 22 | 11 | ||
Long-term debt | 1,104 | 1,120 | 2,546 | ||
Other | 195 | 71 | 27 | ||
Total interest expense | 16,776 | 12,624 | 14,532 | ||
Net interest income | 148,338 | 98,669 | [1] | 74,444 | [1] |
Provision (reversal of provision) for credit losses | 6,100 | (1,000) | 900 | ||
Net interest income after provision for credit losses | 142,238 | 99,669 | 73,544 | ||
Noninterest income: | |||||
Net gain on mortgage loan origination and sale activities | 236,388 | 144,122 | 164,712 | ||
Mortgage servicing income | 24,431 | 34,092 | 17,073 | ||
Income from WMS Series LLC | 1,624 | 101 | 704 | ||
Loss on debt extinguishment | 0 | (573) | 0 | ||
Depositor and other retail banking fees | 5,881 | 3,572 | 3,172 | ||
Insurance agency commissions | 1,682 | 1,153 | 864 | ||
Gain on sale of investment securities available for sale | 2,406 | 2,358 | 1,772 | ||
Bargain purchase gain | 7,726 | 0 | 0 | ||
Other | 1,099 | 832 | 2,448 | ||
Total noninterest income | 281,237 | 185,657 | 190,745 | ||
Noninterest expense: | |||||
Salaries and related costs | 240,587 | 163,387 | 149,440 | ||
General and administrative | 58,745 | 42,833 | 40,366 | ||
Legal | 2,807 | 2,071 | 2,552 | ||
Consulting | 7,215 | 3,224 | 5,637 | ||
Federal Deposit Insurance Corporation assessments | 2,573 | 2,316 | 1,433 | ||
Occupancy | 24,927 | 18,598 | 13,765 | ||
Information services | 29,054 | 20,052 | 14,491 | ||
Net cost (income) from operation and sale of other real estate owned | (660) | 470 | (1,811) | ||
Total noninterest expense | 366,568 | 252,011 | 229,495 | ||
Income before income taxes | 56,907 | 33,315 | 34,794 | ||
Income tax expense | 15,588 | 11,056 | 10,985 | ||
NET INCOME | $ 41,319 | $ 22,259 | $ 23,809 | ||
Basic income per share | $ 1.98 | $ 1.50 | $ 1.65 | ||
Diluted income per share | 1.96 | 1.49 | 1.61 | ||
Dividend paid on common stock per share | $ 0 | $ 0.11 | $ 0.33 | ||
Basic weighted average number of shares outstanding | 20,818,045 | 14,800,689 | 14,412,059 | ||
Diluted weighted average number of shares outstanding | 21,059,201 | 14,961,081 | 14,798,168 | ||
[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 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 8,678 | $ 9,961 | $ 12,376 | $ 10,304 | $ 5,621 | $ 4,975 | $ 9,362 | $ 2,301 | $ 41,319 | $ 22,259 | $ 23,809 |
Unrealized (loss) gain on investment securities available for sale: | |||||||||||
Unrealized holding (loss) gain arising during the year, net of tax (benefit) expense of $(713), $8,116 and $(10,786) | (1,325) | 15,072 | (20,032) | ||||||||
Reclassification adjustment for net gains included in net income, net of tax (benefit) expense of ($264), $826 and $620 | (2,670) | (1,532) | (1,152) | ||||||||
Other comprehensive (loss) income | (3,995) | 13,540 | (21,184) | ||||||||
Comprehensive income | $ 37,324 | $ 35,799 | $ 2,625 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax (benefit) expense on unrealized holding gain on securities | $ (713) | $ 8,116 | $ (10,787) |
Tax (benefit) expense on reclassification adjustment for net gain on securities included in net income | $ (264) | $ 826 | $ 620 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Dividends per share | $ 0.33 | ||||
Beginning balance at Dec. 31, 2012 | $ 263,762 | $ 511 | $ 90,189 | $ 163,872 | $ 9,190 |
Common Stock, Shares, Outstanding at Dec. 31, 2012 | 14,382,638 | ||||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Net income | 23,809 | $ 0 | 0 | 23,809 | 0 |
Dividends | (4,746) | 0 | 0 | (4,746) | 0 |
Share-based compensation expense | 4,097 | 0 | 4,097 | 0 | 0 |
Common stock issued | 188 | 0 | 188 | 0 | 0 |
Other comprehensive loss | (21,184) | 0 | 0 | 0 | (21,184) |
Ending balance at Dec. 31, 2013 | $ 265,926 | $ 511 | 94,474 | 182,935 | (11,994) |
Common Stock, Shares, Outstanding at Dec. 31, 2013 | 14,799,991 | ||||
Number of Shares [Abstract] | |||||
Common stock issued, shares | 417,353 | ||||
Dividends per share | $ 0.11 | ||||
Net income | $ 22,259 | $ 0 | 0 | 22,259 | 0 |
Dividends | (1,628) | 0 | 0 | (1,628) | 0 |
Share-based compensation expense | 1,767 | 0 | 1,767 | 0 | 0 |
Common stock issued | 374 | 0 | 374 | 0 | 0 |
Other comprehensive loss | 13,540 | 0 | 0 | 0 | 13,540 |
Ending balance at Dec. 31, 2014 | $ 302,238 | $ 511 | 96,615 | 203,566 | 1,546 |
Common Stock, Shares, Outstanding at Dec. 31, 2014 | 14,856,611 | 14,856,611 | |||
Number of Shares [Abstract] | |||||
Common stock issued, shares | 56,620 | ||||
Dividends per share | $ 0 | ||||
Net income | $ 41,319 | $ 0 | 0 | 41,319 | 0 |
Share-based compensation expense | 1,267 | 0 | 1,267 | 0 | 0 |
Common stock issued | 124,446 | 0 | 124,446 | 0 | 0 |
Other comprehensive loss | (3,995) | 0 | 0 | 0 | (3,995) |
Ending balance at Dec. 31, 2015 | $ 465,275 | $ 511 | $ 222,328 | $ 244,885 | $ (2,449) |
Common Stock, Shares, Outstanding at Dec. 31, 2015 | 22,076,534 | 22,076,534 | |||
Number of Shares [Abstract] | |||||
Common stock issued, shares | 7,219,923 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity Statements of Shareholder's Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends per share | $ 0 | $ 0.11 | $ 0.33 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 41,319 | $ 22,259 | $ 23,809 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 14,877 | 17,503 | 14,947 |
Provision (reversal of provision) for credit losses | 6,100 | (1,000) | 900 |
Fair value adjustment of loans held for sale | 9,632 | (15,350) | 23,776 |
Fair value adjustment of loans held for investment | 2,000 | 0 | 0 |
Origination of mortgage servicing rights | (76,417) | (46,492) | (63,604) |
Change in fair value of mortgage servicing rights | 27,483 | 40,691 | (5,134) |
Net gain on sale of investment securities | (2,406) | (2,358) | (1,772) |
Net gain on sale of loans originated as held for investment | (456) | (4,586) | 0 |
Net fair value adjustment, gain on sale and provision for losses on other real estate owned | 176 | (872) | (337) |
Loss on early retirement of long-term debt | 0 | 573 | 0 |
Loss on disposal of fixed assets | 61 | 0 | 0 |
Net deferred income tax expense (benefit) | 16,389 | (13,664) | 21,076 |
Share-based compensation expense | 1,060 | 1,516 | 1,498 |
Bargain purchase gain | (7,726) | 0 | 0 |
Origination of loans held for sale | 7,265,622 | 3,795,111 | 4,428,569 |
Proceeds from sale of loans originated as held for sale | 7,243,990 | 3,420,142 | 4,745,651 |
Cash used by changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable and other assets | (12,151) | 25,420 | (11,212) |
Increase (decrease) in accounts payable and other liabilities | 10,002 | 2,693 | (16,999) |
Net cash provided by (used in) operating activities | 8,311 | (348,636) | 304,030 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of investment securities | (247,713) | (60,548) | (317,695) |
Proceeds from sale of investment securities | 112,259 | 96,154 | 127,648 |
Principal repayments and maturities of investment securities | 36,798 | 24,013 | 70,962 |
Proceeds from sale of other real estate owned | 6,110 | 9,138 | 19,656 |
Proceeds from sale of loans originated as held for investment | 34,111 | 271,409 | 86,327 |
Proceeds from sale of mortgage servicing rights | 4,325 | 39,004 | 0 |
Mortgage servicing rights purchased from others | (9) | (19) | (22) |
Capital expenditures related to other real estate owned | 0 | 0 | (22) |
Origination of loans held for investment and principal repayments, net | (476,062) | (443,492) | (447,873) |
Purchase of property and equipment | (20,560) | (19,898) | (22,836) |
Net cash acquired from acquisitions | 132,407 | 0 | 23,971 |
Net cash used in investing activities | (418,334) | (84,239) | (459,884) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Increase (decrease) in deposits, net | 111,906 | 231,871 | (27,129) |
Proceeds from Federal Home Loan Bank advances | 10,618,900 | 6,704,054 | 5,847,392 |
Repayment of Federal Home Loan Bank advances | (10,263,900) | (6,553,054) | (5,659,892) |
Federal funds purchased and proceeds from securities sold under agreements to repurchase | 82,204 | 108,308 | 159,790 |
Repayment of securities sold under agreements to repurchase | (132,204) | (58,308) | (159,790) |
Proceeds from Federal Home Loan Bank stock repurchase | 153,657 | 1,373 | 1,319 |
Purchase of Federal Home Loan Bank stock | (158,565) | 0 | 0 |
Repayment of long-term debt | 0 | (3,527) | 0 |
Dividends paid | 0 | (1,628) | 0 |
Proceeds from stock issuance, net | 178 | 130 | 188 |
Excess tax benefit related to the exercise of stock options | 29 | 250 | 2,599 |
Net cash provided by financing activities | 412,205 | 429,469 | 164,477 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,182 | (3,406) | 8,623 |
CASH AND CASH EQUIVALENTS: | |||
Beginning of year | 30,502 | 33,908 | 25,285 |
End of period | 32,684 | 30,502 | 33,908 |
Cash paid during the period for - | |||
Interest paid | 16,647 | 14,271 | 28,373 |
Federal and state income taxes paid, net of refunds | 11,328 | 6,626 | 6,799 |
Noncash investing activities - | |||
Loans held for investment foreclosed and transferred to other real estate owned | 4,396 | 5,556 | 12,807 |
Loans transferred from held for investment to held for sale | 76,178 | 310,455 | 93,567 |
Loans transferred from held for sale to held for investment | 25,668 | 92,668 | 0 |
Ginnie Mae loans recognized with the right to repurchase, net | 7,857 | 6,840 | 6,360 |
Receivable from sale of mortgage servicing rights | 0 | 4,244 | 0 |
Assets acquired, excluding cash acquired | 738,279 | 0 | 0 |
Liabilities assumed | 718,916 | 0 | 0 |
Bargain purchase gain | 7,345 | 0 | 0 |
Common stocks issued | $ 124,214 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 Pacific Northwest, California and 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 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 5, Loans and Credit Quality ), valuation of residential mortgage servicing rights and loans held for sale (Note 12, Mortgage Banking Operations ), loans held for investment (Note 5, Loans and Credit Quality ), investment securities (Note 4, Investment Securities ), derivatives (Note 11, Derivatives and Hedging Activities ), other real estate owned (Note 6, Other Real Estate Owned ), and taxes (Note 14, Income Taxes ). Actual results could differ materially from those estimates. Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. Consolidation The Company consolidates legal entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest by first evaluating whether an entity is a variable interest entity ("VIE"). If an entity is determined to not be a VIE, it is considered to be a voting interest entity. Variable Interest Entities The Company may have variable interests in VIEs arising from debt, equity or other monetary interests in an entity, which change with fluctuations in the fair value of the entity's assets. VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company's loans held for sale are sold predominantly to government-sponsored enterprises ("GSEs") Fannie Mae, Freddie Mac and Ginnie Mae for the purpose of securitization by the GSEs, who also provide credit enhancement of the loans through certain guarantee provisions. The Company typically retains the right to service the loans. Because of the power of the GSEs over the VIEs that hold the assets from these residential mortgage loan securitizations, the Company is not the primary beneficiary of the VIEs and therefore the VIEs are not consolidated. The Company performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and therefore become subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Company's involvement with a VIE cause the Company's consolidation determination to change. Voting Interest Entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity's operations. For these types of entities, the Company's determination of whether it has a controlling financial interest is primarily based on the amount of voting equity interests held. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities' voting equity interests, or through other contractual rights that give the Company control, are consolidated by the Company. Investments in entities in which the Company has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for in accordance with the equity method of accounting (which requires the Company to recognize its proportionate share of the entity's net earnings). These investments are generally included in other assets. The Company may have investments in limited partnerships or limited liability companies. The Company generally consolidates entities where it is the general partner or managing member. However, certain entities may provide limited partners or members with the ability to remove the Company as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the limited partners or members have rights to participate in important decisions of the entity. Accordingly, the Company does not consolidate these entities, in which case they are accounted for in accordance with the equity method of accounting. For equity method investments holding real estate acquired in any manner for debts previously contracted with the Company, the investment is included in other real estate owned in the consolidated statements of financial condition and the proportionate share of the entity's net earnings are included in other real estate owned expense in the consolidated statements of operations. Cash and Cash Equivalents Cash and cash equivalents include cash, interest-earning overnight deposits at other financial institutions, and other investments with original maturities equal to three months or less. For the consolidated statements of cash flows, the Company considered cash equivalents to be investments that are readily convertible to known amounts, so near to their maturity that they present an insignificant risk of a change in fair value due to change in interest rates, and purchased in conjunction with cash management activities. Restricted cash of $2.4 million at both December 31, 2015 and 2014 is included in accounts receivable and other assets for reinsurance-related reserves. Investment Securities Investment securities that we might not hold until maturity are classified as available for sale ("AFS") and are reported at fair value in the statement of financial condition. Fair value measurement is based upon quoted market prices in active markets, if available. If quoted prices in active markets are not available, fair value is measured using pricing models or other model-based valuation techniques such as the present value of future cash flows, which consider prepayment assumptions and other factors such as credit losses and market liquidity. Unrealized gains and losses are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). Purchase premiums and discounts are recognized in interest income using the effective interest method over the life of the securities. Purchase premiums or discounts related to mortgage-backed securities are amortized or accreted using projected prepayment speeds. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. AFS investment securities in unrealized loss positions are evaluated for other-than-temporary impairment (“OTTI”) at least quarterly. For AFS debt securities, a decline in fair value is considered to be other-than-temporary if the Company does not expect to recover the entire amortized cost basis of the security. For AFS equity securities, the Company considers a decline in fair value to be other-than-temporary if it is probable that the Company will not recover its amortized cost basis. Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of recoverability, all relevant information is considered, including the length of time and extent to which fair value has been less than the amortized cost basis, the cause of the price decline, credit performance of the issuer and underlying collateral, and recoveries or further declines in fair value subsequent to the balance sheet date. For debt securities, the Company measures and recognizes OTTI losses through earnings if (1) the Company has the intent to sell the security or (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. In these circumstances, the impairment loss is equal to the full difference between the amortized cost basis and the fair value of the security. For securities that are considered other-than-temporarily-impaired that the Company has the intent and ability to hold in an unrealized loss position, the OTTI write-down is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to other factors, which is recognized as a component of OCI. For equity securities, the Company recognizes OTTI losses through earnings if the Company intends to sell the security. The Company also considers other relevant factors, including its intent and ability to retain the security for a period of time sufficient to allow for any anticipated recovery in market value, and whether evidence exists to support a realizable value equal to or greater than the carrying value. Any impairment loss on an equity security is equal to the full difference between the amortized cost basis and the fair value of the security. Federal Home Loan Bank Stock As a borrower from the Federal Home Loan Bank of Des Moines and the Federal Home Loan Bank of San Francisco ("FHLB"), the Company is required to purchase an amount of FHLB stock based on our outstanding borrowings with the FHLB. This stock is used as collateral to secure the borrowings from the FHLB and is accounted for as a cost-method investment. FHLB stock is reviewed at least quarterly for possible OTTI, which includes an analysis of the FHLB's cash flows, capital needs and long-term viability. Loans Held for Sale Loans originated for sale in the secondary market, which is our principal market, or as whole loan sales are classified as loans held for sale. Management has elected the fair value option for all single family loans held for sale and records these loans at fair value. The fair value of loans held for sale is generally based on observable market prices from other loans in the secondary market that have similar collateral, credit, and interest rate characteristics. If quoted market prices are not readily available, the Company may consider other observable market data such as dealer quotes for similar loans or forward sale commitments. In certain cases, the fair value may be based on a discounted cash flow model. Gains and losses from changes in fair value on loans held for sale are recognized in net gain on mortgage loan origination and sale activities within noninterest income. Direct loan origination costs and fees for single family loans classified as held for sale are recognized in earnings. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in the fair value of related servicing asset, resulting in revaluation adjustments to the recorded fair value. The use of the fair value option allows the change in the fair value of loans to more effectively offset the change in the fair value of derivative instruments that are used as economic hedges to loans held for sale. Multifamily loans held for sale are accounted for at the lower of amortized cost or fair value. Related gains and losses are recognized in net gain on mortgage loan origination and sale activities. Direct loan origination costs and fees for multifamily loans classified as held for sale are deferred at origination and recognized in earnings at the time of sale. Loans Held for Investment Loans held for investment are reported at the principal amount outstanding, net of cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Deferred fees and costs and premiums and discounts are amortized over the contractual terms of the underlying loans using the constant effective yield (the interest method). Interest on loans is accrued and recognized as interest income at the contractual rate of interest. A determination is made as of the loan commitment date as to whether a loan will be held for sale or held for investment. This determination is based primarily on the type of loan or loan program and its related profitability characteristics. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or pay-off. If subsequent changes occur, the Company may change its intent to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value. From time to time, the Company will originate loans to facilitate the sale of other real estate owned without a sufficient down payment from the borrower. Such loans are accounted for using the installment method and any gain on sale is deferred. Nonaccrual 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. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that are well-secured and in the process of collection are maintained on accrual status, even if they are 90 days or more past due. Loans whose repayments are insured by the Federal Housing Administration ("FHA") or guaranteed by the Department of Veterans' Affairs ("VA") are maintained on accrual status even if 90 days or more past due. Impaired Loans A loan is considered impaired when it is probable that all contractual principal and interest payments due will not be collected in accordance with the terms of the loan agreement. Factors considered by management in determining whether a loan is impaired include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Troubled Debt Restructurings A loan is accounted for and reported as a troubled debt restructuring (“TDR”) when, for economic or legal reasons, we grant a concession to a borrower experiencing financial difficulty that we would not otherwise consider. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt's original contractual maturity or original expected duration. TDRs are designated as impaired because interest and principal payments will not be received in accordance with original contract terms. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR and impaired regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR. Allowance for Credit Losses Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses. The allowance for credit losses is maintained at a level that, in management's judgment, is appropriate to cover losses inherent within the Company’s loans held for investment portfolio, including unfunded credit commitments, as of the balance sheet date. The allowance for loan losses, as reported in our consolidated statements of financial condition, is adjusted by a provision for loan losses, which is recognized in earnings, and reduced by the charge-off of loan amounts, net of recoveries. The loss estimation process involves procedures to appropriately consider the unique characteristics of its two loan portfolio segments, the consumer loan portfolio segment and the commercial loan portfolio segment. These two segments are further disaggregated into loan classes, the level at which credit risk is monitored. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the overall loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. Credit quality is assessed and monitored by evaluating various attributes and utilizes such information in our evaluation of the adequacy of the allowance for credit losses. The following provides the credit quality indicators and risk elements that are most relevant and most carefully considered and monitored for each loan portfolio segment. Consumer Loan Portfolio Segment The consumer loan portfolio segment is comprised of the single family and home equity loan classes, which are underwritten after evaluating a borrower’s capacity, credit, and collateral. Capacity refers to a borrower’s ability to make payments on the loan. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets, and level of equity in the property. Credit refers to how well a borrower manages their current and prior debts as documented by a credit report that provides credit scores and the borrower’s current and past information about their credit history. Collateral refers to the type and use of property, occupancy, and market value. Property appraisals are obtained to assist in evaluating collateral. Loan-to-property value and debt-to-income ratios, loan amount, and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends such as conditions that negatively affect housing prices and demand and levels of unemployment. Commercial Loan Portfolio Segment The commercial loan portfolio segment is comprised of the commercial real estate, multifamily residential, construction/land development and commercial business loan classes, whose underwriting standards consider the factors described for single family and home equity loan classes as well as others when assessing the borrower’s and associated guarantors or other related party’s financial position. These other factors include assessing liquidity, the level and composition of net worth, leverage, considering all other lender amounts and position, an analysis of cash expected to flow through the obligors including the outflow to other lenders, and prior experience with the borrower. This information is used to assess adequate financial capacity, profitability, and experience. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity, and availability of long-term financing. Loan Loss Measurement Allowance levels are influenced by loan volumes, loan asset quality ratings ("AQR") migration or delinquency status, historic loss experience and other conditions influencing loss expectations, such as economic conditions. The methodology for evaluating the adequacy of the allowance for loan losses has two basic components: first, an asset-specific component involving the identification of impaired loans and the measurement of impairment for each individual loan identified; and second, a formula-based component for estimating probable loan principal losses for all other loans. Impaired Loans When a loan is identified as impaired, impairment is measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded investment balance of the loan. For impaired loans, we recognize impairment if we determine that the net realizable value of the impaired loan is less than the recorded investment of the loan (net of previous charge-offs and deferred loan fees and costs), except when the sole remaining source of collection is the underlying collateral. In these cases impairment is measured as the difference between the recorded investment balance of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. The starting point for determining the fair value of collateral is through obtaining external appraisals. Generally, collateral values for impaired loans are updated every twelve months, either from external third parties or in-house certified appraisers. A third party appraisal is required at least annually. Third party appraisals are obtained from a pre-approved list of independent, third party, local appraisal firms. Approval and addition to the list is based on experience, reputation, character, consistency and knowledge of the respective real estate market. Generally, appraisals are internally reviewed by the appraisal services group to ensure the quality of the appraisal and the expertise and independence of the appraiser. For performing consumer segment loans secured by real estate that are classified as collateral dependent, the Bank determines the fair value estimates semi-annually using automated valuation services. Once the impairment amount is determined an asset-specific allowance is provided for equal to the calculated impairment and included in the allowance for loan losses. If the calculated impairment is determined to be permanent or not recoverable, the impairment will be charged off. Factors considered by management in determining if impairment is permanent or not recoverable include whether management judges the loan to be uncollectible, repayment is deemed to be protracted beyond reasonable time frames or the loss becomes evident owing to the borrower’s lack of assets or, for single family loans, the loan is 180 days or more past due unless both well-secured and in the process of collection. Estimate of Probable Loan Losses In estimating the formula-based component of the allowance for loan losses, loans are segregated into loan classes. Loans are designated into loan classes based on loans pooled by product types and similar risk characteristics or areas of risk concentration. In determining the allowance for loan losses we derive an estimated credit loss assumption from a model that categorizes loan pools based on loan type and AQR or delinquency bucket. This model calculates an expected loss percentage for each loan category by considering the probability of default, based on the migration of loans from performing to loss by AQR or delinquency buckets using two-year analysis periods for commercial segments and one-year analysis periods for consumer segments, and the potential severity of loss, based on the aggregate net lifetime losses incurred per loan class. The formula-based component of the allowance for loan losses also considers qualitative factors for each loan class, including changes in the following: (1) lending policies and procedures; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets; (3) the nature and volume of the loan portfolio including the terms of the loans; (4) the experience, ability, and depth of the lending management and other relevant staff; (5) the volume and severity of past due and adversely classified or graded loans and the volume of nonaccrual loans; (6) the quality of our loan review system; (7) the value of underlying collateral for collateral-dependent loans. Additional factors include (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations and (9) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. Qualitative factors are expressed in basis points and are adjusted downward or upward based on management’s judgment as to the potential loss impact of each qualitative factor to a particular loan pool at the date of the analysis. Unfunded Loan Commitments The Company maintains a separate allowance for losses on unfunded loan commitments, which is included in accounts payable and other liabilities on the consolidated statements of financial condition. Management estimates the amount of probable losses by calculating a one-year commitment usage factor and applying the loss factors used in the allowance for loan loss methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. Other Real Estate Owned Other real estate owned ("OREO") represents real estate acquired for debts previously contracted with the Company, generally through the foreclosure of loans. In certain cases, such as foreclosures on loans involving both the Company and other participating lenders, other real estate owned may be held in the form of an investment in an unconsolidated legal entity that is in-substance real estate. These properties are initially recorded at the net realizable value (fair value of collateral less estimated costs to sell). Upon transfer of a loan to other real estate owned, an appraisal is obtained and any excess of the loan balance over the net realizable value is charged against the allowance for loan losses. The Company allows up to 90 days after foreclosure to finalize determination of net realizable value. Subsequent declines in net realizable value identified from the ongoing analysis of such properties are recognized in current period earnings within noninterest expense as a provision for losses on other real estate owned. The net realizable value of these assets is reviewed and updated at least every six months depending on the type of property, or more frequently as circumstances warrant. As part of our subsequent events analysis process, we review updated independent third-party appraisals received and internal collateral valuations received subsequent to the reporting period-end to determine whether the fair value of loan collateral or OREO has changed. Additionally, we review agreements to sell OREO properties executed prior to and subsequent to the reporting period-end to identify changes in the fair value of OREO properties. If we determine that current valuations have changed materially from the prior valuations, we record any additional loan impairments or adjustments to OREO carrying values as of the end of the prior reporting period. From time to time the Company may elect to accelerate the disposition of certain OREO properties in a time frame faster than the expected marketing period assumed in the appraisal supporting our valuation of such properties. At the time a property is identified and the decision to accelerate its disposition is made, that property’s underlying fair value is re-measured. Generally, to achieve an accelerated time frame in which to sell a property, the price that the Company is willing to accept for the disposition of the property decreases. Accordingly, the net realizable value of these properties is adjusted to reflect this change in valuation. Mortgage Servicing Rights We initially record all mortgage servicing rights ("MSRs") at fair value. For subsequent measurement of MSRs, accounting standards permit the election of either fair value or the lower of amortized cost or fair value. Management has elected to account for single family MSRs at fair value during the life of the MSR, with changes in fair value recorded through current period earnings. Fair value adjustments encompass market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. We account for multifamily MSRs at the lower of amortized cost or fair value. MSRs are recorded as separate assets on our consolidated statements of financial condition upon purchase of the rights or when we retain the right to service loans that we have sold. Net gains on mortgage loan origination and sale activities depend, in part, on the initial fair value of MSRs, which is based on a discounted cash flow model. Mortgage servicing income includes the changes in fair value over the reporting period of both our single family MSRs and the derivatives used to economically hedge our single family MSRs. Subsequent fair value measurements of single family MSRs, which are not traded in an active market with readily observable market prices, are determined by considering the present value of estimated future net servicing cash flows. Changes in the fair value of single family MSRs result from changes in (1) model inputs and assumptions and (2) modeled amortization, representing the collection and realization of expected cash flows and curtailments over time. The significant model inputs used to measure the fair value of single family MSRs include assumptions regarding market interest rates, projected prepayment speeds, discount rates, estimated costs of servicing and other income and additional expenses associated with the collection of delinquent loans. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market |
Business Combinations (Notes)
Business Combinations (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 2–BUSINESS COMBINATIONS: Recent Acquisition Activity On February 1, 2016, the Company completed its acquisition of Orange County Business Bank ("OCBB") located in Irvine, California. Also on February 1, 2016, OCBB was merged with and into HomeStreet Bank. 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 2,459,486 shares of HomeStreet common stock. The primary objective for this acquisition is to grow our Commercial and Consumer Banking segment. Adding Orange County Business Bank’s branch brings HomeStreet’s Southern California retail deposit branch network to eight 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 multi-family 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 is 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: (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 ) 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 through the period ended December 31, 2015 . Acquisition-related costs were expensed as incurred in noninterest expense as merger and integration costs. The following table provides a breakout of Simplicity merger-related expense for the years ended December 31, 2015 and 2014 : Year Ended December 31, (in thousands) 2015 2014 Noninterest expense Salaries and related costs $ 7,669 $ 23 General and administrative 1,256 179 Legal 530 245 Consulting 5,539 388 Occupancy 335 4 Information services 481 50 Total noninterest expense $ 15,810 $ 889 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 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. Year Ended December 31, (in thousands, except share data) 2015 2014 Net interest income $ 152,828 $ 129,975 Provision (reversal of provision) for credit losses 6,100 (2,150 ) Total noninterest income 274,652 198,489 Total noninterest expense 358,931 293,399 Net income $ 43,997 $ 27,621 Basic income per share $ 2.00 $ 1.27 Diluted income per share $ 1.98 $ 1.26 Basic weighted average number of shares outstanding 22,038,157 21,714,874 Diluted weighted average number of shares outstanding 22,230,119 21,901,347 |
Regulatory Capital Requirements
Regulatory Capital Requirements (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 3–REGULATORY CAPITAL REQUIREMENTS: In July 2013, federal banking regulators (including the FDIC and the FRB) adopted new capital rules (the “Rules”). The Rules apply to both depository institutions (such as the Bank) and their holding companies (such as the Company). The Rules reflect, in part, certain standards initially adopted by the Basel Committee on Banking Supervision in December 2010 (which standards are commonly referred to as “Basel III”) as well as requirements contemplated by the Dodd-Frank Act. The Rules apply to both the Company and the Bank beginning in 2015. Failure to meet minimum capital requirements could initiate certain mandatory and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Company must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Company to maintain minimum amounts and ratios of common equity Tier 1 capital, Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital (as defined in the regulations). The regulators also have the ability to impose elevated capital requirements in certain circumstances. At December 31, 2015 the Bank's capital ratios meet the regulatory capital category of “well capitalized” as defined by the Rules. The Bank’s and the Company's capital amounts and ratios under Basel III are included in the following table: 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 Tier 1 leverage capital $ 455,101 9.46 % $ 192,428 4.0 % $ 240,536 5.0 % 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 455,101 13.04 209,432 6.0 279,243 8.0 Total risk-based capital $ 485,761 13.92 % $ 279,243 8.0 % $ 349,054 10.0 % 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 Tier 1 leverage capital $ 480,038 9.95 % $ 193,025 4.0 % $ 241,281 5.0 % 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 480,038 11.94 241,216 6.0 321,621 8.0 Total risk-based capital $ 510,697 12.70 % $ 321,621 8.0 % $ 402,026 10.0 % The Bank’s capital amounts and ratios at December 31, 2014 under Basel I are included in the following table. On January 1, 2015, the Company and the Bank became subject to Basel III capital standards. Regulatory capital ratios under Basel I may not be comparative to capital ratios under Basel III. At December 31, 2014 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 Tier 1 leverage capital $ 319,010 9.38 % $ 136,058 4.0 % $ 170,072 5.0 % Tier 1 risk-based capital (to risk-weighted assets) 319,010 13.10 97,404 4.0 146,106 6.0 Total risk-based capital $ 341,534 14.03 % $ 194,808 8.0 % $ 243,511 10.0 % At periodic intervals, the FDIC and the WDFI routinely examine the Bank’s financial statements as part of their legally prescribed oversight of the banking industry. Based on their examinations, these regulators can direct that the Bank’s financial statements be adjusted in accordance with their findings. |
Investment Securities Available
Investment Securities Available for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE FOR SALE | NOTE 4–INVESTMENT SECURITIES: The following table sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale. 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 December 31, 2014 (in thousands) Amortized Gross Gross Fair Mortgage-backed securities: Residential $ 107,624 $ 509 $ (853 ) $ 107,280 Commercial 13,030 641 — 13,671 Municipal bonds 119,744 2,847 (257 ) 122,334 Collateralized mortgage obligations: Residential 44,254 161 (1,249 ) 43,166 Commercial 20,775 — (289 ) 20,486 Corporate debt securities 80,214 296 (1,110 ) 79,400 U.S. Treasury securities 40,976 13 — 40,989 $ 426,617 $ 4,467 $ (3,758 ) $ 427,326 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 December 31, 2015 and 2014 , 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 December 31, 2015 and 2014 , 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. 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 December 31, 2014 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair Mortgage-backed securities: Residential $ — $ — $ (853 ) $ 57,242 $ (853 ) $ 57,242 Municipal bonds (11 ) 2,339 (246 ) 17,155 (257 ) 19,494 Collateralized mortgage obligations: Residential — — (1,249 ) 31,021 (1,249 ) 31,021 Commercial (29 ) 5,037 (260 ) 15,449 (289 ) 20,486 Corporate debt securities (56 ) 13,140 (1,054 ) 40,997 (1,110 ) 54,137 $ (96 ) $ 20,516 $ (3,662 ) $ 161,864 $ (3,758 ) $ 182,380 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 December 31, 2015 and 2014 . In addition, as of December 31, 2015 and 2014 , 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. At December 31, 2015 Within one year After one year through five years After five years through ten years After ten years Total (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 % At December 31, 2014 Within one year After one year through five years After five years through ten years After ten years Total (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 $ — — % $ — — % $ 6,949 1.72 % $ 100,331 1.75 % $ 107,280 1.75 % Commercial — — — — — — 13,671 4.75 13,671 4.75 Municipal bonds — — 604 4.10 23,465 3.55 98,265 4.21 122,334 4.09 Collateralized mortgage obligations: Residential — — — — — — 43,166 1.84 43,166 1.84 Commercial — — — — 9,776 1.96 10,710 1.99 20,486 1.97 Corporate debt securities — — 9,000 2.21 38,487 3.35 31,913 3.73 79,400 3.37 U.S. Treasury securities 25,998 0.28 14,991 0.46 — — — — 40,989 0.35 Total available for sale $ 25,998 0.28 % $ 24,595 1.19 % $ 78,677 3.09 % $ 298,056 2.92 % $ 427,326 2.69 % Sales of investment securities available for sale were as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Proceeds $ 112,259 $ 96,154 $ 127,648 Gross gains 2,571 2,560 2,089 Gross losses (165 ) (201 ) (315 ) There were $101.3 million and $44.3 million in investment securities pledged to secure advances from the FHLB at December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , there were $21.4 million and $33.4 million , respectively, of securities pledged to secure derivatives in a liability position. 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 December 31, 2015 and 2014 . Tax-exempt interest income on securities available for sale totaling $3.6 million , $3.4 million and $4.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, were recorded in the Company's consolidated statements of operations. |
Loans and Credit Quality
Loans and Credit Quality | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
LOANS AND CREDIT QUALITY (Text Block) | NOTE 5–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. 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: At December 31, (in thousands) 2015 2014 Consumer loans Single family $ 1,203,180 (1) $ 896,665 Home equity and other 256,373 135,598 1,459,553 1,032,263 Commercial loans Commercial real estate 600,703 523,464 Multifamily 426,557 55,088 Construction/land development 583,160 367,934 Commercial business 154,262 147,449 1,764,682 1,093,935 3,224,235 2,126,198 Net deferred loan fees and costs (2,237 ) (5,048 ) 3,221,998 2,121,150 Allowance for loan losses (29,278 ) (22,021 ) $ 3,192,720 $ 2,099,129 (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. Loans in the amount of $1.73 billion and $1.06 billion at December 31, 2015 and 2014 , respectively, were pledged to secure borrowings from the FHLB as part of our liquidity management strategy. Additionally, loans totaling $572.0 million and $487.2 million at December 31, 2015 and 2014 , 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. It is the Company’s policy to make loans to officers, directors, and their associates in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with other persons. The following is a summary of activity during the years ended December 31, 2015 and 2014 with respect to such aggregate loans to these related parties and their associates: Year Ended December 31, (in thousands) 2015 2014 Beginning balance, January 1 $ 5,500 $ 9,738 New loans 181 — Principal repayments and advances, net (1,170 ) (4,238 ) Ending balance, December 31 $ 4,511 $ 5,500 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 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. At December 31, 2014 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 28.0% and 20.7% and 13.7% of the total portfolio, respectively. 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 December 31, 2015 . 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. Activity in the allowance for credit losses was as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Allowance for credit losses (roll-forward): Beginning balance $ 22,524 $ 24,089 $ 27,751 Provision (reversal of provision) for credit losses 6,100 (1,000 ) 900 (Charge-offs), net of recoveries 2,035 (565 ) (4,562 ) Ending balance $ 30,659 $ 22,524 $ 24,089 Components: Allowance for loan losses $ 29,278 $ 22,021 $ 23,908 Allowance for unfunded commitments 1,381 503 181 Allowance for credit losses $ 30,659 $ 22,524 $ 24,089 Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Year Ended December 31, 2015 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 9,447 $ (284 ) $ 623 $ (844 ) $ 8,942 Home equity and other 3,322 (601 ) 288 1,611 4,620 12,769 (885 ) 911 767 13,562 Commercial loans Commercial real estate 3,846 (16 ) — 1,017 4,847 Multifamily 673 (149 ) 149 521 1,194 Construction/land development 3,818 — 2,193 3,260 9,271 Commercial business 1,418 (329 ) 161 535 1,785 9,755 (494 ) 2,503 5,333 17,097 Total allowance for credit losses $ 22,524 $ (1,379 ) $ 3,414 $ 6,100 $ 30,659 Year Ended December 31, 2014 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 11,990 $ (907 ) $ 139 $ (1,775 ) $ 9,447 Home equity and other 3,987 (953 ) 566 (278 ) 3,322 15,977 (1,860 ) 705 (2,053 ) 12,769 Commercial loans Commercial real estate 4,012 (52 ) 493 (607 ) 3,846 Multifamily 942 — — (269 ) 673 Construction/land development 1,414 — 516 1,888 3,818 Commercial business 1,744 (596 ) 229 41 1,418 8,112 (648 ) 1,238 1,053 9,755 Total allowance for credit losses $ 24,089 $ (2,508 ) $ 1,943 $ (1,000 ) $ 22,524 The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology. 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 December 31, 2014 (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 $ 8,743 $ 704 $ 9,447 $ 818,783 $ 77,882 $ 896,665 Home equity and other 3,165 157 3,322 132,937 2,661 135,598 11,908 861 12,769 951,720 80,543 1,032,263 Commercial loans Commercial real estate 3,806 40 3,846 496,685 26,779 523,464 Multifamily 312 361 673 52,011 3,077 55,088 Construction/land development 3,818 — 3,818 362,487 5,447 367,934 Commercial business 974 444 1,418 144,071 3,378 147,449 8,910 845 9,755 1,055,254 38,681 1,093,935 Total $ 20,818 $ 1,706 $ 22,524 $ 2,006,974 $ 119,224 $ 2,126,198 Impaired Loans The following tables present impaired loans by loan portfolio segment and loan class. 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 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 $74.7 million in performing TDRs. At December 31, 2014 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 48,104 $ 50,787 $ — Home equity and other 1,824 1,850 — 49,928 52,637 — Commercial loans Commercial real estate 25,540 27,205 — Multifamily 508 508 — Construction/land development 5,447 14,532 — Commercial business 1,302 3,782 — 32,797 46,027 — $ 82,725 $ 98,664 $ — With an allowance recorded: Consumer loans Single family $ 29,778 $ 29,891 $ 704 Home equity and other 837 837 157 30,615 30,728 861 Commercial loans Commercial real estate 1,239 1,399 40 Multifamily 2,569 2,747 361 Commercial business 2,076 2,204 444 5,884 6,350 845 $ 36,499 $ 37,078 $ 1,706 Total: Consumer loans Single family (3) $ 77,882 $ 80,678 $ 704 Home equity and other 2,661 2,687 157 80,543 83,365 861 Commercial loans Commercial real estate 26,779 28,604 40 Multifamily 3,077 3,255 361 Construction/land development 5,447 14,532 — Commercial business 3,378 5,986 444 38,681 52,377 845 Total impaired loans $ 119,224 $ 135,742 $ 1,706 (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 $73.6 million in single family performing TDRs. The following table provides the average recorded investment in impaired loans by portfolio segment and class. Year Ended December 31, (in thousands) 2015 2014 Consumer loans Single family $ 78,824 $ 73,683 Home equity and other 1,922 2,528 80,746 76,211 Commercial loans Commercial real estate 14,416 30,364 Multifamily 4,035 3,112 Construction/land development 4,535 5,723 Commercial business 4,431 3,381 27,417 42,580 $ 108,163 $ 118,791 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: • 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. 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: • 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. 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: • 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. 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. S ubstandard. 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 90-180 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. 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 December 31, 2014 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 865,641 $ 361 $ 21,714 $ 8,949 $ 896,665 Home equity and other 133,338 82 652 1,526 135,598 998,979 443 22,366 10,475 1,032,263 Commercial loans Commercial real estate 441,509 67,434 13,066 1,455 523,464 Multifamily 50,495 1,516 3,077 — 55,088 Construction/land development 361,167 2,830 1,261 2,676 367,934 Commercial business 115,665 25,724 3,690 2,370 147,449 968,836 97,504 21,094 6,501 1,093,935 $ 1,967,815 $ 97,947 $ 43,460 $ 16,976 $ 2,126,198 As of December 31, 2015 and 2014 , none of the Company's loans were rated Doubtful or Loss. 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. 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 (2) 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 At December 31, 2014 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or (2) Consumer loans Single family $ 7,832 $ 2,452 $ 43,105 $ 53,389 $ 843,276 $ 896,665 $ 34,737 (2) Home equity and other 371 81 1,526 1,978 133,620 135,598 — 8,203 2,533 44,631 55,367 976,896 1,032,263 34,737 Commercial loans Commercial real estate — — 4,843 4,843 518,621 523,464 — Multifamily — — — — 55,088 55,088 — Construction/land development — 1,261 — 1,261 366,673 367,934 — Commercial business 611 3 1,527 2,141 145,308 147,449 250 611 1,264 6,370 8,245 1,085,690 1,093,935 250 $ 8,814 $ 3,797 $ 51,001 $ 63,612 $ 2,062,586 $ 2,126,198 $ 34,987 (1) Includes $21.5 million of loans at 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. (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. The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. 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 $21.5 million of loans at 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. At December 31, 2014 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 888,297 $ 8,368 $ 896,665 Home equity and other 134,072 1,526 135,598 1,022,369 9,894 1,032,263 Commercial loans Commercial real estate 518,621 4,843 523,464 Multifamily 55,088 — 55,088 Construction/land development 367,934 — 367,934 Commercial business 146,172 1,277 147,449 1,087,815 6,120 1,093,935 $ 2,110,184 $ 16,014 $ 2,126,198 The following tables present information about TDR activity during the periods presented. Year Ended December 31, 2015 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 47 $ 10,167 $ — Home equity and other Interest rate reduction 2 130 — Total consumer Interest rate reduction 49 10,297 — 49 10,297 — Commercial loans Commercial business Interest rate reduction 2 482 — Total commercial Interest rate reduction 2 482 — 2 482 — Total loans Interest rate reduction 51 10,779 — 51 $ 10,779 $ — Year Ended December 31, 2014 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 62 $ 12,012 $ — Payment restructure 10 1,991 — Home equity and other Interest rate reduction 3 430 — Payment restructure 1 58 — Total consumer Interest rate reduction 65 12,442 — Payment restructure 11 2,049 — 76 14,491 — Commercial loans Commercial real estate Interest rate reduction 1 1,181 — Payment restructure 3 4,248 — Commercial business Interest rate reduction 2 117 — Payment restructure 3 1,270 — Forgiveness of principal 2 599 554 Total commercial Interest rate reduction 3 1,298 — Payment restructure 6 5,518 — Forgiveness of principal 2 599 554 11 7,415 554 Total loans Interest rate reduction 68 13,740 — Payment restructure 17 7,567 — Forgiveness of principal 2 599 554 87 $ 21,906 $ 554 December 31, 2013 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 104 $ 22,605 $ — Home equity and other Interest rate reduction 9 571 — Total consumer Interest rate reduction 113 23,176 — 113 23,176 — Total loans Interest rate reduction 113 23,176 — 113 $ 23,176 $ — The following tables present loans that were modified as TDRs within the previous 12 months and subsequently re-defaulted during the years ended December 31, 2015 and 2014 , 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. Year Ended December 31, 2015 2014 (dollars in thousands) Number of loan relationships that re-defaulted Recorded Number of loan relationships that re-defaulted Recorded Consumer loans Single family 10 $ 2,270 7 $ 1,010 Home equity and other 1 68 1 190 11 2,338 8 1,200 11 $ 2,338 8 $ 1,200 |
Other Real Estate Owned (Notes)
Other Real Estate Owned (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned [Abstract] | |
Real Estate Owned [Text Block] | NOTE 6–OTHER REAL ESTATE OWNED: Other real estate owned consisted of the following. At December 31, (in thousands) 2015 2014 Single family $ 302 $ 1,613 Commercial real estate 4,332 2,062 Construction/land development 4,661 7,076 9,295 10,751 Valuation allowance (1,764 ) (1,303 ) $ 7,531 $ 9,448 Activity in other real estate owned was as follows. Year Ended December 31, (in thousands) 2015 2014 Beginning balance $ 9,448 $ 12,911 Additions 4,448 4,130 Loss provisions (695 ) (69 ) Reductions related to sales (5,670 ) (7,524 ) Ending balance $ 7,531 $ 9,448 Activity in the valuation allowance for other real estate owned was as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 1,303 $ 1,697 $ 14,965 Loss provisions 695 69 603 (Charge-offs), net of recoveries (234 ) (463 ) (13,871 ) Ending balance $ 1,764 $ 1,303 $ 1,697 The components of the net cost of operation and sale of other real estate owned are as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Maintenance costs $ 453 $ 436 $ 840 Loss provisions 695 69 603 Net gain on sales (447 ) (890 ) (722 ) Gain on transfer — — (119 ) Net operating income (loss) (41 ) (85 ) 1,209 Net cost of operation and sale of other real estate owned $ 660 $ (470 ) $ 1,811 At December 31, 2015 , we had concentrations within the state of Washington, primarily in Pierce and Thurston Counties, representing 97.9% of the total balance of other real estate owned. At December 31, 2014 , we had concentrations within the state of Washington, primarily in Thurston County, representing 88.5% of the total balance of other real estate owned. |
Premises and Equipment (Notes)
Premises and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7–PREMISES AND EQUIPMENT, NET: Premises and equipment consisted of the following. December 31, (in thousands) 2015 2014 Furniture and equipment $ 58,856 $ 59,425 Leasehold improvements 36,602 22,516 Land and buildings 8,767 985 104,225 82,926 Less: accumulated depreciation (40,487 ) (37,675 ) $ 63,738 $ 45,251 Depreciation expense for the years ended December 31, 2015 , 2014 , and 2013 , was $10.9 million , $7.4 million , and $4.6 million , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 8–DEPOSITS: Deposit balances, including stated rates, were as follows. At December 31, (in thousands) 2015 2014 Noninterest-bearing accounts $ 643,028 $ 470,663 NOW accounts, 0.00% to 1.00% at December 31, 2015 and 0.00% to 1.00% at December 31, 2014 408,477 272,390 Statement savings accounts, due on demand, 0.00% to 1.00% at December 31, 2015 and 0.00% to 1.99% at December 31, 2014 292,092 200,638 Money market accounts, due on demand, 0.00% to 1.45% at December 31, 2015 and 0.00% to 1.45% at December 31, 2014 1,155,464 1,007,214 Certificates of deposit, 0.05% to 3.80% at December 31, 2015 and 0.05% to 3.80% at December 31, 2014 732,892 494,525 $ 3,231,953 $ 2,445,430 There were $2.7 million and $2.2 million in public funds included in deposits at December 31, 2015 and 2014 , respectively. Interest expense on deposits was as follows. Year Ended December 31, (in thousands) 2015 2014 2013 NOW accounts $ 1,773 $ 1,122 $ 924 Statement savings accounts 1,032 929 546 Money market accounts 4,945 4,362 3,899 Certificates of deposit 4,051 3,018 5,047 $ 11,801 $ 9,431 $ 10,416 The weighted-average interest rates on certificates of deposit at December 31, 2015 , 2014 and 2013 were 0.96% , 0.60% and 0.71% respectively. Certificates of deposit outstanding mature as follows. (in thousands) At December 31, 2015 Within one year $ 544,855 One to two years 124,420 Two to three years 21,242 Three to four years 28,581 Four to five years 13,794 $ 732,892 The aggregate amount of time deposits in denominations of $100 thousand or more at December 31, 2015 and 2014 was $290.1 million and $188.7 million , respectively. The aggregate amount of time deposits in denominations of more than $250 thousand at December 31, 2015 and 2014 was $81.7 million and $30.2 million , respectively. There were $120.3 million and $176.1 million of brokered deposits at December 31, 2015 and 2014 , respectively. |
Federal Home Loan Bank and Othe
Federal Home Loan Bank and Other Borrowings (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Federal Home Loan Bank and Other Borrowings [Abstract] | |
Federal Home Loan Bank and Other Borrowings [Text Block] | NOTE 9–FEDERAL HOME LOAN BANK AND OTHER BORROWINGS: Federal Home Loan Bank The Company borrows funds through advances from the FHLB. FHLB advances totaled $1.02 billion and $597.6 million as of December 31, 2015 , and 2014 , respectively. Weighted-average interest rates on the advances were 0.64% , 0.41% , and 0.43% at December 31, 2015 , 2014 and 2013 , respectively. The advances may be collateralized by stock in the FHLB, pledged securities, and unencumbered qualifying loans. The Company has an available line of credit with the FHLB equal to 35.0% of assets, subject to collateralization requirements. Based on the amount of qualifying collateral available, borrowing capacity from the FHLB was $320.4 million as of December 31, 2015 . The FHLB is not contractually bound to continue to offer credit to the Company, and the Company’s access to credit from this agency for future borrowings may be discontinued at any time. FHLB advances outstanding by contractual maturities were as follows. At December 31, 2015 (in thousands) Advances outstanding Weighted-average interest rate 2016 $ 962,159 0.52 % 2017 10,002 1.31 2018 30,408 2.20 2019 10,000 4.27 2020 and thereafter 5,590 5.31 $ 1,018,159 0.64 % The Company, as a member of the FHLB, is required to own shares of FHLB stock. This requirement is based upon the amount of either the eligible collateral or advances outstanding from the FHLB. As of December 31, 2015 and 2014 , the Company held $44.3 million and $33.9 million , respectively, of FHLB stock. FHLB stock is carried at par value and is restricted to transactions between the FHLB and its member institutions. FHLB stock can only be purchased or redeemed at par value. Both cash and dividends received on FHLB stock are reported in earnings. Management periodically evaluates FHLB stock for other-than-temporary impairment. Management’s determination of whether these investments are impaired is based on its assessment of ultimate recoverability of par value rather than recognizing temporary declines in value. The determination of whether the decline affects the ultimate recoverability is influenced by criteria such as: (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB; and (4) the liquidity position of the FHLB. Based on this evaluation, the Company determined there is not an other-than-temporary impairment of the FHLB stock investment as of December 31, 2015 , or 2014 . Federal Reserve Bank of San Francisco The Company may also borrow on a collateralized basis from the Federal Reserve Bank of San Francisco (“FRBSF”). At December 31, 2015 and 2014 , there were no outstanding borrowings from the FRBSF. Based on the amount of qualifying collateral available, borrowing capacity from the FRBSF was $382.1 million at December 31, 2015 . The FRBSF is not contractually bound to offer credit to the Company, and the Company’s access to credit from this agency for future borrowings may be discontinued at any time. Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Federal funds transactions involve lending reserve balances on a short-term basis. Securities borrowed or purchased under agreements to resell are collateralized lending transactions utilized to accommodate customer transactions, earn interest rate spreads, and obtain securities for settlement and for collateral. At December 31, 2015 , we had no balance of federal funds purchased and securities sold under agreements to repurchase. At December 31, 2014 , we had $50.0 million in federal funds purchased and no balance of securities sold under agreements to repurchase. |
Long Term Debt (Notes)
Long Term Debt (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 10–LONG-TERM DEBT: 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 December 31, 2015 . 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: 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 (1) Call options are exercisable at par. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 11–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. The use of derivatives as interest rate risk management instruments helps minimize significant, unplanned fluctuations in earnings, fair value of assets and liabilities, and cash flows caused by interest rate volatility. This approach involves mitigating the repricing characteristics of certain assets or liabilities so that changes in interest rates do not have a significant adverse effect on net interest margin and cash flows. As a result of interest rate fluctuations, hedged assets and liabilities will gain or lose market value. In a fair value hedging strategy, the effect of this gain or loss will generally be offset by the gain or loss on the derivatives linked to hedged assets or liabilities. In a cash flow hedging strategy, management manages the variability of cash payments due to interest rate fluctuations by the effective use of derivatives linked to hedged assets and liabilities. We held no derivatives designated as a fair value, cash flow or foreign currency hedge instrument at December 31, 2015 or 2014 . 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 4, Investment Securities for further information on securities collateral pledged. At December 31, 2015 and 2014 , the Company did not hold any collateral received from counterparties under derivative transactions. The Company’s derivative activities are monitored by the asset/liability management committee. The treasury function, which includes asset/liability management, is responsible for hedging strategies developed through analysis of data from financial models and other internal and industry sources. The resulting hedging strategies are incorporated into the overall risk management strategies. For further information on the policies that govern derivative and hedging activities, see Note 1, Summary of Significant Accounting Policies . The notional amounts and fair values for derivatives consist of the following. 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 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 $14.4 million at December 31, 2015 , 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 December 31, 2014 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 934,986 $ 1,071 $ (5,658 ) Interest rate swaptions 15,000 — — Interest rate lock commitments 392,687 11,939 (6 ) Interest rate swaps 610,150 11,689 (972 ) Total derivatives before netting $ 1,952,823 24,699 (6,636 ) Netting adjustment (1) (5,858 ) 5,858 Carrying value on consolidated statements of financial condition $ 18,841 $ (778 ) (1) Excludes cash collateral of $20.4 million at December 31, 2014 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. The following tables present gross and net information about derivative instruments. 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 $14.4 million at December 31, 2015 , 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 December 31, 2014 (in thousands) Gross fair value Netting adjustments Carrying value Cash collateral paid (1) Securities pledged Net amount Derivative assets $ 24,699 $ (5,858 ) $ 18,841 $ — $ — $ 18,841 Derivative liabilities $ (6,636 ) $ 5,858 $ (778 ) $ — $ 762 $ (16 ) (1) Excludes cash collateral of $20.4 million at December 31, 2014 , 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. These amounts were not netted against the derivative receivables and payables, because, at an individual counterparty level, the collateral exceeded the fair value exposure at December 31, 2014 . Free-standing derivatives are used for fair value interest rate risk management purposes and do not qualify for hedge accounting treatment, referred to as economic hedges. Economic hedges are used to hedge against adverse changes in fair value of single family mortgage servicing rights (“single family MSRs”), interest rate lock commitments (“IRLCs”) for single family mortgage loans that the Company intends to sell, and single family mortgage loans held for sale. Free-standing derivatives used as economic hedges for single family MSRs typically include positions in interest rate futures, options on 10-year treasury contracts, forward sales commitments on mortgage-backed securities, and interest rate swap and swaption contracts. The single family MSRs and the free-standing derivatives are carried at fair value with changes in fair value included in mortgage servicing income. The free-standing derivatives used as economic hedges for IRLCs and single family mortgage loans held for sale are forward sales commitments on mortgage-backed securities and option contracts. IRLCs, single family mortgage loans held for sale, and the free-standing derivatives (“economic hedges”) are carried at fair value with changes in fair value included in net gain on mortgage loan origination and sale activities. 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. Year Ended December 31, (in thousands) 2015 2014 2013 Recognized in noninterest income: Net gain on mortgage loan origination and sale activities (1) $ 2,080 $ (17,258 ) $ 12,904 Mortgage servicing income (2) 11,709 39,727 (20,432 ) $ 13,789 $ 22,469 $ (7,528 ) (1) Comprised of 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. |
Mortgage Banking Operations
Mortgage Banking Operations | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING OPERATIONS | NOTE 12–MORTGAGE BANKING OPERATIONS: Loans held for sale consisted of the following. At December 31, (in thousands) 2015 2014 Single family $ 632,273 (1) $ 610,350 Multifamily 11,076 10,885 Other 6,814 — Total loans held for sale $ 650,163 $ 621,235 (1) Includes $3.4 million in SBA loans held for sale at December 31, 2015 . Loans sold consisted of the following. Year Ended December 31, (in thousands) 2015 2014 2013 Single family $ 7,038,635 $ 3,979,398 $ 4,733,473 Multifamily 204,744 141,859 104,016 Other 29,313 — — Total loans sold $ 7,272,692 $ 4,121,257 $ 4,837,489 Net gain on mortgage loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Year Ended December 31, (in thousands) 2015 2014 2013 Single family: Servicing value and secondary market gains (1) $ 205,513 $ 109,063 $ 128,391 Loan origination and funding fees 22,221 25,572 30,051 Total single family 227,734 134,635 158,442 Multifamily 7,125 4,723 5,306 Other 1,529 4,764 (2) 964 Total net gain on mortgage loan origination and sale activities $ 236,388 $ 144,122 $ 164,712 (1) 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 changes in the Company's repurchase liability for loans that have been sold. (2) Includes $4.6 million in pre-tax gain during 2014 from the sale of loans that were originally held for investment. 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. At December 31, (in thousands) 2015 2014 Single family U.S. government and agency $ 14,628,596 $ 10,630,864 Other 719,215 585,344 15,347,811 11,216,208 Commercial Multifamily 924,367 752,640 Other 79,513 82,354 1,003,880 834,994 Total loans serviced for others $ 16,351,691 $ 12,051,202 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 13, Commitments, Guarantees and Contingencies. The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses. Year Ended December 31, (in thousands) 2015 2014 Balance, beginning of period $ 1,956 $ 1,260 Additions (1) 2,764 1,430 Realized losses (2) (1,798 ) (734 ) Balance, end of period $ 2,922 $ 1,956 (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. Advances are made to Ginnie Mae mortgage pools for delinquent loan payments. We also fund foreclosure costs and we repurchase loans from Ginnie Mae mortgage pools prior to recovery of guaranteed amounts. Ginnie Mae advances of $9.6 million and $7.8 million were recorded in other assets as of December 31, 2015 and 2014 , 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 December 31, 2015 and 2014 , 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 and $21.2 million , respectively, 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. Year Ended December 31, (in thousands) 2015 2014 2013 Servicing income, net: Servicing fees and other $ 42,197 $ 37,818 $ 34,173 Changes in fair value of single family MSRs due to modeled amortization (1) (34,038 ) (26,112 ) (24,321 ) Amortization of multifamily MSRs (1,992 ) (1,712 ) (1,803 ) 6,167 9,994 8,049 Risk management, single family MSRs: Changes in fair value due to changes in model inputs and/or assumptions (2) 6,555 (15,629 ) $ 29,456 Net gain from derivatives economically hedging MSR 11,709 39,727 (20,432 ) 18,264 24,098 9,024 Mortgage servicing income $ 24,431 $ 34,092 $ 17,073 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. 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. Year Ended December 31, (rates per annum) (1) 2015 2014 2013 Constant prepayment rate ("CPR") (2) 14.95 % 13.30 % 9.28 % Discount rate (3) 10.29 % 10.50 % 10.25 % (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. 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. (dollars in thousands) At December 31, 2015 Fair value of single family MSR $ 156,604 Expected weighted-average life (in years) 5.21 Constant prepayment rate (1) 15.30 % Impact on 25 basis points adverse change $ (12,130 ) Impact on 50 basis points adverse change $ (25,352 ) Discount rate 10.50 % Impact on fair value of 100 basis points increase $ (4,939 ) Impact on fair value of 200 basis points increase $ (9,519 ) (1) Represents the expected lifetime average. 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. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 112,439 $ 153,128 $ 87,396 Additions and amortization: Originations 70,659 43,231 60,576 Purchases 989 19 21 Sale of single family MSRs — (43,248 ) — Changes due to modeled amortization (1) (34,038 ) (26,112 ) (24,321 ) Net additions and amortization 37,610 (26,110 ) 36,276 Changes in fair value due to changes in model inputs and/or assumptions (2) 6,555 (14,579 ) 29,456 Ending balance $ 156,604 $ 112,439 $ 153,128 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. 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. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 10,885 $ 9,335 $ 8,097 Origination 5,758 3,260 3,027 Amortization (1,992 ) (1,710 ) (1,789 ) Ending balance $ 14,651 $ 10,885 $ 9,335 At December 31, 2015 , the expected weighted-average life of the Company’s multifamily MSRs was 9.83 years . Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows. (in thousands) At December 31, 2015 2016 $ 2,208 2017 2,086 2018 1,930 2019 1,823 2020 1,691 2021 and thereafter 4,913 Carrying value of multifamily MSR $ 14,651 The projected amortization expense of multifamily MSRs is an estimate and subject to key assumptions of the underlying valuation model. The amortization expense for future periods was calculated by applying the same quantitative factors, such as actual MSR prepayment experience and discount rates, which were used to determine amortization expense. These factors are inherently subject to significant fluctuations, primarily due to the effect that changes in interest rates may have on expected loan prepayment experience. Accordingly, any projection of MSR amortization in future periods is limited by the conditions that existed at the time the calculations were performed and may not be indicative of actual amortization expense that will be recorded in future periods. |
Commitments, Guarantees, and Co
Commitments, Guarantees, and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, AND CONTINGENCIES | NOTE 13–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 December 31, 2015 and 2014 was $52.9 million and $72.0 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 $456.4 million and $379.4 million at December 31, 2015 and 2014 , respectively. Unused home equity and commercial banking funding lines totaled $216.5 million and $149.4 million at December 31, 2015 and 2014 , 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 $1.4 million and $503 thousand at December 31, 2015 and 2014 , respectively. The Company is obligated under non-cancelable leases for office space. Generally, the office leases also contain five-year renewal and space options. Rental expense under non-cancelable operating leases totaled $20.1 million , $15.3 million , and $11.4 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Minimum rental payments for all non-cancelable leases were as follows. (in thousands) At December 31, 2015 2016 $ 19,486 2017 18,987 2018 17,328 2019 14,530 2020 12,071 2021 and thereafter 55,073 $ 137,475 Guarantees In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS" ® ) 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 December 31, 2015 and 2014 , the total unpaid principal balance of loans sold under this program was $924.4 million and $752.6 million , respectively. The Company’s reserve liability related to this arrangement totaled $3.0 million and $2.3 million at December 31, 2015 and 2014 , respectively. There were no actual losses incurred under this arrangement during the years ended December 31, 2015 , 2014 and 2013. 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 FHA or the guarantee with the VA. If loans are later found not to meet the requirements of FHA or VA, through required internal quality control reviews or through agency audits, the Company may be required to indemnify 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 $15.43 billion and $11.30 billion as of December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , 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 $2.9 million and $2.0 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 December 31, 2015 , 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 December 31, 2015 . |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES: Income tax expense (benefit) consisted of following: Year Ended December 31, (in thousands) 2015 2014 2013 Current (benefit) expense $ (801 ) $ 24,490 $ (21,166 ) Deferred expense (benefit) 15,903 (14,247 ) 32,151 Tax credit investment amortization 486 813 — Total income tax expense $ 15,588 $ 11,056 $ 10,985 Income tax expense differed from amounts computed at the federal income tax statutory rate as follows: Year Ended December 31, (in thousands) 2015 2014 2013 Income taxes at statutory rate $ 19,917 $ 11,660 $ 12,178 Tax-exempt interest (1,307 ) (1,265 ) (1,452 ) State income tax expense net of federal tax benefit 715 221 148 Reversal of deferred tax consequences on historical AFS (1,107 ) — — Valuation allowance — — — Tax credits (903 ) (717 ) (293 ) Low Income Housing Tax Credit Partnerships 658 617 — Change in state rate 722 248 — Bargain purchase gain (2,704 ) — — Other, net (403 ) 292 404 Total income tax expense $ 15,588 $ 11,056 $ 10,985 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and those amounts used for tax return purposes. The tax effect of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities consisted of the following: At December 31, (in thousands) 2015 2014 Deferred tax assets: Provision for loan losses $ 15,843 $ 11,890 Federal and state net operating loss carryforwards 4,979 10,044 Section 382 built-in loss limitation — 5,291 Other real estate owned 656 468 Accrued liabilities 3,524 2,199 Other investments 319 330 Leases 1,976 1,153 Unrealized loss on investment securities available for sale 1,304 — Tax credits 1,178 3,358 Stock options 999 902 Loan valuation 5,752 497 Other, net 2,753 236 39,283 36,368 Valuation allowance — — 39,283 36,368 Deferred tax liabilities: Mortgage servicing rights (48,540 ) (34,030 ) Unrealized gain on investment securities available for sale — (252 ) FHLB dividends (190 ) (4,348 ) Deferred loan fees and costs (2,108 ) (1,943 ) Premises and equipment (5,282 ) (1,865 ) Other intangibles - core deposit intangible (2,829 ) (700 ) Other, net (190 ) (242 ) (59,139 ) (43,380 ) Net deferred tax liability $ (19,856 ) $ (7,012 ) The Company currently has a net deferred tax liability. This net deferred tax liability is included in accounts payable and other liabilities on the consolidated statements of financial condition. As a consequence of our initial public offering (IPO) in February 2012 and subsequent acquisitions, the Company is subject to the limitation of Section 382 of the Internal Revenue Code of 1986, as amended, and similar state tax provisions. Section 382 limits the Company’s annual utilization of net operating losses and other tax attributes incurred prior to the change of control against post-change income. Specifically, the Company is subject to annual limitations on the amounts of net operating loss and credit carryover that the Company can use from its pre-IPO period, or from the pre-acquisition periods of Yakima National Bank, Fortune Bank and Simplicity Bancorp. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. As of December 31, 2015 management determined that sufficient evidence exists to support the future utilization of all of the Company’s deferred tax assets. At December 31, 2015 , the Company has federal net operating loss carryforwards totaling $13.9 million , which expire between 2029 and 2033 . In addition, as of December 31, 2015 , the Company has an alternative minimum tax credit of $1.2 million that may be carried forward indefinitely. The Company also has state net operating loss carryforwards of $1.7 million that expire between 2016 and 2030 . Retained earnings at December 31, 2015 and 2014 include approximately $12.7 million in tax basis bad debt reserves for which no income tax liability has been recorded. This represents the balance of bad debt reserves created for tax purposes as of December 31, 1987. These amounts are subject to recapture (i.e., included in taxable income) in certain events, such as in the event HomeStreet Bank ceases to be a bank. In the event of recapture, the Company will incur a federal tax liability on this pre-1988 bad debt reserve balance at the then prevailing corporate tax rate, which tax liability is estimated at $4.4 million as of December 31, 2015 . The Company has recorded unrecognized tax benefits (including potential interest of $19 thousand ) of $438 thousand as of December 31, 2015 . There were no unrecognized tax benefits at December 31, 2014 . The Company does not expect the uncertainty related to its unrecognized tax benefits to be resolved within the next twelve months. A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, for the years ended December 31, 2015 , 2014 and 2013 is as follows: Year Ended December 31, (in thousands) 2015 2014 2013 Balance, beginning of year $ — $ — $ — Increases related to prior year tax positions 419 — — Decreases related to prior year tax positions — — — Income taxes at statutory rate — — — Settlements — — — Lapse of statute — — — Balance, end of year $ 419 $ — $ — The Company files Federal income tax returns with the Internal Revenue Service and state income tax returns with various state tax authorities. The Company’s income tax returns are open for examination for the tax years 2012 through 2015. |
401(k) Savings Plan (Notes)
401(k) Savings Plan (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
401(k) Savings Plan [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 15–401(k) SAVINGS PLAN: The Company maintains a 401(k) Savings Plan for the benefit of its employees. Substantially all of the Company's employees are eligible to participate in the HomeStreet, Inc. 401(k) Savings Plan (the "Plan"). The Plan provides for payment of retirement benefits to employees pursuant to the provisions of the plan and in conformity with Section 401(k) of the Internal Revenue Code. Employees may elect to have a portion of their salary contributed to the Plan. New employees are automatically enrolled in the Plan at a 3.0% deferral rate unless they elect otherwise. Participants receive a vested employer matching contribution equal to 100% of the first 3.0% of eligible compensation deferred by the participant and 50% of the next 2.0% of eligible compensation deferred by the participant. Salaries and related costs for the years ended December 31, 2015 , 2014 , and 2013 , included employer contributions of $6.1 million , $4.5 million and $3.7 million , respectively. |
Share Based Compensation Plans
Share Based Compensation Plans (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Plans [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 16–SHARE-BASED COMPENSATION PLANS: For the years ended December 31, 2015 , 2014 , and 2013 , the Company recognized $1.1 million , $1.5 million , and $1.1 million of compensation cost, respectively, for share-based compensation awards. 2014 Equity Incentive Plan In May 2014, the shareholders approved the Company's 2014 Equity Incentive Plan (the “2014 EIP”). Under the 2014 EIP, all of the Company’s officers, employees, directors and/or consultants are eligible to receive awards. Awards which may be granted under the 2014 EIP include incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock, performance share awards and performance compensation awards. The maximum amount of HomeStreet, Inc. common stock available for grant under the 2014 EIP is 900,000 shares, which includes shares of common stock that were still available for issuance under the 2010 Plan and the 2011 Plan. Nonqualified Stock Options The Company grants nonqualified options to key senior management personnel. A summary of changes in nonqualified stock options granted for the year ended December 31, 2015 is as follows: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (2) (in thousands) Options outstanding at December 31, 2014 601,024 $ 12.16 7.2 years $ 3,329 Granted — — 0.0 years — Cancelled or forfeited (15,136 ) 20.71 7.4 years 16 Exercised (44,971 ) 15.42 6.4 years 285 Options outstanding at December 31, 2015 540,917 11.65 6.2 years 5,443 Options that are exercisable and expected to be exercisable (1) 540,900 11.65 6.2 years 5,443 Options exercisable 540,043 $ 11.63 6.2 years $ 5,443 (1) Adjusted for estimated forfeitures. (2) Intrinsic value is the amount by which fair value of the underlying stock exceeds the exercise price. Under this plan, 44,971 options have been exercised during the year ended December 31, 2015 , resulting in cash received and related income tax benefits totaling $693 thousand . As of December 31, 2015 , there was $2 thousand of total unrecognized compensation costs related to stock options. Compensation costs are recognized over the requisite service period, which typically is the vesting period. Unrecognized compensation costs are expected to be recognized over the remaining weighted-average requisite service period of four months . As observable market prices are generally not available for estimating the fair value of stock options, an option-pricing model is utilized to estimate fair value. The fair value of the options granted during 2013 was estimated as of the grant date using a Black-Scholes Merton (“Black-Scholes”) model and the assumptions noted in the following table. There were no options granted during the year ended December 31, 2015 and 2014 . Year Ended December 31, 2013 Weighted-average fair value per share $ 8.78 Expected term of the option 6 years Expected stock price volatility 50.04 % Annual risk-free interest rate 1.18 % Expected annual dividend yield 2.03 % The weighted-average expected term of 6 years used to value option awards issued in 2013 was an estimate based on an expectation that the holders of the stock options, once vested, will exercise them – ultimately reflecting the settlement of all vested options. As the Company did not have historical exercise behavior to reference for these types of options, the Company leveraged the “simplified” method for estimating the expected term of these “plain vanilla” stock options. When estimating expected volatility and the dividend yield, the Company considered historical data of other similar entities that were publicly traded over a period commensurate with the life of the options. A single median was derived for each input from this population. Restricted Shares The Company grants restricted shares to key senior management personnel and directors. A summary of the status of restricted shares follows. Number Weighted Average Grant Date Fair Value Restricted shares outstanding at December 31, 2014 118,517 $ 18.26 Granted 107,507 18.41 Cancelled or forfeited (40,179 ) 18.63 Vested (26,636 ) 17.33 Restricted shares outstanding at December 31, 2015 159,209 18.42 Nonvested at December 31, 2015 159,209 $ 18.42 At December 31, 2015 , there was $1.8 million of total unrecognized compensation cost related to nonvested restricted shares. Unrecognized compensation cost is generally expected to be recognized over a weighted average period of 1.9 years . Restricted share awards granted to senior management vest based upon the achievement of certain market conditions. One-third vested when the 30-day rolling average share price exceeded 25% of the grant date fair value; one-third vested when the 30-day rolling average share price exceeded 40% of the grant date fair value; and one-third vested when the 30-day rolling average share price exceeded 50% of the grant date fair value. The Company accrues compensation expense based upon an estimate of the awards' expected vesting period. If a market condition is satisfied prior to the end of the estimated vesting period any unrecognized compensation costs associated with the portion of restricted shares that vested earlier than expected are immediately recognized in earnings. Certain restricted stock awards granted to senior management during 2015 and 2014 contain both service conditions and performance conditions. Restricted stock units (“RSUs”) are stock awards with a pro-rata three year vesting, and the fair market value of the awards are determined at the grant date. Performance share units ("PSUs") are stock awards where the number of shares ultimately received by the employee depends on the company’s performance against specified targets and vest over a three-year period. The fair value of each PSU is determined on the grant date, based on the company’s stock price, and assumes that performance targets will be achieved. Over the performance period, the number of shares of stock that will be issued is adjusted upward or downward based upon the probability of achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense will be based on a comparison of the final performance metrics to the specified targets. Compensation cost is recognized over the requisite three-year service period on a straight-line basis and adjusted for changes in the probability that the performance targets will be achieved. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 17–FAIR VALUE MEASUREMENT: The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Fair Value Hierarchy A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company’s assumptions of what market participants would use in pricing the asset or liability. The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period. 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. 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. 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. Multifamily loans (DUS) 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. 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 Carried at lower of amortized cost or fair value of collateral, less the estimated cost to sell. 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 12 , Mortgage Banking Operations . Level 3 recurring fair value measurement Multifamily MSRs 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. Level 2 recurring fair value measurement Interest rate lock 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. 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. (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 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 commitments 8 — — 8 Interest rate swaps 4,007 — 4,007 — Total liabilities $ 5,511 $ — $ 5,503 $ 8 (in thousands) Fair Value at December 31, 2014 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 107,280 $ — $ 107,280 $ — Commercial 13,671 — 13,671 — Municipal bonds 122,334 — 122,334 — Collateralized mortgage obligations: Residential 43,166 — 43,166 — Commercial 20,486 — 20,486 — Corporate debt securities 79,400 — 79,400 — U.S. Treasury securities 40,989 — 40,989 — Single family mortgage servicing rights 112,439 — — 112,439 Single family loans held for sale 610,350 — 610,350 — Derivatives Forward sale commitments 1,071 — 1,071 — Interest rate lock commitments 11,939 — — 11,939 Interest rate swaps 11,689 — 11,689 — Total assets $ 1,174,814 $ — $ 1,050,436 $ 124,378 Liabilities: Derivatives Forward sale commitments $ 5,658 $ — $ 5,658 $ — Interest rate lock commitments 6 — — 6 Interest rate swaps 972 — 972 — Total liabilities $ 6,636 $ — $ 6,630 $ 6 There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2015 and 2014 . 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 commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the years ended December 31, 2015 and 2014 , see Note 12, Mortgage Banking Operations . The fair value of IRLCs considers several factors including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan (referred to as the value of servicing) and the probability that the commitment will not be converted into a funded loan (referred to as a fall-out factor). The fair value of IRLCs on loans held for sale, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. The significance of the fall-out factor to the fair value measurement of an individual IRLC is generally highest at the time that the rate lock is initiated and declines as closing procedures are performed and the underlying loan gets closer to funding. The fall-out factor applied is based on historical experience. The value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs, and underlying portfolio characteristics. Because these inputs are not observable in market trades, the fall-out factor and value of servicing are considered to be level 3 inputs. The fair value of IRLCs decreases in value upon an increase in the fall-out factor and increases in value upon an increase in the value of servicing. Changes in the fall-out factor and value of servicing do not increase or decrease based on movements in other significant unobservable inputs. The Company recognizes unrealized gains and losses from the time that an IRLC is initiated until the gain or loss is realized at the time the loan closes, which generally occurs within 30-90 days. For IRLCs that fall out, any unrealized gain or loss is reversed, which generally occurs at the end of the commitment period. The gains and losses recognized on IRLC derivatives generally correlates to volume of single family interest rate lock commitments made during the reporting period (after adjusting for estimated fallout) while the amount of unrealized gains and losses realized at settlement generally correlates to the volume of single family closed loans during the reporting period. The Company uses the discounted cash flow model to estimate the fair value of certain loans that have been transferred from held for sale to held for investment and single family loans held for sale when the fair value of the loans is not derived using observable market inputs. The key assumption in the valuation model is the implied spread to benchmark interest rate curve. The implied spread is not directly observable in the market and is derived from third party pricing which is based on market information from comparable loan pools. The fair value estimate of these certain single family loans that have been transferred from held for sale to held for investment and these certain single family loans held for sale is sensitive to changes in the benchmark interest rate which might result in a significantly higher or lower fair value measurement. During the first quarter of 2015, 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 has 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 $21.5 million at December 31, 2015 . 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. (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% The following information presents significant Level 3 unobservable inputs used to measure fair value of single family loans held for sale where fair value option was elected. (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)% The following table presents fair value changes and activity for Level 3 interest rate lock commitments. Year Ended December 31, (in thousands) 2015 2014 Beginning balance, net $ 11,933 $ 5,972 Total realized/unrealized gains (1) 149,688 118,708 Settlements (143,910 ) (112,747 ) Ending balance, net $ 17,711 $ 11,933 (1) All realized and unrealized gains and losses are recognized in earnings as net gain from mortgage loan origination and sale activities on the consolidated statements of operations. There were net unrealized gains (losses) of $17.7 million and $11.9 million for the years ended December 31, 2015 and 2014 , respectively, recognized on interest rate lock commitments outstanding at December 31, 2015 and 2014 , respectively. The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock commitments. (dollars in thousands) At December 31, 2015 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock commitments, net $ 17,711 Income approach Fall out factor 0.60% 61.16% 15.80% Value of servicing 0.53% 1.71% 0.80% (dollars in thousands) At December 31, 2014 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock commitments, net $ 11,933 Income approach Fall out factor 0.60% 77.9% 21.4% Value of servicing 0.56% 1.94% 0.93% 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 years ended December 31, 2015 and 2014 , 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 year ended December 31, 2015 , the Company applied a range of stated value adjustments of 0.0% to 100.0% , with a weighted average of 36.3% . During the year ended December 31, 2014 , the Company applied a range of stated value adjustments of 10.0% to 100.0% , with a weighted average of 41.8% . During the years ended December 31, 2015 and 2014 , 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 years ended December 31, 2015 and 2014 and still held at the end of the respective reporting period. Year Ended December 31, 2015 (in thousands) Fair Value of Assets Held at December 31, 2015 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 7,492 $ — $ — $ 7,492 $ 127 Other real estate owned (2) 7,230 — — 7,230 (526 ) Total $ 14,722 $ — $ — $ 14,722 $ (399 ) Year Ended December 31, 2014 (in thousands) Fair Value of Assets Held at December 31, 2014 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 19,021 $ — $ — $ 19,021 $ (207 ) Other real estate owned (2) 6,706 — — 6,706 (41 ) Total $ 25,727 $ — $ — $ 25,727 $ (248 ) (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. 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. 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 — At December 31, 2014 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 30,502 $ 30,502 $ 30,502 $ — $ — Investment securities held to maturity 28,006 28,537 — 28,537 — Loans held for investment 2,099,129 2,150,672 — — 2,150,672 Loans held for sale – multifamily 10,885 10,855 — 10,855 — Mortgage servicing rights – multifamily 10,885 12,540 — — 12,540 Federal Home Loan Bank stock 33,915 33,915 — 33,915 — Liabilities: Deposits $ 2,445,430 $ 2,445,635 $ — $ 2,445,635 $ — Federal Home Loan Bank advances 597,590 600,599 — 600,599 — Federal funds purchased and securities sold under agreements to repurchase 50,000 50,000 — 50,000 — Long-term debt 61,857 60,235 — 60,235 — Excluded from the fair value tables above are certain off-balance sheet loan commitments such as unused home equity lines of credit, business banking line funds and undisbursed construction funds. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the related allowance for credit losses, which amounted to $1.8 million and $3.4 million at December 31, 2015 and December 31, 2014 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 18–EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share. Year Ended December 31, (in thousands, except share and per share data) 2015 2014 2013 Net income $ 41,319 $ 22,259 $ 23,809 Weighted average shares: Basic weighted-average number of common shares outstanding 20,818,045 14,800,689 14,412,059 Dilutive effect of outstanding common stock equivalents (1) 241,156 160,392 386,109 Diluted weighted-average number of common stock outstanding 21,059,201 14,961,081 14,798,168 Earnings per share: Basic earnings per share $ 1.98 $ 1.50 $ 1.65 Diluted earnings per share $ 1.96 $ 1.49 $ 1.61 Dividends per share $ — $ 0.11 $ 0.33 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2015 , 2014 and 2013 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 , 143,400 and 103,674 at December 31, 2015 , 2014 and 2013 , respectively. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | NOTE 19–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 is also responsible 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 manage the 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. We use various management accounting methodologies to assign certain income statement items to the responsible operating segment, including: • a funds transfer pricing (“FTP”) system, which allocates interest income credits and funding charges between the segments, assigning to each segment a funding credit for its liabilities, such as deposits, and a charge to fund its assets; • an allocation of charges for services rendered to the segments by centralized functions, such as corporate overhead, which are generally based on each segment’s consumption patterns; and • an allocation of the Company's consolidated income taxes which are based on the effective tax rate applied to the segment's pretax income or loss. The FTP methodology is based on external market factors and aligns the expected weighted-average life of the financial asset or liability to external economic data, such as the U.S. Dollar LIBOR/Swap curve, and provides a consistent basis for determining the cost of funds to be allocated to each operating segment. Financial highlights by operating segment were as follows. Year Ended December 31, 2015 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 28,318 $ 120,020 $ 148,338 Provision for credit losses — 6,100 6,100 Noninterest income 251,870 29,367 281,237 Noninterest expense 243,970 122,598 366,568 Income before income taxes 36,218 20,689 56,907 Income tax expense 12,916 2,672 15,588 Net income $ 23,302 $ 18,017 $ 41,319 Total assets $ 848,445 $ 4,046,050 $ 4,894,495 Year Ended December 31, 2014 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 16,683 $ 81,986 $ 98,669 Provision for credit losses — (1,000 ) (1,000 ) Noninterest income 166,991 18,666 185,657 Noninterest expense 172,199 79,812 252,011 Income before income taxes 11,475 21,840 33,315 Income tax expense 3,964 7,092 11,056 Net income $ 7,511 $ 14,748 $ 22,259 Total assets $ 788,681 $ 2,746,409 $ 3,535,090 Year Ended December 31, 2013 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 15,272 $ 59,172 $ 74,444 Provision for credit losses — 900 900 Noninterest income 175,654 15,091 190,745 Noninterest expense 163,354 66,141 229,495 Income before income taxes 27,572 7,222 34,794 Income tax expense 9,736 1,249 10,985 Net income $ 17,836 $ 5,973 $ 23,809 Total assets $ 489,292 $ 2,576,762 $ 3,066,054 (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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 20–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. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 1,546 $ (11,994 ) $ 9,190 Other comprehensive (loss) income before reclassifications (1,325 ) 15,072 (20,032 ) Amounts reclassified from accumulated other comprehensive income (2,670 ) (1,532 ) (1,152 ) Net current-period other comprehensive (loss) income (3,995 ) 13,540 (21,184 ) Ending balance $ (2,449 ) $ 1,546 $ (11,994 ) 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). Affected Line Item in the Consolidated Statements of Operations Amount Reclassified from Accumulated Other Comprehensive Income Year Ended December 31, (in thousands) 2015 2014 2013 Gain on sale of investment securities available for sale $ 2,406 $ 2,358 $ 1,772 Income tax (benefit) expense (264 ) 826 620 Total, net of tax $ 2,670 $ 1,532 $ 1,152 |
Parent Company Financial Statem
Parent Company Financial Statements (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Financial Statements [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 21–PARENT COMPANY FINANCIAL STATEMENTS: Condensed financial information for HomeStreet, Inc. is as follows. Condensed Statements of Financial Condition At December 31, (in thousands) 2015 2014 Assets: Cash and cash equivalents $ 7,777 $ 5,270 Other assets 13,419 7,137 Investment in stock of subsidiaries 510,756 353,992 $ 531,952 $ 366,399 Liabilities: Other liabilities 4,820 2,304 Long-term debt 61,857 61,857 66,677 64,161 Shareholders’ Equity: Preferred stock, no par value — — Common stock, no par value 511 511 Additional paid-in capital 222,328 96,615 Retained earnings 244,885 203,567 Accumulated other comprehensive income (2,449 ) 1,545 465,275 302,238 $ 531,952 $ 366,399 Condensed Statements of Operations Year Ended December 31, (in thousands) 2015 2014 2013 Net interest expense $ (1,036 ) $ (1,059 ) $ (2,545 ) Noninterest income 1,686 561 970 Income (loss) before income tax benefit and equity in income of subsidiaries 650 (498 ) (1,575 ) Dividend from HomeStreet Capital to parent 13,181 4,200 19,600 13,831 3,702 18,025 Noninterest expense 7,239 4,664 2,281 Income before income tax benefit 6,592 (962 ) 15,744 Income tax benefit (561 ) (1,827 ) (1,474 ) Income from subsidiaries $ 34,166 $ 21,394 $ 6,591 Net income $ 41,319 $ 22,259 $ 23,809 Other comprehensive (loss) income (3,995 ) 13,540 (21,184 ) Comprehensive income $ 37,324 $ 35,799 $ 2,625 Condensed Statements of Cash Flows Year Ended December 31, (in thousands) 2015 2014 2013 Net cash provided by (used in) operating activities $ 2,654 $ 5,693 $ (483 ) Cash flows from investing activities: Net purchases of and proceeds from investment securities 673 1,000 (5,797 ) Net payments for investments in and advances to subsidiaries (992 ) (732 ) (12,172 ) Net cash (used in) provided by investing activities (319 ) 268 (17,969 ) Cash flows from financing activities: Proceeds from issuance of common stock 177 130 188 Dividends paid (5 ) (1,628 ) — Proceeds from and repayment of advances from subsidiaries — (3,527 ) 30 Net cash provided by (used in) financing activities 172 (5,025 ) 218 Increase (decrease) in cash and cash equivalents 2,507 936 (18,234 ) Cash and cash equivalents at beginning of year 5,270 4,334 22,568 Cash and cash equivalents at end of year $ 7,777 $ 5,270 $ 4,334 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Financial Data [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 22–UNAUDITED QUARTERLY FINANCIAL DATA: Our supplemental quarterly consolidated financial information is as follows. Quarter Ended (in thousands, except share data) Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 Mar. 31, 2015 Dec. 31, 2014 Sept. 30, 2014 June 30, 2014 Mar. 31, 2014 Interest income $ 44,438 $ 43,990 $ 42,440 $ 34,246 $ 30,780 $ 28,478 $ 26,225 $ 25,810 Interest expense 4,698 4,356 4,210 3,512 3,278 3,170 3,078 3,098 Net interest income 39,740 39,634 38,230 30,734 27,502 25,308 23,147 22,712 Provision (reversal of provision) for credit losses 1,900 700 500 3,000 500 — — (1,500 ) Net interest income after provision for credit losses 37,840 38,934 37,730 27,734 27,002 25,308 23,147 24,212 Noninterest income 65,409 67,468 72,987 75,373 51,487 45,813 53,650 34,707 Noninterest expense 92,725 92,026 92,335 89,482 68,791 64,158 62,971 56,091 Income before income tax expense 10,524 14,376 18,382 13,625 9,698 6,963 13,826 2,828 Income tax expense 1,846 4,415 6,006 3,321 4,077 1,988 4,464 527 Net income $ 8,678 $ 9,961 $ 12,376 $ 10,304 $ 5,621 $ 4,975 $ 9,362 $ 2,301 Basic earnings per share $ 0.39 $ 0.45 $ 0.56 $ 0.60 $ 0.38 $ 0.34 $ 0.63 $ 0.16 Diluted earnings per share $ 0.39 $ 0.45 $ 0.56 $ 0.59 $ 0.38 $ 0.33 $ 0.63 $ 0.15 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 23–SUBSEQUENT EVENTS: The Company has evaluated the effects of events that have occurred subsequent to the year ended December 31, 2015 , and has included all material events that would require recognition in the 2015 consolidated financial statements or disclosure in the notes to the consolidated financial statements. On February 1, 2016, the Company completed its acquisition of Orange County Business Bank which was merged with and into HomeStreet Bank. 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. Adding Orange County Business Bank’s branch brings HomeStreet’s Southern California retail deposit branch network to eight locations. For a detailed discussion of the terms of the Orange County Business Bank acquisition, see Note 2, Business Combinations . |
Summary of Significant Accoun33
Summary of Significant Accounting Policies Summary of significant accounting (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation The Company consolidates legal entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest by first evaluating whether an entity is a variable interest entity ("VIE"). If an entity is determined to not be a VIE, it is considered to be a voting interest entity. Variable Interest Entities The Company may have variable interests in VIEs arising from debt, equity or other monetary interests in an entity, which change with fluctuations in the fair value of the entity's assets. VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company's loans held for sale are sold predominantly to government-sponsored enterprises ("GSEs") Fannie Mae, Freddie Mac and Ginnie Mae for the purpose of securitization by the GSEs, who also provide credit enhancement of the loans through certain guarantee provisions. The Company typically retains the right to service the loans. Because of the power of the GSEs over the VIEs that hold the assets from these residential mortgage loan securitizations, the Company is not the primary beneficiary of the VIEs and therefore the VIEs are not consolidated. The Company performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and therefore become subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Company's involvement with a VIE cause the Company's consolidation determination to change. Voting Interest Entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity's operations. For these types of entities, the Company's determination of whether it has a controlling financial interest is primarily based on the amount of voting equity interests held. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities' voting equity interests, or through other contractual rights that give the Company control, are consolidated by the Company. Investments in entities in which the Company has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for in accordance with the equity method of accounting (which requires the Company to recognize its proportionate share of the entity's net earnings). These investments are generally included in other assets. The Company may have investments in limited partnerships or limited liability companies. The Company generally consolidates entities where it is the general partner or managing member. However, certain entities may provide limited partners or members with the ability to remove the Company as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the limited partners or members have rights to participate in important decisions of the entity. Accordingly, the Company does not consolidate these entities, in which case they are accounted for in accordance with the equity method of accounting. For equity method investments holding real estate acquired in any manner for debts previously contracted with the Company, the investment is included in other real estate owned in the consolidated statements of financial condition and the proportionate share of the entity's net earnings are included in other real estate owned expense in the consolidated statements of operations. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash, interest-earning overnight deposits at other financial institutions, and other investments with original maturities equal to three months or less. For the consolidated statements of cash flows, the Company considered cash equivalents to be investments that are readily convertible to known amounts, so near to their maturity that they present an insignificant risk of a change in fair value due to change in interest rates, and purchased in conjunction with cash management activities. Restricted cash of $2.4 million at both December 31, 2015 and 2014 is included in accounts receivable and other assets for reinsurance-related reserves. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Investment Securities Investment securities that we might not hold until maturity are classified as available for sale ("AFS") and are reported at fair value in the statement of financial condition. Fair value measurement is based upon quoted market prices in active markets, if available. If quoted prices in active markets are not available, fair value is measured using pricing models or other model-based valuation techniques such as the present value of future cash flows, which consider prepayment assumptions and other factors such as credit losses and market liquidity. Unrealized gains and losses are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). Purchase premiums and discounts are recognized in interest income using the effective interest method over the life of the securities. Purchase premiums or discounts related to mortgage-backed securities are amortized or accreted using projected prepayment speeds. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. AFS investment securities in unrealized loss positions are evaluated for other-than-temporary impairment (“OTTI”) at least quarterly. For AFS debt securities, a decline in fair value is considered to be other-than-temporary if the Company does not expect to recover the entire amortized cost basis of the security. For AFS equity securities, the Company considers a decline in fair value to be other-than-temporary if it is probable that the Company will not recover its amortized cost basis. Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of recoverability, all relevant information is considered, including the length of time and extent to which fair value has been less than the amortized cost basis, the cause of the price decline, credit performance of the issuer and underlying collateral, and recoveries or further declines in fair value subsequent to the balance sheet date. For debt securities, the Company measures and recognizes OTTI losses through earnings if (1) the Company has the intent to sell the security or (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. In these circumstances, the impairment loss is equal to the full difference between the amortized cost basis and the fair value of the security. For securities that are considered other-than-temporarily-impaired that the Company has the intent and ability to hold in an unrealized loss position, the OTTI write-down is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to other factors, which is recognized as a component of OCI. For equity securities, the Company recognizes OTTI losses through earnings if the Company intends to sell the security. The Company also considers other relevant factors, including its intent and ability to retain the security for a period of time sufficient to allow for any anticipated recovery in market value, and whether evidence exists to support a realizable value equal to or greater than the carrying value. Any impairment loss on an equity security is equal to the full difference between the amortized cost basis and the fair value of the security. |
Real Estate Owned, Valuation Allowance, Policy [Policy Text Block] | Other Real Estate Owned Other real estate owned ("OREO") represents real estate acquired for debts previously contracted with the Company, generally through the foreclosure of loans. In certain cases, such as foreclosures on loans involving both the Company and other participating lenders, other real estate owned may be held in the form of an investment in an unconsolidated legal entity that is in-substance real estate. These properties are initially recorded at the net realizable value (fair value of collateral less estimated costs to sell). Upon transfer of a loan to other real estate owned, an appraisal is obtained and any excess of the loan balance over the net realizable value is charged against the allowance for loan losses. The Company allows up to 90 days after foreclosure to finalize determination of net realizable value. Subsequent declines in net realizable value identified from the ongoing analysis of such properties are recognized in current period earnings within noninterest expense as a provision for losses on other real estate owned. The net realizable value of these assets is reviewed and updated at least every six months depending on the type of property, or more frequently as circumstances warrant. As part of our subsequent events analysis process, we review updated independent third-party appraisals received and internal collateral valuations received subsequent to the reporting period-end to determine whether the fair value of loan collateral or OREO has changed. Additionally, we review agreements to sell OREO properties executed prior to and subsequent to the reporting period-end to identify changes in the fair value of OREO properties. If we determine that current valuations have changed materially from the prior valuations, we record any additional loan impairments or adjustments to OREO carrying values as of the end of the prior reporting period. From time to time the Company may elect to accelerate the disposition of certain OREO properties in a time frame faster than the expected marketing period assumed in the appraisal supporting our valuation of such properties. At the time a property is identified and the decision to accelerate its disposition is made, that property’s underlying fair value is re-measured. Generally, to achieve an accelerated time frame in which to sell a property, the price that the Company is willing to accept for the disposition of the property decreases. Accordingly, the net realizable value of these properties is adjusted to reflect this change in valuation. |
Equity Method Investments, Policy [Policy Text Block] | Investment in WMS Series LLC HomeStreet/WMS, Inc. (Windermere Mortgage Services, Inc.), a wholly owned and consolidated subsidiary of the Bank, has an affiliated business arrangement with Windermere Real Estate, WMS Series Limited Liability Company ("WMS LLC"). The Company and Windermere Real Estate each have 50% joint control over the governance of WMS LLC. The operations of WMS LLC, which is subdivided into 30 individual operating series, are recorded using the equity method of accounting. The Company recognizes its proportionate share of the results of operations of WMS LLC as income from WMS Series LLC in noninterest income within the Company's consolidated statements of operations. The Company has determined that WMS LLC is not a VIE and further does not consolidate WMS LLC under the voting interest model. The 30 individual operating series, which are divisions of WMS LLC that are allocated assets and liabilities and allow certain forms of legal isolation, are not considered to be stand-alone subsidiary legal entities for purposes of applying the consolidation guidance under U.S. GAAP. As a result, the 30 individual operating series are not considered to be VIEs based on the determination that WMS LLC is not a VIE. The investment is reviewed for possible other-than-temporary impairment annually, or more frequently if warranted. The review typically includes an analysis of facts and circumstances of the investment and expectations regarding the investment’s future cash flows. The Company has not recorded other-than-temporary impairment on this investment. Equity method investment income from WMS LLC was $2.5 million , $1.3 million , and $1.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company’s investment in WMS LLC was $2.9 million and $3.1 million , which is included in accounts receivable and other assets at December 31, 2015 and 2014 , respectively. The Company provides contracted services to WMS LLC related to accounting, loan shipping, loan underwriting, quality control, secondary marketing, and information systems support performed by Company employees on behalf of WMS LLC. The Company recorded contracted services income/(loss) of $(960) thousand , $(1.2) million , and $(951) thousand for the years ended December 31, 2015 , 2014 and 2013 , respectively. Income related to WMS LLC, including equity method investment income and contracted services, is classified as income from WMS Series LLC in noninterest income within the consolidated statements of operations. The Company purchased $616.9 million , $491.3 million and $695.7 million of single family mortgage loans from WMS LLC for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company provides a $25.0 million secured line of credit that allows WMS LLC to fund and close single family mortgage loans in the name of WMS LLC. The outstanding balance of the secured line of credit was $8.6 million and $7.1 million at December 31, 2015 , and 2014 , respectively. The highest outstanding balance of the secured line of credit was $13.4 million and $12.4 million during 2015 and 2014 , respectively. The line of credit matures July 1, 2016 . |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment Furniture and equipment and leasehold improvements are stated at cost less accumulated depreciation or amortization and depreciated or amortized over the shorter of the useful life of the related asset or the term of the lease, generally 3 to 15 years, using the straight-line method. Management periodically evaluates furniture and equipment and leasehold improvements for impairment. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company tests goodwill for impairment during the third quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate there may be impairment. Goodwill was not impaired at December 31, 2015 or 2014 , nor was any goodwill written off due to impairment during 2015 , 2014 or 2013 . |
Debt, Policy [Policy Text Block] | Trust Preferred Securities Trust preferred securities allow investors the ability to invest in junior subordinated debentures of the Company, which provide the Company with long-term financing. The transaction begins with the formation of a VIE established as a trust by the Company. This trust issues two classes of securities: common securities, all of which are purchased and held by the Company and recorded in other assets on the consolidated statements of financial position, and trust preferred securities, which are sold to third-party investors. The trust holds subordinated debentures (debt) issued by the Company, which the Company records in long-term debt on the consolidated statement of financial position. The trust finances the purchase the subordinated debentures with the proceeds from the sale of its common and preferred securities. The junior subordinated debentures are the sole assets of the trust, and the coupon rate on the debt mirrors the dividend payment on the preferred security. The Company also has the right to defer interest payments for up to five years and has the right to call the preferred securities. These preferred securities are non-voting and do not have the right to convert to shares of the issuer. The trust's common equity securities issued to the Company are not considered to be equity at risk because the equity securities were financed by the trust through the purchase of the debentures from the Company. As a consequence, the Company holds no variable interest in the trust, and therefore, is not the trust's primary beneficiary. |
Repurchase and Resale Agreements Policy [Policy Text Block] | Federal Funds Purchased and Securities Sold Under Agreements to Repurchase From time to time, the Company may enter into federal funds transactions involving purchasing reserve balances on a short-term basis, or sales of securities under agreements to repurchase the same securities (“repurchase agreements”). Repurchase agreements are accounted for as secured financing arrangements with the obligation to repurchase securities sold reflected as a liability in the consolidated statements of financial condition. The dollar amount of securities underlying the repurchase agreements remains in investment securities available for sale. For short-term instruments, including securities sold under agreements to repurchase and federal funds purchased, the carrying amount is a reasonable estimate of the fair value. |
Income Tax, Policy [Policy Text Block] | Income Taxes Our income tax expense, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to federal income tax and also state income taxes in a number of different states. Significant judgments and estimates are required in determining the consolidated income tax expense. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. Such changes are accounted for in the period of enactment, and are reflected as discrete tax items in the Company’s tax provision. The Company records net deferred tax assets to the extent it is believed that these assets will more likely than not be realized. In making this determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent financial operations. After reviewing and weighing all of the positive and negative evidence, if the positive evidence outweighs the negative evidence, then the Company does not record a valuation allowance for deferred tax assets. If the negative evidence outweighs the positive evidence, then a valuation allowance for all or a portion of the deferred tax assets is recorded. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in different jurisdictions. Accounting Standards Codification ("ASC") 740 states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. We record unrecognized tax benefits as liabilities in accordance with ASC 740 (including any potential interest and penalties) and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. |
Derivatives, Policy [Policy Text Block] | Derivatives and Hedging Activities In order 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 mortgage servicing rights, the Company utilizes derivatives, such as forward sale commitments, interest rate futures, option contracts, interest rate swaps and swaptions as risk management instruments in its hedging strategy. All free-standing derivatives are required to be recorded on the consolidated statements of financial condition at fair value. As permitted under U.S. GAAP, the Company nets derivative assets and liabilities, and related collateral, when a legally enforceable master netting agreement exists between the Company and the derivative counterparty. The accounting for changes in fair value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings. The Company does not use derivatives for trading purposes. Before initiating a position where hedge accounting treatment is desired, the Company formally documents the relationship between the hedging instrument(s) and the hedged item(s), as well as its risk management objective and strategy. For derivative instruments qualifying for hedge accounting treatment, the instrument is designed as either: (1) a hedge of changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (a fair value hedge), or (2) a hedge of the variability in expected future cash flows associated with an existing recognized asset or liability or a probable forecasted transaction (a cash flow hedge). Derivatives where the Company has not attempted to achieve or attempted but did not achieve hedge accounting treatment are referred to as economic hedges. The changes in fair value of these instruments are recorded in our consolidated statements of operations in the period in which the change occurs. In a fair value hedge, changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk are recorded through current period earnings in the same financial statement category as the hedged item. In a cash flow hedge, the effective portion of the change in the fair value of the hedging derivative is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings during the same period in which the hedged item affects earnings. The ineffective portion is recognized immediately in noninterest income – other. The Company discontinues hedge accounting when (1) it determines that the derivative is no longer expected to be highly effective in offsetting changes in fair value or cash flows of the designated item; (2) the derivative expires or is sold, terminated, or exercised; (3) the derivative is de-designated from the hedge relationship; or (4) it is no longer probable that a hedged forecasted transaction will occur by the end of the originally specified time period. If the Company determines that the derivative no longer qualifies as a fair value or cash flow hedge and therefore hedge accounting is discontinued, the derivative (if retained) will continue to be recorded on the balance sheet at its fair value with changes in fair value included in current earnings. For a discontinued fair value hedge, the previously hedged item is no longer adjusted for changes in fair value. When the Company discontinues hedge accounting because it is not probable that a forecasted transaction will occur, the derivative will continue to be recorded on the balance sheet at its fair value with changes in fair value included in current earnings, and the gains and losses in accumulated other comprehensive income will be recognized immediately in earnings. When the Company discontinues hedge accounting because the hedging instrument is sold, terminated, or de-designated as a hedge, the amount reported in accumulated other comprehensive income through the date of sale, termination, or de-designation will continue to be reported in accumulated other comprehensive income until the forecasted transaction affects earnings. For fair value hedges that are de-designated, the net gain or loss on the underlying transactions being hedged is amortized to other noninterest income over the remaining contractual life of the loans at the time of de-designation. Changes in the fair value of these derivative instruments after de-designation of fair value hedge accounting are recorded in noninterest income in the consolidated statements of operations. As of December 31, 2015 , the Company had no derivatives that were designated as fair value hedges or cash flow hedges. Interest rate lock commitments ("IRLCs") for single family mortgage loans that we intend to sell are considered free-standing derivatives. For determining the fair value measurement of IRLCs we consider several factors including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan and the probability that the loan will not fund according to the terms of the commitment (referred to as a fall-out factor). The value of the underlying loan is affected primarily by changes in interest rates. Management uses forward sales commitments to hedge the interest rate exposure from IRLCs. A forward loan sale commitment protects the Company from losses on sales of loans arising from the exercise of the loan commitments by securing the ultimate sales price and delivery date of the loan. The Company takes into account various factors and strategies in determining the portion of the mortgage pipeline it wants to hedge economically. Unrealized and realized gains and losses on derivative contracts utilized for economically hedging the mortgage pipeline are recognized as part of the net gain on mortgage loan origination and sale activities within noninterest income. The Company is exposed to credit risk if derivative counterparties to derivative contracts do not perform as expected. This risk consists primarily of the termination value of agreements where the Company is in a favorable position. The Company minimizes counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, as appropriate. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Employee Compensation The Company has share-based employee compensation plans as more fully discussed in Note 16, Share-Based Compensation Plan s. Under the accounting guidance for stock compensation, compensation expense recognized includes the cost for share-based awards, such as nonqualified stock options and restricted stock grants, which are recognized as compensation expense over the requisite service period (generally the vesting period) on a straight line basis. For stock awards that vest upon the satisfaction of a market condition, the Company estimates the service period over which the award is expected to vest. If all conditions to the vesting of an award are satisfied prior to the end of the estimated vesting period, any unrecognized compensation costs associated with the portion of the award that vested earlier than expected are immediately recognized in earnings. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurement The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. The degree of management judgment involved in estimating the fair value of a financial instrument or other asset is dependent upon the availability of quoted market prices or observable market value inputs for internal valuation models, used for estimating fair value. For financial instruments that are actively traded in the marketplace or whose values are based on readily available market data, little judgment is necessary when estimating the instrument’s fair value. When observable market prices and data are not readily available, significant management judgment often is necessary to estimate fair value. In those cases, different assumptions could result in significant changes in valuation. See Note 17, Fair Value Measurement . |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments, Guarantees, and Contingencies U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. A guarantee is a contract that contingently requires the guarantor to pay a guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party’s failure to perform under a specified agreement. The Company initially records guarantees at the inception date fair value of the obligation assumed and records the amount in other liabilities. For indemnifications provided in sales agreements, a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction. For these indemnifications, the initial liability is amortized to income as the Company’s risk is reduced (i.e., over time as the Company's exposure is reduced or when the indemnification expires). Contingent liabilities, including those that exists as a result of a guarantee or indemnification, are recognized when it becomes probable that a loss has been incurred and the amount of the loss is reasonably estimable. The contingent portion of a guarantee is not recognized if the estimated amount of loss is less than the carrying amount of the liability recognized at inception of the guarantee (as adjusted for any amortization). The Company typically sells loans servicing retained in either a pooled loan securitization transaction with a GSE, a whole loan sale to a GSE, or a whole loan sale to market participants such as other financial institutions, who purchase the loans for investment purposes or include them in a private label securitization transaction, or the loans are pooled and sold into a conforming loan securitization with a government-sponsored enterprise (“GSE”), provided loan origination parameters conform to GSE guidelines. Substantially all of the Company’s loan sales are pooled loan securitization transactions with GSEs. These conforming loan securitizations are guaranteed by GSEs, such as Fannie Mae, Ginnie Mae and Freddie Mac. 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 any credit loss on the repurchased mortgage loans after accounting for any mortgage insurance that it 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. See Note 13, Commitments, Guarantees, and Contingencies . The Company sells multifamily loans through the Fannie Mae Delegated Underwriting and Servicing Program ("DUS" ® ) (DUS® is a registered trademark of Fannie Mae.) that are subject to a credit loss sharing arrangement. The Company may also from time to time sell loans with recourse. When loans are sold with recourse or subject to a loss sharing arrangement, a liability is recorded based on the estimated fair value of the obligation under the accounting guidance for guarantees. These liabilities are included within other liabilities. See Note 13, Commitments, Guarantees, and Contingencies . |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Basic earnings per share ("EPS") is computed by dividing net income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average common shares outstanding, plus the effect of common stock equivalents (for example, stock options and unvested restricted stock). Stock options issued under stock-based compensation plans that have an antidilutive effect and shares of restricted stock whose vesting is contingent upon conditions that have not been satisfied at the end of the period are excluded from the computation of diluted EPS. Weighted average common shares outstanding include shares held by the HomeStreet, Inc. 401(k) Savings Plan. |
Segment Reporting, Policy [Policy Text Block] | 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 regularly reviewed by the Company's chief operating decision maker for the purpose of allocating resources and evaluating the performance of the Company's businesses. The results for these business segments are based on management’s accounting process, which assigns income statement items and assets to each responsible operating segment. This process is dynamic and is based on management's view of the Company's operations. See Note 19, Business Segments . |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (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 ) |
Business Combination, Acquisition Related Costs [Table Text Block] | The following table provides a breakout of Simplicity merger-related expense for the years ended December 31, 2015 and 2014 : Year Ended December 31, (in thousands) 2015 2014 Noninterest expense Salaries and related costs $ 7,669 $ 23 General and administrative 1,256 179 Legal 530 245 Consulting 5,539 388 Occupancy 335 4 Information services 481 50 Total noninterest expense $ 15,810 $ 889 |
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. Year Ended December 31, (in thousands, except share data) 2015 2014 Net interest income $ 152,828 $ 129,975 Provision (reversal of provision) for credit losses 6,100 (2,150 ) Total noninterest income 274,652 198,489 Total noninterest expense 358,931 293,399 Net income $ 43,997 $ 27,621 Basic income per share $ 2.00 $ 1.27 Diluted income per share $ 1.98 $ 1.26 Basic weighted average number of shares outstanding 22,038,157 21,714,874 Diluted weighted average number of shares outstanding 22,230,119 21,901,347 |
Regulatory Capital Requiremen35
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The Bank’s and the Company's capital amounts and ratios under Basel III are included in the following table: 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 Tier 1 leverage capital $ 455,101 9.46 % $ 192,428 4.0 % $ 240,536 5.0 % 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 455,101 13.04 209,432 6.0 279,243 8.0 Total risk-based capital $ 485,761 13.92 % $ 279,243 8.0 % $ 349,054 10.0 % 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 Tier 1 leverage capital $ 480,038 9.95 % $ 193,025 4.0 % $ 241,281 5.0 % 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 480,038 11.94 241,216 6.0 321,621 8.0 Total risk-based capital $ 510,697 12.70 % $ 321,621 8.0 % $ 402,026 10.0 % The Bank’s capital amounts and ratios at December 31, 2014 under Basel I are included in the following table. On January 1, 2015, the Company and the Bank became subject to Basel III capital standards. Regulatory capital ratios under Basel I may not be comparative to capital ratios under Basel III. At December 31, 2014 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 Tier 1 leverage capital $ 319,010 9.38 % $ 136,058 4.0 % $ 170,072 5.0 % Tier 1 risk-based capital (to risk-weighted assets) 319,010 13.10 97,404 4.0 146,106 6.0 Total risk-based capital $ 341,534 14.03 % $ 194,808 8.0 % $ 243,511 10.0 % |
Investment Securities Availab36
Investment Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. 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 December 31, 2014 (in thousands) Amortized Gross Gross Fair Mortgage-backed securities: Residential $ 107,624 $ 509 $ (853 ) $ 107,280 Commercial 13,030 641 — 13,671 Municipal bonds 119,744 2,847 (257 ) 122,334 Collateralized mortgage obligations: Residential 44,254 161 (1,249 ) 43,166 Commercial 20,775 — (289 ) 20,486 Corporate debt securities 80,214 296 (1,110 ) 79,400 U.S. Treasury securities 40,976 13 — 40,989 $ 426,617 $ 4,467 $ (3,758 ) $ 427,326 |
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. 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 December 31, 2014 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair Mortgage-backed securities: Residential $ — $ — $ (853 ) $ 57,242 $ (853 ) $ 57,242 Municipal bonds (11 ) 2,339 (246 ) 17,155 (257 ) 19,494 Collateralized mortgage obligations: Residential — — (1,249 ) 31,021 (1,249 ) 31,021 Commercial (29 ) 5,037 (260 ) 15,449 (289 ) 20,486 Corporate debt securities (56 ) 13,140 (1,054 ) 40,997 (1,110 ) 54,137 $ (96 ) $ 20,516 $ (3,662 ) $ 161,864 $ (3,758 ) $ 182,380 |
Computation of weighted average yield using coupon on the fair value | At December 31, 2015 Within one year After one year through five years After five years through ten years After ten years Total (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 % At December 31, 2014 Within one year After one year through five years After five years through ten years After ten years Total (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 $ — — % $ — — % $ 6,949 1.72 % $ 100,331 1.75 % $ 107,280 1.75 % Commercial — — — — — — 13,671 4.75 13,671 4.75 Municipal bonds — — 604 4.10 23,465 3.55 98,265 4.21 122,334 4.09 Collateralized mortgage obligations: Residential — — — — — — 43,166 1.84 43,166 1.84 Commercial — — — — 9,776 1.96 10,710 1.99 20,486 1.97 Corporate debt securities — — 9,000 2.21 38,487 3.35 31,913 3.73 79,400 3.37 U.S. Treasury securities 25,998 0.28 14,991 0.46 — — — — 40,989 0.35 Total available for sale $ 25,998 0.28 % $ 24,595 1.19 % $ 78,677 3.09 % $ 298,056 2.92 % $ 427,326 2.69 % |
Sales of investment securities available for sale | Sales of investment securities available for sale were as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Proceeds $ 112,259 $ 96,154 $ 127,648 Gross gains 2,571 2,560 2,089 Gross losses (165 ) (201 ) (315 ) |
Loans and Credit Quality (Table
Loans and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans held for investment [Table Text Block] | Loans held for investment consist of the following: At December 31, (in thousands) 2015 2014 Consumer loans Single family $ 1,203,180 (1) $ 896,665 Home equity and other 256,373 135,598 1,459,553 1,032,263 Commercial loans Commercial real estate 600,703 523,464 Multifamily 426,557 55,088 Construction/land development 583,160 367,934 Commercial business 154,262 147,449 1,764,682 1,093,935 3,224,235 2,126,198 Net deferred loan fees and costs (2,237 ) (5,048 ) 3,221,998 2,121,150 Allowance for loan losses (29,278 ) (22,021 ) $ 3,192,720 $ 2,099,129 (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. |
Schedule of Related Party Transactions [Table Text Block] | The following is a summary of activity during the years ended December 31, 2015 and 2014 with respect to such aggregate loans to these related parties and their associates: Year Ended December 31, (in thousands) 2015 2014 Beginning balance, January 1 $ 5,500 $ 9,738 New loans 181 — Principal repayments and advances, net (1,170 ) (4,238 ) Ending balance, December 31 $ 4,511 $ 5,500 |
Allowance for credit losses and recorded investment in loans by impairment methodology | Activity in the allowance for credit losses was as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Allowance for credit losses (roll-forward): Beginning balance $ 22,524 $ 24,089 $ 27,751 Provision (reversal of provision) for credit losses 6,100 (1,000 ) 900 (Charge-offs), net of recoveries 2,035 (565 ) (4,562 ) Ending balance $ 30,659 $ 22,524 $ 24,089 Components: Allowance for loan losses $ 29,278 $ 22,021 $ 23,908 Allowance for unfunded commitments 1,381 503 181 Allowance for credit losses $ 30,659 $ 22,524 $ 24,089 |
Allowance for credit losses by loan portfolio segment and loan class | Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Year Ended December 31, 2015 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 9,447 $ (284 ) $ 623 $ (844 ) $ 8,942 Home equity and other 3,322 (601 ) 288 1,611 4,620 12,769 (885 ) 911 767 13,562 Commercial loans Commercial real estate 3,846 (16 ) — 1,017 4,847 Multifamily 673 (149 ) 149 521 1,194 Construction/land development 3,818 — 2,193 3,260 9,271 Commercial business 1,418 (329 ) 161 535 1,785 9,755 (494 ) 2,503 5,333 17,097 Total allowance for credit losses $ 22,524 $ (1,379 ) $ 3,414 $ 6,100 $ 30,659 Year Ended December 31, 2014 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 11,990 $ (907 ) $ 139 $ (1,775 ) $ 9,447 Home equity and other 3,987 (953 ) 566 (278 ) 3,322 15,977 (1,860 ) 705 (2,053 ) 12,769 Commercial loans Commercial real estate 4,012 (52 ) 493 (607 ) 3,846 Multifamily 942 — — (269 ) 673 Construction/land development 1,414 — 516 1,888 3,818 Commercial business 1,744 (596 ) 229 41 1,418 8,112 (648 ) 1,238 1,053 9,755 Total allowance for credit losses $ 24,089 $ (2,508 ) $ 1,943 $ (1,000 ) $ 22,524 |
Loans by Impairment Methodology [Table Text Block] | The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology. 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 December 31, 2014 (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 $ 8,743 $ 704 $ 9,447 $ 818,783 $ 77,882 $ 896,665 Home equity and other 3,165 157 3,322 132,937 2,661 135,598 11,908 861 12,769 951,720 80,543 1,032,263 Commercial loans Commercial real estate 3,806 40 3,846 496,685 26,779 523,464 Multifamily 312 361 673 52,011 3,077 55,088 Construction/land development 3,818 — 3,818 362,487 5,447 367,934 Commercial business 974 444 1,418 144,071 3,378 147,449 8,910 845 9,755 1,055,254 38,681 1,093,935 Total $ 20,818 $ 1,706 $ 22,524 $ 2,006,974 $ 119,224 $ 2,126,198 |
Impaired loans by loan portfolio segment and loan class | The following tables present impaired loans by loan portfolio segment and loan class. 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 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 $74.7 million in performing TDRs. At December 31, 2014 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 48,104 $ 50,787 $ — Home equity and other 1,824 1,850 — 49,928 52,637 — Commercial loans Commercial real estate 25,540 27,205 — Multifamily 508 508 — Construction/land development 5,447 14,532 — Commercial business 1,302 3,782 — 32,797 46,027 — $ 82,725 $ 98,664 $ — With an allowance recorded: Consumer loans Single family $ 29,778 $ 29,891 $ 704 Home equity and other 837 837 157 30,615 30,728 861 Commercial loans Commercial real estate 1,239 1,399 40 Multifamily 2,569 2,747 361 Commercial business 2,076 2,204 444 5,884 6,350 845 $ 36,499 $ 37,078 $ 1,706 Total: Consumer loans Single family (3) $ 77,882 $ 80,678 $ 704 Home equity and other 2,661 2,687 157 80,543 83,365 861 Commercial loans Commercial real estate 26,779 28,604 40 Multifamily 3,077 3,255 361 Construction/land development 5,447 14,532 — Commercial business 3,378 5,986 444 38,681 52,377 845 Total impaired loans $ 119,224 $ 135,742 $ 1,706 (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 $73.6 million in single family performing TDRs. |
Average Recorded Investment of Impaired Loans [Table Text Block] | The following table provides the average recorded investment in impaired loans by portfolio segment and class. Year Ended December 31, (in thousands) 2015 2014 Consumer loans Single family $ 78,824 $ 73,683 Home equity and other 1,922 2,528 80,746 76,211 Commercial loans Commercial real estate 14,416 30,364 Multifamily 4,035 3,112 Construction/land development 4,535 5,723 Commercial business 4,431 3,381 27,417 42,580 $ 108,163 $ 118,791 |
Designated loan grades by loan portfolio segment and loan class | The following tables summarize designated loan grades by loan portfolio segment and loan class. 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 December 31, 2014 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 865,641 $ 361 $ 21,714 $ 8,949 $ 896,665 Home equity and other 133,338 82 652 1,526 135,598 998,979 443 22,366 10,475 1,032,263 Commercial loans Commercial real estate 441,509 67,434 13,066 1,455 523,464 Multifamily 50,495 1,516 3,077 — 55,088 Construction/land development 361,167 2,830 1,261 2,676 367,934 Commercial business 115,665 25,724 3,690 2,370 147,449 968,836 97,504 21,094 6,501 1,093,935 $ 1,967,815 $ 97,947 $ 43,460 $ 16,976 $ 2,126,198 |
Analysis of past due loans by loan portfolio segment and loan class | The following table presents an aging analysis of past due loans by loan portfolio segment and loan class. 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 (2) 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 At December 31, 2014 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or (2) Consumer loans Single family $ 7,832 $ 2,452 $ 43,105 $ 53,389 $ 843,276 $ 896,665 $ 34,737 (2) Home equity and other 371 81 1,526 1,978 133,620 135,598 — 8,203 2,533 44,631 55,367 976,896 1,032,263 34,737 Commercial loans Commercial real estate — — 4,843 4,843 518,621 523,464 — Multifamily — — — — 55,088 55,088 — Construction/land development — 1,261 — 1,261 366,673 367,934 — Commercial business 611 3 1,527 2,141 145,308 147,449 250 611 1,264 6,370 8,245 1,085,690 1,093,935 250 $ 8,814 $ 3,797 $ 51,001 $ 63,612 $ 2,062,586 $ 2,126,198 $ 34,987 (1) Includes $21.5 million of loans at 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. (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. |
Performing and nonaccrual loan balances by loan portfolio segment and loan class | The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. 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 $21.5 million of loans at 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. At December 31, 2014 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 888,297 $ 8,368 $ 896,665 Home equity and other 134,072 1,526 135,598 1,022,369 9,894 1,032,263 Commercial loans Commercial real estate 518,621 4,843 523,464 Multifamily 55,088 — 55,088 Construction/land development 367,934 — 367,934 Commercial business 146,172 1,277 147,449 1,087,815 6,120 1,093,935 $ 2,110,184 $ 16,014 $ 2,126,198 |
TDR balances by loan portfolio segment and loan class | The following tables present information about TDR activity during the periods presented. Year Ended December 31, 2015 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 47 $ 10,167 $ — Home equity and other Interest rate reduction 2 130 — Total consumer Interest rate reduction 49 10,297 — 49 10,297 — Commercial loans Commercial business Interest rate reduction 2 482 — Total commercial Interest rate reduction 2 482 — 2 482 — Total loans Interest rate reduction 51 10,779 — 51 $ 10,779 $ — Year Ended December 31, 2014 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 62 $ 12,012 $ — Payment restructure 10 1,991 — Home equity and other Interest rate reduction 3 430 — Payment restructure 1 58 — Total consumer Interest rate reduction 65 12,442 — Payment restructure 11 2,049 — 76 14,491 — Commercial loans Commercial real estate Interest rate reduction 1 1,181 — Payment restructure 3 4,248 — Commercial business Interest rate reduction 2 117 — Payment restructure 3 1,270 — Forgiveness of principal 2 599 554 Total commercial Interest rate reduction 3 1,298 — Payment restructure 6 5,518 — Forgiveness of principal 2 599 554 11 7,415 554 Total loans Interest rate reduction 68 13,740 — Payment restructure 17 7,567 — Forgiveness of principal 2 599 554 87 $ 21,906 $ 554 December 31, 2013 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 104 $ 22,605 $ — Home equity and other Interest rate reduction 9 571 — Total consumer Interest rate reduction 113 23,176 — 113 23,176 — Total loans Interest rate reduction 113 23,176 — 113 $ 23,176 $ — |
TDR balances which have subsequently re-defaulted | The following tables present loans that were modified as TDRs within the previous 12 months and subsequently re-defaulted during the years ended December 31, 2015 and 2014 , 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. Year Ended December 31, 2015 2014 (dollars in thousands) Number of loan relationships that re-defaulted Recorded Number of loan relationships that re-defaulted Recorded Consumer loans Single family 10 $ 2,270 7 $ 1,010 Home equity and other 1 68 1 190 11 2,338 8 1,200 11 $ 2,338 8 $ 1,200 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | Other real estate owned consisted of the following. At December 31, (in thousands) 2015 2014 Single family $ 302 $ 1,613 Commercial real estate 4,332 2,062 Construction/land development 4,661 7,076 9,295 10,751 Valuation allowance (1,764 ) (1,303 ) $ 7,531 $ 9,448 |
Other Real Estate Owned, Roll Forward [Table Text Block] | Activity in other real estate owned was as follows. Year Ended December 31, (in thousands) 2015 2014 Beginning balance $ 9,448 $ 12,911 Additions 4,448 4,130 Loss provisions (695 ) (69 ) Reductions related to sales (5,670 ) (7,524 ) Ending balance $ 7,531 $ 9,448 |
Other Real Estate, Valuation Allowance Roll Forward [Table Text Block] | Activity in the valuation allowance for other real estate owned was as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 1,303 $ 1,697 $ 14,965 Loss provisions 695 69 603 (Charge-offs), net of recoveries (234 ) (463 ) (13,871 ) Ending balance $ 1,764 $ 1,303 $ 1,697 |
Other Real Estate, Components of Expense [Table Text Block] | The components of the net cost of operation and sale of other real estate owned are as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Maintenance costs $ 453 $ 436 $ 840 Loss provisions 695 69 603 Net gain on sales (447 ) (890 ) (722 ) Gain on transfer — — (119 ) Net operating income (loss) (41 ) (85 ) 1,209 Net cost of operation and sale of other real estate owned $ 660 $ (470 ) $ 1,811 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Premises and equipment consisted of the following. December 31, (in thousands) 2015 2014 Furniture and equipment $ 58,856 $ 59,425 Leasehold improvements 36,602 22,516 Land and buildings 8,767 985 104,225 82,926 Less: accumulated depreciation (40,487 ) (37,675 ) $ 63,738 $ 45,251 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Deposit balances, including stated rates (Table Text Block) | Deposit balances, including stated rates, were as follows. At December 31, (in thousands) 2015 2014 Noninterest-bearing accounts $ 643,028 $ 470,663 NOW accounts, 0.00% to 1.00% at December 31, 2015 and 0.00% to 1.00% at December 31, 2014 408,477 272,390 Statement savings accounts, due on demand, 0.00% to 1.00% at December 31, 2015 and 0.00% to 1.99% at December 31, 2014 292,092 200,638 Money market accounts, due on demand, 0.00% to 1.45% at December 31, 2015 and 0.00% to 1.45% at December 31, 2014 1,155,464 1,007,214 Certificates of deposit, 0.05% to 3.80% at December 31, 2015 and 0.05% to 3.80% at December 31, 2014 732,892 494,525 $ 3,231,953 $ 2,445,430 |
Interest expense on deposits (Table Text Block) | Interest expense on deposits was as follows. Year Ended December 31, (in thousands) 2015 2014 2013 NOW accounts $ 1,773 $ 1,122 $ 924 Statement savings accounts 1,032 929 546 Money market accounts 4,945 4,362 3,899 Certificates of deposit 4,051 3,018 5,047 $ 11,801 $ 9,431 $ 10,416 |
Certificates of deposit outstanding (Table text Block) | Certificates of deposit outstanding mature as follows. (in thousands) At December 31, 2015 Within one year $ 544,855 One to two years 124,420 Two to three years 21,242 Three to four years 28,581 Four to five years 13,794 $ 732,892 |
Federal Home Loan Bank and Ot41
Federal Home Loan Bank and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Federal Home Loan Bank and Other Borrowings [Abstract] | |
Federal Home Loan Bank Advance by Maturity [Table Text Block] | FHLB advances outstanding by contractual maturities were as follows. At December 31, 2015 (in thousands) Advances outstanding Weighted-average interest rate 2016 $ 962,159 0.52 % 2017 10,002 1.31 2018 30,408 2.20 2019 10,000 4.27 2020 and thereafter 5,590 5.31 $ 1,018,159 0.64 % |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The Subordinated Debt Securities are as follows: 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 (1) Call options are exercisable at par. |
Derivatives And Hedging Activ43
Derivatives And Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. 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 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 $14.4 million at December 31, 2015 , 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 December 31, 2014 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 934,986 $ 1,071 $ (5,658 ) Interest rate swaptions 15,000 — — Interest rate lock commitments 392,687 11,939 (6 ) Interest rate swaps 610,150 11,689 (972 ) Total derivatives before netting $ 1,952,823 24,699 (6,636 ) Netting adjustment (1) (5,858 ) 5,858 Carrying value on consolidated statements of financial condition $ 18,841 $ (778 ) (1) Excludes cash collateral of $20.4 million at December 31, 2014 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. |
Fair Value, Concentration of Risk [Table Text Block] | The following tables present gross and net information about derivative instruments. 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 $14.4 million at December 31, 2015 , 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 December 31, 2014 (in thousands) Gross fair value Netting adjustments Carrying value Cash collateral paid (1) Securities pledged Net amount Derivative assets $ 24,699 $ (5,858 ) $ 18,841 $ — $ — $ 18,841 Derivative liabilities $ (6,636 ) $ 5,858 $ (778 ) $ — $ 762 $ (16 ) (1) Excludes cash collateral of $20.4 million at December 31, 2014 , 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. These amounts were not netted against the derivative receivables and payables, because, at an individual counterparty level, the collateral exceeded the fair value exposure at December 31, 2014 . |
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. Year Ended December 31, (in thousands) 2015 2014 2013 Recognized in noninterest income: Net gain on mortgage loan origination and sale activities (1) $ 2,080 $ (17,258 ) $ 12,904 Mortgage servicing income (2) 11,709 39,727 (20,432 ) $ 13,789 $ 22,469 $ (7,528 ) (1) Comprised of 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. |
Mortgage Banking Operations (Ta
Mortgage Banking Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Banking [Abstract] | |
Mortgage Loans on Real Estate, by Loan Disclosure [Table Text Block] | Loans held for sale consisted of the following. At December 31, (in thousands) 2015 2014 Single family $ 632,273 (1) $ 610,350 Multifamily 11,076 10,885 Other 6,814 — Total loans held for sale $ 650,163 $ 621,235 (1) Includes $3.4 million in SBA loans held for sale at December 31, 2015 . Loans sold consisted of the following. Year Ended December 31, (in thousands) 2015 2014 2013 Single family $ 7,038,635 $ 3,979,398 $ 4,733,473 Multifamily 204,744 141,859 104,016 Other 29,313 — — Total loans sold $ 7,272,692 $ 4,121,257 $ 4,837,489 |
Net gain on mortgage loan origination and sale activity (Table Text Block) | Net gain on mortgage loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Year Ended December 31, (in thousands) 2015 2014 2013 Single family: Servicing value and secondary market gains (1) $ 205,513 $ 109,063 $ 128,391 Loan origination and funding fees 22,221 25,572 30,051 Total single family 227,734 134,635 158,442 Multifamily 7,125 4,723 5,306 Other 1,529 4,764 (2) 964 Total net gain on mortgage loan origination and sale activities $ 236,388 $ 144,122 $ 164,712 (1) 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 changes in the Company's repurchase liability for loans that have been sold. (2) Includes $4.6 million in pre-tax gain during 2014 from the sale of loans that were originally held for investment. |
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. At December 31, (in thousands) 2015 2014 Single family U.S. government and agency $ 14,628,596 $ 10,630,864 Other 719,215 585,344 15,347,811 11,216,208 Commercial Multifamily 924,367 752,640 Other 79,513 82,354 1,003,880 834,994 Total loans serviced for others $ 16,351,691 $ 12,051,202 |
Mortgage Repurchase Losses [Table Text Block] | The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses. Year Ended December 31, (in thousands) 2015 2014 Balance, beginning of period $ 1,956 $ 1,260 Additions (1) 2,764 1,430 Realized losses (2) (1,798 ) (734 ) Balance, end of period $ 2,922 $ 1,956 (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. |
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. Year Ended December 31, (in thousands) 2015 2014 2013 Servicing income, net: Servicing fees and other $ 42,197 $ 37,818 $ 34,173 Changes in fair value of single family MSRs due to modeled amortization (1) (34,038 ) (26,112 ) (24,321 ) Amortization of multifamily MSRs (1,992 ) (1,712 ) (1,803 ) 6,167 9,994 8,049 Risk management, single family MSRs: Changes in fair value due to changes in model inputs and/or assumptions (2) 6,555 (15,629 ) $ 29,456 Net gain from derivatives economically hedging MSR 11,709 39,727 (20,432 ) 18,264 24,098 9,024 Mortgage servicing income $ 24,431 $ 34,092 $ 17,073 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. |
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. Year Ended December 31, (rates per annum) (1) 2015 2014 2013 Constant prepayment rate ("CPR") (2) 14.95 % 13.30 % 9.28 % Discount rate (3) 10.29 % 10.50 % 10.25 % (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. |
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. (dollars in thousands) At December 31, 2015 Fair value of single family MSR $ 156,604 Expected weighted-average life (in years) 5.21 Constant prepayment rate (1) 15.30 % Impact on 25 basis points adverse change $ (12,130 ) Impact on 50 basis points adverse change $ (25,352 ) Discount rate 10.50 % Impact on fair value of 100 basis points increase $ (4,939 ) Impact on fair value of 200 basis points increase $ (9,519 ) (1) Represents the expected lifetime average. |
Changes in single family MSRs measured at fair value | The changes in single family MSRs measured at fair value are as follows. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 112,439 $ 153,128 $ 87,396 Additions and amortization: Originations 70,659 43,231 60,576 Purchases 989 19 21 Sale of single family MSRs — (43,248 ) — Changes due to modeled amortization (1) (34,038 ) (26,112 ) (24,321 ) Net additions and amortization 37,610 (26,110 ) 36,276 Changes in fair value due to changes in model inputs and/or assumptions (2) 6,555 (14,579 ) 29,456 Ending balance $ 156,604 $ 112,439 $ 153,128 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. |
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. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 10,885 $ 9,335 $ 8,097 Origination 5,758 3,260 3,027 Amortization (1,992 ) (1,710 ) (1,789 ) Ending balance $ 14,651 $ 10,885 $ 9,335 |
Projected amortization expense for the gross carrying value of multifamily MSRs | Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows. (in thousands) At December 31, 2015 2016 $ 2,208 2017 2,086 2018 1,930 2019 1,823 2020 1,691 2021 and thereafter 4,913 Carrying value of multifamily MSR $ 14,651 The projected amortization expense of multifamily MSRs is an estimate and subject to key assumptions of the underlying valuation model. The amortization expense for future periods was calculated by applying the same quantitative factors, such as actual MSR prepayment experience and discount rates, which were used to determine amortization expense. These factors are inherently subject to significant fluctuations, primarily due to the effect that changes in interest rates may have on expected loan prepayment experience. Accordingly, any projection of MSR amortization in future periods is limited by the conditions that existed at the time the calculations were performed and may not be indicative of actual amortization expense that will be recorded in future periods. |
Commitments, Guarantees, and 45
Commitments, Guarantees, and Contingencies Future Minimum Lease Payments for Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Minimum rental payments for all non-cancelable leases were as follows. (in thousands) At December 31, 2015 2016 $ 19,486 2017 18,987 2018 17,328 2019 14,530 2020 12,071 2021 and thereafter 55,073 $ 137,475 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) consisted of following: Year Ended December 31, (in thousands) 2015 2014 2013 Current (benefit) expense $ (801 ) $ 24,490 $ (21,166 ) Deferred expense (benefit) 15,903 (14,247 ) 32,151 Tax credit investment amortization 486 813 — Total income tax expense $ 15,588 $ 11,056 $ 10,985 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block)] | ncome tax expense differed from amounts computed at the federal income tax statutory rate as follows: Year Ended December 31, (in thousands) 2015 2014 2013 Income taxes at statutory rate $ 19,917 $ 11,660 $ 12,178 Tax-exempt interest (1,307 ) (1,265 ) (1,452 ) State income tax expense net of federal tax benefit 715 221 148 Reversal of deferred tax consequences on historical AFS (1,107 ) — — Valuation allowance — — — Tax credits (903 ) (717 ) (293 ) Low Income Housing Tax Credit Partnerships 658 617 — Change in state rate 722 248 — Bargain purchase gain (2,704 ) — — Other, net (403 ) 292 404 Total income tax expense $ 15,588 $ 11,056 $ 10,985 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and those amounts used for tax return purposes. The tax effect of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities consisted of the following: At December 31, (in thousands) 2015 2014 Deferred tax assets: Provision for loan losses $ 15,843 $ 11,890 Federal and state net operating loss carryforwards 4,979 10,044 Section 382 built-in loss limitation — 5,291 Other real estate owned 656 468 Accrued liabilities 3,524 2,199 Other investments 319 330 Leases 1,976 1,153 Unrealized loss on investment securities available for sale 1,304 — Tax credits 1,178 3,358 Stock options 999 902 Loan valuation 5,752 497 Other, net 2,753 236 39,283 36,368 Valuation allowance — — 39,283 36,368 Deferred tax liabilities: Mortgage servicing rights (48,540 ) (34,030 ) Unrealized gain on investment securities available for sale — (252 ) FHLB dividends (190 ) (4,348 ) Deferred loan fees and costs (2,108 ) (1,943 ) Premises and equipment (5,282 ) (1,865 ) Other intangibles - core deposit intangible (2,829 ) (700 ) Other, net (190 ) (242 ) (59,139 ) (43,380 ) Net deferred tax liability $ (19,856 ) $ (7,012 ) |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, for the years ended December 31, 2015 , 2014 and 2013 is as follows: Year Ended December 31, (in thousands) 2015 2014 2013 Balance, beginning of year $ — $ — $ — Increases related to prior year tax positions 419 — — Decreases related to prior year tax positions — — — Income taxes at statutory rate — — — Settlements — — — Lapse of statute — — — Balance, end of year $ 419 $ — $ — |
Share Based Compensation Plan47
Share Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Plans [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The Company grants nonqualified options to key senior management personnel. A summary of changes in nonqualified stock options granted for the year ended December 31, 2015 is as follows: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (2) (in thousands) Options outstanding at December 31, 2014 601,024 $ 12.16 7.2 years $ 3,329 Granted — — 0.0 years — Cancelled or forfeited (15,136 ) 20.71 7.4 years 16 Exercised (44,971 ) 15.42 6.4 years 285 Options outstanding at December 31, 2015 540,917 11.65 6.2 years 5,443 Options that are exercisable and expected to be exercisable (1) 540,900 11.65 6.2 years 5,443 Options exercisable 540,043 $ 11.63 6.2 years $ 5,443 (1) Adjusted for estimated forfeitures. (2) Intrinsic value is the amount by which fair value of the underlying stock exceeds the exercise price. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of the options granted during 2013 was estimated as of the grant date using a Black-Scholes Merton (“Black-Scholes”) model and the assumptions noted in the following table. There were no options granted during the year ended December 31, 2015 and 2014 . Year Ended December 31, 2013 Weighted-average fair value per share $ 8.78 Expected term of the option 6 years Expected stock price volatility 50.04 % Annual risk-free interest rate 1.18 % Expected annual dividend yield 2.03 % |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | The Company grants restricted shares to key senior management personnel and directors. A summary of the status of restricted shares follows. Number Weighted Average Grant Date Fair Value Restricted shares outstanding at December 31, 2014 118,517 $ 18.26 Granted 107,507 18.41 Cancelled or forfeited (40,179 ) 18.63 Vested (26,636 ) 17.33 Restricted shares outstanding at December 31, 2015 159,209 18.42 Nonvested at December 31, 2015 159,209 $ 18.42 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. 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. 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. Multifamily loans (DUS) 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. 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 Carried at lower of amortized cost or fair value of collateral, less the estimated cost to sell. 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 12 , Mortgage Banking Operations . Level 3 recurring fair value measurement Multifamily MSRs 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. Level 2 recurring fair value measurement Interest rate lock 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. |
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. (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 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 commitments 8 — — 8 Interest rate swaps 4,007 — 4,007 — Total liabilities $ 5,511 $ — $ 5,503 $ 8 (in thousands) Fair Value at December 31, 2014 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 107,280 $ — $ 107,280 $ — Commercial 13,671 — 13,671 — Municipal bonds 122,334 — 122,334 — Collateralized mortgage obligations: Residential 43,166 — 43,166 — Commercial 20,486 — 20,486 — Corporate debt securities 79,400 — 79,400 — U.S. Treasury securities 40,989 — 40,989 — Single family mortgage servicing rights 112,439 — — 112,439 Single family loans held for sale 610,350 — 610,350 — Derivatives Forward sale commitments 1,071 — 1,071 — Interest rate lock commitments 11,939 — — 11,939 Interest rate swaps 11,689 — 11,689 — Total assets $ 1,174,814 $ — $ 1,050,436 $ 124,378 Liabilities: Derivatives Forward sale commitments $ 5,658 $ — $ 5,658 $ — Interest rate lock commitments 6 — — 6 Interest rate swaps 972 — 972 — Total liabilities $ 6,636 $ — $ 6,630 $ 6 |
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. (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% The following information presents significant Level 3 unobservable inputs used to measure fair value of single family loans held for sale where fair value option was elected. (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)% |
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 commitments. Year Ended December 31, (in thousands) 2015 2014 Beginning balance, net $ 11,933 $ 5,972 Total realized/unrealized gains (1) 149,688 118,708 Settlements (143,910 ) (112,747 ) Ending balance, net $ 17,711 $ 11,933 (1) All realized and unrealized gains and losses are recognized in earnings as net gain from mortgage loan origination and sale activities on the consolidated statements of operations. There were net unrealized gains (losses) of $17.7 million and $11.9 million for the years ended December 31, 2015 and 2014 , respectively, recognized on interest rate lock commitments outstanding at December 31, 2015 and 2014 , respectively. |
Fair Value Measurements, Valuation Technique, Unobservable Input and Qualitative Information for the Companu's Assets and Liabilities Classified as Level 3 | The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock commitments. (dollars in thousands) At December 31, 2015 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock commitments, net $ 17,711 Income approach Fall out factor 0.60% 61.16% 15.80% Value of servicing 0.53% 1.71% 0.80% (dollars in thousands) At December 31, 2014 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock commitments, net $ 11,933 Income approach Fall out factor 0.60% 77.9% 21.4% Value of servicing 0.56% 1.94% 0.93% |
Fair Value Measurements on Nonrecurring Basis (Table Text Block) | The following tables present assets that had changes in their recorded fair value during the years ended December 31, 2015 and 2014 and still held at the end of the respective reporting period. Year Ended December 31, 2015 (in thousands) Fair Value of Assets Held at December 31, 2015 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 7,492 $ — $ — $ 7,492 $ 127 Other real estate owned (2) 7,230 — — 7,230 (526 ) Total $ 14,722 $ — $ — $ 14,722 $ (399 ) Year Ended December 31, 2014 (in thousands) Fair Value of Assets Held at December 31, 2014 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 19,021 $ — $ — $ 19,021 $ (207 ) Other real estate owned (2) 6,706 — — 6,706 (41 ) Total $ 25,727 $ — $ — $ 25,727 $ (248 ) (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. |
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. 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 — At December 31, 2014 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 30,502 $ 30,502 $ 30,502 $ — $ — Investment securities held to maturity 28,006 28,537 — 28,537 — Loans held for investment 2,099,129 2,150,672 — — 2,150,672 Loans held for sale – multifamily 10,885 10,855 — 10,855 — Mortgage servicing rights – multifamily 10,885 12,540 — — 12,540 Federal Home Loan Bank stock 33,915 33,915 — 33,915 — Liabilities: Deposits $ 2,445,430 $ 2,445,635 $ — $ 2,445,635 $ — Federal Home Loan Bank advances 597,590 600,599 — 600,599 — Federal funds purchased and securities sold under agreements to repurchase 50,000 50,000 — 50,000 — Long-term debt 61,857 60,235 — 60,235 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of earnings per share | The following table summarizes the calculation of earnings per share. Year Ended December 31, (in thousands, except share and per share data) 2015 2014 2013 Net income $ 41,319 $ 22,259 $ 23,809 Weighted average shares: Basic weighted-average number of common shares outstanding 20,818,045 14,800,689 14,412,059 Dilutive effect of outstanding common stock equivalents (1) 241,156 160,392 386,109 Diluted weighted-average number of common stock outstanding 21,059,201 14,961,081 14,798,168 Earnings per share: Basic earnings per share $ 1.98 $ 1.50 $ 1.65 Diluted earnings per share $ 1.96 $ 1.49 $ 1.61 Dividends per share $ — $ 0.11 $ 0.33 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2015 , 2014 and 2013 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 , 143,400 and 103,674 at December 31, 2015 , 2014 and 2013 , respectively. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Condensed income statement | Financial highlights by operating segment were as follows. Year Ended December 31, 2015 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 28,318 $ 120,020 $ 148,338 Provision for credit losses — 6,100 6,100 Noninterest income 251,870 29,367 281,237 Noninterest expense 243,970 122,598 366,568 Income before income taxes 36,218 20,689 56,907 Income tax expense 12,916 2,672 15,588 Net income $ 23,302 $ 18,017 $ 41,319 Total assets $ 848,445 $ 4,046,050 $ 4,894,495 Year Ended December 31, 2014 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 16,683 $ 81,986 $ 98,669 Provision for credit losses — (1,000 ) (1,000 ) Noninterest income 166,991 18,666 185,657 Noninterest expense 172,199 79,812 252,011 Income before income taxes 11,475 21,840 33,315 Income tax expense 3,964 7,092 11,056 Net income $ 7,511 $ 14,748 $ 22,259 Total assets $ 788,681 $ 2,746,409 $ 3,535,090 Year Ended December 31, 2013 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 15,272 $ 59,172 $ 74,444 Provision for credit losses — 900 900 Noninterest income 175,654 15,091 190,745 Noninterest expense 163,354 66,141 229,495 Income before income taxes 27,572 7,222 34,794 Income tax expense 9,736 1,249 10,985 Net income $ 17,836 $ 5,973 $ 23,809 Total assets $ 489,292 $ 2,576,762 $ 3,066,054 (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. |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. Year Ended December 31, (in thousands) 2015 2014 2013 Beginning balance $ 1,546 $ (11,994 ) $ 9,190 Other comprehensive (loss) income before reclassifications (1,325 ) 15,072 (20,032 ) Amounts reclassified from accumulated other comprehensive income (2,670 ) (1,532 ) (1,152 ) Net current-period other comprehensive (loss) income (3,995 ) 13,540 (21,184 ) Ending balance $ (2,449 ) $ 1,546 $ (11,994 ) |
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). Affected Line Item in the Consolidated Statements of Operations Amount Reclassified from Accumulated Other Comprehensive Income Year Ended December 31, (in thousands) 2015 2014 2013 Gain on sale of investment securities available for sale $ 2,406 $ 2,358 $ 1,772 Income tax (benefit) expense (264 ) 826 620 Total, net of tax $ 2,670 $ 1,532 $ 1,152 |
Parent Company Financial Stat52
Parent Company Financial Statements Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Financial Statements [Abstract] | |
Condensed Balance Sheets, Parent Company [Table Text Block] | Condensed financial information for HomeStreet, Inc. is as follows. Condensed Statements of Financial Condition At December 31, (in thousands) 2015 2014 Assets: Cash and cash equivalents $ 7,777 $ 5,270 Other assets 13,419 7,137 Investment in stock of subsidiaries 510,756 353,992 $ 531,952 $ 366,399 Liabilities: Other liabilities 4,820 2,304 Long-term debt 61,857 61,857 66,677 64,161 Shareholders’ Equity: Preferred stock, no par value — — Common stock, no par value 511 511 Additional paid-in capital 222,328 96,615 Retained earnings 244,885 203,567 Accumulated other comprehensive income (2,449 ) 1,545 465,275 302,238 $ 531,952 $ 366,399 |
Condensed Statements of Income, Parent company [Table Text Block] | Condensed Statements of Operations Year Ended December 31, (in thousands) 2015 2014 2013 Net interest expense $ (1,036 ) $ (1,059 ) $ (2,545 ) Noninterest income 1,686 561 970 Income (loss) before income tax benefit and equity in income of subsidiaries 650 (498 ) (1,575 ) Dividend from HomeStreet Capital to parent 13,181 4,200 19,600 13,831 3,702 18,025 Noninterest expense 7,239 4,664 2,281 Income before income tax benefit 6,592 (962 ) 15,744 Income tax benefit (561 ) (1,827 ) (1,474 ) Income from subsidiaries $ 34,166 $ 21,394 $ 6,591 Net income $ 41,319 $ 22,259 $ 23,809 Other comprehensive (loss) income (3,995 ) 13,540 (21,184 ) Comprehensive income $ 37,324 $ 35,799 $ 2,625 |
Condensed Statements of Cash Flows, Parent company [Table Text Block] | Condensed Statements of Cash Flows Year Ended December 31, (in thousands) 2015 2014 2013 Net cash provided by (used in) operating activities $ 2,654 $ 5,693 $ (483 ) Cash flows from investing activities: Net purchases of and proceeds from investment securities 673 1,000 (5,797 ) Net payments for investments in and advances to subsidiaries (992 ) (732 ) (12,172 ) Net cash (used in) provided by investing activities (319 ) 268 (17,969 ) Cash flows from financing activities: Proceeds from issuance of common stock 177 130 188 Dividends paid (5 ) (1,628 ) — Proceeds from and repayment of advances from subsidiaries — (3,527 ) 30 Net cash provided by (used in) financing activities 172 (5,025 ) 218 Increase (decrease) in cash and cash equivalents 2,507 936 (18,234 ) Cash and cash equivalents at beginning of year 5,270 4,334 22,568 Cash and cash equivalents at end of year $ 7,777 $ 5,270 $ 4,334 |
Unaudited Quarterly Financial53
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Our supplemental quarterly consolidated financial information is as follows. Quarter Ended (in thousands, except share data) Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 Mar. 31, 2015 Dec. 31, 2014 Sept. 30, 2014 June 30, 2014 Mar. 31, 2014 Interest income $ 44,438 $ 43,990 $ 42,440 $ 34,246 $ 30,780 $ 28,478 $ 26,225 $ 25,810 Interest expense 4,698 4,356 4,210 3,512 3,278 3,170 3,078 3,098 Net interest income 39,740 39,634 38,230 30,734 27,502 25,308 23,147 22,712 Provision (reversal of provision) for credit losses 1,900 700 500 3,000 500 — — (1,500 ) Net interest income after provision for credit losses 37,840 38,934 37,730 27,734 27,002 25,308 23,147 24,212 Noninterest income 65,409 67,468 72,987 75,373 51,487 45,813 53,650 34,707 Noninterest expense 92,725 92,026 92,335 89,482 68,791 64,158 62,971 56,091 Income before income tax expense 10,524 14,376 18,382 13,625 9,698 6,963 13,826 2,828 Income tax expense 1,846 4,415 6,006 3,321 4,077 1,988 4,464 527 Net income $ 8,678 $ 9,961 $ 12,376 $ 10,304 $ 5,621 $ 4,975 $ 9,362 $ 2,301 Basic earnings per share $ 0.39 $ 0.45 $ 0.56 $ 0.60 $ 0.38 $ 0.34 $ 0.63 $ 0.16 Diluted earnings per share $ 0.39 $ 0.45 $ 0.56 $ 0.59 $ 0.38 $ 0.33 $ 0.63 $ 0.15 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 2.4 | $ 2.4 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies Investment in WMS Series LLC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Purchase of single family mortgage loans from WMS | $ 616,900 | $ 491,300 | $ 695,700 |
Commitments and Contingencies | |||
Windermere Mortgage Services Series LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Income from equity method investments | $ 2,500 | $ 1,300 | 1,700 |
Equity method investment in WMS | 2,900 | 3,100 | |
Contracted service income (loss) | (960) | (1,205) | $ (951) |
Commitments and Contingencies | 25,000 | ||
Outstanding balance of secured line of credit | 8,600 | 7,100 | |
Highest balance of loans to borrower | $ 13,400 | $ 12,400 |
Business Combinations (Details)
Business Combinations (Details) | Feb. 01, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||
Purchase price of acquisition | $ 124,685,000 | ||||
Business Acquisition, Stock Options | 79,399 | ||||
Business Acquisition, Share Price | $ / shares | $ 17.30 | ||||
Number of shares at acquisition | $ 7,180,005 | ||||
Bargain purchase gain | $ 7,726,000 | $ 0 | $ 0 | ||
Business Acquisition, Share Price | $ / shares | $ 17.53 | ||||
Cash paid | $ 471,000 | ||||
Fair value of common shares issued | 124,214,000 | 124,214,000 | $ 0 | $ 0 | |
Accretion of Discount | 16,600,000 | ||||
Premium of deposits from business combination | 3,960,000 | ||||
Business Combination, FHLB Advances Premium | 855,000 | ||||
Banner bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Bargain purchase gain | $ 381,000 | ||||
Simplicity bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of shares at acquisition | 7,180,005 | ||||
Bargain purchase gain | $ 7,345,000 | ||||
Business Acquisition, Share Price | $ / shares | $ 17.53 | ||||
OCBB acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price of acquisition | $ 55,872,000 | ||||
Business Acquisition, Share Price | $ / shares | $ 0.521 | ||||
Number of shares at acquisition | $ 2,459,486 | ||||
Business Acquisition, Share Price | $ / shares | $ 1.164 |
Business Combinations Purchase
Business Combinations Purchase Price Table (Details) - USD ($) | Feb. 01, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Payments to Acquire Businesses, Gross | $ 471,000 | ||||
Fair value of common shares issued | 124,214,000 | $ 124,214,000 | $ 0 | $ 0 | |
Total purchase price | 124,685,000 | ||||
Cash and Cash Equivalents | 112,667,000 | ||||
Investment securities | 26,845,000 | ||||
Acquired loans | 664,148,000 | ||||
Mortgage servicing rights | 980,000 | ||||
Federal Home Loan Bank stock | 5,520,000 | ||||
Premises and equipment | 2,966,000 | ||||
Bank-owned life insurance | 14,501,000 | ||||
Core deposit intangibles | 7,450,000 | ||||
Accounts receivable and other assets | 15,869,000 | ||||
Total assets acquired | 850,946,000 | ||||
Deposits | 651,202,000 | ||||
FHLB Advances | 65,855,000 | ||||
Accounts payable and accrued expenses | 1,859,000 | ||||
Total liabilities assumed | 718,916,000 | 718,916,000 | 0 | 0 | |
Net assets acquired | 132,030,000 | ||||
Number of shares at acquisition | $ 7,180,005 | ||||
Business Acquisition, Share Price | $ 17.30 | ||||
Business Acquisition, Option Price per Share | $ 17.53 | ||||
Bargain purchase gain | $ (7,726,000) | $ 0 | $ 0 | ||
OCBB acquisition [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Total purchase price | $ 55,872,000 | ||||
Number of shares at acquisition | $ 2,459,486 | ||||
Business Acquisition, Share Price | $ 0.521 | ||||
Business Acquisition, Option Price per Share | $ 1.164 |
Business Combinations Pro Forma
Business Combinations Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Pro Forma Information, Net Interest Income | $ 152,828 | $ 129,975 |
Pro Forma Information, Provision (reversal of provision) for credit losses | 6,100 | (2,150) |
Pro Forma Information, Noninterest Income | 274,652 | 198,489 |
Pro Forma, Noninterest Expense | 358,931 | 293,399 |
Pro Forma Net Income | $ 43,997 | $ 27,621 |
Pro Forma Earnings Per Share, Basic | $ 2 | $ 1.27 |
Pro Forma Earnings Per Share, Diluted | $ 1.98 | $ 1.26 |
Basic weighted average number of shares outstanding | 22,038,157 | 21,714,874 |
Pro Forma Diluted Weighted average number of shares outstanding | 22,230,119 | 21,901,347 |
Business Combinations Acquisiti
Business Combinations Acquisition expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Business Acquisition, labor and related expense | $ 7,669 | $ 23 |
Business combinations, general and administrative costs | 1,256 | 179 |
Business Combinations, legal expenses | 530 | 245 |
Business Combinations, consulting expenses | 5,539 | 388 |
Business Combinations, occupancy expenses | 335 | 4 |
Business Combinations, information services expenses | 481 | 50 |
Business Combination, Acquisition Related Costs | $ 15,810 | $ 889 |
Regulatory Capital Requiremen60
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
HomeStreet Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital | $ 455,101 | $ 319,010 |
Tier 1 leverage capital to average assets, ratio | 9.46% | 9.38% |
Tier 1 leverage capital required for capital adequacy purposes | $ 192,428 | $ 136,058 |
Tier 1 leverage capital required for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 leverage capital required to be categorized as well capitalized | $ 240,536 | $ 170,072 |
Tier 1 leverage capital required to be categorized as well capitalized, ratio | 5.00% | 5.00% |
Common equity risk-based capital | $ 455,101 | |
Common equity risk-based capital to risk weight assets | 13.04% | |
Common equity risk-based capital required for capital adequacy | $ 157,074 | |
Common equity risk-based capital required for capital adequacy, ratio | 4.50% | |
Common equity capital required to be well capitalized | $ 226,885 | |
Common equity risk-based capital required to be well capitalized, ratio | 6.50% | |
Tier 1 risk-based capital | $ 455,101 | $ 319,010 |
Tier 1 risk-based capital, ratio | 13.04% | 13.10% |
Tier 1 risk-based capital required for capital adequacy | $ 209,432 | $ 97,404 |
Tier 1 risk-based capital required for capital adequacy, ratio | 6.00% | 4.00% |
Tier 1 risk-based capital required to be well capitalized | $ 279,243 | $ 146,106 |
Tier 1 risk-based capital required to be well capitalized, ratio | 8.00% | 6.00% |
Total risk-based capital | $ 485,761 | $ 341,534 |
Capital to risk weighted assets | 13.92% | 14.03% |
Total capital required for capital adequacy | $ 279,243 | $ 194,808 |
Total capital required for capital adequacy, ratio | 8.00% | 8.00% |
Total capital required to be well capitalized | $ 349,054 | $ 243,511 |
Total capital required to be well capitalized, ratio | 10.00% | 10.00% |
HomeStreet Inc [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital | $ 480,038 | |
Tier 1 leverage capital to average assets, ratio | 9.95% | |
Tier 1 leverage capital required for capital adequacy purposes | $ 193,025 | |
Tier 1 leverage capital required for capital adequacy purposes, ratio | 4.00% | |
Tier 1 leverage capital required to be categorized as well capitalized | $ 241,281 | |
Tier 1 leverage capital required to be categorized as well capitalized, ratio | 5.00% | |
Common equity risk-based capital | $ 423,005 | |
Common equity risk-based capital to risk weight assets | 10.52% | |
Common equity risk-based capital required for capital adequacy | $ 180,912 | |
Common equity risk-based capital required for capital adequacy, ratio | 4.50% | |
Common equity capital required to be well capitalized | $ 261,317 | |
Common equity risk-based capital required to be well capitalized, ratio | 6.50% | |
Tier 1 risk-based capital | $ 480,038 | |
Tier 1 risk-based capital, ratio | 11.94% | |
Tier 1 risk-based capital required for capital adequacy | $ 241,216 | |
Tier 1 risk-based capital required for capital adequacy, ratio | 6.00% | |
Tier 1 risk-based capital required to be well capitalized | $ 321,621 | |
Tier 1 risk-based capital required to be well capitalized, ratio | 8.00% | |
Total risk-based capital | $ 510,697 | |
Capital to risk weighted assets | 12.70% | |
Total capital required for capital adequacy | $ 321,621 | |
Total capital required for capital adequacy, ratio | 8.00% | |
Total capital required to be well capitalized | $ 402,026 | |
Total capital required to be well capitalized, ratio | 10.00% |
Investment Securities Availab61
Investment Securities Available for Sale (Unrealized Gain/Loss on Investment)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | $ 544,890 | $ 426,617 |
Available-for-sale Securities, Gross unrealized gains | 3,693 | 4,467 |
Available-for-sale Securities, Gross unrealized losses | (7,432) | (3,758) |
Available-for-sale Securities, Fair value | 541,151 | 427,326 |
Residential Mortgage Backed Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | 69,342 | 107,624 |
Available-for-sale Securities, Gross unrealized gains | 19 | 509 |
Available-for-sale Securities, Gross unrealized losses | (1,260) | (853) |
Available-for-sale Securities, Fair value | 68,101 | 107,280 |
Commercial Mortgage Backed Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | 18,142 | 13,030 |
Available-for-sale Securities, Gross unrealized gains | 14 | 641 |
Available-for-sale Securities, Gross unrealized losses | (305) | 0 |
Available-for-sale Securities, Fair value | 17,851 | 13,671 |
Municipal Bonds [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | 168,722 | 119,744 |
Available-for-sale Securities, Gross unrealized gains | 3,460 | 2,847 |
Available-for-sale Securities, Gross unrealized losses | (313) | (257) |
Available-for-sale Securities, Fair value | 171,869 | 122,334 |
Residential [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | 86,167 | 44,254 |
Available-for-sale Securities, Gross unrealized gains | 32 | 161 |
Available-for-sale Securities, Gross unrealized losses | (1,702) | (1,249) |
Available-for-sale Securities, Fair value | 84,497 | 43,166 |
Commercial [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | 80,190 | 20,775 |
Available-for-sale Securities, Gross unrealized gains | 43 | 0 |
Available-for-sale Securities, Gross unrealized losses | (1,100) | (289) |
Available-for-sale Securities, Fair value | 79,133 | 20,486 |
Corporate Debt Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | 81,280 | 80,214 |
Available-for-sale Securities, Gross unrealized gains | 125 | 296 |
Available-for-sale Securities, Gross unrealized losses | (2,669) | (1,110) |
Available-for-sale Securities, Fair value | 78,736 | 79,400 |
US Treasury Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Available-for-sale Debt Securities, Amortized cost | 41,047 | 40,976 |
Available-for-sale Securities, Gross unrealized gains | 0 | 13 |
Available-for-sale Securities, Gross unrealized losses | (83) | 0 |
Available-for-sale Securities, Fair value | $ 40,964 | $ 40,989 |
Investment Securities Availab62
Investment Securities Available for Sale (Continuous Unrealized Loss on Investment)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | $ (3,972) | $ (96) |
Less than 12 months, Fair value , available -for-sale | 263,070 | 20,516 |
12 months or more, Gross unrealized losses, available -for-sale | (3,460) | (3,662) |
12 months or more, Fair value, available -for-sale | 84,739 | 161,864 |
Total, Gross unrealized losses, available -for-sale | (7,432) | (3,758) |
Total, Fair value, available -for-sale | 347,809 | 182,380 |
Residential Mortgage [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | (572) | 0 |
Less than 12 months, Fair value , available -for-sale | 36,477 | 0 |
12 months or more, Gross unrealized losses, available -for-sale | (688) | (853) |
12 months or more, Fair value, available -for-sale | 21,119 | 57,242 |
Total, Gross unrealized losses, available -for-sale | (1,260) | (853) |
Total, Fair value, available -for-sale | 57,596 | 57,242 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | (305) | |
Less than 12 months, Fair value , available -for-sale | 16,072 | |
12 months or more, Gross unrealized losses, available -for-sale | 0 | |
12 months or more, Fair value, available -for-sale | 0 | |
Total, Gross unrealized losses, available -for-sale | (305) | |
Total, Fair value, available -for-sale | 16,072 | |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | (211) | (11) |
Less than 12 months, Fair value , available -for-sale | 21,302 | 2,339 |
12 months or more, Gross unrealized losses, available -for-sale | (101) | (246) |
12 months or more, Fair value, available -for-sale | 5,839 | 17,155 |
Total, Gross unrealized losses, available -for-sale | (312) | (257) |
Total, Fair value, available -for-sale | 27,141 | 19,494 |
Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | (673) | 0 |
Less than 12 months, Fair value , available -for-sale | 50,490 | 0 |
12 months or more, Gross unrealized losses, available -for-sale | (1,029) | (1,249) |
12 months or more, Fair value, available -for-sale | 26,028 | 31,021 |
Total, Gross unrealized losses, available -for-sale | (1,702) | (1,249) |
Total, Fair value, available -for-sale | 76,518 | 31,021 |
Commercial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | (986) | (29) |
Less than 12 months, Fair value , available -for-sale | 60,812 | 5,037 |
12 months or more, Gross unrealized losses, available -for-sale | (115) | (260) |
12 months or more, Fair value, available -for-sale | 4,348 | 15,449 |
Total, Gross unrealized losses, available -for-sale | (1,101) | (289) |
Total, Fair value, available -for-sale | 65,160 | 20,486 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | (1,142) | (56) |
Less than 12 months, Fair value , available -for-sale | 36,953 | 13,140 |
12 months or more, Gross unrealized losses, available -for-sale | (1,527) | (1,054) |
12 months or more, Fair value, available -for-sale | 27,405 | 40,997 |
Total, Gross unrealized losses, available -for-sale | (2,669) | (1,110) |
Total, Fair value, available -for-sale | 64,358 | $ 54,137 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Gross unrealized losses, available -for-sale | (83) | |
Less than 12 months, Fair value , available -for-sale | 40,964 | |
12 months or more, Gross unrealized losses, available -for-sale | 0 | |
12 months or more, Fair value, available -for-sale | 0 | |
Total, Gross unrealized losses, available -for-sale | (83) | |
Total, Fair value, available -for-sale | $ 40,964 |
Investment Securities Availab63
Investment Securities Available for Sale (Weighted Average Yield)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 40,481 | $ 25,998 |
Weighted Average Yield, due within one year, available-for-sale | 0.41% | 0.28% |
Due in one through five years, Contractual maturities, available-for-sale | $ 25,592 | $ 24,595 |
Weighted Average Yield, due in one through five years, available-for-sale | 2.65% | 1.19% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 147,783 | $ 78,677 |
Weighted Average Yield, due in five through ten years, available-for-sale | 2.69% | 3.09% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 327,295 | $ 298,056 |
Weighted Average Yield, due in ten years or more, available-for-sale | 2.83% | 2.92% |
Contractual maturities, Total amount, available-for-sale | $ 541,151 | $ 427,326 |
Weighted average yield contractual maturities, Total, available-for-sale | 2.60% | 2.69% |
Residential Mortgage Backed Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due within one year, available-for-sale | 0.00% | 0.00% |
Due in one through five years, Contractual maturities, available-for-sale | $ 4 | $ 0 |
Weighted Average Yield, due in one through five years, available-for-sale | 0.39% | 0.00% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 3,176 | $ 6,949 |
Weighted Average Yield, due in five through ten years, available-for-sale | 1.63% | 1.72% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 64,921 | $ 100,331 |
Weighted Average Yield, due in ten years or more, available-for-sale | 1.88% | 1.75% |
Contractual maturities, Total amount, available-for-sale | $ 68,101 | $ 107,280 |
Weighted average yield contractual maturities, Total, available-for-sale | 1.87% | 1.75% |
Commercial Mortgage Backed Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due within one year, available-for-sale | 0.00% | 0.00% |
Due in one through five years, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due in one through five years, available-for-sale | 0.00% | 0.00% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 17,851 | $ 0 |
Weighted Average Yield, due in five through ten years, available-for-sale | 2.20% | 0.00% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 0 | $ 13,671 |
Weighted Average Yield, due in ten years or more, available-for-sale | 0.00% | 4.75% |
Contractual maturities, Total amount, available-for-sale | $ 17,851 | $ 13,671 |
Weighted average yield contractual maturities, Total, available-for-sale | 2.20% | 4.75% |
Municipal Bonds [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 510 | $ 0 |
Weighted Average Yield, due within one year, available-for-sale | 2.09% | 0.00% |
Due in one through five years, Contractual maturities, available-for-sale | $ 8,828 | $ 604 |
Weighted Average Yield, due in one through five years, available-for-sale | 3.33% | 4.10% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 31,806 | $ 23,465 |
Weighted Average Yield, due in five through ten years, available-for-sale | 3.16% | 3.55% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 130,725 | $ 98,265 |
Weighted Average Yield, due in ten years or more, available-for-sale | 3.99% | 4.21% |
Contractual maturities, Total amount, available-for-sale | $ 171,869 | $ 122,334 |
Weighted average yield contractual maturities, Total, available-for-sale | 3.79% | 4.09% |
Residential [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due within one year, available-for-sale | 0.00% | 0.00% |
Due in one through five years, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due in one through five years, available-for-sale | 0.00% | 0.00% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 153 | $ 0 |
Weighted Average Yield, due in five through ten years, available-for-sale | 0.92% | 0.00% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 84,344 | $ 43,166 |
Weighted Average Yield, due in ten years or more, available-for-sale | 1.74% | 1.84% |
Contractual maturities, Total amount, available-for-sale | $ 84,497 | $ 43,166 |
Weighted average yield contractual maturities, Total, available-for-sale | 1.74% | 1.84% |
Commercial [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due within one year, available-for-sale | 0.00% | 0.00% |
Due in one through five years, Contractual maturities, available-for-sale | $ 5,354 | $ 0 |
Weighted Average Yield, due in one through five years, available-for-sale | 1.87% | 0.00% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 56,506 | $ 9,776 |
Weighted Average Yield, due in five through ten years, available-for-sale | 2.29% | 1.96% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 17,273 | $ 10,710 |
Weighted Average Yield, due in ten years or more, available-for-sale | 1.87% | 1.99% |
Contractual maturities, Total amount, available-for-sale | $ 79,133 | $ 20,486 |
Weighted average yield contractual maturities, Total, available-for-sale | 2.17% | 1.97% |
Corporate Debt Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due within one year, available-for-sale | 0.00% | 0.00% |
Due in one through five years, Contractual maturities, available-for-sale | $ 10,413 | $ 9,000 |
Weighted Average Yield, due in one through five years, available-for-sale | 2.70% | 2.21% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 38,291 | $ 38,487 |
Weighted Average Yield, due in five through ten years, available-for-sale | 3.20% | 3.35% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 30,032 | $ 31,913 |
Weighted Average Yield, due in ten years or more, available-for-sale | 3.64% | 3.73% |
Contractual maturities, Total amount, available-for-sale | $ 78,736 | $ 79,400 |
Weighted average yield contractual maturities, Total, available-for-sale | 3.31% | 3.37% |
US Treasury Securities [Member] | ||
Mortgage Backed and Collateral Mortgage Obligation | ||
Due within one year, Contractual maturities, available-for-sale | $ 39,971 | $ 25,998 |
Weighted Average Yield, due within one year, available-for-sale | 0.39% | 0.28% |
Due in one through five years, Contractual maturities, available-for-sale | $ 993 | $ 14,991 |
Weighted Average Yield, due in one through five years, available-for-sale | 0.63% | 0.46% |
Due in five through ten years, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due in five through ten years, available-for-sale | 0.00% | 0.00% |
Due in ten years or more, Contractual maturities, available-for-sale | $ 0 | $ 0 |
Weighted Average Yield, due in ten years or more, available-for-sale | 0.00% | 0.00% |
Contractual maturities, Total amount, available-for-sale | $ 40,964 | $ 40,989 |
Weighted average yield contractual maturities, Total, available-for-sale | 0.40% | 0.35% |
Investment Securities Availab64
Investment Securities Available for Sale (Realized Gain/Loss on Investment)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 112,259 | $ 96,154 | $ 127,648 |
Gross gains | 2,571 | 2,560 | 2,089 |
Gross losses | $ (165) | $ (201) | $ (315) |
Investment Securities Availab65
Investment Securities Available for Sale (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Security pledged under repurchase agreement | $ 0 | $ 0 | |
Tax exempt interest income on available-for-sale securities | 3.6 | 3.4 | $ 4 |
Federal Home Loan Bank Advances [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities pledged to secure derivatives in a liability position | 101.3 | 44.3 | |
Derivative Financial Instruments, Liabilities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities pledged to secure derivatives in a liability position | $ 21.4 | $ 33.4 |
Loans and Credit Quality (LHFI
Loans and Credit Quality (LHFI table)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans held for investment | ||||
Loans and Leases Receivable, Gross | $ 3,224,235 | $ 2,126,198 | ||
Net deferred loan fees and discounts | (2,237) | (5,048) | ||
Loans held for investment, net of deferred fees and discounts | 3,221,998 | 2,121,150 | ||
Allowance for losses on loans held for investment | (29,278) | (22,021) | $ (23,908) | |
Loans held for investment | 3,192,720 | 2,099,129 | ||
Residential Mortgage [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | 1,203,180 | [1],[2] | 896,665 | |
Home Equity Line of Credit [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | 256,373 | 135,598 | ||
Consumer Portfolio Segment [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | 1,459,553 | 1,032,263 | ||
Commercial Real Estate [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | 600,703 | 523,464 | ||
Multifamily Residential [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | 426,557 | 55,088 | ||
Construction Loans [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | 583,160 | 367,934 | ||
Commercial Loan [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | 154,262 | 147,449 | ||
Commercial Portfolio Segment [Member] | ||||
Loans held for investment | ||||
Loans and Leases Receivable, Gross | $ 1,764,682 | $ 1,093,935 | ||
[1] | Includes $21.5 million of loans at 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. | |||
[2] | Includes $21.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations |
Loans and Credit Quality Loans
Loans and Credit Quality Loans and Credit Quality (Related Party) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Loans and Leases Receivable, Related Parties | $ 4,511 | $ 5,500 | $ 9,738 |
Loans and Leases Receivable, Related Parties, Additions | 181 | 0 | |
Principal repayments and advances, net | $ (1,170) | $ (4,238) |
Loans and Credit Quality (Allow
Loans and Credit Quality (Allowance Activity)(Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | $ 22,524 | $ 24,089 | $ 22,524 | $ 24,089 | $ 27,751 | ||||||
Provision (reversal of provision) for credit losses | $ 1,900 | $ 700 | $ 500 | 3,000 | $ 500 | $ 0 | $ 0 | (1,500) | 6,100 | (1,000) | 900 |
(Charge-offs), net of recoveries | 2,035 | (565) | (4,562) | ||||||||
Charge-offs | (1,379) | (2,508) | |||||||||
Recoveries | 3,414 | 1,943 | |||||||||
Ending Balance | 30,659 | 22,524 | 30,659 | 22,524 | 24,089 | ||||||
Loans and Leases Receivable, Allowance | 29,278 | 22,021 | 29,278 | 22,021 | 23,908 | ||||||
Credit Risk [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Loss Contingency Accrual, at Carrying Value | 1,381 | 503 | 1,381 | 503 | 181 | ||||||
Residential Mortgage [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | 9,447 | 11,990 | 9,447 | 11,990 | |||||||
Provision (reversal of provision) for credit losses | (844) | (1,775) | |||||||||
Charge-offs | (284) | (907) | |||||||||
Recoveries | 623 | 139 | |||||||||
Ending Balance | 8,942 | 9,447 | 8,942 | 9,447 | 11,990 | ||||||
Home Equity Line of Credit [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | 3,322 | 3,987 | 3,322 | 3,987 | |||||||
Provision (reversal of provision) for credit losses | 1,611 | (278) | |||||||||
Charge-offs | (601) | (953) | |||||||||
Recoveries | 288 | 566 | |||||||||
Ending Balance | 4,620 | 3,322 | 4,620 | 3,322 | 3,987 | ||||||
Consumer Portfolio Segment [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | 12,769 | 15,977 | 12,769 | 15,977 | |||||||
Provision (reversal of provision) for credit losses | 767 | (2,053) | |||||||||
Charge-offs | (885) | (1,860) | |||||||||
Recoveries | 911 | 705 | |||||||||
Ending Balance | 13,562 | 12,769 | 13,562 | 12,769 | 15,977 | ||||||
Commercial Real Estate [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | 3,846 | 4,012 | 3,846 | 4,012 | |||||||
Provision (reversal of provision) for credit losses | 1,017 | (607) | |||||||||
Charge-offs | (16) | (52) | |||||||||
Recoveries | 0 | 493 | |||||||||
Ending Balance | 4,847 | 3,846 | 4,847 | 3,846 | 4,012 | ||||||
Multifamily Residential [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | 673 | 942 | 673 | 942 | |||||||
Provision (reversal of provision) for credit losses | 521 | (269) | |||||||||
Charge-offs | (149) | 0 | |||||||||
Recoveries | 149 | 0 | |||||||||
Ending Balance | 1,194 | 673 | 1,194 | 673 | 942 | ||||||
Construction Loans [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | 3,818 | 1,414 | 3,818 | 1,414 | |||||||
Provision (reversal of provision) for credit losses | 3,260 | 1,888 | |||||||||
Charge-offs | 0 | 0 | |||||||||
Recoveries | 2,193 | 516 | |||||||||
Ending Balance | 9,271 | 3,818 | 9,271 | 3,818 | 1,414 | ||||||
Commercial Loan [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | 1,418 | 1,744 | 1,418 | 1,744 | |||||||
Provision (reversal of provision) for credit losses | 535 | 41 | |||||||||
Charge-offs | (329) | (596) | |||||||||
Recoveries | 161 | 229 | |||||||||
Ending Balance | 1,785 | 1,418 | 1,785 | 1,418 | 1,744 | ||||||
Commercial Portfolio Segment [Member] | |||||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||||||
Beginning Balance | $ 9,755 | $ 8,112 | 9,755 | 8,112 | |||||||
Provision (reversal of provision) for credit losses | 5,333 | 1,053 | |||||||||
Charge-offs | (494) | (648) | |||||||||
Recoveries | 2,503 | 1,238 | |||||||||
Ending Balance | $ 17,097 | $ 9,755 | $ 17,097 | $ 9,755 | $ 8,112 |
Loans and Credit Quality (Loans
Loans and Credit Quality (Loans by impairment methodology)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | $ 30,092 | $ 20,818 | |||
Allowance: individually evaluated for impairment | 567 | 1,706 | |||
Total Allowance | 30,659 | 22,524 | $ 24,089 | $ 27,751 | |
Loans: collectively evaluated for impairment | 3,109,018 | 2,006,974 | |||
Loans: individually evaluated for impairment | 93,673 | 119,224 | |||
Loans and Leases, Amortized Cost, Carrying Value | 3,202,691 | ||||
Fair value of loans held for investment | 21,544 | [1] | 0 | ||
Total loans | 3,224,235 | 2,126,198 | |||
Residential Mortgage [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 8,723 | 8,743 | |||
Allowance: individually evaluated for impairment | 219 | 704 | |||
Total Allowance | 8,942 | 9,447 | 11,990 | ||
Loans: collectively evaluated for impairment | 1,101,891 | 818,783 | |||
Loans: individually evaluated for impairment | 79,745 | 77,882 | |||
Loans and Leases, Amortized Cost, Carrying Value | 1,181,636 | ||||
Total loans | 1,203,180 | [1],[2] | 896,665 | ||
Home Equity Line of Credit [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 4,545 | 3,165 | |||
Allowance: individually evaluated for impairment | 75 | 157 | |||
Total Allowance | 4,620 | 3,322 | 3,987 | ||
Loans: collectively evaluated for impairment | 254,762 | 132,937 | |||
Loans: individually evaluated for impairment | 1,611 | 2,661 | |||
Loans and Leases, Amortized Cost, Carrying Value | 256,373 | ||||
Total loans | 256,373 | 135,598 | |||
Consumer Portfolio Segment [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 13,268 | 11,908 | |||
Allowance: individually evaluated for impairment | 294 | 861 | |||
Total Allowance | 13,562 | 12,769 | 15,977 | ||
Loans: collectively evaluated for impairment | 1,356,653 | 951,720 | |||
Loans: individually evaluated for impairment | 81,356 | 80,543 | |||
Loans and Leases, Amortized Cost, Carrying Value | 1,438,009 | ||||
Total loans | 1,459,553 | 1,032,263 | |||
Commercial Real Estate [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 4,847 | 3,806 | |||
Allowance: individually evaluated for impairment | 0 | 40 | |||
Total Allowance | 4,847 | 3,846 | 4,012 | ||
Loans: collectively evaluated for impairment | 597,571 | 496,685 | |||
Loans: individually evaluated for impairment | 3,132 | 26,779 | |||
Loans and Leases, Amortized Cost, Carrying Value | 600,703 | ||||
Total loans | 600,703 | 523,464 | |||
Multifamily Residential [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 1,194 | 312 | |||
Allowance: individually evaluated for impairment | 0 | 361 | |||
Total Allowance | 1,194 | 673 | 942 | ||
Loans: collectively evaluated for impairment | 423,424 | 52,011 | |||
Loans: individually evaluated for impairment | 3,133 | 3,077 | |||
Loans and Leases, Amortized Cost, Carrying Value | 426,557 | ||||
Total loans | 426,557 | 55,088 | |||
Construction Loans [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 9,271 | 3,818 | |||
Allowance: individually evaluated for impairment | 0 | 0 | |||
Total Allowance | 9,271 | 3,818 | 1,414 | ||
Loans: collectively evaluated for impairment | 579,446 | 362,487 | |||
Loans: individually evaluated for impairment | 3,714 | 5,447 | |||
Loans and Leases, Amortized Cost, Carrying Value | 583,160 | ||||
Total loans | 583,160 | 367,934 | |||
Commercial Business [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 1,512 | 974 | |||
Allowance: individually evaluated for impairment | 273 | 444 | |||
Total Allowance | 1,785 | 1,418 | 1,744 | ||
Loans: collectively evaluated for impairment | 151,924 | 144,071 | |||
Loans: individually evaluated for impairment | 2,338 | 3,378 | |||
Loans and Leases, Amortized Cost, Carrying Value | 154,262 | ||||
Total loans | 154,262 | 147,449 | |||
Commercial Portfolio Segment [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Allowance: collectively evaluated for impairment | 16,824 | 8,910 | |||
Allowance: individually evaluated for impairment | 273 | 845 | |||
Total Allowance | 17,097 | 9,755 | $ 8,112 | ||
Loans: collectively evaluated for impairment | 1,752,365 | 1,055,254 | |||
Loans: individually evaluated for impairment | 12,317 | 38,681 | |||
Loans and Leases, Amortized Cost, Carrying Value | 1,764,682 | ||||
Total loans | 1,764,682 | $ 1,093,935 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Allowance for credit losses and recorded investment in loans by impairment methodology | |||||
Fair value of loans held for investment | $ 21,544 | ||||
[1] | Includes $21.5 million of loans at 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. | ||||
[2] | Includes $21.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations |
Loans and Credit Quality (Impai
Loans and Credit Quality (Impaired loans by loan class)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | $ 90,547 | $ 82,725 | ||
Recorded investment With related allowance recorded | [1] | 3,126 | 36,499 | ||
Total Recorded investment | [1] | 93,673 | 119,224 | ||
Unpaid principal balance With no related allowance recorded | [2] | 94,058 | 98,664 | ||
Unpaid principal balance With related allowance recorded | [2] | 3,293 | 37,078 | ||
Total Unpaid principal balance | [2] | 97,351 | 135,742 | ||
Impaired Financing Receivable, Related Allowance | 567 | 1,706 | |||
Total Average recorded investment | 108,163 | 118,791 | |||
Performing TDRs | 74,700 | 73,600 | |||
Residential Mortgage [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 78,240 | 48,104 | ||
Recorded investment With related allowance recorded | [1] | 1,505 | 29,778 | ||
Total Recorded investment | [1] | 79,745 | [3] | 77,882 | [4] |
Unpaid principal balance With no related allowance recorded | [2] | 80,486 | 50,787 | ||
Unpaid principal balance With related allowance recorded | [2] | 1,618 | 29,891 | ||
Total Unpaid principal balance | [2] | 82,104 | [3] | 80,678 | [4] |
Impaired Financing Receivable, Related Allowance | 219 | 704 | |||
Total Average recorded investment | 78,824 | 73,683 | |||
Home Equity Line of Credit [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 955 | 1,824 | ||
Recorded investment With related allowance recorded | [1] | 656 | 837 | ||
Total Recorded investment | [1] | 1,611 | 2,661 | ||
Unpaid principal balance With no related allowance recorded | [2] | 1,033 | 1,850 | ||
Unpaid principal balance With related allowance recorded | [2] | 656 | 837 | ||
Total Unpaid principal balance | [2] | 1,689 | 2,687 | ||
Impaired Financing Receivable, Related Allowance | 75 | 157 | |||
Total Average recorded investment | 1,922 | 2,528 | |||
Consumer Portfolio Segment [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 79,195 | 49,928 | ||
Recorded investment With related allowance recorded | [1] | 2,161 | 30,615 | ||
Total Recorded investment | [1] | 81,356 | 80,543 | ||
Unpaid principal balance With no related allowance recorded | [2] | 81,519 | 52,637 | ||
Unpaid principal balance With related allowance recorded | [2] | 2,274 | 30,728 | ||
Total Unpaid principal balance | [2] | 83,793 | 83,365 | ||
Impaired Financing Receivable, Related Allowance | 294 | 861 | |||
Total Average recorded investment | 80,746 | 76,211 | |||
Commercial Real Estate [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 3,132 | 25,540 | ||
Recorded investment With related allowance recorded | [1] | 1,239 | |||
Total Recorded investment | [1] | 3,132 | 26,779 | ||
Unpaid principal balance With no related allowance recorded | [2] | 3,421 | 27,205 | ||
Unpaid principal balance With related allowance recorded | [2] | 1,399 | |||
Total Unpaid principal balance | [2] | 3,421 | 28,604 | ||
Impaired Financing Receivable, Related Allowance | 0 | 40 | |||
Total Average recorded investment | 14,416 | 30,364 | |||
Multifamily Residential [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 3,133 | 508 | ||
Recorded investment With related allowance recorded | [1] | 2,569 | |||
Total Recorded investment | [1] | 3,133 | 3,077 | ||
Unpaid principal balance With no related allowance recorded | [2] | 3,429 | 508 | ||
Unpaid principal balance With related allowance recorded | [2] | 2,747 | |||
Total Unpaid principal balance | [2] | 3,429 | 3,255 | ||
Impaired Financing Receivable, Related Allowance | 0 | 361 | |||
Total Average recorded investment | 4,035 | 3,112 | |||
Construction Loans [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 3,714 | 5,447 | ||
Total Recorded investment | [1] | 3,714 | 5,447 | ||
Unpaid principal balance With no related allowance recorded | [2] | 4,214 | 14,532 | ||
Total Unpaid principal balance | [2] | 4,214 | 14,532 | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 | |||
Total Average recorded investment | 4,535 | 5,723 | |||
Commercial Business [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 1,373 | 1,302 | ||
Recorded investment With related allowance recorded | [1] | 965 | 2,076 | ||
Total Recorded investment | [1] | 2,338 | 3,378 | ||
Unpaid principal balance With no related allowance recorded | [2] | 1,475 | 3,782 | ||
Unpaid principal balance With related allowance recorded | [2] | 1,019 | 2,204 | ||
Total Unpaid principal balance | [2] | 2,494 | 5,986 | ||
Impaired Financing Receivable, Related Allowance | 273 | 444 | |||
Total Average recorded investment | 4,431 | 3,381 | |||
Commercial Portfolio Segment [Member] | |||||
Impaired loans by loan portfolio segment and loan class [Abstract] | |||||
Recorded investment With no related allowance recorded | [1] | 11,352 | 32,797 | ||
Recorded investment With related allowance recorded | [1] | 965 | 5,884 | ||
Total Recorded investment | [1] | 12,317 | 38,681 | ||
Unpaid principal balance With no related allowance recorded | [2] | 12,539 | 46,027 | ||
Unpaid principal balance With related allowance recorded | [2] | 1,019 | 6,350 | ||
Total Unpaid principal balance | [2] | 13,558 | 52,377 | ||
Impaired Financing Receivable, Related Allowance | 273 | 845 | |||
Total Average recorded investment | $ 27,417 | $ 42,580 | |||
[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 $74.7 million in performing TDRs. | ||||
[4] | Includes $73.6 million in single family performing TDRs. |
Loans and Credit Quality (Loa71
Loans and Credit Quality (Loans by loan grade)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | $ 3,224,235 | $ 2,126,198 | |
Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 3,033,197 | 1,967,815 | |
Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 139,930 | 97,947 | |
Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 31,779 | 43,460 | |
Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 19,329 | 16,976 | |
Residential Mortgage [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,203,180 | [1],[2] | 896,665 |
Residential Mortgage [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,165,990 | [2] | 865,641 |
Residential Mortgage [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 7,933 | 361 | |
Residential Mortgage [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 16,439 | 21,714 | |
Residential Mortgage [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 12,818 | 8,949 | |
Home Equity Line of Credit [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 256,373 | 135,598 | |
Home Equity Line of Credit [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 253,912 | 133,338 | |
Home Equity Line of Credit [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 381 | 82 | |
Home Equity Line of Credit [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 478 | 652 | |
Home Equity Line of Credit [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,602 | 1,526 | |
Consumer Portfolio Segment [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,459,553 | 1,032,263 | |
Consumer Portfolio Segment [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,419,902 | 998,979 | |
Consumer Portfolio Segment [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 8,314 | 443 | |
Consumer Portfolio Segment [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 16,917 | 22,366 | |
Consumer Portfolio Segment [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 14,420 | 10,475 | |
Commercial Real Estate [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 600,703 | 523,464 | |
Commercial Real Estate [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 535,903 | 441,509 | |
Commercial Real Estate [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 55,058 | 67,434 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 7,067 | 13,066 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 2,675 | 1,455 | |
Multifamily Residential [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 426,557 | 55,088 | |
Multifamily Residential [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 403,604 | 50,495 | |
Multifamily Residential [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 20,738 | 1,516 | |
Multifamily Residential [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,657 | 3,077 | |
Multifamily Residential [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 558 | 0 | |
Construction Loans [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 583,160 | 367,934 | |
Construction Loans [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 552,819 | 361,167 | |
Construction Loans [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 25,520 | 2,830 | |
Construction Loans [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 4,407 | 1,261 | |
Construction Loans [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 414 | 2,676 | |
Commercial Business [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 154,262 | 147,449 | |
Commercial Business [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 120,969 | 115,665 | |
Commercial Business [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 30,300 | 25,724 | |
Commercial Business [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,731 | 3,690 | |
Commercial Business [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,262 | 2,370 | |
Commercial Portfolio Segment [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,764,682 | 1,093,935 | |
Commercial Portfolio Segment [Member] | Pass [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 1,613,295 | 968,836 | |
Commercial Portfolio Segment [Member] | Watch [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 131,616 | 97,504 | |
Commercial Portfolio Segment [Member] | Special Mention [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | 14,862 | 21,094 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | |||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | |||
Total loans | $ 4,909 | $ 6,501 | |
[1] | Includes $21.5 million of loans at 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. | ||
[2] | Includes $21.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations |
Loans and Credit Quality (Aging
Loans and Credit Quality (Aging Analysis)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | $ 66,219 | $ 63,612 | ||
Current | 3,158,016 | 2,062,586 | ||
90-days or more past due and still accruing | [1] | 36,612 | 34,987 | |
Loans and Leases Receivable, Gross | 3,224,235 | 2,126,198 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 8,503 | 8,814 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 3,935 | 3,797 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 53,781 | 51,001 | ||
Residential Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 59,349 | 53,389 | ||
Current | 1,143,831 | [2] | 843,276 | |
90-days or more past due and still accruing | [1] | 36,595 | 34,737 | |
Loans and Leases Receivable, Gross | 1,203,180 | [2],[3] | 896,665 | |
Residential Mortgage [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 7,098 | 7,832 | ||
Residential Mortgage [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 3,537 | 2,452 | ||
Residential Mortgage [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 48,714 | 43,105 | ||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 3,069 | 1,978 | ||
Current | 253,304 | 133,620 | ||
90-days or more past due and still accruing | [1] | 0 | 0 | |
Loans and Leases Receivable, Gross | 256,373 | 135,598 | ||
Home Equity Line of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,095 | 371 | ||
Home Equity Line of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 398 | 81 | ||
Home Equity Line of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,576 | 1,526 | ||
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 62,418 | 55,367 | ||
Current | 1,397,135 | 976,896 | ||
90-days or more past due and still accruing | [1] | 36,595 | 34,737 | |
Loans and Leases Receivable, Gross | 1,459,553 | 1,032,263 | ||
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 8,193 | 8,203 | ||
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 3,935 | 2,533 | ||
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 50,290 | 44,631 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,574 | 4,843 | ||
Current | 598,129 | 518,621 | ||
90-days or more past due and still accruing | [1] | 0 | 0 | |
Loans and Leases Receivable, Gross | 600,703 | 523,464 | ||
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 233 | 0 | ||
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,341 | 4,843 | ||
Multifamily Residential [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 119 | 0 | ||
Current | 426,438 | 55,088 | ||
90-days or more past due and still accruing | [1] | 0 | 0 | |
Loans and Leases Receivable, Gross | 426,557 | 55,088 | ||
Multifamily Residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Multifamily Residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Multifamily Residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 119 | 0 | ||
Construction Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 416 | 1,261 | ||
Current | 582,744 | 366,673 | ||
90-days or more past due and still accruing | [1] | 0 | 0 | |
Loans and Leases Receivable, Gross | 583,160 | 367,934 | ||
Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 77 | 0 | ||
Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 1,261 | ||
Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 339 | 0 | ||
Commercial Business [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 692 | 2,141 | ||
Current | 153,570 | 145,308 | ||
90-days or more past due and still accruing | [1] | 17 | 250 | |
Loans and Leases Receivable, Gross | 154,262 | 147,449 | ||
Commercial Business [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 611 | ||
Commercial Business [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 3 | ||
Commercial Business [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 692 | 1,527 | ||
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 3,801 | 8,245 | ||
Current | 1,760,881 | 1,085,690 | ||
90-days or more past due and still accruing | [1] | 17 | 250 | |
Loans and Leases Receivable, Gross | 1,764,682 | 1,093,935 | ||
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 310 | 611 | ||
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 1,264 | ||
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | $ 3,491 | $ 6,370 | ||
[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 | |||
[2] | Includes $21.5 million of loans at 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. | |||
[3] | Includes $21.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations |
Loans and Credit Quality (Perfo
Loans and Credit Quality (Performing and nonaccrual)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | $ 3,207,067 | $ 2,110,184 | |
Nonaccrual | 17,168 | 16,014 | |
Total loans | 3,224,235 | 2,126,198 | |
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 1,191,061 | [1] | 888,297 |
Nonaccrual | 12,119 | 8,368 | |
Total loans | 1,203,180 | [1],[2] | 896,665 |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 254,797 | 134,072 | |
Nonaccrual | 1,576 | 1,526 | |
Total loans | 256,373 | 135,598 | |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 1,445,858 | 1,022,369 | |
Nonaccrual | 13,695 | 9,894 | |
Total loans | 1,459,553 | 1,032,263 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 598,362 | 518,621 | |
Nonaccrual | 2,341 | 4,843 | |
Total loans | 600,703 | 523,464 | |
Multifamily Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 426,438 | 55,088 | |
Nonaccrual | 119 | 0 | |
Total loans | 426,557 | 55,088 | |
Construction Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 582,821 | 367,934 | |
Nonaccrual | 339 | 0 | |
Total loans | 583,160 | 367,934 | |
Commercial Business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 153,588 | 146,172 | |
Nonaccrual | 674 | 1,277 | |
Total loans | 154,262 | 147,449 | |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Performing | 1,761,209 | 1,087,815 | |
Nonaccrual | 3,473 | 6,120 | |
Total loans | $ 1,764,682 | $ 1,093,935 | |
[1] | Includes $21.5 million of loans at 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. | ||
[2] | 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 |
Loans and Credit Quality (TDRs)
Loans and Credit Quality (TDRs)(Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 51 | 87 | 113 |
Recorded investment - TDR | $ 10,779 | $ 21,906 | $ 23,176 |
Related charge-offs - TDR | $ 0 | $ 554 | $ 0 |
Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 51 | 68 | 113 |
Recorded investment - TDR | $ 10,779 | $ 13,740 | $ 23,176 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 17 | ||
Recorded investment - TDR | $ 7,567 | ||
Related charge-offs - TDR | $ 0 | ||
Forgiveness of Principal [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 2 | ||
Recorded investment - TDR | $ 599 | ||
Related charge-offs - TDR | $ 554 | ||
Residential Mortgage [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 47 | 62 | 104 |
Recorded investment - TDR | $ 10,167 | $ 12,012 | $ 22,605 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Residential Mortgage [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 10 | ||
Recorded investment - TDR | $ 1,991 | ||
Related charge-offs - TDR | $ 0 | ||
Home Equity Line of Credit [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 2 | 3 | 9 |
Recorded investment - TDR | $ 130 | $ 430 | $ 571 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Home Equity Line of Credit [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 1 | ||
Recorded investment - TDR | $ 58 | ||
Related charge-offs - TDR | $ 0 | ||
Consumer loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 49 | 76 | 113 |
Recorded investment - TDR | $ 10,297 | $ 14,491 | $ 23,176 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 49 | 65 | 113 |
Recorded investment - TDR | $ 10,297 | $ 12,442 | $ 23,176 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 11 | ||
Recorded investment - TDR | $ 2,049 | ||
Related charge-offs - TDR | $ 0 | ||
Commercial Real Estate [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 1 | ||
Recorded investment - TDR | $ 1,181 | ||
Related charge-offs - TDR | $ 0 | ||
Commercial Real Estate [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 3 | ||
Recorded investment - TDR | $ 4,248 | ||
Related charge-offs - TDR | $ 0 | ||
Commercial Business [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 2 | 2 | |
Recorded investment - TDR | $ 482 | $ 117 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Commercial Business [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 3 | ||
Recorded investment - TDR | $ 1,270 | ||
Related charge-offs - TDR | $ 0 | ||
Commercial Business [Member] | Forgiveness of Principal [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 2 | ||
Recorded investment - TDR | $ 599 | ||
Related charge-offs - TDR | $ 554 | ||
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 2 | 11 | |
Recorded investment - TDR | $ 482 | $ 7,415 | |
Related charge-offs - TDR | $ 0 | $ 554 | |
Commercial Portfolio Segment [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 2 | 3 | |
Recorded investment - TDR | $ 482 | $ 1,298 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Commercial Portfolio Segment [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 6 | ||
Recorded investment - TDR | $ 5,518 | ||
Related charge-offs - TDR | $ 0 | ||
Commercial Portfolio Segment [Member] | Forgiveness of Principal [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | 2 | ||
Recorded investment - TDR | $ 599 | ||
Related charge-offs - TDR | $ 554 |
Loans and Credit Quality (TDR r
Loans and Credit Quality (TDR re-defaults)(Details) - Modified as TDRs within the previous 12 months $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
TDR balances which have subsequently re-defaulted | ||
Number of loan relationships that re-defaulted | 11 | 8 |
Recorded investment | $ 2,338 | $ 1,200 |
Residential Mortgage [Member] | ||
TDR balances which have subsequently re-defaulted | ||
Number of loan relationships that re-defaulted | 10 | 7 |
Recorded investment | $ 2,270 | $ 1,010 |
Home Equity Line of Credit [Member] | ||
TDR balances which have subsequently re-defaulted | ||
Number of loan relationships that re-defaulted | 1 | 1 |
Recorded investment | $ 68 | $ 190 |
Consumer loans [Member] | ||
TDR balances which have subsequently re-defaulted | ||
Number of loan relationships that re-defaulted | 11 | 8 |
Recorded investment | $ 2,338 | $ 1,200 |
Loans and Credit Quality (Detai
Loans and Credit Quality (Details Textual) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||||
Financing Receivable, Impaired [Line Items] | |||||
Fair value of loans held for investment | $ 21,544 | [1] | $ 0 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [2] | 3,126 | 36,499 | ||
Impaired Financing Receivable, Recorded Investment | [2] | $ 93,673 | 119,224 | ||
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 | $ 74,700 | $ 73,600 | |||
Loans and Credit Quality (Textual) [Abstract] | |||||
Concentration percentage | 10.00% | 10.00% | |||
Loans and Credit Quality (Additional Textual) [Abstract] | |||||
Impaired Loan allowance | $ 567 | $ 1,706 | |||
Federal Home Loan Bank Advances [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loans Pledged as Collateral | 1,730,000 | 1,060,000 | |||
Federal Reserve Bank Advances [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loans Pledged as Collateral | 572,000 | 487,200 | |||
Residential Mortgage [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [2] | 1,505 | 29,778 | ||
Impaired Financing Receivable, Recorded Investment | [2] | 79,745 | [3] | 77,882 | [4] |
Loans and Credit Quality (Additional Textual) [Abstract] | |||||
Impaired Loan allowance | 219 | 704 | |||
Commercial Real Estate [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [2] | 1,239 | |||
Impaired Financing Receivable, Recorded Investment | [2] | 3,132 | 26,779 | ||
Loans and Credit Quality (Additional Textual) [Abstract] | |||||
Impaired Loan allowance | 0 | 40 | |||
Construction Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, Recorded Investment | [2] | 3,714 | 5,447 | ||
Loans and Credit Quality (Additional Textual) [Abstract] | |||||
Impaired Loan allowance | $ 0 | $ 0 | |||
WASHINGTON | Residential Mortgage [Member] | |||||
Loans and Credit Quality (Textual) [Abstract] | |||||
Percentage of Loan Portfolio | 18.00% | 28.00% | |||
WASHINGTON | Commercial Real Estate [Member] | |||||
Loans and Credit Quality (Textual) [Abstract] | |||||
Percentage of Loan Portfolio | 14.70% | 20.70% | |||
WASHINGTON | Construction Loans [Member] | |||||
Loans and Credit Quality (Textual) [Abstract] | |||||
Percentage of Loan Portfolio | 11.30% | 13.70% | |||
CALIFORNIA | Residential Mortgage [Member] | |||||
Loans and Credit Quality (Textual) [Abstract] | |||||
Percentage of Loan Portfolio | 13.60% | ||||
Fair Value, Inputs, Level 3 [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Fair value of loans held for investment | $ 21,544 | ||||
[1] | Includes $21.5 million of loans at 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. | ||||
[2] | Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums. | ||||
[3] | Includes $74.7 million in performing TDRs. | ||||
[4] | Includes $73.6 million in single family performing TDRs. |
Other Real Estate Owned Other R
Other Real Estate Owned Other Real Estate Owned (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate Properties [Line Items] | ||||
Real Estate, Gross | $ 9,295 | $ 10,751 | ||
Valuation allowance | (1,764) | (1,303) | $ (1,697) | $ (14,965) |
Residential Real Estate [Member] | ||||
Real Estate Properties [Line Items] | ||||
Real Estate, Gross | 302 | 1,613 | ||
Commercial Real Estate [Member] | ||||
Real Estate Properties [Line Items] | ||||
Real Estate, Gross | 4,332 | 2,062 | ||
Construction Loans [Member] | ||||
Real Estate Properties [Line Items] | ||||
Real Estate, Gross | $ 4,661 | $ 7,076 |
Other Real Estate Owned Activit
Other Real Estate Owned Activity in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned [Abstract] | |||
Beginning balance | $ 9,448 | $ 12,911 | |
Additions | 4,448 | 4,130 | |
Loss provisions | (695) | (69) | $ (603) |
Reductions related to sales | (5,670) | (7,524) | |
Ending balance | $ 7,531 | $ 9,448 | $ 12,911 |
Other Real Estate Owned Valuati
Other Real Estate Owned Valuation Allowance Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned [Abstract] | |||
Beginning balance | $ 1,303 | $ 1,697 | $ 14,965 |
Loss provisions | 695 | 69 | 603 |
(Charge-offs), net of recoveries | (234) | (463) | (13,871) |
Ending balance | $ 1,764 | $ 1,303 | $ 1,697 |
Other Real Estate Owned Compone
Other Real Estate Owned Components of Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned [Abstract] | |||
Maintenance costs | $ 453 | $ 436 | $ 840 |
Loss provisions | 695 | 69 | 603 |
Gains/losses on other real estate owned | (447) | (890) | (722) |
Gain on transfer | 0 | 0 | (119) |
Net operating income (loss) | (41) | (85) | 1,209 |
Net cost of operation and sale of other real estate owned | $ 660 | $ (470) | $ 1,811 |
Other Real Estate Owned Other81
Other Real Estate Owned Other Real Estate Owned (Textual) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
WASHINGTON | ||
Percentage of real estate assets to portfolio | 97.90% | 88.50% |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premises and Equipment [Abstract] | |||
Furniture and equipment | $ 58,856 | $ 59,425 | |
Leasehold improvements | 36,602 | 22,516 | |
Land and buildings | 8,767 | 985 | |
Property, plant and equipment, Gross | 104,225 | 82,926 | |
Less: accumulated depreciation | (40,487) | (37,675) | |
Property, plant and equipment, Net | 63,738 | 45,251 | |
Depreciation expense | $ 10,900 | $ 7,400 | $ 4,600 |
Deposit Balances (Details)
Deposit Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposit balances, including stated rates | ||
Noninterest bearing accounts | $ 643,028 | $ 470,663 |
NOW accounts | 408,477 | 272,390 |
Statement savings accounts, due on demand | 292,092 | 200,638 |
Money market accounts, due on demand | 1,155,464 | 1,007,214 |
Certificates of deposit | 732,892 | 494,525 |
Deposits, Total | $ 3,231,953 | $ 2,445,430 |
Deposits (Interest expense)(Det
Deposits (Interest expense)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest expense on deposits | |||
NOW accounts | $ 1,773 | $ 1,122 | $ 924 |
Statement savings accounts | 1,032 | 929 | 546 |
Money market accounts | 4,945 | 4,362 | 3,899 |
Certificates of deposit | 4,051 | 3,018 | 5,047 |
Interest expense on deposits, Total | $ 11,801 | $ 9,431 | $ 10,416 |
Deposits (Time deposits)(Detail
Deposits (Time deposits)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Certificates of deposit outstanding | ||
Within one year | $ 544,855 | |
One to two years | 124,420 | |
Two to three years | 21,242 | |
Three to four years | 28,581 | |
Four to five years | 13,794 | |
Total | $ 732,892 | $ 494,525 |
Deposits (Details Textual)
Deposits (Details Textual) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits (Additional Textual) [Abstract] | |||
Public funds included in deposits | $ 2.7 | $ 2.2 | |
Weighted-average interest rate on certificates of deposit | 0.96% | 0.60% | 0.71% |
Aggregate amount of time deposits in denominations of of 100000 | $ 290.1 | $ 188.7 | |
Aggregate amount of time deposits in denominations of 250000 | 81.7 | 30.2 | |
Interest-bearing Domestic Deposit, Brokered | $ 120.3 | $ 176.1 | |
Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Weighted Average Rate, NOW accounts | 1.00% | 1.00% | |
Weighted Average Rate, Statement savings accounts | 1.00% | 1.99% | |
Weighted Average Rate, Money market accounts | 1.45% | 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% |
Federal Home Loan Bank and Ot87
Federal Home Loan Bank and Other Borrowings Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Federal Home Loan Bank Advances by year of Maturity [Abstract] | |||
2,016 | $ 962,159 | ||
2,017 | 10,002 | ||
2,018 | 30,408 | ||
2,019 | 10,000 | ||
2020 and thereafter | 5,590 | ||
Total | $ 1,018,159 | ||
Weighted average interest rate, 2016 | 0.52% | ||
Weighted average interest rate, 2017 | 1.31% | ||
Weighted average interest rate, 2018 | 2.20% | ||
Weighted average interest rate, 2019 | 4.27% | ||
Weighted average interest rate, 2020 and thereafter | 5.31% | ||
Weighted average interest rate | 0.64% | 0.41% | 0.43% |
Federal Home Loan Bank and Ot88
Federal Home Loan Bank and Other Borrowings Federal Home Loan Bank Advances (Textual) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Advances from Federal Home Loan Banks | $ 1,018,159 | $ 597,590 | |
Weighted average interest rate on advances | 0.64% | 0.41% | 0.43% |
Federal Home Loan Bank Stock | $ 44,342 | $ 33,915 | |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 50,000 | |
Federal Home Loan Bank of Des Moines [Member] | |||
Borrowing capacity | 320,406 | ||
Federal Reserve Bank of San Francisco [Member] | |||
Borrowing capacity | 382,104 | ||
Line of credit facility, amount outstanding from FRBSF | $ 0 | $ 0 |
Long Term Debt Long-term Debt (
Long Term Debt Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Long-term Debt | $ 61,857 | $ 61,857 | |
Subordinated Debt [Member] | HomeStreet Statutory Trust Subordinated Debt Securities I [Member] | |||
Date issued | Jun. 30, 2005 | ||
Face Amount | $ 5,155 | ||
Interest rate, Basis Spread on Variable Rate | 0.00% | ||
Maturity date | Jun. 30, 2035 | ||
Call option | [1] | 5 years | |
Subordinated Debt [Member] | HomeStreet Statutory Trust Subordinated Debt Securities II [Member] | |||
Date issued | Sep. 30, 2005 | ||
Face Amount | $ 20,619 | ||
Interest rate, Basis Spread on Variable Rate | 0.00% | ||
Maturity date | Dec. 31, 2035 | ||
Call option | [1] | 5 years | |
Subordinated Debt [Member] | HomeStreet Statutory Trust Subordinated Debt Securities III [Member] | |||
Date issued | Feb. 28, 2006 | ||
Face Amount | $ 20,619 | ||
Interest rate, Basis Spread on Variable Rate | 0.00% | ||
Maturity date | Mar. 30, 2036 | ||
Call option | [1] | 5 years | |
Subordinated Debt [Member] | HomeStreet Statutory Trust Subordinated Debt Securities IV. [Member] | |||
Date issued | Mar. 30, 2007 | ||
Face Amount | $ 15,464 | ||
Interest rate, Basis Spread on Variable Rate | 0.00% | ||
Maturity date | Jun. 30, 2037 | ||
Call option | [1] | 5 years | |
[1] | Call options are exercisable at par. |
Derivatives and Hedging Activ90
Derivatives and Hedging Activities (Fair Value)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 2,772,812 | $ 1,952,823 | ||
Derivatives before netting, Derivative assets | 28,274 | 24,699 | ||
Netting adjustments, Derivative assets | 8,971 | [1] | (5,858) | [2] |
Derivative Assets | 37,245 | 18,841 | ||
Derivatives before netting, Derivative Liability | (5,511) | (6,636) | ||
Netting adjustments, Derivative Liabilities | 5,411 | [1] | 5,858 | [2] |
Derivative Liabilities | (100) | (778) | ||
Forward Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 1,069,102 | 934,986 | ||
Derivatives before netting, Derivative assets | 1,885 | 1,071 | ||
Derivatives before netting, Derivative Liability | (1,496) | (5,658) | ||
Interest Rate Swaption [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 15,000 | |||
Derivatives before netting, Derivative assets | 0 | |||
Derivatives before netting, Derivative Liability | 0 | |||
Interest Rate Lock Commitments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 594,360 | 392,687 | ||
Derivatives before netting, Derivative assets | 17,719 | |||
Derivative Assets | 11,939 | |||
Derivatives before netting, Derivative Liability | (8) | (6) | ||
Interest Rate Swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 1,109,350 | 610,150 | ||
Derivatives before netting, Derivative assets | 8,670 | 11,689 | ||
Derivatives before netting, Derivative Liability | (4,007) | (972) | ||
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Cash collateral | $ 14,400 | $ 20,400 | ||
[1] | Includes cash collateral of $14.4 million at December 31, 2015, 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. | |||
[2] | Excludes cash collateral of $20.4 million at December 31, 2014 as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. |
Derivatives and Hedging Activ91
Derivatives and Hedging Activities Derivatives and Hedge Activities (Master Netting Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |||
Derivative [Line Items] | |||||
Gross fair value, Derivative assets | $ 28,274 | $ 24,699 | |||
Netting adjustments, Derivative assets | 8,971 | [1] | (5,858) | [2] | |
Derivative Assets | 37,245 | 18,841 | |||
Cash collateral paid, Derivative assets | [3] | 0 | |||
Securities pledged, Derivative assets | 0 | 0 | |||
Net amount - Derivative assets | 37,245 | 18,841 | |||
Gross fair value, Derivative Liabilities | (5,511) | (6,636) | |||
Netting adjustments, Derivative Liabilities | (5,411) | [1] | (5,858) | [2] | |
Derivative Liabilities | (100) | (778) | |||
Cash collateral paid, Derivative Liabilities | [3] | 0 | |||
Securities pledged, Derivative liabilities | 5 | 762 | |||
Net amount, Derivative liabilities | (95) | (16) | |||
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | |||||
Derivative [Line Items] | |||||
Cash collateral | $ 14,400 | $ 20,400 | |||
[1] | Includes cash collateral of $14.4 million at December 31, 2015, 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. | ||||
[2] | Excludes cash collateral of $20.4 million at December 31, 2014 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. | ||||
[3] | Excludes cash collateral of $20.4 million at December 31, 2014, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. These amounts were not netted against the derivative receivables and payables, because, at an individual counterparty level, the collateral exceeded the fair value exposure at December 31, 2014. |
Derivatives and Hedging Activ92
Derivatives and Hedging Activities (Gain/loss recognized in income)(Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments gain (loss) recognized in Income | $ 13,789 | $ 22,469 | $ (7,528) | |
Loans [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments gain (loss) recognized in Income | [1] | 2,080 | (17,258) | 12,904 |
Servicing Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments gain (loss) recognized in Income | [2] | $ 11,709 | $ 39,727 | $ (20,432) |
[1] | Comprised of 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 |
Mortgage Banking Operations (Lo
Mortgage Banking Operations (Loans held for sale and sold)(Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Mortgage Loans on Real Estate [Line Items] | ||||
SBA loans | $ 3,400 | |||
Loans held for sale | ||||
Loans held for sale | 650,163 | $ 621,235 | ||
Other | 236,388 | 144,122 | $ 164,712 | |
Loans sold during the periods | ||||
Loans sold during the periods | 7,272,692 | 4,121,257 | 4,837,489 | |
Residential Mortgage [Member] | ||||
Loans held for sale | ||||
Single family, held-for-sale | 632,273 | [1] | 610,350 | |
Loans sold during the periods | ||||
Loans sold during the periods | 7,038,635 | 3,979,398 | 4,733,473 | |
Multifamily Residential [Member] | ||||
Loans held for sale | ||||
Loans held for sale | 11,076 | 10,885 | ||
Loans sold during the periods | ||||
Loans sold during the periods | 204,744 | 141,859 | 104,016 | |
Commercial Mortgage, excluding Multfamily [Member] | ||||
Loans held for sale | ||||
Loans held for sale | 6,814 | 0 | ||
Loans sold during the periods | ||||
Loans sold during the periods | $ 29,313 | $ 0 | $ 0 | |
[1] | Includes $3.4 million in SBA loans held for sale at December 31, 2015. |
Mortgage Banking Operations (Ga
Mortgage Banking Operations (Gain on sale)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Gain on mortgage loan origination and sale activities [Line Items] | |||||
Gain on sale of loans | $ 456 | $ 4,586 | $ 0 | ||
Net gain on mortgage loan origination and sale activities | 236,388 | 144,122 | 164,712 | ||
Single family originations [Member] | |||||
Gain on mortgage loan origination and sale activities [Line Items] | |||||
Servicing value and secondary market gains | [1] | 205,513 | 109,063 | 128,391 | |
Loan origination and funding fees | 22,221 | 25,572 | 30,051 | ||
Net gain on mortgage loan origination and sale activities | 227,734 | 134,635 | 158,442 | ||
Multifamily originations [Member] | |||||
Gain on mortgage loan origination and sale activities [Line Items] | |||||
Net gain on mortgage loan origination and sale activities | 7,125 | 4,723 | 5,306 | ||
Other - commercial mortgages, excluding multfamily [Member] | |||||
Gain on mortgage loan origination and sale activities [Line Items] | |||||
Net gain on mortgage loan origination and sale activities | $ 1,529 | $ 4,764 | [2] | $ 964 | |
[1] | 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 changes in the Company's repurchase liability for loans that have been sold. | ||||
[2] | Includes $4.6 million in pre-tax gain during 2014 from the sale of loans that were originally held for investment. |
Mortgage Banking Operations (95
Mortgage Banking Operations (Loans serviced for others)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans serviced for others | ||
Loans serviced for others | $ 16,351,691 | $ 12,051,202 |
Single Family Residential [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 15,347,811 | 11,216,208 |
Commercial Portfolio Segment [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 1,003,880 | 834,994 |
Agency Securities [Member] | Single Family Residential [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 14,628,596 | 10,630,864 |
Other - single family residential, excluding U.S. Government agency securities [Member] | Single Family Residential [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 719,215 | 585,344 |
Multifamily Residential [Member] | Commercial Portfolio Segment [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 924,367 | 752,640 |
Other - commercial mortgages, excluding multfamily [Member] | Commercial Portfolio Segment [Member] | ||
Loans serviced for others | ||
Loans serviced for others | $ 79,513 | $ 82,354 |
Mortgage Banking Operations Mor
Mortgage Banking Operations Mortgage Repurchase Liability (Details) - Representations and Warranties Reserve for Loan Receivables [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Loss Contingencies [Line Items] | |||
Balance, beginning of period (at Carrying Value) | $ 1,956 | $ 1,260 | |
Additions | [1] | 2,764 | 1,430 |
Realized losses | [2] | (1,798) | (734) |
Balance, end of period | $ 2,922 | $ 1,956 | |
[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. |
Mortgage Banking Operations (Se
Mortgage Banking Operations (Servicing income)(Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Servicing fees and other | $ 42,197 | $ 37,818 | $ 34,173 | |
Changes in fair value of single family MSRs due to modeled amortization | [1] | (34,038) | (26,112) | (24,321) |
Amortization of multifamily MSRs | (1,992) | (1,712) | (1,803) | |
Net Servicing Income | 6,167 | 9,994 | 8,049 | |
Changes in fair value due to changes in model inputs and/or assumptions | [2] | 6,555 | (15,629) | 29,456 |
Net gain (loss) from derivatives economically hedging MSR | 13,789 | 22,469 | (7,528) | |
Mortgage servicing rights, risk management | 18,264 | 24,098 | 9,024 | |
Mortgage servicing income | 24,431 | 34,092 | 17,073 | |
Servicing Contracts [Member] | ||||
Net gain (loss) from derivatives economically hedging MSR | [3] | $ 11,709 | $ 39,727 | $ (20,432) |
[1] | Represents changes due to collection/realization of expected cash flows and curtailments. | |||
[2] | Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. | |||
[3] | Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs |
Mortgage Banking Operations (Ke
Mortgage Banking Operations (Key economic assumptions)(Details) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Rates per annum [Abstract] | ||||
Constant prepayment rate (CPR) | [1],[2] | 14.95% | 13.30% | 9.28% |
Discount rate | [2],[3] | 10.29% | 10.50% | 10.25% |
[1] | Represents the expected lifetime average. | |||
[2] | Weighted average rates for sales during the period for sales of loans with similar characteristics. | |||
[3] | Discount rate is a rate based on market observations. |
Mortgage Banking Operations (99
Mortgage Banking Operations (Sensitivity analysis)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | |||
Fair value of single family MSR | $ 156,604 | $ 112,439 | |
Single Family Residential [Member] | |||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | |||
Fair value of single family MSR | $ 156,604 | ||
Expected weighted-average life (in years) | 5 years 2 months 15 days | ||
Constant prepayment rate | [1] | 15.30% | |
Impact on fair value of 25 basis points decrease | $ (12,130) | ||
Impact on fair value of 50 basis points decrease | $ (25,352) | ||
Discount rate | 10.50% | ||
Impact on fair value of 100 basis points increase | $ (4,939) | ||
Impact on fair value of 200 basis points increase | $ (9,519) | ||
[1] | Represents the expected lifetime average. |
Mortgage Banking Operations (SF
Mortgage Banking Operations (SF MSR roll forward)(Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 112,439 | |||
Origination of mortgage servicing rights | (76,417) | $ (46,492) | $ (63,604) | |
Sale of single family MSRs | (4,325) | (39,004) | 0 | |
Changes in fair value of single family MSRs due to modeled amortization | [1] | (34,038) | (26,112) | (24,321) |
Changes in fair value due to changes in model inputs and/or assumptions | [2] | 6,555 | (15,629) | 29,456 |
Ending balance | 156,604 | 112,439 | ||
Single family mortgage servicing rights [Member] | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 112,439 | 153,128 | 87,396 | |
Origination of mortgage servicing rights | (70,659) | (43,231) | (60,576) | |
Purchases | 989 | 19 | 21 | |
Sale of single family MSRs | 0 | (43,248) | 0 | |
Changes in fair value of single family MSRs due to modeled amortization | [1] | (34,038) | (26,112) | (24,321) |
Net additions and amortization of servicing assets | 37,610 | (26,110) | 36,276 | |
Changes in fair value due to changes in model inputs and/or assumptions | [2] | 6,555 | (14,579) | 29,456 |
Ending balance | $ 156,604 | $ 112,439 | $ 153,128 | |
[1] | Represents changes due to collection/realization of expected cash flows and curtailments. | |||
[2] | Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. |
Mortgage Banking Operations (MF
Mortgage Banking Operations (MF MSR roll forward)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | |||
Beginning balance | $ 10,885 | $ 9,335 | $ 8,097 |
Origination | 5,758 | 3,260 | 3,027 |
Amortization | (1,992) | (1,710) | (1,789) |
Ending balance | $ 14,651 | $ 10,885 | $ 9,335 |
Mortgage Banking Operations (MS
Mortgage Banking Operations (MSR projected amortization)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2,016 | $ 2,208 | |||
2,017 | 2,086 | |||
2,018 | 1,930 | |||
2,019 | 1,823 | |||
2,020 | 1,691 | |||
2021 and thereafter | 4,913 | |||
Carrying value of multifamily MSR | $ 14,651 | $ 10,885 | $ 9,335 | $ 8,097 |
Mortgage Banking Operations (De
Mortgage Banking Operations (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Servicing Advances | $ 9.6 | $ 7.8 |
Multifamily Residential [Member] | ||
Mortgage Banking Operations (Textual) [Abstract] | ||
Weighted average life of company's multifamily MSRs | 9 years 10 months | |
Early Buyout Loans [Member] | ||
Mortgage Banking Operations (Textual) [Abstract] | ||
Loans Receivable, in Ginnie Mae pool | $ 29 | $ 21.2 |
Commitments Guarantees and Cont
Commitments Guarantees and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | |||
Unfunded loan commitments | $ 52,900 | $ 72,000 | |
Rental expense | 20,100 | 15,300 | $ 11,400 |
Loans serviced for others | 16,351,691 | 12,051,202 | |
Representations and Warranties Reserve for Loan Receivables [Member] | |||
Loss Contingencies [Line Items] | |||
Unpaid principal balance of loans sold on a servicing-retained basis | 15,430,000 | 11,300,000 | |
Loss Contingency Accrual, at Carrying Value | 2,922 | 1,956 | 1,260 |
Undisbursed construction loan funds [Member] | |||
Loss Contingencies [Line Items] | |||
Unpaid principal balance of loans sold on a servicing-retained basis | 456,400 | 379,400 | |
Home Equity and Business Banking Credit Lines [Member] | |||
Loss Contingencies [Line Items] | |||
Unpaid principal balance of loans sold on a servicing-retained basis | 216,500 | 149,400 | |
Credit Risk [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, at Carrying Value | 1,381 | 503 | 181 |
Multifamily Residential [Member] | Loss Sharing Relationship [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, at Carrying Value | 3,000 | 2,300 | |
Loans serviced for others | 924,400 | 752,600 | |
Loss Contingency, DUS Loss in Period | $ 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% |
Commitments, Guarantees, and105
Commitments, Guarantees, and Contingencies Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments, due in next twelve months | $ 19,486 |
Future Minimum Payments, due in two years | 18,987 |
Future Minimum Payments, due in three years | 17,328 |
Future Minimum Payments, due in four years | 14,530 |
Future Minimum Payments, due in five years | 12,071 |
Future Minimum Payments, due after five years | 55,073 |
Minimum Payments Due | $ 137,475 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||||||||||
Current (benefit) expense | $ (801) | $ 24,490 | $ (21,166) | ||||||||
Deferred expense (benefit) | 15,903 | (14,247) | 32,151 | ||||||||
Tax credit investment amortization | 486 | 813 | 0 | ||||||||
Income tax expense | $ 1,846 | $ 4,415 | $ 6,006 | $ 3,321 | $ 4,077 | $ 1,988 | $ 4,464 | $ 527 | $ 15,588 | $ 11,056 | $ 10,985 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Income tax at statutory rate | $ 19,917 | $ 11,660 | $ 12,178 | ||||||||
Tax-exempt interest | (1,307) | (1,265) | (1,452) | ||||||||
State income tax expense net of federal tax benefit | 715 | 221 | 148 | ||||||||
Reversal of deferred tax consequences on historical AFS | (1,107) | 0 | 0 | ||||||||
Valuation allowance | 0 | 0 | 0 | ||||||||
Tax credits | (903) | (717) | (293) | ||||||||
Low income housing tax credit partnerships | 658 | 617 | 0 | ||||||||
Change in state tax rate | 722 | 248 | 0 | ||||||||
Bargain purchase gain | (2,704) | 0 | 0 | ||||||||
Other, net | (403) | 292 | 404 | ||||||||
Income tax expense | $ 1,846 | $ 4,415 | $ 6,006 | $ 3,321 | $ 4,077 | $ 1,988 | $ 4,464 | $ 527 | $ 15,588 | $ 11,056 | $ 10,985 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets [Abstract] | ||
Provision for loan losses | $ 15,843 | $ 11,890 |
Federal and state net operating loss carryforwards | 4,979 | 10,044 |
Section 382 built-In loss limitation | 0 | 5,291 |
Other real estate owned | 656 | 468 |
Accrued liabilities | 3,524 | 2,199 |
Other investments | 319 | 330 |
Leases | 1,976 | 1,153 |
Unrealized loss on investment securities available for sale | 1,304 | 0 |
Tax credits | 1,178 | 3,358 |
Stock options | 999 | 902 |
Loan valuation | 5,752 | 497 |
Other, net | 2,753 | 236 |
Deferred tax assets, gross | 39,283 | 36,368 |
Valuation allowance | 0 | 0 |
Deferred tax assets, total | 39,283 | 36,368 |
Components of Deferred Tax Liabilities [Abstract] | ||
Mortgage servicing rights | (48,540) | (34,030) |
Unrealized gain on investment securities available for sale | 0 | (252) |
Federal Home Loan Bank Dividends | (190) | (4,348) |
Deferred loan fees and costs | (2,108) | (1,943) |
Premises and equipment | (5,282) | (1,865) |
Other intangibles - core deposit intangible | (2,829) | (700) |
Other, net | (190) | (242) |
Deferred tax liability, gross | (59,139) | (43,380) |
Net deferred tax liability | $ (19,856) | $ (7,012) |
Income Taxes Change in unrecogn
Income Taxes Change in unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance, beginning of year | $ 0 | $ 0 | $ 0 |
Increases related to prior year tax positions | 419 | 0 | 0 |
Decreases related to prior year tax positions | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapse of statute | 0 | 0 | 0 |
Balance, end of year | $ 419 | $ 0 | $ 0 |
Income Taxes Income Tax (Texual
Income Taxes Income Tax (Texual (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 1,200 | |||
Tax basis in unrecorded bad debts with no liability recorded | 12,700 | $ 12,700 | ||
Potential interest on unrecognized tax benefit | 19 | |||
Unrecognized tax benefit including potential interest | 438 | |||
Unrecognized tax benefits | 419 | $ 0 | $ 0 | $ 0 |
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal net operating loss carryforwards | 13,900 | |||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefitt | 4,400 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal net operating loss carryforwards | $ 1,700 | |||
Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryfoward, expiration date | 2,029 | |||
Minimum [Member] | State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryfoward, expiration date | 2,016 | |||
Maximum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryfoward, expiration date | 2,033 | |||
Maximum [Member] | State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryfoward, expiration date | 2,030 |
401(k) Savings Plan (Details)
401(k) Savings Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
401(k) Savings Plan [Abstract] | |||
Defined contribution plan automatic enrollment percent | 3.00% | ||
Defined contribution plan employer fifty percent matching contribution percent | 2.00% | ||
Employer Contribution Amount | $ 6.1 | $ 4.5 | $ 3.7 |
Share Based Compensation Pla112
Share Based Compensation Plans Compensation Related Cost, Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options outstanding, beginning balance, Number of stock options | 601,024 | ||
Granted, Number of stock options | 0 | ||
Cancelled or forfeited | (15,136) | ||
Options exercised | (44,971) | ||
Options outstanding, ending balance, Number | 540,917 | 601,024 | |
Options that are exercisable and expected to be exercisable | [1] | 540,900 | |
Options exercisable, number | 540,043 | ||
Weighted Average Exercise Price, beginning balance | $ 12.16 | ||
Weighted Average Exercise Price, Granted | 0 | ||
Weighted Average Exercise Price, Cancelled or forfeited | 20.71 | ||
Weighted Average Exercise Price, ending balance | 11.65 | $ 12.16 | |
Weighted Average Exercise Price, options exercisable or expected to be exercisable | [1] | 11.65 | |
Weighted Average Exercise Price, options exercisable | $ 11.63 | ||
Weighted average remaining contractual term of options outstanding, beginning balance | 6 years 2 months 9 days | 7 years 2 months | |
Weighted average remaining contractual term of options granted | 0 days | ||
Weighted Average Remaining Contractual Term, Options Canceled or forfeited | 7 years 4 months 9 days | ||
Weighted average remaining contractual term of options exercised | 6 years 4 months 9 days | ||
Weighted average remaining contractual term, options exercisable and expected to be exercisable | [1] | 6 years 2 months 5 days | |
Weighted average remaining contractual term, options exercisable | 6 years 2 months 13 days | ||
Aggregate intrinsic value, options outstanding, beginning balance | [2] | $ 3,329 | |
Aggregate intrinsic value, options outstanding, ending balance | [2] | 5,443 | $ 3,329 |
Aggregate intrinsic value, granted | [2] | 0 | |
Aggregate intrinsic value, cancelled or forfeited | [2] | 16 | |
Aggregate intrinsic value, exercised | [2] | 285 | |
Aggregate intrinsic value, options that are exercisable and expected to be exercisable | [1],[2] | $ 5,443 | |
Weighted Average Exercise Price, Exercised | $ 15.42 | ||
Aggregate intrinsic value, options exercisable | [2] | $ 5,443 | |
[1] | Adjusted for estimated forfeitures. | ||
[2] | Intrinsic value is the amount by which fair value of the underlying stock exceeds the exercise price. |
Share Based Compensation Pla113
Share Based Compensation Plans Share Based Payment Award (Details) | 12 Months Ended |
Dec. 31, 2013$ / shares | |
Share Based Payment Award [Abstract] | |
Weighted-average fair value per share | $ 8.78 |
Expected term of the option | 6 years |
Expected stock price volatility | 50.04% |
Annual risk-free interest rate | 1.18% |
Expected annual dividend yield | 2.03% |
Share Based Compensation Pla114
Share Based Compensation Plans Share Based Compensation Plans - Restricted Shares (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Restricted shares granted [Abstract] | |
Restricted shares outstanding, Number of shares at December 31, 2014 | shares | 118,517 |
Granted, Number of shares | shares | 107,507 |
Cancelled or forfeited, Number of shares | shares | (40,179) |
Vested, Number of shares | shares | (26,636) |
Restricted shares outstanding, Number of shares at December 31, 2015 | shares | 159,209 |
Nonvested, Number of shares at December 31, 2015 | shares | 118,517 |
Restricted shares outstanding, Weighted Average Grant Date Fair Value at December 31, 2014 | $ / shares | $ 18.26 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 18.41 |
Cancelled or forfeited, Weighted Average Grant Date Fair Value | $ / shares | 18.63 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 17.33 |
Restricted shares outstanding, Weighted Average Grant Date Fair Value at December 31, 2015 | $ / shares | 18.42 |
Nonvested, Weighted Average Grant Date Fair Value at December 31, 2015 | $ / shares | $ 18.26 |
Share Based Compensation Pla115
Share Based Compensation Plans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 1,100 | $ 1,500 | $ 1,100 |
Maximum number of shares of common stock available for grant under the 2010 EIP | 900,000 | ||
Numbers, exercised | 44,971 | ||
Cash received on exercise of stock option | $ 693 | ||
Unrecognized compensation costs related to stock options | $ 2 | ||
Exceed percentage of grand date fair value, one | 25.00% | ||
Exceed percentage of grand date fair value, two | 40.00% | ||
Exceed percentage of grand date fair value, three | 50.00% | ||
Nonqualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs expected to be recognized over the remaining weighted-average service period | 4 months | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs expected to be recognized over the remaining weighted-average service period | 1 year 10 months 15 days | ||
Unrecognized compensation cost related to nonvested restricted shares | $ 1,832 |
Fair Value Measurement (FV hier
Fair Value Measurement (FV hierarchy - recurring and non-recurring)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets: | |||
Investment securities available for sale | $ 541,151 | $ 427,326 | |
Single family mortgage servicing rights | 156,604 | 112,439 | |
Fair value of loans held for sale | 632,273 | 610,350 | |
Loans held for investment | 21,544 | [1] | 0 |
Derivatives | 37,245 | 18,841 | |
Total assets | 1,379,845 | 1,174,814 | |
Liabilities: | |||
Derivatives | 100 | 778 | |
Total Liabilities | 5,511 | 6,636 | |
Residential Mortgage Backed Securities [Member] | |||
Assets: | |||
Investment securities available for sale | 68,101 | 107,280 | |
Commercial Mortgage Backed Securities [Member] | |||
Assets: | |||
Investment securities available for sale | 17,851 | 13,671 | |
Municipal Bonds [Member] | |||
Assets: | |||
Investment securities available for sale | 171,869 | 122,334 | |
Collateralized Mortgage Obligations Residential [Member] | |||
Assets: | |||
Investment securities available for sale | 84,497 | 43,166 | |
Collateralized Mortgage Obligations Commercial [Member] | |||
Assets: | |||
Investment securities available for sale | 79,133 | 20,486 | |
Corporate Debt Securities [Member] | |||
Assets: | |||
Investment securities available for sale | 78,736 | 79,400 | |
US Treasury securities [Member] | |||
Assets: | |||
Investment securities available for sale | 40,964 | 40,989 | |
Level 1 [Member] | |||
Assets: | |||
Single family mortgage servicing rights | 0 | 0 | |
Fair value of loans held for sale | 0 | 0 | |
Loans held for investment | 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 | 582,951 | 610,350 | |
Loans held for investment | 0 | ||
Total assets | 1,134,656 | 1,050,436 | |
Liabilities: | |||
Total Liabilities | 5,503 | 6,630 | |
Level 2 [Member] | Residential Mortgage Backed Securities [Member] | |||
Assets: | |||
Investment securities available for sale | 68,101 | 107,280 | |
Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | |||
Assets: | |||
Investment securities available for sale | 17,851 | 13,671 | |
Level 2 [Member] | Municipal Bonds [Member] | |||
Assets: | |||
Investment securities available for sale | 171,869 | 122,334 | |
Level 2 [Member] | Collateralized Mortgage Obligations Residential [Member] | |||
Assets: | |||
Investment securities available for sale | 84,497 | 43,166 | |
Level 2 [Member] | Collateralized Mortgage Obligations Commercial [Member] | |||
Assets: | |||
Investment securities available for sale | 79,133 | 20,486 | |
Level 2 [Member] | Corporate Debt Securities [Member] | |||
Assets: | |||
Investment securities available for sale | 78,736 | 79,400 | |
Level 2 [Member] | US Treasury securities [Member] | |||
Assets: | |||
Investment securities available for sale | 40,964 | 40,989 | |
Level 3 [Member] | |||
Assets: | |||
Single family mortgage servicing rights | 156,604 | 112,439 | |
Fair value of loans held for sale | 49,322 | 0 | |
Loans held for investment | 21,544 | ||
Total assets | 245,189 | 124,378 | |
Liabilities: | |||
Total Liabilities | 8 | 6 | |
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: | |||
Derivatives | 1,884 | 1,071 | |
Liabilities: | |||
Derivatives | 1,496 | 5,658 | |
Forward Contracts [Member] | Level 1 [Member] | |||
Assets: | |||
Derivatives | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Forward Contracts [Member] | Level 2 [Member] | |||
Assets: | |||
Derivatives | 1,884 | 1,071 | |
Liabilities: | |||
Derivatives | 1,496 | 5,658 | |
Forward Contracts [Member] | Level 3 [Member] | |||
Assets: | |||
Derivatives | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Interest Rate Lock Commitments [Member] | |||
Assets: | |||
Derivatives | 17,719 | 11,939 | |
Liabilities: | |||
Derivatives | 8 | 6 | |
Interest Rate Lock Commitments [Member] | Level 1 [Member] | |||
Assets: | |||
Derivatives | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Interest Rate Lock Commitments [Member] | Level 2 [Member] | |||
Assets: | |||
Derivatives | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Interest Rate Lock Commitments [Member] | Level 3 [Member] | |||
Assets: | |||
Derivatives | 17,719 | 11,939 | |
Liabilities: | |||
Derivatives | 8 | 6 | |
Interest Rate Swap [Member] | |||
Assets: | |||
Derivatives | 8,670 | 11,689 | |
Liabilities: | |||
Derivatives | 4,007 | 972 | |
Interest Rate Swap [Member] | Level 1 [Member] | |||
Assets: | |||
Derivatives | 0 | 0 | |
Liabilities: | |||
Derivatives | 0 | 0 | |
Interest Rate Swap [Member] | Level 2 [Member] | |||
Assets: | |||
Derivatives | 8,670 | 11,689 | |
Liabilities: | |||
Derivatives | 4,007 | 972 | |
Interest Rate Swap [Member] | Level 3 [Member] | |||
Assets: | |||
Derivatives | 0 | 0 | |
Liabilities: | |||
Derivatives | $ 0 | $ 0 | |
[1] | Includes $21.5 million of loans at December 31, 2015 where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value, Assets and Liabilities Measured on Recurring Basis, Level 3 Reconciliation(Details) - Interest Rate Lock Commitments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance, net | $ 11,933 | $ 5,972 | |
Total realized/unrealized gains, interest rate lock commitments | [1] | 149,688 | 118,708 |
Settlements, interest rate lock commitments | (143,910) | (112,747) | |
Ending balance, net | 17,711 | 11,933 | |
Net unrealized gains recognized on outstanding nterest rate lock commitments | $ 17,711 | $ 11,933 | |
[1] | All realized and unrealized gains and losses are recognized in earnings as net gain from mortgage loan origination and sale activities on the consolidated statements of operations. There were net unrealized gains (losses) of $17.7 million and $11.9 million for the years ended December 31, 2015 and 2014, respectively, recognized on interest rate lock commitments outstanding at December 31, 2015 and 2014, respectively |
Fair Value Measurement Fair 118
Fair Value Measurement Fair Value Measurement (Quantitative Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair value of loans held for investment | $ 21,544 | [1] | $ 0 | |
Loans held for sale, fair value | $ 632,273 | 610,350 | ||
Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Comparability adjustment | (0.43%) | |||
Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Comparability adjustment | (0.06%) | |||
Weighted Average [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Comparability adjustment | (0.27%) | |||
Loans held for investment [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Implied spread | 3.26% | |||
Loans held for investment [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Implied spread | 4.35% | |||
Loans held for investment [Member] | Weighted Average [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Implied spread | 4.01% | |||
Loans held for sale [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Implied spread | 2.68% | |||
Loans held for sale [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Implied spread | 7.62% | |||
Loans held for sale [Member] | Weighted Average [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Implied spread | 3.91% | |||
Interest Rate Lock Commitments [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Interest rate lock commitments, net | $ 17,711 | $ 11,933 | $ 5,972 | |
Interest Rate Lock Commitments [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fall out factor | 0.60% | 0.60% | ||
Value of servicing | 0.53% | 0.56% | ||
Interest Rate Lock Commitments [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fall out factor | 61.16% | 77.90% | ||
Value of servicing | 1.71% | 1.94% | ||
Interest Rate Lock Commitments [Member] | Weighted Average [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fall out factor | 15.80% | 21.40% | ||
Value of servicing | 0.80% | 0.93% | ||
[1] | Includes $21.5 million of loans at December 31, 2015 where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Fair Value Measurement (FV Unob
Fair Value Measurement (FV Unobservable inputs - nonrecurring basis)(Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | ||||
Gains/losses on loans held for investment | $ (2,000) | $ 0 | $ 0 | |
Gains/losses on other real estate owned | 447 | 890 | $ 722 | |
Fair Value, Measurements, Nonrecurring [Member] | ||||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | ||||
Loans held for investment | [1] | 7,492 | 19,021 | |
Other real estate owned | [2] | 7,230 | 6,706 | |
Fair value of assets held during the period | 14,722 | 25,727 | ||
Gains/losses on loans held for investment | [1] | 127 | (207) | |
Gains/losses on other real estate owned | [2] | (526) | (41) | |
Total gains/(losses) | (399) | (248) | ||
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ||||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | ||||
Loans held for investment | [1] | 0 | 0 | |
Other real estate owned | [2] | 0 | 0 | |
Fair value of assets held during the period | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | ||||
Loans held for investment | [1] | 0 | 0 | |
Other real estate owned | [2] | 0 | 0 | |
Fair value of assets held during the period | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||||
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | ||||
Loans held for investment | [1] | 7,492 | 19,021 | |
Other real estate owned | [2] | 7,230 | 6,706 | |
Fair value of assets held during the period | $ 14,722 | $ 25,727 | ||
[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 |
Fair Value Measurement (FV of f
Fair Value Measurement (FV of financial instruments)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets: | |||||
Fair value of loans held for investment | $ 21,544 | [1] | $ 0 | ||
Loans held for sale, fair value | 632,273 | 610,350 | |||
Mortgage servicing rights - multifamily | 14,651 | 10,885 | $ 9,335 | $ 8,097 | |
Carrying value [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 32,684 | 30,502 | |||
Investment securities held to maturity | 31,013 | 28,006 | |||
Fair value of loans held for investment | 3,171,176 | 2,099,129 | |||
Loans held for sale - transferred from held for investment | 6,814 | ||||
Federal Home Loan Bank Stock | 44,342 | 33,915 | |||
Liabilities: | |||||
Deposits | 3,231,953 | 2,445,430 | |||
Federal Home Loan Bank advances | 1,018,159 | 597,590 | |||
Federal funds purchased and securities sold under agreements to repurchase | 50,000 | ||||
Long-term debt | 61,857 | 61,857 | |||
Fair value [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 32,684 | 30,502 | |||
Investment securities held to maturity | 31,387 | 28,537 | |||
Fair value of loans held for investment | 3,255,740 | 2,150,672 | |||
Loans held for sale - transferred from held for investment | 6,814 | ||||
Federal Home Loan Bank Stock | 44,342 | 33,915 | |||
Liabilities: | |||||
Deposits | 3,229,670 | 2,445,635 | |||
Federal Home Loan Bank advances | 1,021,344 | 600,599 | |||
Federal funds purchased and securities sold under agreements to repurchase | 50,000 | ||||
Long-term debt | 60,239 | 60,235 | |||
Level 1 [Member] | |||||
Assets: | |||||
Fair value of loans held for investment | 0 | ||||
Loans held for sale, fair value | 0 | 0 | |||
Level 1 [Member] | Fair value [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 32,684 | 30,502 | |||
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 | ||||
Federal Home Loan Bank Stock | 0 | 0 | |||
Liabilities: | |||||
Deposits | 0 | 0 | |||
Federal Home Loan Bank advances | 0 | 0 | |||
Federal funds purchased and securities sold under agreements to repurchase | 0 | ||||
Long-term debt | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | |||||
Assets: | |||||
Fair value of loans held for investment | 0 | ||||
Loans held for sale, fair value | 582,951 | 610,350 | |||
Fair Value, Inputs, Level 2 [Member] | Fair value [Member] | |||||
Assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Investment securities held to maturity | 31,387 | 28,537 | |||
Fair value of loans held for investment | 0 | 0 | |||
Loans held for sale - transferred from held for investment | 0 | ||||
Federal Home Loan Bank Stock | 44,342 | 33,915 | |||
Liabilities: | |||||
Deposits | 3,229,670 | 2,445,635 | |||
Federal Home Loan Bank advances | 1,021,344 | 600,599 | |||
Federal funds purchased and securities sold under agreements to repurchase | 50,000 | ||||
Long-term debt | 60,239 | 60,235 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Assets: | |||||
Fair value of loans held for investment | 21,544 | ||||
Loans held for sale, fair value | 49,322 | 0 | |||
Fair Value, Inputs, 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 | 3,255,740 | 2,150,672 | |||
Loans held for sale - transferred from held for investment | 6,814 | ||||
Federal Home Loan Bank Stock | 0 | 0 | |||
Liabilities: | |||||
Deposits | 0 | 0 | |||
Federal Home Loan Bank advances | 0 | 0 | |||
Federal funds purchased and securities sold under agreements to repurchase | 0 | ||||
Long-term debt | 0 | 0 | |||
Multifamily Residential [Member] | Carrying value [Member] | |||||
Assets: | |||||
Loans held for sale, fair value | 11,076 | 10,885 | |||
Mortgage servicing rights - multifamily | 14,651 | 10,885 | |||
Multifamily Residential [Member] | Fair value [Member] | |||||
Assets: | |||||
Loans held for sale, fair value | 11,076 | 10,855 | |||
Mortgage servicing rights - multifamily | 16,412 | 12,540 | |||
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] | Fair Value, Inputs, Level 2 [Member] | Fair value [Member] | |||||
Assets: | |||||
Loans held for sale, fair value | 11,076 | 10,855 | |||
Mortgage servicing rights - multifamily | 0 | 0 | |||
Multifamily Residential [Member] | Fair Value, Inputs, Level 3 [Member] | Fair value [Member] | |||||
Assets: | |||||
Loans held for sale, fair value | 0 | 0 | |||
Mortgage servicing rights - multifamily | $ 16,412 | $ 12,540 | |||
[1] | Includes $21.5 million of loans at December 31, 2015 where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Fair Value Measurement (Details
Fair Value Measurement (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 | |
Fair value of loans held for investment | 21,544 | [1] | 0 |
Credit Risk [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred fees plus related allowance for credit losses | $ 1,800 | $ 3,400 | |
Loans Receivable [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of stated value | 0.00% | 10.00% | |
Loans Receivable [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of stated value | 100.00% | 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 | 36.30% | 41.80% | |
Real Estate [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of stated value | 0.00% | ||
Real Estate [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of stated value | 0.00% | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of loans held for investment | $ 21,544 | ||
[1] | Includes $21.5 million of loans at December 31, 2015 where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Dividends per share | $ 0 | $ 0.11 | $ 0.33 | |||||||||
Calculation of earnings per share | ||||||||||||
Net income | $ 8,678 | $ 9,961 | $ 12,376 | $ 10,304 | $ 5,621 | $ 4,975 | $ 9,362 | $ 2,301 | $ 41,319 | $ 22,259 | $ 23,809 | |
Weighted average shares: | ||||||||||||
Basic weighted average number of shares outstanding | 20,818,045 | 14,800,689 | 14,412,059 | |||||||||
Dilutive effect of outstanding common stock equivalents | [1] | 241,156 | 160,392 | 386,109 | ||||||||
Diluted weighted-average number of shares outstanding | 21,059,201 | 14,961,081 | 14,798,168 | |||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ 0.39 | $ 0.45 | $ 0.56 | $ 0.60 | $ 0.38 | $ 0.34 | $ 0.63 | $ 0.16 | $ 1.98 | $ 1.50 | $ 1.65 | |
Diluted earnings per share | $ 0.39 | $ 0.45 | $ 0.56 | $ 0.59 | $ 0.38 | $ 0.33 | $ 0.63 | $ 0.15 | $ 1.96 | $ 1.49 | $ 1.61 | |
[1] | Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2015, 2014 and 2013 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, 143,400 and 103,674 at December 31, 2015, 2014 and 2013, respectively |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share (Textual) [Abstract] | |||
Aggregate number of common stock equivalents and unvested restricted stock | 0 | 143,400 | 103,674 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Segment Reporting Information [Line Items] | |||||||||||||
Number of Operating Segments | 2 | ||||||||||||
Condensed income statement: | |||||||||||||
Net interest income | $ 39,740 | $ 39,634 | $ 38,230 | $ 30,734 | $ 27,502 | $ 25,308 | $ 23,147 | $ 22,712 | $ 148,338 | $ 98,669 | [1] | $ 74,444 | [1] |
Provision for loan losses | (1,900) | (700) | (500) | (3,000) | (500) | 0 | 0 | 1,500 | (6,100) | 1,000 | (900) | ||
Noninterest Income | 65,409 | 67,468 | 72,987 | 75,373 | 51,487 | 45,813 | 53,650 | 34,707 | 281,237 | 185,657 | 190,745 | ||
Noninterest expense | (92,725) | (92,026) | (92,335) | (89,482) | (68,791) | (64,158) | (62,971) | (56,091) | (366,568) | (252,011) | (229,495) | ||
Income before income taxes | 10,524 | 14,376 | 18,382 | 13,625 | 9,698 | 6,963 | 13,826 | 2,828 | 56,907 | 33,315 | 34,794 | ||
Income tax (benefit) expense | (1,846) | (4,415) | (6,006) | (3,321) | (4,077) | (1,988) | (4,464) | (527) | (15,588) | (11,056) | (10,985) | ||
Net income | 8,678 | $ 9,961 | $ 12,376 | $ 10,304 | 5,621 | $ 4,975 | $ 9,362 | $ 2,301 | 41,319 | 22,259 | 23,809 | ||
Total Assets | 4,894,495 | 3,535,090 | 4,894,495 | 3,535,090 | 3,066,054 | ||||||||
Mortgage Banking [Member] | |||||||||||||
Condensed income statement: | |||||||||||||
Net interest income | 28,318 | 16,683 | [1] | 15,272 | [1] | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||||
Noninterest Income | 251,870 | 166,991 | 175,654 | ||||||||||
Noninterest expense | (243,970) | (172,199) | (163,354) | ||||||||||
Income before income taxes | 36,218 | 11,475 | 27,572 | ||||||||||
Income tax (benefit) expense | (12,916) | (3,964) | (9,736) | ||||||||||
Net income | 23,302 | 7,511 | 17,836 | ||||||||||
Total Assets | 848,445 | 788,681 | 848,445 | 788,681 | 489,292 | ||||||||
Consumer and Commercial Banking [Member] | |||||||||||||
Condensed income statement: | |||||||||||||
Net interest income | 120,020 | 81,986 | [1] | 59,172 | [1] | ||||||||
Provision for loan losses | (6,100) | 1,000 | (900) | ||||||||||
Noninterest Income | 29,367 | 18,666 | 15,091 | ||||||||||
Noninterest expense | (122,598) | (79,812) | (66,141) | ||||||||||
Income before income taxes | 20,689 | 21,840 | 7,222 | ||||||||||
Income tax (benefit) expense | (2,672) | (7,092) | (1,249) | ||||||||||
Net income | 18,017 | 14,748 | 5,973 | ||||||||||
Total Assets | $ 4,046,050 | $ 2,746,409 | $ 4,046,050 | $ 2,746,409 | $ 2,576,762 | ||||||||
[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 |
Accumulated Other Comprehens125
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Beginning balance | $ 1,546 | $ (11,994) | $ 9,190 |
Other comprehensive (loss) income before reclassifications | (1,325) | 15,072 | (20,032) |
Amount reclassified from accumulated other comprehensive income | (2,670) | (1,532) | (1,152) |
Other comprehensive income (loss) | (3,995) | 13,540 | (21,184) |
Ending balance | $ (2,449) | $ 1,546 | $ (11,994) |
Accumulated Other Comprehens126
Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Gain on sale of investment securities available for sale | $ 2,406 | $ 2,358 | $ 1,772 |
Income tax expense | (264) | 826 | 620 |
Total, net of tax | $ 2,670 | $ 1,532 | $ 1,152 |
Parent Company Financial Sta127
Parent Company Financial Statements Parent Company Condensed Statement of Financial Position (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 32,684 | $ 30,502 | $ 33,908 | $ 25,285 |
Other Assets | 148,377 | 105,009 | ||
Total assets | 4,894,495 | 3,535,090 | 3,066,054 | |
Accounts Payable and Accrued Liabilities | 117,251 | 77,975 | ||
Long-term Debt | 61,857 | 61,857 | ||
Total liabilities | 4,429,220 | 3,232,852 | ||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common Stock, Value, Issued | 511 | 511 | ||
Additional Paid in Capital | 222,328 | 96,615 | ||
Retained earnings | 244,885 | 203,566 | ||
Accumulated other comprehensive (loss) income | (2,449) | 1,546 | (11,994) | 9,190 |
Total shareholders' equity | 465,275 | 302,238 | 265,926 | 263,762 |
Total liabilities and shareholders' equity | 4,894,495 | 3,535,090 | ||
Payments of Dividends | 0 | 1,628 | 0 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 7,777 | 5,270 | 4,334 | $ 22,568 |
Other Assets | 13,419 | 7,137 | ||
Investment in stock of subsidiaries | 510,756 | 353,992 | ||
Total assets | 531,952 | 366,399 | ||
Accounts Payable and Accrued Liabilities | 4,820 | 2,304 | ||
Long-term Debt | 61,857 | 61,857 | ||
Total liabilities | 66,677 | 64,161 | ||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common Stock, Value, Issued | 511 | 511 | ||
Additional Paid in Capital | 222,328 | 96,615 | ||
Retained earnings | 244,885 | 203,567 | ||
Accumulated other comprehensive (loss) income | (2,449) | 1,545 | ||
Total shareholders' equity | 465,275 | 302,238 | ||
Total liabilities and shareholders' equity | 531,952 | 366,399 | ||
Payments of Dividends | $ (5) | $ (1,628) | $ 0 |
Parent Company Financial Sta128
Parent Company Financial Statements Parent Company Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Net interest income | $ 39,740 | $ 39,634 | $ 38,230 | $ 30,734 | $ 27,502 | $ 25,308 | $ 23,147 | $ 22,712 | $ 148,338 | $ 98,669 | [1] | $ 74,444 | [1] |
Noninterest Income | 65,409 | 67,468 | 72,987 | 75,373 | 51,487 | 45,813 | 53,650 | 34,707 | 281,237 | 185,657 | 190,745 | ||
Noninterest Expense | 92,725 | 92,026 | 92,335 | 89,482 | 68,791 | 64,158 | 62,971 | 56,091 | 366,568 | 252,011 | 229,495 | ||
Income before income taxes | 10,524 | 14,376 | 18,382 | 13,625 | 9,698 | 6,963 | 13,826 | 2,828 | 56,907 | 33,315 | 34,794 | ||
Income tax (benefit) expense | 1,846 | 4,415 | 6,006 | 3,321 | 4,077 | 1,988 | 4,464 | 527 | 15,588 | 11,056 | 10,985 | ||
Income from subsidiaries | 1,624 | 101 | 704 | ||||||||||
Net income | $ 8,678 | $ 9,961 | $ 12,376 | $ 10,304 | $ 5,621 | $ 4,975 | $ 9,362 | $ 2,301 | 41,319 | 22,259 | 23,809 | ||
Other comprehensive income (loss) | (3,995) | 13,540 | (21,184) | ||||||||||
Comprehensive income | 37,324 | 35,799 | 2,625 | ||||||||||
Parent Company [Member] | |||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Net interest income | (1,036) | (1,059) | (2,545) | ||||||||||
Noninterest Income | 1,686 | 561 | 970 | ||||||||||
Income (loss) before income tax benefit and equity in income of subsidiaries | 650 | (498) | (1,575) | ||||||||||
Dividends from HomeStreet Capital to parent | 13,181 | 4,200 | 19,600 | ||||||||||
Revenue, Net | 13,831 | 3,702 | 18,025 | ||||||||||
Noninterest Expense | 7,239 | 4,664 | 2,281 | ||||||||||
Income before income taxes | 6,592 | (962) | 15,744 | ||||||||||
Income tax (benefit) expense | (561) | (1,827) | (1,474) | ||||||||||
Income from subsidiaries | 34,166 | 21,394 | 6,591 | ||||||||||
Net income | 41,319 | 22,259 | 23,809 | ||||||||||
Other comprehensive income (loss) | (3,995) | 13,540 | (21,184) | ||||||||||
Comprehensive income | $ 37,324 | $ 35,799 | $ 2,625 | ||||||||||
[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 |
Parent Company Financial Sta129
Parent Company Financial Statements Parent Company Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | $ 8,311 | $ (348,636) | $ 304,030 |
Net Cash Provided by (Used in) Investing Activities | (418,334) | (84,239) | (459,884) |
Payments of Dividends | 0 | 1,628 | 0 |
Net Cash Provided by (Used in) Financing Activities | 412,205 | 429,469 | 164,477 |
Increase (decrease) in cash and cash equivalents | 2,182 | (3,406) | 8,623 |
Beginning of year | 30,502 | 33,908 | 25,285 |
End of period | 32,684 | 30,502 | 33,908 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | 2,654 | 5,693 | (483) |
Purchase of and proceeds from sale of marketable securities | 673 | 1,000 | (5,797) |
Net payments for investments in and advances to subsidiaries | (992) | (732) | (12,172) |
Net Cash Provided by (Used in) Investing Activities | (319) | 268 | (17,969) |
Proceeds from Stock Options Exercised | 177 | 130 | 188 |
Payments of Dividends | (5) | (1,628) | 0 |
Proceeds from and repayment of advances from subsidiaries | 0 | (3,527) | 30 |
Net Cash Provided by (Used in) Financing Activities | 172 | (5,025) | 218 |
Increase (decrease) in cash and cash equivalents | 2,507 | 936 | (18,234) |
Beginning of year | 5,270 | 4,334 | 22,568 |
End of period | $ 7,777 | $ 5,270 | $ 4,334 |
Unaudited Quarterly Financia130
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Unaudited Quarterly Financial Data [Abstract] | |||||||||||||
Interest income | $ 44,438 | $ 43,990 | $ 42,440 | $ 34,246 | $ 30,780 | $ 28,478 | $ 26,225 | $ 25,810 | $ 165,114 | $ 111,293 | $ 88,976 | ||
Interest expense | 4,698 | 4,356 | 4,210 | 3,512 | 3,278 | 3,170 | 3,078 | 3,098 | 16,776 | 12,624 | 14,532 | ||
Net interest income | 39,740 | 39,634 | 38,230 | 30,734 | 27,502 | 25,308 | 23,147 | 22,712 | 148,338 | 98,669 | [1] | 74,444 | [1] |
Provision (reversal of provision) for credit losses | 1,900 | 700 | 500 | 3,000 | 500 | 0 | 0 | (1,500) | 6,100 | (1,000) | 900 | ||
Net interest income after provision for credit losses | 37,840 | 38,934 | 37,730 | 27,734 | 27,002 | 25,308 | 23,147 | 24,212 | 142,238 | 99,669 | 73,544 | ||
Noninterest Income | 65,409 | 67,468 | 72,987 | 75,373 | 51,487 | 45,813 | 53,650 | 34,707 | 281,237 | 185,657 | 190,745 | ||
Noninterest Expense | 92,725 | 92,026 | 92,335 | 89,482 | 68,791 | 64,158 | 62,971 | 56,091 | 366,568 | 252,011 | 229,495 | ||
Income before income tax expense | 10,524 | 14,376 | 18,382 | 13,625 | 9,698 | 6,963 | 13,826 | 2,828 | 56,907 | 33,315 | 34,794 | ||
Income tax expense | 1,846 | 4,415 | 6,006 | 3,321 | 4,077 | 1,988 | 4,464 | 527 | 15,588 | 11,056 | 10,985 | ||
Net income | $ 8,678 | $ 9,961 | $ 12,376 | $ 10,304 | $ 5,621 | $ 4,975 | $ 9,362 | $ 2,301 | $ 41,319 | $ 22,259 | $ 23,809 | ||
Basic earnings per share | $ 0.39 | $ 0.45 | $ 0.56 | $ 0.60 | $ 0.38 | $ 0.34 | $ 0.63 | $ 0.16 | $ 1.98 | $ 1.50 | $ 1.65 | ||
Diluted earnings per share | $ 0.39 | $ 0.45 | $ 0.56 | $ 0.59 | $ 0.38 | $ 0.33 | $ 0.63 | $ 0.15 | $ 1.96 | $ 1.49 | $ 1.61 | ||
[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 |
Subsequent Events Subsequent ev
Subsequent Events Subsequent events (Details) - $ / shares | Feb. 01, 2016 | Mar. 31, 2015 |
Subsequent Event [Line Items] | ||
Business Acquisition, Share Price | $ 17.30 | |
Business Acquisition, Option Price per Share | $ 17.53 | |
OCBB acquisition [Member] | ||
Subsequent Event [Line Items] | ||
Business Acquisition, Share Price | $ 0.521 | |
Business Acquisition, Option Price per Share | $ 1.164 |