Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 02, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 26,941,533.6 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 635.4 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents (including interest-earning instruments of $30,268 and $34,615) | $ 72,718 | $ 53,932 |
Investment securities (includes $846,268 and $993,990 carried at fair value) | 904,304 | 1,043,851 |
Loans held for sale (includes $577,313 and $656,334 carried at fair value) | 610,902 | 714,559 |
Loans held for investment (net of allowance for loan losses of $37,847 and $34,001; includes $5,477 and $17,988 carried at fair value) | 4,506,466 | 3,819,027 |
Mortgage servicing rights (includes $258,560 and $226,113 carried at fair value) | 284,653 | 245,860 |
Other real estate owned | 664 | 5,243 |
Federal Home Loan Bank stock, at cost | 46,639 | 40,347 |
Premises and equipment, net | 104,654 | 77,636 |
Goodwill | 22,564 | 22,175 |
Other assets | 188,477 | 221,070 |
Total assets | 6,742,041 | 6,243,700 |
Liabilities: | ||
Deposits | 4,760,952 | 4,429,701 |
Federal Home Loan Bank advances | 979,201 | 868,379 |
Accounts payable and other liabilities | 172,234 | 191,189 |
Long-term debt | 125,274 | 125,147 |
Total liabilities | 6,037,661 | 5,614,416 |
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 shares, issued and outstanding, 26,888,288 shares and 26,800,183 shares | 511 | 511 |
Additional paid-in capital | 339,009 | 336,149 |
Retained earnings | 371,982 | 303,036 |
Accumulated other comprehensive loss | (7,122) | (10,412) |
Total shareholders' equity | 704,380 | 629,284 |
Total liabilities and shareholders' equity | $ 6,742,041 | $ 6,243,700 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Interest-bearing instruments | $ 30,268 | $ 34,615 |
Investment securities held at fair value (AFS) | 846,268 | 993,990 |
Single family loans held for sale | 577,313 | 656,334 |
Allowance for losses on loans held for investment | 37,847 | 34,001 |
Fair value of loans held for investment | 5,477 | 17,988 |
Single family mortgage servicing rights | $ 258,560 | $ 226,113 |
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 | 26,888,288 | 26,800,183 |
Common stock, shares outstanding | 26,888,288 | 26,800,183 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Loans | $ 215,363 | $ 190,667 | $ 152,621 |
Investment securities | 21,753 | 18,394 | 11,590 |
Other | 567 | 476 | 903 |
Total interest income | 237,683 | 209,537 | 165,114 |
Interest expense: | |||
Deposits | 23,912 | 19,009 | 11,801 |
Federal Home Loan Bank advances | 12,589 | 6,030 | 3,668 |
Federal funds purchased and securities sold under agreements to repurchase | 5 | 4 | 8 |
Long-term debt | 6,067 | 4,043 | 1,104 |
Other | 672 | 402 | 195 |
Total interest expense | 43,245 | 29,488 | 16,776 |
Net interest income | 194,438 | 180,049 | 148,338 |
Provision for credit losses | 750 | 4,100 | 6,100 |
Net interest income after provision for credit losses | 193,688 | 175,949 | 142,238 |
Noninterest income: | |||
Net gain on loan origination and sale activities | 255,876 | 307,313 | 236,388 |
Loan servicing income | 35,384 | 33,059 | 24,250 |
Income from WMS Series LLC | 598 | 2,333 | 1,624 |
Depositor and other retail banking fees | 7,221 | 6,790 | 5,881 |
Insurance agency commissions | 1,904 | 1,619 | 1,682 |
Gain on sale of investment securities available for sale | 489 | 2,539 | 2,406 |
Bargain purchase gain | 0 | 0 | 7,726 |
Other | 10,682 | 5,497 | 1,280 |
Total noninterest income | 312,154 | 359,150 | 281,237 |
Noninterest expense: | |||
Salaries and related costs | 293,870 | 303,354 | 240,587 |
General and administrative | 65,036 | 63,206 | 56,821 |
Amortization of core deposit intangibles | 1,710 | 2,166 | 1,924 |
Legal | 1,410 | 1,867 | 2,807 |
Consulting | 3,467 | 4,958 | 7,215 |
Federal Deposit Insurance Corporation assessments | 3,279 | 3,414 | 2,573 |
Occupancy | 38,268 | 30,530 | 24,927 |
Information services | 33,143 | 33,063 | 29,054 |
Net (benefit) cost from operation and sale of other real estate owned | (530) | 1,764 | 660 |
Total noninterest expense | 439,653 | 444,322 | 366,568 |
Income before income taxes | 66,189 | 90,777 | 56,907 |
Income tax (benefit) expense | (2,757) | 32,626 | 15,588 |
NET INCOME | $ 68,946 | $ 58,151 | $ 41,319 |
Basic income per share (in dollars per share) | $ 2.57 | $ 2.36 | $ 1.98 |
Diluted income per share (in dollars per share) | $ 2.54 | $ 2.34 | $ 1.96 |
Basic weighted average number of shares outstanding | 26,864,657 | 24,615,990 | 20,818,045 |
Diluted weighted average number of shares outstanding | 27,092,019 | 24,843,683 | 21,059,201 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 68,946 | $ 58,151 | $ 41,319 |
Unrealized (loss) gain on investment securities available for sale: | |||
Unrealized holding gain (loss) arising during the year, net of tax expense (benefit) of $1,942, $(3,400) and $(713) | 3,607 | (6,313) | (1,325) |
Reclassification adjustment for net gains included in net income, net of tax expense (benefit) of $172, $889 and $(264) | (317) | (1,650) | (2,670) |
Other comprehensive income (loss) | 3,290 | (7,963) | (3,995) |
Comprehensive income | $ 72,236 | $ 50,188 | $ 37,324 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Tax (benefit) expense on unrealized holding gain on securities | $ 1,942 | $ (3,400) | $ (713) |
Tax (benefit) expense on reclassification adjustment for net gain on securities included in net income | $ 172 | $ 889 | $ (264) |
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] |
Beginning balance at Dec. 31, 2014 | $ 302,238 | $ 511 | $ 96,615 | $ 203,566 | $ 1,546 |
Beginning balance, shares at Dec. 31, 2014 | 14,856,611 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 41,319 | 41,319 | |||
Share-based compensation expense | 1,267 | 1,267 | |||
Common stock issued | 124,446 | 124,446 | |||
Common stock issued, shares | 7,219,923 | ||||
Other comprehensive income (loss) | (3,995) | (3,995) | |||
Ending balance at Dec. 31, 2015 | 465,275 | $ 511 | 222,328 | 244,885 | (2,449) |
Ending balance, shares at Dec. 31, 2015 | 22,076,534 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 58,151 | 58,151 | |||
Share-based compensation expense | 1,788 | 1,788 | |||
Common stock issued | 112,033 | 112,033 | |||
Common stock issued, shares | 4,723,649 | ||||
Other comprehensive income (loss) | (7,963) | (7,963) | |||
Ending balance at Dec. 31, 2016 | $ 629,284 | $ 511 | 336,149 | 303,036 | (10,412) |
Ending balance, shares at Dec. 31, 2016 | 26,800,183 | 26,800,183 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 68,946 | 68,946 | |||
Share-based compensation expense | 2,502 | 2,502 | |||
Common stock issued | 358 | 358 | |||
Common stock issued, shares | 88,105 | ||||
Other comprehensive income (loss) | 3,290 | 3,290 | |||
Ending balance at Dec. 31, 2017 | $ 704,380 | $ 511 | $ 339,009 | $ 371,982 | $ (7,122) |
Ending balance, shares at Dec. 31, 2017 | 26,888,288 | 26,888,288 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 68,946 | $ 58,151 | $ 41,319 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 22,645 | 15,667 | 14,877 |
Provision for credit losses | 750 | 4,100 | 6,100 |
Net fair value adjustment and gain on sale of loans held for sale | (218,331) | (268,104) | 9,632 |
Fair value adjustment of loans held for investment | (1,030) | (354) | 2,000 |
Origination of mortgage servicing rights | (78,412) | (90,520) | (76,417) |
Change in fair value of mortgage servicing rights | 36,615 | 13,280 | 27,483 |
Net gain on sale of investment securities | (489) | (2,539) | (2,406) |
Net gain on sale of loans originated as held for investment | (4,600) | (2,607) | (456) |
Net fair value adjustment, gain on sale and provision for losses on other real estate owned | (383) | 1,767 | 176 |
Loss on disposal of fixed assets | 215 | 253 | 61 |
Loss on lease abandonment | 5,054 | 0 | 0 |
Net deferred income tax (benefit) expense | (2,094) | 31,490 | 16,389 |
Share-based compensation expense | 2,856 | 2,062 | 1,060 |
Bargain purchase gain | 0 | 0 | (7,726) |
Origination of loans held for sale | (7,763,844) | (9,169,488) | (7,265,622) |
Proceeds from sale of loans originated as held for sale | 8,084,916 | 9,379,720 | 7,243,990 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable and other assets | 27,711 | (60,946) | (12,151) |
(Decrease) increase in accounts payable and other liabilities | (19,957) | 43,255 | 10,002 |
Net cash provided by (used in) operating activities | 160,568 | (44,813) | 8,311 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of investment securities | (368,071) | (743,861) | (247,713) |
Proceeds from sale of investment securities | 397,492 | 164,429 | 112,259 |
Principal repayments and maturities of investment securities | 105,801 | 112,245 | 36,798 |
Proceeds from sale of other real estate owned | 6,105 | 5,672 | 6,110 |
Proceeds from sale of loans originated as held for investment | 324,745 | 153,518 | 34,111 |
Proceeds from sale of mortgage servicing rights | 0 | 0 | 4,325 |
Mortgage servicing rights purchased from others | (565) | 0 | (9) |
Capital expenditures related to other real estate owned | (57) | (720) | 0 |
Origination of loans held for investment and principal repayments, net | (998,638) | (609,981) | (476,062) |
Proceeds from sale of property and equipment | 0 | 1,148 | 0 |
Purchase of property and equipment | (42,286) | (24,482) | (20,560) |
Net cash acquired from acquisitions | 19,285 | 122,760 | 132,407 |
Net cash used in investing activities | (556,189) | (819,272) | (418,334) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Increase in deposits, net | 309,798 | 919,497 | 111,906 |
Proceeds from Federal Home Loan Bank advances | 10,972,200 | 14,734,636 | 10,618,900 |
Repayment of Federal Home Loan Bank advances | (10,861,200) | (14,898,636) | (10,263,900) |
Proceeds from federal funds purchased and securities sold under agreements to repurchase | 875,166 | 64,804 | 82,204 |
Repayment of federal funds purchased and securities sold under agreements to repurchase | (875,166) | (64,804) | (132,204) |
Proceeds from Federal Home Loan Bank stock repurchase | 187,766 | 284,662 | 153,657 |
Purchase of Federal Home Loan Bank stock | (194,058) | (279,436) | (158,565) |
Proceeds from debt issuance, net | (65) | 63,184 | 0 |
(Payments) proceeds from equity raise, net | (45) | 58,713 | 0 |
Proceeds from stock issuance, net | 11 | 2,713 | 178 |
Excess tax benefit related to the exercise of stock options | 0 | 0 | 29 |
Net cash provided by financing activities | 414,407 | 885,333 | 412,205 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 18,786 | 21,248 | 2,182 |
CASH AND CASH EQUIVALENTS: | |||
Beginning of year | 53,932 | 32,684 | 30,502 |
End of period | 72,718 | 53,932 | 32,684 |
Cash paid during the period for: | |||
Interest paid | 42,889 | 28,672 | 16,647 |
Federal and state income taxes (refunded) paid , net | (21,885) | 14,441 | 11,328 |
Non-cash activities: | |||
Loans held for investment foreclosed and transferred to other real estate owned | 1,125 | 2,056 | 4,396 |
Loans transferred from held for investment to held for sale | 419,494 | 169,745 | 76,178 |
Loans transferred from held for sale to held for investment | 100,049 | 12,311 | 25,668 |
Ginnie Mae loans recognized with the right to repurchase, net | 3,534 | 6,775 | 7,857 |
Simplicity bank [Member] | |||
Assets acquired, excluding cash acquired | 0 | 0 | 738,279 |
Liabilities assumed | 0 | 0 | 718,916 |
Bargain purchase gain | 0 | 0 | 7,345 |
Common stock issued | 0 | 0 | 124,214 |
OCBB [Member] | |||
Assets acquired, excluding cash acquired | 0 | 165,786 | 0 |
Liabilities assumed | 0 | 141,267 | 0 |
Goodwill | 0 | 8,360 | 0 |
Common stock issued | $ 0 | $ 50,373 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: HomeStreet, Inc. and its wholly owned subsidiaries (the “Company”) is a diversified financial services company serving customers primarily in the western United States, including Hawaii. The Company is principally engaged in commercial banking, mortgage banking, and consumer/retail banking activities. The Company's consolidated financial statements include the accounts of HomeStreet, Inc. and its wholly owned subsidiaries, HomeStreet Capital Corporation, HomeStreet Statutory Trusts and HomeStreet Bank (the “Bank”), and the Bank’s subsidiaries, HomeStreet/WMS, Inc., HomeStreet Reinsurance, Ltd., Continental Escrow Company, HomeStreet Foundation, HS Properties, Inc., HS Evergreen Corporate Center LLC, Union Street Holdings LLC, HS Cascadia Holdings LLC and YNB Real Estate 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 ), valuation of certain loans held for investment (Note 5, Loans and Credit Quality ), valuation of investment securities (Note 4, Investment Securities ), valuation of 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. 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 $4.4 million and $4.0 million at December 31, 2017 and 2016 , respectively, is included in cash and cash equivalents for FNMA DUS pledged securities and related reserves. In addition, restricted cash of $1.2 million and $2.4 million at December 31, 2017 and 2016 , respectively, is included in accounts receivable and other assets for reinsurance-related reserves. Investment Securities We classify investment securities as trading, held to maturity ("HTM"), or available for sale ("AFS") at the date of acquisition. Purchases and sales of securities are generally recorded on a trade-date basis. We include and record certain certificates of deposit that meet the definition of a security as HTM investments. Investment securities that we might not hold until maturity are classified as 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 cost basis. Debt securities are classified as HTM if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for amortization of purchase premiums and accretion of purchase discounts. Transfers of securities from available for sale to held to maturity are accounted for at fair value as of the date of the transfer. The difference between the fair value and the par value at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in OCI, and is amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held to maturity security. 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 (originated with the intent to be 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 originated 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 and SBA 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 and SBA 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) or straight-line 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, non-owner occupied, multifamily residential, construction/land development, owner occupied 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 and SBA 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 expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the single family MSRs asset. For further 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 . 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 28 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. Equity method investment income from WMS LLC was $598 thousand , $2.7 million , and $2.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company’s investment in WMS LLC was $2.0 million and $2.7 million , which is included in accounts receivable and other assets at December 31, 2017 and 2016 , 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 $844 thousand , $370 thousand , and $(960) thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. Income related to WMS LLC, including equity method investment income, is classified as income from WMS Series LLC in noninterest income within the consolidated statements of operations. The Company purchased $574.3 million , $589.2 million and $616.9 million of single family mortgage loans from WMS LLC for the years ended December 31, 2017 , 2016 and 2015 , 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 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS: Recent Acquisition Activity On September 15, 2017, the Company completed its acquisition of one branch and its related deposits in Southern California, from Opus Bank. The application of the acquisition method of accounting resulted in goodwill of $389 thousand . On November 10, 2016, the Company completed its acquisition of two branches and their related deposits in Southern California, from Boston Private Bank and Trust. The provisional application of the acquisition method of accounting resulted in goodwill of $2.3 million . On August 12, 2016, the Company completed its acquisition of certain assets and liabilities, including two branches in Lake Oswego, Oregon from The Bank of Oswego. The application of the acquisition method of accounting resulted in goodwill of $19 thousand . On February 1, 2016, the Company completed its acquisition of Orange County Business Bank ("OCBB") located in Irvine, California through the merger of OCBB with and into HomeStreet Bank with HomeStreet Bank as the surviving subsidiary. The purchase price of this acquisition was $55.9 million . OCBB shareholders as of the effective time received merger consideration equal to 0.5206 shares of HomeStreet common stock, and $1.1641 in cash upon the surrender of their OCBB shares, which resulted in the issuance of 2,459,461 shares of HomeStreet common stock. The application of the acquisition method of accounting resulted in goodwill of $8.4 million . 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, 2017 . 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 year ended December 31, 2015 : Year Ended December 31, (in thousands) 2015 Noninterest expense Salaries and related costs $ 7,669 General and administrative 1,256 Legal 530 Consulting 5,539 Occupancy 335 Information services 481 Total noninterest expense $ 15,810 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. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | REGULATORY CAPITAL REQUIREMENTS: In July 2013, federal banking regulators (including the Federal Deposit Insurance Corporation "FDIC" and the Federal Reserve Bank "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 applied 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 Tier 1 leverage capital, common equity Tier 1 capital, 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, 2017 and 2016 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 tables: At December 31, 2017 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 $ 649,864 9.67 % $ 268,708 4.0 % $ 335,885 5.0 % Common equity risk-based capital (to risk-weighted assets) 649,864 13.22 221,201 4.5 319,512 6.5 Tier 1 risk-based capital 649,864 13.22 294,935 6.0 393,246 8.0 Total risk-based capital 688,981 14.02 393,246 8.0 491,558 10.0 At December 31, 2017 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 $ 614,624 9.12 % $ 269,534 4.0 % $ 336,918 5.0 % Common equity risk-based capital (to risk-weighted assets) 555,120 9.86 253,293 4.5 365,868 6.5 Tier 1 risk-based capital 614,624 10.92 337,724 6.0 450,299 8.0 Total risk-based capital 653,741 11.61 450,299 8.0 562,873 10.0 At December 31, 2016 HomeStreet Bank Actual For Minimum Capital Adequacy Purposes To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio Tier 1 leverage capital $ 635,988 10.26 % $ 248,055 4.0 % $ 310,069 5.0 % Common equity risk-based capital (to risk-weighted assets) 635,988 13.92 205,615 4.5 297,000 6.5 Tier 1 risk-based capital (to risk-weighted assets) 635,988 13.92 274,154 6.0 365,538 8.0 Total risk-based capital 671,252 14.69 365,538 8.0 456,923 10.0 At December 31, 2016 HomeStreet, Inc. Actual For Minimum Capital Adequacy Purposes To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio Tier 1 leverage capital $ 608,988 9.78 % $ 249,121 4.0 % $ 311,402 5.0 % Common equity risk-based capital (to risk-weighted assets) 550,510 10.54 234,965 4.5 339,395 6.5 Tier 1 risk-based capital 608,988 11.66 313,287 6.0 417,716 8.0 Total risk-based capital 644,252 12.34 417,716 8.0 522,146 10.0 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES: The following tables sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale and held to maturity. At December 31, 2017 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 133,654 $ 4 $ (3,568 ) $ 130,090 Commercial 24,024 8 (338 ) 23,694 Municipal bonds 389,117 2,978 (3,643 ) 388,452 Collateralized mortgage obligations: Residential 164,502 3 (4,081 ) 160,424 Commercial 100,001 9 (1,441 ) 98,569 Corporate debt securities 25,146 67 (476 ) 24,737 U.S. Treasury securities 10,899 — (247 ) 10,652 Agency debentures 9,861 — (211 ) 9,650 $ 857,204 $ 3,069 $ (14,005 ) $ 846,268 HELD TO MATURITY Mortgage-backed securities: Residential $ 12,062 $ 35 $ (99 ) $ 11,998 Commercial 21,015 75 (161 ) 20,929 Collateralized mortgage obligations 3,439 — — 3,439 Municipal bonds 21,423 339 (97 ) 21,665 Corporate debt securities 97 — — 97 $ 58,036 $ 449 $ (357 ) $ 58,128 At December 31, 2016 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 181,158 $ 31 $ (4,115 ) $ 177,074 Commercial 25,896 13 (373 ) 25,536 Municipal bonds 473,153 1,333 (6,813 ) 467,673 Collateralized mortgage obligations: Residential 194,982 32 (3,813 ) 191,201 Commercial 71,870 29 (1,135 ) 70,764 Corporate debt securities 52,045 110 (1,033 ) 51,122 U.S. Treasury securities 10,882 — (262 ) 10,620 $ 1,009,986 $ 1,548 $ (17,544 ) $ 993,990 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,844 $ 71 $ (90 ) $ 13,825 Commercial 16,303 70 (64 ) 16,309 Municipal bonds 19,612 99 (459 ) 19,252 Corporate debt securities 102 — — 102 $ 49,861 $ 240 $ (613 ) $ 49,488 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 either collateral or revenues from the specific project being financed) issued by various municipal corporations. As of December 31, 2017 and 2016 , 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, 2017 and 2016 , substantially all securities held had ratings available by external ratings agencies. Investment securities available for sale and held to maturity 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, 2017 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 AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (182 ) $ 18,020 $ (3,386 ) $ 110,878 $ (3,568 ) $ 128,898 Commercial (113 ) 15,265 (225 ) 6,748 (338 ) 22,013 Municipal bonds (760 ) 105,415 (2,883 ) 134,103 (3,643 ) 239,518 Collateralized mortgage obligations: Residential (612 ) 53,721 (3,469 ) 104,555 (4,081 ) 158,276 Commercial (538 ) 57,236 (903 ) 35,225 (1,441 ) 92,461 Corporate debt securities (15 ) 5,272 (461 ) 13,365 (476 ) 18,637 U.S. Treasury securities (3 ) 997 (244 ) 9,655 (247 ) 10,652 Agency debentures (211 ) 9,650 — — (211 ) 9,650 $ (2,434 ) $ 265,576 $ (11,571 ) $ 414,529 $ (14,005 ) $ 680,105 HELD TO MATURITY Mortgage-backed securities: Residential $ (13 ) $ 2,662 $ (86 ) $ 4,452 $ (99 ) $ 7,114 Commercial (161 ) 15,900 — — (161 ) 15,900 Collateralized mortgage obligations — 3,439 — — — 3,439 Municipal bonds (3 ) 2,185 (94 ) 9,465 (97 ) 11,650 $ (177 ) $ 24,186 $ (180 ) $ 13,917 $ (357 ) $ 38,103 At December 31, 2016 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (3,842 ) $ 144,240 $ (273 ) $ 9,907 $ (4,115 ) $ 154,147 Commercial (373 ) 23,798 — — (373 ) 23,798 Municipal bonds (6,813 ) 283,531 — — (6,813 ) 283,531 Collateralized mortgage obligations: Residential (3,052 ) 175,490 (761 ) 11,422 (3,813 ) 186,912 Commercial (1,005 ) 60,926 (130 ) 5,349 (1,135 ) 66,275 Corporate debt securities (472 ) 24,447 (561 ) 11,677 (1,033 ) 36,124 U.S. Treasury securities (262 ) 10,620 — — (262 ) 10,620 $ (15,819 ) $ 723,052 $ (1,725 ) $ 38,355 $ (17,544 ) $ 761,407 HELD TO MATURITY Mortgage-backed securities: Residential $ (90 ) $ 5,481 $ — $ — $ (90 ) $ 5,481 Commercial (64 ) 13,156 — — (64 ) 13,156 Municipal bonds (459 ) 11,717 — — (459 ) 11,717 $ (613 ) $ 30,354 $ — $ — $ (613 ) $ 30,354 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, 2017 and 2016 . In addition, as of December 31, 2017 and 2016 , 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 and held to maturity 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, 2017 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 AVAILABLE FOR SALE Mortgage-backed securities: Residential $ — — % $ — — % $ 8,914 1.63 % $ 121,176 1.97 % $ 130,090 1.94 % Commercial — — 15,356 2.07 4,558 2.03 3,780 2.98 23,694 2.21 Municipal bonds 641 2.64 24,456 3.10 39,883 3.25 323,472 3.81 388,452 3.71 Collateralized mortgage obligations: Residential — — — — — — 160,424 2.10 160,424 2.10 Commercial — — 12,550 2.09 21,837 2.38 64,182 2.13 98,569 2.18 Agency debentures — — — — 9,650 2.26 — — 9,650 2.26 Corporate debt securities 1,048 2.11 6,527 2.80 11,033 3.49 6,129 3.57 24,737 3.27 U.S. Treasury securities 997 1.22 — — 9,655 1.76 — — 10,652 1.71 Total available for sale $ 2,686 1.90 % $ 58,889 2.58 % $ 105,530 2.67 % $ 679,163 2.90 % $ 846,268 2.85 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 11,998 2.93 % $ 11,998 2.93 % Commercial — — 6,577 2.15 14,352 2.71 — — 20,929 2.53 Collateralized mortgage obligations — — — — — — 3,439 1.90 3,439 1.90 Municipal bonds — — 1,846 3.35 4,630 2.57 15,189 3.50 21,665 3.28 Corporate debt securities — — — — — — 97 6.00 97 6.00 Total held to maturity $ — — % $ 8,423 2.41 % $ 18,982 2.68 % $ 30,723 3.10 % $ 58,128 2.86 % At December 31, 2016 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 AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 1 0.29 % $ — — % $ 2,122 1.59 % $ 174,951 2.03 % $ 177,074 2.02 % Commercial — — 20,951 2.13 4,585 2.06 — — 25,536 2.11 Municipal bonds 3,479 3.30 20,939 2.94 52,043 2.55 391,212 3.08 467,673 3.02 Collateralized mortgage obligations: Residential — — — — 1,639 1.32 189,562 2.06 191,201 2.06 Commercial — — 10,860 1.84 19,273 2.74 40,631 1.91 70,764 2.12 Corporate debt securities — — 10,516 2.67 21,493 3.74 19,113 3.54 51,122 3.45 U.S. Treasury securities 999 0.64 — — 9,621 1.76 — — 10,620 1.66 Total available for sale $ 4,479 2.70 % $ 63,266 2.43 % $ 110,776 2.69 % $ 815,469 2.57 % $ 993,990 2.57 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 13,825 3.11 % $ 13,825 3.11 % Commercial — — 4,581 2.06 11,728 2.71 — — 16,309 2.53 Municipal bonds — — — — 6,450 2.73 12,802 3.31 19,252 3.11 Corporate debt securities — — — — — — 102 6.00 102 6.00 Total held to maturity $ — — % $ 4,581 2.06 % $ 18,178 2.72 % $ 26,729 3.22 % $ 49,488 2.93 % Sales of investment securities available for sale were as follows. Years Ended December 31, (in thousands) 2017 2016 2015 Proceeds $ 397,492 $ 164,430 $ 112,259 Gross gains 1,214 2,782 2,571 Gross losses (725 ) (243 ) (165 ) The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law. (in thousands) At December 31, At December 31, Federal Home Loan Bank to secure borrowings $ 425,866 $ 103,171 Washington and California State to secure public deposits 118,828 30,364 Securities pledged to secure derivatives in a liability position 7,308 9,359 Other securities pledged 6,089 8,123 Total securities pledged as collateral $ 558,091 $ 151,017 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, 2017 and 2016 . Tax-exempt interest income on securities available for sale totaling $8.8 million , $6.3 million and $3.6 million for the years ended December 31, 2017 , 2016 and 2015 |
Loans and Credit Quality
Loans and Credit Quality | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
LOANS AND CREDIT QUALITY | 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 non-owner occupied commercial real estate, multifamily, construction/land development, owner occupied commercial real estate and commercial business loans within the commercial loan portfolio segment. Loans held for investment consist of the following: At December 31, (in thousands) 2017 2016 Consumer loans Single family (1) $ 1,381,366 $ 1,083,822 Home equity and other 453,489 359,874 Total consumer loans 1,834,855 1,443,696 Commercial real estate loans Non-owner occupied commercial real estate 622,782 588,672 Multifamily 728,037 674,219 Construction/land development 687,631 636,320 Total commercial real estate loans 2,038,450 1,899,211 Commercial and industrial loans Owner occupied commercial real estate 391,613 282,891 Commercial business 264,709 223,653 Total commercial and industrial loans 656,322 506,544 Loans held for investment before deferred fees, costs and allowance 4,529,627 3,849,451 Net deferred loan fees and costs 14,686 3,577 4,544,313 3,853,028 Allowance for loan losses (37,847 ) (34,001 ) Total loans held for investment $ 4,506,466 $ 3,819,027 (1) Includes $5.5 million and $18.0 million at December 31, 2017 and December 31, 2016 , respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. Loans in the amount of $1.81 billion and $1.59 billion at December 31, 2017 and 2016 , respectively, were pledged to secure borrowings from the FHLB as part of our liquidity management strategy. Additionally, loans totaling $663.8 million and $554.7 million at December 31, 2017 and 2016 , 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, 2017 and 2016 with respect to such aggregate loans to these related parties and their associates: Years Ended December 31, (in thousands) 2017 2016 Beginning balance, January 1 $ 4,379 $ 4,511 Principal repayments and advances, net (2,411 ) (132 ) Ending balance, December 31 $ 1,968 $ 4,379 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, 2017 , we had concentrations representing 10% or more of the total portfolio by state and property type for the loan class of single family within the state of Washington and California, which represented 15.0% and 10.9% of the total portfolio, respectively. At December 31, 2016 we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and non-owner occupied real estate within the state of Washington, which represented 13.8% and 10.1% 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, 2017 . 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. Years Ended December 31, (in thousands) 2017 2016 2015 Allowance for credit losses (roll-forward): Beginning balance $ 35,264 $ 30,659 $ 22,524 Provision for credit losses 750 4,100 6,100 Recoveries, net of charge-offs 3,102 505 2,035 Ending balance $ 39,116 $ 35,264 $ 30,659 Components: Allowance for loan losses $ 37,847 $ 34,001 $ 29,278 Allowance for unfunded commitments 1,269 1,263 1,381 Allowance for credit losses $ 39,116 $ 35,264 $ 30,659 Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Year Ended December 31, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,196 $ (2 ) $ 1,495 $ (277 ) $ 9,412 Home equity and other 6,153 (707 ) 818 817 7,081 Total consumer loans 14,349 (709 ) 2,313 540 16,493 Commercial real estate loans Non-owner occupied commercial real estate 4,481 — — 274 4,755 Multifamily 3,086 — — 809 3,895 Construction/land development 8,553 — 1,017 (893 ) 8,677 Total commercial real estate loans 16,120 — 1,017 190 17,327 Commercial and industrial loans Owner occupied commercial real estate 2,199 — — 761 2,960 Commercial business 2,596 (411 ) 892 (741 ) 2,336 Total commercial and industrial loans 4,795 (411 ) 892 20 5,296 Total allowance for credit losses $ 35,264 $ (1,120 ) $ 4,222 $ 750 $ 39,116 Year Ended December 31, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,942 $ (790 ) $ 90 $ (46 ) $ 8,196 Home equity and other 4,620 (839 ) 920 1,452 6,153 Total consumer loans 13,562 (1,629 ) 1,010 1,406 14,349 Commercial real estate loans Non-owner occupied commercial real estate 3,594 — — 887 4,481 Multifamily 1,194 — — 1,892 3,086 Construction/land development 9,271 (42 ) 1,143 (1,819 ) 8,553 Total commercial real estate loans 14,059 (42 ) 1,143 960 16,120 Commercial and industrial loans Owner occupied commercial real estate 1,253 — — 946 2,199 Commercial business 1,785 (27 ) 50 788 2,596 Total commercial and industrial loans 3,038 (27 ) 50 1,734 4,795 Total allowance for credit losses $ 30,659 $ (1,698 ) $ 2,203 $ 4,100 $ 35,264 The following tables disaggregate our allowance for credit losses and recorded investment in loans by impairment methodology. At December 31, 2017 (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 $ 9,188 $ 224 $ 9,412 $ 1,300,939 $ 74,967 $ 1,375,906 Home equity and other 7,036 45 7,081 452,182 1,290 453,472 Total consumer loans 16,224 269 16,493 1,753,121 76,257 1,829,378 Commercial real estate loans Non-owner occupied commercial real estate 4,755 — 4,755 622,782 — 622,782 Multifamily 3,895 — 3,895 727,228 809 728,037 Construction/land development 8,677 — 8,677 687,177 454 687,631 Total commercial real estate loans 17,327 — 17,327 2,037,187 1,263 2,038,450 Commercial and industrial loans Owner occupied commercial real estate 2,960 — 2,960 388,624 2,989 391,613 Commercial business 2,316 20 2,336 261,603 3,106 264,709 Total commercial and industrial loans 5,276 20 5,296 650,227 6,095 656,322 Total loans evaluated for impairment 38,827 289 39,116 4,440,535 83,615 4,524,150 Loans held for investment carried at fair value 5,246 231 5,477 (1) Total loans held for investment $ 38,827 $ 289 $ 39,116 $ 4,445,781 $ 83,846 $ 4,529,627 At December 31, 2016 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 7,871 $ 325 $ 8,196 $ 985,219 $ 80,676 $ 1,065,895 Home equity and other 6,104 49 6,153 358,350 1,463 359,813 Total consumer loans 13,975 374 14,349 1,343,569 82,139 1,425,708 Commercial real estate loans Non-owner occupied commercial real estate 4,481 — 4,481 587,801 871 588,672 Multifamily 3,086 — 3,086 673,374 845 674,219 Construction/land development 8,553 — 8,553 634,427 1,893 636,320 Total commercial real estate loans 16,120 — 16,120 1,895,602 3,609 1,899,211 Commercial and industrial loans Owner occupied commercial real estate 2,199 — 2,199 281,424 1,467 282,891 Commercial business 2,591 5 2,596 220,360 3,293 223,653 Total commercial and industrial loans 4,790 5 4,795 501,784 4,760 506,544 Total loans evaluated for impairment 34,885 379 35,264 3,740,955 90,508 3,831,463 Loans held for investment carried at fair value 17,988 (1) Total loans held for investment $ 34,885 $ 379 $ 35,264 $ 3,740,955 $ 90,508 $ 3,849,451 (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. Impaired Loans The following tables present impaired loans by loan portfolio segment and loan class. At December 31, 2017 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 71,264 (4) $ 72,424 $ — Home equity and other 782 807 — Total consumer loans 72,046 73,231 — Commercial real estate loans Multifamily 809 837 — Construction/land development 454 454 — Total commercial real estate loans 1,263 1,291 — Commercial and industrial loans Owner occupied commercial real estate 2,989 3,288 — Commercial business 2,398 3,094 — Total commercial and industrial loans 5,387 6,382 — $ 78,696 $ 80,904 $ — With an allowance recorded: Consumer loans Single family $ 3,934 $ 4,025 $ 224 Home equity and other 508 508 45 Total consumer loans 4,442 4,533 269 Commercial and industrial loans Commercial business 708 755 20 Total commercial and industrial loans 708 755 20 $ 5,150 $ 5,288 $ 289 Total: Consumer loans Single family (3) $ 75,198 $ 76,449 $ 224 Home equity and other 1,290 1,315 45 Total consumer loans 76,488 77,764 269 Commercial real estate loans Multifamily 809 837 — Construction/land development 454 454 — Total commercial real estate loans 1,263 1,291 — Commercial and industrial loans Owner occupied commercial real estate 2,989 3,288 — Commercial business 3,106 3,849 20 Total commercial and industrial loans 6,095 7,137 20 Total impaired loans $ 83,846 $ 86,192 $ 289 (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 $69.6 million in single family performing TDRs. (4) Includes $231 thousand of fair value option loans. At December 31, 2016 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 77,756 $ 80,573 $ — Home equity and other 946 977 — Total consumer loans 78,702 81,550 — Commercial real estate loans Non-owner occupied commercial real estate 871 898 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Total commercial real estate loans 3,609 4,568 — Commercial and industrial loans Owner occupied commercial real estate 1,467 1,948 — Commercial business 2,945 4,365 — Total commercial and industrial loans 4,412 6,313 — $ 86,723 $ 92,431 $ — With an allowance recorded: Consumer loans Single family $ 2,920 $ 3,011 $ 325 Home equity and other 517 517 49 Total consumer loans 3,437 3,528 374 Commercial and industrial loans Commercial business 348 347 5 Total commercial and industrial loans 348 347 5 $ 3,785 $ 3,875 $ 379 Total: Consumer loans Single family (3) $ 80,676 $ 83,584 $ 325 Home equity and other 1,463 1,494 49 Total consumer loans 82,139 85,078 374 Commercial real estate loans Non-owner occupied commercial real estate 871 898 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Total commercial real estate loans 3,609 4,568 — Commercial and industrial loans Owner occupied commercial real estate 1,467 1,948 — Commercial business 3,293 4,712 5 Total commercial and industrial loans 4,760 6,660 5 Total impaired loans $ 90,508 $ 96,306 $ 379 (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 $73.1 million in single family performing TDRs. The following table provides the average recorded investment and interest income recognized on impaired loans by portfolio segment and class. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Consumer loans Single family $ 80,519 $ 2,963 $ 82,745 $ 2,873 $ 78,824 $ 2,670 Home equity and other 1,432 80 1,408 68 1,922 83 Total consumer loans 81,951 3,043 84,153 2,941 80,746 2,753 Commercial real estate loans Non-owner occupied commercial real estate 686 — 435 — 10,862 375 Multifamily 824 25 1,299 47 4,035 111 Construction/land development 917 73 2,286 87 4,535 207 Total commercial real estate loans 2,427 98 4,020 134 19,432 693 Commercial and industrial loans Owner occupied commercial real estate 2,922 170 2,648 22 3,554 69 Commercial business 2,533 144 3,591 83 4,431 163 Total commercial and industrial loans 5,455 314 6,239 105 7,985 232 $ 89,833 $ 3,455 $ 94,412 $ 3,180 $ 108,163 $ 3,678 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, 2017 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,355,965 (1) $ 2,982 $ 11,328 $ 11,091 $ 1,381,366 Home equity and other 451,194 143 751 1,401 453,489 1,807,159 3,125 12,079 12,492 1,834,855 Commercial real estate loans Non-owner occupied commercial real estate 613,181 8,801 — 800 622,782 Multifamily 693,190 34,038 507 302 728,037 Construction/land development 664,025 22,062 1,466 78 687,631 1,970,396 64,901 1,973 1,180 2,038,450 Commercial and industrial loans Owner occupied commercial real estate 361,429 20,949 6,399 2,836 391,613 Commercial business 220,461 39,588 1,959 2,701 264,709 581,890 60,537 8,358 5,537 656,322 $ 4,359,445 $ 128,563 $ 22,410 $ 19,209 $ 4,529,627 At December 31, 2016 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,051,463 (1) $ 4,348 $ 15,172 $ 12,839 $ 1,083,822 Home equity and other 357,191 597 514 1,572 359,874 1,408,654 4,945 15,686 14,411 1,443,696 Commercial real estate loans Non-owner occupied commercial real estate 562,950 23,741 1,110 871 588,672 Multifamily 660,234 13,140 508 337 674,219 Construction/land development 615,675 16,074 3,083 1,488 636,320 1,838,859 52,955 4,701 2,696 1,899,211 Commercial and industrial loans Owner occupied commercial real estate 247,046 28,778 6,055 1,012 282,891 Commercial business 171,883 42,767 3,385 5,618 223,653 418,929 71,545 9,440 6,630 506,544 $ 3,666,442 $ 129,445 $ 29,827 $ 23,737 $ 3,849,451 (1) Includes $5.5 million and $18.0 million of loans at December 31, 2017 and 2016 , respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. As of December 31, 2017 and 2016 , 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 tables present an aging analysis of past due loans by loan portfolio segment and loan class. At December 31, 2017 (in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and accruing Consumer loans Single family $ 10,493 $ 4,437 $ 48,262 $ 63,192 $ 1,318,174 (1) $ 1,381,366 $ 37,171 (2) Home equity and other 750 20 1,404 2,174 451,315 453,489 — 11,243 4,457 49,666 65,366 1,769,489 1,834,855 37,171 Commercial real estate loans Non-owner occupied commercial real estate — — — — 622,782 622,782 — Multifamily — — 302 302 727,735 728,037 — Construction/land development 641 — 78 719 686,912 687,631 — 641 — 380 1,021 2,037,429 2,038,450 — Commercial and industrial loans Owner occupied commercial real estate — — 640 640 390,973 391,613 — Commercial business 377 — 1,526 1,903 262,806 264,709 — 377 — 2,166 2,543 653,779 656,322 — $ 12,261 $ 4,457 $ 52,212 $ 68,930 $ 4,460,697 $ 4,529,627 $ 37,171 At December 31, 2016 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or Consumer loans Single family $ 4,310 $ 5,459 $ 53,563 $ 63,332 $ 1,020,490 (1) $ 1,083,822 $ 40,846 (2) Home equity and other 251 442 1,571 2,264 357,610 359,874 — 4,561 5,901 55,134 65,596 1,378,100 1,443,696 40,846 Commercial real estate loans Non-owner occupied commercial real estate 23 — 871 894 587,778 588,672 — Multifamily — — 337 337 673,882 674,219 — Construction/land development — — 1,376 1,376 634,944 636,320 — 23 — 2,584 2,607 1,896,604 1,899,211 — Commercial and industrial loans Owner occupied commercial real estate 48 205 1,256 1,509 281,382 282,891 — Commercial business 202 — 2,414 2,616 221,037 223,653 — 250 205 3,670 4,125 502,419 506,544 — $ 4,834 $ 6,106 $ 61,388 $ 72,328 $ 3,777,123 $ 3,849,451 $ 40,846 (1) Includes $5.5 million and $18.0 million of loans at December 31, 2017 and 2016 respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. At December 31, 2017 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,370,275 (1) $ 11,091 $ 1,381,366 Home equity and other 452,085 1,404 453,489 1,822,360 12,495 1,834,855 Commercial real estate loans Non-owner occupied commercial real estate 622,782 — 622,782 Multifamily 727,735 302 728,037 Construction/land development 687,553 78 687,631 2,038,070 380 2,038,450 Commercial |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned | OTHER REAL ESTATE OWNED: Other real estate owned consisted of the following. At December 31, (in thousands) 2017 2016 Single family $ 664 $ 2,133 Commercial real estate — 552 Construction/land development — 5,381 664 8,066 Valuation allowance — (2,823 ) $ 664 $ 5,243 Activity in other real estate owned was as follows. Years Ended December 31, (in thousands) 2017 2016 Beginning balance $ 5,243 $ 7,531 Additions 1,113 5,417 Loss provisions (33 ) (1,553 ) Reductions related to sales (5,659 ) (6,152 ) Ending balance $ 664 $ 5,243 Activity in the valuation allowance for other real estate owned was as follows. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ 3,095 $ 1,764 $ 1,303 Loss provisions 33 1,553 695 (Charge-offs), net of recoveries (3,128 ) (222 ) (234 ) Ending balance $ — $ 3,095 $ 1,764 The components of the net cost of operation and sale of other real estate owned are as follows. Years Ended December 31, (in thousands) 2017 2016 2015 Maintenance (reimbursements) costs $ (114 ) $ 469 $ 453 Loss provisions — 1,332 695 Net gain on sales (416 ) (37 ) (447 ) Net operating income (loss) — — (41 ) Net (income) cost from operation and sale of other real estate owned $ (530 ) $ 1,764 $ 660 At December 31, 2017 , we had concentrations within the state of Washington, primarily in Spokane County, representing 76.8% of the total balance of other real estate owned. At December 31, 2016 , we had concentrations within the state of Washington, primarily in Thurston County, representing 78.2% |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | PREMISES AND EQUIPMENT, NET: Premises and equipment consisted of the following. December 31, (in thousands) 2017 2016 Furniture and equipment $ 70,657 $ 65,089 Leasehold improvements 57,402 45,075 Land and buildings 28,898 10,437 156,957 120,601 Less: accumulated depreciation (52,303 ) (42,965 ) $ 104,654 $ 77,636 Depreciation expense for the years ended December 31, 2017 , 2016 , and 2015 , was $13.5 million , $11.4 million , and $10.9 million |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS: Deposit balances, including stated rates, were as follows. At December 31, (in thousands) 2017 2016 Noninterest-bearing accounts $ 980,902 $ 964,829 NOW accounts, 0.00% to 1.98% at December 31, 2017 and 0.00% to 1.00% at December 31, 2016 461,349 468,812 Statement savings accounts, due on demand, 0.05% to 1.13% at December 31, 2017 and December 31, 2016 293,858 301,361 Money market accounts, due on demand, 0.00% to 1.80% and at December 31, 2017 and 0.00% to 1.70% at December 31, 2016 1,834,154 1,603,141 Certificates of deposit, 0.05% to 3.80% at December 31, 2017 and December 31, 2016 1,190,689 1,091,558 $ 4,760,952 $ 4,429,701 There were $178.4 million and $21.8 million in public funds included in deposits at December 31, 2017 and 2016 , respectively. Interest expense on deposits was as follows. Years Ended December 31, (in thousands) 2017 2016 2015 NOW accounts $ 1,964 $ 1,950 $ 1,773 Statement savings accounts 1,007 1,029 1,032 Money market accounts 8,604 7,398 4,945 Certificates of deposit 12,337 8,632 4,051 $ 23,912 $ 19,009 $ 11,801 The weighted-average interest rates on certificates of deposit at December 31, 2017 , 2016 and 2015 were 1.12% , 0.96% and 0.96% respectively. Certificates of deposit outstanding mature as follows. (in thousands) December 31, 2017 Within one year $ 889,790 One to two years 236,414 Two to three years 33,505 Three to four years 13,412 Four to five years 17,415 Thereafter 153 $ 1,190,689 The aggregate amount of time deposits in denominations of more than $250 thousand at December 31, 2017 and 2016 was $88.8 million and $87.4 million , respectively. There were $345.5 million and $234.4 million of brokered deposits at December 31, 2017 and 2016 |
Federal Home Loan Bank and Othe
Federal Home Loan Bank and Other Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Federal Home Loan Bank and Other Borrowings | FEDERAL HOME LOAN BANK AND OTHER BORROWINGS: Federal Home Loan Bank The Company borrows funds through advances from the FHLB. FHLB advances totaled $979.2 million and $868.4 million as of December 31, 2017 , and 2016 , respectively. Weighted-average interest rates on the advances were 1.58% , 0.91% , and 0.64% at December 31, 2017 , 2016 and 2015 , 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 $579.2 million as of December 31, 2017 . 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, 2017 (in thousands) Advances outstanding Weighted-average interest rate 2018 $ 963,611 1.53 % 2019 10,000 4.27 2020 — — 2021 — — 2022 and thereafter 5,590 5.31 $ 979,201 1.58 % 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, 2017 and 2016 , the Company held $46.6 million and $40.3 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 no other-than-temporary impairment of the FHLB stock investment as of December 31, 2017 , or 2016 . 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, 2017 and 2016 , there were no outstanding borrowings from the FRBSF. Based on the amount of qualifying collateral available, borrowing capacity from the FRBSF was $331.5 million at December 31, 2017 . 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, 2017 and 2016 , we had no |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT: At December 31, 2017 and 2016 , the Company had long-term debt balance of $125.3 million and $125.1 million , respectively, consisting of senior notes issued during 2016 and junior subordinated debentures issued in prior years. In 2016, the Company closed on $65.0 million in aggregate principal amount of its 6.50% Senior Notes due 2026 (the “Senior Notes”) at an offering price of 100% plus accrued interest, which represented $63.4 million of long-term debt balance at December 31, 2017 . 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, 2017 . 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 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | 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, 2017 or 2016 . 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, 2017 and 2016 , 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, 2017 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 1,687,658 $ 1,311 $ (1,445 ) Interest rate swaptions 120,000 — — Interest rate lock and purchase loan commitments 472,733 12,950 (25 ) Interest rate swaps 1,869,000 12,171 (23,654 ) Eurodollar futures $ 3,287,000 — (101 ) Total derivatives before netting $ 7,436,391 26,432 (25,225 ) Netting adjustment/Cash collateral (1) (6,646 ) 23,505 Carrying value on consolidated statements of financial condition $ 19,786 $ (1,720 ) At December 31, 2016 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 3,596,677 $ 24,623 $ (15,203 ) Interest rate swaptions 20,000 1 — Interest rate lock and purchase loan commitments 746,102 19,586 (367 ) Interest rate swaps 1,689,850 15,016 (26,829 ) Total derivatives before netting $ 6,052,629 59,226 (42,399 ) Netting adjustment/Cash collateral (1) 10,174 37,836 Carrying value on consolidated statements of financial condition $ 69,400 $ (4,563 ) (1) Includes cash collateral of $16.9 million and $48.0 million at December 31, 2017 and 2016 , respectively, as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. The following tables present gross and net information about derivative instruments. At December 31, 2017 (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 $ 26,432 $ (6,646 ) $ 19,786 $ — $ 19,786 Derivative liabilities $ (25,225 ) $ 23,505 $ (1,720 ) $ 1,213 $ (507 ) At December 31, 2016 (in thousands) Gross fair value Netting adjustments/Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 59,226 $ 10,174 $ 69,400 $ — $ 69,400 Derivative liabilities $ (42,399 ) $ 37,836 $ (4,563 ) $ 1,820 $ (2,743 ) (1) Includes cash collateral of $16.9 million and $48.0 million at December 31, 2017 and 2016 , respectively, as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. 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. Years Ended December 31, (in thousands) 2017 2016 2015 Recognized in noninterest income: Net (loss) gain on loan origination and sale activities (1) $ (28,549 ) $ 12,443 $ 2,080 Loan servicing income (loss) (2) 9,732 (4,680 ) 11,709 Other (3) — 735 — $ (18,817 ) $ 8,498 $ 13,789 (1) Comprised of interest rate lock commitments ("IRLCs") and forward contracts used as an economic hedge of IRLCs and single family mortgage loans held for sale. (2) Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs. |
Mortgage Banking Operations
Mortgage Banking Operations | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING OPERATIONS | MORTGAGE BANKING OPERATIONS: Loans held for sale consisted of the following. At December 31, (in thousands) 2017 2016 Single family $ 577,313 $ 656,334 Multifamily DUS ® (1) 29,651 35,506 SBA 3,938 5,207 CRE Non-DUS ® (1)(2) — 17,512 Total loans held for sale $ 610,902 $ 714,559 (1) Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS" ® ) is a registered trademark of Fannie Mae. (2) Loans originated as Held for Investment. Loans sold consisted of the following. Years Ended December 31, (in thousands) 2017 2016 2015 Single family $ 7,508,949 $ 8,785,412 $ 7,038,635 Multifamily DUS ® (1) 347,084 301,442 204,744 SBA 26,841 17,308 14,275 CRE Non-DUS ® (1)(2) 321,699 150,903 (3 ) 15,038 Total loans sold $ 8,204,573 $ 9,255,065 $ 7,272,692 (1) Fannie Mae Multifamily DUS ® is a registered trademark of Fannie Mae. (2) Loans originated as Held for Investment. (3) Included $63.2 million in single family loans sold transferred to held for investment during 2016. Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Years Ended December 31, (in thousands) 2017 2016 2015 Single family: Servicing value and secondary market gains (1) $ 209,027 $ 260,477 $ 205,513 Loan origination and funding fees 26,822 29,966 22,221 Total single family 235,849 290,443 227,734 Multifamily DUS ® 13,210 11,397 7,125 SBA 2,439 1,414 1,070 CRE Non-DUS ® (2) 4,378 4,059 459 Total gain on loan origination and sale activities $ 255,876 $ 307,313 $ 236,388 (1) Comprised of gains and losses on interest rate lock and purchase loan commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold. (2) Loan originated as 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 that contribute to loan servicing income is presented below at the unpaid principal balance. At December 31, (in thousands) 2017 2016 Single family U.S. government and agency $ 22,123,710 $ 18,931,835 Other 507,437 556,621 22,631,147 19,488,456 Commercial Multifamily DUS ® 1,311,399 1,108,040 Other 79,797 69,323 1,391,196 1,177,363 Total loans serviced for others $ 24,022,343 $ 20,665,819 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. Years Ended December 31, (in thousands) 2017 2016 Balance, beginning of period $ 3,382 $ 2,922 Additions, net of adjustments (1) 174 1,542 Realized losses (2) (541 ) (1,082 ) Balance, end of period $ 3,015 $ 3,382 (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. The Company has agreements with investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $5.3 million and $7.5 million were recorded in other assets as of December 31, 2017 and 2016 , 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, 2017 and 2016 , delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated statements of financial condition totaled $39.3 million and $35.8 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. Years Ended December 31, (in thousands) 2017 2016 2015 Servicing income, net: Servicing fees and other $ 66,192 $ 53,654 $ 42,016 Changes in fair value of single family MSRs due to modeled amortization (1) (35,451 ) (33,305 ) (34,038 ) Amortization of multifamily and SBA MSRs (3,932 ) (2,635 ) (1,992 ) 26,809 17,714 5,986 Risk management, single family MSRs: Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (1,157 ) 20,025 6,555 Net gain (loss) from derivatives economically hedging MSR 9,732 (4,680 ) 11,709 8,575 15,345 18,264 Loan servicing income $ 35,384 $ 33,059 $ 24,250 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. 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 and SBA 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. Years Ended December 31, (rates per annum) (1) 2017 2016 2015 Constant prepayment rate ("CPR") (2) 13.36 % 13.93 % 14.95 % Discount rate (3) 10.27 % 10.28 % 10.29 % (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, 2017 Fair value of single family MSR $ 258,560 Expected weighted-average life (in years) 6.12 Constant prepayment rate (1) 12.40 % Impact on 25 basis points adverse change in interest rates $ (21,004 ) Impact on 50 basis points adverse change in interest rates $ (42,036 ) Discount rate 10.40 % Impact on fair value of 100 basis points increase $ (8,958 ) Impact on fair value of 200 basis points increase $ (17,567 ) (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. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ 226,113 $ 156,604 $ 112,439 Additions and amortization: Originations 68,499 82,789 70,659 Purchases 565 — 989 Changes due to modeled amortization (1) (35,451 ) (33,305 ) (34,038 ) Net additions and amortization 33,613 49,484 37,610 Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (1,166 ) 20,025 6,555 Ending balance $ 258,560 $ 226,113 $ 156,604 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections. 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. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ 19,747 $ 14,651 $ 10,885 Origination 9,915 7,731 5,758 Amortization (3,569 ) (2,635 ) (1,992 ) Ending balance $ 26,093 $ 19,747 $ 14,651 At December 31, 2017 , the expected weighted-average life of the Company’s multifamily MSRs was 10.33 years . Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows. (in thousands) At December 31, 2017 2018 $ 3,527 2019 3,429 2020 3,355 2021 3,146 2022 2,825 2023 and thereafter 9,811 Carrying value of multifamily MSR $ 26,093 |
Commitments, Guarantees, and Co
Commitments, Guarantees, and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, AND CONTINGENCIES | 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, 2017 and 2016 was $56.9 million and $42.6 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 $706.7 million and $603.8 million at December 31, 2017 and 2016 , respectively. Unused home equity and commercial banking funding lines totaled $456.1 million and $289.3 million at December 31, 2017 and 2016 , respectively. The Company has recorded an allowance for credit losses on loan commitments, included in accounts payable and other liabilities on the consolidated statements of financial condition, of $1.3 million and $1.3 million at December 31, 2017 and 2016 , respectively. The Company is in certain agreements to invest in qualifying small businesses and small enterprises that have not been recognized in the Company's financial statements. At December 31, 2017 and 2016 we had a $11.0 million and $4.0 million , respectively, future commitment to invest in these enterprises. The Company is obligated under non-cancelable leases for office space and leased equipment. Generally, the office leases also contain five-year renewal and space options. Rental expense under non-cancelable operating leases totaled $26.1 million , $22.7 million , and $20.1 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Minimum rental payments for all non-cancelable leases were as follows. (in thousands) At December 31, 2017 2018 $ 26,477 2019 23,685 2020 20,904 2021 17,757 2022 14,995 2023 and thereafter 48,752 Total minimum payments $ 152,570 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, 2017 and 2016 , the total unpaid principal balance of loans sold under this program was $1.31 billion and $1.11 billion , respectively. The Company’s reserve liability related to this arrangement totaled $2.0 million and $1.8 million at December 31, 2017 and 2016 , respectively. There were no actual losses incurred under this arrangement during the years ended December 31, 2017 , 2016 and 2015 . Mortgage repurchase liability In the ordinary course of business, the Company sells residential mortgage loans to GSEs and other entities. In addition, the Company pools FHA-insured and VA-guaranteed mortgage loans into Ginnie Mae, Fannie Mae and Freddie Mac guaranteed mortgage-backed securities. The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. These obligations expose the Company to mark-to-market and credit losses on the repurchased mortgage loans after accounting for any mortgage insurance that we may receive. Generally, the maximum amount of future payments the Company would be required to make for breaches of these representations and warranties would be equal to the unpaid principal balance of such loans that are deemed to have defects that were sold to purchasers plus, in certain circumstances, accrued and unpaid interest on such loans and certain expenses. The Company does not typically receive repurchase requests from the FHA or VA. As an originator of FHA-insured or VA-guaranteed loans, the Company is responsible for obtaining the insurance with 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 $22.71 billion and $19.56 billion as of December 31, 2017 and 2016 , respectively. At December 31, 2017 and 2016 , the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, included in accounts payable and other liabilities on the consolidated statements of financial condition, of $3.0 million and $3.4 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, 2017 , 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 material loss. As a result, the Company did not have any material amounts reserved for legal claims as of December 31, 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: On December 22, 2017, President Trump signed into law a major tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform Act"). The Tax Reform Act reduces the U.S. federal corporate income tax rate from 35 percent to 21 percent and makes many other changes to the U.S. tax code. Upon enactment, we were required to revalue our deferred tax assets and liabilities at the new statutory tax rate. As a result of this revaluation, we have recognized a one-time, non-cash, $23.3 million deferred income tax benefit in our 2017 year-end provision. Income tax (benefit) expense consisted of following: Years Ended December 31, (in thousands) 2017 2016 2015 Current (benefit) expense Federal $ (649 ) $ (1,154 ) $ (1,469 ) State and local 62 1,595 668 Deferred expense (benefit) Federal 17,637 27,538 15,301 Revaluation of deferred items (23,325 ) — — State and local 528 3,058 602 Tax credit investment amortization 2,990 1,589 486 Total income tax (benefit) expense $ (2,757 ) $ 32,626 $ 15,588 Income tax (benefit) expense differed from amounts computed at the federal income tax statutory rate as follows: Years Ended December 31, (in thousands) 2017 2016 2015 Income taxes at statutory rate $ 23,166 $ 31,772 $ 19,917 State income tax expense net of federal tax benefit 1,207 2,073 715 Tax-exempt interest (2,855 ) (2,177 ) (1,307 ) Tax credits (2,041 ) (1,389 ) (903 ) Amortization of and pass-through losses from low income housing investments 1,716 1,018 658 Change in state rate (714 ) 811 722 Bargain purchase gain — — (2,704 ) Reversal of deferred tax consequences on historical AFS (2 ) — (1,107 ) Impact from Federal Rate Change (23,325 ) — — Uncertain tax positions 76 — — Other, net 15 518 (403 ) Total income tax (benefit) expense $ (2,757 ) $ 32,626 $ 15,588 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 following is a summary of the Company’s significant portions of deferred tax assets and liabilities: At December 31, (in thousands) 2017 2016 Deferred tax assets: Provision for loan losses $ 11,844 $ 18,123 Federal and state net operating loss carryforwards 3,914 7,073 Other real estate owned — 1,196 Accrued liabilities 4,747 4,453 Other investments 145 283 Leases 2,336 3,121 Unrealized loss on investment available for sale securities 2,286 5,714 Tax credits 1,695 1,369 Stock-based compensation 993 1,164 Loan valuation 1,857 4,547 Other, net 1,158 2,163 30,975 49,206 Deferred tax liabilities: Mortgage servicing rights (58,195 ) (76,680 ) FHLB dividends (316 ) (522 ) Deferred loan fees and costs (3,828 ) (3,653 ) Premises and equipment (5,267 ) (6,960 ) Intangibles (1,371 ) (2,813 ) Other, net (141 ) (107 ) (69,118 ) (90,735 ) Net deferred tax liability $ (38,143 ) $ (41,529 ) 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. The Company’s net deferred tax liability is now significantly lower compared to the prior year, due primarily to the new lower federal income tax rate effective January 1, 2018. 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, 2017 management determined that sufficient evidence exists to support the future utilization of all of the Company’s deferred tax assets. Utilization of the federal and state net operating loss and tax credit carryforwards may be subject to an annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986, as amended. 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 the companies that it has acquired in prior years. At December 31, 2017 and 2016 , the Company has federal net operating loss carryforwards totaling $10.8 million and $16.1 million , respectively, which expire between 2029 and 2036 . In addition, as of December 31, 2017 , the Company has minimum tax credits of $1.6 million which never expire. The Tax Reform Act repeals the corporate alternative minimum tax rules and makes any unused minimum tax credit partially refundable in the tax years 2018 - 2020, and fully refundable in the tax year 2021. Accordingly, we expect to utilize all of the remaining minimum tax credit before 2022. We also have state net operating loss carryforwards as of December 31, 2017 and 2016 of $17.4 million and $14.0 million , respectively, that expire between 2018 and 2036 . Retained earnings at December 31, 2017 and 2016 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 both federal and state tax liabilities on this pre-1988 bad debt reserve balance at the then prevailing corporate tax rates. The Company has recorded unrecognized tax positions of $514 thousand and $438 thousand as of December 31, 2017 and 2016 , respectively, both periods including potential interest of $19 thousand . Any resolution of our unrecognized tax positions would impact our effective tax rate. We periodically evaluate our exposures associated with our filing positions. During 2017, we updated the amount of recorded potential liability based on actual proposed adjustments received from the relevant tax authority. We expect our uncertain tax positions will be settled within the next 12 months. A reconciliation of our unrecognized tax positions, excluding accrued interest and penalties, for the years ended December 31, 2017 , 2016 and 2015 is as follows: Years Ended December 31, (in thousands) 2017 2016 2015 Balance, beginning of year $ 419 $ 419 $ — Increases related to prior year tax positions 76 — 419 Balance, end of year $ 495 $ 419 $ 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 is no longer subject to federal income tax examinations for tax years prior to 2014 or state income tax examination for tax years prior to 2012. |
401(k) Savings Plan
401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
401 (k) Savings Plan | 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, 2017 , 2016 , and 2015 , included employer contributions of $8.5 million , $7.7 million and $6.1 million |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Plans | SHARE-BASED COMPENSATION PLANS: For the years ended December 31, 2017 , 2016 , and 2015 , the Company recognized $2.5 million , $1.8 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, 2017 is as follows: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (2) (in thousands) Options outstanding at December 31, 2016 268,547 $ 12.00 5.2 years $ 5,263 Exercised (1,000 ) 11.00 0.0 years 15 Options outstanding at December 31, 2017 267,547 12.01 4.2 years 4,533 Options that are exercisable and expected to be exercisable (1) 267,547 12.01 4.2 years 4,533 Options exercisable 267,547 $ 12.01 4.2 years $ 4,533 (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, 1,000 options have been exercised during the year ended December 31, 2017 , resulting in cash received and related income tax benefits totaling $16 thousand . As of December 31, 2017 , there were no unrecognized compensation costs related to stock options. Compensation costs are recognized over the requisite service period, which typically is the vesting period. 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. There were no options granted during the years ended December 31, 2017 , 2016 and 2015 . 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, 2016 256,454 $ 19.34 Granted 163,070 27.06 Cancelled or forfeited (38,146 ) 22.36 Vested (74,703 ) 18.76 Restricted shares outstanding at December 31, 2017 306,675 23.21 At December 31, 2017 , there was $3.8 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 2017 and 2016 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 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 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 ® ) and other The sale price is set at the time the loan commitment is made, and as such subsequent changes in market conditions have a very limited effect, if any, on the value of these loans carried on the consolidated statements of financial condition, which are typically sold within 30 days of origination. Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 2. Asset/Liability class Valuation methodology, inputs and assumptions Classification Loans held for investment Loans held for investment, excluding collateral dependent loans and loans transferred from held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments For the carrying value of loans see Note 1–Summary of Significant Accounting Policies. 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 and SBA 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 Eurodollar futures Fair value is based on closing exchange prices. Level 1 recurring fair value measurement. 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 and purchase loan commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement. Asset/Liability class Valuation methodology, inputs and assumptions Classification Other real estate owned (“OREO”) Fair value is based on appraised value of collateral, less the estimated cost to sell. See discussion of "loans held for investment, collateral dependent" above for further information on appraisals. Carried at lower of amortized cost or fair value of collateral (Level 3), less the estimated cost to sell. Federal Home Loan Bank stock Carrying value approximates fair value as FHLB stock can only be purchased or redeemed at par value. Carried at par value. Estimated fair value classified as Level 2. Deposits Demand deposits Fair value is estimated as the amount payable on demand at the reporting date. Carried at historical cost. Estimated fair value classified as Level 2. Fixed-maturity certificates of deposit Fair value is estimated using discounted cash flows based on market rates currently offered for deposits of similar remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Federal Home Loan Bank advances Fair value is estimated using discounted cash flows based on rates currently available for advances with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Long-term debt Fair value is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. The following tables present 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, 2017 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 130,090 $ — $ 130,090 $ — Commercial 23,694 — 23,694 — Municipal bonds 388,452 — 388,452 — Collateralized mortgage obligations: Residential 160,424 — 160,424 — Commercial 98,569 — 98,569 — Corporate debt securities 24,737 — 24,737 — U.S. Treasury securities 10,652 — 10,652 — Agency debentures 9,650 — 9,650 — Single family mortgage servicing rights 258,560 — — 258,560 Single family loans held for sale 577,313 — 575,977 1,336 Single family loans held for investment 5,477 — — 5,477 Derivatives Forward sale commitments 1,311 — 1,311 — Interest rate lock and purchase loan commitments 12,950 — — 12,950 Interest rate swaps 12,172 — 12,172 — Total assets $ 1,714,051 $ — $ 1,435,728 $ 278,323 Liabilities: Derivatives Eurodollar futures $ 101 $ 101 $ — $ — Forward sale commitments 1,445 — 1,445 — Interest rate lock and purchase loan commitments 25 — — 25 Interest rate swaps 23,654 — 23,654 — Total liabilities $ 25,225 $ 101 $ 25,099 $ 25 (in thousands) Fair Value at December 31, 2016 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 177,074 $ — $ 177,074 $ — Commercial 25,536 — 25,536 — Municipal bonds 467,673 — 467,673 — Collateralized mortgage obligations: Residential 191,201 — 191,201 — Commercial 70,764 — 70,764 — Corporate debt securities 51,122 — 51,122 — U.S. Treasury securities 10,620 — 10,620 — Single family mortgage servicing rights 226,113 — — 226,113 Single family loans held for sale 656,334 — 614,524 41,810 Single family loans held for investment 17,988 — — 17,988 Derivatives Forward sale commitments 24,623 — 24,623 — Interest rate swaptions 1 — 1 — Interest rate lock and purchase loan commitments 19,586 — — 19,586 Interest rate swaps 15,016 — 15,016 — Total assets $ 1,953,651 $ — $ 1,648,154 $ 305,497 Liabilities: Derivatives Forward sale commitments $ 15,203 $ — $ 15,203 $ — Interest rate lock and purchase loan commitments 367 — — 367 Interest rate swaps 26,829 — 26,829 — Total liabilities $ 42,399 $ — $ 42,032 $ 367 There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2017 and 2016 . Level 3 Recurring Fair Value Measurements The Company's level 3 recurring fair value measurements consist of single family mortgage servicing rights, single family loans held for investment where fair value option was elected, certain single family loans held for sale, and interest rate lock and purchase loan commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the years ended December 31, 2017 and 2016 , 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. The Company transferred certain loans from held for sale to held for investment. These loans were originated as held for sale loans where the Company had elected fair value option. The Company determined these loans to be level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $5.5 million and $18.0 million at December 31, 2017 and December 31, 2016 , respectively. 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, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 5,477 Income approach Implied spread to benchmark interest rate curve 3.61% 4.96% 4.10% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 17,988 Income approach Implied spread to benchmark interest rate curve 3.62% 4.97% 4.49% The following information presents significant Level 3 unobservable inputs used to measure fair value of certain single family loans held for sale where fair value option was elected. (dollars in thousands) At December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 1,336 Income approach Implied spread to benchmark interest rate curve 3.93% 3.93% 3.93% Market price movement from comparable bond (0.38)% (0.10)% (0.24)% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 41,810 Income approach Implied spread to benchmark interest rate curve 3.46% 6.14% 4.23% Market price movement from comparable bond (0.49)% (0.11)% (0.27)% The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments. Years Ended December 31, (in thousands) 2017 2016 Beginning balance, net $ 19,219 $ 17,711 Total realized/unrealized gains 126,082 146,462 Settlements (132,376 ) (144,954 ) Ending balance, net $ 12,925 $ 19,219 The following table presents fair value changes and activity for Level 3 loans held for sale and loans held for investment. Year Ended December 31, 2017 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 41,810 $ 4,327 $ 12,797 $ (58,396 ) $ 798 $ 1,336 Loans held for investment 17,988 127 (12,272 ) (480 ) 114 5,477 Year Ended December 31, 2016 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 49,322 $ 14,454 $ (4,913 ) $ (14,524 ) $ (2,529 ) $ 41,810 Loans held for investment 21,544 357 4,913 (7,608 ) (1,218 ) 17,988 The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock and purchase loan commitments. (dollars in thousands) At December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 12,925 Income approach Fall out factor —% 58.38% 12.05% Value of servicing 0.69% 1.73% 1.09% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 19,219 Income approach Fall out factor 0.50% 60.34% 11.95% Value of servicing 0.65% 2.27% 1.08% 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 year ended December 31, 2017 , the Company recorded adjustments ranging from 0.00% to 100.00% to the appraisal values of certain commercial loans held for investment that are collateralized by real estate. During the year ended December 31, 2016 , 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 and to the appraisal value of OREO. During the year ended December 31, 2017 , the Company applied a range of stated value adjustments of 0.0% to 100.0% to the stated value of commercial loans held for investment, with a weighted average of 46.7% . During the year ended December 31, 2016 , the Company applied a range of stated value adjustments of 7.0% to 63.4% to the stated value of commercial loans held for investment, with a weighted average of 57.5% and a range of 0.0% to 49.1% to the appraisal value of OREO, with a weighted average of 17.9% . During the year ended December 31, 2017 , 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, 2017 and 2016 and what we still held at the end of the respective reporting period. Year Ended December 31, 2017 (in thousands) Fair Value of Assets Held at December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 1,918 $ — $ — $ 1,918 $ (163 ) Total $ 1,918 $ — $ — $ 1,918 $ (163 ) Year Ended December 31, 2016 (in thousands) Fair Value of Assets Held at December 31, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 4,586 $ — $ — $ 4,586 $ (881 ) Other real estate owned (2) 5,933 — — 5,933 (1,332 ) Total $ 10,519 $ — $ — $ 10,519 $ (2,213 ) (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, 2017 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 72,718 $ 72,718 $ 72,718 $ — $ — Investment securities held to maturity 58,036 58,128 — 58,128 — Loans held for investment 4,500,989 4,497,884 — — 4,497,884 Loans held for sale – multifamily and other 33,589 33,589 — 33,589 — Mortgage servicing rights – multifamily 26,093 28,362 — — 28,362 Federal Home Loan Bank stock 46,639 46,639 — 46,639 — Liabilities: Deposits $ 4,760,952 $ 4,739,563 $ — $ 4,739,563 $ — Federal Home Loan Bank advances 979,201 981,441 — 981,441 — Long-term debt 125,274 108,530 — 108,530 — At December 31, 2016 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 53,932 $ 53,932 $ 53,932 $ — $ — Investment securities held to maturity 49,861 49,488 — 49,488 — Loans held for investment 3,801,039 3,840,990 — — 3,840,990 Loans held for sale – transferred from held for investment 17,512 17,512 — — 17,512 Loans held for sale – multifamily and other 40,712 40,712 — 40,712 — Mortgage servicing rights – multifamily 19,747 21,610 — — 21,610 Federal Home Loan Bank stock 40,347 40,347 — 40,347 — Liabilities: Deposits $ 4,429,701 $ 4,410,213 $ — $ 4,410,213 $ — Federal Home Loan Bank advances 868,379 870,782 — 870,782 — Long-term debt 125,147 122,357 — 122,357 — |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share. Years Ended December 31, (in thousands, except share and per share data) 2017 2016 2015 Net income $ 68,946 $ 58,151 $ 41,319 Weighted average shares: Basic weighted-average number of common shares outstanding 26,864,657 24,615,990 20,818,045 Dilutive effect of outstanding common stock equivalents (1) 227,362 227,693 241,156 Diluted weighted-average number of common stock outstanding 27,092,019 24,843,683 21,059,201 Earnings per share: Basic earnings per share $ 2.57 $ 2.36 $ 1.98 Diluted earnings per share $ 2.54 $ 2.34 $ 1.96 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2017 , 2016 and 2015 were certain stock options and unvested restricted stock issued to key senior management personnel and directors of the Company. The aggregate number of common stock equivalents related to such options and unvested restricted shares, which could potentially be dilutive in future periods, was 3,224 , zero and zero at December 31, 2017 , 2016 and 2015 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS: The Company's business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is currently evaluated by management. The Company organizes the segments into two lines of business: Commercial and Consumer Banking Segment and Mortgage Banking Segment. A description of the Company's business segments and the products and services that they provide is as follows. Commercial and Consumer Banking provides diversified financial products and services to our commercial and consumer customers through bank branches and through ATMs, online, mobile and telephone banking. These products and services include deposit products; residential, consumer, business and agricultural portfolio loans; non-deposit investment products; insurance products and cash management services. We originate construction loans, bridge loans and permanent loans for our portfolio primarily on single family residences, and on office, retail, industrial and multifamily property types. We originate multifamily real estate loans through our Fannie Mae DUS business, whereby loans are sold to or securitized by Fannie Mae, while the Company generally retains the servicing rights. This segment also reflects the results for the management of the Company's portfolio of investment securities. Mortgage Banking originates single family residential mortgage loans for sale in the secondary markets. The majority of our mortgage loans are sold to or securitized by Fannie Mae, Freddie Mac or Ginnie Mae, while we retain the right to service these loans. We have become a rated originator and servicer of jumbo loans, allowing us to sell these loans to other securitizers. Additionally, we purchase loans from WMS Series LLC through a correspondent arrangement with that company. We also sell loans on a servicing-released and servicing-retained basis to securitizers and correspondent lenders. A small percentage of our loans are brokered to other lenders or sold on a servicing-released basis to correspondent lenders. On occasion, we may sell a portion of our MSR portfolio. We reflect the results from the management of loan funding and the interest rate risk associated with the secondary market loan sales and the retained single family mortgage servicing rights within this business segment. 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, 2017 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 19,896 $ 174,542 $ 194,438 Provision for credit losses — 750 750 Noninterest income 269,794 42,360 312,154 Noninterest expense 290,676 148,977 439,653 (Loss) income before income taxes (986 ) 67,175 66,189 Income tax (benefit) expense (27,871 ) 25,114 (2,757 ) Net income $ 26,885 $ 42,061 $ 68,946 Total assets $ 866,712 $ 5,875,329 $ 6,742,041 Year Ended December 31, 2016 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 26,034 $ 154,015 $ 180,049 Provision for credit losses — 4,100 4,100 Noninterest income 323,468 35,682 359,150 Noninterest expense 305,937 138,385 444,322 Income before income taxes 43,565 47,212 90,777 Income tax expense 16,214 16,412 32,626 Net income $ 27,351 $ 30,800 $ 58,151 Total assets $ 974,248 $ 5,269,452 $ 6,243,700 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 (1) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): The following table shows changes in accumulated other comprehensive income (loss) from unrealized gain (loss) on available-for-sale securities, net of tax. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ (10,412 ) $ (2,449 ) $ 1,546 Other comprehensive income (loss) before reclassifications 3,607 (6,313 ) (1,325 ) Amounts reclassified from accumulated other comprehensive income (loss) (317 ) (1,650 ) (2,670 ) Net current-period other comprehensive income (loss) 3,290 (7,963 ) (3,995 ) Ending balance $ (7,122 ) $ (10,412 ) $ (2,449 ) 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 (Loss) Years Ended December 31, (in thousands) 2017 2016 2015 Gain on sale of investment securities available for sale $ 489 $ 2,539 $ 2,406 Income tax expense (benefit) 172 889 (264 ) Total, net of tax $ 317 $ 1,650 $ 2,670 |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | PARENT COMPANY FINANCIAL STATEMENTS: Condensed financial information for HomeStreet, Inc. is as follows. Condensed Statements of Financial Condition At December 31, (in thousands) 2017 2016 Assets: Cash and cash equivalents $ 14,101 $ 12,260 Other assets 7,319 9,700 Investment in stock of subsidiaries 807,398 732,135 Total assets $ 828,818 $ 754,095 Liabilities: Other liabilities $ 1,021 $ 1,521 Long-term debt 123,417 123,290 Total liabilities 124,438 124,811 Shareholders’ Equity: Preferred stock, no par value — — Common stock, no par value 511 511 Additional paid-in capital 339,009 336,149 Retained earnings 371,982 303,036 Accumulated other comprehensive loss (7,122 ) (10,412 ) Total stockholder's equity 704,380 629,284 Total liabilities and stockholder's equity $ 828,818 $ 754,095 Condensed Statements of Operations Years Ended December 31, (in thousands) 2017 2016 2015 Net interest expense $ (4,625 ) $ (2,680 ) $ (1,036 ) Noninterest income 1,904 1,622 1,686 (Loss) income before income tax benefit and equity in income of subsidiaries (2,721 ) (1,058 ) 650 Dividend from subsidiaries to parent 4,000 4,697 13,181 1,279 3,639 13,831 Noninterest expense 6,681 7,746 7,239 (Loss) income before income tax benefit (5,402 ) (4,107 ) 6,592 Income tax benefit (3,381 ) (4,656 ) (561 ) Income from subsidiaries 70,967 57,602 34,166 Net income $ 68,946 $ 58,151 $ 41,319 Other comprehensive income (loss) 3,290 (7,963 ) (3,995 ) Comprehensive income $ 72,236 $ 50,188 $ 37,324 Condensed Statements of Cash Flows Years Ended December 31, (in thousands) 2017 2016 2015 Net cash (used in) provided by operating activities $ (3,395 ) $ 990 $ 2,654 Cash flows from investing activities: Net purchases of and proceeds from investment securities 2,546 (5,029 ) 673 Net payments for investments in and advances to subsidiaries 2,685 (116,090 ) (992 ) Net cash provided by (used in) investing activities 5,231 (121,119 ) (319 ) Cash flows from financing activities: Proceeds from issuance of common stock 11 2,713 177 Proceeds from issuance of long-term debt — 63,184 — Proceeds from equity raise — 58,713 — Dividends paid — — (5 ) Proceeds from and repayment of advances from subsidiaries — 2 — Other, net (6 ) — — Net cash provided by financing activities 5 124,612 172 Increase in cash and cash equivalents 1,841 4,483 2,507 Cash and cash equivalents at beginning of year 12,260 7,777 5,270 Cash and cash equivalents at end of year $ 14,101 $ 12,260 $ 7,777 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | UNAUDITED QUARTERLY FINANCIAL DATA: Our supplemental quarterly consolidated financial information is as follows. Quarter Ended (in thousands, except share data) Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 Mar. 31, 2016 Interest income $ 63,686 $ 61,981 $ 56,742 $ 55,274 $ 56,862 $ 55,330 $ 51,291 $ 46,054 Interest expense 12,607 11,141 9,874 9,623 8,788 8,528 6,809 5,363 Net interest income 51,079 50,840 46,868 45,651 48,074 46,802 44,482 40,691 Provision for credit losses — 250 500 — 350 1,250 1,100 1,400 Net interest income after provision for credit losses 51,079 50,590 46,368 45,651 47,724 45,552 43,382 39,291 Noninterest income 72,801 83,884 81,008 74,461 73,221 111,745 102,476 71,708 Noninterest expense 106,838 114,697 111,244 106,874 117,539 114,399 111,031 101,353 Income before income tax (benefit) expense 17,042 19,777 16,132 13,238 3,406 42,898 34,827 9,646 Income tax (benefit) expense (17,873 ) 5,938 4,923 4,255 1,112 15,197 13,078 3,239 Net income $ 34,915 $ 13,839 $ 11,209 $ 8,983 $ 2,294 $ 27,701 $ 21,749 $ 6,407 Basic earnings per share $ 1.30 $ 0.51 $ 0.42 $ 0.33 $ 0.09 $ 1.12 $ 0.88 $ 0.27 Diluted earnings per share $ 1.29 $ 0.51 $ 0.41 $ 0.33 $ 0.09 $ 1.11 $ 0.87 $ 0.27 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING: In 2017, we i mplemented a restructuring plan in our Mortgage Banking Segment to reduce our operating cost structure and improve efficiency. In 2017, we recorded a total restructuring charge of $3.7 million , consisting of facility related cost of $3.1 million and severance cost of $648 thousand . The charges are included in the occupancy and the salaries and related costs line items on our consolidated statement of operations for that period. The following table summarizes the restructuring charges, the restructuring costs paid or settled during the year ended December 31, 2017, and the Company's net remaining liability balance at December 31, 2017. (in thousands) Facility related costs Personnel related costs Total Balance at December 31, 2016 $ — $ — $ — Restructuring charges 3,072 648 3,720 Costs paid or otherwise settled (1,686 ) (648 ) (2,334 ) Balance at December 31, 2017 $ 1,386 $ — $ 1,386 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS: The Company has evaluated the effects of events that have occurred subsequent to the year ended December 31, 2017 , and has included all material events that would require recognition in the 2017 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | 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 $4.4 million and $4.0 million at December 31, 2017 and 2016 , respectively, is included in cash and cash equivalents for FNMA DUS pledged securities and related reserves. In addition, restricted cash of $1.2 million and $2.4 million at December 31, 2017 and 2016 , respectively, is included in accounts receivable and other assets for reinsurance-related reserves. |
Investment Securities | Investment Securities We classify investment securities as trading, held to maturity ("HTM"), or available for sale ("AFS") at the date of acquisition. Purchases and sales of securities are generally recorded on a trade-date basis. We include and record certain certificates of deposit that meet the definition of a security as HTM investments. Investment securities that we might not hold until maturity are classified as 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 cost basis. Debt securities are classified as HTM if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for amortization of purchase premiums and accretion of purchase discounts. Transfers of securities from available for sale to held to maturity are accounted for at fair value as of the date of the transfer. The difference between the fair value and the par value at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in OCI, and is amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held to maturity security. 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. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock |
Loans Held for Sale | 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 (originated with the intent to be 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 originated 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. |
Loans Held for Investment | 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) or straight-line 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. |
Nonaccrual Loans | 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. |
Impaired Loans | Impaired LoansA 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 | 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. |
Allowance for Credit Losses | 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, non-owner occupied, multifamily residential, construction/land development, owner occupied 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 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 | 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 and SBA 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 expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the single family MSRs asset. For further 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 |
Investment in WMS Series LLC | 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 28 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. Equity method investment income from WMS LLC was $598 thousand , $2.7 million , and $2.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company’s investment in WMS LLC was $2.0 million and $2.7 million , which is included in accounts receivable and other assets at December 31, 2017 and 2016 , 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 $844 thousand , $370 thousand , and $(960) thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. Income related to WMS LLC, including equity method investment income, is classified as income from WMS Series LLC in noninterest income within the consolidated statements of operations. The Company purchased $574.3 million , $589.2 million and $616.9 million of single family mortgage loans from WMS LLC for the years ended December 31, 2017 , 2016 and 2015 , 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 $6.1 million and $6.9 million at December 31, 2017 , and 2016 , respectively. The highest outstanding balance of the secured line of credit was $13.0 million and $17.0 million during 2017 and 2016 , respectively. The line of credit matures July 1, 2018 . |
Premises and Equipment | 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 39 years, using the straight-line method. Management periodically evaluates furniture and equipment and leasehold improvements for impairment. |
Goodwill | 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, 2017 or 2016 , nor was any goodwill written off due to impairment during 2017 , 2016 or 2015 |
Trust Preferred Securities | 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 Variable Interest Entity ("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 of the subordinated debentures with the proceeds from the sale of its common and preferred securities. |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 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 Taxes | 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 and Hedging Activities | 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, 2017 , 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 Employee Compensation | 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 |
Fair Value Measurement | 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 . 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 ® ) and other The sale price is set at the time the loan commitment is made, and as such subsequent changes in market conditions have a very limited effect, if any, on the value of these loans carried on the consolidated statements of financial condition, which are typically sold within 30 days of origination. Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 2. Asset/Liability class Valuation methodology, inputs and assumptions Classification Loans held for investment Loans held for investment, excluding collateral dependent loans and loans transferred from held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments For the carrying value of loans see Note 1–Summary of Significant Accounting Policies. 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 and SBA 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 Eurodollar futures Fair value is based on closing exchange prices. Level 1 recurring fair value measurement. 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 and purchase loan commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement. Asset/Liability class Valuation methodology, inputs and assumptions Classification Other real estate owned (“OREO”) Fair value is based on appraised value of collateral, less the estimated cost to sell. See discussion of "loans held for investment, collateral dependent" above for further information on appraisals. Carried at lower of amortized cost or fair value of collateral (Level 3), less the estimated cost to sell. Federal Home Loan Bank stock Carrying value approximates fair value as FHLB stock can only be purchased or redeemed at par value. Carried at par value. Estimated fair value classified as Level 2. Deposits Demand deposits Fair value is estimated as the amount payable on demand at the reporting date. Carried at historical cost. Estimated fair value classified as Level 2. Fixed-maturity certificates of deposit Fair value is estimated using discounted cash flows based on market rates currently offered for deposits of similar remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Federal Home Loan Bank advances Fair value is estimated using discounted cash flows based on rates currently available for advances with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Long-term debt Fair value is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. |
Commitments, Guarantees, and Contingencies | 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 government-sponsored enterprise ("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 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 | 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, |
Business Segments | 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 |
Advertising Expense | Advertising Expense Advertising costs, which we consider to be media and marketing materials, are expensed as incurred. We incurred $6.8 million , $7.4 million and $8.5 million in advertising expense during the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Recent Accounting Developments | Recent Accounting Developments In February 2018 the Financial Accounting Standards Board ('"FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, or ASU 2018-02. The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Update does not have any impact on the underlying ASC 740 guidance that requires the effect of a change in tax law be included in income from continuing operations. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. In August 2017 the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, or ASU 2017-12. This standard better aligns an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedge instruments and the hedged item in the financial statements. Adoption for this ASU is required for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. In March 2017 the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and other Costs (Subtopic 320-20): Premium Amortization on Purchased Callable Debt Securities, or ASU 2017-08. This standard shortens the amortization period for the premium to the earliest call date to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. Adoption of ASU 2017-08 is required for fiscal years and interim periods within those fiscal years, beginning after December, 15, 2018, early adoption is permitted. The Company is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Adoption of ASU 2017-04 is required for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption being permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted for transactions that occurred before the issuance date or effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance. The standard must be applied prospectively. Upon adoption, the standard will impact how we assess acquisitions (or disposals) of assets or businesses. Management does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements. On November 17, 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash: a Consensus of the FASB Emerging Issues Task Force. This ASU requires a company’s cash flow statement to explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash, and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. This ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. Management does not anticipate that this guidance will have a material impact on the Company's consolidated financial statements. On August 26, 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230):, Classification of Certain Cash Receipts and Cash Payments . The amendments in this ASU were issued to reduce diversity in how certain cash receipts and payments are presented and classified in the statement of cash flows in eight specific areas. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and should be applied using a retrospective transition method to each period presented. Early application was permitted upon issuance of the ASU. Management is currently evaluating the impact of this ASU but does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments . Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendment affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial asset not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is still evaluating the effects this ASU will have on the Company’s consolidated financial statements. The Company has formed an internal committee to oversee the project. Upon adoption, the Company expects a change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The new guidance may result in an increase in the allowance for loan losses; however, management is still assessing the magnitude of the increase and its impact on the Company's consolidated financial statements. In addition, the current accounting policy and procedures for other-than-temporary impairment on investment securities available for sale will be replaced with an allowance approach. The Company has begun developing and implementing processes to address the amendments of this ASU. On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The amendments in this ASU require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. This ASU simplifies the accounting for sale and leaseback transactions. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application was permitted upon issuance of the ASU. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. During 2018, a proposed ASU was issued by the FASB that provides a practical expedient that would allow companies to use an optional transition method, which would allow for a cumulative adjustment to retained earnings during the period of adoption and prior periods would not require restatement. Management is currently evaluating the provisions of this guidance to determine the potential impact the new standard will have on the Company's consolidated financial statements. While we have not quantified the impact to our balance sheet, upon the adoption of this ASU we expect to report increased assets and liabilities on our Consolidated Statement of Financial Condition as a result of recognizing right-of-use assets and lease liabilities related to these leases and certain equipment under non-cancelable operating lease agreements, which currently are not on our Consolidated Statement of Financial Condition. In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value under certain circumstances and require enhanced disclosures about those investments. This ASU simplifies the impairment assessment of equity investments without readily determinable fair values. This ASU also eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the consolidated statement of financial position. The amendments in this ASU require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this ASU require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the consolidated statement of financial position or in the accompanying notes to the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The implementation of this guidance will not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU clarifies the principles for recognizing revenue from contracts with customers. On August 12, 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. On March 17, 2016, the FASB issued Accounting Standards Update 2016-08 to clarify the implementation guidance on principal versus agent considerations. We intend to adopt this new guidance on January 1, 2018. We completed an analysis that includes (1) identification of all revenue streams included in the financial statements; (2) of the revenue streams identified, determine which are within the scope of the pronouncement; (3) determination of size, timing and amount of revenue recognition for streams of income within the scope of this pronouncement; (4) determination of the sample size of contracts for further analysis; and (5) completion of analysis on sample of contracts to evaluate the impact of the new guidance. Based on this analysis, we developed processes and procedures in 2017 to address the amendments of this ASU, including new disclosures. The implementation of this guidance will not have a material impact on our consolidated financial statements. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill are detailed in the following table: (in thousands) Goodwill balance at December 31, 2015 $ 11,521 Acquisitions 10,654 Goodwill balance at December 31, 2016 22,175 Acquisitions 389 Goodwill balance at December 31, 2017 $ 22,564 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Identified Assets Acquired and Liabilities Assumed | 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 ) |
Schedule of Acquisition Related Costs | The following table provides a breakout of Simplicity merger-related expense for the year ended December 31, 2015 : Year Ended December 31, (in thousands) 2015 Noninterest expense Salaries and related costs $ 7,669 General and administrative 1,256 Legal 530 Consulting 5,539 Occupancy 335 Information services 481 Total noninterest expense $ 15,810 |
Regulatory Capital Requiremen36
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Bank’s and the Company's capital amounts and ratios under Basel III are included in the following tables: At December 31, 2017 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 $ 649,864 9.67 % $ 268,708 4.0 % $ 335,885 5.0 % Common equity risk-based capital (to risk-weighted assets) 649,864 13.22 221,201 4.5 319,512 6.5 Tier 1 risk-based capital 649,864 13.22 294,935 6.0 393,246 8.0 Total risk-based capital 688,981 14.02 393,246 8.0 491,558 10.0 At December 31, 2017 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 $ 614,624 9.12 % $ 269,534 4.0 % $ 336,918 5.0 % Common equity risk-based capital (to risk-weighted assets) 555,120 9.86 253,293 4.5 365,868 6.5 Tier 1 risk-based capital 614,624 10.92 337,724 6.0 450,299 8.0 Total risk-based capital 653,741 11.61 450,299 8.0 562,873 10.0 At December 31, 2016 HomeStreet Bank Actual For Minimum Capital Adequacy Purposes To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio Tier 1 leverage capital $ 635,988 10.26 % $ 248,055 4.0 % $ 310,069 5.0 % Common equity risk-based capital (to risk-weighted assets) 635,988 13.92 205,615 4.5 297,000 6.5 Tier 1 risk-based capital (to risk-weighted assets) 635,988 13.92 274,154 6.0 365,538 8.0 Total risk-based capital 671,252 14.69 365,538 8.0 456,923 10.0 At December 31, 2016 HomeStreet, Inc. Actual For Minimum Capital Adequacy Purposes To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions (in thousands) Amount Ratio Amount Ratio Amount Ratio Tier 1 leverage capital $ 608,988 9.78 % $ 249,121 4.0 % $ 311,402 5.0 % Common equity risk-based capital (to risk-weighted assets) 550,510 10.54 234,965 4.5 339,395 6.5 Tier 1 risk-based capital 608,988 11.66 313,287 6.0 417,716 8.0 Total risk-based capital 644,252 12.34 417,716 8.0 522,146 10.0 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Value of Investment Securities | The following tables sets forth certain information regarding the amortized cost and fair values of our investment securities available for sale and held to maturity. At December 31, 2017 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 133,654 $ 4 $ (3,568 ) $ 130,090 Commercial 24,024 8 (338 ) 23,694 Municipal bonds 389,117 2,978 (3,643 ) 388,452 Collateralized mortgage obligations: Residential 164,502 3 (4,081 ) 160,424 Commercial 100,001 9 (1,441 ) 98,569 Corporate debt securities 25,146 67 (476 ) 24,737 U.S. Treasury securities 10,899 — (247 ) 10,652 Agency debentures 9,861 — (211 ) 9,650 $ 857,204 $ 3,069 $ (14,005 ) $ 846,268 HELD TO MATURITY Mortgage-backed securities: Residential $ 12,062 $ 35 $ (99 ) $ 11,998 Commercial 21,015 75 (161 ) 20,929 Collateralized mortgage obligations 3,439 — — 3,439 Municipal bonds 21,423 339 (97 ) 21,665 Corporate debt securities 97 — — 97 $ 58,036 $ 449 $ (357 ) $ 58,128 At December 31, 2016 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 181,158 $ 31 $ (4,115 ) $ 177,074 Commercial 25,896 13 (373 ) 25,536 Municipal bonds 473,153 1,333 (6,813 ) 467,673 Collateralized mortgage obligations: Residential 194,982 32 (3,813 ) 191,201 Commercial 71,870 29 (1,135 ) 70,764 Corporate debt securities 52,045 110 (1,033 ) 51,122 U.S. Treasury securities 10,882 — (262 ) 10,620 $ 1,009,986 $ 1,548 $ (17,544 ) $ 993,990 HELD TO MATURITY Mortgage-backed securities: Residential $ 13,844 $ 71 $ (90 ) $ 13,825 Commercial 16,303 70 (64 ) 16,309 Municipal bonds 19,612 99 (459 ) 19,252 Corporate debt securities 102 — — 102 $ 49,861 $ 240 $ (613 ) $ 49,488 |
Investment Securities in an Unrealized Loss Position | Investment securities available for sale and held to maturity 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, 2017 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 AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (182 ) $ 18,020 $ (3,386 ) $ 110,878 $ (3,568 ) $ 128,898 Commercial (113 ) 15,265 (225 ) 6,748 (338 ) 22,013 Municipal bonds (760 ) 105,415 (2,883 ) 134,103 (3,643 ) 239,518 Collateralized mortgage obligations: Residential (612 ) 53,721 (3,469 ) 104,555 (4,081 ) 158,276 Commercial (538 ) 57,236 (903 ) 35,225 (1,441 ) 92,461 Corporate debt securities (15 ) 5,272 (461 ) 13,365 (476 ) 18,637 U.S. Treasury securities (3 ) 997 (244 ) 9,655 (247 ) 10,652 Agency debentures (211 ) 9,650 — — (211 ) 9,650 $ (2,434 ) $ 265,576 $ (11,571 ) $ 414,529 $ (14,005 ) $ 680,105 HELD TO MATURITY Mortgage-backed securities: Residential $ (13 ) $ 2,662 $ (86 ) $ 4,452 $ (99 ) $ 7,114 Commercial (161 ) 15,900 — — (161 ) 15,900 Collateralized mortgage obligations — 3,439 — — — 3,439 Municipal bonds (3 ) 2,185 (94 ) 9,465 (97 ) 11,650 $ (177 ) $ 24,186 $ (180 ) $ 13,917 $ (357 ) $ 38,103 At December 31, 2016 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (3,842 ) $ 144,240 $ (273 ) $ 9,907 $ (4,115 ) $ 154,147 Commercial (373 ) 23,798 — — (373 ) 23,798 Municipal bonds (6,813 ) 283,531 — — (6,813 ) 283,531 Collateralized mortgage obligations: Residential (3,052 ) 175,490 (761 ) 11,422 (3,813 ) 186,912 Commercial (1,005 ) 60,926 (130 ) 5,349 (1,135 ) 66,275 Corporate debt securities (472 ) 24,447 (561 ) 11,677 (1,033 ) 36,124 U.S. Treasury securities (262 ) 10,620 — — (262 ) 10,620 $ (15,819 ) $ 723,052 $ (1,725 ) $ 38,355 $ (17,544 ) $ 761,407 HELD TO MATURITY Mortgage-backed securities: Residential $ (90 ) $ 5,481 $ — $ — $ (90 ) $ 5,481 Commercial (64 ) 13,156 — — (64 ) 13,156 Municipal bonds (459 ) 11,717 — — (459 ) 11,717 $ (613 ) $ 30,354 $ — $ — $ (613 ) $ 30,354 |
Amortized Cost and Estimated Fair Value by Contractual Maturity | The following tables present the fair value of investment securities available for sale and held to maturity 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, 2017 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 AVAILABLE FOR SALE Mortgage-backed securities: Residential $ — — % $ — — % $ 8,914 1.63 % $ 121,176 1.97 % $ 130,090 1.94 % Commercial — — 15,356 2.07 4,558 2.03 3,780 2.98 23,694 2.21 Municipal bonds 641 2.64 24,456 3.10 39,883 3.25 323,472 3.81 388,452 3.71 Collateralized mortgage obligations: Residential — — — — — — 160,424 2.10 160,424 2.10 Commercial — — 12,550 2.09 21,837 2.38 64,182 2.13 98,569 2.18 Agency debentures — — — — 9,650 2.26 — — 9,650 2.26 Corporate debt securities 1,048 2.11 6,527 2.80 11,033 3.49 6,129 3.57 24,737 3.27 U.S. Treasury securities 997 1.22 — — 9,655 1.76 — — 10,652 1.71 Total available for sale $ 2,686 1.90 % $ 58,889 2.58 % $ 105,530 2.67 % $ 679,163 2.90 % $ 846,268 2.85 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 11,998 2.93 % $ 11,998 2.93 % Commercial — — 6,577 2.15 14,352 2.71 — — 20,929 2.53 Collateralized mortgage obligations — — — — — — 3,439 1.90 3,439 1.90 Municipal bonds — — 1,846 3.35 4,630 2.57 15,189 3.50 21,665 3.28 Corporate debt securities — — — — — — 97 6.00 97 6.00 Total held to maturity $ — — % $ 8,423 2.41 % $ 18,982 2.68 % $ 30,723 3.10 % $ 58,128 2.86 % At December 31, 2016 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 AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 1 0.29 % $ — — % $ 2,122 1.59 % $ 174,951 2.03 % $ 177,074 2.02 % Commercial — — 20,951 2.13 4,585 2.06 — — 25,536 2.11 Municipal bonds 3,479 3.30 20,939 2.94 52,043 2.55 391,212 3.08 467,673 3.02 Collateralized mortgage obligations: Residential — — — — 1,639 1.32 189,562 2.06 191,201 2.06 Commercial — — 10,860 1.84 19,273 2.74 40,631 1.91 70,764 2.12 Corporate debt securities — — 10,516 2.67 21,493 3.74 19,113 3.54 51,122 3.45 U.S. Treasury securities 999 0.64 — — 9,621 1.76 — — 10,620 1.66 Total available for sale $ 4,479 2.70 % $ 63,266 2.43 % $ 110,776 2.69 % $ 815,469 2.57 % $ 993,990 2.57 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 13,825 3.11 % $ 13,825 3.11 % Commercial — — 4,581 2.06 11,728 2.71 — — 16,309 2.53 Municipal bonds — — — — 6,450 2.73 12,802 3.31 19,252 3.11 Corporate debt securities — — — — — — 102 6.00 102 6.00 Total held to maturity $ — — % $ 4,581 2.06 % $ 18,178 2.72 % $ 26,729 3.22 % $ 49,488 2.93 % |
Sales of Investment Securities Available for Sale | Sales of investment securities available for sale were as follows. Years Ended December 31, (in thousands) 2017 2016 2015 Proceeds $ 397,492 $ 164,430 $ 112,259 Gross gains 1,214 2,782 2,571 Gross losses (725 ) (243 ) (165 ) |
Schedule of Financial Instruments Owned and Pledged as Collateral | The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law. (in thousands) At December 31, At December 31, Federal Home Loan Bank to secure borrowings $ 425,866 $ 103,171 Washington and California State to secure public deposits 118,828 30,364 Securities pledged to secure derivatives in a liability position 7,308 9,359 Other securities pledged 6,089 8,123 Total securities pledged as collateral $ 558,091 $ 151,017 |
Loans and Credit Quality (Table
Loans and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans held for investment consist of the following: At December 31, (in thousands) 2017 2016 Consumer loans Single family (1) $ 1,381,366 $ 1,083,822 Home equity and other 453,489 359,874 Total consumer loans 1,834,855 1,443,696 Commercial real estate loans Non-owner occupied commercial real estate 622,782 588,672 Multifamily 728,037 674,219 Construction/land development 687,631 636,320 Total commercial real estate loans 2,038,450 1,899,211 Commercial and industrial loans Owner occupied commercial real estate 391,613 282,891 Commercial business 264,709 223,653 Total commercial and industrial loans 656,322 506,544 Loans held for investment before deferred fees, costs and allowance 4,529,627 3,849,451 Net deferred loan fees and costs 14,686 3,577 4,544,313 3,853,028 Allowance for loan losses (37,847 ) (34,001 ) Total loans held for investment $ 4,506,466 $ 3,819,027 (1) Includes $5.5 million and $18.0 million at December 31, 2017 and December 31, 2016 |
Schedule of Loans to Related Parties and their Associates | The following is a summary of activity during the years ended December 31, 2017 and 2016 with respect to such aggregate loans to these related parties and their associates: Years Ended December 31, (in thousands) 2017 2016 Beginning balance, January 1 $ 4,379 $ 4,511 Principal repayments and advances, net (2,411 ) (132 ) Ending balance, December 31 $ 1,968 $ 4,379 |
Activity in the allowance for credit losses | Activity in the allowance for credit losses was as follows. Years Ended December 31, (in thousands) 2017 2016 2015 Allowance for credit losses (roll-forward): Beginning balance $ 35,264 $ 30,659 $ 22,524 Provision for credit losses 750 4,100 6,100 Recoveries, net of charge-offs 3,102 505 2,035 Ending balance $ 39,116 $ 35,264 $ 30,659 Components: Allowance for loan losses $ 37,847 $ 34,001 $ 29,278 Allowance for unfunded commitments 1,269 1,263 1,381 Allowance for credit losses $ 39,116 $ 35,264 $ 30,659 |
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, 2017 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,196 $ (2 ) $ 1,495 $ (277 ) $ 9,412 Home equity and other 6,153 (707 ) 818 817 7,081 Total consumer loans 14,349 (709 ) 2,313 540 16,493 Commercial real estate loans Non-owner occupied commercial real estate 4,481 — — 274 4,755 Multifamily 3,086 — — 809 3,895 Construction/land development 8,553 — 1,017 (893 ) 8,677 Total commercial real estate loans 16,120 — 1,017 190 17,327 Commercial and industrial loans Owner occupied commercial real estate 2,199 — — 761 2,960 Commercial business 2,596 (411 ) 892 (741 ) 2,336 Total commercial and industrial loans 4,795 (411 ) 892 20 5,296 Total allowance for credit losses $ 35,264 $ (1,120 ) $ 4,222 $ 750 $ 39,116 Year Ended December 31, 2016 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,942 $ (790 ) $ 90 $ (46 ) $ 8,196 Home equity and other 4,620 (839 ) 920 1,452 6,153 Total consumer loans 13,562 (1,629 ) 1,010 1,406 14,349 Commercial real estate loans Non-owner occupied commercial real estate 3,594 — — 887 4,481 Multifamily 1,194 — — 1,892 3,086 Construction/land development 9,271 (42 ) 1,143 (1,819 ) 8,553 Total commercial real estate loans 14,059 (42 ) 1,143 960 16,120 Commercial and industrial loans Owner occupied commercial real estate 1,253 — — 946 2,199 Commercial business 1,785 (27 ) 50 788 2,596 Total commercial and industrial loans 3,038 (27 ) 50 1,734 4,795 Total allowance for credit losses $ 30,659 $ (1,698 ) $ 2,203 $ 4,100 $ 35,264 |
Recorded investment in loans by Impairment Methodology | The following tables disaggregate our allowance for credit losses and recorded investment in loans by impairment methodology. At December 31, 2017 (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 $ 9,188 $ 224 $ 9,412 $ 1,300,939 $ 74,967 $ 1,375,906 Home equity and other 7,036 45 7,081 452,182 1,290 453,472 Total consumer loans 16,224 269 16,493 1,753,121 76,257 1,829,378 Commercial real estate loans Non-owner occupied commercial real estate 4,755 — 4,755 622,782 — 622,782 Multifamily 3,895 — 3,895 727,228 809 728,037 Construction/land development 8,677 — 8,677 687,177 454 687,631 Total commercial real estate loans 17,327 — 17,327 2,037,187 1,263 2,038,450 Commercial and industrial loans Owner occupied commercial real estate 2,960 — 2,960 388,624 2,989 391,613 Commercial business 2,316 20 2,336 261,603 3,106 264,709 Total commercial and industrial loans 5,276 20 5,296 650,227 6,095 656,322 Total loans evaluated for impairment 38,827 289 39,116 4,440,535 83,615 4,524,150 Loans held for investment carried at fair value 5,246 231 5,477 (1) Total loans held for investment $ 38,827 $ 289 $ 39,116 $ 4,445,781 $ 83,846 $ 4,529,627 At December 31, 2016 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 7,871 $ 325 $ 8,196 $ 985,219 $ 80,676 $ 1,065,895 Home equity and other 6,104 49 6,153 358,350 1,463 359,813 Total consumer loans 13,975 374 14,349 1,343,569 82,139 1,425,708 Commercial real estate loans Non-owner occupied commercial real estate 4,481 — 4,481 587,801 871 588,672 Multifamily 3,086 — 3,086 673,374 845 674,219 Construction/land development 8,553 — 8,553 634,427 1,893 636,320 Total commercial real estate loans 16,120 — 16,120 1,895,602 3,609 1,899,211 Commercial and industrial loans Owner occupied commercial real estate 2,199 — 2,199 281,424 1,467 282,891 Commercial business 2,591 5 2,596 220,360 3,293 223,653 Total commercial and industrial loans 4,790 5 4,795 501,784 4,760 506,544 Total loans evaluated for impairment 34,885 379 35,264 3,740,955 90,508 3,831,463 Loans held for investment carried at fair value 17,988 (1) Total loans held for investment $ 34,885 $ 379 $ 35,264 $ 3,740,955 $ 90,508 $ 3,849,451 (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. |
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, 2017 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 71,264 (4) $ 72,424 $ — Home equity and other 782 807 — Total consumer loans 72,046 73,231 — Commercial real estate loans Multifamily 809 837 — Construction/land development 454 454 — Total commercial real estate loans 1,263 1,291 — Commercial and industrial loans Owner occupied commercial real estate 2,989 3,288 — Commercial business 2,398 3,094 — Total commercial and industrial loans 5,387 6,382 — $ 78,696 $ 80,904 $ — With an allowance recorded: Consumer loans Single family $ 3,934 $ 4,025 $ 224 Home equity and other 508 508 45 Total consumer loans 4,442 4,533 269 Commercial and industrial loans Commercial business 708 755 20 Total commercial and industrial loans 708 755 20 $ 5,150 $ 5,288 $ 289 Total: Consumer loans Single family (3) $ 75,198 $ 76,449 $ 224 Home equity and other 1,290 1,315 45 Total consumer loans 76,488 77,764 269 Commercial real estate loans Multifamily 809 837 — Construction/land development 454 454 — Total commercial real estate loans 1,263 1,291 — Commercial and industrial loans Owner occupied commercial real estate 2,989 3,288 — Commercial business 3,106 3,849 20 Total commercial and industrial loans 6,095 7,137 20 Total impaired loans $ 83,846 $ 86,192 $ 289 (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 $69.6 million in single family performing TDRs. (4) Includes $231 thousand of fair value option loans. At December 31, 2016 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family $ 77,756 $ 80,573 $ — Home equity and other 946 977 — Total consumer loans 78,702 81,550 — Commercial real estate loans Non-owner occupied commercial real estate 871 898 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Total commercial real estate loans 3,609 4,568 — Commercial and industrial loans Owner occupied commercial real estate 1,467 1,948 — Commercial business 2,945 4,365 — Total commercial and industrial loans 4,412 6,313 — $ 86,723 $ 92,431 $ — With an allowance recorded: Consumer loans Single family $ 2,920 $ 3,011 $ 325 Home equity and other 517 517 49 Total consumer loans 3,437 3,528 374 Commercial and industrial loans Commercial business 348 347 5 Total commercial and industrial loans 348 347 5 $ 3,785 $ 3,875 $ 379 Total: Consumer loans Single family (3) $ 80,676 $ 83,584 $ 325 Home equity and other 1,463 1,494 49 Total consumer loans 82,139 85,078 374 Commercial real estate loans Non-owner occupied commercial real estate 871 898 — Multifamily 845 851 — Construction/land development 1,893 2,819 — Total commercial real estate loans 3,609 4,568 — Commercial and industrial loans Owner occupied commercial real estate 1,467 1,948 — Commercial business 3,293 4,712 5 Total commercial and industrial loans 4,760 6,660 5 Total impaired loans $ 90,508 $ 96,306 $ 379 (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 $73.1 million in single family performing TDRs. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Consumer loans Single family $ 80,519 $ 2,963 $ 82,745 $ 2,873 $ 78,824 $ 2,670 Home equity and other 1,432 80 1,408 68 1,922 83 Total consumer loans 81,951 3,043 84,153 2,941 80,746 2,753 Commercial real estate loans Non-owner occupied commercial real estate 686 — 435 — 10,862 375 Multifamily 824 25 1,299 47 4,035 111 Construction/land development 917 73 2,286 87 4,535 207 Total commercial real estate loans 2,427 98 4,020 134 19,432 693 Commercial and industrial loans Owner occupied commercial real estate 2,922 170 2,648 22 3,554 69 Commercial business 2,533 144 3,591 83 4,431 163 Total commercial and industrial loans 5,455 314 6,239 105 7,985 232 $ 89,833 $ 3,455 $ 94,412 $ 3,180 $ 108,163 $ 3,678 |
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, 2017 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,355,965 (1) $ 2,982 $ 11,328 $ 11,091 $ 1,381,366 Home equity and other 451,194 143 751 1,401 453,489 1,807,159 3,125 12,079 12,492 1,834,855 Commercial real estate loans Non-owner occupied commercial real estate 613,181 8,801 — 800 622,782 Multifamily 693,190 34,038 507 302 728,037 Construction/land development 664,025 22,062 1,466 78 687,631 1,970,396 64,901 1,973 1,180 2,038,450 Commercial and industrial loans Owner occupied commercial real estate 361,429 20,949 6,399 2,836 391,613 Commercial business 220,461 39,588 1,959 2,701 264,709 581,890 60,537 8,358 5,537 656,322 $ 4,359,445 $ 128,563 $ 22,410 $ 19,209 $ 4,529,627 At December 31, 2016 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,051,463 (1) $ 4,348 $ 15,172 $ 12,839 $ 1,083,822 Home equity and other 357,191 597 514 1,572 359,874 1,408,654 4,945 15,686 14,411 1,443,696 Commercial real estate loans Non-owner occupied commercial real estate 562,950 23,741 1,110 871 588,672 Multifamily 660,234 13,140 508 337 674,219 Construction/land development 615,675 16,074 3,083 1,488 636,320 1,838,859 52,955 4,701 2,696 1,899,211 Commercial and industrial loans Owner occupied commercial real estate 247,046 28,778 6,055 1,012 282,891 Commercial business 171,883 42,767 3,385 5,618 223,653 418,929 71,545 9,440 6,630 506,544 $ 3,666,442 $ 129,445 $ 29,827 $ 23,737 $ 3,849,451 (1) Includes $5.5 million and $18.0 million of loans at December 31, 2017 and 2016 , respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Past due loans by loan portfolio segment and loan class | The following tables present an aging analysis of past due loans by loan portfolio segment and loan class. At December 31, 2017 (in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and accruing Consumer loans Single family $ 10,493 $ 4,437 $ 48,262 $ 63,192 $ 1,318,174 (1) $ 1,381,366 $ 37,171 (2) Home equity and other 750 20 1,404 2,174 451,315 453,489 — 11,243 4,457 49,666 65,366 1,769,489 1,834,855 37,171 Commercial real estate loans Non-owner occupied commercial real estate — — — — 622,782 622,782 — Multifamily — — 302 302 727,735 728,037 — Construction/land development 641 — 78 719 686,912 687,631 — 641 — 380 1,021 2,037,429 2,038,450 — Commercial and industrial loans Owner occupied commercial real estate — — 640 640 390,973 391,613 — Commercial business 377 — 1,526 1,903 262,806 264,709 — 377 — 2,166 2,543 653,779 656,322 — $ 12,261 $ 4,457 $ 52,212 $ 68,930 $ 4,460,697 $ 4,529,627 $ 37,171 At December 31, 2016 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or Consumer loans Single family $ 4,310 $ 5,459 $ 53,563 $ 63,332 $ 1,020,490 (1) $ 1,083,822 $ 40,846 (2) Home equity and other 251 442 1,571 2,264 357,610 359,874 — 4,561 5,901 55,134 65,596 1,378,100 1,443,696 40,846 Commercial real estate loans Non-owner occupied commercial real estate 23 — 871 894 587,778 588,672 — Multifamily — — 337 337 673,882 674,219 — Construction/land development — — 1,376 1,376 634,944 636,320 — 23 — 2,584 2,607 1,896,604 1,899,211 — Commercial and industrial loans Owner occupied commercial real estate 48 205 1,256 1,509 281,382 282,891 — Commercial business 202 — 2,414 2,616 221,037 223,653 — 250 205 3,670 4,125 502,419 506,544 — $ 4,834 $ 6,106 $ 61,388 $ 72,328 $ 3,777,123 $ 3,849,451 $ 40,846 (1) Includes $5.5 million and $18.0 million of loans at December 31, 2017 and 2016 respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. (2) |
Performing and nonaccrual loan balances by portfolio segment and loan class | The following tables present performing and nonperforming loan balances by loan portfolio segment and loan class. At December 31, 2017 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,370,275 (1) $ 11,091 $ 1,381,366 Home equity and other 452,085 1,404 453,489 1,822,360 12,495 1,834,855 Commercial real estate loans Non-owner occupied commercial real estate 622,782 — 622,782 Multifamily 727,735 302 728,037 Construction/land development 687,553 78 687,631 2,038,070 380 2,038,450 Commercial and industrial loans Owner occupied commercial real estate 390,973 640 391,613 Commercial business 263,183 1,526 264,709 654,156 2,166 656,322 $ 4,514,586 $ 15,041 $ 4,529,627 At December 31, 2016 (in thousands) Accrual Nonaccrual Total Consumer loans Single family $ 1,071,105 (1) $ 12,717 $ 1,083,822 Home equity and other 358,303 1,571 359,874 1,429,408 14,288 1,443,696 Commercial real estate loans Non-owner occupied commercial real estate 587,801 871 588,672 Multifamily 673,882 337 674,219 Construction/land development 634,944 1,376 636,320 1,896,627 2,584 1,899,211 Commercial and industrial loans Owner occupied commercial real estate 281,635 1,256 282,891 Commercial business 221,239 2,414 223,653 502,874 3,670 506,544 $ 3,828,909 $ 20,542 $ 3,849,451 (1) Includes $5.5 million and $18.0 million of loans at December 31, 2017 and 2016 |
TDR activity by loan portfolio segment and loan class | The following tables present information about TDR activity during the periods presented. Year Ended December 31, 2017 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 56 $ 10,040 $ — Payment restructure 102 21,356 — Home equity and other Payment restructure 2 351 — Total consumer Interest rate reduction 56 10,040 — Payment restructure 104 21,707 — 160 31,747 — Commercial and industrial loans Commercial business Payment restructure 1 18 — Total commercial and industrial Payment restructure 1 18 — 1 18 — Total loans Interest rate reduction 56 10,040 — Payment restructure 105 21,725 — 161 $ 31,765 $ — Year Ended December 31, 2016 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 36 $ 7,453 $ — Payment restructure 51 10,578 — Home equity and other Interest rate reduction 2 113 — Payment restructure 1 192 — Total consumer Interest rate reduction 38 7,566 — Payment restructure 52 10,770 — 90 18,336 — Commercial and industrial loans Commercial business Payment restructure 1 51 — Total commercial and industrial Payment restructure 1 51 — 1 51 — Total loans Interest rate reduction 38 7,566 — Payment restructure 53 10,821 — 91 $ 18,387 $ — 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 and industrial loans Commercial business Interest rate reduction 2 482 — Total commercial and industrial Interest rate reduction 2 482 — 2 482 — Total loans Interest rate reduction 51 10,779 — 51 $ 10,779 $ — |
TDR balances that subsequently re-defaulted | The following table presents loans that were modified as TDRs within the previous 12 months and subsequently re-defaulted during the years ended December 31, 2017 and 2016 , 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. Years Ended December 31, 2017 2016 (dollars in thousands) Number of loan relationships that re-defaulted Recorded Number of loan relationships that re-defaulted Recorded Consumer loans Single family 21 $ 4,286 19 $ 4,464 Home equity and other — — 1 93 21 $ 4,286 20 $ 4,557 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Real Estate Properties | Other real estate owned consisted of the following. At December 31, (in thousands) 2017 2016 Single family $ 664 $ 2,133 Commercial real estate — 552 Construction/land development — 5,381 664 8,066 Valuation allowance — (2,823 ) $ 664 $ 5,243 |
Schedule of Activity in Other Real Estate Owned | Activity in other real estate owned was as follows. Years Ended December 31, (in thousands) 2017 2016 Beginning balance $ 5,243 $ 7,531 Additions 1,113 5,417 Loss provisions (33 ) (1,553 ) Reductions related to sales (5,659 ) (6,152 ) Ending balance $ 664 $ 5,243 |
Schedule of Activity in the Valuation Allowance of Other Real Estate Owned | Activity in the valuation allowance for other real estate owned was as follows. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ 3,095 $ 1,764 $ 1,303 Loss provisions 33 1,553 695 (Charge-offs), net of recoveries (3,128 ) (222 ) (234 ) Ending balance $ — $ 3,095 $ 1,764 |
Components of the Net Cost of Operation and Sale of Other Real Estate Owned | The components of the net cost of operation and sale of other real estate owned are as follows. Years Ended December 31, (in thousands) 2017 2016 2015 Maintenance (reimbursements) costs $ (114 ) $ 469 $ 453 Loss provisions — 1,332 695 Net gain on sales (416 ) (37 ) (447 ) Net operating income (loss) — — (41 ) Net (income) cost from operation and sale of other real estate owned $ (530 ) $ 1,764 $ 660 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment consisted of the following. December 31, (in thousands) 2017 2016 Furniture and equipment $ 70,657 $ 65,089 Leasehold improvements 57,402 45,075 Land and buildings 28,898 10,437 156,957 120,601 Less: accumulated depreciation (52,303 ) (42,965 ) $ 104,654 $ 77,636 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Deposit balances, including stated rates | Deposit balances, including stated rates, were as follows. At December 31, (in thousands) 2017 2016 Noninterest-bearing accounts $ 980,902 $ 964,829 NOW accounts, 0.00% to 1.98% at December 31, 2017 and 0.00% to 1.00% at December 31, 2016 461,349 468,812 Statement savings accounts, due on demand, 0.05% to 1.13% at December 31, 2017 and December 31, 2016 293,858 301,361 Money market accounts, due on demand, 0.00% to 1.80% and at December 31, 2017 and 0.00% to 1.70% at December 31, 2016 1,834,154 1,603,141 Certificates of deposit, 0.05% to 3.80% at December 31, 2017 and December 31, 2016 1,190,689 1,091,558 $ 4,760,952 $ 4,429,701 |
Interest expense on deposits | Interest expense on deposits was as follows. Years Ended December 31, (in thousands) 2017 2016 2015 NOW accounts $ 1,964 $ 1,950 $ 1,773 Statement savings accounts 1,007 1,029 1,032 Money market accounts 8,604 7,398 4,945 Certificates of deposit 12,337 8,632 4,051 $ 23,912 $ 19,009 $ 11,801 |
Certificates of deposit outstanding | Certificates of deposit outstanding mature as follows. (in thousands) December 31, 2017 Within one year $ 889,790 One to two years 236,414 Two to three years 33,505 Three to four years 13,412 Four to five years 17,415 Thereafter 153 $ 1,190,689 |
Federal Home Loan Bank and Ot42
Federal Home Loan Bank and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Federal Home Loan Bank Advance by Maturity | FHLB advances outstanding by contractual maturities were as follows. At December 31, 2017 (in thousands) Advances outstanding Weighted-average interest rate 2018 $ 963,611 1.53 % 2019 10,000 4.27 2020 — — 2021 — — 2022 and thereafter 5,590 5.31 $ 979,201 1.58 % |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | 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 |
Derivatives and Hedging Activ44
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount and Fair Value for Derivatives | The notional amounts and fair values for derivatives consist of the following. At December 31, 2017 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 1,687,658 $ 1,311 $ (1,445 ) Interest rate swaptions 120,000 — — Interest rate lock and purchase loan commitments 472,733 12,950 (25 ) Interest rate swaps 1,869,000 12,171 (23,654 ) Eurodollar futures $ 3,287,000 — (101 ) Total derivatives before netting $ 7,436,391 26,432 (25,225 ) Netting adjustment/Cash collateral (1) (6,646 ) 23,505 Carrying value on consolidated statements of financial condition $ 19,786 $ (1,720 ) At December 31, 2016 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 3,596,677 $ 24,623 $ (15,203 ) Interest rate swaptions 20,000 1 — Interest rate lock and purchase loan commitments 746,102 19,586 (367 ) Interest rate swaps 1,689,850 15,016 (26,829 ) Total derivatives before netting $ 6,052,629 59,226 (42,399 ) Netting adjustment/Cash collateral (1) 10,174 37,836 Carrying value on consolidated statements of financial condition $ 69,400 $ (4,563 ) (1) Includes cash collateral of $16.9 million and $48.0 million at December 31, 2017 and 2016 |
Schedule of Derivative Instruments | The following tables present gross and net information about derivative instruments. At December 31, 2017 (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 $ 26,432 $ (6,646 ) $ 19,786 $ — $ 19,786 Derivative liabilities $ (25,225 ) $ 23,505 $ (1,720 ) $ 1,213 $ (507 ) At December 31, 2016 (in thousands) Gross fair value Netting adjustments/Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 59,226 $ 10,174 $ 69,400 $ — $ 69,400 Derivative liabilities $ (42,399 ) $ 37,836 $ (4,563 ) $ 1,820 $ (2,743 ) (1) Includes cash collateral of $16.9 million and $48.0 million at December 31, 2017 and 2016 , respectively, as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. |
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. Years Ended December 31, (in thousands) 2017 2016 2015 Recognized in noninterest income: Net (loss) gain on loan origination and sale activities (1) $ (28,549 ) $ 12,443 $ 2,080 Loan servicing income (loss) (2) 9,732 (4,680 ) 11,709 Other (3) — 735 — $ (18,817 ) $ 8,498 $ 13,789 (1) Comprised of interest rate lock commitments ("IRLCs") and forward contracts used as an economic hedge of IRLCs and single family mortgage loans held for sale. (2) Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs. (3) Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of fair value option loans held for investment. |
Mortgage Banking Operations (Ta
Mortgage Banking Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Banking [Abstract] | |
Schedule of Loans Held for Sale and Sold | Loans held for sale consisted of the following. At December 31, (in thousands) 2017 2016 Single family $ 577,313 $ 656,334 Multifamily DUS ® (1) 29,651 35,506 SBA 3,938 5,207 CRE Non-DUS ® (1)(2) — 17,512 Total loans held for sale $ 610,902 $ 714,559 (1) Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS" ® ) is a registered trademark of Fannie Mae. (2) Loans originated as Held for Investment. Years Ended December 31, (in thousands) 2017 2016 2015 Single family $ 7,508,949 $ 8,785,412 $ 7,038,635 Multifamily DUS ® (1) 347,084 301,442 204,744 SBA 26,841 17,308 14,275 CRE Non-DUS ® (1)(2) 321,699 150,903 (3 ) 15,038 Total loans sold $ 8,204,573 $ 9,255,065 $ 7,272,692 (1) Fannie Mae Multifamily DUS ® is a registered trademark of Fannie Mae. (2) Loans originated as Held for Investment. (3) Included $63.2 million in single family loans sold transferred to held for investment during 2016. |
Net Gain on Mortgage Loan Origination and Sale Activity | Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Years Ended December 31, (in thousands) 2017 2016 2015 Single family: Servicing value and secondary market gains (1) $ 209,027 $ 260,477 $ 205,513 Loan origination and funding fees 26,822 29,966 22,221 Total single family 235,849 290,443 227,734 Multifamily DUS ® 13,210 11,397 7,125 SBA 2,439 1,414 1,070 CRE Non-DUS ® (2) 4,378 4,059 459 Total gain on loan origination and sale activities $ 255,876 $ 307,313 $ 236,388 (1) Comprised of gains and losses on interest rate lock and purchase loan commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold. (2) Loan originated as held for investment. |
Company's Portfolio of Loans Serviced for Others | The composition of loans serviced for others that contribute to loan servicing income is presented below at the unpaid principal balance. At December 31, (in thousands) 2017 2016 Single family U.S. government and agency $ 22,123,710 $ 18,931,835 Other 507,437 556,621 22,631,147 19,488,456 Commercial Multifamily DUS ® 1,311,399 1,108,040 Other 79,797 69,323 1,391,196 1,177,363 Total loans serviced for others $ 24,022,343 $ 20,665,819 |
Schedule of Mortgage Repurchase Losses | The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses. Years Ended December 31, (in thousands) 2017 2016 Balance, beginning of period $ 3,382 $ 2,922 Additions, net of adjustments (1) 174 1,542 Realized losses (2) (541 ) (1,082 ) Balance, end of period $ 3,015 $ 3,382 (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 | Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following. Years Ended December 31, (in thousands) 2017 2016 2015 Servicing income, net: Servicing fees and other $ 66,192 $ 53,654 $ 42,016 Changes in fair value of single family MSRs due to modeled amortization (1) (35,451 ) (33,305 ) (34,038 ) Amortization of multifamily and SBA MSRs (3,932 ) (2,635 ) (1,992 ) 26,809 17,714 5,986 Risk management, single family MSRs: Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (1,157 ) 20,025 6,555 Net gain (loss) from derivatives economically hedging MSR 9,732 (4,680 ) 11,709 8,575 15,345 18,264 Loan servicing income $ 35,384 $ 33,059 $ 24,250 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) |
Key Economic Assumptions Used in Measuring Initial FV of Capitalized Single Family MSRs | Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows. Years Ended December 31, (rates per annum) (1) 2017 2016 2015 Constant prepayment rate ("CPR") (2) 13.36 % 13.93 % 14.95 % Discount rate (3) 10.27 % 10.28 % 10.29 % (1) Weighted average rates for sales during the period for sales of loans with similar characteristics. (2) Represents the expected lifetime average. (3) |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | 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, 2017 Fair value of single family MSR $ 258,560 Expected weighted-average life (in years) 6.12 Constant prepayment rate (1) 12.40 % Impact on 25 basis points adverse change in interest rates $ (21,004 ) Impact on 50 basis points adverse change in interest rates $ (42,036 ) Discount rate 10.40 % Impact on fair value of 100 basis points increase $ (8,958 ) Impact on fair value of 200 basis points increase $ (17,567 ) (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. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ 226,113 $ 156,604 $ 112,439 Additions and amortization: Originations 68,499 82,789 70,659 Purchases 565 — 989 Changes due to modeled amortization (1) (35,451 ) (33,305 ) (34,038 ) Net additions and amortization 33,613 49,484 37,610 Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (1,166 ) 20,025 6,555 Ending balance $ 258,560 $ 226,113 $ 156,604 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) |
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. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ 19,747 $ 14,651 $ 10,885 Origination 9,915 7,731 5,758 Amortization (3,569 ) (2,635 ) (1,992 ) Ending balance $ 26,093 $ 19,747 $ 14,651 |
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, 2017 2018 $ 3,527 2019 3,429 2020 3,355 2021 3,146 2022 2,825 2023 and thereafter 9,811 Carrying value of multifamily MSR $ 26,093 |
Commitments, Guarantees, and 46
Commitments, Guarantees, and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Rental Payment | Minimum rental payments for all non-cancelable leases were as follows. (in thousands) At December 31, 2017 2018 $ 26,477 2019 23,685 2020 20,904 2021 17,757 2022 14,995 2023 and thereafter 48,752 Total minimum payments $ 152,570 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax (benefit) expense consisted of following: Years Ended December 31, (in thousands) 2017 2016 2015 Current (benefit) expense Federal $ (649 ) $ (1,154 ) $ (1,469 ) State and local 62 1,595 668 Deferred expense (benefit) Federal 17,637 27,538 15,301 Revaluation of deferred items (23,325 ) — — State and local 528 3,058 602 Tax credit investment amortization 2,990 1,589 486 Total income tax (benefit) expense $ (2,757 ) $ 32,626 $ 15,588 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax (benefit) expense differed from amounts computed at the federal income tax statutory rate as follows: Years Ended December 31, (in thousands) 2017 2016 2015 Income taxes at statutory rate $ 23,166 $ 31,772 $ 19,917 State income tax expense net of federal tax benefit 1,207 2,073 715 Tax-exempt interest (2,855 ) (2,177 ) (1,307 ) Tax credits (2,041 ) (1,389 ) (903 ) Amortization of and pass-through losses from low income housing investments 1,716 1,018 658 Change in state rate (714 ) 811 722 Bargain purchase gain — — (2,704 ) Reversal of deferred tax consequences on historical AFS (2 ) — (1,107 ) Impact from Federal Rate Change (23,325 ) — — Uncertain tax positions 76 — — Other, net 15 518 (403 ) Total income tax (benefit) expense $ (2,757 ) $ 32,626 $ 15,588 |
Schedule of Deferred Tax Assets and Liabilities | The following is a summary of the Company’s significant portions of deferred tax assets and liabilities: At December 31, (in thousands) 2017 2016 Deferred tax assets: Provision for loan losses $ 11,844 $ 18,123 Federal and state net operating loss carryforwards 3,914 7,073 Other real estate owned — 1,196 Accrued liabilities 4,747 4,453 Other investments 145 283 Leases 2,336 3,121 Unrealized loss on investment available for sale securities 2,286 5,714 Tax credits 1,695 1,369 Stock-based compensation 993 1,164 Loan valuation 1,857 4,547 Other, net 1,158 2,163 30,975 49,206 Deferred tax liabilities: Mortgage servicing rights (58,195 ) (76,680 ) FHLB dividends (316 ) (522 ) Deferred loan fees and costs (3,828 ) (3,653 ) Premises and equipment (5,267 ) (6,960 ) Intangibles (1,371 ) (2,813 ) Other, net (141 ) (107 ) (69,118 ) (90,735 ) Net deferred tax liability $ (38,143 ) $ (41,529 ) |
Summary of Income Tax Contingencies | A reconciliation of our unrecognized tax positions, excluding accrued interest and penalties, for the years ended December 31, 2017 , 2016 and 2015 is as follows: Years Ended December 31, (in thousands) 2017 2016 2015 Balance, beginning of year $ 419 $ 419 $ — Increases related to prior year tax positions 76 — 419 Balance, end of year $ 495 $ 419 $ 419 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Activity | 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, 2017 is as follows: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (2) (in thousands) Options outstanding at December 31, 2016 268,547 $ 12.00 5.2 years $ 5,263 Exercised (1,000 ) 11.00 0.0 years 15 Options outstanding at December 31, 2017 267,547 12.01 4.2 years 4,533 Options that are exercisable and expected to be exercisable (1) 267,547 12.01 4.2 years 4,533 Options exercisable 267,547 $ 12.01 4.2 years $ 4,533 (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 Restricted Shares Activity | 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, 2016 256,454 $ 19.34 Granted 163,070 27.06 Cancelled or forfeited (38,146 ) 22.36 Vested (74,703 ) 18.76 Restricted shares outstanding at December 31, 2017 306,675 23.21 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Methodologies | 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 ® ) and other The sale price is set at the time the loan commitment is made, and as such subsequent changes in market conditions have a very limited effect, if any, on the value of these loans carried on the consolidated statements of financial condition, which are typically sold within 30 days of origination. Carried at lower of amortized cost or fair value. Estimated fair value classified as Level 2. Asset/Liability class Valuation methodology, inputs and assumptions Classification Loans held for investment Loans held for investment, excluding collateral dependent loans and loans transferred from held for sale Fair value is based on discounted cash flows, which considers the following inputs: • Current lending rates for new loans • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments For the carrying value of loans see Note 1–Summary of Significant Accounting Policies. 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 and SBA 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 Eurodollar futures Fair value is based on closing exchange prices. Level 1 recurring fair value measurement. 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 and purchase loan commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement. Asset/Liability class Valuation methodology, inputs and assumptions Classification Other real estate owned (“OREO”) Fair value is based on appraised value of collateral, less the estimated cost to sell. See discussion of "loans held for investment, collateral dependent" above for further information on appraisals. Carried at lower of amortized cost or fair value of collateral (Level 3), less the estimated cost to sell. Federal Home Loan Bank stock Carrying value approximates fair value as FHLB stock can only be purchased or redeemed at par value. Carried at par value. Estimated fair value classified as Level 2. Deposits Demand deposits Fair value is estimated as the amount payable on demand at the reporting date. Carried at historical cost. Estimated fair value classified as Level 2. Fixed-maturity certificates of deposit Fair value is estimated using discounted cash flows based on market rates currently offered for deposits of similar remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Federal Home Loan Bank advances Fair value is estimated using discounted cash flows based on rates currently available for advances with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. Long-term debt Fair value is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. Carried at historical cost. Estimated fair value classified as Level 2. |
Schedule of Fair Value Hierarchy Measurement | The following tables present 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, 2017 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 130,090 $ — $ 130,090 $ — Commercial 23,694 — 23,694 — Municipal bonds 388,452 — 388,452 — Collateralized mortgage obligations: Residential 160,424 — 160,424 — Commercial 98,569 — 98,569 — Corporate debt securities 24,737 — 24,737 — U.S. Treasury securities 10,652 — 10,652 — Agency debentures 9,650 — 9,650 — Single family mortgage servicing rights 258,560 — — 258,560 Single family loans held for sale 577,313 — 575,977 1,336 Single family loans held for investment 5,477 — — 5,477 Derivatives Forward sale commitments 1,311 — 1,311 — Interest rate lock and purchase loan commitments 12,950 — — 12,950 Interest rate swaps 12,172 — 12,172 — Total assets $ 1,714,051 $ — $ 1,435,728 $ 278,323 Liabilities: Derivatives Eurodollar futures $ 101 $ 101 $ — $ — Forward sale commitments 1,445 — 1,445 — Interest rate lock and purchase loan commitments 25 — — 25 Interest rate swaps 23,654 — 23,654 — Total liabilities $ 25,225 $ 101 $ 25,099 $ 25 (in thousands) Fair Value at December 31, 2016 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 177,074 $ — $ 177,074 $ — Commercial 25,536 — 25,536 — Municipal bonds 467,673 — 467,673 — Collateralized mortgage obligations: Residential 191,201 — 191,201 — Commercial 70,764 — 70,764 — Corporate debt securities 51,122 — 51,122 — U.S. Treasury securities 10,620 — 10,620 — Single family mortgage servicing rights 226,113 — — 226,113 Single family loans held for sale 656,334 — 614,524 41,810 Single family loans held for investment 17,988 — — 17,988 Derivatives Forward sale commitments 24,623 — 24,623 — Interest rate swaptions 1 — 1 — Interest rate lock and purchase loan commitments 19,586 — — 19,586 Interest rate swaps 15,016 — 15,016 — Total assets $ 1,953,651 $ — $ 1,648,154 $ 305,497 Liabilities: Derivatives Forward sale commitments $ 15,203 $ — $ 15,203 $ — Interest rate lock and purchase loan commitments 367 — — 367 Interest rate swaps 26,829 — 26,829 — Total liabilities $ 42,399 $ — $ 42,032 $ 367 |
Fair Value Inputs, Assets, Quantitative Information | 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, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 5,477 Income approach Implied spread to benchmark interest rate curve 3.61% 4.96% 4.10% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 17,988 Income approach Implied spread to benchmark interest rate curve 3.62% 4.97% 4.49% The following information presents significant Level 3 unobservable inputs used to measure fair value of certain single family loans held for sale where fair value option was elected. (dollars in thousands) At December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 1,336 Income approach Implied spread to benchmark interest rate curve 3.93% 3.93% 3.93% Market price movement from comparable bond (0.38)% (0.10)% (0.24)% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 41,810 Income approach Implied spread to benchmark interest rate curve 3.46% 6.14% 4.23% Market price movement from comparable bond (0.49)% (0.11)% (0.27)% |
Schedule of Fair Value Changes and Activity for Level 3 | The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments. Years Ended December 31, (in thousands) 2017 2016 Beginning balance, net $ 19,219 $ 17,711 Total realized/unrealized gains 126,082 146,462 Settlements (132,376 ) (144,954 ) Ending balance, net $ 12,925 $ 19,219 The following table presents fair value changes and activity for Level 3 loans held for sale and loans held for investment. Year Ended December 31, 2017 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 41,810 $ 4,327 $ 12,797 $ (58,396 ) $ 798 $ 1,336 Loans held for investment 17,988 127 (12,272 ) (480 ) 114 5,477 Year Ended December 31, 2016 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 49,322 $ 14,454 $ (4,913 ) $ (14,524 ) $ (2,529 ) $ 41,810 Loans held for investment 21,544 357 4,913 (7,608 ) (1,218 ) 17,988 |
Fair Value Measurements Recurring and Nonrecurring Valuation Techniques | The following information presents significant Level 3 unobservable inputs used to measure fair value of interest rate lock and purchase loan commitments. (dollars in thousands) At December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 12,925 Income approach Fall out factor —% 58.38% 12.05% Value of servicing 0.69% 1.73% 1.09% (dollars in thousands) At December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 19,219 Income approach Fall out factor 0.50% 60.34% 11.95% Value of servicing 0.65% 2.27% 1.08% |
Fair Value Measurements on Nonrecurring Basis | The following tables present assets that had changes in their recorded fair value during the years ended December 31, 2017 and 2016 and what we still held at the end of the respective reporting period. Year Ended December 31, 2017 (in thousands) Fair Value of Assets Held at December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 1,918 $ — $ — $ 1,918 $ (163 ) Total $ 1,918 $ — $ — $ 1,918 $ (163 ) Year Ended December 31, 2016 (in thousands) Fair Value of Assets Held at December 31, 2016 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 4,586 $ — $ — $ 4,586 $ (881 ) Other real estate owned (2) 5,933 — — 5,933 (1,332 ) Total $ 10,519 $ — $ — $ 10,519 $ (2,213 ) (1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. (2) |
Fair Value, by Balance Sheet Grouping | 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, 2017 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 72,718 $ 72,718 $ 72,718 $ — $ — Investment securities held to maturity 58,036 58,128 — 58,128 — Loans held for investment 4,500,989 4,497,884 — — 4,497,884 Loans held for sale – multifamily and other 33,589 33,589 — 33,589 — Mortgage servicing rights – multifamily 26,093 28,362 — — 28,362 Federal Home Loan Bank stock 46,639 46,639 — 46,639 — Liabilities: Deposits $ 4,760,952 $ 4,739,563 $ — $ 4,739,563 $ — Federal Home Loan Bank advances 979,201 981,441 — 981,441 — Long-term debt 125,274 108,530 — 108,530 — At December 31, 2016 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 53,932 $ 53,932 $ 53,932 $ — $ — Investment securities held to maturity 49,861 49,488 — 49,488 — Loans held for investment 3,801,039 3,840,990 — — 3,840,990 Loans held for sale – transferred from held for investment 17,512 17,512 — — 17,512 Loans held for sale – multifamily and other 40,712 40,712 — 40,712 — Mortgage servicing rights – multifamily 19,747 21,610 — — 21,610 Federal Home Loan Bank stock 40,347 40,347 — 40,347 — Liabilities: Deposits $ 4,429,701 $ 4,410,213 $ — $ 4,410,213 $ — Federal Home Loan Bank advances 868,379 870,782 — 870,782 — Long-term debt 125,147 122,357 — 122,357 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the calculation of earnings per share. Years Ended December 31, (in thousands, except share and per share data) 2017 2016 2015 Net income $ 68,946 $ 58,151 $ 41,319 Weighted average shares: Basic weighted-average number of common shares outstanding 26,864,657 24,615,990 20,818,045 Dilutive effect of outstanding common stock equivalents (1) 227,362 227,693 241,156 Diluted weighted-average number of common stock outstanding 27,092,019 24,843,683 21,059,201 Earnings per share: Basic earnings per share $ 2.57 $ 2.36 $ 1.98 Diluted earnings per share $ 2.54 $ 2.34 $ 1.96 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2017 , 2016 and 2015 were certain stock options and unvested restricted stock issued to key senior management personnel and directors of the Company. The aggregate number of common stock equivalents related to such options and unvested restricted shares, which could potentially be dilutive in future periods, was 3,224 , zero and zero at December 31, 2017 , 2016 and 2015 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Operating Segment | Financial highlights by operating segment were as follows. Year Ended December 31, 2017 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 19,896 $ 174,542 $ 194,438 Provision for credit losses — 750 750 Noninterest income 269,794 42,360 312,154 Noninterest expense 290,676 148,977 439,653 (Loss) income before income taxes (986 ) 67,175 66,189 Income tax (benefit) expense (27,871 ) 25,114 (2,757 ) Net income $ 26,885 $ 42,061 $ 68,946 Total assets $ 866,712 $ 5,875,329 $ 6,742,041 Year Ended December 31, 2016 (in thousands) Mortgage Banking Commercial and Consumer Banking Total Condensed income statement: Net interest income (1) $ 26,034 $ 154,015 $ 180,049 Provision for credit losses — 4,100 4,100 Noninterest income 323,468 35,682 359,150 Noninterest expense 305,937 138,385 444,322 Income before income taxes 43,565 47,212 90,777 Income tax expense 16,214 16,412 32,626 Net income $ 27,351 $ 30,800 $ 58,151 Total assets $ 974,248 $ 5,269,452 $ 6,243,700 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 (1) |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows changes in accumulated other comprehensive income (loss) from unrealized gain (loss) on available-for-sale securities, net of tax. Years Ended December 31, (in thousands) 2017 2016 2015 Beginning balance $ (10,412 ) $ (2,449 ) $ 1,546 Other comprehensive income (loss) before reclassifications 3,607 (6,313 ) (1,325 ) Amounts reclassified from accumulated other comprehensive income (loss) (317 ) (1,650 ) (2,670 ) Net current-period other comprehensive income (loss) 3,290 (7,963 ) (3,995 ) Ending balance $ (7,122 ) $ (10,412 ) $ (2,449 ) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | 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 (Loss) Years Ended December 31, (in thousands) 2017 2016 2015 Gain on sale of investment securities available for sale $ 489 $ 2,539 $ 2,406 Income tax expense (benefit) 172 889 (264 ) Total, net of tax $ 317 $ 1,650 $ 2,670 |
Parent Company Financial Stat53
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets, Parent Company | Condensed financial information for HomeStreet, Inc. is as follows. Condensed Statements of Financial Condition At December 31, (in thousands) 2017 2016 Assets: Cash and cash equivalents $ 14,101 $ 12,260 Other assets 7,319 9,700 Investment in stock of subsidiaries 807,398 732,135 Total assets $ 828,818 $ 754,095 Liabilities: Other liabilities $ 1,021 $ 1,521 Long-term debt 123,417 123,290 Total liabilities 124,438 124,811 Shareholders’ Equity: Preferred stock, no par value — — Common stock, no par value 511 511 Additional paid-in capital 339,009 336,149 Retained earnings 371,982 303,036 Accumulated other comprehensive loss (7,122 ) (10,412 ) Total stockholder's equity 704,380 629,284 Total liabilities and stockholder's equity $ 828,818 $ 754,095 |
Condensed Statements of Income, Parent Company | Condensed Statements of Operations Years Ended December 31, (in thousands) 2017 2016 2015 Net interest expense $ (4,625 ) $ (2,680 ) $ (1,036 ) Noninterest income 1,904 1,622 1,686 (Loss) income before income tax benefit and equity in income of subsidiaries (2,721 ) (1,058 ) 650 Dividend from subsidiaries to parent 4,000 4,697 13,181 1,279 3,639 13,831 Noninterest expense 6,681 7,746 7,239 (Loss) income before income tax benefit (5,402 ) (4,107 ) 6,592 Income tax benefit (3,381 ) (4,656 ) (561 ) Income from subsidiaries 70,967 57,602 34,166 Net income $ 68,946 $ 58,151 $ 41,319 Other comprehensive income (loss) 3,290 (7,963 ) (3,995 ) Comprehensive income $ 72,236 $ 50,188 $ 37,324 |
Condensed Statements of Cash Flows, Parent company | Condensed Statements of Cash Flows Years Ended December 31, (in thousands) 2017 2016 2015 Net cash (used in) provided by operating activities $ (3,395 ) $ 990 $ 2,654 Cash flows from investing activities: Net purchases of and proceeds from investment securities 2,546 (5,029 ) 673 Net payments for investments in and advances to subsidiaries 2,685 (116,090 ) (992 ) Net cash provided by (used in) investing activities 5,231 (121,119 ) (319 ) Cash flows from financing activities: Proceeds from issuance of common stock 11 2,713 177 Proceeds from issuance of long-term debt — 63,184 — Proceeds from equity raise — 58,713 — Dividends paid — — (5 ) Proceeds from and repayment of advances from subsidiaries — 2 — Other, net (6 ) — — Net cash provided by financing activities 5 124,612 172 Increase in cash and cash equivalents 1,841 4,483 2,507 Cash and cash equivalents at beginning of year 12,260 7,777 5,270 Cash and cash equivalents at end of year $ 14,101 $ 12,260 $ 7,777 |
Unaudited Quarterly Financial54
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Supplemental Quarterly Financial Information | Our supplemental quarterly consolidated financial information is as follows. Quarter Ended (in thousands, except share data) Dec. 31, 2017 Sept. 30, 2017 June 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 Mar. 31, 2016 Interest income $ 63,686 $ 61,981 $ 56,742 $ 55,274 $ 56,862 $ 55,330 $ 51,291 $ 46,054 Interest expense 12,607 11,141 9,874 9,623 8,788 8,528 6,809 5,363 Net interest income 51,079 50,840 46,868 45,651 48,074 46,802 44,482 40,691 Provision for credit losses — 250 500 — 350 1,250 1,100 1,400 Net interest income after provision for credit losses 51,079 50,590 46,368 45,651 47,724 45,552 43,382 39,291 Noninterest income 72,801 83,884 81,008 74,461 73,221 111,745 102,476 71,708 Noninterest expense 106,838 114,697 111,244 106,874 117,539 114,399 111,031 101,353 Income before income tax (benefit) expense 17,042 19,777 16,132 13,238 3,406 42,898 34,827 9,646 Income tax (benefit) expense (17,873 ) 5,938 4,923 4,255 1,112 15,197 13,078 3,239 Net income $ 34,915 $ 13,839 $ 11,209 $ 8,983 $ 2,294 $ 27,701 $ 21,749 $ 6,407 Basic earnings per share $ 1.30 $ 0.51 $ 0.42 $ 0.33 $ 0.09 $ 1.12 $ 0.88 $ 0.27 Diluted earnings per share $ 1.29 $ 0.51 $ 0.41 $ 0.33 $ 0.09 $ 1.11 $ 0.87 $ 0.27 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Reserve Rollforward | The following table summarizes the restructuring charges, the restructuring costs paid or settled during the year ended December 31, 2017, and the Company's net remaining liability balance at December 31, 2017. (in thousands) Facility related costs Personnel related costs Total Balance at December 31, 2016 $ — $ — $ — Restructuring charges 3,072 648 3,720 Costs paid or otherwise settled (1,686 ) (648 ) (2,334 ) Balance at December 31, 2017 $ 1,386 $ — $ 1,386 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 4.4 | $ 4 |
Accounts Receivable and Other Assets [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 1.2 | $ 2.4 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Investment in WMS Series LLC (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)series | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Purchase of single family mortgage loans from WMS | $ 574,300 | $ 589,200 | $ 616,900 |
Windermere Mortgage Services Series LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Number of individual operating series entity is subdivided into | series | 28 | ||
Income from equity method investments | $ 598 | 2,700 | 2,500 |
Equity method investment in WMS | 2,000 | 2,700 | |
Contracted service income (loss) | 844 | 370 | $ (960) |
Outstanding balance of secured line of credit | 6,100 | 6,900 | |
Highest balance of loans to borrower | 13,000 | $ 17,000 | |
Secured Line of Credit [Member] | Windermere Mortgage Services Series LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Commitments and contingencies | $ 25,000 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 39 years |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Goodwill [Roll Forward] | ||
Goodwill at beginning of period | 22,175,000 | 11,521,000 |
Acquisitions | 389,000 | 10,654,000 |
Goodwill at end of period | $ 22,564,000 | $ 22,175,000 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Advertising expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 6.8 | $ 7.4 | $ 8.5 |
Summary of Significant Accoun61
Summary of Significant Accounting Policies - Trust Preferred Securities (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Interest payments deferral period | 5 years |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ / shares in Units, $ in Thousands | Sep. 15, 2017USD ($)branch | Nov. 10, 2016USD ($)branch | Aug. 12, 2016USD ($)branch | Feb. 01, 2016USD ($)$ / sharesshares | Mar. 01, 2015USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||
Goodwill from acquisition | $ 22,564 | $ 22,175 | $ 11,521 | |||||
Acquisition share price (in dollars per share) | $ / shares | $ 17.30 | |||||||
Bargain purchase gain | 0 | 0 | 7,726 | |||||
Discount on acquired loans | $ 16,600 | |||||||
Premium of deposits from business combination | 4,000 | |||||||
FHLB advances premium in a business combination | 855 | |||||||
Opus Bank [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of branches opened | branch | 1 | |||||||
Goodwill from acquisition | $ 389 | |||||||
Boston Private Bank and Trust [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of branches opened | branch | 2 | |||||||
Goodwill from acquisition | $ 2,300 | |||||||
Bank of Oswego [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of branches opened | branch | 2 | |||||||
Goodwill from acquisition | $ 19 | |||||||
OCBB [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill from acquisition | $ 8,400 | |||||||
Purchase price of acquisition | $ 55,900 | |||||||
Number of equity interest issued and issuable per shares acquired | 0.5206 | |||||||
Acquisition share price (in dollars per share) | $ / shares | $ 1.1641 | |||||||
Number of shares of equity interest acquired | shares | 2,459,461 | |||||||
Fair value of common shares issued | 0 | 50,373 | 0 | |||||
Simplicity bank [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquisition | $ 124,685 | |||||||
Acquisition share price (in dollars per share) | $ / shares | $ 17.53 | |||||||
Number of shares of equity interest acquired | shares | 7,180,005 | |||||||
Par value of common stock (in dollars per share) | $ / shares | $ 0.01 | |||||||
Cash paid | $ 471 | |||||||
Fair value of common shares issued | 124,214 | $ 0 | $ 0 | $ 124,214 | ||||
Bargain purchase gain | 7,345 | |||||||
Acquired loans - estimated fair value | 664,148 | |||||||
Core deposit intangibles | $ 7,450 |
Business Combinations - Schedul
Business Combinations - Schedule of Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value of liabilities assumed: | ||||
Bargain purchase (gain) | $ 0 | $ 0 | $ (7,726) | |
Number of options paid in a business acquisition | 79,399 | |||
Acquisition share price (in dollars per share) | $ 17.30 | |||
Simplicity bank [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
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 | 124,214 | 0 | 0 | 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 | $ 0 | $ 0 | $ 718,916 |
Net assets acquired | 132,030 | |||
Bargain purchase (gain) | $ (7,345) | |||
Acquisition share price (in dollars per share) | $ 17.53 | |||
Number of shares of equity interest acquired | 7,180,005 |
Business Combinations - Sched64
Business Combinations - Schedule of Acquisition Expenses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Combinations [Abstract] | |
Salaries and related costs | $ 7,669 |
General and administrative | 1,256 |
Legal expenses | 530 |
Consulting expenses | 5,539 |
Occupancy expenses | 335 |
Information services expenses | 481 |
Total noninterest expense | $ 15,810 |
Regulatory Capital Requiremen65
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
HomeStreet Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital | $ 649,864 | $ 635,988 |
Tier 1 leverage capital to average assets, ratio | 9.67% | 10.26% |
Tier 1 leverage capital required for capital adequacy purposes | $ 268,708 | $ 248,055 |
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 | $ 335,885 | $ 310,069 |
Tier 1 leverage capital required to be categorized as well capitalized, ratio | 5.00% | 5.00% |
Common equity risk-based capital | $ 649,864 | $ 635,988 |
Common equity risk-based capital to risk weighted assets, ratio | 13.22% | 13.92% |
Common equity risk-based capital required for capital adequacy | $ 221,201 | $ 205,615 |
Common equity risk-based capital required for capital adequacy, ratio | 4.50% | 4.50% |
Common equity capital required to be well capitalized | $ 319,512 | $ 297,000 |
Common equity risk-based capital required to be well capitalized, ratio | 6.50% | 6.50% |
Tier 1 risk-based capital | $ 649,864 | $ 635,988 |
Tier 1 risk-based capital to risk weighted assets, ratio | 13.22% | 13.92% |
Tier 1 risk-based capital required for capital adequacy | $ 294,935 | $ 274,154 |
Tier 1 risk-based capital required for capital adequacy, ratio | 6.00% | 6.00% |
Tier 1 risk-based capital required to be well capitalized | $ 393,246 | $ 365,538 |
Tier 1 risk-based capital required to be well capitalized, ratio | 8.00% | 8.00% |
Total risk-based capital | $ 688,981 | $ 671,252 |
Capital to risk weighted assets, ratio | 14.02% | 14.69% |
Total capital required for capital adequacy | $ 393,246 | $ 365,538 |
Total capital required for capital adequacy, ratio | 8.00% | 8.00% |
Total capital required to be well capitalized | $ 491,558 | $ 456,923 |
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 | $ 614,624 | $ 608,988 |
Tier 1 leverage capital to average assets, ratio | 9.12% | 9.78% |
Tier 1 leverage capital required for capital adequacy purposes | $ 269,534 | $ 249,121 |
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 | $ 336,918 | $ 311,402 |
Tier 1 leverage capital required to be categorized as well capitalized, ratio | 5.00% | 5.00% |
Common equity risk-based capital | $ 555,120 | $ 550,510 |
Common equity risk-based capital to risk weighted assets, ratio | 9.86% | 10.54% |
Common equity risk-based capital required for capital adequacy | $ 253,293 | $ 234,965 |
Common equity risk-based capital required for capital adequacy, ratio | 4.50% | 4.50% |
Common equity capital required to be well capitalized | $ 365,868 | $ 339,395 |
Common equity risk-based capital required to be well capitalized, ratio | 6.50% | 6.50% |
Tier 1 risk-based capital | $ 614,624 | $ 608,988 |
Tier 1 risk-based capital to risk weighted assets, ratio | 10.92% | 11.66% |
Tier 1 risk-based capital required for capital adequacy | $ 337,724 | $ 313,287 |
Tier 1 risk-based capital required for capital adequacy, ratio | 6.00% | 6.00% |
Tier 1 risk-based capital required to be well capitalized | $ 450,299 | $ 417,716 |
Tier 1 risk-based capital required to be well capitalized, ratio | 8.00% | 8.00% |
Total risk-based capital | $ 653,741 | $ 644,252 |
Capital to risk weighted assets, ratio | 11.61% | 12.34% |
Total capital required for capital adequacy | $ 450,299 | $ 417,716 |
Total capital required for capital adequacy, ratio | 8.00% | 8.00% |
Total capital required to be well capitalized | $ 562,873 | $ 522,146 |
Total capital required to be well capitalized, ratio | 10.00% | 10.00% |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt Securities: | ||
Amortized cost | $ 857,204 | $ 1,009,986 |
Gross unrealized gains | 3,069 | 1,548 |
Gross unrealized losses | (14,005) | (17,544) |
Fair value | 846,268 | 993,990 |
Held-to-maturity Securities | ||
Amortized cost | 58,036 | 49,861 |
Gross unrealized gains | 449 | 240 |
Gross unrealized losses | (357) | (613) |
Fair value | 58,128 | 49,488 |
Residential Mortgage Backed Securities [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 133,654 | 181,158 |
Gross unrealized gains | 4 | 31 |
Gross unrealized losses | (3,568) | (4,115) |
Fair value | 130,090 | 177,074 |
Held-to-maturity Securities | ||
Amortized cost | 12,062 | 13,844 |
Gross unrealized gains | 35 | 71 |
Gross unrealized losses | (99) | (90) |
Fair value | 11,998 | 13,825 |
Commercial Mortgage Backed Securities [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 24,024 | 25,896 |
Gross unrealized gains | 8 | 13 |
Gross unrealized losses | (338) | (373) |
Fair value | 23,694 | 25,536 |
Held-to-maturity Securities | ||
Amortized cost | 21,015 | 16,303 |
Gross unrealized gains | 75 | 70 |
Gross unrealized losses | (161) | (64) |
Fair value | 20,929 | 16,309 |
Collateralized Mortgage Obligations [Member] | ||
Held-to-maturity Securities | ||
Amortized cost | 3,439 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 3,439 | |
Municipal Bonds [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 389,117 | 473,153 |
Gross unrealized gains | 2,978 | 1,333 |
Gross unrealized losses | (3,643) | (6,813) |
Fair value | 388,452 | 467,673 |
Held-to-maturity Securities | ||
Amortized cost | 21,423 | 19,612 |
Gross unrealized gains | 339 | 99 |
Gross unrealized losses | (97) | (459) |
Fair value | 21,665 | 19,252 |
Residential [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 164,502 | 194,982 |
Gross unrealized gains | 3 | 32 |
Gross unrealized losses | (4,081) | (3,813) |
Fair value | 160,424 | 191,201 |
Commercial [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 100,001 | 71,870 |
Gross unrealized gains | 9 | 29 |
Gross unrealized losses | (1,441) | (1,135) |
Fair value | 98,569 | 70,764 |
Corporate Debt Securities [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 25,146 | 52,045 |
Gross unrealized gains | 67 | 110 |
Gross unrealized losses | (476) | (1,033) |
Fair value | 24,737 | 51,122 |
Held-to-maturity Securities | ||
Amortized cost | 97 | 102 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 97 | 102 |
US Treasury Securities [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 10,899 | 10,882 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (247) | (262) |
Fair value | 10,652 | $ 10,620 |
Agency Securities [Member] | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 9,861 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (211) | |
Fair value | $ 9,650 |
Investment Securities - Continu
Investment Securities - Continuous Unrealized Loss on Position (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | $ (2,434) | $ (15,819) |
12 months or more, Gross unrealized losses | (11,571) | (1,725) |
Total gross unrealized losses | (14,005) | (17,544) |
Less than 12 months, fair value | 265,576 | 723,052 |
12 months or more, Fair value | 414,529 | 38,355 |
Total fair value | 680,105 | 761,407 |
Held-to-maturity Securities | ||
Less than 12 months, Gross unrealized losses | (177) | (613) |
12 months or more, Gross unrealized losses | (180) | 0 |
Total gross unrealized losses | (357) | (613) |
Less than 12 months, Fair value | 24,186 | 30,354 |
12 months or more, Fair value | 13,917 | 0 |
Total Fair value | 38,103 | 30,354 |
Residential Mortgage [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (182) | (3,842) |
12 months or more, Gross unrealized losses | (3,386) | (273) |
Total gross unrealized losses | (3,568) | (4,115) |
Less than 12 months, fair value | 18,020 | 144,240 |
12 months or more, Fair value | 110,878 | 9,907 |
Total fair value | 128,898 | 154,147 |
Held-to-maturity Securities | ||
Less than 12 months, Gross unrealized losses | (13) | (90) |
12 months or more, Gross unrealized losses | (86) | 0 |
Total gross unrealized losses | (99) | (90) |
Less than 12 months, Fair value | 2,662 | 5,481 |
12 months or more, Fair value | 4,452 | 0 |
Total Fair value | 7,114 | 5,481 |
Commercial Mortgage Backed Securities [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (113) | (373) |
12 months or more, Gross unrealized losses | (225) | 0 |
Total gross unrealized losses | (338) | (373) |
Less than 12 months, fair value | 15,265 | 23,798 |
12 months or more, Fair value | 6,748 | 0 |
Total fair value | 22,013 | 23,798 |
Held-to-maturity Securities | ||
Less than 12 months, Gross unrealized losses | (161) | (64) |
12 months or more, Gross unrealized losses | 0 | 0 |
Total gross unrealized losses | (161) | (64) |
Less than 12 months, Fair value | 15,900 | 13,156 |
12 months or more, Fair value | 0 | 0 |
Total Fair value | 15,900 | 13,156 |
Collateralized Mortgage Obligations [Member] | ||
Held-to-maturity Securities | ||
Less than 12 months, Gross unrealized losses | 0 | |
12 months or more, Gross unrealized losses | 0 | |
Total gross unrealized losses | 0 | |
Less than 12 months, Fair value | 3,439 | |
12 months or more, Fair value | 0 | |
Total Fair value | 3,439 | |
Municipal Bonds [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (760) | (6,813) |
12 months or more, Gross unrealized losses | (2,883) | 0 |
Total gross unrealized losses | (3,643) | (6,813) |
Less than 12 months, fair value | 105,415 | 283,531 |
12 months or more, Fair value | 134,103 | 0 |
Total fair value | 239,518 | 283,531 |
Held-to-maturity Securities | ||
Less than 12 months, Gross unrealized losses | (3) | (459) |
12 months or more, Gross unrealized losses | (94) | 0 |
Total gross unrealized losses | (97) | (459) |
Less than 12 months, Fair value | 2,185 | 11,717 |
12 months or more, Fair value | 9,465 | 0 |
Total Fair value | 11,650 | 11,717 |
Residential [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (612) | (3,052) |
12 months or more, Gross unrealized losses | (3,469) | (761) |
Total gross unrealized losses | (4,081) | (3,813) |
Less than 12 months, fair value | 53,721 | 175,490 |
12 months or more, Fair value | 104,555 | 11,422 |
Total fair value | 158,276 | 186,912 |
Commercial [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (538) | (1,005) |
12 months or more, Gross unrealized losses | (903) | (130) |
Total gross unrealized losses | (1,441) | (1,135) |
Less than 12 months, fair value | 57,236 | 60,926 |
12 months or more, Fair value | 35,225 | 5,349 |
Total fair value | 92,461 | 66,275 |
Corporate Debt Securities [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (15) | (472) |
12 months or more, Gross unrealized losses | (461) | (561) |
Total gross unrealized losses | (476) | (1,033) |
Less than 12 months, fair value | 5,272 | 24,447 |
12 months or more, Fair value | 13,365 | 11,677 |
Total fair value | 18,637 | 36,124 |
US Treasury Securities [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (3) | (262) |
12 months or more, Gross unrealized losses | (244) | 0 |
Total gross unrealized losses | (247) | (262) |
Less than 12 months, fair value | 997 | 10,620 |
12 months or more, Fair value | 9,655 | 0 |
Total fair value | 10,652 | $ 10,620 |
Agency Securities [Member] | ||
Available-for-sale Securities | ||
Less than 12 months, Gross unrealized losses | (211) | |
12 months or more, Gross unrealized losses | 0 | |
Total gross unrealized losses | (211) | |
Less than 12 months, fair value | 9,650 | |
12 months or more, Fair value | 0 | |
Total fair value | $ 9,650 |
Investment Securities - Weighte
Investment Securities - Weighted Average Yield (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 2,686 | $ 4,479 |
Due after one year through five years, Fair value | 58,889 | 63,266 |
Due after five years through ten years, Fair value | 105,530 | 110,776 |
Due after ten years, Fair value | 679,163 | 815,469 |
Fair value | $ 846,268 | $ 993,990 |
Due in one year or less, Weighted Average Yield | 1.90% | 2.70% |
Due after one year through five years, Weighted Average Yield | 2.58% | 2.43% |
Due after five years through ten years, Weighted Average Yield | 2.67% | 2.69% |
Due after ten years, Weighted Average Yield | 2.90% | 2.57% |
Weighted average yield | 2.85% | 2.57% |
Held-to-maturity Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 8,423 | 4,581 |
Due after five years through ten years, Fair value | 18,982 | 18,178 |
Due after ten years, Fair value | 30,723 | 26,729 |
Fair Value | $ 58,128 | $ 49,488 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 2.41% | 2.06% |
Due after five years through ten years, Weighted Average Yield | 2.68% | 2.72% |
Due after ten years, Weighted Average Yield | 3.10% | 3.22% |
Weighted average yield | 2.86% | 2.93% |
Residential Mortgage Backed Securities [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 0 | $ 1 |
Due after one year through five years, Fair value | 0 | 0 |
Due after five years through ten years, Fair value | 8,914 | 2,122 |
Due after ten years, Fair value | 121,176 | 174,951 |
Fair value | $ 130,090 | $ 177,074 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.29% |
Due after one year through five years, Weighted Average Yield | 0.00% | 0.00% |
Due after five years through ten years, Weighted Average Yield | 1.63% | 1.59% |
Due after ten years, Weighted Average Yield | 1.97% | 2.03% |
Weighted average yield | 1.94% | 2.02% |
Held-to-maturity Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 0 | 0 |
Due after five years through ten years, Fair value | 0 | 0 |
Due after ten years, Fair value | 11,998 | 13,825 |
Fair Value | $ 11,998 | $ 13,825 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 0.00% | 0.00% |
Due after five years through ten years, Weighted Average Yield | 0.00% | 0.00% |
Due after ten years, Weighted Average Yield | 2.93% | 3.11% |
Weighted average yield | 2.93% | 3.11% |
Commercial Mortgage Backed Securities [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 15,356 | 20,951 |
Due after five years through ten years, Fair value | 4,558 | 4,585 |
Due after ten years, Fair value | 3,780 | 0 |
Fair value | $ 23,694 | $ 25,536 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 2.07% | 2.13% |
Due after five years through ten years, Weighted Average Yield | 2.03% | 2.06% |
Due after ten years, Weighted Average Yield | 2.98% | 0.00% |
Weighted average yield | 2.21% | 2.11% |
Held-to-maturity Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 6,577 | 4,581 |
Due after five years through ten years, Fair value | 14,352 | 11,728 |
Due after ten years, Fair value | 0 | 0 |
Fair Value | $ 20,929 | $ 16,309 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 2.15% | 2.06% |
Due after five years through ten years, Weighted Average Yield | 2.71% | 2.71% |
Due after ten years, Weighted Average Yield | 0.00% | 0.00% |
Weighted average yield | 2.53% | 2.53% |
Collateralized Mortgage Obligations [Member] | ||
Held-to-maturity Securities | ||
Due within one year or less, Fair value | $ 0 | |
Due after one year through five years, Fair value | 0 | |
Due after five years through ten years, Fair value | 0 | |
Due after ten years, Fair value | 3,439 | |
Fair Value | $ 3,439 | |
Due in one year or less, Weighted Average Yield | 0.00% | |
Due after one year through five years, Weighted Average Yield | 0.00% | |
Due after five years through ten years, Weighted Average Yield | 0.00% | |
Due after ten years, Weighted Average Yield | 1.90% | |
Weighted average yield | 1.90% | |
Municipal Bonds [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 641 | $ 3,479 |
Due after one year through five years, Fair value | 24,456 | 20,939 |
Due after five years through ten years, Fair value | 39,883 | 52,043 |
Due after ten years, Fair value | 323,472 | 391,212 |
Fair value | $ 388,452 | $ 467,673 |
Due in one year or less, Weighted Average Yield | 2.64% | 3.30% |
Due after one year through five years, Weighted Average Yield | 3.10% | 2.94% |
Due after five years through ten years, Weighted Average Yield | 3.25% | 2.55% |
Due after ten years, Weighted Average Yield | 3.81% | 3.08% |
Weighted average yield | 3.71% | 3.02% |
Held-to-maturity Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 1,846 | 0 |
Due after five years through ten years, Fair value | 4,630 | 6,450 |
Due after ten years, Fair value | 15,189 | 12,802 |
Fair Value | $ 21,665 | $ 19,252 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 3.35% | 0.00% |
Due after five years through ten years, Weighted Average Yield | 2.57% | 2.73% |
Due after ten years, Weighted Average Yield | 3.50% | 3.31% |
Weighted average yield | 3.28% | 3.11% |
Residential [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 0 | 0 |
Due after five years through ten years, Fair value | 0 | 1,639 |
Due after ten years, Fair value | 160,424 | 189,562 |
Fair value | $ 160,424 | $ 191,201 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 0.00% | 0.00% |
Due after five years through ten years, Weighted Average Yield | 0.00% | 1.32% |
Due after ten years, Weighted Average Yield | 2.10% | 2.06% |
Weighted average yield | 2.10% | 2.06% |
Commercial [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 12,550 | 10,860 |
Due after five years through ten years, Fair value | 21,837 | 19,273 |
Due after ten years, Fair value | 64,182 | 40,631 |
Fair value | $ 98,569 | $ 70,764 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 2.09% | 1.84% |
Due after five years through ten years, Weighted Average Yield | 2.38% | 2.74% |
Due after ten years, Weighted Average Yield | 2.13% | 1.91% |
Weighted average yield | 2.18% | 2.12% |
Agency Securities [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 0 | |
Due after one year through five years, Fair value | 0 | |
Due after five years through ten years, Fair value | 9,650 | |
Due after ten years, Fair value | 0 | |
Fair value | $ 9,650 | |
Due in one year or less, Weighted Average Yield | 0.00% | |
Due after one year through five years, Weighted Average Yield | 0.00% | |
Due after five years through ten years, Weighted Average Yield | 2.26% | |
Due after ten years, Weighted Average Yield | 0.00% | |
Weighted average yield | 2.26% | |
Corporate Debt Securities [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 1,048 | $ 0 |
Due after one year through five years, Fair value | 6,527 | 10,516 |
Due after five years through ten years, Fair value | 11,033 | 21,493 |
Due after ten years, Fair value | 6,129 | 19,113 |
Fair value | $ 24,737 | $ 51,122 |
Due in one year or less, Weighted Average Yield | 2.11% | 0.00% |
Due after one year through five years, Weighted Average Yield | 2.80% | 2.67% |
Due after five years through ten years, Weighted Average Yield | 3.49% | 3.74% |
Due after ten years, Weighted Average Yield | 3.57% | 3.54% |
Weighted average yield | 3.27% | 3.45% |
Held-to-maturity Securities | ||
Due within one year or less, Fair value | $ 0 | $ 0 |
Due after one year through five years, Fair value | 0 | 0 |
Due after five years through ten years, Fair value | 0 | 0 |
Due after ten years, Fair value | 97 | 102 |
Fair Value | $ 97 | $ 102 |
Due in one year or less, Weighted Average Yield | 0.00% | 0.00% |
Due after one year through five years, Weighted Average Yield | 0.00% | 0.00% |
Due after five years through ten years, Weighted Average Yield | 0.00% | 0.00% |
Due after ten years, Weighted Average Yield | 6.00% | 6.00% |
Weighted average yield | 6.00% | 6.00% |
US Treasury Securities [Member] | ||
Available-for-sale Securities | ||
Due within one year or less, Fair value | $ 997 | $ 999 |
Due after one year through five years, Fair value | 0 | 0 |
Due after five years through ten years, Fair value | 9,655 | 9,621 |
Due after ten years, Fair value | 0 | 0 |
Fair value | $ 10,652 | $ 10,620 |
Due in one year or less, Weighted Average Yield | 1.22% | 0.64% |
Due after one year through five years, Weighted Average Yield | 0.00% | 0.00% |
Due after five years through ten years, Weighted Average Yield | 1.76% | 1.76% |
Due after ten years, Weighted Average Yield | 0.00% | 0.00% |
Weighted average yield | 1.71% | 1.66% |
Investment Securities - Realize
Investment Securities - Realized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 397,492 | $ 164,430 | $ 112,259 |
Gross gains | 1,214 | 2,782 | 2,571 |
Gross losses | $ (725) | $ (243) | $ (165) |
Investment Securities - Securit
Investment Securities - Securities Pledged to Secure Borrowings and Public Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged to secure borrowings from Federal Home Loan Bank | $ 425,866 | $ 103,171 |
Securities pledged to Washington and California State to secure public deposits | 118,828 | 30,364 |
Securities pledged to secure derivatives in a liability position | 7,308 | 9,359 |
Other securities pledged | 6,089 | 8,123 |
Total securities pledged as collateral | $ 558,091 | $ 151,017 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Security pledged under repurchase agreement | $ 0 | $ 0 | |
Tax exempt interest income on available-for-sale securities | $ 8,800 | $ 6,300 | $ 3,600 |
Loans and Credit Quality - Loan
Loans and Credit Quality - Loans Held for Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | $ 4,529,627 | $ 3,849,451 | |
Net deferred loan fees and costs | 14,686 | 3,577 | |
Loans held for investment, net of deferred loan fees and costs | 4,544,313 | 3,853,028 | |
Allowance for losses on loans held for investment | (37,847) | (34,001) | $ (29,278) |
Loans held for investment | 4,506,466 | 3,819,027 | |
Fair value of loans held for investment | 5,477 | 17,988 | |
Fair Value, Measurements, Recurring [Member] | |||
Loans held for investment | |||
Fair value of loans held for investment | 5,477 | 17,988 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Loans held for investment | |||
Fair value of loans held for investment | 5,477 | 17,988 | |
Consumer Portfolio Segment [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 1,834,855 | 1,443,696 | |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 1,381,366 | 1,083,822 | |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 453,489 | 359,874 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 2,038,450 | 1,899,211 | |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 622,782 | 588,672 | |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 728,037 | 674,219 | |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 687,631 | 636,320 | |
Commercial Portfolio Segment [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 656,322 | 506,544 | |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | 391,613 | 282,891 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
Loans held for investment | |||
Loans held for investment before deferred fees, costs and allowance | $ 264,709 | $ 223,653 |
Loans and Credit Quality - Rela
Loans and Credit Quality - Related Party (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Beginning balance | $ 4,379 | $ 4,511 |
Principal repayments and advances, net | (2,411) | (132) |
Ending balance | $ 1,968 | $ 4,379 |
Loans and Credit Quality - Narr
Loans and Credit Quality - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Financing Receivable, Impaired [Line Items] | ||
Number of operating segments | segment | 2 | |
Concentration percentage | 10.00% | 10.00% |
Total loans receivable before fees and costs | $ 4,529,627,000 | $ 3,849,451,000 |
Total loans held for investment | 4,529,627,000 | 3,849,451,000 |
Federal Home Loan Bank Advances [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans Pledged as Collateral | 1,810,000,000 | 1,590,000,000 |
Federal Reserve Bank Advances [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans Pledged as Collateral | $ 663,800,000 | $ 554,700,000 |
WASHINGTON | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Percentage of Loan Portfolio | 15.00% | 13.80% |
WASHINGTON | Non-Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Percentage of Loan Portfolio | 10.10% | |
CALIFORNIA | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Percentage of Loan Portfolio | 10.90% | |
Doubtful [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans receivable before fees and costs | $ 0 | $ 0 |
Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans receivable before fees and costs | $ 0 | $ 0 |
Loans and Credit Quality - Acti
Loans and Credit Quality - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||||||||
Beginning Balance | $ 35,264 | $ 30,659 | $ 35,264 | $ 30,659 | $ 22,524 | |||||||||
Provision for credit losses | $ 0 | $ 250 | $ 500 | 0 | $ 350 | $ 1,250 | $ 1,100 | 1,400 | 750 | 4,100 | 6,100 | |||
Recoveries, net of charge-offs | 3,102 | 505 | 2,035 | |||||||||||
Ending Balance | 39,116 | 35,264 | 39,116 | 35,264 | 30,659 | |||||||||
Allowance for loan losses | $ 37,847 | $ 34,001 | $ 29,278 | |||||||||||
Allowance for unfunded commitments | 1,269 | 1,263 | 1,381 | |||||||||||
Allowance for credit losses | $ 39,116 | $ 35,264 | $ 35,264 | $ 30,659 | $ 35,264 | $ 30,659 | $ 30,659 | $ 39,116 | $ 35,264 | $ 30,659 |
Loans and Credit Quality - Allo
Loans and Credit Quality - Allowance for Credit Losses by Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 35,264 | $ 30,659 | $ 35,264 | $ 30,659 | $ 22,524 | ||||||
Charge-offs | (1,120) | (1,698) | |||||||||
Recoveries | 4,222 | 2,203 | |||||||||
Provision for credit losses | $ 0 | $ 250 | $ 500 | 0 | $ 350 | $ 1,250 | $ 1,100 | 1,400 | 750 | 4,100 | 6,100 |
Ending Balance | 39,116 | 35,264 | 39,116 | 35,264 | 30,659 | ||||||
Consumer Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 14,349 | 13,562 | 14,349 | 13,562 | |||||||
Charge-offs | (709) | (1,629) | |||||||||
Recoveries | 2,313 | 1,010 | |||||||||
Provision for credit losses | 540 | 1,406 | |||||||||
Ending Balance | 16,493 | 14,349 | 16,493 | 14,349 | 13,562 | ||||||
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 8,196 | 8,942 | 8,196 | 8,942 | |||||||
Charge-offs | (2) | (790) | |||||||||
Recoveries | 1,495 | 90 | |||||||||
Provision for credit losses | (277) | (46) | |||||||||
Ending Balance | 9,412 | 8,196 | 9,412 | 8,196 | 8,942 | ||||||
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 6,153 | 4,620 | 6,153 | 4,620 | |||||||
Charge-offs | (707) | (839) | |||||||||
Recoveries | 818 | 920 | |||||||||
Provision for credit losses | 817 | 1,452 | |||||||||
Ending Balance | 7,081 | 6,153 | 7,081 | 6,153 | 4,620 | ||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 16,120 | 14,059 | 16,120 | 14,059 | |||||||
Charge-offs | 0 | (42) | |||||||||
Recoveries | 1,017 | 1,143 | |||||||||
Provision for credit losses | 190 | 960 | |||||||||
Ending Balance | 17,327 | 16,120 | 17,327 | 16,120 | 14,059 | ||||||
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 4,481 | 3,594 | 4,481 | 3,594 | |||||||
Charge-offs | 0 | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision for credit losses | 274 | 887 | |||||||||
Ending Balance | 4,755 | 4,481 | 4,755 | 4,481 | 3,594 | ||||||
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 3,086 | 1,194 | 3,086 | 1,194 | |||||||
Charge-offs | 0 | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision for credit losses | 809 | 1,892 | |||||||||
Ending Balance | 3,895 | 3,086 | 3,895 | 3,086 | 1,194 | ||||||
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 8,553 | 9,271 | 8,553 | 9,271 | |||||||
Charge-offs | 0 | (42) | |||||||||
Recoveries | 1,017 | 1,143 | |||||||||
Provision for credit losses | (893) | (1,819) | |||||||||
Ending Balance | 8,677 | 8,553 | 8,677 | 8,553 | 9,271 | ||||||
Commercial Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 4,795 | 3,038 | 4,795 | 3,038 | |||||||
Charge-offs | (411) | (27) | |||||||||
Recoveries | 892 | 50 | |||||||||
Provision for credit losses | 20 | 1,734 | |||||||||
Ending Balance | 5,296 | 4,795 | 5,296 | 4,795 | 3,038 | ||||||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 2,199 | 1,253 | 2,199 | 1,253 | |||||||
Charge-offs | 0 | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision for credit losses | 761 | 946 | |||||||||
Ending Balance | 2,960 | 2,199 | 2,960 | 2,199 | 1,253 | ||||||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 2,596 | $ 1,785 | 2,596 | 1,785 | |||||||
Charge-offs | (411) | (27) | |||||||||
Recoveries | 892 | 50 | |||||||||
Provision for credit losses | (741) | 788 | |||||||||
Ending Balance | $ 2,336 | $ 2,596 | $ 2,336 | $ 2,596 | $ 1,785 |
Loans and Credit Quality - Reco
Loans and Credit Quality - Recorded Investment in loans by impairment methodology (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | $ 38,827 | $ 34,885 | ||
Allowance: individually evaluated for impairment | 289 | 379 | ||
Allowance for credit losses | 39,116 | 35,264 | $ 30,659 | $ 22,524 |
Loans: collectively evaluated for impairment | 4,440,535 | 3,740,955 | ||
Loans: individually evaluated for impairment | 83,615 | 90,508 | ||
Total loans held for investment | 4,524,150 | 3,831,463 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 16,224 | 13,975 | ||
Allowance: individually evaluated for impairment | 269 | 374 | ||
Allowance for credit losses | 16,493 | 14,349 | 13,562 | |
Loans: collectively evaluated for impairment | 1,753,121 | 1,343,569 | ||
Loans: individually evaluated for impairment | 76,257 | 82,139 | ||
Total loans held for investment | 1,829,378 | 1,425,708 | ||
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 9,188 | 7,871 | ||
Allowance: individually evaluated for impairment | 224 | 325 | ||
Allowance for credit losses | 9,412 | 8,196 | 8,942 | |
Loans: collectively evaluated for impairment | 1,300,939 | 985,219 | ||
Loans: individually evaluated for impairment | 74,967 | 80,676 | ||
Total loans held for investment | 1,375,906 | 1,065,895 | ||
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 7,036 | 6,104 | ||
Allowance: individually evaluated for impairment | 45 | 49 | ||
Allowance for credit losses | 7,081 | 6,153 | 4,620 | |
Loans: collectively evaluated for impairment | 452,182 | 358,350 | ||
Loans: individually evaluated for impairment | 1,290 | 1,463 | ||
Total loans held for investment | 453,472 | 359,813 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 17,327 | 16,120 | ||
Allowance: individually evaluated for impairment | 0 | 0 | ||
Allowance for credit losses | 17,327 | 16,120 | 14,059 | |
Loans: collectively evaluated for impairment | 2,037,187 | 1,895,602 | ||
Loans: individually evaluated for impairment | 1,263 | 3,609 | ||
Total loans held for investment | 2,038,450 | 1,899,211 | ||
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 4,755 | 4,481 | ||
Allowance: individually evaluated for impairment | 0 | 0 | ||
Allowance for credit losses | 4,755 | 4,481 | 3,594 | |
Loans: collectively evaluated for impairment | 622,782 | 587,801 | ||
Loans: individually evaluated for impairment | 0 | 871 | ||
Total loans held for investment | 622,782 | 588,672 | ||
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 3,895 | 3,086 | ||
Allowance: individually evaluated for impairment | 0 | 0 | ||
Allowance for credit losses | 3,895 | 3,086 | 1,194 | |
Loans: collectively evaluated for impairment | 727,228 | 673,374 | ||
Loans: individually evaluated for impairment | 809 | 845 | ||
Total loans held for investment | 728,037 | 674,219 | ||
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 8,677 | 8,553 | ||
Allowance: individually evaluated for impairment | 0 | 0 | ||
Allowance for credit losses | 8,677 | 8,553 | 9,271 | |
Loans: collectively evaluated for impairment | 687,177 | 634,427 | ||
Loans: individually evaluated for impairment | 454 | 1,893 | ||
Total loans held for investment | 687,631 | 636,320 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 5,276 | 4,790 | ||
Allowance: individually evaluated for impairment | 20 | 5 | ||
Allowance for credit losses | 5,296 | 4,795 | 3,038 | |
Loans: collectively evaluated for impairment | 650,227 | 501,784 | ||
Loans: individually evaluated for impairment | 6,095 | 4,760 | ||
Total loans held for investment | 656,322 | 506,544 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 2,960 | 2,199 | ||
Allowance: individually evaluated for impairment | 0 | 0 | ||
Allowance for credit losses | 2,960 | 2,199 | 1,253 | |
Loans: collectively evaluated for impairment | 388,624 | 281,424 | ||
Loans: individually evaluated for impairment | 2,989 | 1,467 | ||
Total loans held for investment | 391,613 | 282,891 | ||
Commercial Portfolio Segment [Member] | Commercial Loan [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Allowance: collectively evaluated for impairment | 2,316 | 2,591 | ||
Allowance: individually evaluated for impairment | 20 | 5 | ||
Allowance for credit losses | 2,336 | 2,596 | $ 1,785 | |
Loans: collectively evaluated for impairment | 261,603 | 220,360 | ||
Loans: individually evaluated for impairment | 3,106 | 3,293 | ||
Total loans held for investment | 264,709 | 223,653 | ||
Fair value [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Loans: collectively evaluated for impairment | 5,246 | |||
Loans: individually evaluated for impairment | 231 | |||
Total loans held for investment | 5,477 | 17,988 | ||
Carrying value [Member] | ||||
Allowance for credit losses and recorded investment in loans by impairment methodology | ||||
Loans: collectively evaluated for impairment | 4,445,781 | |||
Loans: individually evaluated for impairment | 83,846 | |||
Total loans held for investment | $ 4,529,627 | $ 3,849,451 |
Loans and Credit Quality - Impa
Loans and Credit Quality - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | $ 78,696 | $ 86,723 |
Unpaid principal balance With no related allowance recorded | 80,904 | 92,431 |
Recorded investment With related allowance recorded | 5,150 | 3,785 |
Unpaid principal balance With related allowance recorded | 5,288 | 3,875 |
Total Recorded investment | 83,846 | 90,508 |
Total Unpaid principal balance | 86,192 | 96,306 |
Related allowance | 289 | 379 |
Recorded investment on performing modifications loan | 69,600 | 73,100 |
Consumer Portfolio Segment [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 72,046 | 78,702 |
Unpaid principal balance With no related allowance recorded | 73,231 | 81,550 |
Recorded investment With related allowance recorded | 4,442 | 3,437 |
Unpaid principal balance With related allowance recorded | 4,533 | 3,528 |
Total Recorded investment | 76,488 | 82,139 |
Total Unpaid principal balance | 77,764 | 85,078 |
Related allowance | 269 | 374 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 71,264 | 77,756 |
Unpaid principal balance With no related allowance recorded | 72,424 | 80,573 |
Recorded investment With related allowance recorded | 3,934 | 2,920 |
Unpaid principal balance With related allowance recorded | 4,025 | 3,011 |
Total Recorded investment | 75,198 | 80,676 |
Total Unpaid principal balance | 76,449 | 83,584 |
Related allowance | 224 | 325 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | Fair value [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 231 | |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 782 | 946 |
Unpaid principal balance With no related allowance recorded | 807 | 977 |
Recorded investment With related allowance recorded | 508 | 517 |
Unpaid principal balance With related allowance recorded | 508 | 517 |
Total Recorded investment | 1,290 | 1,463 |
Total Unpaid principal balance | 1,315 | 1,494 |
Related allowance | 45 | 49 |
Commercial Real Estate Portfolio Segment [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 1,263 | 3,609 |
Unpaid principal balance With no related allowance recorded | 1,291 | 4,568 |
Total Recorded investment | 1,263 | 3,609 |
Total Unpaid principal balance | 1,291 | 4,568 |
Related allowance | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 871 | |
Unpaid principal balance With no related allowance recorded | 898 | |
Total Recorded investment | 871 | |
Total Unpaid principal balance | 898 | |
Related allowance | 0 | |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 809 | 845 |
Unpaid principal balance With no related allowance recorded | 837 | 851 |
Total Recorded investment | 809 | 845 |
Total Unpaid principal balance | 837 | 851 |
Related allowance | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 454 | 1,893 |
Unpaid principal balance With no related allowance recorded | 454 | 2,819 |
Total Recorded investment | 454 | 1,893 |
Total Unpaid principal balance | 454 | 2,819 |
Related allowance | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 5,387 | 4,412 |
Unpaid principal balance With no related allowance recorded | 6,382 | 6,313 |
Recorded investment With related allowance recorded | 708 | 348 |
Unpaid principal balance With related allowance recorded | 755 | 347 |
Total Recorded investment | 6,095 | 4,760 |
Total Unpaid principal balance | 7,137 | 6,660 |
Related allowance | 20 | 5 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 2,989 | 1,467 |
Unpaid principal balance With no related allowance recorded | 3,288 | 1,948 |
Total Recorded investment | 2,989 | 1,467 |
Total Unpaid principal balance | 3,288 | 1,948 |
Related allowance | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment With no related allowance recorded | 2,398 | 2,945 |
Unpaid principal balance With no related allowance recorded | 3,094 | 4,365 |
Recorded investment With related allowance recorded | 708 | 348 |
Unpaid principal balance With related allowance recorded | 755 | 347 |
Total Recorded investment | 3,106 | 3,293 |
Total Unpaid principal balance | 3,849 | 4,712 |
Related allowance | $ 20 | $ 5 |
Loans and Credit Quality - Aver
Loans and Credit Quality - Average Recorded Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | $ 89,833 | $ 94,412 | $ 108,163 |
Interest Income Recognized | 3,455 | 3,180 | 3,678 |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 81,951 | 84,153 | 80,746 |
Interest Income Recognized | 3,043 | 2,941 | 2,753 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 80,519 | 82,745 | 78,824 |
Interest Income Recognized | 2,963 | 2,873 | 2,670 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 1,432 | 1,408 | 1,922 |
Interest Income Recognized | 80 | 68 | 83 |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 2,427 | 4,020 | 19,432 |
Interest Income Recognized | 98 | 134 | 693 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 686 | 435 | 10,862 |
Interest Income Recognized | 0 | 0 | 375 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 824 | 1,299 | 4,035 |
Interest Income Recognized | 25 | 47 | 111 |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 917 | 2,286 | 4,535 |
Interest Income Recognized | 73 | 87 | 207 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 5,455 | 6,239 | 7,985 |
Interest Income Recognized | 314 | 105 | 232 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 2,922 | 2,648 | 3,554 |
Interest Income Recognized | 170 | 22 | 69 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | 2,533 | 3,591 | 4,431 |
Interest Income Recognized | $ 144 | $ 83 | $ 163 |
Loans and Credit Quality - Lo80
Loans and Credit Quality - Loans by Loan Grade (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | $ 4,529,627 | $ 3,849,451 |
Fair value of loans held for investment | 5,477 | 17,988 |
Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 4,359,445 | 3,666,442 |
Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 128,563 | 129,445 |
Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 22,410 | 29,827 |
Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 19,209 | 23,737 |
Consumer Portfolio Segment [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,834,855 | 1,443,696 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,807,159 | 1,408,654 |
Consumer Portfolio Segment [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 3,125 | 4,945 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 12,079 | 15,686 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 12,492 | 14,411 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,381,366 | 1,083,822 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,355,965 | 1,051,463 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 2,982 | 4,348 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 11,328 | 15,172 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 11,091 | 12,839 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 453,489 | 359,874 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 451,194 | 357,191 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 143 | 597 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 751 | 514 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,401 | 1,572 |
Commercial Real Estate Portfolio Segment [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 2,038,450 | 1,899,211 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,970,396 | 1,838,859 |
Commercial Real Estate Portfolio Segment [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 64,901 | 52,955 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,973 | 4,701 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,180 | 2,696 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 622,782 | 588,672 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 613,181 | 562,950 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 8,801 | 23,741 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 0 | 1,110 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 800 | 871 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 728,037 | 674,219 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 693,190 | 660,234 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 34,038 | 13,140 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 507 | 508 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 302 | 337 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 687,631 | 636,320 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 664,025 | 615,675 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 22,062 | 16,074 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,466 | 3,083 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 78 | 1,488 |
Commercial Portfolio Segment [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 656,322 | 506,544 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 581,890 | 418,929 |
Commercial Portfolio Segment [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 60,537 | 71,545 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 8,358 | 9,440 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 5,537 | 6,630 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 391,613 | 282,891 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 361,429 | 247,046 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 20,949 | 28,778 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 6,399 | 6,055 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 2,836 | 1,012 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 264,709 | 223,653 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 220,461 | 171,883 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 39,588 | 42,767 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Special Mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 1,959 | 3,385 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans receivable before fees and costs | 2,701 | 5,618 |
Fair Value, Measurements, Recurring [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Fair value of loans held for investment | 5,477 | 17,988 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Fair value of loans held for investment | $ 5,477 | $ 17,988 |
Loans and Credit Quality - Agin
Loans and Credit Quality - Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 68,930 | $ 72,328 |
Current | 4,460,697 | 3,777,123 |
Total loans | 4,529,627 | 3,849,451 |
90-days or more past due and still accruing | 37,171 | 40,846 |
Fair value of loans held for investment | 5,477 | 17,988 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 12,261 | 4,834 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,457 | 6,106 |
90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 52,212 | 61,388 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 65,366 | 65,596 |
Current | 1,769,489 | 1,378,100 |
Total loans | 1,834,855 | 1,443,696 |
90-days or more past due and still accruing | 37,171 | 40,846 |
Consumer Portfolio Segment [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 11,243 | 4,561 |
Consumer Portfolio Segment [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,457 | 5,901 |
Consumer Portfolio Segment [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 49,666 | 55,134 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 63,192 | 63,332 |
Current | 1,318,174 | 1,020,490 |
Total loans | 1,381,366 | 1,083,822 |
90-days or more past due and still accruing | 37,171 | 40,846 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 10,493 | 4,310 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,437 | 5,459 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 48,262 | 53,563 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,174 | 2,264 |
Current | 451,315 | 357,610 |
Total loans | 453,489 | 359,874 |
90-days or more past due and still accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 750 | 251 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 20 | 442 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,404 | 1,571 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,021 | 2,607 |
Current | 2,037,429 | 1,896,604 |
Total loans | 2,038,450 | 1,899,211 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 641 | 23 |
Commercial Real Estate Portfolio Segment [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 380 | 2,584 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 894 |
Current | 622,782 | 587,778 |
Total loans | 622,782 | 588,672 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 23 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 871 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 302 | 337 |
Current | 727,735 | 673,882 |
Total loans | 728,037 | 674,219 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 302 | 337 |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 719 | 1,376 |
Current | 686,912 | 634,944 |
Total loans | 687,631 | 636,320 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 641 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 78 | 1,376 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,543 | 4,125 |
Current | 653,779 | 502,419 |
Total loans | 656,322 | 506,544 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 377 | 250 |
Commercial Portfolio Segment [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 205 |
Commercial Portfolio Segment [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,166 | 3,670 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 640 | 1,509 |
Current | 390,973 | 281,382 |
Total loans | 391,613 | 282,891 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 48 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 205 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 640 | 1,256 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,903 | 2,616 |
Current | 262,806 | 221,037 |
Total loans | 264,709 | 223,653 |
90-days or more past due and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 377 | 202 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,526 | 2,414 |
Fair Value, Measurements, Recurring [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,477 | 17,988 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | $ 5,477 | $ 17,988 |
Loans and Credit Quality - Perf
Loans and Credit Quality - Performing and Nonaccrual (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | $ 4,514,586 | $ 3,828,909 |
Nonaccrual | 15,041 | 20,542 |
Loans and Leases Receivable before Fees, Gross | 4,529,627 | 3,849,451 |
Fair value of loans held for investment | 5,477 | 17,988 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 1,822,360 | 1,429,408 |
Nonaccrual | 12,495 | 14,288 |
Loans and Leases Receivable before Fees, Gross | 1,834,855 | 1,443,696 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 1,370,275 | 1,071,105 |
Nonaccrual | 11,091 | 12,717 |
Loans and Leases Receivable before Fees, Gross | 1,381,366 | 1,083,822 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 452,085 | 358,303 |
Nonaccrual | 1,404 | 1,571 |
Loans and Leases Receivable before Fees, Gross | 453,489 | 359,874 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 2,038,070 | 1,896,627 |
Nonaccrual | 380 | 2,584 |
Loans and Leases Receivable before Fees, Gross | 2,038,450 | 1,899,211 |
Commercial Real Estate Portfolio Segment [Member] | Non-Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 622,782 | 587,801 |
Nonaccrual | 0 | 871 |
Loans and Leases Receivable before Fees, Gross | 622,782 | 588,672 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 727,735 | 673,882 |
Nonaccrual | 302 | 337 |
Loans and Leases Receivable before Fees, Gross | 728,037 | 674,219 |
Commercial Real Estate Portfolio Segment [Member] | Construction/land development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 687,553 | 634,944 |
Nonaccrual | 78 | 1,376 |
Loans and Leases Receivable before Fees, Gross | 687,631 | 636,320 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 654,156 | 502,874 |
Nonaccrual | 2,166 | 3,670 |
Loans and Leases Receivable before Fees, Gross | 656,322 | 506,544 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 390,973 | 281,635 |
Nonaccrual | 640 | 1,256 |
Loans and Leases Receivable before Fees, Gross | 391,613 | 282,891 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrual | 263,183 | 221,239 |
Nonaccrual | 1,526 | 2,414 |
Loans and Leases Receivable before Fees, Gross | 264,709 | 223,653 |
Fair Value, Measurements, Recurring [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,477 | 17,988 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Fair value of loans held for investment | $ 5,477 | $ 17,988 |
Loans and Credit Quality - TDRs
Loans and Credit Quality - TDRs (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 161 | 91 | 51 |
Recorded investment - TDR | $ 31,765 | $ 18,387 | $ 10,779 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 56 | 38 | 51 |
Recorded investment - TDR | $ 10,040 | $ 7,566 | $ 10,779 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 105 | 53 | |
Recorded investment - TDR | $ 21,725 | $ 10,821 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 160 | 90 | 49 |
Recorded investment - TDR | $ 31,747 | $ 18,336 | $ 10,297 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 56 | 38 | 49 |
Recorded investment - TDR | $ 10,040 | $ 7,566 | $ 10,297 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 104 | 52 | |
Recorded investment - TDR | $ 21,707 | $ 10,770 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 56 | 36 | 47 |
Recorded investment - TDR | $ 10,040 | $ 7,453 | $ 10,167 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 102 | 51 | |
Recorded investment - TDR | $ 21,356 | $ 10,578 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 2 | 2 | |
Recorded investment - TDR | $ 113 | $ 130 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 2 | 1 | |
Recorded investment - TDR | $ 351 | $ 192 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 1 | 1 | 2 |
Recorded investment - TDR | $ 18 | $ 51 | $ 482 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 2 | ||
Recorded investment - TDR | $ 482 | ||
Related charge-offs - TDR | $ 0 | ||
Commercial Portfolio Segment [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 1 | 1 | |
Recorded investment - TDR | $ 18 | $ 51 | |
Related charge-offs - TDR | $ 0 | $ 0 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Interest Rate Reduction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 2 | ||
Recorded investment - TDR | $ 482 | ||
Related charge-offs - TDR | $ 0 | ||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Payment Restructure [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loan modifications - TDR | loan | 1 | 1 | |
Recorded investment - TDR | $ 18 | $ 51 | |
Related charge-offs - TDR | $ 0 | $ 0 |
Loans and Credit Quality - TDR
Loans and Credit Quality - TDR Re-Defaults (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of days past due on re-default consumer loans | 60 days | |
Number of days past due on re-default commercial loans | 90 days | |
TDR balances which have subsequently re-defaulted | ||
Number of loan relationships that re-defaulted | loan | 21 | 20 |
Recorded investment | $ | $ 4,286 | $ 4,557 |
Consumer Portfolio Segment [Member] | Residential Mortgage [Member] | ||
TDR balances which have subsequently re-defaulted | ||
Number of loan relationships that re-defaulted | loan | 21 | 19 |
Recorded investment | $ | $ 4,286 | $ 4,464 |
Consumer Portfolio Segment [Member] | Home Equity Line of Credit [Member] | ||
TDR balances which have subsequently re-defaulted | ||
Number of loan relationships that re-defaulted | loan | 0 | 1 |
Recorded investment | $ | $ 0 | $ 93 |
Other Real Estate Owned - Sched
Other Real Estate Owned - Schedule of Other Real Estate Owned (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | |||
Real Estate, Gross | $ 664 | $ 8,066 | |
Valuation allowance | 0 | (2,823) | |
Total other real estate owned | 664 | 5,243 | $ 7,531 |
Residential Real Estate [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate, Gross | 664 | 2,133 | |
Commercial Real Estate [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate, Gross | 0 | 552 | |
Construction Loans [Member] | |||
Real Estate Properties [Line Items] | |||
Real Estate, Gross | $ 0 | $ 5,381 |
Other Real Estate Owned - Sch86
Other Real Estate Owned - Schedule of Activity in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Real Estate [Roll Forward] | |||
Beginning balance | $ 5,243 | $ 7,531 | |
Additions | 1,113 | 5,417 | |
Loss provisions | (33) | (1,553) | $ (695) |
Reductions related to sales | (5,659) | (6,152) | |
Ending balance | $ 664 | $ 5,243 | $ 7,531 |
Other Real Estate Owned - Sch87
Other Real Estate Owned - Schedule of Activity in the Valuation Allowance of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Real Estate Owned, Valuation Allowance [Roll Forward] | |||
Beginning balance | $ 3,095 | $ 1,764 | $ 1,303 |
Loss provisions | 33 | 1,553 | 695 |
(Charge-offs), net of recoveries | (3,128) | (222) | (234) |
Ending balance | $ 0 | $ 3,095 | $ 1,764 |
Other Real Estate Owned - Compo
Other Real Estate Owned - Components of Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |||
Maintenance (reimbursements) costs | $ (114) | $ 469 | $ 453 |
Loss provisions | 0 | 1,332 | 695 |
Net gain on sales | (416) | (37) | (447) |
Net operating income (loss) | 0 | 0 | (41) |
Net cost (income) from operations and sale of other real estate owned | $ (530) | $ 1,764 | $ 660 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
WASHINGTON | ||
Schedule of Real Estate Owned [Line Items] | ||
Percentage of real estate assets to portfolio | 76.80% | 78.20% |
Premises and Equipment, Net - S
Premises and Equipment, Net - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Furniture and equipment | $ 70,657 | $ 65,089 |
Leasehold improvements | 57,402 | 45,075 |
Land and buildings | 28,898 | 10,437 |
Property, plant and equipment, Gross | 156,957 | 120,601 |
Less: accumulated depreciation | (52,303) | (42,965) |
Property, plant and equipment, Net | $ 104,654 | $ 77,636 |
Premises and Equipment, Net - N
Premises and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 13.5 | $ 11.4 | $ 10.9 |
Deposits - Schedule of Deposit
Deposits - Schedule of Deposit Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposit balances, including stated rates | ||
Noninterest bearing accounts | $ 980,902 | $ 964,829 |
NOW accounts | 461,349 | 468,812 |
Statement savings accounts, due on demand | 293,858 | 301,361 |
Money market accounts, due on demand | 1,834,154 | 1,603,141 |
Certificates of deposit | 1,190,689 | 1,091,558 |
Deposits, Total | $ 4,760,952 | $ 4,429,701 |
Minimum [Member] | ||
Time Deposits [Line Items] | ||
Weighted Average Rate, NOW accounts | 0.00% | 0.00% |
Weighted Average Rate, Statement savings accounts | 0.05% | 0.05% |
Weighted Average Rate, Money market accounts | 0.00% | 0.00% |
Weighted Average Rate, Certificates of deposit | 0.05% | 0.05% |
Maximum [Member] | ||
Time Deposits [Line Items] | ||
Weighted Average Rate, NOW accounts | 1.98% | 1.00% |
Weighted Average Rate, Statement savings accounts | 1.13% | 1.13% |
Weighted Average Rate, Money market accounts | 1.80% | 1.70% |
Weighted Average Rate, Certificates of deposit | 3.80% | 3.80% |
Deposits - Interest Expense (De
Deposits - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest expense on deposits | |||
NOW accounts | $ 1,964 | $ 1,950 | $ 1,773 |
Statement savings accounts | 1,007 | 1,029 | 1,032 |
Money market accounts | 8,604 | 7,398 | 4,945 |
Certificates of deposit | 12,337 | 8,632 | 4,051 |
Interest expense on deposits, Total | $ 23,912 | $ 19,009 | $ 11,801 |
Deposits - Time Deposits (Detai
Deposits - Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Certificates of deposit outstanding | ||
Within one year | $ 889,790 | |
One to two years | 236,414 | |
Two to three years | 33,505 | |
Three to four years | 13,412 | |
Four to five years | 17,415 | |
Thereafter | 153 | |
Total | $ 1,190,689 | $ 1,091,558 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | |||
Public funds included in deposits | $ 178.4 | $ 21.8 | |
Weighted-average interest rate on certificates of deposit | 1.12% | 0.96% | 0.96% |
Aggregate amount of time deposits in denominations of more than $250,000 | $ 88.8 | $ 87.4 | |
Interest-bearing Domestic Deposit, Brokered | $ 345.5 | $ 234.4 |
Federal Home Loan Bank and Ot96
Federal Home Loan Bank and Other Borrowings - Schedule of FHLB Advances by Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
2,018 | $ 963,611 | |
2,019 | 10,000 | |
2,020 | 0 | |
2,021 | 0 | |
2022 and thereafter | 5,590 | |
Total | $ 979,201 | $ 868,379 |
Weighted average interest rate, 2018 | 1.53% | |
Weighted average interest rate, 2019 | 4.27% | |
Weighted average interest rate, 2020 | 0.00% | |
Weighted average interest rate, 2021 | 0.00% | |
Weighted average interest rate, 2022 and thereafter | 5.31% | |
Total - Weighted-average interest rate | 1.58% |
Federal Home Loan Bank and Ot97
Federal Home Loan Bank and Other Borrowings - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal Home Loan Bank and Other Borrowings [Line Items] | |||
Advances from Federal Home Loan Banks | $ 979,201,000 | $ 868,379,000 | |
Weighted-average interest rates on the advances | 1.58% | ||
Available line of credit with the FHLB as a percentage of assets | 35.00% | ||
Federal Home Loan Bank Stock | $ 46,639,000 | 40,347,000 | |
FHLB stock impairment | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase | $ 0 | $ 0 | |
Weighted Average [Member] | |||
Federal Home Loan Bank and Other Borrowings [Line Items] | |||
Weighted-average interest rates on the advances | 1.58% | 0.91% | 0.64% |
Federal Home Loan Bank of Des Moines [Member] | |||
Federal Home Loan Bank and Other Borrowings [Line Items] | |||
Borrowing capacity | $ 579,200,000 | ||
Federal Reserve Bank of San Francisco [Member] | |||
Federal Home Loan Bank and Other Borrowings [Line Items] | |||
Borrowing capacity | 331,500,000 | ||
Line of credit facility, amount outstanding from FRBSF | $ 0 | $ 0 |
Long Term Debt - Narrative (Det
Long Term Debt - Narrative (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 125,274,000 | $ 125,147,000 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 125,300,000 | 125,100,000 |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 61,900,000 | |
Senior Notes 6.50% Due 2026 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 63,400,000 | |
Face Amount | $ 65,000,000 | |
Stated interest rate (percent) | 6.50% |
Long Term Debt - Schedule of Su
Long Term Debt - Schedule of Subordinated Debt Securities (Details) - Subordinated Debt [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
HomeStreet Statutory Trust Subordinated Debt Securities I [Member] | |
Debt Instrument [Line Items] | |
Face Amount | $ 5,155 |
Call option | 5 years |
HomeStreet Statutory Trust Subordinated Debt Securities II [Member] | |
Debt Instrument [Line Items] | |
Face Amount | $ 20,619 |
Call option | 5 years |
HomeStreet Statutory Trust Subordinated Debt Securities III [Member] | |
Debt Instrument [Line Items] | |
Face Amount | $ 20,619 |
Call option | 5 years |
HomeStreet Statutory Trust Subordinated Debt Securities IV. [Member] | |
Debt Instrument [Line Items] | |
Face Amount | $ 15,464 |
Call option | 5 years |
3-Month LIBOR [Member] | HomeStreet Statutory Trust Subordinated Debt Securities I [Member] | |
Debt Instrument [Line Items] | |
Interest rate, Basis Spread on Variable Rate | 1.70% |
3-Month LIBOR [Member] | HomeStreet Statutory Trust Subordinated Debt Securities II [Member] | |
Debt Instrument [Line Items] | |
Interest rate, Basis Spread on Variable Rate | 1.50% |
3-Month LIBOR [Member] | HomeStreet Statutory Trust Subordinated Debt Securities III [Member] | |
Debt Instrument [Line Items] | |
Interest rate, Basis Spread on Variable Rate | 1.37% |
3-Month LIBOR [Member] | HomeStreet Statutory Trust Subordinated Debt Securities IV. [Member] | |
Debt Instrument [Line Items] | |
Interest rate, Basis Spread on Variable Rate | 1.68% |
Derivatives and Hedging Acti100
Derivatives and Hedging Activities - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 7,436,391 | $ 6,052,629 |
Derivatives before netting, Derivative assets | 26,432 | 59,226 |
Netting adjustments, Derivative Assets | (6,646) | 10,174 |
Derivative Assets | 19,786 | 69,400 |
Derivatives before netting, Derivative Liability | (25,225) | (42,399) |
Netting adjustments, Derivative Liabilities | 23,505 | 37,836 |
Derivative Liabilities | (1,720) | (4,563) |
Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,687,658 | 3,596,677 |
Derivatives before netting, Derivative assets | 1,311 | 24,623 |
Derivatives before netting, Derivative Liability | (1,445) | (15,203) |
Interest Rate Swaption [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 120,000 | 20,000 |
Derivatives before netting, Derivative assets | 0 | 1 |
Derivatives before netting, Derivative Liability | 0 | 0 |
Interest Rate Lock Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 472,733 | 746,102 |
Derivatives before netting, Derivative assets | 12,950 | 19,586 |
Derivatives before netting, Derivative Liability | (25) | (367) |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,869,000 | 1,689,850 |
Derivatives before netting, Derivative assets | 12,171 | 15,016 |
Derivatives before netting, Derivative Liability | (23,654) | (26,829) |
Eurodollar Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,287,000 | |
Derivatives before netting, Derivative assets | 0 | |
Derivatives before netting, Derivative Liability | (101) | |
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral | $ 16,900 | $ 48,000 |
Derivatives and Hedging Acti101
Derivatives and Hedging Activities - Master Netting Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Gross fair value, Derivative assets | $ 26,432 | $ 59,226 |
Netting adjustments, Derivative Assets | (6,646) | 10,174 |
Derivative Assets | 19,786 | 69,400 |
Securities pledged, Derivative assets | 0 | 0 |
Net amount - Derivative assets | 19,786 | 69,400 |
Gross fair value, Derivative Liabilities | (25,225) | (42,399) |
Netting adjustments, Derivative Liabilities | 23,505 | 37,836 |
Derivative Liabilities | (1,720) | (4,563) |
Securities pledged, Derivative liabilities | 1,213 | 1,820 |
Net amount, Derivative liabilities | (507) | (2,743) |
Fair Value, Concentration of Credit Risk, Master Netting Arrangements [Member] | ||
Derivative [Line Items] | ||
Cash collateral | $ 16,900 | $ 48,000 |
Derivatives and Hedging Acti102
Derivatives and Hedging Activities - Gain/loss recognized in income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loan origination and sale activities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized on derivatives, including economic hedge | $ (28,549) | $ 12,443 | $ 2,080 |
Loan servicing income (loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized on derivatives, including economic hedge | 9,732 | (4,680) | 11,709 |
Other [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized on derivatives, including economic hedge | 0 | 735 | 0 |
Mortgages [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) recognized on derivatives, including economic hedge | $ (18,817) | $ 8,498 | $ 13,789 |
Derivatives and Hedging Acti103
Derivatives and Hedging Activities - Narrative (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives designated as cash flow or foreign currency hedge | $ 0 | $ 0 |
Mortgage Banking Operations - S
Mortgage Banking Operations - Schedule of Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans held for sale | ||
Loans held for sale | $ 610,902 | $ 714,559 |
Single family [Member] | ||
Loans held for sale | ||
Single family, held-for-sale | 577,313 | 656,334 |
Multifamily DUS [Member] | ||
Loans held for sale | ||
Loans held for sale | 29,651 | 35,506 |
SBA [Member] | ||
Loans held for sale | ||
Loans held for sale | 3,938 | 5,207 |
CRE Non-DUS [Member] | ||
Loans held for sale | ||
Loans held for sale | $ 0 | $ 17,512 |
Mortgage Banking Operations 105
Mortgage Banking Operations - Schedule of Loans Sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | |||
Loans sold | $ 8,204,573 | $ 9,255,065 | $ 7,272,692 |
Loans transferred from held for sale to held for investment | 100,049 | 12,311 | 25,668 |
Single family [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loans sold | 7,508,949 | 8,785,412 | 7,038,635 |
Loans transferred from held for sale to held for investment | 63,200 | ||
Multifamily DUS [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loans sold | 347,084 | 301,442 | 204,744 |
SBA [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loans sold | 26,841 | 17,308 | 14,275 |
CRE Non-DUS [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loans sold | $ 321,699 | $ 150,903 | $ 15,038 |
Mortgage Banking Operations 106
Mortgage Banking Operations - Schedule of Gain on Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain on mortgage loan origination and sale activities [Line Items] | |||
Net gain on loan origination and sale activities | $ 255,876 | $ 307,313 | $ 236,388 |
Single family [Member] | |||
Gain on mortgage loan origination and sale activities [Line Items] | |||
Servicing value and secondary market gains | 209,027 | 260,477 | 205,513 |
Loan origination and funding fees | 26,822 | 29,966 | 22,221 |
Net gain on loan origination and sale activities | 235,849 | 290,443 | 227,734 |
Multifamily DUS [Member] | |||
Gain on mortgage loan origination and sale activities [Line Items] | |||
Net gain on loan origination and sale activities | 13,210 | 11,397 | 7,125 |
SBA [Member] | |||
Gain on mortgage loan origination and sale activities [Line Items] | |||
Net gain on loan origination and sale activities | 2,439 | 1,414 | 1,070 |
CRE Non-DUS [Member] | |||
Gain on mortgage loan origination and sale activities [Line Items] | |||
Net gain on loan origination and sale activities | $ 4,378 | $ 4,059 | $ 459 |
Mortgage Banking Operations - L
Mortgage Banking Operations - Loans Serviced for Others (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans serviced for others | ||
Loans serviced for others | $ 24,022,343 | $ 20,665,819 |
Single Family Residential [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 22,631,147 | 19,488,456 |
Agency Securities [Member] | Single Family Residential [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 22,123,710 | 18,931,835 |
Single Family other [Member] | Single Family Residential [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 507,437 | 556,621 |
Commercial Portfolio Segment [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 1,391,196 | 1,177,363 |
Commercial Portfolio Segment [Member] | Multifamily DUS [Member] | ||
Loans serviced for others | ||
Loans serviced for others | 1,311,399 | 1,108,040 |
Commercial Portfolio Segment [Member] | Other [Member] | ||
Loans serviced for others | ||
Loans serviced for others | $ 79,797 | $ 69,323 |
Mortgage Banking Operations - M
Mortgage Banking Operations - Mortgage Repurchase Liability (Details) - Representations and Warranties Reserve for Loan Receivables [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Balance, beginning of period | $ 3,382 | $ 2,922 |
Additions, net of adjustments | 174 | 1,542 |
Realized losses | (541) | (1,082) |
Balance, end of period | $ 3,015 | $ 3,382 |
Mortgage Banking Operations 109
Mortgage Banking Operations - Servicing Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | |||
Servicing fees and other | $ 66,192 | $ 53,654 | $ 42,016 |
Changes in fair value of single family MSRs due to modeled amortization | (35,451) | (33,305) | (34,038) |
Amortization of multifamily and SBA MSRs | (3,932) | (2,635) | (1,992) |
Net Servicing Income | 26,809 | 17,714 | 5,986 |
Changes in fair value of MSRs due to changes in market inputs and/or model updates | (1,157) | 20,025 | 6,555 |
Mortgage servicing rights, risk management | 8,575 | 15,345 | 18,264 |
Loan servicing income | 35,384 | 33,059 | 24,250 |
Servicing Contracts [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Net gain (loss) from derivatives economically hedging MSR | $ 9,732 | $ (4,680) | $ 11,709 |
Mortgage Banking Operations - K
Mortgage Banking Operations - Key Economic Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rates per annum [Abstract] | |||
Constant prepayment rate (CPR) | 13.36% | 13.93% | 14.95% |
Discount rate | 10.27% | 10.28% | 10.29% |
Mortgage Banking Operations 111
Mortgage Banking Operations - Sensitivity Analysis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Single family mortgage servicing rights | $ 258,560 | $ 226,113 |
Expected weighted-average life (in years) | 6 years 1 month 13 days | |
Constant prepayment rate | 12.40% | |
Impact on 25 basis points adverse change | $ (21,004) | |
Impact on 50 basis points adverse change | $ (42,036) | |
Discount rate | 10.40% | |
Impact on fair value of 100 basis points increase | $ (8,958) | |
Impact on fair value of 200 basis points increase | $ (17,567) |
Mortgage Banking Operations 112
Mortgage Banking Operations - SF MSR Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Assets at Fair Value [Line Items] | |||
Beginning balance | $ 226,113 | ||
Changes due to modeled amortization | 35,451 | $ 33,305 | $ 34,038 |
Changes in fair value of MSRs due to changes in market inputs and/or model updates | (1,157) | 20,025 | 6,555 |
Ending balance | 258,560 | 226,113 | |
Single family mortgage servicing rights [Member] | |||
Servicing Assets at Fair Value [Line Items] | |||
Beginning balance | 226,113 | 156,604 | 112,439 |
Originations | 68,499 | 82,789 | 70,659 |
Purchases | 565 | 0 | 989 |
Changes due to modeled amortization | (35,451) | (33,305) | (34,038) |
Net additions and amortization | 33,613 | 49,484 | 37,610 |
Changes in fair value of MSRs due to changes in market inputs and/or model updates | (1,166) | 20,025 | 6,555 |
Ending balance | $ 258,560 | $ 226,113 | $ 156,604 |
Mortgage Banking Operations 113
Mortgage Banking Operations - MF MSR Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | |||
Beginning balance | $ 19,747 | $ 14,651 | $ 10,885 |
Origination | 9,915 | 7,731 | 5,758 |
Amortization | (3,569) | (2,635) | (1,992) |
Ending balance | $ 26,093 | $ 19,747 | $ 14,651 |
Mortgage Banking Operations 114
Mortgage Banking Operations - MSR Projected Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Projected Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2,018 | $ 3,527 | |||
2,019 | 3,429 | |||
2,020 | 3,355 | |||
2,021 | 3,146 | |||
2,022 | 2,825 | |||
2023 and thereafter | 9,811 | |||
Carrying value of multifamily MSR | $ 26,093 | $ 19,747 | $ 14,651 | $ 10,885 |
Mortgage Banking Operations - N
Mortgage Banking Operations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Banking Operations (Narrative) [Abstract] | ||
Servicing Advances | $ 5.3 | $ 7.5 |
Early Buyout Loans [Member] | ||
Mortgage Banking Operations (Narrative) [Abstract] | ||
Loans Receivable, in Ginnie Mae pool | $ 39.3 | $ 35.8 |
Multifamily [Member] | ||
Mortgage Banking Operations (Narrative) [Abstract] | ||
Weighted average life of company's multifamily MSRs | 10 years 3 months 29 days |
Commitments, Guarantees, and116
Commitments, Guarantees, and Contingencies - Narrative (Details) claim in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)claimRate | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||
Unfunded loan commitments | $ 56,900 | $ 42,600 | |
Allowance for unfunded commitments | 1,269 | 1,263 | $ 1,381 |
Rental expense | $ 26,100 | 22,700 | 20,100 |
Number of material claims pending | claim | 0 | ||
Representations and Warranties Reserve for Loan Receivables [Member] | |||
Loss Contingencies [Line Items] | |||
Unfunded commitment balance of loans sold on a servicing-retained basis | $ 22,710,000 | 19,560,000 | |
Reserve liability related to mortgage repurchase | 3,015 | 3,382 | 2,922 |
Undisbursed construction loan funds [Member] | |||
Loss Contingencies [Line Items] | |||
Unfunded commitment balance of loans sold on a servicing-retained basis | 706,700 | 603,800 | |
Home Equity and Business Banking Credit Lines [Member] | |||
Loss Contingencies [Line Items] | |||
Unfunded commitment balance of loans sold on a servicing-retained basis | 456,100 | 289,300 | |
Loss Sharing Relationship [Member] | |||
Loss Contingencies [Line Items] | |||
Reserve liability related to multifamily DUS Program | 2,000 | 1,800 | |
Credit Risk [Member] | |||
Loss Contingencies [Line Items] | |||
Reserve liability related to mortgage repurchase | 3,000 | 3,400 | |
Multifamily [Member] | Loss Sharing Relationship [Member] | |||
Loss Contingencies [Line Items] | |||
UPB of loans sold through DUS | 1,310,000 | 1,110,000 | |
Loss incurred - related to DUS | $ 0 | 0 | $ 0 |
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of Loss that Lender is Responsible For on Loans Sold under Loss Sharing Agreement | Rate | 5.00% | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of Loss that Lender is Responsible For on Loans Sold under Loss Sharing Agreement | Rate | 20.00% | ||
Investment commitment [Member] | |||
Loss Contingencies [Line Items] | |||
Investment in qualifying small businesses | $ 11,000 | $ 4,000 |
Commitments, Guarantees, and117
Commitments, Guarantees, and Contingencies - Schedule of Minimum Rental Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 26,477 |
2,019 | 23,685 |
2,020 | 20,904 |
2,021 | 17,757 |
2,022 | 14,995 |
2023 and thereafter | 48,752 |
Total minimum payments | $ 152,570 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred income tax benefit | $ 23,325 | $ 0 | $ 0 |
Alternative minimum tax credit carry forwards, Deferred Tax Assets | 1,600 | ||
Tax basis in unrecorded bad debt reserves with no liability recorded | 12,700 | 12,700 | |
Unrecognized tax positions including potential interest | 514 | 438 | |
Potential interest on unrecognized tax benefit | 19 | 19 | |
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 10,800 | 16,100 | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 17,400 | $ 14,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current (benefit) expense | |||||||||||
Federal | $ (649) | $ (1,154) | $ (1,469) | ||||||||
State and local | 62 | 1,595 | 668 | ||||||||
Deferred expense (benefit) | |||||||||||
Federal | 17,637 | 27,538 | 15,301 | ||||||||
Revaluation of deferred items | (23,325) | 0 | 0 | ||||||||
State and local | 528 | 3,058 | 602 | ||||||||
Tax credit investment amortization | 2,990 | 1,589 | 486 | ||||||||
Total income tax (benefit) expense | $ (17,873) | $ 5,938 | $ 4,923 | $ 4,255 | $ 1,112 | $ 15,197 | $ 13,078 | $ 3,239 | $ (2,757) | $ 32,626 | $ 15,588 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Income tax at statutory rate | $ 23,166 | $ 31,772 | $ 19,917 | ||||||||
State income tax expense net of federal tax benefit | 1,207 | 2,073 | 715 | ||||||||
Tax-exempt interest | (2,855) | (2,177) | (1,307) | ||||||||
Tax credits | (2,041) | (1,389) | (903) | ||||||||
Amortization of and pass-through losses from low income housing investments | 1,716 | 1,018 | 658 | ||||||||
Change in state tax rate | (714) | 811 | 722 | ||||||||
Bargain purchase gain | 0 | 0 | (2,704) | ||||||||
Reversal of deferred tax consequences on historical AFS | (2) | 0 | (1,107) | ||||||||
Impact from Federal Rate Change | (23,325) | 0 | 0 | ||||||||
Uncertain tax positions | 76 | 0 | 0 | ||||||||
Other, net | 15 | 518 | (403) | ||||||||
Total income tax (benefit) expense | $ (17,873) | $ 5,938 | $ 4,923 | $ 4,255 | $ 1,112 | $ 15,197 | $ 13,078 | $ 3,239 | $ (2,757) | $ 32,626 | $ 15,588 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of Deferred Tax Assets [Abstract] | ||
Provision for loan losses | $ 11,844 | $ 18,123 |
Federal and state net operating loss carryforwards | 3,914 | 7,073 |
Other real estate owned | 0 | 1,196 |
Accrued liabilities | 4,747 | 4,453 |
Other investments | 145 | 283 |
Leases | 2,336 | 3,121 |
Unrealized loss on investment available for sale securities | 2,286 | 5,714 |
Tax credits | 1,695 | 1,369 |
Stock-based compensation | 993 | 1,164 |
Loan valuation | 1,857 | 4,547 |
Other, net | 1,158 | 2,163 |
Deferred tax assets, gross | 30,975 | 49,206 |
Components of Deferred Tax Liabilities [Abstract] | ||
Mortgage servicing rights | (58,195) | (76,680) |
Federal Home Loan Bank Dividends | (316) | (522) |
Deferred loan fees and costs | (3,828) | (3,653) |
Premises and equipment | (5,267) | (6,960) |
Intangibles | (1,371) | (2,813) |
Other, net | (141) | (107) |
Deferred tax liability, gross | (69,118) | (90,735) |
Net deferred tax liability | $ (38,143) | $ (41,529) |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance, beginning of year | $ 419 | $ 419 | $ 0 |
Increases related to prior year tax positions | 76 | 0 | 419 |
Balance, end of year | $ 495 | $ 419 | $ 419 |
401(k) Savings Plan (Details)
401(k) Savings Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer Contribution Amount | $ 8.5 | $ 7.7 | $ 6.1 |
Tranche One [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan automatic enrollment percent | 3.00% | ||
Percentage of employer matching | 100.00% | ||
Tranche Two [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan automatic enrollment percent | 2.00% | ||
Percentage of employer matching | 50.00% |
Share-Based Compensation Pla124
Share-Based Compensation Plans - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of stock options outstanding, beginning balance (shares) | 268,547 | |
Number of options exercised (shares) | (1,000) | |
Number of stock options outstanding, ending balance (shares) | 267,547 | 268,547 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Exercise Price, beginning balance (in dollars per share) | $ 12 | |
Weighted Average Exercise Price, exercised (in dollars per share) | 11 | |
Weighted Average Exercise Price, ending balance (in dollars per share) | $ 12.01 | $ 12 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining term, beginning balance | 4 years 2 months 12 days | 5 years 2 months 12 days |
Weighted Average Remaining Contractual Term, exercised | 0 days | |
Weighted average remaining term, ending balance | 4 years 2 months 12 days | 5 years 2 months 12 days |
Aggregate Intrinsic Value, beginning balance | $ 5,263 | |
Aggregate Intrinsic Value, exercised | 15 | |
Aggregate Intrinsic Value, ending balance | $ 4,533 | $ 5,263 |
Number of stock options that are exercisable and expected to be exercisable (shares) | 267,547 | |
Number of Options exercisable (shares) | 267,547 | |
Weighted Average Exercise Price, options exercisable or expected to be exercisable (in dollars per share) | $ 12.01 | |
Weighted Average Exercise Price, options exercisable (in dollars per share) | $ 12.01 | |
Weighted average remaining contractual term, options exercisable and expected to be exercisable | 4 years 2 months 12 days | |
Weighted average remaining contractual term, options exercisable | 4 years 2 months 12 days | |
Aggregate Intrinsic Value of options that are exercisable and expected to be exercisable | $ 4,533 | |
Aggregate Intrinsic Value of options exercisable | $ 4,533 |
Share-Based Compensation Pla125
Share-Based Compensation Plans - Schedule of Restricted Shares Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted shares outstanding at December 31, 2016 | shares | 256,454 |
Granted (shares) | shares | 163,070 |
Cancelled or forfeited (shares) | shares | (38,146) |
Vested (shares) | shares | (74,703) |
Restricted shares outstanding at December 31, 2017 | shares | 306,675 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, Weighted Average Grant Date Fair Value, beginning balance (in dollars per share) | $ / shares | $ 19.34 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 27.06 |
Cancelled or forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 22.36 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 18.76 |
Outstanding, Weighted Average Grant Date Fair Value, Outstanding, ending balance (in dollars per share) | $ / shares | $ 23.21 |
Share-Based Compensation Pla126
Share-Based Compensation Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation cost | $ 2,500,000 | $ 1,800,000 | $ 1,100,000 |
Maximum number of shares of common stock available for grant under the 2014 EIP | 900,000 | ||
Number of options exercised | 1,000 | ||
Cash received and related income tax benefits | $ 16,000 | ||
Unrecognized compensation costs related to stock options | $ 0 | ||
Number of stock options granted | 0 | 0 | 0 |
Exceed percentage of grant date fair value, one | 25.00% | ||
Exceed percentage of grant date fair value, two | 40.00% | ||
Exceed percentage of grant date fair value, three | 50.00% | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to nonvested restricted shares | $ 3,800,000 | ||
Weighted-average service period remaining for unrecognized compensation costs expected to be recognized | 1 year 10 months 24 days | ||
Share-based compensation vesting period | 3 years | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 3 years | ||
Share-based compensation recognized over requisite period | 3 years |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Fair Value Hierarchy Measurement (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Investment securities available for sale | $ 846,268 | $ 993,990 |
Single family mortgage servicing rights | 258,560 | 226,113 |
Single family loans held for sale | 577,313 | 656,334 |
Single family loans held for investment | 5,477 | 17,988 |
Derivative Assets | 19,786 | 69,400 |
Liabilities: | ||
Derivative Liabilities | 1,720 | 4,563 |
Residential Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 130,090 | 177,074 |
Commercial Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 23,694 | 25,536 |
Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 388,452 | 467,673 |
Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 24,737 | 51,122 |
Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 9,650 | |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 258,560 | 226,113 |
Single family loans held for sale | 577,313 | 656,334 |
Single family loans held for investment | 5,477 | 17,988 |
Total assets | 1,714,051 | 1,953,651 |
Liabilities: | ||
Total Liabilities | 25,225 | 42,399 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 130,090 | 177,074 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 23,694 | 25,536 |
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 388,452 | 467,673 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 160,424 | 191,201 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 98,569 | 70,764 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 24,737 | 51,122 |
Fair Value, Measurements, Recurring [Member] | US Treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 10,652 | 10,620 |
Fair Value, Measurements, Recurring [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 9,650 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 0 | 0 |
Single family loans held for sale | 0 | 0 |
Single family loans held for investment | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Total Liabilities | 101 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | US Treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 0 | 0 |
Single family loans held for sale | 575,977 | 614,524 |
Single family loans held for investment | 0 | 0 |
Total assets | 1,435,728 | 1,648,154 |
Liabilities: | ||
Total Liabilities | 25,099 | 42,032 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 130,090 | 177,074 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 23,694 | 25,536 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 388,452 | 467,673 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 160,424 | 191,201 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 98,569 | 70,764 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 24,737 | 51,122 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | US Treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 10,652 | 10,620 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 9,650 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets: | ||
Single family mortgage servicing rights | 258,560 | 226,113 |
Single family loans held for sale | 1,336 | 41,810 |
Single family loans held for investment | 5,477 | 17,988 |
Total assets | 278,323 | 305,497 |
Liabilities: | ||
Total Liabilities | 25 | 367 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal Bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations Residential [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations Commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | US Treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Agency Securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Future [Member] | ||
Liabilities: | ||
Derivative Liabilities | 101 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Future [Member] | Level 1 [Member] | ||
Liabilities: | ||
Derivative Liabilities | 101 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Future [Member] | Level 2 [Member] | ||
Liabilities: | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Eurodollar Future [Member] | Level 3 [Member] | ||
Liabilities: | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | ||
Assets: | ||
Derivative Assets | 1,311 | 24,623 |
Liabilities: | ||
Derivative Liabilities | 1,445 | 15,203 |
Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative Assets | 1,311 | 24,623 |
Liabilities: | ||
Derivative Liabilities | 1,445 | 15,203 |
Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaption [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative Assets | 0 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaption [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative Assets | 0 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | ||
Assets: | ||
Derivative Assets | 12,950 | 19,586 |
Liabilities: | ||
Derivative Liabilities | 25 | 367 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative Assets | 12,950 | 19,586 |
Liabilities: | ||
Derivative Liabilities | 25 | 367 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | ||
Assets: | ||
Derivative Assets | 12,172 | 15,016 |
Liabilities: | ||
Derivative Liabilities | 23,654 | 26,829 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Level 1 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative Assets | 12,172 | 15,016 |
Liabilities: | ||
Derivative Liabilities | 23,654 | 26,829 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Level 3 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | $ 0 | 0 |
Interest Rate Swaption [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Derivative Assets | 1 | |
Interest Rate Swaption [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaption [Member] | Level 2 [Member] | ||
Assets: | ||
Derivative Assets | $ 1 |
Fair Value Measurement - Sch128
Fair Value Measurement - Schedule of Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of loans held for investment | $ 5,477 | $ 17,988 |
Loans held-for-sale | $ 577,313 | $ 656,334 |
Market price movement from comparable bond | 0.00% | |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Market price movement from comparable bond | 0.00% | |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Market price movement from comparable bond | 100.00% | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of loans held for investment | $ 5,477 | $ 17,988 |
Loans held-for-sale | 577,313 | 656,334 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of loans held for investment | 5,477 | 17,988 |
Loans held-for-sale | $ 1,336 | $ 41,810 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Loans held for investment [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Implied spread | 3.61% | 3.62% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Loans held for investment [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Implied spread | 4.96% | 4.97% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Loans held for investment [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Implied spread | 4.10% | 4.49% |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Loans held for sale [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Implied spread | 3.93% | 3.46% |
Market price movement from comparable bond | (0.38%) | (0.49%) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Loans held for sale [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Implied spread | 3.93% | 6.14% |
Market price movement from comparable bond | (0.10%) | (0.11%) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Loans held for sale [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Implied spread | 3.93% | 4.23% |
Market price movement from comparable bond | (0.24%) | (0.27%) |
Fair Value Measurement - Sch129
Fair Value Measurement - Schedule of Fair Value Changes and Activity for Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest Rate Lock Commitments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance, net | $ 19,219 | $ 17,711 |
Settlements | (132,376) | (144,954) |
Total realized/unrealized gains | 126,082 | 146,462 |
Ending balance, net | 12,925 | 19,219 |
Loans held for sale [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance, net | 41,810 | 49,322 |
Additions | 4,327 | 14,454 |
Transfers | 12,797 | (4,913) |
Settlements | (58,396) | (14,524) |
Total realized/unrealized gains | 798 | (2,529) |
Ending balance, net | 1,336 | 41,810 |
Loans held for investment [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance, net | 17,988 | 21,544 |
Additions | 127 | 357 |
Transfers | (12,272) | 4,913 |
Settlements | (480) | (7,608) |
Total realized/unrealized gains | 114 | (1,218) |
Ending balance, net | $ 5,477 | $ 17,988 |
Fair Value Measurement - Sch130
Fair Value Measurement - Schedule of Interest Rate Lock and Purchase Loan Commitments Fair Value Measure Using Level 3 Unobservable Inputs (Details) - Interest Rate Lock Commitments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Interest rate lock and purchase loan commitments, net | $ 12,925 | $ 19,219 | $ 17,711 |
Minimum [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value inputs, fall out factor | 0.00% | 0.50% | |
Fair value inputs, initial value of servicing | 0.69% | 0.65% | |
Maximum [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value inputs, fall out factor | 58.38% | 60.34% | |
Fair value inputs, initial value of servicing | 1.73% | 2.27% | |
Weighted Average [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value inputs, fall out factor | 12.05% | 11.95% | |
Fair value inputs, initial value of servicing | 1.09% | 1.08% |
Fair Value Measurement - FV Uno
Fair Value Measurement - FV Unobservable Inputs - Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | $ 846,268 | $ 993,990 | |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | |||
Gains/losses on loans held for investment | 1,030 | 354 | $ (2,000) |
Gains/losses on other real estate owned | 416 | 37 | $ 447 |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 1,918 | 4,586 | |
Other real estate owned | 5,933 | ||
Total | 1,918 | 10,519 | |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis [Abstract] | |||
Gains/losses on loans held for investment | (163) | (881) | |
Gains/losses on other real estate owned | (1,332) | ||
Total gains/(losses) | (163) | (2,213) | |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Other real estate owned | 0 | ||
Total | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Other real estate owned | 0 | ||
Total | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 1,918 | 4,586 | |
Other real estate owned | 5,933 | ||
Total | $ 1,918 | $ 10,519 |
Fair Value Measurement - FV of
Fair Value Measurement - FV of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Investment securities held to maturity | $ 58,128 | $ 49,488 | ||
Single family loans held for investment | 5,477 | 17,988 | ||
Loans held for sale – multifamily and other | 577,313 | 656,334 | ||
Mortgage servicing rights – multifamily | 26,093 | 19,747 | $ 14,651 | $ 10,885 |
Carrying value [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 72,718 | 53,932 | ||
Investment securities held to maturity | 58,036 | 49,861 | ||
Single family loans held for investment | 4,500,989 | 3,801,039 | ||
Loans held for sale - transferred from held for investment | 17,512 | |||
Federal Home Loan Bank stock | 46,639 | 40,347 | ||
Liabilities: | ||||
Deposits | 4,760,952 | 4,429,701 | ||
Federal Home Loan Bank advances | 979,201 | 868,379 | ||
Long-term debt | 125,274 | 125,147 | ||
Fair value [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 72,718 | 53,932 | ||
Investment securities held to maturity | 58,128 | 49,488 | ||
Single family loans held for investment | 4,497,884 | 3,840,990 | ||
Loans held for sale - transferred from held for investment | 17,512 | |||
Federal Home Loan Bank stock | 46,639 | 40,347 | ||
Liabilities: | ||||
Deposits | 4,739,563 | 4,410,213 | ||
Federal Home Loan Bank advances | 981,441 | 870,782 | ||
Long-term debt | 108,530 | 122,357 | ||
Level 1 [Member] | Fair value [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 72,718 | 53,932 | ||
Investment securities held to maturity | 0 | 0 | ||
Single family 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 | ||
Long-term debt | 0 | 0 | ||
Level 2 [Member] | Fair value [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Investment securities held to maturity | 58,128 | 49,488 | ||
Single family loans held for investment | 0 | 0 | ||
Loans held for sale - transferred from held for investment | 0 | |||
Federal Home Loan Bank stock | 46,639 | 40,347 | ||
Liabilities: | ||||
Deposits | 4,739,563 | 4,410,213 | ||
Federal Home Loan Bank advances | 981,441 | 870,782 | ||
Long-term debt | 108,530 | 122,357 | ||
Level 3 [Member] | Fair value [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Investment securities held to maturity | 0 | 0 | ||
Single family loans held for investment | 4,497,884 | 3,840,990 | ||
Loans held for sale - transferred from held for investment | 17,512 | |||
Federal Home Loan Bank stock | 0 | 0 | ||
Liabilities: | ||||
Deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Multifamily [Member] | Carrying value [Member] | ||||
Assets: | ||||
Loans held for sale – multifamily and other | 33,589 | 40,712 | ||
Mortgage servicing rights – multifamily | 26,093 | 19,747 | ||
Multifamily [Member] | Fair value [Member] | ||||
Assets: | ||||
Loans held for sale – multifamily and other | 33,589 | 40,712 | ||
Mortgage servicing rights – multifamily | 28,362 | 21,610 | ||
Multifamily [Member] | Level 1 [Member] | Fair value [Member] | ||||
Assets: | ||||
Loans held for sale – multifamily and other | 0 | 0 | ||
Mortgage servicing rights – multifamily | 0 | 0 | ||
Multifamily [Member] | Level 2 [Member] | Fair value [Member] | ||||
Assets: | ||||
Loans held for sale – multifamily and other | 33,589 | 40,712 | ||
Mortgage servicing rights – multifamily | 0 | 0 | ||
Multifamily [Member] | Level 3 [Member] | Fair value [Member] | ||||
Assets: | ||||
Loans held for sale – multifamily and other | 0 | 0 | ||
Mortgage servicing rights – multifamily | $ 28,362 | $ 21,610 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 5,477,000 | $ 17,988,000 |
Market price movement from comparable bond | 0.00% | |
Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market price movement from comparable bond | 0.00% | |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market price movement from comparable bond | 100.00% | |
Loans Receivable [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of stated value | 0.00% | 7.00% |
Loans Receivable [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of stated value | 100.00% | 63.40% |
Loans Receivable [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of stated value | 46.70% | 57.50% |
Real Estate Acquired in Satisfaction of Debt [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of stated value | 0.00% | |
Real Estate Acquired in Satisfaction of Debt [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of stated value | 49.10% | |
Real Estate Acquired in Satisfaction of Debt [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range of stated value | 17.90% | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of loans held for investment | $ 5,477,000 | $ 17,988,000 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of loans held for investment | $ 5,477,000 | $ 17,988,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of EPS Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 34,915 | $ 13,839 | $ 11,209 | $ 8,983 | $ 2,294 | $ 27,701 | $ 21,749 | $ 6,407 | $ 68,946 | $ 58,151 | $ 41,319 |
Weighted average shares: | |||||||||||
Basic weighted average number of shares outstanding | 26,864,657 | 24,615,990 | 20,818,045 | ||||||||
Dilutive effect of outstanding common stock equivalents (in shares) | 227,362 | 227,693 | 241,156 | ||||||||
Diluted weighted-average number of common stock outstanding | 27,092,019 | 24,843,683 | 21,059,201 | ||||||||
Earnings per share: | |||||||||||
Basic income per share (in dollars per share) | $ 1.30 | $ 0.51 | $ 0.42 | $ 0.33 | $ 0.09 | $ 1.12 | $ 0.88 | $ 0.27 | $ 2.57 | $ 2.36 | $ 1.98 |
Diluted income per share (in dollars per share) | $ 1.29 | $ 0.51 | $ 0.41 | $ 0.33 | $ 0.09 | $ 1.11 | $ 0.87 | $ 0.27 | $ 2.54 | $ 2.34 | $ 1.96 |
Aggregate number of common stock equivalents and unvested restricted stock | 3,224 | 0 | 0 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Condensed income statement: | |||||||||||
Net interest expense | $ 51,079 | $ 50,840 | $ 46,868 | $ 45,651 | $ 48,074 | $ 46,802 | $ 44,482 | $ 40,691 | $ 194,438 | $ 180,049 | $ 148,338 |
Provision for credit losses | 0 | 250 | 500 | 0 | 350 | 1,250 | 1,100 | 1,400 | 750 | 4,100 | 6,100 |
Noninterest income | 72,801 | 83,884 | 81,008 | 74,461 | 73,221 | 111,745 | 102,476 | 71,708 | 312,154 | 359,150 | 281,237 |
Noninterest expense | 106,838 | 114,697 | 111,244 | 106,874 | 117,539 | 114,399 | 111,031 | 101,353 | 439,653 | 444,322 | 366,568 |
Income before income taxes | 17,042 | 19,777 | 16,132 | 13,238 | 3,406 | 42,898 | 34,827 | 9,646 | 66,189 | 90,777 | 56,907 |
Income tax (benefit) expense | (17,873) | 5,938 | 4,923 | 4,255 | 1,112 | 15,197 | 13,078 | 3,239 | (2,757) | 32,626 | 15,588 |
NET INCOME | 34,915 | $ 13,839 | $ 11,209 | $ 8,983 | 2,294 | $ 27,701 | $ 21,749 | $ 6,407 | 68,946 | 58,151 | 41,319 |
Total assets | 6,742,041 | 6,243,700 | 6,742,041 | 6,243,700 | 4,894,495 | ||||||
Mortgage Banking [Member] | |||||||||||
Condensed income statement: | |||||||||||
Net interest expense | 19,896 | 26,034 | 28,318 | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Noninterest income | 269,794 | 323,468 | 251,870 | ||||||||
Noninterest expense | 290,676 | 305,937 | 243,970 | ||||||||
Income before income taxes | (986) | 43,565 | 36,218 | ||||||||
Income tax (benefit) expense | (27,871) | 16,214 | 12,916 | ||||||||
NET INCOME | 26,885 | 27,351 | 23,302 | ||||||||
Total assets | 866,712 | 974,248 | 866,712 | 974,248 | 848,445 | ||||||
Consumer and Commercial Banking [Member] | |||||||||||
Condensed income statement: | |||||||||||
Net interest expense | 174,542 | 154,015 | 120,020 | ||||||||
Provision for credit losses | 750 | 4,100 | 6,100 | ||||||||
Noninterest income | 42,360 | 35,682 | 29,367 | ||||||||
Noninterest expense | 148,977 | 138,385 | 122,598 | ||||||||
Income before income taxes | 67,175 | 47,212 | 20,689 | ||||||||
Income tax (benefit) expense | 25,114 | 16,412 | 2,672 | ||||||||
NET INCOME | 42,061 | 30,800 | 18,017 | ||||||||
Total assets | $ 5,875,329 | $ 5,269,452 | $ 5,875,329 | $ 5,269,452 | $ 4,046,050 |
Accumulated Other Comprehens136
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 629,284 | $ 465,275 | $ 302,238 |
Other comprehensive income (loss) | 3,290 | (7,963) | (3,995) |
Ending balance | 704,380 | 629,284 | 465,275 |
AOCI Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (10,412) | (2,449) | 1,546 |
Other comprehensive income (loss) before reclassifications | 3,607 | (6,313) | (1,325) |
Amounts reclassified from accumulated other comprehensive income (loss) | (317) | (1,650) | (2,670) |
Other comprehensive income (loss) | 3,290 | (7,963) | (3,995) |
Ending balance | $ (7,122) | $ (10,412) | $ (2,449) |
Accumulated Other Comprehens137
Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of investment securities available for sale | $ 489 | $ 2,539 | $ 2,406 | ||||||||
Income tax (benefit) expense | $ (17,873) | $ 5,938 | $ 4,923 | $ 4,255 | $ 1,112 | $ 15,197 | $ 13,078 | $ 3,239 | (2,757) | 32,626 | 15,588 |
Total, net of tax | 317 | 1,650 | 2,670 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of investment securities available for sale | 489 | 2,539 | 2,406 | ||||||||
Income tax (benefit) expense | $ 172 | $ 889 | $ (264) |
Parent Company Financial Sta138
Parent Company Financial Statements - Condensed Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash and cash equivalents | $ 72,718 | $ 53,932 | $ 32,684 | $ 30,502 |
Other assets | 188,477 | 221,070 | ||
Total assets | 6,742,041 | 6,243,700 | 4,894,495 | |
Liabilities: | ||||
Other liabilities | 172,234 | 191,189 | ||
Long-term debt | 125,274 | 125,147 | ||
Total liabilities | 6,037,661 | 5,614,416 | ||
Shareholders’ Equity: | ||||
Preferred stock, no par value | 0 | 0 | ||
Common stock, no par value | 511 | 511 | ||
Additional paid-in capital | 339,009 | 336,149 | ||
Retained earnings | 371,982 | 303,036 | ||
Accumulated other comprehensive loss | (7,122) | (10,412) | ||
Total shareholders' equity | 704,380 | 629,284 | 465,275 | 302,238 |
Total liabilities and shareholders' equity | 6,742,041 | 6,243,700 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 14,101 | 12,260 | $ 7,777 | $ 5,270 |
Other assets | 7,319 | 9,700 | ||
Investment in stock of subsidiaries | 807,398 | 732,135 | ||
Total assets | 828,818 | 754,095 | ||
Liabilities: | ||||
Other liabilities | 1,021 | 1,521 | ||
Long-term debt | 123,417 | 123,290 | ||
Total liabilities | 124,438 | 124,811 | ||
Shareholders’ Equity: | ||||
Preferred stock, no par value | 0 | 0 | ||
Common stock, no par value | 511 | 511 | ||
Additional paid-in capital | 339,009 | 336,149 | ||
Retained earnings | 371,982 | 303,036 | ||
Accumulated other comprehensive loss | (7,122) | (10,412) | ||
Total shareholders' equity | 704,380 | 629,284 | ||
Total liabilities and shareholders' equity | $ 828,818 | $ 754,095 |
Parent Company Financial Sta139
Parent Company Financial Statements - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net interest expense | $ 51,079 | $ 50,840 | $ 46,868 | $ 45,651 | $ 48,074 | $ 46,802 | $ 44,482 | $ 40,691 | $ 194,438 | $ 180,049 | $ 148,338 |
Noninterest income | 72,801 | 83,884 | 81,008 | 74,461 | 73,221 | 111,745 | 102,476 | 71,708 | 312,154 | 359,150 | 281,237 |
Noninterest expense | 106,838 | 114,697 | 111,244 | 106,874 | 117,539 | 114,399 | 111,031 | 101,353 | 439,653 | 444,322 | 366,568 |
Income before income taxes | 17,042 | 19,777 | 16,132 | 13,238 | 3,406 | 42,898 | 34,827 | 9,646 | 66,189 | 90,777 | 56,907 |
Income tax (benefit) expense | (17,873) | 5,938 | 4,923 | 4,255 | 1,112 | 15,197 | 13,078 | 3,239 | (2,757) | 32,626 | 15,588 |
NET INCOME | $ 34,915 | $ 13,839 | $ 11,209 | $ 8,983 | $ 2,294 | $ 27,701 | $ 21,749 | $ 6,407 | 68,946 | 58,151 | 41,319 |
Other comprehensive income (loss) | 3,290 | (7,963) | (3,995) | ||||||||
Comprehensive income | 72,236 | 50,188 | 37,324 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net interest expense | (4,625) | (2,680) | (1,036) | ||||||||
Noninterest income | 1,904 | 1,622 | 1,686 | ||||||||
(Loss) income before income tax benefit and equity in income of subsidiaries | (2,721) | (1,058) | 650 | ||||||||
Dividend from subsidiaries to parent | 4,000 | 4,697 | 13,181 | ||||||||
Revenue, Net | 1,279 | 3,639 | 13,831 | ||||||||
Noninterest expense | 6,681 | 7,746 | 7,239 | ||||||||
Income before income taxes | (5,402) | (4,107) | 6,592 | ||||||||
Income tax (benefit) expense | (3,381) | (4,656) | (561) | ||||||||
Income from subsidiaries | 70,967 | 57,602 | 34,166 | ||||||||
NET INCOME | 68,946 | 58,151 | 41,319 | ||||||||
Other comprehensive income (loss) | 3,290 | (7,963) | (3,995) | ||||||||
Comprehensive income | $ 72,236 | $ 50,188 | $ 37,324 |
Parent Company Financial Sta140
Parent Company Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $ 160,568 | $ (44,813) | $ 8,311 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (556,189) | (819,272) | (418,334) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | (65) | 63,184 | 0 |
Net cash provided by financing activities | 414,407 | 885,333 | 412,205 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 18,786 | 21,248 | 2,182 |
Beginning of year | 53,932 | 32,684 | 30,502 |
End of period | 72,718 | 53,932 | 32,684 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (3,395) | 990 | 2,654 |
Cash flows from investing activities: | |||
Net purchases of and proceeds from investment securities | 2,546 | (5,029) | 673 |
Net payments for investments in and advances to subsidiaries | 2,685 | (116,090) | (992) |
Net cash used in investing activities | 5,231 | (121,119) | (319) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 11 | 2,713 | 177 |
Proceeds from issuance of long-term debt | 0 | 63,184 | 0 |
Proceeds from equity raise | 0 | 58,713 | 0 |
Dividends paid | 0 | 0 | (5) |
Proceeds from and repayment of advances from subsidiaries | 0 | 2 | 0 |
Other, net | (6) | 0 | 0 |
Net cash provided by financing activities | 5 | 124,612 | 172 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,841 | 4,483 | 2,507 |
Beginning of year | 12,260 | 7,777 | 5,270 |
End of period | $ 14,101 | $ 12,260 | $ 7,777 |
Unaudited Quarterly Financia141
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 63,686 | $ 61,981 | $ 56,742 | $ 55,274 | $ 56,862 | $ 55,330 | $ 51,291 | $ 46,054 | $ 237,683 | $ 209,537 | $ 165,114 |
Interest expense | 12,607 | 11,141 | 9,874 | 9,623 | 8,788 | 8,528 | 6,809 | 5,363 | 43,245 | 29,488 | 16,776 |
Net interest income | 51,079 | 50,840 | 46,868 | 45,651 | 48,074 | 46,802 | 44,482 | 40,691 | 194,438 | 180,049 | 148,338 |
Provision for credit losses | 0 | 250 | 500 | 0 | 350 | 1,250 | 1,100 | 1,400 | 750 | 4,100 | 6,100 |
Net interest income after provision for credit losses | 51,079 | 50,590 | 46,368 | 45,651 | 47,724 | 45,552 | 43,382 | 39,291 | 193,688 | 175,949 | 142,238 |
Noninterest income | 72,801 | 83,884 | 81,008 | 74,461 | 73,221 | 111,745 | 102,476 | 71,708 | 312,154 | 359,150 | 281,237 |
Noninterest expense | 106,838 | 114,697 | 111,244 | 106,874 | 117,539 | 114,399 | 111,031 | 101,353 | 439,653 | 444,322 | 366,568 |
Income before income taxes | 17,042 | 19,777 | 16,132 | 13,238 | 3,406 | 42,898 | 34,827 | 9,646 | 66,189 | 90,777 | 56,907 |
Income tax (benefit) expense | (17,873) | 5,938 | 4,923 | 4,255 | 1,112 | 15,197 | 13,078 | 3,239 | (2,757) | 32,626 | 15,588 |
NET INCOME | $ 34,915 | $ 13,839 | $ 11,209 | $ 8,983 | $ 2,294 | $ 27,701 | $ 21,749 | $ 6,407 | $ 68,946 | $ 58,151 | $ 41,319 |
Basic earnings per share (in dollars per share) | $ 1.30 | $ 0.51 | $ 0.42 | $ 0.33 | $ 0.09 | $ 1.12 | $ 0.88 | $ 0.27 | $ 2.57 | $ 2.36 | $ 1.98 |
Diluted earnings per share (in dollars per share) | $ 1.29 | $ 0.51 | $ 0.41 | $ 0.33 | $ 0.09 | $ 1.11 | $ 0.87 | $ 0.27 | $ 2.54 | $ 2.34 | $ 1.96 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 3,720 |
Facility related costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 3,072 |
Personnel related costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 648 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve Rollforward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2016 | $ 0 |
Restructuring charges | 3,720 |
Costs paid or otherwise settled | (2,334) |
Balance at December 31, 2017 | 1,386 |
Facility related costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2016 | 0 |
Restructuring charges | 3,072 |
Costs paid or otherwise settled | (1,686) |
Balance at December 31, 2017 | 1,386 |
Personnel related costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2016 | 0 |
Restructuring charges | 648 |
Costs paid or otherwise settled | (648) |
Balance at December 31, 2017 | $ 0 |