Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35424 | |
Entity Registrant Name | HOMESTREET, INC. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-0186600 | |
Entity Address, Address Line One | 601 Union Street | |
Entity Address, Address Line Two | Suite 2000 | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98101 | |
City Area Code | 206 | |
Local Phone Number | 623-3050 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | HMST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 24,410,586.6 | |
Entity Central Index Key | 0001518715 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents (includes interest-earning instruments of $48,559 and $28,534) | $ 74,788 | $ 57,982 |
Investment securities (includes $862,339 and $851,968 carried at fair value) | 866,736 | 923,253 |
Loans held for sale (includes $87,717 and $52,186 carried at fair value) | 172,958 | 77,324 |
Loans held for investment (net of allowance for loan losses of $43,437 and $41,470; includes $5,295 and $4,057 carried at fair value) | 5,139,108 | 5,075,371 |
Mortgage servicing rights (includes $61,823 and $75,047 carried at fair value) | 90,624 | 103,374 |
Other real estate owned | 1,753 | 455 |
Federal Home Loan Bank stock, at cost | 8,764 | 45,497 |
Premises and equipment, net | 78,925 | 88,112 |
Lease right-of-use assets | 101,843 | |
Goodwill | 30,170 | 22,564 |
Other assets | 187,298 | 171,255 |
Assets of discontinued operations | 82,911 | 477,034 |
Total assets | 6,835,878 | 7,042,221 |
Liabilities: | ||
Deposits | 5,804,307 | 4,888,558 |
Federal Home Loan Bank advances | 5,590 | 932,590 |
Accounts payable and other liabilities | 84,095 | 169,970 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 19,000 |
Long-term debt | 125,603 | 125,462 |
Lease liabilities | 120,072 | |
Liabilities of discontinued operations | 5,075 | 167,121 |
Total liabilities | 6,144,742 | 6,302,701 |
Commitments and contingencies (Note 8) | ||
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, 24,408,513 shares and 26,995,348 shares | 511 | 511 |
Additional paid-in capital | 309,649 | 342,439 |
Retained earnings | 372,981 | 412,009 |
Accumulated other comprehensive income (loss) | 7,995 | (15,439) |
Total shareholders' equity | 691,136 | 739,520 |
Total liabilities and shareholders' equity | $ 6,835,878 | $ 7,042,221 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Interest-bearing instruments | $ 48,559 | $ 28,534 |
Investment securities held at fair value (AFS) | 862,339 | 851,968 |
Fair value of loans held for sale | 87,717 | 52,186 |
Allowance for losses on loans held for investment | 43,437 | 41,470 |
Fair value of loans held for investment | 5,295 | 4,057 |
Fair value of mortgage servicing rights | $ 61,823 | $ 75,047 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 24,408,513 | 26,995,348 |
Common stock, shares outstanding (in shares) | 24,408,513 | 26,995,348 |
Interim Consolidated Statements
Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Loans | $ 64,803 | $ 58,624 | $ 194,749 | $ 166,280 |
Investment securities | 4,879 | 5,580 | 15,327 | 16,666 |
Other | 395 | 76 | 763 | 263 |
Total interest income | 70,077 | 64,280 | 210,839 | 183,209 |
Interest expense: | ||||
Deposits | 20,502 | 11,286 | 51,754 | 28,636 |
Federal Home Loan Bank advances | 501 | 3,277 | 8,778 | 8,286 |
Federal funds purchased and securities sold under agreements to repurchase | 39 | 83 | 806 | 139 |
Long-term debt | 1,698 | 1,695 | 5,167 | 4,941 |
Other | 203 | 79 | 456 | 154 |
Total interest expense | 22,943 | 16,420 | 66,961 | 42,156 |
Net interest income | 47,134 | 47,860 | 143,878 | 141,053 |
Provision for credit losses | 0 | 750 | 1,500 | 2,500 |
Net interest income after provision for credit losses | 47,134 | 47,110 | 142,378 | 138,553 |
Noninterest income: | ||||
Net gain on loan origination and sale activities | 15,951 | 4,193 | 30,736 | 8,350 |
Loan servicing income | 2,687 | 954 | 5,906 | 2,799 |
Depositor and other retail banking fees | 2,079 | 2,031 | 5,848 | 5,915 |
Insurance agency commissions | 603 | 588 | 1,801 | 1,658 |
(Loss) gain on sale of investment securities available for sale, net | (18) | (4) | (128) | 234 |
Other | 3,278 | 2,888 | 8,338 | 7,195 |
Total noninterest income | 24,580 | 10,650 | 52,501 | 26,151 |
Noninterest expense: | ||||
Salaries and related costs | 32,793 | 25,183 | 92,311 | 79,393 |
General and administrative | 9,539 | 8,591 | 25,565 | 25,658 |
Amortization of core deposit intangibles | 429 | 406 | 1,223 | 1,219 |
Legal | 594 | 873 | 2,214 | 2,393 |
Consulting | 866 | 426 | 3,161 | 1,723 |
Federal Deposit Insurance Corporation (recoveries) assessments | (694) | 880 | 960 | 2,739 |
Occupancy | 4,856 | 4,548 | 15,650 | 13,531 |
Information services | 7,325 | 7,005 | 21,361 | 20,782 |
Net benefit (cost) from operation and sale of other real estate owned | 13 | 2 | (46) | (89) |
Total noninterest expense | 55,721 | 47,914 | 162,399 | 147,349 |
Income from continuing operations before income taxes | 15,993 | 9,846 | 32,480 | 17,355 |
Income tax expense from continuing operations | 2,328 | 1,757 | 4,865 | 3,341 |
Income from continuing operations | 13,665 | 8,089 | 27,615 | 14,014 |
Income (loss) from discontinued operations before income taxes (includes net gain on disposal of $1,260 and net loss on disposal of $21,760 for the three and nine months ended September 30, 2019) | 190 | 4,561 | (24,928) | 13,651 |
Income tax expense (benefit) from discontinued operations | 28 | 815 | (3,837) | 2,865 |
Income (loss) from discontinued operations | 162 | 3,746 | (21,091) | 10,786 |
NET INCOME | $ 13,827 | $ 11,835 | $ 6,524 | $ 24,800 |
Basic earnings per common share: | ||||
Basic income from continuing operations per share (in dollars per share) | $ 0.55 | $ 0.30 | $ 1.04 | $ 0.52 |
Basic income (loss) from discontinued operations per share (in dollars per share) | 0.01 | 0.14 | (0.81) | 0.40 |
Basic earnings per share (in dollars per share) | 0.55 | 0.44 | 0.23 | 0.92 |
Diluted earnings per common share | ||||
Diluted income from continuing operations per share (in dollars per share) | 0.54 | 0.30 | 1.03 | 0.52 |
Diluted income (loss) from discontinued operations per share (in dollars per share) | 0.01 | 0.14 | (0.80) | 0.40 |
Diluted earnings per share (in dollars per share) | $ 0.55 | $ 0.44 | $ 0.22 | $ 0.91 |
Basic weighted average number of shares outstanding (in shares) | 24,419,793 | 26,985,425 | 26,020,172 | 26,963,260 |
Diluted weighted average number of shares outstanding (in shares) | 24,625,938 | 27,181,688 | 26,204,414 | 27,165,672 |
Interim Consolidated Statemen_2
Interim Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||
Net loss on disposal | $ 1,260 | $ (21,760) |
Interim Consolidated Statemen_3
Interim Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,827 | $ 11,835 | $ 6,524 | $ 24,800 |
Unrealized gain (loss) on investment securities available for sale: | ||||
Unrealized holding gain (loss) arising during the period, net of tax expense (benefit) of $1,402 and $(1,169) for the three months ended September 30, 2019 and 2018, and $6,607 and $(4,469) for the nine months ended September 30, 2019 and 2018, respectively | 5,273 | (4,399) | 25,412 | (16,811) |
Reclassification adjustment for net losses (gains) included in net income, net of tax expense (benefit) of $(4) and zero for the three months ended September 30, 2019 and 2018, and $(27) and $49 for the nine months ended September 30, 2019 and 2018, respectively | 15 | 4 | 102 | (184) |
Other comprehensive income (loss) | 5,288 | (4,395) | 25,514 | (16,995) |
Comprehensive income | $ 19,115 | $ 7,440 | $ 32,038 | $ 7,805 |
Interim Consolidated Statemen_4
Interim Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) on unrealized holding gain (loss) on securities | $ 1,402 | $ (1,169) | $ 6,607 | $ (4,469) |
Tax expense (benefit) on reclassification adjustment for net gain on securities included in net income | $ (4) | $ 0 | $ (27) | $ 49 |
Interim Consolidated Statemen_5
Interim Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2017 | 26,888,288 | ||||
Beginning balance at Dec. 31, 2017 | $ 704,380 | $ 511 | $ 339,009 | $ 371,982 | $ (7,122) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 24,800 | 24,800 | |||
Common stock issued, (in shares) | 101,454 | ||||
Common stock issued | 361 | 361 | |||
Share-based compensation expense | 2,236 | 2,236 | |||
Other comprehensive income (loss) | (16,995) | (16,995) | |||
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2018 | 26,989,742 | ||||
Ending balance at Sep. 30, 2018 | 714,782 | $ 511 | 341,606 | 396,782 | (24,117) |
Beginning balance at Dec. 31, 2017 | 0 | ||||
Ending balance at Sep. 30, 2018 | 0 | ||||
Common stock shares outstanding, beginning balance (in shares) at Jun. 30, 2018 | 26,978,229 | ||||
Beginning balance at Jun. 30, 2018 | 706,459 | $ 511 | 340,723 | 384,947 | (19,722) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 11,835 | 11,835 | |||
Common stock issued, (in shares) | 11,513 | ||||
Common stock issued | 107 | 107 | |||
Share-based compensation expense | 776 | 776 | |||
Other comprehensive income (loss) | (4,395) | (4,395) | |||
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2018 | 26,989,742 | ||||
Ending balance at Sep. 30, 2018 | 714,782 | $ 511 | 341,606 | 396,782 | (24,117) |
Ending balance at Sep. 30, 2018 | $ 0 | ||||
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2018 | 26,995,348 | 26,995,348 | |||
Beginning balance at Dec. 31, 2018 | $ 739,520 | $ 511 | 342,439 | 412,009 | (15,439) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,524 | 6,524 | |||
Common stock issued, (in shares) | 69,166 | ||||
Common stock issued | 176 | 176 | |||
Share-based compensation expense | 1,011 | 1,109 | (98) | ||
Other comprehensive income (loss) | 25,514 | 25,514 | |||
Common stock repurchased and retired (in shares) | (2,656,001) | ||||
Common stock repurchased and retired | (28,326) | (12,199) | (16,127) | ||
Reclassification from temporary equity | $ (52,735) | (21,876) | (30,859) | ||
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2019 | 24,408,513 | 24,408,513 | |||
Ending balance at Sep. 30, 2019 | $ 691,136 | $ 511 | 309,649 | 372,981 | 7,995 |
Beginning balance at Dec. 31, 2018 | 0 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Common stock repurchased and retired | (52,735) | ||||
Ending balance at Sep. 30, 2019 | 0 | ||||
Common stock shares outstanding, beginning balance (in shares) at Jun. 30, 2019 | 26,085,164 | ||||
Beginning balance at Jun. 30, 2019 | 671,175 | $ 511 | 308,705 | 359,252 | 2,707 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 13,827 | 13,827 | |||
Common stock issued, (in shares) | 15,750 | ||||
Common stock issued | 95 | 95 | |||
Share-based compensation expense | 751 | 849 | (98) | ||
Other comprehensive income (loss) | 5,288 | 5,288 | |||
Common stock repurchased and retired (in shares) | (1,692,401) | ||||
Reclassification from temporary equity | $ 0 | ||||
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2019 | 24,408,513 | 24,408,513 | |||
Ending balance at Sep. 30, 2019 | $ 691,136 | $ 511 | $ 309,649 | $ 372,981 | $ 7,995 |
Beginning balance at Jun. 30, 2019 | 52,735 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Common stock repurchased and retired | (52,735) | ||||
Ending balance at Sep. 30, 2019 | $ 0 |
Interim Consolidated Statemen_6
Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,524 | $ 24,800 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 29,834 | 18,671 |
Provision for credit losses | 1,500 | 2,500 |
Net fair value adjustment and gain on sale of loans held for sale | (72,287) | (71,098) |
Gain on sale of mortgage servicing rights, gross | (6,206) | 0 |
Loss on sale of HLC mortgage origination assets, net | 573 | 0 |
Fair value adjustment of loans held for investment | (193) | 35 |
Origination of mortgage servicing rights | (27,823) | (50,551) |
Change in fair value of mortgage servicing rights | 37,293 | (28,243) |
Net loss (gain) on sale of investment securities | 128 | (234) |
Net gain on sale of loans originated as held for investment | (6,405) | (169) |
Net fair value adjustment, gain on sale and provision for losses on other real estate owned | (110) | (92) |
Loss on disposal of fixed assets | 128 | 303 |
Loss on lease abandonment and exit costs | 15,816 | 6,073 |
Change in deferred income taxes | (40,409) | 4,372 |
Share-based compensation expense | 1,187 | 2,528 |
Origination of loans held for sale | (3,232,664) | (4,850,098) |
Proceeds from sale of loans originated as held for sale | 3,496,809 | 5,175,266 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable and other assets | 3,797 | 4,986 |
Decrease in accounts payable and other liabilities | (25,217) | (10,250) |
Net cash provided by operating activities | 182,275 | 228,799 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment securities | (146,780) | (147,134) |
Proceeds from sale of investment securities | 144,602 | 38,465 |
Principal repayments and maturities of investment securities | 84,890 | 82,432 |
Proceeds from sale of other real estate owned | 744 | 460 |
Proceeds from sale of loans originated as held for investment | 528,745 | 319,004 |
Proceeds from sale of mortgage servicing rights | 2,958 | 65,318 |
Net cash provided by disposal of discontinued operations | 174,333 | 0 |
Origination of loans held for investment and principal repayments, net | (593,292) | (887,449) |
Proceeds from sale of property and equipment | 0 | 467 |
Purchase of property and equipment | (1,196) | (7,056) |
Net cash used for acquisitions | (47,390) | 0 |
Net cash provided by (used in) investing activities | 147,614 | (535,493) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase in deposits, net | 678,016 | 393,916 |
Proceeds from Federal Home Loan Bank advances | 5,798,300 | 9,077,500 |
Repayment of Federal Home Loan Bank advances | (6,725,300) | (9,240,000) |
Proceeds from federal funds purchased and securities sold under agreements to repurchase | 7,750,703 | 1,733,700 |
Repayment of federal funds purchased and securities sold under agreements to repurchase | (7,769,703) | (1,678,700) |
Proceeds from line of credit draws | 20,000 | 30,000 |
Repayment of line of credit draws | (20,000) | (30,000) |
Repayment of lease principal | (1,375) | |
Proceeds from Federal Home Loan Bank stock repurchase | 138,099 | 151,771 |
Purchase of Federal Home Loan Bank stock | (101,366) | (145,864) |
Stock repurchased | (81,061) | 0 |
Proceeds from stock issuance, net | 0 | 69 |
Net cash (used in) provided by financing activities | (313,687) | 292,392 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 16,202 | (14,302) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Cash, cash equivalents and restricted cash, beginning of year | 58,586 | 73,909 |
Cash, cash equivalents and restricted cash, end of period | 74,788 | 59,607 |
Less: restricted cash included in other assets | 0 | (601) |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 74,788 | 59,006 |
Cash paid during the period for: | ||
Interest paid | 70,738 | 47,007 |
Federal and state income taxes paid, net | 17,600 | 193 |
Non-cash activities: | ||
Loans held for investment foreclosed and transferred to other real estate owned | 915 | 455 |
Loans transferred from held for investment to held for sale | 617,778 | 423,504 |
Loans transferred from held for sale to held for investment | 6,488 | 57,061 |
Ginnie Mae loans (derecognized) recognized with the right to repurchase, net | (26,418) | 415 |
Receivable from sale of mortgage servicing rights | 6,945 | 3,414 |
Acquisition: | ||
Assets acquired | 114,725 | 0 |
Liabilities assumed | 74,941 | 0 |
Goodwill | $ 7,606 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
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 on the West Coast of the 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 with 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, management 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. Some of these estimates require application of management's most difficult, subjective or complex judgments and result in amounts 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 12, Business Combinations ), allowance for credit losses (Note 4, Loans and Credit Quality ), valuation of residential mortgage servicing rights and loans held for sale (Note 7, Mortgage Banking Operations ), valuation of investment securities (Note 3, Investment Securities ), and valuation of derivatives (Note 6, Derivatives and Hedging Activities ). We have reclassified certain prior period amounts to conform to the current period presentation. These reclassifications are immaterial and have no effect on net income, comprehensive income, cash flows, total assets or total shareholders' equity as previously reported. During the three months ended March 31, 2019, the Company's Board of Directors (the "Board") adopted a Resolution of Exit or Disposal of Home Loan Center ("HLC") Based Mortgage Banking Operations to sell or abandon the assets and transfer or terminate the personnel associated with the Company's high-volume home loan center-based mortgage origination business. The Company also successfully closed and settled two separate sales of the rights to service $14.26 billion in total unpaid principal balance of single family mortgage loans serviced for others, representing in the aggregate 71% of HomeStreet's total single family mortgage loans serviced for others portfolio at December 31, 2018. These two actions largely represent the Company's former Mortgage Banking segment. In accordance with Accounting Standards Codification (ASC) 205-20, the Company determined that the Board's decision to sell or abandon the assets and personnel associated with the Company's HLC-based mortgage business and the related mortgage servicing rights ("MSR") sales met the criteria to be classified as discontinued operations and its operating results and financial condition are presented as discontinued operations in the consolidated financial statements for the current and all comparative periods which have been recast to conform to the new presentation (see Note 2, Discontinued Operations for additional information). Unless otherwise indicated, information included in these notes to the consolidated financial statements (unaudited) are presented on a consolidated operations basis, which includes results from both continuing and discontinued operations, for all periods presented. In connection with the mortgage servicing rights ("MSR") sales and Board resolution regarding the former Mortgage Banking segment, the Company reassessed its reportable operating segments given these changes and associated changes made to its Chief Operating Decision Maker (CODM) package as of March 31, 2019. The Company concluded that as of March 31, 2019 the CODM evaluates the Company’s performance on a consolidated, entity-wide basis and accordingly has resulted in the elimination of segment reporting. The Company will no longer disclose operating results below the consolidated entity level which is now the reportable segment. These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results of the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report on Form 10-Q. The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. The interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission ("2018 Annual Report on Form 10-K"). Share Repurchase Program On March 28, 2019, the Board authorized a share repurchase program pursuant to which the Company could purchase up to $75 million of its issued and outstanding common stock, no par value, at prevailing market rates at the time of such purchase. On June 20, 2019, the Company agreed to repurchase approximately 1.7 million shares from Blue Lion Capital and affiliates at a share price of $31.16 , which represented the five-day volume weighted average price prior to the date of the 2019 annual meeting on June 20, 2019. This agreement required the Federal Reserve Bank of San Francisco to review and provide its non-objection prior to consummation. On July 11, 2019, we received the non-objection to the purchase agreement from the Federal Reserve and executed this share repurchase. We subsequently terminated the March 28, 2019 share repurchase program on July 25, 2019. There were repurchases of 2,656,001 shares of our common stock in the nine months ended September 30, 2019 . On September 26, 2019, the Board authorized a new share repurchase program pursuant to which the Company could purchase up to $25.0 million of its issued and outstanding common stock, no par value, at prevailing market rates at the time of such purchase. Recent Accounting Developments In May 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-05, Financial Instruments - Credit Losses (Topic 326) Targeted Transition Relief, or ASU 2019-05. This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13 therefore, it will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect to elect the fair value option under this guidance, and therefore, ASU 2019-05 is not expected to impact the Company’s Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 – Financial Instruments. The new ASU provides narrow-scope amendments to help apply these recent standards. The transition requirements and effective date of this ASU for HomeStreet is January 1, 2020 with early adoption permitted for certain amendments. The Company is currently assessing this standard’s impact on our consolidated results of operations and financial condition. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU adds, eliminates, and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the added disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not impact 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 permitted for annual or interim goodwill impairment tests performed 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 June 2016, FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments . Current U.S. GAAP requires an "incurred loss" methodology for recognizing credit losses that delay 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 has the contractual right to receive cash. The amendments in this ASU replace the incurred loss impairment model in current U.S. 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 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. Our allowance for credit losses includes both the allowance for loan losses and a separate allowance for losses related to unfunded loan commitments. 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 relevant 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 plans to adopt this ASU on January 1, 2020. The Company has substantially completed the development of the credit loss models for all loan portfolios and is in the process of testing these models and validating data inputs, while continuing to develop the policies, systems and controls that will be required to implement CECL. Based on forecasted economic conditions and portfolio composition at September 30, 2019, the adoption of the CECL standard is estimated to result in an overall allowance for credit losses increase of 0% to 10% , as compared to our current aggregate reserve levels. The estimated increase is driven by the fact that the allowance will cover expected credit losses over the full expected life of the loan portfolios and will also consider forecasts of expected future economic conditions. The extent of the impact of the adoption of CECL on the Company’s consolidated financial statements may vary and will depend on, completion of the Company’s models, policies and management judgment's, and the composition of the loan portfolios on the date of adoption. At adoption, we will have a cumulative-effect adjustment to retained earnings for our change in the allowance for credit losses. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS: On March 29, 2019, the Company successfully closed and settled two sales of the rights to service $14.26 billion in total unpaid principal balance of single family mortgage loans serviced for Federal National Mortgage Association ("Fannie Mae"), Federal Home Loan Mortgage Corporation ('Freddie Mac") and Government National Mortgage Association ("Ginnie Mae"), representing 71% of HomeStreet's total single family mortgage loans serviced for others portfolio as of December 31, 2018. The sale resulted in a $941 thousand pre-tax loss from discontinued operations during the nine months ended September 30, 2019. The Company transferred the servicing for some of these loans in the second quarter of 2019 and transferred the remainder in the third quarter of 2019 and subserviced these loans through the transfer dates. On March 31, 2019, based on mortgage market conditions and the operating environment, the Board adopted a Resolution of Exit or Disposal of HLC Based Mortgage Banking Operations to sell or abandon the assets and related personnel associated with those operations. The assets that were sold or abandoned largely represented the Company's former Mortgage Banking segment, the activities of which related to originating, servicing, underwriting, funding and selling single family residential mortgage loans. The Company determined that the above actions constituted commitment to a plan of exit or disposal of certain long-lived assets (through sale or abandonment) and termination of employees. Further, the Company determined that the shift from a large-scale HLC based originator and servicer to a branch-focused product offering represented a strategic shift. As a result, the HLC-related mortgage banking operations are reported separately from the continuing operations as discontinued operations. In addition, the former Mortgage Banking operating segment and reporting unit were eliminated. This has resulted in a recast of the financial statements in the current and all comparative periods as detailed below. On April 4, 2019 the Company entered into a definitive agreement related to the sale of the HLC based mortgage origination business assets and transfer of personnel to Homebridge Financial Services, Inc. ("Homebridge"). On June 24, 2019 the Company completed the sale with Homebridge. This sale included 47 stand-alone HLCs and the transfer of certain related mortgage personnel. These HLCs, along with certain other mortgage banking related assets and liabilities that were to be sold or abandoned within one year, are classified as discontinued operations in the accompanying Consolidated Statements of Financial Condition and Consolidated Statements of Operations. HLCs that were not sold were closed during the second quarter of 2019 and none remain as of September 30, 2019. Certain components of the Company's former Mortgage Banking segment, including MSRs on certain mortgage loans that were not part of the sales and right-of-use assets and lease liabilities where we did not obtain full landlord release have been classified as continuing operations based on the Company's intent. The following table summarizes the calculation of the net gain (loss) on disposal of discontinued operations. (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Proceeds from asset sales $ — $ 186,612 Book value of asset sales (4 ) 180,978 Gain on assets sold 4 5,634 Transaction cost (recovery) expenses (386 ) 8,791 Compensation expense related to the transactions 596 4,388 Facility and IT related cost (recovery) expenses (1,466 ) 14,215 Total cost (recovery) expenses (1,256 ) 27,394 Net gain (loss) on disposal $ 1,260 $ (21,760 ) The carrying amount of major classes of assets and liabilities related to discontinued operations consisted of the following. (in thousands) September 30, 2019 December 31, 2018 ASSETS Loans held for sale, at fair value $ 71,213 $ 269,683 Mortgage serving rights — 177,121 Premises and equipment, net — 6,689 Other assets (1) 11,698 23,541 Assets of discontinued operations $ 82,911 $ 477,034 LIABILITIES Deposits $ — $ 162,850 Accrued expenses and other liabilities 5,075 4,271 Liabilities of discontinued operations $ 5,075 $ 167,121 (1) Includes $1.2 million and $15.5 million of derivative balances at September 30, 2019 and December 31, 2018 , respectively. Statements of Operations of Discontinued Operations Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net interest income $ 842 $ 3,784 $ 5,604 $ 10,054 Noninterest income 1,604 47,458 64,332 162,177 Noninterest expense 2,256 46,681 94,864 158,580 Income (loss) before income taxes 190 4,561 (24,928 ) 13,651 Income tax expense (benefit) 28 815 (3,837 ) 2,865 Income (loss) from discontinued operations $ 162 $ 3,746 $ (21,091 ) $ 10,786 Cash Flows for Discontinued Operations Nine Months Ended September 30, (in thousands) 2019 2018 Net cash provided by operating activities $ 196,712 $ 179,273 Net cash provided by investing activities 177,291 214,488 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES: The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities available for sale and held to maturity. At September 30, 2019 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 111,221 $ 149 $ (1,789 ) $ 109,581 Commercial 29,219 624 (7 ) 29,836 Collateralized mortgage obligations: Residential 187,651 1,269 (931 ) 187,989 Commercial 109,116 1,072 (645 ) 109,543 Municipal bonds 369,988 11,078 (972 ) 380,094 Corporate debt securities 18,507 311 (50 ) 18,768 U.S. Treasury securities 1,296 12 — 1,308 Agency debentures 25,221 — (1 ) 25,220 $ 852,219 $ 14,515 $ (4,395 ) $ 862,339 HELD TO MATURITY (1) Municipal bonds $ 4,397 $ 116 $ — $ 4,513 $ 4,397 $ 116 $ — $ 4,513 (1) In conjunction with adopting ASU 2017-12, in the first quarter of 2019, we transferred $66.2 million in HTM securities to AFS. At December 31, 2018 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 112,852 $ 19 $ (4,910 ) $ 107,961 Commercial 34,892 109 (487 ) 34,514 Collateralized mortgage obligations: Residential 171,412 221 (4,889 ) 166,744 Commercial 118,555 140 (2,021 ) 116,674 Municipal bonds 393,463 1,526 (9,334 ) 385,655 Corporate debt securities 21,177 1 (1,183 ) 19,995 U.S. Treasury securities 11,211 6 (317 ) 10,900 Agency debentures 9,876 — (351 ) 9,525 $ 873,438 $ 2,022 $ (23,492 ) $ 851,968 HELD TO MATURITY Mortgage-backed securities: Residential $ 11,071 $ — $ (274 ) $ 10,797 Commercial 17,307 30 (311 ) 17,026 Collateralized mortgage obligations 15,624 10 (65 ) 15,569 Municipal bonds 27,191 190 (319 ) 27,062 Corporate debt securities 92 — — 92 $ 71,285 $ 230 $ (969 ) $ 70,546 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 September 30, 2019 and December 31, 2018 , all securities held, including municipal bonds and corporate debt securities, were rated investment grade, based upon external ratings where available and, where not available, based upon internal ratings which correspond to ratings as defined by Standard and Poor's Rating Services ("S&P") or Moody's Investors Services ("Moody's"). As of September 30, 2019 and December 31, 2018 , 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 September 30, 2019 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 $ (338 ) $ 18,888 $ (1,451 ) $ 80,120 $ (1,789 ) $ 99,008 Commercial (2 ) 2,929 (5 ) 2,509 (7 ) 5,438 Collateralized mortgage obligations: Residential (277 ) 44,854 (654 ) 31,432 (931 ) 76,286 Commercial (195 ) 22,845 (450 ) 42,873 (645 ) 65,718 Municipal bonds (192 ) 26,805 (780 ) 54,189 (972 ) 80,994 Corporate debt securities — — (50 ) 1,744 (50 ) 1,744 U.S. Treasury securities — — — — — — Agency debentures (1 ) 25,221 — — (1 ) 25,221 $ (1,005 ) $ 141,542 $ (3,390 ) $ 212,867 $ (4,395 ) $ 354,409 There were no held to maturity securities in an unrealized loss position at September 30, 2019 . At December 31, 2018 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (34 ) $ 1,269 $ (4,876 ) $ 104,822 $ (4,910 ) $ 106,091 Commercial — — (487 ) 18,938 (487 ) 18,938 Collateralized mortgage obligations: Residential (131 ) 24,085 (4,758 ) 128,899 (4,889 ) 152,984 Commercial (350 ) 22,051 (1,671 ) 73,429 (2,021 ) 95,480 Municipal bonds (1,283 ) 85,057 (8,051 ) 201,189 (9,334 ) 286,246 Corporate debt securities (104 ) 5,557 (1,079 ) 14,213 (1,183 ) 19,770 U.S. Treasury securities — — (317 ) 9,598 (317 ) 9,598 Agency debentures — — (351 ) 9,525 (351 ) 9,525 $ (1,902 ) $ 138,019 $ (21,590 ) $ 560,613 $ (23,492 ) $ 698,632 HELD TO MATURITY Mortgage-backed securities: Residential $ (31 ) $ 2,314 $ (243 ) $ 6,197 $ (274 ) $ 8,511 Commercial (24 ) 2,800 (287 ) 11,256 (311 ) 14,056 Collateralized mortgage obligations (65 ) 10,597 — — (65 ) 10,597 Municipal bonds (102 ) 7,210 (217 ) 11,273 (319 ) 18,483 $ (222 ) $ 22,921 $ (747 ) $ 28,726 $ (969 ) $ 51,647 The Company has evaluated securities available for sale that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of September 30, 2019 and December 31, 2018 . In addition, as of September 30, 2019 and December 31, 2018 , 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 September 30, 2019 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ — — % $ 4 1.33 % $ 5,654 1.67 % $ 103,923 2.13 % $ 109,581 2.11 % Commercial — — 7,603 2.74 12,125 2.76 10,108 2.42 29,836 2.64 Collateralized mortgage obligations: Residential — — — — — — 187,989 2.45 187,989 2.45 Commercial — — 7,607 2.34 28,058 2.79 73,878 2.47 109,543 2.54 Municipal bonds — — — — 14,081 3.01 366,013 3.69 380,094 3.67 Corporate debt securities 1,016 3.41 7,584 3.63 10,078 3.70 90 6.13 18,768 3.67 U.S. Treasury securities 1,308 2.83 — — — — — — 1,308 2.83 Agency debentures — — 25,220 1.90 — — — — 25,220 1.90 Total available for sale $ 2,324 3.08 % $ 48,018 2.37 % $ 69,996 2.87 % $ 742,001 3.01 % $ 862,339 2.96 % HELD TO MATURITY Mortgage-backed securities: Municipal bonds $ — — % $ 1,794 2.90 % $ 2,719 2.08 % $ — — % $ 4,513 2.40 % Total held to maturity $ — — % $ 1,794 2.90 % $ 2,719 2.08 % $ — — % $ 4,513 2.40 % At December 31, 2018 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ — — % $ — — % $ 7,094 1.62 % $ 100,867 2.05 % $ 107,961 2.03 % Commercial — — 14,175 2.20 16,737 2.99 3,602 2.90 34,514 2.66 Collateralized mortgage obligations: Residential — — — — — — 166,744 2.43 166,744 2.43 Commercial — — 9,008 2.42 29,292 2.88 78,374 2.42 116,674 2.53 Municipal bonds 5,670 2.12 16,276 2.24 30,659 2.89 333,050 3.51 385,655 3.39 Corporate debt securities — — 3,949 2.96 13,608 3.31 2,438 3.65 19,995 3.29 U.S. Treasury securities — — 10,900 1.87 — — — — 10,900 1.87 Agency debentures — — — — 9,525 2.23 — — 9,525 2.23 Total available for sale $ 5,670 2.12 % $ 54,308 2.24 % $ 106,915 2.81 % $ 685,075 2.90 % $ 851,968 2.84 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 10,797 2.82 % $ 10,797 2.82 % Commercial — — 12,147 2.51 4,879 2.64 — — 17,026 2.55 Collateralized mortgage obligations — — 7,205 3.59 — — 8,364 2.94 15,569 3.24 Municipal bonds — — 1,790 2.85 5,651 2.29 19,621 3.24 27,062 3.01 Corporate debt securities — — — — — — 92 6.00 92 6.00 Total held to maturity $ — — % $ 21,142 2.91 % $ 10,530 2.45 % $ 38,874 3.07 % $ 70,546 2.93 % Sales of investment securities available for sale were as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Proceeds $ 25,190 $ 16,233 $ 144,602 $ 38,465 Gross gains 58 39 589 300 Gross losses (76 ) (43 ) (717 ) (66 ) The following table summarizes the carrying value of securities pledged as collateral to secure borrowings, public deposits and other purposes as permitted or required by law: (in thousands) At September 30, At December 31, Federal Home Loan Bank to secure borrowings $ — $ 63,179 Washington and California State to secure public deposits 150,828 126,565 Securities pledged to secure derivatives in a liability position — 5,077 Other securities pledged 4,516 5,147 Total securities pledged as collateral $ 155,344 $ 199,968 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little risk. There were no securities pledged under repurchase agreements at September 30, 2019 and December 31, 2018 . Tax-exempt interest income on securities totaling $2.5 million and $2.0 million for the three months ended September 30, 2019 and 2018 , respectively, and $7.8 million and $6.2 million for the nine months ended September 30, 2019 and 2018 , respectively, was recorded in the Company's consolidated statements of operations. |
LOANS AND CREDIT QUALITY
LOANS AND CREDIT QUALITY | 9 Months Ended |
Sep. 30, 2019 | |
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, and Note 5 , Loans and Credit Quality, within our 2018 Annual Report on Form 10-K. The Company's portfolio of loans held for investment is divided into two portfolio segments, consumer loans and commercial loans, which are the same segments used to determine the allowance for loan losses. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: single family and home equity and other loans within the consumer loan portfolio segment and 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. (in thousands) At September 30, At December 31, Consumer loans Single family (1) $ 1,188,159 $ 1,358,175 Home equity and other 567,791 570,923 Total consumer loans 1,755,950 1,929,098 Commercial real estate loans Non-owner occupied commercial real estate 794,863 701,928 Multifamily 920,279 908,015 Construction/land development 762,332 794,544 Total commercial real estate loans 2,477,474 2,404,487 Commercial and industrial loans Owner occupied commercial real estate 476,650 429,158 Commercial business 446,739 331,004 Total commercial and industrial loans 923,389 760,162 Loans held for investment before deferred fees, costs and allowance 5,156,813 5,093,747 Net deferred loan fees and costs 25,732 23,094 5,182,545 5,116,841 Allowance for loan losses (43,437 ) (41,470 ) Total loans held for investment $ 5,139,108 $ 5,075,371 (1) Includes $5.3 million and $4.1 million at September 30, 2019 and December 31, 2018 , 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 $2.12 billion and $2.16 billion at September 30, 2019 and December 31, 2018 , respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") as part of our liquidity management strategy. Additionally, loans totaling $505.0 million and $502.7 million at September 30, 2019 and December 31, 2018 , respectively, were pledged to secure borrowings from the Federal Reserve Bank. The FHLB and Federal Reserve Bank do not have the right to sell or re-pledge these loans. Credit Risk Concentrations Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Loans held for investment are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At September 30, 2019 , we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and multifamily within the states of Washington and California, which represented 11.5% and 10.6% of the total portfolio, respectively. At December 31, 2018 , we had concentrations representing 10% or more of the total portfolio by state and property type for the loan classes of single family and multifamily within the states of Washington and California, which represented 13.1% and 10.2% 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 September 30, 2019 . 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 our consolidated statements of financial condition. Collectively, these allowances are referred to as the allowance for credit losses. The allowance for unfunded commitments was $1.2 million at September 30, 2019 , compared to $1.4 million at September 30, 2018 . 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, and Note 5 , Loans and Credit Quality, within our 2018 Annual Report on Form 10-K. Activity in the allowance for credit losses was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Allowance for credit losses (roll-forward): Beginning balance $ 44,628 $ 40,982 $ 42,913 $ 39,116 Provision for credit losses — 750 1,500 2,500 Recoveries, net of (charge-offs) 6 122 221 238 Ending balance $ 44,634 $ 41,854 $ 44,634 $ 41,854 Activity in the allowance for credit losses by loan portfolio and loan class was as follows. Three Months Ended September 30, 2019 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 7,540 $ — $ 1 $ (321 ) $ 7,220 Home equity and other 7,563 (68 ) 59 (69 ) 7,485 Total consumer loans 15,103 (68 ) 60 (390 ) 14,705 Commercial real estate loans Non-owner occupied commercial real estate 6,151 — — 330 6,481 Multifamily 7,047 — — (357 ) 6,690 Construction/land development 9,707 — 1 99 9,807 Total commercial real estate loans 22,905 — 1 72 22,978 Commercial and industrial loans Owner occupied commercial real estate 3,462 — — 139 3,601 Commercial business 3,158 — 13 179 3,350 Total commercial and industrial loans 6,620 — 13 318 6,951 Total allowance for credit losses $ 44,628 $ (68 ) $ 74 $ — $ 44,634 Three Months Ended September 30, 2018 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,594 $ (43 ) $ 2 $ (46 ) $ 8,507 Home equity and other 7,346 (107 ) 102 205 7,546 Total consumer loans 15,940 (150 ) 104 159 16,053 Commercial real estate loans Non-owner occupied commercial real estate 4,764 — — 249 5,013 Multifamily 5,017 — — 608 5,625 Construction/land development 9,205 — 170 (94 ) 9,281 Total commercial real estate loans 18,986 — 170 763 19,919 Commercial and industrial loans Owner occupied commercial real estate 3,032 — — 111 3,143 Commercial business 3,024 (10 ) 8 (283 ) 2,739 Total commercial and industrial loans 6,056 (10 ) 8 (172 ) 5,882 Total allowance for credit losses $ 40,982 $ (160 ) $ 282 $ 750 $ 41,854 Nine Months Ended September 30, 2019 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,217 $ — $ 143 $ (1,140 ) $ 7,220 Home equity and other 7,712 (209 ) 212 (230 ) 7,485 15,929 (209 ) 355 (1,370 ) 14,705 Commercial real estate loans Non-owner occupied commercial real estate 5,496 — — 985 6,481 Multifamily 5,754 — — 936 6,690 Construction/land development 9,539 — 48 220 9,807 Total commercial real estate loans 20,789 — 48 2,141 22,978 Commercial and industrial loans Owner occupied commercial real estate 3,282 — — 319 3,601 Commercial business 2,913 — 27 410 3,350 Total commercial and industrial loans 6,195 — 27 729 6,951 Total allowance for credit losses $ 42,913 $ (209 ) $ 430 $ 1,500 $ 44,634 Nine Months Ended September 30, 2018 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 9,412 $ (43 ) $ 284 $ (1,146 ) $ 8,507 Home equity and other 7,081 (349 ) 325 489 7,546 16,493 (392 ) 609 (657 ) 16,053 Commercial real estate loans Non-owner occupied commercial real estate 4,755 — — 258 5,013 Multifamily 3,895 — — 1,730 5,625 Construction/land development 8,677 — 513 91 9,281 Total commercial real estate loans 17,327 — 513 2,079 19,919 Commercial and industrial loans Owner occupied commercial real estate 2,960 — — 183 3,143 Commercial business 2,336 (663 ) 171 895 2,739 5,296 (663 ) 171 1,078 5,882 Total allowance for credit losses $ 39,116 $ (1,055 ) $ 1,293 $ 2,500 $ 41,854 The following tables disaggregate our allowance for credit losses and recorded investment in loans by impairment methodology. At September 30, 2019 (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 $ 7,136 $ 84 $ 7,220 $ 1,117,056 $ 65,821 $ 1,182,877 Home equity and other 7,448 37 7,485 566,739 1,039 567,778 Total consumer loans 14,584 121 14,705 1,683,795 66,860 1,750,655 Commercial real estate loans Non-owner occupied commercial real estate 6,481 — 6,481 794,863 — 794,863 Multifamily 6,690 — 6,690 920,279 — 920,279 Construction/land development 9,807 — 9,807 760,977 1,355 762,332 Total commercial real estate loans 22,978 — 22,978 2,476,119 1,355 2,477,474 Commercial and industrial loans Owner occupied commercial real estate 3,601 — 3,601 474,349 2,301 476,650 Commercial business 3,342 8 3,350 444,374 2,365 446,739 Total commercial and industrial loans 6,943 8 6,951 918,723 4,666 923,389 Total loans evaluated for impairment 44,505 129 44,634 5,078,637 72,881 5,151,518 Loans held for investment carried at fair value — — — — — 5,295 (1) Total loans held for investment $ 44,505 $ 129 $ 44,634 $ 5,078,637 $ 72,881 $ 5,156,813 At December 31, 2018 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 8,151 $ 66 $ 8,217 $ 1,286,556 $ 67,575 $ 1,354,131 Home equity and other 7,671 41 7,712 569,673 1,237 570,910 Total consumer loans 15,822 107 15,929 1,856,229 68,812 1,925,041 Commercial real estate loans Non-owner occupied commercial real estate 5,496 — 5,496 701,928 — 701,928 Multifamily 5,754 — 5,754 907,523 492 908,015 Construction/land development 9,539 — 9,539 793,818 726 794,544 Total commercial real estate loans 20,789 — 20,789 2,403,269 1,218 2,404,487 Commercial and industrial loans Owner occupied commercial real estate 3,282 — 3,282 427,938 1,220 429,158 Commercial business 2,787 126 2,913 329,170 1,834 331,004 Total commercial and industrial loans 6,069 126 6,195 757,108 3,054 760,162 Total loans evaluated for impairment 42,680 233 42,913 5,016,606 73,084 5,089,690 Loans held for investment carried at fair value — — — — — 4,057 (1) Total loans held for investment $ 42,680 $ 233 $ 42,913 $ 5,016,606 $ 73,084 $ 5,093,747 (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 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 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. The following tables present impaired loans by loan portfolio segment and loan class. At September 30, 2019 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family (3) $ 64,316 $ 64,754 $ — Home equity and other 559 585 — Total consumer loans 64,875 65,339 — Commercial real estate loans Construction/land development 1,355 1,355 — Total commercial real estate loans 1,355 1,355 — Commercial and industrial loans Owner occupied commercial real estate 2,301 2,369 — Commercial business 1,848 2,500 — Total commercial and industrial loans 4,149 4,869 — $ 70,379 $ 71,563 $ — With an allowance recorded: Consumer loans Single family $ 1,505 $ 1,505 $ 84 Home equity and other 480 480 37 Total consumer loans 1,985 1,985 121 Commercial and industrial loans Commercial business 517 548 8 Total commercial and industrial loans 517 548 8 $ 2,502 $ 2,533 $ 129 Total: Consumer loans Single family (3) $ 65,821 $ 66,259 $ 84 Home equity and other 1,039 1,065 37 Total consumer loans 66,860 67,324 121 Commercial real estate loans Construction/land development 1,355 1,355 — Total commercial real estate loans 1,355 1,355 — Commercial and industrial loans Owner occupied commercial real estate 2,301 2,369 — Commercial business 2,365 3,048 8 Total commercial and industrial loans 4,666 5,417 8 Total impaired loans $ 72,881 $ 74,096 $ 129 (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 $63.8 million in single family performing trouble debt restructurings ("TDRs"). At December 31, 2018 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family (3) $ 66,725 $ 67,496 $ — Home equity and other 743 769 — Total consumer loans 67,468 68,265 — Commercial real estate loans Multifamily 492 492 — Construction/land development 726 726 — Total commercial real estate loans 1,218 1,218 — Commercial and industrial loans Owner occupied commercial real estate 1,220 1,543 — Commercial business 1,331 2,087 — Total commercial and industrial loans 2,551 3,630 — $ 71,237 $ 73,113 $ — With an allowance recorded: Consumer loans Single family $ 850 $ 850 $ 66 Home equity and other 494 494 41 Total consumer loans 1,344 1,344 107 Commercial and industrial loans Commercial business 503 503 126 Total commercial and industrial loans 503 503 126 $ 1,847 $ 1,847 $ 233 Total: Consumer loans Single family (3) $ 67,575 $ 68,346 $ 66 Home equity and other 1,237 1,263 41 Total consumer loans 68,812 69,609 107 Commercial real estate loans Multifamily 492 492 — Construction/land development 726 726 — Total commercial real estate loans 1,218 1,218 — Commercial and industrial loans Owner occupied commercial real estate 1,220 1,543 — Commercial business 1,834 2,590 126 Total commercial and industrial loans 3,054 4,133 126 Total impaired loans $ 73,084 $ 74,960 $ 233 (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 $65.8 million in single family performing TDRs. The following tables provide the average recorded investment and interest income recognized on impaired loans by portfolio segment and class. Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Consumer loans Single family $ 67,814 $ 662 $ 66,754 $ 653 Home equity and other 1,044 14 1,256 20 Total consumer loans 68,858 676 68,010 673 Commercial real estate loans Multifamily 242 — 640 6 Construction/land development 677 — 677 6 Total commercial real estate loans 919 — 1,317 12 Commercial and industrial loans Owner occupied commercial real estate 1,744 — 1,250 19 Commercial business 1,842 9 1,895 28 Total commercial and industrial loans 3,586 9 3,145 47 $ 73,363 $ 685 $ 72,472 $ 732 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Consumer loans Single family $ 68,181 $ 2,088 $ 69,384 $ 1,963 Home equity and other 1,112 46 1,267 58 Total consumer loans 69,293 2,134 70,651 2,021 Commercial real estate loans Non-owner occupied commercial real estate 3 — — — Multifamily 366 14 722 18 Construction/land development 1,689 — 600 17 Total commercial real estate loans 2,058 14 1,322 35 Commercial and industrial loans Owner occupied commercial real estate 2,936 112 2,085 74 Commercial business 1,889 29 2,420 94 Total commercial and industrial loans 4,825 141 4,505 168 $ 76,176 $ 2,289 $ 76,478 $ 2,224 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 financial 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. • The borrower 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 it faces industry issues that, when combined with performance factors create uncertainty in its 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 institution's credit position at some future date. Loans in this category contain unfavorable characteristics and are generally undesirable. They 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, or when there is 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 through 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 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 uncollateralized 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 uncollectible 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. 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 60-89 days past due from the required payment date at month-end. Special Mention. A homogeneous special mention loan, risk rated 7, is less than 90 days past due from the required payment date at month-end. S ubstandard. A homogeneous substandard loan, risk rated 8, is more than 90 days or more past due from the required payment date at month-end. Loss. A homogeneous loss loan, risk rated 10, is 120 days or more past due from the required payment date for non-real estate secured closed-end loans or 180 days or more past due from the required payment date for open-end loans and all loans secured by real estate. These loans are generally charged off in the month in which the applicable 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, is past due 180 cumulative days or more 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 September 30, 2019 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,172,275 (1) $ 2,417 $ 7,992 $ 5,475 $ 1,188,159 Home equity and other 565,632 360 812 987 567,791 Total consumer loans 1,737,907 2,777 8,804 6,462 1,755,950 Commercial real estate loans Non-owner occupied commercial real estate 791,964 2,899 — — 794,863 Multifamily 915,452 4,827 — — 920,279 Construction/land development 727,673 14,208 19,096 1,355 762,332 Total commercial real estate loans 2,435,089 21,934 19,096 1,355 2,477,474 Commercial and industrial loans Owner occupied commercial real estate 435,811 22,647 12,685 5,507 476,650 Commercial business 390,367 33,178 19,601 3,593 446,739 Total commercial and industrial loans 826,178 55,825 32,286 9,100 923,389 $ 4,999,174 $ 80,536 $ 60,186 $ 16,917 $ 5,156,813 (1) Includes $5.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2018 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,338,025 (1) $ 2,882 $ 8,775 $ 8,493 $ 1,358,175 Home equity and other 569,370 95 510 948 570,923 Total consumer loans 1,907,395 2,977 9,285 9,441 1,929,098 Commercial real estate loans Non-owner occupied commercial real estate 695,077 1,426 5,425 — 701,928 Multifamily 903,897 3,626 492 — 908,015 Construction/land development 767,113 21,531 1,084 4,816 794,544 Total commercial real estate loans 2,366,087 26,583 7,001 4,816 2,404,487 Commercial and industrial loans Owner occupied commercial real estate 392,273 22,928 11,087 2,870 429,158 Commercial business 299,225 14,331 15,427 2,021 331,004 Total commercial and industrial loans 691,498 37,259 26,514 4,891 760,162 $ 4,964,980 $ 66,819 $ 42,800 $ 19,148 $ 5,093,747 (1) Includes $4.1 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. As of September 30, 2019 and December 31, 2018 , none of the Company's loans were rated Doubtful or Loss. For a detailed discussion on credit quality, see Note 5, Loans and Credit Quality , within our 2018 Annual Report on Form 10-K. Nonaccrual and Past Due Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. Loans whose repayments are insured by the Federal Housing Administration ("FHA") or guaranteed by the Veterans Administration ("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 September 30, 2019 (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 $ 6,447 $ 2,972 $ 27,065 $ 36,484 $ 1,151,675 (1) $ 1,188,159 $ 21,590 (2) Home equity and other 147 360 987 1,494 566,297 567,791 — Total consumer loans 6,594 3,332 28,052 37,978 1,717,972 1,755,950 21,590 Commercial real estate loans Non-owner occupied commercial real estate — — — — 794,863 794,863 — Mult |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS: Deposit balances, including stated rates, were as follows. (in thousands) At September 30, At December 31, Noninterest-bearing accounts (1) $ 952,380 $ 914,154 NOW accounts, 0.00% to 1.44% at September 30, 2019 and December 31, 2018 421,750 376,137 Statement savings accounts, due on demand, 0.05% to 1.13% at September 30, 2019 and December 31, 2018 220,401 245,795 Money market accounts, due on demand, 0.00% to 3.43% at September 30, 2019 and 0.00% to 2.40% at December 31, 2018 2,073,907 1,935,516 Certificates of deposit, 0.10% to 3.06% at September 30, 2019 and 0.10% to 3.80% at December 31, 2018 2,135,869 1,579,806 $ 5,804,307 $ 5,051,408 (1) Includes zero and $162.8 million in servicing deposits related to discontinued operations at September 30, 2019 and December 31, 2018 , respectively. These deposits were transferred to the MSR buyers concurrent with the transfer of the loan servicing. Interest expense on deposits was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 NOW accounts $ 371 $ 416 $ 1,140 $ 1,286 Statement savings accounts 121 197 407 643 Money market accounts 7,129 4,481 19,822 12,003 Certificates of deposit 12,972 6,192 30,476 14,704 $ 20,593 $ 11,286 $ 51,845 $ 28,636 (1) Includes $91 thousand in interest expense on deposits related to discontinued operations for the three and nine months ended September 30, 2019 . The weighted-average interest rates on certificates of deposit were 2.27% and 1.87% at September 30, 2019 and December 31, 2018 , respectively. Certificates of deposit outstanding mature as follows. (in thousands) At September 30, Within one year $ 1,737,262 One to two years 309,166 Two to three years 57,857 Three to four years 16,065 Four to five years 15,485 Thereafter 34 $ 2,135,869 The aggregate amount of time deposits in denominations of more than $250 thousand at September 30, 2019 and December 31, 2018 were $231.2 million and $85.3 million , respectively. There were $739.0 million and $786.1 million of brokered deposits at September 30, 2019 and December 31, 2018 , respectively. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2019 | |
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 interest rate swaptions as risk management instruments in its hedging strategy. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. We held no derivatives designated as a fair value, cash flow or foreign currency hedge instrument at September 30, 2019 or December 31, 2018 . 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 statements of financial condition. Refer to Note 3, Investment Securities, for further information on securities collateral pledged. At September 30, 2019 and December 31, 2018 , the Company did not hold any collateral received from counterparties under derivative transactions. In addition, the Company periodically enters into certain commercial loan interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rates. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to a swap agreement. This swap agreement effectively converts the customer’s variable rate loan into a fixed rate. The Company then enters into a corresponding swap agreement with a third-party in order to offset its exposure on the variable and fixed components of the customer loan agreement. As the interest rate swap agreements with the customers and third parties are not designated as hedges under the Derivatives and Hedging topic of the FASB ASC, the instruments are marked to market in earnings. The notional amount of open interest rate swap agreements at September 30, 2019 and December 31, 2018 were $77.8 million and $2.6 million , respectively. During the three and nine months ended September 30, 2019 , there were $115 thousand and $149 thousand , respectively, mark-to-market loss recorded to “Other” noninterest income in our consolidated statements of operations. The Company had no similar activity in the three and nine months ended September 30, 2018 . For further information on the policies that govern derivative and hedging activities, see Note 1, Summary of Significant Accounting Policies, and Note 11, Derivatives and Hedging Activities, within our 2018 Annual Report on Form 10-K. The notional amounts and fair values for derivatives consist of the following. At September 30, 2019 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 1,509,784 $ 3,026 $ (2,180 ) Interest rate lock and purchase loan commitments 287,806 4,239 (203 ) Interest rate swaps 633,387 36,563 (14,568 ) Eurodollar futures 1,661,000 24 — Total derivatives before netting $ 4,091,977 43,852 (16,951 ) Netting adjustment/Cash collateral (1) (14,981 ) 16,532 Carrying value on consolidated statements of financial condition (2) $ 28,871 $ (419 ) At December 31, 2018 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 1,334,947 $ 3,025 $ (5,340 ) Interest rate swaptions 34,000 203 — Interest rate lock and purchase loan commitments 390,558 10,289 (5 ) Interest rate swaps 803,652 14,566 (11,549 ) Eurodollar futures 3,135,000 — (110 ) Total derivatives before netting $ 5,698,157 28,083 (17,004 ) Netting adjustment/Cash collateral (1) (8,329 ) 12,517 Carrying value on consolidated statements of financial condition (2) $ 19,754 $ (4,487 ) (1) Includes cash collateral of $1.6 million and $4.2 million at September 30, 2019 and December 31, 2018 , as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. (2) Includes both continuing and discontinued operations. The following tables present gross and net information about derivative instruments. At September 30, 2019 (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 $ 43,852 $ (14,981 ) $ 28,871 $ — $ 28,871 Derivative liabilities (16,951 ) 16,532 (419 ) — (419 ) At December 31, 2018 (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 28,083 $ (8,329 ) $ 19,754 $ — $ 19,754 Derivative liabilities (17,004 ) 12,517 (4,487 ) 3,223 (1,264 ) (1) Includes cash collateral of $1.6 million and $4.2 million at September 30, 2019 and December 31, 2018 , respectively, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. 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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Recognized in noninterest income: (1) Net (loss) gain on loan origination and sale activities (2) $ (6,884 ) $ (4,760 ) $ (17,983 ) $ 12,322 Loan servicing income (loss) (3) 9,040 (9,446 ) 19,917 (52,611 ) Other (4) 115 — 149 — $ 2,271 $ (14,206 ) $ 2,083 $ (40,289 ) (1) Includes both continuing and discontinued operations. (2) 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. (3) Comprised of interest rate swaps, interest rate swaptions, futures and forward contracts used as an economic hedge of single family MSRs. (4) Comprised of interest rate swaps used as an economic hedge of loans held for investment. |
MORTGAGE BANKING OPERATIONS
MORTGAGE BANKING OPERATIONS | 9 Months Ended |
Sep. 30, 2019 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING OPERATIONS | MORTGAGE BANKING OPERATIONS: Loans held for sale consisted of the following. (in thousands) At September 30, At December 31, Commercial $ 85,240 $ 25,139 Single family (1) 158,931 321,868 Total loans held for sale $ 244,171 $ 347,007 (1) Includes loans from discontinued operations of $71.2 million and $269.7 million at September 30, 2019 and December 31, 2018 , respectively. Loans sold proceeds consisted of the following. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Commercial $ 270,484 $ 157,868 $ 586,217 $ 367,429 Single family (1) 893,959 1,724,697 3,352,872 5,043,769 Total loans sold (2) $ 1,164,443 $ 1,882,565 $ 3,939,089 $ 5,411,198 (1) Includes both continuing and discontinued operations. (2) Includes loans originated as held for investment. Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Commercial $ 6,693 $ 4,236 $ 12,179 $ 8,481 Single family (1) 9,628 40,335 78,612 141,458 Gain on loan origination and sale activities (2) $ 16,321 $ 44,571 $ 90,791 $ 149,939 (1) Includes $370 thousand and $40.4 million from discontinued operations for three months ended September 30, 2019 and 2018 , respectively, and $60.1 million and $142.0 million for the nine months ended September 30, 2019 and 2018 , respectively. (2) Includes loans 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. (in thousands) At September 30, At December 31, Commercial $ 1,576,714 $ 1,542,477 Single family (1) 7,014,265 20,151,735 Total loans serviced for others $ 8,590,979 $ 21,694,212 (1) Includes both continuing and discontinued operations at December 31, 2018. 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 8, Commitments, Guarantees and Contingencies, of this Quarterly Report on Form 10-Q. The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 3,237 $ 2,504 $ 3,120 $ 3,015 Additions, net of adjustments (1) (22 ) 643 482 1,248 Realized losses (2) (28 ) (273 ) (415 ) (1,389 ) Balance, end of period $ 3,187 $ 2,874 $ 3,187 $ 2,874 (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 certain 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 $3.0 million and $2.5 million were recorded in other assets as of September 30, 2019 and December 31, 2018 , 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 records the loan on its consolidated statement of financial condition. At September 30, 2019 and December 31, 2018 , delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated statements of financial condition totaled $11.2 million and $37.7 million , respectively, with a corresponding offsetting 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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Servicing income, net: Servicing fees and other $ 7,454 $ 15,046 $ 30,877 $ 51,882 Changes in fair value of single family MSRs due to modeled amortization (1) (4,489 ) (8,300 ) (16,894 ) (26,570 ) Amortization of multifamily and SBA MSRs (1,315 ) (1,034 ) (3,793 ) (3,147 ) 1,650 5,712 10,190 22,165 Risk management, single family MSRs: Changes in fair value of MSRs due to changes in market inputs and/or model updates (2)(3) (7,501 ) 11,562 (22,193 ) 52,880 Net gain (loss) from derivatives economically hedging MSR 9,040 (9,446 ) 19,917 (52,611 ) 1,539 2,116 (2,276 ) 269 Loan servicing income (4) $ 3,189 $ 7,828 $ 7,914 $ 22,434 (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. (3) Includes pre-tax income of $333 thousand and pre-tax loss of $941 thousand , net of transaction costs, brokerage fees and prepayment reserves, resulting from the sales of single family MSRs during the three and nine months ended September 30, 2019 , respectively, and pre-tax income of $573 thousand for the nine months ended September 30, 2018 . (4) Includes $ 502 thousand and $6.9 million from discontinued operations for three months ended September 30, 2019 and 2018 and $2.0 million and $19.6 million for the nine months ended 2019 and 2018 , respectively. 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. Three Months Ended September 30, Nine Months Ended September 30, (rates per annum) (1) 2019 2018 2019 2018 Constant prepayment rate ("CPR") (2) 18.86 % 17.19 % 18.82 % 15.54 % Discount rate (3) 8.96 % 10.29 % 9.39 % 10.27 % (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 September 30, 2019 Fair value of single family MSR $ 61,823 Expected weighted-average life (in years) 4.05 Constant prepayment rate (1) 20.50 % Impact on fair value of 25 basis points adverse change in interest rates $ (4,234 ) Impact on fair value of 50 basis points adverse change in interest rates $ (7,956 ) Discount rate 9.00 % Impact on fair value of 100 basis points increase $ (1,718 ) Impact on fair value of 200 basis points increase $ (3,331 ) (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. In March 2019, the Company successfully closed and settled two sales of the rights to service an aggregate of $14.26 billion in total unpaid principal balance of single family mortgage loans serviced for Fannie Mae, Ginnie Mae and Freddie Mac representing 71% of HomeStreet's total single family mortgage loans serviced for others portfolio as of December 31, 2018. These sales resulted in a $941 thousand pre-tax loss from discontinued operations for the nine months ended September 30, 2019. The Company completed the servicing transfer for a portion of these loans in the second quarter and then finalized the transfer of the remainder in the third quarter of 2019. The changes in single family MSRs measured at fair value are as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 67,723 $ 245,744 $ 252,168 $ 258,560 Additions and amortization: Originations 6,422 14,525 23,893 45,551 Sale of single family MSRs — (12 ) (176,944 ) (66,902 ) Changes due to modeled amortization (1) (4,489 ) (8,300 ) (16,894 ) (26,570 ) Net additions and amortization 1,933 6,213 (169,945 ) (47,921 ) Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (7,833 ) 11,665 (20,400 ) 52,983 Ending balance $ 61,823 $ 263,622 $ 61,823 $ 263,622 (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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 27,227 $ 26,460 $ 28,326 $ 26,093 Origination 2,770 2,657 3,931 5,000 Amortization (1,196 ) (981 ) (3,456 ) (2,957 ) Ending balance $ 28,801 $ 28,136 $ 28,801 $ 28,136 At September 30, 2019 , the expected weighted-average remaining life of the Company's multifamily MSRs was 10.59 years . Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows. (in thousands) At September 30, 2019 Remainder of 2019 $ 1,028 2020 4,068 2021 3,953 2022 3,734 2023 3,516 2024 3,241 2025 and thereafter 9,261 Carrying value of multifamily MSR $ 28,801 |
COMMITMENTS, GUARANTEES, AND CO
COMMITMENTS, GUARANTEES, AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
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 does 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 held for investment portfolio. The aggregate amount of these unrecognized unfunded loan commitments existing at September 30, 2019 and December 31, 2018 was $36.7 million and $33.8 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 $400.7 million and $607.2 million at September 30, 2019 and December 31, 2018 , respectively. Unused home equity and commercial banking funding lines totaled $750.4 million and $662.1 million at September 30, 2019 and December 31, 2018 , 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 $1.2 million and $1.4 million at September 30, 2019 and December 31, 2018 , respectively. Guarantees In the ordinary course of business, the Company sells and services loans through the Fannie Mae Multifamily DUS ® program and shares in the risk of loss with Fannie Mae under the terms of the DUS ® contracts (pari passu loss sharing agreement). Under such agreements, the Company and Fannie Mae share losses on a pro rata basis, where the Company is responsible for losses incurred up to one-third of principal balance on each loan and with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. As of September 30, 2019 and December 31, 2018 , the total unpaid principal balance of loans sold under this program was $1.50 billion and $1.46 billion , respectively. The Company's reserve liability related to this arrangement totaled $2.6 million and $2.5 million at September 30, 2019 and December 31, 2018 , respectively. There were no actual losses incurred under this arrangement during the three and nine months ended September 30, 2019 and 2018 . 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 Securities 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 another 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 $7.09 billion and $20.24 billion as of September 30, 2019 and December 31, 2018 , respectively. At September 30, 2019 and December 31, 2018 , 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 $3.2 million and $3.1 million , respectively. Contingencies In the normal course of business, the Company may have various legal claims and other similar contingent matters outstanding for which a loss may be realized. For these claims, the Company establishes a liability for contingent losses when it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. For claims determined to be reasonably possible but not probable of resulting in a loss, there may be a range of possible losses in excess of the established liability. At September 30, 2019 , 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 September 30, 2019 . |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT: For a further discussion of fair value measurements, including information regarding the Company's valuation methodologies and the fair value hierarchy, see Note 18, Fair Value Measurement within our 2018 Annual Report on Form 10-K. Valuation Processes The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. The Finance Committee of the Board provides oversight and approves the Company's Asset/Liability Management Policy ("ALMP"). The Company's ALMP governs, among other things, the application and control of the valuation models used to measure fair value. On a quarterly basis, the Company's Asset/Liability Management Committee ("ALCO") and the Finance Committee of the Board review significant modeling variables used to measure the fair value of the Company's financial instruments, including the significant inputs used in the valuation of single family MSRs. Additionally, ALCO periodically obtains an independent review of the MSR valuation process and procedures, including a review of the model architecture and the valuation assumptions. The Company obtains an MSR valuation from an independent valuation firm monthly to assist with the validation of the fair value estimate and the reasonableness of the assumptions used in measuring fair value. The Company's real estate valuations are overseen by the Company's appraisal department, which is independent of the Company's lending and credit administration functions. The appraisal department maintains the Company's appraisal policy and recommends changes to the policy subject to approval by the Company's Loan Committee and the Credit Committee of the Board. The Company's appraisals are prepared by independent third-party appraisers and the Company's internal appraisers. Single family appraisals are generally reviewed by the Company's single family loan underwriters. Single family appraisals with unusual, higher risk or complex characteristics, as well as commercial real estate appraisals, are reviewed by the Company's appraisal department. We obtain pricing from third party service providers for determining the fair value of a substantial portion of our investment securities available for sale. We have processes in place to evaluate such third party pricing services to ensure information obtained and valuation techniques used are appropriate. For fair value measurements obtained from third party services, we monitor and review the results to ensure the values are reasonable and in line with market experience for similar classes of securities. While the inputs used by the pricing vendor in determining fair value are not provided, and therefore unavailable for our review, we do perform certain procedures to validate the values received, including comparisons to other sources of valuation (if available), comparisons to other independent market data and a variance analysis of prices by Company personnel that are not responsible for the performance of the investment securities. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities, and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company's assets and liabilities. Asset/Liability class Valuation methodology, inputs and assumptions Classification Investment securities Investment securities available for sale Observable market prices of identical or similar securities are used where available. Level 2 recurring fair value measurement. 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 3 recurring fair value measurement. 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: • Benchmark yield curve • Estimated discount spread to the benchmark yield curve • Expected prepayment speeds Estimated fair value classified as Level 3. 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 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement. 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. The following table presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis. (in thousands) Fair Value at September 30, 2019 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 109,581 $ — $ 107,647 $ 1,934 Commercial 29,836 — 29,836 — Collateralized mortgage obligations: Residential 187,989 — 187,989 — Commercial 109,543 — 109,543 — Municipal bonds 380,094 — 380,094 — Corporate debt securities 18,768 — 18,678 90 U.S. Treasury securities 1,308 — 1,308 — Agency debentures 25,220 — 25,220 — Single family loans held for sale (1) 158,931 — 152,854 6,077 Single family loans held for investment 5,295 — — 5,295 Single family mortgage servicing rights 61,823 — — 61,823 Derivatives (1) Eurodollar futures 24 24 — — Forward sale commitments 3,026 — 3,026 — Interest rate lock and purchase loan commitments 4,239 — — 4,239 Interest rate swaps 36,563 — 36,563 — Total assets $ 1,132,240 $ 24 $ 1,052,758 $ 79,458 Liabilities: Derivatives Forward sale commitments $ 2,180 $ — 2,180 $ — Interest rate lock and purchase loan commitments 203 — — 203 Interest rate swaps 14,568 — 14,568 — Total liabilities $ 16,951 $ — $ 16,748 $ 203 (1) Includes both continuing and discontinued operations. (in thousands) Fair Value at December 31, 2018 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 107,961 $ — $ 107,961 $ — Commercial 34,514 — 34,514 — Collateralized mortgage obligations: Residential 166,744 — 166,744 — Commercial 116,674 — 116,674 — Municipal bonds 385,655 — 385,655 — Corporate debt securities 19,995 — 19,995 — U.S. Treasury securities 10,900 — 10,900 — Agency debentures 9,525 — 9,525 — Single family loans held for sale (1) 321,868 — 319,177 2,691 Single family loans held for investment 4,057 — — 4,057 Single family mortgage servicing rights 252,168 — — 252,168 Derivatives Forward sale commitments 3,025 — 3,025 — Interest rate swaptions 203 — 203 — Interest rate lock and purchase loan commitments 10,289 — — 10,289 Interest rate swaps 14,566 — 14,566 — Total assets $ 1,458,144 $ — $ 1,188,939 $ 269,205 Liabilities: Derivatives Eurodollar futures $ 110 $ 110 $ — $ — Forward sale commitments 5,340 — 5,340 — Interest rate lock and purchase loan commitments 5 — — 5 Interest rate swaps 11,550 — 11,550 — Total liabilities $ 17,005 $ 110 $ 16,890 $ 5 (1) Includes both continuing and discontinued operations. There were no transfers between levels of the fair value hierarchy during the three and nine months ended September 30, 2019 and 2018 . Level 3 Recurring Fair Value Measurements The Company's Level 3 recurring fair value measurements consist of investment securities available for sale, single family MSRs, single family loans held for investment where fair value option was elected, certain single family loans held for sale, and interest rate lock and purchase loan commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the three and nine months ended September 30, 2019 and 2018 , see Note 7, Mortgage Banking Operations of this Form 10-Q. The fair value of interest rate lock commitments ("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 $5.3 million and $4.1 million at September 30, 2019 and December 31, 2018 , respectively. The following information presents significant Level 3 unobservable inputs used to measure fair value of certain investment securities available for sale. (dollars in thousands) At September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Investment securities available for sale (1) $ 2,024 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% (1) In conjunction with adopting ASU 2017-12 in the first quarter of 2019, we transferred $66.2 million HTM securities to AFS, therefore we did not have a similar balance at December 31, 2018 . 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 September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 5,295 Income approach Implied spread to benchmark interest rate curve 4.34% 7.01% 5.30% (dollars in thousands) At December 31, 2018 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 4,057 Income approach Implied spread to benchmark interest rate curve 3.34% 5.15% 4.20% 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 September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 6,077 Income approach Implied spread to benchmark interest rate curve 5.71% 6.71% 6.07% Market price movement from comparable bond (0.10)% (0.08)% (0.09)% (dollars in thousands) At December 31, 2018 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 2,691 Income approach Implied spread to benchmark interest rate curve 4.26% 4.96% 4.40% Market price movement from comparable bond 0.71% 1.09% 0.90% 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 September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 4,036 Income approach Fall-out factor —% 63.68% 12.62% Value of servicing 0.51% 1.62% 1.12% (dollars in thousands) At December 31, 2018 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 10,284 Income approach Fall-out factor —% 67.92% 19.84% Value of servicing 0.54% 1.64% 0.93% The following table present fair value changes and activity for Level 3 investment securities available for sale. Three Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Investment securities available for sale $ 1,981 $ — $ — $ (40 ) $ 83 $ 2,024 Nine Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Investment securities available for sale $ — $ — $ 2,379 $ (120 ) $ (235 ) $ 2,024 The following tables present fair value changes and activity for Level 3 loans held for sale and loans held for investment. Three Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 4,427 $ 2,393 $ — $ (686 ) $ (57 ) $ 6,077 Loans held for investment 4,475 789 — — 31 5,295 Three Months Ended September 30, 2018 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 1,823 $ — $ — $ — $ (30 ) $ 1,793 Loans held for investment 4,178 — — (2 ) (86 ) 4,090 Nine Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 2,691 $ 5,060 $ — $ (1,595 ) $ (79 ) $ 6,077 Loans held for investment 4,057 1,788 — (606 ) 56 5,295 Nine Months Ended September 30, 2018 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 1,336 $ 2,601 $ — $ (1,998 ) $ (146 ) $ 1,793 Loans held for investment 5,477 — — (1,116 ) (271 ) 4,090 The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance, net $ 8,624 $ 16,866 $ 10,284 $ 12,925 Total realized/unrealized gains 1,243 26,527 34,655 77,607 Settlements (5,831 ) (32,996 ) (40,903 ) (80,135 ) Ending balance, net $ 4,036 $ 10,397 $ 4,036 $ 10,397 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. The Company uses a fair value of collateral technique to apply adjustments to the stated value of certain commercial loans held for investment that are not collateralized by real estate. During the three and nine months ended September 30, 2019 and 2018 , the Company did not apply any adjustment to the appraisal value of OREO. Residential properties are generally based on unadjusted third-party appraisals. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. These adjustments include management assumptions that are based on the type of collateral dependent loan and may increase or decrease an appraised value. Management adjustments vary significantly depending on the location, physical characteristics and income producing potential of each individual property. The quality and volume of market information available at the time of the appraisal can vary from period-to-period and cause significant changes to the nature and magnitude of the unobservable inputs used. Given these variations, changes in these unobservable inputs are generally not a reliable indicator for how fair value will increase or decrease from period to period. The following tables present assets that had changes in their recorded fair value during the three and nine months ended September 30, 2019 and 2018 and assets held at the end of the respective reporting period. At or for the Three Months Ended September 30, 2019 (in thousands) Fair Value of Assets Held at September 30, 2019 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 266 $ — $ — $ 266 $ (2 ) Total $ 266 $ — $ — $ 266 $ (2 ) At or for the Three Months Ended September 30, 2018 (in thousands) Fair Value of Assets Held at September 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 1,213 $ — $ — 1,213 $ (68 ) Total $ 1,213 $ — $ — $ 1,213 $ (68 ) At or for the Nine Months Ended September 30, 2019 (in thousands) Fair Value of Assets Held at September 30, 2019 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 266 $ — $ — $ 266 $ (2 ) Total $ 266 $ — $ — $ 266 $ (2 ) At or for the Nine Months Ended September 30, 2018 (in thousands) Fair Value of Assets Held at September 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 1,213 $ — $ — $ 1,213 $ (212 ) Total $ 1,213 $ — $ — $ 1,213 $ (212 ) (1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. 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 September 30, 2019 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 74,788 $ 74,788 $ 74,788 $ — $ — Investment securities held to maturity 4,397 4,513 — 4,513 — Loans held for investment 5,133,813 5,285,639 — — 5,285,639 Loans held for sale – multifamily and other 85,240 85,240 — 85,240 — Mortgage servicing rights – multifamily 28,801 31,903 — — 31,903 Federal Home Loan Bank stock 8,764 8,764 — 8,764 — Liabilities: Time deposits $ 2,135,869 $ 2,146,696 $ — $ 2,146,696 $ — Federal Home Loan Bank advances 5,590 7,013 — 7,013 — Long-term debt 125,603 115,447 — 115,447 — At December 31, 2018 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 57,982 $ 57,982 $ 57,982 $ — $ — Investment securities held to maturity 71,285 70,546 — 70,546 — Loans held for investment 5,071,314 5,099,960 — — 5,099,960 Loans held for sale – multifamily and other 25,139 25,139 — 25,139 — Mortgage servicing rights – multifamily 28,326 31,168 — — 31,168 Federal Home Loan Bank stock 45,497 45,497 — 45,497 — Liabilities: Time deposits $ 1,579,806 $ 1,575,139 $ — $ 1,575,139 $ — Federal Home Loan Bank advances 932,590 935,021 — 935,021 — Federal funds purchased and securities sold under agreements to repurchase 19,000 19,021 19,021 — — Long-term debt 125,462 112,475 — 112,475 — |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2019 2018 2019 2018 EPS numerator: Income from continuing operations $ 13,665 $ 8,089 $ 27,615 $ 14,014 Undistributed stock dividends share repurchase (223 ) — (505 ) — Allocated undistributed earnings in share repurchase (101 ) — (128 ) — Income from continuing operations available to common shareholders 13,341 8,089 26,982 14,014 Income (loss) from discontinued operations 162 3,746 (21,091 ) 10,786 Net income available to common shareholders $ 13,503 $ 11,835 $ 5,891 $ 24,800 EPS denominator: Weighted average shares: Basic weighted-average number of common shares outstanding 24,419,793 26,985,425 26,020,172 26,963,260 Dilutive effect of outstanding common stock equivalents (1) 206,145 196,263 184,242 202,412 Diluted weighted-average number of common stock outstanding 24,625,938 27,181,688 26,204,414 27,165,672 Basic earnings per share: Income from continuing operations $ 0.55 $ 0.30 $ 1.04 $ 0.52 Income (loss) from discontinued operations 0.01 0.14 (0.81 ) 0.40 Basic earnings per share $ 0.55 $ 0.44 $ 0.23 $ 0.92 Diluted earnings per share: Income from continuing operations $ 0.54 $ 0.30 $ 1.03 $ 0.52 Income (loss) from discontinued operations 0.01 0.14 (0.80 ) 0.40 Diluted earnings per share $ 0.55 $ 0.44 $ 0.22 $ 0.91 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the three and nine months ended September 30, 2019 and 2018 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 690 at September 30, 2019 and zero at September 30, 2018 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES: We have operating and finance leases for corporate offices, commercial lending centers, retail deposit branches and certain equipment. Our leases have remaining lease terms of up to 20 years , some of which include options which are reasonably certain to be extended. Leases with an initial term of less than a year are not included in the Statement of Financial Condition. The Company, as sublessor, subleases certain office and retail space in which the terms of the subleases end by September 2024. Under all of our executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $1.7 million during the remainder of 2019, $6.3 million in 2020, $5.3 million in 2021, $4.1 million in 2022, $2.5 million in 2023 and $1.9 million thereafter. In the three and nine months ended September 30, 2019 , we incurred $ 38 thousand and $ 3.9 million in impairment charges related to the closure of certain offices. The components of lease expense were as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Operating lease cost $ 3,464 $ 11,180 Finance lease cost: Amortization of right-of-use assets 442 1,601 Interest on lease liabilities 81 262 Short-term lease 10 16 Variable lease cost 1,132 4,934 Sublease income (1,686 ) (2,515 ) Total lease cost $ 3,443 $ 15,478 Supplemental cash flow information related to leases was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,184 $ 12,916 Operating cash flows from finance leases 81 262 Financing cash flows from finance leases 322 1,375 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,059 $ (5,306 ) Finance leases 446 (570 ) Supplemental balance sheet information related to leases was as follows. (in thousands, except lease term and discount rate) September 30, 2019 Operating lease right-of-use assets $ 92,840 Operating lease liabilities 110,727 Finance lease right-of-use assets $ 9,003 Finance lease liabilities 9,345 Weighted Average Remaining lease term in years Operating leases 11.89 Finance leases 14.63 Weighted Average Discount Rate Operating leases 3.48 % Finance leases 3.56 % Maturities of lease liabilities were as follows. Operating Leases Finance Leases Year ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 4,363 $ 497 2020 16,496 1,767 2021 15,346 1,465 2022 13,331 590 2023 10,994 474 2024 9,451 400 Thereafter 69,653 7,238 Total lease payments 139,634 12,431 Less imputed interest 28,907 3,086 Total $ 110,727 $ 9,345 Future minimum rental payments, prior to the adoption of the new lease guidance, for all non-cancelable leases were as follows at December 31, 2018. (in thousands) At December 31, 2018 2019 $ 22,770 2020 20,671 2021 18,825 2022 16,418 2023 13,274 2024 and thereafter 40,717 Total minimum payments $ 132,675 |
LEASES | LEASES: We have operating and finance leases for corporate offices, commercial lending centers, retail deposit branches and certain equipment. Our leases have remaining lease terms of up to 20 years , some of which include options which are reasonably certain to be extended. Leases with an initial term of less than a year are not included in the Statement of Financial Condition. The Company, as sublessor, subleases certain office and retail space in which the terms of the subleases end by September 2024. Under all of our executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $1.7 million during the remainder of 2019, $6.3 million in 2020, $5.3 million in 2021, $4.1 million in 2022, $2.5 million in 2023 and $1.9 million thereafter. In the three and nine months ended September 30, 2019 , we incurred $ 38 thousand and $ 3.9 million in impairment charges related to the closure of certain offices. The components of lease expense were as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Operating lease cost $ 3,464 $ 11,180 Finance lease cost: Amortization of right-of-use assets 442 1,601 Interest on lease liabilities 81 262 Short-term lease 10 16 Variable lease cost 1,132 4,934 Sublease income (1,686 ) (2,515 ) Total lease cost $ 3,443 $ 15,478 Supplemental cash flow information related to leases was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,184 $ 12,916 Operating cash flows from finance leases 81 262 Financing cash flows from finance leases 322 1,375 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,059 $ (5,306 ) Finance leases 446 (570 ) Supplemental balance sheet information related to leases was as follows. (in thousands, except lease term and discount rate) September 30, 2019 Operating lease right-of-use assets $ 92,840 Operating lease liabilities 110,727 Finance lease right-of-use assets $ 9,003 Finance lease liabilities 9,345 Weighted Average Remaining lease term in years Operating leases 11.89 Finance leases 14.63 Weighted Average Discount Rate Operating leases 3.48 % Finance leases 3.56 % Maturities of lease liabilities were as follows. Operating Leases Finance Leases Year ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 4,363 $ 497 2020 16,496 1,767 2021 15,346 1,465 2022 13,331 590 2023 10,994 474 2024 9,451 400 Thereafter 69,653 7,238 Total lease payments 139,634 12,431 Less imputed interest 28,907 3,086 Total $ 110,727 $ 9,345 Future minimum rental payments, prior to the adoption of the new lease guidance, for all non-cancelable leases were as follows at December 31, 2018. (in thousands) At December 31, 2018 2019 $ 22,770 2020 20,671 2021 18,825 2022 16,418 2023 13,274 2024 and thereafter 40,717 Total minimum payments $ 132,675 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS: Recent Acquisition Activity On March 25, 2019, the Company completed its acquisition of a branch and its related deposits and loans in San Diego County, from Silvergate Bank along with its business lending team. The purchase accounting remains provisional for the valuation of the acquired loans and will be finalized later this year. The application of the acquisition method of accounting resulted in goodwill of $7.6 million |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 2,707 $ (19,722 ) $ (15,439 ) $ (7,122 ) Cumulative effect of adoption of new accounting standards (1) — — (2,080 ) — Other comprehensive income (loss) before reclassifications 5,273 (4,399 ) 25,412 (16,811 ) Amounts reclassified from accumulated other comprehensive income (loss) 15 4 102 (184 ) Net current-period other comprehensive income (loss) 5,288 (4,395 ) 25,514 (16,995 ) Ending balance $ 7,995 $ (24,117 ) $ 7,995 $ (24,117 ) (1) Reflects the January 1, 2019 adoption of ASU 2018-02 and ASU 2017-12. For additional information see Note 1, Summary of Significant Accounting Policies . The following table shows the impacted 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) Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 (Loss) Gain on sale of investment securities available for sale $ (19 ) $ (4 ) $ (129 ) $ 234 Income tax (benefit) expense (4 ) — (27 ) 50 Total, net of tax $ (15 ) $ (4 ) $ (102 ) $ 184 |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: On January 1, 2018, the Company adopted ASU No. 2014-09 Revenue from Contracts with Customers ("Topic 606") . We elected to implement Topic 606 using the modified retrospective application, with the cumulative effect recorded as an adjustment to retained earnings at January 1, 2018. Due to immateriality, we had no cumulative effect to record. Since net interest income on financial assets and liabilities is excluded from this guidance, a significant majority of our revenues are not subject to the new guidance. Our revenue streams that fall within the scope of Topic 606 are presented within noninterest income and are, in general, recognized as revenue as we satisfy our obligation to the customer. Most of the Company's contracts that fall within the scope of this guidance are contracts with customers that are cancelable by either party without penalty and are short-term in nature. These revenues include depositor and other retail and business banking fees, commission income, credit card fees and sales of other real estate owned. For the nine months ended September 30, 2019 and 2018, in scope revenue streams were approximately 2.3% and 2.3% of our total revenues, respectively. As this standard is immaterial to our consolidated financial statements, the Company has omitted certain disclosures in ASU 2014-09, including the disaggregation of revenue table. In-scope noninterest revenue streams are discussed below. Depositor and other retail and business banking fees Depositor and other retail banking fees consist of monthly service fees, check orders, and other deposit account related fees. The Company's performance obligation for these fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Commission Income Commission income primarily consists of revenue received on insurance policies and monthly investment management fees earned where the Company has acted as an intermediary between customers and the insurance carriers or investment advisers. Under Topic 606, the commissions received at the inception of the policy should be deferred and recognized over the course of the policy. The Company's performance obligation for commissions is generally satisfied, and the related revenue generally recognized, over the course of the policy or over the period in which the services are provided, typically monthly. Credit Card Fees The Company offers credit cards to its customers through a third party and earns a fee on each transaction and a fee for each new account activation on a net basis. Revenue is recognized on a one-month lag when cash is received for these fees which does not vary materially from recognizing revenue over the period the services are performed. Sale of Other Real Estate Owned |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING: In the first quarter of 2019, in connection with the Board of Directors approved plan of exit or disposal of our stand-alone home loan-center based mortgage origination business and related mortgage servicing, the Company restructured certain aspects of its infrastructure and back office operations, which has resulted in certain indirect severance and other employee related costs and impairment charges related to certain facilities and information systems. Cost directly related to the plan of exit or disposal are not included in restructuring, but rather are characterized as gain or loss on disposal, for further information, see Note 2. Discontinued Operations. In 2017, in response to changing market conditions and forecasts, we implemented restructuring plans in the Company's former Mortgage Banking segment to reduce operating costs and improve efficiency. I n June 2018, the Company implemented further restructuring in the legacy M ortgage Banking segment to further reduce operating costs and improve profitability. Restructuring charges primarily consist of facility-related costs and severance costs and are included in the occupancy and the salaries and related costs line items on our consolidated statement of operations in the applicable periods for continuing operations and in the income (loss) from discontinued operations for the applicable periods for discontinued operations. The following tables summarize the restructuring charges recognized during the three and nine months ended September 30, 2019 and 2018 and the Company's net remaining liability balance at September 30, 2019 and 2018 for both continuing and discontinued operations. 2019 2018 At and for the three months ended September 30 Facility-related costs Personnel-related costs Other costs Total Facility-related costs Personnel- related costs Other costs Total (in thousands) Beginning balance $ 1,423 $ 562 $ 22 $ 2,007 $ 4,209 $ 439 $ — $ 4,648 Restructuring charges 6 168 — 174 456 15 — 471 Costs paid or otherwise settled (173 ) (480 ) — (653 ) (1,409 ) (400 ) — (1,809 ) Ending balance $ 1,256 $ 250 $ 22 $ 1,528 $ 3,256 $ 54 $ — $ 3,310 2019 2018 At and for the nine months ended September 30 Facility-related costs Personnel-related costs Other costs Total Facility-related costs Personnel- related costs Other costs Total (in thousands) Beginning balance $ 1,604 $ — $ — $ 1,604 $ 1,386 $ — $ — $ 1,386 Restructuring charges 200 1,168 147 1,515 6,619 454 — 7,073 Costs paid or otherwise settled (548 ) (918 ) (125 ) (1,591 ) (4,749 ) (400 ) — (5,149 ) Ending balance $ 1,256 $ 250 $ 22 $ 1,528 $ 3,256 $ 54 $ — $ 3,310 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT: The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q and has concluded that there are no significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Company's accounting and financial reporting policies conform with 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, management 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. Some of these estimates require application of management's most difficult, subjective or complex judgments and result in amounts 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 12, Business Combinations ), allowance for credit losses (Note 4, Loans and Credit Quality ), valuation of residential mortgage servicing rights and loans held for sale (Note 7, Mortgage Banking Operations ), valuation of investment securities (Note 3, Investment Securities ), and valuation of derivatives (Note 6, Derivatives and Hedging Activities |
Discontinued Operations, | During the three months ended March 31, 2019, the Company's Board of Directors (the "Board") adopted a Resolution of Exit or Disposal of Home Loan Center ("HLC") Based Mortgage Banking Operations to sell or abandon the assets and transfer or terminate the personnel associated with the Company's high-volume home loan center-based mortgage origination business. The Company also successfully closed and settled two separate sales of the rights to service $14.26 billion in total unpaid principal balance of single family mortgage loans serviced for others, representing in the aggregate 71% of HomeStreet's total single family mortgage loans serviced for others portfolio at December 31, 2018. These two actions largely represent the Company's former Mortgage Banking segment. In accordance with Accounting Standards Codification (ASC) 205-20, the Company determined that the Board's decision to sell or abandon the assets and personnel associated with the Company's HLC-based mortgage business and the related mortgage servicing rights ("MSR") sales met the criteria to be classified as discontinued operations and its operating results and financial condition are presented as discontinued operations in the consolidated financial statements for the current and all comparative periods which have been recast to conform to the new presentation (see Note 2, Discontinued Operations for additional information). Unless otherwise indicated, information included in these notes to the consolidated financial statements (unaudited) are presented on a consolidated operations basis, which includes results from both continuing and discontinued operations, for all periods presented. In connection with the mortgage servicing rights ("MSR") sales and Board resolution regarding the former Mortgage Banking segment, the Company reassessed its reportable operating segments given these changes and associated changes made to its Chief Operating Decision Maker (CODM) package as of March 31, 2019. The Company concluded that as of March 31, 2019 the CODM evaluates the Company’s performance on a consolidated, entity-wide basis and accordingly has resulted in the elimination of segment reporting. The Company will no longer disclose operating results below the consolidated entity level which is now the reportable segment. These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results of the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report on Form 10-Q. The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. The interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission ("2018 Annual Report on Form 10-K"). |
Recent Accounting Developments | Recent Accounting Developments In May 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-05, Financial Instruments - Credit Losses (Topic 326) Targeted Transition Relief, or ASU 2019-05. This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13 therefore, it will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect to elect the fair value option under this guidance, and therefore, ASU 2019-05 is not expected to impact the Company’s Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 – Financial Instruments. The new ASU provides narrow-scope amendments to help apply these recent standards. The transition requirements and effective date of this ASU for HomeStreet is January 1, 2020 with early adoption permitted for certain amendments. The Company is currently assessing this standard’s impact on our consolidated results of operations and financial condition. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU adds, eliminates, and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the added disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not impact 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 permitted for annual or interim goodwill impairment tests performed 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 June 2016, FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments . Current U.S. GAAP requires an "incurred loss" methodology for recognizing credit losses that delay 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 has the contractual right to receive cash. The amendments in this ASU replace the incurred loss impairment model in current U.S. 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 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. Our allowance for credit losses includes both the allowance for loan losses and a separate allowance for losses related to unfunded loan commitments. 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 relevant 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 plans to adopt this ASU on January 1, 2020. The Company has substantially completed the development of the credit loss models for all loan portfolios and is in the process of testing these models and validating data inputs, while continuing to develop the policies, systems and controls that will be required to implement CECL. Based on forecasted economic conditions and portfolio composition at September 30, 2019, the adoption of the CECL standard is estimated to result in an overall allowance for credit losses increase of 0% to 10% , as compared to our current aggregate reserve levels. The estimated increase is driven by the fact that the allowance will cover expected credit losses over the full expected life of the loan portfolios and will also consider forecasts of expected future economic conditions. The extent of the impact of the adoption of CECL on the Company’s consolidated financial statements may vary and will depend on, completion of the Company’s models, policies and management judgment's, and the composition of the loan portfolios on the date of adoption. At adoption, we will have a cumulative-effect adjustment to retained earnings for our change in the allowance for credit losses. In addition, the current accounting policy and procedures for other-than-temporary impairment on investment securities classified as available for sale will be replaced with an allowance approach. The Company has begun developing and implementing processes to address the provisions of this ASU. Based on the credit quality of our existing debt securities portfolio, the Company does not expect the allowance for credit losses for HTM and AFS debt securities to be material. |
Loans and Leases Receivable | 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. |
Allowance for Loan and Lease Losses | Management considers the level of allowance for loan losses to be appropriate to cover credit losses inherent within the loans held for investment portfolio as of September 30, 2019 |
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 interest rate swaptions as risk management instruments in its hedging strategy. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. We held no derivatives designated as a fair value, cash flow or foreign currency hedge instrument at September 30, 2019 or December 31, 2018 . 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 statements of financial condition. Refer to Note 3, Investment Securities, |
Mortgage Banking Operations | 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. |
Fair Value Measurement | 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 Investment securities Investment securities available for sale Observable market prices of identical or similar securities are used where available. Level 2 recurring fair value measurement. 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 3 recurring fair value measurement. 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: • Benchmark yield curve • Estimated discount spread to the benchmark yield curve • Expected prepayment speeds Estimated fair value classified as Level 3. 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 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement. 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. |
Revenue | Depositor and other retail and business banking fees Depositor and other retail banking fees consist of monthly service fees, check orders, and other deposit account related fees. The Company's performance obligation for these fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Commission Income Commission income primarily consists of revenue received on insurance policies and monthly investment management fees earned where the Company has acted as an intermediary between customers and the insurance carriers or investment advisers. Under Topic 606, the commissions received at the inception of the policy should be deferred and recognized over the course of the policy. The Company's performance obligation for commissions is generally satisfied, and the related revenue generally recognized, over the course of the policy or over the period in which the services are provided, typically monthly. Credit Card Fees The Company offers credit cards to its customers through a third party and earns a fee on each transaction and a fee for each new account activation on a net basis. Revenue is recognized on a one-month lag when cash is received for these fees which does not vary materially from recognizing revenue over the period the services are performed. Sale of Other Real Estate Owned |
DISCONTINUED OPERATIONS - (Tabl
DISCONTINUED OPERATIONS - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table summarizes the calculation of the net gain (loss) on disposal of discontinued operations. (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Proceeds from asset sales $ — $ 186,612 Book value of asset sales (4 ) 180,978 Gain on assets sold 4 5,634 Transaction cost (recovery) expenses (386 ) 8,791 Compensation expense related to the transactions 596 4,388 Facility and IT related cost (recovery) expenses (1,466 ) 14,215 Total cost (recovery) expenses (1,256 ) 27,394 Net gain (loss) on disposal $ 1,260 $ (21,760 ) The carrying amount of major classes of assets and liabilities related to discontinued operations consisted of the following. (in thousands) September 30, 2019 December 31, 2018 ASSETS Loans held for sale, at fair value $ 71,213 $ 269,683 Mortgage serving rights — 177,121 Premises and equipment, net — 6,689 Other assets (1) 11,698 23,541 Assets of discontinued operations $ 82,911 $ 477,034 LIABILITIES Deposits $ — $ 162,850 Accrued expenses and other liabilities 5,075 4,271 Liabilities of discontinued operations $ 5,075 $ 167,121 (1) Includes $1.2 million and $15.5 million of derivative balances at September 30, 2019 and December 31, 2018 , respectively. Statements of Operations of Discontinued Operations Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net interest income $ 842 $ 3,784 $ 5,604 $ 10,054 Noninterest income 1,604 47,458 64,332 162,177 Noninterest expense 2,256 46,681 94,864 158,580 Income (loss) before income taxes 190 4,561 (24,928 ) 13,651 Income tax expense (benefit) 28 815 (3,837 ) 2,865 Income (loss) from discontinued operations $ 162 $ 3,746 $ (21,091 ) $ 10,786 Cash Flows for Discontinued Operations Nine Months Ended September 30, (in thousands) 2019 2018 Net cash provided by operating activities $ 196,712 $ 179,273 Net cash provided by investing activities 177,291 214,488 |
INVESTMENT SECURITIES - (Tables
INVESTMENT SECURITIES - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and fair value of available for sale securities | The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities available for sale and held to maturity. At September 30, 2019 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 111,221 $ 149 $ (1,789 ) $ 109,581 Commercial 29,219 624 (7 ) 29,836 Collateralized mortgage obligations: Residential 187,651 1,269 (931 ) 187,989 Commercial 109,116 1,072 (645 ) 109,543 Municipal bonds 369,988 11,078 (972 ) 380,094 Corporate debt securities 18,507 311 (50 ) 18,768 U.S. Treasury securities 1,296 12 — 1,308 Agency debentures 25,221 — (1 ) 25,220 $ 852,219 $ 14,515 $ (4,395 ) $ 862,339 HELD TO MATURITY (1) Municipal bonds $ 4,397 $ 116 $ — $ 4,513 $ 4,397 $ 116 $ — $ 4,513 (1) In conjunction with adopting ASU 2017-12, in the first quarter of 2019, we transferred $66.2 million in HTM securities to AFS. At December 31, 2018 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 112,852 $ 19 $ (4,910 ) $ 107,961 Commercial 34,892 109 (487 ) 34,514 Collateralized mortgage obligations: Residential 171,412 221 (4,889 ) 166,744 Commercial 118,555 140 (2,021 ) 116,674 Municipal bonds 393,463 1,526 (9,334 ) 385,655 Corporate debt securities 21,177 1 (1,183 ) 19,995 U.S. Treasury securities 11,211 6 (317 ) 10,900 Agency debentures 9,876 — (351 ) 9,525 $ 873,438 $ 2,022 $ (23,492 ) $ 851,968 HELD TO MATURITY Mortgage-backed securities: Residential $ 11,071 $ — $ (274 ) $ 10,797 Commercial 17,307 30 (311 ) 17,026 Collateralized mortgage obligations 15,624 10 (65 ) 15,569 Municipal bonds 27,191 190 (319 ) 27,062 Corporate debt securities 92 — — 92 $ 71,285 $ 230 $ (969 ) $ 70,546 |
Amortized cost and fair value of held-to-maturity securities | The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities available for sale and held to maturity. At September 30, 2019 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 111,221 $ 149 $ (1,789 ) $ 109,581 Commercial 29,219 624 (7 ) 29,836 Collateralized mortgage obligations: Residential 187,651 1,269 (931 ) 187,989 Commercial 109,116 1,072 (645 ) 109,543 Municipal bonds 369,988 11,078 (972 ) 380,094 Corporate debt securities 18,507 311 (50 ) 18,768 U.S. Treasury securities 1,296 12 — 1,308 Agency debentures 25,221 — (1 ) 25,220 $ 852,219 $ 14,515 $ (4,395 ) $ 862,339 HELD TO MATURITY (1) Municipal bonds $ 4,397 $ 116 $ — $ 4,513 $ 4,397 $ 116 $ — $ 4,513 (1) In conjunction with adopting ASU 2017-12, in the first quarter of 2019, we transferred $66.2 million in HTM securities to AFS. At December 31, 2018 (in thousands) Amortized Gross Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ 112,852 $ 19 $ (4,910 ) $ 107,961 Commercial 34,892 109 (487 ) 34,514 Collateralized mortgage obligations: Residential 171,412 221 (4,889 ) 166,744 Commercial 118,555 140 (2,021 ) 116,674 Municipal bonds 393,463 1,526 (9,334 ) 385,655 Corporate debt securities 21,177 1 (1,183 ) 19,995 U.S. Treasury securities 11,211 6 (317 ) 10,900 Agency debentures 9,876 — (351 ) 9,525 $ 873,438 $ 2,022 $ (23,492 ) $ 851,968 HELD TO MATURITY Mortgage-backed securities: Residential $ 11,071 $ — $ (274 ) $ 10,797 Commercial 17,307 30 (311 ) 17,026 Collateralized mortgage obligations 15,624 10 (65 ) 15,569 Municipal bonds 27,191 190 (319 ) 27,062 Corporate debt securities 92 — — 92 $ 71,285 $ 230 $ (969 ) $ 70,546 |
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 September 30, 2019 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 $ (338 ) $ 18,888 $ (1,451 ) $ 80,120 $ (1,789 ) $ 99,008 Commercial (2 ) 2,929 (5 ) 2,509 (7 ) 5,438 Collateralized mortgage obligations: Residential (277 ) 44,854 (654 ) 31,432 (931 ) 76,286 Commercial (195 ) 22,845 (450 ) 42,873 (645 ) 65,718 Municipal bonds (192 ) 26,805 (780 ) 54,189 (972 ) 80,994 Corporate debt securities — — (50 ) 1,744 (50 ) 1,744 U.S. Treasury securities — — — — — — Agency debentures (1 ) 25,221 — — (1 ) 25,221 $ (1,005 ) $ 141,542 $ (3,390 ) $ 212,867 $ (4,395 ) $ 354,409 There were no held to maturity securities in an unrealized loss position at September 30, 2019 . At December 31, 2018 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AVAILABLE FOR SALE Mortgage-backed securities: Residential $ (34 ) $ 1,269 $ (4,876 ) $ 104,822 $ (4,910 ) $ 106,091 Commercial — — (487 ) 18,938 (487 ) 18,938 Collateralized mortgage obligations: Residential (131 ) 24,085 (4,758 ) 128,899 (4,889 ) 152,984 Commercial (350 ) 22,051 (1,671 ) 73,429 (2,021 ) 95,480 Municipal bonds (1,283 ) 85,057 (8,051 ) 201,189 (9,334 ) 286,246 Corporate debt securities (104 ) 5,557 (1,079 ) 14,213 (1,183 ) 19,770 U.S. Treasury securities — — (317 ) 9,598 (317 ) 9,598 Agency debentures — — (351 ) 9,525 (351 ) 9,525 $ (1,902 ) $ 138,019 $ (21,590 ) $ 560,613 $ (23,492 ) $ 698,632 HELD TO MATURITY Mortgage-backed securities: Residential $ (31 ) $ 2,314 $ (243 ) $ 6,197 $ (274 ) $ 8,511 Commercial (24 ) 2,800 (287 ) 11,256 (311 ) 14,056 Collateralized mortgage obligations (65 ) 10,597 — — (65 ) 10,597 Municipal bonds (102 ) 7,210 (217 ) 11,273 (319 ) 18,483 $ (222 ) $ 22,921 $ (747 ) $ 28,726 $ (969 ) $ 51,647 |
Computation of weighted average yield using coupon on the fair value | 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 September 30, 2019 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ — — % $ 4 1.33 % $ 5,654 1.67 % $ 103,923 2.13 % $ 109,581 2.11 % Commercial — — 7,603 2.74 12,125 2.76 10,108 2.42 29,836 2.64 Collateralized mortgage obligations: Residential — — — — — — 187,989 2.45 187,989 2.45 Commercial — — 7,607 2.34 28,058 2.79 73,878 2.47 109,543 2.54 Municipal bonds — — — — 14,081 3.01 366,013 3.69 380,094 3.67 Corporate debt securities 1,016 3.41 7,584 3.63 10,078 3.70 90 6.13 18,768 3.67 U.S. Treasury securities 1,308 2.83 — — — — — — 1,308 2.83 Agency debentures — — 25,220 1.90 — — — — 25,220 1.90 Total available for sale $ 2,324 3.08 % $ 48,018 2.37 % $ 69,996 2.87 % $ 742,001 3.01 % $ 862,339 2.96 % HELD TO MATURITY Mortgage-backed securities: Municipal bonds $ — — % $ 1,794 2.90 % $ 2,719 2.08 % $ — — % $ 4,513 2.40 % Total held to maturity $ — — % $ 1,794 2.90 % $ 2,719 2.08 % $ — — % $ 4,513 2.40 % At December 31, 2018 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AVAILABLE FOR SALE Mortgage-backed securities: Residential $ — — % $ — — % $ 7,094 1.62 % $ 100,867 2.05 % $ 107,961 2.03 % Commercial — — 14,175 2.20 16,737 2.99 3,602 2.90 34,514 2.66 Collateralized mortgage obligations: Residential — — — — — — 166,744 2.43 166,744 2.43 Commercial — — 9,008 2.42 29,292 2.88 78,374 2.42 116,674 2.53 Municipal bonds 5,670 2.12 16,276 2.24 30,659 2.89 333,050 3.51 385,655 3.39 Corporate debt securities — — 3,949 2.96 13,608 3.31 2,438 3.65 19,995 3.29 U.S. Treasury securities — — 10,900 1.87 — — — — 10,900 1.87 Agency debentures — — — — 9,525 2.23 — — 9,525 2.23 Total available for sale $ 5,670 2.12 % $ 54,308 2.24 % $ 106,915 2.81 % $ 685,075 2.90 % $ 851,968 2.84 % HELD TO MATURITY Mortgage-backed securities: Residential $ — — % $ — — % $ — — % $ 10,797 2.82 % $ 10,797 2.82 % Commercial — — 12,147 2.51 4,879 2.64 — — 17,026 2.55 Collateralized mortgage obligations — — 7,205 3.59 — — 8,364 2.94 15,569 3.24 Municipal bonds — — 1,790 2.85 5,651 2.29 19,621 3.24 27,062 3.01 Corporate debt securities — — — — — — 92 6.00 92 6.00 Total held to maturity $ — — % $ 21,142 2.91 % $ 10,530 2.45 % $ 38,874 3.07 % $ 70,546 2.93 % |
Sales of investment securities available for sale | Sales of investment securities available for sale were as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Proceeds $ 25,190 $ 16,233 $ 144,602 $ 38,465 Gross gains 58 39 589 300 Gross losses (76 ) (43 ) (717 ) (66 ) |
Carrying value of securities pledged as collateral | The following table summarizes the carrying value of securities pledged as collateral to secure borrowings, public deposits and other purposes as permitted or required by law: (in thousands) At September 30, At December 31, Federal Home Loan Bank to secure borrowings $ — $ 63,179 Washington and California State to secure public deposits 150,828 126,565 Securities pledged to secure derivatives in a liability position — 5,077 Other securities pledged 4,516 5,147 Total securities pledged as collateral $ 155,344 $ 199,968 |
LOANS AND CREDIT QUALITY - (Tab
LOANS AND CREDIT QUALITY - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment consist of the following. (in thousands) At September 30, At December 31, Consumer loans Single family (1) $ 1,188,159 $ 1,358,175 Home equity and other 567,791 570,923 Total consumer loans 1,755,950 1,929,098 Commercial real estate loans Non-owner occupied commercial real estate 794,863 701,928 Multifamily 920,279 908,015 Construction/land development 762,332 794,544 Total commercial real estate loans 2,477,474 2,404,487 Commercial and industrial loans Owner occupied commercial real estate 476,650 429,158 Commercial business 446,739 331,004 Total commercial and industrial loans 923,389 760,162 Loans held for investment before deferred fees, costs and allowance 5,156,813 5,093,747 Net deferred loan fees and costs 25,732 23,094 5,182,545 5,116,841 Allowance for loan losses (43,437 ) (41,470 ) Total loans held for investment $ 5,139,108 $ 5,075,371 (1) Includes $5.3 million and $4.1 million at September 30, 2019 and December 31, 2018 , 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. |
Activity in allowance for credit losses | Activity in the allowance for credit losses was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Allowance for credit losses (roll-forward): Beginning balance $ 44,628 $ 40,982 $ 42,913 $ 39,116 Provision for credit losses — 750 1,500 2,500 Recoveries, net of (charge-offs) 6 122 221 238 Ending balance $ 44,634 $ 41,854 $ 44,634 $ 41,854 |
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. Three Months Ended September 30, 2019 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 7,540 $ — $ 1 $ (321 ) $ 7,220 Home equity and other 7,563 (68 ) 59 (69 ) 7,485 Total consumer loans 15,103 (68 ) 60 (390 ) 14,705 Commercial real estate loans Non-owner occupied commercial real estate 6,151 — — 330 6,481 Multifamily 7,047 — — (357 ) 6,690 Construction/land development 9,707 — 1 99 9,807 Total commercial real estate loans 22,905 — 1 72 22,978 Commercial and industrial loans Owner occupied commercial real estate 3,462 — — 139 3,601 Commercial business 3,158 — 13 179 3,350 Total commercial and industrial loans 6,620 — 13 318 6,951 Total allowance for credit losses $ 44,628 $ (68 ) $ 74 $ — $ 44,634 Three Months Ended September 30, 2018 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,594 $ (43 ) $ 2 $ (46 ) $ 8,507 Home equity and other 7,346 (107 ) 102 205 7,546 Total consumer loans 15,940 (150 ) 104 159 16,053 Commercial real estate loans Non-owner occupied commercial real estate 4,764 — — 249 5,013 Multifamily 5,017 — — 608 5,625 Construction/land development 9,205 — 170 (94 ) 9,281 Total commercial real estate loans 18,986 — 170 763 19,919 Commercial and industrial loans Owner occupied commercial real estate 3,032 — — 111 3,143 Commercial business 3,024 (10 ) 8 (283 ) 2,739 Total commercial and industrial loans 6,056 (10 ) 8 (172 ) 5,882 Total allowance for credit losses $ 40,982 $ (160 ) $ 282 $ 750 $ 41,854 Nine Months Ended September 30, 2019 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 8,217 $ — $ 143 $ (1,140 ) $ 7,220 Home equity and other 7,712 (209 ) 212 (230 ) 7,485 15,929 (209 ) 355 (1,370 ) 14,705 Commercial real estate loans Non-owner occupied commercial real estate 5,496 — — 985 6,481 Multifamily 5,754 — — 936 6,690 Construction/land development 9,539 — 48 220 9,807 Total commercial real estate loans 20,789 — 48 2,141 22,978 Commercial and industrial loans Owner occupied commercial real estate 3,282 — — 319 3,601 Commercial business 2,913 — 27 410 3,350 Total commercial and industrial loans 6,195 — 27 729 6,951 Total allowance for credit losses $ 42,913 $ (209 ) $ 430 $ 1,500 $ 44,634 Nine Months Ended September 30, 2018 (in thousands) Beginning Charge-offs Recoveries (Reversal of) Provision Ending Consumer loans Single family $ 9,412 $ (43 ) $ 284 $ (1,146 ) $ 8,507 Home equity and other 7,081 (349 ) 325 489 7,546 16,493 (392 ) 609 (657 ) 16,053 Commercial real estate loans Non-owner occupied commercial real estate 4,755 — — 258 5,013 Multifamily 3,895 — — 1,730 5,625 Construction/land development 8,677 — 513 91 9,281 Total commercial real estate loans 17,327 — 513 2,079 19,919 Commercial and industrial loans Owner occupied commercial real estate 2,960 — — 183 3,143 Commercial business 2,336 (663 ) 171 895 2,739 5,296 (663 ) 171 1,078 5,882 Total allowance for credit losses $ 39,116 $ (1,055 ) $ 1,293 $ 2,500 $ 41,854 |
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 September 30, 2019 (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 $ 7,136 $ 84 $ 7,220 $ 1,117,056 $ 65,821 $ 1,182,877 Home equity and other 7,448 37 7,485 566,739 1,039 567,778 Total consumer loans 14,584 121 14,705 1,683,795 66,860 1,750,655 Commercial real estate loans Non-owner occupied commercial real estate 6,481 — 6,481 794,863 — 794,863 Multifamily 6,690 — 6,690 920,279 — 920,279 Construction/land development 9,807 — 9,807 760,977 1,355 762,332 Total commercial real estate loans 22,978 — 22,978 2,476,119 1,355 2,477,474 Commercial and industrial loans Owner occupied commercial real estate 3,601 — 3,601 474,349 2,301 476,650 Commercial business 3,342 8 3,350 444,374 2,365 446,739 Total commercial and industrial loans 6,943 8 6,951 918,723 4,666 923,389 Total loans evaluated for impairment 44,505 129 44,634 5,078,637 72,881 5,151,518 Loans held for investment carried at fair value — — — — — 5,295 (1) Total loans held for investment $ 44,505 $ 129 $ 44,634 $ 5,078,637 $ 72,881 $ 5,156,813 At December 31, 2018 (in thousands) Allowance: collectively evaluated for impairment Allowance: individually evaluated for impairment Total Loans: collectively evaluated for impairment Loans: individually evaluated for impairment Total Consumer loans Single family $ 8,151 $ 66 $ 8,217 $ 1,286,556 $ 67,575 $ 1,354,131 Home equity and other 7,671 41 7,712 569,673 1,237 570,910 Total consumer loans 15,822 107 15,929 1,856,229 68,812 1,925,041 Commercial real estate loans Non-owner occupied commercial real estate 5,496 — 5,496 701,928 — 701,928 Multifamily 5,754 — 5,754 907,523 492 908,015 Construction/land development 9,539 — 9,539 793,818 726 794,544 Total commercial real estate loans 20,789 — 20,789 2,403,269 1,218 2,404,487 Commercial and industrial loans Owner occupied commercial real estate 3,282 — 3,282 427,938 1,220 429,158 Commercial business 2,787 126 2,913 329,170 1,834 331,004 Total commercial and industrial loans 6,069 126 6,195 757,108 3,054 760,162 Total loans evaluated for impairment 42,680 233 42,913 5,016,606 73,084 5,089,690 Loans held for investment carried at fair value — — — — — 4,057 (1) Total loans held for investment $ 42,680 $ 233 $ 42,913 $ 5,016,606 $ 73,084 $ 5,093,747 (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 September 30, 2019 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family (3) $ 64,316 $ 64,754 $ — Home equity and other 559 585 — Total consumer loans 64,875 65,339 — Commercial real estate loans Construction/land development 1,355 1,355 — Total commercial real estate loans 1,355 1,355 — Commercial and industrial loans Owner occupied commercial real estate 2,301 2,369 — Commercial business 1,848 2,500 — Total commercial and industrial loans 4,149 4,869 — $ 70,379 $ 71,563 $ — With an allowance recorded: Consumer loans Single family $ 1,505 $ 1,505 $ 84 Home equity and other 480 480 37 Total consumer loans 1,985 1,985 121 Commercial and industrial loans Commercial business 517 548 8 Total commercial and industrial loans 517 548 8 $ 2,502 $ 2,533 $ 129 Total: Consumer loans Single family (3) $ 65,821 $ 66,259 $ 84 Home equity and other 1,039 1,065 37 Total consumer loans 66,860 67,324 121 Commercial real estate loans Construction/land development 1,355 1,355 — Total commercial real estate loans 1,355 1,355 — Commercial and industrial loans Owner occupied commercial real estate 2,301 2,369 — Commercial business 2,365 3,048 8 Total commercial and industrial loans 4,666 5,417 8 Total impaired loans $ 72,881 $ 74,096 $ 129 (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 $63.8 million in single family performing trouble debt restructurings ("TDRs"). At December 31, 2018 (in thousands) Recorded investment (1) Unpaid principal balance (2) Related allowance With no related allowance recorded: Consumer loans Single family (3) $ 66,725 $ 67,496 $ — Home equity and other 743 769 — Total consumer loans 67,468 68,265 — Commercial real estate loans Multifamily 492 492 — Construction/land development 726 726 — Total commercial real estate loans 1,218 1,218 — Commercial and industrial loans Owner occupied commercial real estate 1,220 1,543 — Commercial business 1,331 2,087 — Total commercial and industrial loans 2,551 3,630 — $ 71,237 $ 73,113 $ — With an allowance recorded: Consumer loans Single family $ 850 $ 850 $ 66 Home equity and other 494 494 41 Total consumer loans 1,344 1,344 107 Commercial and industrial loans Commercial business 503 503 126 Total commercial and industrial loans 503 503 126 $ 1,847 $ 1,847 $ 233 Total: Consumer loans Single family (3) $ 67,575 $ 68,346 $ 66 Home equity and other 1,237 1,263 41 Total consumer loans 68,812 69,609 107 Commercial real estate loans Multifamily 492 492 — Construction/land development 726 726 — Total commercial real estate loans 1,218 1,218 — Commercial and industrial loans Owner occupied commercial real estate 1,220 1,543 — Commercial business 1,834 2,590 126 Total commercial and industrial loans 3,054 4,133 126 Total impaired loans $ 73,084 $ 74,960 $ 233 (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 $65.8 million in single family performing TDRs. |
Average recorded investment in impaired loans | The following tables provide the average recorded investment and interest income recognized on impaired loans by portfolio segment and class. Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Consumer loans Single family $ 67,814 $ 662 $ 66,754 $ 653 Home equity and other 1,044 14 1,256 20 Total consumer loans 68,858 676 68,010 673 Commercial real estate loans Multifamily 242 — 640 6 Construction/land development 677 — 677 6 Total commercial real estate loans 919 — 1,317 12 Commercial and industrial loans Owner occupied commercial real estate 1,744 — 1,250 19 Commercial business 1,842 9 1,895 28 Total commercial and industrial loans 3,586 9 3,145 47 $ 73,363 $ 685 $ 72,472 $ 732 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Consumer loans Single family $ 68,181 $ 2,088 $ 69,384 $ 1,963 Home equity and other 1,112 46 1,267 58 Total consumer loans 69,293 2,134 70,651 2,021 Commercial real estate loans Non-owner occupied commercial real estate 3 — — — Multifamily 366 14 722 18 Construction/land development 1,689 — 600 17 Total commercial real estate loans 2,058 14 1,322 35 Commercial and industrial loans Owner occupied commercial real estate 2,936 112 2,085 74 Commercial business 1,889 29 2,420 94 Total commercial and industrial loans 4,825 141 4,505 168 $ 76,176 $ 2,289 $ 76,478 $ 2,224 |
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 September 30, 2019 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,172,275 (1) $ 2,417 $ 7,992 $ 5,475 $ 1,188,159 Home equity and other 565,632 360 812 987 567,791 Total consumer loans 1,737,907 2,777 8,804 6,462 1,755,950 Commercial real estate loans Non-owner occupied commercial real estate 791,964 2,899 — — 794,863 Multifamily 915,452 4,827 — — 920,279 Construction/land development 727,673 14,208 19,096 1,355 762,332 Total commercial real estate loans 2,435,089 21,934 19,096 1,355 2,477,474 Commercial and industrial loans Owner occupied commercial real estate 435,811 22,647 12,685 5,507 476,650 Commercial business 390,367 33,178 19,601 3,593 446,739 Total commercial and industrial loans 826,178 55,825 32,286 9,100 923,389 $ 4,999,174 $ 80,536 $ 60,186 $ 16,917 $ 5,156,813 (1) Includes $5.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. At December 31, 2018 (in thousands) Pass Watch Special mention Substandard Total Consumer loans Single family $ 1,338,025 (1) $ 2,882 $ 8,775 $ 8,493 $ 1,358,175 Home equity and other 569,370 95 510 948 570,923 Total consumer loans 1,907,395 2,977 9,285 9,441 1,929,098 Commercial real estate loans Non-owner occupied commercial real estate 695,077 1,426 5,425 — 701,928 Multifamily 903,897 3,626 492 — 908,015 Construction/land development 767,113 21,531 1,084 4,816 794,544 Total commercial real estate loans 2,366,087 26,583 7,001 4,816 2,404,487 Commercial and industrial loans Owner occupied commercial real estate 392,273 22,928 11,087 2,870 429,158 Commercial business 299,225 14,331 15,427 2,021 331,004 Total commercial and industrial loans 691,498 37,259 26,514 4,891 760,162 $ 4,964,980 $ 66,819 $ 42,800 $ 19,148 $ 5,093,747 (1) Includes $4.1 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations. |
Past due loans by portfolio segment and loan class | The following tables present an aging analysis of past due loans by loan portfolio segment and loan class. At September 30, 2019 (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 $ 6,447 $ 2,972 $ 27,065 $ 36,484 $ 1,151,675 (1) $ 1,188,159 $ 21,590 (2) Home equity and other 147 360 987 1,494 566,297 567,791 — Total consumer loans 6,594 3,332 28,052 37,978 1,717,972 1,755,950 21,590 Commercial real estate loans Non-owner occupied commercial real estate — — — — 794,863 794,863 — Multifamily — — — — 920,279 920,279 — Construction/land development — — 1,355 1,355 760,977 762,332 — Total commercial real estate loans — — 1,355 1,355 2,476,119 2,477,474 — Commercial and industrial loans Owner occupied commercial real estate 1,110 — 2,301 3,411 473,239 476,650 — Commercial business 45 — 2,315 2,360 444,379 446,739 — Total commercial and industrial loans 1,155 — 4,616 5,771 917,618 923,389 — $ 7,749 $ 3,332 $ 34,023 $ 45,104 $ 5,111,709 $ 5,156,813 $ 21,590 At December 31, 2018 (in thousands) 30-59 days 60-89 days 90 days or Total past Current Total 90 days or Consumer loans Single family $ 9,725 $ 3,653 $ 47,609 $ 60,987 $ 1,297,188 (1) $ 1,358,175 $ 39,116 (2) Home equity and other 145 100 948 1,193 569,730 570,923 — Total consumer loans 9,870 3,753 48,557 62,180 1,866,918 1,929,098 39,116 Commercial real estate loans Non-owner occupied commercial real estate — — — — 701,928 701,928 — Multifamily — — — — 908,015 908,015 — Construction/land development — — 72 72 794,472 794,544 — Total commercial real estate loans — — 72 72 2,404,415 2,404,487 — Commercial and industrial loans Owner occupied commercial real estate — — 374 374 428,784 429,158 — Commercial business — — 1,732 1,732 329,272 331,004 — Total commercial and industrial loans — — 2,106 2,106 758,056 760,162 — $ 9,870 $ 3,753 $ 50,735 $ 64,358 $ 5,029,389 $ 5,093,747 $ 39,116 (1) Includes $5.3 million and $4.1 million of loans at September 30, 2019 and December 31, 2018 , 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 our consolidated statements of operations. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. |
Performing and non-performing 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 September 30, 2019 (in thousands) Accrual Nonaccrual Total Consumer loans Single family (1) $ 1,182,684 $ 5,475 $ 1,188,159 Home equity and other 566,804 987 567,791 Total consumer loans 1,749,488 6,462 1,755,950 Commercial real estate loans Non-owner occupied commercial real estate 794,863 — 794,863 Multifamily 920,279 — 920,279 Construction/land development 760,977 1,355 762,332 Total commercial real estate loans 2,476,119 1,355 2,477,474 Commercial and industrial loans Owner occupied commercial real estate 474,349 2,301 476,650 Commercial business 444,424 2,315 446,739 Total commercial and industrial loans 918,773 4,616 923,389 $ 5,144,380 $ 12,433 $ 5,156,813 At December 31, 2018 (in thousands) Accrual Nonaccrual Total Consumer loans Single family (1) $ 1,349,682 $ 8,493 $ 1,358,175 Home equity and other 569,975 948 570,923 Total consumer loans 1,919,657 9,441 1,929,098 Commercial real estate loans Non-owner occupied commercial real estate 701,928 — 701,928 Multifamily 908,015 — 908,015 Construction/land development 794,472 72 794,544 Total commercial real estate loans 2,404,415 72 2,404,487 Commercial and industrial loans Owner occupied commercial real estate 428,784 374 429,158 Commercial business 329,272 1,732 331,004 Total commercial and industrial loans 758,056 2,106 760,162 $ 5,082,128 $ 11,619 $ 5,093,747 (1) Includes $5.3 million and $4.1 million of loans at September 30, 2019 and December 31, 2018 , 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. |
TDR activity by loan portfolio segment and loan class | The following tables present information about TDR activity during the periods presented. Three Months Ended September 30, 2019 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 6 $ 1,112 $ — Payment restructure 21 5,420 — Total consumer Interest rate reduction 6 1,112 — Payment restructure 21 5,420 — 27 6,532 — Total loans Interest rate reduction 6 1,112 — Payment restructure 21 5,420 — 27 $ 6,532 $ — Three Months Ended September 30, 2018 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 2 $ 374 $ — Payment restructure 42 8,854 — Total consumer Interest rate reduction 2 374 — Payment restructure 42 8,854 — 44 9,228 — Total loans Interest rate reduction 2 374 — Payment restructure 42 8,854 — 44 $ 9,228 $ — Nine Months Ended September 30, 2019 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 13 $ 2,386 $ — Payment restructure 111 23,904 — Home equity and other Payment restructure 1 116 — Total consumer Interest rate reduction 13 2,386 — Payment restructure 112 24,020 — 125 26,406 — Commercial real estate loans Construction/land development Payment restructure 1 4,675 — Total commercial real estate Payment restructure 1 4,675 — 1 4,675 — Commercial and industrial loans Owner occupied commercial real estate Payment restructure 1 5,840 — Commercial business Payment restructure 1 259 — Total commercial and industrial Payment restructure 2 6,099 — 2 6,099 — Total loans Interest rate reduction 13 2,386 — Payment restructure 115 34,794 — 128 $ 37,180 $ — Nine Months Ended September 30, 2018 (dollars in thousands) Concession type Number of loan Recorded Related charge- Consumer loans Single family Interest rate reduction 15 $ 2,836 $ — Payment restructure 106 22,784 — Total consumer Interest rate reduction 15 2,836 — Payment restructure 106 22,784 — 121 25,620 — Commercial and industrial loans Commercial business Payment restructure 2 267 — Total commercial and industrial Payment restructure 2 267 — 2 267 — Total loans Interest rate reduction 15 2,836 — Payment restructure 108 23,051 — 123 $ 25,887 $ — |
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 three and nine months ended September 30, 2019 and 2018 , 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. Three Months Ended September 30, 2019 2018 (dollars in thousands) Number of loan relationships that re-defaulted Recorded Number of loan relationships that re-defaulted Recorded Consumer loans Single family 3 $ 643 6 $ 988 3 $ 643 6 $ 988 Nine Months Ended September 30, 2019 2018 (dollars in thousands) Number of loan relationships that re-defaulted Recorded Number of loan relationships that re-defaulted Recorded Consumer loans Single family 9 $ 1,873 18 $ 3,267 9 $ 1,873 18 $ 3,267 |
DEPOSITS - (Tables)
DEPOSITS - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Deposit balances, including stated rates | Deposit balances, including stated rates, were as follows. (in thousands) At September 30, At December 31, Noninterest-bearing accounts (1) $ 952,380 $ 914,154 NOW accounts, 0.00% to 1.44% at September 30, 2019 and December 31, 2018 421,750 376,137 Statement savings accounts, due on demand, 0.05% to 1.13% at September 30, 2019 and December 31, 2018 220,401 245,795 Money market accounts, due on demand, 0.00% to 3.43% at September 30, 2019 and 0.00% to 2.40% at December 31, 2018 2,073,907 1,935,516 Certificates of deposit, 0.10% to 3.06% at September 30, 2019 and 0.10% to 3.80% at December 31, 2018 2,135,869 1,579,806 $ 5,804,307 $ 5,051,408 (1) Includes zero and $162.8 million in servicing deposits related to discontinued operations at September 30, 2019 and December 31, 2018 , respectively. These deposits were transferred to the MSR buyers concurrent with the transfer of the loan servicing. |
Interest expense on deposits | Interest expense on deposits was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 NOW accounts $ 371 $ 416 $ 1,140 $ 1,286 Statement savings accounts 121 197 407 643 Money market accounts 7,129 4,481 19,822 12,003 Certificates of deposit 12,972 6,192 30,476 14,704 $ 20,593 $ 11,286 $ 51,845 $ 28,636 (1) Includes $91 thousand in interest expense on deposits related to discontinued operations for the three and nine months ended September 30, 2019 . |
Certificates of deposit outstanding | Certificates of deposit outstanding mature as follows. (in thousands) At September 30, Within one year $ 1,737,262 One to two years 309,166 Two to three years 57,857 Three to four years 16,065 Four to five years 15,485 Thereafter 34 $ 2,135,869 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 1,509,784 $ 3,026 $ (2,180 ) Interest rate lock and purchase loan commitments 287,806 4,239 (203 ) Interest rate swaps 633,387 36,563 (14,568 ) Eurodollar futures 1,661,000 24 — Total derivatives before netting $ 4,091,977 43,852 (16,951 ) Netting adjustment/Cash collateral (1) (14,981 ) 16,532 Carrying value on consolidated statements of financial condition (2) $ 28,871 $ (419 ) At December 31, 2018 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 1,334,947 $ 3,025 $ (5,340 ) Interest rate swaptions 34,000 203 — Interest rate lock and purchase loan commitments 390,558 10,289 (5 ) Interest rate swaps 803,652 14,566 (11,549 ) Eurodollar futures 3,135,000 — (110 ) Total derivatives before netting $ 5,698,157 28,083 (17,004 ) Netting adjustment/Cash collateral (1) (8,329 ) 12,517 Carrying value on consolidated statements of financial condition (2) $ 19,754 $ (4,487 ) (1) Includes cash collateral of $1.6 million and $4.2 million at September 30, 2019 and December 31, 2018 , as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. (2) Includes both continuing and discontinued operations. |
Fair value, concentration of risk | The following tables present gross and net information about derivative instruments. At September 30, 2019 (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 $ 43,852 $ (14,981 ) $ 28,871 $ — $ 28,871 Derivative liabilities (16,951 ) 16,532 (419 ) — (419 ) At December 31, 2018 (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value Securities not offset in consolidated balance sheet (disclosure-only netting) Net amount Derivative assets $ 28,083 $ (8,329 ) $ 19,754 $ — $ 19,754 Derivative liabilities (17,004 ) 12,517 (4,487 ) 3,223 (1,264 ) (1) Includes cash collateral of $1.6 million and $4.2 million at September 30, 2019 and December 31, 2018 , respectively, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security. |
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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Recognized in noninterest income: (1) Net (loss) gain on loan origination and sale activities (2) $ (6,884 ) $ (4,760 ) $ (17,983 ) $ 12,322 Loan servicing income (loss) (3) 9,040 (9,446 ) 19,917 (52,611 ) Other (4) 115 — 149 — $ 2,271 $ (14,206 ) $ 2,083 $ (40,289 ) (1) Includes both continuing and discontinued operations. (2) 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. (3) Comprised of interest rate swaps, interest rate swaptions, futures and forward contracts used as an economic hedge of single family MSRs. (4) Comprised of interest rate swaps used as an economic hedge of loans held for investment. |
MORTGAGE BANKING OPERATIONS - (
MORTGAGE BANKING OPERATIONS - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Mortgage Banking [Abstract] | |
Mortgage loans on real estate, by loan | Loans held for sale consisted of the following. (in thousands) At September 30, At December 31, Commercial $ 85,240 $ 25,139 Single family (1) 158,931 321,868 Total loans held for sale $ 244,171 $ 347,007 (1) Includes loans from discontinued operations of $71.2 million and $269.7 million at September 30, 2019 and December 31, 2018 , respectively. Loans sold proceeds consisted of the following. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Commercial $ 270,484 $ 157,868 $ 586,217 $ 367,429 Single family (1) 893,959 1,724,697 3,352,872 5,043,769 Total loans sold (2) $ 1,164,443 $ 1,882,565 $ 3,939,089 $ 5,411,198 (1) Includes both continuing and discontinued operations. |
Net gain on loan origination and sale activity | Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Commercial $ 6,693 $ 4,236 $ 12,179 $ 8,481 Single family (1) 9,628 40,335 78,612 141,458 Gain on loan origination and sale activities (2) $ 16,321 $ 44,571 $ 90,791 $ 149,939 (1) Includes $370 thousand and $40.4 million from discontinued operations for three months ended September 30, 2019 and 2018 , respectively, and $60.1 million and $142.0 million for the nine months ended September 30, 2019 and 2018 , respectively. (2) Includes loans 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. (in thousands) At September 30, At December 31, Commercial $ 1,576,714 $ 1,542,477 Single family (1) 7,014,265 20,151,735 Total loans serviced for others $ 8,590,979 $ 21,694,212 (1) Includes both continuing and discontinued operations at December 31, 2018. |
Mortgage repurchase losses | The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 3,237 $ 2,504 $ 3,120 $ 3,015 Additions, net of adjustments (1) (22 ) 643 482 1,248 Realized losses (2) (28 ) (273 ) (415 ) (1,389 ) Balance, end of period $ 3,187 $ 2,874 $ 3,187 $ 2,874 (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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Servicing income, net: Servicing fees and other $ 7,454 $ 15,046 $ 30,877 $ 51,882 Changes in fair value of single family MSRs due to modeled amortization (1) (4,489 ) (8,300 ) (16,894 ) (26,570 ) Amortization of multifamily and SBA MSRs (1,315 ) (1,034 ) (3,793 ) (3,147 ) 1,650 5,712 10,190 22,165 Risk management, single family MSRs: Changes in fair value of MSRs due to changes in market inputs and/or model updates (2)(3) (7,501 ) 11,562 (22,193 ) 52,880 Net gain (loss) from derivatives economically hedging MSR 9,040 (9,446 ) 19,917 (52,611 ) 1,539 2,116 (2,276 ) 269 Loan servicing income (4) $ 3,189 $ 7,828 $ 7,914 $ 22,434 (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. (3) Includes pre-tax income of $333 thousand and pre-tax loss of $941 thousand , net of transaction costs, brokerage fees and prepayment reserves, resulting from the sales of single family MSRs during the three and nine months ended September 30, 2019 , respectively, and pre-tax income of $573 thousand for the nine months ended September 30, 2018 . (4) Includes $ 502 thousand and $6.9 million from discontinued operations for three months ended September 30, 2019 and 2018 and $2.0 million and $19.6 million for the nine months ended 2019 and 2018 , respectively. |
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. Three Months Ended September 30, Nine Months Ended September 30, (rates per annum) (1) 2019 2018 2019 2018 Constant prepayment rate ("CPR") (2) 18.86 % 17.19 % 18.82 % 15.54 % Discount rate (3) 8.96 % 10.29 % 9.39 % 10.27 % (1) Weighted average rates for sales during the period for sales of loans with similar characteristics. (2) Represents the expected lifetime average. (3) Discount rate is a rate based on market observations. |
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets | 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 September 30, 2019 Fair value of single family MSR $ 61,823 Expected weighted-average life (in years) 4.05 Constant prepayment rate (1) 20.50 % Impact on fair value of 25 basis points adverse change in interest rates $ (4,234 ) Impact on fair value of 50 basis points adverse change in interest rates $ (7,956 ) Discount rate 9.00 % Impact on fair value of 100 basis points increase $ (1,718 ) Impact on fair value of 200 basis points increase $ (3,331 ) (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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 67,723 $ 245,744 $ 252,168 $ 258,560 Additions and amortization: Originations 6,422 14,525 23,893 45,551 Sale of single family MSRs — (12 ) (176,944 ) (66,902 ) Changes due to modeled amortization (1) (4,489 ) (8,300 ) (16,894 ) (26,570 ) Net additions and amortization 1,933 6,213 (169,945 ) (47,921 ) Changes in fair value of MSRs due to changes in market inputs and/or model updates (2) (7,833 ) 11,665 (20,400 ) 52,983 Ending balance $ 61,823 $ 263,622 $ 61,823 $ 263,622 (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. |
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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 27,227 $ 26,460 $ 28,326 $ 26,093 Origination 2,770 2,657 3,931 5,000 Amortization (1,196 ) (981 ) (3,456 ) (2,957 ) Ending balance $ 28,801 $ 28,136 $ 28,801 $ 28,136 |
Projected amortization expense for the gross carrying value of multifamily MSRs | At September 30, 2019 , the expected weighted-average remaining life of the Company's multifamily MSRs was 10.59 years . Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows. (in thousands) At September 30, 2019 Remainder of 2019 $ 1,028 2020 4,068 2021 3,953 2022 3,734 2023 3,516 2024 3,241 2025 and thereafter 9,261 Carrying value of multifamily MSR $ 28,801 |
FAIR VALUE MEASUREMENT - (Table
FAIR VALUE MEASUREMENT - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 Investment securities Investment securities available for sale Observable market prices of identical or similar securities are used where available. Level 2 recurring fair value measurement. 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 3 recurring fair value measurement. 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: • Benchmark yield curve • Estimated discount spread to the benchmark yield curve • Expected prepayment speeds Estimated fair value classified as Level 3. 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 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement. 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. |
Schedule of fair value hierarchy measurement | The following table presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis. (in thousands) Fair Value at September 30, 2019 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 109,581 $ — $ 107,647 $ 1,934 Commercial 29,836 — 29,836 — Collateralized mortgage obligations: Residential 187,989 — 187,989 — Commercial 109,543 — 109,543 — Municipal bonds 380,094 — 380,094 — Corporate debt securities 18,768 — 18,678 90 U.S. Treasury securities 1,308 — 1,308 — Agency debentures 25,220 — 25,220 — Single family loans held for sale (1) 158,931 — 152,854 6,077 Single family loans held for investment 5,295 — — 5,295 Single family mortgage servicing rights 61,823 — — 61,823 Derivatives (1) Eurodollar futures 24 24 — — Forward sale commitments 3,026 — 3,026 — Interest rate lock and purchase loan commitments 4,239 — — 4,239 Interest rate swaps 36,563 — 36,563 — Total assets $ 1,132,240 $ 24 $ 1,052,758 $ 79,458 Liabilities: Derivatives Forward sale commitments $ 2,180 $ — 2,180 $ — Interest rate lock and purchase loan commitments 203 — — 203 Interest rate swaps 14,568 — 14,568 — Total liabilities $ 16,951 $ — $ 16,748 $ 203 (1) Includes both continuing and discontinued operations. (in thousands) Fair Value at December 31, 2018 Level 1 Level 2 Level 3 Assets: Investment securities available for sale Mortgage backed securities: Residential $ 107,961 $ — $ 107,961 $ — Commercial 34,514 — 34,514 — Collateralized mortgage obligations: Residential 166,744 — 166,744 — Commercial 116,674 — 116,674 — Municipal bonds 385,655 — 385,655 — Corporate debt securities 19,995 — 19,995 — U.S. Treasury securities 10,900 — 10,900 — Agency debentures 9,525 — 9,525 — Single family loans held for sale (1) 321,868 — 319,177 2,691 Single family loans held for investment 4,057 — — 4,057 Single family mortgage servicing rights 252,168 — — 252,168 Derivatives Forward sale commitments 3,025 — 3,025 — Interest rate swaptions 203 — 203 — Interest rate lock and purchase loan commitments 10,289 — — 10,289 Interest rate swaps 14,566 — 14,566 — Total assets $ 1,458,144 $ — $ 1,188,939 $ 269,205 Liabilities: Derivatives Eurodollar futures $ 110 $ 110 $ — $ — Forward sale commitments 5,340 — 5,340 — Interest rate lock and purchase loan commitments 5 — — 5 Interest rate swaps 11,550 — 11,550 — Total liabilities $ 17,005 $ 110 $ 16,890 $ 5 (1) Includes both continuing and discontinued operations. |
Schedule of inputs used to measure fair value | The following information presents significant Level 3 unobservable inputs used to measure fair value of certain investment securities available for sale. (dollars in thousands) At September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Investment securities available for sale (1) $ 2,024 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% (1) In conjunction with adopting ASU 2017-12 in the first quarter of 2019, we transferred $66.2 million HTM securities to AFS, therefore we did not have a similar balance at December 31, 2018 . 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 September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 5,295 Income approach Implied spread to benchmark interest rate curve 4.34% 7.01% 5.30% (dollars in thousands) At December 31, 2018 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for investment, fair value option $ 4,057 Income approach Implied spread to benchmark interest rate curve 3.34% 5.15% 4.20% 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 September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 6,077 Income approach Implied spread to benchmark interest rate curve 5.71% 6.71% 6.07% Market price movement from comparable bond (0.10)% (0.08)% (0.09)% (dollars in thousands) At December 31, 2018 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Loans held for sale, fair value option $ 2,691 Income approach Implied spread to benchmark interest rate curve 4.26% 4.96% 4.40% Market price movement from comparable bond 0.71% 1.09% 0.90% 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 September 30, 2019 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 4,036 Income approach Fall-out factor —% 63.68% 12.62% Value of servicing 0.51% 1.62% 1.12% (dollars in thousands) At December 31, 2018 Fair Value Valuation Technique Significant Unobservable Input Low High Weighted Average Interest rate lock and purchase loan commitments, net $ 10,284 Income approach Fall-out factor —% 67.92% 19.84% Value of servicing 0.54% 1.64% 0.93% |
Schedule of fair value changes and activity for Level 3 | The following table present fair value changes and activity for Level 3 investment securities available for sale. Three Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Investment securities available for sale $ 1,981 $ — $ — $ (40 ) $ 83 $ 2,024 Nine Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Investment securities available for sale $ — $ — $ 2,379 $ (120 ) $ (235 ) $ 2,024 The following tables present fair value changes and activity for Level 3 loans held for sale and loans held for investment. Three Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 4,427 $ 2,393 $ — $ (686 ) $ (57 ) $ 6,077 Loans held for investment 4,475 789 — — 31 5,295 Three Months Ended September 30, 2018 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 1,823 $ — $ — $ — $ (30 ) $ 1,793 Loans held for investment 4,178 — — (2 ) (86 ) 4,090 Nine Months Ended September 30, 2019 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 2,691 $ 5,060 $ — $ (1,595 ) $ (79 ) $ 6,077 Loans held for investment 4,057 1,788 — (606 ) 56 5,295 Nine Months Ended September 30, 2018 Beginning balance Additions Transfers Payoffs/Sales Change in mark to market Ending balance (in thousands) Loans held for sale $ 1,336 $ 2,601 $ — $ (1,998 ) $ (146 ) $ 1,793 Loans held for investment 5,477 — — (1,116 ) (271 ) 4,090 The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance, net $ 8,624 $ 16,866 $ 10,284 $ 12,925 Total realized/unrealized gains 1,243 26,527 34,655 77,607 Settlements (5,831 ) (32,996 ) (40,903 ) (80,135 ) Ending balance, net $ 4,036 $ 10,397 $ 4,036 $ 10,397 |
Schedule of assets that had changes in their recorded fair value | The following tables present assets that had changes in their recorded fair value during the three and nine months ended September 30, 2019 and 2018 and assets held at the end of the respective reporting period. At or for the Three Months Ended September 30, 2019 (in thousands) Fair Value of Assets Held at September 30, 2019 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 266 $ — $ — $ 266 $ (2 ) Total $ 266 $ — $ — $ 266 $ (2 ) At or for the Three Months Ended September 30, 2018 (in thousands) Fair Value of Assets Held at September 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 1,213 $ — $ — 1,213 $ (68 ) Total $ 1,213 $ — $ — $ 1,213 $ (68 ) At or for the Nine Months Ended September 30, 2019 (in thousands) Fair Value of Assets Held at September 30, 2019 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 266 $ — $ — $ 266 $ (2 ) Total $ 266 $ — $ — $ 266 $ (2 ) At or for the Nine Months Ended September 30, 2018 (in thousands) Fair Value of Assets Held at September 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Loans held for investment (1) $ 1,213 $ — $ — $ 1,213 $ (212 ) Total $ 1,213 $ — $ — $ 1,213 $ (212 ) (1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. |
Schedule of the fair value hierarchy | 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 September 30, 2019 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 74,788 $ 74,788 $ 74,788 $ — $ — Investment securities held to maturity 4,397 4,513 — 4,513 — Loans held for investment 5,133,813 5,285,639 — — 5,285,639 Loans held for sale – multifamily and other 85,240 85,240 — 85,240 — Mortgage servicing rights – multifamily 28,801 31,903 — — 31,903 Federal Home Loan Bank stock 8,764 8,764 — 8,764 — Liabilities: Time deposits $ 2,135,869 $ 2,146,696 $ — $ 2,146,696 $ — Federal Home Loan Bank advances 5,590 7,013 — 7,013 — Long-term debt 125,603 115,447 — 115,447 — At December 31, 2018 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 57,982 $ 57,982 $ 57,982 $ — $ — Investment securities held to maturity 71,285 70,546 — 70,546 — Loans held for investment 5,071,314 5,099,960 — — 5,099,960 Loans held for sale – multifamily and other 25,139 25,139 — 25,139 — Mortgage servicing rights – multifamily 28,326 31,168 — — 31,168 Federal Home Loan Bank stock 45,497 45,497 — 45,497 — Liabilities: Time deposits $ 1,579,806 $ 1,575,139 $ — $ 1,575,139 $ — Federal Home Loan Bank advances 932,590 935,021 — 935,021 — Federal funds purchased and securities sold under agreements to repurchase 19,000 19,021 19,021 — — Long-term debt 125,462 112,475 — 112,475 — |
EARNINGS PER SHARE - (Tables)
EARNINGS PER SHARE - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table summarizes the calculation of earnings per share. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2019 2018 2019 2018 EPS numerator: Income from continuing operations $ 13,665 $ 8,089 $ 27,615 $ 14,014 Undistributed stock dividends share repurchase (223 ) — (505 ) — Allocated undistributed earnings in share repurchase (101 ) — (128 ) — Income from continuing operations available to common shareholders 13,341 8,089 26,982 14,014 Income (loss) from discontinued operations 162 3,746 (21,091 ) 10,786 Net income available to common shareholders $ 13,503 $ 11,835 $ 5,891 $ 24,800 EPS denominator: Weighted average shares: Basic weighted-average number of common shares outstanding 24,419,793 26,985,425 26,020,172 26,963,260 Dilutive effect of outstanding common stock equivalents (1) 206,145 196,263 184,242 202,412 Diluted weighted-average number of common stock outstanding 24,625,938 27,181,688 26,204,414 27,165,672 Basic earnings per share: Income from continuing operations $ 0.55 $ 0.30 $ 1.04 $ 0.52 Income (loss) from discontinued operations 0.01 0.14 (0.81 ) 0.40 Basic earnings per share $ 0.55 $ 0.44 $ 0.23 $ 0.92 Diluted earnings per share: Income from continuing operations $ 0.54 $ 0.30 $ 1.03 $ 0.52 Income (loss) from discontinued operations 0.01 0.14 (0.80 ) 0.40 Diluted earnings per share $ 0.55 $ 0.44 $ 0.22 $ 0.91 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the three and nine months ended September 30, 2019 and 2018 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 690 at September 30, 2019 and zero at September 30, 2018 |
LEASES - (Tables)
LEASES - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense were as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Operating lease cost $ 3,464 $ 11,180 Finance lease cost: Amortization of right-of-use assets 442 1,601 Interest on lease liabilities 81 262 Short-term lease 10 16 Variable lease cost 1,132 4,934 Sublease income (1,686 ) (2,515 ) Total lease cost $ 3,443 $ 15,478 |
Schedule of Lease Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,184 $ 12,916 Operating cash flows from finance leases 81 262 Financing cash flows from finance leases 322 1,375 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,059 $ (5,306 ) Finance leases 446 (570 ) |
Schedule of Lease Assets and Liabilities | Supplemental balance sheet information related to leases was as follows. (in thousands, except lease term and discount rate) September 30, 2019 Operating lease right-of-use assets $ 92,840 Operating lease liabilities 110,727 Finance lease right-of-use assets $ 9,003 Finance lease liabilities 9,345 Weighted Average Remaining lease term in years Operating leases 11.89 Finance leases 14.63 Weighted Average Discount Rate Operating leases 3.48 % Finance leases 3.56 % |
Schedule of Finance Lease Liability Maturities | Maturities of lease liabilities were as follows. Operating Leases Finance Leases Year ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 4,363 $ 497 2020 16,496 1,767 2021 15,346 1,465 2022 13,331 590 2023 10,994 474 2024 9,451 400 Thereafter 69,653 7,238 Total lease payments 139,634 12,431 Less imputed interest 28,907 3,086 Total $ 110,727 $ 9,345 |
Schedule of Operating Lease Liability Maturities | Maturities of lease liabilities were as follows. Operating Leases Finance Leases Year ended December 31, 2019 (excluding the nine months ended September 30, 2019) $ 4,363 $ 497 2020 16,496 1,767 2021 15,346 1,465 2022 13,331 590 2023 10,994 474 2024 9,451 400 Thereafter 69,653 7,238 Total lease payments 139,634 12,431 Less imputed interest 28,907 3,086 Total $ 110,727 $ 9,345 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental payments, prior to the adoption of the new lease guidance, for all non-cancelable leases were as follows at December 31, 2018. (in thousands) At December 31, 2018 2019 $ 22,770 2020 20,671 2021 18,825 2022 16,418 2023 13,274 2024 and thereafter 40,717 Total minimum payments $ 132,675 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [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. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Beginning balance $ 2,707 $ (19,722 ) $ (15,439 ) $ (7,122 ) Cumulative effect of adoption of new accounting standards (1) — — (2,080 ) — Other comprehensive income (loss) before reclassifications 5,273 (4,399 ) 25,412 (16,811 ) Amounts reclassified from accumulated other comprehensive income (loss) 15 4 102 (184 ) Net current-period other comprehensive income (loss) 5,288 (4,395 ) 25,514 (16,995 ) Ending balance $ 7,995 $ (24,117 ) $ 7,995 $ (24,117 ) (1) Reflects the January 1, 2019 adoption of ASU 2018-02 and ASU 2017-12. For additional information see Note 1, Summary of Significant Accounting Policies . |
Reclassification out of accumulated other comprehensive income (loss) | The following table shows the impacted 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) Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 (Loss) Gain on sale of investment securities available for sale $ (19 ) $ (4 ) $ (129 ) $ 234 Income tax (benefit) expense (4 ) — (27 ) 50 Total, net of tax $ (15 ) $ (4 ) $ (102 ) $ 184 |
RESTRUCTURING - (Tables)
RESTRUCTURING - (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring reserve rollforward | The following tables summarize the restructuring charges recognized during the three and nine months ended September 30, 2019 and 2018 and the Company's net remaining liability balance at September 30, 2019 and 2018 for both continuing and discontinued operations. 2019 2018 At and for the three months ended September 30 Facility-related costs Personnel-related costs Other costs Total Facility-related costs Personnel- related costs Other costs Total (in thousands) Beginning balance $ 1,423 $ 562 $ 22 $ 2,007 $ 4,209 $ 439 $ — $ 4,648 Restructuring charges 6 168 — 174 456 15 — 471 Costs paid or otherwise settled (173 ) (480 ) — (653 ) (1,409 ) (400 ) — (1,809 ) Ending balance $ 1,256 $ 250 $ 22 $ 1,528 $ 3,256 $ 54 $ — $ 3,310 2019 2018 At and for the nine months ended September 30 Facility-related costs Personnel-related costs Other costs Total Facility-related costs Personnel- related costs Other costs Total (in thousands) Beginning balance $ 1,604 $ — $ — $ 1,604 $ 1,386 $ — $ — $ 1,386 Restructuring charges 200 1,168 147 1,515 6,619 454 — 7,073 Costs paid or otherwise settled (548 ) (918 ) (125 ) (1,591 ) (4,749 ) (400 ) — (5,149 ) Ending balance $ 1,256 $ 250 $ 22 $ 1,528 $ 3,256 $ 54 $ — $ 3,310 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2020 | Jul. 11, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 26, 2019 | Mar. 31, 2019 | Mar. 29, 2019 | Mar. 28, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 25,000 | $ 75,000 | |||||||
Common stock repurchased price (in dollars per share) | $ 31.16 | ||||||||
Common stock repurchased (in shares) | 1,700,000 | 2,656,001 | |||||||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Equity reclassification due to stock repurchase | $ 0 | $ 52,735 | |||||||
Single family [Member] | Agency debentures [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Mortgage servicing rights, unpaid principal balance, sold | $ 14,260,000 | $ 14,260,000 | |||||||
Percentage of loan portfolio sold | 71.00% | ||||||||
Minimum [Member] | Accounting Standards Update 2016-13 [Member] | Forecast [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Expected increase to allowance for credit losses due to ASU 2016-03 adoption, percent | 0.00% | ||||||||
Maximum [Member] | Accounting Standards Update 2016-13 [Member] | Forecast [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Expected increase to allowance for credit losses due to ASU 2016-03 adoption, percent | 10.00% |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ in Thousands | Jun. 24, 2019branch | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 29, 2019USD ($)sale_of_right | Dec. 31, 2018 |
Agency debentures [Member] | Single family [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Mortgage servicing rights, unpaid principle balance, sold, number of sales | sale_of_right | 2 | ||||
Mortgage servicing rights, unpaid principal balance, sold | $ 14,260,000 | $ 14,260,000 | |||
Percentage of loan portfolio sold | 71.00% | ||||
Increase in income during period from discontinued operations before income taxes | $ (941) | ||||
HLC Based Mortgage Banking Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Home loan centers sold | branch | 47 |
DISCONTINUED OPERATIONS - Net G
DISCONTINUED OPERATIONS - Net Gain on Disposal of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from asset sales | $ 174,333 | $ 0 | |
Net gain (loss) on disposal | $ 1,260 | (21,760) | |
Discontinued Operations, Disposed of by Sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from asset sales | 0 | 186,612 | |
Book value of asset sales | (4) | 180,978 | |
Gain on assets sold | 4 | 5,634 | |
Transaction cost (recovery) expenses | (386) | 8,791 | |
Compensation expense related to the transactions | 596 | 4,388 | |
Facility and IT related cost (recovery) expenses | (1,466) | 14,215 | |
Total cost (recovery) expenses | (1,256) | 27,394 | |
Net gain (loss) on disposal | $ 1,260 | $ (21,760) |
DISCONTINUED OPERATIONS - Major
DISCONTINUED OPERATIONS - Major Classes of Assets and Liabilities Related to Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Assets of discontinued operations | $ 82,911 | $ 477,034 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Liabilities of discontinued operations | 5,075 | 167,121 |
Discontinued Operations, Held-for-sale [Member] | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Loans held for sale, at fair value | 71,213 | 269,683 |
Mortgage serving rights | 0 | 177,121 |
Premises and equipment, net | 0 | 6,689 |
Other assets | 11,698 | 23,541 |
Assets of discontinued operations | 82,911 | 477,034 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Deposits | 0 | 162,850 |
Accrued expenses and other liabilities | 5,075 | 4,271 |
Liabilities of discontinued operations | 5,075 | 167,121 |
Derivative assets included in other assets | $ 1,200 | $ 15,500 |
DISCONTINUED OPERATIONS - State
DISCONTINUED OPERATIONS - Statements of Operations of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) before income taxes | $ 190 | $ 4,561 | $ (24,928) | $ 13,651 |
Income tax expense (benefit) | 28 | 815 | (3,837) | 2,865 |
Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net interest income | 842 | 3,784 | 5,604 | 10,054 |
Noninterest income | 1,604 | 47,458 | 64,332 | 162,177 |
Noninterest expense | 2,256 | 46,681 | 94,864 | 158,580 |
Income (loss) before income taxes | 190 | 4,561 | (24,928) | 13,651 |
Income tax expense (benefit) | 28 | 815 | (3,837) | 2,865 |
Income (loss) from discontinued operations | $ 162 | $ 3,746 | $ (21,091) | $ 10,786 |
DISCONTINUED OPERATIONS - Cash
DISCONTINUED OPERATIONS - Cash Flows for Discontinued Operations (Details) - Discontinued Operations, Held-for-sale [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net cash provided by operating activities | $ 196,712 | $ 179,273 |
Net cash provided by investing activities | $ 177,291 | $ 214,488 |
INVESTMENT SECURITIES - Unreali
INVESTMENT SECURITIES - Unrealized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
AVAILABLE FOR SALE | |||
Amortized cost | $ 852,219 | $ 873,438 | |
Gross unrealized gains | 14,515 | 2,022 | |
Gross unrealized losses | (4,395) | (23,492) | |
Fair value | 862,339 | 851,968 | |
HELD TO MATURITY (1) | |||
Amortized cost | 4,397 | 71,285 | |
Gross unrealized gains | 116 | 230 | |
Gross unrealized losses | 0 | (969) | |
Fair value | 4,513 | 70,546 | |
Residential mortgage-backed securities [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 111,221 | 112,852 | |
Gross unrealized gains | 149 | 19 | |
Gross unrealized losses | (1,789) | (4,910) | |
Fair value | 109,581 | 107,961 | |
HELD TO MATURITY (1) | |||
Amortized cost | 11,071 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | (274) | ||
Fair value | 10,797 | ||
Commercial mortgage-backed securities [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 29,219 | 34,892 | |
Gross unrealized gains | 624 | 109 | |
Gross unrealized losses | (7) | (487) | |
Fair value | 29,836 | 34,514 | |
HELD TO MATURITY (1) | |||
Amortized cost | 17,307 | ||
Gross unrealized gains | 30 | ||
Gross unrealized losses | (311) | ||
Fair value | 17,026 | ||
Residential collateralized mortgage obligations [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 187,651 | 171,412 | |
Gross unrealized gains | 1,269 | 221 | |
Gross unrealized losses | (931) | (4,889) | |
Fair value | 187,989 | 166,744 | |
Commercial collateralized mortgage obligations [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 109,116 | 118,555 | |
Gross unrealized gains | 1,072 | 140 | |
Gross unrealized losses | (645) | (2,021) | |
Fair value | 109,543 | 116,674 | |
Municipal bonds [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 369,988 | 393,463 | |
Gross unrealized gains | 11,078 | 1,526 | |
Gross unrealized losses | (972) | (9,334) | |
Fair value | 380,094 | 385,655 | |
HELD TO MATURITY (1) | |||
Amortized cost | 4,397 | 27,191 | |
Gross unrealized gains | 116 | 190 | |
Gross unrealized losses | 0 | (319) | |
Fair value | 4,513 | 27,062 | |
Corporate debt securities [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 18,507 | 21,177 | |
Gross unrealized gains | 311 | 1 | |
Gross unrealized losses | (50) | (1,183) | |
Fair value | 18,768 | 19,995 | |
HELD TO MATURITY (1) | |||
Amortized cost | 92 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | 0 | ||
Fair value | 92 | ||
US Treasury securities [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 1,296 | 11,211 | |
Gross unrealized gains | 12 | 6 | |
Gross unrealized losses | 0 | (317) | |
Fair value | 1,308 | 10,900 | |
Agency debentures [Member] | |||
AVAILABLE FOR SALE | |||
Amortized cost | 25,221 | 9,876 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (1) | (351) | |
Fair value | $ 25,220 | 9,525 | |
Collateralized mortgage obligations [Member] | |||
HELD TO MATURITY (1) | |||
Amortized cost | 15,624 | ||
Gross unrealized gains | 10 | ||
Gross unrealized losses | (65) | ||
Fair value | $ 15,569 | ||
Accounting Standards Update 2017-12 [Member] | |||
AVAILABLE FOR SALE | |||
Fair value | $ 66,200 | ||
HELD TO MATURITY (1) | |||
Amortized cost | $ (66,200) |
INVESTMENT SECURITIES - Continu
INVESTMENT SECURITIES - Continuous Unrealized Loss on Investment (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | $ (1,005,000) | $ (1,902,000) |
Less than 12 months, Fair value | 141,542,000 | 138,019,000 |
Twelve months or more, Gross unrealized losses | (3,390,000) | (21,590,000) |
Twelve months or more, Fair value | 212,867,000 | 560,613,000 |
Total, Gross unrealized losses | (4,395,000) | (23,492,000) |
Total, Fair value | 354,409,000 | 698,632,000 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (222,000) | |
Less than 12 months, Fair value | 22,921,000 | |
Twelve months or more, Gross unrealized losses | (747,000) | |
Twelve months or more, Fair value | 28,726,000 | |
Total, Gross unrealized losses | 0 | (969,000) |
Total, Fair value | 51,647,000 | |
Residential mortgage-backed securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (338,000) | (34,000) |
Less than 12 months, Fair value | 18,888,000 | 1,269,000 |
Twelve months or more, Gross unrealized losses | (1,451,000) | (4,876,000) |
Twelve months or more, Fair value | 80,120,000 | 104,822,000 |
Total, Gross unrealized losses | (1,789,000) | (4,910,000) |
Total, Fair value | 99,008,000 | 106,091,000 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (31,000) | |
Less than 12 months, Fair value | 2,314,000 | |
Twelve months or more, Gross unrealized losses | (243,000) | |
Twelve months or more, Fair value | 6,197,000 | |
Total, Gross unrealized losses | (274,000) | |
Total, Fair value | 8,511,000 | |
Commercial mortgage-backed securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (2,000) | 0 |
Less than 12 months, Fair value | 2,929,000 | 0 |
Twelve months or more, Gross unrealized losses | (5,000) | (487,000) |
Twelve months or more, Fair value | 2,509,000 | 18,938,000 |
Total, Gross unrealized losses | (7,000) | (487,000) |
Total, Fair value | 5,438,000 | 18,938,000 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (24,000) | |
Less than 12 months, Fair value | 2,800,000 | |
Twelve months or more, Gross unrealized losses | (287,000) | |
Twelve months or more, Fair value | 11,256,000 | |
Total, Gross unrealized losses | (311,000) | |
Total, Fair value | 14,056,000 | |
Residential collateralized mortgage obligations [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (277,000) | (131,000) |
Less than 12 months, Fair value | 44,854,000 | 24,085,000 |
Twelve months or more, Gross unrealized losses | (654,000) | (4,758,000) |
Twelve months or more, Fair value | 31,432,000 | 128,899,000 |
Total, Gross unrealized losses | (931,000) | (4,889,000) |
Total, Fair value | 76,286,000 | 152,984,000 |
Commercial collateralized mortgage obligations [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (195,000) | (350,000) |
Less than 12 months, Fair value | 22,845,000 | 22,051,000 |
Twelve months or more, Gross unrealized losses | (450,000) | (1,671,000) |
Twelve months or more, Fair value | 42,873,000 | 73,429,000 |
Total, Gross unrealized losses | (645,000) | (2,021,000) |
Total, Fair value | 65,718,000 | 95,480,000 |
Municipal bonds [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (192,000) | (1,283,000) |
Less than 12 months, Fair value | 26,805,000 | 85,057,000 |
Twelve months or more, Gross unrealized losses | (780,000) | (8,051,000) |
Twelve months or more, Fair value | 54,189,000 | 201,189,000 |
Total, Gross unrealized losses | (972,000) | (9,334,000) |
Total, Fair value | 80,994,000 | 286,246,000 |
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (102,000) | |
Less than 12 months, Fair value | 7,210,000 | |
Twelve months or more, Gross unrealized losses | (217,000) | |
Twelve months or more, Fair value | 11,273,000 | |
Total, Gross unrealized losses | (319,000) | |
Total, Fair value | 18,483,000 | |
Corporate debt securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | 0 | (104,000) |
Less than 12 months, Fair value | 0 | 5,557,000 |
Twelve months or more, Gross unrealized losses | (50,000) | (1,079,000) |
Twelve months or more, Fair value | 1,744,000 | 14,213,000 |
Total, Gross unrealized losses | (50,000) | (1,183,000) |
Total, Fair value | 1,744,000 | 19,770,000 |
US Treasury securities [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | 0 | 0 |
Less than 12 months, Fair value | 0 | 0 |
Twelve months or more, Gross unrealized losses | 0 | (317,000) |
Twelve months or more, Fair value | 0 | 9,598,000 |
Total, Gross unrealized losses | 0 | (317,000) |
Total, Fair value | 0 | 9,598,000 |
Agency debentures [Member] | ||
AVAILABLE FOR SALE | ||
Less than 12 months, Gross unrealized losses | (1,000) | 0 |
Less than 12 months, Fair value | 25,221,000 | 0 |
Twelve months or more, Gross unrealized losses | 0 | (351,000) |
Twelve months or more, Fair value | 0 | 9,525,000 |
Total, Gross unrealized losses | (1,000) | (351,000) |
Total, Fair value | $ 25,221,000 | 9,525,000 |
Collateralized mortgage obligations [Member] | ||
HELD TO MATURITY | ||
Less than 12 months, Gross unrealized losses | (65,000) | |
Less than 12 months, Fair value | 10,597,000 | |
Twelve months or more, Gross unrealized losses | 0 | |
Twelve months or more, Fair value | 0 | |
Total, Gross unrealized losses | (65,000) | |
Total, Fair value | $ 10,597,000 |
INVESTMENT SECURITIES - Weighte
INVESTMENT SECURITIES - Weighted Average Yield (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 2,324 | $ 5,670 |
Weighted Average Yield, due within one year | 3.08% | 2.12% |
Due in one through five years, Fair value | $ 48,018 | $ 54,308 |
Weighted Average Yield, due after one year through five years | 2.37% | 2.24% |
Due after five years through ten years, Fair value | $ 69,996 | $ 106,915 |
Weighted Average Yield, due after five years through ten years | 2.87% | 2.81% |
Due after 10 years, Fair value | $ 742,001 | $ 685,075 |
Weighted Average Yield, due after ten years | 3.01% | 2.90% |
Total, Fair value | $ 862,339 | $ 851,968 |
Weighted Average Yield, Total | 2.96% | 2.84% |
HELD TO MATURITY (1) | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 1,794 | $ 21,142 |
Weighted Average Yield, due after one year through five years | 2.90% | 2.91% |
Due after five years through ten years, Fair value | $ 2,719 | $ 10,530 |
Weighted Average Yield, due after five years through ten years | 2.08% | 2.45% |
Due after 10 years, Fair value | $ 0 | $ 38,874 |
Weighted Average Yield, due after ten years | 0.00% | 3.07% |
Total, Fair value | $ 4,513 | $ 70,546 |
Weighted Average Yield, Total | 2.40% | 2.93% |
Residential mortgage-backed securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 4 | $ 0 |
Weighted Average Yield, due after one year through five years | 1.33% | 0.00% |
Due after five years through ten years, Fair value | $ 5,654 | $ 7,094 |
Weighted Average Yield, due after five years through ten years | 1.67% | 1.62% |
Due after 10 years, Fair value | $ 103,923 | $ 100,867 |
Weighted Average Yield, due after ten years | 2.13% | 2.05% |
Total, Fair value | $ 109,581 | $ 107,961 |
Weighted Average Yield, Total | 2.11% | 2.03% |
HELD TO MATURITY (1) | ||
Due within one year, Fair value | $ 0 | |
Weighted Average Yield, due within one year | 0.00% | |
Due in one through five years, Fair value | $ 0 | |
Weighted Average Yield, due after one year through five years | 0.00% | |
Due after five years through ten years, Fair value | $ 0 | |
Weighted Average Yield, due after five years through ten years | 0.00% | |
Due after 10 years, Fair value | $ 10,797 | |
Weighted Average Yield, due after ten years | 2.82% | |
Total, Fair value | $ 10,797 | |
Weighted Average Yield, Total | 2.82% | |
Commercial mortgage-backed securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 7,603 | $ 14,175 |
Weighted Average Yield, due after one year through five years | 2.74% | 2.20% |
Due after five years through ten years, Fair value | $ 12,125 | $ 16,737 |
Weighted Average Yield, due after five years through ten years | 2.76% | 2.99% |
Due after 10 years, Fair value | $ 10,108 | $ 3,602 |
Weighted Average Yield, due after ten years | 2.42% | 2.90% |
Total, Fair value | $ 29,836 | $ 34,514 |
Weighted Average Yield, Total | 2.64% | 2.66% |
HELD TO MATURITY (1) | ||
Due within one year, Fair value | $ 0 | |
Weighted Average Yield, due within one year | 0.00% | |
Due in one through five years, Fair value | $ 12,147 | |
Weighted Average Yield, due after one year through five years | 2.51% | |
Due after five years through ten years, Fair value | $ 4,879 | |
Weighted Average Yield, due after five years through ten years | 2.64% | |
Due after 10 years, Fair value | $ 0 | |
Weighted Average Yield, due after ten years | 0.00% | |
Total, Fair value | $ 17,026 | |
Weighted Average Yield, Total | 2.55% | |
Residential collateralized mortgage obligations [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after one year through five years | 0.00% | 0.00% |
Due after five years through ten years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after five years through ten years | 0.00% | 0.00% |
Due after 10 years, Fair value | $ 187,989 | $ 166,744 |
Weighted Average Yield, due after ten years | 2.45% | 2.43% |
Total, Fair value | $ 187,989 | $ 166,744 |
Weighted Average Yield, Total | 2.45% | 2.43% |
Commercial collateralized mortgage obligations [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 7,607 | $ 9,008 |
Weighted Average Yield, due after one year through five years | 2.34% | 2.42% |
Due after five years through ten years, Fair value | $ 28,058 | $ 29,292 |
Weighted Average Yield, due after five years through ten years | 2.79% | 2.88% |
Due after 10 years, Fair value | $ 73,878 | $ 78,374 |
Weighted Average Yield, due after ten years | 2.47% | 2.42% |
Total, Fair value | $ 109,543 | $ 116,674 |
Weighted Average Yield, Total | 2.54% | 2.53% |
Municipal bonds [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 5,670 |
Weighted Average Yield, due within one year | 0.00% | 2.12% |
Due in one through five years, Fair value | $ 0 | $ 16,276 |
Weighted Average Yield, due after one year through five years | 0.00% | 2.24% |
Due after five years through ten years, Fair value | $ 14,081 | $ 30,659 |
Weighted Average Yield, due after five years through ten years | 3.01% | 2.89% |
Due after 10 years, Fair value | $ 366,013 | $ 333,050 |
Weighted Average Yield, due after ten years | 3.69% | 3.51% |
Total, Fair value | $ 380,094 | $ 385,655 |
Weighted Average Yield, Total | 3.67% | 3.39% |
HELD TO MATURITY (1) | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 1,794 | $ 1,790 |
Weighted Average Yield, due after one year through five years | 2.90% | 2.85% |
Due after five years through ten years, Fair value | $ 2,719 | $ 5,651 |
Weighted Average Yield, due after five years through ten years | 2.08% | 2.29% |
Due after 10 years, Fair value | $ 0 | $ 19,621 |
Weighted Average Yield, due after ten years | 0.00% | 3.24% |
Total, Fair value | $ 4,513 | $ 27,062 |
Weighted Average Yield, Total | 2.40% | 3.01% |
Corporate debt securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 1,016 | $ 0 |
Weighted Average Yield, due within one year | 3.41% | 0.00% |
Due in one through five years, Fair value | $ 7,584 | $ 3,949 |
Weighted Average Yield, due after one year through five years | 3.63% | 2.96% |
Due after five years through ten years, Fair value | $ 10,078 | $ 13,608 |
Weighted Average Yield, due after five years through ten years | 3.70% | 3.31% |
Due after 10 years, Fair value | $ 90 | $ 2,438 |
Weighted Average Yield, due after ten years | 6.13% | 3.65% |
Total, Fair value | $ 18,768 | $ 19,995 |
Weighted Average Yield, Total | 3.67% | 3.29% |
HELD TO MATURITY (1) | ||
Due within one year, Fair value | $ 0 | |
Weighted Average Yield, due within one year | 0.00% | |
Due in one through five years, Fair value | $ 0 | |
Weighted Average Yield, due after one year through five years | 0.00% | |
Due after five years through ten years, Fair value | $ 0 | |
Weighted Average Yield, due after five years through ten years | 0.00% | |
Due after 10 years, Fair value | $ 92 | |
Weighted Average Yield, due after ten years | 6.00% | |
Total, Fair value | $ 92 | |
Weighted Average Yield, Total | 6.00% | |
US Treasury securities [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 1,308 | $ 0 |
Weighted Average Yield, due within one year | 2.83% | 0.00% |
Due in one through five years, Fair value | $ 0 | $ 10,900 |
Weighted Average Yield, due after one year through five years | 0.00% | 1.87% |
Due after five years through ten years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after five years through ten years | 0.00% | 0.00% |
Due after 10 years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0.00% | 0.00% |
Total, Fair value | $ 1,308 | $ 10,900 |
Weighted Average Yield, Total | 2.83% | 1.87% |
Agency debentures [Member] | ||
AVAILABLE FOR SALE | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 25,220 | $ 0 |
Weighted Average Yield, due after one year through five years | 1.90% | 0.00% |
Due after five years through ten years, Fair value | $ 0 | $ 9,525 |
Weighted Average Yield, due after five years through ten years | 0.00% | 2.23% |
Due after 10 years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0.00% | 0.00% |
Total, Fair value | $ 25,220 | $ 9,525 |
Weighted Average Yield, Total | 1.90% | 2.23% |
Collateralized mortgage obligations [Member] | ||
HELD TO MATURITY (1) | ||
Due within one year, Fair value | $ 0 | |
Weighted Average Yield, due within one year | 0.00% | |
Due in one through five years, Fair value | $ 7,205 | |
Weighted Average Yield, due after one year through five years | 3.59% | |
Due after five years through ten years, Fair value | $ 0 | |
Weighted Average Yield, due after five years through ten years | 0.00% | |
Due after 10 years, Fair value | $ 8,364 | |
Weighted Average Yield, due after ten years | 2.94% | |
Total, Fair value | $ 15,569 | |
Weighted Average Yield, Total | 3.24% |
INVESTMENT SECURITIES - Realize
INVESTMENT SECURITIES - Realized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 25,190 | $ 16,233 | $ 144,602 | $ 38,465 |
Gross gains | 58 | 39 | 589 | 300 |
Gross losses | $ (76) | $ (43) | $ (717) | $ (66) |
INVESTMENT SECURITIES - Pledged
INVESTMENT SECURITIES - Pledged to Secure Borrowings And Public Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Home Loan Bank to secure borrowings | $ 0 | $ 63,179 |
Washington and California State to secure public deposits | 150,828 | 126,565 |
Securities pledged to secure derivatives in a liability position | 0 | 5,077 |
Other securities pledged | 4,516 | 5,147 |
Total securities pledged as collateral | $ 155,344 | $ 199,968 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Security pledged under repurchase agreement | $ 0 | $ 0 | $ 0 | ||
Tax exempt interest income on available-for-sale securities | $ 2,500,000 | $ 2,000,000 | $ 7,800,000 | $ 6,200,000 |
LOANS AND CREDIT QUALITY - Narr
LOANS AND CREDIT QUALITY - Narrative (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019USD ($)segment | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Number of portfolio segments | segment | 2 | ||
Allowance for unfunded commitments | $ 1.2 | $ 1.4 | $ 1.4 |
Washington | Residential Mortgage And Multifamily [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Percentage of loan portfolio | 11.50% | 13.10% | |
California | Residential Mortgage And Multifamily [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Percentage of loan portfolio | 10.60% | 10.20% | |
Federal Home Loan Bank Advances [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans pledged as collateral | $ 2,120 | $ 2,160 | |
Federal Reserve Bank Advances [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans pledged as collateral | $ 505 | $ 502.7 |
LOANS AND CREDIT QUALITY - Loan
LOANS AND CREDIT QUALITY - Loans Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans held for investment | ||
Total loans before fees and costs | $ 5,156,813 | $ 5,093,747 |
Net deferred loan fees and costs | 25,732 | 23,094 |
Total loans | 5,182,545 | 5,116,841 |
Allowance for loan losses | (43,437) | (41,470) |
Loans held for investment | 5,139,108 | 5,075,371 |
Fair value of loans held for investment | 5,295 | 4,057 |
Consumer loans [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 1,755,950 | 1,929,098 |
Consumer loans [Member] | Single family [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 1,188,159 | 1,358,175 |
Consumer loans [Member] | Home equity and other [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 567,791 | 570,923 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 794,863 | 701,928 |
Commercial loans [Member] | Multifamily [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 920,279 | 908,015 |
Commercial loans [Member] | Construction/land development [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 762,332 | 794,544 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 476,650 | 429,158 |
Commercial loans [Member] | Commercial business [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 446,739 | 331,004 |
Recurring [Member] | ||
Loans held for investment | ||
Fair value of loans held for investment | 5,295 | 4,057 |
Recurring [Member] | Level 3 [Member] | ||
Loans held for investment | ||
Fair value of loans held for investment | 5,295 | 4,057 |
Real Estate Sector [Member] | Commercial loans [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | 2,477,474 | 2,404,487 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||
Loans held for investment | ||
Total loans before fees and costs | $ 923,389 | $ 760,162 |
LOANS AND CREDIT QUALITY - Allo
LOANS AND CREDIT QUALITY - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 44,628 | $ 40,982 | $ 42,913 | $ 39,116 |
Provision for credit losses | 0 | 750 | 1,500 | 2,500 |
Recoveries, net of (charge-offs) | 6 | 122 | 221 | 238 |
Ending balance | $ 44,634 | $ 41,854 | $ 44,634 | $ 41,854 |
LOANS AND CREDIT QUALITY - Acti
LOANS AND CREDIT QUALITY - Activity in Allowance for Credit Losses by Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for credit losses by loan portfolio | ||||
Beginning balance | $ 44,628 | $ 40,982 | $ 42,913 | $ 39,116 |
Charge-offs | (68) | (160) | (209) | (1,055) |
Recoveries | 74 | 282 | 430 | 1,293 |
(Reversal of) Provision | 0 | 750 | 1,500 | 2,500 |
Ending balance | 44,634 | 41,854 | 44,634 | 41,854 |
Consumer loans [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 15,103 | 15,940 | 15,929 | 16,493 |
Charge-offs | (68) | (150) | (209) | (392) |
Recoveries | 60 | 104 | 355 | 609 |
(Reversal of) Provision | (390) | 159 | (1,370) | (657) |
Ending balance | 14,705 | 16,053 | 14,705 | 16,053 |
Consumer loans [Member] | Single family [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 7,540 | 8,594 | 8,217 | 9,412 |
Charge-offs | 0 | (43) | 0 | (43) |
Recoveries | 1 | 2 | 143 | 284 |
(Reversal of) Provision | (321) | (46) | (1,140) | (1,146) |
Ending balance | 7,220 | 8,507 | 7,220 | 8,507 |
Consumer loans [Member] | Home equity and other [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 7,563 | 7,346 | 7,712 | 7,081 |
Charge-offs | (68) | (107) | (209) | (349) |
Recoveries | 59 | 102 | 212 | 325 |
(Reversal of) Provision | (69) | 205 | (230) | 489 |
Ending balance | 7,485 | 7,546 | 7,485 | 7,546 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 6,151 | 4,764 | 5,496 | 4,755 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
(Reversal of) Provision | 330 | 249 | 985 | 258 |
Ending balance | 6,481 | 5,013 | 6,481 | 5,013 |
Commercial loans [Member] | Multifamily [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 7,047 | 5,017 | 5,754 | 3,895 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
(Reversal of) Provision | (357) | 608 | 936 | 1,730 |
Ending balance | 6,690 | 5,625 | 6,690 | 5,625 |
Commercial loans [Member] | Construction/land development [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 9,707 | 9,205 | 9,539 | 8,677 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 170 | 48 | 513 |
(Reversal of) Provision | 99 | (94) | 220 | 91 |
Ending balance | 9,807 | 9,281 | 9,807 | 9,281 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 3,462 | 3,032 | 3,282 | 2,960 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
(Reversal of) Provision | 139 | 111 | 319 | 183 |
Ending balance | 3,601 | 3,143 | 3,601 | 3,143 |
Commercial loans [Member] | Commercial business [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 3,158 | 3,024 | 2,913 | 2,336 |
Charge-offs | 0 | (10) | 0 | (663) |
Recoveries | 13 | 8 | 27 | 171 |
(Reversal of) Provision | 179 | (283) | 410 | 895 |
Ending balance | 3,350 | 2,739 | 3,350 | 2,739 |
Real Estate Sector [Member] | Commercial loans [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 22,905 | 18,986 | 20,789 | 17,327 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 170 | 48 | 513 |
(Reversal of) Provision | 72 | 763 | 2,141 | 2,079 |
Ending balance | 22,978 | 19,919 | 22,978 | 19,919 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 6,620 | 6,056 | 6,195 | 5,296 |
Charge-offs | 0 | (10) | 0 | (663) |
Recoveries | 13 | 8 | 27 | 171 |
(Reversal of) Provision | 318 | (172) | 729 | 1,078 |
Ending balance | $ 6,951 | $ 5,882 | $ 6,951 | $ 5,882 |
LOANS AND CREDIT QUALITY - Reco
LOANS AND CREDIT QUALITY - Recorded Investment in Loans by Impairment Methodology (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | $ 44,505 | $ 42,680 | ||||
Allowance: individually evaluated for impairment | 129 | 233 | ||||
Allowance for credit losses | 44,634 | $ 44,628 | 42,913 | $ 41,854 | $ 40,982 | $ 39,116 |
Loans: collectively evaluated for impairment | 5,078,637 | 5,016,606 | ||||
Loans: individually evaluated for impairment | 72,881 | 73,084 | ||||
Total | 5,151,518 | 5,089,690 | ||||
Fair value of loans held for investment | 5,295 | 4,057 | ||||
Consumer loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 14,584 | 15,822 | ||||
Allowance: individually evaluated for impairment | 121 | 107 | ||||
Allowance for credit losses | 14,705 | 15,103 | 15,929 | 16,053 | 15,940 | 16,493 |
Loans: collectively evaluated for impairment | 1,683,795 | 1,856,229 | ||||
Loans: individually evaluated for impairment | 66,860 | 68,812 | ||||
Total | 1,750,655 | 1,925,041 | ||||
Consumer loans [Member] | Single family [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 7,136 | 8,151 | ||||
Allowance: individually evaluated for impairment | 84 | 66 | ||||
Allowance for credit losses | 7,220 | 7,540 | 8,217 | 8,507 | 8,594 | 9,412 |
Loans: collectively evaluated for impairment | 1,117,056 | 1,286,556 | ||||
Loans: individually evaluated for impairment | 65,821 | 67,575 | ||||
Total | 1,182,877 | 1,354,131 | ||||
Consumer loans [Member] | Home equity and other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 7,448 | 7,671 | ||||
Allowance: individually evaluated for impairment | 37 | 41 | ||||
Allowance for credit losses | 7,485 | 7,563 | 7,712 | 7,546 | 7,346 | 7,081 |
Loans: collectively evaluated for impairment | 566,739 | 569,673 | ||||
Loans: individually evaluated for impairment | 1,039 | 1,237 | ||||
Total | 567,778 | 570,910 | ||||
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 6,481 | 5,496 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 6,481 | 6,151 | 5,496 | 5,013 | 4,764 | 4,755 |
Loans: collectively evaluated for impairment | 794,863 | 701,928 | ||||
Loans: individually evaluated for impairment | 0 | 0 | ||||
Total | 794,863 | 701,928 | ||||
Commercial loans [Member] | Multifamily [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 6,690 | 5,754 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 6,690 | 7,047 | 5,754 | 5,625 | 5,017 | 3,895 |
Loans: collectively evaluated for impairment | 920,279 | 907,523 | ||||
Loans: individually evaluated for impairment | 0 | 492 | ||||
Total | 920,279 | 908,015 | ||||
Commercial loans [Member] | Construction/land development [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 9,807 | 9,539 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 9,807 | 9,707 | 9,539 | 9,281 | 9,205 | 8,677 |
Loans: collectively evaluated for impairment | 760,977 | 793,818 | ||||
Loans: individually evaluated for impairment | 1,355 | 726 | ||||
Total | 762,332 | 794,544 | ||||
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 3,601 | 3,282 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 3,601 | 3,462 | 3,282 | 3,143 | 3,032 | 2,960 |
Loans: collectively evaluated for impairment | 474,349 | 427,938 | ||||
Loans: individually evaluated for impairment | 2,301 | 1,220 | ||||
Total | 476,650 | 429,158 | ||||
Commercial loans [Member] | Commercial business [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 3,342 | 2,787 | ||||
Allowance: individually evaluated for impairment | 8 | 126 | ||||
Allowance for credit losses | 3,350 | 3,158 | 2,913 | 2,739 | 3,024 | 2,336 |
Loans: collectively evaluated for impairment | 444,374 | 329,170 | ||||
Loans: individually evaluated for impairment | 2,365 | 1,834 | ||||
Total | 446,739 | 331,004 | ||||
Reported Value Measurement [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans: collectively evaluated for impairment | 5,078,637 | 5,016,606 | ||||
Loans: individually evaluated for impairment | 72,881 | 73,084 | ||||
Total | 5,156,813 | 5,093,747 | ||||
Fair value of loans held for investment | 5,133,813 | 5,071,314 | ||||
Estimate of Fair Value Measurement [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Fair value of loans held for investment | 5,285,639 | 5,099,960 | ||||
Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Fair value of loans held for investment | 5,285,639 | 5,099,960 | ||||
Recurring [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Fair value of loans held for investment | 5,295 | 4,057 | ||||
Recurring [Member] | Level 3 [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Fair value of loans held for investment | 5,295 | 4,057 | ||||
Recurring [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans: collectively evaluated for impairment | 0 | 0 | ||||
Loans: individually evaluated for impairment | 0 | 0 | ||||
Fair value of loans held for investment | 5,295 | 4,057 | ||||
Real Estate Sector [Member] | Commercial loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 22,978 | 20,789 | ||||
Allowance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for credit losses | 22,978 | 22,905 | 20,789 | 19,919 | 18,986 | 17,327 |
Loans: collectively evaluated for impairment | 2,476,119 | 2,403,269 | ||||
Loans: individually evaluated for impairment | 1,355 | 1,218 | ||||
Total | 2,477,474 | 2,404,487 | ||||
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance: collectively evaluated for impairment | 6,943 | 6,069 | ||||
Allowance: individually evaluated for impairment | 8 | 126 | ||||
Allowance for credit losses | 6,951 | $ 6,620 | 6,195 | $ 5,882 | $ 6,056 | $ 5,296 |
Loans: collectively evaluated for impairment | 918,723 | 757,108 | ||||
Loans: individually evaluated for impairment | 4,666 | 3,054 | ||||
Total | $ 923,389 | $ 760,162 |
LOANS AND CREDIT QUALITY - Impa
LOANS AND CREDIT QUALITY - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | $ 70,379 | $ 71,237 |
Recorded investment with related allowance recorded | 2,502 | 1,847 |
Total recorded investment | 72,881 | 73,084 |
Unpaid principal balance with no related allowance recorded | 71,563 | 73,113 |
Unpaid principal balance with related allowance recorded | 2,533 | 1,847 |
Total unpaid principal balance | 74,096 | 74,960 |
Related allowance | 129 | 233 |
Consumer loans [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 64,875 | 67,468 |
Recorded investment with related allowance recorded | 1,985 | 1,344 |
Total recorded investment | 66,860 | 68,812 |
Unpaid principal balance with no related allowance recorded | 65,339 | 68,265 |
Unpaid principal balance with related allowance recorded | 1,985 | 1,344 |
Total unpaid principal balance | 67,324 | 69,609 |
Related allowance | 121 | 107 |
Consumer loans [Member] | Single family [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 64,316 | 66,725 |
Recorded investment with related allowance recorded | 1,505 | 850 |
Total recorded investment | 65,821 | 67,575 |
Unpaid principal balance with no related allowance recorded | 64,754 | 67,496 |
Unpaid principal balance with related allowance recorded | 1,505 | 850 |
Total unpaid principal balance | 66,259 | 68,346 |
Related allowance | 84 | 66 |
Performing TDRs | 63,800 | 65,800 |
Consumer loans [Member] | Home equity and other [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 559 | 743 |
Recorded investment with related allowance recorded | 480 | 494 |
Total recorded investment | 1,039 | 1,237 |
Unpaid principal balance with no related allowance recorded | 585 | 769 |
Unpaid principal balance with related allowance recorded | 480 | 494 |
Total unpaid principal balance | 1,065 | 1,263 |
Related allowance | 37 | 41 |
Commercial loans [Member] | Multifamily [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 492 | |
Total recorded investment | 492 | |
Unpaid principal balance with no related allowance recorded | 492 | |
Total unpaid principal balance | 492 | |
Related allowance | 0 | |
Commercial loans [Member] | Construction/land development [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 1,355 | 726 |
Total recorded investment | 1,355 | 726 |
Unpaid principal balance with no related allowance recorded | 1,355 | 726 |
Total unpaid principal balance | 1,355 | 726 |
Related allowance | 0 | 0 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 2,301 | 1,220 |
Total recorded investment | 2,301 | 1,220 |
Unpaid principal balance with no related allowance recorded | 2,369 | 1,543 |
Total unpaid principal balance | 2,369 | 1,543 |
Related allowance | 0 | 0 |
Commercial loans [Member] | Commercial business [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 1,848 | 1,331 |
Recorded investment with related allowance recorded | 517 | 503 |
Total recorded investment | 2,365 | 1,834 |
Unpaid principal balance with no related allowance recorded | 2,500 | 2,087 |
Unpaid principal balance with related allowance recorded | 548 | 503 |
Total unpaid principal balance | 3,048 | 2,590 |
Related allowance | 8 | 126 |
Real Estate Sector [Member] | Commercial loans [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 1,355 | 1,218 |
Total recorded investment | 1,355 | 1,218 |
Unpaid principal balance with no related allowance recorded | 1,355 | 1,218 |
Total unpaid principal balance | 1,355 | 1,218 |
Related allowance | 0 | 0 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||
Impaired loans by loan portfolio segment and loan class [Abstract] | ||
Recorded investment with no related allowance recorded | 4,149 | 2,551 |
Recorded investment with related allowance recorded | 517 | 503 |
Total recorded investment | 4,666 | 3,054 |
Unpaid principal balance with no related allowance recorded | 4,869 | 3,630 |
Unpaid principal balance with related allowance recorded | 548 | 503 |
Total unpaid principal balance | 5,417 | 4,133 |
Related allowance | $ 8 | $ 126 |
LOANS AND CREDIT QUALITY - Aver
LOANS AND CREDIT QUALITY - Average Recorded Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | $ 73,363 | $ 72,472 | $ 76,176 | $ 76,478 |
Interest Income Recognized | 685 | 732 | 2,289 | 2,224 |
Consumer loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 68,858 | 68,010 | 69,293 | 70,651 |
Interest Income Recognized | 676 | 673 | 2,134 | 2,021 |
Consumer loans [Member] | Single family [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 67,814 | 66,754 | 68,181 | 69,384 |
Interest Income Recognized | 662 | 653 | 2,088 | 1,963 |
Consumer loans [Member] | Home equity and other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 1,044 | 1,256 | 1,112 | 1,267 |
Interest Income Recognized | 14 | 20 | 46 | 58 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 3 | 0 | ||
Interest Income Recognized | 0 | 0 | ||
Commercial loans [Member] | Multifamily [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 242 | 640 | 366 | 722 |
Interest Income Recognized | 0 | 6 | 14 | 18 |
Commercial loans [Member] | Construction/land development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 677 | 677 | 1,689 | 600 |
Interest Income Recognized | 0 | 6 | 0 | 17 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 1,744 | 1,250 | 2,936 | 2,085 |
Interest Income Recognized | 0 | 19 | 112 | 74 |
Commercial loans [Member] | Commercial business [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 1,842 | 1,895 | 1,889 | 2,420 |
Interest Income Recognized | 9 | 28 | 29 | 94 |
Real Estate Sector [Member] | Commercial loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 919 | 1,317 | 2,058 | 1,322 |
Interest Income Recognized | 0 | 12 | 14 | 35 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average recorded investment | 3,586 | 3,145 | 4,825 | 4,505 |
Interest Income Recognized | $ 9 | $ 47 | $ 141 | $ 168 |
LOANS AND CREDIT QUALITY - Lo_2
LOANS AND CREDIT QUALITY - Loan Grades by Loan Portfolio (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | $ 5,156,813,000 | $ 5,093,747,000 |
Fair value of loans held for investment | 5,295,000 | 4,057,000 |
Recurring [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Fair value of loans held for investment | 5,295,000 | 4,057,000 |
Level 3 [Member] | Recurring [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Fair value of loans held for investment | 5,295,000 | 4,057,000 |
Consumer loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,755,950,000 | 1,929,098,000 |
Consumer loans [Member] | Single family [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,188,159,000 | 1,358,175,000 |
Consumer loans [Member] | Home equity and other [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 567,791,000 | 570,923,000 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 794,863,000 | 701,928,000 |
Commercial loans [Member] | Multifamily [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 920,279,000 | 908,015,000 |
Commercial loans [Member] | Construction/land development [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 762,332,000 | 794,544,000 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 476,650,000 | 429,158,000 |
Commercial loans [Member] | Commercial business [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 446,739,000 | 331,004,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 5,156,813,000 | 5,093,747,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 4,999,174,000 | 4,964,980,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 80,536,000 | 66,819,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 60,186,000 | 42,800,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 16,917,000 | 19,148,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Doubtful [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Loss [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,755,950,000 | 1,929,098,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,737,907,000 | 1,907,395,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,777,000 | 2,977,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 8,804,000 | 9,285,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 6,462,000 | 9,441,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Single family [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,188,159,000 | 1,358,175,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Single family [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,172,275,000 | 1,338,025,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Single family [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,417,000 | 2,882,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Single family [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 7,992,000 | 8,775,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Single family [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 5,475,000 | 8,493,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Home equity and other [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 567,791,000 | 570,923,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Home equity and other [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 565,632,000 | 569,370,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Home equity and other [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 360,000 | 95,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Home equity and other [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 812,000 | 510,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Consumer loans [Member] | Home equity and other [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 987,000 | 948,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 794,863,000 | 701,928,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 791,964,000 | 695,077,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,899,000 | 1,426,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 0 | 5,425,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Multifamily [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 920,279,000 | 908,015,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Multifamily [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 915,452,000 | 903,897,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Multifamily [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 4,827,000 | 3,626,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Multifamily [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 0 | 492,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Multifamily [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 0 | 0 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Construction/land development [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 762,332,000 | 794,544,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Construction/land development [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 727,673,000 | 767,113,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Construction/land development [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 14,208,000 | 21,531,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Construction/land development [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 19,096,000 | 1,084,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Construction/land development [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,355,000 | 4,816,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 476,650,000 | 429,158,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Owner occupied commercial real estate [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 435,811,000 | 392,273,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Owner occupied commercial real estate [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 22,647,000 | 22,928,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Owner occupied commercial real estate [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 12,685,000 | 11,087,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Owner occupied commercial real estate [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 5,507,000 | 2,870,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Commercial business [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 446,739,000 | 331,004,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Commercial business [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 390,367,000 | 299,225,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Commercial business [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 33,178,000 | 14,331,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Commercial business [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 19,601,000 | 15,427,000 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Commercial business [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 3,593,000 | 2,021,000 |
Real Estate Sector [Member] | Commercial loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,477,474,000 | 2,404,487,000 |
Real Estate Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,477,474,000 | 2,404,487,000 |
Real Estate Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 2,435,089,000 | 2,366,087,000 |
Real Estate Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 21,934,000 | 26,583,000 |
Real Estate Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 19,096,000 | 7,001,000 |
Real Estate Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 1,355,000 | 4,816,000 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 923,389,000 | 760,162,000 |
Commercial and Industrial Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 923,389,000 | 760,162,000 |
Commercial and Industrial Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Pass [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 826,178,000 | 691,498,000 |
Commercial and Industrial Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Watch [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 55,825,000 | 37,259,000 |
Commercial and Industrial Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Special mention [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | 32,286,000 | 26,514,000 |
Commercial and Industrial Sector [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial loans [Member] | Substandard [Member] | ||
Designated Loan Grades by Loan Portfolio Segment and Loan Class [Abstract] | ||
Total loans | $ 9,100,000 | $ 4,891,000 |
LOANS AND CREDIT QUALITY - Agin
LOANS AND CREDIT QUALITY - Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 45,104 | $ 64,358 |
Current | 5,111,709 | 5,029,389 |
Total loans | 5,156,813 | 5,093,747 |
90-days or more past due and still accruing | 21,590 | 39,116 |
Fair value of loans held for investment | 5,295 | 4,057 |
Recurring [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,295 | 4,057 |
Level 3 [Member] | Recurring [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,295 | 4,057 |
30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 7,749 | 9,870 |
60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 3,332 | 3,753 |
90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 34,023 | 50,735 |
Consumer loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 37,978 | 62,180 |
Current | 1,717,972 | 1,866,918 |
Total loans | 1,755,950 | 1,929,098 |
90-days or more past due and still accruing | 21,590 | 39,116 |
Consumer loans [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 6,594 | 9,870 |
Consumer loans [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 3,332 | 3,753 |
Consumer loans [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 28,052 | 48,557 |
Consumer loans [Member] | Single family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 36,484 | 60,987 |
Current | 1,151,675 | 1,297,188 |
Total loans | 1,188,159 | 1,358,175 |
90-days or more past due and still accruing | 21,590 | 39,116 |
Consumer loans [Member] | Single family [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 6,447 | 9,725 |
Consumer loans [Member] | Single family [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 2,972 | 3,653 |
Consumer loans [Member] | Single family [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 27,065 | 47,609 |
Consumer loans [Member] | Home equity and other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,494 | 1,193 |
Current | 566,297 | 569,730 |
Total loans | 567,791 | 570,923 |
90-days or more past due and still accruing | 0 | 0 |
Consumer loans [Member] | Home equity and other [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 147 | 145 |
Consumer loans [Member] | Home equity and other [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 360 | 100 |
Consumer loans [Member] | Home equity and other [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 987 | 948 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Current | 794,863 | 701,928 |
Total loans | 794,863 | 701,928 |
90-days or more past due and still accruing | 0 | 0 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Multifamily [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Current | 920,279 | 908,015 |
Total loans | 920,279 | 908,015 |
90-days or more past due and still accruing | 0 | 0 |
Commercial loans [Member] | Multifamily [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Multifamily [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Multifamily [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Construction/land development [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,355 | 72 |
Current | 760,977 | 794,472 |
Total loans | 762,332 | 794,544 |
90-days or more past due and still accruing | 0 | 0 |
Commercial loans [Member] | Construction/land development [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Construction/land development [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Construction/land development [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,355 | 72 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 3,411 | 374 |
Current | 473,239 | 428,784 |
Total loans | 476,650 | 429,158 |
90-days or more past due and still accruing | 0 | 0 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,110 | 0 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 2,301 | 374 |
Commercial loans [Member] | Commercial business [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 2,360 | 1,732 |
Current | 444,379 | 329,272 |
Total loans | 446,739 | 331,004 |
90-days or more past due and still accruing | 0 | 0 |
Commercial loans [Member] | Commercial business [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 45 | 0 |
Commercial loans [Member] | Commercial business [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial loans [Member] | Commercial business [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 2,315 | 1,732 |
Real Estate Sector [Member] | Commercial loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,355 | 72 |
Current | 2,476,119 | 2,404,415 |
Total loans | 2,477,474 | 2,404,487 |
90-days or more past due and still accruing | 0 | 0 |
Real Estate Sector [Member] | Commercial loans [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Real Estate Sector [Member] | Commercial loans [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Real Estate Sector [Member] | Commercial loans [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,355 | 72 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 5,771 | 2,106 |
Current | 917,618 | 758,056 |
Total loans | 923,389 | 760,162 |
90-days or more past due and still accruing | 0 | 0 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | 30 to 59 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 1,155 | 0 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | 60 to 89 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | 90 days or more past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 4,616 | $ 2,106 |
LOANS AND CREDIT QUALITY - Perf
LOANS AND CREDIT QUALITY - Performing and Nonaccrual (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Accrual | $ 5,144,380 | $ 5,082,128 |
Nonaccrual | 12,433 | 11,619 |
Total loans | 5,156,813 | 5,093,747 |
Fair value of loans held for investment | 5,295 | 4,057 |
Recurring [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,295 | 4,057 |
Level 3 [Member] | Recurring [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Fair value of loans held for investment | 5,295 | 4,057 |
Consumer loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 1,749,488 | 1,919,657 |
Nonaccrual | 6,462 | 9,441 |
Total loans | 1,755,950 | 1,929,098 |
Consumer loans [Member] | Single family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 1,182,684 | 1,349,682 |
Nonaccrual | 5,475 | 8,493 |
Total loans | 1,188,159 | 1,358,175 |
Consumer loans [Member] | Home equity and other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 566,804 | 569,975 |
Nonaccrual | 987 | 948 |
Total loans | 567,791 | 570,923 |
Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 794,863 | 701,928 |
Nonaccrual | 0 | 0 |
Total loans | 794,863 | 701,928 |
Commercial loans [Member] | Multifamily [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 920,279 | 908,015 |
Nonaccrual | 0 | 0 |
Total loans | 920,279 | 908,015 |
Commercial loans [Member] | Construction/land development [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 760,977 | 794,472 |
Nonaccrual | 1,355 | 72 |
Total loans | 762,332 | 794,544 |
Commercial loans [Member] | Owner occupied commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 474,349 | 428,784 |
Nonaccrual | 2,301 | 374 |
Total loans | 476,650 | 429,158 |
Commercial loans [Member] | Commercial business [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 444,424 | 329,272 |
Nonaccrual | 2,315 | 1,732 |
Total loans | 446,739 | 331,004 |
Real Estate Sector [Member] | Commercial loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 2,476,119 | 2,404,415 |
Nonaccrual | 1,355 | 72 |
Total loans | 2,477,474 | 2,404,487 |
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accrual | 918,773 | 758,056 |
Nonaccrual | 4,616 | 2,106 |
Total loans | $ 923,389 | $ 760,162 |
LOANS AND CREDIT QUALITY - TDRs
LOANS AND CREDIT QUALITY - TDRs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | |
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 27 | 44 | 128 | 123 |
Recorded investment - TDR | $ 6,532 | $ 9,228 | $ 37,180 | $ 25,887 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Interest rate reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 6 | 2 | 13 | 15 |
Recorded investment - TDR | $ 1,112 | $ 374 | $ 2,386 | $ 2,836 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 21 | 42 | 115 | 108 |
Recorded investment - TDR | $ 5,420 | $ 8,854 | $ 34,794 | $ 23,051 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 27 | 44 | 125 | 121 |
Recorded investment - TDR | $ 6,532 | $ 9,228 | $ 26,406 | $ 25,620 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Interest rate reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 6 | 2 | 13 | 15 |
Recorded investment - TDR | $ 1,112 | $ 374 | $ 2,386 | $ 2,836 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 21 | 42 | 112 | 106 |
Recorded investment - TDR | $ 5,420 | $ 8,854 | $ 24,020 | $ 22,784 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Single family [Member] | Interest rate reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 6 | 2 | 13 | 15 |
Recorded investment - TDR | $ 1,112 | $ 374 | $ 2,386 | $ 2,836 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Single family [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 21 | 42 | 111 | 106 |
Recorded investment - TDR | $ 5,420 | $ 8,854 | $ 23,904 | $ 22,784 |
Related charge-offs - TDR | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer loans [Member] | Home equity and other [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | |||
Recorded investment - TDR | $ 116 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial loans [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 2 | |||
Recorded investment - TDR | $ 267 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial loans [Member] | Construction/land development [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | |||
Recorded investment - TDR | $ 4,675 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial loans [Member] | Owner occupied commercial real estate [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | |||
Recorded investment - TDR | $ 5,840 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial loans [Member] | Commercial business [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | |||
Recorded investment - TDR | $ 259 | |||
Related charge-offs - TDR | $ 0 | |||
Real Estate Sector [Member] | Commercial loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | |||
Recorded investment - TDR | $ 4,675 | |||
Related charge-offs - TDR | $ 0 | |||
Real Estate Sector [Member] | Commercial loans [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 1 | |||
Recorded investment - TDR | $ 4,675 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial and Industrial Sector [Member] | Commercial loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 2 | 2 | ||
Recorded investment - TDR | $ 6,099 | $ 267 | ||
Related charge-offs - TDR | $ 0 | $ 0 | ||
Commercial and Industrial Sector [Member] | Commercial loans [Member] | Payment restructure [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 2 | |||
Recorded investment - TDR | $ 6,099 | |||
Related charge-offs - TDR | $ 0 | |||
Commercial and Industrial Sector [Member] | Commercial loans [Member] | Non-owner occupied commercial real estate [Member] | Interest rate reduction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loan modifications - TDR | loan | 2 | |||
Recorded investment - TDR | $ 267 | |||
Related charge-offs - TDR | $ 0 |
LOANS AND CREDIT QUALITY - TDR
LOANS AND CREDIT QUALITY - TDR Re-defaults (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of days past due for consumer loans TDR to be re-default | 60 days | |||
Number of days past due for commercial loans TDR to be re-default | 90 days | |||
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 3 | 6 | 9 | 18 |
Recorded investment | $ | $ 643 | $ 988 | $ 1,873 | $ 3,267 |
Consumer loans [Member] | Single family [Member] | ||||
TDR balances which have subsequently re-defaulted | ||||
Number of TDR loan relationships that re-defaulted | loan | 3 | 6 | 9 | 18 |
Recorded investment | $ | $ 643 | $ 988 | $ 1,873 | $ 3,267 |
DEPOSITS - Schedule of Deposit
DEPOSITS - Schedule of Deposit Balances (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Deposit balances, including stated rates | ||
Noninterest-bearing accounts | $ 952,380,000 | $ 914,154,000 |
NOW accounts, 0.00% to 1.44% at September 30, 2019 and December 31, 2018 | 421,750,000 | 376,137,000 |
Statement savings accounts, due on demand, 0.05% to 1.13% at September 30, 2019 and December 31, 2018 | 220,401,000 | 245,795,000 |
Money market accounts, due on demand, 0.00% to 3.43% at September 30, 2019 and 0.00% to 2.40% at December 31, 2018 | 2,073,907,000 | 1,935,516,000 |
Certificates of deposit, 0.10% to 3.06% at September 30, 2019 and 0.10% to 3.80% at December 31, 2018 | 2,135,869,000 | 1,579,806,000 |
Deposits, Total | 5,804,307,000 | 5,051,408,000 |
Short-term Debt [Line Items] | ||
Noninterest-bearing accounts, discontinued operations | $ 0 | $ 162,800,000 |
Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate, NOW accounts (as a percent) | 0.00% | 0.00% |
Weighted Average Rate, Statement savings accounts (as a percent) | 0.05% | 0.05% |
Weighted Average Rate, Money market accounts (as a percent) | 0.00% | 0.00% |
Weighted Average Rate, Certificates of deposit (as a percent) | 0.10% | 0.10% |
Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate, NOW accounts (as a percent) | 1.44% | 1.44% |
Weighted Average Rate, Statement savings accounts (as a percent) | 1.13% | 1.13% |
Weighted Average Rate, Money market accounts (as a percent) | 3.43% | 2.40% |
Weighted Average Rate, Certificates of deposit (as a percent) | 3.06% | 3.80% |
DEPOSITS - Schedule of Interest
DEPOSITS - Schedule of Interest expense on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest expense on deposits | ||||
NOW accounts | $ 371 | $ 416 | $ 1,140 | $ 1,286 |
Statement savings accounts | 121 | 197 | 407 | 643 |
Money market accounts | 7,129 | 4,481 | 19,822 | 12,003 |
Certificates of deposit | 12,972 | 6,192 | 30,476 | 14,704 |
Interest expense on deposits, Total | 20,593 | $ 11,286 | 51,845 | $ 28,636 |
Disposal Group, Including Discontinued Operation, Interest Expense | $ 91 | $ 91 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Weighted-average interest rate on certificates of deposit (as a percent) | 2.27% | 1.87% |
Time deposits, at or above FDIC insurance limit | $ 231.2 | $ 85.3 |
Brokered deposits | $ 739 | $ 786.1 |
DEPOSITS - Schedule of Deposits
DEPOSITS - Schedule of Deposits Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Certificates of deposit outstanding | ||
Within one year | $ 1,737,262 | |
One to two years | 309,166 | |
Two to three years | 57,857 | |
Three to four years | 16,065 | |
Four to five years | 15,485 | |
Thereafter | 34 | |
Total | $ 2,135,869 | $ 1,579,806 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Derivatives designated as a hedging instrument | $ 0 | $ 0 | $ 0 | ||
Notional amount of open interest rate swap agreements | 4,091,977,000 | 4,091,977,000 | 5,698,157,000 | ||
Interest rate swaps, back-to-back [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of open interest rate swap agreements | 77,800,000 | 77,800,000 | $ 2,600,000 | ||
Mark-to-market losses recorded | $ 115,000 | $ 0 | $ 149,000 | $ 0 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 4,091,977 | $ 5,698,157 |
Derivatives before netting, derivative assets | 43,852 | 28,083 |
Netting adjustments, derivative assets | (14,981) | (8,329) |
Derivative assets | 28,871 | 19,754 |
Derivatives before netting, derivative Liabilities | (16,951) | (17,004) |
Netting adjustments, derivative liabilities | 16,532 | 12,517 |
Derivative liabilities | (419) | (4,487) |
Concentration of credit risk, master netting arrangements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral, as part of netting adjustment | 1,600 | 4,200 |
Forward sale commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,509,784 | 1,334,947 |
Derivatives before netting, derivative assets | 3,026 | 3,025 |
Derivatives before netting, derivative Liabilities | (2,180) | (5,340) |
Interest rate swaptions [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 34,000 | |
Derivatives before netting, derivative assets | 203 | |
Derivatives before netting, derivative Liabilities | 0 | |
Interest rate lock and purchase loan commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 287,806 | 390,558 |
Derivatives before netting, derivative assets | 4,239 | 10,289 |
Derivatives before netting, derivative Liabilities | (203) | (5) |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 633,387 | 803,652 |
Derivatives before netting, derivative assets | 36,563 | 14,566 |
Derivatives before netting, derivative Liabilities | (14,568) | (11,549) |
Eurodollar futures [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,661,000 | 3,135,000 |
Derivatives before netting, derivative assets | 24 | 0 |
Derivatives before netting, derivative Liabilities | $ 0 | $ (110) |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Master Netting Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Gross fair value, derivative assets | $ 43,852 | $ 28,083 |
Netting adjustments, derivative assets | (14,981) | (8,329) |
Derivative assets | 28,871 | 19,754 |
Securities pledged, derivative assets | 0 | 0 |
Net amount - derivative assets | 28,871 | 19,754 |
Derivatives before netting, derivative Liabilities | (16,951) | (17,004) |
Netting adjustments, derivative liabilities | 16,532 | 12,517 |
Derivative liabilities | (419) | (4,487) |
Securities pledged, derivative liabilities | 0 | 3,223 |
Net amount, derivative liabilities | (419) | (1,264) |
Concentration of credit risk, master netting arrangements [Member] | ||
Derivative [Line Items] | ||
Cash collateral, as part of netting adjustment | $ 1,600 | $ 4,200 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES - Gain (Loss) Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loans [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | $ (6,884) | $ (4,760) | $ (17,983) | $ 12,322 |
Servicing contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | 9,040 | (9,446) | 19,917 | (52,611) |
Other Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | 115 | 0 | 149 | 0 |
Mortgages [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized on derivatives, including economic hedge | $ 2,271 | $ (14,206) | $ 2,083 | $ (40,289) |
MORTGAGE BANKING OPERATIONS - L
MORTGAGE BANKING OPERATIONS - Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 244,171 | $ 347,007 |
Loans held for sale, discontinued operations | 71,200 | 269,700 |
Single family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 158,931 | 321,868 |
Commercial loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 85,240 | $ 25,139 |
MORTGAGE BANKING OPERATIONS -_2
MORTGAGE BANKING OPERATIONS - Loans Sold (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of loans originated as held for sale | $ 1,164,443 | $ 1,882,565 | $ 3,939,089 | $ 5,411,198 |
Single family [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of loans originated as held for sale | 893,959 | 1,724,697 | 3,352,872 | 5,043,769 |
Commercial loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of loans originated as held for sale | $ 270,484 | $ 157,868 | $ 586,217 | $ 367,429 |
MORTGAGE BANKING OPERATIONS - G
MORTGAGE BANKING OPERATIONS - Gain on Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Gain on loan origination and sale activities | $ 16,321 | $ 44,571 | $ 90,791 | $ 149,939 |
Net gains on mortgage loan origination and sales activities, discontinued operations | 370 | 40,400 | 60,100 | 142,000 |
Single family [Member] | ||||
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Gain on loan origination and sale activities | 9,628 | 40,335 | 78,612 | 141,458 |
Commercial loans [Member] | ||||
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Gain on loan origination and sale activities | $ 6,693 | $ 4,236 | $ 12,179 | $ 8,481 |
MORTGAGE BANKING OPERATIONS -_3
MORTGAGE BANKING OPERATIONS - Loans Serviced for Others (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 8,590,979 | $ 21,694,212 |
Single family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 7,014,265 | 20,151,735 |
Commercial loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 1,576,714 | $ 1,542,477 |
MORTGAGE BANKING OPERATIONS - M
MORTGAGE BANKING OPERATIONS - Mortgage Repurchase Liability (Details) - Representations and warranties reserve for loan receivables [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Mortgage Repurchase Losses [Roll Forward] | ||||
Balance, beginning of period | $ 3,237 | $ 2,504 | $ 3,120 | $ 3,015 |
Additions, net of adjustments | (22) | 643 | 482 | 1,248 |
Realized losses | (28) | (273) | (415) | (1,389) |
Balance, end of period | $ 3,187 | $ 2,874 | $ 3,187 | $ 2,874 |
MORTGAGE BANKING OPERATIONS - N
MORTGAGE BANKING OPERATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Mar. 29, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||||
Servicing advances | $ 3,000 | $ 3,000 | $ 2,500 | ||||
Pre-tax loss due to discontinued operations | (7,501) | $ 11,562 | $ (22,193) | $ 52,880 | |||
Multifamily DUS [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Expected weighted average life of MSR | 10 years 7 months 2 days | ||||||
Early buyout loans [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Loans receivable, in Ginnie Mae pool | 11,200 | $ 11,200 | $ 37,700 | ||||
Single family residential mortgage servicing rights [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Pre-tax loss due to discontinued operations | $ 333 | $ (941) | $ 573 | ||||
Single family [Member] | Agency debentures [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Mortgage servicing rights, unpaid principal balance, sold | $ 14,260,000 | $ 14,260,000 | |||||
Percentage of loan portfolio sold | 71.00% |
MORTGAGE BANKING OPERATIONS - R
MORTGAGE BANKING OPERATIONS - Revenue from Mortgage Servicing (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Servicing fees and other | $ 7,454 | $ 15,046 | $ 30,877 | $ 51,882 |
Changes in fair value of single family MSRs due to modeled amortization | (4,489) | (8,300) | (16,894) | (26,570) |
Amortization of multifamily and SBA MSRs | (1,315) | (1,034) | (3,793) | (3,147) |
Net servicing income | 1,650 | 5,712 | 10,190 | 22,165 |
Changes in fair value of MSR due to changes in market inputs and/or model updates | (7,501) | 11,562 | (22,193) | 52,880 |
Mortgage servicing rights, risk management | 1,539 | 2,116 | (2,276) | 269 |
Loan servicing income | 3,189 | 7,828 | 7,914 | 22,434 |
MSR transaction costs, discontinued operations | 502 | 6,900 | 2,000 | 19,600 |
Servicing contracts [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net (loss) gain from derivatives economically hedging MSR | (9,040) | $ 9,446 | (19,917) | 52,611 |
Single family residential mortgage servicing rights [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Changes in fair value of MSR due to changes in market inputs and/or model updates | $ 333 | $ (941) | $ 573 |
MORTGAGE BANKING OPERATIONS - K
MORTGAGE BANKING OPERATIONS - Key Economic Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Constant prepayment rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Servicing asset, measurement input | 18.86% | 17.19% | 18.82% | 15.54% |
Discount rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Servicing asset, measurement input | 8.96% | 10.29% | 9.39% | 10.27% |
MORTGAGE BANKING OPERATIONS - S
MORTGAGE BANKING OPERATIONS - Sensitivity Analysis (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Fair value of mortgage servicing rights | $ 61,823 | $ 75,047 |
Expected weighted-average life | 4 years 18 days | |
Impact on fair value of 25 basis points adverse change in interest rates | $ (4,234) | |
Impact on fair value of 50 basis points adverse change in interest rates | (7,956) | |
Impact on fair value of 100 basis points increase | (1,718) | |
Impact on fair value of 200 basis points increase | $ (3,331) | |
Single Family [Member] | Weighted average [Member] | Measurement Input, Constant Prepayment Rate [Member] | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.2050 | |
Single Family [Member] | Weighted average [Member] | Discount rate [Member] | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.0900 |
MORTGAGE BANKING OPERATIONS -_4
MORTGAGE BANKING OPERATIONS - Single Family MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 75,047 | |||
Additions and amortization: | ||||
Changes due to modeled amortization | $ 4,489 | $ 8,300 | 16,894 | $ 26,570 |
Changes in fair value of MSR due to changes in market inputs and/or model updates | (7,501) | 11,562 | (22,193) | 52,880 |
Ending balance | 61,823 | 61,823 | ||
Single family [Member] | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 67,723 | 245,744 | 252,168 | 258,560 |
Additions and amortization: | ||||
Originations | 6,422 | 14,525 | 23,893 | 45,551 |
Sale of single family MSRs | 0 | (12) | (176,944) | (66,902) |
Changes due to modeled amortization | (4,489) | (8,300) | (16,894) | (26,570) |
Net additions and amortization | 1,933 | 6,213 | (169,945) | (47,921) |
Changes in fair value of MSR due to changes in market inputs and/or model updates | (7,833) | 11,665 | (20,400) | 52,983 |
Ending balance | $ 61,823 | $ 263,622 | $ 61,823 | $ 263,622 |
MORTGAGE BANKING OPERATIONS -_5
MORTGAGE BANKING OPERATIONS - Multifamily MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||
Beginning balance | $ 27,227 | $ 26,460 | $ 28,326 | $ 26,093 |
Origination | 2,770 | 2,657 | 3,931 | 5,000 |
Amortization | (1,196) | (981) | (3,456) | (2,957) |
Ending balance | $ 28,801 | $ 28,136 | $ 28,801 | $ 28,136 |
MORTGAGE BANKING OPERATIONS -_6
MORTGAGE BANKING OPERATIONS - MSR Projected Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Projected Amortization Expense [Abstract] | ||||||
Remainder of 2019 | $ 1,028 | |||||
2020 | 4,068 | |||||
2021 | 3,953 | |||||
2022 | 3,734 | |||||
2023 | 3,516 | |||||
2024 | 3,241 | |||||
2025 and thereafter | 9,261 | |||||
Carrying value of multifamily MSR | $ 28,801 | $ 27,227 | $ 28,326 | $ 28,136 | $ 26,460 | $ 26,093 |
COMMITMENTS, GUARANTEES, AND _2
COMMITMENTS, GUARANTEES, AND CONTINGENCIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($)claim | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)claim | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Unfunded loan commitments | $ 36,700,000 | $ 36,700,000 | $ 33,800,000 | |||||
Allowance for unfunded commitments | $ 1,200,000 | $ 1,400,000 | $ 1,200,000 | $ 1,400,000 | 1,400,000 | |||
Number of material claims pending | claim | 0 | 0 | ||||||
Representations and warranties reserve for loan receivables [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | $ 7,090,000,000 | $ 7,090,000,000 | 20,240,000,000 | |||||
Reserve liability related to mortgage repurchase | 3,187,000 | 2,874,000 | 3,187,000 | 2,874,000 | $ 3,237,000 | 3,120,000 | $ 2,504,000 | $ 3,015,000 |
Undisbursed construction loan funds [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | 400,700,000 | 400,700,000 | 607,200,000 | |||||
Home equity and business banking credit lines [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Unfunded commitment balance of loans sold on a servicing-retained basis | 750,400,000 | 750,400,000 | 662,100,000 | |||||
Loss sharing relationship [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to multifamily DUS program | 2,600,000 | 2,600,000 | 2,500,000 | |||||
Loss sharing relationship [Member] | Multifamily [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
UPB of loans sold through DUS | 1,500,000,000 | 1,500,000,000 | 1,460,000,000 | |||||
Losses incurred - related to DUS | 0 | $ 0 | 0 | $ 0 | ||||
Credit risk [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to mortgage repurchase | $ 3,200,000 | $ 3,200,000 | $ 3,100,000 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Fair Value Hierarchy Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities available for sale | $ 862,339 | $ 851,968 |
Fair value of loans held for sale | 87,717 | 52,186 |
Fair value of loans held for investment | 5,295 | 4,057 |
Single family mortgage servicing rights | 61,823 | 75,047 |
Derivative assets | 28,871 | 19,754 |
Liabilities: | ||
Derivative liabilities | 419 | 4,487 |
Residential mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 109,581 | 107,961 |
Commercial mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 29,836 | 34,514 |
Municipal bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 380,094 | 385,655 |
Corporate debt securities [Member] | ||
Assets: | ||
Investment securities available for sale | 18,768 | 19,995 |
Agency debentures [Member] | ||
Assets: | ||
Investment securities available for sale | 25,220 | 9,525 |
Recurring [Member] | ||
Assets: | ||
Fair value of loans held for sale | 158,931 | 321,868 |
Fair value of loans held for investment | 5,295 | 4,057 |
Single family mortgage servicing rights | 61,823 | 252,168 |
Total assets | 1,132,240 | 1,458,144 |
Liabilities: | ||
Total liabilities | 16,951 | 17,005 |
Recurring [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 109,581 | 107,961 |
Recurring [Member] | Commercial mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 29,836 | 34,514 |
Recurring [Member] | Collateralized mortgage obligations residential [Member] | ||
Assets: | ||
Investment securities available for sale | 187,989 | 166,744 |
Recurring [Member] | Collateralized mortgage obligations commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 109,543 | 116,674 |
Recurring [Member] | Municipal bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 380,094 | 385,655 |
Recurring [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Investment securities available for sale | 18,768 | 19,995 |
Recurring [Member] | US treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 1,308 | 10,900 |
Recurring [Member] | Agency debentures [Member] | ||
Assets: | ||
Investment securities available for sale | 25,220 | 9,525 |
Recurring [Member] | Eurodollar futures [Member] | ||
Assets: | ||
Derivative assets | 24 | |
Liabilities: | ||
Derivative liabilities | 110 | |
Recurring [Member] | Forward sale commitments [Member] | ||
Assets: | ||
Derivative assets | 3,026 | 3,025 |
Liabilities: | ||
Derivative liabilities | 2,180 | 5,340 |
Recurring [Member] | Interest rate swaptions [Member] | ||
Assets: | ||
Derivative assets | 203 | |
Recurring [Member] | Interest rate lock and purchase loan commitments [Member] | ||
Assets: | ||
Derivative assets | 4,239 | 10,289 |
Liabilities: | ||
Derivative liabilities | 203 | 5 |
Recurring [Member] | Interest rate swaps [Member] | ||
Assets: | ||
Derivative assets | 36,563 | 14,566 |
Liabilities: | ||
Derivative liabilities | 14,568 | 11,550 |
Level 1 [Member] | Recurring [Member] | ||
Assets: | ||
Fair value of loans held for sale | 0 | 0 |
Fair value of loans held for investment | 0 | 0 |
Single family mortgage servicing rights | 0 | 0 |
Total assets | 24 | 0 |
Liabilities: | ||
Total liabilities | 0 | 110 |
Level 1 [Member] | Recurring [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Commercial mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Collateralized mortgage obligations residential [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Collateralized mortgage obligations commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Municipal bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | US treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Agency debentures [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Eurodollar futures [Member] | ||
Assets: | ||
Derivative assets | 24 | |
Liabilities: | ||
Derivative liabilities | 110 | |
Level 1 [Member] | Recurring [Member] | Forward sale commitments [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Interest rate swaptions [Member] | ||
Assets: | ||
Derivative assets | 0 | |
Level 1 [Member] | Recurring [Member] | Interest rate lock and purchase loan commitments [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Interest rate swaps [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 [Member] | Recurring [Member] | ||
Assets: | ||
Fair value of loans held for sale | 152,854 | 319,177 |
Fair value of loans held for investment | 0 | 0 |
Single family mortgage servicing rights | 0 | 0 |
Total assets | 1,052,758 | 1,188,939 |
Liabilities: | ||
Total liabilities | 16,748 | 16,890 |
Level 2 [Member] | Recurring [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 107,647 | 107,961 |
Level 2 [Member] | Recurring [Member] | Commercial mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 29,836 | 34,514 |
Level 2 [Member] | Recurring [Member] | Collateralized mortgage obligations residential [Member] | ||
Assets: | ||
Investment securities available for sale | 187,989 | 166,744 |
Level 2 [Member] | Recurring [Member] | Collateralized mortgage obligations commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 109,543 | 116,674 |
Level 2 [Member] | Recurring [Member] | Municipal bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 380,094 | 385,655 |
Level 2 [Member] | Recurring [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Investment securities available for sale | 18,678 | 19,995 |
Level 2 [Member] | Recurring [Member] | US treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 1,308 | 10,900 |
Level 2 [Member] | Recurring [Member] | Agency debentures [Member] | ||
Assets: | ||
Investment securities available for sale | 25,220 | 9,525 |
Level 2 [Member] | Recurring [Member] | Eurodollar futures [Member] | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Level 2 [Member] | Recurring [Member] | Forward sale commitments [Member] | ||
Assets: | ||
Derivative assets | 3,026 | 3,025 |
Liabilities: | ||
Derivative liabilities | 2,180 | 5,340 |
Level 2 [Member] | Recurring [Member] | Interest rate swaptions [Member] | ||
Assets: | ||
Derivative assets | 203 | |
Level 2 [Member] | Recurring [Member] | Interest rate lock and purchase loan commitments [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 [Member] | Recurring [Member] | Interest rate swaps [Member] | ||
Assets: | ||
Derivative assets | 36,563 | 14,566 |
Liabilities: | ||
Derivative liabilities | 14,568 | 11,550 |
Level 3 [Member] | Recurring [Member] | ||
Assets: | ||
Investment securities available for sale | 2,024 | |
Fair value of loans held for sale | 6,077 | 2,691 |
Fair value of loans held for investment | 5,295 | 4,057 |
Single family mortgage servicing rights | 61,823 | 252,168 |
Total assets | 79,458 | 269,205 |
Liabilities: | ||
Total liabilities | 203 | 5 |
Level 3 [Member] | Recurring [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 1,934 | 0 |
Level 3 [Member] | Recurring [Member] | Commercial mortgage-backed securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Collateralized mortgage obligations residential [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Collateralized mortgage obligations commercial [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Municipal bonds [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Investment securities available for sale | 90 | 0 |
Level 3 [Member] | Recurring [Member] | US treasury securities [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Agency debentures [Member] | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Eurodollar futures [Member] | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Level 3 [Member] | Recurring [Member] | Forward sale commitments [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Interest rate swaptions [Member] | ||
Assets: | ||
Derivative assets | 0 | |
Level 3 [Member] | Recurring [Member] | Interest rate lock and purchase loan commitments [Member] | ||
Assets: | ||
Derivative assets | 4,239 | 10,289 |
Liabilities: | ||
Derivative liabilities | 203 | 5 |
Level 3 [Member] | Recurring [Member] | Interest rate swaps [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair value of loans held for investment | 5,295,000 | 5,295,000 | $ 4,057,000 | ||
Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of loans held for investment | 5,295,000 | 5,295,000 | 4,057,000 | ||
Level 3 [Member] | Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of loans held for investment | $ 5,295,000 | $ 5,295,000 | $ 4,057,000 |
FAIR VALUE MEASUREMENT - Sche_2
FAIR VALUE MEASUREMENT - Schedule of Investment Securities Available for Sale Measured Using Level 3 Unobservable Inputs (Details) - USD ($) | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | $ 862,339,000 | $ 851,968,000 | |
Decrease in investment securities held to maturity | (4,397,000) | $ (71,285,000) | |
Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | $ 2,024,000 | ||
Measurement Input, Implied Spread [Member] | Minimum [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs | 0.0200 | ||
Measurement Input, Implied Spread [Member] | Maximum [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs | 0.0200 | ||
Measurement Input, Implied Spread [Member] | Weighted average [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs | 0.0200 | ||
Accounting Standards Update 2017-12 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | $ 66,200,000 | ||
Decrease in investment securities held to maturity | $ 66,200,000 |
FAIR VALUE MEASUREMENT - Sche_3
FAIR VALUE MEASUREMENT - Schedule of Single Family Loans Held for Sale Measure Using Level 3 Unobservable Inputs (Details) $ in Thousands | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for investment, fair value option | $ 5,295 | $ 4,057 |
Loans held for sale, fair value option | 87,717 | 52,186 |
Recurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for investment, fair value option | 5,295 | 4,057 |
Loans held for sale, fair value option | 158,931 | 321,868 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for investment, fair value option | 5,295 | 4,057 |
Loans held for sale, fair value option | $ 6,077 | $ 2,691 |
Measurement Input, Implied Spread [Member] | Recurring [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for investment, fair vale inputs | 0.0434 | 0.0334 |
Loans held for sale, fair value inputs | 0.0571 | 0.0426 |
Measurement Input, Implied Spread [Member] | Recurring [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for investment, fair vale inputs | 0.0701 | 0.0515 |
Loans held for sale, fair value inputs | 0.0671 | 0.0496 |
Measurement Input, Implied Spread [Member] | Recurring [Member] | Level 3 [Member] | Weighted average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for investment, fair vale inputs | 0.0530 | 0.0420 |
Loans held for sale, fair value inputs | 0.0607 | 0.0440 |
Market price movement [Member] | Recurring [Member] | Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for sale, fair value inputs | (0.0010) | 0.0071 |
Market price movement [Member] | Recurring [Member] | Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for sale, fair value inputs | (0.0008) | 0.0109 |
Market price movement [Member] | Recurring [Member] | Level 3 [Member] | Weighted average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Loans held for sale, fair value inputs | (0.0009) | 0.0090 |
FAIR VALUE MEASUREMENT - Sche_4
FAIR VALUE MEASUREMENT - Schedule of Interest Rate Lock and Purchase Loan Commitments Fair Value Measure Using Level 3 Unobservable Inputs (Details) - Interest rate lock and purchase loan commitments [Member] $ in Thousands | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, fair value | $ 4,036 | $ 8,624 | $ 10,284 | $ 10,397 | $ 16,866 | $ 12,925 |
Level 3 [Member] | Recurring [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, fair value | $ 4,036 | $ 10,284 | ||||
Level 3 [Member] | Measurement Input, Fall-Out Factor [Member] | Recurring [Member] | Minimum [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, measurement input | 0 | 0 | ||||
Level 3 [Member] | Measurement Input, Fall-Out Factor [Member] | Recurring [Member] | Maximum [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, measurement input | 0.6368 | 0.6792 | ||||
Level 3 [Member] | Measurement Input, Fall-Out Factor [Member] | Recurring [Member] | Weighted average [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, measurement input | 0.1262 | 0.1984 | ||||
Level 3 [Member] | Measurement Input, Value Of Servicing [Member] | Recurring [Member] | Minimum [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, measurement input | 0.0051 | 0.0054 | ||||
Level 3 [Member] | Measurement Input, Value Of Servicing [Member] | Recurring [Member] | Maximum [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, measurement input | 0.0162 | 0.0164 | ||||
Level 3 [Member] | Measurement Input, Value Of Servicing [Member] | Recurring [Member] | Weighted average [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Interest rate lock and purchase loan commitments, net, measurement input | 0.0112 | 0.0093 |
FAIR VALUE MEASUREMENT - Sche_5
FAIR VALUE MEASUREMENT - Schedule of Fair Value Changes and Activity for Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||||
Decrease in investment securities held to maturity | $ (4,397) | $ (4,397) | $ (71,285) | |||
Investment securities available for sale | 862,339 | 862,339 | $ 851,968 | |||
Available-for-sale Securities [Member] | ||||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||||
Beginning balance | 1,981 | 0 | ||||
Additions | 0 | 0 | ||||
Transfers | 0 | 2,379 | ||||
Payoffs/Sales/Settlements | (40) | (120) | ||||
Change in mark to market/Realized/unrealized gains (losses) | 83 | (235) | ||||
Ending balance | 2,024 | 2,024 | ||||
Loans held for sale [Member] | ||||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||||
Beginning balance | 4,427 | $ 1,823 | 2,691 | $ 1,336 | ||
Additions | 2,393 | 0 | 5,060 | 2,601 | ||
Transfers | 0 | 0 | 0 | 0 | ||
Payoffs/Sales/Settlements | 686 | 0 | (1,595) | (1,998) | ||
Change in mark to market/Realized/unrealized gains (losses) | (57) | (30) | (79) | (146) | ||
Ending balance | 6,077 | 1,793 | 6,077 | 1,793 | ||
Loans held for investment [Member] | ||||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||||
Beginning balance | 4,475 | 4,178 | 4,057 | 5,477 | ||
Additions | 789 | 0 | 1,788 | 0 | ||
Transfers | 0 | 0 | 0 | 0 | ||
Payoffs/Sales/Settlements | 0 | (2) | (606) | (1,116) | ||
Change in mark to market/Realized/unrealized gains (losses) | 31 | (86) | 56 | (271) | ||
Ending balance | 5,295 | 4,090 | 5,295 | 4,090 | ||
Interest rate lock and purchase loan commitments [Member] | ||||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||||
Beginning balance | 8,624 | 16,866 | 10,284 | 12,925 | ||
Payoffs/Sales/Settlements | (5,831) | (32,996) | (40,903) | (80,135) | ||
Change in mark to market/Realized/unrealized gains (losses) | 1,243 | 26,527 | 34,655 | 77,607 | ||
Ending balance | $ 4,036 | $ 10,397 | $ 4,036 | $ 10,397 | ||
Accounting Standards Update 2017-12 [Member] | ||||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||||
Decrease in investment securities held to maturity | $ 66,200 | |||||
Investment securities available for sale | $ 66,200 |
FAIR VALUE MEASUREMENT - FV Uno
FAIR VALUE MEASUREMENT - FV Unobservable Inputs - Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | $ 862,339 | $ 862,339 | $ 851,968 | ||
Total Gains (Losses) | 193 | $ (35) | |||
Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | 266 | $ 1,213 | 266 | 1,213 | |
Total Gains (Losses) | (2) | (68) | (2) | (212) | |
Total assets | 266 | 1,213 | 266 | 1,213 | |
Total Gains (Losses) | (2) | (68) | (2) | (212) | |
Nonrecurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for investment | 266 | 1,213 | 266 | 1,213 | |
Total assets | $ 266 | $ 1,213 | $ 266 | $ 1,213 |
FAIR VALUE MEASUREMENT - FV of
FAIR VALUE MEASUREMENT - FV of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities held to maturity | $ 4,513 | $ 70,546 |
Fair value of loans held for investment | 5,295 | 4,057 |
Loans held for sale, fair value option | 87,717 | 52,186 |
Single family mortgage servicing rights | 61,823 | 75,047 |
Carrying value [Member] | ||
Assets: | ||
Cash and cash equivalents | 74,788 | 57,982 |
Investment securities held to maturity | 4,397 | 71,285 |
Fair value of loans held for investment | 5,133,813 | 5,071,314 |
Federal Home Loan Bank stock | 8,764 | 45,497 |
Liabilities: | ||
Time deposits | 2,135,869 | 1,579,806 |
Federal Home Loan Bank advances | 5,590 | 932,590 |
Federal funds purchased and securities sold under agreements to repurchase | 19,000 | |
Long-term debt | 125,603 | 125,462 |
Fair value [Member] | ||
Assets: | ||
Cash and cash equivalents | 74,788 | 57,982 |
Investment securities held to maturity | 4,513 | 70,546 |
Fair value of loans held for investment | 5,285,639 | 5,099,960 |
Federal Home Loan Bank stock | 8,764 | 45,497 |
Liabilities: | ||
Time deposits | 2,146,696 | 1,575,139 |
Federal Home Loan Bank advances | 7,013 | 935,021 |
Federal funds purchased and securities sold under agreements to repurchase | 19,021 | |
Long-term debt | 115,447 | 112,475 |
Level 1 [Member] | Fair value [Member] | ||
Assets: | ||
Cash and cash equivalents | 74,788 | 57,982 |
Investment securities held to maturity | 0 | 0 |
Fair value of loans held for investment | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Liabilities: | ||
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 19,021 | |
Long-term debt | 0 | 0 |
Level 2 [Member] | Fair value [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held to maturity | 4,513 | 70,546 |
Fair value of loans held for investment | 0 | 0 |
Federal Home Loan Bank stock | 8,764 | 45,497 |
Liabilities: | ||
Time deposits | 2,146,696 | 1,575,139 |
Federal Home Loan Bank advances | 7,013 | 935,021 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | |
Long-term debt | 115,447 | 112,475 |
Level 3 [Member] | Fair value [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Fair value of loans held for investment | 5,285,639 | 5,099,960 |
Federal Home Loan Bank stock | 0 | 0 |
Liabilities: | ||
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | |
Long-term debt | 0 | 0 |
Multifamily [Member] | Carrying value [Member] | ||
Assets: | ||
Loans held for sale, fair value option | 85,240 | 25,139 |
Single family mortgage servicing rights | 28,801 | 28,326 |
Multifamily [Member] | Fair value [Member] | ||
Assets: | ||
Loans held for sale, fair value option | 85,240 | 25,139 |
Single family mortgage servicing rights | 31,903 | 31,168 |
Multifamily [Member] | Level 1 [Member] | Fair value [Member] | ||
Assets: | ||
Loans held for sale, fair value option | 0 | 0 |
Single family mortgage servicing rights | 0 | 0 |
Multifamily [Member] | Level 2 [Member] | Fair value [Member] | ||
Assets: | ||
Loans held for sale, fair value option | 85,240 | 25,139 |
Single family mortgage servicing rights | 0 | 0 |
Multifamily [Member] | Level 3 [Member] | Fair value [Member] | ||
Assets: | ||
Loans held for sale, fair value option | 0 | 0 |
Single family mortgage servicing rights | $ 31,903 | $ 31,168 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of EPS Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
EPS numerator: | ||||
Income from continuing operations | $ 13,665 | $ 8,089 | $ 27,615 | $ 14,014 |
Undistributed stock dividends share repurchase | (223) | 0 | (505) | 0 |
Allocated undistributed earnings in share repurchase | (101) | 0 | (128) | 0 |
Income from continuing operations available to common shareholders | 13,341 | 8,089 | 26,982 | 14,014 |
Income (loss) from discontinued operations | 162 | 3,746 | (21,091) | 10,786 |
Net income available to common shareholders | $ 13,503 | $ 11,835 | $ 5,891 | $ 24,800 |
Weighted average shares: | ||||
Basic weighted average number of shares outstanding (in shares) | 24,419,793 | 26,985,425 | 26,020,172 | 26,963,260 |
Dilutive effect of outstanding common stock equivalents (in shares) | 206,145 | 196,263 | 184,242 | 202,412 |
Diluted weighted-average number of shares outstanding (in shares) | 24,625,938 | 27,181,688 | 26,204,414 | 27,165,672 |
Basic earnings per common share: | ||||
Basic income from continuing operations per share (in dollars per share) | $ 0.55 | $ 0.30 | $ 1.04 | $ 0.52 |
Basic income (loss) from discontinued operations per share (in dollars per share) | 0.01 | 0.14 | (0.81) | 0.40 |
Basic earnings per share (in dollars per share) | 0.55 | 0.44 | 0.23 | 0.92 |
Diluted earnings per common share | ||||
Diluted income from continuing operations per share (in dollars per share) | 0.54 | 0.30 | 1.03 | 0.52 |
Diluted income (loss) from discontinued operations per share (in dollars per share) | 0.01 | 0.14 | (0.80) | 0.40 |
Diluted earnings per share (in dollars per share) | $ 0.55 | $ 0.44 | $ 0.22 | $ 0.91 |
Aggregate number of common stock equivalents and unvested restricted stock (in shares) | 690 | 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Remaining lease terms | 20 years | |
Lessee, Operating Sublease, Description [Abstract] | ||
Remainder of 2019, sublease payments due to Company | $ 1,700 | $ 1,700 |
2020, sublease payments due to Company | 6,300 | 6,300 |
2021, sublease payments due to Company | 5,300 | 5,300 |
2022, sublease payments due to Company | 4,100 | 4,100 |
2023, sublease payments due to Company | 2,500 | 2,500 |
Thereafter, sublease payments due to Company | 1,900 | 1,900 |
Impairment loss | $ (38) | $ (3,900) |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,464 | $ 11,180 |
Finance lease cost: | ||
Amortization of right-of-use assets | 442 | 1,601 |
Interest on lease liabilities | 81 | 262 |
Short-term lease | 10 | 16 |
Variable lease cost | 1,132 | 4,934 |
Sublease income | (1,686) | (2,515) |
Total lease cost | $ 3,443 | $ 15,478 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 4,184 | $ 12,916 |
Operating cash flows from finance leases | 81 | 262 |
Financing cash flows from finance leases | 322 | 1,375 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 2,059 | (5,306) |
Finance leases | $ 446 | $ (570) |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 92,840 |
Operating lease liabilities | 110,727 |
Finance lease right-of-use assets | 9,003 |
Finance lease liabilities | $ 9,345 |
Weighted Average Remaining lease term | |
Operating leases | 11 years 10 months 20 days |
Finance leases | 14 years 7 months 17 days |
Weighted Average Discount Rate | |
Operating leases | 3.48% |
Finance leases | 3.56% |
LEASES - Lease Liability Maturi
LEASES - Lease Liability Maturities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 4,363 |
2020 | 16,496 |
2021 | 15,346 |
2022 | 13,331 |
2023 | 10,994 |
2024 | 9,451 |
Thereafter | 69,653 |
Total lease payments | 139,634 |
Less imputed interest | 28,907 |
Total | 110,727 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | 497 |
2020 | 1,767 |
2021 | 1,465 |
2022 | 590 |
2023 | 474 |
2024 | 400 |
Thereafter | 7,238 |
Total lease payments | 12,431 |
Less imputed interest | 3,086 |
Total | $ 9,345 |
LEASES - Minimum Rental Payment
LEASES - Minimum Rental Payments for Non-Cancelable Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 22,770 |
2020 | 20,671 |
2021 | 18,825 |
2022 | 16,418 |
2023 | 13,274 |
2024 and thereafter | 40,717 |
Total minimum payments | $ 132,675 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 25, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill from acquisition | $ 30,170 | $ 22,564 | |
Silvergate Bank Branch, San Diego County | |||
Business Acquisition [Line Items] | |||
Goodwill from acquisition | $ 7,600 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 671,175 | $ 706,459 | $ 739,520 | $ 704,380 | ||
Cumulative effect of adoption of new accounting standards | $ (548) | |||||
Other comprehensive income (loss) before reclassifications | 5,273 | (4,399) | 25,412 | (16,811) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 15 | 4 | 102 | (184) | ||
Other comprehensive income (loss) | 5,288 | (4,395) | 25,514 | (16,995) | ||
Ending balance | 691,136 | 714,782 | 691,136 | 714,782 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 2,707 | (19,722) | (15,439) | (7,122) | ||
Cumulative effect of adoption of new accounting standards | $ (2,080) | $ 0 | ||||
Other comprehensive income (loss) | 5,288 | (4,395) | 25,514 | (16,995) | ||
Ending balance | $ 7,995 | $ (24,117) | $ 7,995 | $ (24,117) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
(Loss) Gain on sale of investment securities available for sale | $ (18) | $ (4) | $ (128) | $ 234 |
Income tax (benefit) expense | 2,328 | 1,757 | 4,865 | 3,341 |
Total, net of tax | (15) | (4) | (102) | 184 |
Gains and Losses on Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
(Loss) Gain on sale of investment securities available for sale | (19) | (4) | (129) | 234 |
Income tax (benefit) expense | $ (4) | $ 0 | $ (27) | $ 50 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Percentage of revenue streams in scope with ASU 2014-09 | 2.30% | 2.30% |
RESTRUCTURING - Restructuring R
RESTRUCTURING - Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 2,007 | $ 4,648 | $ 1,604 | $ 1,386 |
Restructuring charges | 174 | 471 | 1,515 | 7,073 |
Costs paid or otherwise settled | (653) | (1,809) | (1,591) | (5,149) |
Ending balance | 1,528 | 3,310 | 1,528 | 3,310 |
Facility related costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 1,423 | 4,209 | 1,604 | 1,386 |
Restructuring charges | 6 | 456 | 200 | 6,619 |
Costs paid or otherwise settled | (173) | (1,409) | (548) | (4,749) |
Ending balance | 1,256 | 3,256 | 1,256 | 3,256 |
Personnel related costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 562 | 439 | 0 | 0 |
Restructuring charges | 168 | 15 | 1,168 | 454 |
Costs paid or otherwise settled | (480) | (400) | (918) | (400) |
Ending balance | 250 | 54 | 250 | 54 |
Other Restructuring [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 22 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 147 | 0 |
Costs paid or otherwise settled | 0 | 0 | (125) | 0 |
Ending balance | $ 22 | $ 0 | $ 22 | $ 0 |
Uncategorized Items - hmst-2019
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,532,000 |