FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Fair Value of Financial Instruments, by Balance Sheet Grouping

The following table presents estimated fair values of the Company’s financial instruments as of September 30, 2016 and December 31, 2015, whether or not measured at fair value in the Consolidated Statements of Financial Condition (in thousands):



		September 30, 2016				December 31, 2015
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	245,917	$	245,917	$	261,917	$	261,917
Securities—trading	2,3	30,889		30,889		34,134		34,134
Securities—available-for-sale	2	1,006,414		1,006,414		1,138,573		1,138,573
Securities—held-to-maturity	2,3	271,975		283,303		220,666		226,627
Loans held for sale	2	123,144		124,749		44,712		45,600
Loans receivable	3	7,398,637		7,334,303		7,314,504		7,084,631
FHLB stock	3	12,826		12,826		16,057		16,057
Bank-owned life insurance	1	158,831		158,831		156,865		156,865
Mortgage servicing rights	3	14,826		15,170		13,295		17,370
Derivatives:
Interest rate swaps	2	18,999		18,999		11,984		11,984
Interest rate forward sales commitments	2	1,119		1,119		471		471
Liabilities:
Demand, interest checking and money market accounts	2	5,601,838		5,601,838		5,416,556		5,416,556
Regular savings	2	1,387,123		1,387,123		1,284,642		1,284,642
Certificates of deposit	2	1,123,011		1,109,322		1,353,870		1,332,825
FHLB advances	2	62,342		62,342		133,381		133,381
Other borrowings	2	108,911		108,911		98,325		98,325
Junior subordinated debentures	3	94,364		94,364		92,480		92,480
Derivatives:
Interest rate swaps	2	18,999		18,999		11,984		11,984
Interest rate forward sales commitments	2	540		540		50		50

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
U.S. Government and agency obligations	$	—	$	1,366	$	—	$	1,366
Municipal bonds	—		336		—		336
Corporate Bonds (Trust Preferred Securities)	—		—		20,925		20,925
Mortgage-backed or related securities	—		8,173		—		8,173
Equity securities	—		89		—		89
	—		9,964		20,925		30,889
Securities—available-for-sale
U.S. Government and agency obligations	—		58,169		—		58,169
Municipal bonds	—		145,400		—		145,400
Corporate bonds	—		10,373		—		10,373
Mortgage-backed or related securities	—		762,654		—		762,654
Asset-backed securities	—		29,720		—		29,720
Equity securities	—		98		—		98
	—		1,006,414		—		1,006,414

Derivatives
Interest rate swaps	—		18,999		—		18,999
Interest rate lock commitments	—		1,119		—		1,119
	$	—	$	1,036,496	$	20,925	$	1,057,421

Liabilities:
Advances from FHLB	$	—	$	62,342	$	—	$	62,342
Junior subordinated debentures, net of unamortized deferred issuance costs	—		—		94,364		94,364
Derivatives
Interest rate swaps	—		18,999		—		18,999
Interest rate forward sales commitments	—		540		—		540
	$	—	$	81,881	$	94,364	$	176,245



	December 31, 2015
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
U.S. Government and agency obligations	$	—	$	1,368	$	—	$	1,368
Municipal bonds	—		341		—		341
Corporate Bonds (Trust Preferred Securities)	—		—		18,699		18,699
Mortgage-backed securities	—		13,663		—		13,663
Equity securities	—		63		—		63
	—		15,435		18,699		34,134
Securities—available-for-sale
U.S. Government and agency obligations	—		30,231		—		30,231
Municipal bonds	—		143,319		—		143,319
Corporate bonds	—		15,981		—		15,981
Mortgage-backed securities	—		918,259		—		918,259
Asset-backed securities	—		30,685		—		30,685
Equity securities	—		98		—		98
	—		1,138,573		—		1,138,573
Derivatives
Interest rate swaps	—		11,984		—		11,984
Interest rate lock commitments	—		471		—		471
	$	—	$	1,166,463	$	18,699	$	1,185,162

Liabilities:
Advances from FHLB	$	—	$	133,381	$	—	$	133,381
Junior subordinated debentures, net of unamortized deferred issuance costs	—		—		92,480		92,480
Derivatives
Interest rate swaps	—		11,984		—		11,984
Interest rate forward sales commitments	—		50		—		50
	$	—	$	145,415	$	92,480	$	237,895

Schedule of Valuation Technique, Unobservable Input, and Qualitative Information for Unobservable Inputs

The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for certain of the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2016 and December 31, 2015:



			Weighted Average Rate
Financial Instruments	Valuation Techniques	Unobservable Inputs	September 30, 2016		December 31, 2015
Corporate Bonds (TPS securities)	Discounted cash flows	Discount rate	5.85	%	5.61	%
Junior subordinated debentures	Discounted cash flows	Discount rate	5.85		5.61
Impaired loans	Discounted cash flows	Discount rate	Various		Various
Impaired loans	Collateral Valuations	Market values	n/a		n/a
REO	Appraisals	Market values	n/a		n/a

Schedule of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2016 and 2015 (in thousands):



	Three Months Ended					Nine Months Ended
	September 30, 2016					September 30, 2016
	Level 3 Fair Value Inputs					Level 3 Fair Value Inputs
	TPS Securities			Borrowings—Junior Subordinated Debentures		TPS Securities			Borrowings— Junior Subordinated Debentures
Beginning balance	$	20,645		$	93,298	$	18,699		$	92,480
Total gains or losses recognized
Assets gains	280			—		501			—
Liabilities losses	—			1,066		—			1,884
Purchases, issuances and settlements, including acquisitions	—			—		1,725			—
Ending balance at September 30, 2016	$	20,925		$	94,364	$	20,925		$	94,364

	Three Months Ended					Nine Months Ended
	September 30, 2015					September 30, 2015
	Level 3 Fair Value Inputs					Level 3 Fair Value Inputs
	TPS and TRUP CDOs			Borrowings—Junior Subordinated Debentures		TPS and TRUP CDOs			Borrowings— Junior Subordinated Debentures
Beginning balance	$	12,571		$	84,694	$	19,119		$	78,001
Total gains or losses recognized
Assets gains	(596		)	—		1,475			—
Liabilities losses	—			489		—			1,223
Purchases, issuances and settlements, including acquisitions	6,338			—		6,338			5,959
Sales, maturities and paydowns, net of discount amortization	27			—		(8,592		)	—
Ending balance at September 30, 2015	$	18,340		$	85,183	$	18,340		$	85,183

Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following tables present financial assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	4,688	$	4,688
REO	—		—		4,717		4,717

	December 31, 2015
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	2,372	$	2,372
REO	—		—		11,627		11,627

The following table presents the gains (losses) resulting from nonrecurring fair value adjustments for the three and nine months ended September 30, 2016 and 2015 (in thousands):



	Three months ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Impaired loans	$	(128	)	$	(600	)	$	(182	)	$	(916	)
REO	(168		)	(34		)	(599		)	(244		)
Total gain (loss) from nonrecurring measurements	$	(296	)	$	(634	)	$	(781	)	$	(1,160	)