FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016, whether or not measured at fair value in the Consolidated Statements of Financial Condition (in thousands):



		March 31, 2017				December 31, 2016
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	300,708	$	300,708	$	247,719	$	247,719
Securities—trading	2,3	24,753		24,753		24,568		24,568
Securities—available-for-sale	2	1,223,764		1,223,764		800,917		800,917
Securities—held-to-maturity	2,3	266,391		269,402		267,873		270,528
Loans held for sale	2	86,707		87,937		246,353		246,815
Loans receivable	3	7,421,255		7,303,871		7,451,148		7,337,608
FHLB stock	3	10,334		10,334		12,506		12,506
Bank-owned life insurance	1	159,948		159,948		158,936		158,936
Mortgage servicing rights	3	15,272		18,846		15,249		16,740
Derivatives:
Interest rate swaps	2	7,268		7,268		8,330		8,330
Interest rate lock and forward sales commitments	2	628		628		482		482
Liabilities:
Demand, interest checking and money market accounts	2	5,685,219		5,685,219		5,552,690		5,552,690
Regular savings	2	1,592,023		1,592,023		1,523,391		1,523,391
Certificates of deposit	2	1,144,718		1,127,412		1,045,333		1,028,866
FHLB advances	2	213		213		54,216		54,216
Other borrowings	2	120,245		120,245		105,685		105,685
Junior subordinated debentures	3	96,040		96,040		95,200		95,200
Derivatives:
Interest rate swaps	2	7,268		7,268		8,330		8,330
Interest rate lock and forward sales commitments	2	337		337		289		289

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 March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
U.S. Government and agency obligations	$	—	$	1,322	$	—	$	1,322
Municipal bonds	—		334		—		334
Corporate Bonds (Trust Preferred Securities)	—		—		21,361		21,361
Mortgage-backed or related securities	—		1,617		—		1,617
Equity securities	—		119		—		119
	—		3,392		21,361		24,753
Securities—available-for-sale
U.S. Government and agency obligations	—		90,672		—		90,672
Municipal bonds	—		110,545		—		110,545
Corporate bonds	—		10,558		—		10,558
Mortgage-backed or related securities	—		983,198		—		983,198
Asset-backed securities	—		28,693		—		28,693
Equity securities	—		98		—		98
	—		1,223,764		—		1,223,764

Loans held for sale	—		7,282		—		7,282

Derivatives
Interest rate swaps	—		7,268		—		7,268
Interest rate lock and forward sales commitments	—		628		—		628
	$	—	$	1,242,334	$	21,361	$	1,263,695

Liabilities:
Advances from FHLB	$	—	$	213	$	—	$	213
Junior subordinated debentures, net of unamortized deferred issuance costs	—		—		96,040		96,040
Derivatives
Interest rate swaps	—		7,268		—		7,268
Interest rate lock and forward sales commitments	—		337		—		337
	$	—	$	7,818	$	96,040	$	103,858



	December 31, 2016
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
U.S. Government and agency obligations	$	—	$	1,326	$	—	$	1,326
Municipal bonds	—		335		—		335
Corporate Bonds (Trust Preferred Securities)	—		—		21,143		21,143
Mortgage-backed securities	—		1,641		—		1,641
Equity securities	—		123		—		123
	—		3,425		21,143		24,568
Securities—available-for-sale
U.S. Government and agency obligations	—		56,978		—		56,978
Municipal bonds	—		109,853		—		109,853
Corporate bonds	—		10,283		—		10,283
Mortgage-backed securities	—		594,712		—		594,712
Asset-backed securities	—		28,993		—		28,993
Equity securities	—		98		—		98
	—		800,917		—		800,917

Loans held for sale	—		9,600		—		9,600

Derivatives
Interest rate swaps	—		8,330		—		8,330
Interest rate lock and forward sales commitments	—		482		—		482
	$	—	$	822,754	$	21,143	$	843,897

Liabilities:
Advances from FHLB	$	—	$	54,216	$	—	$	54,216
Junior subordinated debentures, net of unamortized deferred issuance costs	—		—		95,200		95,200
Derivatives
Interest rate swaps	—		8,330		—		8,330
Interest rate lock and forward sales commitments	—		289		—		289
	$	—	$	62,835	$	95,200	$	158,035

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 non-recurring basis at March 31, 2017 and December 31, 2016:



			Weighted Average Rate
Financial Instruments	Valuation Techniques	Unobservable Inputs	March 31, 2017		December 31, 2016
Corporate Bonds (TPS securities)	Discounted cash flows	Discount rate	6.15	%	6.00	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.15		6.00
Impaired loans	Collateral Valuations	Discount to appraised value	25	%	n/a
REO	Appraisals	Discount to appraised value	0% to 45%		0% to 45%

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 months ended March 31, 2017 and 2016 (in thousands):



	Three Months Ended
	March 31, 2017
	Level 3 Fair Value Inputs
	TPS Securities		Borrowings—Junior Subordinated Debentures
Beginning balance	$	21,143	$	95,200
Total gains or losses recognized
Assets gains	218		—
Liabilities losses	—		840
Ending balance at March 31, 2017	$	21,361	$	96,040

	Three Months Ended
	March 31, 2016
	Level 3 Fair Value Inputs
	TPS Securities		Borrowings—Junior Subordinated Debentures
Beginning balance	$	18,699	$	92,480
Total gains or losses recognized
Assets gains	119		—
Liabilities losses	—		399
Purchases, issuances and settlements, including acquisitions	1,725		—
Ending balance at March 31, 2016	$	20,543	$	92,879

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 March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	680	$	680
REO	—		—		3,040		3,040

	December 31, 2016
	Level 1		Level 2		Level 3		Total
REO	—		—		11,081		11,081

The following table presents the gains (losses) resulting from non-recurring fair value adjustments for the three months ended March 31, 2017 and 2016 (in thousands):



	Three months ended March 31,
	2017			2016
Impaired loans	$	—		$	(16	)
REO	(50		)	(205		)
Total gain (loss) from non-recurring measurements	$	(50	)	$	(221	)