FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2017 and December 31, 2016, whether or not measured at fair value in the Consolidated Statements of Financial Condition (in thousands):



		September 30, 2017				December 31, 2016
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	241,766	$	241,766	$	247,719	$	247,719
Securities—trading	2,3	23,466		23,466		24,568		24,568
Securities—available-for-sale	2	1,339,057		1,339,057		800,917		800,917
Securities—held-to-maturity	2,3	264,752		268,663		267,873		270,528
Loans held for sale	2	71,905		72,018		246,353		246,815
Loans receivable	3	7,774,449		7,666,707		7,451,148		7,337,608
FHLB stock	3	20,854		20,854		12,506		12,506
Bank-owned life insurance	1	161,648		161,648		158,936		158,936
Mortgage servicing rights	3	14,754		18,312		15,249		16,740
Derivatives:
Interest rate swaps	2	7,186		7,186		8,330		8,330
Interest rate lock and forward sales commitments	2	664		664		482		482
Liabilities:
Demand, interest checking and money market accounts	2	5,860,984		5,860,984		5,552,690		5,552,690
Regular savings	2	1,577,292		1,577,292		1,523,391		1,523,391
Certificates of deposit	2	1,100,574		1,082,829		1,045,333		1,028,866
FHLB advances	2	263,349		263,349		54,216		54,216
Other borrowings	2	103,713		103,713		105,685		105,685
Junior subordinated debentures	3	97,280		97,280		95,200		95,200
Derivatives:
Interest rate swaps	2	7,186		7,186		8,330		8,330
Interest rate lock and forward sales commitments	2	115		115		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 September 30, 2017 and December 31, 2016 (in thousands):



	September 30, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
U.S. Government and agency obligations	$	—	$	1,305	$	—	$	1,305
Municipal bonds	—		331		—		331
Corporate bonds (Trust Preferred Securities)	—		—		21,675		21,675
Equity securities	—		155		—		155
	—		1,791		21,675		23,466
Securities—available-for-sale
U.S. Government and agency obligations	—		87,585		—		87,585
Municipal bonds	—		114,646		—		114,646
Corporate bonds	—		10,602		—		10,602
Mortgage-backed or related securities	—		1,092,432		—		1,092,432
Asset-backed securities	—		28,207		—		28,207
Equity securities	—		5,585		—		5,585
	—		1,339,057		—		1,339,057

Loans held for sale	—		64,399		—		64,399

Derivatives
Interest rate swaps	—		7,186		—		7,186
Interest rate lock and forward sales commitments	—		664		—		664
	$	—	$	1,413,097	$	21,675	$	1,434,772

Liabilities:
Advances from FHLB	$	—	$	263,349	$	—	$	263,349
Junior subordinated debentures, net of unamortized deferred issuance costs	—		—		97,280		97,280
Derivatives
Interest rate swaps	—		7,186		—		7,186
Interest rate lock and forward sales commitments	—		115		—		115
	$	—	$	270,650	$	97,280	$	367,930



	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 September 30, 2017 and December 31, 2016:



			Weighted Average Rate / Range
Financial Instruments	Valuation Techniques	Unobservable Inputs	September 30, 2017		December 31, 2016
Corporate Bonds (TPS securities)	Discounted cash flows	Discount rate	6.33	%	6.00	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.33	%	6.00	%
Impaired loans	Collateral Valuations	Discount to appraised value	8.5% to 9.0%		n/a
REO	Appraisals	Discount to appraised value	17.0% to 42.0%		0% to 45%

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

The following tables provide 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, 2017 and 2016 (in thousands):



	Three Months Ended				Nine Months Ended
	September 30, 2017				September 30, 2017
	Level 3 Fair Value Inputs				Level 3 Fair Value Inputs
	TPS Securities		Borrowings—Junior Subordinated Debentures		TPS Securities		Borrowings— Junior Subordinated Debentures
Beginning balance	$	21,568	$	96,852	$	21,143	$	95,200
Total gains or losses recognized
Assets gains	107		—		532		—
Liabilities losses	—		428		—		2,080
Ending balance at September 30, 2017	$	21,675	$	97,280	$	21,675	$	97,280

	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

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



	September 30, 2017
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	7,494	$	—	$	7,494
REO	—		—		1,496		1,496

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

The following table presents the losses resulting from non-recurring fair value adjustments for the three and nine months ended September 30, 2017 and 2016 (in thousands):



	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Impaired loans	$	(1,584	)	$	(128	)	$	(2,059	)	$	(182	)
REO	—			(168		)	(256		)	(599		)
Total loss from non-recurring measurements	$	(1,584	)	$	(296	)	$	(2,315	)	$	(781	)