FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2018

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 June 30, 2018 and December 31, 2017, whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands):



		June 30, 2018				December 31, 2017
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	249,425	$	249,425	$	261,200	$	261,200
Securities—trading	2,3	25,640		25,640		22,318		22,318
Securities—available-for-sale	2	1,400,312		1,400,312		919,485		919,485
Securities—held-to-maturity	2	259,871		257,013		256,793		258,710
Securities—held-to-maturity	3	3,305		3,305		3,478		3,478
Loans held for sale	2	78,833		78,950		40,725		40,923
Loans receivable	3	7,684,732		7,567,722		7,598,884		7,445,990
FHLB stock	3	19,916		19,916		10,334		10,334
Bank-owned life insurance	1	164,225		164,225		162,668		162,668
Mortgage servicing rights	3	14,521		23,363		14,738		19,835
Equity securities	1	461		461		—		—
Derivatives:
Interest rate swaps	2	5,682		5,682		5,083		5,083
Interest rate lock and forward sales commitments	2	501		501		523		523
Liabilities:
Demand, interest checking and money market accounts	2	5,743,980		5,743,980		5,658,994		5,658,994
Regular savings	2	1,635,080		1,635,080		1,557,500		1,557,500
Certificates of deposit	2	1,148,607		1,133,081		966,937		947,517
FHLB advances	2	239,190		239,190		202		202
Other borrowings	2	112,458		112,458		95,860		95,860
Junior subordinated debentures	3	112,774		112,774		98,707		98,707
Derivatives:
Interest rate swaps	2	5,682		5,682		5,083		5,083
Interest rate lock and forward sales commitments	2	416		416		201		201

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 June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Municipal bonds	$	—	$	100	$	—	$	100
Corporate bonds (Trust Preferred Securities)	—		—		25,540		25,540
	—		100		25,540		25,640
Securities—available-for-sale
U.S. Government and agency obligations	—		141,025		—		141,025
Municipal bonds	—		65,044		—		65,044
Corporate bonds	—		5,038		—		5,038
Mortgage-backed or related securities	—		1,162,420		—		1,162,420
Asset-backed securities	—		26,785		—		26,785
	—		1,400,312		—		1,400,312

Loans held for sale	—		75,828		—		75,828
Equity securities	—		461		—		461

Derivatives
Interest rate swaps	—		5,682		—		5,682
Interest rate lock and forward sales commitments	—		501		—		501
	$	—	$	1,482,884	$	25,540	$	1,508,424

Liabilities:
Junior subordinated debentures, net of unamortized deferred issuance costs	$	—	$	—	$	112,774	$	112,774
Derivatives
Interest rate swaps	—		5,682		—		5,682
Interest rate lock and forward sales commitments	—		416		—		416
	$	—	$	6,098	$	112,774	$	118,872



	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Municipal bonds	$	—	$	100	$	—	$	100
Corporate Bonds (Trust Preferred Securities)	—		—		22,058		22,058
Equity securities	—		160		—		160
	—		260		22,058		22,318
Securities—available-for-sale
U.S. Government and agency obligations	—		72,466		—		72,466
Municipal bonds	—		68,733		—		68,733
Corporate bonds	—		5,393		—		5,393
Mortgage-backed securities	—		739,557		—		739,557
Asset-backed securities	—		27,758		—		27,758
Equity securities	—		5,578		—		5,578
	—		919,485		—		919,485

Loans held for sale	—		32,392		—		32,392

Derivatives
Interest rate swaps	—		5,083		—		5,083
Interest rate lock and forward sales commitments	—		523		—		523
	$	—	$	957,743	$	22,058	$	979,801

Liabilities:
Junior subordinated debentures, net of unamortized deferred issuance costs	$	—	$	—	$	98,707	$	98,707
Derivatives
Interest rate swaps	—		5,083		—		5,083
Interest rate lock and forward sales commitments	—		201		—		201
	$	—	$	5,284	$	98,707	$	103,991

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 June 30, 2018 and December 31, 2017:



			Weighted Average Rate / Range
Financial Instruments	Valuation Techniques	Unobservable Inputs	June 30, 2018		December 31, 2017
Corporate Bonds (TPS securities)	Discounted cash flows	Discount rate	6.34	%	6.69	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.34	%	6.69	%
Impaired loans	Collateral Valuations	Discount to appraised value	8.5% to 20.0%		8.5% to 20.0%
REO	Appraisals	Discount to appraised value	61	%	42	%

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 six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended				Six Months Ended
	June 30, 2018				June 30, 2018
	Level 3 Fair Value Inputs				Level 3 Fair Value Inputs
	TPS Securities		Borrowings—Junior Subordinated Debentures		TPS Securities		Borrowings— Junior Subordinated Debentures
Beginning balance	$	25,474	$	112,516	$	22,058	$	98,707
Total gains or losses recognized
Assets gains	66		—		3,482		—
Liabilities losses⁽¹⁾	—		258		—		14,067
Ending balance at June 30, 2018	$	25,540	$	112,774	$	25,540	$	112,774

	Three Months Ended				Six Months Ended
	June 30, 2017				June 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	$	21,361	$	96,040	$	21,143	$	95,200
Total gains or losses recognized
Assets gains	207		—		425		—
Liabilities losses	—		812		—		1,652
Ending balance at June 30, 2017	$	21,568	$	96,852	$	21,568	$	96,852

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 June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	1,928	$	1,928
REO	—		—		473		473

	December 31, 2017
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	6,535	$	6,535
REO	—		—		360		360

The following table presents the losses resulting from non-recurring fair value adjustments for the three and six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Impaired loans	$	(329	)	$	(475	)	$	(329	)	$	(475	)
REO	—			(206		)	(160		)	(256		)
Total loss from non-recurring measurements	$	(329	)	$	(681	)	$	(489	)	$	(731	)