FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

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



		September 30, 2018				December 31, 2017
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	248,661	$	248,661	$	261,200	$	261,200
Securities—trading	2,3	25,764		25,764		22,318		22,318
Securities—available-for-sale	2	1,412,273		1,412,273		919,485		919,485
Securities—held-to-maturity	2	255,429		250,824		256,793		258,710
Securities—held-to-maturity	3	3,270		3,270		3,478		3,478
Loans held for sale	2	72,850		72,924		40,725		40,923
Loans receivable	3	7,822,519		7,693,348		7,598,884		7,445,990
FHLB stock	3	19,196		19,196		10,334		10,334
Bank-owned life insurance	1	163,265		163,265		162,668		162,668
Mortgage servicing rights	3	14,521		23,890		14,738		19,835
Equity securities	1	416		416		—		—
Derivatives:
Interest rate swaps	2	6,385		6,385		5,083		5,083
Interest rate lock and forward sales commitments	2	580		580		523		523
Liabilities:
Demand, interest checking and money market accounts	2	5,877,590		5,877,590		5,658,994		5,658,994
Regular savings	2	1,627,560		1,627,560		1,557,500		1,557,500
Certificates of deposit	2	1,180,674		1,164,982		966,937		947,517
FHLB advances	2	221,184		221,184		202		202
Other borrowings	2	98,979		98,979		95,860		95,860
Junior subordinated debentures	3	113,110		113,110		98,707		98,707
Derivatives:
Interest rate swaps	2	6,385		6,385		5,083		5,083
Interest rate lock and forward sales commitments	2	24		24		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 September 30, 2018 and December 31, 2017 (in thousands):



	September 30, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Municipal bonds	$	—	$	100	$	—	$	100
Corporate bonds (Trust Preferred Securities)	—		—		25,664		25,664
	—		100		25,664		25,764
Securities—available-for-sale
U.S. Government and agency obligations	—		136,308		—		136,308
Municipal bonds	—		65,986		—		65,986
Corporate bonds	—		5,040		—		5,040
Mortgage-backed or related securities	—		1,182,518		—		1,182,518
Asset-backed securities	—		22,421		—		22,421
	—		1,412,273		—		1,412,273

Loans held for sale	—		67,128		—		67,128
Equity securities	—		416		—		416

Derivatives
Interest rate swaps	—		6,385		—		6,385
Interest rate lock and forward sales commitments	—		580		—		580
	$	—	$	1,486,882	$	25,664	$	1,512,546

Liabilities:
Junior subordinated debentures, net of unamortized deferred issuance costs	$	—	$	—	$	113,110	$	113,110
Derivatives
Interest rate swaps	—		6,385		—		6,385
Interest rate lock and forward sales commitments	—		24		—		24
	$	—	$	6,409	$	113,110	$	119,519



	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 September 30, 2018 and December 31, 2017:



			Weighted Average Rate / Range
Financial Instruments	Valuation Techniques	Unobservable Inputs	September 30, 2018		December 31, 2017
Corporate bonds (TPS securities)	Discounted cash flows	Discount rate	6.40	%	6.69	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.40	%	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	63.9	%	42.0	%

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, 2018 and 2017 (in thousands):



	Three Months Ended				Nine Months Ended
	September 30, 2018				September 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	$	25,540	$	112,774	$	22,058	$	98,707
Total gains or losses recognized
Assets gains	86		—		3,568		—
Liabilities losses⁽¹⁾	—		336		—		14,403
Ending balance at September 30, 2018	$	25,626	$	113,110	$	25,626	$	113,110

	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

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



	September 30, 2018
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	1,488	$	1,488
REO	—		—		364		364

	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 nine months ended September 30, 2018 and 2017 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Impaired loans	$	(102	)	$	(1,584	)	$	(431	)	$	(2,059	)
REO	(27		)	—			(187		)	(256		)
Total loss from non-recurring measurements	$	(129	)	$	(1,584	)	$	(618	)	$	(2,315	)