FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2018 and 2017, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (in thousands):



		December 31, 2018				December 31, 2017
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	272,196	$	272,196	$	261,200	$	261,200
Securities—trading	2,3	25,896		25,896		22,318		22,318
Securities—available-for-sale	2	1,636,223		1,636,223		919,485		919,485
Securities—held-to-maturity	2	230,984		229,301		256,793		258,710
Securities—held-to-maturity	3	3,236		3,236		3,478		3,478
Loans receivable held for sale	2	171,031		171,157		40,725		40,923
Loans receivable	3	8,684,595		8,629,450		7,598,884		7,445,990
FHLB stock	3	31,955		31,955		10,334		10,334
Bank-owned life insurance	1	177,467		177,467		162,668		162,668
Mortgage servicing rights	3	14,638		25,813		14,738		19,835
Equity securities	1	352		352		—		—
Derivatives:
Interest rate swaps	2	3,138		3,138		5,083		5,083
Interest rate lock and forward sales commitments	2	471		471		523		523
Liabilities:
Demand, interest-bearing checking and money market	2	6,314,202		6,314,202		5,658,994		5,658,994
Regular savings	2	1,842,581		1,842,581		1,557,500		1,557,500
Certificates of deposit	2	1,320,265		1,298,238		966,937		947,517
Advances from FHLB	2	540,189		540,189		202		202
Junior subordinated debentures at fair value	3	114,091		114,091		98,707		98,707
Other borrowings	2	118,995		118,995		95,860		95,860
Derivatives:
Interest rate swaps	2	3,138		3,138		5,083		5,083
Interest rate lock and forward sales commitments	2	1,654		1,654		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 December 31, 2018 and 2017 (in thousands):



	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Corporate Bonds (TPS securities)	$	—	$	—	$	25,896	$	25,896
	—		—		25,896		25,896

Securities—available-for-sale
U.S. Government and agency	—		149,112		—		149,112
Municipal bonds	—		117,822		—		117,822
Corporate bonds	—		3,495		—		3,495
Mortgage-backed securities	—		1,343,861		—		1,343,861
Asset-backed securities	—		21,933		—		21,933
	—		1,636,223		—		1,636,223

Loans held for sale	—		164,767		—		164,767
Equity securities	—		352		—		352

Derivatives
Interest rate swaps	—		3,138		—		3,138
Interest rate lock and forward sales commitments	—		471		—		471
	$	—	$	1,804,951	$	25,896	$	1,830,847
Liabilities
Junior subordinated debentures at fair value	$	—	$	—	$	114,091	$	114,091
Derivatives
Interest rate swaps	—		3,138		—		3,138
Interest rate lock and forward sales commitments	—		1,654		—		1,654
	$	—	$	4,792	$	114,091	$	118,883



	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Municipal bonds	$	—	$	100	$	—	$	100
Corporate Bonds (TPS securities)	—		—		22,058		22,058
Equity securities	—		160		—		160
	—		260		22,058		22,318
Securities—available-for-sale
U.S. Government and agency	—		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 at fair value	$	—	$	—	$	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, quantitative and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at December 31, 2018 and 2017:



			December 31
			2018		2017
Financial Instruments	Valuation Technique	Unobservable Inputs	Weighted Average Rate		Weighted Average Rate
Corporate bonds (TPS securities)	Discounted cash flows	Discount rate	6.81	%	6.69	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.81	%	6.69	%
Impaired loans	Collateral Valuations	Discount to appraised value	0.0% to 8.5%		8.5% to 20.0%
REO	Appraisals	Discount to appraised value	69.2	%	42.0	%

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



	Level 3 Fair Value Inputs
	TPS Securities		Borrowings— Junior Subordinated Debentures
Balance at January 1, 2017	$	21,143	$	95,200
Total gains or losses recognized
Assets gains	915		—
Liabilities losses	—		3,507
Balance at December 31, 2017	22,058		98,707
Total gains or losses recognized
Assets gains	3,838		—
Liabilities losses	—		15,384
Balance at December 31, 2018	$	25,896	$	114,091

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

The following table presents financial assets and liabilities 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 at December 31, 2018 and 2017 (in thousands):



	December 31, 2018
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	2,915	$	2,915
REO	$	—	$	—	$	2,611	$	2,611

	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 years ended December 31, 2018, 2017 and 2016 (in thousands):



	For the years ended December 31,
	2018			2017			2016
Impaired loans	$	(910	)	$	(2,852	)	$	(182	)
REO	(387		)	(256		)	(876		)
Total loss from nonrecurring measurements	$	(1,297	)	$	(3,108	)	$	(1,058	)