FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2019

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, 2019 and December 31, 2018, whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands):



		June 30, 2019				December 31, 2018
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	187,043	$	187,043	$	272,196	$	272,196
Securities—trading	3	25,741		25,741		25,896		25,896
Securities—available-for-sale	2	1,561,009		1,561,009		1,636,223		1,636,223
Securities—held-to-maturity	2	200,054		203,749		230,984		229,301
Securities—held-to-maturity	3	3,168		3,168		3,236		3,236
Loans held for sale	2	170,744		171,385		171,031		171,157
Loans receivable	3	8,746,550		8,804,689		8,684,595		8,629,450
FHLB stock	3	34,583		34,583		31,955		31,955
Bank-owned life insurance	1	178,922		178,922		177,467		177,467
Mortgage servicing rights	3	13,998		22,030		14,638		25,813
Equity securities	1	—		—		352		352
Derivatives:
Interest rate swaps	2	13,604		13,604		3,138		3,138
Interest rate lock and forward sales commitments	2	1,545		1,545		471		471
Liabilities:
Demand, interest checking and money market accounts	2	6,370,149		6,370,149		6,314,202		6,314,202
Regular savings	2	1,848,048		1,848,048		1,842,581		1,842,581
Certificates of deposit	2	1,070,770		1,065,200		1,320,265		1,298,238
FHLB advances	2	606,000		609,464		540,189		540,189
Other borrowings	2	118,370		118,370		118,995		118,995
Junior subordinated debentures	3	113,621		113,621		114,091		114,091
Derivatives:
Interest rate swaps	2	11,067		11,067		3,138		3,138
Interest rate lock and forward sales commitments	2	1,080		1,080		1,654		1,654

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, 2019 and December 31, 2018 (in thousands):



	June 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)	$	—	$	—	$	25,741	$	25,741
	—		—		25,741		25,741
Securities—available-for-sale
U.S. Government and agency obligations	—		125,068		—		125,068
Municipal bonds	—		110,910		—		110,910
Corporate bonds	—		4,561		—		4,561
Mortgage-backed or related securities	—		1,312,433		—		1,312,433
Asset-backed securities	—		8,037		—		8,037
	—		1,561,009		—		1,561,009

Loans held for sale	—		149,691		—		149,691

Derivatives
Interest rate swaps	—		13,604		—		13,604
Interest rate lock and forward sales commitments	—		1,545		—		1,545
	$	—	$	1,725,849	$	25,741	$	1,751,590

Liabilities:
Junior subordinated debentures, net of unamortized deferred issuance costs	$	—	$	—	$	113,621	$	113,621
Derivatives
Interest rate swaps	—		11,067		—		11,067
Interest rate lock and forward sales commitments	—		1,080		—		1,080
	$	—	$	12,147	$	113,621	$	125,768



	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)	$	—	$	—	$	25,896	$	25,896
	—		—		25,896		25,896
Securities—available-for-sale
U.S. Government and agency obligations	—		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, net of unamortized deferred issuance costs	$	—	$	—	$	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

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, 2019 and December 31, 2018:



			Weighted Average Rate / Range
Financial Instruments	Valuation Techniques	Unobservable Inputs	June 30, 2019		December 31, 2018
Corporate bonds (TPS securities)	Discounted cash flows	Discount rate	6.32	%	6.81	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.32	%	6.81	%
Impaired loans	Collateral Valuations	Discount to appraised value	8.50% to 9.00%		0.0% to 8.50%
REO	Appraisals	Discount to appraised value	32.00	%	69.20	%

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, 2019 and 2018 (in thousands):



	Three Months Ended						Six Months Ended
	June 30, 2019						June 30, 2019
	Level 3 Fair Value Inputs						Level 3 Fair Value Inputs
	TPS Securities			Borrowings—Junior Subordinated Debentures			TPS Securities			Borrowings— Junior Subordinated Debentures
Beginning balance	$	25,838		$	113,917		$	25,896		$	114,091
Total gains or losses recognized
Assets losses	(97		)	—			(155		)	—
Liabilities gains	—			(296		)	—			(470		)
Ending balance at June 30, 2019	$	25,741		$	113,621		$	25,741		$	113,621

	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	—			258			—			14,067
Ending balance at June 30, 2018	$	25,540		$	112,774		$	25,540		$	112,774

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, 2019 and December 31, 2018 (in thousands):



	June 30, 2019
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	1,225	$	1,225
REO	—		—		2,513		2,513

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

The following table presents the losses resulting from non-recurring fair value adjustments for the three and six months ended June 30, 2019 and 2018 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Impaired loans	$	(125	)	$	(329	)	$	(425	)	$	(329	)
REO	—			—			—			(160		)
Total loss from non-recurring measurements	$	(125	)	$	(329	)	$	(425	)	$	(489	)