FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 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 September 30, 2019 and December 31, 2018, whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands):



		September 30, 2019				December 31, 2018
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	324,456	$	324,456	$	272,196	$	272,196
Securities—trading	3	25,672		25,672		25,896		25,896
Securities—available-for-sale	2	1,539,908		1,539,908		1,636,223		1,636,223
Securities—held-to-maturity	2	226,921		230,586		230,984		229,301
Securities—held-to-maturity	3	3,135		3,135		3,236		3,236
Loans held for sale	2	244,889		245,315		171,031		171,157
Loans receivable	3	8,835,368		8,890,803		8,684,595		8,629,450
FHLB stock	3	25,623		25,623		31,955		31,955
Bank-owned life insurance	1	179,076		179,076		177,467		177,467
Mortgage servicing rights	3	13,797		21,390		14,638		25,813
Equity securities	1	—		—		352		352
Derivatives:
Interest rate swaps	2	19,289		19,289		3,138		3,138
Interest rate lock and forward sales commitments	2	1,918		1,918		471		471
Liabilities:
Demand, interest checking and money market accounts	2	6,646,341		6,646,341		6,314,202		6,314,202
Regular savings	2	1,863,839		1,863,839		1,842,581		1,842,581
Certificates of deposit	2	1,218,591		1,215,147		1,320,265		1,298,238
FHLB advances	2	382,000		385,521		540,189		540,189
Other borrowings	2	120,014		120,014		118,995		118,995
Junior subordinated debentures	3	113,417		113,417		114,091		114,091
Derivatives:
Interest rate swaps	2	14,399		14,399		3,138		3,138
Interest rate lock and forward sales commitments	2	293		293		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 September 30, 2019 and December 31, 2018 (in thousands):



	September 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)	$	—	$	—	$	25,672	$	25,672
	—		—		25,672		25,672
Securities—available-for-sale
U.S. Government and agency obligations	—		109,996		—		109,996
Municipal bonds	—		108,349		—		108,349
Corporate bonds	—		3,766		—		3,766
Mortgage-backed or related securities	—		1,310,099		—		1,310,099
Asset-backed securities	—		7,698		—		7,698
	—		1,539,908		—		1,539,908

Loans held for sale	—		225,644		—		225,644

Derivatives
Interest rate swaps	—		19,289		—		19,289
Interest rate lock and forward sales commitments	—		1,918		—		1,918
	$	—	$	1,786,759	$	25,672	$	1,812,431

Liabilities:
Junior subordinated debentures, net of unamortized deferred issuance costs	$	—	$	—	$	113,417	$	113,417
Derivatives
Interest rate swaps	—		14,399		—		14,399
Interest rate lock and forward sales commitments	—		293		—		293
	$	—	$	14,692	$	113,417	$	128,109



	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 September 30, 2019 and December 31, 2018:



			Weighted Average Rate / Range
Financial Instruments	Valuation Techniques	Unobservable Inputs	September 30, 2019		December 31, 2018
Corporate bonds (TPS securities)	Discounted cash flows	Discount rate	6.09	%	6.81	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.09	%	6.81	%
Impaired loans	Collateral Valuations	Discount to appraised value	—	%	0.0% to 8.50%
REO	Appraisals	Discount to appraised value	58.52	%	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 nine months ended September 30, 2019 and 2018 (in thousands):



	Three Months Ended						Nine Months Ended
	September 30, 2019						September 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	$	25,741		$	113,621		$	25,896		$	114,091
Total gains or losses recognized
Assets losses	(69		)	—			(224		)	—
Liabilities gains	—			(204		)	—			(674		)
Ending balance at September 30, 2019	$	25,672		$	113,417		$	25,672		$	113,417

	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	—			336			—			14,403
Ending balance at September 30, 2018	$	25,626		$	113,110		$	25,626		$	113,110

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



	September 30, 2019
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	78	$	78

	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 nine months ended September 30, 2019 and 2018 (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
Impaired loans	$	—	$	(102	)	$	(425	)	$	(431	)
REO	—		(27		)	—			(187		)
Total loss from non-recurring measurements	$	—	$	(129	)	$	(425	)	$	(618	)