FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019, whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands):



		March 31, 2020				December 31, 2019
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	295,001	$	295,001	$	307,735	$	307,735
Securities—trading	3	21,040		21,040		25,636		25,636
Securities—available-for-sale	2	1,608,224		1,608,224		1,551,557		1,551,557
Securities—held-to-maturity	2	435,119		446,412		233,241		234,952
Securities—held-to-maturity	3	2,825		2,825		2,853		2,853
Loans held for sale	2	182,428		182,766		210,447		210,670
Loans receivable	3	9,285,744		9,272,174		9,305,357		9,304,340
FHLB stock	3	20,247		20,247		28,342		28,342
Bank-owned life insurance	1	193,140		193,140		192,088		192,088
Mortgage servicing rights	3	14,277		20,931		14,148		22,611
Derivatives:
Interest rate swaps	2	42,687		42,687		15,202		15,202
Interest rate lock and forward sales commitments	2,3	3,325		3,325		1,108		1,108
Liabilities:
Demand, interest checking and money market accounts	2	7,285,966		7,285,966		6,994,197		6,994,197
Regular savings	2	1,997,265		1,997,265		1,934,041		1,934,041
Certificates of deposit	2	1,166,306		1,173,126		1,120,403		1,117,921
FHLB advances	2	247,000		251,978		450,000		452,720
Other borrowings	2	128,764		128,764		118,474		118,474
Junior subordinated debentures	3	99,795		99,795		119,304		119,304
Derivatives:
Interest rate swaps	2	23,280		23,280		10,966		10,966
Interest rate lock and forward sales commitments	2	4,448		4,448		674		674

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 March 31, 2020 and December 31, 2019 (in thousands):



	March 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)	$	—	$	—	$	21,040	$	21,040

Securities—available-for-sale
U.S. Government and agency obligations	—		81,763		—		81,763
Municipal bonds	—		181,039		—		181,039
Corporate bonds	—		30,986		—		30,986
Mortgage-backed or related securities	—		1,306,799		—		1,306,799
Asset-backed securities	—		7,637		—		7,637
	—		1,608,224		—		1,608,224

Loans held for sale	—		169,239		—		169,239

Derivatives
Interest rate swaps	—		42,687		—		42,687
Interest rate lock and forward sales commitments	—		808		2,517		3,325
	$	—	$	1,820,958	$	23,557	$	1,844,515

Liabilities:
Junior subordinated debentures, net of unamortized deferred issuance costs	$	—	$	—	$	99,795	$	99,795
Derivatives
Interest rate swaps	—		23,280		—		23,280
Interest rate lock and forward sales commitments	—		4,448		—		4,448
	$	—	$	27,728	$	99,795	$	127,523



	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)	$	—	$	—	$	25,636	$	25,636

Securities—available-for-sale
U.S. Government and agency obligations	—		89,598		—		89,598
Municipal bonds	—		107,157		—		107,157
Corporate bonds	—		4,365		—		4,365
Mortgage-backed securities	—		1,342,311		—		1,342,311
Asset-backed securities	—		8,126		—		8,126
	—		1,551,557		—		1,551,557

Loans held for sale	—		199,397		—		199,397
Equity securities	—		—		—		—

Derivatives
Interest rate swaps	—		15,202		—		15,202
Interest rate lock and forward sales commitments	—		317		791		1,108
	$	—	$	1,766,473	$	26,427	$	1,792,900

Liabilities:
Junior subordinated debentures, net of unamortized deferred issuance costs	$	—	$	—	$	119,304	$	119,304
Derivatives
Interest rate swaps	—		10,966		—		10,966
Interest rate lock and forward sales commitments	—		674		—		674
	$	—	$	11,640	$	119,304	$	130,944

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 March 31, 2020 and December 31, 2019:



			Weighted Average Rate / Range
Financial Instruments	Valuation Techniques	Unobservable Inputs	March 31, 2020		December 31, 2019
Corporate bonds (TPS securities)	Discounted cash flows	Discount rate	6.70	%	5.91	%
Junior subordinated debentures	Discounted cash flows	Discount rate	6.70	%	5.91	%
Loans individually evaluated	Collateral valuations	Discount to appraised value	0.0% to 20.0%		0.0% to 20.0%
REO	Appraisals	Discount to appraised value	52.03	%	58.50	%
Interest rate lock commitments	Pricing model	Pull-through rate	84.19	%	89.61	%

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 months ended March 31, 2020 and 2019 (in thousands):



	Three Months Ended
	March 31, 2020
	Level 3 Fair Value Inputs
	TPS Securities			Borrowings—Junior Subordinated Debentures
Beginning balance	$	25,636		$	119,304
Total gains or losses recognized
Assets losses	(4,596		)	—
Liabilities gains	—			(19,509		)
Ending balance at March 31, 2020	$	21,040		$	99,795

	Three Months Ended
	March 31, 2019
	Level 3 Fair Value Inputs
	TPS Securities			Borrowings—Junior Subordinated Debentures
Beginning balance	$	25,896		$	114,091
Total gains or losses recognized
Assets gains	(58		)	—
Liabilities losses	—			(174		)
Ending balance at March 31, 2019	$	25,838		$	113,917

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 March 31, 2020 and December 31, 2019 (in thousands):



	March 31, 2020
	Level 1		Level 2		Level 3		Total
Loans individually evaluated	$	—	$	—	$	19,954	$	19,954
REO	—		—		2,402		2,402

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	14,853	$	14,853
REO	—		—		814		814

The following table presents the losses resulting from non-recurring fair value adjustments for the three months ended March 31, 2020 and 2019 (in thousands):



	Three Months Ended March 31,
	2020		2019
Loans individually evaluated	$	—	$	(300	)
REO	—		—
Total loss from non-recurring measurements	$	—	$	(300	)