XML 41 R31.htm IDEA: XBRL DOCUMENT v3.20.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
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, 2020 and December 31, 2019, whether or not measured at fair value in the Consolidated Statements of Financial Condition (dollars in thousands):
 September 30, 2020December 31, 2019
 LevelCarrying
Value		Estimated
Fair Value		Carrying
Value		Estimated
Fair Value
Assets:    
Cash and cash equivalents1$705,538 $705,538 $307,735 $307,735 
Securities—trading323,276 23,276 25,636 25,636 
Securities—available-for-sale21,758,384 1,758,384 1,551,557 1,551,557 
Securities—held-to-maturity2426,380 448,051 233,241 234,952 
Securities—held-to-maturity32,755 2,755 2,853 2,853 
Loans held for sale2185,938 186,544 210,447 210,670 
Loans receivable310,163,917 10,091,600 9,305,357 9,304,340 
Equity securities1450,255 450,255 — — 
FHLB stock316,363 16,363 28,342 28,342 
Bank-owned life insurance1191,755 191,755 192,088 192,088 
Mortgage servicing rights314,815 17,954 14,148 22,611 
Derivatives:
Interest rate swaps
243,506 43,506 15,202 15,202 
Interest rate lock and forward sales commitments
2,310,473 10,473 1,108 1,108 
Liabilities:    
Demand, interest checking and money market accounts28,967,702 8,967,702 6,994,197 6,994,197 
Regular savings22,332,287 2,332,287 1,934,041 1,934,041 
Certificates of deposit2915,352 921,332 1,120,403 1,117,921 
FHLB advances2150,000 153,661 450,000 452,720 
Other borrowings2176,983 176,983 118,474 118,474 
Subordinated notes, net398,114 98,114 — — 
Junior subordinated debentures3109,821 109,821 119,304 119,304 
Derivatives:
Interest rate swaps
223,927 23,927 10,966 10,966 
Interest rate lock and forward sales commitments
21,510 1,510 674 674 
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2020 and December 31, 2019 (in thousands):
 September 30, 2020
 Level 1Level 2Level 3Total
Assets:    
Securities—trading    
Corporate bonds (Trust Preferred Securities)$— $— $23,276 $23,276 
Securities—available-for-sale    
U.S. Government and agency obligations— 169,913 — 169,913 
Municipal bonds— 272,408 — 272,408 
Corporate bonds— 55,971 — 55,971 
Mortgage-backed or related securities— 1,250,500 — 1,250,500 
Asset-backed securities— 9,592 — 9,592 
 — 1,758,384 — 1,758,384 
Loans held for sale— 152,996 — 152,996 
Equity securities450,255 — — 450,255 
Derivatives    
Interest rate swaps— 43,506 — 43,506 
Interest rate lock and forward sales commitments— 2,019 8,454 10,473 
$450,255 $1,956,905 $31,730 $2,438,890 
Liabilities:    
Junior subordinated debentures
$— $— $109,821 $109,821 
Derivatives    
Interest rate swaps— 23,927 — 23,927 
Interest rate lock and forward sales commitments— 1,510 — 1,510 
 $— $25,437 $109,821 $135,258 
 December 31, 2019
 Level 1Level 2Level 3Total
Assets:    
Securities—trading    
Corporate bonds (Trust Preferred Securities)$— $— $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 
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 September 30, 2020 and December 31, 2019:
Weighted Average Rate / Range
Financial InstrumentsValuation TechniquesUnobservable InputsSeptember 30, 2020December 31, 2019
Corporate bonds (TPS securities)Discounted cash flowsDiscount rate4.73 %5.91 %
Junior subordinated debenturesDiscounted cash flowsDiscount rate4.73 %5.91 %
Loans individually evaluatedCollateral valuationsDiscount to appraised value
0.0% to 20.0%
0.0% to 20.0%
REOAppraisalsDiscount to appraised value48.52 %58.50 %
Interest rate lock commitmentsPricing modelPull-through rate87.05 %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 and nine months ended September 30, 2020 and 2019 (in thousands):
Three Months EndedNine Months Ended
September 30, 2020September 30, 2020
 Level 3 Fair Value InputsLevel 3 Fair Value Inputs
 TPS SecuritiesBorrowings—Junior Subordinated DebenturesInterest rate lock and forward sales commitmentsTPS SecuritiesBorrowings—
Junior
Subordinated
Debentures		Interest rate lock and forward sales commitments
Beginning balance$23,239 $109,613 $5,816 $25,636 $119,304 $791 
Total gains or losses recognized    
Assets gains (losses)37 — 2,638 (2,360)— 7,663 
Liabilities losses (gains)— 208 — — (9,483)— 
Ending balance at September 30, 2020$23,276 $109,821 $8,454 $23,276 $109,821 $8,454 
Three Months EndedNine Months Ended
September 30, 2019September 30, 2019
 Level 3 Fair Value InputsLevel 3 Fair Value Inputs
 TPS SecuritiesBorrowings—Junior Subordinated DebenturesInterest rate lock and forward sales commitmentsTPS SecuritiesBorrowings—
Junior
Subordinated
Debentures		Interest rate lock and forward sales commitments
Beginning balance$25,741 $113,621 $1,373 $25,896 $114,091 $273 
Total gains or losses recognized    
Assets (losses) gains(69)— 33 (224)— 1,133 
Liabilities gains— (204)— — (674)— 
Ending balance at September 30, 2019$25,672 $113,417 $1,406 $25,672 $113,417 $1,406 
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The following tables present financial assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2020 and December 31, 2019 (in thousands):
 September 30, 2020
 Level 1Level 2Level 3Total
Loans individually evaluated$— $— $12,131 $12,131 
REO— — 1,795 1,795 
 December 31, 2019
 Level 1Level 2Level 3Total
Impaired loans$— $— $14,853 $14,853 
REO— — 814 814 
The following table presents the losses resulting from non-recurring fair value adjustments for the three and nine months ended September 30, 2020 and 2019 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Loans individually evaluated$(492)$— $(2,492)$(425)
REO— — — — 
Total loss from non-recurring measurements$(492)$— $(2,492)$(425)