FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021 and 2020, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (in thousands):


		December 31, 2021				December 31, 2020
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	2,134,300	$	2,134,300	$	1,234,183	$	1,234,183
Securities—trading	3	26,981		26,981		24,980		24,980
Securities—available-for-sale	2	3,638,993		3,638,993		2,322,593		2,322,593
Securities—held-to-maturity	2	464,008		484,483		410,038		436,882
Securities—held-to-maturity	3	57,347		57,370		11,769		11,799
Securities purchased under agreements to resell	2	300,000		300,000		—		—
Loans held for sale	2	96,487		96,914		243,795		245,667
Loans receivable	3	9,084,763		9,100,516		9,870,982		9,810,293

FHLB stock	3	12,000		12,000		16,358		16,358
Bank-owned life insurance	1	244,156		244,156		191,830		191,830
Mortgage servicing rights	3	16,045		24,393		15,223		18,084
SBA servicing rights	3	1,161		1,161		—		—
Investments in limited partnerships	3	10,257		10,257		2,819		2,819
Derivatives:
Interest rate swaps	2	20,826		20,826		39,066		39,066
Interest rate lock and forward sales commitments	2,3	1,555		1,555		5,641		5,641
Liabilities:
Demand, interest checking and money market accounts	2	10,703,586		10,703,586		9,253,494		9,253,494
Regular savings	2	2,784,716		2,784,716		2,398,482		2,398,482
Certificates of deposit	2	838,631		836,877		915,320		919,920
FHLB advances	2	50,000		50,287		150,000		152,779
Other borrowings	2	264,490		264,490		184,785		184,785
Subordinated notes, net	2	98,564		105,241		98,201		98,201
Junior subordinated debentures	3	119,815		119,815		116,974		116,974
Derivatives:
Interest rate swaps	2	11,336		11,336		22,336		22,336
Interest rate swaps used in cash flow hedges	2	279		279		—		—
Interest rate lock and forward sales commitments	2	140		140		1,755		1,755

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, 2021 and 2020 (in thousands):


	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading


Corporate bonds (TPS securities)	$	—	$	—	$	26,981	$	26,981




Securities—available-for-sale
U.S. Government and agency	—		201,332		—		201,332
Municipal bonds	—		308,612		—		308,612
Corporate bonds	—		117,347		—		117,347
Mortgage-backed or related securities	—		2,805,268		—		2,805,268
Asset-backed securities	—		206,434		—		206,434

	—		3,638,993		—		3,638,993

Loans held for sale(1)	—		39,775		—		39,775
SBA servicing rights	—		—		1,161		1,161
Investment in limited partnerships	—		—		10,257		10,257


Derivatives
Interest rate swaps	—		20,826		—		20,826
Interest rate lock and forward sales commitments	—		88		1,467		1,555
	$	—	$	3,699,682	$	39,866	$	3,739,548
Liabilities

Junior subordinated debentures	$	—	$	—	$	119,815	$	119,815
Derivatives
Interest rate swaps	—		11,336		—		11,336
Interest rate swaps used in cash flow hedges	—		279		—		279
Interest rate lock and forward sales commitments	—		140		—		140

	$	—	$	11,755	$	119,815	$	131,570


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading


Corporate bonds (TPS securities)	$	—	$	—	$	24,980	$	24,980




Securities—available-for-sale
U.S. Government and agency	—		141,735		—		141,735
Municipal bonds	—		303,518		—		303,518
Corporate bonds	—		221,769		—		221,769
Mortgage-backed or related securities	—		1,646,152		—		1,646,152
Asset-backed securities	—		9,419		—		9,419
	—		2,322,593		—		2,322,593

Loans held for sale(1)	—		133,554		—		133,554
Investment in limited partnerships	—		—		2,819		2,819


Derivatives
Interest rate swaps	—		39,066		—		39,066
Interest rate lock and forward sales commitments	—		420		5,221		5,641
	$	—	$	2,495,633	$	33,020	$	2,528,653
Liabilities

Junior subordinated debentures	$	—	$	—	$	116,974	$	116,974
Derivatives
Interest rate swaps	—		22,336		—		22,336
Interest rate lock and forward sales commitments	—		1,755		—		1,755
	$	—	$	24,091	$	116,974	$	141,065

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, 2021 and 2020:

December 31

2021

2020

Financial Instruments

Valuation Technique

Unobservable Inputs

Weighted Average Rate

Corporate bonds (TPS securities)

Discounted cash flows

Discount rate

3.71

4.24

Junior subordinated debentures

Discounted cash flows

Discount rate

3.71

4.24

Loans individually evaluated

Collateral valuations

Discount to appraised value

8.5% to 20%

0.0% to 20.0%

REO

Appraisals

Discount to appraised value

60.9

51.86

Interest rate lock commitments

Pricing model

Pull-through rate

86.64

86.35

Investments in limited partnerships

Net Asset Value

Infrequent transactions

n/a

SBA servicing rights

Discounted cash flows

Constant prepayment rate

12%

n/a

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, 2021 and 2020 (in thousands):


	Level 3 Fair Value Inputs
	TPS Securities		Borrowings— Junior Subordinated Debentures		Interest Rate Lock and Forward sales Commitments		Investments in Limited Partnerships		SBA Servicing Asset
Balance, January 1, 2020	$	25,636	$	119,304	$	791	$	467	$	—
Total gains or losses recognized
Assets (losses) gains	(656)		—		4,430		—		—
Liabilities losses	—		(2,330)		—		—		—
Purchases, issuances and settlements	—		—		—		2,352		—


Balance, December 31, 2020	24,980		116,974		5,221		2,819		—
Total gains or losses recognized
Assets gains (losses)	2,001		—		(3,754)		2,615		1,161
Liabilities losses	—		11,089		—		—		—
Redemptions	—		(8,248)		—		—		—
Purchases, issuances and settlements	—		—		—		4,823		—


Balance, December 31, 2021	$	26,981	$	119,815	$	1,467	$	10,257	$	1,161

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

The following tables present 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, 2021 and 2020 (in thousands):


	December 31, 2021
	Level 1		Level 2		Level 3		Total
Loans individually evaluated	$	—	$	—	$	2,989	$	2,989
REO	$	—	$	—	$	852	$	852

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Loans individually evaluated	$	—	$	—	$	3,482	$	3,482
REO	—		—		816		816

fair value, measured on nonrecurring basis, Losses from fair value adjustments

The following table presents the losses resulting from non-recurring fair value adjustments for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	For the years ended December 31,
	2021		2020		2019
Loans individually evaluated	$	(303)	$	(3,482)	$	(425)
REO	—		(45)		—
Total loss from nonrecurring measurements	$	(303)	$	(3,527)	$	(425)