XML 35 R26.htm IDEA: XBRL DOCUMENT v3.23.3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
9 Months Ended
Sep. 30, 2023
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, 2023 and December 31, 2022, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands):
 September 30, 2023December 31, 2022
 LevelCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Assets:    
Cash and cash equivalents1$251,706 $251,706 $243,062 $243,062 
Securities—trading325,268 25,268 28,694 28,694 
Securities—available-for-sale22,287,993 2,287,993 2,789,031 2,789,031 
Securities—held-to-maturity21,074,574 846,061 1,109,319 933,513 
Securities—held-to-maturity37,582 7,592 8,648 8,667 
Securities purchased under agreements to resell2— — 300,000 300,000 
Loans held for sale254,158 54,213 56,857 56,948 
Loans receivable, net310,464,457 9,914,151 10,005,259 9,810,965 
Equity securities1552 552 553 553 
FHLB stock315,600 15,600 12,000 12,000 
Bank-owned life insurance1303,347 303,347 297,565 297,565 
Mortgage servicing rights314,151 36,469 15,331 35,148 
SBA servicing rights3717 717 835 835 
Investments in limited partnerships312,841 12,841 12,427 12,427 
Derivatives:
Interest rate swaps
223,809 23,809 19,339 19,339 
Interest rate lock and forward sales commitments
2,3338 338 142 142 
Liabilities:    
Demand, interest checking and money market accounts28,964,786 8,964,786 10,186,439 10,186,439 
Regular savings22,751,453 2,751,453 2,710,090 2,710,090 
Certificates of deposit21,458,313 1,440,378 723,530 702,581 
FHLB advances2140,000 140,000 50,000 50,000 
Other borrowings2188,440 188,440 232,799 232,799 
Subordinated notes, net292,748 90,322 98,947 96,718 
Junior subordinated debentures366,284 66,284 74,857 74,857 
Derivatives:
Interest rate swaps
245,938 45,938 37,150 37,150 
Interest rate lock and forward sales commitments
2,325 25 118 118 
Risk participation agreement219 19 67 67 
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of September 30, 2023 and December 31, 2022 (in thousands):
 September 30, 2023
 Level 1Level 2Level 3Total
Assets:    
Securities—trading    
Corporate bonds (Trust Preferred Securities)$— $— $25,268 $25,268 
Securities—available-for-sale    
U.S. Government and agency obligations— 34,327 — 34,327 
Municipal bonds— 123,598 — 123,598 
Corporate bonds— 91,018 — 91,018 
Mortgage-backed or related securities— 1,819,452 — 1,819,452 
Asset-backed securities— 219,598 — 219,598 
 — 2,287,993 — 2,287,993 
Loans held for sale(1)
— 11,634 — 11,634 
Equity securities552 — — 552 
SBA servicing rights— — 717 717 
Investment in limited partnerships— — 12,841 12,841 
Derivatives    
Interest rate swaps— 23,809 — 23,809 
Interest rate lock and forward sales commitments— 236 102 338 
$552 $2,323,672 $38,928 $2,363,152 
Liabilities:    
Junior subordinated debentures
$— $— $66,284 $66,284 
Derivatives    
Interest rate swaps— 45,938 — 45,938 
Interest rate lock and forward sales commitments— — 25 25 
Risk participation agreement— 19 — 19 
 $— $45,957 $66,309 $112,266 
 December 31, 2022
 Level 1Level 2Level 3Total
Assets:    
Securities—trading    
Corporate bonds (Trust Preferred Securities)$— $— $28,694 $28,694 
Securities—available-for-sale    
U.S. Government and agency obligations— 55,108 — 55,108 
Municipal bonds— 261,209 — 261,209 
Corporate bonds— 121,853 — 121,853 
Mortgage-backed or related securities— 2,139,336 — 2,139,336 
Asset-backed securities— 211,525 — 211,525 
 — 2,789,031 — 2,789,031 
Loans held for sale(1)
— 2,305 — 2,305 
Equity securities553 — — 553 
SBA servicing rights— — 835 835 
Investment in limited partnerships— — 12,427 12,427 
Derivatives    
Interest rate swaps— 19,339 — 19,339 
Interest rate lock and forward sales commitments— 61 81 142 
 $553 $2,810,736 $42,037 $2,853,326 
Liabilities:    
Junior subordinated debentures$— $— $74,857 $74,857 
Derivatives    
Interest rate swaps— 37,150 — 37,150 
Interest rate lock and forward sales commitments— 76 42 118 
Risk participation agreement— 67 — 67 
 $— $37,293 $74,899 $112,192 
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 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 non-recurring basis at September 30, 2023 and December 31, 2022:
Weighted Average Rate
Financial InstrumentsValuation TechniqueUnobservable InputsSeptember 30, 2023December 31, 2022
Corporate bonds (TPS)Discounted cash flowsDiscount rate10.91 %8.27 %
Junior subordinated debenturesDiscounted cash flowsDiscount rate10.91 %8.27 %
Loans individually evaluatedCollateral valuationsDiscount to appraised valuen/an/a
REOAppraisalsDiscount to appraised value58.18 %68.35 %
Interest rate lock commitmentsPricing modelPull-through rate92.79 %78.65 %
SBA servicing rightsDiscounted cash flowsConstant prepayment rate15.91 %14.10 %
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, 2023 and 2022 (in thousands):
Three Months Ended
September 30, 2023
 Level 3 Fair Value Inputs
 TPSBorrowings—Junior Subordinated DebenturesInterest Rate Lock and Forward Sales CommitmentsInvestments in Limited PartnershipsSBA Servicing Asset
Beginning balance$25,659 $67,237 $268 $12,776 $845 
Net change recognized in earnings(391)— (191)(268)(128)
Net change recognized in accumulated other comprehensive income (AOCI)— (953)— — — 
Purchases, issuances and settlements— — — 333 — 
Ending balance at September 30, 2023$25,268 $66,284 $77 $12,841 $717 
Nine Months Ended
September 30, 2023
Level 3 Fair Value Inputs
TPS SecuritiesBorrowings—Junior Subordinated DebenturesInterest Rate Lock and Forward Sales CommitmentsInvestments in Limited PartnershipsSBA Servicing Asset
Beginning balance$28,694 $74,857 $39 $12,427 $835 
Net change recognized in earnings(3,426)— 38 (930)(118)
Net change recognized in AOCI— (8,573)— — — 
Purchases, issuances and settlements— — — 1,344 — 
Ending balance at September 30, 2023$25,268 $66,284 $77 $12,841 $717 
Three Months Ended
September 30, 2022
 Level 3 Fair Value Inputs
 TPSBorrowings—Junior Subordinated DebenturesInterest Rate Lock and Forward Sales CommitmentsInvestments in Limited PartnershipsSBA Servicing Asset
Beginning balance$27,886 $72,229 $357 $11,881 $1,015 
Net change recognized in earnings497 — (389)(38)(72)
Net change recognized in AOCI— 1,612 — — — 
Purchases, issuances and settlements— — — 296 — 
Ending balance at September 30, 2022$28,383 $73,841 $(32)$12,139 $943 
Nine Months Ended
September 30, 2022
Level 3 Fair Value Inputs
TPS SecuritiesBorrowings—Junior Subordinated DebenturesInterest Rate Lock and Forward Sales CommitmentsInvestments in Limited PartnershipsSBA Servicing Asset
Beginning balance$26,981 $119,815 $1,467 $10,257 $1,161 
Net change recognized in earnings1,402 765 (1,499)(410)(218)
Net change recognized in AOCI— 3,779 — — — 
Purchases, issuances and settlements— — — 2,292 — 
Redemptions— (50,518)— — — 
Ending balance at September 30, 2022$28,383 $73,841 $(32)$12,139 $943 
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The following tables present financial assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2023 and December 31, 2022 (in thousands):
 September 30, 2023
 Level 1Level 2Level 3Total
REO$— $— $546 $546 
Loans held for sale— 40,063 — 40,063 
 December 31, 2022
 Level 1Level 2Level 3Total
Loans individually evaluated$— $— $1,883 $1,883 
REO— — 340 340 
Loans held for sale— 49,474 — 49,474