FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (in thousands):


		December 31, 2023				December 31, 2022
	Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	1	$	254,464	$	254,464	$	243,062	$	243,062
Securities—trading	3	—		—		28,694		28,694
Securities—available-for-sale	2	2,348,479		2,348,479		2,789,031		2,789,031
Securities—available-for-sale	3	25,304		25,304		—		—
Securities—held-to-maturity	2	1,052,028		900,522		1,109,319		933,513
Securities—held-to-maturity	3	7,027		6,992		8,648		8,667
Securities purchased under agreements to resell	2	—		—		300,000		300,000
Loans held for sale	2	11,170		11,219		56,857		56,948
Loans receivable, net	3	10,660,812		10,250,271		10,005,259		9,810,965
Equity securities	1	449		449		553		553
FHLB stock	3	24,028		24,028		12,000		12,000
Bank-owned life insurance	1	304,366		304,366		297,565		297,565
Mortgage servicing rights	3	13,909		35,794		15,331		35,148
SBA servicing rights	3	740		740		835		835
Investments in limited partnerships	3	13,475		13,475		12,427		12,427
Derivatives:
Interest rate swaps	2	15,129		15,129		19,339		19,339
Interest rate lock and forward sales commitments	2,3	275		275		142		142
Liabilities:
Demand, interest checking and money market accounts	2	8,571,500		8,571,500		10,186,439		10,186,439
Regular savings	2	2,980,530		2,980,530		2,710,090		2,710,090
Certificates of deposit	2	1,477,467		1,465,612		723,530		702,581
FHLB advances	2	323,000		323,000		50,000		50,000
Other borrowings	2	182,877		182,877		232,799		232,799
Subordinated notes, net	2	92,851		85,536		98,947		96,718
Junior subordinated debentures	3	66,413		66,413		74,857		74,857
Derivatives:
Interest rate swaps	2	29,809		29,809		37,150		37,150
Interest rate lock and forward sales commitments	2,3	185		185		118		118
Risk participation agreement	2	42		42		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 December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets:








Securities—available-for-sale
U.S. Government and agency obligations	$	—	$	34,189	$	—	$	34,189
Municipal bonds	—		132,905		—		132,905
Corporate bonds	—		93,819		25,304		119,123
Mortgage-backed or related securities	—		1,866,714		—		1,866,714
Asset-backed securities	—		220,852		—		220,852

	—		2,348,479		25,304		2,373,783

Loans held for sale (1)	—		9,105		—		9,105
Equity securities	449		—		—		449
SBA servicing rights	—		—		740		740
Investment in limited partnerships	—		—		13,475		13,475

Derivatives
Interest rate swaps	—		15,129		—		15,129
Interest rate lock and forward sales commitments	—		—		275		275
	$	449	$	2,372,713	$	39,794	$	2,412,956
Liabilities:

Junior subordinated debentures	$	—	$	—	$	66,413	$	66,413
Derivatives
Interest rate swaps	—		29,809		—		29,809
Interest rate lock and forward sales commitments	—		161		24		185
Risk participation agreement	—		42		—		42
	$	—	$	30,012	$	66,437	$	96,449


	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading


Corporate bonds (TPS 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 securities	553		—		—		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

(1) The unpaid principal balance of residential mortgage loans held for sale carried at fair value on a recurring basis was $8.8 million and $2.2 million at December 31, 2023 and 2022, respectively.

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 December 31, 2023 and 2022:


			December 31
			2023		2022
Financial Instruments	Valuation Technique	Unobservable Inputs	Weighted Average Rate		Weighted Average Rate
Corporate bonds (TPS)	Discounted cash flows	Discount rate	10.84	%	8.27	%

Junior subordinated debentures	Discounted cash flows	Discount rate	10.84	%	8.27	%

Loans individually evaluated	Collateral valuations	Discount to appraised value	8.75% to 25%		n/a
REO	Appraisals	Discount to appraised value	59.71	%	68.35	%
Interest rate lock commitments	Pricing model	Pull-through rate	88.24	%	78.65	%

SBA servicing rights	Discounted cash flows	Constant prepayment rate	16.92	%	14.10	%

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, 2023 and 2022 (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, 2022	$	26,981	$	119,815	$	1,467	$	10,257	$	1,161
Net change recognized in earnings	1,713		—		(1,428)		(460)		(326)
Net change recognized in AOCI	—		5,560		—		—		—
Purchases, issuances and settlements	—		—		—		2,630		—
Redemptions	—		(50,518)		—		—		—


Balance, December 31, 2022	28,694		74,857		39		12,427		835
Net change recognized in earnings	(3,375)		—		212		(719)		(95)
Net change recognized in AOCI	(15)		(8,444)		—		—		—
Purchases, issuances and settlements	—		—		—		1,767		—



Balance, December 31, 2023	$	25,304	$	66,413	$	251	$	13,475	$	740

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, 2023 and 2022 (in thousands):


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Loans individually evaluated	$	—	$	—	$	8,308	$	8,308
REO	—		—		526		526


	December 31, 2022
	Level 1		Level 2		Level 3		Total
Loans individually evaluated	$	—	$	—	$	1,883	$	1,883
REO	—		—		340		340
Loans held for sale	—		49,474		—		49,474

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

The following table presents the gains and losses resulting from non-recurring fair value adjustments for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	For the years ended December 31,
	2023		2022		2021
Loans individually evaluated	$	(933)	$	(626)	$	(303)
REO	—		—		—
Loans held for sale	2,538		(2,538)		—
Total loss from non-recurring measurements	$	1,605	$	(3,164)	$	(303)