Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2020 and 2019, and that were included in the Company’s Consolidated Statements of Condition at those dates:

		Fair Value Measurements at December 31, 2020
(in thousands)		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments			Total Fair Value
Assets:
Mortgage-related Debt Securities Available for Sale:
GSE certificates	$		—	$		1,209,610	$	—	$	—	$		1,209,610
GSE CMOs			—			1,828,715		—		—			1,828,715
Total mortgage-related debt securities	$		—	$		3,038,325	$	—	$	—	$		3,038,325
Other Debt Securities Available for Sale:
U. S. Treasury obligations	$		64,985	$		—	$	—	$	—	$		64,985
GSE debentures			—			1,158,302		—		—			1,158,302
Asset-backed securities			—			527,099		—		—			527,099
Municipal bonds			—			26,311		—		—			26,311
Corporate bonds			—			882,226		—		—			882,226
Foreign notes			—			25,538		—		—			25,538
Capital trust notes			—			90,547		—		—			90,547
Total other debt securities	$		64,985	$		2,710,023	$	—	$	—	$		2,775,008
Total debt securities available for sale	$		64,985	$		5,748,348	$	—	$	—	$		5,813,333
Equity securities:								—		—
Preferred stock	$		15,493	$		—	$	—	$	—	$		15,493
Mutual funds			—			16,083		—		—			16,083
Total equity securities	$		15,493	$		16,083	$	—	$	—	$		31,576
Total securities	$		80,478	$		5,764,431	$	—	$	—	$		5,844,909

	Fair Value Measurements at December 31, 2019
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments		Total Fair Value
Assets:
Mortgage-Related Debt Securities Available for Sale:
GSE certificates	$	—	$	1,552,623	$	—	$	—	$	1,552,623
GSE CMOs		—		1,801,112		—		—		1,801,112
Total mortgage-related debt securities	$	—	$	3,353,735	$	—	$	—	$	3,353,735
Other Debt Securities Available for Sale:
U.S. Treasury obligations	$	41,839	$	—	$	—	$	—	$	41,839
GSE debentures		—		1,094,240		—		—		1,094,240
Asset-backed securities		—		373,254		—		—		373,254
Municipal bonds		—		26,892		—		—		26,892
Corporate bonds		—		867,182		—		—		867,182
Capital trust notes		—		95,915		—		—		95,915
Total other debt securities	$	41,839	$	2,457,483	$	—	$	—	$	2,499,322
Total debt securities available for sale	$	41,839	$	5,811,218	$	—	$	—	$	5,853,057
Equity securities:						—		—
Preferred stock	$	15,414	$	—	$	—	$	—	$	15,414
Mutual funds and common stock		—		17,416		—		—		17,416
Total equity securities	$	15,414	$	17,416	$	—	$	—	$	32,830
Total securities	$	57,253	$	5,828,634	$	—	$	—	$	5,885,887

Changes in Fair Value of Loans Held For Sale

The following table presents the changes in fair value related to initial measurement, and the subsequent changes in fair value included in earnings, for MSRs for the periods indicated:

	(Loss) Gain Included in Mortgage Banking Income from Changes in Fair Value ⁽¹⁾
	For the Twelve Months Ended December 31,
(in thousands)	2020		2019		2018
Loans held for sale	$	—	$	—	$	—
Mortgage servicing rights		—		—		(224	)
Total loss	$	—	$	—	$	(224	)

(1)	Included in “Non-interest income.”

Summary of Carrying Values, Estimated Fair Values and Fair Value Measurement Levels of Financial Instruments

The following tables present assets that were measured at fair value on a non-recurring basis as of December 31, 2020 and 2019, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at December 31, 2020 Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Certain loans ⁽¹⁾	$	—	$	—	$	41,066	$	41,066
Other assets⁽²⁾		—		—		5,655		5,655
Total	$	—	$	—	$	46,721	$	46,721

(1)	Represents the fair value of certain loans individually assessed for impairment, based on the value of the collateral.

(2)

Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity securities without readily determinable fair values. These equity securities are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

	Fair Value Measurements at December 31, 2019 Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Certain impaired loans ⁽¹⁾	$	—	$	—	$	42,767	$	42,767
Other assets ⁽²⁾		—		—		1,481		1,481
Total	$	—	$	—	$	44,248	$	44,248

(1)	Represents the fair value of impaired loans, based on the value of the collateral.

(2)	Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets.

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Consolidated Statements of Condition at December 31, 2020 and 2019:

		December 31, 2020
								Fair Value Measurement Using
(in thousands)		Carrying Value			Estimated Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)					Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$		1,947,931	$		1,947,931	$		1,947,931			$		—			$	—
FHLB stock ⁽¹⁾			714,005			714,005			—					714,005				—
Loans and leases, net			42,806,691			42,376,214			—					—				42,376,214
Financial Liabilities:
Deposits	$		32,436,813	$		32,466,013	$		22,106,133	⁽²	⁾	$		10,359,880	⁽³	⁾	$	—
Borrowed funds			16,083,544			16,794,338			—					16,794,338				—

(1)	Carrying value and estimated fair value are at cost.

(2)	Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(3)	Certificates of deposit.

	December 31, 2019
					Fair Value Measurement Using
(in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	741,870	$	741,870	$	741,870			$	—			$	—
FHLB stock ⁽¹⁾		647,562		647,562		—				647,562				—
Loans and leases, net		41,746,517		41,699,929		—				—				41,699,929
Financial Liabilities:
Deposits	$	31,657,132	$	31,713,945	$	17,442,274	⁽²	⁾	$	14,271,671	⁽³	⁾	$	—
Borrowed funds		14,557,593		14,882,776		—				14,882,776				—

(1)	Carrying value and estimated fair value are at cost.

(2)	Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(3)	Certificates of deposit.