FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Assets Measured on a Recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated:



			Fair Value Measurement Level
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
March 31, 2016
Assets
Securities available-for-sale:
SBA loan pools securities	$	1,408	$	—	$	1,408	$	—
Private label residential mortgage-backed securities	1,595		—		1,595		—
Corporate Bonds	26,177		—		26,177		—
Collateralized loan obligation	966,321		—		966,321		—
Agency mortgage-backed securities	668,210		—		668,210		—
Loans held-for-sale	434,656		—		408,076		26,580
Derivative assets ⁽¹⁾	12,288		—		12,288		—
Mortgage servicing rights ⁽²⁾	48,370		—		—		48,370
Liabilities
Derivative liabilities ⁽³⁾	6,543		—		6,543		—
December 31, 2015
Assets
Securities available-for-sale:
SBA loan pools securities	$	1,504	$	—	$	1,504	$	—
Private label residential mortgage-backed securities	1,768		—		1,768		—
Corporate bonds	26,152		—		26,152		—
Collateralized loan obligation	111,468		—		111,468		—
Agency mortgage-backed securities	692,704		—		692,704		—
Loans held-for-sale	379,155		—		360,864		18,291
Derivative assets ⁽¹⁾	9,042		—		9,042		—
Mortgage servicing rights ⁽²⁾	49,939		—		—		49,939
Liabilities
Derivative liabilities ⁽³⁾	1,067		—		1,067		—


(1)	Included in Other Assets on the Consolidated Statements of Financial Condition


(2)	Included in Servicing Rights, Net on the Consolidated Statements of Financial Condition


(3)	Included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition

Fair Value Liabilities Measured on a Recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated:



			Fair Value Measurement Level
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
March 31, 2016
Assets
Securities available-for-sale:
SBA loan pools securities	$	1,408	$	—	$	1,408	$	—
Private label residential mortgage-backed securities	1,595		—		1,595		—
Corporate Bonds	26,177		—		26,177		—
Collateralized loan obligation	966,321		—		966,321		—
Agency mortgage-backed securities	668,210		—		668,210		—
Loans held-for-sale	434,656		—		408,076		26,580
Derivative assets ⁽¹⁾	12,288		—		12,288		—
Mortgage servicing rights ⁽²⁾	48,370		—		—		48,370
Liabilities
Derivative liabilities ⁽³⁾	6,543		—		6,543		—
December 31, 2015
Assets
Securities available-for-sale:
SBA loan pools securities	$	1,504	$	—	$	1,504	$	—
Private label residential mortgage-backed securities	1,768		—		1,768		—
Corporate bonds	26,152		—		26,152		—
Collateralized loan obligation	111,468		—		111,468		—
Agency mortgage-backed securities	692,704		—		692,704		—
Loans held-for-sale	379,155		—		360,864		18,291
Derivative assets ⁽¹⁾	9,042		—		9,042		—
Mortgage servicing rights ⁽²⁾	49,939		—		—		49,939
Liabilities
Derivative liabilities ⁽³⁾	1,067		—		1,067		—


(1)	Included in Other Assets on the Consolidated Statements of Financial Condition


(2)	Included in Servicing Rights, Net on the Consolidated Statements of Financial Condition


(3)	Included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition

Reconciliation of Assets Measured at Fair Value on Recurring Basis

The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated:



	Three Months Ended
	March 31,
	2016			2015
	(In thousands)
Mortgage servicing rights
Balance at beginning of period	$	49,939		$	19,082
Transfers out of Level 3 ⁽¹⁾	—			—
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment	(8,201		)	(528		)
Additions	8,582			10,192
Sales, settlements, and other	(1,950		)	(7,581		)
Balance at end of period	$	48,370		$	21,165
Loans Repurchased from Ginnie Mae Loan Pools
Balance at beginning of period	$	18,291		$	—
Transfers out of Level 3 ⁽¹⁾	—			—
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment	47			—
Additions	9,826			—
Sales, settlements, and other	(1,584		)	—
Balance at end of period	$	26,580		$	—


(1)	The Company’s policy is to recognize transfers in and transfers out as of the actual date of the event or change in circumstances that causes the transfer.

Quantitative Information About Level 3 Fair Value Measurements

The following table presents, as of the dates indicated, quantitative information about Level 3 fair value measurements on a recurring basis, other than loans that become severely delinquent and are repurchased out of Ginnie Mae loan pools that were valued based on an estimate of the expected loss the Company will incur on these loans, which was included as Level 3 at March 31, 2016 and December 31, 2015:



	Fair Value (In thousands)		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
March 31, 2016
Mortgage servicing rights	$	48,370	Discounted cash flow	Discount rate	9.00% to 14.50% (9.82%)
				Prepayment rate	6.16% to 38.01% (14.43%)
December 31, 2015
Mortgage servicing rights	$	49,939	Discounted cash flow	Discount rate	9.00% to 18.00% (9.75%)
				Prepayment rate	6.07% to 35.01% (11.81%)

Schedule of Assets and Liabilities Measured on Non-recurring Basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a non-recurring basis as of the dates indicated:



			Fair Value Measurement Level
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
March 31, 2016
Assets
Impaired loans:
Single family residential mortgage	$	10,165	$	—	$	—	$	10,165
Commercial and industrial	963		—		—		963
Other real estate owned:
Single family residential	325		—		—		325
December 31, 2015
Assets
Impaired loans:
Single family residential mortgage	$	3,585	$	—	$	—	$	3,585
Commercial and industrial	1,073		—		—		1,073
Other real estate owned:
Single family residential	1,097		—		—		1,097

Schedule of Gains and (Losses) Recognized on Assets Measured at Fair Value on Non-recurring Basis

The following table presents the gains and (losses) recognized on assets measured at fair value on a non-recurring basis for the periods indicated:



	Three Months Ended
	March 31,
	2016		2015
	(In thousands)
Impaired loans:
SBA	$	5	$	—
Other real estate owned:
Single family residential	37		(5		)

Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities as of the dates indicated:



	Carrying		Fair Value Measurement Level
	Amount		Level 1		Level 2		Level 3		Total
	(In thousands)
March 31, 2016
Financial assets
Cash and cash equivalents	$	215,012	$	215,012	$	—	$	—	$	215,012
Time deposits in financial institutions	1,500		1,500		—		—		1,500
Securities available-for-sale	1,663,711		—		1,663,711		—		1,663,711
Securities held-to-maturity	962,262		—		948,458		—		948,458
Federal Home Loan Bank and other bank stock	61,146		—		61,146		—		61,146
Loans held-for-sale	863,944		—		843,864		26,580		870,444
Loans and leases receivable, net of ALLL	5,427,223		—		—		5,543,044		5,543,044
Accrued interest receivable	26,967		26,967		—		—		26,967
Derivative assets	12,288		—		12,288		—		12,288
Financial liabilities
Deposits	6,837,601		—		—		6,592,249		6,592,249
Advances from Federal Home Loan Bank	1,195,000		—		1,195,780		—		1,195,780
Securities sold under repurchase agreements	257,100		—		257,100		—		257,100
Long term debt	260,896		—		260,904		—		260,904
Derivative liabilities	6,543		—		6,543		—		6,543
Accrued interest payable	6,716		6,716		—		—		6,716
December 31, 2015
Financial assets
Cash and cash equivalents	$	156,124	$	156,124	$	—	$	—	$	156,124
Time deposits in financial institutions	1,500		1,500		—		—		1,500
Securities available-for-sale	833,596		—		833,596		—		833,596
Securities held-to-maturity	962,203		—		932,285		—		932,285
Federal Home Loan Bank and other bank stock	59,069		—		59,069		—		59,069
Loans held-for-sale	668,841		—		654,559		18,291		672,850
Loans and leases receivable, net of ALLL	5,148,861		—		—		5,244,251		5,244,251
Accrued interest receivable	22,800		22,800		—		—		22,800
Derivative assets	9,042		—		9,042		—		9,042
Financial liabilities
Deposits	6,303,085		—		—		6,010,606		6,010,606
Advances from Federal Home Loan Bank	930,000		—		929,727		—		929,727
Long term debt	261,876		—		264,269		—		264,269
Derivative liabilities	1,067		—		1,067		—		1,067
Accrued interest payable	4,234		4,234		—		—		4,234