FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 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)
June 30, 2016
Assets
Securities available-for-sale:
SBA loan pools securities	$	1,416	$	—	$	1,416	$	—
Private label residential mortgage-backed securities	1,453		—		1,453		—
Corporate bonds	60,113		—		60,113		—
Collateralized loan obligation	942,706		—		942,706		—
Commercial mortgage-backed securities	11,398		—		11,398		—
Agency mortgage-backed securities	285,699		—		285,699		—
Loans held-for-sale	418,517		—		384,266		34,251
Derivative assets ⁽¹⁾	15,679		—		15,679		—
Mortgage servicing rights ⁽²⁾	52,567		—		—		52,567
Liabilities
Derivative liabilities ⁽³⁾	8,413		—		8,413		—
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)
June 30, 2016
Assets
Securities available-for-sale:
SBA loan pools securities	$	1,416	$	—	$	1,416	$	—
Private label residential mortgage-backed securities	1,453		—		1,453		—
Corporate bonds	60,113		—		60,113		—
Collateralized loan obligation	942,706		—		942,706		—
Commercial mortgage-backed securities	11,398		—		11,398		—
Agency mortgage-backed securities	285,699		—		285,699		—
Loans held-for-sale	418,517		—		384,266		34,251
Derivative assets ⁽¹⁾	15,679		—		15,679		—
Mortgage servicing rights ⁽²⁾	52,567		—		—		52,567
Liabilities
Derivative liabilities ⁽³⁾	8,413		—		8,413		—
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						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
	(In thousands)
Mortgage servicing rights
Balance at beginning of period	$	48,370		$	21,165		$	49,939		$	19,082
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment	(5,831		)	1,538			(14,032		)	1,010
Additions	12,766			13,699			21,348			23,891
Sales, paydowns, and other	(2,738		)	(2,204		)	(4,688		)	(9,785		)
Balance at end of period	$	52,567		$	34,198		$	52,567		$	34,198
Loans Repurchased from Ginnie Mae Loan Pools
Balance at beginning of period	$	26,580		$	—		$	18,291		$	—
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment	95			—			142			—
Additions	11,277			—			21,103			—
Sales, settlements, and other	(3,701		)	—			(5,285		)	—
Balance at end of period	$	34,251		$	—		$	34,251		$	—

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 June 30, 2016 and December 31, 2015:



	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
	($ in thousands)
June 30, 2016
Mortgage servicing rights	$	52,567	Discounted cash flow	Discount rate	9.00% to 14.50% (10.29%)
				Prepayment rate	6.01% to 40.52% (17.01%)
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)
June 30, 2016
Assets
Impaired loans:
Single family residential mortgage	$	10,431	$	—	$	—	$	10,431
Other real estate owned:
Single family residential	429		—		—		429
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					Six Months Ended
	June 30,					June 30,
	2016			2015		2016			2015
	(In thousands)
Impaired loans:
Single family residential mortgage	$	(149	)	$	—	$	(149	)	$	—
Other real estate owned:
Single family residential	(2		)	6		35			1

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)
June 30, 2016
Financial assets
Cash and cash equivalents	$	271,732	$	271,732	$	—	$	—	$	271,732
Time deposits in financial institutions	1,500		1,500		—		—		1,500
Securities available-for-sale	1,302,785		—		1,302,785		—		1,302,785
Securities held-to-maturity	962,282		—		980,871		—		980,871
Federal Home Loan Bank and other bank stock	81,115		—		81,115		—		81,115
Loans held-for-sale	893,782		—		869,459		34,251		903,710
Loans and leases receivable, net of ALLL	6,198,632		—		—		6,370,177		6,370,177
Accrued interest receivable	28,095		28,095		—		—		28,095
Derivative assets	15,679		—		15,679		—		15,679
Financial liabilities
Deposits	7,928,956		—		—		7,818,605		7,818,605
Advances from Federal Home Loan Bank	930,000		—		931,168		—		931,168
Long term debt	177,743		—		181,933		—		181,933
Derivative liabilities	8,413		—		8,413		—		8,413
Accrued interest payable	3,265		3,265		—		—		3,265
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