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SALES OF SUBSIDIARY AND BUSINESS UNITS SALES OF SUBSIDIARY AND BUSINESS UNITS (Tables)
 9 Months Ended
Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of disposal groups and discontinued operations
The following table summarizes the calculation of the gain on sale of The Palisades Group:
 
Three Months Ended June 30, 2016
 
(In thousands)
Consideration received (paid)
 
Liabilities forgiven by The Palisades Group
$
1,862

Liabilities assumed by the Company
(1,078
)
The Note
2,370

Aggregate fair value of consideration received
3,154

Less: net assets sold (carrying amount of The Palisades Group)
(540
)
Gain on sale of The Palisades Group
$
3,694

The following table summarizes the calculation of the net gain on disposal of discontinued operations:
 
Nine Months Ended September 30, 2017
 
(In thousands)
Proceeds from the transaction
$
63,054

Compensation expense related to the transaction
(3,500
)
Other transaction costs
(3,478
)
Net cash proceeds
56,076

Book value of certain assets sold
(2,455
)
Book value of MSRs sold
(37,772
)
Goodwill
(2,100
)
Net gain on disposal
$
13,749

The following tables present the financial information of discontinued operations as of the dates or for the periods indicated:
Statements of Financial Condition of Discontinued Operations
 
September 30,
2017
 
December 31,
2016
 
(In thousands)
ASSETS
 
 
 
Loans held-for-sale, carried at fair value (1)
$
58,954

 
$
406,338

Loans held-for-sale, carried at lower of cost or fair value
—

 
295

Servicing rights carried at fair value
—

 
37,681

Premises, equipment, and capital leases, net
—

 
2,700

Goodwill
—

 
2,100

Other assets
621

 
33,380

Assets of discontinued operations
$
59,575

 
$
482,494

LIABILITIES
 
 
 
Accrued expenses and other liabilities (1)
$
12,500

 
$
34,480

Liabilities of discontinued operations
$
12,500

 
$
34,480

(1)
Includes $8.4 million and $16.5 million of GNMA loans, respectively, that are delinquent more than 90 days and subject to a repurchase option by the Company at September 30, 2017 and December 31, 2016. As such, the Company is deemed to have regained control over those previously transferred assets and has re-recognized them with an offsetting liability recognized in Accrued Expenses and Other Liabilities in the Statements of Financial Condition of Discontinued Operations, as a secured borrowing. Because the Company intends to exercise its option to repurchase and sell them within one year, they have been classified as part of discontinued operations.
Statements of Operations of Discontinued Operations
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(In thousands)
Interest income
 
 
 
 
 
 
 
Loans, including fees
$
917

 
$
4,113

 
$
6,979

 
$
11,002

Total interest income
917

 
4,113

 
6,979

 
11,002

Noninterest income
 
 
 
 
 
 
 
Net gain on disposal
211

 
—

 
13,749

 
—

Loan servicing income (loss)
—

 
2,022

 
1,551

 
(2,473
)
Net revenue on mortgage banking activities
13

 
50,159

 
43,083

 
127,638

Loan brokerage income
6

 
86

 
164

 
97

All other income
232

 
333

 
826

 
805

Total noninterest income
462

 
52,600

 
59,373

 
126,067

Noninterest expense
 
 
 
 
 
 
 
Salaries and employee benefits
416

 
30,900

 
38,384

 
82,891

Occupancy and equipment
359

 
2,692

 
3,754

 
8,377

Professional fees
270

 
250

 
2,462

 
896

Outside Service Fees
567

 
1,517

 
6,180

 
4,121

Data processing
141

 
725

 
668

 
1,915

Advertising
75

 
958

 
1,357

 
2,976

Restructuring expense
279

 
—

 
3,794

 
—

All other expenses
1,230

 
1,097

 
3,354

 
1,941

Total noninterest expense
3,337

 
38,139

 
59,953

 
103,117

Income (loss) from discontinued operations before income taxes
(1,958
)
 
18,574

 
6,399

 
33,952

Income tax (benefit) expense
(799
)
 
7,816

 
2,614

 
14,045

Income (loss) from discontinued operations
$
(1,159
)
 
$
10,758

 
$
3,785

 
$
19,907

Statements of Cash Flows of Discontinued Operations
 
Nine Months Ended September 30,
 
2017
 
2016
 
(In thousands)
Net cash provided by (used in) operating activities
$
348,648

 
$
(111,263
)
Net cash provided by investing activities
56,076

 
—

Net cash provided by (used in) discontinued operations
$
404,724

 
$
(111,263
)