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FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Assets Measured on a Recurring Basis

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

												Fair Value Measurement Level
($ in thousands)						Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
December 31, 2020
Assets
Securities available-for-sale:
SBA loan pools securities						$	17,354					$	—					$	17,354					$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						106,384						—						106,384						—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						211,831						—						211,831						—
Municipal securities						68,623						—						68,623						—
Non-agency residential mortgage-backed securities						160						—						160						—
Collateralized loan obligations						677,785						—						677,785						—
Corporate debt securities						149,294						—						149,294						—
Loans held-for-sale, carried at fair value						1,413						—						468						945
Mortgage servicing rights (1)						566						—						—						566
Derivative assets:
Interest rate swaps and caps (1)						7,304						—						7,304						—
Foreign exchange contracts (1)						328						—						328						—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)						7,789						—						7,789						—
Foreign exchange contracts (2)						313						—						313						—
December 31, 2019
Assets
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						$	36,456					$	—					$	36,456					$	—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						91,299						—						91,299						—
Municipal securities						52,689						—						52,689						—
Non-agency residential mortgage-backed securities						196						—						196						—
Collateralized loan obligations						718,361						—						718,361						—
Corporate debt securities						13,579						—						13,579						—
Loans held-for-sale, carried at fair value						22,642						—						3,409						19,233
Mortgage servicing rights (1)						1,157						—						—						1,157
Derivative assets:
Interest rate swaps and caps (1)						3,445						—						3,445						—
Foreign exchange contracts (1)						138						—						138						—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)						3,717						—						3,717						—
Foreign exchange contracts (2)						136						—						136						—

(1)Included in other assets in the consolidated statements of financial condition.

(2)Included in accrued expenses and other liabilities in the consolidated statements of financial condition.

Fair Value Liabilities Measured on a Recurring Basis

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

												Fair Value Measurement Level
($ in thousands)						Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
December 31, 2020
Assets
Securities available-for-sale:
SBA loan pools securities						$	17,354					$	—					$	17,354					$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						106,384						—						106,384						—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						211,831						—						211,831						—
Municipal securities						68,623						—						68,623						—
Non-agency residential mortgage-backed securities						160						—						160						—
Collateralized loan obligations						677,785						—						677,785						—
Corporate debt securities						149,294						—						149,294						—
Loans held-for-sale, carried at fair value						1,413						—						468						945
Mortgage servicing rights (1)						566						—						—						566
Derivative assets:
Interest rate swaps and caps (1)						7,304						—						7,304						—
Foreign exchange contracts (1)						328						—						328						—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)						7,789						—						7,789						—
Foreign exchange contracts (2)						313						—						313						—
December 31, 2019
Assets
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						$	36,456					$	—					$	36,456					$	—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						91,299						—						91,299						—
Municipal securities						52,689						—						52,689						—
Non-agency residential mortgage-backed securities						196						—						196						—
Collateralized loan obligations						718,361						—						718,361						—
Corporate debt securities						13,579						—						13,579						—
Loans held-for-sale, carried at fair value						22,642						—						3,409						19,233
Mortgage servicing rights (1)						1,157						—						—						1,157
Derivative assets:
Interest rate swaps and caps (1)						3,445						—						3,445						—
Foreign exchange contracts (1)						138						—						138						—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)						3,717						—						3,717						—
Foreign exchange contracts (2)						136						—						136						—

(1)Included in other assets in the consolidated statements of financial condition.

(2)Included in accrued expenses and other liabilities in 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), on a consolidated operations basis, for the periods indicated:

						Year Ended December 31,
($ in thousands)						2020						2019						2018
Mortgage servicing rights
Balance at beginning of period						$	1,157					$	1,770					$	31,852
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment (1)						(308)						(264)						(1,155)
Sales, paydowns, and other						(283)						(349)						(28,927)
Balance at end of period						$	566					$	1,157					$	1,770
Loans repurchased from GNMA Loan Pools (2)
Balance at beginning of period						$	19,233					$	25,040					$	98,940
Total gains or losses (realized/unrealized):
Included in earnings—fair value adjustment (3)						(1,347)						(16)						(1,378)
Additions						—						406						23,678
Sales, settlements, and other (4)						(16,941)						(6,197)						(96,200)
Balance at end of period						$	945					$	19,233					$	25,040

(1)Included in loan servicing income in the consolidated statements of operations.

(2)Includes loans repurchased from GNMA loan pools of discontinued operations, which is included in assets of discontinued operations on the consolidated statements of financial condition, of $0, $17.3 million and $32.3 million in balance at beginning of period, and $0, $0 and $17.3 million in balance at end of period for the years ended December 31, 2020, 2019 and 2018.

(3)Included in fair value adjustment for loans held-for-sale in the consolidated statements of operations.

(4)Included in sales, settlements and other are $66.0 million of GNMA loans subject to repurchase option that were derecognized when the associated mortgage servicing rights were sold during the year ended December 31, 2018.

Fair value option of certain assets

The following table presents the fair value and aggregate principal balance of certain assets under the fair value option:

						December 31,
						2020																		2019
($ in thousands)						Fair Value						Unpaid Principal Balance						Difference						Fair Value						Unpaid Principal Balance						Difference
Loans held-for-sale, carried at fair value in continuing operations:
Total loans						$	1,413					$	1,680					$	(267)					$	22,642					$	23,455					$	(813)
Nonaccrual loans (1)						654						750						(96)						8,125						8,370						(245)

(1)    Includes loans guaranteed by the U.S. government of $190 thousand and $6.7 million at December 31, 2020 and 2019.

The following table presents changes in fair value related to initial measurement and subsequent changes in fair value included in earnings for these assets measured at fair value for the periods indicated:

						Year Ended December 31,
($ in thousands)						2020						2019						2018
Net gains (losses) from fair value changes (1)
Fair value adjustment for loans held-for-sale						$	(1,501)					$	106					$	204
Net revenue on mortgage banking activities (discontinued operations)						—						—						159

(1)    Amounts for the year ended December 31, 2018 are included in income from discontinued operations.

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

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

												Fair Value Measurement Level
($ in thousands)						Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
December 31, 2020
Assets
Collateral dependent loans:
SBA						$	629					$	—					$	—					$	629
December 31, 2019
Assets
Collateral dependent loans:
Single family residential mortgage						$	3,678					$	—					$	—					$	3,678
Commercial and industrial						15,409						—						—						15,409
SBA						1,711						—						—						1,711

Gain and Losses Recognized on Assets Measured at Fair Value

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

						Year Ended December 31,
($ in thousands)						2020						2019						2018
Individually evaluated loans:
Single family residential mortgage						$	(169)					$	(490)					$	(115)
Commercial and industrial						(10,292)						—						(1,752)
SBA						(2,052)						(46)						(1,048)
Other consumer						—						(88)						(141)
Other real estate owned:
Single family residential mortgage						—						(104)						229

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 Amount						Fair Value Measurement Level
($ in thousands)												Level 1						Level 2						Level 3						Total
December 31, 2020
Financial assets
Cash and cash equivalents						$	220,819					$	220,819					$	—					$	—					$	220,819
Securities available-for-sale						1,231,431						—						1,231,431						—						1,231,431
Federal Home Loan Bank and other bank stock						44,506						—						44,506						—						44,506
Loans held-for-sale						1,413						—						468						945						1,413
Loans receivable, net of allowance						5,817,375						—						—						5,936,708						5,936,708
Accrued interest receivable						29,445						29,445						—						—						29,445
Derivative assets						7,632						—						7,632						—						7,632
Financial liabilities
Deposits						6,085,800						—						—						6,087,714						6,087,714
Advances from Federal Home Loan Bank						539,795						—						585,416						—						585,416
Long-term debt						256,315						—						273,230						—						273,230
Derivative liabilities						8,102						—						8,102						—						8,102
Accrued interest payable						3,714						3,714						—						—						3,714
December 31, 2019
Financial assets
Cash and cash equivalents						$	373,472					$	373,472					$	—					$	—					$	373,472
Securities available-for-sale						912,580						—						912,580						—						912,580
Federal Home Loan Bank and other bank stock						59,420						—						59,420						—						59,420
Loans held-for-sale						22,642						—						3,409						19,233						22,642
Loans receivable, net of allowance						5,894,236						—						—						5,894,732						5,894,732
Accrued interest receivable						24,523						24,523						—						—						24,523
Derivative assets						3,583						—						3,583						—						3,583
Financial liabilities
Deposits						5,427,167						—						—						5,430,536						5,430,536
Advances from Federal Home Loan Bank						1,195,000						—						1,222,709						—						1,222,709
Long-term debt						173,421						—						180,213						—						180,213
Derivative liabilities						3,853						—						3,853						—						3,853
Accrued interest payable						4,687						4,687						—						—						4,687

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