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FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2021

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)
June 30, 2021
Assets
Securities available-for-sale:
SBA loan pools securities						$	16,223					$	—					$	16,223					$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						197,685						—						197,685						—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						265,184						—						265,184						—
Municipal securities						120,980						—						120,980						—
Non-agency residential mortgage-backed securities						155						—						155						—
Collateralized loan obligations						584,307						—						584,307						—
Corporate debt securities						168,620						—						168,620						—
Loans held-for-sale, carried at fair value						2,853						—						1,912						941
Derivative assets:
Interest rate swaps and caps (1)						4,960						—						4,960						—
Foreign exchange contracts (1)						224						—						224						—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)						5,242						—						5,242						—
Foreign exchange contracts (2)						212						—						212						—
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
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						—

(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)
June 30, 2021
Assets
Securities available-for-sale:
SBA loan pools securities						$	16,223					$	—					$	16,223					$	—
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						197,685						—						197,685						—
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						265,184						—						265,184						—
Municipal securities						120,980						—						120,980						—
Non-agency residential mortgage-backed securities						155						—						155						—
Collateralized loan obligations						584,307						—						584,307						—
Corporate debt securities						168,620						—						168,620						—
Loans held-for-sale, carried at fair value						2,853						—						1,912						941
Derivative assets:
Interest rate swaps and caps (1)						4,960						—						4,960						—
Foreign exchange contracts (1)						224						—						224						—
Liabilities
Derivative liabilities:
Interest rate swaps and caps (2)						5,242						—						5,242						—
Foreign exchange contracts (2)						212						—						212						—
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
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						—

(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) for the periods indicated:

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)						2021						2020						2021						2020
Loans repurchased from GNMA Loan Pools
Balance at beginning of period						$	943					$	17,127					$	945					$	19,233
Total gains (losses) (realized/unrealized):
Included in earnings—fair value adjustment						—						22						—						(1,369)
Sales, settlements, and other						(2)						(464)						(4)						(1,179)
Balance at end of period						$	941					$	16,685					$	941					$	16,685

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:

						June 30, 2021																		December 31, 2020
($ in thousands)						Fair Value						Unpaid Principal Balance						Difference						Fair Value						Unpaid Principal Balance						Difference
Loans held-for-sale, carried at fair value:
Total loans						$	2,853					$	3,267					$	(414)					$	1,413					$	1,680					$	(267)
Nonaccrual loans (1)						1,008						1,126						(118)						654						750						(96)

(1)Includes loans guaranteed by the U.S. government of $189 thousand and $190 thousand at June 30, 2021 and December 31, 2020.

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:

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)						2021						2020						2021						2020
Net gains (losses) from fair value changes:
Fair value adjustment for loans held-for-sale						$	20					$	25					$	20					$	(1,561)

Schedule of Assets and Liabilities Measured on 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)						Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
June 30, 2021
Assets
Collateral dependent loans:
Single family residential mortgage						$	2,319					$	—					$	—					$	2,319
Commercial and industrial						130						—						—						130
SBA						5,402						—						—						5,402
December 31, 2020
Assets
Collateral dependent loans:
SBA						$	629					$	—					$	—					$	629

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

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

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)						2021						2020						2021						2020
Collateral dependent loans:
Single family residential mortgage						$	(211)					$	—					$	(211)					$	22
Commercial and industrial						20						(6,091)						38						(7,422)
SBA						(376)						(670)						(509)						(1,189)
Commercial real estate						(140)						—						(140)						—

Carrying Amounts and Estimated Fair Values of Financial Instruments

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
June 30, 2021
Financial assets
Cash and cash equivalents						$	163,332					$	163,332					$	—					$	—					$	163,332
Securities available-for-sale						1,353,154						—						1,353,154						—						1,353,154
Federal Home Loan Bank and other bank stock						44,569						—						44,569						—						44,569
Loans held-for-sale, carried at fair value						2,853						—						1,912						941						2,853
Loans receivable, net of allowance for credit losses						5,909,592						—						—						6,002,472						6,002,472
Accrued interest receivable						28,312						28,312						—						—						28,312
Derivative assets						5,184						—						5,184						—						5,184
Financial liabilities
Deposits						6,206,544						—						—						6,207,271						6,207,271
Advances from Federal Home Loan Bank						490,419						—						524,874						—						524,874
Other borrowings						125,000						—						125,000						—						125,000
Long-term debt						256,554						—						274,219						—						274,219
Derivative liabilities						5,454						—						5,454						—						5,454
Accrued interest payable						3,348						3,348						—						—						3,348
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 for credit losses						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

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