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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended
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Mar. 31, 2022
Fair Value Disclosures [Abstract] |
Schedule of Fair Value of Financial Instruments, by Balance Sheet Grouping | The following table presents estimated fair values of the Company’s financial instruments as of March 31, 2022 and December 31, 2021, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands):
|  |  | March 31, 2022 |  | December 31, 2021
| Level |  | Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 1 |  | $ | 1,988,388 |  |  | $ | 1,988,388 |  |  | $ | 2,134,300 |  |  | $ | 2,134,300 |
Securities—trading | 3 |  | 27,354 |  |  | 27,354 |  |  | 26,981 |  |  | 26,981 |
Securities—available-for-sale | 2 |  | 3,147,547 |  |  | 3,147,547 |  |  | 3,638,993 |  |  | 3,638,993 |
Securities—held-to-maturity | 2 |  | 1,006,234 |  |  | 958,809 |  |  | 464,008 |  |  | 484,483 |
Securities—held-to-maturity | 3 |  | 9,708 |  |  | 9,731 |  |  | 57,347 |  |  | 57,370 |
Securities purchased under agreements to resell | 2 |  | 300,000 |  |  | 300,000 |  |  | 300,000 |  |  | 300,000 |
Loans held for sale | 2 |  | 64,218 |  |  | 64,609 |  |  | 96,487 |  |  | 96,914 |
Loans receivable | 3 |  | 9,146,629 |  |  | 9,003,682 |  |  | 9,084,763 |  |  | 9,100,516 |
Equity securities | 1 |  | 893 |  |  | 893 |  |  | 1,000 |  |  | 1,298 |
FHLB stock | 3 |  | 10,000 |  |  | 10,000 |  |  | 12,000 |  |  | 12,000 |
Bank-owned life insurance | 1 |  | 294,556 |  |  | 294,556 |  |  | 244,156 |  |  | 244,156 |
Mortgage servicing rights | 3 |  | 16,846 |  |  | 32,415 |  |  | 16,045 |  |  | 24,393 |
SBA servicing rights | 3 |  | 1,162 |  |  | 1,162 |  |  | 1,161 |  |  | 1,161 |
Investments in limited partnerships | 3 |  | 10,982 |  |  | 10,982 |  |  | 10,257 |  |  | 10,257 |
Derivatives: |  |  |  |  |  |  |  |  |
Interest rate swaps | 2 |  | 14,685 |  |  | 14,685 |  |  | 20,826 |  |  | 20,826 |
Interest rate lock and forward sales commitments | 2,3 |  | 3,062 |  |  | 3,062 |  |  | 1,555 |  |  | 1,555 |
Liabilities: |  |  |  |  |  |  |  |  |
Demand, interest checking and money market accounts | 2 |  | 10,869,519 |  |  | 10,869,519 |  |  | 10,703,586 |  |  | 10,703,586 |
Regular savings | 2 |  | 2,853,891 |  |  | 2,853,891 |  |  | 2,784,716 |  |  | 2,784,716 |
Certificates of deposit | 2 |  | 800,364 |  |  | 790,986 |  |  | 838,631 |  |  | 836,877 |
FHLB advances | 2 |  | — |  |  | — |  |  | 50,000 |  |  | 50,287 |
Other borrowings | 2 |  | 266,778 |  |  | 266,778 |  |  | 264,490 |  |  | 264,490 |
Subordinated notes, net | 2 |  | 98,658 |  |  | 100,614 |  |  | 98,564 |  |  | 105,241 |
Junior subordinated debentures | 3 |  | 70,510 |  |  | 70,510 |  |  | 119,815 |  |  | 119,815 |
Derivatives: |  |  |  |  |  |  |  |  |
Interest rate swaps | 2 |  | 18,574 |  |  | 18,574 |  |  | 11,336 |  |  | 11,336 |
Interest rate swaps used in cash flow hedges | 2 |  | 502 |  |  | 502 |  |  | 279 |  |  | 279 |
Interest rate lock and forward sales commitments | 2,3 |  | 142 |  |  | 142 |  |  | 140 |  |  | 140 |
Risk participation agreement | 2 |  | 218 |  |  | 218 |  |  | — |  |  | — |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of March 31, 2022 and December 31, 2021 (in thousands):
| March 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Securities—trading |  |  |  |  |  |  |
Corporate bonds (Trust Preferred Securities) | $ | — |  |  | $ | — |  |  | $ | 27,354 |  |  | $ | 27,354 |
Securities—available-for-sale |  |  |  |  |  |  |
U.S. Government and agency obligations | — |  |  | 194,194 |  |  | — |  |  | 194,194 |
Municipal bonds | — |  |  | 272,264 |  |  | — |  |  | 272,264 |
Corporate bonds | — |  |  | 117,583 |  |  | — |  |  | 117,583 |
Mortgage-backed or related securities | — |  |  | 2,357,833 |  |  | — |  |  | 2,357,833 |
Asset-backed securities | — |  |  | 205,673 |  |  | — |  |  | 205,673 |
| — |  |  | 3,147,547 |  |  | — |  |  | 3,147,547 |
Loans held for sale(1) | — |  |  | 16,890 |  |  | — |  |  | 16,890 |
Equity securities | 893 |  |  | — |  |  | — |  |  | 893 |
SBA servicing rights | — |  |  | — |  |  | 1,162 |  |  | 1,162 |
Investment in limited partnerships | — |  |  | — |  |  | 10,982 |  |  | 10,982 |
Derivatives |  |  |  |  |  |  |
Interest rate swaps | — |  |  | 14,685 |  |  | — |  |  | 14,685 |
Interest rate lock and forward sales commitments | — |  |  | 3,062 |  |  | — |  |  | 3,062 |
| $ | 893 |  |  | $ | 3,182,184 |  |  | $ | 39,498 |  |  | $ | 3,222,575 |
Liabilities: |  |  |  |  |  |  |
Junior subordinated debentures | $ | — |  |  | $ | — |  |  | $ | 70,510 |  |  | $ | 70,510 |
Derivatives |  |  |  |  |  |  |
Interest rate swaps | — |  |  | 18,574 |  |  | — |  |  | 18,574 |
Interest rate swaps used in cash flow hedges | — |  |  | 502 |  |  | — |  |  | 502 |
Interest rate lock and forward sales commitments | — |  |  | 76 |  |  | 66 |  |  | 142 |
Risk participation agreement | — |  |  | 218 |  |  | — |  |  | 218 |
| $ | — |  |  | $ | 19,370 |  |  | $ | 70,576 |  |  | $ | 89,946 |
| December 31, 2021
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Securities—trading |  |  |  |  |  |  |
Corporate bonds (Trust Preferred Securities) | $ | — |  |  | $ | — |  |  | $ | 26,981 |  |  | $ | 26,981 |
Securities—available-for-sale |  |  |  |  |  |  |
U.S. Government and agency obligations | — |  |  | 201,332 |  |  | — |  |  | 201,332 |
Municipal bonds | — |  |  | 308,612 |  |  | — |  |  | 308,612 |
Corporate bonds | — |  |  | 117,347 |  |  | — |  |  | 117,347 |
Mortgage-backed or related securities | — |  |  | 2,805,268 |  |  | — |  |  | 2,805,268 |
Asset-backed securities | — |  |  | 206,434 |  |  | — |  |  | 206,434 |
| — |  |  | 3,638,993 |  |  | — |  |  | 3,638,993 |
Loans held for sale(1) | — |  |  | 39,775 |  |  | — |  |  | 39,775 |
SBA servicing rights | — |  |  | — |  |  | 1,161 |  |  | 1,161 |
Investment in limited partnerships | — |  |  | — |  |  | 10,257 |  |  | 10,257 |
Derivatives |  |  |  |  |  |  |
Interest rate swaps | — |  |  | 20,826 |  |  | — |  |  | 20,826 |
Interest rate lock and forward sales commitments | — |  |  | 88 |  |  | 1,467 |  |  | 1,555 |
| $ | — |  |  | $ | 3,699,682 |  |  | $ | 39,866 |  |  | $ | 3,739,548 |
Liabilities: |  |  |  |  |  |  |
Junior subordinated debentures | $ | — |  |  | $ | — |  |  | $ | 119,815 |  |  | $ | 119,815 |
Derivatives |  |  |  |  |  |  |
Interest rate swaps | — |  |  | 11,336 |  |  | — |  |  | 11,336 |
Interest rate swaps used in cash flow hedges | — |  |  | 279 |  |  | — |  |  | 279 |
Interest rate lock and forward sales commitments | — |  |  | 140 |  |  | — |  |  | 140 |
| $ | — |  |  | $ | 11,755 |  |  | $ | 119,815 |  |  | $ | 131,570 |
Schedule of Valuation Technique, Unobservable Input, and Qualitative Information for Unobservable Inputs | The following table provides a description of the valuation technique, unobservable inputs, and quantitative and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and non-recurring basis at March 31, 2022 and December 31, 2021:
|  |  |  |  |  | Weighted Average Rate / Range
Financial Instruments |  | Valuation Technique |  | Unobservable Inputs |  | March 31, 2022 |  | December 31, 2021
Corporate bonds (TPS securities) |  | Discounted cash flows |  | Discount rate |  | 4.46 | % |  | 3.71 | %
Junior subordinated debentures |  | Discounted cash flows |  | Discount rate |  | 4.46 | % |  | 3.71 | %
Loans individually evaluated |  | Collateral valuations |  | Discount to appraised value |  | 9.0% to 9.5% |  | 8.5% to 20.0%
REO |  | Appraisals |  | Discount to appraised value |  | 71.19 | % |  | 60.91 | %
Interest rate lock commitments |  | Pricing model |  | Pull-through rate |  | 89.26 | % |  | 86.64 | %
Investments in limited partnerships |  | Net Asset Value |  | Infrequent transactions |  | n/a |  | n/a
SBA servicing rights |  | Discounted cash flows |  | Constant prepayment rate |  | 8.76% |  | 12.25%
Schedule of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three months ended March 31, 2022 and 2021 (in thousands):
| Three Months Ended |  |
| March 31, 2022 |  |
| Level 3 Fair Value Inputs |  |
| TPS Securities |  | Borrowings—Junior Subordinated Debentures |  | Interest Rate Lock and Forward Sales Commitments |  | Investments in Limited Partnerships |  | SBA Servicing Asset |  |  |  |  |  |
Beginning balance | $ | 26,981 |  |  | $ | 119,815 |  |  | $ | 1,467 |  |  | $ | 10,257 |  |  | $ | 1,161 |  |  |  |  |  |  |
Net change recognized in earnings | 373 |  |  | 1,213 |  |  | (1,533) |  |  | (217) |  |  | 1 |  |  |  |  |  |  |
Purchases, issuances and settlements | — |  |  | (50,518) |  |  | — |  |  | 942 |  |  | — |  |  |  |  |  |  |
Ending balance at March 31, 2022 | $ | 27,354 |  |  | $ | 70,510 |  |  | $ | (66) |  |  | $ | 10,982 |  |  | $ | 1,162 |  |  |  |  |  |  |
| Three Months Ended |  |
| March 31, 2021 |  |
| Level 3 Fair Value Inputs |  |
| TPS Securities |  | Borrowings—Junior Subordinated Debentures |  | Interest Rate Lock and Forward Sales Commitments |  | Investments in Limited Partnerships |  | SBA Servicing Asset |  |  |  |  |  |
Beginning balance | $ | 24,980 |  |  | $ | 116,974 |  |  | $ | 5,221 |  |  | $ | 2,819 |  |  | $ | — |  |  |  |  |  |  |
Net change recognized in earnings | 59 |  |  | 274 |  |  | 4,430 |  |  | 1,384 |  |  | — |  |  |  |  |  |  |
Ending balance at March 31, 2021 | $ | 25,039 |  |  | $ | 117,248 |  |  | $ | 9,651 |  |  | $ | 4,203 |  |  | $ | — |  |  |  |  |  |  |
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables present financial assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of March 31, 2022 and December 31, 2021 (in thousands):
| March 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Loans individually evaluated | $ | — |  |  | $ | — |  |  | $ | 2,388 |  |  | $ | 2,388 |
REO | — |  |  | — |  |  | 429 |  |  | 429 |
Loans held for sale | — |  |  | 44,869 |  |  | — |  |  | 44,869 |
| December 31, 2021
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Loans individually evaluated | $ | — |  |  | $ | — |  |  | $ | 2,989 |  |  | $ | 2,989 |
REO | — |  |  | — |  |  | 852 |  |  | 852 |
The following table presents the losses resulting from non-recurring fair value adjustments for the three months ended March 31, 2022 and March 31, 2021 (in thousands):
|  | Three Months Ended March 31, |  |
|  | 2022 |  | 2021 |  |  |  |
Loans individually evaluated |  | $ | — |  |  | $ | 302 |  |  |  |  |
REO |  | — |  |  | — |  |  |  |  |
Loans held for sale |  | 603 |  |  | — |  |  |  |  |
Total loss from non-recurring measurements |  | $ | 603 |  |  | $ | 302 |  |  |  |  |

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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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