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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2022 and December 31, 2021, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands):

									September 30, 2022												December 31, 2021
			Level						Carrying Value						Estimated Fair Value						Carrying Value						Estimated Fair Value
Assets:
Cash and cash equivalents			1						$	821,921					$	821,921					$	2,134,300					$	2,134,300
Securities—trading			3						28,383						28,383						26,981						26,981
Securities—available-for-sale			2						2,996,173						2,996,173						3,638,993						3,638,993
Securities—held-to-maturity			2						1,124,017						938,167						464,008						484,483
Securities—held-to-maturity			3						9,229						9,249						57,347						57,370
Securities purchased under agreements to resell			2						300,000						300,000						300,000						300,000
Loans held for sale			2						84,358						84,453						96,487						96,914
Loans receivable			3						9,827,096						9,438,511						9,084,763						9,100,516
Equity securities			1						657						657						1,000						1,298
FHLB stock			3						10,000						10,000						12,000						12,000
Bank-owned life insurance			1						295,443						295,443						244,156						244,156
Mortgage servicing rights			3						15,986						35,761						16,045						24,393
SBA servicing rights			3						943						943						1,161						1,161
Investments in limited partnerships			3						12,139						12,139						10,257						10,257
Derivatives:
Interest rate swaps			2						38,747						38,747						20,826						20,826
Interest rate lock and forward sales commitments			2,3						1,023						1,023						1,555						1,555
Liabilities:
Demand, interest checking and money market accounts			2						10,687,611						10,687,611						10,703,586						10,703,586
Regular savings			2						2,824,711						2,824,711						2,784,716						2,784,716
Certificates of deposit			2						721,944						701,266						838,631						836,877
FHLB advances			2						—						—						50,000						50,287
Other borrowings			2						234,006						234,006						264,490						264,490
Subordinated notes, net			2						98,849						94,889						98,564						105,241
Junior subordinated debentures			3						73,841						73,841						119,815						119,815
Derivatives:
Interest rate swaps			2						38,801						38,801						11,336						11,336
Interest rate swaps used in cash flow hedges			2						19,547						19,547						279						279
Interest rate lock and forward sales commitments			2,3						247						247						140						140
Risk participation agreement			2						68						68						—						—

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 September 30, 2022 and December 31, 2021 (in thousands):

			September 30, 2022
			Level 1						Level 2						Level 3						Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)			$	—					$	—					$	28,383					$	28,383
Securities—available-for-sale
U.S. Government and agency obligations			—						186,511						—						186,511
Municipal bonds			—						252,812						—						252,812
Corporate bonds			—						122,649						—						122,649
Mortgage-backed or related securities			—						2,213,637						—						2,213,637
Asset-backed securities			—						220,564						—						220,564
			—						2,996,173						—						2,996,173
Loans held for sale(1)			—						6,803						—						6,803
Equity securities			657						—						—						657
SBA servicing rights			—						—						943						943
Investment in limited partnerships			—						—						12,139						12,139
Derivatives
Interest rate swaps			—						38,747						—						38,747
Interest rate lock and forward sales commitments			—						940						83						1,023
			$	657					$	3,042,663					$	41,548					$	3,084,868
Liabilities:
Junior subordinated debentures			$	—					$	—					$	73,841					$	73,841
Derivatives
Interest rate swaps			—						38,801						—						38,801
Interest rate swaps used in cash flow hedges			—						19,547						—						19,547
Interest rate lock and forward sales commitments			—						132						115						247
Risk participation agreement			—						68						—						68
			$	—					$	58,548					$	73,956					$	132,504

			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 September 30, 2022 and December 31, 2021:

Weighted Average Rate / Range

Financial Instruments

Valuation Technique

Unobservable Inputs

September 30, 2022

December 31, 2021

Corporate bonds (TPS securities)

Discounted cash flows

Discount rate

7.25

%

3.71

%

Junior subordinated debentures

Discounted cash flows

Discount rate

7.25

%

3.71

%

Loans individually evaluated

Collateral valuations

Discount to appraised value

n/a

8.5% to 20.0%

REO

Appraisals

Discount to appraised value

68.35

%

60.91

%

Interest rate lock commitments

Pricing model

Pull-through rate

89.00

%

86.64

%

Investments in limited partnerships

Net Asset Value

Infrequent transactions

n/a

n/a

SBA servicing rights

Discounted cash flows

Constant prepayment rate

14.05%

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 and nine months ended September 30, 2022 and 2021 (in thousands):

			Three Months Ended
			September 30, 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			$	27,886					$	72,229					$	357					$	11,881					$	1,015
Net change recognized in earnings			497						—						(389)						(38)						(72)
Net change recognized in AOCI			—						1,612						—						—						—
Purchases, issuances and settlements			—						—						—						296						—
Ending balance at September 30, 2022			$	28,383					$	73,841					$	(32)					$	12,139					$	943
			Nine Months Ended
			September 30, 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			1,402						765						(1,499)						(410)						(218)
Net change recognized in AOCI			—						3,779						—						—						—
Purchases, issuances and settlements			—						—						—						2,292						—
Redemptions			—						(50,518)						—						—						—
Ending balance at September 30, 2022			$	28,383					$	73,841					$	(32)					$	12,139					$	943
			Three Months Ended
			September 30, 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			$	25,097					$	117,520					$	2,574					$	4,707					$	—
Net change recognized in earnings			1,778						—						(1,179)						—						—
Net change recognized in AOCI			—						7,333						—						—						—
Purchases, issuances and settlements			—						—						—						2,207						—
Ending balance at September 30, 2021			$	26,875					$	124,853					$	1,395					$	6,914					$	—
			Nine Months Ended
			September 30, 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			1,895						—						(3,826)						—						—
Net change recognized in AOCI			—						7,879						—						—						—
Purchases, issuances and settlements			—						—						—						4,095						—
Ending balance at September 30, 2021			$	26,875					$	124,853					$	1,395					$	6,914					$	—

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 September 30, 2022 and December 31, 2021 (in thousands):

			September 30, 2022
			Level 1						Level 2						Level 3						Total
REO			—						—						340						340
Loans held for sale			—						73,787						—						73,787
			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 and nine months ended September 30, 2022 and September 30, 2021 (in thousands):

						Three Months Ended September 30,												Nine Months Ended September 30,
						2022						2021						2022						2021
Loans individually evaluated						$	—					$	—					$	—					$	(303)
Loans held for sale						(2,200)						—						(3,261)						—
Total loss from non-recurring measurements						$	(2,200)					$	—					$	(3,261)					$	(303)

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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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.

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