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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023 and December 31, 2022, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands):

									March 31, 2023												December 31, 2022
			Level						Carrying Value						Estimated Fair Value						Carrying Value						Estimated Fair Value
Assets:
Cash and cash equivalents			1						$	242,992					$	242,992					$	243,062					$	243,062
Securities—trading			3						28,591						28,591						28,694						28,694
Securities—available-for-sale			2						2,653,860						2,653,860						2,789,031						2,789,031
Securities—held-to-maturity			2						1,102,122						949,214						1,109,319						933,513
Securities—held-to-maturity			3						7,837						7,848						8,648						8,667
Securities purchased under agreements to resell			2						150,000						150,000						300,000						300,000
Loans held for sale			2						49,016						49,053						56,857						56,948
Loans receivable, net			3						10,019,227						9,724,399						10,005,259						9,810,965
Equity securities			1						624						624						553						553
FHLB stock			3						16,800						16,800						12,000						12,000
Bank-owned life insurance			1						299,754						299,754						297,565						297,565
Mortgage servicing rights			3						14,659						33,555						15,331						35,148
SBA servicing rights			3						954						954						835						835
Investments in limited partnerships			3						12,394						12,394						12,427						12,427
Derivatives:
Interest rate swaps			2						15,342						15,342						19,339						19,339
Interest rate lock and forward sales commitments			2,3						534						534						142						142
Liabilities:
Demand, interest checking and money market accounts			2						9,702,186						9,702,186						10,186,439						10,186,439
Regular savings			2						2,502,084						2,502,084						2,710,090						2,710,090
Certificates of deposit			2						949,932						929,724						723,530						702,581
FHLB advances			2						170,000						170,000						50,000						50,000
Other borrowings			2						214,564						214,564						232,799						232,799
Subordinated notes, net			2						99,046						95,470						98,947						96,718
Junior subordinated debentures			3						74,703						74,703						74,857						74,857
Derivatives:
Interest rate swaps			2						28,858						28,858						37,150						37,150
Interest rate lock and forward sales commitments			2,3						136						136						118						118
Risk participation agreement			2						85						85						67						67

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, 2023 and December 31, 2022 (in thousands):

			March 31, 2023
			Level 1						Level 2						Level 3						Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)			$	—					$	—					$	28,591					$	28,591
Securities—available-for-sale
U.S. Government and agency obligations			—						52,588						—						52,588
Municipal bonds			—						173,721						—						173,721
Corporate bonds			—						117,404						—						117,404
Mortgage-backed or related securities			—						2,092,209						—						2,092,209
Asset-backed securities			—						217,938						—						217,938
			—						2,653,860						—						2,653,860
Loans held for sale(1)			—						5,485						—						5,485
Equity securities			624						—						—						624
SBA servicing rights			—						—						954						954
Investment in limited partnerships			—						—						12,394						12,394
Derivatives
Interest rate swaps			—						15,342						—						15,342
Interest rate lock and forward sales commitments			—						49						485						534
			$	624					$	2,674,736					$	42,424					$	2,717,784
Liabilities:
Junior subordinated debentures			$	—					$	—					$	74,703					$	74,703
Derivatives
Interest rate swaps			—						28,858						—						28,858
Interest rate lock and forward sales commitments			—						131						5						136
Risk participation agreement			—						85						—						85
			$	—					$	29,074					$	74,708					$	103,782

			December 31, 2022
			Level 1						Level 2						Level 3						Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)			$	—					$	—					$	28,694					$	28,694
Securities—available-for-sale
U.S. Government and agency obligations			—						55,108						—						55,108
Municipal bonds			—						261,209						—						261,209
Corporate bonds			—						121,853						—						121,853
Mortgage-backed or related securities			—						2,139,336						—						2,139,336
Asset-backed securities			—						211,525						—						211,525
			—						2,789,031						—						2,789,031
Loans held for sale(1)			—						2,305						—						2,305
Equity securities			553						—						—						553
SBA servicing rights			—						—						835						835
Investment in limited partnerships			—						—						12,427						12,427
Derivatives
Interest rate swaps			—						19,339						—						19,339
Interest rate lock and forward sales commitments			—						61						81						142
			$	553					$	2,810,736					$	42,037					$	2,853,326
Liabilities:
Junior subordinated debentures			$	—					$	—					$	74,857					$	74,857
Derivatives
Interest rate swaps			—						37,150						—						37,150
Interest rate lock and forward sales commitments			—						76						42						118
Risk participation agreement			—						67						—						67
			$	—					$	37,293					$	74,899					$	112,192

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, 2023 and December 31, 2022:

Weighted Average Rate

Financial Instruments

Valuation Technique

Unobservable Inputs

March 31, 2023

December 31, 2022

Corporate bonds (TPS)

Discounted cash flows

Discount rate

8.79

%

8.27

%

Junior subordinated debentures

Discounted cash flows

Discount rate

8.79

%

8.27

%

Loans individually evaluated

Collateral valuations

Discount to appraised value

n/a

n/a

REO

Appraisals

Discount to appraised value

68.35

%

68.35

%

Interest rate lock commitments

Pricing model

Pull-through rate

86.60

%

78.65

%

Investments in limited partnerships

Net Asset Value

Infrequent transactions

n/a

n/a

SBA servicing rights

Discounted cash flows

Constant prepayment rate

14.22

%

14.10

%

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, 2023 and 2022 (in thousands):

			Three Months Ended
			March 31, 2023
			Level 3 Fair Value Inputs
			TPS						Borrowings—Junior Subordinated Debentures						Interest Rate Lock and Forward Sales Commitments						Investments in Limited Partnerships						SBA Servicing Asset
Beginning balance			$	28,694					$	74,857					$	39					$	12,427					$	835
Net change recognized in earnings			(103)						—						441						(520)						119
Net change recognized in accumulated other comprehensive income (AOCI)			—						(154)						—						—						—
Purchases, issuances and settlements			—						—						—						487						—
Ending balance at March 31, 2023			$	28,591					$	74,703					$	480					$	12,394					$	954
			Three Months Ended
			March 31, 2022
			Level 3 Fair Value Inputs
			TPS						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						—						(1,533)						(217)						1
Net change recognized in AOCI			—						1,213						—						—						—
Purchases, issuances and settlements			—						—						—						942						—
Redemptions			—						(50,518)						—						—
Ending balance at March 31, 2022			$	27,354					$	70,510					$	(66)					$	10,982					$	1,162

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, 2023 and December 31, 2022 (in thousands):

			March 31, 2023
			Level 1						Level 2						Level 3						Total
Loans individually evaluated			$	—					$	—					$	—					$	—
REO			—						—						340						340
Loans held for sale			—						42,954						—						42,954
			December 31, 2022
			Level 1						Level 2						Level 3						Total
Loans individually evaluated			$	—					$	—					$	1,883					$	1,883
REO			—						—						340						340
Loans held for sale			—						49,474						—						49,474

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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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