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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023 and December 31, 2022, whether or not recognized or recorded in the Consolidated Statements of Financial Condition (dollars in thousands):

									June 30, 2023												December 31, 2022
			Level						Carrying Value						Estimated Fair Value						Carrying Value						Estimated Fair Value
Assets:
Cash and cash equivalents			1						$	281,325					$	281,325					$	243,062					$	243,062
Securities—trading			3						25,659						25,659						28,694						28,694
Securities—available-for-sale			2						2,465,960						2,465,960						2,789,031						2,789,031
Securities—held-to-maturity			2						1,090,949						925,485						1,109,319						933,513
Securities—held-to-maturity			3						7,621						7,631						8,648						8,667
Securities purchased under agreements to resell			2						—						—						300,000						300,000
Loans held for sale			2						60,612						60,645						56,857						56,948
Loans receivable, net			3						10,327,727						9,895,896						10,005,259						9,810,965
Equity securities			1						547						547						553						553
FHLB stock			3						20,800						20,800						12,000						12,000
Bank-owned life insurance			1						301,260						301,260						297,565						297,565
Mortgage servicing rights			3						14,266						35,185						15,331						35,148
SBA servicing rights			3						845						845						835						835
Investments in limited partnerships			3						12,776						12,776						12,427						12,427
Derivatives:
Interest rate swaps			2						18,996						18,996						19,339						19,339
Interest rate lock and forward sales commitments			2,3						349						349						142						142
Liabilities:
Demand, interest checking and money market accounts			2						9,154,158						9,154,158						10,186,439						10,186,439
Regular savings			2						2,588,298						2,588,298						2,710,090						2,710,090
Certificates of deposit			2						1,356,600						1,335,503						723,530						702,581
FHLB advances			2						270,000						270,000						50,000						50,000
Other borrowings			2						193,019						193,019						232,799						232,799
Subordinated notes, net			2						92,646						90,163						98,947						96,718
Junior subordinated debentures			3						67,237						67,237						74,857						74,857
Derivatives:
Interest rate swaps			2						36,777						36,777						37,150						37,150
Interest rate lock and forward sales commitments			2,3						2						2						118						118
Risk participation agreement			2						52						52						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 June 30, 2023 and December 31, 2022 (in thousands):

			June 30, 2023
			Level 1						Level 2						Level 3						Total
Assets:
Securities—trading
Corporate bonds (Trust Preferred Securities)			$	—					$	—					$	25,659					$	25,659
Securities—available-for-sale
U.S. Government and agency obligations			—						48,362						—						48,362
Municipal bonds			—						160,768						—						160,768
Corporate bonds			—						99,788						—						99,788
Mortgage-backed or related securities			—						1,942,398						—						1,942,398
Asset-backed securities			—						214,644						—						214,644
			—						2,465,960						—						2,465,960
Loans held for sale(1)			—						17,201						—						17,201
Equity securities			547						—						—						547
SBA servicing rights			—						—						845						845
Investment in limited partnerships			—						—						12,776						12,776
Derivatives
Interest rate swaps			—						18,996						—						18,996
Interest rate lock and forward sales commitments			—						79						270						349
			$	547					$	2,502,236					$	39,550					$	2,542,333
Liabilities:
Junior subordinated debentures			$	—					$	—					$	67,237					$	67,237
Derivatives
Interest rate swaps			—						36,777						—						36,777
Interest rate lock and forward sales commitments			—						—						2						2
Risk participation agreement			—						52						—						52
			$	—					$	36,829					$	67,239					$	104,068

			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 June 30, 2023 and December 31, 2022:

																		Weighted Average Rate
Financial Instruments						Valuation Technique						Unobservable Inputs						June 30, 2023						December 31, 2022
Corporate bonds (TPS)						Discounted cash flows						Discount rate						10.55		%				8.27		%
Junior subordinated debentures						Discounted cash flows						Discount rate						10.55		%				8.27		%
Loans individually evaluated						Collateral valuations						Discount to appraised value						n/a						n/a
REO						Appraisals						Discount to appraised value						58.18		%				68.35		%
Interest rate lock commitments						Pricing model						Pull-through rate						87.76		%				78.65		%
SBA servicing rights						Discounted cash flows						Constant prepayment rate						14.61		%				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 and six months ended June 30, 2023 and 2022 (in thousands):

			Three Months Ended
			June 30, 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			$	28,591					$	74,703					$	480					$	12,394					$	954
Net change recognized in earnings			(2,932)						—						(212)						(142)						(109)
Net change recognized in accumulated other comprehensive income (AOCI)			—						(7,466)						—						—						—
Purchases, issuances and settlements			—						—						—						524						—
Ending balance at June 30, 2023			$	25,659					$	67,237					$	268					$	12,776					$	845
			Six Months Ended
			June 30, 2023
			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			$	28,694					$	74,857					$	39					$	12,427					$	835
Net change recognized in earnings			(3,035)												229						(662)						10
Net change recognized in AOCI									(7,620)						—						—						—
Purchases, issuances and settlements			—						—						—						1,011						—
Ending balance at June 30, 2023			$	25,659					$	67,237					$	268					$	12,776					$	845
			Three Months Ended
			June 30, 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			$	27,354					$	70,510					$	(66)					$	10,982					$	1,162
Net change recognized in earnings			532						—						423						(155)						(147)
Net change recognized in AOCI			—						1,719						—						—						—
Purchases, issuances and settlements			—						—						—						1,054						—
Ending balance at June 30, 2022			$	27,886					$	72,229					$	357					$	11,881					$	1,015
			Six Months Ended
			June 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			905						—						(1,110)						(372)						(146)
Net change recognized in AOCI			—						2,932						—						—						—
Purchases, issuances and settlements			—						—						—						1,996						—
Redemptions			—						(50,518)						—						—						—
Ending balance at June 30, 2022			$	27,886					$	72,229					$	357					$	11,881					$	1,015

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 June 30, 2023 and December 31, 2022 (in thousands):

			June 30, 2023
			Level 1						Level 2						Level 3						Total
REO			—						—						546						546
Loans held for sale			—						42,134						—						42,134
			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 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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