SALES OF SUBSIDIARY AND BUSINESS UNITS SALES OF SUBSIDIARY AND BUSINESS UNITS (Tables)

3 Months Ended

Mar. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of disposal groups and discontinued operations

The following table summarizes the calculation of the net gain on disposal of discontinued operations:

	Three Months Ended
	March 31, 2017
	(In thousands)
Proceeds from the transaction	$	63,332
Compensation expense related to the transaction	(4,000		)
Other transaction costs	(3,703		)
Net cash proceeds	55,629
Book value of certain assets sold	(2,455		)
MSRs sold	(37,772		)
Goodwill	(2,100		)
Net gain on disposal	$	13,302

The following tables present the financial information of discontinued operations as of the dates or for the periods indicated:

Statements of Financial Condition of Discontinued Operations

	March 31, 2017		December 31, 2016
	(In thousands)
ASSETS
Loans held-for-sale, carried at fair value (1)	$	420,449	$	406,338
Loans held-for-sale, carried at lower of cost or fair value	682		295
Servicing rights carried at fair value	—		37,681
Premises, equipment, and capital leases, net	—		2,700
Goodwill	—		2,100
Other assets	11,674		33,380
Assets of discontinued operations	$	432,805	$	482,494
LIABILITIES
Accrued expenses and other liabilities (1)	$	30,309	$	34,480
Liabilities of discontinued operations	$	30,309	$	34,480

(1) Includes $20.0 million and $16.5 million of GNMA loans, respectively, that are delinquent more than 90 days and subject to a repurchase option by the Company at March 31, 2017 and December 31, 2016. As such, the Company is deemed to have regained control over those previously transferred assets and has re-recognized them with an offsetting liability recognized in Accrued Expenses and Other Liabilities in the Statements of Financial Condition of Discontinued Operations, as a secured borrowing. Because the Company intends to exercise its option to repurchase and sell them within one year, they have been classified as part of discontinued operations.

Statements of Operations of Discontinued Operations

	Three Months Ended
	March 31,
	2017		2016
Interest income
Loans, including fees	$	3,266	$	3,178
Total interest income	3,266		3,178
Noninterest income
Net gain on disposal	13,302		—
Loan servicing income (loss)	1,551		(3,083		)
Net revenue on mortgage banking activities	29,434		33,684
Loan brokerage income	90		(27		)
All other income	424		192
Total noninterest income	44,801		30,766
Noninterest expense
Salaries and employee benefits	24,375		23,714
Occupancy and equipment	2,357		2,799
Professional fees	102		309
Outside Service Fees	2,364		1,438
Data processing	464		508
Advertising	833		841
Restructuring expense	3,218		—
All other expenses	1,006		347
Total noninterest expense	34,719		29,956
Income from discontinued operations before income taxes	13,348		3,988
Income tax expense	5,523		1,607
Income from discontinued operations	$	7,825	$	2,381

Statements of Cash Flows of Discontinued Operations

	Three Months Ended
	March 31,
	2017		2016
Net cash used in operating activities	(10,111	)	(56,100	)
Net cash provided by investing activities	55,629		—
Net cash provided by (used in) discontinued operations	45,518		(56,100	)

The following table summarizes the calculation of the gain on sale of The Palisades Group:

	Three Months Ended
	June 30, 2016
	(In thousands)
Consideration received (paid)
Liabilities forgiven by The Palisades Group	$	1,862
Liabilities assumed by the Company	(1,078		)
The Note	2,370
Aggregate fair value of consideration received	3,154
Less: net assets sold (carrying amount of The Palisades Group)	(540		)
Gain on sale of The Palisades Group	$	3,694