Disclosures About Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Disclosures About Fair Value of Financial Instruments

Schedule of the carrying amount and estimated fair value of the entity's financial instruments included in the consolidated statement of financial condition

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at March 31, 2015:

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	297,101	297,101	297,101	—	—
Securities available-for-sale	916,423		916,423	2,924	903,193	10,306
Securities held-to-maturity	90,825		92,989	—	92,989	—
Loans receivable, net	5,997,566		6,323,248	—	—	6,323,248
Accrued interest receivable	19,753		19,753	19,753	—	—
FHLB Stock	36,292		36,292	—	—	—
Total financial assets	$	7,357,960	7,685,806	319,778	996,182	6,333,554
Financial liabilities:
Savings and checking deposits	$	4,253,299	4,253,299	4,253,299	—	—
Time deposits	1,428,768		1,446,470	—	—	1,446,470
Borrowed funds	943,842		975,867	143,460	—	832,407
Junior subordinated debentures	103,094		109,373	—	—	109,373
Cash flow hedges - swaps	6,205		6,205	—	6,205	—
Accrued interest payable	1,336		1,336	1,336	—	—
Total financial liabilities	$	6,736,544	6,792,550	4,398,095	6,205	2,388,250

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at December 31, 2014:

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	240,706	240,706	240,706	—	—
Securities available-for-sale	912,371		912,371	3,157	898,617	10,597
Securities held-to-maturity	103,695		106,292	—	106,292	—
Loans receivable, net	5,922,373		6,240,079	—	—	6,240,079
Accrued interest receivable	18,623		18,623	18,623	—	—
FHLB Stock	33,293		33,293	—	—	—
Total financial assets	$	7,231,061	7,551,364	262,486	1,004,909	6,250,676
Financial liabilities:
Savings and checking accounts	$	4,154,228	4,154,228	4,154,228	—	—
Time deposits	1,478,314		1,498,539	—	—	1,498,539
Borrowed funds	888,109		919,612	162,714	—	756,898
Junior subordinated debentures	103,094		109,435	—	—	109,435
Cash flow hedges - swaps	6,273		6,273	—	6,273	—
Accrued interest payable	936		936	936	—	—
Total financial liabilities	$	6,630,954	6,689,023	4,317,878	6,273	2,364,872

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table represents assets and liabilities measured at fair value on a recurring basis at March 31, 2015 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	2,924	—		—	2,924
Debt securities:
U.S. government and agencies	—		23		—	23
Government sponsored enterprises	—		364,252		—	364,252
States and political subdivisions	—		67,279		—	67,279
Corporate	—		9,976		10,306	20,282
Total debt securities	—		441,530		10,306	451,836
Residential mortgage-backed securities:
GNMA	—		28,192		—	28,192
FNMA	—		70,503		—	70,503
FHLMC	—		39,611		—	39,611
Non-agency	—		626		—	626
Collateralized mortgage obligations:
GNMA	—		7,679		—	7,679
FNMA	—		132,706		—	132,706
FHLMC	—		169,614		—	169,614
SBA	—		9,419		—	9,419
Non-agency	—		3,313		—	3,313
Total mortgage-backed securities	—		461,663		—	461,663
Interest rate swaps	—		(6,205	)	—	(6,205	)
Total assets and liabilities	$	2,924	896,988		10,306	910,218

The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	3,157	—		—	3,157
Debt securities:
U.S. government and agencies	—		25		—	25
Government sponsored enterprises	—		333,505		—	333,505
States and political subdivisions	—		70,145		—	70,145
Corporate	—		9,830		10,597	20,427
Total debt securities	—		413,505		10,597	424,102
Residential mortgage-backed securities:
GNMA	—		29,216		—	29,216
FNMA	—		73,497		—	73,497
FHLMC	—		42,119		—	42,119
Non-agency	—		643		—	643
Collateralized mortgage obligations:
GNMA	—		8,329		—	8,329
FNMA	—		139,150		—	139,150
FHLMC			178,698			178,698
SBA	—		10,052		—	10,052
Non-agency	—		3,408		—	3,408
Total mortgage-backed securities	—		485,112		—	485,112
Interest rate swaps	—		(6,273	)	—	(6,273	)
Total assets and liabilities	$	3,157	892,344		10,597	906,098

Schedule of reconciliation of debt securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands):

	Quarter ended
	March 31, 2015			March 31, 2014
Beginning balance	$	10,597		12,251
Total net realized investment gains/ (losses) and net change in unrealized appreciation/(depreciation):
Included in net income as OTTI	—			—
Included in other comprehensive income	(291		)	140
Purchases	—			—
Sales	—			—
Transfers in to Level 3	—			—
Transfers out of Level 3	—			—
Ending balance	$	10,306		12,391

Schedule of fair value measurement for nonrecurring assets

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans measured for impairment and real estate owned.  The following table represents the fair value measurement for nonrecurring assets at March 31, 2015 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	52,926	52,926
Real estate owned	—		—	15,346	15,346
Total assets	$	—	—	68,272	68,272

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans measured for impairment and real estate owned.  The following table represents the fair value measurement for nonrecurring assets at December 31, 2014 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	54,729	54,729
Real estate owned	—		—	16,759	16,759
Total assets	$	—	—	71,488	71,488

Schedule of quantitative information about assets measured at fair value on a recurring and nonrecurring basis for Level 3 Fair Value Measurements

The table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at March 31, 2015 (dollar amounts in thousands):

	Fair value		Valuation techniques	Significant unobservable inputs	Range (weighted average)
Debt securities	$	10,306	Discounted cash flow	Discount margin	0.35% to 2.1% (0.69)%
				Default rates	1.00%
				Prepayment speeds	1.00% annually
Loans measured for impairment	52,926		Appraisal value (1)	Estimated cost to sell	10%
Real estate owned	15,346		Appraisal value (1)	Estimated cost to sell	10%

(1)  Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.