Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of fair value assets and liabilities measured on recurring basis

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of March 31, 2019 and December 31, 2018, by level within the fair value hierarchy:



	March 31, 2019
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
U.S. government and agency obligations	$	54,517	$	54,517	$	—	$	—
Mortgage-backed securities and collateralized mortgage obligations	967,129		—		967,129		—
Municipal obligations	190		—		190		—
Corporate debt securities	63,804		—		63,804		—
Trust preferred securities	4,537		—		4,537		—
Total debt securities available for sale	1,090,177		54,517		1,035,660		—
Equity securities	1,428		1,428		—		—
Derivative assets	2,213		—		2,213		—
	$	1,093,818	$	55,945	$	1,037,873	$	—

Derivative liabilities	$	8,271	$	—	$	8,271	$	—

10. Fair Value Measurements (continued)



	December 31, 2018
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
U.S. government and agency obligations	$	54,157	$	54,157	$	—	$	—
Mortgage-backed securities and collateralized mortgage obligations	920,007		—		920,007		—
Municipal obligations	987		—		987		—
Corporate debt securities	53,467		—		53,467		—
Trust preferred securities	4,250		—		4,250		—
Total debt securities available for sale	1,032,868		54,157		978,711		—
Equity securities	1,890		1,890		—
Derivative assets	865		—		865		—
	$	1,035,623	$	56,047	$	979,576	$	—

Derivative liabilities	$	3,467	$	—	$	3,467	$	—

Schedule of fair value assets and liabilities measured on non-recurring basis

The following tables present the asset and liabilities reported on the consolidated statements of financial condition at their fair values as of March 31, 2019 and December 31, 2018, by level within the fair value hierarchy:



	March 31, 2019
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)

Impaired loans	$	3,546	$	—	$	—	$	3,546
Mortgage servicing rights	527		—		—		527
	$	4,073	$	—	$	—	$	4,073



	December 31, 2018
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)

Impaired loans	$	1,525	$	—	$	—	$	1,525
Real estate owned	92		—		—		92
Mortgage servicing rights	442		—		—		442
	$	2,059	$	—	$	—	$	2,059

Schedule of qualitative information for Level 3 assets measured at fair value on a non-recurring basis

The following table presents qualitative information for Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2019 and December 31, 2018:



	March 31, 2019
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs	Weighted Average
	(In thousands)

Impaired loans	$	3,546	Appraised value⁽²⁾	Discount for cost to sell⁽³⁾	6.0% - 8.0%	6.3%
Mortgage servicing rights	527		Estimated cash flow	Prepayment speeds	3.7% - 27.2%	13.4%

10. Fair Value Measurements (continued)



	December 31, 2018
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs	Weighted Average
	(In thousands)

Impaired loans	$	1,525	Appraised value⁽²⁾	Discount for cost to sell⁽³⁾	6.0% - 8.0%	7.5%
Real estate owned	92		Contract sales price⁽¹⁾	Discount for cost to sell⁽³⁾	6.0%	6.0%
Mortgage servicing rights	442		Estimated cash flow	Prepayment speeds	3.3% - 26.8%	12.0%

(1) Value is based on signed contract for sale.
(2) Value is based on independent appraisal of the market or fair value of the loan's underlying collateral.
(3) Includes commissions, fees and other costs.

Schedule of fair value assets and liabilities on Consolidated Balance Sheets

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of March 31, 2019 and December 31, 2018:



	March 31, 2019
			Fair Value Measurements
	Carrying Value		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Financial assets:
Cash and cash equivalents	$	65,141	$	65,141	$	65,141	$	—	$	—
Debt securities available for sale	1,090,177		1,090,177		54,517		1,035,660		—
Debt securities held to maturity	287,529		284,450		33,426		251,024		—
Equity securities	1,428		1,428		1,428		—		—
Federal Home Loan Bank stock	54,863		54,863		—		54,863		—
Loans receivable, net	4,948,578		4,917,066		—		—		4,917,066
Derivative assets	2,213		2,213		—		2,213		—

Financial liabilities:			—
Deposits	$	4,606,628	$	4,601,963	$	—	$	4,601,963	$	—
Borrowings	1,098,635		1,097,897		—		1,097,897		—
Derivative liabilities	8,271		8,271		—		8,271		—



	December 31, 2018
			Fair Value Measurements
	Carrying Value		Total Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Financial assets:
Cash and cash equivalents	$	42,201	$	42,201	$	42,201	$	—	$	—
Debt securities available for sale	1,032,868		1,032,868		54,157		978,711		—
Debt securities held to maturity	262,143		254,841		23,241		231,600		—
Equity securities	1,890		1,890		1,890		—		—
Federal Home Loan Bank stock	58,938		58,938		—		58,938		—
Loans held-for-sale	8,081		8,081		—		8,081		—
Loans receivable, net	4,916,840		4,841,830		—		—		4,841,830
Derivative assets	1,342		1,342		—		1,342		—

Financial liabilities:
Deposits	$	4,413,873	$	4,402,336	$	—	$	4,402,336	$	—
Borrowings	1,189,180		1,185,007		—		1,185,007		—
Derivative liabilities	3,944		3,944		—		3,944		—