Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at June 30, 2019
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments		Total Fair Value
Assets:
Mortgage-related Debt Securities Available for Sale:
GSE certificates	$	—	$	1,315,836	$	—	$	—	$	1,315,836
GSE CMOs		—		1,459,318		—		—		1,459,318
Total mortgage-related debt securities	$	—	$	2,775,154	$	—	$	—	$	2,775,154
Other Debt Securities Available for Sale:
U. S. Treasury obligations	$	29,863	$	—	$	—	$	—	$	29,863
GSE debentures		—		1,608,363		—		—		1,608,363
Asset-backed securities		—		382,582		—		—		382,582
Municipal bonds		—		27,476		—		—		27,476
Corporate bonds		—		864,957		—		—		864,957
Capital trust notes		—		49,751		—		—		49,751
Total other debt securities	$	29,863	$	2,933,129	$	—	$	—	$	2,962,992
Total debt securities available for sale	$	29,863	$	5,708,283	$	—	$	—	$	5,738,146
Equity securities:
Preferred stock	$	15,353	$	—	$	—	$	—	$	15,353
Mutual funds and common stock		—		17,232		—		—		17,232
Total equity securities	$	15,353	$	17,232	$	—	$	—	$	32,585
Total securities	$	45,216	$	5,725,515	$	—	$	—	$	5,770,731

	Fair Value Measurements at December 31, 2018
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments		Total Fair Value
Assets:
Mortgage-related Debt Securities Available for Sale:
GSE certificates	$	—	$	1,707,521	$	—	$	—	$	1,707,521
GSE CMOs		—		1,252,761		—		—		1,252,761
Total mortgage-related debt securities	$	—	$	2,960,282	$	—	$	—	$	2,960,282
Other Debt Securities Available for Sale:
GSE debentures	$	—	$	1,328,927	$	—	$	—	$	1,328,927
Asset-backed securities		—		387,122		—		—		387,122
Municipal bonds		—		66,183		—		—		66,183
Corporate bonds		—		821,715		—		—		821,715
Capital trust notes		—		49,291		—		—		49,291
Total other debt securities	$	—	$	2,653,238	$	—	$	—	$	2,653,238
Total debt securities available for sale	$	—	$	5,613,520	$	—	$	—	$	5,613,520
Equity securities:
Preferred stock	$	13,846	$	—	$	—	$	—	$	13,846
Mutual funds and common stock		—		16,705		—		—		16,705
Total equity securities	$	13,846	$	16,705	$	—	$	—	$	30,551
Total securities	$	13,846	$	5,630,225	$	—	$	—	$	5,644,071

Summary of Carrying Values, Estimated Fair Values and Fair Value Measurement Levels of Financial Instruments

The following tables present assets and liabilities that were measured at fair value on a non-recurring basis as of June 30, 2019 and December 31, 2018

	Fair Value Measurements at June 30, 2019 Using
(in thousands)	Quoted Prices in  Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Certain impaired loans (1)	$	—	$	—	$	30,512	$	30,512
Other assets (2)		—		—		—		—
Total	$	—	$	—	$	30,512	$	30,512

(1) Represents the fair value of impaired loans, based on the value of the collateral.

(2) Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets.

	Fair Value Measurements at December 31, 2018 Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Certain impaired loans (1)	$	—	$	—	$	38,213	$	38,213
Other assets (2)		—		—		1,265		1,265
Total	$	—	$	—	$	39,478	$	39,478

(1) Represents the fair value of impaired loans, based on the value of the collateral.

(2) Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets.

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Consolidated Statements of Condition at June 30, 2019 and December 31, 2018:

	June 30, 2019
					Fair Value Measurement Using
(in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	1,228,295	$	1,228,295	$	1,228,295		$	—		$	—
FHLB stock (1)		582,348		582,348		—			582,348			—
Loans and leases, net		40,725,589		40,523,888		—			—			40,523,888
Financial Liabilities:
Deposits	$	32,332,526	$	32,392,499	$	18,046,240	(2)	$	14,346,259	(3)	$	—
Borrowed funds		13,082,138		13,242,632		—			13,242,632			—

(1) Carrying value and estimated fair value are at cost.

(2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(3) Certificates of deposit.

	December 31, 2018
					Fair Value Measurement Using
(in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	1,474,955	$	1,474,955	$	1,474,955		$	—		$	—
FHLB stock (1)		644,590		644,590		—			644,590			—
Loans and leases, net		40,006,088		39,461,985		—			—			39,461,985
Financial Liabilities:
Deposits	$	30,764,430	$	30,748,729	$	18,570,108	(2)	$	12,178,621	(3)	$	—
Borrowed funds		14,207,866		14,136,526		—			14,136,526			—

(1) Carrying value and estimated fair value are at cost.

(2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(3) Certificates of deposit.