Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020 and December 31, 2019, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at September 30, 2020
(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	$	—	$	1,218,331	$	—	$	—	$	1,218,331
GSE CMOs		—		1,434,665		—		—		1,434,665
Total mortgage-related debt securities	$	—	$	2,652,996	$	—	$	—	$	2,652,996
Other Debt Securities Available for Sale:
U. S. Treasury obligations	$	61,984	$	—	$	—	$	—	$	61,984
GSE debentures		—		993,965		—		—		993,965
Asset-backed securities		—		532,253		—		—		532,253
Municipal bonds		—		26,857		—		—		26,857
Corporate bonds		—		876,798		—		—		876,798
Capital trust notes		—		88,891		—		—		88,891
Total other debt securities	$	61,984	$	2,518,764	$	—	$	—	$	2,580,748
Total debt securities available for sale	$	61,984	$	5,171,760	$	—	$	—	$	5,233,744
Equity securities:
Preferred stock	$	15,291	$	—	$	—	$	—	$	15,291
Mutual funds		—		16,157		—		—		16,157
Total equity securities	$	15,291	$	16,157	$	—	$	—	$	31,448
Total securities	$	77,275	$	5,187,917	$	—	$	—	$	5,265,192

	Fair Value Measurements at December 31, 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	$	—	$	1,552,623	$	—	$	—	$	1,552,623
GSE CMOs		—		1,801,112		—		—		1,801,112
Total mortgage-related debt securities	$	—	$	3,353,735	$	—	$	—	$	3,353,735
Other Debt Securities Available for Sale:
U.S. Treasury obligations	$	41,839	$	—	$	—	$	—	$	41,839
GSE debentures		—		1,094,240		—		—		1,094,240
Asset-backed securities		—		373,254		—		—		373,254
Municipal bonds		—		26,892		—		—		26,892
Corporate bonds		—		867,182		—		—		867,182
Capital trust notes		—		95,915		—		—		95,915
Total other debt securities	$	41,839	$	2,457,483	$	—	$	—	$	2,499,322
Total debt securities available for sale	$	41,839	$	5,811,218	$	—	$	—	$	5,853,057
Equity securities:
Preferred stock	$	15,414	$	—	$	—	$	—	$	15,414
Mutual funds and common stock		—		17,416		—		—		17,416
Total equity securities	$	15,414	$	17,416	$	—	$	—	$	32,830
Total securities	$	57,253	$	5,828,634	$	—	$	—	$	5,885,887

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 September 30, 2020 and December 31, 2019, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at September 30, 2020 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⁾	$	—	$	—	$	33,324	$	33,324
Other assets⁽²⁾		—		—		4,162		4,162
Total	$	—	$	—	$	37,486	$	37,486

(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 and equity securities without readily determinable fair values. These equity securities are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

	Fair Value Measurements at December 31, 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⁾	$	—	$	—	$	42,767	$	42,767
Other assets ⁽²⁾		—		—		1,481		1,481
Total	$	—	$	—	$	44,248	$	44,248

(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 September 30, 2020 and December 31, 2019:

	September 30, 2020
					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	$	1,458,641	$	1,458,641	$	1,458,641			$	—			$	—
FHLB stock ⁽¹⁾		697,483		697,483		—				697,483				—
Loans, net		42,758,184		42,351,344		—				—				42,351,344
Financial Liabilities:
Deposits	$	31,704,941	$	31,748,169	$	20,714,861	⁽²	⁾	$	11,033,308	⁽³	⁾	$	—
Borrowed funds		15,683,303		16,447,187		—				16,447,187				—

(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, 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	$	741,870	$	741,870	$	741,870			$	—			$	—
FHLB stock ⁽¹⁾		647,562		647,562		—				647,562				—
Loans, net		41,746,517		41,699,929		—			$	—				41,699,929
Financial Liabilities:
Deposits	$	31,657,132	$	31,713,945	$	17,442,274	⁽²	⁾	$	14,271,671	⁽³	⁾	$	—
Borrowed funds		14,557,593		14,882,776		—				14,882,776				—

(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.