Luther Burbank (LBC) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2018	Nov. 05, 2018
Document and Entity Information [Abstract]
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Entity Registrant Name	Luther Burbank Corp.
Entity Central Index Key	1,475,348
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock Shares Outstanding		56,543,211
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 60,698	$ 75,578
Available for sale investment securities, at fair value	614,576	503,288
Held to maturity investment securities, at amortized cost (fair value of $11,527 and $6,925 at September 30, 2018 and December 31, 2017, respectively)	11,935	6,921
Loans receivable, net of allowance for loan losses of $34,086 and $30,312 as of September 30, 2018 and December 31,2017, respectively	5,891,702	5,011,235
Accrued interest receivable	20,060	14,901
Federal Home Loan Bank (FHLB) stock, at cost	27,235	27,733
Premises and equipment, net	21,571	22,452
Goodwill	3,297	3,297
Prepaid expenses and other assets	41,341	38,975
Total assets	6,692,415	5,704,380
Liabilities:
Deposits	4,943,944	3,951,238
FHLB advances	962,139	989,260
Junior subordinated deferrable interest debentures	61,857	61,857
Senior debt $95,000 face amount, 6.5% interest rate, due September 30, 2024 (less debt issuance costs of $772 and $839 at June 30, 2018 and December 31, 2017, respectively)	94,262	94,161
Accrued interest payable	4,974	1,781
Other liabilities and accrued expenses	53,840	56,338
Total liabilities	6,121,016	5,154,635
Commitments and contingencies (Note 15)
Stockholders' equity:
Common stock, no par value; 100,000,000 shares authorized; 56,543,771 and 56,422,662 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	457,428	454,287
Retained earnings	122,503	102,459
Accumulated other comprehensive loss, net of taxes	(8,532)	(7,001)
Total stockholders' equity	571,399	549,745
Total liabilities and stockholders' equity	$ 6,692,415	$ 5,704,380

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - Parenthetical - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Fair value of held-to-maturity securities	$ 11,527	$ 6,925
Allowance for loan losses	$ 34,086	$ 30,312
Liabilities:
Debt interest rate	6.50%
Stockholders' Equity Attributable to Parent [Abstract]
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	56,543,771	56,422,662
Common stock shares outstanding	56,543,771	56,422,662
Senior Unsecured Term Notes, September 2014 | Senior Unsecured Term Notes
Liabilities:
Principal	$ 95,000	$ 95,000
Debt interest rate	6.50%
Unamortized debt issuance costs	$ 738	$ 839

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest and fee income:
Loans	$ 55,644	$ 44,180	$ 153,550	$ 124,096
Investment securities	3,266	1,683	8,638	4,857
Cash and cash equivalents	489	320	1,178	662
Total interest and fee income	59,399	46,183	163,366	129,615
Interest expense:
Deposits	19,650	10,156	46,141	27,527
FHLB advances	5,860	5,260	17,502	12,796
Junior subordinated deferrable interest debentures	600	430	1,655	1,218
Senior debt	1,577	1,577	4,733	4,732
Total interest expense	27,687	17,423	70,031	46,273
Net interest income before provision for (reversal of) loan losses	31,712	28,760	93,335	83,342
Provision for (reversal of) loan losses (Note 3)	650	1,550	3,450	(4,622)
Net interest income after provision for (reversal of) loan losses	31,062	27,210	89,885	87,964
Noninterest income:
Loans held for sale	140	4,133	140	3,277
FHLB dividends	622	581	1,725	1,777
Other income	281	217	1,020	960
Total noninterest income	1,043	4,931	2,885	6,014
Noninterest expense:
Compensation and related benefits	9,018	8,664	27,836	28,384
Deposit insurance premium	483	580	1,382	1,408
Professional and regulatory fees	394	428	1,295	1,453
Occupancy	1,418	1,339	4,018	3,860
Depreciation and amortization	700	717	2,108	2,179
Data processing	895	791	2,490	2,378
Marketing	1,235	253	2,009	637
Other expenses	947	1,010	3,587	3,024
Total noninterest expense	15,090	13,782	44,725	43,323
Income before provision for income taxes	17,015	18,359	48,045	50,655
Provision for income taxes	4,886	612	13,588	1,691
Net income	$ 12,129	$ 17,747	$ 34,457	$ 48,964
Basic earnings per common share (in usd per share)	$ 0.22	$ 0.42	$ 0.61	$ 1.17
Diluted earnings per common share (in usd per share)	0.21	0.42	0.61	1.17
Dividends per common share (in usd per share)	$ 0.06	$ 0.01	$ 0.23	$ 0.49

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Statement - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 12,129	$ 17,747	$ 34,457	$ 48,964
Unrealized (loss) gain on available for sale investment securities:
Unrealized holding (loss) gain arising during the period	(1,196)	(196)	(5,108)	595
Tax effect	352	7	1,467	(21)
Net of tax	(844)	(189)	(3,641)	574
Unrealized gain on cash flow hedge:
Unrealized holding gain arising during the period	133	120	506	256
Tax effect	(39)	(4)	(146)	(9)
Net of tax	94	116	360	247
Total other comprehensive (loss) income	(750)	(73)	(3,281)	821
Comprehensive income	$ 11,379	$ 17,674	$ 31,176	$ 49,785

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Total	Restricted Stock Units	Common Stock	Common StockRestricted Stock Awards	Common StockRestricted Stock Units	Retained Earnings	Retained EarningsRestricted Stock Units	Accumulated Other Comprehensive (Loss) Income (Net of Taxes) Securities	Accumulated Other Comprehensive (Loss) Income (Net of Taxes) Cash Flow Hedge
Beginning balance (shares) at Dec. 31, 2017			56,422,662
Beginning balance at Dec. 31, 2017	$ 549,745		$ 454,287			$ 102,459		$ (6,214)	$ (787)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,457					34,457
Other comprehensive (loss) income	(3,281)							(3,641)	360
Reclassification of prior year tax benefit related to re-measuring deferred taxes on items recorded to other comprehensive income	0					(1,750)		1,529	221
Issuance of restricted stock awards				131,140
Vested restricted stock units					12,710
Shares surrendered to pay taxes on stock based compensation (shares)					(4,057)
Shares withheld to pay taxes on stock based compensation		$ (49)			$ (49)
Restricted stock forfeitures (shares)					(18,684)
Restricted stock forfeitures		$ (37)			$ (38)		$ 1
Stock-based compensation expense	3,228		$ 3,228
Cash dividends	(12,664)					(12,664)
Ending balance (shares) at Sep. 30, 2018			56,543,771
Ending balance at Sep. 30, 2018	$ 571,399		$ 457,428			$ 122,503		$ (8,326)	$ (206)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical)	9 Months Ended
	Sep. 30, 2018$ / shares
Statement of Stockholders' Equity [Abstract]
Cash dividends	$ 0.23

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 34,457	$ 48,964
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,108	2,179
Provision for (reversal of) loan losses	3,450	(4,622)
Amortization of deferred loan costs, net	7,421	6,745
Amortization of premiums on investment securities, net	1,559	2,166
Loans held for sale	(140)	(3,277)
Originations of loans held for sale	0	(25,809)
Proceeds from sale of loans held for sale	0	33,618
Stock based compensation expense, net of forfeitures	3,190	0
Other items, net	(41)	(17)
Effect of changes in:
Accrued interest receivable	(5,159)	(1,761)
Accrued interest payable	3,193	810
Prepaid expenses and other assets	1,060	(6,521)
Other liabilities and accrued expenses	(3,813)	753
Net cash provided by operating activities	47,285	53,228
Cash flows from investing activities:
Proceeds from maturities or calls of available for sale investment securities	61,270	90,187
Proceeds from maturities or calls of held to maturity investment securities	344	584
Purchases of available for sale investment securities	(179,207)	(104,022)
Purchases of held to maturity investment securities	(5,375)	0
Net increase in loans receivable	(910,941)	(862,117)
Proceeds from loans held for sale previously classified as portfolio loans	19,604	655,754
Redemption (purchase) of FHLB stock, net	498	(9,749)
Purchase of premises and equipment	(1,231)	(545)
Net cash used in investing activities	(1,015,038)	(229,908)
Cash flows from financing activities:
Net increase in customer deposits	992,706	529,442
Proceeds from long term FHLB advances	350,000	330,000
Repayment of long term FHLB advances	(50,521)	(400,000)
Net change in short term FHLB advances	(326,600)	(234,219)
Shares withheld for taxes on vested restricted stock	(49)	0
Cash paid for dividends	(12,663)	(20,700)
Net cash provided by financing activities	952,873	204,523
(Decrease) increase in cash and cash equivalents	(14,880)	27,843
Cash and cash equivalents, beginning of period	75,578	59,208
Cash and cash equivalents, end of period	60,698	87,051
Supplemental disclosure of cash flow information: Cash paid during the period for:
Interest	66,837	45,463
Income taxes	15,355	1,455
Non-cash investing activity:
Loans transferred to held for sale	$ 19,603	$ 630,103

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Organization Luther Burbank Corporation (the ‘‘Company’’), a California corporation headquartered in Santa Rosa, is the bank holding company for its wholly-owned subsidiary, Luther Burbank Savings (the "Bank"), and its wholly-owned subsidiary, Burbank Investor Services. The Company also owns Burbank Financial Inc., a real estate investment company, and all the common interests in Luther Burbank Statutory Trusts I and II, entities created to issue trust preferred securities. The Bank conducts its business from its headquarters in Manhattan Beach, California. It has nine full service branches in California located in Sonoma, Marin, Santa Clara, and Los Angeles Counties and one full service branch in Washington located in King County. Additionally, there are seven loan production offices located throughout California, as well as loan production offices in King County, Washington and Clackamas County, Oregon. On April 27, 2017, the Company declared a 200 -for-1 stock split, increasing the number of issued and authorized shares from 210,000 to 42,000,000 and 500,000 to 100,000,000 , respectively. The Company also declared that the stock has zero par value, whereas the stock had previously held a stated value of $8 per share (stated value not adjusted for split). Additional shares issued as a result of the stock split were distributed immediately upon issuance to the stockholders. Share and per share amounts included in the unaudited consolidated financial statements and accompanying notes reflect the effect of the split for all periods presented. We terminated our status as a “Subchapter S” corporation as of December 1, 2017, in connection with our Initial Public Offering ("IPO") and became a taxable C Corporation. Prior to that date, as an S-Corporation, we had no U.S. federal income tax expense. On December 12, 2017, the Company completed the IPO of its common stock. In connection with the Company’s IPO, the Company sold and issued 13,972,500 shares of common stock at $10.75 per share. After deducting underwriting discounts and offering expenses, the Company received total net proceeds of $138.3 million from the IPO. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all footnotes as would be necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, these interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2017 , and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC, under the Securities and Exchange Act of 1934, (the “Exchange Act”). The unaudited consolidated financial statements include the accounts of the Company and the Bank. All intercompany accounts and transactions have been eliminated. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2018 . The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry. Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited consolidated financial statements and the disclosures provided, and actual results could differ. Earnings Per Share ("EPS") Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the year. In determining the weighted average number of shares outstanding, vested restricted stock units are included. Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of commons shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and units, calculated using the treasury stock method. The factors used in the earnings per share computation follow: (Dollars in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income $ 12,129 $ 17,747 $ 34,457 $ 48,964 Weighted average basic common shares outstanding 56,190,970 42,000,000 56,190,970 42,000,000 Add: Dilutive effects of assumed vesting of restricted stock 673,130 — 622,140 — Weighted average diluted common shares outstanding 56,864,100 42,000,000 56,813,110 42,000,000 Income per common share: Basic $ 0.22 $ 0.42 $ 0.61 $ 1.17 Diluted $ 0.21 $ 0.42 $ 0.61 $ 1.17 Anti-dilutive shares not included in calculation of diluted earnings per share — — — — New Financial Accounting Standards FASB ASU 2018-13 In August 2018, the Financial Accounting Standards Board issued guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average terms used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance also modifies certain disclosure requirements for nonpublic entities to make them less burdensome. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The adoption of this standard in not expected to have a material impact on the Company’s operating results or financial condition.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	INVESTMENT SECURITIES Available for Sale The following tables summarize the amortized cost and the estimated fair value of available for sale investment securities as of the dates indicated (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value At September 30, 2018: Government and Government Sponsored Entities: Mortgage-backed securities $ 452,567 $ 255 $ (7,297 ) $ 445,525 Agency bonds 120,405 7 (4,191 ) 116,221 Collateralized mortgage obligations 40,311 231 — 40,542 U.S. Treasury 1,009 — (48 ) 961 CRA Qualified Investment Fund 12,000 — (673 ) 11,327 Total available for sale investment securities $ 626,292 $ 493 $ (12,209 ) $ 614,576 At December 31, 2017: Government and Government Sponsored Entities: Mortgage-backed securities $ 329,561 $ 112 $ (3,452 ) $ 326,221 Agency bonds 120,405 30 (3,213 ) 117,222 Collateralized mortgage obligations 46,920 249 (1 ) 47,168 U.S. Treasury 1,010 — (26 ) 984 CRA Qualified Investment Fund 12,000 — (307 ) 11,693 Total available for sale investment securities $ 509,896 $ 391 $ (6,999 ) $ 503,288 Net unrealized losses on available for sale investment securities are recorded as accumulated other comprehensive income within stockholders’ equity totaling $8.3 million and $6.2 million , net of $3.4 million and $394 thousand in tax assets at September 30, 2018 and December 31, 2017 , respectively. At December 31, 2017, $394 thousand of a total $1.9 million tax asset resides in accumulated other comprehensive loss, while the remaining $1.5 million was included in the provision for income taxes on the consolidated statements of income related to the tax rate changes associated with the termination of S Corporation status and the change in tax law during the year ended December 31, 2017. The Company adopted ASU 2018-02 effective January 1, 2018 and reclassified the $1.5 million in stranded tax effects from the change in federal corporate tax rates on available for sale investment securities from accumulated other comprehensive loss, net to retained earnings. There were no sales or transfers of available for sale investment securities and no realized gains or losses on these securities during the three or nine months ended September 30, 2018 and 2017 . The following tables summarize the gross unrealized losses and fair value of available for sale investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Mortgage-backed securities $ 115,926 $ (1,020 ) $ 286,121 $ (6,277 ) $ 402,047 $ (7,297 ) Agency bonds — — 113,214 (4,191 ) 113,214 (4,191 ) Collateralized mortgage obligations 30 — — — 30 — U.S. Treasury — — 11,327 (673 ) 11,327 (673 ) CRA Qualified Investment Fund — — 960 (48 ) 960 (48 ) Total available for sale investment securities $ 115,956 $ (1,020 ) $ 411,622 $ (11,189 ) $ 527,578 $ (12,209 ) At September 30, 2018 , the Company held 103 mortgage-backed securities of which 76 were in a loss position and 64 had been in a loss position for twelve months or more. The Company held 13 agency bonds of which 12 were in a loss position and had been for twelve months or more. The Company also held 15 collateralized mortgage obligations, one of which was in an unrealized loss position. Of the 3 total investments in the CRA Qualified Investment Fund, all 3 were in a loss position and had been for greater than 12 months. The Company held 1 U.S. Treasury note at September 30, 2018 . This note was in a loss position for greater than 12 months. December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Mortgage-backed securities $ 93,403 $ (805 ) $ 195,645 $ (2,647 ) $ 289,048 $ (3,452 ) Agency bonds 9,851 (148 ) 104,340 (3,065 ) 114,191 (3,213 ) Collateralized mortgage obligations 1,959 (1 ) — — 1,959 (1 ) U.S. Treasury — — 984 (26 ) 984 (26 ) CRA Qualified Investment Fund 4,948 (52 ) 6,745 (255 ) 11,693 (307 ) Total available for sale investment securities $ 110,161 $ (1,006 ) $ 307,714 $ (5,993 ) $ 417,875 $ (6,999 ) At December 31, 2017 , the Company held 91 mortgage-backed securities of which 72 were in a loss position and 34 had been in a loss position for twelve months or more. The Company held 13 agency bonds of which 12 were in a loss position and 11 had been for twelve months or more. The Company also held 15 collateralized mortgage obligations, 1 of which was in an unrealized loss position. Of the 3 total investments in the CRA Qualified Investment Fund, all 3 were in a loss position and 2 had been for greater than 12 months. The Company held 1 U.S. Treasury note at year end. This note was in a loss position for greater than 12 months. The unrealized losses on the Company’s investments were caused by interest rate changes. In addition, the contractual cash flows of these investments are guaranteed by agencies sponsored by the U.S. government. Accordingly, it is expected that the securities will not be settled at a price less than amortized cost. Because the decline in market value is attributable to changes in interest rates but not credit quality, and because the Company has the ability and intent to hold those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2018 and December 31, 2017 . As of September 30, 2018 and December 31, 2017 , there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders' equity, other than the U.S. government and its agencies. Held to Maturity The following tables summarize the amortized cost and estimated fair value of held to maturity investment securities as of the dates indicated (dollars in thousands): Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value As of September 30, 2018: Government Sponsored Entities: Mortgage-backed securities $ 11,663 $ 15 $ (423 ) $ 11,255 Other investments 272 — — 272 Total held to maturity investment securities $ 11,935 $ 15 $ (423 ) $ 11,527 As of December 31, 2017: Government Sponsored Entities: Mortgage-backed securities $ 6,636 $ 73 $ (69 ) $ 6,640 Other investments 285 — — 285 Total held to maturity investment securities $ 6,921 $ 73 $ (69 ) $ 6,925 The following tables summarize the gross unrecognized losses and fair value of held to maturity investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrecognized loss position (dollars in thousands): Less than 12 Months 12 Months or More Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses As of September 30, 2018: Government Sponsored Entities: Mortgage-backed securities $ 10,123 $ (423 ) $ — $ — $ 10,123 $ (423 ) As of December 31, 2017: Government Sponsored Entities: Mortgage-backed securities $ 1,047 $ (4 ) $ 3,029 $ (65 ) $ 4,076 $ (69 ) At September 30, 2018 , the Company held 7 held to maturity mortgage-backed securities of which 6 were in a loss position and 3 had been in a loss position for twelve months or more. At December 31, 2017 , the Company held 6 held to maturity mortgage-backed securities of which 3 were in a loss position and 2 had been in a loss position for twelve months or more. The unrecognized losses on the Company’s held to maturity investments were caused by interest rate changes. In addition, the contractual cash flows of these investments are guaranteed by agencies sponsored by the U.S. government. Accordingly, it is expected that the securities will not be settled at a price less than amortized cost. Because the decline in market value is attributable to changes in interest rates but not credit quality, and because the Company has the ability and intent to hold those investments until maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2018 and December 31, 2017 . The following table summarizes the scheduled maturities of available for sale and held to maturity investment securities as of September 30, 2018 (dollars in thousands): September 30, 2018 Amortized Cost Fair Value Available for sale investments securities One to five years $ 118,414 $ 114,175 Five to ten years — — Beyond ten years 3,000 3,007 Equity securities 12,000 11,327 Mortgage-backed securities and collateralized mortgage obligations 492,878 486,067 Total available for sale investment securities $ 626,292 $ 614,576 Held to maturity investments securities Beyond ten years $ 272 $ 272 Mortgage-backed securities 11,663 11,255 Total held to maturity investment securities $ 11,935 $ 11,527 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. As such, mortgage backed securities and collateralized mortgage obligations are not included in the maturity categories above and instead are shown separately. No securities were pledged as of September 30, 2018 and December 31, 2017 .

LOANS RECEIVABLE

LOANS RECEIVABLE	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
LOANS RECEIVABLE	LOANS RECEIVABLE Loans receivable consist of the following (dollars in thousands): September 30, December 31, Permanent mortgages on: Multifamily residential $ 3,502,286 $ 2,887,438 Single family residential 2,193,365 1,957,546 Commercial real estate 163,758 112,492 Construction and land loans 16,514 41,165 Non-Mortgage (‘‘NM’’) loans 100 50 Total 5,876,023 4,998,691 Deferred loan costs, net 49,765 42,856 Allowance for loan losses (34,086 ) (30,312 ) Loans receivable held for investment, net $ 5,891,702 $ 5,011,235 Certain loans have been pledged to secure borrowing arrangements (see Note 7). The following table summarizes activity in and the allocation of the allowance for loan losses by portfolio segment (dollars in thousands): Multifamily Residential Single Family Residential Commercial Real Estate Land, NM, and Construction Total Three months ended September 30, 2018 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 20,560 $ 10,098 $ 1,841 $ 859 $ 33,358 Provision for (reversal of) loan losses 604 396 157 (507 ) 650 Charge-offs — — — — — Recoveries — 3 — 75 78 Ending balance allocated to portfolio segments $ 21,164 $ 10,497 $ 1,998 $ 427 $ 34,086 Three months ended September 30, 2017 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 15,573 $ 8,825 $ 1,912 $ 1,046 $ 27,356 Provision for (reversal of) loan losses 1,666 68 (64 ) (120 ) 1,550 Charge-offs — — — — — Recoveries — 3 — 75 78 Ending balance allocated to portfolio segments $ 17,239 $ 8,896 $ 1,848 $ 1,001 $ 28,984 Nine months ended September 30, 2018 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 18,588 $ 9,044 $ 1,734 $ 946 $ 30,312 Provision for (reversal of) loan losses 2,576 1,444 174 (744 ) 3,450 Charge-offs — — — — — Recoveries — 9 90 225 324 Ending balance allocated to portfolio segments $ 21,164 $ 10,497 $ 1,998 $ 427 $ 34,086 Nine months ended September 30, 2017 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 18,478 $ 11,559 $ 1,823 $ 1,438 $ 33,298 (Reversal of) provision for loan losses (1,239 ) (2,667 ) 25 (741 ) (4,622 ) Charge-offs — (5 ) — — (5 ) Recoveries — 9 — 304 313 Ending balance allocated to portfolio segments $ 17,239 $ 8,896 $ 1,848 $ 1,001 $ 28,984 The following tables summarize the allocation of the allowance for loan losses by impairment methodology (dollars in thousands): Multifamily Residential Single Family Residential Commercial Real Estate Land, NM, and Construction Total As of September 30, 2018: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ 25 $ — $ — $ 25 Loans collectively evaluated for impairment 21,164 10,472 1,998 427 34,061 Ending balance $ 21,164 $ 10,497 $ 1,998 $ 427 $ 34,086 Loans: Ending balance: individually evaluated for impairment $ 575 $ 7,088 $ — $ — $ 7,663 Ending balance: collectively evaluated for impairment 3,501,711 2,186,277 163,758 16,614 5,868,360 Ending balance $ 3,502,286 $ 2,193,365 $ 163,758 $ 16,614 $ 5,876,023 As of December 31, 2017: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ 25 $ — $ — $ 25 Loans collectively evaluated for impairment 18,588 9,019 1,734 946 30,287 Ending balance $ 18,588 $ 9,044 $ 1,734 $ 946 $ 30,312 Loans: Ending balance: individually evaluated for impairment $ 2,246 $ 8,991 $ 656 $ — $ 11,893 Ending balance: collectively evaluated for impairment 2,885,192 1,948,555 111,836 41,215 4,986,798 Ending balance $ 2,887,438 $ 1,957,546 $ 112,492 $ 41,215 $ 4,998,691 The Company assigns a risk rating to all loans and periodically performs detailed reviews of all such loans to identify credit risks and to assess the overall collectability of the portfolio. During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, as well as the financial performance and other characteristics of loan collateral. These credit quality indicators are used to assign a risk rating to each individual loan. The risk ratings can be grouped into six major categories, defined as follows: Pass assets are those which are performing according to contract and have no existing or known weaknesses deserving of management’s close attention. The basic underwriting criteria used to approve the loans are still valid, and all payments have essentially been made as planned. Watch assets are expected to have an event occurring in the next 90 to 120 days that will lead to a change in risk rating with the change being either favorable or unfavorable. These assets require heightened monitoring of the event by management. Special mention assets have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard assets are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. These assets have well-defined weaknesses: the primary source of repayment is gone or severely impaired (i.e., bankruptcy or loss of employment) and/or there has been a deterioration in collateral value. In addition, there is the distinct possibility that the Company will sustain some loss, either directly or indirectly (i.e., the cost of monitoring), if the deficiencies are not corrected. A deterioration in collateral value alone does not mandate that an asset be adversely classified if such factor does not indicate that the primary source of repayment is in jeopardy. Doubtful assets have the weaknesses of those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable based on current facts, conditions and values. Loss assets are considered uncollectible and of such little value that their continuance as assets, without establishment of a specific valuation allowance or charge-off, is not warranted. This classification does not necessarily mean that an asset has absolutely no recovery or salvage value; but rather, it is not practical or desirable to defer writing off a basically worthless asset (or portion thereof) even though partial recovery may be affected in the future. The following tables summarize the loan portfolio allocated by management’s internal risk ratings at September 30, 2018 and December 31, 2017 (dollars in thousands): Multifamily Residential Single Family Residential Commercial Real Estate Land, NM and Construction Total As of September 30, 2018: Grade: Pass $ 3,422,215 $ 2,169,733 $ 161,294 $ 14,461 $ 5,767,703 Watch 76,313 14,649 2,464 — 93,426 Special mention 1,017 4,779 — 2,153 7,949 Substandard 2,741 4,204 — — 6,945 Total $ 3,502,286 $ 2,193,365 $ 163,758 $ 16,614 $ 5,876,023 As of December 31, 2017: Grade: Pass $ 2,847,720 $ 1,923,960 $ 106,539 $ 41,215 $ 4,919,434 Watch 25,354 20,178 4,315 — 49,847 Special mention 6,569 9,025 — — 15,594 Substandard 7,795 4,383 1,638 — 13,816 Total $ 2,887,438 $ 1,957,546 $ 112,492 $ 41,215 $ 4,998,691 The following tables summarize an aging analysis of the loan portfolio by the time past due at September 30, 2018 and December 31, 2017 (dollars in thousands): 30 Days 60 Days 90+ Days Non-accrual Current Total As of September 30, 2018: Loans: Multifamily residential $ — $ — $ — $ 575 $ 3,501,711 $ 3,502,286 Single family residential 720 — 85 1,620 2,190,940 2,193,365 Commercial real estate — — — — 163,758 163,758 Land, NM, and construction — — — — 16,614 16,614 Total $ 720 $ — $ 85 $ 2,195 $ 5,873,023 $ 5,876,023 As of December 31, 2017: Loans: Multifamily residential $ 2,751 $ — $ — $ 2,246 $ 2,882,441 $ 2,887,438 Single family residential 4,870 3,364 — 4,135 1,945,177 1,957,546 Commercial real estate — — — 656 111,836 112,492 Land, NM, and construction — — — — 41,215 41,215 Total $ 7,621 $ 3,364 $ — $ 7,037 $ 4,980,669 $ 4,998,691 The following table summarizes information related to impaired loans at September 30, 2018 and December 31, 2017 (dollars in thousands): As of September 30, 2018 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Multifamily residential $ 575 $ 638 $ — $ 2,246 $ 2,545 $ — Single family residential 6,148 6,393 — 8,029 8,237 — Commercial real estate — — — 656 798 — 6,723 7,031 — 10,931 11,580 — With an allowance recorded: Single family residential 940 940 25 962 962 25 940 940 25 962 962 25 Total: Multifamily residential 575 638 — 2,246 2,545 — Single family residential 7,088 7,333 25 8,991 9,199 25 Commercial real estate — — — 656 798 — $ 7,663 $ 7,971 $ 25 $ 11,893 $ 12,542 $ 25 The following table summarizes information related to impaired loans for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands): Three Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Cash Basis Interest Average Recorded Investment Interest Income Cash Basis Interest With no related allowance recorded: Multifamily residential $ 953 $ — $ — $ 2,518 $ — $ — Single family residential 6,171 28 — 7,203 37 — Commercial real estate 436 — — 686 — — 7,560 28 — 10,407 37 — With an allowance recorded: Single family residential 943 7 — 976 8 — 943 7 — 976 8 — Total: Multifamily residential 953 — — 2,518 — — Single family residential 7,114 35 — 8,179 45 — Commercial real estate 436 — — 686 — — $ 8,503 $ 35 $ — $ 11,383 $ 45 $ — Nine months ended September 30, 2018 2017 Average Recorded Investment Interest Income Cash Basis Interest Average Recorded Investment Interest Income Cash Basis Interest With no related allowance recorded: Multifamily residential $ 1,520 $ — $ — $ 2,018 $ — $ — Single family residential 7,280 102 — 6,894 132 — Commercial real estate 369 — — 748 — — 9,169 102 — 9,660 132 — With an allowance recorded: Single family residential 1,255 33 — 982 25 — 1,255 33 — 982 25 — Total: Multifamily residential 1,520 — — 2,018 — — Single family residential 8,535 135 — 7,876 157 — Commercial real estate 369 — — 748 — — $ 10,424 $ 135 $ — $ 10,642 $ 157 $ — The following table summarizes the recorded investment related to troubled debt restructurings at September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, December 31, Troubled Debt Restructurings: Multifamily residential $ — $ 667 Single family residential 5,499 5,653 Total recorded investment in troubled debt restructurings $ 5,499 $ 6,320 The Company has allocated $25 thousand of allowances for loans modified in troubled debt restructurings at September 30, 2018 and December 31, 2017 . The Company does not have commitments to lend additional funds to borrowers with loans whose terms have been modified in troubled debt restructurings. There were no troubled debt restructurings during the three and nine months ended September 30, 2018 and 2017 . The Company had no troubled debt restructurings with a subsequent payment default within twelve months following the modification during the three and nine months ended September 30, 2018 and 2017 . A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. The terms of certain other loans were modified during the nine months ended September 30, 2018 and 2017 that did not meet the definition of a troubled debt restructuring. These loans have a total recorded investment of $25.7 million and $53.0 million as of September 30, 2018 and September 30, 2017 , respectively. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant such as delays in payment of up to 4 months.

NONPERFORMING ASSETS

NONPERFORMING ASSETS	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
NONPERFORMING ASSETS	NONPERFORMING ASSETS Nonperforming assets include nonperforming loans plus real estate owned (foreclosed property). The Company’s nonperforming assets and trends related to those assets at September 30, 2018 and December 31, 2017 are indicated below (dollars in thousands): September 30, December 31, Non-accrual loans: Multifamily residential $ 575 $ 2,246 Single family residential 1,620 4,135 Commercial real estate — 656 Total non-accrual loans 2,195 7,037 Real estate owned — — Total nonperforming assets $ 2,195 $ 7,037 No interest income was recognized on non-accrual loans during the three and nine months ended September 30, 2018 and 2017 . Contractual interest not accrued on nonperforming loans during the three and nine months ended September 30, 2018 totaled $50 thousand and $203 thousand , respectively, compared with $77 thousand and $186 thousand for the three and nine months ended September 30, 2017 , respectively. Generally, nonperforming loans are considered impaired, because the repayment of the loan will not be made in accordance with the original contractual agreement.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	9 Months Ended
	Sep. 30, 2018
Transfers and Servicing [Abstract]
MORTGAGE SERVICING RIGHTS	MORTGAGE SERVICING RIGHTS Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and conducting foreclosure proceedings. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers. Mortgage loans serviced for others are not reported as assets. The principal balances of these loans are as follows (dollars in thousands): September 30, December 31, Mortgage loans serviced for: FHLMC $ 536,343 $ 625,545 Other financial institutions 149,092 158,136 Total mortgage loans serviced for others $ 685,435 $ 783,681 Custodial account balances maintained in connection with serviced loans totaled $11.5 million and $5.2 million at September 30, 2018 and December 31, 2017 , respectively. Activity for mortgage servicing rights are as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Beginning Balance $ 3,868 $ 1,258 $ 4,255 $ 1,099 Additions 139 2,885 139 3,126 Disposals — — — — Change in fair value due to changes in assumptions — — — — Other changes in fair value (268 ) (65 ) (655 ) (147 ) Ending balance $ 3,739 $ 4,078 $ 3,739 $ 4,078 Fair value as of September 30, 2018 was determined using a discount rate of 10% , prepayment speeds ranging from 5.6% to 70.4% , depending on the stratification of the specific right, and a weighted average default rate of 5% . Fair value as of December 31, 2017 was determined using a discount rate of 10% , prepayment speeds ranging from 5.8% to 70.4% , depending on the stratification of the specific right, and a weighted average default rate of 5% .

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2018
Banking and Thrift [Abstract]
DEPOSITS	DEPOSITS A summary of deposits at September 30, 2018 and December 31, 2017 is as follows (dollars in thousands): September 30, December 31, Certificate accounts $ 3,232,976 $ 2,242,682 Money market savings 1,367,089 1,389,425 NOW accounts 173,789 203,159 Money market checking 100,016 85,073 Non-interest bearing demand 70,074 30,899 $ 4,943,944 $ 3,951,238 The Company had certificates of deposit with a denomination of $100 thousand or more totaling $2.3 billion and $1.9 billion at September 30, 2018 and December 31, 2017 , respectively. The Company had certificates of deposit that meet or exceed the FDIC Insurance limit of $250 thousand of $1.2 billion and $1.1 billion at September 30, 2018 and December 31, 2017 , respectively. The Company utilizes brokered deposits as an additional source of funding. The Company had brokered deposits of $527.7 million and $278.4 million at September 30, 2018 and December 31, 2017 , respectively. Maturities of the Company’s certificate accounts at September 30, 2018 are summarized as follows (dollars in thousands): October 1 - December 31, 2018 $ 952,094 Year ending December 31, 2019 1,358,051 Year ending December 31, 2020 687,505 Year ending December 31, 2021 203,322 Year ending December 31, 2022 26,738 Thereafter 5,266 $ 3,232,976

FEDERAL HOME LOAN BANK AND FEDE

FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES	9 Months Ended
	Sep. 30, 2018
Banking and Thrift [Abstract]
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES	FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES The Bank may borrow from the Federal Home Loan Bank ("FHLB"), on either a short-term or long-term basis, up to 40% of its assets provided that adequate collateral has been pledged. As of September 30, 2018 and December 31, 2017 , the Bank had pledged various mortgage loans totaling approximately $2.2 billion and $2.4 billion , respectively, as well as the FHLB stock held by the Bank to secure these borrowing arrangements. The Bank has access to the Loan and Discount Window of the Federal Reserve Bank of San Francisco ("FRB"). Advances under this window are subject to the Bank providing qualifying collateral. Various mortgage loans totaling approximately $406.5 million and $379.0 million as of September 30, 2018 and December 31, 2017 , respectively, secure this borrowing arrangement. There were no borrowings outstanding with the FRB as of September 30, 2018 and December 31, 2017 . The following table discloses the Bank’s outstanding advances from the Federal Home Loan Bank of San Francisco (dollars in thousands): As of September 30, 2018 Outstanding Balances Minimum Interest Rate Maximum Interest Rate Weighted Average Rate September 30, December 31, Maturity Dates Fixed rate short-term $ 85,000 $ 411,600 2.33 % 2.33 % 2.33 % October 2018 Fixed rate long-term 777,139 427,660 1.40 % 7.69 % 2.31 % July 2019 to August 2032 Variable rate long-term 100,000 150,000 2.32 % 2.52 % 2.42 % August 2019 to January 2020 $ 962,139 $ 989,260 The Bank's available borrowing capacity based on pledged loans to the FRB and the FHLB totaled $924.4 million and $1.1 billion at September 30, 2018 and December 31, 2017 , respectively. Short-term borrowings are borrowings with original maturities of 90 days or less. During the three months ended September 30, 2018 there was a maximum amount of short term borrowings outstanding of $85.0 million , an average amount outstanding of $62.4 million and a weighted average interest rate of 2.09% . The following table summarizes maturities over the next five years as of September 30, 2018 (dollars in thousands): October 1 - December 31, 2018 $ 85,000 Year ending December 31, 2019 275,000 Year ending December 31, 2020 150,000 Year ending December 31, 2021 150,600 Year ending December 31, 2022 — Thereafter 301,539 $ 962,139

JUNIOR SUBORDINATED DEFERRABLE

JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES	JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES The Company formed wholly owned trust companies (the ‘‘Trusts’’) which issued guaranteed preferred beneficial interests in the Company’s junior subordinated deferrable interest debentures (‘‘the Trust Securities’’). The Company is not considered the primary beneficiary of the Trusts and therefore, the Trusts are not consolidated in the Company’s financial statements, but rather the junior subordinated debentures are shown as a liability. The Company’s investment in the common securities of the Trusts, totaling $1.9 million , are included in other assets on the unaudited consolidated statements of financial condition. The sole asset of the Trusts are junior subordinated deferrable interest debentures (the ‘‘Notes’’). At September 30, 2018 and December 31, 2017 , the Company had two Trusts which have issued Trust Securities in a private placement transaction. The Trusts have invested the proceeds of such Trust Securities in the Notes. Each of the Notes has an interest rate equal to the corresponding Trust Securities distribution rate. The Company has the right to defer payment of interest on the Notes at any time or from time to time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the relevant Notes. During any such extension period, distributions on the Trust Securities will also be deferred, and the Company’s ability to pay dividends on its common stock will be restricted. The Company has entered into contractual arrangements which, taken collectively, fully and unconditionally guarantee payment of: (i) accrued and unpaid distributions required to be paid on the Trust Securities; (ii) the redemption price with respect to any Trust Securities called for redemption by the Trusts; and (iii) payments due upon a voluntary or involuntary dissolution, winding up or liquidation of the Trusts. The Trust Securities are mandatorily redeemable upon maturity of the Notes, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the Notes purchased by the Trusts, in whole or in part, on or after the redemption date. As specified in the indenture, if the Notes are redeemed prior to maturity, the redemption price will be the principal amount and any accrued but unpaid interest. The following table is a summary of the outstanding Trust Securities and Notes at September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, 2018 December 31, 2017 Date Maturity Rate Index Issuer Amount Rate Amount Rate Issued Date (Quarterly Reset) Luther Burbank Statutory Trust I $ 41,238 3.71 % $ 41,238 2.97 % 3/1/2006 6/15/2036 3 month LIBOR + 1.38% Luther Burbank Statutory Trust II $ 20,619 3.95 % $ 20,619 3.21 % 3/1/2007 6/15/2037 3 month LIBOR + 1.62%

SENIOR DEBT

SENIOR DEBT	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
SENIOR DEBT	SENIOR DEBT In September 2014, the Company issued $95 million in senior unsecured term notes to qualified institutional investors. The proceeds of this debt were used to retire senior unsecured term notes issued between 2009 and 2011 totaling $62.7 million , including a prepayment penalty of $243 thousand , and make an additional contribution to the Bank of $28 million in the form of paid-in capital. The balance of the proceeds, or approximately $2.7 million , was retained at the holding company to be used as cash reserves and for general corporate purposes. The following table summarizes information on these notes as of September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, 2018 December 31, 2017 Principal Unamortized debt issuance costs Principal Unamortized debt issuance costs Maturity Date Fixed Interest Rate Senior Unsecured Term Notes $ 95,000 $ 738 $ 95,000 $ 839 9/30/2024 6.50 %

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES In connection with the initial public offering, the Company terminated its S Corporation status and became a taxable entity (“C Corporation”) on December 1, 2017. As such, any periods prior to December 1, 2017 will only reflect an effective state income tax rate. The provision for income taxes for the three and nine months ended September 30, 2018 and 2017 differs from the statutory federal rate of 21% and 35%, respectively, due to the following (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Statutory U.S. Federal Income Tax $ 3,573 $ 6,426 $ 10,089 $ 17,729 Increase (decrease) resulting from: Benefit of S Corporation status — (6,426 ) — (17,729 ) State Taxes, net of federal benefit 1,312 612 3,533 1,691 Other 1 — (34 ) — Provision for income taxes $ 4,886 $ 612 $ 13,588 $ 1,691

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION	STOCK BASED COMPENSATION The Company’s stock based compensation consists of restricted stock awards (RSAs) and restricted stock units (RSUs) granted under its 2017 Omnibus Equity and Incentive Compensation Plan ("Omnibus Plan"). In connection with its IPO in December 2017, the Company granted RSAs and RSUs to employees and nonemployee directors which all vest ratably over three years. At the same time, the Company granted RSUs in exchange for unvested phantom stock awards held by employees and all vested and unvested phantom stock awards held by nonemployee directors on a per share basis. The RSUs were subjected to the same vesting schedule and deferral elections that existed for the original phantom stock awards. In recognition of prior and current service, additional RSAs were granted during the first quarter of 2018. These awards to nonemployee directors vest over one year, while awards to employees vest ratably over three years. All RSAs and RSUs were granted at the fair value of the common stock at the time of the award. The RSAs and RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. Non-cash stock compensation expense recognized for RSAs and RSUs for the three and nine months ended September 30, 2018 totaled $1.1 million and $3.2 million , respectively. No RSAs or RSUs had been granted prior to December 2017. As of September 30, 2018 , there was $5.5 million of unrecognized compensation expense related to 1,209,607 unvested RSAs and RSUs. This expense is expected to be recognized over a weighted average period of 1.95 years . As of September 30, 2018 , 169,490 shares of RSUs were vested and remain unsettled per the original deferral elections. The following table summarizes share information about restricted stock awards and restricted stock units for the nine months ended September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value Beginning of the period balance 1,319,700 $ 10.75 Shares granted 131,140 12.77 Shares settled (53,059 ) 10.75 Shares forfeited (18,684 ) 11.41 End of the period balance 1,379,097 $ 10.93 Under its Omnibus Plan, the Company reserved 3,360,000 shares of common stock for new awards. At September 30, 2018 and December 31, 2017 , there were 2,577,243 and 2,689,699 shares, respectively, of common stock reserved and available for grant through restricted stock or other awards under the Omnibus Plan.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Fair Value Measurements Fair Value Hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 - Quoted market prices for identical instruments traded in active exchange markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3 - Model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use on pricing the asset or liability. Valuation techniques include management judgment and estimation which may be significant. Because broadly traded markets do not exist for most of the Company’s financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. These determinations are subjective in nature, involve uncertainties and matters of significant judgment and do not include tax ramifications; therefore, the results cannot be determined with precision, substantiated by comparison to independent markets and may not be realized in an actual sale or immediate settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. For all of these reasons, the aggregation of the fair value calculations presented herein do not represent, and should not be construed to represent, the underlying value of the Company. Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities, or total earnings. The following methods and assumptions were used to estimate the fair value of financial instruments: For cash and cash equivalents, variable rate loans, accrued interest receivable and payable, demand deposits and short-term borrowings, the carrying amount is estimated to be fair value. The fair value of accrued interest receivable/payable balances are determined using inputs and fair value measurements commensurate with the asset or liability from which the accrued interest is generated. Fair values for available for sale investment securities, which include primarily debt securities issued by U.S. government sponsored agencies, are based on quoted market prices for similar securities. The fair value of loans held for sale recorded at level three are determined by two methodologies. The first methodology is used for single family portfolio loans that have been designated as held for sale after having been retained on the balance sheet for at least twelve months of seasoning. To be announced ("TBA") prices for Fannie Mae mortgage backed securities are provided by a third party with prices varying depending upon the underlying loan’s weighted average coupon rate. These prices are then used to determine the fair value of the loan pool using each loan’s coupon rate. As compensating evidence, the loans are also run through a valuation model taking into consideration loan level adjustments such as loan to value ratios, property type, and an estimated servicing release premium. The second methodology is used for multifamily portfolio loans that have been designated as held for sale. This analysis begins with a third party quoted price for a risk free government guaranteed security comprised of these same multifamily loans. This information is then input into an interest rate risk model to generate an option adjusted spread ("OAS"). This OAS is added to a credit risk spread, based primarily on the cost of the Freddie Mac guarantee fee, to generate a fair market value for the loan pool. Both of these methodologies are performed monthly and compared to the prior month analysis for reasonableness. Loans held for sale which are under contract for sale are considered Level 2 in the fair value hierarchy. For loans, the fair value is estimated using market quotes for similar assets or the present value of future cash flows, discounted using the current rate at which similar loans would be made to borrowers with similar credit ratings and for the same maturities and giving consideration to estimated prepayment risk and credit risk. The fair value of loans is determined utilizing estimates resulting in a Level 3 classification. Impaired loans are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price, or the fair value of the collateral (net of estimated costs to sell) if the loan is collateral dependent. The fair value of impaired loans is determined utilizing estimates resulting in a Level 3 classification. Typical unobservable inputs used for computing the fair value of impaired loans include adjustments made by appraisers and brokers for differences between comparable property sales, net operating income assumptions and capitalization rates. Other factors considered include geographic sales trends and the values of comparable surrounding properties as well as the condition of the subject property. In measuring the fair value of impaired collateral dependent loans, the Company assumes a 100% default rate. The valuation techniques used by third party appraisers is consistent among all loan classes held by the Company due to the similarities in the type of loan collateral. For loans measured at fair value on a non-recurring basis in the Company’s loan portfolio at September 30, 2018 and December 31, 2017 , adjustments made by appraisers and brokers to comparable property sales generally ranged from (10)% to 20% . Additionally, all appraisals are reviewed in accordance with Uniform Standards of Professional Appraisal Practice, or USPAP, by in house licensed appraisers who review not only the appraisal but independently search for comparable properties to ensure selected comparable properties and corresponding adjustments are appropriate. When necessary appraisal staff will adjust or reject an appraised value. The Company estimates that selling costs approximate 6% of the collateral fair value. It was not practicable to determine the fair value of F HLB stock due to restrictions placed on its transferability. The fair value of servicing rights is determined using a valuation model that utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. Real estate owned fair values are categorized as Level 3 due to ongoing assumptions in fair value measurements related to real estate market conditions which may require adjustments made by appraisers and brokers for differences between comparable property sales, net operating income assumptions, and capitalization rates. The fair values of derivatives are based on valuation models using observable market data as of the measurement date. Fair values for fixed-rate certificates of deposit are estimated using discounted cash flow analyses using interest rates offered at each reporting date by the Company for certificates with similar remaining maturities. For deposits with no contractual maturity, the fair value is assumed to equal the carrying value. The fair value of FHLB advances is estimated based on discounting the future cash flows using the market rate currently offered. The fair value of subordinated debentures is based on an indication of value provided by a third-party broker. For senior debt, the fair value is based on an indication of value provided by a third-party broker. The fair values of commitments are estimated using the fees currently charged to enter into similar agreements and are not significant. Fair Value of Financial Instruments The carrying and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Fair Level Measurements Using Carrying Amount Fair Value Level 1 Level 2 Level 3 As of September 30, 2018: Financial assets: Cash and cash equivalents $ 60,698 $ 60,698 $ 60,698 $ — $ — Investment securities: Available for sale 614,576 614,576 961 613,615 — Held to maturity 11,935 11,527 — 11,527 — Loans held for sale — — — — — Loans receivable, net 5,891,702 5,866,790 — — 5,866,790 Accrued interest receivable 20,060 20,060 14 1,744 18,302 Federal Home Loan Bank stock 27,235 N/A N/A N/A N/A Mortgage servicing rights 3,739 3,739 — — 3,739 Interest rate cap premium 5 5 — 5 — Financial liabilities: Deposits $ 4,943,944 $ 4,893,997 $ 1,710,969 $ 3,183,028 $ — FHLB advances 962,139 951,678 — 951,678 — Junior subordinated deferrable interest debentures 61,857 59,016 — 59,016 — Senior debt 94,262 98,356 — 98,356 — Accrued interest payable 4,974 4,974 — 4,974 — As of December 31, 2017: Financial assets: Cash and cash equivalents $ 75,578 $ 75,578 $ 75,578 $ — $ — Investment securities: Available for sale 503,288 503,288 984 502,304 — Held to maturity 6,921 6,925 — 6,925 — Loans receivable, net 5,011,235 5,022,250 — — 5,022,250 Accrued interest receivable 14,901 14,901 27 1,320 13,554 Federal Home Loan Bank stock 27,733 N/A N/A N/A N/A Mortgage servicing rights 3,868 3,868 — — 3,868 Interest rate cap premium 1 1 — 1 — Financial liabilities: Deposits $ 3,951,238 $ 3,917,999 $ 1,708,556 $ 2,209,443 $ — FHLB advances 989,260 989,833 — 989,833 — Junior subordinated deferrable interest debentures 61,857 58,624 — 58,624 — Senior debt 94,161 104,500 — 104,500 — Accrued interest payable 1,781 1,781 — 1,781 — These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates Assets and Liabilities Recorded at Fair Value The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2018 and December 31, 2017 . Recurring Basis The Company is required or permitted to record the following assets and liabilities at fair value on a recurring basis under other accounting pronouncements (dollars in thousands): Description Fair Value Level 1 Level 2 Level 3 As of September 30, 2018: Financial Assets: Available for sale investment securities: Government and Government Sponsored Entities: Mortgage-backed securities $ 445,525 $ — $ 445,525 $ — Agency bonds 116,221 — 116,221 — Collateralized mortgage obligations 40,542 — 40,542 — U.S. Treasury 961 961 — — CRA Qualified Investment Fund 11,327 — 11,327 — Total investment securities available for sale $ 614,576 $ 961 $ 613,615 — Interest rate cap premium $ 5 $ — $ 5 $ — As of December 31, 2017: Financial Assets: Available for sale investment securities: Government and Government Sponsored Entities: Mortgage-backed securities $ 326,221 $ — $ 326,221 $ — Agency bonds 117,222 — 117,222 — Collateralized mortgage obligations 47,168 — 47,168 — U.S. Treasury 984 984 — — CRA Qualified Investment Fund 11,693 — 11,693 — Total investment securities available for sale $ 503,288 $ 984 $ 502,304 $ — Interest rate cap premium $ 1 $ — $ 1 $ — There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2018 and 2017 . Non-recurring Basis The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets that are measured at the lower of cost or market value that were recognized at fair value which was below cost at the reporting date (dollars in thousands): Description Fair Value Level 1 Level 2 Level 3 As of December 31, 2017: Impaired Loans Single family residential $ 191 $ — $ — $ 191 Total assets measured at fair value on a non-recurring basis $ 191 $ — $ — $ 191 For the three and nine months ended September 30, 2018 , there were no charge offs on impaired loans. At December 31, 2017 , an impaired loan of $196 thousand was adjusted to a fair value of $191 thousand by recording a charge-off of $5 thousand . The fair value of impaired, collateral dependent loans is estimated at the fair value of the underlying collateral, less estimated selling costs. These loans are categorized as Level 3 due to ongoing real estate market conditions which may require the use of unobservable inputs and assumptions in fair value measurements. The company held no real estate owned at September 30, 2018 and December 31, 2017 . Management periodically obtains updated valuations of properties after foreclosure.

VARIABLE INTEREST ENTITIES (VIE

VARIABLE INTEREST ENTITIES (VIE)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
VARIABLE INTEREST ENTITIES (VIE)	VARIABLE INTEREST ENTITIES ("VIE") The Company is involved with VIEs through its loan securitization activities. We evaluated our association with VIEs for consolidation purposes. Specifically, a VIE is to be consolidated by its primary beneficiary, the entity that has both the power to direct the activities that most significantly impact the VIE and a variable interest that could potentially be significant to the VIE. A variable interest is a contractual, ownership or other interest whose value fluctuates with the changes in the value of the VIE's assets and liabilities. Our assessment includes an evaluation of our continuing involvement with the VIE and the nature and significance of our variable interests. Multifamily loan securitization With respect to the securitization transaction with Freddie Mac which settled September 27, 2017, our variable interests reside with a reimbursement agreement entered into with Freddie Mac that obligates the Bank to reimburse Freddie Mac for any defaulted contractual principal and interest payments identified after the ultimate resolution of the defaulted loans. Such reimbursement obligations are not to exceed 10% of the original principal amount of the loans comprising the securitization pool. As part of the securitization transaction, the Bank released all servicing obligations and rights to Freddie Mac who was designated as the Master Servicer. As Master Servicer, Freddie Mac appointed the Bank with sub-servicing obligations, which include obligations to collect and remit payments of principal and interest, manage payments of taxes and insurance, and otherwise administer the underlying loans. The servicing of defaulted loans and foreclosed loans was assigned to a separate third party entity, independent of the Bank and Freddie Mac. Freddie Mac, in its capacity as Master Servicer, can terminate the Bank in its role as sub-servicer and direct such responsibilities accordingly. In evaluating our variable interests and continuing involvement in the VIE, we determined that we do not have the power to make significant decisions or direct the activities that most significantly impact the economic performance of the VIE's assets and liabilities. As sub-servicer of the loans, the Bank does not have the authority to make significant decisions that influence the value of the VIE's net assets and therefore, is not the primary beneficiary of the VIE. Therefore, we determined that the VIE associated with the multifamily securitization should not be included in the consolidated financial statements of the Bank. We believe that our maximum exposure to loss as a result of our involvement with the VIE associated with the securitization under the reimbursement agreement executed with Freddie Mac is 10% of the original principal amount of the loans comprising the securitization pool, or $62.6 million . The reserve for estimated losses with respect to the reimbursement obligation totaled $1.5 million and $1.7 million as of September 30, 2018 and December 31, 2017 , respectively, based upon our analysis of quantitative and qualitative data over the underlying loans included in the securitization pool. No disbursements have been made in connection with the reimbursement obligation.

LOAN SALE AND SECURITIZATION AC

LOAN SALE AND SECURITIZATION ACTIVITIES	9 Months Ended
	Sep. 30, 2018
Transfers and Servicing [Abstract]
LOAN SALE AND SECURITIZATION ACTIVITIES	LOAN SALE AND SECURITIZATION ACTIVITIES The Company sells originated and acquired loans as part of its business operations and overall management of liquidity, assets and liabilities, and financial performance. The transfer of loans is executed in securitization or sale transactions. With respect to sale transactions, the Company's continuing involvement may or may not include ongoing servicing responsibilities and general representations and warranties. With respect to securitization sales, the Company executed its first transaction on September 27, 2017 with Freddie Mac. The transaction involved the sale of $626 million in originated multifamily loans through a Freddie Mac sponsored transaction. The Company's continuing involvement includes sub-servicing responsibilities, general representations and warranties, and reimbursement obligations. As sub-servicer for Freddie Mac, the Bank is required to maintain a minimum net worth in accordance with generally accepted accounting principles of not less than $2.0 million . If Luther Burbank Savings’ capital were to fall below this threshold, Freddie Mac would have the authority to terminate and assume the Bank’s sub-servicing duties. At September 30, 2018 , the Bank’s actual net worth was $714.2 million . Servicing responsibilities on loan sales generally include obligations to collect and remit payments of principal and interest, provide foreclosure services, manage payments of tax and insurance, and otherwise administer the underlying loans. In connection with the securitization transaction, Freddie Mac was designated as the Master Servicer and appointed Luther Burbank Savings to perform sub-servicing responsibilities, which generally include the servicing responsibilities described above with exception to the servicing of foreclosed or defaulted loans. The overall management, servicing, and resolution of defaulted loans and foreclosed loans are separately designated to the special servicer, a third party institution that is independent of the Master Servicer and the Bank. The Master Servicer has the right to terminate the Bank in its role as sub-servicer and direct such responsibilities accordingly. General representations and warranties associated with loan sales and securitization sales require the Bank to uphold various assertions that pertain to the underlying loans at the time of the transaction, including, but not limited to, compliance with relevant laws and regulations, absence of fraud, enforcement of liens, no environmental damages, and maintenance of relevant environmental insurance. Such representations and warranties are limited to those that do not meet the quality represented at the transaction date and do not pertain to a decline in value or future payment defaults. In circumstances where the Bank breaches its representations and warranties, the Bank would generally be required to cure such instances through a repurchase or substitution of the subject loan(s). With respect to the securitization transaction, the Bank also has continuing involvement through a reimbursement agreement executed with Freddie Mac. To the extent the ultimate resolution of defaulted loans results in contractual principal and interest payments that are deficient, the Bank is obligated to reimburse Freddie Mac for such amounts, not to exceed 10% of the original principal amount of the loans comprising the securitization pool at the closing date of September 27, 2017. The Bank recognized a reserve liability of $1.5 million and $1.7 million as of September 30, 2018 and December 31, 2017 , respectively, for our exposure to the reimbursement agreement with Freddie Mac. The following table provides cash flows associated with the Company's loan sale activities: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2018 2017 2018 2017 Proceeds from loan sales $ 19,604 $ 629,190 $ 19,604 $ 689,372 Servicing fees 372 36 1,176 253 The following table provides information about the loans transferred through sales or securitization and not recorded on our unaudited consolidated statements of financial condition, for which the Company's continuing involvement includes sub-servicing or servicing responsibilities and/or reimbursement obligations (dollars in thousands): Single Family Residential Multifamily Residential September 30, 2018 Principal balance of loans $ 26,734 $ 658,701 Loans 90+ days past due — — Charge-offs, net — — December 31, 2017 Principal balance of loans 29,772 753,909 Loans 90+ days past due — — Charge-offs, net — —

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Financial Instruments With Off-Balance-Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments represent commitments to originate fixed and variable rate loans and lines of credit and loans in process, and involve, to varying degrees, elements of interest rate risk and credit risk in excess of the amount recognized in the Company’s consolidated statement of financial condition. The Company’s exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and lines of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments to originate loans and lines of credit as it does for on-balance-sheet instruments. Commitments to fund loans and home equity lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have expiration dates or other termination clauses. In addition, external market forces may impact the probability of commitments being exercised; therefore, total commitments outstanding do not necessarily represent future cash requirements. At September 30, 2018 and December 31, 2017 , the Company had outstanding commitments of approximately $100.9 million and $65.8 million , respectively, for real estate loans. Unfunded loan commitment reserves totaled $223 thousand and $197 thousand at September 30, 2018 and December 31, 2017 , respectively. Operating Leases The Company leases various office premises under long-term operating lease agreements. These leases expire between 2019 and 2028 , with certain leases containing either three , five or ten year renewal options. At September 30, 2018 , minimum commitments under these non-cancellable leases with initial or remaining terms of one year or more are as follows (dollars in thousands): October 1 - December 31, 2018 $ 1,366 Year ending December 31, 2019 5,241 Year ending December 31, 2020 3,851 Year ending December 31, 2021 3,380 Year ending December 31, 2022 2,419 Thereafter 3,018 $ 19,275 Rent expense under operating leases was $1.2 million and $3.4 million for the three and nine months ended September 30, 2018 , respectively, compared with $1.1 million and $3.3 million for the three and nine months ended September 30, 2017 , respectively. Sublease income earned was $174 thousand and $589 thousand for the three and nine months ended September 30, 2018 , respectively, compared with $151 thousand and $441 thousand for the same periods last year , respectively. Contingencies The Company is involved in legal proceedings arising in the normal course of business. In the opinion of management, the outcomes of such proceedings will not have a material adverse effect on the Company’s financial position or results of operations. Correspondent Banking Agreements The Company maintains funds on deposit with other federally insured financial institutions under correspondent banking agreements. These balances are insured by the FDIC up to $250 thousand. At September 30, 2018 and December 31, 2017 , the Company had $826 thousand and $845 thousand , respectively, in cash balances exceeding the insured amounts.

NATURE OF OPERATIONS (Policies)

NATURE OF OPERATIONS (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Accounting	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all footnotes as would be necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, these interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2017 , and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC, under the Securities and Exchange Act of 1934, (the “Exchange Act”). The unaudited consolidated financial statements include the accounts of the Company and the Bank. All intercompany accounts and transactions have been eliminated. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2018 . The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry.
Use of Estimates	Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited consolidated financial statements and the disclosures provided, and actual results could differ.
New Financial Accounting Standards	New Financial Accounting Standards FASB ASU 2018-13 In August 2018, the Financial Accounting Standards Board issued guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average terms used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance also modifies certain disclosure requirements for nonpublic entities to make them less burdensome. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The adoption of this standard in not expected to have a material impact on the Company’s operating results or financial condition.
Fair Value Measurements	Fair Value Measurements Fair Value Hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 - Quoted market prices for identical instruments traded in active exchange markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3 - Model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use on pricing the asset or liability. Valuation techniques include management judgment and estimation which may be significant. Because broadly traded markets do not exist for most of the Company’s financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. These determinations are subjective in nature, involve uncertainties and matters of significant judgment and do not include tax ramifications; therefore, the results cannot be determined with precision, substantiated by comparison to independent markets and may not be realized in an actual sale or immediate settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. For all of these reasons, the aggregation of the fair value calculations presented herein do not represent, and should not be construed to represent, the underlying value of the Company. Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities, or total earnings. The following methods and assumptions were used to estimate the fair value of financial instruments: For cash and cash equivalents, variable rate loans, accrued interest receivable and payable, demand deposits and short-term borrowings, the carrying amount is estimated to be fair value. The fair value of accrued interest receivable/payable balances are determined using inputs and fair value measurements commensurate with the asset or liability from which the accrued interest is generated. Fair values for available for sale investment securities, which include primarily debt securities issued by U.S. government sponsored agencies, are based on quoted market prices for similar securities. The fair value of loans held for sale recorded at level three are determined by two methodologies. The first methodology is used for single family portfolio loans that have been designated as held for sale after having been retained on the balance sheet for at least twelve months of seasoning. To be announced ("TBA") prices for Fannie Mae mortgage backed securities are provided by a third party with prices varying depending upon the underlying loan’s weighted average coupon rate. These prices are then used to determine the fair value of the loan pool using each loan’s coupon rate. As compensating evidence, the loans are also run through a valuation model taking into consideration loan level adjustments such as loan to value ratios, property type, and an estimated servicing release premium. The second methodology is used for multifamily portfolio loans that have been designated as held for sale. This analysis begins with a third party quoted price for a risk free government guaranteed security comprised of these same multifamily loans. This information is then input into an interest rate risk model to generate an option adjusted spread ("OAS"). This OAS is added to a credit risk spread, based primarily on the cost of the Freddie Mac guarantee fee, to generate a fair market value for the loan pool. Both of these methodologies are performed monthly and compared to the prior month analysis for reasonableness. Loans held for sale which are under contract for sale are considered Level 2 in the fair value hierarchy. For loans, the fair value is estimated using market quotes for similar assets or the present value of future cash flows, discounted using the current rate at which similar loans would be made to borrowers with similar credit ratings and for the same maturities and giving consideration to estimated prepayment risk and credit risk. The fair value of loans is determined utilizing estimates resulting in a Level 3 classification. Impaired loans are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price, or the fair value of the collateral (net of estimated costs to sell) if the loan is collateral dependent. The fair value of impaired loans is determined utilizing estimates resulting in a Level 3 classification. Typical unobservable inputs used for computing the fair value of impaired loans include adjustments made by appraisers and brokers for differences between comparable property sales, net operating income assumptions and capitalization rates. Other factors considered include geographic sales trends and the values of comparable surrounding properties as well as the condition of the subject property. In measuring the fair value of impaired collateral dependent loans, the Company assumes a 100% default rate. The valuation techniques used by third party appraisers is consistent among all loan classes held by the Company due to the similarities in the type of loan collateral. For loans measured at fair value on a non-recurring basis in the Company’s loan portfolio at September 30, 2018 and December 31, 2017 , adjustments made by appraisers and brokers to comparable property sales generally ranged from (10)% to 20% . Additionally, all appraisals are reviewed in accordance with Uniform Standards of Professional Appraisal Practice, or USPAP, by in house licensed appraisers who review not only the appraisal but independently search for comparable properties to ensure selected comparable properties and corresponding adjustments are appropriate. When necessary appraisal staff will adjust or reject an appraised value. The Company estimates that selling costs approximate 6% of the collateral fair value. It was not practicable to determine the fair value of F HLB stock due to restrictions placed on its transferability. The fair value of servicing rights is determined using a valuation model that utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. Real estate owned fair values are categorized as Level 3 due to ongoing assumptions in fair value measurements related to real estate market conditions which may require adjustments made by appraisers and brokers for differences between comparable property sales, net operating income assumptions, and capitalization rates. The fair values of derivatives are based on valuation models using observable market data as of the measurement date. Fair values for fixed-rate certificates of deposit are estimated using discounted cash flow analyses using interest rates offered at each reporting date by the Company for certificates with similar remaining maturities. For deposits with no contractual maturity, the fair value is assumed to equal the carrying value. The fair value of FHLB advances is estimated based on discounting the future cash flows using the market rate currently offered. The fair value of subordinated debentures is based on an indication of value provided by a third-party broker. For senior debt, the fair value is based on an indication of value provided by a third-party broker. The fair values of commitments are estimated using the fees currently charged to enter into similar agreements and are not significant.

NATURE OF OPERATIONS (Tables)

NATURE OF OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The factors used in the earnings per share computation follow: (Dollars in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income $ 12,129 $ 17,747 $ 34,457 $ 48,964 Weighted average basic common shares outstanding 56,190,970 42,000,000 56,190,970 42,000,000 Add: Dilutive effects of assumed vesting of restricted stock 673,130 — 622,140 — Weighted average diluted common shares outstanding 56,864,100 42,000,000 56,813,110 42,000,000 Income per common share: Basic $ 0.22 $ 0.42 $ 0.61 $ 1.17 Diluted $ 0.21 $ 0.42 $ 0.61 $ 1.17 Anti-dilutive shares not included in calculation of diluted earnings per share — — — —

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale [Table Text Block]	December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Mortgage-backed securities $ 93,403 $ (805 ) $ 195,645 $ (2,647 ) $ 289,048 $ (3,452 ) Agency bonds 9,851 (148 ) 104,340 (3,065 ) 114,191 (3,213 ) Collateralized mortgage obligations 1,959 (1 ) — — 1,959 (1 ) U.S. Treasury — — 984 (26 ) 984 (26 ) CRA Qualified Investment Fund 4,948 (52 ) 6,745 (255 ) 11,693 (307 ) Total available for sale investment securities $ 110,161 $ (1,006 ) $ 307,714 $ (5,993 ) $ 417,875 $ (6,999 ) The following tables summarize the gross unrealized losses and fair value of available for sale investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Mortgage-backed securities $ 115,926 $ (1,020 ) $ 286,121 $ (6,277 ) $ 402,047 $ (7,297 ) Agency bonds — — 113,214 (4,191 ) 113,214 (4,191 ) Collateralized mortgage obligations 30 — — — 30 — U.S. Treasury — — 11,327 (673 ) 11,327 (673 ) CRA Qualified Investment Fund — — 960 (48 ) 960 (48 ) Total available for sale investment securities $ 115,956 $ (1,020 ) $ 411,622 $ (11,189 ) $ 527,578 $ (12,209 ) The following tables summarize the amortized cost and the estimated fair value of available for sale investment securities as of the dates indicated (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value At September 30, 2018: Government and Government Sponsored Entities: Mortgage-backed securities $ 452,567 $ 255 $ (7,297 ) $ 445,525 Agency bonds 120,405 7 (4,191 ) 116,221 Collateralized mortgage obligations 40,311 231 — 40,542 U.S. Treasury 1,009 — (48 ) 961 CRA Qualified Investment Fund 12,000 — (673 ) 11,327 Total available for sale investment securities $ 626,292 $ 493 $ (12,209 ) $ 614,576 At December 31, 2017: Government and Government Sponsored Entities: Mortgage-backed securities $ 329,561 $ 112 $ (3,452 ) $ 326,221 Agency bonds 120,405 30 (3,213 ) 117,222 Collateralized mortgage obligations 46,920 249 (1 ) 47,168 U.S. Treasury 1,010 — (26 ) 984 CRA Qualified Investment Fund 12,000 — (307 ) 11,693 Total available for sale investment securities $ 509,896 $ 391 $ (6,999 ) $ 503,288
Schedule of Held-to-maturity Securities	The following tables summarize the amortized cost and estimated fair value of held to maturity investment securities as of the dates indicated (dollars in thousands): Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value As of September 30, 2018: Government Sponsored Entities: Mortgage-backed securities $ 11,663 $ 15 $ (423 ) $ 11,255 Other investments 272 — — 272 Total held to maturity investment securities $ 11,935 $ 15 $ (423 ) $ 11,527 As of December 31, 2017: Government Sponsored Entities: Mortgage-backed securities $ 6,636 $ 73 $ (69 ) $ 6,640 Other investments 285 — — 285 Total held to maturity investment securities $ 6,921 $ 73 $ (69 ) $ 6,925 The following tables summarize the gross unrecognized losses and fair value of held to maturity investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrecognized loss position (dollars in thousands): Less than 12 Months 12 Months or More Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses As of September 30, 2018: Government Sponsored Entities: Mortgage-backed securities $ 10,123 $ (423 ) $ — $ — $ 10,123 $ (423 ) As of December 31, 2017: Government Sponsored Entities: Mortgage-backed securities $ 1,047 $ (4 ) $ 3,029 $ (65 ) $ 4,076 $ (69 )
Schedule of Debt Maturities of Available-for-sale and Held-to-maturity Securities	The following table summarizes the scheduled maturities of available for sale and held to maturity investment securities as of September 30, 2018 (dollars in thousands): September 30, 2018 Amortized Cost Fair Value Available for sale investments securities One to five years $ 118,414 $ 114,175 Five to ten years — — Beyond ten years 3,000 3,007 Equity securities 12,000 11,327 Mortgage-backed securities and collateralized mortgage obligations 492,878 486,067 Total available for sale investment securities $ 626,292 $ 614,576 Held to maturity investments securities Beyond ten years $ 272 $ 272 Mortgage-backed securities 11,663 11,255 Total held to maturity investment securities $ 11,935 $ 11,527

LOANS RECEIVABLE (Tables)

LOANS RECEIVABLE (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Schedule of Loans Receivable	Loans receivable consist of the following (dollars in thousands): September 30, December 31, Permanent mortgages on: Multifamily residential $ 3,502,286 $ 2,887,438 Single family residential 2,193,365 1,957,546 Commercial real estate 163,758 112,492 Construction and land loans 16,514 41,165 Non-Mortgage (‘‘NM’’) loans 100 50 Total 5,876,023 4,998,691 Deferred loan costs, net 49,765 42,856 Allowance for loan losses (34,086 ) (30,312 ) Loans receivable held for investment, net $ 5,891,702 $ 5,011,235
Schedule Allowance for Loan Losses	The following table summarizes activity in and the allocation of the allowance for loan losses by portfolio segment (dollars in thousands): Multifamily Residential Single Family Residential Commercial Real Estate Land, NM, and Construction Total Three months ended September 30, 2018 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 20,560 $ 10,098 $ 1,841 $ 859 $ 33,358 Provision for (reversal of) loan losses 604 396 157 (507 ) 650 Charge-offs — — — — — Recoveries — 3 — 75 78 Ending balance allocated to portfolio segments $ 21,164 $ 10,497 $ 1,998 $ 427 $ 34,086 Three months ended September 30, 2017 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 15,573 $ 8,825 $ 1,912 $ 1,046 $ 27,356 Provision for (reversal of) loan losses 1,666 68 (64 ) (120 ) 1,550 Charge-offs — — — — — Recoveries — 3 — 75 78 Ending balance allocated to portfolio segments $ 17,239 $ 8,896 $ 1,848 $ 1,001 $ 28,984 Nine months ended September 30, 2018 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 18,588 $ 9,044 $ 1,734 $ 946 $ 30,312 Provision for (reversal of) loan losses 2,576 1,444 174 (744 ) 3,450 Charge-offs — — — — — Recoveries — 9 90 225 324 Ending balance allocated to portfolio segments $ 21,164 $ 10,497 $ 1,998 $ 427 $ 34,086 Nine months ended September 30, 2017 Allowance for loan losses: Beginning balance allocated to portfolio segments $ 18,478 $ 11,559 $ 1,823 $ 1,438 $ 33,298 (Reversal of) provision for loan losses (1,239 ) (2,667 ) 25 (741 ) (4,622 ) Charge-offs — (5 ) — — (5 ) Recoveries — 9 — 304 313 Ending balance allocated to portfolio segments $ 17,239 $ 8,896 $ 1,848 $ 1,001 $ 28,984 The following tables summarize the allocation of the allowance for loan losses by impairment methodology (dollars in thousands): Multifamily Residential Single Family Residential Commercial Real Estate Land, NM, and Construction Total As of September 30, 2018: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ 25 $ — $ — $ 25 Loans collectively evaluated for impairment 21,164 10,472 1,998 427 34,061 Ending balance $ 21,164 $ 10,497 $ 1,998 $ 427 $ 34,086 Loans: Ending balance: individually evaluated for impairment $ 575 $ 7,088 $ — $ — $ 7,663 Ending balance: collectively evaluated for impairment 3,501,711 2,186,277 163,758 16,614 5,868,360 Ending balance $ 3,502,286 $ 2,193,365 $ 163,758 $ 16,614 $ 5,876,023 As of December 31, 2017: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ 25 $ — $ — $ 25 Loans collectively evaluated for impairment 18,588 9,019 1,734 946 30,287 Ending balance $ 18,588 $ 9,044 $ 1,734 $ 946 $ 30,312 Loans: Ending balance: individually evaluated for impairment $ 2,246 $ 8,991 $ 656 $ — $ 11,893 Ending balance: collectively evaluated for impairment 2,885,192 1,948,555 111,836 41,215 4,986,798 Ending balance $ 2,887,438 $ 1,957,546 $ 112,492 $ 41,215 $ 4,998,691
Schedule of Loan Portfolio by Internal Risk Indicators	The following tables summarize the loan portfolio allocated by management’s internal risk ratings at September 30, 2018 and December 31, 2017 (dollars in thousands): Multifamily Residential Single Family Residential Commercial Real Estate Land, NM and Construction Total As of September 30, 2018: Grade: Pass $ 3,422,215 $ 2,169,733 $ 161,294 $ 14,461 $ 5,767,703 Watch 76,313 14,649 2,464 — 93,426 Special mention 1,017 4,779 — 2,153 7,949 Substandard 2,741 4,204 — — 6,945 Total $ 3,502,286 $ 2,193,365 $ 163,758 $ 16,614 $ 5,876,023 As of December 31, 2017: Grade: Pass $ 2,847,720 $ 1,923,960 $ 106,539 $ 41,215 $ 4,919,434 Watch 25,354 20,178 4,315 — 49,847 Special mention 6,569 9,025 — — 15,594 Substandard 7,795 4,383 1,638 — 13,816 Total $ 2,887,438 $ 1,957,546 $ 112,492 $ 41,215 $ 4,998,691
Schedule or Past Due Loans Receivable	The following tables summarize an aging analysis of the loan portfolio by the time past due at September 30, 2018 and December 31, 2017 (dollars in thousands): 30 Days 60 Days 90+ Days Non-accrual Current Total As of September 30, 2018: Loans: Multifamily residential $ — $ — $ — $ 575 $ 3,501,711 $ 3,502,286 Single family residential 720 — 85 1,620 2,190,940 2,193,365 Commercial real estate — — — — 163,758 163,758 Land, NM, and construction — — — — 16,614 16,614 Total $ 720 $ — $ 85 $ 2,195 $ 5,873,023 $ 5,876,023 As of December 31, 2017: Loans: Multifamily residential $ 2,751 $ — $ — $ 2,246 $ 2,882,441 $ 2,887,438 Single family residential 4,870 3,364 — 4,135 1,945,177 1,957,546 Commercial real estate — — — 656 111,836 112,492 Land, NM, and construction — — — — 41,215 41,215 Total $ 7,621 $ 3,364 $ — $ 7,037 $ 4,980,669 $ 4,998,691
Schedule of Impaired Loans Receivables	The following table summarizes information related to impaired loans for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands): Three Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Cash Basis Interest Average Recorded Investment Interest Income Cash Basis Interest With no related allowance recorded: Multifamily residential $ 953 $ — $ — $ 2,518 $ — $ — Single family residential 6,171 28 — 7,203 37 — Commercial real estate 436 — — 686 — — 7,560 28 — 10,407 37 — With an allowance recorded: Single family residential 943 7 — 976 8 — 943 7 — 976 8 — Total: Multifamily residential 953 — — 2,518 — — Single family residential 7,114 35 — 8,179 45 — Commercial real estate 436 — — 686 — — $ 8,503 $ 35 $ — $ 11,383 $ 45 $ — The following table summarizes information related to impaired loans at September 30, 2018 and December 31, 2017 (dollars in thousands): As of September 30, 2018 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Multifamily residential $ 575 $ 638 $ — $ 2,246 $ 2,545 $ — Single family residential 6,148 6,393 — 8,029 8,237 — Commercial real estate — — — 656 798 — 6,723 7,031 — 10,931 11,580 — With an allowance recorded: Single family residential 940 940 25 962 962 25 940 940 25 962 962 25 Total: Multifamily residential 575 638 — 2,246 2,545 — Single family residential 7,088 7,333 25 8,991 9,199 25 Commercial real estate — — — 656 798 — $ 7,663 $ 7,971 $ 25 $ 11,893 $ 12,542 $ 25
Schedule of Troubled Debt Restructurings	The following table summarizes the recorded investment related to troubled debt restructurings at September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, December 31, Troubled Debt Restructurings: Multifamily residential $ — $ 667 Single family residential 5,499 5,653 Total recorded investment in troubled debt restructurings $ 5,499 $ 6,320

NONPERFORMING ASSETS (Tables)

NONPERFORMING ASSETS (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Schedule of Nonperforming Assets	The Company’s nonperforming assets and trends related to those assets at September 30, 2018 and December 31, 2017 are indicated below (dollars in thousands): September 30, December 31, Non-accrual loans: Multifamily residential $ 575 $ 2,246 Single family residential 1,620 4,135 Commercial real estate — 656 Total non-accrual loans 2,195 7,037 Real estate owned — — Total nonperforming assets $ 2,195 $ 7,037

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	9 Months Ended
	Sep. 30, 2018
Transfers and Servicing [Abstract]
Schedule of Mortgage Loans Serviced for Others	The principal balances of these loans are as follows (dollars in thousands): September 30, December 31, Mortgage loans serviced for: FHLMC $ 536,343 $ 625,545 Other financial institutions 149,092 158,136 Total mortgage loans serviced for others $ 685,435 $ 783,681
Schedule of Changes in Servicing Assets	Activity for mortgage servicing rights are as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Beginning Balance $ 3,868 $ 1,258 $ 4,255 $ 1,099 Additions 139 2,885 139 3,126 Disposals — — — — Change in fair value due to changes in assumptions — — — — Other changes in fair value (268 ) (65 ) (655 ) (147 ) Ending balance $ 3,739 $ 4,078 $ 3,739 $ 4,078

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2018
Banking and Thrift [Abstract]
Schedule of Deposits	A summary of deposits at September 30, 2018 and December 31, 2017 is as follows (dollars in thousands): September 30, December 31, Certificate accounts $ 3,232,976 $ 2,242,682 Money market savings 1,367,089 1,389,425 NOW accounts 173,789 203,159 Money market checking 100,016 85,073 Non-interest bearing demand 70,074 30,899 $ 4,943,944 $ 3,951,238
Schedule of Certificate Account Maturities	Maturities of the Company’s certificate accounts at September 30, 2018 are summarized as follows (dollars in thousands): October 1 - December 31, 2018 $ 952,094 Year ending December 31, 2019 1,358,051 Year ending December 31, 2020 687,505 Year ending December 31, 2021 203,322 Year ending December 31, 2022 26,738 Thereafter 5,266 $ 3,232,976

FEDERAL HOME LOAN BANK AND FE_2

FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES (Tables)	9 Months Ended
	Sep. 30, 2018
Banking and Thrift [Abstract]
Schedule of FHLB Advances	The following table summarizes maturities over the next five years as of September 30, 2018 (dollars in thousands): October 1 - December 31, 2018 $ 85,000 Year ending December 31, 2019 275,000 Year ending December 31, 2020 150,000 Year ending December 31, 2021 150,600 Year ending December 31, 2022 — Thereafter 301,539 $ 962,139 The following table discloses the Bank’s outstanding advances from the Federal Home Loan Bank of San Francisco (dollars in thousands): As of September 30, 2018 Outstanding Balances Minimum Interest Rate Maximum Interest Rate Weighted Average Rate September 30, December 31, Maturity Dates Fixed rate short-term $ 85,000 $ 411,600 2.33 % 2.33 % 2.33 % October 2018 Fixed rate long-term 777,139 427,660 1.40 % 7.69 % 2.31 % July 2019 to August 2032 Variable rate long-term 100,000 150,000 2.32 % 2.52 % 2.42 % August 2019 to January 2020 $ 962,139 $ 989,260

JUNIOR SUBORDINATED DEFERRABL_2

JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Outstanding Trust Securities	The following table is a summary of the outstanding Trust Securities and Notes at September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, 2018 December 31, 2017 Date Maturity Rate Index Issuer Amount Rate Amount Rate Issued Date (Quarterly Reset) Luther Burbank Statutory Trust I $ 41,238 3.71 % $ 41,238 2.97 % 3/1/2006 6/15/2036 3 month LIBOR + 1.38% Luther Burbank Statutory Trust II $ 20,619 3.95 % $ 20,619 3.21 % 3/1/2007 6/15/2037 3 month LIBOR + 1.62%

SENIOR DEBT (Tables)

SENIOR DEBT (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Debt	The following table summarizes information on these notes as of September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, 2018 December 31, 2017 Principal Unamortized debt issuance costs Principal Unamortized debt issuance costs Maturity Date Fixed Interest Rate Senior Unsecured Term Notes $ 95,000 $ 738 $ 95,000 $ 839 9/30/2024 6.50 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The provision for income taxes for the three and nine months ended September 30, 2018 and 2017 differs from the statutory federal rate of 21% and 35%, respectively, due to the following (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Statutory U.S. Federal Income Tax $ 3,573 $ 6,426 $ 10,089 $ 17,729 Increase (decrease) resulting from: Benefit of S Corporation status — (6,426 ) — (17,729 ) State Taxes, net of federal benefit 1,312 612 3,533 1,691 Other 1 — (34 ) — Provision for income taxes $ 4,886 $ 612 $ 13,588 $ 1,691

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Restricted Stock Activity	The following table summarizes share information about restricted stock awards and restricted stock units for the nine months ended September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value Beginning of the period balance 1,319,700 $ 10.75 Shares granted 131,140 12.77 Shares settled (53,059 ) 10.75 Shares forfeited (18,684 ) 11.41 End of the period balance 1,379,097 $ 10.93

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Assets and LIabilities	The carrying and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Fair Level Measurements Using Carrying Amount Fair Value Level 1 Level 2 Level 3 As of September 30, 2018: Financial assets: Cash and cash equivalents $ 60,698 $ 60,698 $ 60,698 $ — $ — Investment securities: Available for sale 614,576 614,576 961 613,615 — Held to maturity 11,935 11,527 — 11,527 — Loans held for sale — — — — — Loans receivable, net 5,891,702 5,866,790 — — 5,866,790 Accrued interest receivable 20,060 20,060 14 1,744 18,302 Federal Home Loan Bank stock 27,235 N/A N/A N/A N/A Mortgage servicing rights 3,739 3,739 — — 3,739 Interest rate cap premium 5 5 — 5 — Financial liabilities: Deposits $ 4,943,944 $ 4,893,997 $ 1,710,969 $ 3,183,028 $ — FHLB advances 962,139 951,678 — 951,678 — Junior subordinated deferrable interest debentures 61,857 59,016 — 59,016 — Senior debt 94,262 98,356 — 98,356 — Accrued interest payable 4,974 4,974 — 4,974 — As of December 31, 2017: Financial assets: Cash and cash equivalents $ 75,578 $ 75,578 $ 75,578 $ — $ — Investment securities: Available for sale 503,288 503,288 984 502,304 — Held to maturity 6,921 6,925 — 6,925 — Loans receivable, net 5,011,235 5,022,250 — — 5,022,250 Accrued interest receivable 14,901 14,901 27 1,320 13,554 Federal Home Loan Bank stock 27,733 N/A N/A N/A N/A Mortgage servicing rights 3,868 3,868 — — 3,868 Interest rate cap premium 1 1 — 1 — Financial liabilities: Deposits $ 3,951,238 $ 3,917,999 $ 1,708,556 $ 2,209,443 $ — FHLB advances 989,260 989,833 — 989,833 — Junior subordinated deferrable interest debentures 61,857 58,624 — 58,624 — Senior debt 94,161 104,500 — 104,500 — Accrued interest payable 1,781 1,781 — 1,781 —
Schedule of Fair Value of Assets Measured on a Recurring Basis	The Company is required or permitted to record the following assets and liabilities at fair value on a recurring basis under other accounting pronouncements (dollars in thousands): Description Fair Value Level 1 Level 2 Level 3 As of September 30, 2018: Financial Assets: Available for sale investment securities: Government and Government Sponsored Entities: Mortgage-backed securities $ 445,525 $ — $ 445,525 $ — Agency bonds 116,221 — 116,221 — Collateralized mortgage obligations 40,542 — 40,542 — U.S. Treasury 961 961 — — CRA Qualified Investment Fund 11,327 — 11,327 — Total investment securities available for sale $ 614,576 $ 961 $ 613,615 — Interest rate cap premium $ 5 $ — $ 5 $ — As of December 31, 2017: Financial Assets: Available for sale investment securities: Government and Government Sponsored Entities: Mortgage-backed securities $ 326,221 $ — $ 326,221 $ — Agency bonds 117,222 — 117,222 — Collateralized mortgage obligations 47,168 — 47,168 — U.S. Treasury 984 984 — — CRA Qualified Investment Fund 11,693 — 11,693 — Total investment securities available for sale $ 503,288 $ 984 $ 502,304 $ — Interest rate cap premium $ 1 $ — $ 1 $ —
Schedule of Fair Value of Liabilities Measured on a Recurring Basis	The Company is required or permitted to record the following assets and liabilities at fair value on a recurring basis under other accounting pronouncements (dollars in thousands): Description Fair Value Level 1 Level 2 Level 3 As of September 30, 2018: Financial Assets: Available for sale investment securities: Government and Government Sponsored Entities: Mortgage-backed securities $ 445,525 $ — $ 445,525 $ — Agency bonds 116,221 — 116,221 — Collateralized mortgage obligations 40,542 — 40,542 — U.S. Treasury 961 961 — — CRA Qualified Investment Fund 11,327 — 11,327 — Total investment securities available for sale $ 614,576 $ 961 $ 613,615 — Interest rate cap premium $ 5 $ — $ 5 $ — As of December 31, 2017: Financial Assets: Available for sale investment securities: Government and Government Sponsored Entities: Mortgage-backed securities $ 326,221 $ — $ 326,221 $ — Agency bonds 117,222 — 117,222 — Collateralized mortgage obligations 47,168 — 47,168 — U.S. Treasury 984 984 — — CRA Qualified Investment Fund 11,693 — 11,693 — Total investment securities available for sale $ 503,288 $ 984 $ 502,304 $ — Interest rate cap premium $ 1 $ — $ 1 $ —
Schedule of Fair Value of Assets Measured on a Nonrecurring Basis	These include assets that are measured at the lower of cost or market value that were recognized at fair value which was below cost at the reporting date (dollars in thousands): Description Fair Value Level 1 Level 2 Level 3 As of December 31, 2017: Impaired Loans Single family residential $ 191 $ — $ — $ 191 Total assets measured at fair value on a non-recurring basis $ 191 $ — $ — $ 191

LOAN SALE AND SECURITIZATION _2

LOAN SALE AND SECURITIZATION ACTIVITIES (Tables)	9 Months Ended
	Sep. 30, 2018
Transfers and Servicing [Abstract]
Schedule of Cash Flows From Loan Sale Activities	The following table provides cash flows associated with the Company's loan sale activities: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2018 2017 2018 2017 Proceeds from loan sales $ 19,604 $ 629,190 $ 19,604 $ 689,372 Servicing fees 372 36 1,176 253
Schedule of Loans Transfered Through Sale or Securitization	The following table provides information about the loans transferred through sales or securitization and not recorded on our unaudited consolidated statements of financial condition, for which the Company's continuing involvement includes sub-servicing or servicing responsibilities and/or reimbursement obligations (dollars in thousands): Single Family Residential Multifamily Residential September 30, 2018 Principal balance of loans $ 26,734 $ 658,701 Loans 90+ days past due — — Charge-offs, net — — December 31, 2017 Principal balance of loans 29,772 753,909 Loans 90+ days past due — — Charge-offs, net — —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Operating Lease Maturities	At September 30, 2018 , minimum commitments under these non-cancellable leases with initial or remaining terms of one year or more are as follows (dollars in thousands): October 1 - December 31, 2018 $ 1,366 Year ending December 31, 2019 5,241 Year ending December 31, 2020 3,851 Year ending December 31, 2021 3,380 Year ending December 31, 2022 2,419 Thereafter 3,018 $ 19,275

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details) $ / shares in Units, $ in Thousands	Dec. 12, 2017USD ($)$ / sharesshares	Apr. 27, 2017$ / sharesshares	Sep. 30, 2018USD ($)shares	Dec. 31, 2017shares	Apr. 26, 2017$ / sharesshares
Accounting Policies [Abstract]
Stock split shares issued per previous share		200
Common stock shares issued | shares		42,000,000	56,543,771	56,422,662	210,000
Common stock shares authorized | shares		100,000,000	100,000,000	100,000,000	500,000
Par value (in usd per share) | $ / shares		$ 0			$ 8
Class of Stock [Line Items]
Reclassification of prior year tax benefit related to re-measuring deferred taxes on items recorded to other comprehensive income | $			$ 0
IPO
Class of Stock [Line Items]
Shares issued | shares	13,972,500
Price per share of shares issued (in usd per share) | $ / shares	$ 10.75
Proceeds from shares issued | $	$ 138,300
Retained Earnings
Class of Stock [Line Items]
Reclassification of prior year tax benefit related to re-measuring deferred taxes on items recorded to other comprehensive income | $			$ 1,750

NATURE OF OPERATIONS - Earnings

NATURE OF OPERATIONS - Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Net income	$ 12,129	$ 17,747	$ 34,457	$ 48,964
Weighted average common shares outstanding - basic	56,190,970	42,000,000	56,190,970	42,000,000
Add: Dilutive effects of assumed vesting of restricted stock	673,130	0	622,140	0
Weighted average common shares outstanding - diluted	56,864,100	42,000,000	56,813,110	42,000,000
Basic earnings per common share (in usd per share)	$ 0.22	$ 0.42	$ 0.61	$ 1.17
Diluted earnings per common share (in usd per share)	$ 0.21	$ 0.42	$ 0.61	$ 1.17
Anti-dilutive shares not included in calculation of diluted earnings per share	0	0	0	0

INVESTMENT SECURITIES - Availab

INVESTMENT SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 626,292	$ 509,896
Gross Unrealized Gains	493	391
Gross Unrealized Losses	(12,209)	(6,999)
Estimated Fair Value	614,576	503,288
Fair Value
Less than 12 Months	115,956	110,161
12 Months or More	411,622	307,714
Total	527,578	417,875
Unrealized Losses
Less than 12 Months	(1,020)	(1,006)
12 Months or More	(11,189)	(5,993)
Total	(12,209)	(6,999)
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	452,567	329,561
Gross Unrealized Gains	255	112
Gross Unrealized Losses	(7,297)	(3,452)
Estimated Fair Value	445,525	326,221
Fair Value
Less than 12 Months	115,926	93,403
12 Months or More	286,121	195,645
Total	402,047	289,048
Unrealized Losses
Less than 12 Months	(1,020)	(805)
12 Months or More	(6,277)	(2,647)
Total	(7,297)	(3,452)
Agency bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	120,405	120,405
Gross Unrealized Gains	7	30
Gross Unrealized Losses	(4,191)	(3,213)
Estimated Fair Value	116,221	117,222
Fair Value
Less than 12 Months	0	9,851
12 Months or More	113,214	104,340
Total	113,214	114,191
Unrealized Losses
Less than 12 Months	0	(148)
12 Months or More	(4,191)	(3,065)
Total	(4,191)	(3,213)
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	40,311	46,920
Gross Unrealized Gains	231	249
Gross Unrealized Losses	0	(1)
Estimated Fair Value	40,542	47,168
Fair Value
Less than 12 Months		1,959
12 Months or More		0
Total		1,959
Unrealized Losses
Less than 12 Months		(1)
12 Months or More		0
Total		(1)
Collateralized mortgage obligations
Fair Value
Less than 12 Months	30
12 Months or More	0
Total	30
Unrealized Losses
Less than 12 Months	0
12 Months or More	0
Total	0
U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,009	1,010
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(48)	(26)
Estimated Fair Value	961	984
Fair Value
Less than 12 Months	0	0
12 Months or More	11,327	984
Total	11,327	984
Unrealized Losses
Less than 12 Months	0	0
12 Months or More	(673)	(26)
Total	(673)	(26)
CRA Qualified Investment Fund
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	12,000	12,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(673)	(307)
Estimated Fair Value	11,327	11,693
Fair Value
Less than 12 Months	0	4,948
12 Months or More	960	6,745
Total	960	11,693
Unrealized Losses
Less than 12 Months	0	(52)
12 Months or More	(48)	(255)
Total	$ (48)	$ (307)

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details) $ in Thousands	Jan. 01, 2018USD ($)	Sep. 30, 2018USD ($)security	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)security	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)security
Debt Securities, Available-for-sale [Line Items]
Unrealized loss on available-for-sale investment securities | $		$ 571,399		$ 571,399		$ 549,745
Provision for income taxes | $		4,886	$ 612	13,588	$ 1,691
Reclassification of prior year tax benefit related to re-measuring deferred taxes on items recorded to other comprehensive income | $				0
Accumulated Other Comprehensive (Loss) Income (Net of Taxes) Securities
Debt Securities, Available-for-sale [Line Items]
Unrealized loss on available-for-sale investment securities | $		(8,326)		(8,326)		(6,214)
Unrealized loss on available-for-sale investment securities tax asset | $		$ 3,400		3,400		394
Provision for income taxes | $						1,500
Reclassification of prior year tax benefit related to re-measuring deferred taxes on items recorded to other comprehensive income | $	$ 1,500			$ 1,529
Accumulated Other Comprehensive (Loss) Income (Net of Taxes)
Debt Securities, Available-for-sale [Line Items]
Unrealized loss on available-for-sale investment securities tax asset | $						$ 1,900
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions		64		64		34
Debt Securities, Available-for-sale, Number of Positions		103		103		91
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions		76		76		72
AFS securities number of securities held		7		7		6
HTM securities number of securities held in a loss position		6		6		3
HTM securities number of securities held in a loss position longer than 12 months		3		3		2
Agency bonds
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions						11
Debt Securities, Available-for-sale, Number of Positions		13		13		13
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions		12		12		12
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions		1		1		1
Debt Securities, Available-for-sale, Number of Positions		15		15		15
CRA Qualified Investment Fund
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions						2
Debt Securities, Available-for-sale, Number of Positions		3		3		3
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions		3		3		3
U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions		1		1		1

INVESTMENT SECURITIES - Held-to

INVESTMENT SECURITIES - Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 11,935	$ 6,921
Gross Unrecognized Gains	15	73
Gross Unrecognized Losses	(423)	(69)
Estimated Fair Value	11,527	6,925
Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	11,663	6,636
Gross Unrecognized Gains	15	73
Gross Unrecognized Losses	(423)	(69)
Estimated Fair Value	11,255	6,640
Fair Value
Less than 12 Months	10,123	1,047
12 Months or More	0	3,029
Total	10,123	4,076
Unrecognized Losses
Less than 12 Months	(423)	(4)
12 Months or More	0	(65)
Total	(423)	(69)
Other investments
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	272	285
Gross Unrecognized Gains	0	0
Gross Unrecognized Losses	0	0
Estimated Fair Value	$ 272	$ 285

INVESTMENT SECURITIES - Schedul

INVESTMENT SECURITIES - Schedule of Investment Securities Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amortized Cost
One to five years	$ 118,414
Five to ten years	0
Beyond ten years	3,000
Amortized Cost	626,292	$ 509,896
Fair Value
One to five years	114,175
Five to ten years	0
Beyond ten years	3,007
Fair Value	614,576	503,288
Amortized Cost
Held-to-maturity investment securities beyond ten years	272
Amortized Cost	11,935	6,921
Fair Value
Beyond ten years	272
Total held to maturity investment securities	11,527	$ 6,925
Equity securities
Amortized Cost
Equity securities	12,000
Fair Value
Equity securities	11,327
Mortgage-backed securities and collateralized mortgage obligations
Amortized Cost
Equity securities	492,878
Fair Value
Equity securities	486,067
Mortgage-backed securities
Amortized Cost
Held to maturity investments securities, Mortgage-backed securities	11,663
Fair Value
Held to maturity investments securities, Mortgage-backed securities	$ 11,255

LOANS RECEIVABLE - Loans Receiv

LOANS RECEIVABLE - Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	$ 5,876,023	$ 4,998,691
Total	5,876,023	4,998,691
Deferred loan costs, net	49,765	42,856
Allowance for loan losses	(34,086)	(30,312)
Loans receivable held for investment, net	5,891,702	5,011,235
Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,502,286	2,887,438
Multifamily residential | Permanent mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	3,502,286	2,887,438
Single family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,193,365	1,957,546
Single family residential | Permanent mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	2,193,365	1,957,546
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	163,758	112,492
Commercial real estate | Permanent mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	163,758	112,492
Construction and land loans | Permanent mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	16,514	41,165
Land, NM, and Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	16,614	41,215
Land, NM, and Construction | Non-Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	$ 100	$ 50

LOANS RECEIVABLE - Allowance fo

LOANS RECEIVABLE - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance allocated to portfolio segments	$ 33,358	$ 27,356	$ 30,312	$ 33,298
Provision for (reversal of) loan losses	650	1,550	3,450	(4,622)
Charge-offs	0	0	0	(5)
Recoveries	78	78	324	313
Ending balance allocated to portfolio segments	34,086	28,984	34,086	28,984
Ending allowance balance allocated to:
Loans individually evaluated for impairment					$ 25	$ 25
Loans collectively evaluated for impairment					34,061	30,287
Ending balance	33,358	27,356	30,312	33,298	34,086	30,312
Loans:
Ending balance: individually evaluated for impairment					7,663	11,893
Ending balance: collectively evaluated for impairment					5,868,360	4,986,798
Ending balance					5,876,023	4,998,691
Multifamily residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance allocated to portfolio segments	20,560	15,573	18,588	18,478
Provision for (reversal of) loan losses	604	1,666	2,576	(1,239)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance allocated to portfolio segments	21,164	17,239	21,164	17,239
Ending allowance balance allocated to:
Loans individually evaluated for impairment					0	0
Loans collectively evaluated for impairment					21,164	18,588
Ending balance	20,560	15,573	18,588	18,478	21,164	18,588
Loans:
Ending balance: individually evaluated for impairment					575	2,246
Ending balance: collectively evaluated for impairment					3,501,711	2,885,192
Ending balance					3,502,286	2,887,438
Single family residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance allocated to portfolio segments	10,098	8,825	9,044	11,559
Provision for (reversal of) loan losses	396	68	1,444	(2,667)
Charge-offs	0	0	0	(5)
Recoveries	3	3	9	9
Ending balance allocated to portfolio segments	10,497	8,896	10,497	8,896
Ending allowance balance allocated to:
Loans individually evaluated for impairment					25	25
Loans collectively evaluated for impairment					10,472	9,019
Ending balance	10,098	8,825	9,044	11,559	10,497	9,044
Loans:
Ending balance: individually evaluated for impairment					7,088	8,991
Ending balance: collectively evaluated for impairment					2,186,277	1,948,555
Ending balance					2,193,365	1,957,546
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance allocated to portfolio segments	1,841	1,912	1,734	1,823
Provision for (reversal of) loan losses	157	(64)	174	25
Charge-offs	0	0	0	0
Recoveries	0	0	90	0
Ending balance allocated to portfolio segments	1,998	1,848	1,998	1,848
Ending allowance balance allocated to:
Loans individually evaluated for impairment					0	0
Loans collectively evaluated for impairment					1,998	1,734
Ending balance	1,841	1,912	1,734	1,823	1,998	1,734
Loans:
Ending balance: individually evaluated for impairment					0	656
Ending balance: collectively evaluated for impairment					163,758	111,836
Ending balance					163,758	112,492
Land, NM, and Construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance allocated to portfolio segments	859	1,046	946	1,438
Provision for (reversal of) loan losses	(507)	(120)	(744)	(741)
Charge-offs	0	0	0	0
Recoveries	75	75	225	304
Ending balance allocated to portfolio segments	427	1,001	427	1,001
Ending allowance balance allocated to:
Loans individually evaluated for impairment					0	0
Loans collectively evaluated for impairment					427	946
Ending balance	$ 859	$ 1,046	$ 946	$ 1,438	427	946
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					16,614	41,215
Ending balance					$ 16,614	$ 41,215

LOANS RECEIVABLE - Portfolio Al

LOANS RECEIVABLE - Portfolio Allocated by Internal Risk Ratings (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Total	$ 5,876,023	$ 4,998,691
Pass
Financing Receivable, Recorded Investment [Line Items]
Total	5,767,703	4,919,434
Watch
Financing Receivable, Recorded Investment [Line Items]
Total	93,426	49,847
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	7,949	15,594
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	6,945	13,816
Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
Total	3,502,286	2,887,438
Multifamily residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	3,422,215	2,847,720
Multifamily residential | Watch
Financing Receivable, Recorded Investment [Line Items]
Total	76,313	25,354
Multifamily residential | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	1,017	6,569
Multifamily residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	2,741	7,795
Single family residential
Financing Receivable, Recorded Investment [Line Items]
Total	2,193,365	1,957,546
Single family residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	2,169,733	1,923,960
Single family residential | Watch
Financing Receivable, Recorded Investment [Line Items]
Total	14,649	20,178
Single family residential | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	4,779	9,025
Single family residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	4,204	4,383
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total	163,758	112,492
Commercial real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	161,294	106,539
Commercial real estate | Watch
Financing Receivable, Recorded Investment [Line Items]
Total	2,464	4,315
Commercial real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Commercial real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	0	1,638
Land, NM, and Construction
Financing Receivable, Recorded Investment [Line Items]
Total	16,614	41,215
Land, NM, and Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	14,461	41,215
Land, NM, and Construction | Watch
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Land, NM, and Construction | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	2,153	0
Land, NM, and Construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	$ 0	$ 0

LOANS RECEIVABLE - Aging Analys

LOANS RECEIVABLE - Aging Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	$ 2,195	$ 7,037
Current	5,873,023	4,980,669
Total	5,876,023	4,998,691
30 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	720	7,621
60 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	3,364
90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	85	0
Multifamily residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	575	2,246
Current	3,501,711	2,882,441
Total	3,502,286	2,887,438
Multifamily residential | 30 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	2,751
Multifamily residential | 60 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Multifamily residential | 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Single family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,620	4,135
Current	2,190,940	1,945,177
Total	2,193,365	1,957,546
Single family residential | 30 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	720	4,870
Single family residential | 60 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	3,364
Single family residential | 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	85	0
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	656
Current	163,758	111,836
Total	163,758	112,492
Commercial real estate | 30 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Commercial real estate | 60 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Commercial real estate | 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Land, NM, and Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Current	16,614	41,215
Total	16,614	41,215
Land, NM, and Construction | 30 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Land, NM, and Construction | 60 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	0	0
Land, NM, and Construction | 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due	$ 0	$ 0

LOANS RECEIVABLE - Impaired Loa

LOANS RECEIVABLE - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Recorded Investment
With no related allowance recorded:	$ 6,723		$ 6,723		$ 10,931
With an allowance recorded:	940		940		962
Total:	7,663		7,663		11,893
Unpaid Principal Balance
With no related allowance recorded:	7,031		7,031		11,580
With an allowance recorded:	940		940		962
Total:	7,971		7,971		12,542
Related Allowance	25		25		25
Average Recorded Investment
With no related allowance recorded:	7,560	$ 10,407	9,169	$ 9,660
With an allowance recorded:	943	976	1,255	982
Total:	8,503	11,383	10,424	10,642
Interest Income
With no related allowance recorded:	28	37	102	132
With an allowance recorded:	7	8	33	25
Total:	35	45	135	157
Cash Basis Interest
With no related allowance recorded:	0	0	0	0
With an allowance recorded:	0	0	0	0
Total:	0	0	0	0
Multifamily residential
Recorded Investment
With no related allowance recorded:	575		575		2,246
Total:	575		575		2,246
Unpaid Principal Balance
With no related allowance recorded:	638		638		2,545
Total:	638		638		2,545
Related Allowance	0		0		0
Average Recorded Investment
With no related allowance recorded:	953	2,518	1,520	2,018
Total:	953	2,518	1,520	2,018
Interest Income
With no related allowance recorded:	0	0	0	0
Total:	0	0	0	0
Cash Basis Interest
With no related allowance recorded:	0	0	0	0
Total:	0	0	0	0
Single family residential
Recorded Investment
With no related allowance recorded:	6,148		6,148		8,029
With an allowance recorded:	940		940		962
Total:	7,088		7,088		8,991
Unpaid Principal Balance
With no related allowance recorded:	6,393		6,393		8,237
With an allowance recorded:	940		940		962
Total:	7,333		7,333		9,199
Related Allowance	25		25		25
Average Recorded Investment
With no related allowance recorded:	6,171	7,203	7,280	6,894
With an allowance recorded:	943	976	1,255	982
Total:	7,114	8,179	8,535	7,876
Interest Income
With no related allowance recorded:	28	37	102	132
With an allowance recorded:	7	8	33	25
Total:	35	45	135	157
Cash Basis Interest
With no related allowance recorded:	0	0	0	0
With an allowance recorded:	0	0	0	0
Total:	0	0	0	0
Commercial real estate
Recorded Investment
With no related allowance recorded:	0		0		656
Total:	0		0		656
Unpaid Principal Balance
With no related allowance recorded:	0		0		798
Total:	0		0		798
Related Allowance	0		0		$ 0
Average Recorded Investment
With no related allowance recorded:	436	686	369	748
Total:	436	686	369	748
Interest Income
With no related allowance recorded:	0	0	0	0
Total:	0	0	0	0
Cash Basis Interest
With no related allowance recorded:	0	0	0	0
Total:	$ 0	$ 0	$ 0	$ 0

LOANS RECEIVABLE - Troubled Deb

LOANS RECEIVABLE - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Financing Receivable, Modifications [Line Items]
Total recorded investment	$ 5,499	$ 6,320
Related Allowance	25	25
Modification of Terms or Payment Deferral
Financing Receivable, Modifications [Line Items]
Total recorded investment	25,700		$ 53,000
Multifamily residential
Financing Receivable, Modifications [Line Items]
Total recorded investment	0	667
Related Allowance	0	0
Single family residential
Financing Receivable, Modifications [Line Items]
Total recorded investment	5,499	5,653
Related Allowance	$ 25	$ 25

NONPERFORMING ASSETS (Details)

NONPERFORMING ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual loans	$ 2,195			$ 2,195	$ 7,037
Real estate owned	0			0	0
Total nonperforming assets	2,195			2,195	7,037
Contractual interest not accrued during the quarter	50	$ 77	$ 186	203
Multifamily residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual loans	575			575	2,246
Single family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual loans	1,620			1,620	4,135
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual loans	$ 0			$ 0	$ 656

MORTGAGE SERVICING RIGHTS - Mor

MORTGAGE SERVICING RIGHTS - Mortgage Loans Seviced for Others (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Loans Serviced for Others [Line Items]
Total mortgage loans serviced for others	$ 685,435	$ 783,681
FHLMC
Schedule of Loans Serviced for Others [Line Items]
Total mortgage loans serviced for others	536,343	625,545
Other financial institutions
Schedule of Loans Serviced for Others [Line Items]
Total mortgage loans serviced for others	$ 149,092	$ 158,136

MORTGAGE SERVICING RIGHTS - M_2

MORTGAGE SERVICING RIGHTS - Mortgage Servicing Rights Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning Balance	$ 3,868	$ 1,258	$ 4,255	$ 1,099
Additions	139	2,885	139	3,126
Disposals	0	0	0	0
Change in fair value due to changes in assumptions	0	0	0	0
Other changes in fair value	(268)	(65)	(655)	(147)
Ending balance	$ 3,739	$ 4,078	$ 3,739	$ 4,078

MORTGAGE SERVICING RIGHTS - Nar

MORTGAGE SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items]
Custodial account balances maintained in connection with serviced loans	$ 11.5	$ 5.2
Discount rate used to calculate fair value of MSRs	10.00%	10.00%
Default rate used to calculate fair value of MSRs	5.00%	5.00%
Minimum
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items]
Prepayment speed rate used to calculate fair value of MSRs	5.60%	5.80%
Maximum
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items]
Prepayment speed rate used to calculate fair value of MSRs	70.40%	70.40%

DEPOSITS - Deposits (Details)

DEPOSITS - Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Deposits [Abstract]
Certificate accounts	$ 3,232,976	$ 2,242,682
Money market savings	1,367,089	1,389,425
NOW accounts	173,789	203,159
Money market checking	100,016	85,073
Non-interest bearing demand	70,074	30,899
Deposits	$ 4,943,944	$ 3,951,238

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Banking and Thrift [Abstract]
Certificates of deposit with a denomination of $100,000 or More	$ 2,300	$ 1,900
Certificates of deposit that meet or exceed FDIC insurance limit	1,200	1,100
Brokered deposits	$ 527.7	$ 278.4

DEPOSITS - Maturities (Details)

DEPOSITS - Maturities (Details) $ in Thousands	Sep. 30, 2018USD ($)
Maturities of Time Deposits, Twelve months ending March 31,
2,019	$ 952,094
2,020	1,358,051
2,021	687,505
2,022	203,322
2,023	26,738
Thereafter	5,266
Time Deposits	$ 3,232,976

FEDERAL HOME LOAN BANK AND FE_3

FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Borrowing capacity based on pledged loans to the FRB and FHLB	$ 924.4	$ 1,100
Maximum short-term debt outstanding during period	85
Average short-term debt outstanding during period	$ 62.4
Weighted average interest rate	2.09%
FHLB Advances
Short-term Debt [Line Items]
Mortgage loans pledged as collateral	$ 2,200	2,400
FRB Advances
Short-term Debt [Line Items]
Mortgage loans pledged as collateral	$ 406.5	$ 379

FEDERAL HOME LOAN BANK AND FE_4

FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES - FHLB Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balances	$ 962,139	$ 989,260
FHLB of San Francisco
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balances	962,139	989,260
FHLB of San Francisco | FHLB Fixed Rate Short-term Borrowings
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balances	$ 85,000	411,600
FHLB of San Francisco | FHLB Fixed Rate Short-term Borrowings | Minimum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	2.33%
FHLB of San Francisco | FHLB Fixed Rate Short-term Borrowings | Maximum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	2.33%
FHLB of San Francisco | FHLB Fixed Rate Short-term Borrowings | Average
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	2.33%
FHLB of San Francisco | FHLB Fixed Rate Long-term Borrowings
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balances	$ 777,139	427,660
FHLB of San Francisco | FHLB Fixed Rate Long-term Borrowings | Minimum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	1.40%
FHLB of San Francisco | FHLB Fixed Rate Long-term Borrowings | Maximum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	7.69%
FHLB of San Francisco | FHLB Fixed Rate Long-term Borrowings | Average
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	2.31%
FHLB of San Francisco | FHLB Variable Rate Long-term Borrowings
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Outstanding Balances	$ 100,000	$ 150,000
FHLB of San Francisco | FHLB Variable Rate Long-term Borrowings | Minimum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	2.32%
FHLB of San Francisco | FHLB Variable Rate Long-term Borrowings | Maximum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	2.52%
FHLB of San Francisco | FHLB Variable Rate Long-term Borrowings | Average
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Interest rate	2.42%

FEDERAL HOME LOAN BANK AND FE_5

FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES - Schedule of Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
Outstanding advances from FHLB	$ 962,139	$ 989,260
FHLB of San Francisco
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
October 1 - December 31, 2018	85,000
Year ending December 31, 2019	275,000
Year ending December 31, 2020	150,000
Year ending December 31, 2021	150,600
Year ending December 31, 2022	0
Thereafter	301,539
Outstanding advances from FHLB	$ 962,139	$ 989,260

JUNIOR SUBORDINATED DEFERRABL_3

JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES - Narrative (Details) - Trusts $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)trust	Dec. 31, 2017trust
Investment [Line Items]
Investment in common securities | $	$ 1.9
Number of wholly owned trusts | trust	2	2

JUNIOR SUBORDINATED DEFERRABL_4

JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES - Schedule of Trusts (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Amount	$ 61,857	$ 61,857
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust I | Trusts
Debt Instrument [Line Items]
Amount	$ 41,238	$ 41,238
Rate	3.71%	2.97%
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust I | Trusts | LIBOR
Debt Instrument [Line Items]
Rate index	1.38%
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust II | Trusts
Debt Instrument [Line Items]
Amount	$ 20,619	$ 20,619
Rate	3.95%	3.21%
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust II | Trusts | LIBOR
Debt Instrument [Line Items]
Rate index	1.62%

SENIOR DEBT - Narrative (Detail

SENIOR DEBT - Narrative (Details) - Senior Unsecured Term Notes - USD ($) $ in Thousands	1 Months Ended
	Sep. 30, 2014	Sep. 30, 2018	Dec. 31, 2017
Senior Unsecured Term Notes, 2009-2011
Debt Instrument [Line Items]
Debt retired	$ 62,700
Senior Unsecured Term Notes, September 2014
Debt Instrument [Line Items]
Principal	95,000	$ 95,000	$ 95,000
Prepayment penalty on retired debt	243
Proceeds kept as additional paid-in capital	28,000
Proceeds kept as cash reserves	$ 2,700

SENIOR DEBT - Schedule of Debt

SENIOR DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2014
Debt Instrument [Line Items]
Fixed Interest Rate	6.50%
Senior Unsecured Term Notes, September 2014 | Senior Unsecured Term Notes
Debt Instrument [Line Items]
Principal	$ 95,000	$ 95,000	$ 95,000
Unamortized debt issuance costs	$ 738	$ 839
Fixed Interest Rate	6.50%

INCOME TAXES - Effective Income

INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Statutory U.S. Federal Income Tax	$ 3,573	$ 6,426	$ 10,089	$ 17,729
Benefit of S Corporation status	0	(6,426)	0	(17,729)
State Taxes, net of federal benefit	1,312	612	3,533	1,691
Other	1	0	(34)	0
Total income tax provision	$ 4,886	$ 612	$ 13,588	$ 1,691

STOCK BASED COMPENSATION - Narr

STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions	Dec. 12, 2017	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for new awards	3,360,000
Common stock available for grant		2,577,243	2,577,243	2,689,699
RSUs and RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Stock-based compensation expense		$ 1.1	$ 3.2
Unrecognized compensation expense		$ 5.5	$ 5.5
Restricted stock awards or units granted		1,209,607	1,209,607
Period of recognition for unrecognized compensation expense			1 year 11 months 13 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units vested		169,490	169,490
Non-employee directors | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Employees | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

STOCK BASED COMPENSATION - Awar

STOCK BASED COMPENSATION - Awards Activity (Details) - RSUs and RSAs shares in Thousands	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of Shares
Beginning of the period balance | shares	1,319,700
Shares granted | shares	131,140
Shares settled | shares	(53,059)
Shares forfeited | shares	(18,684)
End of the period balance | shares	1,379,097
Weighted Average Grant Date Fair Value
Beginning of the period balance (in usd per share) | $ / shares	$ 10.75
Shares granted | $ / shares	12.77
Shares settled | $ / shares	10.75
Shares forfeited | $ / shares	11.41
End of the period balance (in usd per share) | $ / shares	$ 10.93

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable	$ 5,891,702,000	$ 5,891,702,000	$ 5,011,235,000
Fair Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable, fair value	0	0
Single family residential | Fair Value | Permanent mortgages | Nonrecurring Basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable			196,000
Loans receivable, fair value			191,000
Charge-offs recorded	$ 0	$ 0	$ 5,000
Impaired Financing Receivables
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Approximate selling cost		6.00%
Impaired Financing Receivables | Default Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans measurement inputs	1	1
Impaired Financing Receivables | Minimum | Comparability Adjustment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans measurement inputs	(0.10)	(0.10)
Impaired Financing Receivables | Maximum | Comparability Adjustment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans measurement inputs	0.20	0.20

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Investment securities:
Estimated Fair Value	$ 614,576		$ 503,288
Held to maturity	11,527		6,925
Mortgage servicing rights	3,739	$ 3,868	4,255	$ 4,078	$ 1,258	$ 1,099
Carrying Amount
Financial assets:
Cash and cash equivalents	60,698		75,578
Investment securities:
Estimated Fair Value	614,576		503,288
Held to maturity	11,935		6,921
Loans held for sale	0
Loans receivable, net	5,891,702		5,011,235
Accrued interest receivable	20,060		14,901
Federal Home Loan Bank stock	27,235		27,733
Mortgage servicing rights	3,739		3,868
Interest rate cap premium	5		1
Financial liabilities:
Deposits	4,943,944		3,951,238
FHLB advances	962,139		989,260
Junior subordinated deferrable interest debentures	61,857		61,857
Senior debt	94,262		94,161
Accrued interest payable	4,974		1,781
Fair Value
Financial assets:
Cash and cash equivalents	60,698		75,578
Investment securities:
Estimated Fair Value	614,576		503,288
Held to maturity	11,527		6,925
Loans held for sale	0
Loans receivable, net	5,866,790		5,022,250
Accrued interest receivable	20,060		14,901
Mortgage servicing rights	3,739		3,868
Interest rate cap premium	5		1
Financial liabilities:
Deposits	4,893,997		3,917,999
FHLB advances	951,678		989,833
Junior subordinated deferrable interest debentures	59,016		58,624
Senior debt	98,356		104,500
Accrued interest payable	4,974		1,781
Fair Value | Level 1
Financial assets:
Cash and cash equivalents	60,698		75,578
Investment securities:
Estimated Fair Value	961		984
Held to maturity	0		0
Loans held for sale	0
Loans receivable, net	0		0
Accrued interest receivable	14		27
Mortgage servicing rights	0		0
Interest rate cap premium	0		0
Financial liabilities:
Deposits	1,710,969		1,708,556
FHLB advances	0		0
Junior subordinated deferrable interest debentures	0		0
Senior debt	0		0
Accrued interest payable	0		0
Fair Value | Level 2
Financial assets:
Cash and cash equivalents	0		0
Investment securities:
Estimated Fair Value	613,615		502,304
Held to maturity	11,527		6,925
Loans held for sale	0
Loans receivable, net	0		0
Accrued interest receivable	1,744		1,320
Mortgage servicing rights	0		0
Interest rate cap premium	5		1
Financial liabilities:
Deposits	3,183,028		2,209,443
FHLB advances	951,678		989,833
Junior subordinated deferrable interest debentures	59,016		58,624
Senior debt	98,356		104,500
Accrued interest payable	4,974		1,781
Fair Value | Level 3
Financial assets:
Cash and cash equivalents	0		0
Investment securities:
Estimated Fair Value	0		0
Held to maturity	0		0
Loans held for sale	0
Loans receivable, net	5,866,790		5,022,250
Accrued interest receivable	18,302		13,554
Mortgage servicing rights	3,739		3,868
Interest rate cap premium	0		0
Financial liabilities:
Deposits	0		0
FHLB advances	0		0
Junior subordinated deferrable interest debentures	0		0
Senior debt	0		0
Accrued interest payable	$ 0		$ 0

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	$ 614,576	$ 503,288
Impaired Loans	940	962
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	445,525	326,221
Agency bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	116,221	117,222
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	40,542	47,168
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	961	984
CRA Qualified Investment Fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	11,327	11,693
Nonrecurring Basis | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		0
Nonrecurring Basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		0
Nonrecurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		191
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	614,576	503,288
Interest rate cap premium	5	1
Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	961	984
Interest rate cap premium	0	0
Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	613,615	502,304
Interest rate cap premium	5	1
Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Interest rate cap premium	0	0
Fair Value | Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	614,576	503,288
Interest rate cap premium	5	1
Fair Value | Recurring Basis | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	961	984
Interest rate cap premium	0	0
Fair Value | Recurring Basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	613,615	502,304
Interest rate cap premium	5	1
Fair Value | Recurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Interest rate cap premium	0	0
Fair Value | Recurring Basis | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	445,525	326,221
Fair Value | Recurring Basis | Mortgage-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | Mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	445,525	326,221
Fair Value | Recurring Basis | Mortgage-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | Agency bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	116,221	117,222
Fair Value | Recurring Basis | Agency bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | Agency bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	116,221	117,222
Fair Value | Recurring Basis | Agency bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	40,542	47,168
Fair Value | Recurring Basis | Collateralized mortgage obligations | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | Collateralized mortgage obligations | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	40,542	47,168
Fair Value | Recurring Basis | Collateralized mortgage obligations | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	961	984
Fair Value | Recurring Basis | U.S. Treasury | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	961	984
Fair Value | Recurring Basis | U.S. Treasury | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | U.S. Treasury | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | CRA Qualified Investment Fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	11,327	11,693
Fair Value | Recurring Basis | CRA Qualified Investment Fund | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Recurring Basis | CRA Qualified Investment Fund | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	11,327	11,693
Fair Value | Recurring Basis | CRA Qualified Investment Fund | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair Value | Nonrecurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		191
Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 940	962
Single family residential | Permanent mortgages | Nonrecurring Basis | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		0
Single family residential | Permanent mortgages | Nonrecurring Basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		0
Single family residential | Permanent mortgages | Nonrecurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		191
Single family residential | Permanent mortgages | Fair Value | Nonrecurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans		$ 191

VARIABLE INTEREST ENTITIES (V_2

VARIABLE INTEREST ENTITIES (VIE) (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Maximum loss exposure as a percentage of original principal amount	10.00%
Maximum loss exposure	$ 62.6
Reserved for estimated losses	$ 1.5	$ 1.7

LOAN SALE AND SECURITIZATION _3

LOAN SALE AND SECURITIZATION ACTIVITIES - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Minimum net worth	$ 2
Actual net worth	$ 714.2
Multifamily Loan Securitization
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Maximum loss exposure as a percentage of original principal amount	10.00%
Loans receivable | Multifamily residential | Permanent mortgages
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Originated loans sold	$ 626

LOAN SALE AND SECURITIZATION _4

LOAN SALE AND SECURITIZATION ACTIVITIES - Cash Flow from Sale of Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Transfers and Servicing [Abstract]
Proceeds from sale of loans held for sale	$ 19,604	$ 629,190	$ 19,604	$ 689,372
Servicing fees	$ 372	$ 36	$ 1,176	$ 253

LOAN SALE AND SECURITIZATION _5

LOAN SALE AND SECURITIZATION ACTIVITIES - Loans Transfered Through Loans or Securitization (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Single family residential
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Principal balance of loans	$ 26,734	$ 29,772
Loans 90 days past due	0	0
Charge-offs, net	0	0
Multifamily residential
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items]
Principal balance of loans	658,701	753,909
Loans 90 days past due	0	0
Charge-offs, net	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Operating Leased Assets [Line Items]
Rent expense for operating leases	$ 1,200	$ 1,100	$ 3,400	$ 3,300
Sublease income	174	$ 589	151	$ 441
Cash balances held at other institutions that exceed FDIC insured limits	$ 826		$ 826		$ 845
Operating Lease Arrangement Type One
Operating Leased Assets [Line Items]
Renewal term	3 years		3 years
Operating Lease Arrangement Type Two
Operating Leased Assets [Line Items]
Renewal term	5 years		5 years
Operating Lease Arrangement Type Three
Operating Leased Assets [Line Items]
Renewal term	10 years		10 years
Commitments to Extend Credit [Member]
Operating Leased Assets [Line Items]
Real estate loan funding commitments	$ 100,900		$ 100,900		65,800
Unfunded Loan Commitment
Operating Leased Assets [Line Items]
Reserve recorded on real estate loan funding commitments	$ 223		$ 223		$ 197

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Operating Lease Maturities (Details) $ in Thousands	Sep. 30, 2018USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
October 1 - December 31, 2018	$ 1,366
Year ending December 31, 2019	5,241
Year ending December 31, 2020	3,851
Year ending December 31, 2021	3,380
Year ending December 31, 2022	2,419
Thereafter	3,018
Operating Leases Payable	$ 19,275