FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2011

FAIR VALUE

Assets (Liabilities) Measured at Fair Value on Recurring Basis

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of December 31, 2011
	Fair Value Measurements December 31, 2011			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	20,725		$	20,725	$	—		$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities		576,578			—		576,578			—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities		49,315			—		49,315			—
Residential mortgage-backed securities		993,770			—		993,770			—
Municipal securities		79,946			—		79,946			—
Other residential mortgage-backed securities:
Investment grade		—			—		—			—
Non-investment grade		—			—		—			—
Corporate debt securities:
Investment grade		1,322,561			—		1,322,561			—
Non-investment grade		19,615			—		17,380			2,235
Other securities		10,068			—		10,068			—
Total investment securities available-for-sale	$	3,072,578		$	20,725	$	3,049,618		$	2,235
Equity swap agreements	$	202		$	—	$	202		$	—
Foreign exchange options		3,899			—		3,899			—
Interest rate swaps		20,474			—		20,474			—
Short-term foreign exchange contracts		1,403			—		1,403			—
Derivatives liabilities		(24,164	)		—		(21,530	)		(2,634	)

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of December 31, 2010
	Fair Value Measurements December 31, 2010			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	20,454		$	20,454	$	—		$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities		1,333,465			—		1,333,465			—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities		19,132			—		19,132			—
Residential mortgage-backed securities		306,714			—		306,714			—
Municipal securities		—			—		—			—
Other residential mortgage-backed securities:
Investment grade		—			—		—			—
Non-investment grade		6,254			—		—			6,254
Corporate debt securities:
Investment grade		1,056,867			—		1,056,867			—
Non-investment grade		38,730			—		35,957			2,773
Other securities		94,325			—		94,325			—
Total investment securities available-for-sale	$	2,875,941		$	20,454	$	2,846,460		$	9,027
Equity swap agreements	$	206		$	—	$	206		$	—
Foreign exchange options		5,084			—		5,084			—
Interest rate swaps		13			—		13			—
Short-term foreign exchange contracts		1,220			—		1,220			—
Derivatives liabilities		(4,498	)		—		(1,049	)		(3,449	)

Assets Measured at Fair Value on a Non-Recurring Basis

	Assets Measured at Fair Value on a Non-Recurring Basis for the Twelve Months Ended December 31, 2011
	Fair Value Measurements December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Twelve Months Ended December 31, 2011
	(In thousands)
Non-covered impaired loans:
Total residential	$	16,626	$	—	$	16,626	$	—	$	(7,380	)
Total commercial real estate		45,679		—		45,679		—		(39,839	)
Total commercial and industrial		12,516		—		—		12,516		(14,330	)
Total consumer		—		—		—		—		—
Total non-covered impaired loans	$	74,821	$	—	$	62,305	$	12,516	$	(61,549	)
Mortgage servicing assets
(single-family, multifamily and commercial)	$	11,252	$	—	$	—	$	11,252	$	(927	)
Non-covered OREO	$	8,491	$	—	$	8,491	$	—	$	(3,015	)
Covered OREO(1)	$	35,926	$	—	$	35,926	$	—	$	(26,251	)
Loans held for sale	$	14,527	$	—	$	—	$	14,527	$	(12,867	)
Investment in affordable housing partnerships	$	7,726	$	—	$	—	$	7,726	$	(1,296	)

	Assets Measured at Fair Value on a Non-Recurring Basis for the Twelve Months Ended December 31, 2010
	Fair Value Measurements December 31, 2010		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) for the Twelve Months Ended December 31, 2010
	(In thousands)
Non-covered impaired loans:
Total residential	$	7,486	$	—	$	7,486	$	—	$	(2,955	)
Total commercial real estate		39,325		—		39,325		—		(25,229	)
Total commercial and industrial		6,405		—		—		6,405		(6,427	)
Total consumer		538		—		538		—		(641	)
Total non-covered impaired loans	$	53,754	$	—	$	47,349	$	6,405	$	(35,252	)
Mortgage servicing assets
(single-family, multifamily and commercial)	$	14,509	$	—	$	—	$	14,509	$	(808	)
Non-covered OREO	$	12,940	$	—	$	12,940	$	—	$	(7,054	)
Covered OREO(1)	$	54,919	$	—	$	54,919	$	—	$	(44,002	)
Loans held for sale	$	14,559	$	—	$	—	$	14,559	$	(4,104	)
Investment in affordable housing partnerships	$	—	$	—	$	—	$	—	$	—

⁽¹⁾

Covered OREO results from the WFIB and UCB FDIC-assisted acquisitions for which the Company entered into shared-loss agreements with the FDIC whereby the FDIC will reimburse the Company for 80% of eligible losses. As such, the Company's liability for losses is 20% of the $26.3 million in losses, or $5.3 million, and 20% of the $44.0 million in losses, or $8.8 million, for the year ended December 31, 2011 and 2010, respectively.

Reconciliation of assets and liabilities measured at fair value using significant unobservable inputs

	Investment Securities Available-for-Sale
				Other Residential Mortgage-Backed Securities			Corporate Debt Securities
	Total			Non-Investment Grade			Investment Grade		Non-Investment Grade			Derivatives Payable
	(In thousands)
Beginning balance, January 1, 2011	$	9,027		$	6,254		$	—	$	2,773		$	(3,449	)
Total gains or (losses):(1)
Included in earnings		(6,293	)		(5,660	)		—		(633	)		815
Included in other comprehensive loss (unrealized)(2)		8,567			8,763			—		(196	)		—
Purchases, issuances, sales, settlements(3)
Purchases		—			—			—		—			—
Issuances		—			—			—		—			—
Sales		(9,357	)		(9,357	)		—		—			—
Settlements		291			—			—		291			—
Transfer from investment grade to non-investment grade		—			—			—		—			—
Transfers in and/or out of Level 3(4)		—			—			—		—			—
Ending balance, December 31, 2011	$	2,235		$	—		$	—	$	2,235		$	(2,634	)
Changes in unrealized losses included in earnings relating to assets and liabilities still held at December 31, 2011	$	633		$	—		$	—	$	633		$	(815	)

	Investment Securities Available-for-Sale
				Other Residential Mortgage-Backed Securities			Corporate Debt Securities
	Total			Non-Investment Grade			Investment Grade			Non-Investment Grade			Derivatives Payable
	(In thousands)
Beginning balance, January 1, 2010	$	15,671		$	12,738		$	978		$	1,955		$	(14,185	)
Total gains or (losses):(1)
Included in earnings		(13,996	)		(5,903	)		5			(8,098	)		152
Included in other comprehensive loss (unrealized)(2)		7,363			(152	)		308			7,207			—
Purchases, issuances, sales, settlements(3)		(11	)		(429	)		(9	)		427			10,584
Transfer from investment grade to non-investment grade		—			—			(1,282	)		1,282			—
Transfers in and/or out of Level 3(4)		—			—			—			—			—
Ending balance, December 31, 2010	$	9,027		$	6,254		$	—		$	2,773		$	(3,449	)
Changes in unrealized losses included in earnings relating to assets and liabilities still held at December 31, 2010	$	(14,447	)	$	(6,340	)	$	—		$	(8,107	)	$	(152	)

⁽¹⁾

Total gains or losses represent the total realized and unrealized gains and losses recorded for Level 3 assets and liabilities. Realized gains or losses are reported in the consolidated statements of income.

⁽²⁾

Unrealized gains or losses on investment securities are reported in accumulated other comprehensive loss, net of tax in the consolidated statements of changes in stockholders' equity and comprehensive income.

⁽³⁾

Purchases, issuances, sales and settlements represent Level 3 assets and liabilities that were either purchased, issued, sold, or settled during the period. The amounts are recorded at their end of period fair values.

⁽⁴⁾

Transfers in and/or out represent existing assets and liabilities that were either previously categorized as a higher level and the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 and the lowest significant input became observable during the period. These assets and liabilities are recorded at their end of period fair values.

Carrying amounts and fair values of financial instruments

	December 31,
	2011				2010
	Carrying Amount or Notional Amount		Estimated Fair Value		Carrying Amount or Notional Amount		Estimated Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,431,185	$	1,431,185	$	1,333,949	$	1,333,949
Short-term investments		61,834		61,834		143,560		143,560
Securities purchased under resale agreements		786,434		791,745		500,000		505,826
Investment securities available-for-sale		3,072,578		3,072,578		2,875,941		2,875,941
Loans held for sale		278,603		285,181		220,055		225,221
Loans receivable, net		13,984,930		13,520,712		13,231,075		13,043,932
Investment in Federal Home Loan Bank stock		136,897		136,897		162,805		162,805
Investment in Federal Reserve Bank stock		47,512		47,512		47,285		47,285
Accrued interest receivable		89,686		89,686		82,090		82,090
Equity swap agreements		22,709		202		22,884		206
Foreign exchange options		85,614		3,899		85,614		5,084
Interest rate swaps		585,196		20,474		4,098		13
Short-term foreign exchange contracts		210,295		1,403		92,625		1,220
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits		10,307,001		10,307,001		8,875,806		8,875,806
Time deposits		7,146,001		7,194,125		6,765,453		6,762,892
Federal funds purchased		—		—		22		22
Federal Home Loan Bank advances		455,251		479,029		1,214,148		1,199,151
Securities sold under repurchase agreements		1,020,208		1,177,331		1,083,545		1,296,522
Notes payable		85,987		85,987		49,690		49,690
Accrued interest payable		15,447		15,447		13,797		13,797
Long-term debt		212,178		144,392		235,570		125,633
Derivatives liabilities		835,913		24,164		130,752		4,498