FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Assets (Liabilities) Measured at Fair Value on a Recurring Basis



	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of December 31, 2014
	Fair Value Measurements December 31, 2014			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	$	873,435		$	873,435	$	—		$	—
U.S. government agency and U.S. government sponsored enterprise debt securities	311,024			—		311,024			—
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	141,420			—		141,420			—
Residential mortgage-backed securities	791,088			—		791,088			—
Municipal securities	250,448			—		250,448			—
Other residential mortgage-backed securities:
Investment grade	53,918			—		53,918			—
Other commercial mortgage-backed securities:
Investment grade	34,053			—		34,053			—
Corporate debt securities:
Investment grade	115,182			—		115,182			—
Non-investment grade	14,681			—		8,153			6,528
Other securities	41,116			32,105		9,011			—
Total investment securities available-for-sale	$	2,626,365		$	905,540	$	1,714,297		$	6,528

Derivative assets:
Foreign exchange options	$	6,136		$	—	$	6,136		$	—
Interest rate swaps and caps	$	41,534		$	—	$	41,534		$	—
Foreign exchange contracts	$	8,123		$	—	$	8,123		$	—
Derivative liabilities:
Interest rate swaps on certificates of deposits	$	(9,922	)	$	—	$	(9,922	)	$	—
Interest rate swaps and caps	$	(41,779	)	$	—	$	(41,779	)	$	—
Foreign exchange contracts	$	(9,171	)	$	—	$	(9,171	)	$	—
Embedded derivative liabilities	$	(3,392	)	$	—	$	—		$	(3,392	)



	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of December 31, 2013
	Fair Value Measurements December 31, 2013			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	$	491,632		$	491,632	$	—		$	—
U.S. government agency and U.S. government sponsored enterprise debt securities	394,323			—		394,323			—
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	178,870			—		178,870			—
Residential mortgage-backed securities	885,237			—		885,237			—
Municipal securities	280,979			—		280,979			—
Other residential mortgage-backed securities:
Investment grade	46,327			—		46,327			—
Other commercial mortgage-backed securities:
Investment grade	51,617			—		51,617			—
Corporate debt securities:
Investment grade	309,995			—		309,995			—
Non-investment grade	15,101			—		8,730			6,371
Other securities	79,716			—		79,716			—
Total investment securities available-for-sale	$	2,733,797		$	491,632	$	2,235,794		$	6,371

Derivative assets:
Foreign exchange options	$	6,290		$	—	$	6,290		$	—
Interest rate swaps and caps	$	28,078		$	—	$	28,078		$	—
Foreign exchange contracts	$	6,181		$	—	$	6,181		$	—
Derivative liabilities:
Interest rate swaps on certificates of deposits	$	(16,906	)	$	—	$	(16,906	)	$	—
Interest rate swaps and caps	$	(26,352	)	$	—	$	(26,352	)	$	—
Foreign exchange contracts	$	(3,349	)	$	—	$	(3,349	)	$	—
Embedded derivative liabilities	$	(3,655	)	$	—	$	—		$	(3,655	)

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



	Year Ended December 31,
	2014						2013						2012
	Corporate Debt Securities: Non-Investment Grade			Embedded Derivative Liabilities			Corporate Debt Securities: Non-Investment Grade			Embedded Derivative Liabilities			Corporate Debt Securities: Non-Investment Grade			Embedded Derivative Liabilities
	(In thousands)
Beginning balance	$	6,371		$	(3,655	)	$	4,800		$	(3,052	)	$	2,235		$	(2,634	)
Total gains or (losses) for the period:
Included in earnings⁽¹⁾	802			263			—			(603		)	(99		)	(418		)
Included in other comprehensive income (unrealized)⁽²⁾	2,326			—			1,653			—			2,711			—
Purchases, issues, sales, settlements:
Purchases	—			—			—			—			—			—
Issues	—			—			—			—			—			—
Sales	(2,595		)	—			—			—			—			—
Settlements	(376		)	—			(82		)	—			(47		)	—
Transfer from investment grade to non-investment grade	—			—			—			—			—			—
Transfers in and/or out of Level 3	—			—			—			—			—			—
Ending balance	$	6,528		$	(3,392	)	$	6,371		$	(3,655	)	$	4,800		$	(3,052	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at period-end	$	—		$	(263	)	$	—		$	603		$	99		$	418


(1)	Realized gains or losses of corporate debt securities and embedded derivative liabilities are included in net gains on sales of investment securities and other operating expense, respectively, in the consolidated statements of income.


(2)	Unrealized gains or losses on investment securities are reported in other comprehensive income (loss), net of tax, in the consolidated statements of comprehensive income.

Assets Measured at Fair Value on a Nonrecurring Basis



	Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 2014
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Non-covered impaired loans:
CRE	$	26,089	$	—	$	—	$	26,089
C&I	16,581		—		—		16,581
Residential	25,034		—		—		25,034
Consumer	107		—		—		107
Total non-covered impaired loans	$	67,811	$	—	$	—	$	67,811

Non-covered OREO	$	15,735	$	—	$	—	$	15,735
Covered OREO	$	1,786	$	—	$	—	$	1,786



	Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 2013
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Non-covered impaired loans:
CRE	$	29,559	$	—	$	—	$	29,559
C&I	15,120		—		—		15,120
Residential	12,791		—		—		12,791
Consumer	281		—		—		281
Total non-covered impaired loans	$	57,751	$	—	$	—	$	57,751

Non-covered OREO	$	13,031	$	—	$	—	$	13,031
Covered OREO	$	17,284	$	—	$	—	$	17,284

Summary of increase (decrease) in value of certain assets for which a nonrecurring fair value adjustment has been recognized



	Year Ended December 31,
	2014			2013			2012
	(In thousands)
Non-covered impaired loans:
CRE	$	2,196		$	(4,250	)	$	(8,405	)
C&I	(9,169		)	(13,135		)	(14,540		)
Residential	(61		)	(1,378		)	(4,803		)
Consumer	(1		)	(112		)	(264		)
Total non-covered impaired loans	$	(7,035	)	$	(18,875	)	$	(28,012	)

Non-covered OREO	$	(1,573	)	$	(1,438	)	$	(5,122	)
Covered OREO ⁽¹⁾	$	(1,027	)	$	(3,376	)	$	(11,183	)

(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 $1.0 million in losses, or $205 thousand, and 20% of the $3.4 million in losses, or $675 thousand, and 20% of the $11.2 million in losses, or $2.2 million for the years ended December 31, 2014, 2013, and 2012, respectively.

Carrying amounts and fair values of financial instruments



	December 31, 2014
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,039,885	$	1,039,885	$	—	$	—	$	1,039,885
Short-term investments	$	338,714	$	—	$	338,714	$	—	$	338,714
Securities purchased under resale agreements	$	1,225,000	$	—	$	1,191,060	$	—	$	1,191,060
Loans held for sale	$	45,950	$	—	$	45,950	$	—	$	45,950
Loans receivable, net	$	21,468,270	$	—	$	—	$	20,997,379	$	20,997,379
Investment in Federal Home Loan Bank stock	$	31,239	$	—	$	31,239	$	—	$	31,239
Investment in Federal Reserve Bank stock	$	54,451	$	—	$	54,451	$	—	$	54,451
Accrued interest receivable	$	88,303	$	—	$	88,303	$	—	$	88,303
Financial liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	$	17,896,035	$	—	$	17,896,035	$	—	$	17,896,035
Time deposits	$	6,112,739	$	—	$	—	$	6,095,217	$	6,095,217
Federal Home Loan Bank advances	$	317,241	$	—	$	336,302	$	—	$	336,302
Securities sold under repurchase agreements	$	795,000	$	—	$	870,434	$	—	$	870,434
Accrued interest payable	$	11,303	$	—	$	11,303	$	—	$	11,303
Long-term debt	$	225,848	$	—	$	205,777	$	—	$	205,777



	December 31, 2013
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(In thousands)
Financial assets:
Cash and cash equivalents	$	895,820	$	895,820	$	—	$	—	$	895,820
Short-term investments	$	257,473	$	—	$	257,473	$	—	$	257,473
Securities purchased under resale agreements	$	1,300,000	$	—	$	1,279,406	$	—	$	1,279,406
Loans held for sale	$	204,970	$	—	$	212,469	$	—	$	212,469
Loans receivable, net	$	17,600,613	$	—	$	—	$	16,741,674	$	16,741,674
Investment in Federal Home Loan Bank stock	$	62,330	$	—	$	62,330	$	—	$	62,330
Investment in Federal Reserve Bank stock	$	48,333	$	—	$	48,333	$	—	$	48,333
Accrued interest receivable	$	116,314	$	—	$	116,314	$	—	$	116,314
Financial liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	$	14,588,570	$	—	$	14,588,570	$	—	$	14,588,570
Time deposits	$	5,824,348	$	—	$	—	$	5,791,659	$	5,791,659
Federal Home Loan Bank advances	$	315,092	$	—	$	308,521	$	—	$	308,521
Securities sold under repurchase agreements	$	995,000	$	—	$	1,134,774	$	—	$	1,134,774
Accrued interest payable	$	11,178	$	—	$	11,178	$	—	$	11,178
Long-term debt	$	226,868	$	—	$	184,415	$	—	$	184,415

Fair Value, Measurements, Recurring

Quantitative information

Schedule of quantitative information about significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3



	Fair Value Measurements (Level 3)			Valuation Technique(s)	Unobservable Input(s)	Range of Inputs	Weighted Average
	($ in thousands)
December 31, 2014
Investment securities available-for-sale:
Corporate debt securities:
Non-investment grade	$	6,528		Discounted cash flow	Constant prepayment rate	0% - 1%	0.73%
					Constant default rate	0.75% - 1.20%	0.87%
					Loss severity	85%	85%
					Discount margin	4.50% - 7.50%	6.94%
Embedded derivative liabilities	$	(3,392	)	Discounted cash flow	Credit risk	0.115% - 0.142%	0.133%

December 31, 2013
Investment securities available-for-sale:
Corporate debt securities:
Non-investment grade	$	6,371		Discounted cash flow	Constant prepayment rate	0% - 1%	0.74%
					Constant default rate	0.75% - 1.20%	0.87%
					Loss severity	85%	85%
					Discount margin	6.50% - 11.50%	9.97%
Embedded derivative liabilities	$	(3,655	)	Discounted cash flow	Credit risk	0.175% - 0.212%	0.200%

Fair Value, Measurements, Nonrecurring

Quantitative information

Schedule of quantitative information about significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3



	Fair Value Measurements (Level 3)		Valuation Technique(s)	Unobservable Input(s)	Range of Inputs	Weighted Average
	($ in thousands)
December 31, 2014

Non-covered impaired loans	$	11,499	Discounted cash flow	Discount rate	0% - 81%	49%
	56,312		Market comparables	Discount rate⁽¹⁾	0% - 100%	4%
Non-covered OREO	15,735		Appraisal	Selling cost	8%	8%
Covered OREO	1,786		Appraisal	No Discount

December 31, 2013
Non-covered impaired loans	$	57,751	Market comparables	Discount rate⁽¹⁾	0% - 100%	13%
Non-covered OREO	13,031		Appraisal	Selling cost	8%	8%
Covered OREO	17,284		Appraisal	No Discount

(1)Discount rate is adjusted for factors such as liquidation cost of collateral and selling cost.

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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