FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2012

FAIR VALUE

Assets (Liabilities) Measured at Fair Value on Recurring Basis

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of March 31, 2012
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	March 31,			Assets		Inputs			Inputs
	2012			(Level 1)		(Level 2)			(Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	20,618		$	20,618	$	—		$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities	514,322			—		514,322			—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	49,383			—		49,383			—
Residential mortgage-backed securities	924,631			—		924,631			—
Municipal securities	82,772			—		82,772			—
Corporate debt securities:
Investment grade	1,090,609			—		1,090,609			—
Non-investment grade	13,922			—		11,675			2,247
Other securities	10,463			—		10,463			—
Total investment securities available-for-sale	$	2,706,720		$	20,618	$	2,683,855		$	2,247
Equity swap agreements	$	204		$	—	$	204		$	—
Foreign exchange options	4,695			—		4,695			—
Interest rate swaps	18,432			—		18,432			—
Short-term foreign exchange contracts	2,045			—		2,045			—
Derivatives liabilities	(25,291		)	—		(22,169		)	(3,122		)

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of December 31, 2011
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	December 31,			Assets		Inputs			Inputs
	2011			(Level 1)		(Level 2)			(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			—
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 Measured at Fair Value on a Non-Recurring Basis

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Three Months Ended March 31, 2012
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Three Months Ended
	March 31,		Assets		Inputs		Inputs		March 31,
	2012		(Level 1)		(Level 2)		(Level 3)		2012
	(In thousands)
Non-covered impaired loans:
Total residential	$	5,564	$	—	$	5,564	$	—	$	(1,903	)
Total commercial real estate	21,073		—		21,073		—		(1,343		)
Total commercial and industrial	3,316		—		—		3,316		(984		)
Total consumer	7		—		7		—		(57		)
Total non-covered impaired loans	$	29,960	$	—	$	26,644	$	3,316	$	(4,287	)
Non-covered OREO	$	8,195	$	—	$	8,195	$	—	$	(855	)
Covered OREO (1)	$	25,585	$	—	$	25,585	$	—	$	(6,449	)
Loans held for sale	$	4,600	$	—	$	4,600	$	—	$	(4,730	)

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Three Months Ended March 31, 2011
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Three Months Ended
	March 31,		Assets		Inputs		Inputs		March 31,
	2011		(Level 1)		(Level 2)		(Level 3)		2011
	(In thousands)
Non-covered impaired loans:
Total residential	$	3,025	$	—	$	3,025	$	—	$	(1,114	)
Total commercial real estate	35,837		—		35,837		—		(8,497		)
Total commercial and industrial	4,997		—		—		4,997		(11,722		)
Total consumer	1,114		—		1,114		—		(799		)
Total non-covered impaired loans	$	44,973	$	—	$	39,976	$	4,997	$	(22,132	)
Non-covered OREO	$	6,622	$	—	$	6,622	$	—	$	(1,052	)
Covered OREO (1)	$	45,877	$	—	$	45,877	$	—	$	(6,255	)
Loans held for sale	$	537	$	—	$	537	$	—	$	(959	)

(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 $6.4 million in losses, or $1.3 million, and 20% of the $6.3 million in losses, or $1.3 million, for the three months ended March 31, 2012 and 2011, 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		Non-Investment Grade			Derivatives Payable
	(In thousands)
Opening balance, January 1, 2012	$	2,235		$	—	$	2,235		$	(2,634	)
Total gains or (losses) for the period: (1)
Included in earnings	(99		)	—		(99		)	(488		)
Included in other comprehensive loss (unrealized) (2)	225			—		225			—
Purchases, issues, sales, settlements (3)
Purchases	—			—		—			—
Issues	—			—		—			—
Sales	—			—		—			—
Settlements	(114		)	—		(114		)	—
Transfer from investment grade to non-investment grade	—			—		—			—
Transfers in and/or out of Level 3 (4)	—			—		—			—
Closing balance, March 31, 2012	$	2,247		$	—	$	2,247		$	(3,122	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31, 2012	$	99		$	—	$	99		$	488

	Investment Securities Available-for-Sale
				Other  Residential Mortgage- Backed Securities			Corporate Debt Securities
	Total			Non-Investment  Grade			Non-Investment Grade			Derivatives  Payable
	(In thousands)
Opening balance, January 1, 2011	$	9,027		$	6,254		$	2,773		$	(3,449	)
Total gains or (losses) for the period: (1)
Included in earnings	(6,124		)	(5,660		)	(464		)	179
Included in other comprehensive loss (unrealized) (2)	8,835			8,763			72			—
Purchases, issues, sales, settlements (3)
Purchases	—			—			—			—
Issues	—			—			—			—
Sales	(9,357		)	(9,357		)	—			—
Settlements	(2		)	—			(2		)	—
Transfer from investment grade to non-investment grade	—			—			—			—
Transfers in and/or out of Level 3(4)	—			—			—			—
Closing balance, March 31, 2011	$	2,379		$	—		$	2,379		$	(3,270	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31, 2011	$	464		$	—		$	464		$	149

(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 condensed consolidated statements of income.

(2)Unrealized gains or losses on investment securities are reported in accumulated other comprehensive loss, net of tax, in the condensed consolidated statements of changes in stockholders’ equity.

(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

	March 31, 2012				December 31, 2011
	Carrying				Carrying
	Amount or				Amount or
	Notional		Estimated		Notional		Estimated
	Amount		Fair Value		Amount		Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,635,854	$	1,635,854	$	1,431,185	$	1,431,185
Short-term investments	177,576		177,576		61,834		61,834
Federal funds sold	30,000		30,000		—		—
Securities purchased under resale agreements	650,000		646,041		786,434		791,745
Investment securities available-for-sale	2,706,720		2,706,720		3,072,578		3,072,578
Loans held for sale	280,830		289,989		278,603		285,181
Loans receivable, net	13,948,524		13,310,866		13,984,930		13,520,712
Investment in Federal Home Loan Bank stock	130,506		130,506		136,897		136,897
Investment in Federal Reserve Bank stock	47,639		47,639		47,512		47,512
Accrued interest receivable	95,337		95,337		89,686		89,686
Equity swap agreements	22,709		204		22,709		202
Foreign exchange options	85,614		4,695		85,614		3,899
Interest rate swaps	533,735		18,432		585,196		20,474
Short-term foreign exchange contracts	200,898		2,045		210,295		1,403
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	10,563,249		10,563,249		10,307,001		10,307,001
Time deposits	6,775,320		6,821,016		7,146,001		7,194,125
Federal Home Loan Bank advances	394,719		420,758		455,251		479,029
Securities sold under repurchase agreements	995,000		1,172,723		1,020,208		1,177,331
Accrued interest payable	16,439		16,439		15,447		15,447
Long-term debt	212,178		139,361		212,178		144,392
Derivatives liabilities	1,041,860		25,291		835,913		24,164

Schedule fair value hierarchy for the estimated fair values of financial instruments

	March 31, 2012
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,635,854	$	1,635,854	$	—	$	—
Short-term investments	177,576		—		177,576		—
Federal funds sold	30,000		—		30,000		—
Securities purchased under resale agreements	646,041		—		646,041		—
Loans held for sale	289,989		—		289,989		—
Loans receivable, net	13,310,866		—		—		13,310,866
Investment in Federal Home Loan Bank stock	130,506		—		130,506		—
Investment in Federal Reserve Bank stock	47,639		—		47,639		—
Accrued interest receivable	95,337		—		95,337		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	10,563,249		—		10,563,249		—
Time deposits	6,821,016		—		—		6,821,016
Federal Home Loan Bank advances	420,758		—		420,758		—
Securities sold under repurchase agreements	1,172,723		—		1,172,723		—
Accrued interest payable	16,439		—		16,439		—
Long-term debt	139,361		—		139,361		—
	December 31, 2011
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,431,185	$	1,431,185	$	—	$	—
Short-term investments	61,834		—		61,834		—
Federal funds sold	—		—		—		—
Securities purchased under resale agreements	791,745		—		791,745		—
Loans held for sale	285,181		—		285,181		—
Loans receivable, net	13,520,712		—		—		13,520,712
Investment in Federal Home Loan Bank stock	136,897		—		136,897		—
Investment in Federal Reserve Bank stock	47,512		—		47,512		—
Accrued interest receivable	89,686		—		89,686		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	10,307,001		—		10,307,001		—
Time deposits	7,194,125		—		—		7,194,125
Federal Home Loan Bank advances	479,029		—		479,029		—
Securities sold under repurchase agreements	1,177,331		—		1,177,331		—
Accrued interest payable	15,447		—		15,447		—
Long-term debt	144,392		—		144,392		—