FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2012

FAIR VALUE

Assets (Liabilities) Measured at Fair Value on Recurring Basis

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of June 30, 2012
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	June 30,			Assets		Inputs			Inputs
	2012			(Level 1)		(Level 2)			(Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	72,188		$	72,188	$	—		$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities	359,724			—		359,724			—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	48,689			—		48,689			—
Residential mortgage-backed securities	876,244			—		876,244			—
Municipal securities	65,782			—		65,782			—
Corporate debt securities:
Investment grade	426,055			—		426,055			—
Non-investment grade	14,919			—		12,497			2,422
Other securities	10,138			—		10,138			—
Total investment securities available-for-sale	$	1,873,739		$	72,188	$	1,799,129		$	2,422
Equity swap agreements	$	204		$	—	$	204		$	—
Foreign exchange options	4,264			—		4,264			—
Interest rate swaps	28,582			—		28,582			—
Short-term foreign exchange contracts	877			—		877			—
Derivative liabilities	(31,740		)	—		(28,926		)	(2,814		)

	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			—
Derivative 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 June 30, 2012
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Three Months Ended
	June 30,		Assets		Inputs		Inputs		June 30,
	2012		(Level 1)		(Level 2)		(Level 3)		2012
	(In thousands)
Non-covered impaired loans:
Total residential	$	14,824	$	—	$	14,824	$	—	$	(2,240	)
Total commercial real estate	16,517		—		16,517		—		(4,315		)
Total commercial and industrial	15,616		—		—		15,616		(9,705		)
Total consumer	372		—		372		—		(264		)
Total non-covered impaired loans	$	47,329	$	—	$	31,713	$	15,616	$	(16,524	)
Non-covered OREO	$	4,625	$	—	$	4,625	$	—	$	(1,820	)
Covered OREO (1)	$	6,544	$	—	$	6,544	$	—	$	(1,241	)
Loans held for sale	$	—	$	—	$	—	$	—	$	—

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Three Months Ended June 30, 2011
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Three Months Ended
	June 30,		Assets		Inputs		Inputs		June 30,
	2011		(Level 1)		(Level 2)		(Level 3)		2011
	(In thousands)
Non-covered impaired loans:
Total residential	$	3,898	$	—	$	3,898	$	—	$	(715	)
Total commercial real estate	28,936		—		28,936		—		(16,933		)
Total commercial and industrial	6,795		—		—		6,795		2,487
Total consumer	—		—		—		—		—
Total non-covered impaired loans	$	39,629	$	—	$	32,834	$	6,795	$	(15,161	)
Non-covered OREO	$	7,034	$	—	$	7,034	$	—	$	(460	)
Covered OREO (1)	$	46,333	$	—	$	46,333	$	—	$	(9,148	)
Loans held for sale	$	—	$	—	$	—	$	—	$	—

(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 $1.2 million in losses, or $248 thousand, and 20% of the $9.1 million in losses, or $1.8 million, for the three months ended June 30, 2012 and 2011, respectively.

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Six Months Ended June 30, 2012
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Six Months Ended
	June 30,		Assets		Inputs		Inputs		June 30,
	2012		(Level 1)		(Level 2)		(Level 3)		2012
	(In thousands)
Non-covered impaired loans:
Total residential	$	18,466	$	—	$	18,466	$	—	$	(2,789	)
Total commercial real estate	26,789		—		26,789		—		(4,316		)
Total commercial and industrial	16,097		—		—		16,097		(10,281		)
Total consumer	379		—		379		—		(321		)
Total non-covered impaired loans	$	61,731	$	—	$	45,634	$	16,097	$	(17,707	)
Non-covered OREO	$	8,674	$	—	$	8,674	$	—	$	(2,675	)
Covered OREO (1)	$	17,712	$	—	$	17,712	$	—	$	(7,689	)
Loans held for sale	$	—	$	—	$	—	$	—	$	(4,730	)

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Six Months Ended June 30, 2011
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Six Months Ended
	June 30,		Assets		Inputs		Inputs		June 30,
	2011		(Level 1)		(Level 2)		(Level 3)		2011
	(In thousands)
Non-covered impaired loans:
Total residential	$	5,540	$	—	$	5,540	$	—	$	(1,502	)
Total commercial real estate	33,480		—		33,480		—		(20,708		)
Total commercial and industrial	3,968		—		—		3,968		(4,562		)
Total consumer	272		—		272		—		(178		)
Total non-covered impaired loans	$	43,260	$	—	$	39,292	$	3,968	$	(26,950	)
Non-covered OREO	$	13,656	$	—	$	13,656	$	—	$	(1,512	)
Covered OREO (1)	$	93,097	$	—	$	93,097	$	—	$	(15,403	)
Loans held for sale	$	11,493	$	—	$	11,493	$	—	$	(4,722	)

(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 $7.7 million in losses, or $1.5 million, and 20% of the $15.4 million in losses, or $3.1 million, for the six months ended June 30, 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, April 1, 2012	$	2,247	$	—	$	2,247	$	(3,122	)
Total gains or (losses) for the period: (1)
Included in earnings	—		—		—		308
Included in other comprehensive loss (unrealized) (2)	105		—		105		—
Purchases, issues, sales, settlements (3)
Purchases	—		—		—		—
Issues	—		—		—		—
Sales	—		—		—		—
Settlements	70		—		70		—
Transfer from investment grade to non-investment grade	—		—		—		—
Transfers in and/or out of Level 3 (4)	—		—		—		—
Closing balance, June 30, 2012	$	2,422	$	—	$	2,422	$	(2,814	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of June 30, 2012	$	—	$	—	$	—	$	(308	)

	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, April 1, 2011	$	2,379	$	—	$	2,379	$	(3,270	)
Total gains or (losses) for the period: (1)
Included in earnings	—		—		—		23
Included in other comprehensive loss (unrealized) (2)	11		—		11		—
Purchases, issues, sales, settlements (3)
Purchases	—		—		—		—
Issues	—		—		—		—
Sales	—		—		—		—
Settlements	63		—		63		—
Transfer from investment grade to non-investment grade	—		—		—		—
Transfers in and/or out of Level 3(4)	—		—		—		—
Closing balance, June 30, 2011	$	2,453	$	—	$	2,453	$	(3,247	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of June 30, 2011	$	—	$	—	$	—	$	(178	)

(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.

	Investment Securities Available-for-Sale
				Other Residential Mortgage- Backed Securities		Corporate Debt Securities
	Total			Non-Investment Grade		Non-Investment Grade			Derivatives Payable
	(In thousands)
Beginning balance, January 1, 2012	$	2,235		$	—	$	2,235		$	(2,634	)
Total gains or (losses) for the period: (1)
Included in earnings	(99		)	—		(99		)	(180		)
Included in other comprehensive loss (unrealized) (2)	330			—		330			—
Purchases, issues, sales, settlements (3)
Purchases	—			—		—			—
Issues	—			—		—			—
Sales	—			—		—			—
Settlements	(44		)	—		(44		)	—
Transfer from investment grade to non-investment grade	—			—		—			—
Transfers in and/or out of Level 3 (4)	—			—		—			—
Closing balance, June 30, 2012	$	2,422		$	—	$	2,422		$	(2,814	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of June 30, 2012	$	99		$	—	$	99		$	180

	Investment Securities Available-for-Sale
				Other Residential Mortgage- Backed Securities			Corporate Debt Securities
	Total			Non-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) for the period: (1)
Included in earnings	(6,124		)	(5,660		)	(464		)	202
Included in other comprehensive loss (unrealized) (2)	8,846			8,763			83			—
Purchases, issues, sales, settlements (3)
Purchases	—			—			—			—
Issues	—			—			—			—
Sales	(9,357		)	(9,357		)	—			—
Settlements	61			—			61			—
Transfer from investment grade to non-investment grade	—			—			—			—
Transfers in and/or out of Level 3(4)	—			—			—			—
Closing balance, June 30, 2011	$	2,453		$	—		$	2,453		$	(3,247	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of June 30, 2011	$	464		$	—		$	464		$	(29	)

(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

	June 30, 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	$	2,429,614	$	2,429,614	$	1,431,185	$	1,431,185
Short-term investments	254,714		254,714		61,834		61,834
Federal funds sold	30,000		30,000		—		—
Securities purchased under resale agreements	675,000		670,342		786,434		791,745
Investment securities available-for-sale	1,873,739		1,873,739		3,072,578		3,072,578
Loans held for sale	137,812		142,211		278,603		285,181
Loans receivable, net	13,972,267		13,435,594		13,984,930		13,520,712
Investment in Federal Home Loan Bank stock	124,223		124,223		136,897		136,897
Investment in Federal Reserve Bank stock	47,748		47,748		47,512		47,512
Accrued interest receivable	85,389		85,389		89,686		89,686
Equity swap agreements	22,709		204		22,709		202
Foreign exchange options	85,614		4,264		85,614		3,899
Interest rate swaps	840,956		28,582		585,196		20,474
Short-term foreign exchange contracts	92,116		877		210,295		1,403
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	11,040,151		11,040,151		10,307,001		10,307,001
Time deposits	6,301,721		6,326,965		7,146,001		7,194,125
Federal Home Loan Bank advances	362,885		383,493		455,251		479,029
Securities sold under repurchase agreements	995,000		1,184,501		1,020,208		1,177,331
Accrued interest payable	9,846		9,846		15,447		15,447
Long-term debt	212,178		145,644		212,178		144,392
Derivative liabilities	875,705		31,740		835,913		24,164

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

	June 30, 2012
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	2,429,614	$	2,429,614	$	—	$	—
Short-term investments	254,714		—		254,714		—
Federal funds sold	30,000		—		30,000		—
Securities purchased under resale agreements	670,342		—		670,342		—
Loans held for sale	142,211		—		142,211		—
Loans receivable, net	13,435,594		—		—		13,435,594
Investment in Federal Home Loan Bank stock	124,223		—		124,223		—
Investment in Federal Reserve Bank stock	47,748		—		47,748		—
Accrued interest receivable	85,389		—		85,389		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	11,040,151		—		11,040,151		—
Time deposits	6,326,965		—		—		6,326,965
Federal Home Loan Bank advances	383,493		—		383,493		—
Securities sold under repurchase agreements	1,184,501		—		1,184,501		—
Accrued interest payable	9,846		—		9,846		—
Long-term debt	145,644		—		145,644		—

	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		—