FAIR VALUE (Tables)

12 Months Ended

Dec. 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 December 31, 2012
	Fair Value Measurements December 31, 2012		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	$	460,677	$	460,677	$	—	$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities	197,855		—		197,855		—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	180,665		—		180,665		—
Residential mortgage-backed securities	1,144,085		—		1,144,085		—
Municipal securities	167,093		—		167,093		—
Other commercial mortgage-backed securities:
Investment grade	17,084		—		17,084		—
Corporate debt securities:
Investment grade	411,983		—		411,983		—
Non-investment grade	17,417		—		12,617		4,800
Other securities	10,170		—		10,170		—
Total investment securities available-for-sale	$	2,607,029	$	460,677	$	2,141,552	$	4,800
Equity swap agreements	$	—	$	—	$	—	$	—
Foreign exchange options	5,011		—		5,011		—
Interest rate swaps	36,943		—		36,943		—
Short-term foreign exchange contracts	896		—		896		—
Derivatives liabilities	(42,060)		—		(39,008)		(3,052)
	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 commercial mortgage-backed securities:
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 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, 2012
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Twelve Months Ended
	December 31,		Assets		Inputs		Inputs		December 31,
	2012		(Level 1)		(Level 2)		(Level 3)		2012
	(In thousands)
Non-covered impaired loans:
Total residential	$	23,043	$	—	$	23,043	$	—	$	(4,803	)
Total commercial real estate	31,737		—		31,737		—		(8,405		)
Total commercial and industrial	12,838		—		3,150		9,688		(14,540		)
Total consumer	372		—		372		—		(264		)
Total non-covered impaired loans	$	67,990	$	—	$	58,302	$	9,688	$	(28,012	)
Non-covered OREO	$	2,065	$	—	$	2,065	$	—	$	(5,122	)
Covered OREO (1)	$	10,468	$	—	$	10,468	$	—	$	(11,183	)
Loans held for sale	$	—	$	—	$	—	$	—	$	(4,730	)
	Assets Measured at Fair Value on a Non-Recurring Basis
	for the Twelve Months Ended December 31, 2011
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Twelve Months Ended
	December 31,		Assets		Inputs		Inputs		December 31,
	2011		(Level 1)		(Level 2)		(Level 3)		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	)
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	)

(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 $11.2 million in losses, or $2.2 million, and 20% of the $26.3 million in losses, or $5.3 million, for the year ended December 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		Corporate
			Mortgage-Backed		Debt
			Securities		Securities
			Non-Investment		Non-Investment
	Total		Grade		Grade		Derivatives
	(In thousands)
Beginning balance, January 1, 2012	$	2,235	$	—	$	2,235	$	(2,634)
Total gains or (losses): (1)
Included in earnings	(99)		—		(99)		(418)
Included in other comprehensive unrealized gain (2)	2,711		—		2,711		—
Purchases, issuances, sales, settlements (3)
Purchases	—		—		—		—
Issuances	—		—		—		—
Sales	—		—		—		—
Settlements	(47)		—		(47)		—
Transfer from investment grade to non-investment grade	—		—		—		—
Transfers in and/or out of Level 3	—		—		—		—
Ending balance, December 31, 2012	$	4,800	$	—	$	4,800	$	(3,052)
Changes in unrealized losses included in earnings relating to assets and liabilities still held at December 31, 2012	$	99	$	—	$	99	$	418
	Investment Securities Available-for-Sale
			Other Residential		Corporate
			Mortgage-Backed		Debt
			Securities		Securities
			Non-Investment		Non-Investment
	Total		Grade		Grade		Derivatives
	(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 unrealized gain (loss) (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	—		—		—		—
Ending balance, December 31, 2011	$	2,235	$	—	$	2,235	$	(2,634)
Changes in unrealized losses (gains) included in earnings relating to assets and liabilities still held at December 31, 2011	$	633	$	—	$	633	$	(815)

(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 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.

Carrying amounts and fair values of financial instruments

	December 31,
	2012				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	$	1,323,106	$	1,323,106	$	1,431,185	$	1,431,185
Short-term investments	366,378		366,378		61,834		61,834
Securities purchased under resale agreements	1,450,000		1,442,302		786,434		791,745
Investment securities available-for-sale	2,607,029		2,607,029		3,072,578		3,072,578
Loans held for sale	174,317		180,349		278,603		285,181
Loans receivable, net	14,645,785		14,743,218		13,984,930		13,520,712
Investment in Federal Home Loan Bank stock	107,275		107,275		136,897		136,897
Investment in Federal Reserve Bank stock	48,003		48,003		47,512		47,512
Accrued interest receivable	94,837		94,837		89,686		89,686
Equity swap agreements	—		—		22,709		202
Foreign exchange options	85,614		5,011		85,614		3,899
Interest rate swaps	1,190,793		36,943		585,196		20,474
Short-term foreign exchange contracts	112,459		896		210,295		1,403
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	12,187,740		12,187,740		10,307,001		10,307,001
Time deposits	6,121,614		6,115,530		7,146,001		7,194,125
Federal Home Loan Bank advances	312,975		333,060		455,251		479,029
Securities sold under repurchase agreements	995,000		1,173,830		1,020,208		1,177,331
Other borrowings	20,000		20,000		—		—
Accrued interest payable	10,855		10,855		15,447		15,447
Long-term debt	137,178		83,762		212,178		144,392
Derivatives liabilities	1,392,494		42,060		835,913		24,164

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

	December 31, 2012
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,323,106	$	1,323,106	$	—	$	—
Short-term investments	366,378		—		366,378		—
Securities purchased under resale agreements	1,442,302		—		1,442,302		—
Loans held for sale	180,349		—		180,349		—
Loans receivable, net	14,743,218		—		—		14,743,218
Investment in Federal Home Loan Bank stock	107,275		—		107,275		—
Investment in Federal Reserve Bank stock	48,003		—		48,003		—
Accrued interest receivable	94,837		—		94,837		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	12,187,740		—		12,187,740		—
Time deposits	6,115,530		—		—		6,115,530
Federal Home Loan Bank advances	333,060		—		333,060		—
Securities sold under repurchase agreements	1,173,830		—		1,173,830		—
Other borrowings	20,000		—		20,000		—
Accrued interest payable	10,855		—		10,855		—
Long-term debt	83,762		—		83,762		—
	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		—
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		—
Other borrowings	—		—		—		—
Accrued interest payable	15,447		—		15,447		—
Long-term debt	144,392		—		144,392		—