FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2013

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, 2013
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	March 31,			Assets		Inputs			Inputs
	2013			(Level 1)		(Level 2)			(Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	470,764		$	470,764	$	—		$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities	197,537			—		197,537			—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	145,044			—		145,044			—
Residential mortgage-backed securities	1,035,415			—		1,035,415			—
Municipal securities	206,758			—		206,758			—
Other commercial mortgage-backed securities:									—
Investment grade	51,359			—		51,359			—
Corporate debt securities:
Investment grade	453,323			—		453,323			—
Non-investment grade	18,000			—		12,716			5,284
Other securities	10,793			—		10,793			—
Total investment securities available-for-sale	$	2,588,993		$	470,764	$	2,112,945		$	5,284
Foreign exchange options	$	5,340		$	—	$	5,340		$	—
Interest rate swaps	34,192			—		34,192			—
Short-term foreign exchange contracts	1,303			—		1,303			—
Derivative liabilities	(41,024		)	—		(37,791		)	(3,233		)

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of December 31, 2012
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	December 31,			Assets		Inputs			Inputs
	2012			(Level 1)		(Level 2)			(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
Foreign exchange options	$	5,011		$	—	$	5,011		$	—
Interest rate swaps	36,943			—		36,943			—
Short-term foreign exchange contracts	896			—		896			—
Derivative liabilities	(42,060		)	—		(39,008		)	(3,052		)

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, 2013
			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,
	2013		(Level 1)		(Level 2)		(Level 3)		2013
	(In thousands)
Non-covered impaired loans:
Total residential	$	12,969	$	—	$	12,969	$	—	$	(440	)
Total commercial real estate	23,382		—		23,382		—		(2,115		)
Total commercial and industrial	2,566		—		1,432		1,134		(2,258		)
Total consumer	665		—		665		—		(116		)
Total non-covered impaired loans	$	39,582	$	—	$	38,448	$	1,134	$	(4,929	)
Non-covered OREO	$	13,227	$	—	$	13,227	$	—	$	(1,385	)
Covered OREO (1)	$	3,720	$	—	$	3,720	$	—	$	(126	)

	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	)

(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 $126 thousand in losses, or $25 thousand, and 20% of the $6.4 million in losses, or $1.3 million, for the three months ended March 31, 2013 and 2012, respectively.

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

	Investment Securities Available-for-Sale
	Corporate Debt Securities
	Non-Investment Grade			Derivatives Payable
	(In thousands)
Opening balance, January 1, 2013	$	4,800		$	(3,052	)
Total gains or (losses) for the period: (1)
Included in earnings	—			(181		)
Included in other comprehensive income (unrealized) (2)	549			—
Purchases, issues, sales, settlements (3)
Purchases	—			—
Issues	—			—
Sales	—			—
Settlements	(65		)	—
Transfer from investment grade to non-investment grade	—			—
Transfers in and/or out of Level 3	—			—
Closing balance, March 31, 2013	$	5,284		$	(3,233	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31, 2013	$	—		$	181

	Investment Securities Available-for-Sale
	Corporate Debt Securities
	Non-Investment Grade			Derivatives Payable
	(In thousands)
Opening balance, January 1, 2012	$	2,235		$	(2,634	)
Total gains or (losses) for the period: (1)
Included in earnings	(99		)	(488		)
Included in other comprehensive loss (unrealized) (2)	225			—
Purchases, issues, sales, settlements (3)
Purchases	—			—
Issues	—			—
Sales	—			—
Settlements	(114		)	—
Transfer from investment grade to non-investment grade	—			—
Transfers in and/or out of Level 3	—			—
Closing balance, March 31, 2012	$	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		$	488

(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 income (loss), net of tax, in the condensed 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

	March 31, 2013				December 31, 2012
	Carrying				Carrying
	Amount or				Amount or
	Notional		Estimated		Notional		Estimated
	Amount		Fair Value		Amount		Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,736,865	$	1,736,865	$	1,323,106	$	1,323,106
Short-term investments	379,029		379,029		366,378		366,378
Securities purchased under resale agreements	1,400,000		1,392,927		1,450,000		1,442,302
Investment securities available-for-sale	2,588,993		2,588,993		2,607,029		2,607,029
Loans held for sale	226,635		233,843		174,317		180,349
Loans receivable, net	14,872,172		14,818,860		14,645,785		14,743,218
Investment in Federal Home Loan Bank stock	96,795		96,795		107,275		107,275
Investment in Federal Reserve Bank stock	48,036		48,036		48,003		48,003
Accrued interest receivable	103,392		103,392		94,837		94,837
Foreign exchange options	85,614		5,340		85,614		5,011
Interest rate swaps	1,244,393		34,192		1,190,793		36,943
Short-term foreign exchange contracts	138,940		1,303		112,459		896
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	12,901,076		12,901,076		12,187,740		12,187,740
Time deposits	6,034,626		6,016,426		6,121,614		6,115,530
Federal Home Loan Bank advances	313,494		326,527		312,975		333,060
Securities sold under repurchase agreements	995,000		1,174,984		995,000		1,173,830
Other borrowings	—		—		20,000		20,000
Accrued interest payable	11,103		11,103		10,855		10,855
Long-term debt	137,178		88,379		137,178		83,762
Derivative liabilities	1,576,769		41,024		1,392,494		42,060

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

	March 31, 2013
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,736,865	$	1,736,865	$	—	$	—
Short-term investments	379,029		—		379,029		—
Securities purchased under resale agreements	1,392,927		—		1,392,927		—
Loans held for sale	233,843		—		233,843		—
Loans receivable, net	14,818,860		—		—		14,818,860
Investment in Federal Home Loan Bank stock	96,795		—		96,795		—
Investment in Federal Reserve Bank stock	48,036		—		48,036		—
Accrued interest receivable	103,392		—		103,392		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	12,901,076		—		12,901,076		—
Time deposits	6,016,426		—		—		6,016,426
Federal Home Loan Bank advances	326,527		—		326,527		—
Securities sold under repurchase agreements	1,174,984		—		1,174,984		—
Other borrowings	—		—		—		—
Accrued interest payable	11,103		—		11,103		—
Long-term debt	88,379		—		88,379		—

	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		—