FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2014

Assets (Liabilities) Measured at Fair Value on Recurring Basis

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of March 31, 2014
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	March 31,			Assets		Inputs			Inputs
	2014			(Level 1)		(Level 2)			(Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	428,253		$	428,253	$	—		$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities	384,685			—		384,685			—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	119,107			—		119,107			—
Residential mortgage-backed securities	824,105			—		824,105			—
Municipal securities	283,897			—		283,897			—
Other residential mortgage-backed securities:
Investment grade	57,007			—		57,007			—
Other commercial mortgage-backed securities:
Investment grade	51,419			—		51,419			—
Corporate debt securities:
Investment grade	209,691			—		209,691			—
Non-investment grade	15,512			—		8,795			6,717
Other securities	101,068			—		101,068			—
Total investment securities available-for-sale	$	2,474,744		$	428,253	$	2,039,774		$	6,717
Foreign exchange options	$	5,915		$	—	$	5,915		$	—
Interest rate swaps	26,293			—		26,293			—
Foreign exchange contracts	4,378			—		4,378			—
Derivative liabilities	(46,778		)	—		(43,380		)	(3,398		)

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of December 31, 2013
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	December 31,			Assets		Inputs			Inputs
	2013			(Level 1)		(Level 2)			(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
Foreign exchange options	$	6,290		$	—	$	6,290		$	—
Interest rate swaps	28,078			—		28,078			—
Foreign exchange contracts	6,181			—		6,181			—
Derivative liabilities	(50,262		)	—		(46,607		)	(3,655		)

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, 2014
			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,
	2014		(Level 1)		(Level 2)		(Level 3)		2014
	(In thousands)
Non-covered loans:
Total residential	$	17,132	$	—	$	—	$	17,132	$	(365	)
Total commercial real estate	25,888		—		—		25,888		(464		)
Total commercial and industrial	13,272		—		—		13,272		(6,530		)
Total consumer	—		—		—		—		—
Total non-covered loans	$	56,292	$	—	$	—	$	56,292	$	(7,359	)
Non-covered OREO	$	745	$	—	$	—	$	745	$	(74	)
Covered OREO (1)	$	899	$	—	$	—	$	899	$	(452	)

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

(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 $452 thousand in losses, or $90 thousand, and 20% of the $126 thousand in losses, or $25 thousand, for the three months ended March 31, 2014 and 2013, 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, 2014	$	6,371		$	(3,655	)
Total gains or (losses) for the period: (1)
Included in earnings	—			257
Included in other comprehensive income (unrealized) (2)	434			—
Purchases, issues, sales, settlements (3)
Purchases	—			—
Issues	—			—
Sales	—			—
Settlements	(88		)	—
Transfer from investment grade to non-investment grade	—			—
Transfers in and/or out of Level 3	—			—
Closing balance, March 31, 2014	$	6,717		$	(3,398	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31, 2014	$	—		$	(257	)

	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

(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, 2014				December 31, 2013
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,884,855	$	1,884,855	$	895,820	$	895,820
Short-term investments	323,266		323,266		257,473		257,473
Securities purchased under resale agreements	1,200,000		1,186,314		1,300,000		1,279,406
Investment securities available-for-sale	2,474,744		2,474,744		2,733,797		2,733,797
Loans held for sale	577,353		592,769		204,970		212,469
Loans receivable, net	19,082,250		18,494,494		17,600,613		16,741,674
Investment in Federal Home Loan Bank stock	52,110		52,110		62,330		62,330
Investment in Federal Reserve Bank stock	50,370		50,370		48,333		48,333
Accrued interest receivable	102,802		102,802		116,314		116,314
Foreign exchange options	5,915		5,915		6,290		6,290
Interest rate swaps	26,293		26,293		28,078		28,078
Foreign exchange contracts	4,378		4,378		6,181		6,181
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	16,444,764		16,444,764		14,588,570		14,588,570
Time deposits	6,383,293		6,355,318		5,824,348		5,791,659
Federal Home Loan Bank advances	315,620		333,835		315,092		308,521
Securities sold under repurchase agreements	1,005,316		1,134,817		995,000		1,134,774
Accrued interest payable	11,582		11,582		11,178		11,178
Long-term debt	240,675		205,012		226,868		184,415
Derivative liabilities	46,778		46,778		50,262		50,262

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

	March 31, 2014
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,884,855	$	1,884,855	$	—	$	—
Short-term investments	323,266		—		323,266		—
Securities purchased under resale agreements	1,186,314		—		1,186,314		—
Loans held for sale	592,769		—		592,769		—
Loans receivable, net	18,494,494		—		—		18,494,494
Investment in Federal Home Loan Bank stock	52,110		—		52,110		—
Investment in Federal Reserve Bank stock	50,370		—		50,370		—
Accrued interest receivable	102,802		—		102,802		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	16,444,764		—		16,444,764		—
Time deposits	6,355,318		—		—		6,355,318
Federal Home Loan Bank advances	333,835		—		333,835		—
Securities sold under repurchase agreements	1,134,817		—		1,134,817		—
Accrued interest payable	11,582		—		11,582		—
Long-term debt	205,012		—		205,012		—

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

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- 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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