FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2014

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, 2014
				Quoted Prices in		Significant
	Fair Value			Active Markets		Other			Significant
	Measurements			for Identical		Observable			Unobservable
	June 30,			Assets		Inputs			Inputs
	2014			(Level 1)		(Level 2)			(Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	449,312		$	449,312	$	—		$	—
U.S. government agency and U.S. government sponsored enterprise debt securities	438,599			—		438,599			—
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	111,757			—		111,757			—
Residential mortgage-backed securities	797,966			—		797,966			—
Municipal securities	289,479			—		289,479			—
Other residential mortgage-backed securities:
Investment grade	57,206			—		57,206			—
Other commercial mortgage-backed securities:
Investment grade	51,463			—		51,463			—
Corporate debt securities:
Investment grade	210,870			—		210,870			—
Non-investment grade	16,579			—		8,662			7,917
Other securities	106,421			—		106,421			—
Total investment securities available-for-sale	$	2,529,652		$	449,312	$	2,072,423		$	7,917
Foreign exchange options	$	6,049		$	—	$	6,049		$	—
Interest rate swaps and caps	30,233			—		30,233			—
Foreign exchange contracts	4,499			—		4,499			—
Derivative liabilities	(48,388		)	—		(45,026		)	(3,362		)

	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 and caps	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 June 30, 2014
			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,
	2014		(Level 1)		(Level 2)		(Level 3)		2014
	(In thousands)
Non-covered loans:
Total residential	$	17,908	$	—	$	—	$	17,908	$	413
Total commercial real estate	22,758		—		—		22,758		1,865
Total commercial and industrial	9,837		—		—		9,837		(9,642		)
Total consumer	—		—		—		—		—
Total non-covered loans	$	50,503	$	—	$	—	$	50,503	$	(7,364	)
Non-covered OREO	$	676	$	—	$	—	$	676	$	—
Covered OREO (1)	$	4,009	$	—	$	—	$	4,009	$	(69	)

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Three Months Ended June 30, 2013
			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,
	2013		(Level 1)		(Level 2)		(Level 3)		2013
	(In thousands)
Non-covered loans:
Total residential	$	22,012	$	—	$	—	$	22,012	$	(838	)
Total commercial real estate	35,349		—		—		35,349		(1,320		)
Total commercial and industrial	9,203		—		—		9,203		674
Total consumer	372		—		—		372		4
Total non-covered loans	$	66,936	$	—	$	—	$	66,936	$	(1,480	)
Non-covered OREO	$	435	$	—	$	—	$	435	$	(18	)
Covered OREO (1)	$	7,500	$	—	$	—	$	7,500	$	(1,000	)

(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 $69 thousand in losses, or $14 thousand, and 20% of the $1.0 million in losses, or $200 thousand, for the three months ended June 30, 2014 and 2013, respectively.

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Six Months Ended June 30, 2014
			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,
	2014		(Level 1)		(Level 2)		(Level 3)		2014
	(In thousands)
Non-covered loans:
Total residential	$	9,800	$	—	$	—	$	9,800	$	27
Total commercial real estate	22,333		—		—		22,333		1,376
Total commercial and industrial	8,941		—		—		8,941		(11,705		)
Total consumer	—		—		—		—		—
Total non-covered loans	$	41,074	$	—	$	—	$	41,074	$	(10,302	)
Non-covered OREO	$	676	$	—	$	—	$	676	$	(74	)
Covered OREO (1)	$	4,009	$	—	$	—	$	4,009	$	(521	)

	Assets Measured at Fair Value on a Non-Recurring Basis
	as of and for the Six Months Ended June 30, 2013
			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,
	2013		(Level 1)		(Level 2)		(Level 3)		2013
	(In thousands)
Non-covered loans:
Total residential	$	19,971	$	—	$	—	$	19,971	$	(1,274	)
Total commercial real estate	30,397		—		—		30,397		(3,422		)
Total commercial and industrial	9,723		—		—		9,723		(1,492		)
Total consumer	293		—		—		293		(112		)
Total non-covered loans	$	60,384	$	—	$	—	$	60,384	$	(6,300	)
Non-covered OREO	$	13,238	$	—	$	—	$	13,238	$	(1,403	)
Covered OREO (1)	$	11,030	$	—	$	—	$	11,030	$	(1,126	)

(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 $521 thousand in losses, or $104 thousand, and 20% of the $1.1 million in losses, or $225 thousand, for the six months ended June 30, 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, April 1, 2014	$	6,717		$	(3,398	)
Total gains or (losses) for the period: (1)
Included in earnings	—			36
Included in other comprehensive income (unrealized) (2)	1,209			—
Purchases, issues, sales, settlements (3)
Purchases	—			—
Issues	—			—
Sales	—			—
Settlements	(9		)	—
Transfer from investment grade to non-investment grade	—			—
Transfers in and/or out of Level 3	—			—
Closing balance, June 30, 2014	$	7,917		$	(3,362	)
Changes in unrealized gains included in earnings relating to assets and liabilities held at the end of June 30, 2014	$	—		$	(36	)

	Investment Securities Available-for-Sale
	Corporate Debt Securities
	Non-Investment Grade			Derivatives Payable
	(In thousands)
Opening balance, April 1, 2013	$	5,284		$	(3,233	)
Total gains or (losses) for the period: (1)
Included in earnings	—			(24		)
Included in other comprehensive income (unrealized) (2)	239			—
Purchases, issues, sales, settlements (3)
Purchases	—			—
Issues	—			—
Sales	—			—
Settlements	(6		)	—
Transfer from investment grade to non-investment grade	—			—
Transfers in and/or out of Level 3	—			—
Closing balance, June 30, 2013	$	5,517		$	(3,257	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of June 30, 2013	$	—		$	24

(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 income (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.

	Investment Securities  Available-for-Sale
	Corporate Debt  Securities
	Non-Investment Grade			Derivatives Payable
	(In thousands)
Beginning balance, January 1, 2014	$	6,371		$	(3,655	)
Total gains or (losses) for the period: (1)
Included in earnings	—			293
Included in other comprehensive income (unrealized) (2)	1,643			—
Purchases, issues, sales, settlements (3)
Purchases	—			—
Issues	—			—
Sales	—			—
Settlements	(97		)	—
Transfer from investment grade to non-investment grade	—			—
Transfers in and/or out of Level 3	—			—
Closing balance, June 30, 2014	$	7,917		$	(3,362	)
Changes in unrealized gains included in earnings relating to assets and liabilities held at the end of June 30, 2014	$	—		$	(293	)

	Investment Securities  Available-for-Sale
	Corporate Debt  Securities
	Non-Investment Grade			Derivatives Payable
	(In thousands)
Beginning balance, January 1, 2013	$	4,800		$	(3,052	)
Total gains or (losses) for the period: (1)
Included in earnings	—			(205		)
Included in other comprehensive income (unrealized) (2)	788			—
Purchases, issues, sales, settlements (3)
Purchases	—			—
Issues	—			—
Sales	—			—
Settlements	(71		)	—
Transfer from investment grade to non-investment grade	—			—
Transfers in and/or out of Level 3	—			—
Closing balance, June 30, 2013	$	5,517		$	(3,257	)
Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of June 30, 2013	$	—		$	205

(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 income (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

	June 30, 2014				December 31, 2013
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,246,044	$	1,246,044	$	895,820	$	895,820
Short-term investments	286,130		286,130		257,473		257,473
Securities purchased under resale agreements	1,275,000		1,266,730		1,300,000		1,279,406
Investment securities available-for-sale	2,529,652		2,529,652		2,733,797		2,733,797
Loans held for sale	450,864		462,397		204,970		212,469
Loans receivable, net	19,828,801		19,211,124		17,600,613		16,741,674
Investment in Federal Home Loan Bank stock	37,731		37,731		62,330		62,330
Investment in Federal Reserve Bank stock	54,217		54,217		48,333		48,333
Accrued interest receivable	100,323		100,323		116,314		116,314
Foreign exchange options	6,049		6,049		6,290		6,290
Interest rate swaps and caps	30,233		30,233		28,078		28,078
Foreign exchange contracts	4,499		4,499		6,181		6,181
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	16,643,474		16,643,474		14,588,570		14,588,570
Time deposits	6,231,615		6,212,638		5,824,348		5,791,659
Federal Home Loan Bank advances	316,156		337,621		315,092		308,521
Securities sold under repurchase agreements	1,005,211		1,128,491		995,000		1,134,774
Accrued interest payable	11,020		11,020		11,178		11,178
Long-term debt	235,732		204,101		226,868		184,415
Derivative liabilities	48,388		48,388		50,262		50,262

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

	June 30, 2014
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,246,044	$	1,246,044	$	—	$	—
Short-term investments	286,130		—		286,130		—
Securities purchased under resale agreements	1,266,730		—		1,266,730		—
Loans held for sale	462,397		—		462,397		—
Loans receivable, net	19,211,124		—		—		19,211,124
Investment in Federal Home Loan Bank stock	37,731		—		37,731		—
Investment in Federal Reserve Bank stock	54,217		—		54,217		—
Accrued interest receivable	100,323		—		100,323		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	16,643,474		—		16,643,474		—
Time deposits	6,212,638		—		—		6,212,638
Federal Home Loan Bank advances	337,621		—		337,621		—
Securities sold under repurchase agreements	1,128,491		—		1,128,491		—
Accrued interest payable	11,020		—		11,020		—
Long-term debt	204,101		—		204,101		—

	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		—