FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Schedule of information on the assets measured and recorded at fair value on a recurring basis

	Fair Value Measurement as of September 30, 2013

	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Recurring Basis:
Securities available-for-sale:
Government agency and government-sponsored enterprise residential mortgage-backed securities	$	913,322	$	—	$	913,322	$	—
Covered private label CMOs		39,378		—		—		39,378
Municipal securities		439,635		—		439,635		—
Corporate securities		82,106		—		82,106		—
Other securities		37,706		514		37,192		—

	$	1,512,147	$	514	$	1,472,255	$	39,378

Fair value measurements

Summary of activity for assets measured at fair value on a recurring basis that are categorized as Level 3

	Covered Private Label CMOs (Level 3)
	(In thousands)
Balance, December 31, 2012	$	44,684
Total realized in earnings		1,587
Decrease in unrealized gain in comprehensive income		(731	)
Net settlements		(6,162	)

Balance, September 30, 2013	$	39,378

Schedule of assets measured at fair value on a non-recurring basis

	Fair Value Measurement as of September 30, 2013
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Non-Recurring Basis:
Non-PCI impaired loans	$	75,435	$	—	$	1,160	$	74,275
Non-covered other real estate owned		7,084		—		7,084		—
Covered other real estate owned		141		—		26		115
SBA loan servicing asset		853		—		—		853

	$	83,513	$	—	$	8,270	$	75,243

Schedule of gains and (losses) on assets measured at fair value on a non-recurring basis

	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013
	(In thousands)
Gain (Loss) on Assets Measured on a Non-Recurring Basis:
Non-PCI impaired loans	$	(545	)	$	(2,422	)
Non-covered other real estate owned		(643	)		(643	)
Covered other real estate owned		(65	)		(69	)
SBA loan servicing asset		—			12

Total net loss	$	(1,253	)	$	(3,122	)

Summary of carrying values and estimated fair values of certain financial instruments

	September 30, 2013
			Estimated Fair Value
	Carrying or Contract Amount		Estimated Fair Value
	Carrying or Contract Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	132,467	$	132,467	$	132,467	$	—	$	—
Interest-earning deposits in financial institutions		11,552		11,552		11,552		—		—
Securities available-for-sale		1,512,147		1,512,147		514		1,472,255		39,378
Investment in FHLB stock		34,095		34,095		—		34,095		—
Loans and leases, net		4,299,607		4,313,163		—		1,160		4,312,003
SBA loan servicing asset		853		853		—		—		853
Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits		4,709,623		4,709,623		—		4,709,623		—
Time deposits		723,521		725,184		—		725,184		—
Borrowings		8,243		8,244		—		8,244		—
Subordinated debentures		132,500		132,365		—		132,365		—

	December 31, 2012

			Estimated Fair Value
	Carrying or Contract Amount		Estimated Fair Value
	Carrying or Contract Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	89,011	$	89,011	$	89,011	$	—	$	—
Interest-earning deposits in financial institutions		75,393		75,393		75,393		—		—
Securities available-for-sale		1,355,385		1,355,385		8,985		1,301,716		44,684
Investment in FHLB stock		37,126		37,126		—		37,126		—
Loans and leases, net		3,498,329		3,551,674		—		4,975		3,546,699
SBA loan servicing asset		1,000		1,000		—		—		1,000
Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits		3,888,794		3,888,794		—		3,888,794		—
Time deposits		820,327		823,912		—		823,912		—
Borrowings		12,591		12,611		—		12,611		—
Subordinated debentures		108,250		108,186		—		108,186		—

Recurring basis

Fair value measurements

Schedule of information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values

Unobservable Inputs	Range of Inputs

Voluntary annual prepayment speeds	0% - 32.6%	8.1	%
Annual default rates	0% - 46.2%	3.2	%
Loss severity rates	0% - 64.9%	35.3	%
Discount rates	0% - 13.5%	5.8	%

Nonrecurring basis

Fair value measurements

Schedule of information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values

Asset	Fair Value (in 000's)		Valuation Methodology	Unobservable Inputs	Range

Impaired loans⁽¹⁾	$	72,528	Discounted cash flow	Discount rates	4.06% - 8.81%	6.57	%
	$	490	Appraisals	No discounts
OREO⁽²⁾	$	115	Appraisals	Discount, including 8% for selling costs	30%	30	%
SBA loan servicing asset	$	853	Discounted cash flow	Prepayment speeds	3.40% - 16.34%		⁽³⁾
				Discount rates	9.63% - 13.26%		⁽³⁾

(1): Excludes $1.3 million of impaired loans with balances of $250,000 or less.
(2): As of September 30, 2013, there was one OREO measured at Level 3.
(3): Not readily available.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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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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