FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2012

FAIR VALUE MEASUREMENTS

Summary of assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value

	September 30, 2012
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading account security	$	—	$	—	$	17,237	$	17,237
Available-for-sale securities:
Municipal bonds and obligations	—		82,336		—		82,336
Governmentguaranteed residential mortgage-backed securities	—		44,947		—		44,947
Government-sponsored residential mortgage-backed securities	—		280,012		—		280,012
Corporate bonds	—		9,703		—		9,703
Trust preferred securities	—		18,252		817		19,069
Other bonds and obligations	—		292		—		292
Marketable equity securities	31,085		—		—		31,085
Loans held for sale	—		114,698		—		114,698
Derivative assets	—		15,747		7,833		23,580
Derivative liabilities	4,669		32,244		—		36,913

	December 31, 2011
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading account security	$	—	$	—	$	17,395	$	17,395
Available-for-sale securities:
Municipal bonds and obligations	—		77,854		—		77,854
Government guaranteed residential mortgage-backed securities	—		45,096		—		45,096
Government-sponsored residential mortgage-backed securities	—		247,611		—		247,611
Corporate bonds	—		9,727		—		9,727
Trust preferred securities	—		17,271		544		17,815
Other bonds and obligations	—		644		—		644
Marketable equity securities	21,009		—		—		21,009
Derivative assets	—		13,926		—		13,926
Derivative liabilities	—		26,864		66		26,930

Schedule of loans held for sale

					Aggregate Fair Value
September 30, 2012	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans Held for Sale	$	114,698	$	109,746	$	4,952

Schedule of changes in level 3 assets that were measured at fair value on a recurring basis

	Assets
	Trading			Securities			Interest Rate
	Account			Available			Lock
(In thousands)	Security			for Sale			Commitments
Balance as of December 31, 2011	$	17,395		$	544		$	—
Unrealized gain recognized in other non-interest income	(428		)	—			—
Unrealized loss included in accumulated other comprehensive loss	—			—			—
Paydown of trading account security	(120		)	—			—
Balance as of March 31, 2012	$	16,847		$	544		$	—
Greenpark Acquisition	—			—			2,126
Unrealized (loss) gain recognized in other non-interest income	638			—			4,337
Unrealized loss included in accumulated other comprehensive loss	—			69			—
Paydown of trading account security	(120		)	—			—
Transfers to held for sale loans	—			—			(2,435		)
Balance as of June 30, 2012	$	17,365		$	613		$	4,028
Unrealized (loss) gain recognized in other non-interest income	(7		)	—			10,858
Unrealized loss included in accumulated other comprehensive loss	—			204			—
Paydown of trading account security	(121		)	—			—
Transfers to held for sale loans	—			—			(7,053		)
Balance as of September 30, 2012	$	17,237		$	817		$	7,833
Unrealized gains (losses) relating to instruments still held at September 30, 2012	$	3,502		$	(1,784	)	$	10,858

	Assets
	Trading			Securities
	Account			Available
(In thousands)	Security			for Sale
Balance as of December 31, 2010	$	16,155		$	1,695
Unrealized (loss) gain recognized in other non-interest income	(257		)	—
Unrealized loss included in accumulated other comprehensive loss	—			498
Paydown of trading account security	(117		)	—
Balance as of March 31, 2011	$	15,781		$	2,193
Unrealized (loss) gain recognized in other non-interest income	357			—
Unrealized loss included in accumulated other comprehensive loss	—			112
Paydown of trading account security	(114		)	—
Transfer out of Level 3	—			(1,624		)
Balance as of June 30, 2011	$	16,024		$	681
Unrealized (loss) gain recognized in other non-interest income	1,592			—
Unrealized loss included in accumulated other comprehensive loss	—			(218		)
Paydown of trading account security	(115		)	—
Balance as of September 30, 2011	$	17,501		$	463
Unrealized gains (losses) relating to instruments still held at September 30, 2011	$	3,287		$	(2,136	)

Summary of applicable non-recurring fair value measurements

	September 30, 2012		December 31, 2011		Nine Months Ended September 30, 2012
	Level 3		Level 3		Total
(In thousands)	Inputs		Inputs		Losses
Assets
Impaired loans	$	6,949	$	11,155	4,206
Capitalized mortgage servicing rights	2,494		3,067		573
Other real estate owned	1,399		1,900		—
Total Assets	$	10,842	$	16,122	$	4,779

Summary of estimated fair values, and related carrying amounts, of financial instruments

	September 30, 2012										December 31, 2011
	Carrying		Fair								Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3		Amount		Value
Financial Assets
Cash and cash equivalents	$	48,214	$	48,214	$	48,214	$	—	$	—	$	75,359	$	75,359
Trading security	17,237		17,237		—		—		17,237		17,395		17,395
Securities available for sale	467,444		467,444		31,085		435,542		817		419,756		419,756
Securities held to maturity	51,156		52,892		—		—		52,892		58,912		60,395
Restricted equity securities	37,135		37,135		—		37,135		—		37,118		37,118
Net loans	3,385,302		3,411,331		—		—		3,411,331		2,924,126		2,990,173
Loans held for sale	114,698		114,698		—		114,698		—		1,455		1,455
Accrued interest receivable	13,640		13,640		—		13,640		—		11,350		11,350
Cash surrender value of bank-owned life insurance policies	76,904		76,904		—		76,904		—		75,009		75,009
Derivative assets	23,579		23,579		—		15,747		7,832		13,926		13,926
Financial Liabilities
Total deposits	$	3,453,363	$	3,464,962	$	—	$	3,464,962	$	—	$	3,101,175	$	3,104,204
Short-term debt	61,800		61,800		—		61,800		—		10,000		10,000
Long-term Federal Home Loan Bank advances	388,999		393,703		—		393,703		—		211,938		215,008
Junior subordinated debentures	89,602		87,901		—		87,901		—		15,464		11,436
Derivative liabilities	36,913		36,913		4,669		32,244		—		26,930		26,930

Recurring

Quantitative information about the significant unobservable inputs within Level 3

Schedule of quantitative information about the significant unobservable inputs within Level 3

	Fair Value				Significant Unobservable
(In thousands)	September 30, 2012		Valuation Techniques	Unobservable Inputs	Input Value
Assets
Trading Account Security	$	17,237	Discounted Cash Flow	Discount Rate	2.08	%
Interest Rate Lock Commitment	7,833		Historical Trend	Closing Ratio	88.55	%
			Pricing Model	Origination Costs	2,500
Total Assets	$	25,070

Non-recurring

Quantitative information about the significant unobservable inputs within Level 3

Schedule of quantitative information about the significant unobservable inputs within Level 3

	Fair Value				Range (Weighted
(in thousands)	Septemeber 30, 2012		Valuation Techniques	Unobservable Inputs	Average) (a)
Assets
Impaired loans	$	6,949	Fair value of collateral	Loss severity	12.36% to 32.1% (19.43%)
				Appraised value	$126.0 to $2,500.0 ($1,411.5)
Capitaized mortgage servicing rights	2,494		Discounted cash flow	Constant prepayment rate (CPR)	13.85% to 23.93% (17.25%)
				Discount rate	11.00% to 15.50% (11.21%)
Other real estate owned	1,399		Fair value of collateral	Appraised value	$590.0 ($288.8)
Total Assets	$	10,842

(a)    Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.