FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 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

	2012
(In thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Trading account security	$	—	$	—	$	16,893	$	16,893
Available-for-sale securities:
Municipal bonds and obligations	—		84,757		—		84,757
Government guaranteed residential mortgage-backed securities	—		43,091		—		43,091
Government-sponsored residential mortgage-backed securities	—		278,593		—		278,593
Corporate bonds	—		10,007		—		10,007
Trust preferred securities	—		20,072		885		20,957
Other bonds and obligations	—		3,472		—		3,472
Marketable equity securities	25,291		—		—		25,291
Loans Held for Sale	—		85,368		—		85,368
Derivative assets (1)	—		14,746		6,258		21,004
Derivative liabilities (2)	282		29,818		1,055		31,155

(1) Total fair value excludes the $1.3 million of unrealized losses on forward commitments presented under other assets on the consolidated balance sheet.

(2) Total fair value includes the $1.3 million of unrealized losses on forward commitments presented under other assets on the consolidated balance sheet.

	2011
(In thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total 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

December 31, 2012 (In thousands)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Aggregate Unpaid Principal
Loans Held for Sale	$	85,368	$	82,560	$	2,808

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

	Assets									Liabilities
(In thousands)	Trading Account Security			Securities Available for Sale			Interest Rate Lock Commitments			Forward Commitments
Balance as of December 31, 2010	$	16,155		$	1,695		$	—		$	—
Unrealized gain recognized in other non-interest income	1,704			—			—			—
Unrealized gain included in accumulated other comprehensive loss	—			326			—			—
Amortization of trading account security	(464		)	—			—			—
Transfer out of Level 3	—			(1,477		)	—			—
Balance as of December 31, 2011	$	17,395		$	544		$	—		$	—
Greenpark Acquisition	—			—			2,126			1,055
Unrealized (loss) gain, net recognized in other non-interest income	(16		)	—			20,687			—
Unrealized gain included in accumulated other comprehensive loss	—			341			—			—
Paydown of trading account security	(486		)	—			—			—
Transfers to held for sale loans	—			—			(16,555		)	—
Balance as of December 31, 2012	$	16,893		$	885		$	6,258		$	1,055
Unrealized gains (losses) relating to instruments still held at December 31, 2012	$	3,284		$	(1,717	)	$	6,258		$	1,055
Unrealized gains (losses) relating to instruments still held at December 31, 2011	$	3,299		$	(2,055	)	$	—		$	—

Summary of applicable non-recurring fair value measurements

	December 31, 2012		Year ended December 31, 2012
(In thousands)	Level 3 Inputs		Total Losses
Assets
Impaired loans	$	6,104	$	6,216
Other real estate owned	1,929		46
Capitalized mortgage servicing rights	3,198		596
Total Assets	$	11,231	$	6,858

	December 31, 2011		Year ended December 31, 2011
(In thousands)	Level 3 Inputs		Total Losses
Assets
Impaired loans	$	11,155	$	5,348
Other real estate owned	1,900		1,950
Capitalized mortgage servicing rights	3,067		—
Total Assets	$	16,122	$	7,298

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

	December 31, 2012										December 31, 2011
(In thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3		Carrying Amount		Fair Value
Financial Assets
Cash and cash equivalents	$	63,382	$	63,382	$	63,382	$	—	$	—	$	75,359	$	75,359
Trading security	16,893		16,893		—		—		16,893		17,395		17,395
Securities available for sale	466,169		466,169		25,291		439,993		885		419,756		419,756
Securities held to maturity	51,024		51,024		—		—		51,024		58,912		60,395
Restricted equity securities	39,785		39,785		—		39,785		—		37,118		37,118
Net loans	3,955,446		4,004,259		—		—		4,004,259		2,924,126		2,990,173
Loans held for sale	85,368		85,368		—		85,368		—		1,455		1,455
Accrued interest receivable	14,731		14,731		—		14,731		—		11,350		11,350
Cash surrender value of bank-owned life insurance policies	88,198		88,198		—		88,198		—		75,009		75,009
Derivative assets (1)	21,004		21,004		—		14,746		6,258		13,926		13,926
Financial Liabilities
Total deposits	$	4,104,402	$	4,116,999	$	—	$	4,116,999	$	—	$	3,101,175	$	3,104,204
Short-term debt	163,150		163,150		—		163,150		—		10,000		10,000
Long-term Federal Home Loan Bank advances	195,321		199,420		—		199,420		—		211,938		215,008
Subordinated notes	89,617		73,967		—		73,967		—		15,464		11,436
Derivative liabilities (2)	31,155		31,155		282		29,818		1,055		26,930		26,930

(1) Total fair value excludes the $1.3 million of unrealized losses on forward commitments presented under other assets on the consolidated balance sheet.

(2) Total fair value includes the $1.3 million of unrealized losses on forward commitments presented under other assets on the consolidated balance sheet.

Recurring

Quantitative information about the significant unobservable inputs within Level 3

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

(In thousands)	Fair Value December 31, 2012		Valuation Techniques	Unobservable Inputs	Significant Unobservable Input Value
Assets
Trading Account Security	$	16,893	Discounted Cash Flow	Discount Rate	2.08	%
Interest Rate Lock Commitment	6,258		Historical Trend	Closing Ratio	93.04	%
			Pricing Model	Origination Costs	2,500
Total Assets	$	23,151

Non-recurring

Quantitative information about the significant unobservable inputs within Level 3

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

(in thousands)	Fair Value Decemeber 31, 2012		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (a)
Assets
Impaired loans	$	6,104	Fair value of collateral	Loss severity	5.24% to 100.0% (42.79%)
				Appraised value	$15.7 to $1,584.0 ($863.8)
Capitaized mortgage servicing rights	3,198		Discounted cash flow	Constant prepayment rate (CPR)	13.25% to 26.02% (18.41%)
				Discount rate	11.00% to 15.50% (11.14%)
Other real estate owned	1,929		Fair value of collateral	Appraised value	$0 to $1,000.0 ($457.1)
Total Assets	$	11,231

(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.