FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2013

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

	June 30, 2013
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading account security	$	—	$	—	$	15,566	$	15,566
Available-for-sale securities:
Municipal bonds and obligations	—		83,031		—		83,031
Governmentguaranteed residential mortgage-backed securities	—		38,652		—		38,652
Government-sponsored residential mortgage-backed securities	—		354,729		—		354,729
Corporate bonds	—		39,235		—		39,235
Trust preferred securities	—		15,750		1,007		16,757
Other bonds and obligations	—		3,226		—		3,226
Marketable equity securities	31,260		567		811		32,638
Loans held for sale	—		64,101		—		64,101
Derivative assets (1)	3,510		8,651		1,403		13,564
Derivative liabilities (2)	—		14,594		1,507		16,101

	December 31, 2012
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		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 $1.5 million and $1.3 million of unrealized losses as of June 30, 2013 and December 31, 2012, respectively, on interest rate lock and forward commitments presented under other assets on the  consolidated balance sheet.

(2) Total fair value includes $1.5 million and $1.3 million of unrealized losses as of June 30, 2013 and December 31, 2012, respectively, on interest rate lock and forward commitments presented under other assets on the  consolidated balance sheet.

Schedule of loans held for sale

					Aggregate Fair Value
June 30, 2013	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans Held for Sale	$	64,101	$	65,200	$	(1,099	)

					Aggregate Fair Value
December 31, 2012	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		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)
	Trading			Securities			Interest Rate
	Account			Available			Lock			Forward
(In thousands)	Security			for Sale			Commitments			Commitments
Three Months Ended June 30, 2013
Balance as of March 31, 2013	$	16,485		$	1,668		$	2,758		$	(517	)
Purchase of Marketable Equity Security	—			—			—			—
Unrealized (loss) gain, net recognized in other non-interest income	(793		)	—			(699		)	1,902
Unrealized gain included in accumulated other comprehensive loss	—			151			—			—
Paydown of trading account security	(128		)	—			—			—
Transfers to held for sale loans	—			—			(3,566		)	—
Balance as of June 30, 2013	$	15,564		$	1,819		$	(1,507	)	$	1,403
Six Months Ended June 30, 2013
Balance as of December 31, 2012	$	16,893		$	885		$	6,258		$	(1,055	)
Purchase of Marketable Equity Security	—			770			—			—
Unrealized (loss) gain, net recognized in other non-interest income	(1,073		)	—			3,300			2,458
Unrealized gain included in accumulated other comprehensive loss	—			164			—			—
Paydown of trading account security	(256		)	—			—			—
Transfers to held for sale loans	—			—			(11,065		)	—
Balance as of June 30, 2013	$	15,564		$	1,819		$	(1,507	)	$	1,403
Unrealized gains (losses) relating to instruments still held at June 30, 2013	$	2,211		$	(1,554	)	$	(1,507	)	$	1,403

	Assets (Liabilities)
	Trading			Securities			Interest Rate
	Account			Available			Lock			Forward
(In thousands)	Security			for Sale			Commitments			Commitments
Three Months Ended June 30, 2012
Balance as of March 31, 2012	$	16,847		$	544		$	—		$	—
Greenpark Acquisition	—			—			2,126			(1,446		)
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		$	(1,446	)
Six Months Ended June 30, 2012
Balance as of December 31, 2011	$	17,395		$	544		$	—		$	—
Greenpark Acquisition	—			—			2,126			(1,446		)
Unrealized (loss) gain recognized in other non-interest income	210			—			4,337			—
Unrealized loss included in accumulated other comprehensive loss	—			69			—			—
Paydown of trading account security	(240		)	—			—			—
Transfers to held for sale loans	—			—			(2,435		)	—
Balance as of June 30, 2012	$	17,365		$	613		$	4,028		$	(1,446	)
Unrealized gains (losses) relating to instruments still held at June 30, 2012	$	3,509		$	(1,988	)	$	4,028		$	(1,446	)

Summary of applicable non-recurring fair value measurements

	June 30, 2013		December 31, 2012		Six months ended June 30, 2013
	Level 3		Level 3		Total
(In thousands)	Inputs		Inputs		Gains (Losses)
Assets
Impaired loans	$	6,112	$	6,104	$	(8	)
Capitalized mortgage servicing rights	4,426		3,198		596
Other real estate owned	2,713		1,929		67
Total	$	13,251	$	11,231	$	655

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

	June 30, 2013
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	56,623	$	56,623	$	56,623	$	—	$	—
Trading security	15,566		15,566		—		—		15,566
Securities available for sale	568,268		568,268		31,260		535,190		1,818
Securities held to maturity	49,604		50,056		—		—		50,056
Restricted equity securities	37,667		37,667		—		37,667		—
Net loans	3,837,427		3,883,256		—		—		3,883,256
Loans held for sale	64,101		64,101		—		64,101		—
Accrued interest receivable	14,741		14,741		—		14,741		—
Cash surrender value of bank-owned life insurance policies	89,592		89,592		—		89,592		—
Derivative assets (1)	13,564		13,564		3,510		8,651		1,403
Financial Liabilities
Total deposits	$	3,815,223	$	3,818,846	$	—	$	3,818,846	$	—
Short-term debt	415,720		415,753		—		415,753		—
Long-term Federal Home Loan Bank advances	175,106		177,691		—		177,691		—
Subordinated notes	89,647		75,750		—		75,750		—
Derivative liabilities (2)	16,101		16,101		—		14,594		1,507

	December 31, 2012
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	63,382	$	63,382	$	63,382	$	—	$	—
Trading security	16,893		16,893		—		—		16,893
Securities available for sale	466,169		466,169		25,291		439,993		885
Securities held to maturity	51,024		51,024		—		—		51,024
Restricted equity securities	39,785		39,785		—		39,785		—
Net loans	3,955,446		4,004,259		—		—		4,044,259
Loans held for sale	85,368		85,368		—		85,368		—
Accrued interest receivable	14,731		14,731		—		14,731		—
Cash surrender value of bank-owned life insurance policies	88,198		88,198		—		88,198		—
Derivative assets (1)	21,004		21,004		—		14,746		6,258
Financial Liabilities
Total deposits	$	4,104,402	$	4,116,999	$	—	$	4,116,999	$	—
Short-term debt	163,150		163,150		—		163,150		—
Long-term Federal Home Loan Bank advances	195,321		199,420		—		199,420		—
Subordinated notes	89,617		73,967		—		73,967		—
Derivative liabilities (2)	31,155		31,155		282		29,818		1,055

(1) Total fair value excludes $1.5 million and 1.3 million of unrealized losses as of June 30, 2013 and December 31, 2012, respectively, on interest rate lock and  forward commitments presented under other assets on the consolidated balance sheet.

(2) Total fair value includes $1.5 million and 1.3 million of unrealized losses as of June 30, 2013 and December 31, 2012, respectively, on interest rate lock and  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

	Fair Value					Significant Unobservable
(In thousands)	June 30, 2013			Valuation Techniques	Unobservable Inputs	Input Value
Assets (Liabilities)
Trading Account Security	$	15,566		Discounted Cash Flow	Discount Rate	3.06		%
Forward Commitments	1,403			Historical Trend	Closing Ratio	70.00		%
				Pricing Model	Origination Costs, per loan	1,530
Interest Rate Lock Commitment	(1,507		)	Historical Trend	Closing Ratio	96.63		%
				Pricing Model	Origination Costs, per loan	$	2,500
Total	$	18,972

	Fair Value					Significant Unobservable
(In thousands)	December 31, 2012			Valuation Techniques	Unobservable Inputs	Input Value
Assets (Liabilities)
Trading Account Security	$	16,893		Discounted Cash Flow	Discount Rate	2.08		%
Forward Commitments	(1,055		)	Historical Trend	Closing Ratio	70.00		%
				Pricing Model	Origination Costs, per loan	1,530
Interest Rate Lock Commitment	6,258			Historical Trend	Closing Ratio	93.04		%
				Pricing Model	Origination Costs, per loan	$	2,500
Total	$	22,096

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)	June 30, 2013		Valuation Techniques	Unobservable Inputs	Average) (a)
Assets
Impaired loans	$	6,112	Fair value of collateral	Loss severity	3.69% to 100.0% (26.38%)
				Appraised value	$0 to $1,950.0 $(899.5)
Capitaized mortgage servicing rights	4,426		Discounted cash flow	Constant prepayment rate (CPR)	8.63% to 19.32% (12.64%)
				Discount rate	11.00% to 15.50% (11.35%)
Other real estate owned	2,713		Fair value of collateral	Appraised value	$0 to $1,000.0 $(549.9)
Total	$	13,251

	Fair Value				Range (Weighted
(in thousands)	Decemeber 31, 2012		Valuation Techniques	Unobservable Inputs	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	$	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.