FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Quantitative information about the significant unobservable inputs within Level 3

Summary of financial 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

	March 31, 2015
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value

Trading security	$	—	$	—	$	14,970	$	14,970
Available-for-sale securities:
Municipal bonds and obligations	—		155,450		—		155,450
Governmentguaranteed residential mortgage-backed securities	—		65,039		—		65,039
Government-sponsored residential mortgage-backed securities	—		762,421		—		762,421
Corporate bonds	—		55,357		—		55,357
Trust preferred securities	—		13,427		—		13,427
Other bonds and obligations	—		3,196		—		3,196
Marketable equity securities	43,690		357		719		44,766
Loans held for sale	—		29,305		—		29,305
Derivative assets	—		15,444		977		16,421
Derivative liabilities	295		25,504		93		25,892

	December 31, 2014
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value

Trading security	$	—	$	—	$	14,909	$	14,909
Available-for-sale securities:
Municipal bonds and obligations	—		133,699		—		133,699
Government guaranteed residential mortgage-backed securities	—		69,468		—		69,468
Government-sponsored residential mortgage-backed securities	—		760,184		—		760,184
Corporate bonds	—		54,151		—		54,151
Trust preferred securities	—		14,667		1,548		16,215
Other bonds and obligations	—		3,159		—		3,159
Marketable equity securities	53,806		358		778		54,942
Loans Held for Sale	—		19,493		—		19,493
Derivative assets	—		12,328		625		12,953
Derivative liabilities	417		18,259		93		18,769

Schedule of loans held for sale

					Aggregate Fair Value
March 31, 2015	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans Held for Sale	$	29,305	$	28,483	$	822

					Aggregate Fair Value
December 31, 2014	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans Held for Sale	$	19,493	$	18,885	$	608

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

	Assets (Liabilities)
				Securities			Interest Rate
	Trading			Available			Lock			Forward
(In thousands)	Security			for Sale			Commitments			Commitments

Three Months Ended March 31, 2015
Balance as of December 31, 2014	$	14,909		$	2,326		$	625		$	(93	)
Sale of AFS Security	—			(1,327		)	—			—
Unrealized (loss) gain, net recognized in other non-interest income	203			—			1,730			—
Unrealized gain included in accumulated other comprehensive loss	—			(280		)	—			—
Paydown of trading security	(142		)	—			—			—
Transfers to held for sale loans	—			—			(1,378		)	—
Balance as of March 31, 2015	$	14,970		$	719		$	977		$	(93	)

Unrealized gains (losses) relating to instruments still held at March 31, 2015	$	2,558		$	(51	)	$	977		$	(93	)

	Assets (Liabilities)
				Securities			Interest Rate
	Trading			Available			Lock			Forward
(In thousands)	Security			for Sale			Commitments			Commitments

Three Months Ended March 31, 2014
Balance as of December 31, 2013	$	14,840		$	1,964		$	258		$	19
Purchase of Marketable Equity Security	—			—			—			—
Unrealized (loss) gain, net recognized in other non-interest income	218			—			719			(115		)
Unrealized gain included in accumulated other comprehensive loss	—			82			—			—
Paydown of trading account security	(135		)	—			—			—
Transfers to held for sale loans	—			—			(600		)	—
Balance as of March 31, 2014	$	14,923		$	2,046		$	377		$	(96	)

Unrealized gains (losses) relating to instruments still held at March 31, 2014	$	1,962		$	(1,288	)	$	377		$	(96	)

Summary of applicable non-recurring fair value measurements

	Fair Value
(in thousands)	March 31, 2015		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (a)
Assets
Impaired loans	$	6,111	Fair value of collateral	Loss severity	3.78% to 53.08% (23.5%)
				Appraised value	$139.5 to $1,600.0 ($981.7)

Capitalized mortgage servicing rights	3,871		Discounted cash flow	Constant prepayment rate (CPR)	8.2% to 19.85% (11.05%)
				Discount rate	10.00% to 13.00% (10.42%)

Other real estate owned	1,444		Fair value of collateral	Appraised value	$57 to $700.0 ($470.7)

Total	$	11,426

(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.

	Fair Value
(in thousands)	December 31, 2014		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (a)
Assets
Impaired loans	$	5,820	Fair value of collateral	Loss severity	0.31% to 38.7% (12.65%)
				Appraised value	$5 to $1,600.0 ($912.7)

Capitalized mortgage servicing rights	3,757		Discounted cash flow	Constant prepayment rate (CPR)	7.83% to 19.00% (9.92%)
				Discount rate	10.00% to 13.00% (10.43%)

Other real estate owned	2,049		Fair value of collateral	Appraised value	$57 to $700.0 ($462.6)

Total	$	11,626

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

	March 31, 2015
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3

Financial Assets

Cash and cash equivalents	$	62,214	$	62,214	$	62,214	$	—	$	—
Trading security	14,970		14,970		—		—		14,970
Securities available for sale	1,099,656		1,099,656		43,690		1,055,247		719
Securities held to maturity	42,818		44,744		—		—		44,744
FHLB bank stock and restricted securities	58,734		58,734		—		58,734		—
Net loans	4,692,377		4,736,177		—		—		4,736,177
Loans held for sale	29,305		29,305		—		29,305		—
Accrued interest receivable	17,786		17,786		—		17,786		—
Cash surrender value of bank-owned life insurance policies	105,302		105,302		—		105,302		—
Derivative assets	16,421		16,421		—		15,444		977
Assets held for sale	1,266		1,266		—		1,266		—


Financial Liabilities

Total deposits	$	4,719,683	$	4,720,914	—		$	4,720,914	$	—
Short-term debt	894,500		894,675		—		894,675		—
Long-term Federal Home Loan Bank advances	61,618		63,273		—		63,273		—
Subordinated borrowings	89,765		94,062		—		94,062		—
Derivative liabilities	25,892		25,892		295		25,504		93

	December 31, 2014
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3

Financial Assets

Cash and cash equivalents	$	71,754	$	71,754	$	71,754	$	—	$	—
Trading security	14,909		14,909		—		—		14,909
Securities available for sale	1,091,818		1,091,818		5,806		1,035,686		2,326
Securities held to maturity	43,347		44,997		—		—		44,997
FHLB bank stock and restricted securities	55,720		55,720		—		55,720		—
Net loans	4,644,938		4,695,256		—		—		4,695,256
Loans held for sale	19,493		19,493		—		19,493		—
Accrued interest receivable	17,274		17,274		—		17,274		—
Cash surrender value of bank-owned life insurance policies	104,588		104,588		—		104,588		—
Derivative assets	12,953		12,953		—		12,328		625
Assets held for sale	1,280		1,280		—		1,280		—

Financial Liabilities

Total deposits	$	4,654,679	$	4,655,234	$	—	$	4,655,234	$	—
Short-term debt	900,900		900,983		—		900,983		—
Long-term Federal Home Loan Bank advances	61,676		63,283		—		63,283		—
Subordinated borrowings	89,747		93,441		—		93,441		—
Derivative liabilities	18,769		18,769		417		18,259		93

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 Input
(In thousands)	March 31, 2015			Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading Security	$	14,970		Discounted Cash Flow	Discount Rate	2.34		%

AFS Securities	719			Pricing Model	Median Peer Price/Tangible Book Value Percentage Multiple	93.35		%

Forward Commitments	(93		)	Historical Trend	Closing Ratio	89.54		%
				Pricing Model	Origination Costs, per loan	$	2,500

Interest Rate Lock Commitment	977			Historical Trend	Closing Ratio	89.54		%
				Pricing Model	Origination Costs, per loan	$	2,500

Total	$	16,573

	Fair Value					Significant Unobservable Input
(In thousands)	December 31, 2014			Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading Security	$	14,909		Discounted Cash Flow	Discount Rate	2.60		%

AFS Securities	2,326			Discounted Cash Flow	Discount Rate	13.74		%
					Credit Spread	11.06		%

Forward Commitments	(93		)	Historical Trend	Closing Ratio	91.07		%
				Pricing Model	Origination Costs, per loan	$	2,500

Interest Rate Lock Commitment	625			Historical Trend	Closing Ratio	91.07		%
				Pricing Model	Origination Costs, per loan	$	2,500
Total	$	17,767

Non-recurring

Quantitative information about the significant unobservable inputs within Level 3

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

	March 31, 2015		December 31, 2014		Three months ended March 31, 2015
	Level 3		Level 3		Total
(In thousands)	Inputs		Inputs		Gains (Losses)
Assets
Impaired loans	$	6,111	$	5,820	$	292
Capitalized mortgage servicing rights	3,871		3,757		—
Other real estate owned	1,444		2,049		(155		)

Total	$	11,426	$	11,626	$	137

- 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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- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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