Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Assets and Liabilities Measured at Fair Falue on a Recurring Basis

The following tables present assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010, and that were included in the Company’s Consolidated Statements of Condition at those dates:


	Fair Value Measurements at September 30, 2011 Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Netting Adjustments		Total Fair Value
Mortgage-Related Securities Available for Sale:
GSE certificates		$ --		$	88,699		$ --		$ --		$	88,699
GSE CMOs		--			16,774		--		--			16,774
Private label CMOs		--			25,925		--		--			25,925

Total mortgage-related securities		$ --		$	131,398		$ --		$ --		$	131,398

Other Securities Available for Sale:
GSE debentures		$ --		$	297,714		$ --		$ --		$	297,714
Corporate bonds		--			--		--		--			--
U. S. Treasury obligations		--			--		--		--			--
State, county, and municipal		--			1,374		--		--			1,374
Capital trust notes		--			16,991		13,634		--			30,625
Preferred stock		--			285		--		--			285
Common stock		37,669			--		--		--			37,669

Total other securities		$37,669		$	316,364		$13,634		$ --		$	367,667

Total securities available for sale		$37,669		$	447,762		$13,634		$ --		$	499,065

Other Assets:
Loans held for sale		$ --		$	1,005,266		$ --		$ --		$	1,005,266
Mortgage servicing rights		--			--		95,014		--			95,014
Derivative assets		9,457			770		29,146		--			39,373

Liabilities:
Derivative liabilities		$ 661		$	21,097		$ --		$ --		$	21,758


	Fair Value Measurements at December 31, 2010 Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Netting Adjustments		Total Fair Value
Mortgage-Related Securities Available for Sale:
GSE certificates		$ --		$	211,515		$ --		$--		$	211,515
GSE CMOs		--			222,303		--		--			222,303
Private label CMOs		--			51,362		--		--			51,362

Total mortgage-related securities		$ --		$	485,180		$ --		$--		$	485,180

Other Securities Available for Sale:
GSE debentures		$ --		$	620		$ --		$--		$	620
Corporate bonds		--			4,250		--		--			4,250
U. S. Treasury obligations		58,553			--		--		--			58,553
State, county, and municipal		--			1,334		--		--			1,334
Capital trust notes		--			16,134		25,870		--			42,004
Preferred stock		--			14,468		6,271		--			20,739
Common stock		40,276			--		--		--			40,276

Total other securities		$98,829		$	36,806		$32,141		$--		$	167,776

Total securities available for sale		$98,829		$	521,986		$32,141		$--		$	652,956

Other Assets:
Loans held for sale		$ --		$	1,203,844		$ --		$--		$	1,203,844
Mortgage servicing rights		--			--		106,186		--			106,186
Derivative assets		152			14,067		53		--			14,272

Liabilities:
Derivative liabilities		$ (210)		$	(3,908)		$ --		$--		$	(4,118)

Rollforward of Financial Instruments Classified in Level 3 of the Valuation Hierarchy

The following tables include a roll-forward of the balance sheet amounts for the three months ended September 30, 2011 and 2010 (including the change in fair value) for financial instruments classified in Level 3 of the valuation hierarchy:


(in thousands)	Fair Value January 1, 2011			Total Realized/Unrealized Gains/(Losses) Recorded in								Issuances			Transfers out of Level 3		Fair Value at Sept. 30, 2011		Change in Unrealized Gains and (Losses) Related to Instruments Held at September 30, 2011
(in thousands)	Fair Value January 1, 2011			(Loss) Income				Comprehensive (Loss) Income				Issuances			Transfers out of Level 3		Fair Value at Sept. 30, 2011

Available-for-sale capital securities and preferred stock		$	32,141		$	(6,160	)		$	(10,257	)		$	--		$(2,090)		$13,634		$(16,417)
Mortgage servicing rights			106,186			(61,691	)			--				50,519		--		95,014		(61,691)
Derivatives, net			53			29,093				--				--		--		29,146		29,093

(in thousands)	Fair Value January 1, 2010			Total Realized/Unrealized Gains/(Losses) Recorded in								Issuances			Transfers into Level 3		Fair Value at Sept. 30, 2010		Change in Unrealized Gains and (Losses) Related to Instruments Held at September 30, 2010
(in thousands)	Fair Value January 1, 2010			Income				Comprehensive (Loss) Income				Issuances			Transfers into Level 3		Fair Value at Sept. 30, 2010
Available-for-sale capital securities and preferred stock			$31,232		$	(13,668	)			$12,662			$	--		$--		$30,226		$ (1,006)
Mortgage servicing rights			8,617			(14,496	)			--				55,776		--		49,897		(14,496)
Derivatives, net			32			27,852				--				--		--		27,884		27,852

Assets Measured at Fair Value on a Non-Recurring Basis

The following tables present assets and liabilities that were measured at fair value on a non-recurring basis as of September 30, 2011 and December 31, 2010, and that were included in the Company’s Consolidated Statements of Condition at those dates:


	Fair Value Measurements at September 30, 2011 Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Certain impaired loans		$--		$ --		$80,356		$	80,356
Other assets ⁽¹⁾		--		19,493		--			19,493

		$--		$19,493		$80,356		$	99,849

(1) Represents the fair value of OREO that was measured at fair value subsequent to its initial classification as OREO.
	Fair Value Measurements at December 31, 2010 Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Loans held for sale		$--		$3,233		$ --		$	3,233
Certain impaired loans		--		--		237,975			237,975

		$--		$3,233		$237,975		$	241,208

Summary of Carrying Values and Estimated Fair Values of Financial Instruments

The following table summarizes the carrying values and estimated fair values of the Company’s financial instruments at September 30, 2011 and December 31, 2010:


	September 30, 2011						December 31, 2010
(in thousands)	Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
Financial Assets:
Cash and cash equivalents		$	1,596,680		$	1,596,680		$	1,927,542		$	1,927,542
Securities held to maturity			4,648,551			4,794,373			4,135,935			4,157,322
Securities available for sale			499,065			499,065			652,956			652,956
FHLB stock			442,590			442,590			446,014			446,014
Loans, net			29,850,504			30,412,123			29,041,595			29,454,199
Mortgage servicing rights			95,755			95,755			107,378			107,378
Derivatives			39,373			39,373			14,272			14,272
Financial Liabilities:
Deposits		$	22,752,647		$	22,801,686		$	21,809,051		$	21,846,984
Borrowed funds			13,415,077			15,048,226			13,536,116			14,801,131
Derivatives			21,758			21,758			4,118			4,118

- 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, 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, issuances, 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 (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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