FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2012

FAIR VALUE MEASUREMENTS

Schedule of information on the assets measured and recorded at fair value on a recurring basis

	Fair Value Measurement as of June 30, 2012
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Recurring Basis:
Securities available-for-sale:
Government and government-sponsored entity residential mortgage-backed securities	$	1,084,595	$	—	$	1,084,595	$	—
Covered private label CMOs		44,053		—		—		44,053
Municipal securities		162,192		—		162,192		—
Corporate securities		51,019		—		51,019		—
Other securities		9,842		8,068		1,774		—
	$	1,351,701	$	8,068	$	1,299,580	$	44,053

Fair value measurements

Summary of activity for assets measured at fair value on a recurring basis that are categorized as Level 3

	Covered Private Label CMOs (Level 3)
	(In thousands)
Balance, December 31, 2011	$	45,149
Total realized in earnings(1)		214
Total unrealized gain in comprehensive income		2,385
Net settlements		(3,695	)
Balance, June 30, 2012	$	44,053

⁽¹⁾

Includes other-than-temporary impairment loss of $1.1 million.

Schedule of assets measured at fair value on a non-recurring basis

	Fair Value Measurement as of June 30, 2012
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Non-Recurring Basis:
Non-covered impaired loans	$	100,918	$	—	$	15,263	$	85,655
Non-covered other real estate owned		552		—		552		—
Covered other real estate owned		17,194		—		15,028		2,166
SBA loan servicing asset		1,118		—		—		1,118
	$	119,782	$	—	$	30,843	$	88,939

Schedule of gains and (losses) on assets measured at fair value on a non-recurring basis

	Three Months Ended June 30, 2012			Six Months Ended June 30, 2012
	(In thousands)
Gain (Loss) on Assets Measured on a Non-Recurring Basis:
Non-covered impaired loans	$	631		$	(1,617	)
Non-covered other real estate owned		(37	)		(37	)
Covered other real estate owned		(2,461	)		(3,442	)
SBA loan servicing asset		—			1
Total net loss	$	(1,867	)	$	(5,095	)

Summary of carrying values and estimated fair values of certain financial instruments

	June 30, 2012
			Estimated Fair Value
	Carrying or Contract Amount
			Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	97,499	$	97,499	$	97,499	$	—	$	—
Interest-earning deposits in financial institutions		25,970		25,970		25,970		—		—
Securities available-for-sale		1,351,701		1,351,701		8,068		1,299,580		44,053
Investment in FHLB stock		41,736		41,736		41,736		—		—
Loans and leases, net		3,381,179		3,419,289		—		15,263		3,404,026
SBA loan servicing asset		1,118		1,118		—		—		1,118
Financial Liabilities:
Deposits:
Demand, money market and savings deposits		3,726,307		3,726,307		3,726,307		—		—
Time deposits		865,022		871,663		—		871,663		—
Borrowings		15,546		15,560		—		15,560		—
Subordinated debentures		108,250		108,193		—		108,193		—

	December 31, 2011
			Estimated Fair Value
	Carrying or Contract Amount
			Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	92,342	$	92,342	$	92,342	$	—	$	—
Interest-earning deposits in financial institutions		203,275		203,275		203,275		—		—
Securities available-for-sale		1,326,358		1,326,358		2,976		1,278,233		45,149
Investment in FHLB stock		46,106		46,106		46,106		—		—
Loans and leases, net		3,425,423		3,469,754		—		13,803		3,455,951
SBA loan servicing asset		1,613		1,613		—		—		1,613
Financial Liabilities:
Deposits:
Demand, money market and savings deposits		3,609,559		3,609,559		3,609,559		—		—
Time deposits		967,894		977,589		—		977,589		—
Borrowings		225,000		249,000		—		249,000		—
Subordinated debentures		129,271		135,532		—		135,532		—

Recurring basis

Fair value measurements

Schedule of information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values

Unobservable Inputs	Range of Inputs	Weighted Average Input
Voluntary prepayment speeds	1.5% - 31.6%		8.6	%
Monthly default rates	0.1% - 18.4%		3.5	%
Loss severity rates	9.2% - 81.6%		46.3	%
Discount rates	2.7% - 13.3%		7.0	%

Nonrecurring basis

Fair value measurements

Schedule of information about quantitative unobservable inputs, assumptions and valuation methodology used to evaluate the fair values

Asset	Fair Value (in 000's)		Valuation Methodology	Unobservable Inputs	Range	Weighted Average
Impaired loans(1)	$	74,060	Discounted	Discount rates	3.08% - 8.75%		6.59	%
			cash flow
	$	9,721	Appraisals	Discount	2.00% - 8.00%		7.00	%
OREO	$	2,166	Appraisals	Discount,	11% - 13%		11	%
				including 8%
				for selling costs
SBA loan servicing asset	$	1,118	Discounted	Prepayment	3.69% - 17.04%			(2)
			cash flow	speeds
				Discount rates	9.68% - 12.58%			(2)

⁽¹⁾

Excludes $1.9 million of impaired loans with balances of $250,000 or less.

⁽²⁾

Not readily available.