FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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 September 30, 2012
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Recurring Basis:
Securities available-for-sale:
Government agency and government-sponsored enterprise residential mortgage-backed securities	$	1,036,856	$	—	$	1,036,856	$	—
Covered private label CMOs		45,887		—		—		45,887
Municipal securities		247,280		—		247,280		—
Corporate securities		17,255		—		17,255		—
Other securities		9,933		8,159		1,774		—
	$	1,357,211	$	8,159	$	1,303,165	$	45,887

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)		862
Total unrealized gain in comprehensive income		5,047
Net settlements		(5,171	)
Balance, September 30, 2012	$	45,887

⁽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 September 30, 2012
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Non-Recurring Basis:
Non-covered impaired loans	$	105,569	$	—	$	5,247	$	100,322
Non-covered other real estate owned		10,162		—		1,527		8,635
Covered other real estate owned		13,781		—		6,412		7,369
SBA loan servicing asset		1,059		—		—		1,059
	$	130,571	$	—	$	13,186	$	117,385

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

	Three Months Ended September 30, 2012			Nine Months Ended September 30, 2012
	(In thousands)
Gain (Loss) on Assets Measured on a Non-Recurring Basis:
Non-covered impaired loans	$	(1,985	)	$	(3,861	)
Non-covered other real estate owned		(2,565	)		(2,565	)
Covered other real estate owned		(5,008	)		(10,831	)
SBA loan servicing asset		3			4
Total net loss	$	(9,555	)	$	(17,253	)

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

	September 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	$	89,370	$	89,370	$	89,370	$	—	$	—
Interest-earning deposits in financial institutions		71,036		71,036		71,036		—		—
Securities available-for-sale		1,357,211		1,357,211		8,159		1,303,165		45,887
Investment in FHLB stock		40,923		40,923		—		40,923		—
Loans and leases, net		3,549,145		3,609,672		—		5,247		3,604,425
SBA loan servicing asset		1,059		1,059		—		—		1,059
Financial Liabilities:
Deposits:
Demand, money market and savings deposits		3,925,007		3,925,007		—		3,925,007		—
Time deposits		862,341		868,038		—		868,038		—
Borrowings		17,996		18,024		—		18,024		—
Subordinated debentures		108,250		108,195		—		108,195		—

	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	0% - 30.9%		10.5	%
Monthly default rates	0% - 20.4%		3.9	%
Loss severity rates	0% - 67.8%		47.0	%
Discount rates	1.6% - 15.0%		5.9	%

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)	$	96,875	Discounted cash flow	Discount rates	4.00% - 8.75%		7.84	%
	$	1,510	Appraisals	Discount	0% - 100%		25	%
OREO	$	16,004	Appraisals	Discount, including 8% for selling costs	1% - 28%		8	%
SBA loan servicing asset	$	1,059	Discounted cash flow	Prepayment speeds	3.69% - 17.04%			(2)
				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.