FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2013

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, 2013
	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	$	887,737	$	—	$	887,737	$	—
Covered private label CMOs		40,917		—		—		40,917
Municipal securities		424,174		—		424,174		—
Corporate securities		83,132		—		83,132		—
Other securities		37,618		516		37,102		—
	$	1,473,578	$	516	$	1,432,145	$	40,917

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, 2012	$	44,684
Total realized in earnings		1,001
Decrease in unrealized loss in comprehensive income		(648	)
Net settlements		(4,120	)
Balance, June 30, 2013	$	40,917

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

	Fair Value Measurement as of June 30, 2013
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Non-Recurring Basis:
Non-PCI impaired loans	$	80,204	$	—	$	5,933	$	74,271
Covered other real estate owned		2,261		—		743		1,518
SBA loan servicing asset		903		—		—		903
	$	83,368	$	—	$	6,676	$	76,692

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

	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
	(In thousands)
Gain (Loss) on Assets Measured on a Non-Recurring Basis:
Non-PCI impaired loans	$	(2,181	)	$	(2,904	)
Covered other real estate owned		(292	)		(651	)
SBA loan servicing asset		—			12
Total net loss	$	(2,473	)	$	(3,543	)

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

	June 30, 2013
			Estimated Fair Value
	Carrying or Contract Amount
			Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	106,237	$	106,237	$	106,237	$	—	$	—
Interest-earning deposits in financial institutions		112,590		112,590		112,590		—		—
Securities available-for-sale		1,473,578		1,473,578		516		1,432,145		40,917
Investment in FHLB stock		39,129		39,129		—		39,129		—
Loans and leases, net		4,329,043		4,355,996		—		5,933		4,350,063
SBA loan servicing asset		903		903		—		—		903
Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits		4,700,887		4,700,887		—		4,700,887		—
Time deposits		822,113		824,353		—		824,353		—
Borrowings		9,696		9,697		—		9,697		—
Subordinated debentures		132,358		132,223		—		132,223		—

	December 31, 2012
			Estimated Fair Value
	Carrying or Contract Amount
			Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	89,011	$	89,011	$	89,011	$	—	$	—
Interest-earning deposits in financial institutions		75,393		75,393		75,393		—		—
Securities available-for-sale		1,355,385		1,355,385		8,985		1,301,716		44,684
Investment in FHLB stock		37,126		37,126		—		37,126		—
Loans and leases, net		3,498,329		3,551,674		—		4,975		3,546,699
SBA loan servicing asset		1,000		1,000		—		—		1,000
Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits		3,888,794		3,888,794		—		3,888,794		—
Time deposits		820,327		823,912		—		823,912		—
Borrowings		12,591		12,611		—		12,611		—
Subordinated debentures		108,250		108,186		—		108,186		—

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 annual prepayment speeds	0% - 30.5%		9.4	%
Annual default rates	0% - 29.5%		3.2	%
Loss severity rates	0% - 66.3%		34.6	%
Discount rates	0% - 11.9%		5.2	%

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)	$	70,401	Discounted	Discount rates	4.06% -  8.81%		6.60	%
			cash flow
	$	2,353	Appraisals	No discounts
OREO	$	1,518	Appraisals	Discount,	11% - 21%		17	%
				including 8%
				for selling costs
SBA loan servicing asset	$	903	Discounted	Prepayment	3.40% - 16.34%			(2)
			cash flow	speeds
				Discount rates	9.66% - 12.67%			(2)

(1)

Excludes $1.6 million of impaired loans with balances of $250,000 or less.

(2)

Not readily available.