FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 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 December 31, 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	$	900,061	$	—	$	900,061	$	—
Covered private label CMOs		37,904		—		—		37,904
Municipal securities		436,658		—		436,658		—
Corporate debt securities		82,707		—		82,707		—
Government-sponsored enterprise debt securities		9,872		—		9,872		—
Other securities		27,543		507		27,036		—
	$	1,494,745	$	507	$	1,456,334	$	37,904

	Fair Value Measurement as of December 31, 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	$	909,536	$	—	$	909,536	$	—
Covered private label CMOs		44,684		—		—		44,684
Municipal securities		348,041		—		348,041		—
Corporate debt securities		42,365		—		42,365		—
Other securities		10,759		8,985		1,774		—
	$	1,355,385	$	8,985	$	1,301,716	$	44,684

Fair value measurements

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

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Covered private label CMOs, beginning of year	$	44,684		$	45,149		$	50,437
Total realized in earnings(1)		1,938			340			2,097
Total unrealized gain (loss) in comprehensive income		(1,204	)		4,883			(846	)
Net settlements		(7,514	)		(5,688	)		(6,539	)
Covered private label CMOs, end of year	$	37,904		$	44,684		$	45,149

⁽¹⁾

Includes other-than-temporary impairment loss of $1.1 million for 2012.

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

	Fair Value Measurement as of December 31, 2013
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Non-Recurring Basis:
Non-PCI impaired loans	$	40,886	$	—	$	2,051	$	38,835
Non-covered other real estate owned		9,062		—		7,084		1,978
Covered other real estate owned		1,815		—		1,700		115
SBA loan servicing asset		807		—		—		807
	$	52,570	$	—	$	10,835	$	41,735

	Fair Value Measurement as of December 31, 2012
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Non-Recurring Basis:
Non-PCI impaired loans	$	102,207	$	—	$	4,975	$	97,232
Non-covered other real estate owned		7,945		—		—		7,945
Covered other real estate owned		4,893		—		2,599		2,294
SBA loan servicing asset		1,000		—		—		1,000
	$	116,045	$	—	$	7,574	$	108,471

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

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Gain (Loss) on Assets Measured on a Non-Recurring Basis:
Non-covered impaired loans	$	(1,206	)	$	(5,582	)	$	(22,796	)
Non-covered other real estate owned		(726	)		(2,824	)		(4,381	)
Covered other real estate owned		(319	)		(1,096	)		(9,275	)
SBA loan servicing asset		12			4			2
Total net loss	$	(2,239	)	$	(9,498	)	$	(36,450	)

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

	December 31, 2013
			Estimated Fair Value
	Carrying or Contract Amount
			Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	96,424	$	96,424	$	96,424	$	—	$	—
Interest-earning deposits in financial institutions		50,998		50,998		50,998		—		—
Securities available-for-sale		1,494,745		1,494,745		507		1,456,334		37,904
Investment in FHLB stock		27,939		27,939		—		27,939		—
Loans and leases, net		4,230,318		4,231,078		—		2,051		4,229,027
SBA loan servicing asset		807		807		—		—		807
Financial Liabilities:
Deposits
Demand, money market, interest checking, and savings deposits		4,616,616		4,616,616		—		4,616,616		—
Time deposits		664,371		665,148		—		665,148		—
Borrowings		113,726		113,726		106,600		7,126		—
Subordinated debentures		132,645		132,498		—		132,498		—

	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

Covered Private Label CMO's: Unobservable Inputs	Range of Inputs	Weighted Average Input
Voluntary annual prepayment speeds	0% - 34.4%		5.9	%
Annual default rates	0% - 42.5%		3.0	%
Loss severity rates	0% - 64.6%		29.9	%
Discount rates	0% - 11.1%		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)	$	37,672	Discounted cash flow	Discount rates	4.06% - 8.81%		6.29	%
OREO	$	2,093	Appraisals	Discount, including 8% for selling costs	12% - 30%		13	%
SBA loan servicing asset	$	807	Discounted cash flow	Prepayment speeds	3.40% - 16.34%			(2)
				Discount rates	9.63% - 13.42%			(2)

⁽¹⁾

Excludes $1.2 million of impaired loans with balances of $250,000 or less.

⁽²⁾

Not readily available.