FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2014

FAIR VALUE MEASUREMENTS

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

	Fair Value Measurement as of March 31, 2014
	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	$	844,306	$	—	$	844,306	$	—
Covered private label CMOs		37,594		—		—		37,594
Municipal securities		447,933		—		447,933		—
Corporate securities		84,211		—		84,211		—
Government-sponsored enterprise debt securities		36,054		—		36,054		—
Other securities		27,375		509		26,866		—
	$	1,477,473	$	509	$	1,439,370	$	37,594

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, 2013	$	37,904
Total realized in earnings		296
Total unrealized gain in comprehensive income		544
Net settlements		(1,150	)
Balance, March 31, 2014	$	37,594

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

	Fair Value Measurement as of March 31, 2014								Gain (Loss) Three Months Ended March 31, 2014
	Total		Level 1		Level 2		Level 3
	(In thousands)
Measured on a Non-Recurring Basis:
Non-covered impaired loans	$	31,926	$	—	$	5,284	$	26,642	$	(1,420	)
Covered other real estate owned		754		—		754		—		(87	)
SBA loan servicing asset		764		—		—		764		—
	$	33,444	$	—	$	6,038	$	27,406	$	(1,507	)

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

	March 31, 2014
			Estimated Fair Value
	Carrying or Contract Amount
			Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	113,508	$	113,508	$	113,508	$	—	$	—
Interest-earning deposits in financial institutions		228,579		228,579		228,579		—		—
Securities available-for-sale		1,477,473		1,477,473		509		1,439,370		37,594
Investment in FHLB stock		25,000		25,000		—		25,000		—
Loans and leases, net		4,079,887		4,089,647		—		5,284		4,084,363
SBA loan servicing asset		764		764		—		—		764
Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits		4,719,833		4,719,833		—		4,719,833		—
Time deposits		649,575		649,824		—		649,824		—
Borrowings		5,748		5,748		—		5,748		—
Subordinated debentures		132,790		132,649		—		132,649		—

	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		—

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% - 34.4%		6.0	%
Annual default rates	0% - 39.1%		3.4	%
Loss severity rates	0% - 64.4%		29.9	%
Discount rates	0% - 11.5%		5.3	%

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)	$	25,788	Discounted	Discount rates	0% - 8.66%		6.47	%
			cash flow
SBA loan servicing asset	$	764	Discounted	Prepayment	3.40% - 16.34%			(2)
			cash flow	speeds
				Discount rates	9.63% - 13.42%			(2)

(1)

Excludes $854,000 of impaired loans with balances of $250,000 or less.

(2)

Not readily available.