FAIR VALUE ACCOUNTING AND MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets and liabilities as of June 30, 2015 and December 31, 2014 (in thousands):



	June 30, 2015
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	11,756	$	—	$	11,756
Municipal bonds	—		59,054		—		59,054
Corporate bonds	—		5,035		—		5,035
Mortgage-backed or related securities	—		280,779		—		280,779
Asset-backed securities	—		31,252		—		31,252
	—		387,876		—		387,876
Securities—trading
U.S. Government and agency	—		1,492		—		1,492
Municipal bonds	—		1,426		—		1,426
TPS	—		—		12,571		12,571
Mortgage-backed or related securities	—		16,855		—		16,855
Equity securities and other	—		60		—		60
	—		19,833		12,571		32,404
Derivatives
Interest rate lock commitments	—		754		—		754
Interest rate swaps	—		6,627		—		6,627
	$	—	$	415,090	$	12,571	$	427,661

Liabilities:
Advances from FHLB at fair value	$	—	$	236	$	—	$	236
Junior subordinated debentures, net of unamortized deferred issuance costs at fair value	—		—		84,694		84,694
Derivatives
Interest rate sales forward commitments, net	—		148		—		148
Interest rate swaps	—		6,627		—		6,627
	$	—	$	7,011	$	84,694	$	91,705



	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	29,770	$	—	$	29,770
Municipal bonds	—		50,028		—		50,028
Corporate bonds	—		5,018		—		5,018
Mortgage-backed or related securities	—		300,810		—		300,810
Asset-backed securities	—		25,395		—		25,395
	—		411,021		—		411,021
Securities—trading
U.S. Government and agency	—		1,505		—		1,505
Municipal bonds	—		1,440		—		1,440
TPS and TRUP CDOs	—		—		19,118		19,118
Mortgage-backed or related securities	—		18,136		—		18,136
Equity securities and other	—		59		—		59
	—		21,140		19,118		40,258
Derivatives
Interest rate lock commitments	—		317		—		317
Interest rate swaps	—		6,290		—		6,290
	$	—	$	438,768	$	19,118	$	457,886

Liabilities:
Advances from FHLB at fair value	$	—	$	32,250	$	—	$	32,250
Junior subordinated debentures, net of unamortized deferred issuance costs at fair value	—		—		78,001		78,001
Derivatives
Interest rate sales forward commitments, net	—		198		—		198
Interest rate swaps	—		6,290		—		6,290
	$	—	$	38,738	$	78,001	$	116,739

Schedule of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2015 and 2014 (in thousands):



	Three Months Ended					Six Months Ended
	June 30, 2015					June 30, 2015
	Level 3 Fair Value Inputs					Level 3 Fair Value Inputs
	TPS and TRUP CDOs			Borrowings—Junior Subordinated Debentures		TPS and TRUP CDOs			Borrowings— Junior Subordinated Debentures
Beginning balance	$	17,456		$	84,326	$	19,119		$	78,001
Total gains or losses recognized
Assets gains, including OTTI	1,348			—		2,071			—
Liabilities losses	—			368		—			734
Purchases, issuances and settlements, including the Siuslaw acquisition	—			—		—			5,959
Sales, maturities and paydowns, net of discount amortization	(6,233		)	—		(8,619		)	—
Ending balance at June 30, 2015	$	12,571		$	84,694	$	12,571		$	84,694

	Three Months Ended					Six Months Ended
	June 30, 2014					June 30, 2014
	Level 3 Fair Value Inputs					Level 3 Fair Value Inputs
	TPS and TRUP CDOs			Borrowings—Junior Subordinated Debentures		TPS and TRUP CDOs			Borrowings— Junior Subordinated Debentures
Beginning balance	$	35,062		$	74,135	$	35,140		$	73,928
Total gains or losses recognized
Assets gains (losses), including OTTI	3,464			—		3,420			—
Liabilities losses	—			3,178		—			3,385
Sales, maturities and paydowns, net of discount amortization	3			—		(31		)	—
Ending balance at June 30, 2014	$	38,529		$	77,313	$	38,529		$	77,313

Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following tables present financial assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy of the fair value measurements for those assets as of June 30, 2015 and December 31, 2014 (in thousands):



	At or For the Six Months Ended June 30, 2015
	Level 1		Level 2		Level 3		Total		Net Gains/(Losses) Recognized During the Period
Impaired loans	$	—	$	—	$	13,643	$	13,643	$	316
REO	—		—		6,105		6,105		(210		)

	At or For the Year Ended December 31, 2014
	Level 1		Level 2		Level 3		Total		Net Gains/(Losses) Recognized During the Period
Impaired loans	$	—	$	—	$	4,725	$	4,725	$	(512	)
REO	—		—		3,352		3,352		(453		)

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at June 30, 2015 and December 31, 2014:



			Weighted Average Rate
Financial Instruments	Valuation Techniques	Unobservable Inputs	June 30, 2015		December 31, 2014
TPS securities	Discounted cash flows	Discount rate	5.27	%	5.26	%
TRUP CDOs	Discounted cash flows	Discount rate	n/a		3.96
Junior subordinated debentures	Discounted cash flows	Discount rate	5.27		5.26
Impaired loans	Collateral Valuations	Market values	n/a		n/a
REO	Appraisals	Market values	n/a		n/a

Schedule of Fair Value of Financial Instruments, by Balance Sheet Grouping

The carrying value and estimated fair value of financial instruments are as follows (in thousands):



	June 30, 2015				December 31, 2014
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and cash equivalents	$	183,974	$	183,974	$	126,072	$	126,072
Securities—trading	32,404		32,404		40,258		40,258
Securities—available-for-sale	387,876		387,876		411,021		411,021
Securities—held-to-maturity	132,197		137,267		131,258		137,608
Loans receivable held for sale	1,154		1,179		2,786		2,807
Loans receivable	4,245,322		4,114,079		3,831,034		3,722,179
FHLB stock	6,120		6,120		27,036		27,036
Bank-owned life insurance	71,744		71,744		63,759		63,759
Mortgage servicing rights	12,329		16,402		9,030		12,987
Derivatives:
Interest rate lock commitments	754		754		317		317
Interest rate swaps	6,627		6,627		6,290		6,290
Liabilities:
Demand, interest checking and money market accounts	2,528,176		2,249,076		2,227,292		1,998,649
Regular savings	1,003,189		866,788		901,142		784,006
Certificates of deposit	765,780		760,167		770,516		764,549
FHLB advances at fair value	236		236		32,250		32,250
Junior subordinated debentures at fair value	84,694		84,694		78,001		78,001
Other borrowings	94,523		94,523		77,185		77,185
Derivatives:
Interest rate forward sales commitments	148		148		198		198
Interest rate swaps	6,627		6,627		6,290		6,290