FAIR VALUE ACCOUNTING AND MEASUREMENT (Tables)

9 Months Ended

Sep. 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 September 30, 2015 and December 31, 2014 (in thousands):



	September 30, 2015
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
U.S. Government and agency	$	—	$	1,389	$	—	$	1,389
Municipal bonds	—		1,418		—		1,418
Corporate Bonds (Trust Preferred Securities)	—		—		18,340		18,340
Mortgage-backed or related securities	—		16,313		—		16,313
Equity securities	—		55		—		55
	—		19,175		18,340		37,515
Securities—available-for-sale
U.S. Government and agency	—		11,992		—		11,992
Municipal bonds	—		67,657		—		67,657
Corporate bonds	—		5,022		—		5,022
Mortgage-backed or related securities	—		302,800		—		302,800
Asset-backed securities	—		30,783		—		30,783
	—		418,254		—		418,254

Derivatives
Interest rate lock commitments	—		752		—		752
Interest rate swaps	—		9,647		—		9,647
	$	—	$	447,828	$	18,340	$	466,168

Liabilities:
Advances from FHLB	$	—	$	16,435	$	—	$	16,435
Junior subordinated debentures, net of unamortized deferred issuance costs	—		—		85,183		85,183
Derivatives
Interest rate sales forward commitments	—		369		—		369
Interest rate swaps	—		9,647		—		9,647
	$	—	$	26,451	$	85,183	$	111,634



	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Securities—trading
U.S. Government and agency	$	—	$	1,505	$	—	$	1,505
Municipal bonds	—		1,440		—		1,440
Corporate Bonds (TPS and TRUP CDOs)	—		—		19,118		19,118
Mortgage-backed or related securities	—		18,136		—		18,136
Equity securities	—		59		—		59
	—		21,140		19,118		40,258
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
Derivatives
Interest rate lock commitments	—		317		—		317
Interest rate swaps	—		6,290		—		6,290
	$	—	$	438,768	$	19,118	$	457,886

Liabilities:
Advances from FHLB	$	—	$	32,250	$	—	$	32,250
Junior subordinated debentures, net of unamortized deferred issuance costs	—		—		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

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 certain of the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2015 and December 31, 2014:



			Weighted Average Rate
Financial Instruments	Valuation Techniques	Unobservable Inputs	September 30, 2015		December 31, 2014
TPS securities	Discounted cash flows	Discount rate	5.33	%	5.26	%
TRUP CDOs	Discounted cash flows	Discount rate	n/a		3.96
Junior subordinated debentures	Discounted cash flows	Discount rate	5.33		5.26
Impaired loans	Collateral Valuations	Market values	n/a		n/a
REO	Appraisals	Market values	n/a		n/a

Fair Value, 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 nine months ended September 30, 2015 and 2014 (in thousands):



	Three Months Ended					Nine Months Ended
	September 30, 2015					September 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	$	12,571		$	84,694	$	19,119		$	78,001
Total gains or losses recognized
Assets gains (losses), including OTTI	(596		)	—		1,475			—
Liabilities losses	—			489		—			1,223
Purchases, issuances and settlements, including the Siuslaw acquisition	6,338			—		6,338			5,959
Sales, maturities and paydowns, net of discount amortization	27			—		(8,592		)	—
Ending balance at September 30, 2015	$	18,340		$	85,183	$	18,340		$	85,183

	Three Months Ended					Nine Months Ended
	September 30, 2014					September 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	$	38,529		$	77,313	$	35,140		$	73,928
Total gains or losses recognized
Assets gains, including OTTI	1,969			—		5,389			—
Liabilities losses	—			311		—			3,696
Sales, maturities and paydowns, net of discount amortization	(11,485		)	—		(11,516		)	—
Ending balance at September 30, 2014	$	29,013		$	77,624	$	29,013		$	77,624

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 September 30, 2015 and December 31, 2014 (in thousands):



	At or For the Nine Months Ended September 30, 2015
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	5,272	$	5,272
REO	—		—		6,363		6,363

	At or For the Year Ended December 31, 2014
	Level 1		Level 2		Level 3		Total
Impaired loans	$	—	$	—	$	4,725	$	4,725
REO	—		—		3,352		3,352

Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings

The following table presents the losses resulting from nonrecurring fair value adjustments for the three and nine months ended September 30, 2015 and 2014 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Impaired loans	$	(600	)	$	(150	)	$	(916	)	$	(2,828	)
REO	(34		)	(25		)	(244		)	(458		)
Total loss from nonrecurring measurements	$	(634	)	$	(175	)	$	(1,160	)	$	(3,286	)