FAIR VALUE ACCOUNTING AND MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

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 as of September 30, 2012 and December 31, 2011 (in thousands):

	September 30, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	158,242	$	—	$	158,242
Municipal bonds	—		40,003		—		40,003
Corporate bonds	—		4,075		—		4,075
Mortgage-backed securities	—		224,886		—		224,886
Asset-backed securities	—		32,752		—		32,752
	—		459,958		—		459,958
Securities—trading
U.S. Government and agency	—		1,642		—		1,642
Municipal bonds	—		5,535		—		5,535
TPS and TRUP CDOs	—		—		35,180		35,180
Mortgage-backed securities	—		30,186		—		30,186
Equity securities and other	—		50		—		50
	—		37,413		35,180		72,593
Derivatives
Interest rate lock commitments	—		1,255		—		1,255
Interest rate swaps	—		8,834		—		8,834
	$	—	$	507,460	$	35,180	$	542,640
Liabilities:
Advances from FHLB at fair value	$	—	$	10,367	$	—	$	10,367
Junior subordinated debentures net of unamortized deferred issuance costs at fair value	—		—		73,071		73,071
Derivatives
Interest rate sales forward commitments, net	—		1,081		—		1,081
Interest rate swaps	—		8,834		—		8,834
	$	—	$	20,282	$	73,071	$	93,353

	December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	338,971	$	—	$	338,971
Municipal bonds	—		6,260		—		6,260
Corporate bonds	—		27,310		—		27,310
Mortgage-backed securities	—		93,254		—		93,254
Asset-backed securities	—		—		—		—
	—		465,795		—		465,795
Securities—trading
U.S. Government and agency	—		2,635		—		2,635
Municipal bonds	—		5,962		—		5,962
TPS and TRUP CDOs	—		4,600		30,455		35,055
Mortgage-backed securities	—		36,673		—		36,673
Equity securities and other	—		402		—		402
	—		50,272		30,455		80,727
Derivatives
Interest rate lock commitments	—		617		—		617
Interest rate swaps	—		5,667		—		5,667
	$	—	$	522,351	$	30,455	$	552,806
Liabilities:
Advances from FHLB at fair value	$	—	$	10,533	$	—	$	10,533
Junior subordinated debentures net of unamortized deferred issuance costs at fair value	—		—		49,988		49,988
Derivatives
Interest rate sales forward commitments, net	—		617		—		617
Interest rate swaps	—		5,666		—		5,666
	$	—	$	16,816	$	49,988	$	66,804

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 nine months ended September 30, 2012 and 2011 (in thousands):

	Three Months Ended					Nine Months Ended
	September 30, 2012					September 30, 2012
	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	$	32,493		$	70,553	$	30,455		$	49,988
Total gains or losses recognized
Assets gains, including OTTI	2,687			—		4,725			—
Liabilities (gains)	—			2,518		—			23,083
Ending balance at September 30, 2012	$	35,180		$	73,071	$	35,180		$	73,071
	Three Months Ended					Nine Months Ended
	September 30, 2011					September 30, 2011
	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	$	30,728		$	47,986	$	29,661		$	48,425
Total gains or losses recognized
Assets gains, including OTTI	(91		)	—		1,018			—
Liabilities (gains)	—			784					345
Paydowns and maturities	(17		)	—		(59		)	—
Ending balance at September 30, 2011	$	30,620		$	48,770	$	30,620		$	48,770

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

The following tables present the fair value measurement of assets and liabilities 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 at September 30, 2012 and December 31, 2011 (in thousands):

	At or For the Nine Months Ended September 30, 2012
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Losses Recognized During the Period
Impaired loans	$	40,548	$	—	$	—	$	40,548	$	11,184
REO	20,356		—		—		20,356		3,196
	At or For the Year Ended December 31, 2011
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Losses Recognized During the Period
Impaired loans	$	47,959	$	—	$	—	$	47,959	$	21,902
REO	42,965		—		—		42,965		7,325

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

The estimated fair value of financial instruments is as follows (in thousands):

	September 30, 2012						December 31, 2011
	Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
Assets:
Cash and due from banks	$	203,756		$	203,756		$	132,436		$	132,436
Securities—trading	72,593			72,593			80,727			80,727
Securities—available-for-sale	459,958			459,958			465,795			465,795
Securities—held-to-maturity	88,626			95,176			75,438			80,107
Loans receivable held for sale	6,898			6,960			3,007			3,069
Loans receivable	3,206,625			3,131,598			3,293,331			3,224,112
FHLB stock	37,038			37,038			37,371			37,371
Bank-owned life insurance	60,395			60,395			58,563			58,563
Mortgage servicing rights	6,451			6,451			5,584			5,584
Derivatives	10,090			10,090			6,284			6,284
Liabilities:
Demand, interest checking and money market accounts	1,709,874			1,646,377			1,555,561			1,487,080
Regular savings	689,322			659,117			669,596			630,450
Certificates of deposit	1,087,176			1,092,828			1,250,497			1,258,431
FHLB advances at fair value	10,367			10,367			10,533			10,533
Junior subordinated debentures at fair value	73,071			73,071			49,988			49,988
Other borrowings	82,275			82,275			152,128			152,128
Derivatives	9,915			9,915			6,283			6,283
Off-balance-sheet financial instruments:
Commitments to originate loans	1,255			1,255			617			617
Commitments to sell loans	(1,081		)	(1,081		)	(617		)	(617		)