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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 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 December 31, 2012 and 2011 (in thousands):
 
December 31, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Securities—available-for-sale
 
 
 
 
 
 
 
U.S. Government and agency
$

 
$
96,980

 
$

 
$
96,980

Corporate bonds

 
44,938

 

 
44,938

Municipal bonds

 
10,729

 

 
10,729

Mortgage-backed securities

 
277,757

 

 
277,757

Asset-backed securities

 
42,516

 

 
42,516

 

 
472,920

 

 
472,920

Securities—trading
 
 
 
 
 
 
 
U.S. Government and agency

 
1,637

 

 
1,637

Municipal bonds

 
5,684

 

 
5,684

TPS and TRUP CDOs

 

 
35,741

 
35,741

Mortgage-backed securities

 
28,107

 

 
28,107

Equity securities and other

 
63

 

 
63

 

 
35,491

 
35,741

 
71,232

Derivatives
 
 
 
 
 
 
 
Interest rate lock commitments

 
510

 

 
510

Interest rate swaps

 
8,353

 

 
8,353

 
$

 
$
517,274

 
$
35,741

 
$
553,015

Liabilities
 
 
 
 
 
 
 
Advances from FHLB at fair value
$

 
$
10,304

 


 
$
10,304

Junior subordinated debentures net of unamortized deferred issuance costs at fair value

 

 
73,063

 
73,063

Derivatives
 

 
 

 
 

 
 

Interest rate forward sales commitments

 
195

 

 
195

Interest rate swaps

 
8,353

 

 
8,353

 
$

 
$
18,852

 
$
73,063

 
$
91,915



 
December 31, 2011
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Securities—available-for-sale
 
 
 
 
 
 
 
U.S. Government and agency
$

 
$
338,971

 
$

 
$
338,971

Corporate bonds

 
6,260

 

 
6,260

Municipal bonds

 
27,309

 

 
27,309

Mortgage-backed securities

 
93,255

 

 
93,255

 

 
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 forward sales commitments

 
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 year ended December 31, 2012 and 2011 (in thousands):
 
Year Ended December 31, 2012
 
Level 3 Fair Value Inputs
 
TPS and TRUP
CDOs
 
Borrowings—
Junior Subordinated
Debentures
Beginning balance at December 31, 2011
$
30,455

 
$
49,988

Total gains or losses recognized
 
 
 
Assets gains (losses)
5,286

 

Liabilities (gains) losses

 
23,075

Purchases, issuances and settlements

 

Paydowns and maturities

 

Transfers in and/or out of Level 3

 

Ending balance at December 31, 2012
$
35,741

 
$
73,063

 
Year Ended December 31, 2011
 
Level 3 Fair Value Inputs
 
TPS and TRUP
CDOs
 
Borrowings—
Junior Subordinated
Debentures
Beginning balance at December 31, 2010
$
29,661

 
$
48,425

Total gains or losses recognized
 
 
 
Assets gains (losses)
794

 

Liabilities (gains) losses

 
1,563

Purchases, issuances and settlements

 

Paydowns and maturities

 

Transfers in and/or out of Level 3

 

Ending balance at December 31, 2011
$
30,455

 
$
49,988

Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The following tables present financial assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy at December 31, 2012 and 2011 (in thousands):
 
December 31, 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 Year
Impaired loans
$
52,475

 
$

 
$

 
$
52,475

 
$
(6,381
)
REO
15,778

 

 

 
15,778

 
(1,915
)
MSRs
6,244

 

 

 
6,244

 
(400
)
 
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 Year
Impaired loans
$
47,959

 
$

 
$

 
$
47,959

 
$
(21,902
)
REO
42,965

 

 

 
42,965

 
(7,325
)
Schedule of Valuation Technique, Unobservable Input, and Qualitative Information for Unobservable Inputs

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 December 31, 2012:
Financial Instruments
Valuation Technique
Unobservable Inputs
Weighted Average
 
 
 
 
TPS securities
Discounted cash flows
Discount rate
5.56%
TRUP CDOs
Discounted cash flows
Discount rate
3.83%
Junior subordinated debentures
Discounted cash flows
Discount rate
5.56%
Impaired loans
Discounted cash flows
Collateral valuations
Discount rate
Market values
various
n/a
REO
Appraisals
Market values
n/a
MSRs
Discounted cash flows
Prepayment rate
Discount rate
19.80%
11.11%
Schedule of Fair Value of Financial Instruments, by Balance Sheet Grouping
The following table presents estimated fair values of the Company’s financial instruments as of December 31, 2012 and 2011, whether or not recognized or recorded in the consolidated balance sheets.  The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies.  However, considerable judgment is necessary to interpret market data in the development of the estimates of fair value.  Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange.  The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.  The carrying value and estimated fair value of financial instruments at December 31, 2012 and 2011 are as follows (in thousands):
 
December 31, 2012
 
December 31, 2011
 
Carrying
Value
 
Estimated Fair
Value
 
Carrying
Value
 
Estimated Fair
Value
Assets:
 
 
 
 
 
 
 
Cash and due from banks
$
181,298

 
$
181,298

 
$
132,436

 
$
132,436

Securities—trading
71,232

 
71,232

 
80,727

 
80,727

Securities—available-for-sale
472,920

 
472,920

 
465,795

 
465,795

Securities—held-to-maturity
86,452

 
92,458

 
75,438

 
80,107

Loans receivable held for sale
11,920

 
12,059

 
3,007

 
3,069

Loans receivable
3,223,794

 
3,143,853

 
3,293,331

 
3,224,112

FHLB stock
36,705

 
36,705

 
37,371

 
37,371

BOLI
59,891

 
59,891

 
58,563

 
58,563

Mortgage servicing rights
6,244

 
6,244

 
5,584

 
5,584

Derivatives
8,863

 
8,863

 
6,284

 
6,284

Liabilities:
 
 
 
 
 
 
 
Demand, interest-bearing-checking and money market
1,800,555

 
1,729,351

 
1,555,561

 
1,487,080

Regular savings
727,956

 
694,609

 
669,596

 
630,450

Certificates of deposit
1,029,293

 
1,033,931

 
1,250,497

 
1,258,431

FHLB advances at fair value
10,304

 
10,304

 
10,533

 
10,533

Junior subordinated debentures at fair value
73,063

 
73,063

 
49,988

 
49,988

Other borrowings
76,633

 
76,633

 
152,128

 
152,128

Derivatives
8,548

 
8,548

 
6,283

 
6,283

Off-balance-sheet financial instruments:
 
 
 
 
 
 
 
Commitments to originate loans
510

 
510

 
617

 
617

Commitments to sell loans
(195
)
 
(195
)
 
(617
)
 
(617
)