FAIR VALUE ACCOUNTING AND MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2013

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 March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	78,342	$	—	$	78,342
Municipal bonds	—		62,278		—		62,278
Corporate bonds	—		10,663		—		10,663
Mortgage-backed or related securities	—		274,900		—		274,900
Asset-backed securities	—		50,500		—		50,500
	—		476,683		—		476,683
Securities—trading
U.S. Government and agency	—		1,617		—		1,617
Municipal bonds	—		5,347		—		5,347
TPS and TRUP CDOs	—		—		34,520		34,520
Mortgage-backed or related securities	—		26,217		—		26,217
Equity securities and other	—		60		—		60
	—		33,241		34,520		67,761
Derivatives
Interest rate lock commitments	—		710		—		710
Interest rate swaps	—		7,447		—		7,447
	$	—	$	518,081	$	34,520	$	552,601
Liabilities:
Advances from FHLB at fair value	$	—	$	278	$	—	$	278
Junior subordinated debentures net of unamortized deferred issuance costs at fair value	—		—		73,220		73,220
Derivatives
Interest rate sales forward commitments, net	—		388		—		388
Interest rate swaps	—		7,447		—		7,447
	$	—	$	8,113	$	73,220	$	81,333

	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	96,980	$	—	$	96,980
Municipal bonds	—		44,938		—		44,938
Corporate bonds	—		10,729		—		10,729
Mortgage-backed or related 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 or related 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 sales forward commitments, net	—		195		—		195
Interest rate swaps	—		8,353		—		8,353
	$	—	$	18,852	$	73,063	$	91,915

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 months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended
	March 31, 2013
	Level 3 Fair Value Inputs
	TPS and TRUP CDOs			Borrowings— Junior Subordinated  Debentures
Beginning balance	$	35,741		$	73,063
Total gains or losses recognized
Assets gains, including OTTI	(1,221		)	—
Liabilities (gains)	—			157
Ending balance at March 31, 2013	$	34,520		$	73,220
	Three Months Ended
	March 31, 2012
	Level 3 Fair Value Inputs
	TPS and TRUP CDOs			Borrowings— Junior Subordinated  Debentures
Beginning balance	$	30,455		$	49,988
Total gains or losses recognized
Assets gains, including OTTI	601			—
Liabilities (gains)	—			(620		)
Ending balance at March 31, 2012	$	31,056		$	49,368

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 of the fair value measurements for those assets at March 31, 2013 and December 31, 2012 (in thousands):

	At or For the Three Months Ended March 31, 2013
	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	$	57,795	$	—	$	—	$	57,795	$	(681	)
REO	11,160		—		—		11,160		(73		)
	At or For the Year Ended 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 Period
Impaired loans	$	52,475	$	—	$	—	$	52,475	$	(6,381	)
REO	15,778		—		—		15,778		(1,915		)
MSRs	6,244		—		—		6,244		(400		)

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 March 31, 2013:

Financial Instruments	Valuation Techniques	Unobservable Inputs	Weighted Average
TPS securities	Discounted cash flows	Discount rate	5.54%
TRUP CDOs	Discounted cash Flows	Discount rate	4.09%
Junior Subordinated Debentures	Discounted cash flows	Discount rate	5.54%
Impaired loans	Discounted cash flows	Discount rate	Various
	Collateral Valuations	Market values	n/a
REO	Appraisals	Market values	n/a
MSRs	Discounted cash flows	Prepayment rate	19.80%
		Discount rate	11.11%

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

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

	March 31, 2013				December 31, 2012
	Carrying Value		Estimated Fair Value		Carrying Value			Estimated Fair Value
Assets:
Cash and due from banks	$	155,714	$	155,714	$	181,298		$	181,298
Securities—trading	67,761		67,761		71,232			71,232
Securities—available-for-sale	476,683		476,683		472,920			472,920
Securities—held-to-maturity	88,408		93,785		86,452			92,458
Loans receivable held for sale	5,384		5,438		11,920			12,059
Loans receivable	3,234,937		3,163,536		3,223,794			3,143,853
FHLB stock	36,373		36,373		36,705			36,705
Bank-owned life insurance	60,425		60,425		59,891			59,891
Mortgage servicing rights	6,335		6,335		6,244			6,244
Derivatives	8,157		8,157		8,863			8,863
Liabilities:
Demand, interest checking and money market accounts	1,777,815		1,660,687		1,800,555			1,729,351
Regular savings	759,866		703,054		727,956			694,609
Certificates of deposit	982,903		977,609		1,029,293			1,033,931
FHLB advances at fair value	278		278		10,304			10,304
Junior subordinated debentures at fair value	73,220		73,220		73,063			73,063
Other borrowings	88,446		88,446		76,633			76,633
Derivatives	7,835		7,835		8,548			8,548
Off-balance-sheet financial instruments:
Commitments to originate loans	710		710		510			510
Commitments to sell loans	388		388		(195		)	(195		)