FAIR VALUE ACCOUNTING AND MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2013 and December 31, 2012 (in thousands):

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	57,899	$	—	$	57,899
Municipal bonds	—		55,761		—		55,761
Corporate bonds	—		8,994		—		8,994
Mortgage-backed or related securities	—		321,527		—		321,527
Asset-backed securities	—		24,956		—		24,956
	—		469,137		—		469,137
Securities—trading
U.S. Government and agency	—		1,534		—		1,534
Municipal bonds	—		4,990		—		4,990
TPS and TRUP CDOs	—		—		35,105		35,105
Mortgage-backed or related securities	—		23,839		—		23,839
Equity securities and other	—		56		—		56
	—		30,419		35,105		65,524
Derivatives
Interest rate lock commitments	—		1,134		—		1,134
Interest rate swaps	—		4,415		—		4,415
	$	—	$	505,105	$	35,105	$	540,210
Liabilities:
Advances from FHLB at fair value	$	—	$	54,262	$	—	$	54,262
Junior subordinated debentures net of unamortized deferred issuance costs at fair value	—		—		73,471		73,471
Derivatives
Interest rate sales forward commitments, net	—		813		—		813
Interest rate swaps	—		4,415		—		4,415
	$	—	$	59,490	$	73,471	$	132,961

	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 and six months ended June 30, 2013 and 2012 (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2013				June 30, 2013
	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	$	34,520	$	73,220	$	35,741		$	73,063
Total gains or losses recognized
Assets gains (losses), including OTTI	585		—		(636		)	—
Liabilities (gains) losses	—		251		—			408
Ending balance at June 30, 2013	$	35,105	$	73,471	$	35,105		$	73,471
	Three Months Ended				Six Months Ended
	June 30, 2012				June 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	$	31,056	$	49,368	$	30,455		$	49,988
Total gains or losses recognized
Assets gains (losses), including OTTI	1,437		—		2,038			—
Liabilities (gains) losses	—		21,185		—			20,565
Ending balance at June 30, 2012	$	32,493	$	70,553	$	32,493		$	70,553

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 June 30, 2013 and December 31, 2012 (in thousands):

	At or For the Six Months Ended June 30, 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	$	53,628	$	—	$	—	$	53,628	$	(5,206	)
REO	6,714		—		—		6,714		(355		)
MSRs	7,036		—		—		7,036		—
	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 June 30, 2013:

Financial Instruments	Valuation Techniques	Unobservable Inputs	Weighted Average
TPS securities	Discounted cash flows	Discount rate	5.53%
TRUP CDOs	Discounted cash Flows	Discount rate	3.86%
Junior Subordinated Debentures	Discounted cash flows	Discount rate	5.53%
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	12.37%
		Discount rate	10.09%

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

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

	June 30, 2013				December 31, 2012
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and due from banks	$	121,448	$	121,448	$	181,298	$	181,298
Securities—trading	65,524		65,524		71,232		71,232
Securities—available-for-sale	469,137		469,137		472,920		472,920
Securities—held-to-maturity	94,336		96,557		86,452		92,458
Loans receivable held for sale	6,393		6,422		11,920		12,059
Loans receivable	3,283,808		3,163,357		3,223,794		3,143,853
FHLB stock	36,040		36,040		36,705		36,705
Bank-owned life insurance	60,894		60,894		59,891		59,891
Mortgage servicing rights	7,036		7,036		6,244		6,244
Derivatives	5,549		5,549		8,863		8,863
Liabilities:
Demand, interest checking and money market accounts	1,764,712		1,623,152		1,800,555		1,729,351
Regular savings	751,475		683,668		727,956		694,609
Certificates of deposit	944,137		937,718		1,029,293		1,033,931
FHLB advances at fair value	54,262		54,262		10,304		10,304
Junior subordinated debentures at fair value	73,471		73,741		73,063		73,063
Other borrowings	90,779		90,779		76,633		76,633
Derivatives	5,228		5,228		8,548		8,548