FAIR VALUE ACCOUNTING AND MEASUREMENT (Tables)

9 Months Ended

Sep. 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 and the level within the fair value hierarchy of the fair value measurements for those assets as of September 30, 2013 and December 31, 2012 (in thousands):

	September 30, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Securities—available-for-sale
U.S. Government and agency	$	—	$	58,768	$	—	$	58,768
Municipal bonds	—		55,315		—		55,315
Corporate bonds	—		9,000		—		9,000
Mortgage-backed or related securities	—		329,075		—		329,075
Asset-backed securities	—		25,249		—		25,249
	—		477,407		—		477,407
Securities—trading
U.S. Government and agency	—		1,510		—		1,510
Municipal bonds	—		4,987		—		4,987
TPS and TRUP CDOs	—		—		35,095		35,095
Mortgage-backed or related securities	—		22,227		—		22,227
Equity securities and other	—		68		—		68
	—		28,792		35,095		63,887
Derivatives
Interest rate lock commitments	—		494		—		494
Interest rate swaps	—		4,615		—		4,615
	$	—	$	511,308	$	35,095	$	546,403
Liabilities:
Advances from FHLB at fair value	$	—	$	20,258	$	—	$	20,258
Junior subordinated debentures net of unamortized deferred issuance costs at fair value	—		—		73,637		73,637
Derivatives
Interest rate sales forward commitments, net	—		474		—		474
Interest rate swaps	—		4,615		—		4,615
	$	—	$	25,347	$	73,637	$	98,984

	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 nine months ended September 30, 2013 and 2012 (in thousands):

	Three Months Ended					Nine Months Ended
	September 30, 2013					September 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	$	35,105		$	73,471	$	35,741		$	73,063
Total gains or losses recognized
Assets gains (losses), including OTTI	(10		)	—		(646		)	—
Liabilities (gains) losses	—			166		—			574
Ending balance at September 30, 2013	$	35,095		$	73,637	$	35,095		$	73,637
	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 (losses), including OTTI	2,687			—		4,725			—
Liabilities (gains) losses	—			2,518		—			23,083
Ending balance at September 30, 2012	$	35,180		$	73,071	$	35,180		$	73,071

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

	At or For the Nine Months Ended September 30, 2013
	Level 1		Level 2		Level 3		Total		Net Gains/(Losses) Recognized During the Period
Impaired loans	$	—	$	—	$	50,875	$	50,875	$	(4,648	)
REO	—		—		4,818		4,818		(557		)
MSRs	—		—		7,684		7,684		1,000
	At or For the Year Ended December 31, 2012
	Level 1		Level 2		Level 3		Total		Net Gains/(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 September 30, 2013:

Financial Instruments	Valuation Techniques	Unobservable Inputs	Weighted Average Rate
TPS	Discounted cash flows	Discount rate	5.50%
TRUP CDOs	Discounted cash Flows	Discount rate	3.11%
Junior Subordinated Debentures	Discounted cash flows	Discount rate	5.50%
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):

	September 30, 2013				December 31, 2012
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets:
Cash and due from banks	$	175,965	$	175,965	$	181,298	$	181,298
Securities—trading	63,887		63,887		71,232		71,232
Securities—available-for-sale	477,407		477,407		472,920		472,920
Securities—held-to-maturity	96,545		98,401		86,452		92,458
Loans receivable held for sale	8,394		8,394		11,920		12,059
Loans receivable	3,267,042		3,164,657		3,223,794		3,143,853
FHLB stock	35,708		35,708		36,705		36,705
Bank-owned life insurance	61,442		61,442		59,891		59,891
Mortgage servicing rights	7,684		7,684		6,244		6,244
Derivatives	5,109		5,110		8,863		8,863
Liabilities:
Demand, interest checking and money market accounts	1,860,001		1,714,813		1,800,555		1,729,351
Regular savings	775,260		706,326		727,956		694,609
Certificates of deposit	900,024		893,768		1,029,293		1,033,931
FHLB advances at fair value	20,258		20,258		10,304		10,304
Junior subordinated debentures at fair value	73,637		73,637		73,063		73,063
Other borrowings	82,909		82,909		76,633		76,633
Derivatives	5,089		5,089		8,548		8,548