FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2013

Assets (Liabilities) Measured at Fair Value on Recurring Basis

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of December 31, 2013
			Quoted Prices in		Significant
	Fair Value		Active Markets		Other		Significant
	Measurements		for Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2013		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	491,632	$	491,632	$	—	$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities	394,323		—		394,323		—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	178,870		—		178,870		—
Residential mortgage-backed securities	885,237		—		885,237		—
Municipal securities	280,979		—		280,979		—
Other residential mortgage-backed securities:
Investment grade	46,327		—		46,327		—
Other commercial mortgage-backed securities:
Investment grade	51,617		—		51,617		—
Corporate debt securities:
Investment grade	309,995		—		309,995		—
Non-investment grade	15,101		—		8,730		6,371
Other securities	79,716		—		79,716		—
Total investment securities available-for-sale	$	2,733,797	$	491,632	$	2,235,794	$	6,371
Foreign exchange options	6,290		—		6,290		—
Interest rate swaps	28,078		—		28,078		—
Foreign exchange contracts	6,181		—		6,181		—
Derivatives liabilities	(50,262)		—		(46,607)		(3,655		)

	Assets (Liabilities) Measured at Fair Value on a Recurring Basis
	as of December 31, 2012
			Quoted Prices in		Significant
	Fair Value		Active Markets		Other		Significant
	Measurements		for Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2012		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
Investment securities available-for-sale:
U.S. Treasury securities	$	460,677	$	460,677	$	—	$	—
U.S. Government agency and U.S. Government sponsored enterprise debt securities	197,855		—		197,855		—
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	180,665		—		180,665		—
Residential mortgage-backed securities	1,144,085		—		1,144,085		—
Municipal securities	167,093		—		167,093		—
Other commercial mortgage-backed securities:
Investment grade	17,084		—		17,084		—
Corporate debt securities:
Investment grade	411,983		—		411,983		—
Non-investment grade	17,417		—		12,617		4,800
Other securities	10,170		—		10,170		—
Total investment securities available-for-sale	$	2,607,029	$	460,677	$	2,141,552	$	4,800
Foreign exchange options	$	5,011	$	—	$	5,011	$	—
Interest rate swaps	36,943		—		36,943		—
Short-term foreign exchange contracts	896		—		896		—
Derivatives liabilities	(42,060)		—		(39,008)		(3,052		)

Assets Measured at Fair Value on a Non-Recurring Basis

	Assets Measured at Fair Value on a Non-Recurring Basis
	for the Twelve Months Ended December 31, 2013
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Twelve Months Ended
	December 31,		Assets		Inputs		Inputs		December 31,
	2013		(Level 1)		(Level 2)		(Level 3)		2013
	(In thousands)
Non-covered impaired loans:
Total residential	$	12,791	$	—	$	—	$	12,791	$	(1,378	)
Total commercial real estate	29,559		—		—		29,559		(4,250		)
Total commercial and industrial	15,120		—		—		15,120		(13,135		)
Total consumer	281		—		—		281		(112		)
Total non-covered impaired loans	$	57,751	$	—	$	—	$	57,751	$	(18,875	)
Non-covered OREO	$	13,031	$	—	$	—	$	13,031	$	(1,438	)
Covered OREO (1)	$	17,284	$	—	$	—	$	17,284	$	(3,376	)

	Assets Measured at Fair Value on a Non-Recurring Basis
	for the Twelve Months Ended December 31, 2012
			Quoted Prices in		Significant				Total Gains
	Fair Value		Active Markets		Other		Significant		(Losses) for the
	Measurements		for Identical		Observable		Unobservable		Twelve Months Ended
	December 31,		Assets		Inputs		Inputs		December 31,
	2012		(Level 1)		(Level 2)		(Level 3)		2012
	(In thousands)
Non-covered impaired loans:
Total residential	$	23,043	$	—	$	—	$	23,043	$	(4,803	)
Total commercial real estate	31,737		—		—		31,737		(8,405		)
Total commercial and industrial	12,838		—		—		12,838		(14,540		)
Total consumer	372		—		—		372		(264		)
Total non-covered impaired loans	$	67,990	$	—	$	—	$	67,990	$	(28,012	)
Non-covered OREO	$	2,065	$	—	$	—	$	2,065	$	(5,122	)
Covered OREO (1)	$	10,468	$	—	$	—	$	10,468	$	(11,183	)
Loans held for sale	$	—	$	—	$	—	$	—	$	(4,730	)

(1) Covered OREO results from the WFIB and UCB FDIC-assisted acquisitions for which the Company entered into shared-loss agreements with the FDIC whereby the FDIC will reimburse the Company for 80% of eligible losses. As such, the Company’s liability for losses is 20% of the $3.4 million in losses, or $675 thousand, and 20% of the $11.2 million in losses, or $2.2 million, for the year ended December 31, 2013 and 2012, respectively.

Reconciliation of assets and liabilities measured at fair value using significant unobservable inputs

	Investment Securities Available-for-Sale
	Corporate Debt
	Securities
	Non-Investment Grade		Derivatives Payable
	(In thousands)
Beginning balance, January 1, 2013	$	4,800	$	(3,052	)
Total gains or (losses): (1)
Included in earnings	—		(603		)
Included in other comprehensive unrealized gain (2)	1,653		—
Purchases, issuances, sales, settlements (3)
Purchases	—		—
Issuances	—		—
Sales	—		—
Settlements	(82)		—
Transfer from investment grade to non-investment grade	—		—
Transfers in and/or out of Level 3	—		—
Ending balance, December 31, 2013	$	6,371	$	(3,655	)
Changes in unrealized losses included in earnings relating to assets and liabilities still held at December 31, 2013	$	—	$	603

	Investment Securities Available-for-Sale
	Corporate Debt
	Securities
	Non-Investment Grade		Derivatives Payable
	(In thousands)
Beginning balance, January 1, 2012	$	2,235	$	(2,634	)
Total gains or (losses): (1)
Included in earnings	(99)		(418		)
Included in other comprehensive unrealized gain (2)	2,711		—
Purchases, issuances, sales, settlements (3)
Purchases	—		—
Issuances	—		—
Sales	—		—
Settlements	(47)		—
Transfer from investment grade to non-investment grade	—		—
Transfers in and/or out of Level 3	—		—
Ending balance, December 31, 2012	$	4,800	$	(3,052	)
Changes in unrealized losses included in earnings relating to assets and liabilities still held at December 31, 2012	$	99	$	418

(1) Total gains or losses represent the total realized and unrealized gains and losses recorded for Level 3 assets and liabilities. Realized gains or losses are reported in the consolidated statements of income.

(2) Unrealized gains or losses on investment securities are reported in accumulated other comprehensive loss, net of tax in the consolidated statements of comprehensive income.

(3) Purchases, issuances, sales and settlements represent Level 3 assets and liabilities that were either purchased, issued, sold, or settled during the period. The amounts are recorded at their end of period fair values.

Carrying amounts and fair values of financial instruments

	December 31,
	2013				2012
	Carrying				Carrying
	Amount or				Amount or
	Notional		Estimated		Notional		Estimated
	Amount		Fair Value		Amount		Fair Value
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	895,820	$	895,820	$	1,323,106	$	1,323,106
Short-term investments	257,473		257,473		366,378		366,378
Securities purchased under resale agreements	1,300,000		1,279,406		1,450,000		1,442,302
Investment securities available-for-sale	2,733,797		2,733,797		2,607,029		2,607,029
Loans held for sale	204,970		212,469		174,317		180,349
Loans receivable, net	17,600,613		16,741,674		14,645,785		14,743,218
Investment in Federal Home Loan Bank stock	62,330		62,330		107,275		107,275
Investment in Federal Reserve Bank stock	48,333		48,333		48,003		48,003
Accrued interest receivable	116,314		116,314		94,837		94,837
Foreign exchange options	85,614		6,290		85,614		5,011
Interest rate swaps	1,915,474		28,078		1,190,793		36,943
Foreign exchange contracts	440,848		6,181		112,459		896
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	14,588,570		14,588,570		12,187,740		12,187,740
Time deposits	5,824,348		5,791,659		6,121,614		6,115,530
Federal Home Loan Bank advances	315,092		308,521		312,975		333,060
Securities sold under repurchase agreements	995,000		1,134,774		995,000		1,173,830
Other borrowings	—		—		20,000		20,000
Accrued interest payable	11,178		11,178		10,855		10,855
Long-term debt	226,868		184,415		137,178		83,762
Derivatives liabilities	2,308,612		50,262		1,392,494		42,060

Schedule fair value hierarchy for the estimated fair values of financial instruments

	December 31, 2013
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
			(In thousands)
Financial Assets:
Cash and cash equivalents	$	895,820	$	895,820	$	—	$	—
Short-term investments	257,473		—		257,473		—
Securities purchased under resale agreements	1,279,406		—		1,279,406		—
Loans held for sale	212,469		—		212,469		—
Loans receivable, net	16,741,674		—		—		16,741,674
Investment in Federal Home Loan Bank stock	62,330		—		62,330		—
Investment in Federal Reserve Bank stock	48,333		—		48,333		—
Accrued interest receivable	116,314		—		116,314		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	14,588,570		—		14,588,570		—
Time deposits	5,791,659		—		—		5,791,659
Federal Home Loan Bank advances	308,521		—		308,521		—
Securities sold under repurchase agreements	1,134,774		—		1,134,774		—
Other borrowings	—		—		—		—
Accrued interest payable	11,178		—		11,178		—
Long-term debt	184,415		—		184,415		—

	December 31, 2012
	Estimated
	Fair Value
	Measurements		Level 1		Level 2		Level 3
			(In thousands)
Financial Assets:
Cash and cash equivalents	$	1,323,106	$	1,323,106	$	—	$	—
Short-term investments	366,378		—		366,378		—
Securities purchased under resale agreements	1,442,302		—		1,442,302		—
Loans held for sale	180,349		—		180,349		—
Loans receivable, net	14,743,218		—		—		14,743,218
Investment in Federal Home Loan Bank stock	107,275		—		107,275		—
Investment in Federal Reserve Bank stock	48,003		—		48,003		—
Accrued interest receivable	94,837		—		94,837		—
Financial Liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	12,187,740		—		12,187,740		—
Time deposits	6,115,530		—		—		6,115,530
Federal Home Loan Bank advances	333,060		—		333,060		—
Securities sold under repurchase agreements	1,173,830		—		1,173,830		—
Other borrowings	20,000		—		20,000		—
Accrued interest payable	10,855		—		10,855		—
Long-term debt	83,762		—		83,762		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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