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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2014

FAIR VALUE MEASUREMENTS

Summary of financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value

		September 30, 2014
		Level 1			Level 2			Level 3			Total
(In thousands)		Inputs			Inputs			Inputs			Fair Value
Trading security		$	—		$	—		$	14,745		$	14,745
Available-for-sale securities:
Municipal bonds and obligations		—			135,524			—			135,524
Governmentguaranteed residential mortgage-backed securities		—			74,282			—			74,282
Government-sponsored residential mortgage-backed securities		—			777,571			—			777,571
Corporate bonds		—			2,556			—			2,556
Trust preferred securities		—			13,850			1,548			15,398
Other bonds and obligations		—			3,154			—			3,154
Marketable equity securities		49,375			357			748			50,480
Loans held for sale		—			29,091			—			29,091
Derivative assets		—			9,343			383			9,726
Derivative liabilities		103			11,613			(77		)	11,639

		December 31, 2013
		Level 1			Level 2			Level 3			Total
(In thousands)		Inputs			Inputs			Inputs			Fair Value
Trading security		$	—		$	—		$	14,840		$	14,840
Available-for-sale securities:
Municipal bonds and obligations		—			77,671			—			77,671
Government guaranteed residential mortgage-backed securities		—			78,771			—			78,771
Government-sponsored residential mortgage-backed securities		—			522,658			—			522,658
Corporate bonds		—			39,280			—			39,280
Trust preferred securities		—			15,372			1,239			16,611
Other bonds and obligations		—			3,084			—			3,084
Marketable equity securities		20,891			357			725			21,973
Loans Held for Sale		—			15,840			—			15,840
Derivative assets		242			7,799			277			8,318
Derivative liabilities		—			11,964			—			11,964

Schedule of loans held for sale

								Aggregate Fair Value
September 30, 2014		Aggregate			Aggregate			Less Aggregate
(In thousands)		Fair Value			Unpaid Principal			Unpaid Principal
Loans Held for Sale		$	29,091		$	28,424		$	667

								Aggregate Fair Value
December 31, 2013		Aggregate			Aggregate			Less Aggregate
(In thousands)		Fair Value			Unpaid Principal			Unpaid Principal
Loans Held for Sale		$	15,840		$	15,641		$	199

Schedule of changes in level 3 assets and liabilities that were measured at fair value on a recurring basis

		Assets (Liabilities)
					Securities			Interest Rate
		Trading			Available			Lock			Forward
(In thousands)		Security			for Sale			Commitments			Commitments
Three Months Ended September 30, 2014
Balance as of June 30, 2014		$	14,971		$	2,217		$	660		$	(163	)
Purchase of Marketable Equity Security		—			—			—			—
Unrealized (loss) gain, net recognized in other non-interest income		(91		)	—			769			240
Unrealized gain included in accumulated other comprehensive loss		—			79			—			—
Paydown of trading security		(135		)	—			—			—
Transfers to held for sale loans		—			—			(1,046		)	—
Balance as of September 30, 2014		$	14,745		$	2,296		$	383		$	77
Nine Months Ended September 30, 2014
Balance as of December 31, 2013		$	14,840		$	1,964		$	258		$	19
Purchase of Marketable Equity Security		—			—			—			—
Unrealized (loss) gain, net recognized in other non-interest income		308			—			2,563			58
Unrealized gain included in accumulated other comprehensive loss		—			332			—			—
Paydown of trading account security		(403		)	—			—			—
Transfers to held for sale loans		—			—			(2,438		)	—
Balance as of September 30, 2014		$	14,745		$	2,296		$	383		$	77
Unrealized gains (losses) relating to instruments still held at September 30, 2014		$	—		$	(1,028	)	$	383		$	77

		Assets (Liabilities)
					Securities			Interest Rate
		Trading			Available			Lock			Forward
(In thousands)		Security			for Sale			Commitments			Commitments
Three Months Ended September 30, 2013
Balance as of June 30, 2013		$	15,564		$	1,819		$	(1,507	)	$	1,403
Greenpark Acquisition		—			—			—			—
Unrealized (loss) gain recognized in other non-interest income		(107		)	—			5,054			(1,628		)
Unrealized loss included in accumulated other comprehensive loss		—			(70		)	—			—
Paydown of trading security		(127		)	—			—			—
Transfers to held for sale loans		—			—			(2,571		)	—
Balance as of September 30, 2013		$	15,330		$	1,749		$	976		$	(225	)
Nine Months Ended September 30, 2013
Balance as of December 31, 2012		$	16,893		$	885		$	6,258		$	(1,055	)
Greenpark Acquisition		—			770			—			—
Unrealized (loss) gain recognized in other non-interest income		(1,180		)	—			8,353			830
Unrealized loss included in accumulated other comprehensive loss		—			94			—			—
Paydown of trading account security		(383		)	—			—			—
Transfers to held for sale loans		—			—			(13,635		)	—
Balance as of September 30, 2013		$	15,330		$	1,749		$	976		$	(225	)
Unrealized gains (losses) relating to instruments still held at September 30, 2013		$	—		$	(1,624	)	$	976		$	(225	)

Summary of applicable non-recurring fair value measurements

		September 30, 2014			December 31, 2013			Nine months ended September 30, 2014
		Level 3			Level 3			Total
(In thousands)		Inputs			Inputs			Gains (Losses)
Assets
Impaired loans		$	3,561		$	5,542		$	(1,981	)
Capitalized mortgage servicing rights		3,845			4,112			—
Other real estate owned		4,854			2,995			(148		)
Total		$	12,260		$	12,649		$	(2,129	)

Summary of estimated fair values, and related carrying amounts, of financial instruments

		September 30, 2014
		Carrying			Fair
(In thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial Assets
Cash and cash equivalents		$	58,624		$	58,624		$	58,624		$	—		$	—
Trading security		14,745			14,745			—			—			14,745
Securities available for sale		1,058,965			1,058,965			49,375			1,007,294			2,296
Securities held to maturity		42,596			43,771			—			—			43,771
Restricted equity securities		54,646			54,646			—			54,646			—
Net loans		4,517,816			4,560,815			—			—			4,560,815
Loans held for sale		29,091			29,091			—			29,091			—
Accrued interest receivable		17,102			17,102			—			17,102			—
Cash surrender value of bank-owned life insurance policies		103,749			103,749			—			103,749			—
Derivative assets		9,726			9,726			—			9,343			383
Assets held for sale		1,260			1,260			—			1,260			—
Financial Liabilities
Total deposits		$	4,563,333		$	4,565,618		—			$	4,565,618		$	—
Short-term debt		887,000			887,115			—			887,115			—
Long-term Federal Home Loan Bank advances		64,105			65,711			—			65,711			—
Subordinated borrowings		89,730			87,630			—			87,630			—
Derivative liabilities		11,639			11,639			103			11,613			(77		)
Liabilities held for sale		—			—			—			—			—

		December 31, 2013
		Carrying			Fair
(In thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial Assets
Cash and cash equivalents		$	75,539		$	75,539		$	75,539		$	—		$	—
Trading security		14,840			14,840			—			—			14,840
Securities available for sale		760,048			760,048			20,891			737,193			1,964
Securities held to maturity		44,921			45,764			—			—			45,764
Restricted equity securities		50,282			50,282			—			50,282			—
Net loans		4,147,200			4,154,663			—			—			4,154,663
Loans held for sale		15,840			15,840			—			15,840			—
Accrued interest receivable		15,072			15,072			—			15,072			—
Cash surrender value of bank-owned life insurance policies		101,530			101,530			—			101,530			—
Derivative assets		8,318			8,318			242			7,799			277
Assets held for sale		3,969			3,969			—			3,969			—
Financial Liabilities
Total deposits		$	3,848,529		$	3,848,926		$	—		$	3,848,926		$	—
Short-term debt		872,510			872,545			—			872,545			—
Long-term Federal Home Loan Bank advances		101,918			103,660			—			103,660			—
Subordinated borrowings		89,679			87,882			—			87,882			—
Derivative liabilities		11,964			11,964			—			11,964			—
Liabilities held for sale		24,834			24,834			—			24,834			—

Recurring

Quantitative information about the significant unobservable inputs within Level 3

Schedule of quantitative information about the significant unobservable inputs within Level 3

		Fair Value							Significant Unobservable Input
(In thousands)		September 30, 2014			Valuation Techniques		Unobservable Inputs		Value
Assets (Liabilities)
Trading Security		$	14,745		Discounted Cash Flow		Discount Rate		2.96		%
Trust Preferred Securities		2,296			Discounted Cash Flow		Discount Rate		13.25		%
							Credit Spread		10.18		%
Forward Commitments		77			Historical Trend		Closing Ratio		91.94		%
					Pricing Model		Origination Costs, per loan		$	2,500
Interest Rate Lock Commitment		383			Historical Trend		Closing Ratio		91.94		%
					Pricing Model		Origination Costs, per loan		$	2,500
Total		$	17,501

		Fair Value							Significant Unobservable Input
(In thousands)		December 31, 2013			Valuation Techniques		Unobservable Inputs		Value
Assets (Liabilities)
Trading Security		$	14,840		Discounted Cash Flow		Discount Rate		3.39		%
Trust Preferred Securities		1,964			Discounted Cash Flow		Discount Rate		13.17		%
							Credit Spread		9.45		%
Forward Commitments		19			Historical Trend		Closing Ratio		94.83		%
					Pricing Model		Origination Costs, per loan		$	2,500
Interest Rate Lock Commitment		258			Historical Trend		Closing Ratio		94.83		%
					Pricing Model		Origination Costs, per loan		$	2,500
Total		$	17,081

Non-recurring

Quantitative information about the significant unobservable inputs within Level 3

Schedule of quantitative information about the significant unobservable inputs within Level 3

		Fair Value
(in thousands)		September 30, 2014			Valuation Techniques		Unobservable Inputs		Range (Weighted Average) (a)
Assets
Impaired loans		$	3,561		Fair value of collateral		Loss severity		.10% to 100.0% (83.35%)
							Appraised value		$0 to $1,600.0 ($1,093.5)
Capitalized mortgage servicing rights		3,845			Discounted cash flow		Constant prepayment rate (CPR)		7.30% to 18.96% (9.03%)
							Discount rate		10.00% to 13.00% (10.44%)
Other real estate owned		4,854			Fair value of collateral		Appraised value		$57 to $1,950.0 ($974.4)
Total		$	12,260

(a)   Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

		Fair Value
(in thousands)		December 31, 2013			Valuation Techniques		Unobservable Inputs		Range (Weighted Average) (a)
Assets
Impaired loans		$	5,542		Fair value of collateral		Loss severity		4.2% to 100.0% (57.41%)
							Appraised value		$0 to $900.0 ($505.4)
Capitalized mortgage servicing rights		4,112			Discounted cash flow		Constant prepayment rate (CPR)		6.96% to 15.97% (8.58%)
							Discount rate		10.00% to 13.00% (10.34%)
Other real estate owned		2,995			Fair value of collateral		Appraised value		$0 to $774.0 ($413.4)
Total		$	12,649

(a)    Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

X

- Definition

Tabular disclosure of the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset and liabilities.

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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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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Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs.

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Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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