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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis 1 [Table Text Block]

Assets and liabilities measured at fair value on a recurring and non-recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below:

	March 31, 2014
	Fair Value Measurements
	Level 1			Level 2			Level 3			Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-		$	1,435,632		$	20,053		$	1,455,685
Money market investments		7,652			-			-			7,652
Derivative assets		-			3,306			12,555			15,861
Servicing assets		-			-			13,970			13,970
Derivative liabilities		-			(13,830)			(12,120)			(25,950)
	$	7,652		$	1,425,108		$	34,458		$	1,467,218
Non-recurring fair value measurements:
Impaired commercial loans	$	-		$	-		$	27,975		$	27,975
Foreclosed real estate		-			-			96,884			96,884
	$	-		$	-		$	124,859		$	124,859

	December 31, 2013
	Fair Value Measurements
	Level 1			Level 2			Level 3			Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-		$	1,568,745		$	19,680		$	1,588,425
Securities purchased under agreements to resell		-			60,000			-			60,000
Money market investments		6,967			-			-			6,967
Derivative assets		-			4,072			16,430			20,502
Servicing assets		-			-			13,801			13,801
Derivative liabilities		-			(14,937)			(15,736)			(30,673)
	$	6,967		$	1,617,880		$	34,175		$	1,659,022
Non-recurring fair value measurements:
Impaired commercial loans	$	-		$	-		$	28,353		$	28,353
Foreclosed real estate		-			-			90,024			90,024
	$	-		$	-		$	118,377		$	118,377

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Table Text Block]

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended March 31, 2014 and 2013:

	Quarter Ended March 31, 2014
					Derivative						Derivative
		Other			asset						liability
		debt			(S&P						(S&P
		securities			Purchased			Servicing			Embedded
Level 3 Instruments Only		available-for-sale			Options)			assets			Options)			Total
	(In thousands)
Balance at beginning of year		$	19,680		$	16,430		$	13,801		$	(15,736)		$	34,175
Gains (losses) included in earnings			-			(3,875)			-			3,373			(502)
Changes in fair value of investment securities available for sale included in other comprehensive income			373			-			-			-			373
New instruments acquired			-			-			563			-			563
Principal repayments			-			-			(196)			-			(196)
Amortization			-			-			-			243			243
Changes in fair value of servicing assets			-			-			(198)			-			(198)
Balance at end of year		$	20,053		$	12,555		$	13,970		$	(12,120)		$	34,458

	Quarter Ended March 31, 2013
	Investment securities
	available-for-sale
							Derivative						Derivative
							asset						liability
				Other			(S&P						(S&P
				debt			Purchased			Servicing			Embedded
Level 3 Instruments Only	CLOs			securities			Options)			assets			Options)			Total
Balance at beginning of period	$	27,280		$	10,016		$	11,367		$	10,776		$	(10,912)		$	48,527
Gains (losses) included in earnings		-			-			1,721			-			(1,707)			14
Changes in fair value of investment securities available for sale included in other comprehensive income		1,705			1			-			-			-			1,706
New instruments acquired		-			-			-			487			-			487
Principal repayments		-			-			-			(307)			-			(307)
Amortization		17			-			-			-			50			67
Changes in fair value of servicing assets		-			-			-			(314)			-			(314)
Balance at end of period	$	29,002		$	10,017		$	13,088		$	10,642		$	(12,569)		$	50,180

		March 31, 2014
		Fair Value			Valuation Technique		Unobservable Input		Range
		(In thousands)
Investment securities available-for-sale:
Other debt securities		$	20,053		Market comparable bonds		Indicative pricing		97.125% - 98.975%
							Option adjusted spread		683.7% - 1602.0%
							Yield to maturity		7.05% - 15.89%
							Spread to maturity		689.9% - 1579.0%
Derivative assets (S&P Purchased Options)		$	12,555		Option pricing model		Implied option volatility		22.887% - 53.615%
							Counterparty credit risk (based on 5-year credit default swap ("CDS") spread)		56.360% - 86.490%
Servicing assets		$	13,970		Cash flow valuation		Constant prepayment rate		5.60% - 10.08%
							Discount rate		10.00% - 12.00%
Derivative liability (S&P Embedded Options)		$	(12,120)		Option pricing model		Implied option volatility		22.887% - 53.615%
							Counterparty credit risk (based on 5-year CDS spread)		56.360% - 86.490%
Collateral dependant impaired loans		$	27,975		Fair value of property or collateral		Appraised value less disposition costs		21.30% - 28.30%

Available-for-sale Securities Classified As Level 3 [Table Text Block]

The table below presents a detail of investment securities available-for-sale classified as Level 3 at March 31, 2014:

March 31, 2014

Weighted

Amortized

Unrealized

Average

Principal

Type

Cost

Gains (Losses)

Fair Value

Yield

Protection

(In thousands)

Other debt securities

$

20,000

$

53

$

20,053

3.50%

N/A

Fair Value By Balance Sheet Grouping [Text Block]

The estimated fair value and carrying value of the Company's financial instruments at March 31, 2014 and December 31, 2013 is as follows:

	March 31,						December 31,
	2014						2013
	Fair			Carrying			Fair			Carrying
	Value			Value			Value			Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	624,636		$	624,636		$	621,269		$	621,269
Restricted cash		15,170			15,170			82,199			82,199
Level 2
Financial Assets:
Securities purchased under agreements to resell		-			-			60,000			60,000
Trading securities		1,910			1,910			1,869			1,869
Investment securities available-for-sale		1,435,632			1,435,632			1,568,745			1,568,745
Federal Home Loan Bank (FHLB) stock		24,430			24,430			24,450			24,450
Derivative assets		3,306			3,306			4,072			4,072
Derivative liabilities		13,830			13,830			14,937			14,937
Level 3
Financial Assets:
Investment securities available-for-sale		20,053			20,053			19,680			19,680
Total loans (including loans held-for-sale)
Non-covered loans, net		4,737,604			4,654,749			4,857,505			4,662,458
Covered loans, net		400,355			347,865			459,444			356,961
Derivative assets		12,555			12,555			16,430			16,430
FDIC shared-loss indemnification asset		106,170			166,194			152,965			189,240
Accrued interest receivable		18,969			18,969			18,734			18,734
Servicing assets		13,970			13,970			13,801			13,801
Financial Liabilities:
Deposits		5,247,226			5,300,992			5,409,540			5,383,265
Securities sold under agreements to repurchase		1,076,000			1,012,240			1,323,903			1,267,618
Advances from FHLB		340,805			335,689			335,324			336,143
Federal funds purchased		23,712			23,712			-			-
Term notes		3,583			3,708			3,638			3,663
Subordinated capital notes		87,240			100,404			99,316			100,010
Accrued expenses and other liabilities		140,037			140,037			144,424			144,424

X

- Definition

Tabular disclosure of available-for-sale securities classified at level 3 which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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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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Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis.

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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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