x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-1661606 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
425 Pike Street Seattle, Washington 98101 | ||
(Address of principal executive offices and zip code) | ||
(206) 624-7930 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | o |
Title of class: | at August 3, 2012 |
Common stock, $1.00 par value | 106,494,239 |
The Condensed Consolidated Financial Statements of Washington Federal, Inc. and Subsidiaries filed as a part of the report are as follows: | ||||
June 30, 2012 | September 30, 2011 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 963,766 | $ | 816,002 | |||
Available-for-sale securities, including encumbered securities of $964,338 and $965,927, at fair value | 3,626,115 | 3,255,144 | |||||
Held-to-maturity securities, including encumbered securities of $34,433 and $45,086, at amortized cost | 35,228 | 47,036 | |||||
Loans receivable, net | 7,616,205 | 7,935,877 | |||||
Covered loans, net | 302,681 | 382,183 | |||||
Interest receivable | 53,043 | 52,332 | |||||
Premises and equipment, net | 175,125 | 166,593 | |||||
Real estate held for sale | 107,457 | 159,829 | |||||
Covered real estate held for sale | 33,142 | 56,383 | |||||
FDIC indemnification asset | 97,380 | 101,634 | |||||
FHLB stock | 151,674 | 151,755 | |||||
Intangible assets, net | 256,431 | 256,271 | |||||
Federal and state income taxes | 2,514 | — | |||||
Other assets | 44,588 | 59,710 | |||||
$ | 13,465,349 | $ | 13,440,749 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities | |||||||
Customer accounts | |||||||
Transaction deposit accounts | $ | 2,868,442 | $ | 2,662,188 | |||
Time deposit accounts | 5,814,739 | 6,003,715 | |||||
8,683,181 | 8,665,903 | ||||||
FHLB advances | 1,957,146 | 1,962,066 | |||||
Other borrowings | 800,000 | 800,000 | |||||
Advance payments by borrowers for taxes and insurance | 24,313 | 39,548 | |||||
Federal and State income taxes | — | 1,535 | |||||
Accrued expenses and other liabilities | 67,428 | 65,164 | |||||
11,532,068 | 11,534,216 | ||||||
Stockholders’ equity | |||||||
Common stock, $1.00 par value, 300,000,000 shares authorized; 129,936,563 and 129,853,534 shares issued; 106,884,239 and 108,976,410 shares outstanding | 129,937 | 129,854 | |||||
Paid-in capital | 1,585,797 | 1,582,843 | |||||
Accumulated other comprehensive income, net of taxes | 62,736 | 85,789 | |||||
Treasury stock, at cost; 23,052,324 and 20,877,124 shares | (298,972 | ) | (268,665 | ) | |||
Retained earnings | 453,783 | 376,712 | |||||
1,933,281 | 1,906,533 | ||||||
$ | 13,465,349 | $ | 13,440,749 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
INTEREST INCOME | |||||||||||||||
Loans | $ | 118,115 | $ | 127,736 | $ | 369,366 | $ | 394,286 | |||||||
Mortgage-backed securities | 25,101 | 30,529 | 80,079 | 80,386 | |||||||||||
Investment securities and cash equivalents | 2,168 | 3,266 | 6,446 | 10,988 | |||||||||||
145,384 | 161,531 | 455,891 | 485,660 | ||||||||||||
INTEREST EXPENSE | |||||||||||||||
Customer accounts | 20,903 | 27,581 | 66,868 | 89,765 | |||||||||||
FHLB advances and other borrowings | 27,946 | 27,818 | 84,172 | 83,474 | |||||||||||
48,849 | 55,399 | 151,040 | 173,239 | ||||||||||||
Net interest income | 96,535 | 106,132 | 304,851 | 312,421 | |||||||||||
Provision for loan losses | 10,367 | 21,000 | 39,576 | 77,750 | |||||||||||
Net interest income after provision for loan losses | 86,168 | 85,132 | 265,275 | 234,671 | |||||||||||
OTHER INCOME | |||||||||||||||
Gain on sale of investments | — | — | — | 8,147 | |||||||||||
Other | 3,590 | 4,277 | 13,263 | 13,067 | |||||||||||
3,590 | 4,277 | 13,263 | 21,214 | ||||||||||||
OTHER EXPENSE | |||||||||||||||
Compensation and benefits | 19,281 | 18,471 | 58,141 | 54,018 | |||||||||||
Occupancy | 3,952 | 3,628 | 11,977 | 10,780 | |||||||||||
FDIC insurance premiums | 4,000 | 5,100 | 12,543 | 15,299 | |||||||||||
Other | 8,730 | 6,975 | 24,479 | 21,677 | |||||||||||
35,963 | 34,174 | 107,140 | 101,774 | ||||||||||||
Gain (loss) on real estate acquired through foreclosure, net | 1,146 | (8,171 | ) | (11,005 | ) | (28,369 | ) | ||||||||
Income before income taxes | 54,941 | 47,064 | 160,393 | 125,742 | |||||||||||
Income tax provision | 19,778 | 16,943 | 57,742 | 45,267 | |||||||||||
NET INCOME | $ | 35,163 | $ | 30,121 | $ | 102,651 | $ | 80,475 | |||||||
PER SHARE DATA | |||||||||||||||
Basic earnings | $ | 0.33 | $ | 0.27 | $ | 0.96 | $ | 0.72 | |||||||
Diluted earnings | 0.33 | 0.27 | 0.96 | 0.72 | |||||||||||
Cash dividends per share | 0.08 | 0.06 | 0.24 | 0.18 | |||||||||||
Basic weighted average number of shares outstanding | 106,877,112 | 111,158,254 | 107,308,948 | 111,962,708 | |||||||||||
Diluted weighted average number of shares outstanding, including dilutive stock options | 106,926,755 | 111,248,177 | 107,347,668 | 112,043,350 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 35,163 | $ | 30,121 | $ | 102,651 | $ | 80,475 | |||||||
Other comprehensive income (loss) net of tax: | |||||||||||||||
Net unrealized gain (loss) on available-for-sales securities, | |||||||||||||||
net of quarter-to-date tax of $1,422 and $14,154, and | |||||||||||||||
year-to-date tax of $13,394 and $4,498, respectively | (2,447 | ) | 24,360 | (23,053 | ) | (12,895 | ) | ||||||||
Reclassification adjustment of net gain from sale | |||||||||||||||
of available-for-sale securities included in net income | — | — | — | 5,153 | |||||||||||
Other comprehensive income (loss) | (2,447 | ) | 24,360 | (23,053 | ) | (7,742 | ) | ||||||||
Comprehensive income | $ | 32,716 | $ | 54,481 | $ | 79,598 | $ | 72,733 |
Nine Months Ended | |||||||
June 30, 2012 | June 30, 2011 | ||||||
(In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 102,651 | $ | 80,475 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Amortization (accretion) of fees, discounts, premiums and intangible assets, net | 40,397 | 32,456 | |||||
Cash received from FDIC under loss share | 276 | 20,977 | |||||
Depreciation | 5,625 | 4,950 | |||||
Stock option compensation expense | 900 | 815 | |||||
Provision for loan losses | 39,576 | 77,750 | |||||
Loss (gain) on real estate held for sale, net | (8,366 | ) | 20,222 | ||||
Increase in accrued interest receivable | (460 | ) | (2,853 | ) | |||
Increase in FDIC loss share receivable | (5,742 | ) | (3,143 | ) | |||
Increase in income taxes payable | 9,345 | 3,575 | |||||
Decrease in other assets | 15,908 | 11,671 | |||||
Increase (decrease) in accrued expenses and other liabilities | 1,229 | (25,175 | ) | ||||
Net cash provided by operating activities | 201,339 | 221,720 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net principal collections (loan originations) | 372,802 | 336,426 | |||||
FHLB stock redemptions | 1,830 | — | |||||
Available-for-sale securities purchased | (1,499,227 | ) | (1,279,983 | ) | |||
Principal payments and maturities of available-for-sale securities | 1,065,254 | 485,597 | |||||
Available-for-sale securities sold | 3,500 | 131,361 | |||||
Principal payments and maturities of held-to-maturity securities | 11,899 | 31,383 | |||||
Net cash received from acquisition | 50,576 | — | |||||
Proceeds from sales of real estate held for sale | 138,689 | 63,575 | |||||
Proceeds from sales of covered REO | 28,343 | — | |||||
Increase in intangible assets | (1,061 | ) | — | ||||
Premises and equipment purchased | (14,157 | ) | (7,695 | ) | |||
Net cash provided (used) by investing activities | 158,448 | (239,336 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net decrease in customer accounts | (118,505 | ) | (138,850 | ) | |||
Net decrease in borrowings | (22,595 | ) | (2,551 | ) | |||
Proceeds from exercise of common stock options | 199 | 1,045 | |||||
Dividends paid on common stock | (25,580 | ) | (20,232 | ) | |||
Treasury stock purchased | (30,307 | ) | (36,620 | ) | |||
Decrease in advance payments by borrowers for taxes and insurance | (15,235 | ) | (15,638 | ) | |||
Net cash used by financing activities | (212,023 | ) | (212,846 | ) | |||
Increase (decrease) in cash and cash equivalents | 147,764 | (230,462 | ) | ||||
Cash and cash equivalents at beginning of period | 816,002 | 888,622 | |||||
Cash and cash equivalents at end of period | $ | 963,766 | $ | 658,160 |
Nine Months Ended | |||||||
June 30, 2012 | June 30, 2011 | ||||||
(In thousands) | |||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Non-cash investing activities | |||||||
Non-covered real estate acquired through foreclosure | $ | 124,482 | $ | 64,873 | |||
Covered real estate acquired through foreclosure | 13,094 | 46,008 | |||||
Cash paid during the period for | |||||||
Interest | 151,805 | 174,511 | |||||
Income taxes | 48,331 | 41,627 | |||||
The following summarizes the non-cash activities related to acquisitions | |||||||
Fair value of assets acquired | $ | 124,594 | $ | — | |||
Fair value of liabilities assumed | (154,493 | ) | — | ||||
Net fair value of liabilities assumed | (29,899 | ) | — | ||||
Received from | Fair Value | Recorded by | |||||||||
FDIC | Adjustments | WAFD | |||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 20,677 | $ | — | $ | 20,677 | |||||
Available-for-sale securities | 3,500 | — | 3,500 | ||||||||
FHLB & FRB stock | 1,744 | 4 | 1,748 | ||||||||
Loans receivable, net | 143,328 | (49,637 | ) | 93,691 | |||||||
Interest receivable | 251 | — | 251 | ||||||||
Property and equipment, net | — | — | — | ||||||||
Real estate held for sale | 7,149 | (3,462 | ) | 3,687 | |||||||
Other assets | 79 | 961 | 1,040 | ||||||||
Total Assets | 176,728 | (52,134 | ) | 124,594 | |||||||
Liabilities: | |||||||||||
Customer accounts | 135,783 | — | 135,783 | ||||||||
FHLB advances | 17,666 | 9 | 17,675 | ||||||||
Other liabilities | 40 | 995 | 1,035 | ||||||||
Total Liabilities | 153,489 | 1,004 | 154,493 | ||||||||
Net assets (liabilities) acquired | $ | 23,239 | $ | (53,138 | ) | $ | (29,899 | ) | |||
Aggregate fair value adjustments | $ | (53,138 | ) | ||||||||
Net liabilities acquired | $ | (29,899 | ) | ||||||||
Cash received from the FDIC | 29,899 |
June 30, 2012 | September 30, 2011 | ||||||||||||
(In thousands) | |||||||||||||
Non-acquired loans | |||||||||||||
Single-family residential | $ | 5,904,805 | 74.0 | % | $ | 6,218,878 | 74.9 | % | |||||
Construction - speculative | 130,741 | 1.6 | 140,459 | 1.7 | |||||||||
Construction - custom | 210,488 | 2.6 | 279,851 | 3.4 | |||||||||
Land - acquisition & development | 135,392 | 1.7 | 200,692 | 2.4 | |||||||||
Land - consumer lot loans | 145,129 | 1.8 | 163,146 | 2.0 | |||||||||
Multi-family | 692,763 | 8.7 | 700,673 | 8.4 | |||||||||
Commercial real estate | 310,588 | 3.9 | 303,442 | 3.7 | |||||||||
Commercial & industrial | 148,577 | 1.9 | 109,332 | 1.3 | |||||||||
HELOC | 113,559 | 1.4 | 115,092 | 1.4 | |||||||||
Consumer | 68,202 | 0.9 | 67,509 | 0.8 | |||||||||
Total non-acquired loans | 7,860,244 | 98.5 | 8,299,074 | 100 | |||||||||
Credit-impaired acquired loans | |||||||||||||
Single-family residential | 343 | — | — | — | |||||||||
Construction - speculative | 1,889 | — | — | — | |||||||||
Construction - custom | — | — | — | — | |||||||||
Land - acquisition & development | 4,211 | 0.1 | — | — | |||||||||
Land - consumer lot loans | — | — | — | — | |||||||||
Multi-family | 1,074 | — | — | — | |||||||||
Commercial real estate | 91,006 | 1.1 | — | — | |||||||||
Commercial & industrial | 5,100 | 0.1 | — | — | |||||||||
HELOC | 15,037 | 0.2 | — | — | |||||||||
Consumer | 115 | — | — | — | |||||||||
Total credit-impaired acquired loans | 118,775 | 1.5 | — | — | |||||||||
Total loans | |||||||||||||
Single-family residential | 5,905,148 | 74.0 | 6,218,878 | 74.9 | |||||||||
Construction - speculative | 132,630 | 1.7 | 140,459 | 1.7 | |||||||||
Construction - custom | 210,488 | 2.6 | 279,851 | 3.4 | |||||||||
Land - acquisition & development | 139,603 | 1.7 | 200,692 | 2.4 | |||||||||
Land - consumer lot loans | 145,129 | 1.8 | 163,146 | 2 | |||||||||
Multi-family | 693,837 | 8.7 | 700,673 | 8.4 | |||||||||
Commercial real estate | 401,594 | 5.1 | 303,442 | 3.7 | |||||||||
Commercial & industrial | 153,677 | 1.9 | 109,332 | 1.3 | |||||||||
HELOC | 128,596 | 1.6 | 115,092 | 1.4 | |||||||||
Consumer | 68,317 | 0.9 | 67,509 | 0.8 | |||||||||
Total loans | 7,979,019 | 100 | % | 8,299,074 | 100 | % | |||||||
Less: | |||||||||||||
Allowance for probable losses | 137,951 | 157,160 | |||||||||||
Loans in process | 155,051 | 170,229 | |||||||||||
Discount on acquired loans | 35,200 | — | |||||||||||
Deferred net origination fees | 34,612 | 35,808 | |||||||||||
362,814 | 363,197 | ||||||||||||
$ | 7,616,205 | $ | 7,935,877 |
Credit impaired acquired loans | |||||||
Accretable Yield | Carrying Amount of Loans | ||||||
(In thousands) | |||||||
Balance as of October 1, 2011 | $ | — | $ | — | |||
Additions | 21,606 | 92,981 | |||||
Accretion | (3,278 | ) | 3,278 | ||||
Transfers to REO | — | — | |||||
Payments received, net | — | (12,714 | ) | ||||
Balance as of June 30, 2012 | $ | 18,328 | $ | 83,545 |
June 30, 2012 | September 30, 2011 | ||||||||||||
(In thousands) | |||||||||||||
Non-accrual loans: | |||||||||||||
Single-family residential | $ | 129,295 | 75.6 | % | $ | 126,624 | 60.3 | % | |||||
Construction - speculative | 12,424 | 7.3 | 15,383 | 7.3 | |||||||||
Construction - custom | 539 | 0.3 | 635 | 0.3 | |||||||||
Land - acquisition & development | 12,514 | 7.3 | 37,339 | 17.7 | |||||||||
Land - consumer lot loans | 5,844 | 3.4 | 8,843 | 4.2 | |||||||||
Multi-family | 3,405 | 2.0 | 7,664 | 3.6 | |||||||||
Commercial real estate | 6,285 | 3.7 | 11,380 | 5.4 | |||||||||
Commercial & industrial | — | — | 1,679 | 0.8 | |||||||||
HELOC | 388 | 0.2 | 481 | 0.2 | |||||||||
Consumer | 339 | 0.2 | 437 | 0.2 | |||||||||
Total non-accrual loans | $ | 171,033 | 100 | % | $ | 210,465 | 100 | % |
June 30, 2012 | Amount of Loans | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loan | Net of LIP & Chg.-Offs | Current | 30 | 60 | 90 | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-acquired loans | ||||||||||||||||||||||||||
Single-Family Residential | $ | 5,902,633 | $ | 5,736,969 | $ | 33,571 | $ | 19,127 | $ | 112,966 | $ | 165,664 | 2.81 | % | ||||||||||||
Construction - Speculative | 94,930 | 87,134 | 899 | 509 | 6,388 | 7,796 | 8.21 | |||||||||||||||||||
Construction - Custom | 123,965 | 123,382 | 1 | 43 | 539 | 583 | 0.47 | |||||||||||||||||||
Land - Acquisition & Development | 127,953 | 114,563 | 234 | 3,226 | 9,930 | 13,390 | 10.46 | |||||||||||||||||||
Land - Consumer Lot Loans | 145,037 | 136,545 | 1,753 | 895 | 5,844 | 8,492 | 5.86 | |||||||||||||||||||
Multi-Family | 675,334 | 670,859 | 569 | 594 | 3,312 | 4,475 | 0.66 | |||||||||||||||||||
Commercial Real Estate | 305,046 | 300,668 | 334 | — | 4,044 | 4,378 | 1.44 | |||||||||||||||||||
Commercial & Industrial | 148,565 | 148,546 | 9 | 10 | — | 19 | 0.01 | |||||||||||||||||||
HELOC | 113,559 | 112,824 | 29 | 318 | 388 | 735 | 0.65 | |||||||||||||||||||
Consumer | 68,202 | 66,222 | 1,117 | 524 | 339 | 1,980 | 2.90 | |||||||||||||||||||
Total non-acquired loans | 7,705,224 | 7,497,712 | 38,516 | 25,246 | 143,750 | 207,512 | 2.69 | |||||||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||||||||
Single-Family Residential | 343 | — | — | 343 | — | 343 | 100.00 | |||||||||||||||||||
Construction - Speculative | 1,889 | 1,889 | — | — | — | — | — | |||||||||||||||||||
Construction - Custom | — | — | — | — | — | — | — | |||||||||||||||||||
Land - Acquisition & Development | 4,210 | 3,685 | — | — | 525 | 525 | 12.47 | |||||||||||||||||||
Land - Consumer Lot Loans | — | — | — | — | — | — | — | |||||||||||||||||||
Multi-Family | 1,074 | 1,074 | — | — | — | — | — | |||||||||||||||||||
Commercial Real Estate | 90,977 | 80,860 | 2,072 | 1,698 | 6,347 | 10,117 | 11.12 | |||||||||||||||||||
Commercial & Industrial | 5,099 | 4,244 | 125 | 730 | — | 855 | 16.77 | |||||||||||||||||||
HELOC | 15,037 | 13,912 | 1,125 | — | — | 1,125 | 7.48 | |||||||||||||||||||
Consumer | 115 | 69 | 5 | 40 | 1 | 46 | 40.00 | |||||||||||||||||||
Total credit-impaired acquired loans | 118,744 | 105,733 | 3,327 | 2,811 | 6,873 | 13,011 | 10.96 | |||||||||||||||||||
Total loans | $ | 7,823,968 | $ | 7,603,445 | $ | 41,843 | $ | 28,057 | $ | 150,623 | $ | 220,523 | 2.82 |
September 30, 2011 | Amount of Loans | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loan | Net of LIP & Chg.-Offs | Current | 30 | 60 | 90 | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Single-Family Residential | $ | 6,217,670 | $ | 6,015,464 | $ | 54,140 | $ | 21,985 | $ | 126,082 | $ | 202,207 | 3.25 | % | ||||||||||||
Construction - Speculative | 115,409 | 106,843 | 330 | — | 8,236 | 8,566 | 7.42 | |||||||||||||||||||
Construction - Custom | 147,764 | 147,129 | — | — | 635 | 635 | 0.43 | |||||||||||||||||||
Land - Acquisition & Development | 193,613 | 159,357 | 679 | — | 33,577 | 34,256 | 17.69 | |||||||||||||||||||
Land - Consumer Lot Loans | 163,146 | 151,849 | 1,163 | 1,291 | 8,843 | 11,297 | 6.92 | |||||||||||||||||||
Multi-Family | 699,340 | 690,765 | — | 1,202 | 7,373 | 8,575 | 1.23 | |||||||||||||||||||
Commercial Real Estate | 300,307 | 292,015 | 1,016 | — | 7,276 | 8,292 | 2.76 | |||||||||||||||||||
Commercial & Industrial | 108,995 | 106,708 | 55 | 553 | 1,679 | 2,287 | 2.10 | |||||||||||||||||||
HELOC | 115,092 | 114,059 | 452 | 100 | 481 | 1,033 | 0.90 | |||||||||||||||||||
Consumer | 67,509 | 65,434 | 1,191 | 446 | 437 | 2,074 | 3.07 | |||||||||||||||||||
$ | 8,128,845 | $ | 7,849,623 | $ | 59,026 | $ | 25,577 | $ | 194,619 | $ | 279,222 | 3.43 |
Quarter Ended June 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||
Single-Family Residential | 199 | $ | 43,104 | $ | 43,104 | 155 | $ | 39,362 | $ | 39,362 | |||||||||||
Construction - Speculative | — | — | — | 1 | 337 | 337 | |||||||||||||||
Construction - Custom | 1 | 1,196 | 1,196 | — | — | — | |||||||||||||||
Land - Acquisition & Development | — | — | — | 3 | 4,427 | 4,427 | |||||||||||||||
Land - Consumer Lot Loans | 8 | 965 | 965 | 9 | 1,335 | 1,335 | |||||||||||||||
Multi-Family | 1 | 389 | 389 | 1 | 985 | 985 | |||||||||||||||
Commercial Real Estate | 2 | 5,572 | 5,572 | — | — | — | |||||||||||||||
Commercial & Industrial | — | — | — | — | — | — | |||||||||||||||
HELOC | 2 | 113 | 113 | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||
213 | $ | 51,339 | $ | 51,339 | 169 | $ | 46,446 | $ | 46,446 |
Nine Months Ended June 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||
Single-Family Residential | 681 | $ | 159,651 | $ | 159,651 | 481 | $ | 131,018 | $ | 131,018 | |||||||||||
Construction - Speculative | 22 | 6,253 | 6,253 | 2 | 529 | 529 | |||||||||||||||
Construction - Custom | 1 | 1,196 | 1,196 | — | — | — | |||||||||||||||
Land - Acquisition & Development | 26 | 5,565 | 5,565 | 3 | 4,427 | 4,427 | |||||||||||||||
Land - Consumer Lot Loans | 30 | 3,906 | 3,906 | 34 | 5,175 | 5,175 | |||||||||||||||
Multi-Family | 3 | 2,257 | 2,257 | 7 | 9,146 | 9,146 | |||||||||||||||
Commercial Real Estate | 3 | 5,881 | 5,881 | — | — | — | |||||||||||||||
Commercial & Industrial | 1 | 2 | 2 | — | — | — | |||||||||||||||
HELOC | 2 | 113 | 113 | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||
769 | $ | 184,824 | $ | 184,824 | 527 | $ | 150,295 | $ | 150,295 |
Quarter Ended June 30, | |||||||||||||
2012 | 2011 | ||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Troubled Debt Restructurings That Subsequently Defaulted: | |||||||||||||
Single-Family Residential | 30 | $ | 8,225 | 10 | $ | 3,295 | |||||||
Construction - Speculative | — | — | — | — | |||||||||
Construction - Custom | — | — | — | — | |||||||||
Land - Acquisition & Development | — | — | — | — | |||||||||
Land - Consumer Lot Loans | — | — | 3 | 404 | |||||||||
Multi-Family | — | — | 1 | 3,589 | |||||||||
Commercial Real Estate | — | — | — | — | |||||||||
Commercial & Industrial | — | — | — | — | |||||||||
HELOC | — | — | — | — | |||||||||
Consumer | — | — | — | — | |||||||||
30 | $ | 8,225 | 14 | $ | 7,288 |
Nine Months Ended June 30, | |||||||||||||
2012 | 2011 | ||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Troubled Debt Restructurings That Subsequently Defaulted: | |||||||||||||
Single-Family Residential | 97 | $ | 21,687 | 29 | $ | 7,783 | |||||||
Construction - Speculative | — | — | — | — | |||||||||
Construction - Custom | — | — | — | — | |||||||||
Land - Acquisition & Development | — | — | — | — | |||||||||
Land - Consumer Lot Loans | 4 | 603 | 3 | 404 | |||||||||
Multi-Family | — | — | 1 | 3,589 | |||||||||
Commercial Real Estate | — | — | — | — | |||||||||
Commercial & Industrial | — | — | — | — | |||||||||
HELOC | — | — | — | — | |||||||||
Consumer | — | — | — | — | |||||||||
101 | $ | 22,290 | 33 | $ | 11,776 |
• | Pass – the credit does not meet one of the definitions below. |
• | Special mention – A special mention credit is considered to be currently protected from loss but is potentially weak. No loss of principal or interest is foreseen; however, proper supervision and Management attention is required to deter further deterioration in the credit. Assets in this category constitute some undue and unwarranted credit risk but not to the point of justifying a risk rating of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. |
• | Substandard – A substandard credit is an unacceptable credit. Additionally, repayment in the normal course is in jeopardy due to the existence of one or more well defined weaknesses. In these situations, loss of principal is likely if the weakness is not corrected. A substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified will have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets risk rated substandard. |
• | Doubtful – A credit classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The probability of loss is high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. |
• | Loss – Credits classified loss are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. Losses should be taken in the period in which they are identified as uncollectible. Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection. |
Quarter Ended June 30, 2012 | Beginning Allowance | Charge-offs | Recoveries | Provision & Transfers | Ending Allowance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Single-family residential | $ | 83,875 | $ | (14,134 | ) | $ | 2,240 | $ | 9,363 | $ | 81,344 | ||||||||
Construction - speculative | 15,943 | (2,288 | ) | 86 | (888 | ) | 12,853 | ||||||||||||
Construction - custom | 384 | — | — | (40 | ) | 344 | |||||||||||||
Land - acquisition & development | 19,929 | (1,519 | ) | 533 | (1,549 | ) | 17,394 | ||||||||||||
Land - consumer lot loans | 7,712 | (670 | ) | — | 295 | 7,337 | |||||||||||||
Multi-family | 4,837 | — | 279 | (278 | ) | 4,838 | |||||||||||||
Commercial real estate | 2,869 | (206 | ) | 148 | 337 | 3,148 | |||||||||||||
Commercial & industrial | 4,427 | (69 | ) | 70 | 2,535 | 6,963 | |||||||||||||
HELOC | 969 | (147 | ) | 6 | 144 | 972 | |||||||||||||
Consumer | 2,874 | (955 | ) | 391 | 448 | 2,758 | |||||||||||||
$ | 143,819 | $ | (19,988 | ) | $ | 3,753 | $ | 10,367 | $ | 137,951 |
Fiscal Year Ended September 30, 2011 | Beginning Allowance | Charge-offs | Recoveries | Provision & Transfers | Ending Allowance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Single-family residential | $ | 47,160 | $ | (38,465 | ) | $ | 3,072 | $ | 71,540 | $ | 83,307 | ||||||||
Construction - speculative | 26,346 | (13,197 | ) | 2,143 | (1,464 | ) | 13,828 | ||||||||||||
Construction - custom | 770 | (237 | ) | — | 90 | 623 | |||||||||||||
Land - acquisition & development | 61,637 | (39,797 | ) | 2,271 | 8,608 | 32,719 | |||||||||||||
Land - consumer lot loans | 4,793 | (4,196 | ) | — | 4,923 | 5,520 | |||||||||||||
Multi-family | 5,050 | (1,950 | ) | 71 | 4,452 | 7,623 | |||||||||||||
Commercial real estate | 3,165 | (1,593 | ) | 328 | 2,431 | 4,331 | |||||||||||||
Commercial & industrial | 6,193 | (4,733 | ) | 1,925 | 1,714 | 5,099 | |||||||||||||
HELOC | 586 | (939 | ) | 185 | 1,307 | 1,139 | |||||||||||||
Consumer | 7,394 | (4,602 | ) | 1,429 | (1,250 | ) | 2,971 | ||||||||||||
$ | 163,094 | $ | (109,709 | ) | $ | 11,424 | $ | 92,351 | $ | 157,160 |
June 30, 2012 | Loans Collectively Evaluated for Impairment | Loans Individually Evaluated for Impairment | |||||||||||||||||||
General Reserve Allocation | Gross Loans Subject to General Reserve (1) | Ratio | Specific Reserve Allocation | Gross Loans Subject to Specific Reserve (1) | Ratio | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Single-family residential | $ | 80,437 | $ | 5,823,964 | 1.4 | % | $ | 907 | $ | 80,842 | 1.1 | % | |||||||||
Construction - speculative | 8,615 | 98,980 | 8.7 | 4,238 | 31,760 | 13.3 | |||||||||||||||
Construction - custom | 344 | 210,488 | 0.2 | — | — | — | |||||||||||||||
Land - acquisition & development | 5,777 | 40,803 | 14.2 | 11,617 | 94,589 | 12.3 | |||||||||||||||
Land - consumer lot loans | 6,447 | 142,712 | 4.5 | 890 | 2,417 | 36.8 | |||||||||||||||
Multi-family | 2,728 | 671,837 | 0.4 | 2,110 | 20,927 | 10.1 | |||||||||||||||
Commercial real estate | 1,136 | 286,779 | 0.4 | 2,012 | 23,808 | 8.5 | |||||||||||||||
Commercial & industrial | 6,950 | 147,394 | 4.7 | 13 | 1,183 | 1.1 | |||||||||||||||
HELOC | 972 | 113,559 | 0.9 | — | — | — | |||||||||||||||
Consumer | 2,758 | 68,202 | 4.0 | — | — | — | |||||||||||||||
$ | 116,164 | $ | 7,604,718 | 1.5 | $ | 21,787 | $ | 255,526 | 8.5 |
(1) | Excludes acquired and covered loans |
September 30, 2011 | Loans Collectively Evaluated for Impairment | Loans Individually Evaluated for Impairment | |||||||||||||||||||
General Reserve Allocation | Gross Loans Subject to General Reserve (1) | Ratio | Specific Reserve Allocation | Gross Loans Subject to Specific Reserve (1) | Ratio | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Single-family residential | $ | 77,441 | $ | 6,186,322 | 1.3 | % | $ | 5,866 | $ | 32,556 | 18.0 | % | |||||||||
Construction - speculative | 6,969 | 89,986 | 7.7 | 6,859 | 50,473 | 13.6 | |||||||||||||||
Construction - custom | 623 | 279,851 | 0.2 | — | — | — | |||||||||||||||
Land - acquisition & development | 10,489 | 61,277 | 17.1 | 22,230 | 139,415 | 15.9 | |||||||||||||||
Land - consumer lot loans | 4,385 | 160,906 | 2.7 | 1,135 | 2,240 | 50.7 | |||||||||||||||
Multi-family | 3,443 | 679,823 | 0.5 | 4,180 | 20,850 | 20.0 | |||||||||||||||
Commercial real estate | 2,730 | 268,906 | 1.0 | 1,601 | 34,536 | 4.6 | |||||||||||||||
Commercial & industrial | 5,058 | 106,406 | 4.8 | 41 | 2,926 | 1.4 | |||||||||||||||
HELOC | 1,139 | 115,092 | 1.0 | — | — | — | |||||||||||||||
Consumer | 2,971 | 67,509 | 4.4 | — | — | — | |||||||||||||||
$ | 115,248 | $ | 8,016,078 | 1.4 | $ | 41,912 | $ | 282,996 | 14.8 |
(1) | Excludes covered loans |
June 30, 2012 | Internally Assigned Grade | Total | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | Gross Loans | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Non-acquired loans | |||||||||||||||||||||||
Single-family residential | $ | 5,714,905 | $ | 299 | $ | 189,601 | $ | — | $ | — | $ | 5,904,805 | |||||||||||
Construction - speculative | 80,542 | 6,695 | 43,504 | — | — | 130,741 | |||||||||||||||||
Construction - custom | 210,488 | — | — | — | — | 210,488 | |||||||||||||||||
Land - acquisition & development | 42,907 | 21,935 | 70,550 | — | — | 135,392 | |||||||||||||||||
Land - consumer lot loans | 144,658 | 356 | 115 | — | — | 145,129 | |||||||||||||||||
Multi-family | 660,948 | 7,574 | 24,241 | — | — | 692,763 | |||||||||||||||||
Commercial real estate | 271,050 | 4,608 | 34,930 | — | — | 310,588 | |||||||||||||||||
Commercial & industrial | 146,075 | 352 | 2,150 | — | — | 148,577 | |||||||||||||||||
HELOC | 113,559 | — | — | — | — | 113,559 | |||||||||||||||||
Consumer | 67,301 | 528 | 373 | — | — | 68,202 | |||||||||||||||||
7,452,433 | 42,347 | 365,464 | — | — | 7,860,244 | ||||||||||||||||||
Credit impaired acquired loans | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 2,514 | — | 3,587 | — | — | 6,101 | |||||||||||||||||
Pool 2 - Single-family residential | 343 | — | — | — | — | 343 | |||||||||||||||||
Pool 3 - Multi-family | — | — | 1,074 | — | — | 1,074 | |||||||||||||||||
Pool 4 - HELOC & other consumer | 15,151 | — | — | — | — | 15,151 | |||||||||||||||||
Pool 5 - Commercial real estate | 52,223 | 5,493 | 32,257 | 1,033 | — | 91,006 | |||||||||||||||||
Pool 6 - Commercial & industrial | 2,548 | 805 | 1,343 | 404 | — | 5,100 | |||||||||||||||||
Total credit impaired acquired loans | 72,779 | 6,298 | 38,261 | 1,437 | — | 118,775 | |||||||||||||||||
Total gross loans | $ | 7,525,212 | $ | 48,645 | $ | 403,725 | $ | 1,437 | $ | — | $ | 7,979,019 | |||||||||||
Total grade as a % of total gross loans | 94.3 | % | 0.6 | % | 5.1 | % | — | % | — | % |
September 30, 2011 | Internally Assigned Grade | Total | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | Gross Loans | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Single-family residential | $ | 6,047,279 | $ | — | $ | 171,599 | $ | — | $ | — | $ | 6,218,878 | |||||||||||
Construction - speculative | 56,485 | 21,035 | 62,939 | — | — | 140,459 | |||||||||||||||||
Construction - custom | 279,851 | — | — | — | — | 279,851 | |||||||||||||||||
Land - acquisition & development | 44,888 | 44,840 | 110,964 | — | — | 200,692 | |||||||||||||||||
Land - consumer lot loans | 162,670 | — | 476 | — | — | 163,146 | |||||||||||||||||
Multi-family | 663,582 | 4,629 | 32,462 | — | — | 700,673 | |||||||||||||||||
Commercial real estate | 264,083 | 4,125 | 35,234 | — | — | 303,442 | |||||||||||||||||
Commercial & industrial | 104,171 | 1,128 | 1,407 | 2,245 | 381 | 109,332 | |||||||||||||||||
HELOC | 115,092 | — | — | — | — | 115,092 | |||||||||||||||||
Consumer | 66,512 | 528 | 469 | — | — | 67,509 | |||||||||||||||||
$ | 7,804,613 | $ | 76,285 | $ | 415,550 | $ | 2,245 | $ | 381 | $ | 8,299,074 | ||||||||||||
Total grade as a % of total gross loans | 94.1 | % | 0.9 | % | 5.0 | % | — | % | — | % |
June 30, 2012 | Performing Loans | Non-Performing Loans | |||||||||||
Amount | % of Total Gross Loans | Amount | % of Total Gross Loans | ||||||||||
(In thousands) | |||||||||||||
Single-family residential | $ | 5,775,510 | 97.8 | % | $ | 129,295 | 2.2 | % | |||||
Construction - speculative | 118,317 | 90.5 | 12,424 | 9.5 | |||||||||
Construction - custom | 209,949 | 99.7 | 539 | 0.3 | |||||||||
Land - acquisition & development | 122,878 | 90.8 | 12,514 | 9.2 | |||||||||
Land - consumer lot loans | 139,285 | 96.0 | 5,844 | 4.0 | |||||||||
Multi-family | 689,358 | 99.5 | 3,405 | 0.5 | |||||||||
Commercial real estate | 304,303 | 98.0 | 6,285 | 2.0 | |||||||||
Commercial & industrial | 148,577 | 100.0 | — | — | |||||||||
HELOC | 113,171 | 99.7 | 388 | 0.3 | |||||||||
Consumer | 67,863 | 99.5 | 339 | 0.5 | |||||||||
$ | 7,689,211 | 97.8 | $ | 171,033 | 2.2 |
September 30, 2011 | Performing Loans | Non-Performing Loans | |||||||||||
Amount | % of Total Gross Loans | Amount | % of Total Gross Loans | ||||||||||
(In thousands) | |||||||||||||
Single-family residential | $ | 6,092,254 | 98.0 | % | $ | 126,624 | 2.0 | % | |||||
Construction - speculative | 125,076 | 89.0 | 15,383 | 11.0 | |||||||||
Construction - custom | 279,216 | 99.8 | 635 | 0.2 | |||||||||
Land - acquisition & development | 163,353 | 81.4 | 37,339 | 18.6 | |||||||||
Land - consumer lot loans | 154,303 | 94.6 | 8,843 | 5.4 | |||||||||
Multi-family | 693,009 | 98.9 | 7,664 | 1.1 | |||||||||
Commercial real estate | 292,062 | 96.2 | 11,380 | 3.8 | |||||||||
Commercial & industrial | 107,653 | 98.5 | 1,679 | 1.5 | |||||||||
HELOC | 114,611 | 99.6 | 481 | 0.4 | |||||||||
Consumer | 67,072 | 99.4 | 437 | 0.6 | |||||||||
$ | 8,088,609 | 97.5 | % | $ | 210,465 | 2.5 | % |
Average Recorded Investment | |||||||||||||||||||
June 30, 2012 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Quarter Ended June 30, 2012 | Nine Months Ended June 30, 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Single-family residential | $ | 76,505 | $ | 94,492 | $ | — | $ | 60,077 | $ | 33,103 | |||||||||
Construction - speculative | 14,041 | 16,819 | — | 15,463 | 13,697 | ||||||||||||||
Construction - custom | — | 157 | — | — | — | ||||||||||||||
Land - acquisition & development | 16,213 | 35,449 | — | 16,422 | 18,025 | ||||||||||||||
Land - consumer lot loans | 794 | 1,000 | — | 438 | 219 | ||||||||||||||
Multi-family | 8,276 | 8,484 | — | 7,889 | 6,638 | ||||||||||||||
Commercial real estate | 26,038 | 39,965 | — | 14,982 | 7,962 | ||||||||||||||
Commercial & industrial | 1,568 | 13,265 | — | 885 | 443 | ||||||||||||||
HELOC | 90 | 3,018 | — | 83 | 42 | ||||||||||||||
Consumer | — | 60 | — | — | — | ||||||||||||||
143,525 | 212,709 | — | 116,239 | 80,129 | |||||||||||||||
With an allowance recorded: | |||||||||||||||||||
Single-family residential | 345,103 | 345,103 | 25,796 | 334,249 | 333,820 | ||||||||||||||
Construction - speculative | 14,602 | 14,602 | 4,238 | 14,600 | 14,519 | ||||||||||||||
Construction - custom | — | — | — | — | — | ||||||||||||||
Land - acquisition & development | 26,985 | 26,984 | 11,617 | 27,232 | 27,966 | ||||||||||||||
Land - consumer lot loans | 1,622 | 1,622 | 890 | 811 | 406 | ||||||||||||||
Multi-family | 11,312 | 11,312 | 2,110 | 11,332 | 11,367 | ||||||||||||||
Commercial real estate | 7,269 | 7,269 | 2,012 | 6,912 | 6,656 | ||||||||||||||
Commercial & industrial | 13 | 13 | 13 | 18 | 28 | ||||||||||||||
HELOC | — | — | — | — | — | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
406,906 | 406,905 | 46,676 | (1) | 395,154 | 394,762 | ||||||||||||||
Total: | |||||||||||||||||||
Single-family residential | 421,608 | 439,595 | 25,796 | 394,326 | 366,923 | ||||||||||||||
Construction - speculative | 28,643 | 31,421 | 4,238 | 30,063 | 28,216 | ||||||||||||||
Construction - custom | — | 157 | — | — | — | ||||||||||||||
Land - acquisition & development | 43,198 | 62,433 | 11,617 | 43,654 | 45,991 | ||||||||||||||
Land - consumer lot loans | 2,416 | 2,622 | 890 | 1,249 | 625 | ||||||||||||||
Multi-family | 19,588 | 19,796 | 2,110 | 19,221 | 18,005 | ||||||||||||||
Commercial real estate | 33,307 | 47,234 | 2,012 | 21,894 | 14,618 | ||||||||||||||
Commercial & industrial | 1,581 | $ | 13,278 | 13 | 903 | 471 | |||||||||||||
HELOC | 90 | 3,018 | — | 83 | 42 | ||||||||||||||
Consumer | — | 60 | — | — | — | ||||||||||||||
$ | 550,431 | $ | 619,614 | $ | 46,676 | (1) | $ | 511,393 | $ | 474,891 |
September 30, 2011 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | |||||||||||
(In thousands) | |||||||||||||||
With no related allowance recorded: | |||||||||||||||
Single-family residential | $ | 5,597 | $ | 9,575 | $ | — | $ | 5,935 | |||||||
Construction - speculative | 8,286 | 11,026 | — | 7,374 | |||||||||||
Construction - custom | — | — | — | — | |||||||||||
Land - acquisition & development | 22,436 | 50,970 | — | 28,168 | |||||||||||
Land - consumer lot loans | — | — | — | — | |||||||||||
Multi-family | 3,233 | 4,508 | — | 4,058 | |||||||||||
Commercial real estate | 3,462 | 3,963 | — | 2,141 | |||||||||||
Commercial & industrial | — | — | — | — | |||||||||||
HELOC | — | — | — | — | |||||||||||
Consumer | — | — | — | — | |||||||||||
43,014 | 80,042 | — | 47,676 | ||||||||||||
With an allowance recorded: | |||||||||||||||
Single-family residential | 331,546 | 331,546 | 29,378 | 261,736 | |||||||||||
Construction - speculative | 29,255 | 29,255 | 6,859 | 26,385 | |||||||||||
Construction - custom | — | — | — | — | |||||||||||
Land - acquisition & development | 49,036 | 49,912 | 22,230 | 41,006 | |||||||||||
Land - consumer lot loans | 352 | 352 | 1,135 | 110 | |||||||||||
Multi-family | 17,149 | 17,149 | 4,180 | 12,380 | |||||||||||
Commercial real estate | 6,429 | 6,429 | 1,601 | 3,351 | |||||||||||
Commercial & industrial | 41 | 41 | 41 | 31 | |||||||||||
HELOC | — | — | — | — | |||||||||||
Consumer | — | — | — | — | |||||||||||
433,808 | 434,684 | 65,424 | (1) | 344,999 | |||||||||||
Total: | |||||||||||||||
Single-family residential | 337,143 | 341,121 | 29,378 | 267,671 | |||||||||||
Construction - speculative | 37,541 | 40,281 | 6,859 | 33,759 | |||||||||||
Construction - custom | — | — | — | — | |||||||||||
Land - acquisition & development | 71,472 | 100,882 | 22,230 | 69,174 | |||||||||||
Land - consumer lot loans | 352 | 352 | 1,135 | 110 | |||||||||||
Multi-family | 20,382 | 21,657 | 4,180 | 16,438 | |||||||||||
Commercial real estate | 9,891 | 10,392 | 1,601 | 5,492 | |||||||||||
Commercial & industrial | 41 | 41 | 41 | 31 | |||||||||||
HELOC | — | — | — | — | |||||||||||
Consumer | — | — | — | — | |||||||||||
$ | 476,822 | $ | 514,726 | $ | 65,424 | (1) | $ | 392,675 |
(1) | Includes $41,912,000 of specific reserves and $23,512,000 included in the general reserves. |
Fair Value at June 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Equity securities | $ | — | $ | — | $ | — | $ | — | |||||||
Obligations of U.S. government | — | 114,141 | — | 114,141 | |||||||||||
Obligations of states and political subdivisions | — | 24,001 | — | 24,001 | |||||||||||
Obligations of foreign governments | — | — | — | — | |||||||||||
Corporate debt securities | — | 303,214 | — | 303,214 | |||||||||||
Mortgage-backed securities | — | ||||||||||||||
Agency pass-through certificates | — | 3,184,759 | — | 3,184,759 | |||||||||||
Other debt securities | — | — | — | — | |||||||||||
Balance at end of period | $ | — | $ | 3,626,115 | $ | — | $ | 3,626,115 |
Through June 30, 2012 | Quarter Ended June 30, 2012 | Nine Months Ended June 30, 2012 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total Losses | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Impaired loans (1) | $ | — | $ | — | $ | 133,929 | $ | 133,929 | $ | 13,459 | $ | 36,291 | |||||||||||
Covered REO (2) | — | — | 32,817 | 32,817 | 923 | 2,124 | |||||||||||||||||
Real estate held for sale (2) | — | — | 157,547 | 157,547 | 21,756 | 61,100 | |||||||||||||||||
Balance at end of period | $ | — | $ | — | $ | 324,293 | $ | 324,293 | $ | 36,138 | $ | 99,515 |
(1) | The losses represents remeasurements of collateral-dependent loans. |
(2) | The losses represents aggregate writedowns and charge-offs on real estate held for sale. |
• | The fair value of the collateral, which may take the form of real estate or personal property, is based on internal estimates, field observations, assessments provided by third-party appraisers and other valuation models. The Company performs or reaffirms valuations of collateral-dependent impaired loans at least annually. Adjustments are made if management believes that more recent information is available and relevant with respect to the fair value of the collateral. |
• | When a loan is reclassified from loan status to real estate held for sale due to the Company taking possession of the collateral, a Special Credits officer, along with the Special Credits manager, obtains a valuation, which may include a third-party appraisal, which is used to establish the fair value of the underlying collateral. The determined fair value, to the extent it does not exceed the carrying value of the loan, becomes the carrying value of the REO asset. In addition to the valuations from independent third-party sources, the carrying balance of REO assets are written down once a bona fide offer is contractually accepted, through execution of a Purchase and Sale Agreement, where the accepted price is lower than the current balance of the particular REO asset. The fair value of REO assets is re-evaluated quarterly and the REO asset is adjusted to reflect the lower of cost or fair value as necessary. |
June 30, 2012 | September 30, 2011 | |||||||||||||||||
Level in Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
(In thousands) | ||||||||||||||||||
Financial assets | ||||||||||||||||||
Cash and cash equivalents | 1 | $ | 963,766 | $ | 963,766 | $ | 816,002 | $ | 816,002 | |||||||||
Available-for-sale securities | 2 | |||||||||||||||||
Equity securities | — | — | — | — | ||||||||||||||
Obligations of U.S. government | 114,141 | 114,141 | 190,527 | 190,527 | ||||||||||||||
Obligations of states and political subdivisions | 24,001 | 24,001 | 23,568 | 23,568 | ||||||||||||||
Obligations of foreign governments | — | — | — | — | ||||||||||||||
Corporate debt securities | 303,214 | 303,214 | 29,959 | 29,959 | ||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 3,184,759 | 3,184,759 | 3,011,090 | 3,011,090 | ||||||||||||||
Other debt securities | — | — | — | — | ||||||||||||||
Total available-for-sale securities | 3,626,115 | 3,626,115 | 3,255,144 | 3,255,144 | ||||||||||||||
Held-to-maturity securities | 2 | |||||||||||||||||
Equity securities | — | — | — | — | ||||||||||||||
Obligations of U.S. government | — | — | — | — | ||||||||||||||
Obligations of states and political subdivisions | 795 | 812 | 1,950 | 2,023 | ||||||||||||||
Obligations of foreign governments | — | — | — | — | ||||||||||||||
Corporate debt securities | — | — | — | — | ||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 34,433 | 37,215 | 45,086 | 48,593 | ||||||||||||||
Other debt securities | — | — | — | — | ||||||||||||||
Total held-to-maturity securities | 35,228 | 38,027 | 47,036 | 50,616 | ||||||||||||||
Loans receivable | 3 | 7,616,205 | 8,262,700 | 7,935,877 | 8,479,307 | |||||||||||||
Covered loans | 3 | 302,681 | 304,420 | 382,183 | 375,027 | |||||||||||||
FDIC indemnification asset | 3 | 97,380 | 95,138 | 98,871 | 101,751 | |||||||||||||
FHLB stock | 2 | 151,674 | 151,674 | 151,755 | 151,755 | |||||||||||||
Financial liabilities | ||||||||||||||||||
Customer accounts | 2 | 8,683,181 | 8,500,515 | 8,665,903 | 8,557,357 | |||||||||||||
FHLB advances and other borrowings | 2 | 2,757,146 | 3,097,509 | 2,762,066 | 3,038,127 |
June 30, 2012 | ||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | Yield | |||||||||||||||
Gains | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||
U.S. government and agency securities due | ||||||||||||||||||
Within 1 year | $ | 500 | $ | 36 | $ | — | $ | 536 | 4.00 | % | ||||||||
1 to 5 years | — | — | — | — | — | |||||||||||||
5 to 10 years | 109,300 | 4,330 | (25 | ) | 113,605 | 1.34 | ||||||||||||
Over 10 years | — | — | — | — | — | |||||||||||||
Corporate bonds due | ||||||||||||||||||
1 to 5 years | 273,658 | 350 | (58 | ) | 273,950 | 0.87 | ||||||||||||
5 to 10 years | 30,000 | 464 | (1,200 | ) | 29,264 | 4.00 | ||||||||||||
Municipal bonds due | ||||||||||||||||||
Over 10 years | 20,446 | 3,555 | — | 24,001 | 6.45 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 3,093,024 | 94,775 | (3,040 | ) | 3,184,759 | 4.48 | ||||||||||||
3,526,928 | 103,510 | (4,323 | ) | 3,626,115 | 4.11 | |||||||||||||
Held-to-maturity securities | ||||||||||||||||||
Tax-exempt municipal bonds due | ||||||||||||||||||
Within 1 year | 795 | 17 | — | 812 | 5.72 | |||||||||||||
1 to 5 years | — | — | — | — | — | |||||||||||||
5 to 10 years | — | — | — | — | — | |||||||||||||
Over 10 years | — | — | — | — | — | |||||||||||||
U.S. government and agency securities due | ||||||||||||||||||
1 to 5 years | — | — | — | — | — | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 34,433 | 2,782 | — | 37,215 | 5.31 | |||||||||||||
35,228 | 2,799 | — | 38,027 | 5.32 | ||||||||||||||
$ | 3,562,156 | $ | 106,309 | $ | (4,323 | ) | $ | 3,664,142 | 4.12 | % |
September 30, 2011 | ||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | Yield | |||||||||||||||
Gains | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||
U.S. government and agency securities due | ||||||||||||||||||
Within 1 year | $ | 500 | $ | 34 | $ | — | $ | 534 | 4.00 | % | ||||||||
1 to 5 years | — | — | — | — | — | |||||||||||||
5 to 10 years | 9,300 | 4,547 | — | 13,847 | 10.38 | |||||||||||||
Over 10 years | 175,515 | 631 | — | 176,146 | 2.57 | |||||||||||||
Corporate bonds due | ||||||||||||||||||
5 to 10 years | 30,000 | 284 | (325 | ) | 29,959 | 4.00 | ||||||||||||
Municipal bonds due | ||||||||||||||||||
Over 10 years | 20,461 | 3,107 | — | 23,568 | 6.45 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 2,883,734 | 127,356 | — | 3,011,090 | 4.72 | |||||||||||||
3,119,510 | 135,959 | (325 | ) | 3,255,144 | 4.62 | |||||||||||||
Held-to-maturity securities | ||||||||||||||||||
Tax-exempt municipal bonds due | ||||||||||||||||||
1 to 5 years | 405 | 5 | — | 410 | 6.52 | |||||||||||||
5 to 10 years | 1,545 | 68 | — | 1,613 | 5.60 | |||||||||||||
Over 10 years | — | — | — | — | — | |||||||||||||
U.S. government and agency securities due | ||||||||||||||||||
1 to 5 years | — | — | — | — | — | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 45,086 | 3,507 | — | 48,593 | 5.31 | |||||||||||||
47,036 | 3,580 | — | 50,616 | 5.33 | ||||||||||||||
$ | 3,166,546 | $ | 139,539 | $ | (325 | ) | $ | 3,305,760 | 4.63 | % |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | ||||||||||||||||||
Corporate bonds due | $ | (1,258 | ) | $ | 32,400 | $ | — | $ | — | $ | (1,258 | ) | $ | 32,400 | |||||||||
U.S. government and agency securities due | (25 | ) | 99,975 | — | — | (25 | ) | 99,975 | |||||||||||||||
Agency pass-through certificates | (2,787 | ) | 401,777 | (253 | ) | 33,822 | (3,040 | ) | 435,599 | ||||||||||||||
(4,070 | ) | $ | 534,152 | $ | (253 | ) | $ | 33,822 | (4,323 | ) | $ | 567,974 |
June 30, 2012 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 37,072 | $ | 116,061 | $ | 30,370 | $ | 269,888 | |||||||
Accretion | (15,142 | ) | 15,142 | (4,939 | ) | 4,939 | |||||||||
Transfers to REO | — | (13,094 | ) | — | — | ||||||||||
Payments received, net | — | (43,361 | ) | — | (46,894 | ) | |||||||||
Balance at end of period | $ | 21,930 | $ | 74,748 | $ | 25,431 | $ | 227,933 |
September 30, 2011 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 27,019 | $ | 190,530 | $ | 39,813 | $ | 343,944 | |||||||
Reclassification from nonaccretable balance, net | 24,025 | — | — | — | |||||||||||
Accretion | (13,972 | ) | 13,972 | (9,443 | ) | 9,443 | |||||||||
Transfers to REO | — | (54,638 | ) | — | — | ||||||||||
Payments received, net | — | (33,803 | ) | — | (83,499 | ) | |||||||||
Balance at end of period | $ | 37,072 | $ | 116,061 | $ | 30,370 | $ | 269,888 |
June 30, 2012 | September 30, 2011 | ||||||
(In thousands) | |||||||
Balance at beginning of period | $ | 101,634 | $ | 131,128 | |||
Additions | 5,742 | 10,470 | |||||
Payments made (received) | (276 | ) | (32,828 | ) | |||
Amortization | (11,023 | ) | (10,239 | ) | |||
Accretion | 1,303 | 3,103 | |||||
Balance at end of period | $ | 97,380 | $ | 101,634 |
June 30, 2012 | Internally Assigned Grade | Total Net Loans | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Purchased non credit-impaired loans: | |||||||||||||||||||||||
Single-family residential | $ | 34,874 | $ | — | $ | 3,868 | $ | — | $ | — | $ | 38,742 | |||||||||||
Construction - speculative | — | — | — | — | — | — | |||||||||||||||||
Construction - custom | — | — | — | — | — | — | |||||||||||||||||
Land - acquisition & development | 4,623 | 2,669 | 6,031 | — | — | 13,323 | |||||||||||||||||
Land - consumer lot loans | 503 | — | — | — | — | 503 | |||||||||||||||||
Multi-family | 29,347 | — | 2,754 | — | — | 32,101 | |||||||||||||||||
Commercial real estate | 93,387 | 1,104 | 30,843 | — | — | 125,334 | |||||||||||||||||
Commercial & industrial | 6,953 | 917 | 6,707 | — | — | 14,577 | |||||||||||||||||
HELOC | 19,307 | — | — | — | — | 19,307 | |||||||||||||||||
Consumer | 973 | — | — | — | — | 973 | |||||||||||||||||
189,967 | 4,690 | 50,203 | — | — | 244,860 | ||||||||||||||||||
Total grade as a % of total net loans | 77.6 | % | 1.9 | % | 20.5 | % | — | % | — | % | |||||||||||||
Purchased credit-impaired loans: | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 9,807 | 5,865 | 39,582 | — | — | 55,254 | |||||||||||||||||
Pool 2 - Single-family residential | 379 | — | 3,959 | — | — | 4,338 | |||||||||||||||||
Pool 3 - Multi-family | — | 3,019 | — | — | — | 3,019 | |||||||||||||||||
Pool 4 - HELOC & other consumer | 1,171 | — | 3,469 | — | — | 4,640 | |||||||||||||||||
Pool 5 - Commercial real estate | 408 | 27,739 | 42,447 | — | — | 70,594 | |||||||||||||||||
Pool 6 - Commercial & industrial | 3,881 | 1,497 | 11,685 | — | — | 17,063 | |||||||||||||||||
$ | 15,646 | $ | 38,120 | $ | 101,142 | $ | — | $ | — | 154,908 | |||||||||||||
Total covered loans | 399,768 | ||||||||||||||||||||||
Discount | (93,321 | ) | |||||||||||||||||||||
Allowance | (3,766 | ) | |||||||||||||||||||||
Covered loans, net | $ | 302,681 |
September 30, 2011 | Internally Assigned Grade | Total Net Loans | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Purchased non credit-impaired loans: | |||||||||||||||||||||||
Single-family residential | $ | 45,619 | $ | — | $ | 595 | $ | — | $ | — | $ | 46,214 | |||||||||||
Construction - speculative | 1,315 | — | — | — | — | 1,315 | |||||||||||||||||
Construction - custom | — | — | — | — | — | — | |||||||||||||||||
Land - acquisition & development | 8,383 | 6,315 | 360 | — | — | 15,058 | |||||||||||||||||
Land - consumer lot loans | 543 | — | 111 | — | — | 654 | |||||||||||||||||
Multi-family | 32,448 | — | 2,458 | — | — | 34,906 | |||||||||||||||||
Commercial real estate | 118,124 | 1,361 | 28,979 | — | — | 148,464 | |||||||||||||||||
Commercial & industrial | 13,717 | 4,481 | 4,239 | 444 | — | 22,881 | |||||||||||||||||
HELOC | 21,730 | — | — | — | — | 21,730 | |||||||||||||||||
Consumer | 1,199 | — | — | — | — | 1,199 | |||||||||||||||||
243,078 | 12,157 | 36,742 | 444 | — | 292,421 | ||||||||||||||||||
Total grade as a % of total net loans | 83.1 | % | 4.2 | % | 12.6 | % | 0.2 | % | — | % | |||||||||||||
Purchased credit-impaired loans: | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 9,982 | 2,980 | 54,682 | — | — | 67,644 | |||||||||||||||||
Pool 2 - Single-family residential | 3,667 | — | 8,263 | — | — | 11,930 | |||||||||||||||||
Pool 3 - Multi-family | — | — | 3,324 | — | — | 3,324 | |||||||||||||||||
Pool 4 - HELOC & other consumer | 3,544 | — | 5,411 | — | — | 8,955 | |||||||||||||||||
Pool 5 - Commercial real estate | 418 | 30,579 | 48,069 | — | — | 79,066 | |||||||||||||||||
Pool 6 - Commercial & industrial | 2,859 | 2,725 | 25,662 | 772 | — | 32,018 | |||||||||||||||||
$ | 20,470 | $ | 36,284 | $ | 145,411 | $ | 772 | $ | — | 202,937 | |||||||||||||
Total covered loans | 495,358 | ||||||||||||||||||||||
Discount | (109,409 | ) | |||||||||||||||||||||
Allowance | (3,766 | ) | |||||||||||||||||||||
Covered loans, net | $ | 382,183 |
June 30, 2012 | Amount of Loans Net of LIP & Chg.-Offs | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loans | Current | 30 | 60 | 90 | Total | |||||||||||||||||||||
Single-Family Residential | $ | 38,742 | $ | 36,523 | $ | 81 | $ | — | $ | 2,138 | $ | 2,219 | 5.73 | % | ||||||||||||
Construction - Speculative | — | — | — | — | — | — | NM | |||||||||||||||||||
Construction - Custom | — | — | — | — | — | — | NM | |||||||||||||||||||
Land - Acquisition & Development | 13,323 | 12,847 | 476 | — | — | 476 | 3.57 | |||||||||||||||||||
Land - Consumer Lot Loans | 503 | 405 | — | — | 98 | 98 | 19.48 | |||||||||||||||||||
Multi-Family | 32,101 | 30,593 | — | — | 1,508 | 1,508 | 4.70 | |||||||||||||||||||
Commercial Real Estate | 125,334 | 123,411 | — | — | 1,923 | 1,923 | 1.53 | |||||||||||||||||||
Commercial & Industrial | 14,577 | 11,094 | 30 | — | 3,453 | 3,483 | 23.89 | |||||||||||||||||||
HELOC | 19,307 | 18,814 | 18 | 244 | 231 | 493 | 2.55 | |||||||||||||||||||
Consumer | 973 | 961 | 1 | 11 | — | 12 | 1.23 | |||||||||||||||||||
$ | 244,860 | $ | 234,648 | $ | 606 | $ | 255 | $ | 9,351 | $ | 10,212 | 4.17 | % |
September 30, 2011 | Amount of Loans Net of LIP & Chg.-Offs | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loans | Current | 30 | 60 | 90 | Total | |||||||||||||||||||||
Single-Family Residential | $ | 46,214 | $ | 43,445 | $ | 1,034 | $ | 30 | $ | 1,705 | $ | 2,769 | 5.99 | % | ||||||||||||
Construction - Speculative | 1,315 | 1,315 | — | — | — | — | NM | |||||||||||||||||||
Construction - Custom | — | — | — | — | — | — | NM | |||||||||||||||||||
Land - Acquisition & Development | 15,058 | 13,344 | 487 | — | 1,227 | 1,714 | 11.38 | |||||||||||||||||||
Land - Consumer Lot Loans | 654 | 527 | 16 | — | 111 | 127 | 19.42 | |||||||||||||||||||
Multi-Family | 34,906 | 33,398 | — | — | 1,508 | 1,508 | 4.32 | |||||||||||||||||||
Commercial Real Estate | 148,464 | 142,060 | 1,527 | — | 4,877 | 6,404 | 4.31 | |||||||||||||||||||
Commercial & Industrial | 22,881 | 18,049 | 3,606 | 703 | 523 | 4,832 | 21.12 | |||||||||||||||||||
HELOC | 21,730 | 20,339 | 731 | 391 | 269 | 1,391 | 6.40 | |||||||||||||||||||
Consumer | 1,199 | 1,123 | 31 | 8 | 37 | 76 | 6.34 | |||||||||||||||||||
$ | 292,421 | $ | 273,600 | $ | 7,432 | $ | 1,132 | $ | 10,257 | $ | 18,821 | 6.44 | % |
Actual | Capital Adequacy Guidelines | Categorized as Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||||||
(In thousands) | ||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||
Total capital to risk-weighted assets | $ | 1,646,427 | 26.43 | % | $ | 498,333 | 8.00 | % | $ | 622,917 | 10.00 | % | ||||||||
Tier I capital to risk-weighted assets | 1,567,757 | 25.17 | % | N/A | N/A | 373,750 | 6.00 | % | ||||||||||||
Core capital to adjusted tangible assets | 1,567,757 | 11.87 | % | N/A | N/A | 660,630 | 5.00 | % | ||||||||||||
Core capital to total assets | 1,567,757 | 11.87 | % | 528,504 | 4.00 | % | N/A | N/A | ||||||||||||
Tangible capital to tangible assets | 1,567,757 | 11.87 | % | 528,504 | 4.00 | % | N/A | N/A | ||||||||||||
September 30, 2011 | ||||||||||||||||||||
Total capital to risk-weighted assets | 1,624,817 | 24.68 | % | 526,765 | 8.00 | % | 658,456 | 10.00 | % | |||||||||||
Tier I capital to risk-weighted assets | 1,543,438 | 23.44 | % | N/A | N/A | 395,074 | 6.00 | % | ||||||||||||
Core capital to adjusted tangible assets | 1,543,438 | 11.82 | % | N/A | N/A | 652,672 | 5.00 | % | ||||||||||||
Core capital to total assets | 1,543,438 | 11.82 | % | 391,603 | 3.00 | % | N/A | N/A | ||||||||||||
Tangible capital to tangible assets | 1,543,438 | 11.82 | % | 195,802 | 1.50 | % | N/A | N/A |
Loan Portfolio by Category * | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Non-Acquired loans | (In thousands) | |||||||||||||||||||
Single-family residential | $ | 6,079,712 | 74.0 | % | $ | 5,971,540 | 74.0 | % | $ | 5,904,805 | 74.0 | % | ||||||||
Construction - speculative | 129,766 | 1.6 | 128,719 | 1.6 | 130,741 | 1.6 | ||||||||||||||
Construction - custom | 271,227 | 3.3 | 235,566 | 3.3 | 210,488 | 2.6 | ||||||||||||||
Land - acquisition & development | 171,678 | 2.1 | 151,967 | 2.1 | 135,392 | 1.7 | ||||||||||||||
Land - consumer lot loans | 154,874 | 1.9 | 149,967 | 1.9 | 145,129 | 1.8 | ||||||||||||||
Multi-family | 687,367 | 8.4 | 686,467 | 8.4 | 692,763 | 8.7 | ||||||||||||||
Commercial real estate | 308,529 | 3.8 | 293,234 | 3.8 | 310,588 | 3.9 | ||||||||||||||
Commercial & industrial | 85,463 | 1.0 | 94,919 | 1.0 | 148,577 | 1.9 | ||||||||||||||
HELOC | 113,781 | 1.4 | 113,368 | 1.4 | 113,559 | 1.4 | ||||||||||||||
Consumer | 63,106 | 0.8 | 71,081 | 0.8 | 68,202 | 0.9 | ||||||||||||||
Total non-acquired loans | 8,065,503 | 98.3 | 7,896,828 | 98.3 | 7,860,244 | 98.5 | ||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||
Single-family residential | 2,778 | — | 2,093 | — | 343 | — | ||||||||||||||
Construction - speculative | 354 | — | 139 | — | 1,889 | — | ||||||||||||||
Land - acquisition & development | 4,287 | 0.1 | 4,490 | 0.1 | 4,211 | 0.1 | ||||||||||||||
Multi-family | 1,782 | — | 1,229 | — | 1,074 | — | ||||||||||||||
Commercial real estate | 106,345 | 1.3 | 101,254 | 1.3 | 91,006 | 1.1 | ||||||||||||||
Commercial & industrial | 8,849 | 0.1 | 7,765 | 0.1 | 5,100 | 0.1 | ||||||||||||||
HELOC | 18,308 | 0.2 | 17,215 | 0.2 | 15,037 | 0.2 | ||||||||||||||
Consumer | 137 | — | 125 | — | 115 | — | ||||||||||||||
Total credit-impaired acquired loans | 142,840 | 1.7 | 134,310 | 1.7 | 118,775 | 1.5 | ||||||||||||||
Total loans | ||||||||||||||||||||
Single-family residential | 6,082,490 | 74.0 | 5,973,633 | 74.0 | 5,905,148 | 74.0 | ||||||||||||||
Construction - speculative | 130,120 | 1.6 | 128,858 | 1.6 | 132,630 | 1.7 | ||||||||||||||
Construction - custom | 271,227 | 3.3 | 235,566 | 3.3 | 210,488 | 2.6 | ||||||||||||||
Land - acquisition & development | 175,965 | 2.2 | 156,457 | 2.2 | 139,603 | 1.7 | ||||||||||||||
Land - consumer lot loans | 154,874 | 1.9 | 149,967 | 1.9 | 145,129 | 1.8 | ||||||||||||||
Multi-family | 689,149 | 8.4 | 687,696 | 8.4 | 693,837 | 8.7 | ||||||||||||||
Commercial real estate | 414,874 | 5.1 | 394,488 | 5.1 | 401,594 | 5.1 | ||||||||||||||
Commercial & industrial | 94,312 | 1.1 | 102,684 | 1.1 | 153,677 | 1.9 | ||||||||||||||
HELOC | 132,089 | 1.6 | 130,583 | 1.6 | 128,596 | 1.6 | ||||||||||||||
Consumer | 63,243 | 0.8 | 71,206 | 0.8 | 68,317 | 0.9 | ||||||||||||||
Total loans | 8,208,343 | 100 | % | 8,031,138 | 100 | % | 7,979,019 | 100 | % | |||||||||||
Less: | ||||||||||||||||||||
Allowance for probable losses | 154,540 | 143,819 | 137,951 | |||||||||||||||||
Loans in process | 159,437 | 133,379 | 155,051 | |||||||||||||||||
Discount on acquired loans | 48,929 | 43,687 | 35,200 | |||||||||||||||||
Deferred net origination fees | 35,362 | 34,236 | 34,612 | |||||||||||||||||
398,268 | 355,121 | 362,814 | ||||||||||||||||||
$ | 7,810,075 | $ | 7,676,017 | $ | 7,616,205 |
June 30, 2012 | September 30, 2011 | ||||||||||||
(In thousands) | |||||||||||||
Restructured loans: | |||||||||||||
Single-family residential | $ | 360,150 | 83.2 | % | $ | 309,372 | 82.0 | % | |||||
Construction - speculative | 15,875 | 3.7 | 15,481 | 4.1 | |||||||||
Construction - custom | 1,196 | 0.3 | — | — | |||||||||
Land - acquisition & development | 17,075 | 3.9 | 18,033 | 4.8 | |||||||||
Land - consumer lot loans | 14,107 | 3.3 | 13,124 | 3.5 | |||||||||
Multi - family | 17,007 | 3.9 | 19,046 | 5.0 | |||||||||
Commercial real estate | 7,049 | 1.6 | 1,435 | 0.4 | |||||||||
Commercial & industrial | 2 | — | 828 | 0.2 | |||||||||
HELOC | 290 | 0.1 | 177 | — | |||||||||
Consumer | — | — | — | — | |||||||||
Total restructured loans (1) | 432,751 | 100 | % | 377,496 | 100 | % | |||||||
Non-accrual loans: | |||||||||||||
Single-family residential | 129,295 | 75.6 | % | 126,624 | 60.3 | % | |||||||
Construction - speculative | 12,424 | 7.3 | 15,383 | 7.3 | |||||||||
Construction - custom | 539 | 0.3 | 635 | 0.3 | |||||||||
Land - acquisition & development | 12,514 | 7.3 | 37,339 | 17.7 | |||||||||
Land - consumer lot loans | 5,844 | 3.4 | 8,843 | 4.2 | |||||||||
Multi-family | 3,405 | 2.0 | 7,664 | 3.6 | |||||||||
Commercial real estate | 6,285 | 3.7 | 11,380 | 5.4 | |||||||||
Commercial & industrial | — | — | 1,679 | 0.8 | |||||||||
HELOC | 388 | 0.2 | 481 | 0.2 | |||||||||
Consumer | 339 | 0.2 | 437 | 0.2 | |||||||||
Total non-accrual loans (2) | 171,033 | 100 | % | 210,465 | 100 | % | |||||||
Total REO (3) | 88,231 | 129,175 | |||||||||||
Total REHI (3) | 19,226 | 30,654 | |||||||||||
Total non-performing assets | $ | 278,490 | $ | 370,294 | |||||||||
Total non-performing assets and performing restructured loans as a percentage of total assets | 5.03 | % | 5.14 | % | |||||||||
(1) Restructured loans were as follows: | |||||||||||||
Performing | $ | 399,299 | 92.3 | % | $ | 320,018 | 84.8 | % | |||||
Non-accrual * | 33,452 | 7.7 | 57,478 | 15.2 | |||||||||
$ | 432,751 | 100 | % | $ | 377,496 | 100 | % |
* | Included in "Total non-accrual loans" above |
(2) | The Company recognized interest income on nonaccrual loans of approximately $2,224,000 in the nine months ended June 30, 2012. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $7,891,000 for the nine months ended June 30, 2012. |
(3) | Total REO and REHI (included in real estate held for sale on the Statement of Financial Condition) includes real estate held for sale acquired in settlement of loans or acquired from purchased institutions in settlement of loans. Excludes covered REO. |
June 30, 2012 | September 30, 2011 | ||||||||||||||||||
Amount | Loans to Total Loans (1) | Coverage Ratio (2) | Amount | Loans to Total Loans (1) | Coverage Ratio (2) | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Single-family residential | $ | 81,344 | 75.1 | % | 1.4 | % | $ | 83,307 | 74.9 | % | 1.3 | % | |||||||
Construction - speculative | 12,853 | 1.7 | 9.8 | 13,828 | 1.7 | 9.8 | |||||||||||||
Construction - custom | 344 | 2.7 | 0.2 | 623 | 3.4 | 0.2 | |||||||||||||
Land - acquisition & development | 17,394 | 1.7 | 12.8 | 32,719 | 2.4 | 16.3 | |||||||||||||
Land - consumer lot loans | 7,337 | 1.8 | 5.1 | 5,520 | 2.0 | 40.0 | |||||||||||||
Multi-family | 4,838 | 8.8 | 0.7 | 7,623 | 8.4 | 1.1 | |||||||||||||
Commercial real estate | 3,148 | 4.0 | 1.0 | 4,331 | 3.7 | 1.4 | |||||||||||||
Commercial & industrial | 6,963 | 1.9 | 4.7 | 5,099 | 1.3 | 4.7 | |||||||||||||
HELOC | 972 | 1.4 | 0.9 | 1,139 | 1.4 | 1.0 | |||||||||||||
Consumer | 2,758 | 0.9 | 4.0 | 2,971 | 0.8 | 4.4 | |||||||||||||
$ | 137,951 | 100 | % | $ | 157,160 | 100 | % |
(1) | Represents the total amount of the loan category as a % of total gross non-acquired and non-covered loans outstanding. |
(2) | Represents the allocated allowance of the loan category as a % of total gross non-acquired and non-covered loans outstanding for the same loan category. |
June 30, 2012 | September 30, 2011 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Wtd. Avg. Rate | Wtd. Avg. Rate | ||||||||||||||||||
Non-interest checking | $ | 272,819 | 3.1 | % | — | % | $ | 235,146 | 2.7 | % | — | % | |||||||
Interest checking | 595,208 | 6.9 | 0.14 | % | 543,907 | 6.3 | 0.13 | % | |||||||||||
Savings (passbook/stmt) | 300,182 | 3.5 | 0.20 | % | 255,396 | 2.9 | 0.20 | % | |||||||||||
Money Market | 1,700,233 | 19.5 | 0.26 | % | 1,627,739 | 18.8 | 0.26 | % | |||||||||||
CD’s | 5,814,739 | 67.0 | 1.32 | % | 6,003,715 | 69.3 | 1.55 | % | |||||||||||
Total | $ | 8,683,181 | 100 | % | 0.95 | % | $ | 8,665,903 | 100 | % | 1.14 | % |
Comparison of Quarters Ended 6/30/12 and 6/30/11 | Comparison of Nine Months Ended 6/30/12 and 6/30/11 | ||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans and covered loans | $ | (8,563 | ) | $ | (1,058 | ) | $ | (9,621 | ) | $ | (26,116 | ) | $ | 1,196 | $ | (24,920 | ) | ||||||
Mortgaged-backed securities | 5,015 | (10,443 | ) | (5,428 | ) | 22,801 | (23,108 | ) | (307 | ) | |||||||||||||
Investments (1) | 822 | (1,920 | ) | (1,098 | ) | (214 | ) | (4,328 | ) | (4,542 | ) | ||||||||||||
All interest-earning assets | (2,726 | ) | (13,421 | ) | (16,147 | ) | (3,529 | ) | (26,240 | ) | (29,769 | ) | |||||||||||
Interest expense: | |||||||||||||||||||||||
Customer accounts | 13 | (6,691 | ) | (6,678 | ) | (554 | ) | (22,343 | ) | (22,897 | ) | ||||||||||||
FHLB advances and other borrowings | 960 | (832 | ) | 128 | 3,066 | (2,368 | ) | 698 | |||||||||||||||
All interest-bearing liabilities | 973 | (7,523 | ) | (6,550 | ) | 2,512 | (24,711 | ) | (22,199 | ) | |||||||||||||
Change in net interest income | $ | (3,699 | ) | $ | (5,898 | ) | $ | (9,597 | ) | $ | (6,041 | ) | $ | (1,529 | ) | $ | (7,570 | ) |
(1) | Includes interest on cash equivalents and dividends on FHLB stock |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (1) | Maximum Number of Shares That May Yet Be Purchased Under the Plan at the End of the Period | ||||||||
April 1, 2012 to April 30, 2012 | — | $ | — | — | 6,908,314 | |||||||
May 1, 2012 to May 31, 2012 | — | — | — | 6,908,314 | ||||||||
June 1, 2012 to June 30, 2012 | — | — | — | 6,908,314 | ||||||||
Total | — | $ | — | — | 6,908,314 |
(1) | The Company's only stock repurchase program was publicly announced by the Board of Directors on February 3, 1995 and has no expiration date. Under this ongoing program, a total of 31,956,264 shares have been authorized for repurchase. |
Fiscal Years Ended September 30, | |||||||||||
2011 | 2010 | 2009 | |||||||||
(In thousands) | |||||||||||
Net income | $ | 111,141 | $ | 118,653 | $ | 48,172 | |||||
Other comprehensive income (loss) net of tax: | |||||||||||
Net unrealized gains (losses) on available-for-sales securities, | |||||||||||
net of taxes of $16,981 for 2011 | 30,852 | (19,203 | ) | 51,273 | |||||||
Reclassification adjustment of net gains from sale | |||||||||||
of available-for-sale securities included in net income, | |||||||||||
net of taxes of $2,892 for 2011 | 5,255 | 14,454 | 686 | ||||||||
Other comprehensive income (loss) | 36,107 | (4,749 | ) | 51,959 | |||||||
Comprehensive income | $ | 147,248 | $ | 113,904 | $ | 100,131 |
(a) | Exhibits | |||
31.1 | Section 302 Certification by the Chief Executive Officer | |||
31.2 | Section 302 Certification by the Chief Financial Officer | |||
32 | Section 906 Certification by the Chief Executive Officer and the Chief Financial Officer | |||
101 | Financial Statements from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter and nine months ended June 30, 2012 formatted in XBRL |
August 7, 2012 | /S/ ROY M. WHITEHEAD |
ROY M. WHITEHEAD Chairman, President and Chief Executive Officer | |
August 7, 2012 | /S/ BRENT J. BEARDALL |
BRENT J. BEARDALL Executive Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 7, 2012 | /s/ Roy M. Whitehead | |
ROY M. WHITEHEAD Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 7, 2012 | /s/ Brent J. Beardall | |
BRENT J. BEARDALL | |||
Executive Vice President and Chief Financial Officer |
(a) | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Washington Federal, Inc. | |
(Company) | |
/s/ Roy M. Whitehead | |
ROY M. WHITEHEAD | |
Chairman, President and Chief Executive Officer | |
/s/ Brent J. Beardall | |
BRENT J. BEARDALL | |
Executive Vice President and Chief Financial Officer |
Allowance for Losses on Loans (Internally Assigned Grade) (Details) (USD $)
|
Jun. 30, 2012
|
Sep. 30, 2011
|
Jun. 30, 2012
Pass [Member]
|
Sep. 30, 2011
Pass [Member]
|
Jun. 30, 2012
Special Mention [Member]
|
Sep. 30, 2011
Special Mention [Member]
|
Jun. 30, 2012
Substandard [Member]
|
Sep. 30, 2011
Substandard [Member]
|
Jun. 30, 2012
Doubtful [Member]
|
Sep. 30, 2011
Doubtful [Member]
|
Jun. 30, 2012
Loss [Member]
|
Sep. 30, 2011
Loss [Member]
|
Jun. 30, 2012
Nonperforming Financing Receivable [Member]
|
Jun. 30, 2011
Nonperforming Financing Receivable [Member]
|
Jun. 30, 2012
Residential Portfolio Segment [Member]
|
Sep. 30, 2011
Residential Portfolio Segment [Member]
|
Sep. 30, 2011
Residential Portfolio Segment [Member]
Pass [Member]
|
Sep. 30, 2011
Residential Portfolio Segment [Member]
Special Mention [Member]
|
Sep. 30, 2011
Residential Portfolio Segment [Member]
Substandard [Member]
|
Sep. 30, 2011
Residential Portfolio Segment [Member]
Doubtful [Member]
|
Sep. 30, 2011
Residential Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Construction, Speculative [Member]
|
Sep. 30, 2011
Construction, Speculative [Member]
|
Sep. 30, 2011
Construction, Speculative [Member]
Pass [Member]
|
Sep. 30, 2011
Construction, Speculative [Member]
Special Mention [Member]
|
Sep. 30, 2011
Construction, Speculative [Member]
Substandard [Member]
|
Sep. 30, 2011
Construction, Speculative [Member]
Doubtful [Member]
|
Sep. 30, 2011
Construction, Speculative [Member]
Loss [Member]
|
Jun. 30, 2012
Construction, Custom [Member]
|
Sep. 30, 2011
Construction, Custom [Member]
|
Sep. 30, 2011
Construction, Custom [Member]
Pass [Member]
|
Sep. 30, 2011
Construction, Custom [Member]
Special Mention [Member]
|
Sep. 30, 2011
Construction, Custom [Member]
Substandard [Member]
|
Sep. 30, 2011
Construction, Custom [Member]
Doubtful [Member]
|
Sep. 30, 2011
Construction, Custom [Member]
Loss [Member]
|
Jun. 30, 2012
Land, Acquisition and Development [Member]
|
Sep. 30, 2011
Land, Acquisition and Development [Member]
|
Sep. 30, 2011
Land, Acquisition and Development [Member]
Pass [Member]
|
Sep. 30, 2011
Land, Acquisition and Development [Member]
Special Mention [Member]
|
Sep. 30, 2011
Land, Acquisition and Development [Member]
Substandard [Member]
|
Sep. 30, 2011
Land, Acquisition and Development [Member]
Doubtful [Member]
|
Sep. 30, 2011
Land, Acquisition and Development [Member]
Loss [Member]
|
Jun. 30, 2012
Land, Consumer Lot Loans [Member]
|
Sep. 30, 2011
Land, Consumer Lot Loans [Member]
|
Sep. 30, 2011
Land, Consumer Lot Loans [Member]
Pass [Member]
|
Sep. 30, 2011
Land, Consumer Lot Loans [Member]
Special Mention [Member]
|
Sep. 30, 2011
Land, Consumer Lot Loans [Member]
Substandard [Member]
|
Sep. 30, 2011
Land, Consumer Lot Loans [Member]
Doubtful [Member]
|
Sep. 30, 2011
Land, Consumer Lot Loans [Member]
Loss [Member]
|
Jun. 30, 2012
Multi Family Housing [Member]
|
Sep. 30, 2011
Multi Family Housing [Member]
|
Sep. 30, 2011
Multi Family Housing [Member]
Pass [Member]
|
Sep. 30, 2011
Multi Family Housing [Member]
Special Mention [Member]
|
Sep. 30, 2011
Multi Family Housing [Member]
Substandard [Member]
|
Sep. 30, 2011
Multi Family Housing [Member]
Doubtful [Member]
|
Sep. 30, 2011
Multi Family Housing [Member]
Loss [Member]
|
Jun. 30, 2012
Commercial Real Estate Portfolio Segment [Member]
|
Sep. 30, 2011
Commercial Real Estate Portfolio Segment [Member]
|
Sep. 30, 2011
Commercial Real Estate Portfolio Segment [Member]
Pass [Member]
|
Sep. 30, 2011
Commercial Real Estate Portfolio Segment [Member]
Special Mention [Member]
|
Sep. 30, 2011
Commercial Real Estate Portfolio Segment [Member]
Substandard [Member]
|
Sep. 30, 2011
Commercial Real Estate Portfolio Segment [Member]
Doubtful [Member]
|
Sep. 30, 2011
Commercial Real Estate Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Commercial and Industrial Loans [Member]
|
Sep. 30, 2011
Commercial and Industrial Loans [Member]
|
Sep. 30, 2011
Commercial and Industrial Loans [Member]
Pass [Member]
|
Sep. 30, 2011
Commercial and Industrial Loans [Member]
Special Mention [Member]
|
Sep. 30, 2011
Commercial and Industrial Loans [Member]
Substandard [Member]
|
Sep. 30, 2011
Commercial and Industrial Loans [Member]
Doubtful [Member]
|
Sep. 30, 2011
Commercial and Industrial Loans [Member]
Loss [Member]
|
Jun. 30, 2012
Home Equity Line of Credit [Member]
|
Sep. 30, 2011
Home Equity Line of Credit [Member]
|
Sep. 30, 2011
Home Equity Line of Credit [Member]
Pass [Member]
|
Sep. 30, 2011
Home Equity Line of Credit [Member]
Special Mention [Member]
|
Sep. 30, 2011
Home Equity Line of Credit [Member]
Substandard [Member]
|
Sep. 30, 2011
Home Equity Line of Credit [Member]
Doubtful [Member]
|
Sep. 30, 2011
Home Equity Line of Credit [Member]
Loss [Member]
|
Jun. 30, 2012
Consumer Portfolio Segment [Member]
|
Sep. 30, 2011
Consumer Portfolio Segment [Member]
|
Sep. 30, 2011
Consumer Portfolio Segment [Member]
Pass [Member]
|
Sep. 30, 2011
Consumer Portfolio Segment [Member]
Special Mention [Member]
|
Sep. 30, 2011
Consumer Portfolio Segment [Member]
Substandard [Member]
|
Sep. 30, 2011
Consumer Portfolio Segment [Member]
Doubtful [Member]
|
Sep. 30, 2011
Consumer Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Residential Portfolio Segment [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Residential Portfolio Segment [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Residential Portfolio Segment [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Residential Portfolio Segment [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Residential Portfolio Segment [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Residential Portfolio Segment [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Residential Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Speculative [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Construction, Speculative [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Speculative [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Speculative [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Speculative [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Speculative [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Speculative [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Custom [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Construction, Custom [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Custom [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Custom [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Custom [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Custom [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Construction, Custom [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Acquisition and Development [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Land, Acquisition and Development [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Acquisition and Development [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Acquisition and Development [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Acquisition and Development [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Acquisition and Development [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Acquisition and Development [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Consumer Lot Loans [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Land, Consumer Lot Loans [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Consumer Lot Loans [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Consumer Lot Loans [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Consumer Lot Loans [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Consumer Lot Loans [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Land, Consumer Lot Loans [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Multi Family Housing [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Multi Family Housing [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Multi Family Housing [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Multi Family Housing [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Multi Family Housing [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Multi Family Housing [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Multi Family Housing [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial and Industrial Loans [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Commercial and Industrial Loans [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial and Industrial Loans [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial and Industrial Loans [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial and Industrial Loans [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial and Industrial Loans [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Commercial and Industrial Loans [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Home Equity Line of Credit [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Home Equity Line of Credit [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Home Equity Line of Credit [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Home Equity Line of Credit [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Home Equity Line of Credit [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Home Equity Line of Credit [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Home Equity Line of Credit [Member]
Loss [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Consumer Portfolio Segment [Member]
|
Sep. 30, 2011
Non-Acquired Loans [Member]
Consumer Portfolio Segment [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Consumer Portfolio Segment [Member]
Pass [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Consumer Portfolio Segment [Member]
Special Mention [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Consumer Portfolio Segment [Member]
Substandard [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Consumer Portfolio Segment [Member]
Doubtful [Member]
|
Jun. 30, 2012
Non-Acquired Loans [Member]
Consumer Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Pass [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Special Mention [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Substandard [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Doubtful [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Loss [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Residential Portfolio Segment [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Residential Portfolio Segment [Member]
Pass [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Residential Portfolio Segment [Member]
Special Mention [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Residential Portfolio Segment [Member]
Substandard [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Residential Portfolio Segment [Member]
Doubtful [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Residential Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Construction, Speculative [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Construction, Speculative [Member]
Pass [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Construction, Speculative [Member]
Special Mention [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Construction, Speculative [Member]
Substandard [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Construction, Speculative [Member]
Doubtful [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Construction, Speculative [Member]
Loss [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Multi Family Housing [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Multi Family Housing [Member]
Pass [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Multi Family Housing [Member]
Special Mention [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Multi Family Housing [Member]
Substandard [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Multi Family Housing [Member]
Doubtful [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Multi Family Housing [Member]
Loss [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Pass [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Special Mention [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Substandard [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Doubtful [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
Loss [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial and Industrial Loans [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial and Industrial Loans [Member]
Pass [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial and Industrial Loans [Member]
Special Mention [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial and Industrial Loans [Member]
Substandard [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial and Industrial Loans [Member]
Doubtful [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Commercial and Industrial Loans [Member]
Loss [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Home Equity Line of Credit [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Home Equity Line of Credit [Member]
Pass [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Home Equity Line of Credit [Member]
Special Mention [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Home Equity Line of Credit [Member]
Substandard [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Home Equity Line of Credit [Member]
Doubtful [Member]
|
Jun. 30, 2012
Acquired Credit Impaired Loans [Member]
Home Equity Line of Credit [Member]
Loss [Member]
|
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Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, gross | $ 7,979,019,000 | $ 8,299,074,000 | $ 7,525,212,000 | $ 7,804,613,000 | $ 48,645,000 | $ 76,285,000 | $ 403,725,000 | $ 415,550,000 | $ 1,437,000 | $ 2,245,000 | $ 0 | $ 381,000 | $ 278,490,000 | $ 394,679,000 | $ 5,905,148,000 | $ 6,218,878,000 | $ 6,047,279,000 | $ 0 | $ 171,599,000 | $ 0 | $ 0 | $ 132,630,000 | $ 140,459,000 | $ 56,485,000 | $ 21,035,000 | $ 62,939,000 | $ 0 | $ 0 | $ 210,488,000 | $ 279,851,000 | $ 279,851,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 139,603,000 | $ 200,692,000 | $ 44,888,000 | $ 44,840,000 | $ 110,964,000 | $ 0 | $ 0 | $ 145,129,000 | $ 163,146,000 | $ 162,670,000 | $ 0 | $ 476,000 | $ 0 | $ 0 | $ 693,837,000 | $ 700,673,000 | $ 663,582,000 | $ 4,629,000 | $ 32,462,000 | $ 0 | $ 0 | $ 401,594,000 | $ 303,442,000 | $ 264,083,000 | $ 4,125,000 | $ 35,234,000 | $ 0 | $ 0 | $ 153,677,000 | $ 109,332,000 | $ 104,171,000 | $ 1,128,000 | $ 1,407,000 | $ 2,245,000 | $ 381,000 | $ 128,596,000 | $ 115,092,000 | $ 115,092,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 68,317,000 | $ 67,509,000 | $ 66,512,000 | $ 528,000 | $ 469,000 | $ 0 | $ 0 | $ 7,860,244,000 | $ 8,299,074,000 | $ 7,452,433,000 | $ 42,347,000 | $ 365,464,000 | $ 0 | $ 0 | $ 5,904,805,000 | $ 6,218,878,000 | $ 5,714,905,000 | $ 299,000 | $ 189,601,000 | $ 0 | $ 0 | $ 130,741,000 | $ 140,459,000 | $ 80,542,000 | $ 6,695,000 | $ 43,504,000 | $ 0 | $ 0 | $ 210,488,000 | $ 279,851,000 | $ 210,488,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 135,392,000 | $ 200,692,000 | $ 42,907,000 | $ 21,935,000 | $ 70,550,000 | $ 0 | $ 0 | $ 145,129,000 | $ 163,146,000 | $ 144,658,000 | $ 356,000 | $ 115,000 | $ 0 | $ 0 | $ 692,763,000 | $ 700,673,000 | $ 660,948,000 | $ 7,574,000 | $ 24,241,000 | $ 0 | $ 0 | $ 310,588,000 | $ 303,442,000 | $ 271,050,000 | $ 4,608,000 | $ 34,930,000 | $ 0 | $ 0 | $ 148,577,000 | $ 109,332,000 | $ 146,075,000 | $ 352,000 | $ 2,150,000 | $ 0 | $ 0 | $ 113,559,000 | $ 115,092,000 | $ 113,559,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 68,202,000 | $ 67,509,000 | $ 67,301,000 | $ 528,000 | $ 373,000 | $ 0 | $ 0 | $ 118,775,000 | $ 72,779,000 | $ 6,298,000 | $ 38,261,000 | $ 1,437,000 | $ 0 | $ 343,000 | $ 343,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 6,101,000 | $ 2,514,000 | $ 0 | $ 3,587,000 | $ 0 | $ 0 | $ 1,074,000 | $ 0 | $ 0 | $ 1,074,000 | $ 0 | $ 0 | $ 91,006,000 | $ 52,223,000 | $ 5,493,000 | $ 32,257,000 | $ 1,033,000 | $ 0 | $ 5,100,000 | $ 2,548,000 | $ 805,000 | $ 1,343,000 | $ 404,000 | $ 0 | $ 15,151,000 | $ 15,151,000 | $ 0 | $ 0 | $ 0 | $ 0 |
Grade as percentage of total gross loans | 94.30% | 94.10% | 0.60% | 0.90% | 5.10% | 5.00% | 0.00% | 0.00% | 0.00% | 0.00% | 2.07% | 2.96% |
Dividends (Narrative) (Details) (USD $)
|
3 Months Ended | 9 Months Ended | ||
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Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Dividends [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.08 | $ 0.06 | $ 0.24 | $ 0.18 |
Acquisitions
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions Western National Bank Effective December 16, 2011, Washington Federal, acquired certain assets and liabilities, including most of the loans and deposits, of Western National Bank, headquartered in Phoenix, Arizona (“WNB”) from the Federal Deposit Insurance Corporation (“FDIC”) in an FDIC assisted transaction. Under the terms of the Purchase and Assumption Agreement, the Company and the FDIC agreed to a discount of $53 million on net assets and no loss sharing provision or premium on deposits. WNB operated three full-service offices in Arizona. The Company acquired certain assets with a book value of $177 million, including $143 million in loans and $7 million in foreclosed real estate, and selected liabilities with a book value of $153 million, including $136 million in deposits. Pursuant to the purchase and assumption agreement with the FDIC, the Company received a cash payment from the FDIC for $30 million. The acquisition was accounted for under the acquisition method of accounting. The purchased assets and assumed liabilities were recorded at their respective acquisition date estimated fair values. The purchase accounting for acquired assets and liabilities were provisionally recorded at their estimated fair values as of the December 16, 2011 acquisition date. The initial accounting for acquired loans, real estate held for sale and deposits was incomplete as of December 31, 2011. The amounts recognized at December 31, 2011 were determined provisionally as the fair value analysis of those assets was incomplete as of December 31, 2011. These amounts have been retrospectively adjusted to reflect the completion of the fair value analysis during the quarter ended June 30, 2012. The adjustments recorded in the quarter ended June 30, 2012 were a decrease in acquired loans of $716,000, a decrease in real estate held for sale of $252,000 and an increase in other assets of $836,000 to reflect the core deposit intangible. The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities for the period December 16, 2011 to June 30, 2012. The table below displays the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed:
South Valley Bancorp, Inc. On April 4, 2012, the Company and South Valley Bancorp, Inc. (“South Valley”) announced the signing of a definitive merger agreement. The merger agreement calls for the merger of South Valley with and into the Company, followed by the merger of South Valley's wholly owned subsidiary, South Valley Bank & Trust, into the Company's wholly owned subsidiary, Washington Federal. Under the terms of the definitive merger agreement, each outstanding share of South Valley common stock will be converted into the right to receive: (i) 0.2962 of a share of the Company's common stock, (ii) a contingent cash payment equal to the pro rata portion of an earn-out from the net proceeds collected from a pool of specified assets of South Valley with a value of approximately $39 million as of March 31, 2012, and (iii) a contingent cash payment equal to the pro rata portion of the net proceeds, if any, received by South Valley from the sale of its trust business and/or wealth management business prior to the closing of the merger. Assuming a per share price of $16.88 for the Company's common stock, the aggregate value of the stock portion of the merger consideration is approximately $33.7 million. After consummation of the merger, the combined company will have 190 offices in eight western states with total assets of approximately $14.4 billion and total deposits of approximately $9.6 billion, based on financial results as of December 31, 2011. The merger is expected to close in the third calendar quarter of 2012, pending the receipt of all requisite regulatory approvals and the satisfaction of other customary closing conditions. On June 28, 2012, the shareholders of South Valley approved the merger transaction, with over 82% of the outstanding shares of South Valley common stock voting in favor of the merger. |