Fair Value Measurements (Tables)
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9 Months Ended |
Jun. 30, 2014
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Fair Value Disclosures [Abstract] |
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Fair Value of Assets Measured on Recurring Basis |
The following tables present the balance of assets measured at fair value on a recurring basis at June 30, 2014 and September 30, 2013: | | | | | | | | | | | | | | | | | | Fair Value at June 30, 2014 | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Available-for-sale securities | | | | | | | | Equity securities | $ | 101,981 |
| | $ | — |
| | $ | — |
| | $ | 101,981 |
| Obligations of U.S. government | — |
| | 721,312 |
| | — |
| | 721,312 |
| Obligations of states and political subdivisions | — |
| | 23,277 |
| | — |
| | 23,277 |
| Corporate debt securities | — |
| | 485,083 |
| | — |
| | 485,083 |
| Mortgage-backed securities | | | | | — |
| | | Agency pass-through certificates | — |
| | 1,662,001 |
| | — |
| | 1,662,001 |
| Other Commercial MBS | — |
| | 109,367 |
| | — |
| | 109,367 |
| Total balance at end of period | $ | 101,981 |
| | $ | 3,001,040 |
| | $ | — |
| | $ | 3,103,021 |
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There were no transfers between, into and/or out of Levels 1, 2 or 3 during the quarter ended June 30, 2014. | | | | | | | | | | | | | | | | | | Fair Value at September 30, 2013 | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Available-for-sale securities | | | | | | | | Equity securities | $ | 101,237 |
| | $ | — |
| | $ | — |
| | $ | 101,237 |
| Obligations of U.S. government | — |
| | 533,975 |
| | — |
| | 533,975 |
| Obligations of states and political subdivisions | — |
| | 22,545 |
| | — |
| | 22,545 |
| Corporate debt securities | — |
| | 452,015 |
| | — |
| | 452,015 |
| Mortgage-backed securities | | | | | | | | Agency pass-through certificates | — |
| | 1,251,176 |
| | — |
| | 1,251,176 |
| Total balance at end of period | $ | 101,237 |
| | $ | 2,259,711 |
| | $ | — |
| | $ | 2,360,948 |
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Aggregated Balance of Assets Measured at Estimated Fair Value on a Nonrecurring Basis and Total Losses Resulting from Those Fair Value Adjustments |
The following tables present the aggregated balance of assets that were measured at estimated fair value on a nonrecurring basis through the nine months ended June 30, 2014 and June 30, 2013, and the total losses (gains) resulting from those fair value adjustments for the quarters and nine months ended June 30, 2014 and June 30, 2013. These estimated fair values are shown gross of estimated selling costs. | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended June 30, 2014 | | Quarter Ended June 30, 2014 | | Nine Months Ended June 30, 2014 | | Level 1 | | Level 2 | | Level 3 | | Total | | Total Losses (Gains) | | (In thousands) | | | Impaired loans (1) | $ | — |
| | $ | — |
| | $ | 10,156 |
| | $ | 10,156 |
| | $ | (775 | ) | | $ | (1,311 | ) | Covered REO (2) | — |
| | — |
| | 8,935 |
| | 8,935 |
| | 374 |
| | 503 |
| Real estate held for sale (2) | — |
| | — |
| | 43,082 |
| | 43,082 |
| | 10,400 |
| | 16,782 |
| Balance at end of period | $ | — |
| | $ | — |
| | $ | 62,173 |
| | $ | 62,173 |
| | $ | 9,999 |
| | $ | 15,974 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended June 30, 2013 | | Quarter Ended June 30, 2013 | | Nine Months Ended June 30, 2013 | | Level 1 | | Level 2 | | Level 3 | | Total | | Total Losses | | (In thousands) | | | Impaired loans (1) | $ | — |
| | $ | — |
| | $ | 64,500 |
| | $ | 64,500 |
| | $ | 1,967 |
| | $ | 13,005 |
| Covered REO (2) | — |
| | — |
| | 18,312 |
| | 18,312 |
| | 231 |
| | 603 |
| Real estate held for sale (2) | — |
| | — |
| | 77,080 |
| | 77,080 |
| | 5,626 |
| | 19,650 |
| Balance at end of period | $ | — |
| | $ | — |
| | $ | 159,892 |
| | $ | 159,892 |
| | $ | 7,824 |
| | $ | 33,258 |
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___________________ | | (1) | The losses represents remeasurements of collateral-dependent loans. |
| | (2) | The losses represents aggregate writedowns and charge-offs on real estate held for sale. |
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Fair Value of Financial Instruments by Balance Sheet Grouping |
Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below. | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2014 | | September 30, 2013 | | | Level in Fair Value Hierarchy | | Carrying Amount | | Estimated Fair Value | | Carrying Amount | | Estimated Fair Value | | | | | (In thousands) | Financial assets | | | | | | | | | | | Cash and cash equivalents | | 1 | | $ | 861,304 |
| | $ | 861,304 |
| | $ | 203,563 |
| | $ | 203,563 |
| Available-for-sale securities | | | | | | | | | | | Equity securities | | 1 | | 101,981 |
| | 101,981 |
| | 101,237 |
| | 101,237 |
| Obligations of U.S. government | | 2 | | 721,312 |
| | 721,312 |
| | 533,975 |
| | 533,975 |
| Obligations of states and political subdivisions | | 2 | | 23,277 |
| | 23,277 |
| | 22,545 |
| | 22,545 |
| Corporate debt securities | | 2 | | 485,083 |
| | 485,083 |
| | 452,015 |
| | 452,015 |
| Mortgage-backed securities | | | | | | | | | | | Agency pass-through certificates | | 2 | | 1,662,001 |
| | 1,662,001 |
| | 1,251,176 |
| | 1,251,176 |
| Other Commercial MBS | | 2 | | 109,367 |
| | 109,367 |
| | — |
| | — |
| Total available-for-sale securities | | | | 3,103,021 |
| | 3,103,021 |
| | 2,360,948 |
| | 2,360,948 |
| Held-to-maturity securities | | 2 | | | | | | | | | Total held-to-maturity securities | | | | 1,583,852 |
| | 1,534,239 |
| | 1,654,666 |
| | 1,582,849 |
| | | | | | | | | | | | Loans receivable | | 3 | | 7,965,954 |
| | 8,516,535 |
| | 7,528,030 |
| | 8,070,279 |
| Covered loans | | 3 | | 207,207 |
| | 212,002 |
| | 295,947 |
| | 300,610 |
| FDIC indemnification asset | | 3 | | 44,065 |
| | 43,117 |
| | 64,615 |
| | 62,300 |
| FHLB and FRB stock | | 2 | | 162,904 |
| | 162,904 |
| | 173,009 |
| | 173,009 |
| | | | | | | | | | | | Financial liabilities | | | | | | | | | | | Customer accounts | | 2 | | 10,765,680 |
| | 10,050,132 |
| | 9,090,271 |
| | 8,585,068 |
| FHLB advances and other borrowings | | 2 | | 1,930,000 |
| | 2,055,239 |
| | 1,930,000 |
| | 2,064,248 |
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The following table presents the fair value and balance sheet classification of derivatives not designated as hedging instruments at June 30, 2014 and September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset Derivatives | | Liability Derivatives | | | June 30, 2014 | | September 30, 2013 | | June 30, 2014 | | September 30, 2013 | | | Balance Sheet | | | | Balance Sheet | | | | Balance Sheet | | | | Balance Sheet | | | | | Location | | Fair Value | | Location | | Fair Value | | Location | | Fair Value | | Location | | Fair Value | | | (In thousands) | Interest rate contracts | | Other assets | | $ | 2,731 |
| | Other assets | | $ | 7 |
| | Other liabilities | | $ | 2,731 |
| | Other liabilities | | $ | 7 |
| Commitments to purchase MBS | | AFS securities | | — |
| | AFS securities | | $ | 3,188 |
| | N/A | | N/A | | N/A | | N/A |
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Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities |
The following tables provide a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities as of June 30, 2014, and September 30, 2013: | | | | | | | | | | | | | | | | | | | | | June 30, 2014 | | Amortized Cost | | Gross Unrealized | | Fair Value | | Yield | | Gains | | Losses | | | (In thousands) | Available-for-sale securities | | | | | | | | | | U.S. government and agency securities due | | | | | | | | | | 1 to 5 years | $ | 111,002 |
| | $ | 2,834 |
| | $ | (381 | ) | | $ | 113,455 |
| | 1.57 |
| 5 to 10 years | 140,989 |
| | 562 |
| | (62 | ) | | 141,489 |
| | 1.55 |
| Over 10 years | 465,229 |
| | 1,761 |
| | (622 | ) | | 466,368 |
| | 1.56 |
| Equity Securities | | | | | | | | | | Within 1 year | 500 |
| | 13 |
| | — |
| | 513 |
| | 1.80 |
| 1 to 5 years | 100,000 |
| | 1,468 |
| | — |
| | 101,468 |
| | 1.90 |
| 5 to 10 years | — |
| | — |
| | — |
| | — |
| | — |
| Corporate bonds due | | | | | | | | | | Within 1 year | — |
| | — |
| | — |
| | — |
| | — |
| 1 to 5 years | 317,452 |
| | 2,562 |
| | — |
| | 320,014 |
| | 0.72 |
| 5 to 10 years | 113,165 |
| | 2,064 |
| | (160 | ) | | 115,069 |
| | 1.49 |
| Over 10 years | 50,000 |
| | — |
| | — |
| | 50,000 |
| | 3.00 |
| Municipal bonds due | | | | | | | | | | Over 10 years | 20,407 |
| | 2,870 |
| | — |
| | 23,277 |
| | 6.45 |
| Mortgage-backed securities | | | | | | | | | | Agency pass-through certificates | 1,636,366 |
| | 27,896 |
| | (2,261 | ) | | 1,662,001 |
| | 2.59 |
| Other Commercial MBS | 109,300 |
| | 67 |
| | — |
| | 109,367 |
| | 1.69 |
| | 3,064,410 |
| | 42,097 |
| | (3,486 | ) | | 3,103,021 |
| | 2.09 |
| Held-to-maturity securities | | | | | | | | | | Mortgage-backed securities | | | | | | | | | | Agency pass-through certificates | 1,583,853 |
| | 6,010 |
| | (55,623 | ) | | 1,534,240 |
| | 3.13 |
| | $ | 4,648,263 |
| | $ | 48,107 |
| | $ | (59,109 | ) | | $ | 4,637,261 |
| | 2.46 | % |
| | | | | | | | | | | | | | | | | | | | | September 30, 2013 | | Amortized Cost | | Gross Unrealized | | Fair Value | | Yield | | Gains | Losses | | | (In thousands) | Available-for-sale securities | | | | | | | | | | U.S. government and agency securities due | | | | | | | | | | 1 to 5 years | $ | 61,002 |
| | $ | 3,393 |
| | $ | (252 | ) | | $ | 64,143 |
| | 1.98 |
| 5 to 10 years | 129,219 |
| | — |
| | (1,547 | ) | | 127,672 |
| | 0.86 |
| Over 10 years | 344,571 |
| | — |
| | (2,411 | ) | | 342,160 |
| | 0.93 |
| Equity Securities | | | | | | | | | | 1 to 5 years | 500 |
| | 11 |
| | — |
| | 511 |
| | 2.17 |
| 5 to 10 years | 100,000 |
| | 726 |
| | — |
| | 100,726 |
| | 1.80 |
| Corporate bonds due | | | | | | | | | | Within 1 year | 19,500 |
| | 3 |
| | — |
| | 19,503 |
| | 0.49 |
| 1 to 5 years | 317,190 |
| | 1,980 |
| | (130 | ) | | 319,040 |
| | 0.75 |
| 5 to 10 years | 113,060 |
| | 1,180 |
| | (768 | ) | | 113,472 |
| | 1.53 |
| Municipal bonds due | | | | | | | | | | Over 10 years | 20,422 |
| | 2,123 |
| | — |
| | 22,545 |
| | 6.45 |
| Mortgage-backed securities | | | | | | | | | | Agency pass-through certificates | 1,245,400 |
| | 10,270 |
| | (4,494 | ) | | 1,251,176 |
| | 2.18 |
| | 2,350,864 |
| | 19,686 |
| | (9,602 | ) | | 2,360,948 |
| | 1.70 |
| Mortgage-backed securities | | | | | | | | | | Agency pass-through certificates | 1,654,666 |
| | 3,387 |
| | (75,204 | ) | | 1,582,849 |
| | 3.14 |
| | $ | 4,005,530 |
| | $ | 23,073 |
| | $ | (84,806 | ) | | $ | 3,943,797 |
| | 2.30 | % |
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Schedule of Unrealized Losses and Fair Value of Securities |
The following tables indicate the total unrealized gross losses in the securities portfolio (shown above). The unrealized gross losses and fair value of securities as of June 30, 2014 and September 30, 2013 are also shown by the length of time that individual securities in each category have been in a continuous loss position. Management believes that the declines in fair value of these investments are not an other than temporary impairment. | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2014 | Less than 12 months | | 12 months or more | | Total | | Unrealized Gross Losses | | Fair Value | | Unrealized Gross Losses | | Fair Value | | Unrealized Gross Losses | | Fair Value | | (In thousands) | | | Corporate bonds due | $ | (98 | ) | | $ | 24,903 |
| | $ | (62 | ) | | $ | 9,938 |
| | $ | (160 | ) | | $ | 34,841 |
| U.S. government and agency securities due | (464 | ) | | 74,536 |
| | (602 | ) | | 217,016 |
| | (1,066 | ) | | 291,552 |
| Agency pass-through certificates | (3,332 | ) | | 156,691 |
| | (54,551 | ) | | 1,434,549 |
| | (57,883 | ) | | 1,591,240 |
| | $ | (3,894 | ) | | $ | 256,130 |
| | $ | (55,215 | ) | | $ | 1,661,503 |
| | $ | (59,109 | ) | | $ | 1,917,633 |
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| | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2013 | Less than 12 months | | 12 months or more | | Total | | Unrealized Gross Losses | | Fair Value | | Unrealized Gross Losses | | Fair Value | | Unrealized Gross Losses | | Fair Value | | (In thousands) | | | Corporate bonds due | $ | (660 | ) | | $ | 52,434 |
| | $ | (238 | ) | | $ | 9,763 |
| | $ | (898 | ) | | $ | 62,197 |
| U.S. government and agency securities due | (4,144 | ) | | 309,109 |
| | (66 | ) | | 14,091 |
| | (4,210 | ) | | 323,200 |
| Agency pass-through certificates | (78,291 | ) | | 1,703,948 |
| | (1,407 | ) | | 166,503 |
| | (79,698 | ) | | 1,870,451 |
| | $ | (83,095 | ) | | $ | 2,065,491 |
| | $ | (1,711 | ) | | $ | 190,357 |
| | $ | (84,806 | ) | | $ | 2,255,848 |
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