10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2015

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-34654

WASHINGTON FEDERAL, INC.

(Exact name of registrant as specified in its charter)

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)

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Title of class:	at February 3, 2016
Common stock, $1.00 par value	91,563,241

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I
Item 1.	Financial Statements (Unaudited)
	The Consolidated Financial Statements of Washington Federal, Inc. and Subsidiaries filed as a part of the report are as follows:
	Consolidated Statements of Financial Condition as of December 31, 2015 and September 30, 2015	3
	Consolidated Statements of Operations for the quarters ended December 31, 2015 and December 31, 2014	4
	Consolidated Statements of Comprehensive Income for the quarters ended December 31, 2015 and December 31, 2014	5
	Consolidated Statements of Stockholders' Equity for the quarters ended December 31, 2015 and December 31, 2014	6
	Consolidated Statements of Cash Flows for the quarters ended December 31, 2015 and December 31, 2014	7
	Notes to Interim Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	43
PART II
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	46
	Signatures	47

2

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

	December 31, 2015			September 30, 2015
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	305,959		$	284,049
Available-for-sale securities, at fair value	2,304,788			2,380,563
Held-to-maturity securities, at amortized cost	1,598,370			1,643,216
Loans receivable, net	9,402,730			9,170,634
Interest receivable	38,259			40,429
Premises and equipment, net	288,796			276,247
Real estate owned	42,098			61,098
FHLB and FRB stock	111,107			107,198
Bank owned life insurance	103,281			102,496
Intangible assets, including goodwill of $291,503	298,719			299,358
Federal and state income tax assets, net	716			14,513
Other assets	190,076			188,523
	$	14,684,899		$	14,568,324
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Customer accounts
Transaction deposit accounts	$	5,924,084		$	5,820,878
Time deposit accounts	4,727,035			4,810,825
	10,651,119			10,631,703
FHLB advances	1,928,000			1,830,000
Advance payments by borrowers for taxes and insurance	21,747			50,224
Accrued expenses and other liabilities	113,793			100,718
	12,714,659			12,612,645
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,100,924 and 133,695,803 shares issued; 92,918,434 and 92,936,395 shares outstanding	134,101			133,696
Paid-in capital	1,649,529			1,643,712
Accumulated other comprehensive income (loss), net of taxes	(4,432		)	353
Treasury stock, at cost; 41,182,490 and 40,759,408 shares	(661,774		)	(651,836		)
Retained earnings	852,816			829,754
	1,970,240			1,955,679
	$	14,684,899		$	14,568,324

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Quarter Ended December 31,
	2015		2014
	(In thousands, except per share data)
INTEREST INCOME
Loans	$	112,863	$	108,293
Mortgage-backed securities	16,987		19,175
Investment securities and cash equivalents	5,274		5,273
	135,124		132,741
INTEREST EXPENSE
Customer accounts	12,717		13,445
FHLB advances and other borrowings	15,538		17,113
	28,255		30,558
Net interest income	106,869		102,183
Provision for (reversal of) allowance for loan losses	—		(5,500		)
Net interest income after reversal of provision for loan losses	106,869		107,683
OTHER INCOME
Loan fee income	1,517		2,065
Deposit fee income	5,917		5,977
Other income (expense)	3,201		(2,662		)
	10,635		5,380
OTHER EXPENSE
Compensation and benefits	29,699		29,160
Occupancy	8,592		8,135
FDIC insurance premiums	2,589		674
Product delivery	5,523		5,627
Information technology	8,710		4,030
Other expense	9,396		5,974
	64,509		53,600
Gain on real estate acquired through foreclosure, net	1,420		315
Income before income taxes	54,415		59,778
Income tax provision	19,317		21,371
NET INCOME	$	35,098	$	38,407
PER SHARE DATA
Basic earnings	$	0.38	$	0.39
Diluted earnings	0.38		0.39
Dividends paid on common stock per share	0.13		0.15
Basic weighted average number of shares outstanding	92,986,358		98,147,939
Diluted weighted average number of shares outstanding	93,577,837		98,524,839

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	Quarter Ended December 31,
	2015			2014
	(In thousands)
Net income	$	35,098		$	38,407
Other comprehensive income (loss) net of tax:
Net unrealized gain (loss) on available-for-sale securities	(10,360		)	8,560
Related tax benefit (expense)	3,807			(3,146		)
	(6,553		)	5,414
Net unrealized gain (loss) on long-term borrowing hedge	2,795			(4,249		)
Related tax benefit (expense)	(1,027		)	1,562
	1,768			(2,687		)
Other comprehensive income (loss) net of tax	(4,785		)	2,727
Comprehensive income	$	30,313		$	41,134

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(UNAUDITED)

(in thousands)	Common Stock		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance at October 1, 2015	$	133,696	$	1,643,712	$	829,754		$	353		$	(651,836	)	$	1,955,679
Net income					35,098									35,098
Other comprehensive income (loss)								(4,785		)				(4,785		)
Dividends on common stock					(12,036		)							(12,036		)
Compensation expense related to common stock options			300											300
Proceeds from exercise of common stock options	227		4,815											5,042
Restricted stock expense	178		702											880
Treasury stock acquired											(9,938		)	(9,938		)
Balance at December 31, 2015	$	134,101	$	1,649,529	$	852,816		$	(4,432	)	$	(661,774	)	$	1,970,240
(in thousands)	Common Stock		Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income			Treasury Stock			Total
Balance at October 1, 2014	$	133,323	$	1,638,211	$	706,149		$	20,708		$	(525,108	)	$	1,973,283
Net income					38,407									38,407
Other comprehensive income (loss)								2,727						2,727
Dividends on common stock					(10,159		)							(10,159		)
Compensation expense related to common stock options			300											300
Proceeds from exercise of common stock options	18		248											266
Restricted stock expense	250		591											841
Treasury stock acquired											(24,326		)	(24,326		)
Balance at December 31, 2014	$	133,591	$	1,639,350	$	734,397		$	23,435		$	(549,434	)	$	1,981,339

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

6

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended December 31,
	2015			2014
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	35,098		$	38,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	2,934			5,299
Cash received from (paid to) FDIC under loss share	1,975			(431		)
Stock option compensation expense	300			300
Reversal of provision for loan losses	—			(5,500		)
Gain on investment securities and real estate held for sale	(2,310		)	(9,606		)
Decrease in accrued interest receivable	2,170			11,280
Decrease in federal and state income tax receivable	16,577			19,208
Increase in cash surrender value of bank owned life insurance	(785		)	(216		)
Increase in other assets	(3,754		)	(14,552		)
Increase (decrease) in accrued expenses and other liabilities	15,870			(25,890		)
Net cash provided by operating activities	68,075			18,299
CASH FLOWS FROM INVESTING ACTIVITIES
Origination of loans and principal repayments, net	(179,768		)	(36,993		)
Loans purchased	(51,646		)	(46,831		)
FHLB & FRB stock purchased	(6,809		)	—
FHLB & FRB stock redemption	2,901			3,969
Available-for-sale securities purchased	(50,741		)	(41,225		)
Principal payments and maturities of available-for-sale securities	114,764			202,760
Principal payments and maturities of held-to-maturity securities	43,569			31,178
Proceeds from sales of real estate owned	26,664			17,909
Purchase of bank owned life insurance	—			(100,000		)
Premises and equipment purchased and REO improvements	(17,183		)	(2,019		)
Net cash provided by (used in) investing activities	(118,249		)	28,748
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in customer accounts	19,492			(137,999		)
Proceeds from borrowings	204,000			—
Repayments of borrowings	(106,000		)	(100,000		)
Proceeds from exercise of common stock options and related tax benefit	5,042			266
Dividends paid on common stock	(12,036		)	(14,359		)
Treasury stock purchased	(9,938		)	(24,326		)
Decrease in advance payments by borrowers for taxes and insurance	(28,476		)	(9,703		)
Net cash provided by (used in) financing activities	72,084			(286,121		)
Increase (decrease) in cash and cash equivalents	21,910			(239,074		)
Cash and cash equivalents at beginning of period	284,049			781,843
Cash and cash equivalents at end of period	$	305,959		$	542,769

(CONTINUED)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

7

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended December 31,
	2015		2014
	(In thousands)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Non-cash investing activities
Real estate acquired through foreclosure	$	5,308	$	8,852
Covered real estate acquired through foreclosure	—		51
Cash paid during the period for
Interest	29,195		34,653
Income taxes	8		23

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

8

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE A – Summary of Significant Accounting Policies

Nature of Operations - Washington Federal, Inc. is a Washington corporation headquartered in Seattle, Washington. The Company is a bank holding company that conducts its operations through a federally-insured national bank subsidiary. The Bank is principally engaged in the business of attracting deposits from the general public and investing these funds, together with borrowings and other funds, in one-to-four family residential mortgage and construction loans, home equity loans, lines of credit, commercial and industrial loans, multi-family and other forms of real estate loans. As used throughout this document, the terms "Washington Federal" or the "Company" refer to Washington Federal, Inc. and its consolidated subsidiaries and the term "Bank" refers to the operating subsidiary Washington Federal, National Association.

Basis of Presentation - The consolidated unaudited interim financial statements included in this report have been prepared by Washington Federal. All intercompany transactions and accounts have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation are reflected in the interim financial statements. The September 30, 2015 Consolidated Statement of Financial Condition was derived from audited financial statements.

The information included in this Form 10-Q should be read in conjunction with the financial statements and related notes in the Company's 2015 Annual Report on Form 10-K (“2015 Form 10-K”). Interim results are not necessarily indicative of results for a full year.

Summary of Significant Accounting Policies - The significant accounting policies used in preparation of the Company's consolidated financial statements are disclosed in its 2015 Form10-K. There have not been any material changes in our significant accounting policies compared to those contained in our 2015 Form 10-K disclosure for the year ended September 30, 2015.

Off-Balance-Sheet Credit Exposures – The only material off-balance-sheet credit exposures are loans in process and unused lines of credit, which had a combined balance of $923,891,000 and $816,014,000 at December 31, 2015 and September 30, 2015, respectively. The Company estimates losses on off-balance-sheet credit exposures by allocating a loss percentage derived from historical loss factors for each asset class.

NOTE B – New Accounting Pronouncements

In January 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The new guidance clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. ASU 2014-04 is effective for annual and interim reporting periods within those annual periods, beginning after December 15, 2014. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments are effective for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. ASU 2015-03 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was to be effective for interim and annual periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year and permits companies to voluntarily adopt the new standard as of the original effective date. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

9

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

On April 15, 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance in this ASU are effective for interim and annual periods beginning after December 15, 2015 and can be adopted either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. the amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in ASU 2015-16 are effective for years beginning after December 15, 2015. Early adoption is permitted for reporting periods for which financial statements have not been issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

NOTE C – Dividends and Share Repurchases

On January 20, 2016, the Company announced its 132nd consecutive quarterly cash dividend on common stock of $0.14 per share. The current dividend will be paid on February 12, 2016, to common shareholders of record on February 1, 2016. Dividends per share were $0.13 and $0.15 for the quarters ended December 31, 2015 and 2014, respectively. For the three months endedDecember 31, 2015, the Company repurchased 423,082 shares at an average price of $23.49. For the three months ended December 31, 2014, the Company repurchased 1,116,147 shares at an average price of $21.79. There are 3,778,148 remaining shares that can be repurchased under the current Board approved program.

10

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE D – Loans Receivable

The following table is a summary of loans receivable (including LIP, net of charge offs.)

	December 31, 2015				September 30, 2015
	(In thousands)				(In thousands)
Non-Acquired loans
Single-family residential	$	5,629,715	55.7	%	$	5,651,845	57.5	%
Construction	660,238		6.5		200,509		2.0
Construction - custom	404,849		4.0		396,307		4.0
Land - acquisition & development	97,025		1.0		94,208		1.0
Land - consumer lot loans	102,376		1.0		103,989		1.1
Multi-family	997,696		9.9		1,125,722		11.5
Commercial real estate	839,157		8.3		986,270		10.0
Commercial & industrial	751,073		7.4		612,836		6.2
HELOC	127,919		1.3		127,646		1.3
Consumer	181,142		1.8		194,655		2.0
Total non-acquired loans	9,791,190		96.9	%	9,493,987		96.6	%
Acquired loans	164,380		1.6		166,293		1.7
Credit impaired acquired loans	116,030		1.1		87,081		0.9
Covered loans	38,584		0.4		75,909		0.8
Total gross loans	10,110,184		100.0	%	9,823,270		100.0	%
Less:
Allowance for probable losses	107,901				106,829
Loans in process	535,850				476,796
Discount on acquired loans	25,040				30,095
Deferred net origination fees	38,663				38,916
Total loan contra accounts	707,454				652,636
Net Loans	$	9,402,730			$	9,170,634

11

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following table sets forth information regarding non-accrual loans.

	December 31, 2015				September 30, 2015
	(In thousands)
Non-accrual loans:
Single-family residential	$	43,856	77.3	%	$	59,074	87.1	%
Construction	—		—		754		1.1	%
Construction - custom	2,518		4.4		732		1.1	%
Land - acquisition & development	509		0.9		—		—	%
Land - consumer lot loans	939		1.7		1,273		1.9	%
Multi-family	1,538		2.7		2,558		3.8	%
Commercial real estate	6,681		11.8		2,176		3.2	%
Commercial & industrial	115		0.2		—		—	%
HELOC	473		0.8		563		0.8	%
Consumer	119		0.2		680		1.0	%
Total non-accrual loans	$	56,748	100	%	$	67,810	100	%

The Company recognized interest income on nonaccrual loans of approximately $1,257,000 in the three months endedDecember 31, 2015. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $687,000 for the three months endedDecember 31, 2015. The recognized interest income includes more than three months of interest for some of the loans that were brought current.

The following tables provide details regarding delinquent loans.

December 31, 2015	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	$	5,644,009	$	5,576,774	$	17,285	$	9,939	$	40,010	$	67,234	1.19	%
Construction	325,485		324,619		560		306		—		866		0.27
Construction - Custom	221,327		218,773		28		9		2,518		2,554		1.15
Land - Acquisition & Development	85,830		84,805		387		—		638		1,025		1.19
Land - Consumer Lot Loans	102,887		100,224		828		897		938		2,663		2.59
Multi-Family	966,921		965,110		1,196		—		615		1,811		0.19
Commercial Real Estate	929,495		920,582		841		1,933		6,139		8,913		0.96
Commercial & Industrial	756,831		754,611		2,219		1		—		2,220		0.29
HELOC	125,479		124,883		19		19		558		595		0.47
Consumer	181,431		179,977		882		352		221		1,454		0.80
	9,339,695		9,250,358		24,245		13,456		51,637		89,335		0.96
Acquired loans	140,995		140,137		193		16		649		858		0.61
Credit impaired acquired loans	55,060		52,806		854		—		1,400		2,254		4.09
Covered loans	38,584		37,062		501		295		726		1,522		3.94
Total Loans	$	9,574,334	$	9,480,363	$	25,793	$	13,767	$	54,412	$	93,969	0.98	%
Delinquency %			99.02%		0.27%		0.14%		0.57%		0.98%

12

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

September 30, 2015	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	$	5,655,928	$	5,590,673	$	17,305	$	7,757	$	40,193	$	65,255	1.15	%
Construction	130,121		130,121		—		—		—		—		—
Construction - Custom	205,692		204,168		791		270		463		1,524		0.74
Land - Acquisition & Development	75,661		74,737		406		—		518		924		1.22
Land - Consumer Lot Loans	104,494		102,045		689		399		1,361		2,449		2.34
Multi-Family	1,068,038		1,065,667		259		454		1,658		2,371		0.22
Commercial Real Estate	893,072		892,180		131		—		761		892		0.10
Commercial & Industrial	617,545		616,602		93		27		823		943		0.15
HELOC	127,648		127,196		174		27		251		452		0.35
Consumer	194,977		194,259		493		170		55		718		0.37
	9,073,176		8,997,648		20,341		9,104		46,083		75,528		0.83
Acquired loans	57,682		56,559		356		—		767		1,123		1.95
Credit impaired acquired loans	139,726		138,940		243		4		539		786		0.56
Covered loans	75,890		70,729		272		90		4,799		5,161		6.80
Total Loans	$	9,346,474	$	9,263,876	$	21,212	$	9,198	$	52,188	$	82,598	0.88	%
Delinquency %			99.12%		0.23%		0.10%		0.56%		0.88%

The percentage of total delinquent loans increased from 0.88% as of September 30, 2015 to 0.98% as of December 31, 2015.

The following table provides information related to loans that were restructured in at TDR during the periods presented:

	Quarter Ended December 31,
	2015					2014
		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	3	$	729	$	729	35	$	9,600	$	9,600
Construction	—	—		—		2	718		718
Land - consumer lot loans	—	—		—		2	532		532
Commercial real estate	5	965		965		—	—		—
Consumer	—	—		—		1	85		85
	8	$	1,694	$	1,694	40	$	10,935	$	10,935

The following table provides information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	Quarter Ended December 31,
	2015			2014
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
TDRs That Subsequently Defaulted:
Single-family residential	5	$	668	8	$	1,431
Land - consumer lot loans	1	148		3	389
	6	$	816	11	$	1,820

Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modification due to temporary financial difficulties. As of December 31, 2015, 96.6% of the Bank's $282,723,000 in TDRs were classified as performing. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of December 31, 2015, single-family residential loans comprised 86.1% of TDRs.

The Company reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area.

The following table shows the changes in accretable yield for acquired impaired loans and acquired non-impaired loans (including covered loans).

	Quarter Ended December 31, 2015												Fiscal Year Ended September 30, 2015
	Acquired Impaired						Acquired Non-impaired						Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)												(In thousands)
Beginning balance	$	72,705		$	111,300		$	7,204		$	187,080		$	97,125		$	135,826		$	14,513		$	275,862
Additions	—			—			—			—			—			—			—			—
Net reclassification from nonaccretable	—			—			—			—			6,307			—			346			—
Accretion	(5,526		)	5,526			(857		)	857			(30,727		)	30,727			(7,655		)	7,655
Transfers to REO	—			—			—			—			—			(2,975		)	—			(150		)
Payments received, net	—			(7,680		)	—			(3,790		)	—			(52,278		)	—			(96,287		)
Ending Balance	$	67,179		$	109,146		$	6,347		$	184,147		$	72,705		$	111,300		$	7,204		$	187,080

The excess of cash flows expected to be collected over the initial fair value of acquired impaired loans is referred to as the accretable yield and this amount is accreted into interest income over the estimated life of the acquired loans using the effective interest method. Other adjustments to the accretable yield include changes in the estimated remaining life of the acquired loans, changes in expected cash flows and changes in the respective indices for acquired loans with variable interest rates.

Additionally, as of December 31, 2015 the Company has $1,700,000 remaining in loans it acquired during fiscal 2013 as part of the South Valley Bank acquisition for which it was probable at acquisition that all contractually required payments would not be collected. The timing and amount of future cash flows cannot not be reasonably estimated; therefore, these loan are accounted for on a cash basis.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

At December 31, 2015 and September 30, 2015, none of the acquired impaired or non-impaired loans were classified as non-performing assets. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.

Covered loans were $38,584,000 at December 31, 2015 compared to $75,909,000 as of September 30, 2015, the decrease being attributable to FDIC loss share coverage on commercial loans from the former Home Valley Bank that expired after September 30, 2015. The FDIC loss share coverage for single family residential loans will continue for another five years. The remaining portfolio of covered loans is expected to continue to decline over time, absent another FDIC assisted transaction.

The following table shows activity for the FDIC indemnification asset:

	Three Months Ended December 31, 2015			Fiscal Year Ended September 30, 2015
	(In thousands)
Balance at beginning of period	$	16,275		$	36,860
Additions	—			(1,795		)
Payments received	(1,974		)	(720		)
Amortization	(287		)	(18,588		)
Accretion	62			518
Balance at end of period	$	14,076		$	16,275

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE E – Allowance for Losses on Loans

The following tables summarize the activity in the allowance for loan losses.

Three Months Ended December 31, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	47,347	$	(1,139	)	$	2,466	$	(918	)	$	47,756
Construction	6,680		—			155		179			7,014
Construction - custom	990		(60		)	—		132			1,062
Land - acquisition & development	5,781		—			35		962			6,778
Land - consumer lot loans	2,946		(408		)	—		463			3,001
Multi-family	5,304		—			—		(257		)	5,047
Commercial real estate	8,960		(23		)	123		1,284			10,344
Commercial & industrial	24,980		(248		)	1		(637		)	24,096
HELOC	902		(1		)	21		(102		)	820
Consumer	2,939		(242		)	392		(1,106		)	1,983
	$	106,829	$	(2,121	)	$	3,193	$	—		$	107,901

Fiscal Year Ended September 30, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	62,763	$	(5,524	)	$	13,403	$	(23,295	)	$	47,347
Construction	6,742		(388		)	$	120	206			6,680
Construction - custom	1,695		—			—		(705		)	990
Land - acquisition & development	5,592		(38		)	207		20			5,781
Land - consumer lot loans	3,077		(459		)	221		107			2,946
Multi-family	4,248		—			220		836			5,304
Commercial real estate	7,548		(1,711		)	735		2,388			8,960
Commercial & industrial	16,527		(3,354		)	1,374		10,433			24,980
HELOC	928		(66		)	2		38			902
Consumer	3,227		(3,060		)	3,688		(916		)	2,939
Covered loans	2,244		—			—		(2,244		)	—
	$	114,591	$	(14,600	)	$	19,970	$	(13,132	)	$	106,829

There was no provision for loan losses recorded for the three months endedDecember 31, 2015, which compares to a reversal of provision of $5,500,000 for the three months endedDecember 31, 2014. The lack of provision for the quarter ended December 31, 2015 was a result of continued improvement in credit quality of the loan portfolio offset by net growth in the loan portfolio. The related improvement in the credit quality of the loan portfolio relates to the factors below.

The Company had recoveries, net of charge-offs, of $1,072,000 for the quarter ended December 31, 2015, compared with $842,000 of net recoveries for the same quarter one year ago. Non-performing assets amounted to $98,846,000, or 0.67%, of total assets at December 31, 2015, compared to $164,317,000, or 1.13% of total assets at December 31, 2014. Non-accrual loans decreased from $98,353,000 at December 31, 2014, to $56,748,000 at December 31, 2015, a 42.3% decrease. The percentage of delinquent loans decreased from 1.47% at December 31, 2014, to 0.98% at December 31, 2015.

The reserve for unfunded commitments was $3,085,000 as of December 31, 2015, which is unchanged since September 30, 2015.

Management believes the allowance for loan losses plus the reserve for unfunded commitments, totaling $110,986,000, or 1.10% of gross loans, is sufficient to absorb estimated losses inherent in the portfolio.

16

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Acquired loans, including covered loans, are not usually classified as non-performing because at acquisition, the carrying value of these loans is recorded at fair value. As of December 31, 2015, $25,223,000 in acquired loans were subject to the general allowance as the discount related to these balances was no longer sufficient to absorb all of the expected losses.

The following tables show loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.

December 31, 2015	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans (1)		Ratio		Allowance Allocation		Recorded Investment of Loans (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	47,625	$	5,614,580	0.8	%	$	130	$	14,206	0.9	%
Construction	7,014		121,689		5.8		—		—		—
Construction - custom	1,062		218,749		0.5		—		2,578		—
Land - acquisition & development	6,778		77,223		8.8		—		6,649		—
Land - consumer lot loans	3,001		91,664		3.3		—		10,658		—
Multi-family	5,048		1,085,243		0.5		—		3,500		—
Commercial real estate	10,344		939,248		1.1		—		9,811		—
Commercial & industrial	24,096		776,240		3.1		—		27		—
HELOC	820		126,596		0.6		—		1,310		—
Consumer	1,983		180,814		1.1		—		328		—
	$	107,771	$	9,232,046	1.2	%	$	130	$	49,067	0.3	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

September 30, 2015	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans (1)		Ratio		Allowance Allocation		Recorded Investment of Loans (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	47,073	$	5,595,752	0.8	%	$	275	$	51,718	0.5	%
Construction	6,680		124,679		5.4		—		5,441		—
Construction - custom	990		205,692		0.5		—		—		—
Land - acquisition & development	5,781		72,602		8.0		—		2,198		—
Land - consumer lot loans	2,946		93,103		3.2		—		10,824		—
Multi-family	5,304		1,062,194		0.5		—		5,348		—
Commercial real estate	8,960		844,691		1.1		—		8,826		—
Commercial & industrial	24,980		643,577		3.9		—		—		—
HELOC	902		126,594		0.7		—		1,072		—
Consumer	2,938		194,569		1.5		—		86		—
	$	106,554	$	8,963,453	1.2	%	$	275	$	85,513	0.3	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

As of December 31, 2015, $107,771,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $130,000 was specific reserves on loans deemed to be individually impaired. As of September 30,

17

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

2015, $106,554,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $275,000 was specific reserves on loans deemed to be individually impaired.

The Company has an asset quality review function that analyzes its loan portfolios and reports the results of the review to the Board of Directors on a quarterly basis. The single-family residential, HELOC and consumer portfolios are evaluated based on their performance as a pool of loans, since no single loan is individually significant or judged by its risk rating, size or potential risk of loss. The construction, land, multi-family, commercial real estate and commercial and industrial loans are risk rated on a loan by loan basis to determine the relative risk inherent in specific borrowers or loans. Based on that risk rating, the loans are assigned a grade and classified as follows:

• 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.

18

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following tables provide information on loans based on risk rating categories as defined above.

December 31, 2015	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,551,785		$	—		$	77,930		$	—		$	—		$	5,629,715
Construction	655,964			4,274			—			—			—			660,238
Construction - custom	402,000			—			2,849			—			—			404,849
Land - acquisition & development	87,772			5,627			3,626			—			—			97,025
Land - consumer lot loans	100,125			—			2,251			—			—			102,376
Multi-family	997,696			—			—			—			—			997,696
Commercial real estate	813,974			8,111			17,073			—			—			839,157
Commercial & industrial	713,240			3,058			34,775			—			—			751,073
HELOC	127,198			—			721			—			—			127,919
Consumer	180,892			—			250			—			—			181,142
	9,630,645			21,070			139,475			—			—			9,791,190
Non-impaired acquired loans	152,761			—			11,619			—			—			164,380
Credit-impaired acquired loans	79,555			199			36,276			—			—			116,030
Covered loans	37,555			—			1,029			—			—			38,584
Total gross loans	$	9,900,516		$	21,269		$	188,399		$	—		$	—		$	10,110,184
Total grade as a % of total gross loans	97.9		%	0.2		%	1.9		%	—		%	—		%

19

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

September 30, 2015	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,558,700		$	—		$	93,145		$	—		$	—		$	5,651,845
Construction	197,935			—			2,574			—			—			200,509
Construction - custom	396,307			—			—			—			—			396,307
Land - acquisition & development	89,656			—			4,552			—			—			94,208
Land - consumer lot loans	103,569			—			420			—			—			103,989
Multi-family	1,118,673			865			6,184			—			—			1,125,722
Commercial real estate	971,510			4,360			10,400			—			—			986,270
Commercial & industrial	575,034			1,496			36,306			—			—			612,836
HELOC	127,398			—			248			—			—			127,646
Consumer	194,451			—			204			—			—			194,655
	9,333,233			6,721			154,033			—			—			9,493,987
Non-impaired acquired loans	149,891			—			16,402			—			—			166,293
Credit-impaired acquired loans	61,019			—			26,062			—			—			87,081
Covered loans	61,776			—			14,133			—			—			75,909
Total gross loans	$	9,605,919		$	6,721		$	210,630		$	—		$	—		$	9,823,270
Total grade as a % of total gross loans	97.8		%	0.1		%	2.1		%	—		%	—		%

The following tables provide information on loans (excluding acquired and covered loans) based on borrower payment activity.

December 31, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,585,859	99.2	%	$	43,856	0.8	%
Construction	660,238		100.0		—		—
Construction - custom	402,331		99.4		2,518		0.6
Land - acquisition & development	96,516		99.5		509		0.5
Land - consumer lot loans	101,437		99.1		939		0.9
Multi-family	996,158		99.8		1,538		0.2
Commercial real estate	832,476		99.2		6,681		0.8
Commercial & industrial	750,958		100.0		115		—
HELOC	127,446		99.6		473		0.4
Consumer	181,023		99.9		119		0.1
	$	9,734,442	99.4	%	$	56,748	0.6	%

20

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

September 30, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,592,771	99.0	%	$	59,074	1.0	%
Construction	199,755		99.6		754		0.4
Construction - custom	395,575		99.8		732		0.2
Land - acquisition & development	94,208		100.0		—		—
Land - consumer lot loans	102,716		98.8		1,273		1.2
Multi-family	1,123,165		99.8		2,558		0.2
Commercial real estate	984,093		99.8		2,176		0.2
Commercial & industrial	612,836		100.0		—		—
HELOC	127,083		99.6		563		0.4
Consumer	193,975		99.7		680		0.3
	$	9,426,177	99.3	%	$	67,810	0.7	%

21

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following tables provide information on impaired loan balances and the related allowances by loan types.

December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	14,791	$	16,304	$	—		$	12,837
Construction	—		—		—			—
Construction - custom	1,182		1,182		—			868
Land - acquisition & development	542		8,630		—			1,327
Land - consumer lot loans	510		527		—			427
Multi-family	761		4,754		—			1,117
Commercial real estate	7,331		8,671		—			4,686
Commercial & industrial	953		6,687		—			948
HELOC	262		631		—			245
Consumer	479		479		—			385
	26,811		47,865		—			22,840
With an allowance recorded:
Single-family residential	246,210		249,530		6,339			246,922
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	2,101		3,303		—			2,294
Land - consumer lot loans	11,080		11,345		—			11,120
Multi-family	2,430		2,435		—			2,437
Commercial real estate	23,802		27,168		—			24,042
Commercial & industrial	—		—		—			—
HELOC	1,393		1,393		—			1,393
Consumer	97		286		—			98
	287,113		295,460		6,339		(1)	288,306
Total:
Single-family residential	261,001		265,834		6,339			259,759
Construction	—		—		—			—
Construction - custom	1,182		1,182		—			868
Land - acquisition & development	2,643		11,933		—			3,621
Land - consumer lot loans	11,590		11,872		—			11,547
Multi-family	3,191		7,189		—			3,554
Commercial real estate	31,133		35,839		—			28,728
Commercial & industrial	953		6,687		—			948
HELOC	1,655		2,024		—			1,638
Consumer	576		765		—			483
	$	313,924	$	343,325	$	6,339	(1)	$	311,146

(1) Includes $130,000 of specific reserves and $6,209,000 included in the general reserves.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

September 30, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	17,250	$	19,644	$	—		$	14,069
Construction	453		2,151		—			471
Construction - custom	554		554		—			182
Land - acquisition & development	2,570		9,426		—			926
Land - consumer lot loans	727		814		—			544
Multi-family	3,770		7,054		—			1,545
Commercial real estate	9,427		15,620		—			8,130
Commercial & industrial	2,955		13,066		—			2,681
HELOC	683		1,532		—			536
Consumer	477		703		—			390
	38,866		70,564		—			29,474
With an allowance recorded:
Single-family residential	259,461		263,268		6,678			260,028
Construction	4,988		5,778		—			5,432
Land - acquisition & development	2,486		3,426		—			3,478
Land - consumer lot loans	11,289		11,554		—			11,324
Multi-family	3,823		3,823		—			3,732
Commercial real estate	19,124		21,078		—			18,886
HELOC	1,443		1,443		—			1,359
Consumer	99		289		—			102
	302,713		310,659		6,678		(1)	304,341
Total:
Single-family residential	276,711		282,912		6,678			274,097
Construction	5,441		7,929		—			5,903
Construction - custom	554		554		—			182
Land - acquisition & development	5,056		12,852		—			4,404
Land - consumer lot loans	12,016		12,368		—			11,868
Multi-family	7,593		10,877		—			5,277
Commercial real estate	28,551		36,698		—			27,016
Commercial & industrial	2,955		13,066		—			2,681
HELOC	2,126		2,975		—			1,895
Consumer	576		992		—			492
	$	341,579	$	381,223	$	6,678	(1)	$	333,815

(1) Includes $275,000 of specific reserves and $6,403,000 included in the general reserves.

23

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE F – Fair Value Measurements

ASC 825 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 825 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active exchange markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

We have established and documented the Company's process for determining the fair values of the Company's assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, fair value is determined using valuation models or third-party appraisals. The following is a description of the valuation methodologies used to measure and report the fair value of financial assets and liabilities on a recurring or nonrecurring basis:

Measured on a Recurring Basis

Securities

Securities available for sale are recorded at fair value on a recurring basis. Most securities at fair value are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under the provisions of the Fair Value Measurements and Disclosures topic of the FASB Accounting Standards Codification are considered a Level 2 input method. Securities that are traded on active exchanges are considered a Level 1 input method.

The bank offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the bank enters into the opposite trade with a counter party to offset its interest rate risk. The bank has also entered into a commercial loan hedge as well as long term borrowing hedges using interest rate swaps. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique. These are considered a Level 2 input method.

24

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following tables present the balance of assets and liabilities measured at fair value on a recurring basis.

	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,558	—		—		$	101,558
Obligations of U.S. government	—		425,814		—		425,814
Obligations of states and political subdivisions	—		27,232		—		27,232
Corporate debt securities	—		505,406		—		505,406
Mortgage-backed securities							—
Agency pass-through certificates	—		1,149,087		—		1,149,087
Other Commercial MBS	—		95,691		—		95,691
Total available-for-sale securities	101,558		2,203,230		—		2,304,788
Interest rate contracts	—		9,656		—		9,656
Total financial assets	$	101,558	$	2,212,886	$	—	$	2,314,444
Financial Liabilities
Interest rate contracts	$	—	$	9,656	$	—	$	9,656
Commercial loan hedge	—		565		—		565
Long term borrowing hedge	—		11,759		—		11,759
Total financial liabilities	$	—	$	21,980	$	—	$	21,980

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the quarter ended December 31, 2015.

25

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,952	—		—		$	101,952
Obligations of U.S. government	—		482,464		—		482,464
Obligations of states and political subdivisions	—		27,123		—		27,123
Corporate debt securities	—		505,800		—		505,800
Mortgage-backed securities							—
Agency pass-through certificates	—		1,160,518		—		1,160,518
Other Commercial MBS	—		102,706		—		102,706
Total available-for-sale securities	101,952		2,278,611		—		2,380,563
Interest rate contracts	—		11,879		—		11,879
Total financial assets	$	101,952	$	2,290,490	$	—	$	2,392,442
Financial Liabilities
Interest rate contracts	$	—	$	11,879	$	—	$	11,879
Commercial loan hedge	—		966		—		966
Long term borrowing hedge	—		14,555		—		14,555
Total financial liabilities	$	—	$	27,400	$	—	$	27,400

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the fiscal year ended September 30, 2015.

26

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Measured on a Nonrecurring Basis

Impaired Loans & Real Estate Owned

Real estate owned consists principally of properties acquired through foreclosure. From time to time, and on a nonrecurring basis, adjustments using fair value measurements are recorded to reflect increases or decreases based on the current appraisal or estimated value of the collateral, but only up to the fair value of the real estate owned as of the initial transfer date less selling costs.

When management determines that the fair value of the collateral or the real estate held for sale requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the impaired loan or real estate held for sale as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2015 included loans for which a specific reserve allowance was established or a partial charge-off was recorded based on the fair value of collateral, as well as covered REO and real estate held for sale for which fair value of the properties was less than the cost basis.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at December 31, 2015 and December 31, 2014, and the total losses (gains) resulting from those fair value adjustments for the three months ended December 31, 2015 and December 31, 2014. The estimated fair value measurements are shown gross of estimated selling costs.

	Three Months Ended December 31, 2015
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	8,524	$	8,524	$	(1,681	)
Real estate owned (2)	—		—		7,145		7,145		(1,755		)
Balance at end of period	$	—	$	—	$	15,669	$	15,669	$	(3,436	)

(1) The gains (losses) represent remeasurements of collateral-dependent loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate held for sale.

	Three Months Ended December 31, 2014
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	146	$	146	$	(64	)
Real estate owned (2)	—		—		37,942		37,942		8,237
Balance at end of period	$	—	$	—	$	38,088	$	38,088	$	8,173

(1) The gains (losses) represent remeasurements of collateral-dependent loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate held for sale.

Impaired loans - The Company adjusts the carrying amount of impaired loans when there is evidence of probable loss and the expected fair value of the loan is less than its contractual amount. The amount of the impairment may be determined based on the estimated present value of future cash flows or the fair value of the underlying collateral. Impaired loans with a specific reserve allowance based on cash flow analysis or the value of the underlying collateral are classified as Level 3 assets.

The evaluations for impairment are prepared by the Problem Loan Review Committee, which is chaired by the Chief Credit Officer and includes the Loan Review manager and Special Credits manager, as well as senior credit officers, division managers and group executives, as applicable. These evaluations are performed in conjunction with the quarterly allowance for loan loss process.

27

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Applicable loans that were included in the previous quarter's review are reevaluated and if their values are materially different from the prior quarter evaluation, the underlying information (loan balance and collateral value) are compared. Material differences are evaluated for reasonableness and discussions are held between the relationship manager and their division manager to understand the difference and determine if any adjustment is necessary.

The inputs are developed and substantiated on a quarterly basis, based on current borrower developments, market conditions and collateral values. The following methods are used to value impaired loans:

• 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.

• The present value of the expected future cash flows of the collateral is used for measurement of non collateral-dependent loans to test for impairment. The Company calculates the amount and timing of the future cash flows, the effective interest rate to be used to discount the cash flows and the basis for determination of the cash flows, including consideration of current economic and environmental factors, as well as other information relating to current or previous conditions.

Real estate owned ("REO") - 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 appraisals or third-party price options, which is used to establish the fair value of the underlying collateral. The determined fair value, less selling costs, becomes the carrying value of the REO asset.

The fair value of REO assets is re-evaluated quarterly and the REO asset is adjusted to reflect the fair value as necessary. After foreclosure, the valuations are updated periodically and current market conditions may require the assets to be written down further or up to the cost basis established on the date of transfer. The carrying balance of REO assets are also written down or up once a bona fide offer is contractually accepted, through execution of a Purchase and Sale Agreement, where the accepted price is lower than the cost established on the transfer date.

Fair Values of Financial Instruments

U. S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the statement of financial condition, for which it is practicable to estimate those values. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value estimates presented do not reflect the underlying fair value of the Company. 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.

28

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

		December 31, 2015				September 30, 2015
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	305,959	$	305,959	$	284,049	$	284,049
Available-for-sale securities
Equity securities	1	101,558		101,558		101,952		101,952
Obligations of U.S. government	2	425,814		425,814		482,464		482,464
Obligations of states and political subdivisions	2	27,232		27,232		27,123		27,123
Corporate debt securities	2	505,406		505,406		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	1,149,087		1,149,087		1,160,518		1,160,518
Other commercial MBS	2	95,691		95,691		102,706		102,706
Total available-for-sale securities		2,304,788		2,304,788		2,380,563		2,380,563
Held-to-maturity securities	2
Mortgage-backed securities
Agency pass-through certificates	2	1,598,370		1,571,288		1,643,216		1,637,420
Total held-to-maturity securities		1,598,370		1,571,288		1,643,216		1,637,420
Loans receivable	3	9,402,730		9,901,403		9,170,634		9,667,750
FDIC indemnification asset	3	14,076		13,271		16,275		15,522
FHLB and FRB stock	2	111,107		111,107		107,198		107,198
Other assets - interest rate contracts	2	9,656		9,656		11,879		11,879
Financial liabilities
Customer accounts	2	10,651,119		9,920,280		10,631,703		10,004,290
FHLB advances	2	1,928,000		2,012,603		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	9,656		9,656		11,879		11,879
Other liabilities - commercial loan hedge	2	565		565		966		966
Other liabilities - long term borrowing hedge	2	11,759		11,759		14,555		14,555

The following methods and assumptions were used to estimate the fair value of financial instruments:

Cash and cash equivalents – The carrying amount of these items is a reasonable estimate of their fair value.

Available-for-sale securities and held-to-maturity securities – Securities at fair value are primarily priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and are considered a Level 2 input method. Equity securities which are exchange traded are considered a Level 1 input method.

Loans receivable and covered loans – For certain homogeneous categories of loans, such as fixed- and variable-rate residential mortgages, fair value is estimated for securities backed by similar loans, adjusted for differences in loan characteristics, using the same methodology described above for AFS and HTM securities. The fair value of other loan types is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types were valued at carrying value because of their floating rate or expected maturity characteristics. Net deferred loan fees are not included in the fair value calculation but are included in the carrying amount.

FDIC indemnification asset – The fair value of the indemnification asset is estimated by discounting the expected future cash flows using the current rates.

FHLB and FRB stock – The fair value is based upon the par value of the stock which equates to its carrying value.

29

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Customer accounts – The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting the estimated future cash flows using the rates currently offered for deposits with similar remaining maturities.

FHLB advances – The fair value of FHLB advances and other borrowings is estimated by discounting the estimated future cash flows using rates currently available to the Company for debt with similar remaining maturities.

Interest Rate Contracts – The bank offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the bank enters into the opposite trade with a counterparty to offset its interest rate risk. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

Commercial Loan Hedge – The fair value of the interest rate swap is estimated by a third party pricing service using a discounted cash flow technique.

Long Term Borrowing Hedges – The fair value of the forward starting interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

The following tables provide a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities.

	December 31, 2015
	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	$	99,907	$	1,600	$	(593	)	$	100,914	1.89	%
5 to 10 years	76,604		—		(1,852		)	74,752		1.35
Over 10 years	254,886		100		(4,838		)	250,148		1.34
Equity Securities
Within 1 year	500		11		—			511		1.80
1 to 5 years	99,922		1,124		—			101,046		1.90
5 to 10 years	—		—		—			—		—
Corporate bonds due
Within 1 year	24,872		103		—			24,975		0.57
1 to 5 years	341,470		839		(108		)	342,201		1.20
5 to 10 years	89,952		558		(3,030		)	87,480		1.80
Over 10 years	50,000		750		—			50,750		3.00
Municipal bonds due
1 to 5 years	2,292		3		—			2,295		1.23
5 to 10 years	1,311		18		—			1,329		2.05
Over 10 years	20,377		3,230		—			23,607		6.45
Mortgage-backed securities
Agency pass-through certificates	1,141,558		11,636		(4,105		)	1,149,089		2.56
Other Commercial MBS	96,383		18		(710		)	95,691		1.58
	2,300,034		19,990		(15,236		)	2,304,788		2.07
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,598,370		5,638		(32,719		)	1,571,289		3.19
	$	3,898,404	$	25,628	$	(47,955	)	$	3,876,077	2.53	%

30

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	September 30, 2015
	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	$	105,065	$	1,923		$	(274	)	$	106,714	1.74	%
5 to 10 years	119,071		35			(1,247		)	117,859		1.54
Over 10 years	262,832		—			(4,941		)	257,891		1.23
Equity Securities
Within 1 year	500		17			—			517		1.80
1 to 5 years	99,922		1,513			—			101,435		1.90
Corporate bonds due
Within 1 year	24,787		191			—			24,978		0.53
1 to 5 years	311,435		1,190			(58		)	312,567		0.88
5 to 10 years	100,000		876			(3,524		)	97,352		1.47
Over 10 years	69,950		953			—			70,903		3.00
Municipal bonds due
1 to 5 years	2,285		8			—			2,293		1.23
5 to 10 years	1,303		7			—			1,310		2.05
Over 10 years	20,382		3,138			—			23,520		6.45
Mortgage-backed securities
Agency pass-through certificates	1,144,787		18,222			(2,491		)	1,160,518		2.48
Other Commercial MBS	103,131		85			(510		)	102,706		1.51
	2,365,450		28,158			(13,045		)	2,380,563		1.97
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,643,216		10,516			(16,312		)	1,637,420		3.19
	$	4,008,666	$	38,674		$	(29,357	)	$	4,017,983	2.46	%

There were no available-for-sale securities sold during the quarter ended December 31, 2015 or the quarter ended December 31, 2014. Substantially all of the agency mortgage-backed securities have contractual due dates that exceed 10 years.

The following tables show the unrealized gross losses and fair value of securities as of December 31, 2015 and September 30, 2015, by length of time that individual securities in each category have been in a continuous loss position. The decline in fair value is attributable to changes in interest rates. Because the Company does not intend to sell these securities and does not consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other than temporarily impaired.

31

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

December 31, 2015	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	$	(108	)	$	32,986	$	(3,030	)	$	46,970	$	(3,138	)	$	79,956
U.S. government and agency securities due	(5,062		)	243,329		(2,221		)	109,611		(7,283		)	352,940
Agency pass-through certificates	(3,181		)	636,155		(34,354		)	1,266,121		(37,535		)	1,902,276
	$	(8,351	)	$	912,470	$	(39,605	)	$	1,422,702	$	(47,956	)	$	2,335,172

September 30, 2015	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	$	(183	)	$	72,862	$	(3,399	)	$	46,601	$	(3,582	)	$	119,463
U.S. government and agency securities due	(5,010		)	336,243		(1,452		)	57,344		(6,462		)	393,587
Agency pass-through certificates	(1,036		)	169,541		(18,277		)	1,193,463		(19,313		)	1,363,004
	$	(6,229	)	$	578,646	$	(23,128	)	$	1,297,408	$	(29,357	)	$	1,876,054

32

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE G – Derivatives and Hedging Activities

The Bank periodically enters into certain interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rate payments, while the Bank retains a variable rate loan. Under these agreements, the Bank enters into a variable rate loan agreement and a swap agreement with the client. The swap agreement effectively converts the client’s variable rate loan into a fixed rate. The Bank enters into a corresponding swap agreement with a third party in order to offset its exposure on the variable and fixed components of the client's swap agreement. The Bank had $474,900,000 and $439,416,000 notional in interest rate swaps to hedge this exposure as of December 31, 2015 and September 30, 2015, respectively. The interest rate swaps are derivatives under ASC 815, Derivatives and Hedging, with changes in fair value recorded in earnings. There was no net impact to the statement of operations for the three months ended December 31, 2015 as the changes in value for the asset and liability side of the swaps offset each other.

The Bank has also entered into forward-starting interest rate swaps to convert future short-term borrowings to fixed rate payments. The primary purpose of this hedge is to mitigate the risk of rising interest rates, specifically LIBOR rates, which are a benchmark for the short term borrowings. The hedging program qualifies as a cash flow hedge under FASB ASC 815, which provides for matching of the recognition of gains and losses of the interest rate swaps and the hedged items. The hedged item is the LIBOR portion of the series of future short-term fixed rate borrowings over the term of the interest rate swap. Prior to the starting date, the change in the fair value of the interest rate swap is recorded in other comprehensive income. The Bank had $400,000,000 notional in forward starting interest rate swaps to hedge future borrowing rates as of December 31, 2015 and September 30, 2015. The impact on accumulated other comprehensive income as of December 31, 2015 was an after-tax gain of $1,768,000.

The Bank has also entered into an interest rate swap to hedge the interest rate risk of an individual fixed rate commercial loan and this relationship qualifies as a fair value hedge under FASB ASC 815, which provides for matching of the recognition of gains and losses of the interest rate swap and the hedged item. The Bank had $54,155,000 and $54,815,000 notional in interest rate swap to hedge this loan as of December 31, 2015 and September 30, 2015, respectively

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2015 and September 30, 2015:

	Asset Derivatives						Liability Derivatives
	December 31, 2015			September 30, 2015			December 31, 2015			September 30, 2015
	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	$	9,656	Other assets	$	11,879	Other liabilities	$	9,656	Other liabilities	$	11,879
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	565		Other liabilities	966
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	11,759		Other liabilities	14,555
		$	9,656		$	11,879		$	21,980		$	27,400

33

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD LOOKING STATEMENTS

In addition to historical information, this Quarterly Report on Form 10-Q includes certain “forward-looking statements,” as defined in the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended (the "Exchange Act"), based on current management expectations. Actual results could differ materially from those management expectations. Such forward-looking statements include statements regarding the Company’s intentions, beliefs or current expectations as well as the assumptions on which such statements are based. Stockholders and potential stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause future results to vary from current management expectations include, but are not limited to: general economic conditions; legislative and regulatory changes, including without limitation the potential effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act and regulations being promulgated thereunder; monetary fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; cost of funds; demand for loan products; demand for financial services; competition; changes in the quality or composition of the Company’s loan and investment portfolios; changes in accounting principles; policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees. The Company undertakes no obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

GENERAL

Washington Federal, Inc. is a Washington corporation headquartered in Seattle, Washington and is a bank holding company under the Bank Holding Company Act of 1956. The Company conducts its operations primarily through the Bank, a federally-insured national bank subsidiary, Washington Federal, National Association.

The Company's fiscal year end is September 30th. All references to 2015 represent balances as of September 30, 2015 or activity for the fiscal year then ended.

INTEREST RATE RISK

Based on Management's assessment of the current interest rate environment, the Bank has taken steps to reduce its interest rate risk profile compared to its historical norms, including growing shorter-term business loans and transaction deposit accounts, as well as extending the maturity on borrowings. The mix of transaction accounts is 56% of total deposits as of December 31, 2015 while the composition of the investment securities portfolio is 40% variable and 60% fixed rate. The Company has $1,598,370,000 of 30-year fixed rate mortgage-backed securities that it has designated as held-to-maturity and are carried at amortized cost. With rising interest rates, these securities may be subject to unrealized losses. As of December 31, 2015, the net unrealized loss on these securities was $27,081,000. The Company has $2,304,788,000 of available-for-sale securities that are carried at fair value. As of December 31, 2015, the net unrealized gain on these securities was $4,754,000. The Bank has executed forward starting interest rate swaps to hedge interest rates on future borrowings. The net unrealized loss on these interest rate swaps as of December 31, 2015 was $11,759,000. All of the above are pre-tax net unrealized gains or losses.

The Company relies on various measures of interest rate risk, including an asset/liability maturity gap analysis, modeling of changes in forecasted net interest income under various rate change scenarios, and the impact of interest rate changes on the net portfolio value (“NPV”) of the Company.

Net Interest Income Sensitivity. The potential impact of rising interest rates on net interest income in the future under various rate change scenarios is estimated using a model that is based on account level detail for loans and deposits. In the event of an immediate and parallel increase of 200 basis points in both short and long-term interest rates, the model estimates that net interest income would decrease by (0.5)% in the next year. This compares to an estimated decrease of (2.2)% as of the September 30, 2015 analysis. This analysis assumes zero balance sheet growth and a constant percentage composition of assets and liabilities for consistency. It also assumes that loan and deposit prices respond in full to the increase in market rates. Actual results would differ from the assumptions used in this model, as Management monitors and adjusts loan and deposit pricing and the size and composition of the balance sheet to respond to changing interest rates. It is noted that a flattening yield curve due to a greater increase in short term rates as compared to long term rates would likely result in a more significant decrease in net interest income. Management estimates that a gradual increase of 300 basis points in short term rates and 100 basis points in long term rates over two years would result in a net interest income decrease of 2.26% in the first year and 0.51% in the second year assuming a constant balance sheet and no management intervention.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

NPV Sensitivity. The NPV is an estimate of the market value of shareholders' equity. It is derived by calculating the difference between the present value of expected cash flows from interest-earning assets and the present value of expected cash flows from interest-paying liabilities and off-balance-sheet contracts. The sensitivity of the NPV to changes in interest rates provides a longer term view of interest rate risk as it incorporates all future expected cash flows. In the event of an immediate and parallel increase of 200 basis points in interest rates, the NPV is estimated to decline by $588,979,000 or 20.95% and the NPV to total assets ratio to decline to 16.14% from a base of 18.91%. As of September 30, 2015, the NPV in the event of a 200 basis point increase in rates was estimated to decline by $535,948,000 or 19.65% and the NPV to total assets ratio to decline to 15.91% from a base of 18.39%. The increased NPV sensitivity and higher base NPV ratio is due to higher interest rates and lower prices as of December 31, 2015.

Repricing Gap Analysis. At December 31, 2015, the Company had approximately $1,766,553,000 more in liabilities subject to maturity or repricing in the next year than assets, which resulted in a negative one-year maturity gap of (12.0)% of total assets. This was an decrease from the (13.40)% negative gap as of September 30, 2015. A negative repricing gap implies that funding costs will change more rapidly than interest income on earning assets with movements in interest rates. A negative repricing gap typically results in lower margins when interest rates rise and higher margins when interest rates decline. This interest rate gap analysis provides management with a high-level indication of interest rate risk, but it is considered less reliable than more detailed modeling.

Interest Rate Spread. The interest rate spread is measured as the difference between the rate on total loans and investments and the rate on costing liabilities at the end of each period. The interest rate spread decreased to 2.72% at December 31, 2015 from 2.73% at September 30, 2015. The spread decrease of 1 basis point is due to lower rates on interest earning assets. As of December 31, 2015, the weighted average rate on loans and mortgage backed securities decreased by 4 basis points compared to September 30, 2015, while the weighted average rate on earning assets declined by 1 basis point to 3.62%.

Net Interest Margin. The net interest margin is measured using the interest income and expense over the average assets and liabilities for the period. The net interest margin increased to 3.18% for the quarter ended December 31, 2015 from 3.01% for the quarter ended December 31, 2014. The yield on earning assets increased 10 basis points to 3.99% and the cost of interest bearing liabilities declined 8 basis points to 0.90%. The higher yield on earning assets is the result of changes in the asset mix as cash and investment securities have decreased while loans has increased. The decrease in interest costs was a combination of changes in the deposit mix from time deposits to core transaction accounts as well as lower costs on FHLB advances as the Company prepaid a $100,000,000 FHLB advance during the quarter ended December 31, 2014.

The following table sets forth the information explaining the changes in the net interest margin for the periods indicated compared to the same periods one year ago.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Quarter Ended December 31, 2015						Quarter Ended December 31, 2014
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	(In thousands)						(In thousands)
Assets
Loans and covered loans	$	9,258,041	$	112,864	4.84	%	$	8,367,285	$	108,293	5.13	%
Mortgaged-backed securities	2,880,242		16,986		2.34		3,191,365		19,175		2.38
Cash & Investments	1,198,471		4,258		1.41		1,876,824		4,872		1.14
FHLB & FRB stock	107,793		1,016		3.74		158,194		401		1.01
Total interest-earning assets	13,444,547		135,124		3.99	%	13,593,668		132,741		3.89	%
Other assets	1,109,202						1,062,770
Total assets	$	14,553,749					$	14,656,438
Liabilities and Equity
Customer accounts	$	10,619,654	$	12,718	0.48	%	$	10,680,974	$	13,446	0.50	%
FHLB advances	1,844,772		15,537		3.34		1,920,217		17,112		3.65
Total interest-bearing liabilities	12,464,426		28,255		0.90	%	12,601,191		30,558		0.98	%
Other liabilities	124,370						95,026
Total liabilities	12,588,796						12,696,217
Stockholder's equity	1,964,953						1,960,221
Total liabilities and equity	$	14,553,749					$	14,656,438
Net interest income			$	106,869					$	102,183
Net interest margin					3.18	%					3.01	%

As of December 31, 2015, total assets had increased by $116,575,000 to $14,684,899,000 from $14,568,324,000 at September 30, 2015. For the quarter ended December 31, 2015, compared to the quarter ended September 30, 2015, loans receivable increased $232,096,000 or 2.53% partially offset by the decrease of $120,621,000 or 3.00% in investment securities.

Cash and cash equivalents of $305,959,000 and stockholders’ equity of $1,970,240,000 as of December 31, 2015 provides management with flexibility in managing interest rate risk going forward.

LIQUIDITY AND CAPITAL RESOURCES

The principal sources of funds for the Company's activities are loan repayments (including prepayments), net deposit inflows, repayments and sales of investments and borrowings and retained earnings, if applicable. The Company's principal sources of revenue are interest on loans and interest and dividends on investments.

The Bank has a credit line with the Federal Home Loan Bank of Des Moines ("FHLB") equal to 49.0% of total assets, providing a substantial source of additional liquidity if needed.

The Bank has entered into borrowing agreements with the FHLB to borrow funds under a short-term floating rate cash management advance program and fixed-rate term loan agreements. All borrowings are secured by stock of the FHLB, deposits with the FHLB,

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

and a blanket pledge of qualifying loans receivable as provided in the agreements with the FHLB. The Bank is also eligible to borrow under the Federal Reserve Bank's primary credit program.

The Company's cash and cash equivalents amounted to $305,959,000 at December 31, 2015, a decrease from $284,049,000 at September 30, 2015. These amounts include the Bank's operating cash.

The Company’s net worth at December 31, 2015 was $1,970,240,000, or 13.42% of total assets. This was a increase of $14,561,000 from September 30, 2015 when net worth was $1,955,679,000 which was 13.42% of total assets. The Company’s net worth was impacted in the three months ended December 31, 2015 by net income of $35,098,000, the payment of $12,036,000 in cash dividends, treasury stock purchases of $9,938,000, as well as an other comprehensive loss of $4,785,000. The ratio of tangible capital to tangible assets at December 31, 2015 was 11.62%. The Company has paid out 63% of its fiscal 2016 year-to-date earnings to shareholders in the form of cash dividends and share repurchases, compared with 111% for fiscal year 2015. Management believes the strong net worth position will allow the Company to manage its interest rate risk and provide the capital support needed for controlled growth in a regulated environment.

The Company (on a consolidated basis) and its banking subsidiary are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and the Bank's financial statements.

Federal banking agencies establish regulatory capital rules which require minimum capital ratios and establish criteria for calculating regulatory capital. Minimum capital ratios for four measures are used for assessing capital adequacy. The standards are indicated in the table below. The common equity tier 1 capital ratio recognizes common equity as the highest form of capital. The denominator for all except the leverage ratio is risk weighted assets. The rules set forth a “capital conservation buffer” of up to 2.5%. In the event that a bank’s capital levels fall below the minimum ratios plus these buffers, restrictions can be placed on the bank by its regulators. These restrictions include reducing dividend payments, share-backs, and staff bonus payments. The purpose of these buffers is to require banks to build up capital outside of periods of stress that can be drawn down during periods of stress. As a result, even during periods where losses are incurred, the minimum capital ratios can still be met. The capital rules that became effective in January 2015 include a phase-in period for certain minimum ratios and the capital buffers, before the full minimum ratios take effect in 2019. Management continues to monitor the financial position of the Company and its capital ratios as the rules phase in.

There are also standards for Adequate and Well Capitalized criteria that are used for “Prompt Corrective Action” purposes. To remain categorized as well capitalized, the Bank and Holding Company must maintain minimum common equity risk-based, tier 1 risk-based, total risk-based and tier 1 leverage ratios as set forth in the following table.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Actual				Minimum Capital Adequacy Guidelines				Minimum Well-Capitalized Guidelines
	Capital		Ratio		Capital		Ratio		Capital	Ratio
	(In thousands)
December 31, 2015
Common Equity Tier I risk-based capital ratio:
The Company	$	1,678,544	18.52	%	$	644,872	4.50	%	NA	NA
The Bank	1,676,263		18.48	%	645,078		4.50	%	931,779	6.50	%
Tier I risk-based capital ratio:
The Company	1,678,544		18.52	%	543,821		6.00	%	NA	NA
The Bank	1,676,263		18.48	%	544,370		6.00	%	725,827	8.00	%
Total risk-based capital ratio:
The Company	1,790,041		19.75	%	725,095		8.00	%	NA	NA
The Bank	1,787,760		19.70	%	725,827		8.00	%	907,284	10.00	%
Tier 1 Leverage ratio:
The Company	1,678,544		11.71	%	573,219		4.00	%	NA	NA
The Bank	1,676,263		11.69	%	573,402		4.00	%	716,753	5.00	%
September 30, 2015
Common Equity Tier 1 risk-based capital ratio:
The Company	1,658,985		18.81	%	637,788		4.50	%	NA	NA
The Bank	1,652,569		18.73	%	637,810		4.50	%	921,281	6.50	%
Tier I risk-based capital ratio:
The Company	1,658,985		18.81	%	529,051		6.00	%	NA	NA
The Bank	1,652,569		18.73	%	529,360		6.00	%	705,814	8.00	%
Total risk-based capital ratio:
The Company	1,769,587		20.07	%	705,402		8.00	%	NA	NA
The Bank	1,763,171		19.98	%	705,814		8.00	%	882,267	10.00	%
Tier 1 Leverage ratio:
The Company	1,658,985		11.71	%	566,923		4.00	%	NA	N/A
The Bank	1,652,569		11.66	%	566,942		4.00	%	708,678	5.00	%

CHANGES IN FINANCIAL CONDITION

Cash and cash equivalents: Cash and cash equivalents increased $21,910,000, or 7.71%, to $305,959,000 at December 31, 2015.

Available-for-sale and held-to-maturity securities: Available-for-sale securities decreased $75,775,000, or 3.2%, during the three months ended December 31, 2015, due to prepayments, calls and maturities which were partially offset by the purchase of $50,741,000 of available-for-sale securities. During the same period, the balance of held-to-maturity securities declined by $44,846,000 due to paydowns and maturities. There were no held to maturity securities purchased or sold during the quarter. As of December 31, 2015, the Company had a net unrealized gain on available-for-sale securities of $4,754,000, which is included on a net of tax basis in accumulated other comprehensive income.

Loans receivable: Loans receivable, net of related contra accounts, increased to $9,402,730,000 at December 31, 2015 compared to $9,170,634,000 at September 30, 2015. This increase resulted primarily from originations of $963,319,000 and loan purchases of $51,646,000, partially offset by loan repayments of $726,292,000. Commercial loan originations accounted for 75% of total originations and consumer loan originations were 25%. The increase in the loan portfolio is consistent with management's strategy during low rate environments to produce more multifamily, commercial real estate, and commercial and industrial loans which generally have adjustable interest rates or a shorter duration.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table shows the loan portfolio by category and the change.

	December 31, 2015				September 30, 2015				Change
	(In thousands)				(In thousands)				$			%
Non-Acquired loans
Single-family residential	$	5,629,715	55.7	%	$	5,651,845	57.5	%	$	(22,131	)	(0.4	)%
Construction	660,238		6.5		200,509		2.0		459,729			229.3
Construction - custom	404,849		4.0		396,307		4.0		8,542			2.2
Land - acquisition & development	97,025		1.0		94,208		1.0		2,817			3.0
Land - consumer lot loans	102,376		1.0		103,989		1.1		(1,613		)	(1.6	)
Multi-family	997,696		9.9		1,125,722		11.5		(128,027		)	(11.4	)
Commercial real estate	839,157		8.3		986,270		10.0		(147,112		)	(14.9	)
Commercial & industrial	751,073		7.4		612,836		6.2		138,237			22.6
HELOC	127,919		1.3		127,646		1.3		273			0.2
Consumer	181,142		1.8		194,655		2.0		(13,513		)	(6.9	)
Total non-acquired loans	9,791,190		96.9	%	9,493,987		96.6	%	297,203			3.1	%
Acquired loans	164,380		1.6		166,293		1.7		(1,913		)	(1.2	)
Credit impaired acquired loans	116,030		1.1		87,081		0.9		28,949			33.2
Covered loans	38,584		0.4		75,909		0.8		(37,325		)	(49.2	)
Total gross loans	10,110,184		100	%	9,823,270		100	%	286,914			2.9	%
Less:
Allowance for probable losses	107,901				106,829				1,072			1.0	%
Loans in process	535,850				476,796				59,054			12.4
Discount on acquired loans	25,040				30,095				(5,055		)	(16.8	)
Deferred net origination fees	38,663				38,916				(253		)	(0.6	)
Total loan contra accounts	707,454				652,636				54,818			8.4
Net Loans	$	9,402,730			$	9,170,634			$	232,096		2.5	%

Non-performing assets (excludes discounted acquired assets): Non-performing assets decreased 23.1% during the quarter ended December 31, 2015 to $98,846,000 from $128,577,000 at September 30, 2015. The decrease is primarily due to the decrease in REO discussed below. Non-performing assets as a percentage of total assets decreased to 0.67% at December 31, 2015 compared to 0.88% at September 30, 2015.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table sets forth information regarding restructured and non-accrual loans and REO.

	December 31, 2015					September 30, 2015
	(In thousands)
Restructured loans:
Single-family residential	$	243,292		86.1	%	$	259,460		85.8	%
Construction	—			—		4,989			1.6
Land - acquisition & development	1,976			0.7		2,486			0.8
Land - consumer lot loans	10,173			3.6		11,289			3.7
Multi - family	1,530			0.5		3,823			1.3
Commercial real estate	24,258			8.6		19,124			6.3
HELOC	1,397			0.5		1,443			0.5
Consumer	97			—		99			—
Total restructured loans (1)	$	282,723		100	%	$	302,713		100	%
Non-accrual loans:
Single-family residential	$	43,856		77.3	%	$	59,074		87.1	%
Construction	—			—		754			1.1
Construction - custom	2,518			4.4		732			1.1
Land - acquisition & development	509			0.9		—			—
Land - consumer lot loans	939			1.7		1,273			1.9
Multi-family	1,538			2.7		2,558			3.8
Commercial real estate	6,681			11.8		2,176			3.2
Commercial & industrial	115			0.2		—			—
HELOC	473			0.8		563			0.8
Consumer	119			0.2		680			1.0
Total non-accrual loans (2)	56,748			100	%	67,810			100	%
Real estate owned	42,098					60,767
Total non-performing assets	$	98,846				$	128,577
Total non-performing assets and performing restructured loans as a percentage of total assets	2.60		%			2.96		%
(1)    Restructured loans were as follows:
Performing	$	273,211		96.6	%	$	291,416		96.3	%
Non-performing (included in non-accrual loans above)	9,512			3.4		11,297			3.7
	$	282,723		100	%	$	302,713		100	%

(2) For the three months endedDecember 31, 2015, the Company recognized $1,257,000 in interest income on cash payments received from borrower on nonaccrual loans. The Company would have recognized interest income of $687,000 for the same period had these loans performed according to their original contract terms. The recognized interest income may include more than three months of interest for some of the loans that were brought current. In addition to the nonaccrual loans reflected in the above table, the Company had $102,335,000 of loans that were less than 90 days delinquent at December 31, 2015 but which it had classified as substandard for one or more reasons. If these loans were deemed non-performing, the Company's ratio of total NPAs and performing restructured loans as a percent of total assets would have increased to 1.37% at December 31, 2015.

Restructured single-family residential loans are reserved for under the Company’s general reserve methodology. If any individual loan is significant in balance, the Company may establish a specific reserve as warranted.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

Most restructured loans are accruing and performing loans where the borrower has proactively approached the Bank about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. Single-family residential loans comprised 86.1% of restructured loans as of December 31, 2015. The concession for these loans is typically a payment reduction through a rate reduction of from 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period.

For commercial loans, six consecutive payments on newly restructured loan terms are required prior to returning the loan to accrual status. In some instances after the required six consecutive payments are made, a management assessment will conclude that collection of the entire principal balance is still in doubt. In those instances, the loan will remain on non-accrual. Homogeneous loans may or may not be on accrual status at the time of restructuring, but all are placed on accrual status upon the restructuring of the loan. Homogeneous loans are restructured only if the borrower can demonstrate the ability to meet the restructured payment terms; otherwise, collection is pursued and the loan remains on non-accrual status until liquidated. If the homogeneous restructured loan does not perform it will be placed in non-accrual status when it is 90 days delinquent.

A loan that defaults and is subsequently modified would impact the Company’s delinquency trend, which is part of the qualitative risk factors component of the general reserve calculation. Any modified loan that re-defaults and is charged-off would impact the historical loss factors component of the Company's general reserve calculation.

Allocation of the allowance for loan losses: The following table shows the allocation of the Company’s allowance for loan losses.

	December 31, 2015						September 30, 2015
	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	$	47,755	60.6	%	0.9	%	$	47,348	62.5	%	0.8	%
Construction	7,014		1.3		5.8		6,680		1.4		5.1
Construction - custom	1,062		2.4		0.5		990		2.3		50.0
Land - acquisition & development	6,778		0.9		8.1		5,781		0.8		7.7
Land - consumer lot loans	3,001		1.1		2.9		2,946		1.1		2.8
Multi-family	5,048		11.7		0.5		5,304		11.8		0.5
Commercial real estate	10,344		10.2		1.1		8,960		9.4		1.0
Commercial & industrial	24,096		8.4		3.1		24,980		7.1		3.9
HELOC	820		1.4		0.6		902		1.4		0.7
Consumer	1,983		2.0		1.1		2,938		2.2		1.5
	$	107,901	100	%			$	106,829	100	%

(1) Represents the total amount of the loan category as a % of total gross loans, excluding non-acquired and non-covered loans outstanding not subject to the allowance for loan loss.

(2) Represents the allocated allowance of the loan category as a % of total gross loans, excluding non-acquired and non-covered loans outstanding not subject to the allowance for loan loss, for the same loan category.

Real Estate Owned: Real estate owned decreased during the three months endedDecember 31, 2015 by $19,000,000 to $42,098,000. The decrease is primarily due to sales of REO properties during the quarter.

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table shows the composition of the Bank’s customer accounts by deposit type.

	December 31, 2015						September 30, 2015
	Deposit Account Balance		As a % of Total Deposits		Wtd. Avg. Rate		Deposit Account Balance		As a % of Total Deposits		Wtd. Avg. Rate
	(In thousands)						(In thousands)
Non-interest checking	$	1,016,514	9.5	%	—	%	$	976,250	9.2	%	—	%
Interest checking	1,636,584		15.4		0.06		1,579,516		14.9		0.06
Savings (passbook/stmt)	782,646		7.3		0.10		700,794		6.6		0.10
Money Market	2,488,340		23.4		0.14		2,564,318		24.1		0.13
CD’s	4,727,035		44.4		0.97		4,810,825		45.2		0.95
Total	$	10,651,119	100	%	0.48	%	$	10,631,703	100	%	0.48	%

Customer accounts: Customer accounts increased $19,416,000, or 0.2%, to $10,651,119,000 at December 31, 2015 compared with $10,631,703,000 at September 30, 2015.

FHLB advances and other borrowings: Total borrowings were $1,928,000,000 as of December 31, 2015, and increase of $98,000,000 since September 30, 2015. The increase represents short term FHLB advances held as of December 31, 2015.

RESULTS OF OPERATIONS

Net Income: The quarter ended December 31, 2015 produced net income of $35,098,000 compared to $38,407,000 for the same quarter one year ago, as described more fully below.

Net Interest Income: For the quarter ended December 31, 2015, net interest income was $4,686,000 higher than the same quarter of the prior year. Average earning assets were slightly lower by $149,121,000 period over period. However, the average yield on interest earning assets increased by 10 basis points and the cost of funds decreased by 8 basis points. The net result was a net interest margin of 3.18% in the quarter ended December 31, 2015 compared to 3.01% in quarter ended December 31, 2014, which drove higher net interest income.

The following table sets forth certain information explaining changes in interest income and interest expense for the period indicated compared to the same period one year ago. For each category of interest-earning asset and interest-bearing liability, information is provided on changes attributable to (1) changes in volume (changes in volume multiplied by old rate) and (2) changes in rate (changes in rate multiplied by old volume). The change in interest income and interest expense attributable to changes in both volume and rate has been allocated proportionately to the change due to volume and the change due to rate.

Rate / Volume Analysis:

	Comparison of Quarters Ended 12/31/15 and 12/31/14
	Volume			Rate			Total
	(In thousands)
Interest income:
Loans receivable	$	10,748		$	(6,178	)	$	4,570
Mortgaged-backed securities	(1,867		)	(322		)	(2,189		)
Investments (1)	(2,487		)	1,945			(542		)
All interest-earning assets	6,394			(4,555		)	1,839
Interest expense:
Customer accounts	(92		)	(636		)	(728		)
FHLB advances and other borrowings	(869		)	(1,250		)	(2,119		)
All interest-bearing liabilities	(961		)	(1,886		)	(2,847		)
Change in net interest income	$	7,355		$	(2,669	)	$	4,686

42

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations

___________________ 

(1) Includes interest on cash equivalents and dividends on FHLB & FRB stock

Provision (Reversal) for Loan Losses: There was no provision for loan losses recorded for the three months endedDecember 31, 2015, which compares to a reversal of provision of $5,500,000 for the three months endedDecember 31, 2014. The lack of provision for the quarter ended December 31, 2015 was a result of continued improvement in credit quality of the loan portfolio offset by net growth in the loan portfolio. The related improvement in the credit quality of the loan portfolio relates to the following factors.

The Company had recoveries, net of charge-offs, of $1,072,000 for the quarter ended December 31, 2015, compared with $842,000 of net recoveries for the same quarter one year ago. Non-performing assets amounted to $98,846,000, or 0.67%, of total assets at December 31, 2015, compared to $164,317,000, or 1.13% of total assets at December 31, 2014. Non-accrual loans decreased from $98,353,000 at December 31, 2014, to $56,748,000 at December 31, 2015, a 42.3% decrease. The percentage of delinquent loans decreased from 1.47% at December 31, 2014, to 0.98% at December 31, 2015.

Unfunded commitments are likely to increase as commercial loans become a greater portion of the loan mix. The reserve for unfunded commitments was $3,085,000 as of December 31, 2015, which is unchanged since September 30, 2015. Management believes the allowance for loan losses plus the reserve for unfunded commitments, totaling $110,986,000, or 1.10% of gross loans, is sufficient to absorb estimated losses inherent in the portfolio. See Note E for further discussion and analysis of the allowance for loan losses for the quarter ended December 31, 2015.

Other Income: For the three months ended December 31, 2015, total other income was $10,635,000 as compared to $5,380,000three months ended December 31, 2014. The increase was primarily due to other income including the following unusual items in the quarter ended December 31, 2014. One, there was a prepayment charge of $2,600,000 on a $100,000,000 FHLB advance that was accruing interest at 4% and scheduled to mature in September 2015. The prepayment charge was offset by a reduction in interest expense over the remaining nine months of the FHLB advance. Two, Management recorded a $2,000,000 FDIC indemnification asset write-down related to the commercial loans acquired from Horizon Bank in 2010. The portion of that agreement related to commercial loans expired after March 31, 2015. Deposit fee income was $5,917,000 for the three months ended December 31, 2015 compared to $5,977,000three months ended December 31, 2014.

Other Expense: The quarter ended December 31, 2015 results include total other expense of $64,509,000 compared to $53,600,000 for the same quarter one year ago, a 20.4% increase. This increase was driven primarily by $6,600,000 of expenses related to the Company's conversion of its core system that occurred during the quarter ended December 31, 2015. Additionally, the quarter ended December 31, 2014 benefited from an adjustment of $1,900,000 to FDIC insurance premiums. Compensation and benefits expense increased $539,000. The number of staff, including part-time employees on a full-time equivalent basis, was 1,825 and 1,862 at December 31, 2015 and 2014, respectively. Total other expense for the quarters ended December 31, 2015 and 2014 equaled 1.77% and 1.46%, respectively, of average assets.

Gain (Loss) on Real Estate Acquired Through Foreclosure: Gains recognized on real estate acquired through foreclosure was a net gain of $1,420,000 for the three months endedDecember 31, 2015, compared to $315,000 for the same period one year ago.

Taxes: Income taxes decreased to $19,317,000 for the quarter ended December 31, 2015, as compared to $21,371,000 for the same period one year ago. The effective tax rate for three months endedDecember 31, 2015 was 35.50% while for the period ended December 31, 2014 it was 35.75%. The Company expects a lower effective tax rate going forward due to the effects of the addition of bank owned life insurance and increased investment in low income housing tax credit partnerships.

Item 3.        Quantitative and Qualitative Disclosures About Market Risk

Management believes that there have been no material changes in the Company’s quantitative and qualitative information about market risk since September 30, 2015. For a complete discussion of the Company’s quantitative and qualitative market risk, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2015 Form 10-K.

Item 4.        Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures. The Company maintains a set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is

43

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 4.        Controls and Procedures

accumulated and communicated to the Company's management, including the Company’s President and Chief Executive Officer along with the Company’s Executive Vice President and Interim Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management has evaluated, with the participation of the Company’s President and Chief Executive Officer along with the Company’s Executive Vice President and Interim Chief Financial Officer, the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this quarterly report (the "Evaluation Date"). Based on the evaluation, the Company’s President and Chief Executive Officer along with the Company’s Executive Vice President and Interim Chief Financial Officer have concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures are effective.

(b) Changes in Internal Control over Financial Reporting. During the period to which this report relates, there have not been any changes in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or that are reasonably likely to materially affect, such controls.

44

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART II – Other Information

Item 1. Legal Proceedings

From time to time the Company and its subsidiaries are engaged in legal proceedings in the ordinary course of business, none of which are considered to have a material impact on the Company’s financial position or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed under "Part I--Item 1A--Risk Factors" in the 2015 Form 10-K for the year ended September 30, 2015. These factors could materially and adversely affect the Company's business, financial condition, liquidity, results of operations and capital position, and could cause its actual results to differ materially from our historical results or the results contemplated by the forward-looking statements contained in this report.

Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information with respect to purchases made by or on behalf of the Company of the Company’s common stock during the three months ended December 31, 2015.

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
October 1, 2015 to October 31, 2015	110,658	$	22.29	110,658	4,090,572
November 1, 2015 to November 30, 2015	12,150	25.17		12,150	4,078,422
December 1, 2015 to December 31, 2015	300,274	23.86		300,274	3,778,148
Total	423,082	$	23.49	423,082	3,778,148

 ___________________

(1) The Company's only stock repurchase program was publicly announced by its Board of Directors on February 3, 1995 and has no expiration date. Under this ongoing program, a total of 46,956,264 shares have been authorized for repurchase. This includes the authorization of an additional 5,000,000 shares that may be repurchased under Washington Federal's share repurchase program that was announced in May 2015.

Item 3.        Defaults Upon Senior Securities

Not applicable

Item 4.        Mine Safety Disclosures

Not applicable

Item 5.        Other Information

Not applicable

45

Item 6.        Exhibits

(a)	Exhibits
	31.1	Section 302 Certification by the Chief Executive Officer
	31.2	Section 302 Certification by the Interim Chief Financial Officer
	32	Section 906 Certification by the Chief Executive Officer and the Interim Chief Financial Officer
	101	Financial Statements from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2015 formatted in XBRL

46

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

February 5, 2016	/S/    ROY M. WHITEHEAD
	ROY M. WHITEHEAD Chairman, President and Chief Executive Officer
February 5, 2016	/S/    BRENT J. BEARDALL
	BRENT J. BEARDALL Executive Vice President and Interim Chief Financial Officer

47

EX-31.1

Exhibit 31.1

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CERTIFICATION

I, Roy M. Whitehead, certify that:

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:	February 5, 2016	/s/ Roy M. Whitehead
		ROY M. WHITEHEAD Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CERTIFICATION

I, Brent J. Beardall, certify that:

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:	February 5, 2016	/s/ Brent J. Beardall
		BRENT J. BEARDALL
		Executive Vice President and Interim Chief Financial Officer

EX-32

Exhibit 32

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Washington Federal, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the undersigned's best knowledge and belief:

(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.

Date: February 5, 2016

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 Interim Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 03, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Registrant Name	WASHINGTON FEDERAL INC
Entity Central Index Key	0000936528
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		91,563,241

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
ASSETS
Cash and cash equivalents	$ 305,959	$ 284,049
Available-for-sale securities, at fair value	2,304,788	2,380,563
Held-to-maturity securities, at amortized cost	1,598,370	1,643,216
Loans receivable, net	9,402,730	9,170,634
Interest receivable	38,259	40,429
Premises and equipment, net	288,796	276,247
Real estate owned	42,098	61,098
FHLB and FRB stock	111,107	107,198
Bank owned life insurance	103,281	102,496
Intangible assets, including goodwill of $291,503	298,719	299,358
Federal and state income tax assets, net	716	14,513
Other assets	190,076	188,523
Assets	14,684,899	14,568,324
Customer accounts
Transaction deposit accounts	5,924,084	5,820,878
Time deposit accounts	4,727,035	4,810,825
Customer accounts	10,651,119	10,631,703
FHLB advances	1,928,000	1,830,000
Advance payments by borrowers for taxes and insurance	21,747	50,224
Accrued expenses and other liabilities	113,793	100,718
Liabilities	12,714,659	12,612,645
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,100,924 and 133,695,803 shares issued; 92,918,434 and 92,936,395 shares outstanding	134,101	133,696
Paid-in capital	1,649,529	1,643,712
Accumulated other comprehensive income (loss), net of taxes	(4,432)	353
Treasury stock, at cost; 41,182,490 and 40,759,408 shares	(661,774)	(651,836)
Retained earnings	852,816	829,754
Stockholders' Equity Attributable to Parent	1,970,240	1,955,679
Liabilities and Equity	$ 14,684,899	$ 14,568,324

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Statement of Financial Position [Abstract]
Goodwill	$ 291,503	$ 291,503
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	134,100,924	133,695,803
Common stock, shares outstanding (in shares)	92,918,434	92,936,595
Treasury stock, shares (in shares)	41,182,490	40,759,708

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
INTEREST INCOME
Loans	$ 112,863	$ 108,293
Mortgage-backed securities	16,987	19,175
Investment securities and cash equivalents	5,274	5,273
Interest Income	135,124	132,741
INTEREST EXPENSE
Customer accounts	12,717	13,445
FHLB advances and other borrowings	15,538	17,113
Interest Expense	28,255	30,558
Net interest income	106,869	102,183
Provision for (reversal of) allowance for loan losses	0	(5,500)
Net interest income after reversal of provision for loan losses	106,869	107,683
OTHER INCOME
Loan fee income	1,517	2,065
Deposit fee income	5,917	5,977
Other income (expense)	3,201	(2,662)
Noninterest income	10,635	5,380
OTHER EXPENSE
Compensation and benefits	29,699	29,160
Occupancy	8,592	8,135
FDIC insurance premiums	2,589	674
Product delivery	5,523	5,627
Information technology	8,710	4,030
Other expense	9,396	5,974
Noninterest Expense	64,509	53,600
Gain on real estate acquired through foreclosure, net	1,420	315
Income before income taxes	54,415	59,778
Income tax provision	19,317	21,371
NET INCOME	$ 35,098	$ 38,407
PER SHARE DATA
Basic earnings (in dollars per share)	$ 0.38	$ 0.39
Diluted earnings (in dollars per share)	0.38	0.39
Dividends paid on common stock (in dollars per share)	$ 0.13	$ 0.15
Basic weighted average number of shares outstanding (in shares)	92,986,358	98,147,939
Diluted weighted average number of shares outstanding, including dilutive stock options (in shares)	93,577,837	98,524,839

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 35,098	$ 38,407
Other comprehensive income (loss) net of tax:
Net unrealized gain (loss) on available-for-sale securities	(10,360)	8,560
Related tax benefit (expense)	3,807	(3,146)
Other comprehensive income (loss) for available for sale securities, net of tax	(6,553)	5,414
Net unrealized gain (loss) on long-term borrowing hedge	2,795	(4,249)
Related tax benefit (expense)	(1,027)	1,562
Other comprehensive income (loss) on long term borrowing hedge, net of tax	1,768	(2,687)
Other comprehensive income (loss) net of tax	(4,785)	2,727
Comprehensive income	$ 30,313	$ 41,134

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance, beginning of period at Sep. 30, 2014	$ 1,973,283	$ 133,323	$ 1,638,211	$ 706,149	$ 20,708	$ (525,108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	38,407			38,407
Other comprehensive income (loss)	2,727				2,727
Dividends on common stock	(10,159)			(10,159)
Compensation expense related to common stock options	300		300
Proceeds from exercise of common stock options	266	18	248
Restricted stock expense	841	250	591
Treasury stock acquired	(24,326)					(24,326)
Balance, end of period at Dec. 31, 2014	1,981,339	133,591	1,639,350	734,397	23,435	(549,434)
Balance, beginning of period at Sep. 30, 2015	1,955,679	133,696	1,643,712	829,754	353	(651,836)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	35,098			35,098
Other comprehensive income (loss)	(4,785)				(4,785)
Dividends on common stock	(12,036)			(12,036)
Compensation expense related to common stock options	300		300
Proceeds from exercise of common stock options	5,042	227	4,815
Restricted stock expense	880	178	702
Treasury stock acquired	(9,938)					(9,938)
Balance, end of period at Dec. 31, 2015	$ 1,970,240	$ 134,101	$ 1,649,529	$ 852,816	$ (4,432)	$ (661,774)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 35,098	$ 38,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	2,934	5,299
Cash received from (paid to) FDIC under loss share	1,975	(431)
Stock option compensation expense	300	300
Provision for (reversal of) allowance for loan losses	0	(5,500)
Gain on investment securities and real estate held for sale	(2,310)	(9,606)
Decrease in accrued interest receivable	2,170	11,280
Decrease in federal and state income tax receivable	16,577	19,208
Increase in cash surrender value of bank owned life insurance	(785)	(216)
Increase in other assets	(3,754)	(14,552)
Increase (decrease) in accrued expenses and other liabilities	15,870	(25,890)
Net cash provided by operating activities	68,075	18,299
CASH FLOWS FROM INVESTING ACTIVITIES
Origination of loans and principal repayments, net	(179,768)	(36,993)
Loans purchased	(51,646)	(46,831)
FHLB & FRB stock purchased	(6,809)	0
FHLB & FRB stock redemption	2,901	3,969
Available-for-sale securities purchased	(50,741)	(41,225)
Principal payments and maturities of available-for-sale securities	114,764	202,760
Principal payments and maturities of held-to-maturity securities	43,569	31,178
Proceeds from sales of real estate owned	26,664	17,909
Purchase of bank owned life insurance	0	(100,000)
Premises and equipment purchased and REO improvements	(17,183)	(2,019)
Net cash provided by (used in) investing activities	(118,249)	28,748
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in customer accounts	19,492	(137,999)
Proceeds from borrowings	204,000	0
Repayments of borrowings	(106,000)	(100,000)
Proceeds from exercise of common stock options and related tax benefit	5,042	266
Dividends paid on common stock	(12,036)	(14,359)
Treasury stock purchased	(9,938)	(24,326)
Decrease in advance payments by borrowers for taxes and insurance	(28,476)	(9,703)
Net cash provided by (used in) financing activities	72,084	(286,121)
Increase (decrease) in cash and cash equivalents	21,910	(239,074)
Cash and cash equivalents at beginning of period	284,049	781,843
Cash and cash equivalents at end of period	305,959	542,769
Non-cash investing activities
Real estate acquired through foreclosure	5,308	8,852
Covered real estate acquired through foreclosure	0	51
Cash paid during the period for
Interest	29,195	34,653
Income taxes	$ 8	$ 23

XML

Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Nature of Operations - Washington Federal, Inc. is a Washington corporation headquartered in Seattle, Washington. The Company is a bank holding company that conducts its operations through a federally-insured national bank subsidiary. The Bank is principally engaged in the business of attracting deposits from the general public and investing these funds, together with borrowings and other funds, in one-to-four family residential mortgage and construction loans, home equity loans, lines of credit, commercial and industrial loans, multi-family and other forms of real estate loans. As used throughout this document, the terms "Washington Federal" or the "Company" refer to Washington Federal, Inc. and its consolidated subsidiaries and the term "Bank" refers to the operating subsidiary Washington Federal, National Association.

Basis of Presentation - The consolidated unaudited interim financial statements included in this report have been prepared by Washington Federal. All intercompany transactions and accounts have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation are reflected in the interim financial statements. The September 30, 2015 Consolidated Statement of Financial Condition was derived from audited financial statements.

The information included in this Form 10-Q should be read in conjunction with the financial statements and related notes in the Company's 2015 Annual Report on Form 10-K (“2015 Form 10-K”). Interim results are not necessarily indicative of results for a full year.

Summary of Significant Accounting Policies - The significant accounting policies used in preparation of the Company's consolidated financial statements are disclosed in its 2015 Form10-K. There have not been any material changes in our significant accounting policies compared to those contained in our 2015 Form 10-K disclosure for the year ended September 30, 2015.

Off-Balance-Sheet Credit Exposures – The only material off-balance-sheet credit exposures are loans in process and unused lines of credit, which had a combined balance of $923,891,000 and $816,014,000 at December 31, 2015 and September 30, 2015, respectively. The Company estimates losses on off-balance-sheet credit exposures by allocating a loss percentage derived from historical loss factors for each asset class.

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New Accounting Pronouncements

3 Months Ended

Dec. 31, 2015

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In January 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The new guidance clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. ASU 2014-04 is effective for annual and interim reporting periods within those annual periods, beginning after December 15, 2014. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments are effective for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. ASU 2015-03 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was to be effective for interim and annual periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year and permits companies to voluntarily adopt the new standard as of the original effective date. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

On April 15, 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance in this ASU are effective for interim and annual periods beginning after December 15, 2015 and can be adopted either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. the amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in ASU 2015-16 are effective for years beginning after December 15, 2015. Early adoption is permitted for reporting periods for which financial statements have not been issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

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Dividends and Share Repurchases

3 Months Ended

Dec. 31, 2015

Dividends [Abstract]

Dividends and Share Repurchases

Dividends and Share Repurchases

On January 20, 2016, the Company announced its 132nd consecutive quarterly cash dividend on common stock of $0.14 per share. The current dividend will be paid on February 12, 2016, to common shareholders of record on February 1, 2016. Dividends per share were $0.13 and $0.15 for the quarters ended December 31, 2015 and 2014, respectively. For the three months endedDecember 31, 2015, the Company repurchased 423,082 shares at an average price of $23.49. For the three months ended December 31, 2014, the Company repurchased 1,116,147 shares at an average price of $21.79. There are 3,778,148 remaining shares that can be repurchased under the current Board approved program.

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Loans Receivable

3 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Loans Receivable

Loans Receivable

The following table is a summary of loans receivable (including LIP, net of charge offs.)

	December 31, 2015				September 30, 2015
	(In thousands)				(In thousands)
Non-Acquired loans
Single-family residential	$	5,629,715	55.7	%	$	5,651,845	57.5	%
Construction	660,238		6.5		200,509		2.0
Construction - custom	404,849		4.0		396,307		4.0
Land - acquisition & development	97,025		1.0		94,208		1.0
Land - consumer lot loans	102,376		1.0		103,989		1.1
Multi-family	997,696		9.9		1,125,722		11.5
Commercial real estate	839,157		8.3		986,270		10.0
Commercial & industrial	751,073		7.4		612,836		6.2
HELOC	127,919		1.3		127,646		1.3
Consumer	181,142		1.8		194,655		2.0
Total non-acquired loans	9,791,190		96.9	%	9,493,987		96.6	%
Acquired loans	164,380		1.6		166,293		1.7
Credit impaired acquired loans	116,030		1.1		87,081		0.9
Covered loans	38,584		0.4		75,909		0.8
Total gross loans	10,110,184		100.0	%	9,823,270		100.0	%
Less:
Allowance for probable losses	107,901				106,829
Loans in process	535,850				476,796
Discount on acquired loans	25,040				30,095
Deferred net origination fees	38,663				38,916
Total loan contra accounts	707,454				652,636
Net Loans	$	9,402,730			$	9,170,634

The following table sets forth information regarding non-accrual loans.

	December 31, 2015				September 30, 2015
	(In thousands)
Non-accrual loans:
Single-family residential	$	43,856	77.3	%	$	59,074	87.1	%
Construction	—		—		754		1.1	%
Construction - custom	2,518		4.4		732		1.1	%
Land - acquisition & development	509		0.9		—		—	%
Land - consumer lot loans	939		1.7		1,273		1.9	%
Multi-family	1,538		2.7		2,558		3.8	%
Commercial real estate	6,681		11.8		2,176		3.2	%
Commercial & industrial	115		0.2		—		—	%
HELOC	473		0.8		563		0.8	%
Consumer	119		0.2		680		1.0	%
Total non-accrual loans	$	56,748	100	%	$	67,810	100	%

The Company recognized interest income on nonaccrual loans of approximately $1,257,000 in the three months endedDecember 31, 2015. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $687,000 for the three months endedDecember 31, 2015. The recognized interest income includes more than three months of interest for some of the loans that were brought current.

The following tables provide details regarding delinquent loans.

December 31, 2015	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	$	5,644,009	$	5,576,774	$	17,285	$	9,939	$	40,010	$	67,234	1.19	%
Construction	325,485		324,619		560		306		—		866		0.27
Construction - Custom	221,327		218,773		28		9		2,518		2,554		1.15
Land - Acquisition & Development	85,830		84,805		387		—		638		1,025		1.19
Land - Consumer Lot Loans	102,887		100,224		828		897		938		2,663		2.59
Multi-Family	966,921		965,110		1,196		—		615		1,811		0.19
Commercial Real Estate	929,495		920,582		841		1,933		6,139		8,913		0.96
Commercial & Industrial	756,831		754,611		2,219		1		—		2,220		0.29
HELOC	125,479		124,883		19		19		558		595		0.47
Consumer	181,431		179,977		882		352		221		1,454		0.80
	9,339,695		9,250,358		24,245		13,456		51,637		89,335		0.96
Acquired loans	140,995		140,137		193		16		649		858		0.61
Credit impaired acquired loans	55,060		52,806		854		—		1,400		2,254		4.09
Covered loans	38,584		37,062		501		295		726		1,522		3.94
Total Loans	$	9,574,334	$	9,480,363	$	25,793	$	13,767	$	54,412	$	93,969	0.98	%
Delinquency %			99.02%		0.27%		0.14%		0.57%		0.98%

September 30, 2015	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	$	5,655,928	$	5,590,673	$	17,305	$	7,757	$	40,193	$	65,255	1.15	%
Construction	130,121		130,121		—		—		—		—		—
Construction - Custom	205,692		204,168		791		270		463		1,524		0.74
Land - Acquisition & Development	75,661		74,737		406		—		518		924		1.22
Land - Consumer Lot Loans	104,494		102,045		689		399		1,361		2,449		2.34
Multi-Family	1,068,038		1,065,667		259		454		1,658		2,371		0.22
Commercial Real Estate	893,072		892,180		131		—		761		892		0.10
Commercial & Industrial	617,545		616,602		93		27		823		943		0.15
HELOC	127,648		127,196		174		27		251		452		0.35
Consumer	194,977		194,259		493		170		55		718		0.37
	9,073,176		8,997,648		20,341		9,104		46,083		75,528		0.83
Acquired loans	57,682		56,559		356		—		767		1,123		1.95
Credit impaired acquired loans	139,726		138,940		243		4		539		786		0.56
Covered loans	75,890		70,729		272		90		4,799		5,161		6.80
Total Loans	$	9,346,474	$	9,263,876	$	21,212	$	9,198	$	52,188	$	82,598	0.88	%
Delinquency %			99.12%		0.23%		0.10%		0.56%		0.88%

The percentage of total delinquent loans increased from 0.88% as of September 30, 2015 to 0.98% as of December 31, 2015.

The following table provides information related to loans that were restructured in at TDR during the periods presented:

	Quarter Ended December 31,
	2015					2014
		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	3	$	729	$	729	35	$	9,600	$	9,600
Construction	—	—		—		2	718		718
Land - consumer lot loans	—	—		—		2	532		532
Commercial real estate	5	965		965		—	—		—
Consumer	—	—		—		1	85		85
	8	$	1,694	$	1,694	40	$	10,935	$	10,935

The following table provides information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.

	Quarter Ended December 31,
	2015			2014
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
TDRs That Subsequently Defaulted:
Single-family residential	5	$	668	8	$	1,431
Land - consumer lot loans	1	148		3	389
	6	$	816	11	$	1,820

Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modification due to temporary financial difficulties. As of December 31, 2015, 96.6% of the Bank's $282,723,000 in TDRs were classified as performing. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of December 31, 2015, single-family residential loans comprised 86.1% of TDRs.

The Company reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area.

The following table shows the changes in accretable yield for acquired impaired loans and acquired non-impaired loans (including covered loans).

	Quarter Ended December 31, 2015												Fiscal Year Ended September 30, 2015
	Acquired Impaired						Acquired Non-impaired						Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)												(In thousands)
Beginning balance	$	72,705		$	111,300		$	7,204		$	187,080		$	97,125		$	135,826		$	14,513		$	275,862
Additions	—			—			—			—			—			—			—			—
Net reclassification from nonaccretable	—			—			—			—			6,307			—			346			—
Accretion	(5,526		)	5,526			(857		)	857			(30,727		)	30,727			(7,655		)	7,655
Transfers to REO	—			—			—			—			—			(2,975		)	—			(150		)
Payments received, net	—			(7,680		)	—			(3,790		)	—			(52,278		)	—			(96,287		)
Ending Balance	$	67,179		$	109,146		$	6,347		$	184,147		$	72,705		$	111,300		$	7,204		$	187,080

The excess of cash flows expected to be collected over the initial fair value of acquired impaired loans is referred to as the accretable yield and this amount is accreted into interest income over the estimated life of the acquired loans using the effective interest method. Other adjustments to the accretable yield include changes in the estimated remaining life of the acquired loans, changes in expected cash flows and changes in the respective indices for acquired loans with variable interest rates.

Additionally, as of December 31, 2015 the Company has $1,700,000 remaining in loans it acquired during fiscal 2013 as part of the South Valley Bank acquisition for which it was probable at acquisition that all contractually required payments would not be collected. The timing and amount of future cash flows cannot not be reasonably estimated; therefore, these loan are accounted for on a cash basis.

At December 31, 2015 and September 30, 2015, none of the acquired impaired or non-impaired loans were classified as non-performing assets. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.

Covered loans were $38,584,000 at December 31, 2015 compared to $75,909,000 as of September 30, 2015, the decrease being attributable to FDIC loss share coverage on commercial loans from the former Home Valley Bank that expired after September 30, 2015. The FDIC loss share coverage for single family residential loans will continue for another five years. The remaining portfolio of covered loans is expected to continue to decline over time, absent another FDIC assisted transaction.

The following table shows activity for the FDIC indemnification asset:

	Three Months Ended December 31, 2015			Fiscal Year Ended September 30, 2015
	(In thousands)
Balance at beginning of period	$	16,275		$	36,860
Additions	—			(1,795		)
Payments received	(1,974		)	(720		)
Amortization	(287		)	(18,588		)
Accretion	62			518
Balance at end of period	$	14,076		$	16,275

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Allowance for Losses on Loans

3 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Allowance for Losses on Loans

Allowance for Losses on Loans

The following tables summarize the activity in the allowance for loan losses.

Three Months Ended December 31, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	47,347	$	(1,139	)	$	2,466	$	(918	)	$	47,756
Construction	6,680		—			155		179			7,014
Construction - custom	990		(60		)	—		132			1,062
Land - acquisition & development	5,781		—			35		962			6,778
Land - consumer lot loans	2,946		(408		)	—		463			3,001
Multi-family	5,304		—			—		(257		)	5,047
Commercial real estate	8,960		(23		)	123		1,284			10,344
Commercial & industrial	24,980		(248		)	1		(637		)	24,096
HELOC	902		(1		)	21		(102		)	820
Consumer	2,939		(242		)	392		(1,106		)	1,983
	$	106,829	$	(2,121	)	$	3,193	$	—		$	107,901

Fiscal Year Ended September 30, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	62,763	$	(5,524	)	$	13,403	$	(23,295	)	$	47,347
Construction	6,742		(388		)	$	120	206			6,680
Construction - custom	1,695		—			—		(705		)	990
Land - acquisition & development	5,592		(38		)	207		20			5,781
Land - consumer lot loans	3,077		(459		)	221		107			2,946
Multi-family	4,248		—			220		836			5,304
Commercial real estate	7,548		(1,711		)	735		2,388			8,960
Commercial & industrial	16,527		(3,354		)	1,374		10,433			24,980
HELOC	928		(66		)	2		38			902
Consumer	3,227		(3,060		)	3,688		(916		)	2,939
Covered loans	2,244		—			—		(2,244		)	—
	$	114,591	$	(14,600	)	$	19,970	$	(13,132	)	$	106,829

There was no provision for loan losses recorded for the three months endedDecember 31, 2015, which compares to a reversal of provision of $5,500,000 for the three months endedDecember 31, 2014. The lack of provision for the quarter ended December 31, 2015 was a result of continued improvement in credit quality of the loan portfolio offset by net growth in the loan portfolio. The related improvement in the credit quality of the loan portfolio relates to the factors below.

The Company had recoveries, net of charge-offs, of $1,072,000 for the quarter ended December 31, 2015, compared with $842,000 of net recoveries for the same quarter one year ago. Non-performing assets amounted to $98,846,000, or 0.67%, of total assets at December 31, 2015, compared to $164,317,000, or 1.13% of total assets at December 31, 2014. Non-accrual loans decreased from $98,353,000 at December 31, 2014, to $56,748,000 at December 31, 2015, a 42.3% decrease. The percentage of delinquent loans decreased from 1.47% at December 31, 2014, to 0.98% at December 31, 2015.

The reserve for unfunded commitments was $3,085,000 as of December 31, 2015, which is unchanged since September 30, 2015.

Management believes the allowance for loan losses plus the reserve for unfunded commitments, totaling $110,986,000, or 1.10% of gross loans, is sufficient to absorb estimated losses inherent in the portfolio.

Acquired loans, including covered loans, are not usually classified as non-performing because at acquisition, the carrying value of these loans is recorded at fair value. As of December 31, 2015, $25,223,000 in acquired loans were subject to the general allowance as the discount related to these balances was no longer sufficient to absorb all of the expected losses.

The following tables show loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.

December 31, 2015	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans (1)		Ratio		Allowance Allocation		Recorded Investment of Loans (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	47,625	$	5,614,580	0.8	%	$	130	$	14,206	0.9	%
Construction	7,014		121,689		5.8		—		—		—
Construction - custom	1,062		218,749		0.5		—		2,578		—
Land - acquisition & development	6,778		77,223		8.8		—		6,649		—
Land - consumer lot loans	3,001		91,664		3.3		—		10,658		—
Multi-family	5,048		1,085,243		0.5		—		3,500		—
Commercial real estate	10,344		939,248		1.1		—		9,811		—
Commercial & industrial	24,096		776,240		3.1		—		27		—
HELOC	820		126,596		0.6		—		1,310		—
Consumer	1,983		180,814		1.1		—		328		—
	$	107,771	$	9,232,046	1.2	%	$	130	$	49,067	0.3	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

September 30, 2015	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans (1)		Ratio		Allowance Allocation		Recorded Investment of Loans (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	47,073	$	5,595,752	0.8	%	$	275	$	51,718	0.5	%
Construction	6,680		124,679		5.4		—		5,441		—
Construction - custom	990		205,692		0.5		—		—		—
Land - acquisition & development	5,781		72,602		8.0		—		2,198		—
Land - consumer lot loans	2,946		93,103		3.2		—		10,824		—
Multi-family	5,304		1,062,194		0.5		—		5,348		—
Commercial real estate	8,960		844,691		1.1		—		8,826		—
Commercial & industrial	24,980		643,577		3.9		—		—		—
HELOC	902		126,594		0.7		—		1,072		—
Consumer	2,938		194,569		1.5		—		86		—
	$	106,554	$	8,963,453	1.2	%	$	275	$	85,513	0.3	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

As of December 31, 2015, $107,771,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $130,000 was specific reserves on loans deemed to be individually impaired. As of September 30, 2015, $106,554,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $275,000 was specific reserves on loans deemed to be individually impaired.

The Company has an asset quality review function that analyzes its loan portfolios and reports the results of the review to the Board of Directors on a quarterly basis. The single-family residential, HELOC and consumer portfolios are evaluated based on their performance as a pool of loans, since no single loan is individually significant or judged by its risk rating, size or potential risk of loss. The construction, land, multi-family, commercial real estate and commercial and industrial loans are risk rated on a loan by loan basis to determine the relative risk inherent in specific borrowers or loans. Based on that risk rating, the loans are assigned a grade and classified as follows:

• 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.

The following tables provide information on loans based on risk rating categories as defined above.

December 31, 2015	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,551,785		$	—		$	77,930		$	—		$	—		$	5,629,715
Construction	655,964			4,274			—			—			—			660,238
Construction - custom	402,000			—			2,849			—			—			404,849
Land - acquisition & development	87,772			5,627			3,626			—			—			97,025
Land - consumer lot loans	100,125			—			2,251			—			—			102,376
Multi-family	997,696			—			—			—			—			997,696
Commercial real estate	813,974			8,111			17,073			—			—			839,157
Commercial & industrial	713,240			3,058			34,775			—			—			751,073
HELOC	127,198			—			721			—			—			127,919
Consumer	180,892			—			250			—			—			181,142
	9,630,645			21,070			139,475			—			—			9,791,190
Non-impaired acquired loans	152,761			—			11,619			—			—			164,380
Credit-impaired acquired loans	79,555			199			36,276			—			—			116,030
Covered loans	37,555			—			1,029			—			—			38,584
Total gross loans	$	9,900,516		$	21,269		$	188,399		$	—		$	—		$	10,110,184
Total grade as a % of total gross loans	97.9		%	0.2		%	1.9		%	—		%	—		%

September 30, 2015	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,558,700		$	—		$	93,145		$	—		$	—		$	5,651,845
Construction	197,935			—			2,574			—			—			200,509
Construction - custom	396,307			—			—			—			—			396,307
Land - acquisition & development	89,656			—			4,552			—			—			94,208
Land - consumer lot loans	103,569			—			420			—			—			103,989
Multi-family	1,118,673			865			6,184			—			—			1,125,722
Commercial real estate	971,510			4,360			10,400			—			—			986,270
Commercial & industrial	575,034			1,496			36,306			—			—			612,836
HELOC	127,398			—			248			—			—			127,646
Consumer	194,451			—			204			—			—			194,655
	9,333,233			6,721			154,033			—			—			9,493,987
Non-impaired acquired loans	149,891			—			16,402			—			—			166,293
Credit-impaired acquired loans	61,019			—			26,062			—			—			87,081
Covered loans	61,776			—			14,133			—			—			75,909
Total gross loans	$	9,605,919		$	6,721		$	210,630		$	—		$	—		$	9,823,270
Total grade as a % of total gross loans	97.8		%	0.1		%	2.1		%	—		%	—		%

The following tables provide information on loans (excluding acquired and covered loans) based on borrower payment activity.

December 31, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,585,859	99.2	%	$	43,856	0.8	%
Construction	660,238		100.0		—		—
Construction - custom	402,331		99.4		2,518		0.6
Land - acquisition & development	96,516		99.5		509		0.5
Land - consumer lot loans	101,437		99.1		939		0.9
Multi-family	996,158		99.8		1,538		0.2
Commercial real estate	832,476		99.2		6,681		0.8
Commercial & industrial	750,958		100.0		115		—
HELOC	127,446		99.6		473		0.4
Consumer	181,023		99.9		119		0.1
	$	9,734,442	99.4	%	$	56,748	0.6	%

September 30, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,592,771	99.0	%	$	59,074	1.0	%
Construction	199,755		99.6		754		0.4
Construction - custom	395,575		99.8		732		0.2
Land - acquisition & development	94,208		100.0		—		—
Land - consumer lot loans	102,716		98.8		1,273		1.2
Multi-family	1,123,165		99.8		2,558		0.2
Commercial real estate	984,093		99.8		2,176		0.2
Commercial & industrial	612,836		100.0		—		—
HELOC	127,083		99.6		563		0.4
Consumer	193,975		99.7		680		0.3
	$	9,426,177	99.3	%	$	67,810	0.7	%

The following tables provide information on impaired loan balances and the related allowances by loan types.

December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	14,791	$	16,304	$	—		$	12,837
Construction	—		—		—			—
Construction - custom	1,182		1,182		—			868
Land - acquisition & development	542		8,630		—			1,327
Land - consumer lot loans	510		527		—			427
Multi-family	761		4,754		—			1,117
Commercial real estate	7,331		8,671		—			4,686
Commercial & industrial	953		6,687		—			948
HELOC	262		631		—			245
Consumer	479		479		—			385
	26,811		47,865		—			22,840
With an allowance recorded:
Single-family residential	246,210		249,530		6,339			246,922
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	2,101		3,303		—			2,294
Land - consumer lot loans	11,080		11,345		—			11,120
Multi-family	2,430		2,435		—			2,437
Commercial real estate	23,802		27,168		—			24,042
Commercial & industrial	—		—		—			—
HELOC	1,393		1,393		—			1,393
Consumer	97		286		—			98
	287,113		295,460		6,339		(1)	288,306
Total:
Single-family residential	261,001		265,834		6,339			259,759
Construction	—		—		—			—
Construction - custom	1,182		1,182		—			868
Land - acquisition & development	2,643		11,933		—			3,621
Land - consumer lot loans	11,590		11,872		—			11,547
Multi-family	3,191		7,189		—			3,554
Commercial real estate	31,133		35,839		—			28,728
Commercial & industrial	953		6,687		—			948
HELOC	1,655		2,024		—			1,638
Consumer	576		765		—			483
	$	313,924	$	343,325	$	6,339	(1)	$	311,146

(1) Includes $130,000 of specific reserves and $6,209,000 included in the general reserves.

September 30, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	17,250	$	19,644	$	—		$	14,069
Construction	453		2,151		—			471
Construction - custom	554		554		—			182
Land - acquisition & development	2,570		9,426		—			926
Land - consumer lot loans	727		814		—			544
Multi-family	3,770		7,054		—			1,545
Commercial real estate	9,427		15,620		—			8,130
Commercial & industrial	2,955		13,066		—			2,681
HELOC	683		1,532		—			536
Consumer	477		703		—			390
	38,866		70,564		—			29,474
With an allowance recorded:
Single-family residential	259,461		263,268		6,678			260,028
Construction	4,988		5,778		—			5,432
Land - acquisition & development	2,486		3,426		—			3,478
Land - consumer lot loans	11,289		11,554		—			11,324
Multi-family	3,823		3,823		—			3,732
Commercial real estate	19,124		21,078		—			18,886
HELOC	1,443		1,443		—			1,359
Consumer	99		289		—			102
	302,713		310,659		6,678		(1)	304,341
Total:
Single-family residential	276,711		282,912		6,678			274,097
Construction	5,441		7,929		—			5,903
Construction - custom	554		554		—			182
Land - acquisition & development	5,056		12,852		—			4,404
Land - consumer lot loans	12,016		12,368		—			11,868
Multi-family	7,593		10,877		—			5,277
Commercial real estate	28,551		36,698		—			27,016
Commercial & industrial	2,955		13,066		—			2,681
HELOC	2,126		2,975		—			1,895
Consumer	576		992		—			492
	$	341,579	$	381,223	$	6,678	(1)	$	333,815

(1) Includes $275,000 of specific reserves and $6,403,000 included in the general reserves.

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Fair Value Measurements

3 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

ASC 825 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 825 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active exchange markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

We have established and documented the Company's process for determining the fair values of the Company's assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, fair value is determined using valuation models or third-party appraisals. The following is a description of the valuation methodologies used to measure and report the fair value of financial assets and liabilities on a recurring or nonrecurring basis:

Measured on a Recurring Basis

Securities

Securities available for sale are recorded at fair value on a recurring basis. Most securities at fair value are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under the provisions of the Fair Value Measurements and Disclosures topic of the FASB Accounting Standards Codification are considered a Level 2 input method. Securities that are traded on active exchanges are considered a Level 1 input method.

The bank offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the bank enters into the opposite trade with a counter party to offset its interest rate risk. The bank has also entered into a commercial loan hedge as well as long term borrowing hedges using interest rate swaps. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique. These are considered a Level 2 input method.

The following tables present the balance of assets and liabilities measured at fair value on a recurring basis.

	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,558	—		—		$	101,558
Obligations of U.S. government	—		425,814		—		425,814
Obligations of states and political subdivisions	—		27,232		—		27,232
Corporate debt securities	—		505,406		—		505,406
Mortgage-backed securities							—
Agency pass-through certificates	—		1,149,087		—		1,149,087
Other Commercial MBS	—		95,691		—		95,691
Total available-for-sale securities	101,558		2,203,230		—		2,304,788
Interest rate contracts	—		9,656		—		9,656
Total financial assets	$	101,558	$	2,212,886	$	—	$	2,314,444
Financial Liabilities
Interest rate contracts	$	—	$	9,656	$	—	$	9,656
Commercial loan hedge	—		565		—		565
Long term borrowing hedge	—		11,759		—		11,759
Total financial liabilities	$	—	$	21,980	$	—	$	21,980

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the quarter ended December 31, 2015.

	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,952	—		—		$	101,952
Obligations of U.S. government	—		482,464		—		482,464
Obligations of states and political subdivisions	—		27,123		—		27,123
Corporate debt securities	—		505,800		—		505,800
Mortgage-backed securities							—
Agency pass-through certificates	—		1,160,518		—		1,160,518
Other Commercial MBS	—		102,706		—		102,706
Total available-for-sale securities	101,952		2,278,611		—		2,380,563
Interest rate contracts	—		11,879		—		11,879
Total financial assets	$	101,952	$	2,290,490	$	—	$	2,392,442
Financial Liabilities
Interest rate contracts	$	—	$	11,879	$	—	$	11,879
Commercial loan hedge	—		966		—		966
Long term borrowing hedge	—		14,555		—		14,555
Total financial liabilities	$	—	$	27,400	$	—	$	27,400

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the fiscal year ended September 30, 2015.

Measured on a Nonrecurring Basis

Impaired Loans & Real Estate Owned

Real estate owned consists principally of properties acquired through foreclosure. From time to time, and on a nonrecurring basis, adjustments using fair value measurements are recorded to reflect increases or decreases based on the current appraisal or estimated value of the collateral, but only up to the fair value of the real estate owned as of the initial transfer date less selling costs.

When management determines that the fair value of the collateral or the real estate held for sale requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the impaired loan or real estate held for sale as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2015 included loans for which a specific reserve allowance was established or a partial charge-off was recorded based on the fair value of collateral, as well as covered REO and real estate held for sale for which fair value of the properties was less than the cost basis.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at December 31, 2015 and December 31, 2014, and the total losses (gains) resulting from those fair value adjustments for the three months ended December 31, 2015 and December 31, 2014. The estimated fair value measurements are shown gross of estimated selling costs.

	Three Months Ended December 31, 2015
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	8,524	$	8,524	$	(1,681	)
Real estate owned (2)	—		—		7,145		7,145		(1,755		)
Balance at end of period	$	—	$	—	$	15,669	$	15,669	$	(3,436	)

(1) The gains (losses) represent remeasurements of collateral-dependent loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate held for sale.

	Three Months Ended December 31, 2014
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	146	$	146	$	(64	)
Real estate owned (2)	—		—		37,942		37,942		8,237
Balance at end of period	$	—	$	—	$	38,088	$	38,088	$	8,173

(1) The gains (losses) represent remeasurements of collateral-dependent loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate held for sale.

Impaired loans - The Company adjusts the carrying amount of impaired loans when there is evidence of probable loss and the expected fair value of the loan is less than its contractual amount. The amount of the impairment may be determined based on the estimated present value of future cash flows or the fair value of the underlying collateral. Impaired loans with a specific reserve allowance based on cash flow analysis or the value of the underlying collateral are classified as Level 3 assets.

The evaluations for impairment are prepared by the Problem Loan Review Committee, which is chaired by the Chief Credit Officer and includes the Loan Review manager and Special Credits manager, as well as senior credit officers, division managers and group executives, as applicable. These evaluations are performed in conjunction with the quarterly allowance for loan loss process.

Applicable loans that were included in the previous quarter's review are reevaluated and if their values are materially different from the prior quarter evaluation, the underlying information (loan balance and collateral value) are compared. Material differences are evaluated for reasonableness and discussions are held between the relationship manager and their division manager to understand the difference and determine if any adjustment is necessary.

The inputs are developed and substantiated on a quarterly basis, based on current borrower developments, market conditions and collateral values. The following methods are used to value impaired loans:

• 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.

• The present value of the expected future cash flows of the collateral is used for measurement of non collateral-dependent loans to test for impairment. The Company calculates the amount and timing of the future cash flows, the effective interest rate to be used to discount the cash flows and the basis for determination of the cash flows, including consideration of current economic and environmental factors, as well as other information relating to current or previous conditions.

Real estate owned ("REO") - 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 appraisals or third-party price options, which is used to establish the fair value of the underlying collateral. The determined fair value, less selling costs, becomes the carrying value of the REO asset.

The fair value of REO assets is re-evaluated quarterly and the REO asset is adjusted to reflect the fair value as necessary. After foreclosure, the valuations are updated periodically and current market conditions may require the assets to be written down further or up to the cost basis established on the date of transfer. The carrying balance of REO assets are also written down or up once a bona fide offer is contractually accepted, through execution of a Purchase and Sale Agreement, where the accepted price is lower than the cost established on the transfer date.

Fair Values of Financial Instruments

U. S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the statement of financial condition, for which it is practicable to estimate those values. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value estimates presented do not reflect the underlying fair value of the Company. 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.

		December 31, 2015				September 30, 2015
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	305,959	$	305,959	$	284,049	$	284,049
Available-for-sale securities
Equity securities	1	101,558		101,558		101,952		101,952
Obligations of U.S. government	2	425,814		425,814		482,464		482,464
Obligations of states and political subdivisions	2	27,232		27,232		27,123		27,123
Corporate debt securities	2	505,406		505,406		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	1,149,087		1,149,087		1,160,518		1,160,518
Other commercial MBS	2	95,691		95,691		102,706		102,706
Total available-for-sale securities		2,304,788		2,304,788		2,380,563		2,380,563
Held-to-maturity securities	2
Mortgage-backed securities
Agency pass-through certificates	2	1,598,370		1,571,288		1,643,216		1,637,420
Total held-to-maturity securities		1,598,370		1,571,288		1,643,216		1,637,420
Loans receivable	3	9,402,730		9,901,403		9,170,634		9,667,750
FDIC indemnification asset	3	14,076		13,271		16,275		15,522
FHLB and FRB stock	2	111,107		111,107		107,198		107,198
Other assets - interest rate contracts	2	9,656		9,656		11,879		11,879
Financial liabilities
Customer accounts	2	10,651,119		9,920,280		10,631,703		10,004,290
FHLB advances	2	1,928,000		2,012,603		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	9,656		9,656		11,879		11,879
Other liabilities - commercial loan hedge	2	565		565		966		966
Other liabilities - long term borrowing hedge	2	11,759		11,759		14,555		14,555

The following methods and assumptions were used to estimate the fair value of financial instruments:

Cash and cash equivalents – The carrying amount of these items is a reasonable estimate of their fair value.

Available-for-sale securities and held-to-maturity securities – Securities at fair value are primarily priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and are considered a Level 2 input method. Equity securities which are exchange traded are considered a Level 1 input method.

Loans receivable and covered loans – For certain homogeneous categories of loans, such as fixed- and variable-rate residential mortgages, fair value is estimated for securities backed by similar loans, adjusted for differences in loan characteristics, using the same methodology described above for AFS and HTM securities. The fair value of other loan types is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types were valued at carrying value because of their floating rate or expected maturity characteristics. Net deferred loan fees are not included in the fair value calculation but are included in the carrying amount.

FDIC indemnification asset – The fair value of the indemnification asset is estimated by discounting the expected future cash flows using the current rates.

FHLB and FRB stock – The fair value is based upon the par value of the stock which equates to its carrying value.

Customer accounts – The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting the estimated future cash flows using the rates currently offered for deposits with similar remaining maturities.

FHLB advances – The fair value of FHLB advances and other borrowings is estimated by discounting the estimated future cash flows using rates currently available to the Company for debt with similar remaining maturities.

Interest Rate Contracts – The bank offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the bank enters into the opposite trade with a counterparty to offset its interest rate risk. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

Commercial Loan Hedge – The fair value of the interest rate swap is estimated by a third party pricing service using a discounted cash flow technique.

Long Term Borrowing Hedges – The fair value of the forward starting interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

The following tables provide a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities.

	December 31, 2015
	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	$	99,907	$	1,600	$	(593	)	$	100,914	1.89	%
5 to 10 years	76,604		—		(1,852		)	74,752		1.35
Over 10 years	254,886		100		(4,838		)	250,148		1.34
Equity Securities
Within 1 year	500		11		—			511		1.80
1 to 5 years	99,922		1,124		—			101,046		1.90
5 to 10 years	—		—		—			—		—
Corporate bonds due
Within 1 year	24,872		103		—			24,975		0.57
1 to 5 years	341,470		839		(108		)	342,201		1.20
5 to 10 years	89,952		558		(3,030		)	87,480		1.80
Over 10 years	50,000		750		—			50,750		3.00
Municipal bonds due
1 to 5 years	2,292		3		—			2,295		1.23
5 to 10 years	1,311		18		—			1,329		2.05
Over 10 years	20,377		3,230		—			23,607		6.45
Mortgage-backed securities
Agency pass-through certificates	1,141,558		11,636		(4,105		)	1,149,089		2.56
Other Commercial MBS	96,383		18		(710		)	95,691		1.58
	2,300,034		19,990		(15,236		)	2,304,788		2.07
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,598,370		5,638		(32,719		)	1,571,289		3.19
	$	3,898,404	$	25,628	$	(47,955	)	$	3,876,077	2.53	%

	September 30, 2015
	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	$	105,065	$	1,923		$	(274	)	$	106,714	1.74	%
5 to 10 years	119,071		35			(1,247		)	117,859		1.54
Over 10 years	262,832		—			(4,941		)	257,891		1.23
Equity Securities
Within 1 year	500		17			—			517		1.80
1 to 5 years	99,922		1,513			—			101,435		1.90
Corporate bonds due
Within 1 year	24,787		191			—			24,978		0.53
1 to 5 years	311,435		1,190			(58		)	312,567		0.88
5 to 10 years	100,000		876			(3,524		)	97,352		1.47
Over 10 years	69,950		953			—			70,903		3.00
Municipal bonds due
1 to 5 years	2,285		8			—			2,293		1.23
5 to 10 years	1,303		7			—			1,310		2.05
Over 10 years	20,382		3,138			—			23,520		6.45
Mortgage-backed securities
Agency pass-through certificates	1,144,787		18,222			(2,491		)	1,160,518		2.48
Other Commercial MBS	103,131		85			(510		)	102,706		1.51
	2,365,450		28,158			(13,045		)	2,380,563		1.97
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,643,216		10,516			(16,312		)	1,637,420		3.19
	$	4,008,666	$	38,674		$	(29,357	)	$	4,017,983	2.46	%

There were no available-for-sale securities sold during the quarter ended December 31, 2015 or the quarter ended December 31, 2014. Substantially all of the agency mortgage-backed securities have contractual due dates that exceed 10 years.

The following tables show the unrealized gross losses and fair value of securities as of December 31, 2015 and September 30, 2015, by length of time that individual securities in each category have been in a continuous loss position. The decline in fair value is attributable to changes in interest rates. Because the Company does not intend to sell these securities and does not consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other than temporarily impaired.

December 31, 2015	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	$	(108	)	$	32,986	$	(3,030	)	$	46,970	$	(3,138	)	$	79,956
U.S. government and agency securities due	(5,062		)	243,329		(2,221		)	109,611		(7,283		)	352,940
Agency pass-through certificates	(3,181		)	636,155		(34,354		)	1,266,121		(37,535		)	1,902,276
	$	(8,351	)	$	912,470	$	(39,605	)	$	1,422,702	$	(47,956	)	$	2,335,172

September 30, 2015	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	$	(183	)	$	72,862	$	(3,399	)	$	46,601	$	(3,582	)	$	119,463
U.S. government and agency securities due	(5,010		)	336,243		(1,452		)	57,344		(6,462		)	393,587
Agency pass-through certificates	(1,036		)	169,541		(18,277		)	1,193,463		(19,313		)	1,363,004
	$	(6,229	)	$	578,646	$	(23,128	)	$	1,297,408	$	(29,357	)	$	1,876,054

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Derivatives and Hedging Activities

3 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

The Bank periodically enters into certain interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rate payments, while the Bank retains a variable rate loan. Under these agreements, the Bank enters into a variable rate loan agreement and a swap agreement with the client. The swap agreement effectively converts the client’s variable rate loan into a fixed rate. The Bank enters into a corresponding swap agreement with a third party in order to offset its exposure on the variable and fixed components of the client's swap agreement. The Bank had $474,900,000 and $439,416,000 notional in interest rate swaps to hedge this exposure as of December 31, 2015 and September 30, 2015, respectively. The interest rate swaps are derivatives under ASC 815, Derivatives and Hedging, with changes in fair value recorded in earnings. There was no net impact to the statement of operations for the three months ended December 31, 2015 as the changes in value for the asset and liability side of the swaps offset each other.

The Bank has also entered into forward-starting interest rate swaps to convert future short-term borrowings to fixed rate payments. The primary purpose of this hedge is to mitigate the risk of rising interest rates, specifically LIBOR rates, which are a benchmark for the short term borrowings. The hedging program qualifies as a cash flow hedge under FASB ASC 815, which provides for matching of the recognition of gains and losses of the interest rate swaps and the hedged items. The hedged item is the LIBOR portion of the series of future short-term fixed rate borrowings over the term of the interest rate swap. Prior to the starting date, the change in the fair value of the interest rate swap is recorded in other comprehensive income. The Bank had $400,000,000 notional in forward starting interest rate swaps to hedge future borrowing rates as of December 31, 2015 and September 30, 2015. The impact on accumulated other comprehensive income as of December 31, 2015 was an after-tax gain of $1,768,000.

The Bank has also entered into an interest rate swap to hedge the interest rate risk of an individual fixed rate commercial loan and this relationship qualifies as a fair value hedge under FASB ASC 815, which provides for matching of the recognition of gains and losses of the interest rate swap and the hedged item. The Bank had $54,155,000 and $54,815,000 notional in interest rate swap to hedge this loan as of December 31, 2015 and September 30, 2015, respectively

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2015 and September 30, 2015:

	Asset Derivatives						Liability Derivatives
	December 31, 2015			September 30, 2015			December 31, 2015			September 30, 2015
	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	$	9,656	Other assets	$	11,879	Other liabilities	$	9,656	Other liabilities	$	11,879
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	565		Other liabilities	966
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	11,759		Other liabilities	14,555
		$	9,656		$	11,879		$	21,980		$	27,400

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Off-Balance-Sheet Credit Exposures

The Company estimates losses on off-balance-sheet credit exposures by allocating a loss percentage derived from historical loss factors for each asset class.

New Accounting Pronouncements

In January 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The new guidance clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. ASU 2014-04 is effective for annual and interim reporting periods within those annual periods, beginning after December 15, 2014. The Company's adoption of this guidance did not have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments are effective for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. ASU 2015-03 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was to be effective for interim and annual periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year and permits companies to voluntarily adopt the new standard as of the original effective date. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

On April 15, 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance in this ASU are effective for interim and annual periods beginning after December 15, 2015 and can be adopted either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. the amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in ASU 2015-16 are effective for years beginning after December 15, 2015. Early adoption is permitted for reporting periods for which financial statements have not been issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

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Loans Receivable (Tables)

3 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Schedule of Loans Receivable

The following table is a summary of loans receivable (including LIP, net of charge offs.)

	December 31, 2015				September 30, 2015
	(In thousands)				(In thousands)
Non-Acquired loans
Single-family residential	$	5,629,715	55.7	%	$	5,651,845	57.5	%
Construction	660,238		6.5		200,509		2.0
Construction - custom	404,849		4.0		396,307		4.0
Land - acquisition & development	97,025		1.0		94,208		1.0
Land - consumer lot loans	102,376		1.0		103,989		1.1
Multi-family	997,696		9.9		1,125,722		11.5
Commercial real estate	839,157		8.3		986,270		10.0
Commercial & industrial	751,073		7.4		612,836		6.2
HELOC	127,919		1.3		127,646		1.3
Consumer	181,142		1.8		194,655		2.0
Total non-acquired loans	9,791,190		96.9	%	9,493,987		96.6	%
Acquired loans	164,380		1.6		166,293		1.7
Credit impaired acquired loans	116,030		1.1		87,081		0.9
Covered loans	38,584		0.4		75,909		0.8
Total gross loans	10,110,184		100.0	%	9,823,270		100.0	%
Less:
Allowance for probable losses	107,901				106,829
Loans in process	535,850				476,796
Discount on acquired loans	25,040				30,095
Deferred net origination fees	38,663				38,916
Total loan contra accounts	707,454				652,636
Net Loans	$	9,402,730			$	9,170,634

Summary of Information Regarding Non-Accrual Loans

The following table sets forth information regarding non-accrual loans.

	December 31, 2015				September 30, 2015
	(In thousands)
Non-accrual loans:
Single-family residential	$	43,856	77.3	%	$	59,074	87.1	%
Construction	—		—		754		1.1	%
Construction - custom	2,518		4.4		732		1.1	%
Land - acquisition & development	509		0.9		—		—	%
Land - consumer lot loans	939		1.7		1,273		1.9	%
Multi-family	1,538		2.7		2,558		3.8	%
Commercial real estate	6,681		11.8		2,176		3.2	%
Commercial & industrial	115		0.2		—		—	%
HELOC	473		0.8		563		0.8	%
Consumer	119		0.2		680		1.0	%
Total non-accrual loans	$	56,748	100	%	$	67,810	100	%

Analysis of Age of Loans in Past Due Status

The following tables provide details regarding delinquent loans.

December 31, 2015	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	$	5,644,009	$	5,576,774	$	17,285	$	9,939	$	40,010	$	67,234	1.19	%
Construction	325,485		324,619		560		306		—		866		0.27
Construction - Custom	221,327		218,773		28		9		2,518		2,554		1.15
Land - Acquisition & Development	85,830		84,805		387		—		638		1,025		1.19
Land - Consumer Lot Loans	102,887		100,224		828		897		938		2,663		2.59
Multi-Family	966,921		965,110		1,196		—		615		1,811		0.19
Commercial Real Estate	929,495		920,582		841		1,933		6,139		8,913		0.96
Commercial & Industrial	756,831		754,611		2,219		1		—		2,220		0.29
HELOC	125,479		124,883		19		19		558		595		0.47
Consumer	181,431		179,977		882		352		221		1,454		0.80
	9,339,695		9,250,358		24,245		13,456		51,637		89,335		0.96
Acquired loans	140,995		140,137		193		16		649		858		0.61
Credit impaired acquired loans	55,060		52,806		854		—		1,400		2,254		4.09
Covered loans	38,584		37,062		501		295		726		1,522		3.94
Total Loans	$	9,574,334	$	9,480,363	$	25,793	$	13,767	$	54,412	$	93,969	0.98	%
Delinquency %			99.02%		0.27%		0.14%		0.57%		0.98%

September 30, 2015	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	$	5,655,928	$	5,590,673	$	17,305	$	7,757	$	40,193	$	65,255	1.15	%
Construction	130,121		130,121		—		—		—		—		—
Construction - Custom	205,692		204,168		791		270		463		1,524		0.74
Land - Acquisition & Development	75,661		74,737		406		—		518		924		1.22
Land - Consumer Lot Loans	104,494		102,045		689		399		1,361		2,449		2.34
Multi-Family	1,068,038		1,065,667		259		454		1,658		2,371		0.22
Commercial Real Estate	893,072		892,180		131		—		761		892		0.10
Commercial & Industrial	617,545		616,602		93		27		823		943		0.15
HELOC	127,648		127,196		174		27		251		452		0.35
Consumer	194,977		194,259		493		170		55		718		0.37
	9,073,176		8,997,648		20,341		9,104		46,083		75,528		0.83
Acquired loans	57,682		56,559		356		—		767		1,123		1.95
Credit impaired acquired loans	139,726		138,940		243		4		539		786		0.56
Covered loans	75,890		70,729		272		90		4,799		5,161		6.80
Total Loans	$	9,346,474	$	9,263,876	$	21,212	$	9,198	$	52,188	$	82,598	0.88	%
Delinquency %			99.12%		0.23%		0.10%		0.56%		0.88%

Schedule of Impaired Loans, Loan Commitments and Loans Serviced

The following table provides information related to loans that were restructured in at TDR during the periods presented:

	Quarter Ended December 31,
	2015					2014
		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	3	$	729	$	729	35	$	9,600	$	9,600
Construction	—	—		—		2	718		718
Land - consumer lot loans	—	—		—		2	532		532
Commercial real estate	5	965		965		—	—		—
Consumer	—	—		—		1	85		85
	8	$	1,694	$	1,694	40	$	10,935	$	10,935

Schedule of Loan Modifications

The following table provides information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.

	Quarter Ended December 31,
	2015			2014
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
TDRs That Subsequently Defaulted:
Single-family residential	5	$	668	8	$	1,431
Land - consumer lot loans	1	148		3	389
	6	$	816	11	$	1,820

Schedule of Changes in the Accretable Yield for Credit Impaired Acquired Loans

The following table shows the changes in accretable yield for acquired impaired loans and acquired non-impaired loans (including covered loans).

	Quarter Ended December 31, 2015												Fiscal Year Ended September 30, 2015
	Acquired Impaired						Acquired Non-impaired						Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)												(In thousands)
Beginning balance	$	72,705		$	111,300		$	7,204		$	187,080		$	97,125		$	135,826		$	14,513		$	275,862
Additions	—			—			—			—			—			—			—			—
Net reclassification from nonaccretable	—			—			—			—			6,307			—			346			—
Accretion	(5,526		)	5,526			(857		)	857			(30,727		)	30,727			(7,655		)	7,655
Transfers to REO	—			—			—			—			—			(2,975		)	—			(150		)
Payments received, net	—			(7,680		)	—			(3,790		)	—			(52,278		)	—			(96,287		)
Ending Balance	$	67,179		$	109,146		$	6,347		$	184,147		$	72,705		$	111,300		$	7,204		$	187,080

Schedule of Activity for FDIC Indemnification Asset

The following table shows activity for the FDIC indemnification asset:

	Three Months Ended December 31, 2015			Fiscal Year Ended September 30, 2015
	(In thousands)
Balance at beginning of period	$	16,275		$	36,860
Additions	—			(1,795		)
Payments received	(1,974		)	(720		)
Amortization	(287		)	(18,588		)
Accretion	62			518
Balance at end of period	$	14,076		$	16,275

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Allowance for Losses on Loans (Tables)

3 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Summary of Activity in Allowance for Loan Losses

The following tables summarize the activity in the allowance for loan losses.

Three Months Ended December 31, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	47,347	$	(1,139	)	$	2,466	$	(918	)	$	47,756
Construction	6,680		—			155		179			7,014
Construction - custom	990		(60		)	—		132			1,062
Land - acquisition & development	5,781		—			35		962			6,778
Land - consumer lot loans	2,946		(408		)	—		463			3,001
Multi-family	5,304		—			—		(257		)	5,047
Commercial real estate	8,960		(23		)	123		1,284			10,344
Commercial & industrial	24,980		(248		)	1		(637		)	24,096
HELOC	902		(1		)	21		(102		)	820
Consumer	2,939		(242		)	392		(1,106		)	1,983
	$	106,829	$	(2,121	)	$	3,193	$	—		$	107,901

Fiscal Year Ended September 30, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	62,763	$	(5,524	)	$	13,403	$	(23,295	)	$	47,347
Construction	6,742		(388		)	$	120	206			6,680
Construction - custom	1,695		—			—		(705		)	990
Land - acquisition & development	5,592		(38		)	207		20			5,781
Land - consumer lot loans	3,077		(459		)	221		107			2,946
Multi-family	4,248		—			220		836			5,304
Commercial real estate	7,548		(1,711		)	735		2,388			8,960
Commercial & industrial	16,527		(3,354		)	1,374		10,433			24,980
HELOC	928		(66		)	2		38			902
Consumer	3,227		(3,060		)	3,688		(916		)	2,939
Covered loans	2,244		—			—		(2,244		)	—
	$	114,591	$	(14,600	)	$	19,970	$	(13,132	)	$	106,829

Summary of Loans Collectively and Individually Evaluated for Impairment and Related Allocation of Reserves

The following tables show loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.

December 31, 2015	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans (1)		Ratio		Allowance Allocation		Recorded Investment of Loans (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	47,625	$	5,614,580	0.8	%	$	130	$	14,206	0.9	%
Construction	7,014		121,689		5.8		—		—		—
Construction - custom	1,062		218,749		0.5		—		2,578		—
Land - acquisition & development	6,778		77,223		8.8		—		6,649		—
Land - consumer lot loans	3,001		91,664		3.3		—		10,658		—
Multi-family	5,048		1,085,243		0.5		—		3,500		—
Commercial real estate	10,344		939,248		1.1		—		9,811		—
Commercial & industrial	24,096		776,240		3.1		—		27		—
HELOC	820		126,596		0.6		—		1,310		—
Consumer	1,983		180,814		1.1		—		328		—
	$	107,771	$	9,232,046	1.2	%	$	130	$	49,067	0.3	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

September 30, 2015	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans (1)		Ratio		Allowance Allocation		Recorded Investment of Loans (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	47,073	$	5,595,752	0.8	%	$	275	$	51,718	0.5	%
Construction	6,680		124,679		5.4		—		5,441		—
Construction - custom	990		205,692		0.5		—		—		—
Land - acquisition & development	5,781		72,602		8.0		—		2,198		—
Land - consumer lot loans	2,946		93,103		3.2		—		10,824		—
Multi-family	5,304		1,062,194		0.5		—		5,348		—
Commercial real estate	8,960		844,691		1.1		—		8,826		—
Commercial & industrial	24,980		643,577		3.9		—		—		—
HELOC	902		126,594		0.7		—		1,072		—
Consumer	2,938		194,569		1.5		—		86		—
	$	106,554	$	8,963,453	1.2	%	$	275	$	85,513	0.3	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

Summary of Loans Based on Credit Quality Indicators

The following tables provide information on loans based on risk rating categories as defined above.

December 31, 2015	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,551,785		$	—		$	77,930		$	—		$	—		$	5,629,715
Construction	655,964			4,274			—			—			—			660,238
Construction - custom	402,000			—			2,849			—			—			404,849
Land - acquisition & development	87,772			5,627			3,626			—			—			97,025
Land - consumer lot loans	100,125			—			2,251			—			—			102,376
Multi-family	997,696			—			—			—			—			997,696
Commercial real estate	813,974			8,111			17,073			—			—			839,157
Commercial & industrial	713,240			3,058			34,775			—			—			751,073
HELOC	127,198			—			721			—			—			127,919
Consumer	180,892			—			250			—			—			181,142
	9,630,645			21,070			139,475			—			—			9,791,190
Non-impaired acquired loans	152,761			—			11,619			—			—			164,380
Credit-impaired acquired loans	79,555			199			36,276			—			—			116,030
Covered loans	37,555			—			1,029			—			—			38,584
Total gross loans	$	9,900,516		$	21,269		$	188,399		$	—		$	—		$	10,110,184
Total grade as a % of total gross loans	97.9		%	0.2		%	1.9		%	—		%	—		%

September 30, 2015	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,558,700		$	—		$	93,145		$	—		$	—		$	5,651,845
Construction	197,935			—			2,574			—			—			200,509
Construction - custom	396,307			—			—			—			—			396,307
Land - acquisition & development	89,656			—			4,552			—			—			94,208
Land - consumer lot loans	103,569			—			420			—			—			103,989
Multi-family	1,118,673			865			6,184			—			—			1,125,722
Commercial real estate	971,510			4,360			10,400			—			—			986,270
Commercial & industrial	575,034			1,496			36,306			—			—			612,836
HELOC	127,398			—			248			—			—			127,646
Consumer	194,451			—			204			—			—			194,655
	9,333,233			6,721			154,033			—			—			9,493,987
Non-impaired acquired loans	149,891			—			16,402			—			—			166,293
Credit-impaired acquired loans	61,019			—			26,062			—			—			87,081
Covered loans	61,776			—			14,133			—			—			75,909
Total gross loans	$	9,605,919		$	6,721		$	210,630		$	—		$	—		$	9,823,270
Total grade as a % of total gross loans	97.8		%	0.1		%	2.1		%	—		%	—		%

The following tables provide information on loans (excluding acquired and covered loans) based on borrower payment activity.

December 31, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,585,859	99.2	%	$	43,856	0.8	%
Construction	660,238		100.0		—		—
Construction - custom	402,331		99.4		2,518		0.6
Land - acquisition & development	96,516		99.5		509		0.5
Land - consumer lot loans	101,437		99.1		939		0.9
Multi-family	996,158		99.8		1,538		0.2
Commercial real estate	832,476		99.2		6,681		0.8
Commercial & industrial	750,958		100.0		115		—
HELOC	127,446		99.6		473		0.4
Consumer	181,023		99.9		119		0.1
	$	9,734,442	99.4	%	$	56,748	0.6	%

September 30, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,592,771	99.0	%	$	59,074	1.0	%
Construction	199,755		99.6		754		0.4
Construction - custom	395,575		99.8		732		0.2
Land - acquisition & development	94,208		100.0		—		—
Land - consumer lot loans	102,716		98.8		1,273		1.2
Multi-family	1,123,165		99.8		2,558		0.2
Commercial real estate	984,093		99.8		2,176		0.2
Commercial & industrial	612,836		100.0		—		—
HELOC	127,083		99.6		563		0.4
Consumer	193,975		99.7		680		0.3
	$	9,426,177	99.3	%	$	67,810	0.7	%

Summary of Impaired Loans Based on Type

The following tables provide information on impaired loan balances and the related allowances by loan types.

December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	14,791	$	16,304	$	—		$	12,837
Construction	—		—		—			—
Construction - custom	1,182		1,182		—			868
Land - acquisition & development	542		8,630		—			1,327
Land - consumer lot loans	510		527		—			427
Multi-family	761		4,754		—			1,117
Commercial real estate	7,331		8,671		—			4,686
Commercial & industrial	953		6,687		—			948
HELOC	262		631		—			245
Consumer	479		479		—			385
	26,811		47,865		—			22,840
With an allowance recorded:
Single-family residential	246,210		249,530		6,339			246,922
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	2,101		3,303		—			2,294
Land - consumer lot loans	11,080		11,345		—			11,120
Multi-family	2,430		2,435		—			2,437
Commercial real estate	23,802		27,168		—			24,042
Commercial & industrial	—		—		—			—
HELOC	1,393		1,393		—			1,393
Consumer	97		286		—			98
	287,113		295,460		6,339		(1)	288,306
Total:
Single-family residential	261,001		265,834		6,339			259,759
Construction	—		—		—			—
Construction - custom	1,182		1,182		—			868
Land - acquisition & development	2,643		11,933		—			3,621
Land - consumer lot loans	11,590		11,872		—			11,547
Multi-family	3,191		7,189		—			3,554
Commercial real estate	31,133		35,839		—			28,728
Commercial & industrial	953		6,687		—			948
HELOC	1,655		2,024		—			1,638
Consumer	576		765		—			483
	$	313,924	$	343,325	$	6,339	(1)	$	311,146

(1) Includes $130,000 of specific reserves and $6,209,000 included in the general reserves.

September 30, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	17,250	$	19,644	$	—		$	14,069
Construction	453		2,151		—			471
Construction - custom	554		554		—			182
Land - acquisition & development	2,570		9,426		—			926
Land - consumer lot loans	727		814		—			544
Multi-family	3,770		7,054		—			1,545
Commercial real estate	9,427		15,620		—			8,130
Commercial & industrial	2,955		13,066		—			2,681
HELOC	683		1,532		—			536
Consumer	477		703		—			390
	38,866		70,564		—			29,474
With an allowance recorded:
Single-family residential	259,461		263,268		6,678			260,028
Construction	4,988		5,778		—			5,432
Land - acquisition & development	2,486		3,426		—			3,478
Land - consumer lot loans	11,289		11,554		—			11,324
Multi-family	3,823		3,823		—			3,732
Commercial real estate	19,124		21,078		—			18,886
HELOC	1,443		1,443		—			1,359
Consumer	99		289		—			102
	302,713		310,659		6,678		(1)	304,341
Total:
Single-family residential	276,711		282,912		6,678			274,097
Construction	5,441		7,929		—			5,903
Construction - custom	554		554		—			182
Land - acquisition & development	5,056		12,852		—			4,404
Land - consumer lot loans	12,016		12,368		—			11,868
Multi-family	7,593		10,877		—			5,277
Commercial real estate	28,551		36,698		—			27,016
Commercial & industrial	2,955		13,066		—			2,681
HELOC	2,126		2,975		—			1,895
Consumer	576		992		—			492
	$	341,579	$	381,223	$	6,678	(1)	$	333,815

(1) Includes $275,000 of specific reserves and $6,403,000 included in the general reser

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value of Assets Measured on Recurring Basis

The following tables present the balance of assets and liabilities measured at fair value on a recurring basis.

	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,558	—		—		$	101,558
Obligations of U.S. government	—		425,814		—		425,814
Obligations of states and political subdivisions	—		27,232		—		27,232
Corporate debt securities	—		505,406		—		505,406
Mortgage-backed securities							—
Agency pass-through certificates	—		1,149,087		—		1,149,087
Other Commercial MBS	—		95,691		—		95,691
Total available-for-sale securities	101,558		2,203,230		—		2,304,788
Interest rate contracts	—		9,656		—		9,656
Total financial assets	$	101,558	$	2,212,886	$	—	$	2,314,444
Financial Liabilities
Interest rate contracts	$	—	$	9,656	$	—	$	9,656
Commercial loan hedge	—		565		—		565
Long term borrowing hedge	—		11,759		—		11,759
Total financial liabilities	$	—	$	21,980	$	—	$	21,980

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the quarter ended December 31, 2015.

	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,952	—		—		$	101,952
Obligations of U.S. government	—		482,464		—		482,464
Obligations of states and political subdivisions	—		27,123		—		27,123
Corporate debt securities	—		505,800		—		505,800
Mortgage-backed securities							—
Agency pass-through certificates	—		1,160,518		—		1,160,518
Other Commercial MBS	—		102,706		—		102,706
Total available-for-sale securities	101,952		2,278,611		—		2,380,563
Interest rate contracts	—		11,879		—		11,879
Total financial assets	$	101,952	$	2,290,490	$	—	$	2,392,442
Financial Liabilities
Interest rate contracts	$	—	$	11,879	$	—	$	11,879
Commercial loan hedge	—		966		—		966
Long term borrowing hedge	—		14,555		—		14,555
Total financial liabilities	$	—	$	27,400	$	—	$	27,400

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 fair value on a nonrecurring basis at December 31, 2015 and December 31, 2014, and the total losses (gains) resulting from those fair value adjustments for the three months ended December 31, 2015 and December 31, 2014. The estimated fair value measurements are shown gross of estimated selling costs.

	Three Months Ended December 31, 2015
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	8,524	$	8,524	$	(1,681	)
Real estate owned (2)	—		—		7,145		7,145		(1,755		)
Balance at end of period	$	—	$	—	$	15,669	$	15,669	$	(3,436	)

(1) The gains (losses) represent remeasurements of collateral-dependent loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate held for sale.

	Three Months Ended December 31, 2014
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	146	$	146	$	(64	)
Real estate owned (2)	—		—		37,942		37,942		8,237
Balance at end of period	$	—	$	—	$	38,088	$	38,088	$	8,173

(1) The gains (losses) represent remeasurements of collateral-dependent loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate held for sale.

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.

		December 31, 2015				September 30, 2015
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	305,959	$	305,959	$	284,049	$	284,049
Available-for-sale securities
Equity securities	1	101,558		101,558		101,952		101,952
Obligations of U.S. government	2	425,814		425,814		482,464		482,464
Obligations of states and political subdivisions	2	27,232		27,232		27,123		27,123
Corporate debt securities	2	505,406		505,406		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	1,149,087		1,149,087		1,160,518		1,160,518
Other commercial MBS	2	95,691		95,691		102,706		102,706
Total available-for-sale securities		2,304,788		2,304,788		2,380,563		2,380,563
Held-to-maturity securities	2
Mortgage-backed securities
Agency pass-through certificates	2	1,598,370		1,571,288		1,643,216		1,637,420
Total held-to-maturity securities		1,598,370		1,571,288		1,643,216		1,637,420
Loans receivable	3	9,402,730		9,901,403		9,170,634		9,667,750
FDIC indemnification asset	3	14,076		13,271		16,275		15,522
FHLB and FRB stock	2	111,107		111,107		107,198		107,198
Other assets - interest rate contracts	2	9,656		9,656		11,879		11,879
Financial liabilities
Customer accounts	2	10,651,119		9,920,280		10,631,703		10,004,290
FHLB advances	2	1,928,000		2,012,603		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	9,656		9,656		11,879		11,879
Other liabilities - commercial loan hedge	2	565		565		966		966
Other liabilities - long term borrowing hedge	2	11,759		11,759		14,555		14,555

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2015 and September 30, 2015:

	Asset Derivatives						Liability Derivatives
	December 31, 2015			September 30, 2015			December 31, 2015			September 30, 2015
	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	$	9,656	Other assets	$	11,879	Other liabilities	$	9,656	Other liabilities	$	11,879
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	565		Other liabilities	966
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	11,759		Other liabilities	14,555
		$	9,656		$	11,879		$	21,980		$	27,400

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.

	December 31, 2015
	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	$	99,907	$	1,600	$	(593	)	$	100,914	1.89	%
5 to 10 years	76,604		—		(1,852		)	74,752		1.35
Over 10 years	254,886		100		(4,838		)	250,148		1.34
Equity Securities
Within 1 year	500		11		—			511		1.80
1 to 5 years	99,922		1,124		—			101,046		1.90
5 to 10 years	—		—		—			—		—
Corporate bonds due
Within 1 year	24,872		103		—			24,975		0.57
1 to 5 years	341,470		839		(108		)	342,201		1.20
5 to 10 years	89,952		558		(3,030		)	87,480		1.80
Over 10 years	50,000		750		—			50,750		3.00
Municipal bonds due
1 to 5 years	2,292		3		—			2,295		1.23
5 to 10 years	1,311		18		—			1,329		2.05
Over 10 years	20,377		3,230		—			23,607		6.45
Mortgage-backed securities
Agency pass-through certificates	1,141,558		11,636		(4,105		)	1,149,089		2.56
Other Commercial MBS	96,383		18		(710		)	95,691		1.58
	2,300,034		19,990		(15,236		)	2,304,788		2.07
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,598,370		5,638		(32,719		)	1,571,289		3.19
	$	3,898,404	$	25,628	$	(47,955	)	$	3,876,077	2.53	%

	September 30, 2015
	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	$	105,065	$	1,923		$	(274	)	$	106,714	1.74	%
5 to 10 years	119,071		35			(1,247		)	117,859		1.54
Over 10 years	262,832		—			(4,941		)	257,891		1.23
Equity Securities
Within 1 year	500		17			—			517		1.80
1 to 5 years	99,922		1,513			—			101,435		1.90
Corporate bonds due
Within 1 year	24,787		191			—			24,978		0.53
1 to 5 years	311,435		1,190			(58		)	312,567		0.88
5 to 10 years	100,000		876			(3,524		)	97,352		1.47
Over 10 years	69,950		953			—			70,903		3.00
Municipal bonds due
1 to 5 years	2,285		8			—			2,293		1.23
5 to 10 years	1,303		7			—			1,310		2.05
Over 10 years	20,382		3,138			—			23,520		6.45
Mortgage-backed securities
Agency pass-through certificates	1,144,787		18,222			(2,491		)	1,160,518		2.48
Other Commercial MBS	103,131		85			(510		)	102,706		1.51
	2,365,450		28,158			(13,045		)	2,380,563		1.97
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,643,216		10,516			(16,312		)	1,637,420		3.19
	$	4,008,666	$	38,674		$	(29,357	)	$	4,017,983	2.46	%

Schedule of Unrealized Losses and Fair Value of Securities

The following tables show the unrealized gross losses and fair value of securities as of December 31, 2015 and September 30, 2015, by length of time that individual securities in each category have been in a continuous loss position. The decline in fair value is attributable to changes in interest rates. Because the Company does not intend to sell these securities and does not consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other than temporarily impaired.

December 31, 2015	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	$	(108	)	$	32,986	$	(3,030	)	$	46,970	$	(3,138	)	$	79,956
U.S. government and agency securities due	(5,062		)	243,329		(2,221		)	109,611		(7,283		)	352,940
Agency pass-through certificates	(3,181		)	636,155		(34,354		)	1,266,121		(37,535		)	1,902,276
	$	(8,351	)	$	912,470	$	(39,605	)	$	1,422,702	$	(47,956	)	$	2,335,172

September 30, 2015	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	$	(183	)	$	72,862	$	(3,399	)	$	46,601	$	(3,582	)	$	119,463
U.S. government and agency securities due	(5,010		)	336,243		(1,452		)	57,344		(6,462		)	393,587
Agency pass-through certificates	(1,036		)	169,541		(18,277		)	1,193,463		(19,313		)	1,363,004
	$	(6,229	)	$	578,646	$	(23,128	)	$	1,297,408	$	(29,357	)	$	1,876,054

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value and Balance Sheet Classification

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.

		December 31, 2015				September 30, 2015
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	305,959	$	305,959	$	284,049	$	284,049
Available-for-sale securities
Equity securities	1	101,558		101,558		101,952		101,952
Obligations of U.S. government	2	425,814		425,814		482,464		482,464
Obligations of states and political subdivisions	2	27,232		27,232		27,123		27,123
Corporate debt securities	2	505,406		505,406		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	1,149,087		1,149,087		1,160,518		1,160,518
Other commercial MBS	2	95,691		95,691		102,706		102,706
Total available-for-sale securities		2,304,788		2,304,788		2,380,563		2,380,563
Held-to-maturity securities	2
Mortgage-backed securities
Agency pass-through certificates	2	1,598,370		1,571,288		1,643,216		1,637,420
Total held-to-maturity securities		1,598,370		1,571,288		1,643,216		1,637,420
Loans receivable	3	9,402,730		9,901,403		9,170,634		9,667,750
FDIC indemnification asset	3	14,076		13,271		16,275		15,522
FHLB and FRB stock	2	111,107		111,107		107,198		107,198
Other assets - interest rate contracts	2	9,656		9,656		11,879		11,879
Financial liabilities
Customer accounts	2	10,651,119		9,920,280		10,631,703		10,004,290
FHLB advances	2	1,928,000		2,012,603		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	9,656		9,656		11,879		11,879
Other liabilities - commercial loan hedge	2	565		565		966		966
Other liabilities - long term borrowing hedge	2	11,759		11,759		14,555		14,555

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2015 and September 30, 2015:

	Asset Derivatives						Liability Derivatives
	December 31, 2015			September 30, 2015			December 31, 2015			September 30, 2015
	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	$	9,656	Other assets	$	11,879	Other liabilities	$	9,656	Other liabilities	$	11,879
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	565		Other liabilities	966
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	11,759		Other liabilities	14,555
		$	9,656		$	11,879		$	21,980		$	27,400

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans in process	$ 535,850	$ 476,796
Loans and Leases Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans in process	$ 923,891	$ 816,014

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Dividends and Share Repurchases (Details) - $ / shares		3 Months Ended
	Jan. 20, 2016	Dec. 31, 2015	Dec. 31, 2014
Dividends Payable [Line Items]
Cash dividends per share (in dollars per share)		$ 0.13	$ 0.15
Stock repurchased (in shares)		423,082	1,116,147
Average cost per share (in dollars per share)		$ 23.49	$ 21.79
Remaining shares authorized to be repurchased (in shares)		3,778,148
Subsequent Event
Dividends Payable [Line Items]
Dividends declared (in dollars per share)	$ 0.14

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Loans Receivable - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,110,184	$ 9,823,270
Ratio of type of loan to total loans receivable	100.00%	100.00%
Allowance for probable losses	$ 107,901	$ 106,829	$ 114,591
Loans in process	535,850	476,796
Discount on acquired loans	25,040	30,095
Deferred net origination fees	38,663	38,916
Charges against loans receivable	707,454	652,636
Loans receivable, net	9,402,730	9,170,634
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	47,756	47,347	62,763
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	7,014	6,680	6,742
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	1,062	990	1,695
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	6,778	5,781	5,592
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	3,001	2,946	3,077
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	5,047	5,304	4,248
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	10,344	8,960	7,548
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	24,096	24,980	16,527
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	820	902	928
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	1,983	2,939	$ 3,227
Non-Acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 9,791,190	$ 9,493,987
Ratio of type of loan to total loans receivable	96.90%	96.60%
Non-Acquired loans | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 5,629,715	$ 5,651,845
Ratio of type of loan to total loans receivable	55.70%	57.50%
Non-Acquired loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 660,238	$ 200,509
Ratio of type of loan to total loans receivable	6.50%	2.00%
Non-Acquired loans | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 404,849	$ 396,307
Ratio of type of loan to total loans receivable	4.00%	4.00%
Non-Acquired loans | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 97,025	$ 94,208
Ratio of type of loan to total loans receivable	1.00%	1.00%
Non-Acquired loans | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 102,376	$ 103,989
Ratio of type of loan to total loans receivable	1.00%	1.10%
Non-Acquired loans | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 997,696	$ 1,125,722
Ratio of type of loan to total loans receivable	9.90%	11.50%
Non-Acquired loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 839,157	$ 986,270
Ratio of type of loan to total loans receivable	8.30%	10.00%
Non-Acquired loans | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 751,073	$ 612,836
Ratio of type of loan to total loans receivable	7.40%	6.20%
Non-Acquired loans | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 127,919	$ 127,646
Ratio of type of loan to total loans receivable	1.30%	1.30%
Non-Acquired loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 181,142	$ 194,655
Ratio of type of loan to total loans receivable	1.80%	2.00%
Acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 164,380	$ 166,293
Ratio of type of loan to total loans receivable	1.60%	1.70%
Credit impaired acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 116,030	$ 87,081
Ratio of type of loan to total loans receivable	1.10%	0.90%
Covered loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 38,584	$ 75,909
Ratio of type of loan to total loans receivable	0.40%	0.80%

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Loans Receivable - Loans on Non-accrual Status (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 56,748	$ 67,810
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	100.00%	100.00%
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 43,856	$ 59,074
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	77.30%	87.10%
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 0	$ 754
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.00%	1.10%
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 2,518	$ 732
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	4.40%	1.10%
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 509	$ 0
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.90%	0.00%
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 939	$ 1,273
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	1.70%	1.90%
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 1,538	$ 2,558
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	2.70%	3.80%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 6,681	$ 2,176
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	11.80%	3.20%
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 115	$ 0
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.20%	0.00%
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 473	$ 563
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.80%	0.80%
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 119	$ 680
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.20%	1.00%

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Loans Receivable - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 1,257
Impaired, interest lost on nonaccrual loans	$ 687
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.98%	1.47%	0.88%
Percent of TDRs classified as performing	96.60%
Troubled debt restructuring, amount	$ 1,694	$ 10,935
Basis point reduction, minimum	1.00%
Basis point reduction, maximum	2.00%
Loans receivable, gross	$ 10,110,184		$ 9,823,270
Single family residential loans as percentage of restructured loans	86.10%
South Valley Bancorp, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired	$ 1,700
Covered loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ratio of past due loans to total loans, net of charge-offs and LIPs	3.94%		6.80%
Loans receivable, gross	$ 38,584		$ 75,909
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term for payment and rate reduction	6 months
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term for payment and rate reduction	12 months
Performing Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring, amount	$ 282,723

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Loans Receivable - Loans Receivable, Analysis of Age of Loans in Past Due Status (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 9,574,334	$ 9,346,474
Current	9,480,363	9,263,876
Past due	$ 93,969	$ 82,598
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.98%	0.88%	1.47%
Ratio of total past due loans to total loans receivable, current	99.02%	99.12%
Ratio of total past due loans to total loans receivable, past due	0.98%	0.88%
Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 25,793	$ 21,212
Ratio of total past due loans to total loans receivable, past due	0.27%	0.23%
Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 13,767	$ 9,198
Ratio of total past due loans to total loans receivable, past due	0.14%	0.10%
Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 54,412	$ 52,188
Ratio of total past due loans to total loans receivable, past due	0.57%	0.56%
Non-Acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 9,339,695	$ 9,073,176
Current	9,250,358	8,997,648
Past due	$ 89,335	$ 75,528
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.96%	0.83%
Non-Acquired loans | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 5,644,009	$ 5,655,928
Current	5,576,774	5,590,673
Past due	$ 67,234	$ 65,255
Ratio of past due loans to total loans, net of charge-offs and LIPs	1.19%	1.15%
Non-Acquired loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 325,485	$ 130,121
Current	324,619	130,121
Past due	$ 866	$ 0
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.27%	0.00%
Non-Acquired loans | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 221,327	$ 205,692
Current	218,773	204,168
Past due	$ 2,554	$ 1,524
Ratio of past due loans to total loans, net of charge-offs and LIPs	1.15%	0.74%
Non-Acquired loans | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 85,830	$ 75,661
Current	84,805	74,737
Past due	$ 1,025	$ 924
Ratio of past due loans to total loans, net of charge-offs and LIPs	1.19%	1.22%
Non-Acquired loans | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 102,887	$ 104,494
Current	100,224	102,045
Past due	$ 2,663	$ 2,449
Ratio of past due loans to total loans, net of charge-offs and LIPs	2.59%	2.34%
Non-Acquired loans | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 966,921	$ 1,068,038
Current	965,110	1,065,667
Past due	$ 1,811	$ 2,371
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.19%	0.22%
Non-Acquired loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 929,495	$ 893,072
Current	920,582	892,180
Past due	$ 8,913	$ 892
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.96%	0.10%
Non-Acquired loans | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 756,831	$ 617,545
Current	754,611	616,602
Past due	$ 2,220	$ 943
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.29%	0.15%
Non-Acquired loans | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 125,479	$ 127,648
Current	124,883	127,196
Past due	$ 595	$ 452
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.47%	0.35%
Non-Acquired loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 181,431	$ 194,977
Current	179,977	194,259
Past due	$ 1,454	$ 718
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.80%	0.37%
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 24,245	$ 20,341
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	17,285	17,305
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	560	0
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	28	791
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	387	406
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	828	689
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,196	259
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	841	131
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	2,219	93
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	19	174
Non-Acquired loans | Financing Receivables, 1 to 29 Days Past Due | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	882	493
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	13,456	9,104
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	9,939	7,757
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	306	0
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	9	270
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	0
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	897	399
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	454
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,933	0
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1	27
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	19	27
Non-Acquired loans | Financing Receivables, 30 to 59 Days Past Due | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	352	170
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	51,637	46,083
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	40,010	40,193
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	0
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	2,518	463
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	638	518
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	938	1,361
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	615	1,658
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	6,139	761
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	823
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	558	251
Non-Acquired loans | Financing Receivables, 60 to 89 Days Past Due | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	221	55
Acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	140,995	57,682
Current	140,137	56,559
Past due	$ 858	$ 1,123
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.61%	1.95%
Acquired loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 193	$ 356
Acquired loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	16	0
Acquired loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	649	767
Credit impaired acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	55,060	139,726
Current	52,806	138,940
Past due	$ 2,254	$ 786
Ratio of past due loans to total loans, net of charge-offs and LIPs	4.09%	0.56%
Credit impaired acquired loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 854	$ 243
Credit impaired acquired loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	4
Credit impaired acquired loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,400	539
Covered loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	38,584	75,890
Current	37,062	70,729
Past due	$ 1,522	$ 5,161
Ratio of past due loans to total loans, net of charge-offs and LIPs	3.94%	6.80%
Covered loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 501	$ 272
Covered loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	295	90
Covered loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 726	$ 4,799

XML

Loans Receivable - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015 USD ($) contract	Dec. 31, 2014 USD ($) contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	8	40
Pre-Modification Outstanding Recorded Investment	$ 1,694	$ 10,935
Troubled debt restructuring, amount	$ 1,694	$ 10,935
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	3	35
Pre-Modification Outstanding Recorded Investment	$ 729	$ 9,600
Troubled debt restructuring, amount	$ 729	$ 9,600
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	0	2
Pre-Modification Outstanding Recorded Investment	$ 0	$ 718
Troubled debt restructuring, amount	$ 0	$ 718
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	0	2
Pre-Modification Outstanding Recorded Investment	$ 0	$ 532
Troubled debt restructuring, amount	$ 0	$ 532
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	5	0
Pre-Modification Outstanding Recorded Investment	$ 965	$ 0
Troubled debt restructuring, amount	$ 965	$ 0
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	0	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 85
Troubled debt restructuring, amount	$ 0	$ 85

XML

Loans Receivable - Loan Modifications (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015 USD ($) contract	Dec. 31, 2014 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of contracts (in contracts) | contract	6	11
Recorded investment | $	$ 816	$ 1,820
Single-family residential
Financing Receivable, Modifications [Line Items]
Number of contracts (in contracts) | contract	5	8
Recorded investment | $	$ 668	$ 1,431
Land - consumer lot loans
Financing Receivable, Modifications [Line Items]
Number of contracts (in contracts) | contract	1	3
Recorded investment | $	$ 148	$ 389

XML

Loans Receivable - Schedule of Changes in the Accretable Yield for Acquired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion	$ 62		$ 518
Credit impaired acquired loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period, accretable yield	72,705	$ 97,125	97,125
Balance at beginning of period, carrying amount of loans	111,300	135,826	135,826
Additions, accretable yield	0	0
Additions, carrying amount of loans	0	0
Reclassification from nonaccretable balance, net, accretable yield	0	6,307
Reclassification from nonaccretable balance, net, carrying value of loans	0	0
Accretion, accretable yield	(5,526)	(30,727)
Accretion	5,526	30,727
Transfers to REO, accretable yield	0	0
Transfers to REO, carrying amount of loans	0	(2,975)
Payments received, net, accretable yield	0	0
Payments received, net, carrying amount of loans	(7,680)	(52,278)
Balance at end of period, accretable yield	67,179	72,705	72,705
Balance at end of period, carrying amount of loans	109,146	111,300	111,300
Acquired Non-Impaired Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period, accretable yield	7,204	14,513	14,513
Balance at beginning of period, carrying amount of loans	187,080	275,862	275,862
Additions, accretable yield	0	0
Additions, carrying amount of loans	0	0
Reclassification from nonaccretable balance, net, accretable yield	0	346
Reclassification from nonaccretable balance, net, carrying value of loans	0	0
Accretion, accretable yield	(857)	(7,655)
Accretion	857	7,655
Transfers to REO, accretable yield	0	0
Transfers to REO, carrying amount of loans	0	(150)
Payments received, net, accretable yield	0	0
Payments received, net, carrying amount of loans	(3,790)	(96,287)
Balance at end of period, accretable yield	6,347	7,204	7,204
Balance at end of period, carrying amount of loans	$ 184,147	$ 187,080	$ 187,080

XML

Loans Receivable - FDIC Indemnification Asset (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
FDIC Indemnification Asset [Roll Forward]
Balance at beginning of period	$ 16,275	$ 36,860
Additions	0	(1,795)
Payments received	(1,974)	(720)
Amortization	(287)	(18,588)
Accretion	62	518
Balance at end of period	$ 14,076	$ 16,275

XML

Allowance for Losses on Loans - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	$ 106,829	$ 114,591
Charge-offs	(2,121)	(14,600)
Recoveries	3,193	19,970
Provision & Transfers	0	(13,132)
Ending Allowance	107,901	106,829
Single-family residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	47,347	62,763
Charge-offs	(1,139)	(5,524)
Recoveries	2,466	13,403
Provision & Transfers	(918)	(23,295)
Ending Allowance	47,756	47,347
Construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	6,680	6,742
Charge-offs	0	(388)
Recoveries	155	120
Provision & Transfers	179	206
Ending Allowance	7,014	6,680
Construction - custom
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	990	1,695
Charge-offs	(60)	0
Recoveries	0	0
Provision & Transfers	132	(705)
Ending Allowance	1,062	990
Land - acquisition & development
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	5,781	5,592
Charge-offs	0	(38)
Recoveries	35	207
Provision & Transfers	962	20
Ending Allowance	6,778	5,781
Land - consumer lot loans
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	2,946	3,077
Charge-offs	(408)	(459)
Recoveries	0	221
Provision & Transfers	463	107
Ending Allowance	3,001	2,946
Multi-family
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	5,304	4,248
Charge-offs	0	0
Recoveries	0	220
Provision & Transfers	(257)	836
Ending Allowance	5,047	5,304
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	8,960	7,548
Charge-offs	(23)	(1,711)
Recoveries	123	735
Provision & Transfers	1,284	2,388
Ending Allowance	10,344	8,960
Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	24,980	16,527
Charge-offs	(248)	(3,354)
Recoveries	1	1,374
Provision & Transfers	(637)	10,433
Ending Allowance	24,096	24,980
HELOC
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	902	928
Charge-offs	(1)	(66)
Recoveries	21	2
Provision & Transfers	(102)	38
Ending Allowance	820	902
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	2,939	3,227
Charge-offs	(242)	(3,060)
Recoveries	392	3,688
Provision & Transfers	(1,106)	(916)
Ending Allowance	1,983	2,939
Covered loans
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	$ 0	2,244
Charge-offs		0
Recoveries		0
Provision & Transfers		(2,244)
Ending Allowance		$ 0

XML

Allowance for Losses on Loans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reversal of loan losses	$ 0	$ 5,500
Charge-offs, net of (recoveries)	(1,072)	$ (842)
Loans receivable, gross	10,110,184		$ 9,823,270
Nonaccrual of interest	$ 56,748		$ 67,810
Nonaccrual of interest, percent increase (decrease)	(42.30%)
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.98%	1.47%	0.88%
Allowance for probable losses	$ 107,901		$ 106,829	$ 114,591
Allowance for credit losses and reserve for unfunded commitments	$ 110,986
Allowance for credit losses and reserve for unfunded commitments, percent of gross loans	1.10%
Acquired loans subject to general allowance	$ 25,223
Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	3,085		3,085
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	43,856		59,074
Allowance for probable losses	47,756		47,347	$ 62,763
Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	9,232,046		8,963,453
Allowance for probable losses	107,771		106,554
Loans Collectively Evaluated for Impairment | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	5,614,580		5,595,752
Allowance for probable losses	47,625		47,073
Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	49,067		85,513
Allowance for probable losses	130		275
Loans Individually Evaluated for Impairment | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	14,206		51,718
Allowance for probable losses	130		275
Non-Performing Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 98,846	$ 164,317
Ratio of non-performing assets to total assets	0.67%	1.13%
Nonaccrual of interest	$ 56,748	$ 98,353	67,810
Non-Performing Loans | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 43,856		$ 59,074

XML

Allowance for Losses on Loans - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 107,901	$ 106,829	$ 114,591
Loans receivable, gross	10,110,184	9,823,270
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	47,756	47,347	62,763
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	7,014	6,680	6,742
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	1,062	990	1,695
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	6,778	5,781	5,592
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	3,001	2,946	3,077
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	5,047	5,304	4,248
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	10,344	8,960	7,548
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	24,096	24,980	16,527
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	820	902	928
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	1,983	2,939	$ 3,227
Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	107,771	106,554
Loans receivable, gross	$ 9,232,046	$ 8,963,453
Ratio	1.20%	1.20%
Loans Collectively Evaluated for Impairment | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 47,625	$ 47,073
Loans receivable, gross	$ 5,614,580	$ 5,595,752
Ratio	0.80%	0.80%
Loans Collectively Evaluated for Impairment | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 7,014	$ 6,680
Loans receivable, gross	$ 121,689	$ 124,679
Ratio	5.80%	5.40%
Loans Collectively Evaluated for Impairment | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 1,062	$ 990
Loans receivable, gross	$ 218,749	$ 205,692
Ratio	0.50%	0.50%
Loans Collectively Evaluated for Impairment | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 6,778	$ 5,781
Loans receivable, gross	$ 77,223	$ 72,602
Ratio	8.80%	8.00%
Loans Collectively Evaluated for Impairment | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 3,001	$ 2,946
Loans receivable, gross	$ 91,664	$ 93,103
Ratio	3.30%	3.20%
Loans Collectively Evaluated for Impairment | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 5,048	$ 5,304
Loans receivable, gross	$ 1,085,243	$ 1,062,194
Ratio	0.50%	0.50%
Loans Collectively Evaluated for Impairment | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 10,344	$ 8,960
Loans receivable, gross	$ 939,248	$ 844,691
Ratio	1.10%	1.10%
Loans Collectively Evaluated for Impairment | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 24,096	$ 24,980
Loans receivable, gross	$ 776,240	$ 643,577
Ratio	3.10%	3.90%
Loans Collectively Evaluated for Impairment | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 820	$ 902
Loans receivable, gross	$ 126,596	$ 126,594
Ratio	0.60%	0.70%
Loans Collectively Evaluated for Impairment | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 1,983	$ 2,938
Loans receivable, gross	$ 180,814	$ 194,569
Ratio	1.10%	1.50%
Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 130	$ 275
Loans receivable, gross	$ 49,067	$ 85,513
Ratio	0.30%	0.30%
Loans Individually Evaluated for Impairment | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 130	$ 275
Loans receivable, gross	$ 14,206	$ 51,718
Ratio	0.90%	0.50%
Loans Individually Evaluated for Impairment | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 0	$ 5,441
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 2,578	$ 0
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 6,649	$ 2,198
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 10,658	$ 10,824
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 3,500	$ 5,348
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 9,811	$ 8,826
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 27	$ 0
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 1,310	$ 1,072
Ratio	0.00%	0.00%
Loans Individually Evaluated for Impairment | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for probable losses	$ 0	$ 0
Loans receivable, gross	$ 328	$ 86
Ratio	0.00%	0.00%

XML

Allowance for Losses on Loans - Internally Assigned Grade (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 10,110,184	$ 9,823,270
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 9,900,516	$ 9,605,919
Total grade as a % of total net loans	97.90%	97.80%
Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 21,269	$ 6,721
Total grade as a % of total net loans	0.20%	0.10%
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 188,399	$ 210,630
Total grade as a % of total net loans	1.90%	2.10%
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0
Total grade as a % of total net loans	0.00%	0.00%
Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0
Total grade as a % of total net loans	0.00%	0.00%
Non-Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 9,791,190	$ 9,493,987
Non-Acquired loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	9,630,645	9,333,233
Non-Acquired loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	21,070	6,721
Non-Acquired loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	139,475	154,033
Non-Acquired loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,629,715	5,651,845
Non-Acquired loans | Single-family residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,551,785	5,558,700
Non-Acquired loans | Single-family residential | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Single-family residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	77,930	93,145
Non-Acquired loans | Single-family residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Single-family residential | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	660,238	200,509
Non-Acquired loans | Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	655,964	197,935
Non-Acquired loans | Construction | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	4,274	0
Non-Acquired loans | Construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	2,574
Non-Acquired loans | Construction | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Construction | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	404,849	396,307
Non-Acquired loans | Construction - custom | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	402,000	396,307
Non-Acquired loans | Construction - custom | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Construction - custom | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	2,849	0
Non-Acquired loans | Construction - custom | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Construction - custom | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	97,025	94,208
Non-Acquired loans | Land - acquisition & development | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	87,772	89,656
Non-Acquired loans | Land - acquisition & development | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,627	0
Non-Acquired loans | Land - acquisition & development | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	3,626	4,552
Non-Acquired loans | Land - acquisition & development | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Land - acquisition & development | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	102,376	103,989
Non-Acquired loans | Land - consumer lot loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	100,125	103,569
Non-Acquired loans | Land - consumer lot loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Land - consumer lot loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	2,251	420
Non-Acquired loans | Land - consumer lot loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Land - consumer lot loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Multi-family
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	997,696	1,125,722
Non-Acquired loans | Multi-family | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	997,696	1,118,673
Non-Acquired loans | Multi-family | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	865
Non-Acquired loans | Multi-family | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	6,184
Non-Acquired loans | Multi-family | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Multi-family | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	839,157	986,270
Non-Acquired loans | Commercial real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	813,974	971,510
Non-Acquired loans | Commercial real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	8,111	4,360
Non-Acquired loans | Commercial real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	17,073	10,400
Non-Acquired loans | Commercial real estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Commercial real estate | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	751,073	612,836
Non-Acquired loans | Commercial & industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	713,240	575,034
Non-Acquired loans | Commercial & industrial | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	3,058	1,496
Non-Acquired loans | Commercial & industrial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	34,775	36,306
Non-Acquired loans | Commercial & industrial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Commercial & industrial | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | HELOC
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	127,919	127,646
Non-Acquired loans | HELOC | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	127,198	127,398
Non-Acquired loans | HELOC | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | HELOC | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	721	248
Non-Acquired loans | HELOC | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | HELOC | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	181,142	194,655
Non-Acquired loans | Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	180,892	194,451
Non-Acquired loans | Consumer | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	250	204
Non-Acquired loans | Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Non-Acquired loans | Consumer | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	164,380	166,293
Acquired loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	152,761	149,891
Acquired loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Acquired loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	11,619	16,402
Acquired loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Acquired loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Credit impaired acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	116,030	87,081
Credit impaired acquired loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	79,555	61,019
Credit impaired acquired loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	199	0
Credit impaired acquired loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	36,276	26,062
Credit impaired acquired loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Credit impaired acquired loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Covered loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	38,584	75,909
Covered loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	37,555	61,776
Covered loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Covered loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,029	14,133
Covered loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Covered loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0

XML

Allowance for Losses on Loans - Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 10,110,184	$ 9,823,270
Nonaccrual loans by portfolio segment	56,748	67,810
Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 9,734,442	$ 9,426,177
Total grade as a % of total net loans	99.40%	99.30%
Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 98,846		$ 164,317
Nonaccrual loans by portfolio segment	$ 56,748	$ 67,810	$ 98,353
Grade as a percentage of total gross loans	0.60%	0.70%
Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 43,856	$ 59,074
Single-family residential | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 5,585,859	$ 5,592,771
Total grade as a % of total net loans	99.20%	99.00%
Single-family residential | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 43,856	$ 59,074
Grade as a percentage of total gross loans	0.80%	1.00%
Construction
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 754
Construction | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 660,238	$ 199,755
Total grade as a % of total net loans	100.00%	99.60%
Construction | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 754
Grade as a percentage of total gross loans	0.00%	0.40%
Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 2,518	$ 732
Construction - custom | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 402,331	$ 395,575
Total grade as a % of total net loans	99.40%	99.80%
Construction - custom | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 2,518	$ 732
Grade as a percentage of total gross loans	0.60%	0.20%
Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 509	$ 0
Land - acquisition & development | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 96,516	$ 94,208
Total grade as a % of total net loans	99.50%	100.00%
Land - acquisition & development | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 509	$ 0
Grade as a percentage of total gross loans	0.50%	0.00%
Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 939	$ 1,273
Land - consumer lot loans | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 101,437	$ 102,716
Total grade as a % of total net loans	99.10%	98.80%
Land - consumer lot loans | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 939	$ 1,273
Grade as a percentage of total gross loans	0.90%	1.20%
Multi-family
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 1,538	$ 2,558
Multi-family | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 996,158	$ 1,123,165
Total grade as a % of total net loans	99.80%	99.80%
Multi-family | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 1,538	$ 2,558
Grade as a percentage of total gross loans	0.20%	0.20%
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 6,681	$ 2,176
Commercial real estate | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 832,476	$ 984,093
Total grade as a % of total net loans	99.20%	99.80%
Commercial real estate | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 6,681	$ 2,176
Grade as a percentage of total gross loans	0.80%	0.20%
Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 115	$ 0
Commercial & industrial | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 750,958	$ 612,836
Total grade as a % of total net loans	100.00%	100.00%
Commercial & industrial | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 115	$ 0
Grade as a percentage of total gross loans	0.00%	0.00%
HELOC
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 473	$ 563
HELOC | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 127,446	$ 127,083
Total grade as a % of total net loans	99.60%	99.60%
HELOC | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 473	$ 563
Grade as a percentage of total gross loans	0.40%	0.40%
Consumer
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 119	$ 680
Consumer | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 181,023	$ 193,975
Total grade as a % of total net loans	99.90%	99.70%
Consumer | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 119	$ 680
Grade as a percentage of total gross loans	0.10%	0.30%

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Allowance for Losses on Loans - Impaired Loans Based on Loan Types (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 313,924	$ 341,579
Unpaid Principal Balance	343,325	381,223
Related Allowance	6,339	6,678
Average Recorded Investment	311,146	333,815
Amount of related allowance included in specific reserves	130	275
Amount of related allowance included in general reserves	6,209	6,403
Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	26,811	38,866
Unpaid Principal Balance	47,865	70,564
Related Allowance	0	0
Average Recorded Investment	22,840	29,474
Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	287,113	302,713
Unpaid Principal Balance	295,460	310,659
Related Allowance	6,339	6,678
Average Recorded Investment	288,306	304,341
Single-family residential
Financing Receivable, Impaired [Line Items]
Recorded Investment	261,001	276,711
Unpaid Principal Balance	265,834	282,912
Related Allowance	6,339	6,678
Average Recorded Investment	259,759	274,097
Single-family residential | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	14,791	17,250
Unpaid Principal Balance	16,304	19,644
Related Allowance	0	0
Average Recorded Investment	12,837	14,069
Single-family residential | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	246,210	259,461
Unpaid Principal Balance	249,530	263,268
Related Allowance	6,339	6,678
Average Recorded Investment	246,922	260,028
Construction
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	5,441
Unpaid Principal Balance	0	7,929
Related Allowance	0	0
Average Recorded Investment	0	5,903
Construction | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	453
Unpaid Principal Balance	0	2,151
Related Allowance	0	0
Average Recorded Investment	0	471
Construction | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	4,988
Unpaid Principal Balance	0	5,778
Related Allowance	0	0
Average Recorded Investment	0	5,432
Construction - custom
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,182	554
Unpaid Principal Balance	1,182	554
Related Allowance	0	0
Average Recorded Investment	868	182
Construction - custom | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,182	554
Unpaid Principal Balance	1,182	554
Related Allowance	0	0
Average Recorded Investment	868	182
Construction - custom | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Land - acquisition & development
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,643	5,056
Unpaid Principal Balance	11,933	12,852
Related Allowance	0	0
Average Recorded Investment	3,621	4,404
Land - acquisition & development | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	542	2,570
Unpaid Principal Balance	8,630	9,426
Related Allowance	0	0
Average Recorded Investment	1,327	926
Land - acquisition & development | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,101	2,486
Unpaid Principal Balance	3,303	3,426
Related Allowance	0	0
Average Recorded Investment	2,294	3,478
Land - consumer lot loans
Financing Receivable, Impaired [Line Items]
Recorded Investment	11,590	12,016
Unpaid Principal Balance	11,872	12,368
Related Allowance	0	0
Average Recorded Investment	11,547	11,868
Land - consumer lot loans | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	510	727
Unpaid Principal Balance	527	814
Related Allowance	0	0
Average Recorded Investment	427	544
Land - consumer lot loans | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	11,080	11,289
Unpaid Principal Balance	11,345	11,554
Related Allowance	0	0
Average Recorded Investment	11,120	11,324
Multi-family
Financing Receivable, Impaired [Line Items]
Recorded Investment	3,191	7,593
Unpaid Principal Balance	7,189	10,877
Related Allowance	0	0
Average Recorded Investment	3,554	5,277
Multi-family | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	761	3,770
Unpaid Principal Balance	4,754	7,054
Related Allowance	0	0
Average Recorded Investment	1,117	1,545
Multi-family | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,430	3,823
Unpaid Principal Balance	2,435	3,823
Related Allowance	0	0
Average Recorded Investment	2,437	3,732
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment	31,133	28,551
Unpaid Principal Balance	35,839	36,698
Related Allowance	0	0
Average Recorded Investment	28,728	27,016
Commercial real estate | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	7,331	9,427
Unpaid Principal Balance	8,671	15,620
Related Allowance	0	0
Average Recorded Investment	4,686	8,130
Commercial real estate | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	23,802	19,124
Unpaid Principal Balance	27,168	21,078
Related Allowance	0	0
Average Recorded Investment	24,042	18,886
Commercial & industrial
Financing Receivable, Impaired [Line Items]
Recorded Investment	953	2,955
Unpaid Principal Balance	6,687	13,066
Related Allowance	0	0
Average Recorded Investment	948	2,681
Commercial & industrial | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	953	2,955
Unpaid Principal Balance	6,687	13,066
Related Allowance	0	0
Average Recorded Investment	948	2,681
Commercial & industrial | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
HELOC
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,655	2,126
Unpaid Principal Balance	2,024	2,975
Related Allowance	0	0
Average Recorded Investment	1,638	1,895
HELOC | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	262	683
Unpaid Principal Balance	631	1,532
Related Allowance	0	0
Average Recorded Investment	245	536
HELOC | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,393	1,443
Unpaid Principal Balance	1,393	1,443
Related Allowance	0	0
Average Recorded Investment	1,393	1,359
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment	576	576
Unpaid Principal Balance	765	992
Related Allowance	0	0
Average Recorded Investment	483	492
Consumer | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	479	477
Unpaid Principal Balance	479	703
Related Allowance	0	0
Average Recorded Investment	385	390
Consumer | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	97	99
Unpaid Principal Balance	286	289
Related Allowance	0	0
Average Recorded Investment	$ 98	$ 102

XML

Fair Value Measurements - Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 2,304,788		$ 2,380,563
Total financial assets	3,876,077		4,017,983
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	2,304,788		2,380,563
Interest rate contracts	9,656		11,879
Total financial assets	2,314,444		2,392,442
Total financial liabilities	21,980		27,400
Recurring | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	9,656		11,879
Recurring | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	565		966
Recurring | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	11,759		14,555
Recurring | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,558		101,952
Recurring | Obligations of U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	425,814		482,464
Recurring | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	27,232		27,123
Recurring | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	505,406		505,800
Recurring | Agency pass-through certificates
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	1,149,087		1,160,518
Recurring | Other Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	95,691		102,706
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,558		101,952
Interest rate contracts	0		0
Total financial assets	101,558		101,952
Total financial liabilities	0		0
Recurring | Level 1 | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	0		0
Recurring | Level 1 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	0		0
Recurring | Level 1 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	0		0
Recurring | Level 1 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,558		101,952
Recurring | Level 1 | Obligations of U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 1 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 1 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 1 | Agency pass-through certificates
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 1 | Other Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	2,203,230		2,278,611
Interest rate contracts	9,656		11,879
Total financial assets	2,212,886		2,290,490
Total financial liabilities	21,980		27,400
Recurring | Level 2 | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	9,656		11,879
Recurring | Level 2 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	565		966
Recurring | Level 2 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	11,759		14,555
Recurring | Level 2 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 2 | Obligations of U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	425,814		482,464
Recurring | Level 2 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	27,232		27,123
Recurring | Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	505,406		505,800
Recurring | Level 2 | Agency pass-through certificates
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	1,149,087		1,160,518
Recurring | Level 2 | Other Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	95,691		102,706
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Interest rate contracts	0		0
Total financial assets	0		0
Total financial liabilities	0		0
Recurring | Level 3 | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	0		0
Recurring | Level 3 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	0		0
Recurring | Level 3 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	0		0
Recurring | Level 3 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 3 | Obligations of U.S. government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 3 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 3 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 3 | Agency pass-through certificates
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Level 3 | Other Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		$ 0
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	15,669	$ 38,088
Nonrecurring | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss related to impaired loans and real estate held for sale, measured on nonrecurring basis	(3,436)	8,173
Nonrecurring | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	8,524	146
Nonrecurring | Impaired loans | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss related to impaired loans and real estate held for sale, measured on nonrecurring basis	(1,681)	(64)
Nonrecurring | Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	7,145	37,942
Nonrecurring | Real Estate Owned | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss related to impaired loans and real estate held for sale, measured on nonrecurring basis	(1,755)	8,237
Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	0	0
Nonrecurring | Level 1 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	0	0
Nonrecurring | Level 1 | Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	0	0
Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	0	0
Nonrecurring | Level 2 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	0	0
Nonrecurring | Level 2 | Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	0	0
Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	15,669	38,088
Nonrecurring | Level 3 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	8,524	146
Nonrecurring | Level 3 | Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	$ 7,145	$ 37,942

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Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	$ 2,304,788	$ 2,380,563
FHLB and FRB stock	111,107	107,198
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	2,304,788	2,380,563
Held-to-maturity securities	1,598,370	1,643,216
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	2,304,788	2,380,563
Held-to-maturity securities	1,571,288	1,637,420
Level 1 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	305,959	284,049
Level 1 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	305,959	284,049
Level 1 | Equity securities | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	101,558	101,952
Level 1 | Equity securities | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	101,558	101,952
Level 2 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and FRB stock	111,107	107,198
Other assets - interest rate contracts	9,656	11,879
Customer accounts	10,651,119	10,631,703
FHLB advances	1,928,000	1,830,000
Level 2 | Carrying Amount | Interest rate contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	9,656	11,879
Level 2 | Carrying Amount | Commercial loan hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	565	966
Level 2 | Carrying Amount | Long term borrowing hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	11,759	14,555
Level 2 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and FRB stock	111,107	107,198
Other assets - interest rate contracts	9,656	11,879
Customer accounts	9,920,280	10,004,290
FHLB advances	2,012,603	1,938,384
Level 2 | Estimated Fair Value | Interest rate contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	9,656	11,879
Level 2 | Estimated Fair Value | Commercial loan hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	565	966
Level 2 | Estimated Fair Value | Long term borrowing hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	11,759	14,555
Level 2 | Agency pass-through certificates | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities	1,598,370	1,643,216
Level 2 | Agency pass-through certificates | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities	1,571,288	1,637,420
Level 2 | Obligations of U.S. government | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	425,814	482,464
Level 2 | Obligations of U.S. government | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	425,814	482,464
Level 2 | Obligations of states and political subdivisions | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	27,232	27,123
Level 2 | Obligations of states and political subdivisions | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	27,232	27,123
Level 2 | Corporate debt securities | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	505,406	505,800
Level 2 | Corporate debt securities | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	505,406	505,800
Level 2 | Agency pass-through certificates | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	1,149,087	1,160,518
Level 2 | Agency pass-through certificates | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	1,149,087	1,160,518
Level 2 | Other Commercial MBS | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	95,691	102,706
Level 2 | Other Commercial MBS | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	95,691	102,706
Level 3 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable	9,402,730	9,170,634
FDIC indemnification asset	14,076	16,275
Level 3 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable	9,901,403	9,667,750
FDIC indemnification asset	$ 13,271	$ 15,522

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Fair Value Measurements - Investments by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Amortized Cost, Available-for-sale securities
Amortized Cost	$ 2,300,034	$ 2,365,450
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains	19,990	28,158
Gross unrealized loss	(15,236)	(13,045)
Fair Value, Available-for-sale securities
Available-for-sale securities, at fair value	$ 2,304,788	$ 2,380,563
Yield, Available-for-sale securities
Yield	2.07%	1.97%
Yield, Held-to-maturity securities
Investments	$ 3,898,404	$ 4,008,666
Gross unrealized gains on investments	25,628	38,674
Gross unrealized losses on investments	(47,955)	(29,357)
Total financial assets	$ 3,876,077	$ 4,017,983
Yield on investments	2.53%	2.46%
Obligations of U.S. government
Amortized Cost, Available-for-sale securities
1 to 5 years	$ 99,907	$ 105,065
5 to 10 years	76,604	119,071
Over 10 years	254,886	262,832
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, 1 to 5 years	1,600	1,923
Gross unrealized gains, 5 to 10 years	0	35
Gross unrealized gains, Over 10 years	100	0
Gross unrealized losses, 1 to 5 years	(593)	(274)
Gross unrealized losses, 5 to 10 years	(1,852)	(1,247)
Gross unrealized losses, Over 10 years	(4,838)	(4,941)
Fair Value, Available-for-sale securities
1 to 5 years	100,914	106,714
5 to 10 years	74,752	117,859
Over 10 years	$ 250,148	$ 257,891
Yield, Available-for-sale securities
1 to 5 years	1.89%	1.74%
5 to 10 years	1.35%	1.54%
Over 10 years	1.34%	1.23%
Equity securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 500	$ 500
1 to 5 years	99,922	99,922
5 to 10 years	0
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Within 1 year	11	17
Gross unrealized gains, 1 to 5 years	1,124	1,513
Gross unrealized gains, 5 to 10 years	0
Gross unrealized losses, Within 1 year	0	0
Gross unrealized losses, 1 to 5 years	0	0
Gross unrealized losses, 5 to 10 years	0
Fair Value, Available-for-sale securities
Within 1 year	511	517
1 to 5 years	101,046	$ 101,435
5 to 10 years	$ 0
Yield, Available-for-sale securities
Within 1 year	1.80%	1.80%
1 to 5 years	1.90%	1.90%
5 to 10 years	0.00%
Corporate debt securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 24,872	$ 24,787
1 to 5 years	341,470	311,435
5 to 10 years	89,952	100,000
Over 10 years	50,000	69,950
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Within 1 year	103	191
Gross unrealized gains, 1 to 5 years	839	1,190
Gross unrealized gains, 5 to 10 years	558	876
Gross unrealized gains, Over 10 years	750	953
Gross unrealized losses, Within 1 year	0	0
Gross unrealized losses, 1 to 5 years	(108)	(58)
Gross unrealized losses, 5 to 10 years	(3,030)	(3,524)
Gross unrealized losses, Over 10 years	0	0
Fair Value, Available-for-sale securities
Within 1 year	24,975	24,978
1 to 5 years	342,201	312,567
5 to 10 years	87,480	97,352
Over 10 years	$ 50,750	$ 70,903
Yield, Available-for-sale securities
Within 1 year	0.57%	0.53%
1 to 5 years	1.20%	0.88%
5 to 10 years	1.80%	1.47%
Over 10 years	3.00%	3.00%
Municipal bonds due
Amortized Cost, Available-for-sale securities
1 to 5 years	$ 2,292	$ 2,285
5 to 10 years	1,311	1,303
Over 10 years	20,377	20,382
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, 1 to 5 years	3	8
Gross unrealized gains, 5 to 10 years	18	7
Gross unrealized gains, Over 10 years	3,230	3,138
Gross unrealized losses, 1 to 5 years	0	0
Gross unrealized losses, 5 to 10 years	0	0
Gross unrealized losses, Over 10 years	0	0
Fair Value, Available-for-sale securities
1 to 5 years	2,295	2,293
5 to 10 years	1,329	1,310
Over 10 years	$ 23,607	$ 23,520
Yield, Available-for-sale securities
1 to 5 years	1.23%	1.23%
5 to 10 years	2.05%	2.05%
Over 10 years	6.45%	6.45%
Agency pass-through certificates
Amortized Cost, Available-for-sale securities
Without single maturity date	$ 1,141,558	$ 1,144,787
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Without single maturity date	11,636	18,222
Gross unrealized losses, Without single maturity date	(4,105)	(2,491)
Fair Value, Available-for-sale securities
Without single maturity date	$ 1,149,089	$ 1,160,518
Yield, Available-for-sale securities
Without single maturity date	2.56%	2.48%
Amortized Cost, Held-to-maturity securities
Without single maturity date	$ 1,598,370	$ 1,643,216
Gross Unrealized Gains / Losses, Held-to-maturity securities
Gross unrealized gains, Without single maturity date	5,638	10,516
Gross unrealized losses, Without single maturity date	(32,719)	(16,312)
Fair Value, Held-to-maturity securities
Without single maturity date	$ 1,571,289	$ 1,637,420
Yield, Held-to-maturity securities
Without a single maturity date	3.19%	3.19%
Other Commercial MBS
Amortized Cost, Available-for-sale securities
Without single maturity date	$ 96,383	$ 103,131
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Without single maturity date	18	85
Gross unrealized losses, Without single maturity date	(710)	(510)
Fair Value, Available-for-sale securities
Without single maturity date	$ 95,691	$ 102,706
Yield, Available-for-sale securities
Without single maturity date	1.58%	1.51%

XML

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Proceeds on available-for-sale securities sold	$ 0	$ 0
Term of contractual due dates of substantially all mortgage-backed securities	10 years

XML

Fair Value Measurements - Securities in Unrealized Loss Positions (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	$ (8,351)	$ (6,229)
Less than 12 months, fair value	912,470	578,646
12 months or more, unrealized gross losses	(39,605)	(23,128)
12 months or more, fair value	1,422,702	1,297,408
Total unrealized gross losses	(47,956)	(29,357)
Total, fair value	2,335,172	1,876,054
Corporate bonds due
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	(108)	(183)
Less than 12 months, fair value	32,986	72,862
12 months or more, unrealized gross losses	(3,030)	(3,399)
12 months or more, fair value	46,970	46,601
Total unrealized gross losses	(3,138)	(3,582)
Total, fair value	79,956	119,463
U.S. government and agency securities due
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	(5,062)	(5,010)
Less than 12 months, fair value	243,329	336,243
12 months or more, unrealized gross losses	(2,221)	(1,452)
12 months or more, fair value	109,611	57,344
Total unrealized gross losses	(7,283)	(6,462)
Total, fair value	352,940	393,587
Agency pass-through certificates
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	(3,181)	(1,036)
Less than 12 months, fair value	636,155	169,541
12 months or more, unrealized gross losses	(34,354)	(18,277)
12 months or more, fair value	1,266,121	1,193,463
Total unrealized gross losses	(37,535)	(19,313)
Total, fair value	$ 1,902,276	$ 1,363,004

XML

Derivatives and Hedging Activities (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Derivative [Line Items]
Gain (loss) on derivative instruments	$ 0
Other comprehensive income (loss) on long term borrowing hedge, net of tax	1,768,000	$ (2,687,000)
Derivative asset, fair value, gross asset	9,656,000		$ 11,879,000
Derivative liability, fair value, gross liability	21,980,000		27,400,000
Interest rate swap agreements
Derivative [Line Items]
Customer derivatives program	474,900,000		439,416,000
Notional amount	54,155,000		54,815,000
Interest rate contracts | Other assets
Derivative [Line Items]
Derivative asset, fair value, gross asset	9,656,000		11,879,000
Interest rate contracts | Other liabilities
Derivative [Line Items]
Derivative liability, fair value, gross liability	9,656,000		11,879,000
Commercial loan hedge | Other assets
Derivative [Line Items]
Derivative asset, fair value, gross asset	0		0
Commercial loan hedge | Other liabilities
Derivative [Line Items]
Derivative liability, fair value, gross liability	565,000		966,000
Long term borrowing hedge | Other assets
Derivative [Line Items]
Derivative asset, fair value, gross asset	0		0
Long term borrowing hedge | Other liabilities
Derivative [Line Items]
Derivative liability, fair value, gross liability	11,759,000		14,555,000
Forward Contracts | Interest rate swap agreements
Derivative [Line Items]
Notional amount	$ 400,000,000		$ 400,000,000