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, 2016

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:	January 25, 2017
Common stock, $1.00 par value	89,307,133

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, 2016 and September 30, 2016	3
	Consolidated Statements of Operations for the three months ended December 31, 2016 and December 31, 2015	4
	Consolidated Statements of Comprehensive Income for the three months ended December 31, 2016 and December 31, 2015	5
	Consolidated Statements of Stockholders' Equity for the three months ended December 31, 2016 and December 31, 2015	6
	Consolidated Statements of Cash Flows for the three months ended December 31, 2016 and December 31, 2015	7
	Notes to Interim Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
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, 2016			September 30, 2016
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	398,838		$	450,368
Available-for-sale securities, at fair value	1,441,935			1,922,894
Held-to-maturity securities, at amortized cost	1,752,010			1,417,599
Loans receivable, net of allowance for loan losses of $118,456 and $113,494	10,136,311			9,910,920
Interest receivable	38,118			37,669
Premises and equipment, net	275,749			281,951
Real estate owned	22,637			29,027
FHLB and FRB stock	117,190			117,205
Bank owned life insurance	209,280			208,123
Intangible assets, including goodwill of $291,503	296,468			296,989
Federal and state income tax assets, net	—			16,047
Other assets	185,118			199,271
	$	14,873,654		$	14,888,063
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Customer accounts
Transaction deposit accounts	$	6,194,337		$	6,005,592
Time deposit accounts	4,453,238			4,595,260
	10,647,575			10,600,852
FHLB advances	2,080,000			2,080,000
Advance payments by borrowers for taxes and insurance	23,596			42,898
Accrued expenses and other liabilities	122,882			188,582
	12,874,053			12,912,332
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,657,007 and 134,307,818 shares issued; 89,272,268 and 89,680,847 shares outstanding	134,657			134,308
Paid-in capital	1,655,146			1,648,388
Accumulated other comprehensive (loss) income, net of taxes	(2,832		)	(11,156		)
Treasury stock, at cost; 45,384,739 and 44,626,971 shares	(760,071		)	(739,686		)
Retained earnings	972,701			943,877
	1,999,601			1,975,731
	$	14,873,654		$	14,888,063

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

3

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended December 31,
	2016		2015
	(In thousands, except share data)
INTEREST INCOME
Loans receivable	$	114,835	$	112,863
Mortgage-backed securities	12,789		16,987
Investment securities and cash equivalents	5,140		5,274
	132,764		135,124
INTEREST EXPENSE
Customer accounts	13,017		12,717
FHLB advances	16,595		15,538
	29,612		28,255
Net interest income	103,152		106,869
Provision (release) for loan losses	—		—
Net interest income after provision (release) for loan losses	103,152		106,869
OTHER INCOME
Gain on sale of investment securities	968		—
Loan fee income	1,334		1,517
Deposit fee income	5,185		5,917
Other income	4,409		3,201
	11,896		10,635
OTHER EXPENSE
Compensation and benefits	26,994		29,699
Occupancy	8,450		8,592
FDIC insurance premiums	2,839		2,589
Product delivery	3,361		5,523
Information technology	6,451		8,710
Other expense	6,246		9,396
	54,341		64,509
Gain on real estate owned, net	398		1,420
Income before income taxes	61,105		54,415
Income tax expense	19,859		19,317
NET INCOME	$	41,246	$	35,098
PER SHARE DATA
Basic earnings per share	$	0.46	$	0.38
Diluted earnings per share	0.46		0.38
Dividends paid on common stock per share	0.14		0.13
Basic weighted average number of shares outstanding	89,310,958		92,986,358
Diluted weighted average number of shares outstanding	89,731,024		93,577,837

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

4

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended December 31,
	2016			2015
	(In thousands)
Net income	$	41,246		$	35,098
Other comprehensive income (loss) net of tax:
Net unrealized gain (loss) on available-for-sale investment securities	(17,079		)	(10,360		)
Reclassification adjustment of net gain (loss) from sale
of available-for-sale securities included in net income	968			—
Related tax benefit (expense)	5,921			3,807
	(10,190		)	(6,553		)
Net unrealized gain (loss) on long-term borrowing hedge	29,271			2,795
Related tax benefit (expense)	(10,757		)	(1,027		)
	18,514			1,768
Other comprehensive income (loss) net of tax	8,324			(4,785		)
Comprehensive income	$	49,570		$	30,313

SEE NOTES TO INTERIM 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, 2016	$	134,308	$	1,648,388		$	943,877		$	(11,156	)	$	(739,686	)	$	1,975,731
Net income						41,246									41,246
Other comprehensive income (loss)									8,324						8,324
Dividends on common stock						(12,422		)							(12,422		)
Proceeds from exercise of common stock options	190		4,172												4,362
Restricted stock expense	109		2,636												2,745
Exercise of stock warrants	50		(50		)										—
Treasury stock acquired												(20,385		)	(20,385		)
Balance at December 31, 2016	$	134,657	$	1,655,146		$	972,701		$	(2,832	)	$	(760,071	)	$	1,999,601
(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

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

6

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended December 31,
	2016			2015
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	41,246		$	35,098
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion, net	12,087			2,054
Cash received from (paid to) FDIC under loss share	—			1,975
Stock based compensation	2,745			1,180
Loss (gain) on sale of investment securities	(968		)	—
Decrease (increase) in accrued interest receivable	(449		)	2,170
Decrease (increase) in federal and state income tax receivable	16,047			16,577
Decrease (increase) in cash surrender value of bank owned life insurance	(1,739		)	(785		)
Gain on settlement of bank owned life insurance	(649		)	—
Net realized (gain) loss on sales of premises, equipment, and real estate owned	657			(2,310		)
Decrease (increase) in other assets	14,153			(3,754		)
Increase (decrease) in accrued expenses and other liabilities	(41,265		)	15,870
Net cash provided by (used in) operating activities	41,865			68,075
CASH FLOWS FROM INVESTING ACTIVITIES
Origination of loans and principal repayments, net	(227,028		)	(179,768		)
Loans purchased	—			(51,646		)
FHLB & FRB stock purchased	(9		)	(6,809		)
FHLB & FRB stock redemption	24			2,901
Available-for-sale securities purchased	—			(50,741		)
Principal payments and maturities of available-for-sale securities	112,469			114,764
Proceeds on available-for-sale securities sold	350,890			—
Held-to-maturity securities purchased	(415,729		)	—
Principal payments and maturities of held-to-maturity securities	78,778			43,569
Proceeds from sales of real estate owned	6,457			26,664
Proceeds from settlement of bank owned life insurance	1,231			—
Purchase of bank owned life insurance	—			—
Decrease (increase) in intangible assets	—			—
Proceeds from sales of premises and equipment	1,722			—
Premises and equipment purchased and REO improvements	(1,252		)	(17,183		)
Net cash provided by (used in) investing activities	(92,447		)	(118,249		)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in customer accounts	46,799			19,492
Proceeds from borrowings	—			204,000
Repayments of borrowings	—			(106,000		)
Proceeds from exercise of common stock options	4,362			5,042
Dividends paid on common stock	(12,422		)	(12,036		)
Treasury stock purchased	(20,385		)	(9,938		)
Increase (decrease) in advance payments by borrowers for taxes and insurance	(19,302		)	(28,476		)
Net cash provided by (used in) financing activities	(948		)	72,084
Increase (decrease) in cash and cash equivalents	(51,530		)	21,910
Cash and cash equivalents at beginning of period	450,368			284,049
Cash and cash equivalents at end of period	$	398,838		$	305,959

(CONTINUED)

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

7

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended December 31,
	2016		2015
	(In thousands)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Non-cash investing activities
Real estate acquired through foreclosure	$	1,589	$	5,308
Non-cash financing activities
Stock issued upon exercise of warrants	1,523		—
Cash paid during the period for
Interest	28,737		29,195
Income taxes	—		8

SEE NOTES TO INTERIM 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 holding 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 information included in this Form 10-Q should be read in conjunction with the financial statements and related notes in the Company's 2016 Annual Report on Form 10-K (“2016 Annual Financial Statements”). 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 2016 Annual Financial Statements. There have not been any material changes in our significant accounting policies compared to those contained in our 2016 Annual Financial Statements for the year ended September 30, 2016.

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 $1,448,878,000 and $1,278,829,000 at December 31, 2016 and September 30, 2016, 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 August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address eight specific cash flow issues with the objective of reducing diversity in practice. The specific issues identified include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to- maturity debt securities, trade and other receivables, net investments in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The ASU eliminates the current framework of recognizing probable incurred losses and instead requires an entity to use its current estimate of all expected credit losses over the contractual life. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets.

For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, an allowance for expected credit losses is recorded as an adjustment to the cost basis of the asset.

9

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Subsequent changes in estimated cash flows would be recorded as an adjustment to the allowance and through the statement of income.

Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security's cost basis.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities and PCD assets, the guidance will be applied prospectively. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the guidance, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however, early adoption is permitted. The Company elected to early adopt the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. The amendments require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The guidance also simplifies the accounting for sale and leaseback transactions. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which will 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 adopted the guidance in the

10

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In April 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 is 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 adopted the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). 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.

NOTE C – Dividends and Share Repurchases

On November 18, 2016, the Company paid a dividend on common stock of $0.14 per share. This dividend was the 135th consecutive quarterly cash dividend paid on common stock. Dividends per share were $0.14 and $0.13 for the quarters ended December 31, 2016 and 2015, respectively. On January 18, 2017, the Company declared a regular dividend on common stock of $0.15 per share, which represented its 136th consecutive quarterly cash dividend, as well as a special cash dividend on common stock of $0.25 per share. These dividends will be paid on February 10, 2017 to common shareholders of record on February 1, 2017.

For the three months endedDecember 31, 2016, the Company repurchased 757,768 shares at an average price of $26.90. Additionally, 49,989 shares of common stock were issued during the three months endedDecember 31, 2016 to investors that exercised warrants previously issued as part of the 2008 Troubled Asset Relief Program ("TARP"). As of December 31, 2016, 689,498 such warrants remain outstanding. Net of warrant repurchase and exercise activity, there are 4,231,553 remaining shares authorized to be repurchased under the current Board approved share repurchase program.

NOTE D – Loans Receivable

The following table is a summary of loans receivable.

11

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	December 31, 2016				September 30, 2016
	(In thousands)				(In thousands)
Gross loans by category
Single-family residential	$	5,624,263	49.6	%	$	5,658,830	51.7	%
Construction	1,265,747		11.2		1,110,411		10.1
Construction - custom	494,447		4.4		473,069		4.3
Land - acquisition & development	119,085		1.1		118,497		1.1
Land - consumer lot loans	101,104		0.9		104,567		1.0
Multi-family	1,217,594		10.7		1,124,290		10.3
Commercial real estate	1,207,573		10.7		1,093,639		10.0
Commercial & industrial	1,025,821		9.1		978,589		8.9
HELOC	148,452		1.3		149,716		1.4
Consumer	124,547		1.1		139,000		1.3
Total gross loans	11,328,633		100.0	%	10,950,608		100.0	%
Less:
Allowance for loan losses	118,456				113,494
Loans in process	1,027,168				879,484
Net deferred fees, costs and discounts	46,698				46,710
Total loan contra accounts	1,192,322				1,039,688
Net loans	$	10,136,311			$	9,910,920

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

	December 31, 2016				September 30, 2016
	(In thousands)
Non-accrual loans:
Single-family residential	$	38,568	63.5	%	$	33,148	78.2	%
Construction	—		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	603		1.0		58		0.1
Land - consumer lot loans	969		1.6		510		1.2
Multi-family	1,160		1.9		776		1.8
Commercial real estate	9,660		15.9		7,100		16.7
Commercial & industrial	9,230		15.2		583		1.4
HELOC	480		0.8		239		0.6
Consumer	45		0.1		—		—
Total non-accrual loans	$	60,715	100	%	$	42,414	100	%

The Company recognized interest income on non-accrual loans of approximately $753,000 in the three months endedDecember 31, 2016. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $547,000 for the three months endedDecember 31, 2016. Interest income actually recognized during the three months endedDecember 31, 2016 is higher because of loans that were brought current or paid off.

12

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

For acquired loans included in the non-accrual loan table above, interest income is still recognized on such loans through accretion of the difference between the carrying amount of the loans and the expected cash flows.

The following tables provide details regarding delinquent loans.

December 31, 2016	Loans Receivable		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans In Process		Current		30		60		90		Total
	(In thousands)
Single-family residential	$	5,623,668	$	5,563,465	$	16,670	$	6,808	$	36,725	$	60,203	1.07	%
Construction	513,046		512,705		341		—		—		341		0.07
Construction - custom	236,668		236,511		49		108		—		157		0.07
Land - acquisition & development	103,148		101,886		728		—		534		1,262		1.22
Land - consumer lot loans	101,045		99,969		235		43		798		1,076		1.06
Multi-family	1,217,594		1,215,726		853		616		399		1,868		0.15
Commercial real estate	1,175,475		1,167,710		1,771		267		5,727		7,765		0.66
Commercial & industrial	1,057,826		1,056,718		858		250		—		1,108		0.10
HELOC	148,448		147,074		893		—		481		1,374		0.93
Consumer	124,547		123,484		662		231		170		1,063		0.85
Total Loans	$	10,301,465	$	10,225,248	$	23,060	$	8,323	$	44,834	$	76,217	0.74	%
Delinquency %			99.26%		0.22%		0.08%		0.44%		0.74%

September 30, 2016	Loans Receivable		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans In Process		Current		30		60		90		Total
	(In thousands)
Single-family residential	$	5,658,122	$	5,601,457	$	20,916	$	5,271	$	30,478	$	56,665	1.00	%
Construction	498,450		498,450		—		—		—		—		—
Construction - custom	229,957		229,419		538		—		—		538		0.23
Land - acquisition & development	94,928		94,928		—		—		—		—		—
Land - consumer lot loans	104,534		102,472		816		687		559		2,062		1.97
Multi-family	1,124,290		1,122,307		1,190		399		394		1,983		0.18
Commercial real estate	1,093,549		1,088,680		69		325		4,475		4,869		0.45
Commercial & industrial	978,582		978,540		—		42		—		42		—
HELOC	149,713		148,513		763		164		273		1,200		0.80
Consumer	138,999		138,078		715		126		80		921		0.66
Total Loans	$	10,071,124	$	10,002,844	$	25,007	$	7,014	$	36,259	$	68,280	0.68	%
Delinquency %			99.32%		0.25%		0.07%		0.36%		0.68%

The percentage of total delinquent loans increased from 0.68% as of September 30, 2016 to 0.74% as of December 31, 2016 and there are no loans greater than 90 days delinquent and still accruing interest as of either date.

13

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following tables provide information related to loans that were restructured in a troubled debt restructuring ("TDR") during the periods presented:

	Three Months Ended December 31,
	2016					2015
		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	12	$	2,134	$	2,134	3	$	729	$	729
Land - consumer lot loans	1	204		204		—	—		—
Commercial real estate	—	—		—		5	965		965
HELOC	1	228		228		—	—		—
	14	$	2,566	$	2,566	8	$	1,694	$	1,694

The following tables provide 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.

	Three Months Ended December 31,
	2016			2015
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
TDRs That Subsequently Defaulted:
Single-family residential	6	$	1,993	5	$	668
Land - consumer lot loans	—	—		1	148
Commercial real estate	2	267		—	—
	8	$	2,260	6	$	816

Most loans restructured in 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, 2016, 94.2% of the Company's $249,950,000 in TDRs were classified as performing. Each request for modification is individually evaluated for merit and likelihood of success. The concession granted in a loan modification is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twenty four 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, 2016, single-family residential loans comprised 87.2% 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 (including covered loans).

14

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	Three Months Ended December 31, 2016											Twelve Months Ended September 30, 2016
	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	$	58,842		$	91,761		$	4,222		$	131,132	$	72,705		$	111,300		$	7,204		$	187,080
Additions	—			—			—			—		—			—			—			—
Net reclassification from non-accretable	—			—			—			—		4,867			—			—			—
Accretion	(3,233		)	3,233			(198		)	198		(18,730		)	18,730			(2,982		)	2,982
Transfers to REO	—			—			—			—		—			(175		)	—			—
Payments received, net	—			(16,852		)	—			5,211		—			(38,094		)	—			(58,930		)
Ending Balance	$	55,609		$	78,142		$	4,024		$	136,541	$	58,842		$	91,761		$	4,222		$	131,132

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.

The remaining outstanding balance of covered loans was $26,691,000 at December 31, 2016 compared to $28,974,000 as of September 30, 2016. The FDIC loss share coverage for single family residential loans related to the Horizon Bank and Home Valley Bank acquisitions will continue for another four years.

The following table shows activity for the FDIC indemnification asset:

	Three Months Ended December 31, 2016			Twelve Months Ended September 30, 2016
	(In thousands)
Balance at beginning of period	$	12,769		$	16,275
Payments made (received)	242			(1,730		)
Amortization	(387		)	(2,012		)
Accretion	50			236
Balance at end of period	$	12,674		$	12,769

15

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

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, 2016	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	37,796	$	(115	)	$	151	$	374		$	38,206
Construction	19,838		—			—		2,096			21,934
Construction - custom	1,080		—			—		30			1,110
Land - acquisition & development	6,023		(20		)	4,018		(3,356		)	6,665
Land - consumer lot loans	2,535		(17		)	70		(87		)	2,501
Multi-family	6,925		—			—		704			7,629
Commercial real estate	8,588		(11		)	356		1,235			10,168
Commercial & industrial	28,008		(58		)	725		(939		)	27,736
HELOC	813		(37		)	1		55			832
Consumer	1,888		(146		)	379		(446		)	1,675
	$	113,494	$	(404	)	$	5,700	$	(334	)	$	118,456

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

The Company recorded no provision for loan losses during the three months endedDecember 31, 2016 or December 31, 2015. Reserving for new loan originations as the loan portfolio grows has been largely offset by recoveries of previously charged-off loans. Recoveries, net of charge-offs, totaled $5,296,000 for the three months endedDecember 31, 2016, compared with $1,072,000 of net recoveries for the same quarter one year ago.

Non-performing assets were $83,352,000, or 0.56%, of total assets at December 31, 2016, compared to $71,441,000, or 0.48%, of total assets at September 30, 2016. Non-accrual loans were $60,715,000 at December 31, 2016, compared to $42,414,000 at September 30, 2016. Delinquencies, as a percent of total loans, were 0.74% at December 31, 2016, compared to 0.68% at September 30, 2016.

The reserve for unfunded commitments was $4,900,000 as of December 31, 2016, which is an increase from $3,235,000 at September 30, 2016.

16

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Management believes the allowance for loan losses plus the reserve for unfunded commitments, totaling $123,356,000, or 1.09% of gross loans, is sufficient to absorb estimated inherent losses.

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

December 31, 2016	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	$	38,092	$	5,585,461	0.7	%	$	114	$	30,165	0.4	%
Construction	21,934		513,046		4.3		—		—		—
Construction - custom	1,110		236,668		0.5		—		—		—
Land - acquisition & development	6,621		101,598		6.5		44		886		5.0
Land - consumer lot loans	2,501		90,947		2.7		—		1,384		—
Multi-family	7,617		1,215,870		0.6		12		1,496		0.8
Commercial real estate	9,971		1,144,389		0.9		197		15,473		1.3
Commercial & industrial	27,736		1,021,372		2.7		—		1,517		—
HELOC	832		138,094		0.6		—		805		—
Consumer	1,675		124,255		1.3		—		—		—
	$	118,089	$	10,171,700	1.2	%	$	367	$	51,726	0.7	%

(1) Excludes acquired impaired loans and covered loans.

September 30, 2016	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	$	37,536	$	5,585,912	0.7	%	$	260	$	19,629	1.3	%
Construction	19,838		498,450		4.0		—		—		—
Construction - custom	1,080		229,298		0.5		—		330		—
Land - acquisition & development	6,022		90,850		6.6		2		850		0.2
Land - consumer lot loans	2,535		92,828		2.7		—		558		—
Multi-family	6,911		1,091,974		0.6		13		1,505		0.9
Commercial real estate	8,497		957,380		0.9		91		11,157		0.8
Commercial & industrial	28,008		966,930		2.9		—		—		—
HELOC	813		133,203		0.6		—		239		—
Consumer	1,888		137,315		1.4		—		3		—
	$	113,128	$	9,784,140	1.2	%	$	366	$	34,271	1.1	%

(1) Excludes acquired impaired loans and covered loans.

As of December 31, 2016, $118,089,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $367,000 was specific reserves on loans deemed to be individually impaired. As of September 30, 2016, $113,128,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $366,000 was specific reserves on loans deemed to be individually impaired.

17

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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 collection or 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, 2016	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Loan type
Single-family residential	$	5,568,663		$	—		$	55,600		$	—		$	—		$	5,624,263
Construction	1,256,396			5,876			3,475			—			—			1,265,747
Construction - custom	494,447			—			—			—			—			494,447
Land - acquisition & development	113,569			—			5,516			—			—			119,085
Land - consumer lot loans	99,703			—			1,401			—			—			101,104
Multi-family	1,211,055			3,658			2,881			—			—			1,217,594
Commercial real estate	1,163,517			6,660			37,396			—			—			1,207,573
Commercial & industrial	969,186			10,813			45,822			—			—			1,025,821
HELOC	147,495			—			957			—			—			148,452
Consumer	124,499			—			48			—			—			124,547
Total gross loans	$	11,148,530		$	27,007		$	153,096		$	—		$	—		$	11,328,633
Total grade as a % of total gross loans	98.4		%	0.2		%	1.4		%	—		%	—		%

September 30, 2016	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Loan type
Single-family residential	$	5,607,521		$	—		$	51,309		$	—		$	—		$	5,658,830
Construction	1,098,549			8,595			3,267			—			—			1,110,411
Construction - custom	473,069			—			—			—			—			473,069
Land - acquisition & development	111,225			—			7,272			—			—			118,497
Land - consumer lot loans	103,528			—			1,039			—			—			104,567
Multi-family	1,117,437			3,237			3,616			—			—			1,124,290
Commercial real estate	1,033,880			13,446			46,313			—			—			1,093,639
Commercial & industrial	930,776			7,207			40,606			—			—			978,589
HELOC	149,195			—			521			—			—			149,716
Consumer	138,917			—			83			—			—			139,000
Total gross loans	$	10,764,097		$	32,485		$	154,026		$	—		$	—		$	10,950,608
Total grade as a % of total gross loans	98.3		%	0.3		%	1.4		%	—		%	—		%

The balance of loans internally graded as 'substandard' above includes $27,835,000 as of December 31, 2016 and $35,910,000 as of September 30, 2016 of acquired loans and covered loans.

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

19

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

December 31, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,549,864	99.3	%	$	38,568	0.7	%
Construction	1,265,747		100.0		—		—
Construction - custom	494,447		100.0		—		—
Land - acquisition & development	116,567		99.5		603		0.5
Land - consumer lot loans	97,556		99.0		969		1.0
Multi-family	1,211,411		99.9		1,160		0.1
Commercial real estate	1,079,298		99.1		9,660		0.9
Commercial & industrial	971,931		99.1		9,230		0.9
HELOC	135,306		99.6		480		0.4
Consumer	123,140		100.0		45		—
	$	11,045,267	99.5	%	$	60,715	0.5	%

September 30, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,587,919	99.4	%	$	33,148	0.6	%
Construction	1,110,411		100.0		—		—
Construction - custom	473,069		100.0		—		—
Land - acquisition & development	116,097		99.9		58		0.1
Land - consumer lot loans	101,343		99.5		510		0.5
Multi-family	1,118,025		99.9		776		0.1
Commercial real estate	949,064		99.3		7,100		0.7
Commercial & industrial	946,065		99.9		583		0.1
HELOC	134,546		99.8		239		0.2
Consumer	137,450		100.0		—		—
	$	10,673,989	99.6	%	$	42,414	0.4	%

20

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, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	15,488	$	17,258	$	—		$	11,050
Land - acquisition & development	165		8,396		—			152
Land - consumer lot loans	713		765		—			525
Multi-family	1,160		5,096		—			968
Commercial real estate	11,407		19,829		—			11,180
Commercial & industrial	9,680		15,065		—			5,355
HELOC	767		1,028		—			471
Consumer	44		592		—			51
	39,424		68,029		—			29,752
Impaired loans with an allowance recorded:
Single-family residential	212,046		216,469		4,502			210,497
Land - acquisition & development	851		1,791		2			851
Land - consumer lot loans	9,056		10,114		41			9,002
Multi-family	1,496		1,496		12			1,501
Commercial real estate	18,246		21,497		197			17,751
Commercial & industrial	1,356		2,414		—			678
HELOC	1,200		1,218		—			1,088
Consumer	77		271		—			78
	244,328		255,270		4,754		(1)	241,446
Total impaired loans:
Single-family residential	227,534		233,727		4,502			221,547
Land - acquisition & development	1,016		10,187		2			1,003
Land - consumer lot loans	9,769		10,879		41			9,527
Multi-family	2,656		6,592		12			2,469
Commercial real estate	29,653		41,326		197			28,931
Commercial & industrial	11,036		17,479		—			6,033
HELOC	1,967		2,246		—			1,559
Consumer	121		863		—			129
	$	283,752	$	323,299	$	4,754	(1)	$	271,198

(1) Includes $367,000 of specific reserves and $4,387,000 included in the general reserves.

21

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	9,627	$	11,366	$	—		$	6,511
Land - acquisition & development	138		9,001		—			614
Land - consumer lot loans	499		609		—			317
Multi-family	394		3,972		—			638
Commercial real estate	11,741		21,301		—			6,260
Commercial & industrial	1,030		3,082		—			863
HELOC	209		315		—			165
Consumer	74		550		—			111
	23,712		50,196		—			15,479
Impaired loans with an allowance recorded:
Single-family residential	228,186		232,595		3,809			216,632
Land - acquisition & development	1,154		2,094		1			1,766
Land - consumer lot loans	9,630		10,678		1			9,548
Multi-family	1,505		1,505		13			1,522
Commercial real estate	19,434		22,848		91			19,311
HELOC	1,506		1,521		—			1,413
Consumer	116		306		—			100
	261,531		271,547		3,915		(1)	250,292
Total impaired loans:
Single-family residential	237,813		243,961		3,809			223,143
Land - acquisition & development	1,292		11,095		1			2,380
Land - consumer lot loans	10,129		11,287		1			9,865
Multi-family	1,899		5,477		13			2,160
Commercial real estate	31,175		44,149		91			25,571
Commercial & industrial	1,030		3,082		—			863
HELOC	1,715		1,836		—			1,578
Consumer	190		856		—			211
	$	285,243	$	321,743	$	3,915	(1)	$	265,771

(1) Includes $366,000 of specific reserves and $3,549,000 included in the general reserves.

22

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE F – Fair Value Measurements

ASC 820 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 820 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. The fair value of debt securities are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under GAAP are considered a Level 2 input method. Securities that are traded on active exchanges, including the Company's equity securities, are measured using the closing price in an active market and 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.

23

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, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	522	$	—	$	—	$	522
U.S. government and agency securities	—		247,268		—		247,268
Municipal bonds	—		26,459		—		26,459
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		208,025		—		208,025
Mortgage-backed securities
Agency pass-through certificates	—		906,847		—		906,847
Commercial MBS	—		52,814		—		52,814
Total available-for-sale securities	522		1,441,413		—		1,441,935
Interest rate contracts	—		2,560		—		2,560
Total financial assets	$	522	$	1,443,973	$	—	$	1,444,495
Financial Liabilities
Interest rate contracts	$	—	$	2,560	$	—	$	2,560
Commercial loan hedges	—		49		—		49
Long term borrowing hedges	—		2,076		—		2,076
Total financial liabilities	$	—	$	4,685	$	—	$	4,685

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the three months endedDecember 31, 2016.

24

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,824	$	—	$	—	$	101,824
U.S. government and agency securities	—		259,351		—		259,351
Municipal bonds	—		27,670		—		27,670
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		461,138		—		461,138
Mortgage-backed securities
Agency pass-through certificates	—		993,041		—		993,041
Commercial MBS	—		79,870		—		79,870
Total available-for-sale securities	101,824		1,821,070		—		1,922,894
Interest rate contracts	—		20,895		—		20,895
Total financial assets	$	101,824	$	1,841,965	$	—	$	1,943,789
Financial Liabilities
Interest rate contracts	$	—	$	20,895	$	—	$	20,895
Commercial loan hedges	—		3,312		—		3,312
Long term borrowing hedges	—		31,347		—		31,347
Total financial liabilities	$	—	$	55,554	$	—	$	55,554

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the fiscal year ended September 30, 2016.

25

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 ("REO") 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 owned 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 owned as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2016 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 real estate owned where the fair value of the property 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, 2016 and December 31, 2015, and the total gains (losses) resulting from those fair value adjustments for the three months endedDecember 31, 2016 and December 31, 2015. The estimated fair value measurements are shown gross of estimated selling costs.

	December 31, 2016								Three Months Ended December 31, 2016
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	3,353	$	3,353	$	(422	)
Real estate owned (2)	—		—		2,299		2,299		(241		)
Balance at end of period	$	—	$	—	$	5,652	$	5,652	$	(663	)

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

(2) The gains (losses) represent aggregate writedowns and charge-offs on REO.

	December 31, 2015								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 REO.

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

26

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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 loans is used for measurement of non collateral-dependent loans to test for impairment.

Real estate owned - When a loan is reclassified from loan status to real estate owned 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 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

ASC 825 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.

27

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

		December 31, 2016				September 30, 2016
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	398,838	$	398,838	$	450,368	$	450,368
Available-for-sale securities
Equity securities	1	522		522		101,824		101,824
U.S. government and agency securities	2	247,268		247,268		259,351		259,351
Municipal bonds	2	26,459		26,459		27,670		27,670
Corporate debt securities	2	208,025		208,025		461,138		461,138
Mortgage-backed securities
Agency pass-through certificates	2	906,847		906,847		993,041		993,041
Commercial MBS	2	52,814		52,814		79,870		79,870
Total available-for-sale securities		1,441,935		1,441,935		1,922,894		1,922,894
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	2	1,752,010		1,723,092		1,417,599		1,441,556
Total held-to-maturity securities		1,752,010		1,723,092		1,417,599		1,441,556
Loans receivable	3	10,136,311		10,424,590		9,910,920		10,414,794
FDIC indemnification asset	3	12,674		12,174		12,769		12,095
FHLB and FRB stock	2	117,190		117,190		117,205		117,205
Other assets - interest rate contracts	2	2,560		2,560		20,895		20,895
Financial liabilities
Customer accounts	2	10,647,575		10,066,485		10,600,852		10,184,321
FHLB advances	2	2,080,000		2,140,150		2,080,000		2,184,671
Other liabilities - interest rate contracts	2	2,560		2,560		20,895		20,895
Other liabilities - commercial loan hedges	2	49		49		3,312		3,312
Other liabilities - long term borrowing hedges	2	2,076		2,076		31,347		31,347

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.

28

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 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, 2016
	Amortized Cost		Gross Unrealized					Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	23,102	$	428	$	(27	)	$	23,503	3.55	%
1 to 5 years	35,788		354		(1,151		)	34,991		2.15
5 to 10 years	42,301		—		(955		)	41,346		1.75
Over 10 years	149,673		—		(2,245		)	147,428		1.44
Equity securities due
Within 1 year	—		—		—			—		—
1 to 5 years	500		22		—			522		1.80
Corporate debt securities due
Within 1 year	28,094		52		—			28,146		1.84
1 to 5 years	63,516		951		(50		)	64,417		2.57
5 to 10 years	69,957		—		(3,361		)	66,596		2.06
Over 10 years	50,000		—		(1,134		)	48,866		3.00
Municipal bonds due
1 to 5 years	2,322		—		(8		)	2,314		1.23
5 to 10 years	1,343		—		(18		)	1,325		2.05
Over 10 years	20,358		2,462		—			22,820		6.45
Mortgage-backed securities
Agency pass-through certificates	904,287		7,546		(4,986		)	906,847		2.65
Commercial MBS	53,097		—		(283		)	52,814		1.95
	1,444,338		11,815		(14,218		)	1,441,935		2.49
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,752,010		3,859		(32,777		)	1,723,092		3.18
	$	3,196,348	$	15,674	$	(46,995	)	$	3,165,027	2.84	%

29

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	September 30, 2016
	Amortized Cost		Gross Unrealized						Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	21,284	$	—		$	(59	)	$	21,225	0.81	%
1 to 5 years	12,477		1,027			(11		)	13,493		7.94
5 to 10 years	48,134		—			(1,589		)	46,545		1.14
Over 10 years	182,051		27			(3,990		)	178,088		1.33
Equity Securities
Within 1 year	—		—			—			—		—
1 to 5 years	100,422		1,402			—			101,824		1.90
Corporate bonds due
Within 1 year	278,094		325			(53		)	278,366		1.33
1 to 5 years	63,481		928			(113		)	64,296		2.47
5 to 10 years	69,955		—			(2,417		)	67,538		1.96
Over 10 years	50,000		938			—			50,938		3.00
Municipal bonds due
1 to 5 years	2,315		2			—			2,317		1.23
5 to 10 years	1,335		38			—			1,373		2.05
Over 10 years	20,363		3,617			—			23,980		6.45
Mortgage-backed securities
Agency pass-through certificates	978,955		17,118			(3,032		)	993,041		2.58
Commercial MBS	80,318		—			(448		)	79,870		1.91
	1,909,184		25,422			(11,712		)	1,922,894		2.22
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,417,599		24,171			(214		)	1,441,556		3.18
	$	3,326,783	$	49,593		$	(11,926	)	$	3,364,450	2.62	%

For available-for-sale investment securities, there were sales totaling $350,890,000 during the three months endedDecember 31, 2016 and no sales during the three months endedDecember 31, 2015. There were no purchases of available-for-sale investment securities during the three months endedDecember 31, 2016 and purchases of $50,741,000 during the three months endedDecember 31, 2015. For held-to-maturity investment securities, there were purchases totaling $415,729,000 during the three months endedDecember 31, 2016 and no purchases during the three months endedDecember 31, 2015. There were no sales of held-to-maturity investment securities during either period. 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, 2016 and September 30, 2016, 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.

30

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

December 31, 2016	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 debt securities	$	(1,134	)	$	48,866	$	(3,411	)	$	76,546	$	(4,545	)	$	125,412
Municipal bonds due	(26		)	3,639		—			—		(26		)	3,639
U.S. government and agency securities	(743		)	24,470		(3,634		)	212,717		(4,377		)	237,187
Agency pass-through certificates	(34,536		)	1,761,731		(3,511		)	431,533		(38,047		)	2,193,264
	$	(36,439	)	$	1,838,706	$	(10,556	)	$	720,796	$	(46,995	)	$	2,559,502

September 30, 2016	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 debt securities	$	—		$	—	$	(2,582	)	$	100,467	$	(2,582	)	$	100,467
U.S. government and agency securities	(11		)	3,167		(5,638		)	220,613		(5,649		)	223,780
Agency pass-through certificates	(1,278		)	301,030		(2,417		)	232,407		(3,695		)	533,437
	$	(1,289	)	$	304,197	$	(10,637	)	$	553,487	$	(11,926	)	$	857,684

31

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 $878,860,000 and $840,935,000 notional in interest rate swaps to hedge this exposure as of December 31, 2016 and September 30, 2016, respectively. The interest rate swaps are derivatives under FASB 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, 2016 and 2015 as the changes in value for the asset and liability side of the swaps offset each other.

The Bank has also entered into interest rate swaps to convert certain existing and future short-term borrowings to fixed rate payments. The primary purpose of these hedges 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 ASC 815, which provides for offsetting 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 existing or future short-term fixed rate borrowings over the term of the interest rate swap. The change in the fair value of the interest rate swaps is recorded in other comprehensive income. The Bank had $700,000,000 and $700,000,000 notional in interest rate swaps to hedge existing and anticipated future borrowings as of December 31, 2016 and September 30, 2016, respectively. The unrealized loss, gross of the related tax benefit, on these interest rate swaps as of December 31, 2016 was $2,076,000 and $31,347,000 as of September 30, 2016.

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 ASC 815, which provides for offsetting of the recognition of gains and losses of the interest rate swap and the hedged item. The Bank hedges this loan using an interest rate swap with a notional amount of $52,936,000 and $54,155,000 as of December 31, 2016 and September 30, 2016, respectively.

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2016 and September 30, 2016:

	Asset Derivatives						Liability Derivatives
	December 31, 2016			September 30, 2016			December 31, 2016			September 30, 2016
	Balance Sheet			Balance Sheet			Balance Sheet			Balance Sheet
	Location	Fair Value		Location	Fair Value		Location	Fair Value		Location	Fair Value
	(In thousands)
Interest rate contracts	Other assets	$	2,560	Other assets	$	20,895	Other liabilities	$	2,560	Other liabilities	$	20,895
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	49		Other liabilities	3,312
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	2,076		Other liabilities	31,347
		$	2,560		$	20,895		$	4,685		$	55,554

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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

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 & BUSINESS DESCRIPTION

Washington Federal Inc. (“Company” or “Washington Federal”) is a bank holding company headquartered in Seattle, Washington that conducts its operations through Washington Federal, National Association (“Bank”), a federally chartered national bank subsidiary. Washington Federal and its subsidiaries are engaged primarily in providing lending, depository, insurance and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate.

The Company's fiscal year end is September 30th. All references to 2016 represent balances as of September 30, 2016 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 loans and transaction deposit accounts, as well as extending the maturity on borrowings. The mix of transaction and savings accounts is 58% of total deposits as of December 31, 2016 while the composition of the investment securities portfolio is 31% variable and 69% fixed rate. When interest rates rise, the fair value of the investment securities with fixed rates will decrease and vice versa when interest rates decline. The Company has $1,752,010,000 of fixed rate mortgage-backed securities that it has designated as held-to-maturity and are carried at amortized cost. As of December 31, 2016, the net unrealized loss on these securities was $28,918,000. The Company has $1,441,935,000 of available-for-sale securities that are carried at fair value. As of December 31, 2016, the net unrealized loss on these securities was $2,403,000. The Bank has executed interest rate swaps to hedge interest rates on existing and future borrowings. The unrealized loss on these interest rate swaps as of December 31, 2016 was $2,076,000. 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. We estimate the sensitivity of our net interest income to changes in market interest rates using an interest rate simulation model that includes assumptions related to the level of balance sheet growth, deposit repricing characteristics and the rate of prepayments for multiple interest rate change scenarios. Interest rate sensitivity depends on certain repricing characteristics in our interest-earnings assets and interest-bearing liabilities, including the maturity structure of assets and liabilities and their repricing characteristics during the periods of changes in market interest rates. The analysis assumes a constant balance sheet. 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.

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

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 increase by 1.7% in the next year. This compares to an estimated increase of 3.2% as of the September 30, 2016 analysis. It is noted that a flattening yield curve would likely result in a 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 increase of 0.9% in the first year and decrease of 0.6% in the second year assuming a constant balance sheet and no management intervention.

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. As of December 31, 2016, in the event of an immediate and parallel increase of 200 basis points in interest rates, the NPV is estimated to decline by $624,683,000 or 24.7% and the NPV to total assets ratio to decline to 13.9% from a base of 17.0%. As of September 30, 2016, the NPV in the event of a 200 basis point increase in rates was estimated to decline by $479,090,000 or 18.6% and the NPV to total assets ratio to decline to 14.8% from a base of 16.9%. The increased NPV sensitivity and higher base NPV ratio is due primarily to higher interest rates and lower prices as of December 31, 2016.

Repricing Gap Analysis. At December 31, 2016, the Company had approximately $2,280,253,000 more in liabilities subject to maturity or repricing in the next year than assets, which resulted in a one-year repricing gap of (15.3)% of total assets. This was an increase from the (10.1)% gap as of September 30, 2016. 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 increased to 2.73% at December 31, 2016 from 2.65% at September 30, 2016. The spread increase of 8 basis points is primarily due to the rise in the Fed funds rate, which resulted in an increased rate being earned on cash. As of December 31, 2016, the weighted average rate on earning assets increased by 7 basis points to 3.65% compared to September 30, 2016, while the weighted average cost of funds decreased by 1 basis point to 0.92%. The interest rate spread increased to 2.73% at December 31, 2016 from 2.72% at December 31, 2015.

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 decreased to 3.02% for the quarter ended December 31, 2016 from 3.18% for the quarter ended December 31, 2015. The yield on earning assets decreased 14 basis points to 3.85% and the cost of interest bearing liabilities increased 3 basis points to 0.93%. The lower yield on earning assets is the result of the low interest rate environment that has led to new originations having lower yields than loans that repaid. The increase in interest costs was due to changes in the mix of customer deposits and FHLB advances.

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

	Three Months Ended December 31, 2016						Three Months Ended December 31, 2015
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	(In thousands)						(In thousands)
Assets
Loans receivable	$	10,013,798	$	114,835	4.55	%	$	9,258,041	$	112,864	4.84	%
Mortgaged-backed securities	2,537,585		12,789		2.00		2,880,242		16,986		2.34
Cash & Investments	1,010,299		4,246		1.67		1,198,471		4,258		1.41
FHLB & FRB stock	117,210		894		3.03		107,793		1,016		3.74
Total interest-earning assets	13,678,892		132,764		3.85	%	13,444,547		135,124		3.99	%
Other assets	1,197,304						1,109,202
Total assets	$	14,876,196					$	14,553,749
Liabilities and Equity
Customer accounts	$	10,610,314	$	13,017	0.49	%	$	10,619,654	$	12,718	0.48	%
FHLB advances	2,080,000		16,595		3.17		1,844,772		15,537		3.34
Total interest-bearing liabilities	12,690,314		29,612		0.93	%	12,464,426		28,255		0.90	%
Other liabilities	201,233						124,370
Total liabilities	12,891,547						12,588,796
Stockholder's equity	1,984,649						1,964,953
Total liabilities and equity	$	14,876,196					$	14,553,749
Net interest income			$	103,152					$	106,869
Net interest margin					3.02	%					3.18	%

As of December 31, 2016, total assets had decreased by $14,409,000 to $14,873,654,000 from $14,888,063,000 at September 30, 2016. During the three months endedDecember 31, 2016, cash and cash equivalents decreased by $51,530,000, loans receivable increased $225,391,000 and investment securities declined by $146,548,000.

Cash and cash equivalents of $398,838,000 and stockholders’ equity of $1,999,601,000 as of December 31, 2016 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 48.7% 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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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 total $398,838,000 at December 31, 2016, a decrease from $450,368,000 at September 30, 2016. These amounts include the Bank's operating cash.

The Company’s net worth at December 31, 2016 was $1,999,601,000, or 13.44% of total assets. This was a increase of $23,870,000 from September 30, 2016 when net worth was $1,975,731,000, or 13.27% of total assets. The Company’s net worth was impacted in the three months ended December 31, 2016 by net income of $41,246,000, the payment of $12,422,000 in cash dividends, treasury stock purchases of $20,385,000, as well as an other comprehensive income of $8,324,000. The ratio of tangible capital to tangible assets at December 31, 2016 was 11.68%. Management believes the Company's strong net worth position allows it to manage balance sheet 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 buy-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 the 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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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		Ratio		Ratio
	(In thousands)
December 31, 2016
Common Equity Tier I risk-based capital ratio:
The Company	$	1,706,176	17.94	%	4.50	%	NA
The Bank	1,666,240		17.50	%	4.50	%	6.50	%
Tier I risk-based capital ratio:
The Company	1,706,176		17.94	%	6.00	%	NA
The Bank	1,666,240		17.50	%	6.00	%	8.00	%
Total risk-based capital ratio:
The Company	1,825,126		19.19	%	8.00	%	NA
The Bank	1,785,335		18.75	%	8.00	%	10.00	%
Tier 1 Leverage ratio:
The Company	1,706,176		11.71	%	4.00	%	NA
The Bank	1,666,240		11.43	%	4.00	%	5.00	%
September 30, 2016
Common Equity Tier 1 risk-based capital ratio:
The Company	1,690,380		17.54	%	4.50	%	NA
The Bank	1,668,828		17.32	%	4.50	%	6.50	%
Tier I risk-based capital ratio:
The Company	1,690,380		17.54	%	6.00	%	NA
The Bank	1,668,828		17.32	%	6.00	%	8.00	%
Total risk-based capital ratio:
The Company	1,807,740		18.76	%	8.00	%	NA
The Bank	1,786,188		18.54	%	8.00	%	10.00	%
Tier 1 Leverage ratio:
The Company	1,690,380		11.60	%	4.00	%	NA
The Bank	1,668,828		11.45	%	4.00	%	5.00	%

CHANGES IN FINANCIAL CONDITION

Cash and cash equivalents: Cash and cash equivalents are $398,838,000 at December 31, 2016, a decrease of $51,530,000, or 11.44%, since September 30, 2016.

Available-for-sale and held-to-maturity securities: Available-for-sale securities decreased $480,959,000, or 25.0%, during the three months ended ended December 31, 2016, due to sales of $350,890,000 as well as repayments, calls and maturities. During the same period, the balance of held-to-maturity securities increased by $334,411,000 due to purchases of $415,729,000 partially offset by paydowns and maturities. As of December 31, 2016, the Company had an unrealized loss on available-for-sale securities of $2,403,000, which is included on a net of tax basis in accumulated other comprehensive income (loss).

Loans receivable: Loans receivable, net of related contra accounts, increased to $10,136,311,000 at December 31, 2016 compared to $9,910,920,000 at September 30, 2016. This increase resulted primarily from originations of $1,241,046,000, partially offset by loan repayments of $896,109,000 and a $147,684,000 increase in loans in process. Commercial loan originations accounted for 70% of total originations and consumer loan originations were 30% during the period. The increase in the loan portfolio is

37

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

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

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.

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

	December 31, 2016				September 30, 2016				Change
	(In thousands)				(In thousands)				$			%
Gross loans by category
Single-family residential	$	5,624,263	49.6	%	$	5,658,830	51.7	%	$	(34,567	)	(0.6	)%
Construction	1,265,747		11.2		1,110,411		10.1		155,336			14.0
Construction - custom	494,447		4.4		473,069		4.3		21,378			4.5
Land - acquisition & development	119,085		1.1		118,497		1.1		588			0.5
Land - consumer lot loans	101,104		0.9		104,567		1.0		(3,463		)	(3.3	)
Multi-family	1,217,594		10.7		1,124,290		10.3		93,304			8.3
Commercial real estate	1,207,573		10.7		1,093,639		10.0		113,934			10.4
Commercial & industrial	1,025,821		9.1		978,589		8.9		47,232			4.8
HELOC	148,452		1.3		149,716		1.4		(1,264		)	(0.8	)
Consumer	124,547		1.1		139,000		1.3		(14,453		)	(10.4	)
Total gross loans	11,328,633		100.0	%	10,950,608		100.0	%	378,025			3.5	%
Less:
Allowance for probable losses	118,456				113,494				4,962			4.4	%
Loans in process	1,027,168				879,484				147,684			16.8
Net deferred fees, costs and discounts	46,698				46,710				(12		)	—
Total loan contra accounts	1,192,322				1,039,688				152,634			14.7
Net Loans	$	10,136,311			$	9,910,920			$	225,391		2.3	%

Non-performing assets: Non-performing assets increased $11,911,000 during the three months endedDecember 31, 2016 to $83,352,000 from $71,441,000 at September 30, 2016. The increase is primarily due to the $18,301,000 rise in non-accrual loans partially offset by the $6,390,000 decline in REO. Non-performing assets as a percentage of total assets increased to 0.56% at December 31, 2016 compared to 0.48% at September 30, 2016.

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

The following table sets forth information regarding restructured loans and non-performing assets.

	December 31, 2016					September 30, 2016
	(In thousands)
Restructured loans:
Single-family residential	$	217,943		87.2	%	$	228,185		87.3	%
Construction	—			—		—			—
Land - acquisition & development	1,139			0.5		1,154			0.4
Land - consumer lot loans	9,619			3.8		9,631			3.7
Multi - family	1,496			0.6		1,505			0.6
Commercial real estate	18,179			7.3		19,434			7.4
HELOC	1,461			0.6		1,506			0.6
Consumer	113			—		116			—
Total restructured loans (1)	$	249,950		100	%	$	261,531		100	%
Non-accrual loans:
Single-family residential	$	38,568		63.5	%	$	33,148		78.2	%
Construction	—			—		—			—
Construction - custom	—			—		—			—
Land - acquisition & development	603			1.0		58			0.1
Land - consumer lot loans	969			1.6		510			1.2
Multi-family	1,160			1.9		776			1.8
Commercial real estate	9,660			15.9		7,100			16.7
Commercial & industrial	9,230			15.2		583			1.4
HELOC	480			0.8		239			0.6
Consumer	45			0.1		—			—
Total non-accrual loans (2)	60,715			100	%	42,414			100	%
Real estate owned	22,637					29,027
Total non-performing assets	$	83,352				$	71,441
Total non-performing assets and performing restructured loans as a percentage of total assets	2.14		%			2.17		%
(1)    Restructured loans were as follows:
Performing	$	235,503		94.2	%	$	251,583		96.2	%
Non-performing (included in non-accrual loans above)	14,447			5.8		9,948			3.8
	$	249,950		100	%	$	261,531		100	%

(2) For the three months endedDecember 31, 2016, the Company recognized $753,000 in interest income on cash payments received from borrowers on non-accrual loans. The Company would have recognized interest income of $547,000 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 non-accrual loans reflected in the above table, the Company had $107,639,000 of loans that were less than 90 days delinquent at December 31, 2016 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 2.87% at December 31, 2016.

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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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 87.2% of restructured loans as of December 31, 2016. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to twenty four months. Interest-only payments may also be approved during the modification period.

For commercial loans, six consecutive payments on newly restructured loan terms are generally 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.

Allowance for loan losses: The following table shows the Company’s allowance for loan losses by loan category.

December 31, 2016	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	$	38,092	$	5,585,461	0.7	%	$	114	$	30,165	0.4	%
Construction	21,934		513,046		4.3		—		—		—
Construction - custom	1,110		236,668		0.5		—		—		—
Land - acquisition & development	6,621		101,598		6.5		44		886		5.0
Land - consumer lot loans	2,501		90,947		2.7		—		1,384		—
Multi-family	7,617		1,215,870		0.6		12		1,496		0.8
Commercial real estate	9,971		1,144,389		0.9		197		15,473		1.3
Commercial & industrial	27,736		1,021,372		2.7		—		1,517		—
HELOC	832		138,094		0.6		—		805		—
Consumer	1,675		124,255		1.3		—		—		—
	$	118,089	$	10,171,700	1.2	%	$	367	$	51,726	0.7	%

(1) Excludes acquired impaired loans and covered loans.

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

September 30, 2016	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	$	37,536	$	5,585,912	0.7	%	$	260	$	19,629	1.3	%
Construction	19,838		498,450		4.0		—		—		—
Construction - custom	1,080		229,298		0.5		—		330		—
Land - acquisition & development	6,022		90,850		6.6		2		850		0.2
Land - consumer lot loans	2,535		92,828		2.7		—		558		—
Multi-family	6,911		1,091,974		0.6		13		1,505		0.9
Commercial real estate	8,497		957,380		0.9		91		11,157		0.8
Commercial & industrial	28,008		966,930		2.9		—		—		—
HELOC	813		133,203		0.6		—		239		—
Consumer	1,888		137,315		1.4		—		3		—
	$	113,128	$	9,784,140	1.2	%	$	366	$	34,271	1.1	%

(1) Excludes acquired impaired loans and covered loans.

Reserve for losses on unfunded commitments: Unfunded commitments tend to vary depending on our loan mix and the proportion share of commercial loans. The reserve for unfunded commitments was $4,900,000 as of December 31, 2016, which is an increase from $3,235,000 at September 30, 2016. Management believes the allowance for loan losses plus the reserve for unfunded commitments, totaling $123,356,000, or 1.09% 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 as of and for the period ended December 31, 2016.

Real estate owned: Real estate owned decreased during the three months endedDecember 31, 2016 by $6,390,000 to $22,637,000. The decrease is primarily due to sales of REO properties during the period.

41

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

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

Customer accounts: Customer accounts increased $46,723,000, or 0.4%, to $10,647,575,000 at December 31, 2016 compared with $10,600,852,000 at September 30, 2016.

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

	December 31, 2016						September 30, 2016
	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	$	1,124,169	10.6	%	—	%	$	1,091,738	10.3	%	—	%
Interest checking	1,732,836		16.3		0.15		1,629,983		15.4		0.10
Savings (passbook/statement)	844,849		7.9		0.10		820,980		7.7		0.10
Money market	2,492,483		23.4		0.15		2,462,891		23.2		0.15
Time deposits	4,453,238		41.8		0.99		4,595,260		43.3		1.02
Total	$	10,647,575	100	%	0.48	%	$	10,600,852	100	%	0.50	%

FHLB advances and other borrowings: Total borrowings remained unchanged at $2,080,000,000 as of December 31, 2016 and September 30, 2016.

RESULTS OF OPERATIONS

Net Income: The Company recorded net income of $41,246,000 for the three months endedDecember 31, 2016 compared to $35,098,000 for the same quarter one year ago.

Net Interest Income: For the quarter ended December 31, 2016, net interest income was $103,152,000 which is $3,717,000 lower than the same quarter of the prior year. Net interest margin was 3.02% for the quarter ended December 31, 2016 compared to 3.18% for the quarter ended December 31, 2015. The decrease in net interest income and margin was primarily due to the lower yield on earning assets, which declined from 3.99% to 3.85%. The decrease in average yield on interest earning assets was primarily a result of the low interest rate environment that led to new loan originations having lower yields than loans that repaid. Additionally, interest income on mortgage-backed securities declined by $4,198,000 due to lower yields and lower average balance.

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:

42

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

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

	Comparison of Three Months Ended 12/31/16 and 12/31/15
	Volume			Rate			Total
	(In thousands)
Interest income:
Loans receivable	$	8,847		$	(6,875	)	$	1,972
Mortgaged-backed securities	(1,890		)	(2,308		)	(4,198		)
Investments (1)	(769		)	635			(134		)
All interest-earning assets	6,188			(8,548		)	(2,360		)
Interest expense:
Customer accounts	(9		)	309			300
FHLB advances and other borrowings	1,877			(820		)	1,057
All interest-bearing liabilities	1,868			(511		)	1,357
Change in net interest income	$	4,320		$	(8,037	)	$	(3,717	)

___________________ 

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

Provision (Release) for Loan Losses: The Company recorded no provision for loan losses during the three months endedDecember 31, 2016 or December 31, 2015. Reserving for new loan originations as the loan portfolio grows has been largely offset by recoveries of previously charged-off loans. Recoveries, net of charge-offs, totaled $5,296,000 for the three months endedDecember 31, 2016, compared with $1,072,000 of net recoveries for the same quarter one year ago.

Other Income: The three months endedDecember 31, 2016 results include total other income of $11,896,000 compared to $10,635,000 for the same quarter one year ago. The increase is primarily due to the $968,000 gain on sale of investment securities recognized during the quarter ended December 31, 2016. Deposit fee income was $5,185,000 for the three months endedDecember 31, 2016 compared to $5,917,000 for the three months endedDecember 31, 2015.

Other Expense: The three months endedDecember 31, 2016 results include total other expense of $54,341,000 compared to $64,509,000 for the same quarter one year ago, a $10,168,000 or 15.8% decrease. The decrease is primarily due to approximately $6,600,000 of expenses during the quarter ended December 31, 2015 that related to the Company's November 2015 conversion of its core systems. Additionally, product delivery costs declined by $2,162,000 from the prior year and this was mostly attributable to benefits from the new system and related processes. The number of staff, including part-time employees on a full-time equivalent basis, was 1,813 and 1,825 at December 31, 2016 and 2015, respectively. Total other expense for the quarters ended December 31, 2016 and 2015 equaled 1.46% and 1.77%, respectively, of average assets.

Gain (Loss) on Real Estate Owned: Gains recognized on real estate owned was a net gain of $398,000 for the three months endedDecember 31, 2016, compared to $1,420,000 for the same period one year ago.

Income Tax Expense: Income tax expense totaled $19,859,000 for the quarter ended December 31, 2016, as compared to $19,317,000 for the same period one year ago. The effective tax rate for the three months endedDecember 31, 2016 was 32.50% while for the period ended December 31, 2015 it was 35.50%. The decline in the effective tax rate from the prior period is primarily due to increased investments in bank owned life insurance, low income housing tax credit partnerships and tax exempt loans.

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, 2016. 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 2016 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

43

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

PART I – Financial Information

Item 4.        Controls and Procedures

within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management has evaluated, with the participation of the Company’s Chief Executive Officer and 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 Chief Executive Officer and 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 consolidated financial statements.

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 2016 Form 10-K for the year ended September 30, 2016. 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, 2016.

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 (2)
October 1, 2016 to October 31, 2016	609,727	$	26.86	609,727	4,429,583
November 1, 2016 to November 30, 2016	148,041	27.08		148,041	4,281,542
December 1, 2016 to December 31, 2016	—	—		—	4,281,542
Total	757,768	$	26.90	757,768	4,281,542

 ___________________

(1) The Company's 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 51,956,264 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 approved in September 2016.

(2) Does not reflect TARP warrants that were repurchased during the three months endedDecember 31, 2016 that Management also counts against the maximum number of shares that may be repurchased under the Plan. Net of such repurchased warrants, there are 4,231,553 shares remaining under the Plan for repurchase.

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 Chief Financial Officer
	32	Section 906 Certification by the Chief Executive Officer and Chief Financial Officer
	101	Financial Statements from the Company’s Form 10-Q for the three months ended December 31, 2016 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.

January 27, 2017	/S/    ROY M. WHITEHEAD
	ROY M. WHITEHEAD Chairman of the Board and Chief Executive Officer
January 27, 2017	/S/    VINCENT L. BEATTY
	VINCENT L. BEATTY Senior Vice President and Chief Financial Officer
January 27, 2017	/S/    CORY D. STEWART
	CORY D. STEWART Senior Vice President and Principal Accounting 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:	January 27, 2017	/s/ Roy M. Whitehead
		ROY M. WHITEHEAD Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CERTIFICATION

I, Vincent L. Beatty, 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:	January 27, 2017	/s/ Vincent L. Beatty
		VINCENT L. BEATTY
		Senior Vice President and 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, 2016, 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: January 27, 2017

Washington Federal, Inc.

(Company)

/s/ Roy M. Whitehead

ROY M. WHITEHEAD

Chairman of the Board and Chief Executive Officer

/s/ Vincent L. Beatty

VINCENT L. BEATTY

Senior Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Jan. 25, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2017
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		89,307,133

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
ASSETS
Cash and cash equivalents	$ 398,838	$ 450,368
Available-for-sale securities, at fair value	1,441,935	1,922,894
Held-to-maturity securities, at amortized cost	1,752,010	1,417,599
Loans receivable, net of allowance for loan losses of $118,456 and $113,494	10,136,311	9,910,920
Interest receivable	38,118	37,669
Premises and equipment, net	275,749	281,951
Real estate owned	22,637	29,027
FHLB and FRB stock	117,190	117,205
Bank owned life insurance	209,280	208,123
Intangible assets, including goodwill of $291,503	296,468	296,989
Federal and state income tax assets, net	0	16,047
Other assets	185,118	199,271
Assets	14,873,654	14,888,063
Customer accounts
Transaction deposit accounts	6,194,337	6,005,592
Time deposit accounts	4,453,238	4,595,260
Customer accounts	10,647,575	10,600,852
FHLB advances	2,080,000	2,080,000
Advance payments by borrowers for taxes and insurance	23,596	42,898
Accrued expenses and other liabilities	122,882	188,582
Liabilities	12,874,053	12,912,332
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,657,007 and 134,307,818 shares issued; 89,272,268 and 89,680,847 shares outstanding	134,657	134,308
Paid-in capital	1,655,146	1,648,388
Accumulated other comprehensive (loss) income, net of taxes	(2,832)	(11,156)
Treasury stock, at cost; 45,384,739 and 44,626,971 shares	(760,071)	(739,686)
Retained earnings	972,701	943,877
Stockholders' equity attributable to parent	1,999,601	1,975,731
Liabilities and equity	$ 14,873,654	$ 14,888,063

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 118,456	$ 113,494
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)	134,657,007	134,307,818
Common stock, shares outstanding (in shares)	89,272,268	89,680,847
Treasury stock, shares (in shares)	45,384,739	44,626,971

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
INTEREST INCOME
Loans receivable	$ 114,835,000	$ 112,863,000
Mortgage-backed securities	12,789,000	16,987,000
Investment securities and cash equivalents	5,140,000	5,274,000
Interest Income	132,764,000	135,124,000
INTEREST EXPENSE
Customer accounts	13,017,000	12,717,000
FHLB advances	16,595,000	15,538,000
Interest Expense	29,612,000	28,255,000
Net interest income	103,152,000	106,869,000
Provision (release) for loan losses	0	0
Net interest income after provision (release) for loan losses	103,152,000	106,869,000
OTHER INCOME
Gain on sale of investment securities	968,000	0
Loan fee income	1,334,000	1,517,000
Deposit fee income	5,185,000	5,917,000
Other income	4,409,000	3,201,000
Other income, total	11,896,000	10,635,000
OTHER EXPENSE
Compensation and benefits	26,994,000	29,699,000
Occupancy	8,450,000	8,592,000
FDIC insurance premiums	2,839,000	2,589,000
Product delivery	3,361,000	5,523,000
Information technology	6,451,000	8,710,000
Other expense	6,246,000	9,396,000
Other expense, total	54,341,000	64,509,000
Gain on real estate owned, net	398,000	1,420,000
Income before income taxes	61,105,000	54,415,000
Income tax expense	19,859,000	19,317,000
NET INCOME	$ 41,246,000	$ 35,098,000
PER SHARE DATA
Basic earnings (in dollars per share)	$ 0.46	$ 0.38
Diluted earnings (in dollars per share)	0.46	0.38
Dividends paid on common stock (in dollars per share)	$ 0.14	$ 0.13
Basic weighted average number of shares outstanding (in shares)	89,310,958	92,986,358
Diluted weighted average number of shares outstanding, including dilutive stock options (in shares)	89,731,024	93,577,837

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 41,246	$ 35,098
Other comprehensive income (loss) net of tax:
Net unrealized gain (loss) on available-for-sale investment securities	(17,079)	(10,360)
Reclassification adjustment of net gain (loss) from sale of available-for-sale securities included in net income	968	0
Related tax benefit (expense)	5,921	3,807
Other comprehensive income (loss) for available for sale securities, net of tax	(10,190)	(6,553)
Net unrealized gain (loss) on long-term borrowing hedge	29,271	2,795
Related tax benefit (expense)	(10,757)	(1,027)
Other comprehensive income (loss) on long term borrowing hedge, net of tax	18,514	1,768
Other comprehensive income (loss) net of tax	8,324	(4,785)
Comprehensive income	$ 49,570	$ 30,313

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, 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)
Balance, beginning of period at Sep. 30, 2016	1,975,731	134,308	1,648,388	943,877	(11,156)	(739,686)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	41,246			41,246
Other comprehensive income (loss)	8,324				8,324
Dividends on common stock	(12,422)			(12,422)
Proceeds from exercise of common stock options	4,362	190	4,172
Restricted stock expense	2,745	109	2,636
Exercise of stock warrants	0	50	(50)
Treasury stock acquired	(20,385)					(20,385)
Balance, end of period at Dec. 31, 2016	$ 1,999,601	$ 134,657	$ 1,655,146	$ 972,701	$ (2,832)	$ (760,071)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 41,246,000	$ 35,098,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion, net	12,087,000	2,054,000
Cash received from (paid to) FDIC under loss share	0	1,975,000
Stock based compensation	2,745,000	1,180,000
Loss (gain) on sale of investment securities	(968,000)	0
Decrease (increase) in accrued interest receivable	(449,000)	2,170,000
Decrease (increase) in federal and state income tax receivable	16,047,000	16,577,000
Decrease (increase) in cash surrender value of bank owned life insurance	(1,739,000)	(785,000)
Gain on settlement of bank owned life insurance	(649,000)	0
Net realized (gain) loss on sales of premises, equipment, and real estate owned	657,000	(2,310,000)
Decrease (increase) in other assets	14,153,000	(3,754,000)
Increase (decrease) in accrued expenses and other liabilities	(41,265,000)	15,870,000
Net cash provided by (used in) operating activities	41,865,000	68,075,000
CASH FLOWS FROM INVESTING ACTIVITIES
Origination of loans and principal repayments, net	(227,028,000)	(179,768,000)
Loans purchased	0	(51,646,000)
FHLB & FRB stock purchased	(9,000)	(6,809,000)
FHLB & FRB stock redemption	24,000	2,901,000
Available-for-sale securities purchased	0	(50,741,000)
Principal payments and maturities of available-for-sale securities	112,469,000	114,764,000
Proceeds on available-for-sale securities sold	350,890,000	0
Held-to-maturity securities purchased	(415,729,000)	0
Principal payments and maturities of held-to-maturity securities	78,778,000	43,569,000
Proceeds from sales of real estate owned	6,457,000	26,664,000
Proceeds from settlement of bank owned life insurance	1,231,000	0
Purchase of bank owned life insurance	0	0
Decrease (increase) in intangible assets	0	0
Proceeds from sales of premises and equipment	1,722,000	0
Premises and equipment purchased and REO improvements	(1,252,000)	(17,183,000)
Net cash provided by (used in) investing activities	(92,447,000)	(118,249,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in customer accounts	46,799,000	19,492,000
Proceeds from borrowings	0	204,000,000
Repayments of borrowings	0	(106,000,000)
Proceeds from exercise of common stock options	4,362,000	5,042,000
Dividends paid on common stock	(12,422,000)	(12,036,000)
Treasury stock purchased	(20,385,000)	(9,938,000)
Increase (decrease) in advance payments by borrowers for taxes and insurance	(19,302,000)	(28,476,000)
Net cash provided by (used in) financing activities	(948,000)	72,084,000
Increase (decrease) in cash and cash equivalents	(51,530,000)	21,910,000
Cash and cash equivalents at beginning of period	450,368,000	284,049,000
Cash and cash equivalents at end of period	398,838,000	305,959,000
Non-cash investing and financing activities
Real estate acquired through foreclosure	1,589,000	5,308,000
Stock issued upon exercise of warrants	1,523,000	0
Cash paid during the period for
Interest	28,737,000	29,195,000
Income taxes	$ 0	$ 8,000

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Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2016

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 holding 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 information included in this Form 10-Q should be read in conjunction with the financial statements and related notes in the Company's 2016 Annual Report on Form 10-K (“2016 Annual Financial Statements”). 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 2016 Annual Financial Statements. There have not been any material changes in our significant accounting policies compared to those contained in our 2016 Annual Financial Statements for the year ended September 30, 2016.

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 $1,448,878,000 and $1,278,829,000 at December 31, 2016 and September 30, 2016, 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, 2016

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address eight specific cash flow issues with the objective of reducing diversity in practice. The specific issues identified include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to- maturity debt securities, trade and other receivables, net investments in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The ASU eliminates the current framework of recognizing probable incurred losses and instead requires an entity to use its current estimate of all expected credit losses over the contractual life. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets.

For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, an allowance for expected credit losses is recorded as an adjustment to the cost basis of the asset. Subsequent changes in estimated cash flows would be recorded as an adjustment to the allowance and through the statement of income.

Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security's cost basis.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities and PCD assets, the guidance will be applied prospectively. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the guidance, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however, early adoption is permitted. The Company elected to early adopt the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. The amendments require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The guidance also simplifies the accounting for sale and leaseback transactions. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which will 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 adopted the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In April 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 is 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 adopted the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). 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.

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Dividends and Share Repurchases

3 Months Ended

Dec. 31, 2016

Dividends [Abstract]

Dividends and Share Repurchases

Dividends and Share Repurchases

On November 18, 2016, the Company paid a dividend on common stock of $0.14 per share. This dividend was the 135th consecutive quarterly cash dividend paid on common stock. Dividends per share were $0.14 and $0.13 for the quarters ended December 31, 2016 and 2015, respectively. On January 18, 2017, the Company declared a regular dividend on common stock of $0.15 per share, which represented its 136th consecutive quarterly cash dividend, as well as a special cash dividend on common stock of $0.25 per share. These dividends will be paid on February 10, 2017 to common shareholders of record on February 1, 2017.

For the three months endedDecember 31, 2016, the Company repurchased 757,768 shares at an average price of $26.90. Additionally, 49,989 shares of common stock were issued during the three months endedDecember 31, 2016 to investors that exercised warrants previously issued as part of the 2008 Troubled Asset Relief Program ("TARP"). As of December 31, 2016, 689,498 such warrants remain outstanding. Net of warrant repurchase and exercise activity, there are 4,231,553 remaining shares authorized to be repurchased under the current Board approved share repurchase program.

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Loans Receivable

3 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Loans Receivable

Loans Receivable

The following table is a summary of loans receivable.

	December 31, 2016				September 30, 2016
	(In thousands)				(In thousands)
Gross loans by category
Single-family residential	$	5,624,263	49.6	%	$	5,658,830	51.7	%
Construction	1,265,747		11.2		1,110,411		10.1
Construction - custom	494,447		4.4		473,069		4.3
Land - acquisition & development	119,085		1.1		118,497		1.1
Land - consumer lot loans	101,104		0.9		104,567		1.0
Multi-family	1,217,594		10.7		1,124,290		10.3
Commercial real estate	1,207,573		10.7		1,093,639		10.0
Commercial & industrial	1,025,821		9.1		978,589		8.9
HELOC	148,452		1.3		149,716		1.4
Consumer	124,547		1.1		139,000		1.3
Total gross loans	11,328,633		100.0	%	10,950,608		100.0	%
Less:
Allowance for loan losses	118,456				113,494
Loans in process	1,027,168				879,484
Net deferred fees, costs and discounts	46,698				46,710
Total loan contra accounts	1,192,322				1,039,688
Net loans	$	10,136,311			$	9,910,920

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

	December 31, 2016				September 30, 2016
	(In thousands)
Non-accrual loans:
Single-family residential	$	38,568	63.5	%	$	33,148	78.2	%
Construction	—		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	603		1.0		58		0.1
Land - consumer lot loans	969		1.6		510		1.2
Multi-family	1,160		1.9		776		1.8
Commercial real estate	9,660		15.9		7,100		16.7
Commercial & industrial	9,230		15.2		583		1.4
HELOC	480		0.8		239		0.6
Consumer	45		0.1		—		—
Total non-accrual loans	$	60,715	100	%	$	42,414	100	%

The Company recognized interest income on non-accrual loans of approximately $753,000 in the three months endedDecember 31, 2016. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $547,000 for the three months endedDecember 31, 2016. Interest income actually recognized during the three months endedDecember 31, 2016 is higher because of loans that were brought current or paid off.

For acquired loans included in the non-accrual loan table above, interest income is still recognized on such loans through accretion of the difference between the carrying amount of the loans and the expected cash flows.

The following tables provide details regarding delinquent loans.

December 31, 2016	Loans Receivable		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans In Process		Current		30		60		90		Total
	(In thousands)
Single-family residential	$	5,623,668	$	5,563,465	$	16,670	$	6,808	$	36,725	$	60,203	1.07	%
Construction	513,046		512,705		341		—		—		341		0.07
Construction - custom	236,668		236,511		49		108		—		157		0.07
Land - acquisition & development	103,148		101,886		728		—		534		1,262		1.22
Land - consumer lot loans	101,045		99,969		235		43		798		1,076		1.06
Multi-family	1,217,594		1,215,726		853		616		399		1,868		0.15
Commercial real estate	1,175,475		1,167,710		1,771		267		5,727		7,765		0.66
Commercial & industrial	1,057,826		1,056,718		858		250		—		1,108		0.10
HELOC	148,448		147,074		893		—		481		1,374		0.93
Consumer	124,547		123,484		662		231		170		1,063		0.85
Total Loans	$	10,301,465	$	10,225,248	$	23,060	$	8,323	$	44,834	$	76,217	0.74	%
Delinquency %			99.26%		0.22%		0.08%		0.44%		0.74%

September 30, 2016	Loans Receivable		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans In Process		Current		30		60		90		Total
	(In thousands)
Single-family residential	$	5,658,122	$	5,601,457	$	20,916	$	5,271	$	30,478	$	56,665	1.00	%
Construction	498,450		498,450		—		—		—		—		—
Construction - custom	229,957		229,419		538		—		—		538		0.23
Land - acquisition & development	94,928		94,928		—		—		—		—		—
Land - consumer lot loans	104,534		102,472		816		687		559		2,062		1.97
Multi-family	1,124,290		1,122,307		1,190		399		394		1,983		0.18
Commercial real estate	1,093,549		1,088,680		69		325		4,475		4,869		0.45
Commercial & industrial	978,582		978,540		—		42		—		42		—
HELOC	149,713		148,513		763		164		273		1,200		0.80
Consumer	138,999		138,078		715		126		80		921		0.66
Total Loans	$	10,071,124	$	10,002,844	$	25,007	$	7,014	$	36,259	$	68,280	0.68	%
Delinquency %			99.32%		0.25%		0.07%		0.36%		0.68%

The percentage of total delinquent loans increased from 0.68% as of September 30, 2016 to 0.74% as of December 31, 2016 and there are no loans greater than 90 days delinquent and still accruing interest as of either date.

The following tables provide information related to loans that were restructured in a troubled debt restructuring ("TDR") during the periods presented:

	Three Months Ended December 31,
	2016					2015
		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	12	$	2,134	$	2,134	3	$	729	$	729
Land - consumer lot loans	1	204		204		—	—		—
Commercial real estate	—	—		—		5	965		965
HELOC	1	228		228		—	—		—
	14	$	2,566	$	2,566	8	$	1,694	$	1,694

The following tables provide 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.

	Three Months Ended December 31,
	2016			2015
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
TDRs That Subsequently Defaulted:
Single-family residential	6	$	1,993	5	$	668
Land - consumer lot loans	—	—		1	148
Commercial real estate	2	267		—	—
	8	$	2,260	6	$	816

Most loans restructured in 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, 2016, 94.2% of the Company's $249,950,000 in TDRs were classified as performing. Each request for modification is individually evaluated for merit and likelihood of success. The concession granted in a loan modification is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twenty four 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, 2016, single-family residential loans comprised 87.2% 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 (including covered loans).

	Three Months Ended December 31, 2016											Twelve Months Ended September 30, 2016
	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	$	58,842		$	91,761		$	4,222		$	131,132	$	72,705		$	111,300		$	7,204		$	187,080
Additions	—			—			—			—		—			—			—			—
Net reclassification from non-accretable	—			—			—			—		4,867			—			—			—
Accretion	(3,233		)	3,233			(198		)	198		(18,730		)	18,730			(2,982		)	2,982
Transfers to REO	—			—			—			—		—			(175		)	—			—
Payments received, net	—			(16,852		)	—			5,211		—			(38,094		)	—			(58,930		)
Ending Balance	$	55,609		$	78,142		$	4,024		$	136,541	$	58,842		$	91,761		$	4,222		$	131,132

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.

The remaining outstanding balance of covered loans was $26,691,000 at December 31, 2016 compared to $28,974,000 as of September 30, 2016. The FDIC loss share coverage for single family residential loans related to the Horizon Bank and Home Valley Bank acquisitions will continue for another four years.

The following table shows activity for the FDIC indemnification asset:

	Three Months Ended December 31, 2016			Twelve Months Ended September 30, 2016
	(In thousands)
Balance at beginning of period	$	12,769		$	16,275
Payments made (received)	242			(1,730		)
Amortization	(387		)	(2,012		)
Accretion	50			236
Balance at end of period	$	12,674		$	12,769

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Allowance for Losses on Loans

3 Months Ended

Dec. 31, 2016

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, 2016	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	37,796	$	(115	)	$	151	$	374		$	38,206
Construction	19,838		—			—		2,096			21,934
Construction - custom	1,080		—			—		30			1,110
Land - acquisition & development	6,023		(20		)	4,018		(3,356		)	6,665
Land - consumer lot loans	2,535		(17		)	70		(87		)	2,501
Multi-family	6,925		—			—		704			7,629
Commercial real estate	8,588		(11		)	356		1,235			10,168
Commercial & industrial	28,008		(58		)	725		(939		)	27,736
HELOC	813		(37		)	1		55			832
Consumer	1,888		(146		)	379		(446		)	1,675
	$	113,494	$	(404	)	$	5,700	$	(334	)	$	118,456

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

The Company recorded no provision for loan losses during the three months endedDecember 31, 2016 or December 31, 2015. Reserving for new loan originations as the loan portfolio grows has been largely offset by recoveries of previously charged-off loans. Recoveries, net of charge-offs, totaled $5,296,000 for the three months endedDecember 31, 2016, compared with $1,072,000 of net recoveries for the same quarter one year ago.

Non-performing assets were $83,352,000, or 0.56%, of total assets at December 31, 2016, compared to $71,441,000, or 0.48%, of total assets at September 30, 2016. Non-accrual loans were $60,715,000 at December 31, 2016, compared to $42,414,000 at September 30, 2016. Delinquencies, as a percent of total loans, were 0.74% at December 31, 2016, compared to 0.68% at September 30, 2016.

The reserve for unfunded commitments was $4,900,000 as of December 31, 2016, which is an increase from $3,235,000 at September 30, 2016.

Management believes the allowance for loan losses plus the reserve for unfunded commitments, totaling $123,356,000, or 1.09% of gross loans, is sufficient to absorb estimated inherent losses.

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

December 31, 2016	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	$	38,092	$	5,585,461	0.7	%	$	114	$	30,165	0.4	%
Construction	21,934		513,046		4.3		—		—		—
Construction - custom	1,110		236,668		0.5		—		—		—
Land - acquisition & development	6,621		101,598		6.5		44		886		5.0
Land - consumer lot loans	2,501		90,947		2.7		—		1,384		—
Multi-family	7,617		1,215,870		0.6		12		1,496		0.8
Commercial real estate	9,971		1,144,389		0.9		197		15,473		1.3
Commercial & industrial	27,736		1,021,372		2.7		—		1,517		—
HELOC	832		138,094		0.6		—		805		—
Consumer	1,675		124,255		1.3		—		—		—
	$	118,089	$	10,171,700	1.2	%	$	367	$	51,726	0.7	%

(1) Excludes acquired impaired loans and covered loans.

September 30, 2016	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	$	37,536	$	5,585,912	0.7	%	$	260	$	19,629	1.3	%
Construction	19,838		498,450		4.0		—		—		—
Construction - custom	1,080		229,298		0.5		—		330		—
Land - acquisition & development	6,022		90,850		6.6		2		850		0.2
Land - consumer lot loans	2,535		92,828		2.7		—		558		—
Multi-family	6,911		1,091,974		0.6		13		1,505		0.9
Commercial real estate	8,497		957,380		0.9		91		11,157		0.8
Commercial & industrial	28,008		966,930		2.9		—		—		—
HELOC	813		133,203		0.6		—		239		—
Consumer	1,888		137,315		1.4		—		3		—
	$	113,128	$	9,784,140	1.2	%	$	366	$	34,271	1.1	%

(1) Excludes acquired impaired loans and covered loans.

As of December 31, 2016, $118,089,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $367,000 was specific reserves on loans deemed to be individually impaired. As of September 30, 2016, $113,128,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $366,000 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 collection or 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, 2016	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Loan type
Single-family residential	$	5,568,663		$	—		$	55,600		$	—		$	—		$	5,624,263
Construction	1,256,396			5,876			3,475			—			—			1,265,747
Construction - custom	494,447			—			—			—			—			494,447
Land - acquisition & development	113,569			—			5,516			—			—			119,085
Land - consumer lot loans	99,703			—			1,401			—			—			101,104
Multi-family	1,211,055			3,658			2,881			—			—			1,217,594
Commercial real estate	1,163,517			6,660			37,396			—			—			1,207,573
Commercial & industrial	969,186			10,813			45,822			—			—			1,025,821
HELOC	147,495			—			957			—			—			148,452
Consumer	124,499			—			48			—			—			124,547
Total gross loans	$	11,148,530		$	27,007		$	153,096		$	—		$	—		$	11,328,633
Total grade as a % of total gross loans	98.4		%	0.2		%	1.4		%	—		%	—		%

September 30, 2016	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Loan type
Single-family residential	$	5,607,521		$	—		$	51,309		$	—		$	—		$	5,658,830
Construction	1,098,549			8,595			3,267			—			—			1,110,411
Construction - custom	473,069			—			—			—			—			473,069
Land - acquisition & development	111,225			—			7,272			—			—			118,497
Land - consumer lot loans	103,528			—			1,039			—			—			104,567
Multi-family	1,117,437			3,237			3,616			—			—			1,124,290
Commercial real estate	1,033,880			13,446			46,313			—			—			1,093,639
Commercial & industrial	930,776			7,207			40,606			—			—			978,589
HELOC	149,195			—			521			—			—			149,716
Consumer	138,917			—			83			—			—			139,000
Total gross loans	$	10,764,097		$	32,485		$	154,026		$	—		$	—		$	10,950,608
Total grade as a % of total gross loans	98.3		%	0.3		%	1.4		%	—		%	—		%

The balance of loans internally graded as 'substandard' above includes $27,835,000 as of December 31, 2016 and $35,910,000 as of September 30, 2016 of acquired loans and covered loans.

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

December 31, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,549,864	99.3	%	$	38,568	0.7	%
Construction	1,265,747		100.0		—		—
Construction - custom	494,447		100.0		—		—
Land - acquisition & development	116,567		99.5		603		0.5
Land - consumer lot loans	97,556		99.0		969		1.0
Multi-family	1,211,411		99.9		1,160		0.1
Commercial real estate	1,079,298		99.1		9,660		0.9
Commercial & industrial	971,931		99.1		9,230		0.9
HELOC	135,306		99.6		480		0.4
Consumer	123,140		100.0		45		—
	$	11,045,267	99.5	%	$	60,715	0.5	%

September 30, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,587,919	99.4	%	$	33,148	0.6	%
Construction	1,110,411		100.0		—		—
Construction - custom	473,069		100.0		—		—
Land - acquisition & development	116,097		99.9		58		0.1
Land - consumer lot loans	101,343		99.5		510		0.5
Multi-family	1,118,025		99.9		776		0.1
Commercial real estate	949,064		99.3		7,100		0.7
Commercial & industrial	946,065		99.9		583		0.1
HELOC	134,546		99.8		239		0.2
Consumer	137,450		100.0		—		—
	$	10,673,989	99.6	%	$	42,414	0.4	%

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

December 31, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	15,488	$	17,258	$	—		$	11,050
Land - acquisition & development	165		8,396		—			152
Land - consumer lot loans	713		765		—			525
Multi-family	1,160		5,096		—			968
Commercial real estate	11,407		19,829		—			11,180
Commercial & industrial	9,680		15,065		—			5,355
HELOC	767		1,028		—			471
Consumer	44		592		—			51
	39,424		68,029		—			29,752
Impaired loans with an allowance recorded:
Single-family residential	212,046		216,469		4,502			210,497
Land - acquisition & development	851		1,791		2			851
Land - consumer lot loans	9,056		10,114		41			9,002
Multi-family	1,496		1,496		12			1,501
Commercial real estate	18,246		21,497		197			17,751
Commercial & industrial	1,356		2,414		—			678
HELOC	1,200		1,218		—			1,088
Consumer	77		271		—			78
	244,328		255,270		4,754		(1)	241,446
Total impaired loans:
Single-family residential	227,534		233,727		4,502			221,547
Land - acquisition & development	1,016		10,187		2			1,003
Land - consumer lot loans	9,769		10,879		41			9,527
Multi-family	2,656		6,592		12			2,469
Commercial real estate	29,653		41,326		197			28,931
Commercial & industrial	11,036		17,479		—			6,033
HELOC	1,967		2,246		—			1,559
Consumer	121		863		—			129
	$	283,752	$	323,299	$	4,754	(1)	$	271,198

(1) Includes $367,000 of specific reserves and $4,387,000 included in the general reserves.

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	9,627	$	11,366	$	—		$	6,511
Land - acquisition & development	138		9,001		—			614
Land - consumer lot loans	499		609		—			317
Multi-family	394		3,972		—			638
Commercial real estate	11,741		21,301		—			6,260
Commercial & industrial	1,030		3,082		—			863
HELOC	209		315		—			165
Consumer	74		550		—			111
	23,712		50,196		—			15,479
Impaired loans with an allowance recorded:
Single-family residential	228,186		232,595		3,809			216,632
Land - acquisition & development	1,154		2,094		1			1,766
Land - consumer lot loans	9,630		10,678		1			9,548
Multi-family	1,505		1,505		13			1,522
Commercial real estate	19,434		22,848		91			19,311
HELOC	1,506		1,521		—			1,413
Consumer	116		306		—			100
	261,531		271,547		3,915		(1)	250,292
Total impaired loans:
Single-family residential	237,813		243,961		3,809			223,143
Land - acquisition & development	1,292		11,095		1			2,380
Land - consumer lot loans	10,129		11,287		1			9,865
Multi-family	1,899		5,477		13			2,160
Commercial real estate	31,175		44,149		91			25,571
Commercial & industrial	1,030		3,082		—			863
HELOC	1,715		1,836		—			1,578
Consumer	190		856		—			211
	$	285,243	$	321,743	$	3,915	(1)	$	265,771

(1) Includes $366,000 of specific reserves and $3,549,000 included in the general reserves.

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Fair Value Measurements

3 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

ASC 820 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 820 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. The fair value of debt securities are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under GAAP are considered a Level 2 input method. Securities that are traded on active exchanges, including the Company's equity securities, are measured using the closing price in an active market and 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, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	522	$	—	$	—	$	522
U.S. government and agency securities	—		247,268		—		247,268
Municipal bonds	—		26,459		—		26,459
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		208,025		—		208,025
Mortgage-backed securities
Agency pass-through certificates	—		906,847		—		906,847
Commercial MBS	—		52,814		—		52,814
Total available-for-sale securities	522		1,441,413		—		1,441,935
Interest rate contracts	—		2,560		—		2,560
Total financial assets	$	522	$	1,443,973	$	—	$	1,444,495
Financial Liabilities
Interest rate contracts	$	—	$	2,560	$	—	$	2,560
Commercial loan hedges	—		49		—		49
Long term borrowing hedges	—		2,076		—		2,076
Total financial liabilities	$	—	$	4,685	$	—	$	4,685

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the three months endedDecember 31, 2016.

	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,824	$	—	$	—	$	101,824
U.S. government and agency securities	—		259,351		—		259,351
Municipal bonds	—		27,670		—		27,670
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		461,138		—		461,138
Mortgage-backed securities
Agency pass-through certificates	—		993,041		—		993,041
Commercial MBS	—		79,870		—		79,870
Total available-for-sale securities	101,824		1,821,070		—		1,922,894
Interest rate contracts	—		20,895		—		20,895
Total financial assets	$	101,824	$	1,841,965	$	—	$	1,943,789
Financial Liabilities
Interest rate contracts	$	—	$	20,895	$	—	$	20,895
Commercial loan hedges	—		3,312		—		3,312
Long term borrowing hedges	—		31,347		—		31,347
Total financial liabilities	$	—	$	55,554	$	—	$	55,554

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the fiscal year ended September 30, 2016.

Measured on a Nonrecurring Basis

Impaired Loans & Real Estate Owned

Real estate owned ("REO") 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 owned 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 owned as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2016 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 real estate owned where the fair value of the property 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, 2016 and December 31, 2015, and the total gains (losses) resulting from those fair value adjustments for the three months endedDecember 31, 2016 and December 31, 2015. The estimated fair value measurements are shown gross of estimated selling costs.

	December 31, 2016								Three Months Ended December 31, 2016
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	3,353	$	3,353	$	(422	)
Real estate owned (2)	—		—		2,299		2,299		(241		)
Balance at end of period	$	—	$	—	$	5,652	$	5,652	$	(663	)

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

(2) The gains (losses) represent aggregate writedowns and charge-offs on REO.

	December 31, 2015								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 REO.

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 loans is used for measurement of non collateral-dependent loans to test for impairment.

Real estate owned - When a loan is reclassified from loan status to real estate owned 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 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

ASC 825 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, 2016				September 30, 2016
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	398,838	$	398,838	$	450,368	$	450,368
Available-for-sale securities
Equity securities	1	522		522		101,824		101,824
U.S. government and agency securities	2	247,268		247,268		259,351		259,351
Municipal bonds	2	26,459		26,459		27,670		27,670
Corporate debt securities	2	208,025		208,025		461,138		461,138
Mortgage-backed securities
Agency pass-through certificates	2	906,847		906,847		993,041		993,041
Commercial MBS	2	52,814		52,814		79,870		79,870
Total available-for-sale securities		1,441,935		1,441,935		1,922,894		1,922,894
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	2	1,752,010		1,723,092		1,417,599		1,441,556
Total held-to-maturity securities		1,752,010		1,723,092		1,417,599		1,441,556
Loans receivable	3	10,136,311		10,424,590		9,910,920		10,414,794
FDIC indemnification asset	3	12,674		12,174		12,769		12,095
FHLB and FRB stock	2	117,190		117,190		117,205		117,205
Other assets - interest rate contracts	2	2,560		2,560		20,895		20,895
Financial liabilities
Customer accounts	2	10,647,575		10,066,485		10,600,852		10,184,321
FHLB advances	2	2,080,000		2,140,150		2,080,000		2,184,671
Other liabilities - interest rate contracts	2	2,560		2,560		20,895		20,895
Other liabilities - commercial loan hedges	2	49		49		3,312		3,312
Other liabilities - long term borrowing hedges	2	2,076		2,076		31,347		31,347

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 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, 2016
	Amortized Cost		Gross Unrealized					Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	23,102	$	428	$	(27	)	$	23,503	3.55	%
1 to 5 years	35,788		354		(1,151		)	34,991		2.15
5 to 10 years	42,301		—		(955		)	41,346		1.75
Over 10 years	149,673		—		(2,245		)	147,428		1.44
Equity securities due
Within 1 year	—		—		—			—		—
1 to 5 years	500		22		—			522		1.80
Corporate debt securities due
Within 1 year	28,094		52		—			28,146		1.84
1 to 5 years	63,516		951		(50		)	64,417		2.57
5 to 10 years	69,957		—		(3,361		)	66,596		2.06
Over 10 years	50,000		—		(1,134		)	48,866		3.00
Municipal bonds due
1 to 5 years	2,322		—		(8		)	2,314		1.23
5 to 10 years	1,343		—		(18		)	1,325		2.05
Over 10 years	20,358		2,462		—			22,820		6.45
Mortgage-backed securities
Agency pass-through certificates	904,287		7,546		(4,986		)	906,847		2.65
Commercial MBS	53,097		—		(283		)	52,814		1.95
	1,444,338		11,815		(14,218		)	1,441,935		2.49
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,752,010		3,859		(32,777		)	1,723,092		3.18
	$	3,196,348	$	15,674	$	(46,995	)	$	3,165,027	2.84	%

	September 30, 2016
	Amortized Cost		Gross Unrealized						Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	21,284	$	—		$	(59	)	$	21,225	0.81	%
1 to 5 years	12,477		1,027			(11		)	13,493		7.94
5 to 10 years	48,134		—			(1,589		)	46,545		1.14
Over 10 years	182,051		27			(3,990		)	178,088		1.33
Equity Securities
Within 1 year	—		—			—			—		—
1 to 5 years	100,422		1,402			—			101,824		1.90
Corporate bonds due
Within 1 year	278,094		325			(53		)	278,366		1.33
1 to 5 years	63,481		928			(113		)	64,296		2.47
5 to 10 years	69,955		—			(2,417		)	67,538		1.96
Over 10 years	50,000		938			—			50,938		3.00
Municipal bonds due
1 to 5 years	2,315		2			—			2,317		1.23
5 to 10 years	1,335		38			—			1,373		2.05
Over 10 years	20,363		3,617			—			23,980		6.45
Mortgage-backed securities
Agency pass-through certificates	978,955		17,118			(3,032		)	993,041		2.58
Commercial MBS	80,318		—			(448		)	79,870		1.91
	1,909,184		25,422			(11,712		)	1,922,894		2.22
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,417,599		24,171			(214		)	1,441,556		3.18
	$	3,326,783	$	49,593		$	(11,926	)	$	3,364,450	2.62	%

For available-for-sale investment securities, there were sales totaling $350,890,000 during the three months endedDecember 31, 2016 and no sales during the three months endedDecember 31, 2015. There were no purchases of available-for-sale investment securities during the three months endedDecember 31, 2016 and purchases of $50,741,000 during the three months endedDecember 31, 2015. For held-to-maturity investment securities, there were purchases totaling $415,729,000 during the three months endedDecember 31, 2016 and no purchases during the three months endedDecember 31, 2015. There were no sales of held-to-maturity investment securities during either period. 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, 2016 and September 30, 2016, 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, 2016	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 debt securities	$	(1,134	)	$	48,866	$	(3,411	)	$	76,546	$	(4,545	)	$	125,412
Municipal bonds due	(26		)	3,639		—			—		(26		)	3,639
U.S. government and agency securities	(743		)	24,470		(3,634		)	212,717		(4,377		)	237,187
Agency pass-through certificates	(34,536		)	1,761,731		(3,511		)	431,533		(38,047		)	2,193,264
	$	(36,439	)	$	1,838,706	$	(10,556	)	$	720,796	$	(46,995	)	$	2,559,502

September 30, 2016	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 debt securities	$	—		$	—	$	(2,582	)	$	100,467	$	(2,582	)	$	100,467
U.S. government and agency securities	(11		)	3,167		(5,638		)	220,613		(5,649		)	223,780
Agency pass-through certificates	(1,278		)	301,030		(2,417		)	232,407		(3,695		)	533,437
	$	(1,289	)	$	304,197	$	(10,637	)	$	553,487	$	(11,926	)	$	857,684

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Derivatives and Hedging Activities

3 Months Ended

Dec. 31, 2016

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 $878,860,000 and $840,935,000 notional in interest rate swaps to hedge this exposure as of December 31, 2016 and September 30, 2016, respectively. The interest rate swaps are derivatives under FASB 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, 2016 and 2015 as the changes in value for the asset and liability side of the swaps offset each other.

The Bank has also entered into interest rate swaps to convert certain existing and future short-term borrowings to fixed rate payments. The primary purpose of these hedges 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 ASC 815, which provides for offsetting 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 existing or future short-term fixed rate borrowings over the term of the interest rate swap. The change in the fair value of the interest rate swaps is recorded in other comprehensive income. The Bank had $700,000,000 and $700,000,000 notional in interest rate swaps to hedge existing and anticipated future borrowings as of December 31, 2016 and September 30, 2016, respectively. The unrealized loss, gross of the related tax benefit, on these interest rate swaps as of December 31, 2016 was $2,076,000 and $31,347,000 as of September 30, 2016.

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 ASC 815, which provides for offsetting of the recognition of gains and losses of the interest rate swap and the hedged item. The Bank hedges this loan using an interest rate swap with a notional amount of $52,936,000 and $54,155,000 as of December 31, 2016 and September 30, 2016, respectively.

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2016 and September 30, 2016:

	Asset Derivatives						Liability Derivatives
	December 31, 2016			September 30, 2016			December 31, 2016			September 30, 2016
	Balance Sheet			Balance Sheet			Balance Sheet			Balance Sheet
	Location	Fair Value		Location	Fair Value		Location	Fair Value		Location	Fair Value
	(In thousands)
Interest rate contracts	Other assets	$	2,560	Other assets	$	20,895	Other liabilities	$	2,560	Other liabilities	$	20,895
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	49		Other liabilities	3,312
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	2,076		Other liabilities	31,347
		$	2,560		$	20,895		$	4,685		$	55,554

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

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 information included in this Form 10-Q should be read in conjunction with the financial statements and related notes in the Company's 2016 Annual Report on Form 10-K (“2016 Annual Financial Statements”). Interim results are not necessarily indicative of results for a full year.

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 August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address eight specific cash flow issues with the objective of reducing diversity in practice. The specific issues identified include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to- maturity debt securities, trade and other receivables, net investments in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The ASU eliminates the current framework of recognizing probable incurred losses and instead requires an entity to use its current estimate of all expected credit losses over the contractual life. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets.

For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, an allowance for expected credit losses is recorded as an adjustment to the cost basis of the asset. Subsequent changes in estimated cash flows would be recorded as an adjustment to the allowance and through the statement of income.

Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security's cost basis.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities and PCD assets, the guidance will be applied prospectively. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the guidance, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however, early adoption is permitted. The Company elected to early adopt the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. The amendments require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The guidance also simplifies the accounting for sale and leaseback transactions. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which will 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 adopted the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In April 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 is 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 adopted the guidance in the quarter ended December 31, 2016 and determined the provisions of the ASU did not have a material impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). 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.

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Loans Receivable (Tables)

3 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Schedule of Loans Receivable

The following table is a summary of loans receivable.

	December 31, 2016				September 30, 2016
	(In thousands)				(In thousands)
Gross loans by category
Single-family residential	$	5,624,263	49.6	%	$	5,658,830	51.7	%
Construction	1,265,747		11.2		1,110,411		10.1
Construction - custom	494,447		4.4		473,069		4.3
Land - acquisition & development	119,085		1.1		118,497		1.1
Land - consumer lot loans	101,104		0.9		104,567		1.0
Multi-family	1,217,594		10.7		1,124,290		10.3
Commercial real estate	1,207,573		10.7		1,093,639		10.0
Commercial & industrial	1,025,821		9.1		978,589		8.9
HELOC	148,452		1.3		149,716		1.4
Consumer	124,547		1.1		139,000		1.3
Total gross loans	11,328,633		100.0	%	10,950,608		100.0	%
Less:
Allowance for loan losses	118,456				113,494
Loans in process	1,027,168				879,484
Net deferred fees, costs and discounts	46,698				46,710
Total loan contra accounts	1,192,322				1,039,688
Net loans	$	10,136,311			$	9,910,920

Summary of Information Regarding Non-Accrual Loans

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

	December 31, 2016				September 30, 2016
	(In thousands)
Non-accrual loans:
Single-family residential	$	38,568	63.5	%	$	33,148	78.2	%
Construction	—		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	603		1.0		58		0.1
Land - consumer lot loans	969		1.6		510		1.2
Multi-family	1,160		1.9		776		1.8
Commercial real estate	9,660		15.9		7,100		16.7
Commercial & industrial	9,230		15.2		583		1.4
HELOC	480		0.8		239		0.6
Consumer	45		0.1		—		—
Total non-accrual loans	$	60,715	100	%	$	42,414	100	%

Analysis of Age of Loans in Past Due Status

The following tables provide details regarding delinquent loans.

December 31, 2016	Loans Receivable		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans In Process		Current		30		60		90		Total
	(In thousands)
Single-family residential	$	5,623,668	$	5,563,465	$	16,670	$	6,808	$	36,725	$	60,203	1.07	%
Construction	513,046		512,705		341		—		—		341		0.07
Construction - custom	236,668		236,511		49		108		—		157		0.07
Land - acquisition & development	103,148		101,886		728		—		534		1,262		1.22
Land - consumer lot loans	101,045		99,969		235		43		798		1,076		1.06
Multi-family	1,217,594		1,215,726		853		616		399		1,868		0.15
Commercial real estate	1,175,475		1,167,710		1,771		267		5,727		7,765		0.66
Commercial & industrial	1,057,826		1,056,718		858		250		—		1,108		0.10
HELOC	148,448		147,074		893		—		481		1,374		0.93
Consumer	124,547		123,484		662		231		170		1,063		0.85
Total Loans	$	10,301,465	$	10,225,248	$	23,060	$	8,323	$	44,834	$	76,217	0.74	%
Delinquency %			99.26%		0.22%		0.08%		0.44%		0.74%

September 30, 2016	Loans Receivable		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans In Process		Current		30		60		90		Total
	(In thousands)
Single-family residential	$	5,658,122	$	5,601,457	$	20,916	$	5,271	$	30,478	$	56,665	1.00	%
Construction	498,450		498,450		—		—		—		—		—
Construction - custom	229,957		229,419		538		—		—		538		0.23
Land - acquisition & development	94,928		94,928		—		—		—		—		—
Land - consumer lot loans	104,534		102,472		816		687		559		2,062		1.97
Multi-family	1,124,290		1,122,307		1,190		399		394		1,983		0.18
Commercial real estate	1,093,549		1,088,680		69		325		4,475		4,869		0.45
Commercial & industrial	978,582		978,540		—		42		—		42		—
HELOC	149,713		148,513		763		164		273		1,200		0.80
Consumer	138,999		138,078		715		126		80		921		0.66
Total Loans	$	10,071,124	$	10,002,844	$	25,007	$	7,014	$	36,259	$	68,280	0.68	%
Delinquency %			99.32%		0.25%		0.07%		0.36%		0.68%

Schedule of Impaired Loans, Loan Commitments and Loans Serviced

The following tables provide information related to loans that were restructured in a troubled debt restructuring ("TDR") during the periods presented:

	Three Months Ended December 31,
	2016					2015
		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	12	$	2,134	$	2,134	3	$	729	$	729
Land - consumer lot loans	1	204		204		—	—		—
Commercial real estate	—	—		—		5	965		965
HELOC	1	228		228		—	—		—
	14	$	2,566	$	2,566	8	$	1,694	$	1,694

Schedule of Loan Modifications

The following tables provide 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.

	Three Months Ended December 31,
	2016			2015
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
TDRs That Subsequently Defaulted:
Single-family residential	6	$	1,993	5	$	668
Land - consumer lot loans	—	—		1	148
Commercial real estate	2	267		—	—
	8	$	2,260	6	$	816

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 (including covered loans).

	Three Months Ended December 31, 2016											Twelve Months Ended September 30, 2016
	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	$	58,842		$	91,761		$	4,222		$	131,132	$	72,705		$	111,300		$	7,204		$	187,080
Additions	—			—			—			—		—			—			—			—
Net reclassification from non-accretable	—			—			—			—		4,867			—			—			—
Accretion	(3,233		)	3,233			(198		)	198		(18,730		)	18,730			(2,982		)	2,982
Transfers to REO	—			—			—			—		—			(175		)	—			—
Payments received, net	—			(16,852		)	—			5,211		—			(38,094		)	—			(58,930		)
Ending Balance	$	55,609		$	78,142		$	4,024		$	136,541	$	58,842		$	91,761		$	4,222		$	131,132

Schedule of Activity for FDIC Indemnification Asset

The following table shows activity for the FDIC indemnification asset:

	Three Months Ended December 31, 2016			Twelve Months Ended September 30, 2016
	(In thousands)
Balance at beginning of period	$	12,769		$	16,275
Payments made (received)	242			(1,730		)
Amortization	(387		)	(2,012		)
Accretion	50			236
Balance at end of period	$	12,674		$	12,769

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Allowance for Losses on Loans (Tables)

3 Months Ended

Dec. 31, 2016

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, 2016	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	37,796	$	(115	)	$	151	$	374		$	38,206
Construction	19,838		—			—		2,096			21,934
Construction - custom	1,080		—			—		30			1,110
Land - acquisition & development	6,023		(20		)	4,018		(3,356		)	6,665
Land - consumer lot loans	2,535		(17		)	70		(87		)	2,501
Multi-family	6,925		—			—		704			7,629
Commercial real estate	8,588		(11		)	356		1,235			10,168
Commercial & industrial	28,008		(58		)	725		(939		)	27,736
HELOC	813		(37		)	1		55			832
Consumer	1,888		(146		)	379		(446		)	1,675
	$	113,494	$	(404	)	$	5,700	$	(334	)	$	118,456

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

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, 2016	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	$	38,092	$	5,585,461	0.7	%	$	114	$	30,165	0.4	%
Construction	21,934		513,046		4.3		—		—		—
Construction - custom	1,110		236,668		0.5		—		—		—
Land - acquisition & development	6,621		101,598		6.5		44		886		5.0
Land - consumer lot loans	2,501		90,947		2.7		—		1,384		—
Multi-family	7,617		1,215,870		0.6		12		1,496		0.8
Commercial real estate	9,971		1,144,389		0.9		197		15,473		1.3
Commercial & industrial	27,736		1,021,372		2.7		—		1,517		—
HELOC	832		138,094		0.6		—		805		—
Consumer	1,675		124,255		1.3		—		—		—
	$	118,089	$	10,171,700	1.2	%	$	367	$	51,726	0.7	%

(1) Excludes acquired impaired loans and covered loans.

September 30, 2016	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	$	37,536	$	5,585,912	0.7	%	$	260	$	19,629	1.3	%
Construction	19,838		498,450		4.0		—		—		—
Construction - custom	1,080		229,298		0.5		—		330		—
Land - acquisition & development	6,022		90,850		6.6		2		850		0.2
Land - consumer lot loans	2,535		92,828		2.7		—		558		—
Multi-family	6,911		1,091,974		0.6		13		1,505		0.9
Commercial real estate	8,497		957,380		0.9		91		11,157		0.8
Commercial & industrial	28,008		966,930		2.9		—		—		—
HELOC	813		133,203		0.6		—		239		—
Consumer	1,888		137,315		1.4		—		3		—
	$	113,128	$	9,784,140	1.2	%	$	366	$	34,271	1.1	%

(1) Excludes acquired impaired loans 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, 2016	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Loan type
Single-family residential	$	5,568,663		$	—		$	55,600		$	—		$	—		$	5,624,263
Construction	1,256,396			5,876			3,475			—			—			1,265,747
Construction - custom	494,447			—			—			—			—			494,447
Land - acquisition & development	113,569			—			5,516			—			—			119,085
Land - consumer lot loans	99,703			—			1,401			—			—			101,104
Multi-family	1,211,055			3,658			2,881			—			—			1,217,594
Commercial real estate	1,163,517			6,660			37,396			—			—			1,207,573
Commercial & industrial	969,186			10,813			45,822			—			—			1,025,821
HELOC	147,495			—			957			—			—			148,452
Consumer	124,499			—			48			—			—			124,547
Total gross loans	$	11,148,530		$	27,007		$	153,096		$	—		$	—		$	11,328,633
Total grade as a % of total gross loans	98.4		%	0.2		%	1.4		%	—		%	—		%

September 30, 2016	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands)
Loan type
Single-family residential	$	5,607,521		$	—		$	51,309		$	—		$	—		$	5,658,830
Construction	1,098,549			8,595			3,267			—			—			1,110,411
Construction - custom	473,069			—			—			—			—			473,069
Land - acquisition & development	111,225			—			7,272			—			—			118,497
Land - consumer lot loans	103,528			—			1,039			—			—			104,567
Multi-family	1,117,437			3,237			3,616			—			—			1,124,290
Commercial real estate	1,033,880			13,446			46,313			—			—			1,093,639
Commercial & industrial	930,776			7,207			40,606			—			—			978,589
HELOC	149,195			—			521			—			—			149,716
Consumer	138,917			—			83			—			—			139,000
Total gross loans	$	10,764,097		$	32,485		$	154,026		$	—		$	—		$	10,950,608
Total grade as a % of total gross loans	98.3		%	0.3		%	1.4		%	—		%	—		%

The balance of loans internally graded as 'substandard' above includes $27,835,000 as of December 31, 2016 and $35,910,000 as of September 30, 2016 of acquired loans and covered loans.

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

December 31, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,549,864	99.3	%	$	38,568	0.7	%
Construction	1,265,747		100.0		—		—
Construction - custom	494,447		100.0		—		—
Land - acquisition & development	116,567		99.5		603		0.5
Land - consumer lot loans	97,556		99.0		969		1.0
Multi-family	1,211,411		99.9		1,160		0.1
Commercial real estate	1,079,298		99.1		9,660		0.9
Commercial & industrial	971,931		99.1		9,230		0.9
HELOC	135,306		99.6		480		0.4
Consumer	123,140		100.0		45		—
	$	11,045,267	99.5	%	$	60,715	0.5	%

September 30, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,587,919	99.4	%	$	33,148	0.6	%
Construction	1,110,411		100.0		—		—
Construction - custom	473,069		100.0		—		—
Land - acquisition & development	116,097		99.9		58		0.1
Land - consumer lot loans	101,343		99.5		510		0.5
Multi-family	1,118,025		99.9		776		0.1
Commercial real estate	949,064		99.3		7,100		0.7
Commercial & industrial	946,065		99.9		583		0.1
HELOC	134,546		99.8		239		0.2
Consumer	137,450		100.0		—		—
	$	10,673,989	99.6	%	$	42,414	0.4	%

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, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	15,488	$	17,258	$	—		$	11,050
Land - acquisition & development	165		8,396		—			152
Land - consumer lot loans	713		765		—			525
Multi-family	1,160		5,096		—			968
Commercial real estate	11,407		19,829		—			11,180
Commercial & industrial	9,680		15,065		—			5,355
HELOC	767		1,028		—			471
Consumer	44		592		—			51
	39,424		68,029		—			29,752
Impaired loans with an allowance recorded:
Single-family residential	212,046		216,469		4,502			210,497
Land - acquisition & development	851		1,791		2			851
Land - consumer lot loans	9,056		10,114		41			9,002
Multi-family	1,496		1,496		12			1,501
Commercial real estate	18,246		21,497		197			17,751
Commercial & industrial	1,356		2,414		—			678
HELOC	1,200		1,218		—			1,088
Consumer	77		271		—			78
	244,328		255,270		4,754		(1)	241,446
Total impaired loans:
Single-family residential	227,534		233,727		4,502			221,547
Land - acquisition & development	1,016		10,187		2			1,003
Land - consumer lot loans	9,769		10,879		41			9,527
Multi-family	2,656		6,592		12			2,469
Commercial real estate	29,653		41,326		197			28,931
Commercial & industrial	11,036		17,479		—			6,033
HELOC	1,967		2,246		—			1,559
Consumer	121		863		—			129
	$	283,752	$	323,299	$	4,754	(1)	$	271,198

(1) Includes $367,000 of specific reserves and $4,387,000 included in the general reserves.

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	9,627	$	11,366	$	—		$	6,511
Land - acquisition & development	138		9,001		—			614
Land - consumer lot loans	499		609		—			317
Multi-family	394		3,972		—			638
Commercial real estate	11,741		21,301		—			6,260
Commercial & industrial	1,030		3,082		—			863
HELOC	209		315		—			165
Consumer	74		550		—			111
	23,712		50,196		—			15,479
Impaired loans with an allowance recorded:
Single-family residential	228,186		232,595		3,809			216,632
Land - acquisition & development	1,154		2,094		1			1,766
Land - consumer lot loans	9,630		10,678		1			9,548
Multi-family	1,505		1,505		13			1,522
Commercial real estate	19,434		22,848		91			19,311
HELOC	1,506		1,521		—			1,413
Consumer	116		306		—			100
	261,531		271,547		3,915		(1)	250,292
Total impaired loans:
Single-family residential	237,813		243,961		3,809			223,143
Land - acquisition & development	1,292		11,095		1			2,380
Land - consumer lot loans	10,129		11,287		1			9,865
Multi-family	1,899		5,477		13			2,160
Commercial real estate	31,175		44,149		91			25,571
Commercial & industrial	1,030		3,082		—			863
HELOC	1,715		1,836		—			1,578
Consumer	190		856		—			211
	$	285,243	$	321,743	$	3,915	(1)	$	265,771

(1) Includes $366,000 of specific reserves and $3,549,000 included in the general reserves

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2016

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, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	522	$	—	$	—	$	522
U.S. government and agency securities	—		247,268		—		247,268
Municipal bonds	—		26,459		—		26,459
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		208,025		—		208,025
Mortgage-backed securities
Agency pass-through certificates	—		906,847		—		906,847
Commercial MBS	—		52,814		—		52,814
Total available-for-sale securities	522		1,441,413		—		1,441,935
Interest rate contracts	—		2,560		—		2,560
Total financial assets	$	522	$	1,443,973	$	—	$	1,444,495
Financial Liabilities
Interest rate contracts	$	—	$	2,560	$	—	$	2,560
Commercial loan hedges	—		49		—		49
Long term borrowing hedges	—		2,076		—		2,076
Total financial liabilities	$	—	$	4,685	$	—	$	4,685

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the three months endedDecember 31, 2016.

	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Financial Assets
Available-for-sale securities:
Equity securities	$	101,824	$	—	$	—	$	101,824
U.S. government and agency securities	—		259,351		—		259,351
Municipal bonds	—		27,670		—		27,670
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		461,138		—		461,138
Mortgage-backed securities
Agency pass-through certificates	—		993,041		—		993,041
Commercial MBS	—		79,870		—		79,870
Total available-for-sale securities	101,824		1,821,070		—		1,922,894
Interest rate contracts	—		20,895		—		20,895
Total financial assets	$	101,824	$	1,841,965	$	—	$	1,943,789
Financial Liabilities
Interest rate contracts	$	—	$	20,895	$	—	$	20,895
Commercial loan hedges	—		3,312		—		3,312
Long term borrowing hedges	—		31,347		—		31,347
Total financial liabilities	$	—	$	55,554	$	—	$	55,554

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, 2016 and December 31, 2015, and the total gains (losses) resulting from those fair value adjustments for the three months endedDecember 31, 2016 and December 31, 2015. The estimated fair value measurements are shown gross of estimated selling costs.

	December 31, 2016								Three Months Ended December 31, 2016
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	3,353	$	3,353	$	(422	)
Real estate owned (2)	—		—		2,299		2,299		(241		)
Balance at end of period	$	—	$	—	$	5,652	$	5,652	$	(663	)

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

(2) The gains (losses) represent aggregate writedowns and charge-offs on REO.

	December 31, 2015								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 REO.

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, 2016				September 30, 2016
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	398,838	$	398,838	$	450,368	$	450,368
Available-for-sale securities
Equity securities	1	522		522		101,824		101,824
U.S. government and agency securities	2	247,268		247,268		259,351		259,351
Municipal bonds	2	26,459		26,459		27,670		27,670
Corporate debt securities	2	208,025		208,025		461,138		461,138
Mortgage-backed securities
Agency pass-through certificates	2	906,847		906,847		993,041		993,041
Commercial MBS	2	52,814		52,814		79,870		79,870
Total available-for-sale securities		1,441,935		1,441,935		1,922,894		1,922,894
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	2	1,752,010		1,723,092		1,417,599		1,441,556
Total held-to-maturity securities		1,752,010		1,723,092		1,417,599		1,441,556
Loans receivable	3	10,136,311		10,424,590		9,910,920		10,414,794
FDIC indemnification asset	3	12,674		12,174		12,769		12,095
FHLB and FRB stock	2	117,190		117,190		117,205		117,205
Other assets - interest rate contracts	2	2,560		2,560		20,895		20,895
Financial liabilities
Customer accounts	2	10,647,575		10,066,485		10,600,852		10,184,321
FHLB advances	2	2,080,000		2,140,150		2,080,000		2,184,671
Other liabilities - interest rate contracts	2	2,560		2,560		20,895		20,895
Other liabilities - commercial loan hedges	2	49		49		3,312		3,312
Other liabilities - long term borrowing hedges	2	2,076		2,076		31,347		31,347

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2016 and September 30, 2016:

	Asset Derivatives						Liability Derivatives
	December 31, 2016			September 30, 2016			December 31, 2016			September 30, 2016
	Balance Sheet			Balance Sheet			Balance Sheet			Balance Sheet
	Location	Fair Value		Location	Fair Value		Location	Fair Value		Location	Fair Value
	(In thousands)
Interest rate contracts	Other assets	$	2,560	Other assets	$	20,895	Other liabilities	$	2,560	Other liabilities	$	20,895
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	49		Other liabilities	3,312
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	2,076		Other liabilities	31,347
		$	2,560		$	20,895		$	4,685		$	55,554

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, 2016
	Amortized Cost		Gross Unrealized					Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	23,102	$	428	$	(27	)	$	23,503	3.55	%
1 to 5 years	35,788		354		(1,151		)	34,991		2.15
5 to 10 years	42,301		—		(955		)	41,346		1.75
Over 10 years	149,673		—		(2,245		)	147,428		1.44
Equity securities due
Within 1 year	—		—		—			—		—
1 to 5 years	500		22		—			522		1.80
Corporate debt securities due
Within 1 year	28,094		52		—			28,146		1.84
1 to 5 years	63,516		951		(50		)	64,417		2.57
5 to 10 years	69,957		—		(3,361		)	66,596		2.06
Over 10 years	50,000		—		(1,134		)	48,866		3.00
Municipal bonds due
1 to 5 years	2,322		—		(8		)	2,314		1.23
5 to 10 years	1,343		—		(18		)	1,325		2.05
Over 10 years	20,358		2,462		—			22,820		6.45
Mortgage-backed securities
Agency pass-through certificates	904,287		7,546		(4,986		)	906,847		2.65
Commercial MBS	53,097		—		(283		)	52,814		1.95
	1,444,338		11,815		(14,218		)	1,441,935		2.49
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,752,010		3,859		(32,777		)	1,723,092		3.18
	$	3,196,348	$	15,674	$	(46,995	)	$	3,165,027	2.84	%

	September 30, 2016
	Amortized Cost		Gross Unrealized						Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	21,284	$	—		$	(59	)	$	21,225	0.81	%
1 to 5 years	12,477		1,027			(11		)	13,493		7.94
5 to 10 years	48,134		—			(1,589		)	46,545		1.14
Over 10 years	182,051		27			(3,990		)	178,088		1.33
Equity Securities
Within 1 year	—		—			—			—		—
1 to 5 years	100,422		1,402			—			101,824		1.90
Corporate bonds due
Within 1 year	278,094		325			(53		)	278,366		1.33
1 to 5 years	63,481		928			(113		)	64,296		2.47
5 to 10 years	69,955		—			(2,417		)	67,538		1.96
Over 10 years	50,000		938			—			50,938		3.00
Municipal bonds due
1 to 5 years	2,315		2			—			2,317		1.23
5 to 10 years	1,335		38			—			1,373		2.05
Over 10 years	20,363		3,617			—			23,980		6.45
Mortgage-backed securities
Agency pass-through certificates	978,955		17,118			(3,032		)	993,041		2.58
Commercial MBS	80,318		—			(448		)	79,870		1.91
	1,909,184		25,422			(11,712		)	1,922,894		2.22
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,417,599		24,171			(214		)	1,441,556		3.18
	$	3,326,783	$	49,593		$	(11,926	)	$	3,364,450	2.62	%

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, 2016 and September 30, 2016, 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, 2016	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 debt securities	$	(1,134	)	$	48,866	$	(3,411	)	$	76,546	$	(4,545	)	$	125,412
Municipal bonds due	(26		)	3,639		—			—		(26		)	3,639
U.S. government and agency securities	(743		)	24,470		(3,634		)	212,717		(4,377		)	237,187
Agency pass-through certificates	(34,536		)	1,761,731		(3,511		)	431,533		(38,047		)	2,193,264
	$	(36,439	)	$	1,838,706	$	(10,556	)	$	720,796	$	(46,995	)	$	2,559,502

September 30, 2016	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 debt securities	$	—		$	—	$	(2,582	)	$	100,467	$	(2,582	)	$	100,467
U.S. government and agency securities	(11		)	3,167		(5,638		)	220,613		(5,649		)	223,780
Agency pass-through certificates	(1,278		)	301,030		(2,417		)	232,407		(3,695		)	533,437
	$	(1,289	)	$	304,197	$	(10,637	)	$	553,487	$	(11,926	)	$	857,684

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Dec. 31, 2016

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, 2016				September 30, 2016
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	398,838	$	398,838	$	450,368	$	450,368
Available-for-sale securities
Equity securities	1	522		522		101,824		101,824
U.S. government and agency securities	2	247,268		247,268		259,351		259,351
Municipal bonds	2	26,459		26,459		27,670		27,670
Corporate debt securities	2	208,025		208,025		461,138		461,138
Mortgage-backed securities
Agency pass-through certificates	2	906,847		906,847		993,041		993,041
Commercial MBS	2	52,814		52,814		79,870		79,870
Total available-for-sale securities		1,441,935		1,441,935		1,922,894		1,922,894
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	2	1,752,010		1,723,092		1,417,599		1,441,556
Total held-to-maturity securities		1,752,010		1,723,092		1,417,599		1,441,556
Loans receivable	3	10,136,311		10,424,590		9,910,920		10,414,794
FDIC indemnification asset	3	12,674		12,174		12,769		12,095
FHLB and FRB stock	2	117,190		117,190		117,205		117,205
Other assets - interest rate contracts	2	2,560		2,560		20,895		20,895
Financial liabilities
Customer accounts	2	10,647,575		10,066,485		10,600,852		10,184,321
FHLB advances	2	2,080,000		2,140,150		2,080,000		2,184,671
Other liabilities - interest rate contracts	2	2,560		2,560		20,895		20,895
Other liabilities - commercial loan hedges	2	49		49		3,312		3,312
Other liabilities - long term borrowing hedges	2	2,076		2,076		31,347		31,347

The following table presents the fair value and balance sheet classification of derivatives at December 31, 2016 and September 30, 2016:

	Asset Derivatives						Liability Derivatives
	December 31, 2016			September 30, 2016			December 31, 2016			September 30, 2016
	Balance Sheet			Balance Sheet			Balance Sheet			Balance Sheet
	Location	Fair Value		Location	Fair Value		Location	Fair Value		Location	Fair Value
	(In thousands)
Interest rate contracts	Other assets	$	2,560	Other assets	$	20,895	Other liabilities	$	2,560	Other liabilities	$	20,895
Commercial loan hedge	Other assets	—		Other assets	—		Other liabilities	49		Other liabilities	3,312
Long term borrowing hedge	Other assets	—		Other assets	—		Other liabilities	2,076		Other liabilities	31,347
		$	2,560		$	20,895		$	4,685		$	55,554

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans in process	$ 1,027,168	$ 879,484
Loans and Leases Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans in process	$ 1,448,878	$ 1,278,829

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Dividends and Share Repurchases (Details) - $ / shares			3 Months Ended
	Jan. 18, 2017	Nov. 18, 2016	Dec. 31, 2016	Dec. 31, 2015
Dividends Payable [Line Items]
Cash dividends per share (in dollars per share)		$ 0.14	$ 0.14	$ 0.13
Stock repurchased (in shares)			757,768
Average cost per share (in dollars per share)			$ 26.90
Warrants outstanding (in shares)			689,498
Remaining shares authorized to be repurchased (in shares)			4,231,553
Subsequent Event
Dividends Payable [Line Items]
Dividends declared (in dollars per share)	$ 0.15
Special dividends declared (in dollars per share)	$ 0.25
2008 Troubled Asset Relief Program
Dividends Payable [Line Items]
Stock issued during period (in shares)			49,989

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Loans Receivable - Schedule of Accounts, Notes, Loans, and Financing Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 11,328,633	$ 10,950,608
Ratio of type of loan to total loans receivable	100.00%	100.00%
Allowance for loan losses	$ 118,456	$ 113,494	$ 107,901	$ 106,829
Loans in process	1,027,168	879,484
Net deferred fees, costs and discounts	46,698	46,710
Total loan contra accounts	1,192,322	1,039,688
Net loans	10,136,311	9,910,920
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 5,624,263	$ 5,658,830
Ratio of type of loan to total loans receivable	49.60%	51.70%
Allowance for loan losses	$ 38,206	$ 37,796	47,756	47,347
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,265,747	$ 1,110,411
Ratio of type of loan to total loans receivable	11.20%	10.10%
Allowance for loan losses	$ 21,934	$ 19,838	7,014	6,680
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 494,447	$ 473,069
Ratio of type of loan to total loans receivable	4.40%	4.30%
Allowance for loan losses	$ 1,110	$ 1,080	1,062	990
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 119,085	$ 118,497
Ratio of type of loan to total loans receivable	1.10%	1.10%
Allowance for loan losses	$ 6,665	$ 6,023	6,778	5,781
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 101,104	$ 104,567
Ratio of type of loan to total loans receivable	0.90%	1.00%
Allowance for loan losses	$ 2,501	$ 2,535	3,001	2,946
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,217,594	$ 1,124,290
Ratio of type of loan to total loans receivable	10.70%	10.30%
Allowance for loan losses	$ 7,629	$ 6,925	5,047	5,304
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,207,573	$ 1,093,639
Ratio of type of loan to total loans receivable	10.70%	10.00%
Allowance for loan losses	$ 10,168	$ 8,588	10,344	8,960
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,025,821	$ 978,589
Ratio of type of loan to total loans receivable	9.10%	8.90%
Allowance for loan losses	$ 27,736	$ 28,008	24,096	24,980
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 148,452	$ 149,716
Ratio of type of loan to total loans receivable	1.30%	1.40%
Allowance for loan losses	$ 832	$ 813	820	902
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 124,547	$ 139,000
Ratio of type of loan to total loans receivable	1.10%	1.30%
Allowance for loan losses	$ 1,675	$ 1,888	$ 1,983	$ 2,939

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Loans Receivable - Loans on Non-accrual Status (Details) - Non-Acquired loans - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest		$ 42,414
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	$ 38,568	$ 33,148
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	63.50%	78.20%
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 0	$ 0
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.00%	0.00%
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 0	$ 0
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.00%	0.00%
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 603	$ 58
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	1.00%	0.10%
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 969	$ 510
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	1.60%	1.20%
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 1,160	$ 776
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	1.90%	1.80%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 9,660	$ 7,100
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	15.90%	16.70%
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 9,230	$ 583
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	15.20%	1.40%
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 480	$ 239
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.80%	0.60%
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual of interest	$ 45	$ 0
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.10%	0.00%

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Loans Receivable - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual interest income recognized	$ 753
Impaired, interest lost on nonaccrual loans	$ 547
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.74%		0.68%
Percent of TDRs classified as performing	94.20%
Troubled debt restructuring, amount	$ 2,566	$ 1,694
Basis point reduction, minimum	1.00%
Basis point reduction, maximum	2.00%
Single family residential loans as percentage of restructured loans	87.20%
Loans receivable, gross	$ 11,328,633		$ 10,950,608
Single family residential coverage term (in years)	4 years
Covered loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 26,691		$ 28,974
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	24 months
Performing Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring, amount	$ 249,950

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Loans Receivable - Loans Receivable, Analysis of Age of Loans in Past Due Status (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 10,301,465	$ 10,071,124
Current	10,225,248	10,002,844
Past due	$ 76,217	$ 68,280
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.74%	0.68%
Ratio of total past due loans to total loans receivable, current	99.26%	99.32%
Ratio of total past due loans to total loans receivable, past due	0.74%	0.68%
Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 23,060	$ 25,007
Ratio of total past due loans to total loans receivable, past due	0.22%	0.25%
Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 8,323	$ 7,014
Ratio of total past due loans to total loans receivable, past due	0.08%	0.07%
Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 44,834	$ 36,259
Ratio of total past due loans to total loans receivable, past due	0.44%	0.36%
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	$ 5,623,668	$ 5,658,122
Current	5,563,465	5,601,457
Past due	$ 60,203	$ 56,665
Ratio of past due loans to total loans, net of charge-offs and LIPs	1.07%	1.00%
Single-family residential | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 16,670	$ 20,916
Single-family residential | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	6,808	5,271
Single-family residential | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	36,725	30,478
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	513,046	498,450
Current	512,705	498,450
Past due	$ 341	$ 0
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.07%	0.00%
Construction | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 341	$ 0
Construction | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	0
Construction | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	0
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	236,668	229,957
Current	236,511	229,419
Past due	$ 157	$ 538
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.07%	0.23%
Construction - custom | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 49	$ 538
Construction - custom | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	108	0
Construction - custom | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	0
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	103,148	94,928
Current	101,886	94,928
Past due	$ 1,262	$ 0
Ratio of past due loans to total loans, net of charge-offs and LIPs	1.22%	0.00%
Land - acquisition & development | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 728	$ 0
Land - acquisition & development | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	0
Land - acquisition & development | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	534	0
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	101,045	104,534
Current	99,969	102,472
Past due	$ 1,076	$ 2,062
Ratio of past due loans to total loans, net of charge-offs and LIPs	1.06%	1.97%
Land - consumer lot loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 235	$ 816
Land - consumer lot loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	43	687
Land - consumer lot loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	798	559
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	1,217,594	1,124,290
Current	1,215,726	1,122,307
Past due	$ 1,868	$ 1,983
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.15%	0.18%
Multi-family | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 853	$ 1,190
Multi-family | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	616	399
Multi-family | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	399	394
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	1,175,475	1,093,549
Current	1,167,710	1,088,680
Past due	$ 7,765	$ 4,869
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.66%	0.45%
Commercial real estate | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 1,771	$ 69
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	267	325
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	5,727	4,475
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	1,057,826	978,582
Current	1,056,718	978,540
Past due	$ 1,108	$ 42
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.10%	0.00%
Commercial & industrial | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 858	$ 0
Commercial & industrial | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	250	42
Commercial & industrial | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	0
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	148,448	149,713
Current	147,074	148,513
Past due	$ 1,374	$ 1,200
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.93%	0.80%
HELOC | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 893	$ 763
HELOC | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	164
HELOC | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	481	273
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of charge-offs and LIP	124,547	138,999
Current	123,484	138,078
Past due	$ 1,063	$ 921
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.85%	0.66%
Consumer | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 662	$ 715
Consumer | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	231	126
Consumer | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 170	$ 80

XML

Loans Receivable - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	14	8
Pre-modification outstanding recorded investment	$ 2,566	$ 1,694
Post-modification outstanding recorded investment	$ 2,566	$ 1,694
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	12	3
Pre-modification outstanding recorded investment	$ 2,134	$ 729
Post-modification outstanding recorded investment	$ 2,134	$ 729
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	1	0
Pre-modification outstanding recorded investment	$ 204	$ 0
Post-modification outstanding recorded investment	$ 204	$ 0
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	0	5
Pre-modification outstanding recorded investment	$ 0	$ 965
Post-modification outstanding recorded investment	$ 0	$ 965
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | contract	1	0
Pre-modification outstanding recorded investment	$ 228	$ 0
Post-modification outstanding recorded investment	$ 228	$ 0

XML

Loans Receivable - Loan Modifications (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of contracts (in contracts) | contract	8	6
Recorded investment | $	$ 2,260	$ 816
Single-family residential
Financing Receivable, Modifications [Line Items]
Number of contracts (in contracts) | contract	6	5
Recorded investment | $	$ 1,993	$ 668
Land - consumer lot loans
Financing Receivable, Modifications [Line Items]
Number of contracts (in contracts) | contract	0	1
Recorded investment | $	$ 0	$ 148
Commercial real estate
Financing Receivable, Modifications [Line Items]
Number of contracts (in contracts) | contract	2	0
Recorded investment | $	$ 267	$ 0

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, 2016	Sep. 30, 2016
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	$ 58,842	$ 72,705
Balance at beginning of period, carrying amount of loans	91,761	111,300
Additions, accretable yield	0	0
Additions, carrying amount of loans	0	0
Reclassification from nonaccretable balance, net, accretable yield	0	4,867
Reclassification from nonaccretable balance, net, carrying value of loans	0	0
Accretion, accretable yield	(3,233)	(18,730)
Accretion	3,233	18,730
Transfers to REO, accretable yield	0	0
Transfers to REO, carrying amount of loans	0	(175)
Payments received, net, accretable yield	0	0
Payments received, net, carrying amount of loans	(16,852)	(38,094)
Balance at end of period, accretable yield	55,609	58,842
Balance at end of period, carrying amount of loans	78,142	91,761
Acquired Non Impaired 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	4,222	7,204
Balance at beginning of period, carrying amount of loans	131,132	187,080
Additions, accretable yield	0	0
Additions, carrying amount of loans	0	0
Reclassification from nonaccretable balance, net, accretable yield	0	0
Reclassification from nonaccretable balance, net, carrying value of loans	0	0
Accretion, accretable yield	(198)	(2,982)
Accretion	198	2,982
Transfers to REO, accretable yield	0	0
Transfers to REO, carrying amount of loans	0	0
Payments received, net, accretable yield	0	0
Payments received, net, carrying amount of loans	5,211	(58,930)
Balance at end of period, accretable yield	4,024	4,222
Balance at end of period, carrying amount of loans	$ 136,541	$ 131,132

XML

Loans Receivable - FDIC Indemnification Asset (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
FDIC Indemnification Asset [Roll Forward]
Balance at beginning of period	$ 12,769	$ 16,275
Payments made (received)	242	(1,730)
Amortization	(387)	(2,012)
Accretion	50	236
Balance at end of period	$ 12,674	$ 12,769

XML

Allowance for Losses on Loans - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	$ 113,494	$ 106,829
Charge-offs	(404)	(2,121)
Recoveries	5,700	3,193
Provision & Transfers	(334)	0
Ending Allowance	118,456	107,901
Single-family residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	37,796	47,347
Charge-offs	(115)	(1,139)
Recoveries	151	2,466
Provision & Transfers	374	(918)
Ending Allowance	38,206	47,756
Construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	19,838	6,680
Charge-offs	0	0
Recoveries	0	155
Provision & Transfers	2,096	179
Ending Allowance	21,934	7,014
Construction - custom
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	1,080	990
Charge-offs	0	(60)
Recoveries	0	0
Provision & Transfers	30	132
Ending Allowance	1,110	1,062
Land - acquisition & development
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	6,023	5,781
Charge-offs	(20)	0
Recoveries	4,018	35
Provision & Transfers	(3,356)	962
Ending Allowance	6,665	6,778
Land - consumer lot loans
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	2,535	2,946
Charge-offs	(17)	(408)
Recoveries	70	0
Provision & Transfers	(87)	463
Ending Allowance	2,501	3,001
Multi-family
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	6,925	5,304
Charge-offs	0	0
Recoveries	0	0
Provision & Transfers	704	(257)
Ending Allowance	7,629	5,047
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	8,588	8,960
Charge-offs	(11)	(23)
Recoveries	356	123
Provision & Transfers	1,235	1,284
Ending Allowance	10,168	10,344
Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	28,008	24,980
Charge-offs	(58)	(248)
Recoveries	725	1
Provision & Transfers	(939)	(637)
Ending Allowance	27,736	24,096
HELOC
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	813	902
Charge-offs	(37)	(1)
Recoveries	1	21
Provision & Transfers	55	(102)
Ending Allowance	832	820
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance	1,888	2,939
Charge-offs	(146)	(242)
Recoveries	379	392
Provision & Transfers	(446)	(1,106)
Ending Allowance	$ 1,675	$ 1,983

XML

Allowance for Losses on Loans - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reversal of loan losses	$ 0	$ 0
Charge-offs, net of (recoveries)	(5,296,000)	(1,072,000)
Loans receivable, gross	$ 11,328,633,000		$ 10,950,608,000
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.74%		0.68%
Allowance for loan losses	$ 118,456,000	$ 107,901,000	$ 113,494,000	$ 106,829,000
Allowance for credit losses and reserve for unfunded commitments	$ 123,356,000
Allowance for credit losses and reserve for unfunded commitments, percent of gross loans	1.09%
Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,171,700,000		9,784,140,000
Allowance for loan losses	118,089,000		113,128,000
Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	51,726,000		34,271,000
Allowance for loan losses	367,000		366,000
Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	4,900,000		3,235,000
Non-Performing Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 83,352,000		$ 71,441,000
Ratio of non-performing assets to total assets	0.56%		0.48%
Nonaccrual of interest	$ 60,715,000		$ 42,414,000
Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	153,096,000		154,026,000
Substandard | Acquired and Covered Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 27,835,000		$ 35,910,000

XML

Allowance for Losses on Loans - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 118,456	$ 113,494	$ 107,901	$ 106,829
Loans receivable, gross	11,328,633	10,950,608
Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	118,089	113,128
Loans receivable, gross	$ 10,171,700	$ 9,784,140
Ratio	1.20%	1.20%
Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 367	$ 366
Loans receivable, gross	$ 51,726	$ 34,271
Ratio	0.70%	1.10%
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 38,206	$ 37,796	47,756	47,347
Loans receivable, gross	5,624,263	5,658,830
Single-family residential | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	38,092	37,536
Loans receivable, gross	$ 5,585,461	$ 5,585,912
Ratio	0.70%	0.70%
Single-family residential | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 114	$ 260
Loans receivable, gross	$ 30,165	$ 19,629
Ratio	0.40%	1.30%
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 21,934	$ 19,838	7,014	6,680
Loans receivable, gross	1,265,747	1,110,411
Construction | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	21,934	19,838
Loans receivable, gross	$ 513,046	$ 498,450
Ratio	4.30%	4.00%
Construction | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 0	$ 0
Loans receivable, gross	$ 0	$ 0
Ratio	0.00%	0.00%
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 1,110	$ 1,080	1,062	990
Loans receivable, gross	494,447	473,069
Construction - custom | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	1,110	1,080
Loans receivable, gross	$ 236,668	$ 229,298
Ratio	0.50%	0.50%
Construction - custom | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 0	$ 0
Loans receivable, gross	$ 0	$ 330
Ratio	0.00%	0.00%
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 6,665	$ 6,023	6,778	5,781
Loans receivable, gross	119,085	118,497
Land - acquisition & development | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	6,621	6,022
Loans receivable, gross	$ 101,598	$ 90,850
Ratio	6.50%	6.60%
Land - acquisition & development | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 44	$ 2
Loans receivable, gross	$ 886	$ 850
Ratio	5.00%	0.20%
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 2,501	$ 2,535	3,001	2,946
Loans receivable, gross	101,104	104,567
Land - consumer lot loans | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	2,501	2,535
Loans receivable, gross	$ 90,947	$ 92,828
Ratio	2.70%	2.70%
Land - consumer lot loans | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 0	$ 0
Loans receivable, gross	$ 1,384	$ 558
Ratio	0.00%	0.00%
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 7,629	$ 6,925	5,047	5,304
Loans receivable, gross	1,217,594	1,124,290
Multi-family | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	7,617	6,911
Loans receivable, gross	$ 1,215,870	$ 1,091,974
Ratio	0.60%	0.60%
Multi-family | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 12	$ 13
Loans receivable, gross	$ 1,496	$ 1,505
Ratio	0.80%	0.90%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 10,168	$ 8,588	10,344	8,960
Loans receivable, gross	1,207,573	1,093,639
Commercial real estate | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	9,971	8,497
Loans receivable, gross	$ 1,144,389	$ 957,380
Ratio	0.90%	0.90%
Commercial real estate | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 197	$ 91
Loans receivable, gross	$ 15,473	$ 11,157
Ratio	1.30%	0.80%
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 27,736	$ 28,008	24,096	24,980
Loans receivable, gross	1,025,821	978,589
Commercial & industrial | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	27,736	28,008
Loans receivable, gross	$ 1,021,372	$ 966,930
Ratio	2.70%	2.90%
Commercial & industrial | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 0	$ 0
Loans receivable, gross	$ 1,517	$ 0
Ratio	0.00%	0.00%
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 832	$ 813	820	902
Loans receivable, gross	148,452	149,716
HELOC | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	832	813
Loans receivable, gross	$ 138,094	$ 133,203
Ratio	0.60%	0.60%
HELOC | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 0	$ 0
Loans receivable, gross	$ 805	$ 239
Ratio	0.00%	0.00%
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 1,675	$ 1,888	$ 1,983	$ 2,939
Loans receivable, gross	124,547	139,000
Consumer | Loans Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	1,675	1,888
Loans receivable, gross	$ 124,255	$ 137,315
Ratio	1.30%	1.40%
Consumer | Loans Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 0	$ 0
Loans receivable, gross	$ 0	$ 3
Ratio	0.00%	0.00%

XML

Allowance for Losses on Loans - Internally Assigned Grade (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 11,328,633	$ 10,950,608
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 11,148,530	$ 10,764,097
Total grade as a % of total net loans	98.40%	98.30%
Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 27,007	$ 32,485
Total grade as a % of total net loans	0.20%	0.30%
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 153,096	$ 154,026
Total grade as a % of total net loans	1.40%	1.40%
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%
Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 5,624,263	$ 5,658,830
Single-family residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,568,663	5,607,521
Single-family residential | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Single-family residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	55,600	51,309
Single-family residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Single-family residential | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Construction
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,265,747	1,110,411
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,256,396	1,098,549
Construction | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,876	8,595
Construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	3,475	3,267
Construction | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Construction | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	494,447	473,069
Construction - custom | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	494,447	473,069
Construction - custom | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Construction - custom | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Construction - custom | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Construction - custom | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	119,085	118,497
Land - acquisition & development | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	113,569	111,225
Land - acquisition & development | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Land - acquisition & development | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,516	7,272
Land - acquisition & development | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Land - acquisition & development | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	101,104	104,567
Land - consumer lot loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	99,703	103,528
Land - consumer lot loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Land - consumer lot loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,401	1,039
Land - consumer lot loans | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Land - consumer lot loans | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Multi-family
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,217,594	1,124,290
Multi-family | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,211,055	1,117,437
Multi-family | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	3,658	3,237
Multi-family | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	2,881	3,616
Multi-family | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Multi-family | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,207,573	1,093,639
Commercial real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,163,517	1,033,880
Commercial real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	6,660	13,446
Commercial real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	37,396	46,313
Commercial real estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Commercial real estate | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,025,821	978,589
Commercial & industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	969,186	930,776
Commercial & industrial | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	10,813	7,207
Commercial & industrial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	45,822	40,606
Commercial & industrial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Commercial & industrial | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
HELOC
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	148,452	149,716
HELOC | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	147,495	149,195
HELOC | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
HELOC | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	957	521
HELOC | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
HELOC | Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	124,547	139,000
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	124,499	138,917
Consumer | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	48	83
Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Consumer | 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, 2016	Sep. 30, 2016
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 11,328,633	$ 10,950,608
Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 11,045,267	$ 10,673,989
Total grade as a % of total net loans	99.50%	99.60%
Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 83,352	$ 71,441
Nonaccrual loans by portfolio segment	$ 60,715	$ 42,414
Grade as a percentage of total gross loans	0.50%	0.40%
Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 5,624,263	$ 5,658,830
Single-family residential | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 5,549,864	$ 5,587,919
Total grade as a % of total net loans	99.30%	99.40%
Single-family residential | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 38,568	$ 33,148
Grade as a percentage of total gross loans	0.70%	0.60%
Construction
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,265,747	$ 1,110,411
Construction | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,265,747	$ 1,110,411
Total grade as a % of total net loans	100.00%	100.00%
Construction | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 0
Grade as a percentage of total gross loans	0.00%	0.00%
Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 494,447	$ 473,069
Construction - custom | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 494,447	$ 473,069
Total grade as a % of total net loans	100.00%	100.00%
Construction - custom | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 0
Grade as a percentage of total gross loans	0.00%	0.00%
Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 119,085	$ 118,497
Land - acquisition & development | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 116,567	$ 116,097
Total grade as a % of total net loans	99.50%	99.90%
Land - acquisition & development | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 603	$ 58
Grade as a percentage of total gross loans	0.50%	0.10%
Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 101,104	$ 104,567
Land - consumer lot loans | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 97,556	$ 101,343
Total grade as a % of total net loans	99.00%	99.50%
Land - consumer lot loans | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 969	$ 510
Grade as a percentage of total gross loans	1.00%	0.50%
Multi-family
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,217,594	$ 1,124,290
Multi-family | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,211,411	$ 1,118,025
Total grade as a % of total net loans	99.90%	99.90%
Multi-family | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 1,160	$ 776
Grade as a percentage of total gross loans	0.10%	0.10%
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,207,573	$ 1,093,639
Commercial real estate | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,079,298	$ 949,064
Total grade as a % of total net loans	99.10%	99.30%
Commercial real estate | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 9,660	$ 7,100
Grade as a percentage of total gross loans	0.90%	0.70%
Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,025,821	$ 978,589
Commercial & industrial | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 971,931	$ 946,065
Total grade as a % of total net loans	99.10%	99.90%
Commercial & industrial | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 9,230	$ 583
Grade as a percentage of total gross loans	0.90%	0.10%
HELOC
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 148,452	$ 149,716
HELOC | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 135,306	$ 134,546
Total grade as a % of total net loans	99.60%	99.80%
HELOC | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 480	$ 239
Grade as a percentage of total gross loans	0.40%	0.20%
Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 124,547	$ 139,000
Consumer | Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 123,140	$ 137,450
Total grade as a % of total net loans	100.00%	100.00%
Consumer | Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 45	$ 0
Grade as a percentage of total gross loans	0.00%	0.00%

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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, 2016	Sep. 30, 2016
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 283,752	$ 285,243
Unpaid Principal Balance	323,299	321,743
Related Allowance	4,754	3,915
Average Recorded Investment	271,198	265,771
Amount of related allowance included in specific reserves	367	366
Amount of related allowance included in general reserves	4,387	3,549
Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	39,424	23,712
Unpaid Principal Balance	68,029	50,196
Related Allowance	0	0
Average Recorded Investment	29,752	15,479
Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	244,328	261,531
Unpaid Principal Balance	255,270	271,547
Related Allowance	4,754	3,915
Average Recorded Investment	241,446	250,292
Single-family residential
Financing Receivable, Impaired [Line Items]
Recorded Investment	227,534	237,813
Unpaid Principal Balance	233,727	243,961
Related Allowance	4,502	3,809
Average Recorded Investment	221,547	223,143
Single-family residential | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	15,488	9,627
Unpaid Principal Balance	17,258	11,366
Related Allowance	0	0
Average Recorded Investment	11,050	6,511
Single-family residential | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	212,046	228,186
Unpaid Principal Balance	216,469	232,595
Related Allowance	4,502	3,809
Average Recorded Investment	210,497	216,632
Land - acquisition & development
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,016	1,292
Unpaid Principal Balance	10,187	11,095
Related Allowance	2	1
Average Recorded Investment	1,003	2,380
Land - acquisition & development | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	165	138
Unpaid Principal Balance	8,396	9,001
Related Allowance	0	0
Average Recorded Investment	152	614
Land - acquisition & development | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	851	1,154
Unpaid Principal Balance	1,791	2,094
Related Allowance	2	1
Average Recorded Investment	851	1,766
Land - consumer lot loans
Financing Receivable, Impaired [Line Items]
Recorded Investment	9,769	10,129
Unpaid Principal Balance	10,879	11,287
Related Allowance	41	1
Average Recorded Investment	9,527	9,865
Land - consumer lot loans | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	713	499
Unpaid Principal Balance	765	609
Related Allowance	0	0
Average Recorded Investment	525	317
Land - consumer lot loans | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	9,056	9,630
Unpaid Principal Balance	10,114	10,678
Related Allowance	41	1
Average Recorded Investment	9,002	9,548
Multi-family
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,656	1,899
Unpaid Principal Balance	6,592	5,477
Related Allowance	12	13
Average Recorded Investment	2,469	2,160
Multi-family | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,160	394
Unpaid Principal Balance	5,096	3,972
Related Allowance	0	0
Average Recorded Investment	968	638
Multi-family | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,496	1,505
Unpaid Principal Balance	1,496	1,505
Related Allowance	12	13
Average Recorded Investment	1,501	1,522
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment	29,653	31,175
Unpaid Principal Balance	41,326	44,149
Related Allowance	197	91
Average Recorded Investment	28,931	25,571
Commercial real estate | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	11,407	11,741
Unpaid Principal Balance	19,829	21,301
Related Allowance	0	0
Average Recorded Investment	11,180	6,260
Commercial real estate | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	18,246	19,434
Unpaid Principal Balance	21,497	22,848
Related Allowance	197	91
Average Recorded Investment	17,751	19,311
Commercial & industrial
Financing Receivable, Impaired [Line Items]
Recorded Investment	11,036	1,030
Unpaid Principal Balance	17,479	3,082
Related Allowance	0	0
Average Recorded Investment	6,033	863
Commercial & industrial | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	9,680	1,030
Unpaid Principal Balance	15,065	3,082
Related Allowance	0	0
Average Recorded Investment	5,355	863
Commercial & industrial | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,356
Unpaid Principal Balance	2,414
Related Allowance	0
Average Recorded Investment	678
HELOC
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,967	1,715
Unpaid Principal Balance	2,246	1,836
Related Allowance	0	0
Average Recorded Investment	1,559	1,578
HELOC | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	767	209
Unpaid Principal Balance	1,028	315
Related Allowance	0	0
Average Recorded Investment	471	165
HELOC | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,200	1,506
Unpaid Principal Balance	1,218	1,521
Related Allowance	0	0
Average Recorded Investment	1,088	1,413
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment	121	190
Unpaid Principal Balance	863	856
Related Allowance	0	0
Average Recorded Investment	129	211
Consumer | Financing Receivable, Impairment, No Related Allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	44	74
Unpaid Principal Balance	592	550
Related Allowance	0	0
Average Recorded Investment	51	111
Consumer | Financing Receivable, Impairment, Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded Investment	77	116
Unpaid Principal Balance	271	306
Related Allowance	0	0
Average Recorded Investment	$ 78	$ 100

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Fair Value Measurements - Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 1,441,935		$ 1,922,894
Total financial assets	3,165,027		3,364,450
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	1,441,935		1,922,894
Interest rate contracts	2,560		20,895
Total financial assets	1,444,495		1,943,789
Total financial liabilities	4,685		55,554
Recurring | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	2,560		20,895
Recurring | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	49		3,312
Recurring | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	2,076		31,347
Recurring | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	522		101,824
Recurring | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	247,268		259,351
Recurring | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	26,459		27,670
Recurring | Obligations of foreign governments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0		0
Recurring | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	208,025		461,138
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	906,847		993,041
Recurring | Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	52,814		79,870
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	522		101,824
Interest rate contracts	0		0
Total financial assets	522		101,824
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	522		101,824
Recurring | Level 1 | U.S. government and agency 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 | Municipal bonds
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 foreign governments
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 | 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	1,441,413		1,821,070
Interest rate contracts	2,560		20,895
Total financial assets	1,443,973		1,841,965
Total financial liabilities	4,685		55,554
Recurring | Level 2 | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	2,560		20,895
Recurring | Level 2 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	49		3,312
Recurring | Level 2 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate contracts	2,076		31,347
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 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	247,268		259,351
Recurring | Level 2 | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	26,459		27,670
Recurring | Level 2 | Obligations of foreign governments
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 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	208,025		461,138
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	906,847		993,041
Recurring | Level 2 | Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	52,814		79,870
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 | U.S. government and agency 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 | Municipal bonds
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 foreign governments
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 | 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	5,652	$ 15,669
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	(663)	(3,436)
Nonrecurring | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	3,353	8,524
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	(422)	(1,681)
Nonrecurring | Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	2,299	7,145
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	(241)	(1,755)
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	5,652	15,669
Nonrecurring | Level 3 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	3,353	8,524
Nonrecurring | Level 3 | Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, nonrecurring	$ 2,299	$ 7,145

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Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	$ 1,441,935	$ 1,922,894
FHLB and FRB stock	117,190	117,205
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	1,441,935	1,922,894
Held-to-maturity securities	1,752,010	1,417,599
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	1,441,935	1,922,894
Held-to-maturity securities	1,723,092	1,441,556
Level 1 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	398,838	450,368
Level 1 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	398,838	450,368
Level 1 | Equity securities | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	522	101,824
Level 1 | Equity securities | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	522	101,824
Level 2 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and FRB stock	117,190	117,205
Other assets - interest rate contracts	2,560	20,895
Customer accounts	10,647,575	10,600,852
FHLB advances	2,080,000	2,080,000
Level 2 | Carrying Amount | Interest rate contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	2,560	20,895
Level 2 | Carrying Amount | Commercial loan hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	49	3,312
Level 2 | Carrying Amount | Long term borrowing hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	2,076	31,347
Level 2 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FHLB and FRB stock	117,190	117,205
Other assets - interest rate contracts	2,560	20,895
Customer accounts	10,066,485	10,184,321
FHLB advances	2,140,150	2,184,671
Level 2 | Estimated Fair Value | Interest rate contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	2,560	20,895
Level 2 | Estimated Fair Value | Commercial loan hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	49	3,312
Level 2 | Estimated Fair Value | Long term borrowing hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other liabilities	2,076	31,347
Level 2 | Agency pass-through certificates | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities	1,752,010	1,417,599
Level 2 | Agency pass-through certificates | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities	1,723,092	1,441,556
Level 2 | U.S. government and agency securities | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	247,268	259,351
Level 2 | U.S. government and agency securities | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	247,268	259,351
Level 2 | Municipal bonds | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	26,459	27,670
Level 2 | Municipal bonds | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	26,459	27,670
Level 2 | Corporate debt securities | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	208,025	461,138
Level 2 | Corporate debt securities | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	208,025	461,138
Level 2 | Agency pass-through certificates | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	906,847	993,041
Level 2 | Agency pass-through certificates | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	906,847	993,041
Level 2 | Commercial MBS | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	52,814	79,870
Level 2 | Commercial MBS | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	52,814	79,870
Level 3 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable	10,136,311	9,910,920
FDIC indemnification asset	12,674	12,769
Level 3 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable	10,424,590	10,414,794
FDIC indemnification asset	$ 12,174	$ 12,095

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Fair Value Measurements - Investments by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Amortized Cost, Available-for-sale securities
Amortized Cost	$ 1,444,338	$ 1,909,184
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains	11,815	25,422
Gross unrealized loss	(14,218)	(11,712)
Fair Value, Available-for-sale securities
Available-for-sale securities, at fair value	$ 1,441,935	$ 1,922,894
Yield, Available-for-sale securities
Yield	2.49%	2.22%
Yield, Held-to-maturity securities
Investments	$ 3,196,348	$ 3,326,783
Gross unrealized gains on investments	15,674	49,593
Gross unrealized losses on investments	(46,995)	(11,926)
Total financial assets	$ 3,165,027	$ 3,364,450
Yield on investments	2.84%	2.62%
U.S. government and agency securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 23,102	$ 21,284
1 to 5 years	35,788	12,477
5 to 10 years	42,301	48,134
Over 10 years	149,673	182,051
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Within 1 year	428	0
Gross unrealized gains, 1 to 5 years	354	1,027
Gross unrealized gains, 5 to 10 years	0	0
Gross unrealized gains, Over 10 years	0	27
Gross unrealized losses, Within 1 year	(27)	(59)
Gross unrealized losses, 1 to 5 years	(1,151)	(11)
Gross unrealized losses, 5 to 10 years	(955)	(1,589)
Gross unrealized losses, Over 10 years	(2,245)	(3,990)
Fair Value, Available-for-sale securities
Within 1 year	23,503	21,225
1 to 5 years	34,991	13,493
5 to 10 years	41,346	46,545
Over 10 years	$ 147,428	$ 178,088
Yield, Available-for-sale securities
Within 1 year	3.55%	0.81%
1 to 5 years	2.15%	7.94%
5 to 10 years	1.75%	1.14%
Over 10 years	1.44%	1.33%
Equity securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 0	$ 0
1 to 5 years	500	100,422
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Within 1 year	0	0
Gross unrealized gains, 1 to 5 years	22	1,402
Gross unrealized losses, Within 1 year	0	0
Gross unrealized losses, 1 to 5 years	0	0
Fair Value, Available-for-sale securities
Within 1 year	0	0
1 to 5 years	$ 522	$ 101,824
Yield, Available-for-sale securities
Within 1 year	0.00%	0.00%
1 to 5 years	1.80%	1.90%
Corporate debt securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 28,094	$ 278,094
1 to 5 years	63,516	63,481
5 to 10 years	69,957	69,955
Over 10 years	50,000	50,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Within 1 year	52	325
Gross unrealized gains, 1 to 5 years	951	928
Gross unrealized gains, 5 to 10 years	0	0
Gross unrealized gains, Over 10 years	0	938
Gross unrealized losses, Within 1 year	0	(53)
Gross unrealized losses, 1 to 5 years	(50)	(113)
Gross unrealized losses, 5 to 10 years	(3,361)	(2,417)
Gross unrealized losses, Over 10 years	(1,134)	0
Fair Value, Available-for-sale securities
Within 1 year	28,146	278,366
1 to 5 years	64,417	64,296
5 to 10 years	66,596	67,538
Over 10 years	$ 48,866	$ 50,938
Yield, Available-for-sale securities
Within 1 year	1.84%	1.33%
1 to 5 years	2.57%	2.47%
5 to 10 years	2.06%	1.96%
Over 10 years	3.00%	3.00%
Municipal bonds due
Amortized Cost, Available-for-sale securities
1 to 5 years	$ 2,322	$ 2,315
5 to 10 years	1,343	1,335
Over 10 years	20,358	20,363
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, 1 to 5 years	0	2
Gross unrealized gains, 5 to 10 years	0	38
Gross unrealized gains, Over 10 years	2,462	3,617
Gross unrealized losses, 1 to 5 years	(8)	0
Gross unrealized losses, 5 to 10 years	(18)	0
Gross unrealized losses, Over 10 years	0	0
Fair Value, Available-for-sale securities
1 to 5 years	2,314	2,317
5 to 10 years	1,325	1,373
Over 10 years	$ 22,820	$ 23,980
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	$ 904,287	$ 978,955
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Without single maturity date	7,546	17,118
Gross unrealized losses, Without single maturity date	(4,986)	(3,032)
Fair Value, Available-for-sale securities
Without single maturity date	$ 906,847	$ 993,041
Yield, Available-for-sale securities
Without single maturity date	2.65%	2.58%
Amortized Cost, Held-to-maturity securities
Without single maturity date	$ 1,752,010	$ 1,417,599
Gross Unrealized Gains / Losses, Held-to-maturity securities
Gross unrealized gains, Without single maturity date	3,859	24,171
Gross unrealized losses, Without single maturity date	(32,777)	(214)
Fair Value, Held-to-maturity securities
Without single maturity date	$ 1,723,092	$ 1,441,556
Yield, Held-to-maturity securities
Without a single maturity date	3.18%	3.18%
Commercial MBS
Amortized Cost, Available-for-sale securities
Without single maturity date	$ 53,097	$ 80,318
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, Without single maturity date	0	0
Gross unrealized losses, Without single maturity date	(283)	(448)
Fair Value, Available-for-sale securities
Without single maturity date	$ 52,814	$ 79,870
Yield, Available-for-sale securities
Without single maturity date	1.95%	1.91%

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Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Proceeds on available-for-sale securities sold	$ 350,890,000	$ 0
Proceeds from sale of available-for-sale securities, net		0
Available-for-sale securities purchased	0	(50,741,000)
Held-to-maturity securities purchased	(415,729,000)	0
Proceeds from sale of held-to-maturity securities	$ 0	$ 0
Term of contractual due dates of substantially all mortgage-backed securities (in years)	10 years

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Fair Value Measurements - Securities in Unrealized Loss Positions (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	$ (36,439)	$ (1,289)
Less than 12 months, fair value	1,838,706	304,197
12 months or more, unrealized gross losses	(10,556)	(10,637)
12 months or more, fair value	720,796	553,487
Total unrealized gross losses	(46,995)	(11,926)
Total, fair value	2,559,502	857,684
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	(1,134)	0
Less than 12 months, fair value	48,866	0
12 months or more, unrealized gross losses	(3,411)	(2,582)
12 months or more, fair value	76,546	100,467
Total unrealized gross losses	(4,545)	(2,582)
Total, fair value	125,412	100,467
Municipal bonds due
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	(26)
Less than 12 months, fair value	3,639
12 months or more, unrealized gross losses	0
12 months or more, fair value	0
Total unrealized gross losses	(26)
Total, fair value	3,639
U.S. government and agency securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	(743)	(11)
Less than 12 months, fair value	24,470	3,167
12 months or more, unrealized gross losses	(3,634)	(5,638)
12 months or more, fair value	212,717	220,613
Total unrealized gross losses	(4,377)	(5,649)
Total, fair value	237,187	223,780
Agency pass-through certificates
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, unrealized gross losses	(34,536)	(1,278)
Less than 12 months, fair value	1,761,731	301,030
12 months or more, unrealized gross losses	(3,511)	(2,417)
12 months or more, fair value	431,533	232,407
Total unrealized gross losses	(38,047)	(3,695)
Total, fair value	$ 2,193,264	$ 533,437

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Derivatives and Hedging Activities (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Derivative [Line Items]
Gain (loss) on derivative instruments	$ 0
Derivative asset, fair value, gross asset	2,560,000	$ 20,895,000
Derivative liability, fair value, gross liability	4,685,000	55,554,000
Interest rate swap agreements
Derivative [Line Items]
Customer derivatives program	878,860,000	840,935,000
Notional amount	700,000,000	700,000,000
Commercial loan interest rate swap
Derivative [Line Items]
Notional amount	52,936,000	54,155,000
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	2,076,000	31,347,000
Interest rate contracts | Other assets
Derivative [Line Items]
Derivative asset, fair value, gross asset	2,560,000	20,895,000
Interest rate contracts | Other liabilities
Derivative [Line Items]
Derivative liability, fair value, gross liability	2,560,000	20,895,000
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	$ 49,000	$ 3,312,000