Fair Value of Financial Instruments (Tables)

12 Months Ended

Mar. 31, 2013

Presentation of Financial Instruments Carried At Fair Value By Valuation Hierarchy

The table below presents the financial instruments carried at fair value as of March 31, 2013 and 2012, by the valuation hierarchy (as described above):

	Level 1		Level 2		Level 3		Total
	(In thousands)
March 31, 2013
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,504	$	—	$	3,504
Corporate stock and bonds		264		—		—		264
Non-agency CMOs		—		—		7,549		7,549
Government sponsored agency mortgage-backed securities		—		3,184		—		3,184
GNMA mortgage-backed securities		—		252,286		—		252,286
Other assets:
Interest rate lock commitments		—		689		—		689
Total	$	264	$	259,663	$	7,549	$	267,476
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	3	$	—	$	3
Forward contracts to sell mortgage loans		—		312		—		312
Total	$	—	$	315	$	—	$	315

	Level 1		Level 2		Level 3		Total
	(In thousands)
March 31, 2012
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,531	$	—	$	3,531
Corporate stock and bonds		661		—		—		661
Non-agency CMOs		—		—		21,592		21,592
Government sponsored agency mortgage-backed securities		—		4,195		—		4,195
GNMA mortgage-backed securities		—		212,320		—		212,320
Other assets:
Interest rate lock commitments		—		943		—		943
Total	$	661	$	220,989	$	21,592	$	243,242
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	72	$	—	$	72
Forward contracts to sell mortgage loans		—		459		—		459
Total	$	—	$	531	$	—	$	531

Summary of Price Ginnie Mae Mortgage-Backed Securities

The significant inputs used at March 31, 2013 and 2012 to price GNMA mortgage-backed securities are as follows:

	March 31,
	2013						2012
	From			To			From			To
Coupon rate		1.6	%		4.6	%		1.6	%		5.5	%
Duration (in years)		1.2			5.1			0.1			6.1
PSA prepayment speed		283			453			201			495

Schedule of Observable and Unobservable Inputs

The significant inputs used by the model at March 31, 2013 and 2012 include observable and unobservable inputs as follows:

	March 31,
	2013						2012
	From			To			From			To
Observable inputs:
30 to 59 day delinquency rate		2.0	%		4.6	%		1.2	%		4.8	%
60 to 89 day delinquency rate		0.7			3.1			0.6			2.5
90 plus day delinquency rate		2.4			6.2			1.1			6.0
Loss severity		39.9			71.2			39.5			71.7
Coupon rate		5.0			6.0			5.0			7.5
Current credit support		—			58.4			—			25.3
Unobservable inputs:
Month 1 to month 24 constant default rate		4.5			11.5			3.4			11.3
Discount rate		4.0			7.0			4.0			12.0

Reconciliation of Assets Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs

The following is a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (level 3):

	Year Ended March 31,
	2013			2012
	(In thousands)
Non-agency CMOs
Beginning balance	$	21,592		$	46,637
Total realized/unrealized gains (losses):
Included in earnings		(191	)		334
Included in other comprehensive income		3,139			(192	)
Included in earnings as unrealized other-than-temporary impairment		(412	)		(558	)
Included in earnings upon payoff of securities for which other-than-temporary impairment was previously recognized		4			—
Included in earnings as realized other-than-temporary impairment		721			363
Principal repayments		(5,042	)		(8,596	)
Sales		(12,262	)		(16,396	)
Ending balance	$	7,549		$	21,592

Fair Value On Nonrecurring Basis

The following table presents such assets carried on the consolidated balance sheet by caption and by level within the fair value hierarchy as of March 31, 2013 and 2012:

	Level 1		Level 2		Level 3		Total
	(In thousands)
March 31, 2013
Impaired loans, with an allowance recorded, net	$	—	$	—	$	76,430	$	76,430
Loans held for sale		—		643		—		643
Mortgage servicing rights		—		—		20,889		20,889
Other real estate owned		—		—		84,342		84,342
Total assets at fair value	$	—	$	643	$	181,661	$	182,304
March 31, 2012
Impaired loans, with an allowance recorded, net	$	—	$	—	$	129,446	$	129,446
Loans held for sale		—		145		—		145
Mortgage servicing rights		—		—		20,671		20,671
Other real estate owned		—		—		88,841		88,841
Total assets at fair value	$	—	$	145	$	238,958	$	239,103

Carrying Amount and Fair Value Of Corporation's Financial Instruments

The carrying amount and fair value of the Corporation’s financial instruments consist of the following:

	March 31,
	2013				2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Financial assets:
Cash and cash equivalents	$	228,536	$	228,536	$	242,980	$	242,980
Investment securities available for sale		266,787		266,787		242,299		242,299
Investment securities held to maturity		—		—		20		20
Loans held for sale		18,058		18,356		39,332		39,742
Loans held for investment		1,670,543		1,643,968		2,057,744		2,008,278
Mortgage servicing rights		21,824		22,088		22,156		22,770
Federal Home Loan Bank stock		25,630		25,630		35,792		35,792
Accrued interest receivable		9,563		9,563		12,075		12,075
Interest rate lock commitments		689		689		943		943
Forward contracts to sell mortgage loans (1)		1		1		98		98
Financial liabilities:
Deposits		2,025,025		1,994,545		2,264,901		2,232,691
Other borrowed funds		317,225		341,903		476,103		502,846
Accrued interest payable – borrowings		53,788		53,788		36,568		36,568
Accrued interest payable – deposits		607		607		1,519		1,519
Interest rate lock commitments		3		3		72		72
Forward contracts to sell mortgage loans (1)		313		313		557		557

(1) The Corporation has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.