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Allowance for Losses on Loans (Tables)
 3 Months Ended
Dec. 31, 2012
Allowance for Losses on Loans [Abstract]  
Summary of Activity in Allowance for Loan Losses
The following table summarizes the activity in the allowance for loan losses for the quarter ended December 31, 2012 and fiscal year ended September 30, 2012:
 
Quarter Ended December 31, 2012
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision &
Transfers
 
Ending
Allowance
 
(In thousands)
Single-family residential
$
81,815

 
$
(6,932
)
 
$
1,582

 
$
1,043

 
$
77,508

Construction - speculative
12,060

 
(927
)
 
54

 
(2,527
)
 
8,660

Construction - custom
347

 
—

 
—

 
(72
)
 
275

Land - acquisition & development
15,598

 
(2,328
)
 
51

 
1,735

 
15,056

Land - consumer lot loans
4,937

 
(317
)
 
—

 
343

 
4,963

Multi-family
5,280

 
(391
)
 
6

 
212

 
5,107

Commercial real estate
1,956

 
(212
)
 
3

 
904

 
2,651

Commercial & industrial
7,626

 
(46
)
 
25

 
457

 
8,062

HELOC
965

 
(55
)
 
—

 
134

 
1,044

Consumer
2,563

 
(801
)
 
368

 
1,371

 
3,501

 
$
133,147

 
$
(12,009
)
 
$
2,089

 
$
3,600

 
$
126,827


Fiscal Year Ended September 30, 2012
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision &
Transfers
 
Ending
Allowance
 
(In thousands)
Single-family residential
$
83,307

 
$
(53,789
)
 
$
8,164

 
$
44,133

 
$
81,815

Construction - speculative
13,828

 
(4,916
)
 
711

 
2,437

 
12,060

Construction - custom
623

 
—

 
—

 
(276
)
 
347

Land - acquisition & development
32,719

 
(16,978
)
 
1,341

 
(1,484
)
 
15,598

Land - consumer lot loans
5,520

 
(2,670
)
 
—

 
2,087

 
4,937

Multi-family
7,623

 
(1,393
)
 
504

 
(1,454
)
 
5,280

Commercial real estate
4,331

 
(814
)
 
225

 
(1,786
)
 
1,956

Commercial & industrial
5,099

 
(249
)
 
2,366

 
410

 
7,626

HELOC
1,139

 
(232
)
 
66

 
(8
)
 
965

Consumer
2,971

 
(3,538
)
 
1,480

 
1,650

 
2,563

 
$
157,160

 
$
(84,579
)
 
$
14,857

 
$
45,709

 
$
133,147
Summary of Loans Collectively and Individually Evaluated for Impairment and Related Allocation of Reserves
The following tables shows a summary of loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves as of December 31, 2012 and September 30, 2012:
 
December 31, 2012
Loans Collectively Evaluated for Impairment
 
Loans Individually Evaluated for Impairment
 
General  Reserve
Allocation
 
Gross Loans Subject  to
General Reserve (1)
 
Ratio
 
Specific  Reserve
Allocation
 
Gross Loans Subject  to
Specific Reserve (1)
 
Ratio
 
(In thousands)
 
 
 
(In thousands)
Single-family residential
$
77,473

 
$
5,468,956

 
1.4
%
 
$
35

 
$
104,634

 
—
%
Construction - speculative
6,567

 
106,292

 
6.2

 
2,093

 
17,579

 
11.9

Construction - custom
275

 
228,140

 
0.1

 
—

 
—

 
—

Land - acquisition & development
9,097

 
78,188

 
11.6

 
5,959

 
31,270

 
19.1

Land - consumer lot loans
4,217

 
134,610

 
3.1

 
746

 
2,496

 
29.9

Multi-family
2,862

 
707,153

 
0.4

 
2,245

 
14,649

 
15.3

Commercial real estate
2,043

 
333,610

 
0.6

 
608

 
13,954

 
4.4

Commercial & industrial
8,062

 
171,148

 
4.7

 
—

 
496

 
—

HELOC
1,044

 
111,986

 
0.9

 
—

 
—

 
—

Consumer
3,501

 
59,131

 
5.9

 
—

 
—

 
—

 
$
115,141

 
$
7,399,214

 
1.6

 
$
11,686

 
$
185,078

 
6.3

 ___________________
(1)
Excludes acquired and covered loans
September 30, 2012
Loans Collectively Evaluated for Impairment
 
Loans Individually Evaluated for Impairment
 
General  Reserve
Allocation
 
Gross Loans Subject  to
General Reserve (1)
 
Ratio
 
Specific  Reserve
Allocation
 
Gross Loans Subject  to
Specific Reserve (1)
 
Ratio
 
(In thousands)
 
 
 
(In thousands)
Single-family residential
$
81,737

 
$
5,694,337

 
1.4
%
 
$
78

 
$
84,584

 
0.1
%
Construction - speculative
9,079

 
104,312

 
8.7

 
2,981

 
25,325

 
11.8

Construction - custom
347

 
211,690

 
0.2

 
—

 
—

 
—

Land - acquisition & development
6,697

 
47,294

 
14.2

 
8,901

 
77,383

 
11.5

Land - consumer lot loans
4,176

 
138,666

 
3.0

 
761

 
3,178

 
23.9

Multi-family
2,818

 
694,140

 
0.4

 
2,462

 
16,000

 
15.4

Commercial real estate
1,158

 
292,550

 
0.4

 
798

 
26,660

 
3.0

Commercial & industrial
7,624

 
161,689

 
4.7

 
2

 
1,134

 
0.2

HELOC
965

 
112,812

 
0.9

 
—

 
90

 
—

Consumer
2,563

 
63,374

 
4.0

 
—

 
—

 
—

 
$
117,164

 
$
7,520,864

 
1.6

 
$
15,983

 
$
234,354

 
6.8


(1)
Excludes acquired and covered loans
Summary of Loans Based on Credit Quality Indicators
The following tables provide information on loans based on credit quality indicators (defined in Note A) as of December 31, 2012 and September 30, 2012:
Credit Risk Profile by Internally Assigned Grade (excludes covered loans):
 
December 31, 2012
Internally Assigned Grade
 
Total
 
Pass
 
Special mention
 
Substandard
 
Doubtful
 
Loss
 
Gross Loans
 
(In thousands)
Non-acquired loans
 
 
 
 
 
 
 
 
 
 
 
  Single-family residential
$
5,394,895

 
$
2,537

 
$
176,158

 
$
—

 
$
—

 
$
5,573,590

  Construction - speculative
84,207

 
11,241

 
28,423

 
—

 
—

 
123,871

  Construction - custom
228,140

 
—

 
—

 
—

 
—

 
228,140

  Land - acquisition & development
67,717

 
3,430

 
38,311

 
—

 
—

 
109,458

  Land - consumer lot loans
135,240

 
124

 
1,742

 
—

 
—

 
137,106

  Multi-family
697,812

 
2,243

 
21,747

 
—

 
—

 
721,802

  Commercial real estate
292,210

 
22,490

 
32,864

 
—

 
—

 
347,564

  Commercial & industrial
167,026

 
1,673

 
2,906

 
—

 
39

 
171,644

  HELOC
111,986

 
—

 
—

 
—

 
—

 
111,986

  Consumer
58,363

 
411

 
357

 
—

 
—

 
59,131

 
7,237,596

 
44,149

 
302,508

 
—

 
39

 
7,584,292

 
 
 
 
 
 
 
 
 
 
 
 
Acquired loans
 
 
 
 
 
 
 
 
 
 
 
  Single-family residential
15,495

 
—

 
—

 
—

 
—

 
15,495

  Construction - speculative
—

 
—

 
90

 
—

 
—

 
90

  Construction - custom
994

 
—

 
—

 
—

 
—

 
994

  Land - acquisition & development
2,247

 
—

 
1,273

 
—

 
—

 
3,520

  Land - consumer lot loans
3,760

 
86

 
45

 
—

 
—

 
3,891

  Multi-family
3,310

 
179

 
5,844

 
—

 
—

 
9,333

  Commercial real estate
135,480

 
6,569

 
34,059

 
—

 
2,619

 
178,727

  Commercial & industrial
67,857

 
16,319

 
20,592

 
—

 
2,163

 
106,931

  HELOC
12,342

 
—

 
674

 
—

 
794

 
13,810

  Consumer
10,748

 
—

 
11

 
—

 
—

 
10,759

 
252,233

 
23,153

 
62,588

 
—

 
5,576

 
343,550

 
 
 
 
 
 
 
 
 
 
 
 
 Credit impaired acquired loans
 
 
 
 
 
 
 
 
 
 
 
  Pool 1 - Construction and land A&D
1,611

 
—

 
2,820

 
—

 
—

 
4,431

  Pool 2 - Single-family residential
340

 
—

 
—

 
—

 
—

 
340

  Pool 3 - Multi-family
—

 
—

 
—

 
—

 
—

 
—

  Pool 4 - HELOC & other consumer
12,940

 
—

 
—

 
—

 
—

 
12,940

  Pool 5 - Commercial real estate
52,982

 
1,025

 
28,654

 
996

 
—

 
83,657

  Pool 6 - Commercial & industrial
1,031

 
73

 
523

 
256

 
—

 
1,883

Total credit impaired acquired loans
68,904

 
1,098

 
31,997

 
1,252

 
—

 
103,251

Total gross loans
$
7,558,733

 
$
68,400

 
$
397,093

 
$
1,252

 
$
5,615

 
$
8,031,093

 
 
 
 
 
 
 
 
 
 
 
 
Total grade as a % of total gross loans
94.6
%
 
0.8
%
 
4.6
%
 
—
%
 
—
%
 
 


September 30, 2012
Internally Assigned Grade
 
Total
 
Pass
 
Special mention
 
Substandard
 
Doubtful
 
Loss
 
Gross Loans
 
(In thousands)
Non-acquired loans
 
 
 
 
 
 
 
 
 
 
 
 Single-family residential
$
5,588,252

 
$
844

 
$
189,826

 
$
—

 
$
—

 
$
5,778,922

 Construction - speculative
86,126

 
10,113

 
33,398

 
—

 
—

 
129,637

 Construction - custom
211,690

 
—

 
—

 
—

 
—

 
211,690

 Land - acquisition & development
73,661

 
4,637

 
46,379

 
—

 
—

 
124,677

 Land - consumer lot loans
140,006

 
223

 
1,615

 
—

 
—

 
141,844

 Multi-family
684,649

 
5,098

 
20,393

 
—

 
—

 
710,140

 Commercial real estate
278,022

 
16,282

 
24,906

 
—

 
—

 
319,210

 Commercial & industrial
158,421

 
1,071

 
3,331

 
—

 
—

 
162,823

 HELOC
112,902

 
—

 
—

 
—

 
—

 
112,902

 Consumer
62,611

 
354

 
409

 
—

 
—

 
63,374

 
7,396,340

 
$
38,622

 
$
320,257

 
$
—

 
$
—

 
$
7,755,219

 
 
 
 
 
 
 
 
 
 
 
 
Credit impaired acquired loans
 
 
 
 
 
 
 
 
 
 
 
  Pool 1 - Construction and land A&D
2,466

 
—

 
3,125

 
—

 
—

 
5,591

  Pool 2 - Single-family residential
342

 
—

 
—

 
—

 
—

 
342

  Pool 3 - Multi-family
—

 
—

 
601

 
—

 
—

 
601

  Pool 4 - HELOC & other consumer
14,137

 
—

 
—

 
—

 
—

 
14,137

  Pool 5 - Commercial real estate
53,683

 
4,308

 
28,200

 
963

 
—

 
87,154

  Pool 6 - Commercial & industrial
1,566

 
58

 
733

 
935

 
—

 
3,292

Total credit impaired acquired loans
72,194

 
4,366

 
32,659

 
1,898

 
—

 
111,117

Total gross loans
$
7,468,534

 
$
42,988

 
$
352,916

 
$
1,898

 
$
—

 
$
7,866,336

Total grade as a % of total gross loans
94.9
%
 
0.6
%
 
4.5
%
 
—
%
 
—
%
 
 

Credit Risk Profile Based on Payment Activity (excludes acquired and covered loans):
 
December 31, 2012
Performing Loans
 
Non-Performing Loans
 
Amount
 
% of Total
Gross  Loans
 
Amount
 
% of Total
Gross  Loans
 
(In thousands)
Single-family residential
$
5,465,020

 
98.1
%
 
$
108,570

 
1.9
%
Construction - speculative
114,400

 
92.4

 
9,471

 
7.6

Construction - custom
228,101

 
100.0

 
39

 
—

Land - acquisition & development
95,140

 
86.9

 
14,318

 
13.1

Land - consumer lot loans
133,082

 
97.1

 
4,024

 
2.9

Multi-family
713,895

 
98.9

 
7,907

 
1.1

Commercial real estate
330,606

 
95.1

 
16,958

 
4.9

Commercial & industrial
170,657

 
99.4

 
987

 
0.6

HELOC
111,497

 
99.6

 
489

 
0.4

Consumer
58,778

 
99.4

 
353

 
0.6

 
$
7,421,176

 
97.8

 
$
163,116

 
2.2


September 30, 2012
Performing Loans
 
Non-Performing Loans
 
Amount
 
% of Total
Gross  Loans
 
Amount
 
% of Total
Gross  Loans
 
(In thousands)
Single-family residential
$
5,647,729

 
97.7
%
 
$
131,193

 
2.3
%
Construction - speculative
119,003

 
91.8

 
10,634

 
8.2

Construction - custom
211,151

 
99.7

 
539

 
0.3

Land - acquisition & development
111,200

 
89.2

 
13,477

 
10.8

Land - consumer lot loans
136,695

 
96.4

 
5,149

 
3.6

Multi-family
705,955

 
99.4

 
4,185

 
0.6

Commercial real estate
311,557

 
97.6

 
7,653

 
2.4

Commercial & industrial
162,807

 
100.0

 
16

 
—

HELOC
112,704

 
99.8

 
198

 
0.2

Consumer
62,991

 
99.4

 
383

 
0.6

 
$
7,581,792

 
97.8
%
 
$
173,427

 
2.2
%
The following tables provide information on covered loans based on credit quality indicators (defined in Note A) as of December 31, 2012 and September 30, 2012:
Credit Risk Profile by Internally Assigned Grade:
 
December 31, 2012
Internally Assigned Grade
 
Total
Net  Loans
 
Pass
 
Special mention
 
Substandard
 
Doubtful
 
Loss
 
 
(In thousands)
Purchased non credit-impaired loans:
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
$
31,560

 
$
—

 
$
3,085

 
$
—

 
$
—

 
$
34,645

Construction - speculative
102

 
—

 
—

 
—

 
—

 
102

Construction - custom
—

 
—

 
—

 
—

 
—

 
—

Land - acquisition & development
3,065

 
1,482

 
6,321

 
—

 
—

 
10,868

Land - consumer lot loans
443

 
—

 
—

 
—

 
—

 
443

Multi-family
23,902

 
—

 
2,740

 
—

 
—

 
26,642

Commercial real estate
70,032

 
10,637

 
29,123

 
—

 
—

 
109,792

Commercial & industrial
6,444

 
500

 
5,066

 
—

 
—

 
12,010

HELOC
16,556

 
—

 
—

 
—

 
—

 
16,556

Consumer
721

 
—

 
—

 
—

 
—

 
721

 
152,825

 
12,619

 
46,335

 
—

 
—

 
211,779

Total grade as a % of total net loans
72.2
%
 
6.0
%
 
21.9
%
 
—
%
 
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased credit-impaired loans:
 
 
 
 
 
 
 
 
Pool 1 - Construction and land A&D
—

 
9,782

 
5,049

 
30,539

 
45,370

 
54,857

Pool 2 - Single-family residential
—

 
665

 
—

 
1,783

 
2,448

 
26,815

Pool 3 - Multi-family
—

 
—

 
—

 
2,973

 
2,973

 
5,872

Pool 4 - HELOC & other consumer
—

 
905

 
—

 
2,980

 
3,885

 
8,322

Pool 5 - Commercial real estate
—

 
400

 
25,636

 
40,775

 
66,811

 
133,471

Pool 6 - Commercial & industrial
—

 
3,633

 
994

 
10,144

 
14,771

 
24,766

 
$
—

 
$
15,385

 
$
31,679

 
$
89,194

 
$
136,258

 
254,103

 
 
 
 
 
 
 
 
 
Total covered loans
 
465,882

 
 
 
 
 
 
 
 
 
Discount
 
(85,288
)
 
 
 
 
 
 
 
 
 
Allowance
 
—

 
 
 
 
 
 
 
 
 
Covered loans, net
 
$
380,594


September 30, 2012
Internally Assigned Grade
 
Total
Net  Loans
 
Pass
 
Special mention
 
Substandard
 
Doubtful
 
Loss
 
 
(In thousands)
Purchased non credit-impaired loans:
 
 
 
 
 
 
 
 
 
 
 
Single-family residential
$
32,272

 
$
—

 
$
3,404

 
$
—

 
$
—

 
$
35,676

Construction - speculative
90

 
—

 
—

 
—

 
—

 
90

Construction - custom
—

 
—

 
—

 
—

 
—

 
—

Land - acquisition & development
3,440

 
1,970

 
6,020

 
—

 
—

 
11,430

Land - consumer lot loans
498

 
—

 
—

 
—

 
—

 
498

Multi-family
24,898

 
—

 
2,747

 
—

 
—

 
27,645

Commercial real estate
89,530

 
298

 
31,764

 
—

 
—

 
121,592

Commercial & industrial
7,146

 
510

 
5,367

 
—

 
—

 
13,023

HELOC
17,971

 
—

 
—

 
—

 
—

 
17,971

Consumer
918

 
—

 
—

 
—

 
—

 
918

 
176,763

 
2,778

 
49,302

 
—

 
—

 
228,843

Total grade as a % of total net loans
77.3
%
 
1.2
%
 
21.5
%
 
—
%
 
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased credit-impaired loans:
 
 
 
 
 
 
 
 
Pool 1 - Construction and land A&D
9,795

 
5,301

 
35,857

 
—

 
—

 
50,953

Pool 2 - Single-family residential
669

 
—

 
2,953

 
—

 
—

 
3,622

Pool 3 - Multi-family
—

 
—

 
2,996

 
—

 
—

 
2,996

Pool 4 - HELOC & other consumer
1,094

 
—

 
3,096

 
—

 
—

 
4,190

Pool 5 - Commercial real estate
404

 
25,785

 
41,403

 
—

 
—

 
67,592

Pool 6 - Commercial & industrial
3,787

 
1,006

 
10,466

 
—

 
—

 
15,259

 
$
15,749

 
$
32,092

 
$
96,771

 
$
—

 
$
—

 
144,612

 
 
 
 
 
 
 
 
 
Total covered loans
 
373,455

 
 
 
 
 
 
 
 
 
Discount
 
(85,079
)
 
 
 
 
 
 
 
 
 
Allowance
 
—

 
 
 
 
 
 
 
 
 
Covered loans, net
 
$
288,376
Sumary of Impaired Loans Based on Type
The following table provides information on impaired loans based on loan types as of December 31, 2012 and September 30, 2012:
 
 
 
 
 
 
 
 
Average Recorded Investment
December 31, 2012
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Quarter Ended December 31, 2012
 
(In thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Single-family residential
$
42,110

 
$
49,559

 
$
—

 
$
43,478

Construction - speculative
4,637

 
5,529

 
—

 
4,681

Construction - custom
568

 
568

 
—

 
568

Land - acquisition & development
11,875

 
23,244

 
—

 
12,020

Land - consumer lot loans
3,094

 
3,316

 
—

 
2,982

Multi-family
5,022

 
5,022

 
—

 
4,281

Commercial real estate
12,857

 
14,198

 
—

 
11,101

Commercial & industrial
3,164

 
8,469

 
—

 
2,387

HELOC
1,163

 
1,163

 
—

 
737

Consumer
1

 
17

 
—

 
13

 
84,491

 
111,085

 
—

 
82,248

With an allowance recorded:
 
 
 
 
 
 
 
Single-family residential
355,311

 
363,996

 
19,073

 
356,506

Construction - speculative
19,533

 
20,438

 
2,093

 
19,975

Construction - custom
—

 
—

 
—

 
—

Land - acquisition & development
20,994

 
23,763

 
5,959

 
22,418

Land - consumer lot loans
13,785

 
13,857

 
746

 
13,803

Multi-family
18,524

 
18,639

 
2,245

 
18,620

Commercial real estate
8,360

 
8,360

 
608

 
8,382

Commercial & industrial
—

 
—

 
—

 
—

HELOC
741

 
741

 
—

 
737

Consumer
—

 
—

 
—

 
—

 
437,248

 
449,794

 
30,724

(1)
440,441

Total:
 
 
 
 
 
 
 
Single-family residential
397,421

 
413,555

 
19,073

 
399,984

Construction - speculative
24,170

 
25,967

 
2,093

 
24,656

Construction - custom
568

 
568

 
—

 
568

Land - acquisition & development
32,869

 
47,007

 
5,959

 
34,438

Land - consumer lot loans
16,879

 
17,173

 
746

 
16,785

Multi-family
23,546

 
23,661

 
2,245

 
22,901

Commercial real estate
21,217

 
22,558

 
608

 
19,483

Commercial & industrial
3,164

 
$
8,469

 
—

 
2,387

HELOC
1,904

 
1,904

 
—

 
1,474

Consumer
1

 
17

 
—

 
13

 
$
521,739

 
$
560,879

 
$
30,724

(1)
$
522,689

____________________ 
(1)Includes $11,686,000 of specific reserves and $19,038,000 included in the general reserves.

September 30, 2012
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
(In thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
Single-family residential
$
106,955

 
$
124,342

 
$
—

 
$
49,524

Construction - speculative
13,726

 
16,568

 
—

 
13,581

Construction - custom
—

 
—

 
—

 
—

Land - acquisition & development
18,000

 
30,209

 
—

 
16,417

Land - consumer lot loans
1,677

 
2,185

 
—

 
487

Multi-family
8,792

 
8,991

 
—

 
6,935

Commercial real estate
31,190

 
42,656

 
—

 
12,946

Commercial & industrial
1,146

 
7,363

 
—

 
581

HELOC
90

 
1,066

 
—

 
36

Consumer
—

 
4

 
—

 
—

 
181,576

 
233,384

 
—

 
100,507

With an allowance recorded:
 
 
 
 
 
 
 
Single-family residential
317,901

 
317,901

 
25,723

 
305,350

Construction - speculative
12,836

 
12,836

 
2,981

 
12,822

Construction - custom
—

 
—

 
—

 
—

Land - acquisition & development
20,750

 
20,750

 
8,901

 
21,650

Land - consumer lot loans
13,881

 
13,881

 
761

 
13,126

Multi-family
14,153

 
14,555

 
2,462

 
14,279

Commercial real estate
3,722

 
3,722

 
798

 
2,897

Commercial & industrial
—

 
2

 
2

 
22

HELOC
734

 
734

 
—

 
743

Consumer
—

 
—

 
—

 
—

 
383,977

 
384,381

 
41,628

(1)
370,889

Total:
 
 
 
 
 
 
 
Single-family residential
424,856

 
442,243

 
25,723

 
354,874

Construction - speculative
26,562

 
29,404

 
2,981

 
26,403

Construction - custom
—

 
—

 
—

 
—

Land - acquisition & development
38,750

 
50,959

 
8,901

 
38,067

Land - consumer lot loans
15,558

 
16,066

 
761

 
13,613

Multi-family
22,945

 
23,546

 
2,462

 
21,214

Commercial real estate
34,912

 
46,378

 
798

 
15,843

Commercial & industrial
1,146

 
7,365

 
2

 
603

HELOC
824

 
1,800

 
—

 
779

Consumer
—

 
4

 
—

 
—

 
$
565,553

 
$
617,765

 
$
41,628

(1)
$
471,396

(1)
Includes $15,983,000 of specific reserves and $25,645,000 included in the general reserves.