Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2012

Fair Value Measurements [Abstract]

Fair Value of Assets Measured on Recurring Basis

The following table presents the balance of assets measured at fair value on a recurring basis at December 31, 2012:

	Fair Value at December 31, 2012
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	—	$	—	$	—	$	—
Obligations of U.S. government	—		407,372		—		407,372
Obligations of states and political subdivisions	—		25,060		—		25,060
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		403,357		—		403,357
Mortgage-backed securities					—
Agency pass-through certificates	—		1,167,988		—		1,167,988
Other debt securities	—		—		—		—
Balance at end of period	$	—	$	2,003,777	$	—	$	2,003,777

Aggregated Balance of Assets Measured at Estimated Fair Value on a Nonrecurring Basis and Total Losses Resulting from Those Fair Value Adjustments

The following table presents the aggregated balance of assets measured at estimated fair value on a nonrecurring basis through the quarter ended December 31, 2012, and the total losses resulting from those fair value adjustments for the quarter ended December 31, 2012. The following estimated fair values are shown gross of estimated selling costs:

	Through December 31, 2012								Quarter Ended December 31, 2012
	Level 1		Level  2		Level  3		Total		Total Losses
	(In thousands)
Impaired loans (1)	$	—	$	—	$	21,238	$	21,238	$	9,813
Covered REO (2)	—		—		3,080		3,080		91
Real estate held for sale (2)	—		—		25,426		25,426		7,536
Balance at end of period	$	—	$	—	$	49,744	$	49,744	$	17,440

 ___________________

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

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

Fair Value of Financial Instruments by Balance Sheet Grouping

Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below.

		December 31, 2012				September 30, 2012
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	637,298	$	637,298	$	751,430	$	751,430
Available-for-sale securities	2
Equity securities		—		—		—		—
Obligations of U.S. government		407,372		407,372		183,560		183,560
Obligations of states and political subdivisions		25,060		25,060		24,844		24,844
Obligations of foreign governments		—		—		—		—
Corporate debt securities		403,357		403,357		403,325		403,325
Mortgage-backed securities
Agency pass-through certificates		1,167,988		1,167,988		1,169,976		1,169,976
Other debt securities		—		—		—		—
Total available-for-sale securities		2,003,777		2,003,777		1,781,705		1,781,705
Held-to-maturity securities	2
Equity securities		—		—		—		—
Obligations of U.S. government		—		—		—		—
Obligations of states and political subdivisions		—		—		795		802
Obligations of foreign governments		—		—		—		—
Corporate debt securities		—		—		—		—
Mortgage-backed securities
Agency pass-through certificates		1,407,246		1,423,571		1,190,692		1,216,421
Other debt securities		—		—		—		—
Total held-to-maturity securities		1,407,246		1,423,571		1,191,487		1,217,223
Loans receivable	3	7,614,910		8,324,457		7,451,998		7,949,892
Covered loans	3	380,594		389,921		288,376		289,754
FDIC indemnification asset	3	90,415		88,033		87,571		85,846
FHLB stock	2	153,542		153,542		149,840		149,840
Financial liabilities
Customer accounts	2	9,234,091		8,902,278		8,576,618		8,406,432
FHLB advances and other borrowings	2	1,880,000		2,105,789		1,880,000		2,110,223

Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities

The following is a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities:

	December 31, 2012
	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	$	18,133	$	36	$	(51	)	$	18,118	0.44	%
1 to 5 years	58,000		2,597		—			60,597		1.55
5 to 10 years	33,300		1,435		—			34,735		1.75
Over 10 years	293,922		—		—			293,922		0.93
Corporate bonds due
Within 1 year	19,500		5		—			19,505		0.49
1 to 5 years	316,928		2,656		(292		)	319,292		0.84
5 to 10 years	62,954		1,612		(6		)	64,560		2.02
Municipal bonds due
Over 10 years	20,437		4,623		—			25,060		6.45
Mortgage-backed securities
Agency pass-through certificates	1,162,202		6,418		(632		)	1,167,988		2.07
	1,985,376		19,382		(981		)	2,003,777		4.11
Held-to-maturity securities
Tax-exempt municipal bonds due
Within 1 year	—		—		—			—		—
1 to 5 years	—		—		—			—		—
5 to 10 years	—		—		—			—		—
Over 10 years	—		—		—			—		—
U.S. government and agency securities due
1 to 5 years	—		—		—			—		—
Mortgage-backed securities
Agency pass-through certificates	1,407,246		16,616		(291		)	1,423,571		3.05
	1,407,246		16,616		(291		)	1,423,571		3.05
	$	3,392,622	$	35,998	$	(1,272	)	$	3,427,348	2.26	%

	September 30, 2012
	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	$	19,999	$	42		$	(6	)	$	20,035	0.57	%
1 to 5 years	—		—			—			—		—
5 to 10 years	59,300		4,225			—			63,525		2.21
Over 10 years	100,000		—			—			100,000		1.05
Corporate bonds due
1 to 5 years	336,340		2,810			(61		)	339,089		0.91
5 to 10 years	62,919		1,324			(7		)	64,236		2.73
Municipal bonds due
Over 10 years	20,442		4,402			—			24,844		6.45
Mortgage-backed securities
Agency pass-through certificates	1,161,668		9,358			(1,050		)	1,169,976		2.28
	1,760,668		22,161			(1,124		)	1,781,705		1.99
Held-to-maturity securities
Tax-exempt municipal bonds due
Within 1 year	795		7			—			802		5.80
1 to 5 years	—		—			—			—		—
5 to 10 years	—		—			—			—		—
Over 10 years	—		—			—			—		—
U.S. government and agency securities due
1 to 5 years	—		—			—			—		—
Mortgage-backed securities
Agency pass-through certificates	1,190,692		25,729			—			1,216,421		3.10
	1,191,487		25,736			—			1,217,223		3.10
	$	2,952,155	$	47,897		$	(1,124	)	$	2,998,928	2.44	%

Schedule of Unrealized Losses and Fair Value of Securities

The following table shows the unrealized gross losses and fair value of securities at December 31, 2012, by length of time that individual securities in each category have been in a continuous loss position. Management believes that the declines in fair value of these investments are not an other than temporary impairment.

	Less than 12 months					12 months or more					Total
	Unrealized Gross Losses			Fair Value		Unrealized Gross Losses			Fair Value		Unrealized Gross Losses			Fair Value
Corporate bonds due	$	(292	)	$	37,802	$	(6	)	$	9,994	$	(298	)	$	47,796
U.S. government and agency securities due	(51		)	17,582		—			—		(51		)	17,582
Agency pass-through certificates	(844		)	429,745		(79		)	62,556		(923		)	492,301
	(1,187		)	$	485,129	$	(85	)	$	72,550	(1,272		)	$	557,679