Covered Assets (Tables)

3 Months Ended

Dec. 31, 2012

Schedule of Changes in Carrying Amount and Accretable Yield of Assets

Changes in the carrying amount and accretable yield for acquired impaired and non-impaired loans for the quarter ended December 31, 2012 and the fiscal year ended September 30, 2012 were as follows:



December 31, 2012	Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance at beginning of period	$	50,902		$	74,953		$	23,789		$	213,423
Additions (1)	—			107,075			—			—
Accretion	(12,487		)	12,487			(1,803		)	1,803
Transfers to REO	—			(2,512		)	—			—
Payments received, net	—			(9,591		)	—			(17,044		)
Balance at end of period	$	38,415		$	182,412		$	21,986		$	198,182
(1) includes FDIC covered loans which were acquired as part of the South Valley acquisition.



September 30, 2012	Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance at beginning of period	$	37,072		$	116,061		$	30,370		$	269,888
Reclassification from nonaccretable balance, net	34,690			—			—			—
Accretion	(20,860		)	20,860			(6,581		)	6,581
Transfers to REO	—			(15,905		)	—			—
Payments received, net	—			(46,063		)	—			(63,046		)
Balance at end of period	$	50,902		$	74,953		$	23,789		$	213,423

Schedule of Activity for FDIC Indemnification Asset

The following table shows the year to date activity for the FDIC indemnification asset:



	December 31, 2012			September 30, 2012
	(In thousands)
Balance at beginning of period	$	87,571		$	101,634
Additions (1)	17,364			3,284
Payments made (received)	(4,566		)	(3,456		)
Amortization	(10,224		)	(15,510		)
Accretion	270			1,619
Balance at end of period	$	90,415		$	87,571
(1) includes FDIC covered loans which were acquired as part of the South Valley acquisition.

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

Analysis of Age of Purchased Non-Credit Impaired Loans In Past Due Status

The following tables provide an analysis of the age of purchased non credit-impaired loans in past due status for the periods ended December 31, 2012 and September 30, 2012:



December 31, 2012	Amount of Loans Net of LIP & Chg.-Offs		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loans	Amount of Loans Net of LIP & Chg.-Offs		Current		30		60		90		Total		% based on $
Single-Family Residential	$	34,645	$	31,887	$	50	$	—	$	2,708	$	2,758	7.96	%
Construction - Speculative	102		102		—		—		—		—		NM
Construction - Custom	—		—		—		—		—		—		NM
Land - Acquisition & Development	10,868		9,495		—		36		1,337		1,373		12.63
Land - Consumer Lot Loans	443		345		—		—		98		98		22.12
Multi-Family	26,642		24,934		200		—		1,508		1,708		6.41
Commercial Real Estate	109,792		107,753		192		—		1,847		2,039		1.86
Commercial & Industrial	12,010		8,213		369		—		3,428		3,797		31.62
HELOC	16,556		16,247		29		—		280		309		1.87
Consumer	721		719		1		1		—		2		0.28
	$	211,779	$	199,695	$	841	$	37	$	11,206	$	12,084	5.71	%



September 30, 2012	Amount of Loans Net of LIP & Chg.-Offs		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loans	Amount of Loans Net of LIP & Chg.-Offs		Current		30		60		90		Total		% based on $
Single-Family Residential	$	35,676	$	32,601	$	2,075	$	—	$	1,000	$	3,075	8.62	%
Construction - Speculative	90		90		—		—		—		—		NM
Construction - Custom	—		—		—		—		—		—		NM
Land - Acquisition & Development	11,430		9,922		—		—		1,508		1,508		13.19
Land - Consumer Lot Loans	498		385		—		—		113		113		22.69
Multi-Family	27,645		26,137		—		—		1,508		1,508		5.45
Commercial Real Estate	121,592		115,206		17		4,447		1,922		6,386		5.25
Commercial & Industrial	13,023		9,513		—		69		3,441		3,510		26.95
HELOC	17,971		17,440		97		50		384		531		2.95
Consumer	918		916		—		1		1		2		2.20
	$	228,843	$	212,210	$	2,189	$	4,567	$	9,877	$	16,633	7.27	%

NM - not meaningful