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Fair Value Measurements (Tables)
 3 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value of Assets Measured on Recurring Basis
The following tables present the balance of assets measured at fair value on a recurring basis at December 31, 2013 and September 30, 2013:
 
Fair Value at December 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
Equity securities
$
100,246

 
$
503

 
$
—

 
$
100,749

Obligations of U.S. government
—

 
631,326

 
—

 
631,326

Obligations of states and political subdivisions
—

 
22,640

 
—

 
22,640

Corporate debt securities
—

 
450,113

 
—

 
450,113

Mortgage-backed securities
 
 
 
 
—

 
 
Agency pass-through certificates
—

 
1,633,676

 
—

 
1,633,676

Balance at end of period
$
100,246

 
$
2,738,258

 
$
—

 
$
2,838,504


There were no transfers between, into and/or out of Levels 1, 2 or 3 during the quarter ended December 31, 2013.
 
Fair Value at September 30, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
Equity securities
$
100,726

 
$
511

 
$
—

 
$
101,237

Obligations of U.S. government
—

 
533,975

 
—

 
533,975

Obligations of states and political subdivisions
—

 
22,545

 
—

 
22,545

Obligations of foreign governments
—

 
—

 
—

 
—

Corporate debt securities
—

 
452,015

 
—

 
452,015

Mortgage-backed securities
 
 
 
 
 
 
 
Agency pass-through certificates
—

 
1,251,176

 
—

 
1,251,176

Balance at end of period
$
100,726

 
$
2,260,222

 
$
—

 
$
2,360,948
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 measured at estimated fair value on a nonrecurring basis through the three months ended December 31, 2013 and December 31, 2012, and the total losses resulting from those fair value adjustments for the quarters ended December 31, 2013 and December 31, 2012. These estimated fair values are shown gross of estimated selling costs.
 
 
Through December 31, 2013
 
Quarter
Ended
December 31, 2013
 
 
Level 1
 
Level  2
 
Level  3
 
Total
 
Total Losses
 
(In thousands)
 
Impaired loans (1)
$
—

 
$
—

 
$
5,580

 
$
5,580

 
$
(805
)
 
Covered REO (2)
—

 
—

 
1,286

 
1,286

 
65

 
Real estate held for sale (2)
—

 
—

 
10,342

 
10,342

 
3,725

 
Balance at end of period
$
—

 
$
—

 
$
17,208

 
$
17,208

 
$
2,985

 




 
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, 2013
 
September 30, 2013
 
 
Level in Fair Value Hierarchy
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
 
 
 
(In thousands)
Financial assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
1
 
$
967,348

 
$
967,348

 
$
203,563

 
$
203,563

Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
Equity securities
 
1
 
100,749

 
100,749

 
101,237

 
101,237

Obligations of U.S. government
 
2
 
631,326

 
631,326

 
533,975

 
533,975

Obligations of states and political subdivisions
 
2
 
22,640

 
22,640

 
22,545

 
22,545

Corporate debt securities
 
2
 
450,113

 
450,113

 
452,015

 
452,015

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
2
 
1,633,676

 
1,633,676

 
1,251,176

 
1,251,176

Total available-for-sale securities
 
 
 
2,838,504

 
2,838,504

 
2,360,948

 
2,360,948

Held-to-maturity securities
 
2
 
 
 
 
 
 
 
 
Total held-to-maturity securities
 
 
 
1,630,936

 
1,521,390

 
1,654,666

 
1,582,849

 
 
 
 
 
 
 
 
 
 
 
Loans receivable
 
3
 
7,651,558

 
8,174,920

 
7,528,030

 
8,070,279

Covered loans
 
3
 
252,693

 
255,885

 
295,947

 
300,610

FDIC indemnification asset
 
3
 
57,818

 
56,848

 
64,615

 
62,300

FHLB stock
 
2
 
171,480

 
171,480

 
173,009

 
173,009

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Customer accounts
 
2
 
10,402,726

 
9,728,207

 
9,090,271

 
8,585,068

FHLB advances and other borrowings
 
2
 
1,930,000

 
2,053,910

 
1,930,000

 
2,064,248

The following table presents the fair value and balance sheet classification of derivatives not designated as hedging instruments at December 31, 2013 and September 30, 2013:
 
 
Asset Derivatives
 
Liability Derivatives
 
 
December 31, 2013
 
September 30, 2013
 
December 31, 2013
 
September 30, 2013
 
 
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
 
$
406

 
Other assets
 
$
7

 
Other liabilities
 
$
406

 
Other liabilities
 
$
7

Commitments to purchase MBS
 
AFS securities
 
—

 
AFS securities
 
$
3,188

 
N/A
 
N/A
 
N/A
 
N/A
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 as of December 31, 2013 and September 30, 2013:
 
December 31, 2013
 
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Yield
 
Gains
 
Losses
 
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
1 to 5 years
61,002

 
3,021

 
(196
)
 
63,827

 
1.98

5 to 10 years
237,101

 
—

 
(2,396
)
 
234,705

 
1.64

Over 10 years
335,626

 
465

 
(3,297
)
 
332,794

 
0.93

Equity Securities
 
 
 
 
 
 
 
 
 
Within 1 year
500

 
3

 
—

 
503

 
2.17

1 to 5 years
100,000

 
246

 
—

 
100,246

 
1.80

5 to 10 years
—

 
—

 
—

 
—

 
—

Corporate bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
—

 
—

 
—

 
—

 
—

1 to 5 years
334,278

 
2,051

 
(93
)
 
336,236

 
0.80

5 to 10 years
113,095

 
1,523

 
(741
)
 
113,877

 
1.53

Municipal bonds due
 
 
 
 
 
 
 
 
 
Over 10 years
20,417

 
2,223

 
—

 
22,640

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,636,178

 
4,896

 
(7,398
)
 
1,633,676

 
2.51

 
2,838,197

 
14,428

 
(14,121
)
 
2,838,504

 
2.00

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,630,936

 
1,409

 
(110,955
)
 
1,521,390

 
3.13

 
$
4,469,133

 
$
15,837

 
$
(125,076
)
 
$
4,359,894

 
2.41
%
 
 
September 30, 2013
 
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Yield
 
Gains
Losses
 
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
1 to 5 years
61,002

 
3,393

 
(252
)
 
64,143

 
1.98

5 to 10 years
129,219

 
—

 
(1,547
)
 
127,672

 
0.86

Over 10 years
344,571

 
—

 
(2,411
)
 
342,160

 
0.93

Equity Securities
 
 
 
 
 
 
 
 
 
1 to 5 years
500

 
11

 
—

 
511

 
2.17

5 to 10 years
100,000

 
726

 
—

 
100,726

 
1.80

Corporate bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
19,500

 
3

 
—

 
19,503

 
0.49

1 to 5 years
317,190

 
1,980

 
(130
)
 
319,040

 
0.75

5 to 10 years
113,060

 
1,180

 
(768
)
 
113,472

 
1.53

Municipal bonds due
 
 
 
 
 
 
 
 
 
Over 10 years
20,422

 
2,123

 
—

 
22,545

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,245,400

 
10,270

 
(4,494
)
 
1,251,176

 
2.18

 
2,350,864

 
19,686

 
(9,602
)
 
2,360,948

 
1.70

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,654,666

 
3,387

 
(75,204
)
 
1,582,849

 
3.14

 
$
4,005,530

 
$
23,073

 
$
(84,806
)
 
$
3,943,797

 
2.30
%
Schedule of Unrealized Losses and Fair Value of Securities
The following tables show the unrealized gross losses and fair value of securities at December 31, 2013 and September 30, 2013, 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.
 
December 31, 2013
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
$
(522
)
 
$
54,478

 
$
(312
)
 
$
32,782

 
$
(834
)
 
$
87,260

U.S. government and agency securities due
(5,819
)
 
523,034

 
(70
)
 
13,067

 
(5,889
)
 
536,101

Agency pass-through certificates
(102,068
)
 
2,211,194

 
(16,285
)
 
388,526

 
(118,353
)
 
2,599,720

 
$
(108,409
)
 
$
2,788,706

 
$
(16,667
)
 
$
434,375

 
$
(125,076
)
 
$
3,223,081



September 30, 2013
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
$
(660
)
 
$
52,434

 
$
(238
)
 
$
9,763

 
$
(898
)
 
$
62,197

U.S. government and agency securities due
(4,144
)
 
309,109

 
(66
)
 
14,091

 
(4,210
)
 
323,200

Agency pass-through certificates
(78,291
)
 
1,703,948

 
(1,407
)
 
166,503

 
(79,698
)
 
1,870,451

 
$
(83,095
)
 
$
2,065,491

 
$
(1,711
)
 
$
190,357

 
$
(84,806
)
 
$
2,255,848