Covered Assets (Tables)

3 Months Ended

Dec. 31, 2013

Schedule of Changes in Carrying Amount and Accretable Yield of Assets

hanges in the carrying amount and accretable yield for acquired impaired and non-impaired loans for the quarter ended December 31, 2013 and the fiscal year ended September 30, 2013 were as follows:



December 31, 2013	Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance at beginning of period	$	78,277		$	138,091		$	17,263		$	157,856
Accretion	(7,862		)	7,862			(1,347		)	1,347
Transfers to REO	—			(399		)	—			—
Payments received, net	—			(39,402		)	—			(12,662		)
Balance at end of period	$	70,415		$	106,152		$	15,916		$	146,541



September 30, 2013	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)	43,299			107,946			—			—
Reclassification from nonaccretable balance, net	17,850			—			—			—
Accretion	(33,774		)	33,774			(6,526		)	6,526
Transfers to REO	—			(11,196		)	—			—
Payments received, net	—			(67,386		)	—			(62,093		)
Balance at end of period	$	78,277		$	138,091		$	17,263		$	157,856
(1) includes FDIC covered loans which were acquired as part of the South Valley acquisition.

Schedule of Activity for FDIC Indemnification Asset

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



	December 31, 2013			September 30, 2013
	(In thousands)
Balance at beginning of fiscal year 2014 and 2013	$	64,615		$	87,571
Additions (1)	—			18,101
Payments made (received)	(1,295		)	(13,421		)
Amortization	(5,717		)	(28,722		)
Accretion	215			1,086
Balance at end of period	$	57,818		$	64,615
(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 above) as of December 31, 2013 and September 30, 2013.

Credit Risk Profile by Internally Assigned Grade (excludes covered loans):



December 31, 2013	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,250,349		$	4,572		$	166,975		$	—		$	—		$	5,421,896
Construction - speculative	113,527			3,724			18,617			—			—			135,868
Construction - custom	333,954			—			—			—			—			333,954
Land - acquisition & development	62,085			—			9,990			—			—			72,075
Land - consumer lot loans	118,579			—			627			—			—			119,206
Multi-family	833,758			1,241			7,344			—			—			842,343
Commercial real estate	395,736			17,808			19,817			—			—			433,361
Commercial & industrial	256,375			16,332			1,725			—			—			274,432
HELOC	111,577			—			—			—			—			111,577
Consumer	43,715			—			427			—			—			44,142
	7,519,655			43,677			225,522			—			—			7,788,854

Acquired loans
Single-family residential	13,856			—			—			—			—			13,856
Construction - speculative	—			—			—			—			—			—
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	794			—			412			—			—			1,206
Land - consumer lot loans	3,261			—			—			—			—			3,261
Multi-family	3,636			—			137			—			—			3,773
Commercial real estate	92,287			3,543			21,062			146			—			117,038
Commercial & industrial	65,882			1,041			5,671			—			—			72,594
HELOC	9,538			—			—			—			—			9,538
Consumer	7,754			—			—			—			—			7,754
	197,008			4,584			27,282			146			—			229,020

Credit impaired acquired loans
Pool 1 - Construction and land A&D	1,434			—			791			—			—			2,225
Pool 2 - Single-family residential	331			—			—			—			—			331
Pool 3 - Multi-family	—			—			—			—			—			—
Pool 4 - HELOC & other consumer	10,898			—			—			—			—			10,898
Pool 5 - Commercial real estate	54,278			—			17,563			—			—			71,841
Pool 6 - Commercial & industrial	1,178			3,321			96			2,545			—			7,140
Total credit impaired acquired loans	68,119			3,321			18,450			2,545			—			92,435
Total gross loans	$	7,784,782		$	51,582		$	271,254		$	2,691		$	—		$	8,110,309

Total grade as a % of total gross loans	96.0		%	0.6		%	3.4		%	—		%	—		%



September 30, 2013	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,184,101		$	4,595		$	170,453		$	—		$	—		$	5,359,149
Construction - speculative	99,436			3,199			28,143			—			—			130,778
Construction - custom	302,722			—			—			—			—			302,722
Land - acquisition & development	64,355			775			12,645			—			—			77,775
Land - consumer lot loans	121,039			—			632			—			—			121,671
Multi-family	819,911			2,114			9,659			—			—			831,684
Commercial real estate	373,012			21,652			20,297			—			—			414,961
Commercial & industrial	240,441			1,049			1,709			—			—			243,199
HELOC	112,186			—			—			—			—			112,186
Consumer	46,720			—			421			—			—			47,141
	7,363,923			$	33,384		$	243,959		$	—		$	—		$	7,641,266

Acquired loans
Single-family residential	14,468			—			—			—			—			14,468
Construction - speculative	—			—			—			—			—			—
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	312			—			1,177			—			—			1,489
Land - consumer lot loans	3,313			—			—			—			—			3,313
Multi-family	3,227			—			687			—			—			3,914
Commercial real estate	105,055			4,190			24,178			—			—			133,423
Commercial & industrial	64,933			1,309			9,084			—			—			75,326
HELOC	10,179			—			—			—			—			10,179
Consumer	8,267			—			—			—			—			8,267
	209,754			5,499			35,126			—			—			250,379

Credit impaired acquired loans
Pool 1 - Construction and land A&D	980			461			955			—			—			2,396
Pool 2 - Single-family residential	333			—			—			—			—			333
Pool 3 - Multi-family	—			—			—			—			—			—
Pool 4 - HELOC & other consumer	11,337			—			—			—			—			11,337
Pool 5 - Commercial real estate	52,509			3,155			21,245			—			—			76,909
Pool 6 - Commercial & industrial	881			—			7,044			—			—			7,925
Total credit impaired acquired loans	66,040			3,616			29,244			—			—			98,900
Total gross loans	$	7,639,717		$	42,499		$	308,329		$	—		$	—		$	7,990,545
Total grade as a % of total gross loans	95.6		%	0.5		%	3.9		%	—		%	—		%

Credit Risk Profile Based on Payment Activity (excludes acquired and covered loans):



December 31, 2013	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross Loans		Amount		% of Total Gross Loans
	(In thousands)
Single-family residential	$	5,332,821	98.4	%	$	89,075	1.6	%
Construction - speculative	132,815		97.8		3,053		2.2
Construction - custom	333,954		100.0		—		—
Land - acquisition & development	69,262		96.1		2,813		3.9
Land - consumer lot loans	115,658		97.0		3,548		3.0
Multi-family	839,849		99.7		2,494		0.3
Commercial real estate	421,748		97.3		11,613		2.7
Commercial & industrial	273,777		99.8		655		0.2
HELOC	111,106		99.6		471		0.4
Consumer	43,147		97.7		995		2.3
	$	7,674,137	98.5	%	$	114,717	1.5	%



September 30, 2013	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross Loans		Amount		% of Total Gross Loans
	(In thousands)
Single-family residential	$	5,258,688	98.1	%	$	100,460	1.9	%
Construction - speculative	126,218		96.5		4,560		3.5
Construction - custom	302,722		100.0		—		—
Land - acquisition & development	74,872		96.3		2,903		3.7
Land - consumer lot loans	118,334		97.3		3,337		2.7
Multi-family	825,111		99.2		6,573		0.8
Commercial real estate	389,423		97.1		11,736		2.9
Commercial & industrial	256,525		99.8		477		0.2
HELOC	111,923		99.8		263		0.2
Consumer	46,151		97.9		990		0.2
	$	7,509,967	98.3	%	$	131,299	1.7	%

The following tables provide information on covered loans based on credit quality indicators (defined in Note E ) as of December 31, 2013 and September 30, 2013:



December 31, 2013	Internally Assigned Grade															Total Net Loans
	Pass			Special mention			Substandard			Doubtful			Loss
	(In thousands)
Purchased non credit-impaired loans:
Single-family residential	$	23,971		$	—		$	2,717		$	—		$	—		$	26,688
Construction - speculative	—			—			—			—			—			—
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	3,648			—			719			—			—			4,367
Land - consumer lot loans	197			—			33			—			—			230
Multi-family	17,000			—			—			—			—			17,000
Commercial real estate	55,109			9,136			18,126			—			—			82,371
Commercial & industrial	4,599			—			3,752			—			—			8,351
HELOC	14,164			—			39			—			—			14,203
Consumer	588			—			—			—			—			588
	119,276			9,136			25,386			—			—			153,798
Total grade as a % of total net loans	77.6		%	5.9		%	16.5		%	—		%	—		%

Purchased credit-impaired loans:
Pool 1 - Construction and land A&D	15,610			360			25,727			—			—			41,697
Pool 2 - Single-family residential	20,478			—			92			—			—			20,570
Pool 3 - Multi-family	56			—			1,063			—			—			1,119
Pool 4 - HELOC & other consumer	4,098			—			1,775			—			—			5,873
Pool 5 - Commercial real estate	35,694			3,799			39,464			—			—			78,957
Pool 6 - Commercial & industrial	6,604			485			4,101			—			—			11,190
	$	82,540		$	4,644		$	72,222		$	—		$	—		159,406
										Total covered loans						313,204
													Discount			(60,511		)
													Allowance			—
													Covered loans, net			$	252,693



September 30, 2013	Internally Assigned Grade															Total Net Loans
	Pass			Special mention			Substandard			Doubtful			Loss
	(In thousands)
Purchased non credit-impaired loans:
Single-family residential	$	26,426		$	—		$	2,034		$	—		$	—		$	28,460
Construction - speculative	—			—			—			—			—			—
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	3,069			1,019			722			—			—			4,810
Land - consumer lot loans	245			—			—			—			—			245
Multi-family	17,217			—			1,635			—			—			18,852
Commercial real estate	56,120			9,235			24,144			—			—			89,499
Commercial & industrial	5,175			500			3,741			—			—			9,416
HELOC	14,750			—			—			—			—			14,750
Consumer	604			—			—			—			—			604
	123,606			10,754			32,276			—			—			166,636
Total grade as a % of total net loans	74.2		%	6.4		%	19.4		%	—		%	—		%

Purchased credit-impaired loans:
Pool 1 - Construction and land A&D	14,361			4,296			25,363			—			—			44,020
Pool 2 - Single-family residential	21,541			—			—			—			—			21,541
Pool 3 - Multi-family	4,131			—			1,100			—			—			5,231
Pool 4 - HELOC & other consumer	4,111			—			1,880			—			—			5,991
Pool 5 - Commercial real estate	36,494			15,113			53,946			—			—			105,553
Pool 6 - Commercial & industrial	4,265			204			8,807			—			—			13,276
	$	84,903		$	19,613		$	91,096		$	—		$	—		195,612
										Total covered loans						362,248
													Discount			(66,301		)
													Allowance			—
													Covered loans, net			$	295,947

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 as of December 31, 2013 and September 30, 2013:



December 31, 2013	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	$	26,688	$	24,351	$	286	$	63	$	1,988	$	2,337	8.76	%
Construction - Speculative	—		—		—		—		—		—		NM
Construction - Custom	—		—		—		—		—		—		NM
Land - Acquisition & Development	4,367		4,331		—		—		36		36		0.82
Land - Consumer Lot Loans	230		196		—		—		34		34		14.78
Multi-Family	17,000		17,000		—		—		—		—		—
Commercial Real Estate	82,371		80,820		—		—		1,551		1,551		1.88
Commercial & Industrial	8,351		8,308		—		43		—		43		0.51
HELOC	14,203		14,164		—		—		39		39		0.27
Consumer	588		588		—		—		—		—		—
	$	153,798	$	149,758	$	286	$	106	$	3,648	$	4,040	1.51	%



September 30, 2013	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	$	28,460	$	27,411	$	78	$	—	$	971	$	1,049	3.69	%
Construction - Speculative	—		—		—		—		—		—		NM
Construction - Custom	—		—		—		—		—		—		NM
Land - Acquisition & Development	4,810		4,774		—		—		36		36		0.75
Land - Consumer Lot Loans	245		199		—		—		46		46		18.78
Multi-Family	18,852		17,511		—		—		1,341		1,341		7.11
Commercial Real Estate	89,499		84,949		2,779		455		1,316		4,550		5.08
Commercial & Industrial	9,416		9,416		—		—		—		—		—
HELOC	14,750		14,334		103		74		239		416		2.82
Consumer	604		601		3		—		—		3		0.50
	$	166,636	$	159,195	$	2,963	$	529	$	3,949	$	7,441	4.47	%

NM - not meaningful