Allowance for Losses on Loans (Tables)

9 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Summary of Activity in Allowance for Loan Losses

The following table summarizes the activity in the allowance for loan losses (excluding acquired and covered loans) for the quarter ended June 30, 2014 and fiscal year ended September 30, 2013:

Quarter Ended June 30, 2014	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	63,348	$	(2,530	)	$	4,717	$	(3,175	)	$	62,360
Construction - speculative	6,773		—			2		(388		)	6,387
Construction - custom	1,599		—			—		79			1,678
Land - acquisition & development	6,027		—			85		843			6,955
Land - consumer lot loans	2,974		(86		)	—		(26		)	2,862
Multi-family	4,187		—			—		(46		)	4,141
Commercial real estate	5,924		(32		)	24		773			6,689
Commercial & industrial	20,403		(38		)	4		(1,673		)	18,696
HELOC	975		(18		)	—		58			1,015
Consumer	2,721		(696		)	787		555			3,367
	$	114,931	$	(3,400	)	$	5,619	$	(3,000	)	$	114,150

Fiscal Year Ended September 30, 2013	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	81,815	$	(20,947	)	$	9,416	$	(6,100	)	$	64,184
Construction - speculative	12,060		(1,446		)	501		(2,708		)	8,407
Construction - custom	347		(481		)	—		1,016			882
Land - acquisition & development	15,598		(3,983		)	4,105		(6,555		)	9,165
Land - consumer lot loans	4,937		(1,363		)	40		(62		)	3,552
Multi-family	5,280		(1,043		)	171		(592		)	3,816
Commercial real estate	1,956		(747		)	17		4,369			5,595
Commercial & industrial	7,626		(1,145		)	95		10,038			16,614
HELOC	965		(163		)	—		200			1,002
Consumer	2,563		(2,783		)	2,000		1,744			3,524
	$	133,147	$	(34,101	)	$	16,345	$	1,350		$	116,741

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 June 30, 2014 and September 30, 2013:

June 30, 2014	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	$	62,360	$	5,388,306	1.2	%	$	—	$	78,464	—	%
Construction - speculative	6,327		116,420		5.4		60		10,506		0.6
Construction - custom	1,678		372,789		0.5		—		—		—
Land - acquisition & development	6,955		86,030		8.1		—		2,289		—
Land - consumer lot loans	2,862		98,860		2.9		—		13,059		—
Multi-family	4,141		888,346		0.5		—		5,395		—
Commercial real estate	6,689		495,988		1.4		—		27,863		—
Commercial & industrial	18,696		377,271		5.0		—		40		—
HELOC	1,015		116,174		0.9		—		1,004		—
Consumer	3,367		132,061		2.6		—		—		—
	$	114,090	$	8,072,245	1.4	%	$	60	$	138,620	—	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

September 30, 2013	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	$	64,184	$	5,262,159	1.2	%	$	—	$	96,989	—	%
Construction - speculative	7,307		115,554		6.3		1,100		15,224		7.2
Construction - custom	882		302,722		0.3		—		—		—
Land - acquisition & development	6,943		67,521		10.3		2,222		10,254		21.7
Land - consumer lot loans	3,506		107,216		3.3		46		14,455		0.3
Multi-family	3,711		824,279		0.5		105		7,405		1.4
Commercial real estate	5,595		400,789		1.4		—		14,172		—
Commercial & industrial	16,614		256,954		6.5		—		48		—
HELOC	1,002		111,169		0.9		—		1,017		—
Consumer	3,524		47,141		7.5		—		—		—
	$	113,268	$	7,495,504	1.5	%	$	3,473	$	159,564	2.2	%

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

Summary of Loans Based on Credit Quality Indicators

The following tables provide information on loans based on credit quality indicators (defined above) as of June 30, 2014 and September 30, 2013.

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

June 30, 2014	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,325,757		$	2,993		$	138,021		$	—		$	—		$	5,466,771
Construction - speculative	116,002			—			10,924			—			—			126,926
Construction - custom	372,789			—			—			—			—			372,789
Land - acquisition & development	79,820			—			8,499			—			—			88,319
Land - consumer lot loans	111,459			—			460			—			—			111,919
Multi-family	888,836			—			4,906			—			—			893,742
Commercial real estate	490,940			17,097			15,813			—			—			523,850
Commercial & industrial	312,811			16,508			4,123			110			—			333,552
HELOC	116,929			—			248			—			—			117,177
Consumer	131,910			—			152			—			—			132,062
	7,947,253			36,598			183,146			110			—			8,167,107
Non-impaired acquired loans
Single-family residential	12,014			—			—			—			—			12,014
Construction - speculative	—			—			—			—			—			—
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	663			—			406			—			—			1,069
Land - consumer lot loans	2,654			—			—			—			—			2,654
Multi-family	3,057			—			—			—			—			3,057
Commercial real estate	89,566			2,516			11,133			—			—			103,215
Commercial & industrial	42,571			13,600			4,144			34			—			60,349
HELOC	8,469			—			—			—			—			8,469
Consumer	6,427			—			—			—			—			6,427
	165,421			16,116			15,683			34			—			197,254
Credit-impaired acquired loans
Pool 1 - Construction and land A&D	1,340			—			330			—			—			1,670
Pool 2 - Single-family residential	326			—			—			—			—			326
Pool 3 - Multi-family	—			—			—			—			—			—
Pool 4 - HELOC & other consumer	10,716			—			—			—			—			10,716
Pool 5 - Commercial real estate	50,556			2,155			13,645			—			—			66,356
Pool 6 - Commercial & industrial	712			3,162			—			406			—			4,280
Total credit impaired acquired loans	63,650			5,317			13,975			406			—			83,348
Total gross loans	$	8,176,324		$	58,031		$	212,804		$	550		$	—		$	8,447,709
Total grade as a % of total gross loans	96.9		%	0.7		%	2.4		%	—		%	—		%

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
Non-impaired 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):

June 30, 2014	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)
Single-family residential	$	5,388,454	98.6	%	$	78,317	1.4	%
Construction - speculative	124,960		98.5		1,966		1.5
Construction - custom	372,646		100.0		143		—
Land - acquisition & development	86,024		97.4		2,295		2.6
Land - consumer lot loans	110,040		98.3		1,879		1.7
Multi-family	891,639		99.8		2,103		0.2
Commercial real estate	518,408		99.0		5,442		1.0
Commercial & industrial	333,036		99.8		516		0.2
HELOC	116,207		99.2		970		0.8
Consumer	131,467		99.5		595		0.5
	$	8,072,881	98.8	%	$	94,226	1.2	%

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		2.1
	$	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 June 30, 2014 and September 30, 2013:

June 30, 2014	Internally Assigned Grade															Total Net  Loans
	Pass			Special mention			Substandard			Doubtful			Loss
	(In thousands)
Acquired non-impaired loans:
Single-family residential	$	21,812		$	—		$	2,656		$	—		$	—		$	24,468
Construction - speculative	—			—			—			—			—			—
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	1,441			—			395			—			—			1,836
Land - consumer lot loans	74			—			—			—			—			74
Multi-family	16,472			—			—			—			—			16,472
Commercial real estate	38,410			136			24,486			—			—			63,032
Commercial & industrial	2,831			—			2,748			—			—			5,579
HELOC	12,725			—			—			—			—			12,725
Consumer	501			—			—			—			—			501
	$	94,266		$	136		$	30,285		$	—		$	—		$	124,687
Total grade as a % of total net loans	75.6		%	0.1		%	24.3		%	—		%	—		%
Acquired credit-impaired loans:
Pool 1 - Construction and land A&D	$	9,429		$	—		$	17,919		$	—		$	—		$	27,348
Pool 2 - Single-family residential	16,429			—			982			—			—			17,411
Pool 3 - Multi-family	54			—			836			—			—			890
Pool 4 - HELOC & other consumer	2,938			—			1,227			—			—			4,165
Pool 5 - Commercial real estate	36,298			707			31,377			—			—			68,382
Pool 6 - Commercial & industrial	4,982			—			3,121			534			—			8,637
	$	70,130		$	707		$	55,462		$	534		$	—		$	126,833
										Total covered loans						251,520
													Discount			(42,244		)
													Allowance			(2,069		)
													Covered loans, net			$	207,207

September 30, 2013	Internally Assigned Grade															Total Net  Loans
	Pass			Special mention			Substandard			Doubtful			Loss
	(In thousands)
Acquired non-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		%	—		%	—		%
Acquired 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

Summary of Impaired Loans Based on Type

The following table provides information on impaired loan balances and the related allowances by loan types as of June 30, 2014 and September 30, 2013:

June 30, 2014	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	24,929	$	27,853	$	—		$	22,460
Construction - speculative	1,755		2,378		—			1,762
Construction - custom	360		360		—			180
Land - acquisition & development	1,934		8,931		—			1,794
Land - consumer lot loans	812		910		—			714
Multi-family	130		130		—			130
Commercial real estate	28,024		34,904		—			23,625
Commercial & industrial	3,916		24,183		—			3,809
HELOC	1,154		1,835		—			708
Consumer	439		554		—			380
	63,453		102,038		—			55,562
With an allowance recorded:
Single-family residential	333,814		339,578		10,956			333,527
Construction - speculative	8,751		9,181		60			8,927
Construction - custom	1,196		1,196		—			1,196
Land - acquisition & development	5,092		6,032		—			5,085
Land - consumer lot loans	12,922		13,305		—			12,852
Multi-family	5,266		5,486		—			5,278
Commercial real estate	19,292		20,160		—			16,837
Commercial & industrial	23		23		—			27
HELOC	1,198		1,198		—			1,198
Consumer	236		236		—			152
	387,790		396,395		11,016		(1)	385,079
Total:
Single-family residential	358,743		367,431		10,956			355,987
Construction - speculative	10,506		11,559		60			10,689
Construction - custom	1,556		1,556		—			1,376
Land - acquisition & development	7,026		14,963		—			6,879
Land - consumer lot loans	13,734		14,215		—			13,566
Multi-family	5,396		5,616		—			5,408
Commercial real estate	47,316		55,064		—			40,462
Commercial & industrial	3,939		24,206		—			3,836
HELOC	2,352		3,033		—			1,906
Consumer	675		790		—			532
	$	451,243	$	498,433	$	11,016	(1)	$	440,641

(1)Includes $60,000 of specific reserves and $10,956,000 included in the general reserves.

September 30, 2013	Recorded Investment		Unpaid Principal Balance		Related Allowance			2013 Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	33,883	$	38,928	$	—		$	21,458
Construction - speculative	3,891		4,099		—			3,339
Construction - custom	—		—		—			—
Land - acquisition & development	3,020		10,705		—			2,548
Land - consumer lot loans	3,186		3,376		—			1,839
Multi-family	4,929		4,929		—			1,734
Commercial real estate	23,537		31,876		—			9,651
Commercial & industrial	7,279		31,197		—			3,123
HELOC	446		946		—			133
Consumer	601		618		—			127
	80,772		126,674		—			43,952
With an allowance recorded:
Single-family residential	335,140		341,910		15,137			330,407
Construction - speculative	8,892		9,342		1,100			12,362
Construction - custom	—		—		—			—
Land - acquisition & development	2,598		4,002		—			8,315
Land - consumer lot loans	12,631		13,014		2,222			12,301
Multi-family	5,958		6,178		46			7,731
Commercial real estate	7,539		8,476		105			9,321
Commercial & industrial	56		56		—			11
HELOC	938		938		—			858
Consumer	33		33		—			9
	373,785		383,949		18,610		(1)	381,315
Total:
Single-family residential	369,023		380,838		15,137			351,865
Construction - speculative	12,783		13,441		1,100			15,701
Construction - custom	—		—		—			—
Land - acquisition & development	5,618		14,707		—			10,863
Land - consumer lot loans	15,817		16,390		2,222			14,140
Multi-family	10,887		11,107		46			9,465
Commercial real estate	31,076		40,352		105			18,972
Commercial & industrial	7,335		31,253		—			3,134
HELOC	1,384		1,884		—			991
Consumer	634		651		—			136
	$	454,557	$	510,623	$	18,610	(1)	$	425,267

(1) Includes $3,473,000 of specific reserves and $15,137,000 included in the general reserves.