x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-1661606 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
425 Pike Street Seattle, Washington 98101 | ||
(Address of principal executive offices and zip code) | ||
(206) 624-7930 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | o |
Title of class: | at August 6, 2015 |
Common stock, $1.00 par value | 93,982,148 |
The Consolidated Financial Statements of Washington Federal, Inc. and Subsidiaries filed as a part of the report are as follows: | ||||
June 30, 2015 | September 30, 2014 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 349,550 | $ | 781,843 | |||
Available-for-sale securities, at fair value | 2,624,374 | 3,049,442 | |||||
Held-to-maturity securities, at amortized cost | 1,586,514 | 1,548,265 | |||||
Loans receivable, net | 8,645,609 | 8,148,322 | |||||
Covered loans, net | 77,311 | 176,476 | |||||
Interest receivable | 39,550 | 52,037 | |||||
Premises and equipment, net | 267,835 | 257,543 | |||||
Real estate held for sale | 55,491 | 55,072 | |||||
Real estate held for investment | 4,336 | 4,808 | |||||
Covered real estate held for sale | 4,434 | 24,082 | |||||
FDIC indemnification asset | 18,783 | 36,860 | |||||
FHLB and FRB stock | 103,189 | 158,839 | |||||
Bank owned life insurance | 101,720 | — | |||||
Intangible assets, net | 300,109 | 302,909 | |||||
Federal and state income tax assets, net | 11,286 | 16,515 | |||||
Other assets | 180,405 | 143,028 | |||||
$ | 14,370,496 | $ | 14,756,041 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities | |||||||
Customer accounts | |||||||
Transaction deposit accounts | $ | 5,696,536 | $ | 5,490,687 | |||
Time deposit accounts | 4,881,849 | 5,226,241 | |||||
10,578,385 | 10,716,928 | ||||||
FHLB advances | 1,730,000 | 1,930,000 | |||||
Advance payments by borrowers for taxes and insurance | 30,656 | 29,004 | |||||
Accrued expenses and other liabilities | 72,334 | 106,826 | |||||
12,411,375 | 12,782,758 | ||||||
Stockholders’ equity | |||||||
Common stock, $1.00 par value, 300,000,000 shares authorized; 133,688,179 and 133,322,909 shares issued; 93,982,148 and 98,404,705 shares outstanding | 133,688 | 133,323 | |||||
Paid-in capital | 1,643,243 | 1,638,211 | |||||
Accumulated other comprehensive income, net of taxes | 10,977 | 20,708 | |||||
Treasury stock, at cost; 39,706,031 and 34,918,204 shares | (628,157 | ) | (525,108 | ) | |||
Retained earnings | 799,370 | 706,149 | |||||
1,959,121 | 1,973,283 | ||||||
$ | 14,370,496 | $ | 14,756,041 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
INTEREST INCOME | |||||||||||||||
Loans and covered assets | $ | 107,250 | $ | 108,089 | $ | 324,817 | $ | 321,650 | |||||||
Mortgage-backed securities | 16,995 | 20,507 | 54,313 | 60,947 | |||||||||||
Investment securities and cash equivalents | 5,055 | 6,415 | 16,084 | 16,023 | |||||||||||
129,300 | 135,011 | 395,214 | 398,620 | ||||||||||||
INTEREST EXPENSE | |||||||||||||||
Customer accounts | 12,485 | 14,238 | 38,504 | 44,517 | |||||||||||
FHLB advances and other borrowings | 16,250 | 17,494 | 50,082 | 51,877 | |||||||||||
28,735 | 31,732 | 88,586 | 96,394 | ||||||||||||
Net interest income | 100,565 | 103,279 | 306,628 | 302,226 | |||||||||||
Reversal of provision for loan losses | (1,932 | ) | (3,000 | ) | (11,381 | ) | (11,936 | ) | |||||||
Net interest income after reversal of provision for loan losses | 102,497 | 106,279 | 318,009 | 314,162 | |||||||||||
OTHER INCOME | |||||||||||||||
Gain on sale of investments | 9,639 | — | 9,639 | — | |||||||||||
Prepayment penalty on long-term debt | (7,941 | ) | — | (10,554 | ) | — | |||||||||
Loan fee income | 1,915 | 2,297 | 6,028 | 5,668 | |||||||||||
Deposit fee income | 5,156 | 4,036 | 16,538 | 9,120 | |||||||||||
Other income | 3,042 | 1,739 | 6,380 | 5,774 | |||||||||||
11,811 | 8,072 | 28,031 | 20,562 | ||||||||||||
OTHER EXPENSE | |||||||||||||||
Compensation and benefits | 29,824 | 28,946 | 89,453 | 81,908 | |||||||||||
Occupancy | 8,492 | 7,468 | 24,866 | 21,864 | |||||||||||
FDIC insurance premiums | 2,377 | 2,978 | 5,431 | 8,679 | |||||||||||
Information technology | 3,783 | 3,505 | 11,695 | 10,365 | |||||||||||
Product delivery | 6,175 | 4,577 | 17,222 | 9,961 | |||||||||||
Other expense | 6,068 | 5,819 | 18,975 | 16,694 | |||||||||||
56,719 | 53,293 | 167,642 | 149,471 | ||||||||||||
Gain (loss) on real estate acquired through foreclosure, net | 3,188 | (2,056 | ) | 4,976 | (3,454 | ) | |||||||||
Income before income taxes | 60,777 | 59,002 | 183,374 | 181,799 | |||||||||||
Income tax provision | 21,727 | 21,092 | 65,556 | 64,996 | |||||||||||
NET INCOME | $ | 39,050 | $ | 37,910 | $ | 117,818 | $ | 116,803 | |||||||
PER SHARE DATA | |||||||||||||||
Basic earnings | $ | 0.41 | $ | 0.38 | $ | 1.22 | $ | 1.15 | |||||||
Diluted earnings | 0.41 | 0.37 | 1.22 | 1.14 | |||||||||||
Dividends paid on common stock per share | 0.13 | 0.10 | 0.41 | 0.30 | |||||||||||
Basic weighted average number of shares outstanding | 94,466,524 | 100,979,219 | 96,335,777 | 101,777,112 | |||||||||||
Diluted weighted average number of shares outstanding, including dilutive stock options | 94,904,262 | 101,393,936 | 96,726,085 | 102,234,350 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 39,050 | $ | 37,910 | $ | 117,818 | $ | 116,803 | |||||||
Other comprehensive income (loss) net of tax: | |||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | (35,001 | ) | 22,026 | (21,378 | ) | 28,527 | |||||||||
Reclassification adjustment of net gain (loss) from sale | |||||||||||||||
of available-for-sale securities included in net income | 9,639 | — | 9,639 | — | |||||||||||
Related tax benefit (expense) | 9,320 | (8,095 | ) | 4,314 | — | ||||||||||
(16,042 | ) | 13,931 | (7,425 | ) | 28,527 | ||||||||||
Net unrealized gain (loss) on long-term borrowing hedge | 5,587 | — | (3,646 | ) | — | ||||||||||
Related tax benefit (expense) | (2,053 | ) | — | 1,340 | (10,484 | ) | |||||||||
3,534 | — | (2,306 | ) | (10,484 | ) | ||||||||||
Other comprehensive income (loss) net of tax | (12,508 | ) | 13,931 | (9,731 | ) | 18,043 | |||||||||
Comprehensive income | $ | 26,542 | $ | 51,841 | $ | 108,087 | $ | 134,846 |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total | |||||||||||||
(In thousands) | ||||||||||||||||||
Balance at October 1, 2014 | $ | 133,323 | $ | 1,638,211 | $ | 706,149 | $ | 20,708 | $ | (525,108 | ) | $ | 1,973,283 | |||||
Net income | 117,818 | 117,818 | ||||||||||||||||
Other comprehensive income (loss) | (9,731 | ) | (9,731 | ) | ||||||||||||||
Dividends on common stock | (24,597 | ) | (24,597 | ) | ||||||||||||||
Compensation expense related to common stock options | 900 | 900 | ||||||||||||||||
Proceeds from exercise of common stock options | 106 | 1,570 | 1,676 | |||||||||||||||
Restricted stock expense | 259 | 2,562 | 2,821 | |||||||||||||||
Treasury stock acquired | (103,049 | ) | (103,049 | ) | ||||||||||||||
Balance at June 30, 2015 | $ | 133,688 | $ | 1,643,243 | $ | 799,370 | $ | 10,977 | $ | (628,157 | ) | $ | 1,959,121 | |||||
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total | |||||||||||||
(In thousands) | ||||||||||||||||||
Balance at October 1, 2013 | $ | 132,573 | $ | 1,625,051 | $ | 594,450 | $ | 6,378 | $ | (420,817 | ) | $ | 1,937,635 | |||||
Net income | 116,803 | 116,803 | ||||||||||||||||
Other comprehensive income (loss) | 18,043 | 18,043 | ||||||||||||||||
Dividends on common stock | (31,393 | ) | (31,393 | ) | ||||||||||||||
Compensation expense related to common stock options | 900 | 900 | ||||||||||||||||
Proceeds from exercise of common stock options | 759 | 9,599 | 10,358 | |||||||||||||||
Restricted stock expense | — | 2,520 | 2,520 | |||||||||||||||
Treasury stock acquired | (64,231 | ) | (64,231 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | 133,332 | $ | 1,638,070 | $ | 679,860 | $ | 24,421 | $ | (485,048 | ) | $ | 1,990,635 | |||||
Nine Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 117,818 | $ | 116,803 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 19,075 | 8,467 | |||||
Cash received from (paid to) FDIC under loss share | (714 | ) | 949 | ||||
Stock option compensation expense | 900 | 900 | |||||
Reversal of provision for loan losses | (11,381 | ) | (11,936 | ) | |||
(Gain) loss on investment securities and real estate held for sale | (25,817 | ) | 598 | ||||
Prepayment penalty from repayment of borrowings | 10,554 | — | |||||
Decrease (increase) in accrued interest receivable | 12,487 | (2,174 | ) | ||||
Decrease (increase) in FDIC loss share receivable | 1,795 | (2,029 | ) | ||||
Decrease in federal and state income tax | 10,883 | 8,258 | |||||
Increase in cash surrender value in bank owned life insurance | (1,720 | ) | — | ||||
Increase in other assets | (37,376 | ) | (14,514 | ) | |||
Decrease in accrued expenses and other liabilities | (23,738 | ) | (10,487 | ) | |||
Net cash provided by operating activities | 72,766 | 94,835 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net loan originations | (204,527 | ) | (329,076 | ) | |||
Loans purchased | (183,406 | ) | — | ||||
FHLB & FRB stock redemption | 55,649 | 9,952 | |||||
Available-for-sale securities purchased | (329,490 | ) | (1,080,476 | ) | |||
Principal payments and maturities of available-for-sale securities | 502,561 | 363,103 | |||||
Proceeds on available-for-sale securities sold | 244,749 | — | |||||
Held-to-maturity securities purchased | (249,382 | ) | — | ||||
Principal payments and maturities of held-to-maturity securities | 207,954 | 68,981 | |||||
Net cash received from acquisitions | — | 1,776,660 | |||||
Proceeds from sales of real estate owned and held for investment | 45,603 | 49,550 | |||||
Proceeds from sales of covered REO | 17,474 | 17,216 | |||||
Purchase of bank owned life insurance | (100,000 | ) | — | ||||
Premises and equipment purchased and REO improvements | (24,582 | ) | (35,647 | ) | |||
Net cash provided by (used in) investing activities | (17,397 | ) | 840,263 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net decrease in customer accounts | (138,390 | ) | (178,161 | ) | |||
Repayments of borrowings | (210,554 | ) | — | ||||
Proceeds from exercise of common stock options and related tax benefit | 1,676 | 10,358 | |||||
Dividends paid on common stock | (38,997 | ) | (31,393 | ) | |||
Treasury stock purchased | (103,049 | ) | (64,231 | ) | |||
Increase (decrease) in advance payments by borrowers for taxes and insurance | 1,652 | (13,930 | ) | ||||
Net cash used in financing activities | (487,662 | ) | (277,357 | ) | |||
Increase (decrease) in cash and cash equivalents | (432,293 | ) | 657,741 | ||||
Cash and cash equivalents at beginning of period | 781,843 | 203,563 | |||||
Cash and cash equivalents at end of period | $ | 349,550 | $ | 861,304 |
Nine Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Non-cash investing activities | |||||||
Non-covered real estate acquired through foreclosure | $ | 23,940 | $ | 32,818 | |||
Covered real estate acquired through foreclosure | 1,892 | 6,163 | |||||
Cash paid during the period for | |||||||
Interest | 88,511 | 97,485 | |||||
Income taxes | 48,096 | 54,072 | |||||
The following summarizes the non-cash activities related to acquisitions | |||||||
Fair value of assets and intangibles acquired, including goodwill | $ | — | $ | 80,384 | |||
Fair value of liabilities assumed | — | (1,857,044 | ) | ||||
Net fair value of assets (liabilities) | $ | — | $ | (1,776,660 | ) | ||
Adjusted Fair Value Recorded by | ||||
Washington Federal | ||||
(In thousands) | ||||
Assets: | ||||
Cash | $ | 1,776,660 | ||
Loans receivable, net | 12,881 | |||
Property and equipment, net | 25,097 | |||
Core deposit intangible | 11,040 | |||
Goodwill | 31,225 | |||
Other assets | 70 | |||
Total Assets | 1,856,973 | |||
Liabilities: | ||||
Customer accounts | 1,853,798 | |||
Other liabilities | 3,175 | |||
Total Liabilities | 1,856,973 | |||
Net assets acquired | $ | — | ||
June 30, 2015 | September 30, 2014 | ||||||||||||
(In thousands) | |||||||||||||
Non-acquired loans | |||||||||||||
Single-family residential | $ | 5,549,746 | 60.1 | % | $ | 5,560,203 | 64.1 | % | |||||
Construction - speculative | 181,668 | 2.0 | 140,060 | 1.6 | |||||||||
Construction - custom | 375,425 | 4.1 | 385,824 | 4.5 | |||||||||
Land - acquisition & development | 87,382 | 0.9 | 77,832 | 0.9 | |||||||||
Land - consumer lot loans | 102,495 | 1.1 | 108,623 | 1.3 | |||||||||
Multi-family | 1,089,682 | 11.8 | 917,286 | 10.6 | |||||||||
Commercial real estate | 808,539 | 8.7 | 591,336 | 6.9 | |||||||||
Commercial & industrial | 451,478 | 4.9 | 379,226 | 4.4 | |||||||||
HELOC | 122,870 | 1.3 | 116,042 | 1.4 | |||||||||
Consumer | 205,932 | 2.2 | 132,590 | 1.5 | |||||||||
Total non-acquired loans | 8,975,217 | 97.1 | 8,409,022 | 97.2 | |||||||||
Non-impaired acquired loans | |||||||||||||
Single-family residential | 12,895 | 0.1 | 11,716 | 0.1 | |||||||||
Construction - speculative | — | — | — | — | |||||||||
Construction - custom | — | — | — | — | |||||||||
Land - acquisition & development | 1,028 | — | 905 | — | |||||||||
Land - consumer lot loans | 2,472 | — | 2,507 | — | |||||||||
Multi-family | 3,692 | — | 2,999 | — | |||||||||
Commercial real estate | 102,089 | 1.1 | 97,898 | 1.1 | |||||||||
Commercial & industrial | 57,614 | 0.6 | 51,386 | 0.6 | |||||||||
HELOC | 6,414 | 0.1 | 8,274 | 0.1 | |||||||||
Consumer | 2,916 | — | 5,670 | 0.1 | |||||||||
Total non-impaired acquired loans | 189,120 | 1.9 | 181,355 | 2.0 | |||||||||
Credit-impaired acquired loans | |||||||||||||
Single-family residential | 6,288 | 0.1 | 325 | — | |||||||||
Construction - speculative | — | — | — | — | |||||||||
Land - acquisition & development | 1,842 | — | 1,622 | — | |||||||||
Land - consumer lot loans | 496 | — | — | — | |||||||||
Multi-family | — | — | — | — | |||||||||
Commercial real estate | 71,196 | 0.8 | 63,723 | 0.7 | |||||||||
Commercial & industrial | 3,881 | — | 3,476 | — | |||||||||
HELOC | 8,553 | 0.1 | 10,139 | 0.1 | |||||||||
Consumer | 108 | — | 55 | — | |||||||||
Total credit-impaired acquired loans | 92,364 | 1.0 | 79,340 | 0.8 | |||||||||
Total loans | |||||||||||||
Single-family residential | 5,568,929 | 60.3 | 5,572,244 | 64.2 | |||||||||
Construction - speculative | 181,668 | 2.0 | 140,060 | 1.6 | |||||||||
Construction - custom | 375,425 | 4.1 | 385,824 | 4.5 | |||||||||
Land - acquisition & development | 90,252 | 0.9 | 80,359 | 0.9 | |||||||||
Land - consumer lot loans | 105,463 | 1.1 | 111,130 | 1.3 | |||||||||
Multi-family | 1,093,374 | 11.8 | 920,285 | 10.6 | |||||||||
Commercial real estate | 981,824 | 10.6 | 752,957 | 8.7 |
Commercial & industrial | 512,973 | 5.5 | 434,088 | 5.0 | |||||||||
HELOC | 137,837 | 1.5 | 134,455 | 1.6 | |||||||||
Consumer | 208,956 | 2.2 | 138,315 | 1.6 | |||||||||
Total Loans | 9,256,701 | 100 | % | 8,669,717 | 100 | % | |||||||
Less: | |||||||||||||
Allowance for probable losses | 105,611 | 112,347 | |||||||||||
Loans in process | 438,941 | 346,172 | |||||||||||
Discount on acquired loans | 28,399 | 25,391 | |||||||||||
Deferred net origination fees | 38,141 | 37,485 | |||||||||||
611,092 | 521,395 | ||||||||||||
$ | 8,645,609 | $ | 8,148,322 |
June 30, 2015 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Net Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance as of beginning of period | $ | 32,591 | $ | 57,771 | $ | 4,254 | $ | 177,440 | |||||||
Transfer from covered loans (2) | 23,167 | 15,866 | 1,482 | 33,649 | |||||||||||
Additions | — | — | 346 | — | |||||||||||
Accretion | (11,501 | ) | 11,501 | (2,427 | ) | 2,427 | |||||||||
Transfers to REO | — | (458 | ) | — | — | ||||||||||
Payments received, net | — | (18,140 | ) | — | (27,556 | ) | |||||||||
Balance as of end of period | $ | 44,257 | $ | 66,540 | $ | 3,655 | $ | 185,960 | |||||||
(1) reclassification due to improvements in expected cash flows of the underlying loans | |||||||||||||||
(2) reclassification from covered to non-covered due to expiration of loss share agreement |
June 30, 2014 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Net Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance as of beginning of period | $ | 37,236 | $ | 69,718 | $ | 4,977 | $ | 245,373 | |||||||
Reclassification from nonaccretable balance, net (1) | 7,300 | — | — | — | |||||||||||
Accretion | (8,884 | ) | 8,884 | (606 | ) | 606 | |||||||||
Transfers to REO | — | (1,188 | ) | — | (4,710 | ) | |||||||||
Payments received, net | — | (17,616 | ) | — | (48,988 | ) | |||||||||
Balance as of end of period | $ | 35,652 | $ | 59,798 | $ | 4,371 | $ | 192,281 | |||||||
(1) reclassification due to improvements in expected cash flows of the underlying loans. |
June 30, 2015 | September 30, 2014 | ||||||||||||
(In thousands) | |||||||||||||
Non-accrual loans: | |||||||||||||
Single-family residential | $ | 56,638 | 86.7 | % | $ | 74,067 | 84.8 | % | |||||
Construction - speculative | 762 | 1.2 | 1,477 | 1.7 | |||||||||
Construction - custom | 355 | 0.5 | — | — | |||||||||
Land - acquisition & development | — | — | 811 | 0.9 | |||||||||
Land - consumer lot loans | 1,308 | 2.0 | 2,637 | 3.0 | |||||||||
Multi-family | 786 | 1.2 | 1,742 | 2.0 | |||||||||
Commercial real estate | 2,852 | 4.4 | 5,106 | 5.8 | |||||||||
Commercial & industrial | 1,205 | 1.8 | 7 | — | |||||||||
HELOC | 889 | 1.4 | 795 | 0.9 | |||||||||
Consumer | 513 | 0.8 | 789 | 0.9 | |||||||||
Total non-accrual loans | $ | 65,308 | 100 | % | $ | 87,431 | 100 | % |
June 30, 2015 | Amount of Loans | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loan | Net of LIP & Chg.-Offs | Current | 30 | 60 | 90 | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-acquired loans | ||||||||||||||||||||||||||
Single-family residential | $ | 5,546,941 | $ | 5,473,728 | $ | 14,525 | $ | 8,585 | $ | 50,103 | $ | 73,213 | 1.32 | % | ||||||||||||
Construction - speculative | 117,711 | 117,711 | — | — | — | — | — | |||||||||||||||||||
Construction - custom | 204,914 | 204,140 | 310 | 109 | 355 | 774 | 0.38 | |||||||||||||||||||
Land - acquisition & development | 72,856 | 72,429 | 427 | — | — | 427 | 0.59 | |||||||||||||||||||
Land - consumer lot loans | 102,436 | 99,717 | 595 | 85 | 2,039 | 2,719 | 2.65 | |||||||||||||||||||
Multi-family | 1,013,745 | 1,012,704 | — | 421 | 620 | 1,041 | 0.10 | |||||||||||||||||||
Commercial real estate | 697,960 | 696,678 | 421 | 57 | 804 | 1,282 | 0.18 | |||||||||||||||||||
Commercial & industrial | 451,473 | 451,404 | 69 | — | — | 69 | 0.02 | |||||||||||||||||||
HELOC | 122,874 | 121,836 | 401 | 62 | 575 | 1,038 | 0.84 | |||||||||||||||||||
Consumer | 205,950 | 205,259 | 519 | 172 | — | 691 | 0.34 | |||||||||||||||||||
Total non-acquired loans | 8,536,860 | 8,455,606 | 17,267 | 9,491 | 54,496 | 81,254 | 0.95 | |||||||||||||||||||
Non-impaired acquired loans | ||||||||||||||||||||||||||
Single-family residential | 12,895 | 12,872 | — | — | 23 | 23 | 0.18 | |||||||||||||||||||
Land - acquisition & development | 1,028 | 1,028 | — | — | — | — | — | |||||||||||||||||||
Land - consumer lot loans | 2,472 | 2,339 | — | 16 | 117 | 133 | 5.38 | |||||||||||||||||||
Multi-family | 3,692 | 3,692 | — | — | — | — | — | |||||||||||||||||||
Commercial real estate | 101,542 | 101,369 | — | — | 173 | 173 | 0.17 | |||||||||||||||||||
Commercial & industrial | 57,612 | 57,574 | — | — | 38 | 38 | 0.07 | |||||||||||||||||||
HELOC | 6,414 | 5,973 | 224 | 217 | — | 441 | 6.88 | |||||||||||||||||||
Consumer | 2,897 | 2,491 | 48 | — | 358 | 406 | 14.01 | |||||||||||||||||||
Total non-impaired acquired loans | 188,552 | 187,338 | 272 | 233 | 709 | 1,214 | 0.64 | |||||||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||||||||
Single-family residential | 6,284 | 6,284 | — | — | — | — | — | |||||||||||||||||||
Land - acquisition & development | 1,842 | 771 | 203 | — | 868 | 1,071 | 58.14 | |||||||||||||||||||
Land - consumer lot loans | 495 | 495 | — | — | — | — | NM | |||||||||||||||||||
Commercial real estate | 71,189 | 69,448 | 608 | — | 1,133 | 1,741 | 2.45 | |||||||||||||||||||
Commercial & industrial | 3,881 | 3,058 | — | — | 823 | 823 | 21.21 | |||||||||||||||||||
HELOC | 8,549 | 8,236 | — | — | 313 | 313 | 3.66 | |||||||||||||||||||
Consumer | 108 | 108 | — | — | — | — | — | |||||||||||||||||||
Total credit-impaired acquired loans | 92,348 | 88,400 | 811 | — | 3,137 | 3,948 | 4.28 | |||||||||||||||||||
Total Loans | $ | 8,817,760 | $ | 8,731,344 | $ | 18,350 | $ | 9,724 | $ | 58,342 | $ | 86,416 | 0.98 | % |
September 30, 2014 | Amount of Loans | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loan | Net of LIP & Chg.-Offs | Current | 30 | 60 | 90 | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-acquired loans | ||||||||||||||||||||||||||
Single-family residential | $ | 5,557,753 | $ | 5,467,239 | $ | 15,926 | $ | 9,139 | $ | 65,449 | $ | 90,514 | 1.63 | % | ||||||||||||
Construction - speculative | 87,035 | 87,035 | — | — | — | — | — | |||||||||||||||||||
Construction - custom | 192,098 | 191,262 | 836 | — | — | 836 | 0.44 | |||||||||||||||||||
Land - acquisition & development | 68,066 | 67,911 | 155 | — | — | 155 | 0.23 | |||||||||||||||||||
Land - consumer lot loans | 108,589 | 104,571 | 1,246 | 304 | 2,468 | 4,018 | 3.70 | |||||||||||||||||||
Multi-family | 892,196 | 891,372 | 205 | 16 | 603 | 824 | 0.09 | |||||||||||||||||||
Commercial real estate | 529,453 | 513,409 | 67 | 15,118 | 859 | 16,044 | 3.03 | |||||||||||||||||||
Commercial & industrial | 379,226 | 377,848 | 53 | 1,318 | 7 | 1,378 | 0.36 | |||||||||||||||||||
HELOC | 116,262 | 115,262 | 335 | 292 | 373 | 1,000 | 0.86 | |||||||||||||||||||
Consumer | 132,686 | 131,642 | 654 | 262 | 128 | 1,044 | 0.79 | |||||||||||||||||||
Total non-acquired loans | 8,063,364 | 7,947,551 | 19,477 | 26,449 | 69,887 | 115,813 | 1.44 | |||||||||||||||||||
Non-impaired acquired loans | ||||||||||||||||||||||||||
Single-family residential | 11,716 | 11,693 | — | — | 23 | 23 | 0.20 | |||||||||||||||||||
Land - acquisition & development | 905 | 905 | — | — | — | — | — | |||||||||||||||||||
Land - consumer lot loans | 2,502 | 2,132 | — | 370 | — | 370 | 14.79 | |||||||||||||||||||
Multi-family | 2,999 | 2,999 | — | — | — | — | — | |||||||||||||||||||
Commercial real estate | 97,715 | 96,948 | 104 | — | 663 | 767 | 0.78 | |||||||||||||||||||
Commercial & industrial | 51,329 | 51,229 | — | 100 | — | 100 | 0.19 | |||||||||||||||||||
HELOC | 8,056 | 8,056 | — | — | — | — | — | |||||||||||||||||||
Consumer | 5,670 | 4,983 | 22 | 4 | 661 | 687 | 12.12 | |||||||||||||||||||
Total non-impaired acquired loans | 180,892 | 178,945 | 126 | 474 | 1,347 | 1,947 | 1.08 | |||||||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||||||||
Single-family residential | 325 | 325 | — | — | — | — | — | |||||||||||||||||||
Land - acquisition & development | 1,581 | 1,581 | — | — | — | — | — | |||||||||||||||||||
Commercial real estate | 63,713 | 61,713 | 152 | 909 | 939 | 2,000 | 3.14 | |||||||||||||||||||
Commercial & industrial | 3,477 | 3,470 | 7 | — | — | 7 | 0.20 | |||||||||||||||||||
HELOC | 10,138 | 9,641 | — | 75 | 422 | 497 | 4.90 | |||||||||||||||||||
Consumer | 54 | 54 | — | — | — | — | — | |||||||||||||||||||
Total credit-impaired acquired loans | 79,288 | 76,784 | 159 | 984 | 1,361 | 2,504 | 3.16 | |||||||||||||||||||
Total Loans | $ | 8,323,544 | $ | 8,203,280 | $ | 19,762 | $ | 27,907 | $ | 72,595 | $ | 120,264 | 1.44 | % |
Quarter Ended June 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||
Single-family residential | 8 | $ | 1,611 | $ | 1,611 | 48 | $ | 10,693 | $ | 10,693 | |||||||||||
Land - acquisition & development | — | — | — | 3 | 756 | 756 | |||||||||||||||
Land - consumer lot loans | 2 | 203 | 203 | 5 | 573 | 573 | |||||||||||||||
Commercial real estate | — | — | — | 2 | 1,398 | 1,398 | |||||||||||||||
10 | $ | 1,814 | $ | 1,814 | 58 | $ | 13,420 | $ | 13,420 | ||||||||||||
Nine Months Ended June 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||
Single-family residential | 57 | 13,875 | 13,875 | 199 | 45,132 | 45,132 | |||||||||||||||
Construction - speculative | 2 | 718 | 718 | — | — | — | |||||||||||||||
Construction - custom | 2 | 532 | 532 | — | — | — | |||||||||||||||
Land - consumer lot loans | 6 | 923 | 923 | 10 | 1,746 | 1,746 | |||||||||||||||
Multi-family | — | — | — | 2 | 1,201 | 1,201 | |||||||||||||||
Commercial real estate | 3 | 3,175 | 3,175 | 3 | 2,197 | 2,197 | |||||||||||||||
HELOC | — | — | — | 1 | 261 | 261 | |||||||||||||||
Consumer | 1 | 85 | 85 | 3 | 207 | 207 | |||||||||||||||
71 | $ | 19,308 | $ | 19,308 | 221 | $ | 51,500 | $ | 51,500 |
Quarter Ended June 30, | |||||||||||||
2015 | 2014 | ||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Troubled Debt Restructurings That Subsequently Defaulted: | |||||||||||||
Single-family residential | 9 | $ | 1,594 | 17 | $ | 3,088 | |||||||
Land - consumer lot loans | 2 | 301 | 1 | 69 | |||||||||
Consumer | — | — | 1 | 170 | |||||||||
11 | $ | 1,895 | 19 | $ | 3,327 | ||||||||
Nine Months Ended June 30, | |||||||||||||
2015 | 2014 | ||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Troubled Debt Restructurings That Subsequently Defaulted: | |||||||||||||
Single-family residential | 19 | $ | 3,329 | 42 | $ | 9,206 | |||||||
Land - consumer lot loans | 7 | 991 | 4 | 445 | |||||||||
Consumer | — | — | 1 | 170 | |||||||||
26 | $ | 4,320 | 47 | $ | 9,821 |
Three Months Ended June 30, 2015 | Beginning Allowance | Charge-offs | Recoveries | Provision & Transfers | Ending Allowance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Single-family residential | $ | 54,762 | $ | (1,698 | ) | $ | 3,878 | $ | (4,938 | ) | $ | 52,004 | |||||||
Construction - speculative | 5,445 | — | — | 488 | 5,933 | ||||||||||||||
Construction - custom | 968 | — | — | 17 | 985 | ||||||||||||||
Land - acquisition & development | 7,405 | — | 1 | (1,634 | ) | 5,772 | |||||||||||||
Land - consumer lot loans | 3,035 | (276 | ) | 187 | 53 | 2,999 | |||||||||||||
Multi-family | 4,673 | — | — | 362 | 5,035 | ||||||||||||||
Commercial real estate | 6,734 | (1,592 | ) | 230 | 1,896 | 7,268 | |||||||||||||
Commercial & industrial | 21,146 | (2,106 | ) | 896 | 1,726 | 21,662 | |||||||||||||
HELOC | 850 | (26 | ) | 1 | 39 | 864 | |||||||||||||
Consumer | 3,305 | (853 | ) | 1,045 | (408 | ) | 3,089 | ||||||||||||
$ | 108,323 | $ | (6,551 | ) | $ | 6,238 | $ | (2,399 | ) | $ | 105,611 |
Three Months 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 |
Nine Months Ended June 30, 2015 | Beginning Allowance | Charge-offs | Recoveries | Provision & Transfers | Ending Allowance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Single-family residential | $ | 62,763 | $ | (4,801 | ) | $ | 10,553 | $ | (16,511 | ) | $ | 52,004 | |||||||
Construction - speculative | 6,742 | (388 | ) | $ | 75 | (496 | ) | 5,933 | |||||||||||
Construction - custom | 1,695 | — | — | (710 | ) | 985 | |||||||||||||
Land - acquisition & development | 5,592 | (38 | ) | 206 | 12 | 5,772 | |||||||||||||
Land - consumer lot loans | 3,077 | (363 | ) | 221 | 64 | 2,999 | |||||||||||||
Multi-family | 4,248 | — | 220 | 567 | 5,035 | ||||||||||||||
Commercial real estate | 7,548 | (1,619 | ) | 711 | 628 | 7,268 | |||||||||||||
Commercial & industrial | 16,527 | (2,461 | ) | 948 | 6,648 | 21,662 | |||||||||||||
HELOC | 928 | (26 | ) | 1 | (39 | ) | 864 | ||||||||||||
Consumer | 3,227 | (1,981 | ) | 2,394 | (551 | ) | 3,089 | ||||||||||||
$ | 112,347 | $ | (11,677 | ) | $ | 15,329 | $ | (10,388 | ) | $ | 105,611 |
Nine Months Ended June 30, 2014 | Beginning Allowance | Charge-offs | Recoveries | Provision & Transfers | Ending Allowance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Single-family residential | $ | 64,184 | $ | (7,307 | ) | $ | 15,631 | $ | (10,148 | ) | $ | 62,360 | |||||||
Construction - speculative | 8,407 | (938 | ) | $ | 97 | (1,179 | ) | 6,387 | |||||||||||
Construction - custom | 882 | — | — | 796 | 1,678 | ||||||||||||||
Land - acquisition & development | 9,165 | (541 | ) | 823 | (2,492 | ) | 6,955 | ||||||||||||
Land - consumer lot loans | 3,552 | (559 | ) | 22 | (153 | ) | 2,862 | ||||||||||||
Multi-family | 3,816 | — | — | 325 | 4,141 | ||||||||||||||
Commercial real estate | 5,595 | (105 | ) | 24 | 1,175 | 6,689 | |||||||||||||
Commercial & industrial | 16,614 | (730 | ) | 3,277 | (465 | ) | 18,696 | ||||||||||||
HELOC | 1,002 | (18 | ) | — | 31 | 1,015 | |||||||||||||
Consumer | 3,524 | (2,788 | ) | 2,871 | (240 | ) | 3,367 | ||||||||||||
$ | 116,741 | $ | (12,986 | ) | $ | 22,745 | $ | (12,350 | ) | $ | 114,150 |
June 30, 2015 | Loans Collectively Evaluated for Impairment | Loans Individually Evaluated for Impairment | |||||||||||||||||||
Allowance Allocation | Recorded Investment of Loans (1) | Ratio | Allowance Allocation | Recorded Investment of Loans (1) | Ratio | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Single-family residential | $ | 52,004 | $ | 5,497,635 | 1.0 | % | $ | — | $ | 49,305 | — | % | |||||||||
Construction - speculative | 5,933 | 110,727 | 5.4 | — | 6,983 | — | |||||||||||||||
Construction - custom | 985 | 204,914 | 0.5 | — | — | — | |||||||||||||||
Land - acquisition & development | 5,772 | 68,234 | 8.5 | — | 3,237 | — | |||||||||||||||
Land - consumer lot loans | 2,999 | 91,392 | 3.3 | — | 11,044 | — | |||||||||||||||
Multi-family | 5,035 | 1,008,452 | 0.5 | — | 4,584 | — | |||||||||||||||
Commercial real estate | 7,268 | 685,198 | 1.1 | — | 11,133 | — | |||||||||||||||
Commercial & industrial | 21,662 | 484,902 | 4.5 | — | — | — | |||||||||||||||
HELOC | 864 | 121,241 | 0.7 | — | 1,633 | — | |||||||||||||||
Consumer | 3,089 | 205,862 | 1.5 | — | 89 | — | |||||||||||||||
$ | 105,611 | $ | 8,478,557 | 1.3 | % | $ | — | $ | 88,008 | — | % |
(1) | Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans |
September 30, 2014 | Loans Collectively Evaluated for Impairment | Loans Individually Evaluated for Impairment | |||||||||||||||||||
Allowance Allocation | Recorded Investment of Loans (1) | Ratio | Allowance Allocation | Recorded Investment of Loans (1) | Ratio | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Single-family residential | $ | 62,067 | $ | 5,487,331 | 1.1 | % | $ | — | $ | 72,869 | — | % | |||||||||
Construction - speculative | 6,682 | 130,901 | 5.5 | 60 | 9,159 | 0.7 | |||||||||||||||
Construction - custom | 1,695 | 385,464 | 0.5 | — | 360 | — | |||||||||||||||
Land - acquisition & development | 5,592 | 73,999 | 7.6 | — | 3,833 | — | |||||||||||||||
Land - consumer lot loans | 3,077 | 95,684 | 3.2 | — | 12,939 | — | |||||||||||||||
Multi-family | 4,248 | 911,162 | 0.5 | — | 6,124 | — | |||||||||||||||
Commercial real estate | 7,548 | 563,534 | 1.4 | — | 27,802 | — | |||||||||||||||
Commercial & industrial | 17,223 | 421,816 | 4.6 | — | — | — | |||||||||||||||
HELOC | 928 | 114,393 | 0.9 | — | 1,650 | — | |||||||||||||||
Consumer | 3,227 | 132,590 | 2.4 | — | — | — | |||||||||||||||
$ | 112,287 | $ | 8,316,874 | 1.4 | % | $ | 60 | $ | 134,736 | — | % |
• | Pass – the credit does not meet one of the definitions below. |
• | Special mention – A special mention credit is considered to be currently protected from loss but is potentially weak. No loss of principal or interest is foreseen; however, proper supervision and Management attention is required to deter further deterioration in the credit. Assets in this category constitute some undue and unwarranted credit risk but not to the point of justifying a risk rating of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. |
• | Substandard – A substandard credit is an unacceptable credit. Additionally, repayment in the normal course is in jeopardy due to the existence of one or more well defined weaknesses. In these situations, loss of principal is likely if the weakness is not corrected. A substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified will have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets risk rated substandard. |
• | Doubtful – A credit classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The probability of loss is high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. |
• | Loss – Credits classified loss are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. Losses should be taken in the period in which they are identified as uncollectible. Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection. |
June 30, 2015 | Internally Assigned Grade | Total | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | Gross Loans | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Non-acquired loans | |||||||||||||||||||||||
Single-family residential | $ | 5,456,628 | $ | — | $ | 90,313 | $ | — | $ | — | $ | 5,546,941 | |||||||||||
Construction - speculative | 114,706 | — | 3,005 | — | — | 117,711 | |||||||||||||||||
Construction - custom | 204,914 | — | — | — | — | 204,914 | |||||||||||||||||
Land - acquisition & development | 67,726 | — | 5,130 | — | — | 72,856 | |||||||||||||||||
Land - consumer lot loans | 102,007 | — | 429 | — | — | 102,436 | |||||||||||||||||
Multi-family | 1,009,785 | — | 3,960 | — | — | 1,013,745 | |||||||||||||||||
Commercial real estate | 682,908 | 5,068 | 9,984 | — | — | 697,960 | |||||||||||||||||
Commercial & industrial | 411,925 | 965 | 38,583 | — | — | 451,473 | |||||||||||||||||
HELOC | 122,626 | — | 248 | — | — | 122,874 | |||||||||||||||||
Consumer | 205,950 | — | — | — | — | 205,950 | |||||||||||||||||
8,379,175 | 6,033 | 151,652 | — | — | 8,536,860 | ||||||||||||||||||
Non-impaired acquired loans | |||||||||||||||||||||||
Single-family residential | 12,872 | — | 23 | — | — | 12,895 | |||||||||||||||||
Land - acquisition & development | 651 | — | 377 | — | — | 1,028 | |||||||||||||||||
Land - consumer lot loans | 2,355 | — | 117 | — | — | 2,472 | |||||||||||||||||
Multi-family | 3,692 | — | — | — | — | 3,692 | |||||||||||||||||
Commercial real estate | 86,529 | 511 | 14,502 | — | — | 101,542 | |||||||||||||||||
Commercial & industrial | 54,243 | 1,228 | 2,141 | — | — | 57,612 | |||||||||||||||||
HELOC | 6,414 | — | — | — | — | 6,414 | |||||||||||||||||
Consumer | 2,484 | — | 413 | — | — | 2,897 | |||||||||||||||||
169,240 | 1,739 | 17,573 | — | — | 188,552 | ||||||||||||||||||
Credit-impaired acquired loans | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 6,655 | — | 2,305 | — | — | 8,960 | |||||||||||||||||
Pool 2 - Single-family residential | 320 | — | — | — | — | 320 | |||||||||||||||||
Pool 3 - Multi-family | — | — | — | — | — | — | |||||||||||||||||
Pool 4 - HELOC & other consumer | 8,598 | — | 638 | — | — | 9,236 | |||||||||||||||||
Pool 5 - Commercial real estate | 47,715 | — | 22,811 | — | — | 70,526 | |||||||||||||||||
Pool 6 - Commercial & industrial | 2,931 | — | 375 | — | — | 3,306 | |||||||||||||||||
Total credit impaired acquired loans | 66,219 | — | 26,129 | — | — | 92,348 | |||||||||||||||||
Total gross loans | $ | 8,614,634 | $ | 7,772 | $ | 195,354 | $ | — | $ | — | $ | 8,817,760 | |||||||||||
Total grade as a % of total gross loans | 97.7 | % | 0.1 | % | 2.2 | % | — | % | — | % |
September 30, 2014 | Internally Assigned Grade | Total | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | Gross Loans | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Non-acquired loans | |||||||||||||||||||||||
Single-family residential | $ | 5,424,624 | $ | 2,793 | $ | 130,339 | $ | — | $ | — | $ | 5,557,756 | |||||||||||
Construction - speculative | 81,931 | — | 5,104 | — | — | 87,035 | |||||||||||||||||
Construction - custom | 192,098 | — | — | — | — | 192,098 | |||||||||||||||||
Land - acquisition & development | 61,949 | — | 6,117 | — | — | 68,066 | |||||||||||||||||
Land - consumer lot loans | 107,979 | — | 610 | — | — | 108,589 | |||||||||||||||||
Multi-family | 887,639 | — | 4,556 | — | — | 892,195 | |||||||||||||||||
Commercial real estate | 495,892 | 1,971 | 31,441 | — | — | 529,304 | |||||||||||||||||
Commercial & industrial | 359,168 | 14,740 | 5,265 | — | — | 379,173 | |||||||||||||||||
HELOC | 115,794 | — | 248 | — | — | 116,042 | |||||||||||||||||
Consumer | 132,444 | — | 241 | — | — | 132,685 | |||||||||||||||||
7,859,518 | 19,504 | 183,921 | — | — | 8,062,943 | ||||||||||||||||||
Non-impaired acquired loans | |||||||||||||||||||||||
Single-family residential | 11,716 | — | — | — | — | 11,716 | |||||||||||||||||
Land - acquisition & development | 503 | — | 402 | — | — | 905 | |||||||||||||||||
Land - consumer lot loans | 2,502 | — | — | — | — | 2,502 | |||||||||||||||||
Multi-family | 2,999 | — | — | — | — | 2,999 | |||||||||||||||||
Commercial real estate | 88,940 | 2,571 | 6,353 | — | — | 97,864 | |||||||||||||||||
Commercial & industrial | 36,309 | 13,642 | 1,375 | 58 | — | 51,384 | |||||||||||||||||
HELOC | 8,274 | — | — | — | — | 8,274 | |||||||||||||||||
Consumer | 5,670 | — | — | — | — | 5,670 | |||||||||||||||||
156,913 | 16,213 | 8,130 | 58 | — | 181,314 | ||||||||||||||||||
Credit-impaired acquired loans | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 1,251 | — | 330 | — | — | 1,581 | |||||||||||||||||
Pool 2 - Single-family residential | 325 | — | — | — | — | 325 | |||||||||||||||||
Pool 3 - Multi-family | — | — | — | — | — | — | |||||||||||||||||
Pool 4 - HELOC & other consumer | 10,194 | — | — | — | — | 10,194 | |||||||||||||||||
Pool 5 - Commercial real estate | 48,867 | 2,143 | 12,702 | — | — | 63,712 | |||||||||||||||||
Pool 6 - Commercial & industrial | 643 | — | 2,833 | — | — | 3,476 | |||||||||||||||||
Total credit impaired acquired loans | 61,280 | 2,143 | 15,865 | — | — | 79,288 | |||||||||||||||||
Total gross loans | $ | 8,077,711 | $ | 37,860 | $ | 207,916 | $ | 58 | $ | — | $ | 8,323,545 | |||||||||||
Total grade as a % of total gross loans | 97.2 | % | 0.4 | % | 2.4 | % | — | % | — | % |
June 30, 2015 | Performing Loans | Non-Performing Loans | |||||||||||
Amount | % of Total Gross Loans | Amount | % of Total Gross Loans | ||||||||||
(In thousands) | |||||||||||||
Single-family residential | $ | 5,490,303 | 99.0 | % | $ | 56,638 | 1.0 | % | |||||
Construction - speculative | 116,949 | 99.4 | 762 | 0.6 | |||||||||
Construction - custom | 204,559 | 99.8 | 355 | 0.2 | |||||||||
Land - acquisition & development | 71,471 | 100.0 | — | — | |||||||||
Land - consumer lot loans | 101,128 | 98.4 | 1,308 | 1.6 | |||||||||
Multi-family | 1,012,250 | 99.8 | 786 | 0.2 | |||||||||
Commercial real estate | 693,479 | 99.7 | 2,852 | 0.3 | |||||||||
Commercial & industrial | 450,124 | 99.8 | 1,205 | 0.2 | |||||||||
HELOC | 121,985 | 99.3 | 889 | 0.7 | |||||||||
Consumer | 205,437 | 99.8 | 513 | 0.2 | |||||||||
$ | 8,467,685 | 99.2 | % | $ | 65,308 | 0.8 | % |
September 30, 2014 | Performing Loans | Non-Performing Loans | |||||||||||
Amount | % of Total Gross Loans | Amount | % of Total Gross Loans | ||||||||||
(In thousands) | |||||||||||||
Single-family residential | $ | 5,486,136 | 98.7 | % | $ | 74,067 | 1.3 | % | |||||
Construction - speculative | 138,583 | 98.9 | 1,477 | 1.1 | |||||||||
Construction - custom | 385,824 | 100.0 | — | — | |||||||||
Land - acquisition & development | 77,021 | 99.0 | 811 | 1.0 | |||||||||
Land - consumer lot loans | 105,986 | 97.6 | 2,637 | 2.4 | |||||||||
Multi-family | 915,544 | 99.8 | 1,742 | 0.2 | |||||||||
Commercial real estate | 586,230 | 99.1 | 5,106 | 0.9 | |||||||||
Commercial & industrial | 379,219 | 100.0 | 7 | — | |||||||||
HELOC | 115,247 | 99.3 | 795 | 0.7 | |||||||||
Consumer | 131,801 | 99.4 | 789 | 0.6 | |||||||||
$ | 8,321,591 | 99.0 | % | $ | 87,431 | 1.0 | % |
June 30, 2015 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | ||||||||||||
(In thousands) | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||
Single-family residential | $ | 21,524 | $ | 24,151 | $ | — | $ | 20,724 | ||||||||
Construction - speculative | 613 | 808 | — | 615 | ||||||||||||
Construction - custom | 355 | 355 | — | 178 | ||||||||||||
Land - acquisition & development | 680 | 1,223 | — | 683 | ||||||||||||
Land - consumer lot loans | 1,101 | 1,187 | — | 969 | ||||||||||||
Multi-family | 1,531 | 1,531 | — | 1,138 | ||||||||||||
Commercial real estate | 10,416 | 14,797 | — | 9,795 | ||||||||||||
Commercial & industrial | 4,340 | 18,276 | — | 5,664 | ||||||||||||
HELOC | 1,008 | 1,819 | — | 905 | ||||||||||||
Consumer | 414 | 627 | — | 414 | ||||||||||||
41,982 | 64,774 | — | 41,085 | |||||||||||||
With an allowance recorded: | ||||||||||||||||
Single-family residential | 275,179 | 279,043 | 8,057 | 275,889 | ||||||||||||
Construction - speculative | 6,371 | 7,161 | — | 6,389 | ||||||||||||
Construction - custom | — | — | — | — | ||||||||||||
Land - acquisition & development | 3,536 | 4,476 | — | 3,571 | ||||||||||||
Land - consumer lot loans | 11,540 | 11,805 | — | 11,627 | ||||||||||||
Multi-family | 3,843 | 3,843 | — | 3,853 | ||||||||||||
Commercial real estate | 19,251 | 21,206 | — | 19,962 | ||||||||||||
Commercial & industrial | — | — | — | — | ||||||||||||
HELOC | 1,394 | 1,394 | — | 1,394 | ||||||||||||
Consumer | 120 | 291 | — | 121 | ||||||||||||
321,234 | 329,219 | 8,057 | (1) | 322,806 | ||||||||||||
Total: | ||||||||||||||||
Single-family residential | 296,703 | 303,194 | 8,057 | 296,613 | ||||||||||||
Construction - speculative | 6,984 | 7,969 | — | 7,004 | ||||||||||||
Construction - custom | 355 | 355 | — | 178 | ||||||||||||
Land - acquisition & development | 4,216 | 5,699 | — | 4,254 | ||||||||||||
Land - consumer lot loans | 12,641 | 12,992 | — | 12,596 | ||||||||||||
Multi-family | 5,374 | 5,374 | — | 4,991 | ||||||||||||
Commercial real estate | 29,667 | 36,003 | — | 29,757 | ||||||||||||
Commercial & industrial | 4,340 | 18,276 | — | 5,664 | ||||||||||||
HELOC | 2,402 | 3,213 | — | 2,299 | ||||||||||||
Consumer | 534 | 918 | — | 535 | ||||||||||||
$ | 363,216 | $ | 393,993 | $ | 8,057 | (1) | $ | 363,891 |
September 30, 2014 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | |||||||||||
(In thousands) | |||||||||||||||
With no related allowance recorded: | |||||||||||||||
Single-family residential | $ | 24,044 | $ | 26,628 | $ | — | $ | 16,843 | |||||||
Construction - speculative | 1,603 | 2,173 | — | 1,804 | |||||||||||
Land - acquisition & development | 837 | 2,325 | — | 1,038 | |||||||||||
Land - consumer lot loans | 974 | 1,072 | — | 713 | |||||||||||
Multi-family | 1,111 | 1,111 | — | 327 | |||||||||||
Commercial real estate | 13,234 | 20,085 | — | 11,720 | |||||||||||
Commercial & industrial | 3,195 | 17,166 | — | 3,900 | |||||||||||
HELOC | 1,019 | 1,730 | — | 612 | |||||||||||
Consumer | 663 | 833 | — | 517 | |||||||||||
46,680 | 73,123 | — | 37,474 | ||||||||||||
With an allowance recorded: | |||||||||||||||
Single-family residential | 322,320 | 327,869 | 10,527 | 316,348 | |||||||||||
Construction - speculative | 7,556 | 7,986 | 60 | 7,532 | |||||||||||
Land - acquisition & development | 4,696 | 5,636 | — | 4,114 | |||||||||||
Land - consumer lot loans | 13,002 | 13,385 | — | 12,858 | |||||||||||
Multi-family | 5,243 | 5,463 | — | 4,957 | |||||||||||
Commercial real estate | 34,159 | 35,028 | — | 18,572 | |||||||||||
HELOC | 1,486 | 1,486 | — | 1,204 | |||||||||||
Consumer | 43 | 214 | — | 79 | |||||||||||
388,505 | 397,067 | 10,587 | (1) | 365,664 | |||||||||||
Total: | |||||||||||||||
Single-family residential | 346,364 | 354,497 | 10,527 | 333,191 | |||||||||||
Construction - speculative | 9,159 | 10,159 | 60 | 9,336 | |||||||||||
Land - acquisition & development | 5,533 | 7,961 | — | 5,152 | |||||||||||
Land - consumer lot loans | 13,976 | 14,457 | — | 13,571 | |||||||||||
Multi-family | 6,354 | 6,574 | — | 5,284 | |||||||||||
Commercial real estate | 47,393 | 55,113 | — | 30,292 | |||||||||||
Commercial & industrial | 3,195 | 17,166 | — | 3,900 | |||||||||||
HELOC | 2,505 | 3,216 | — | 1,816 | |||||||||||
Consumer | 706 | 1,047 | — | 596 | |||||||||||
$ | 435,185 | $ | 470,190 | $ | 10,587 | (1) | $ | 403,138 |
(1) | Includes $60,000 of specific reserves and $10,527,000 included in the general reserves. |
Fair Value at June 30, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | |||||||||||||||
Financial Assets | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Equity securities | $ | 102,447 | $ | — | $ | — | $ | 102,447 | |||||||
Obligations of U.S. government | — | 529,472 | — | 529,472 | |||||||||||
Obligations of states and political subdivisions | — | 27,275 | — | 27,275 | |||||||||||
Corporate debt securities | — | 528,716 | — | 528,716 | |||||||||||
Agency pass-through certificates | — | 1,328,852 | — | 1,328,852 | |||||||||||
Other Commercial MBS | — | 107,612 | — | 107,612 | |||||||||||
Total available-for-sale securities | 102,447 | 2,521,927 | — | 2,624,374 | |||||||||||
Bank owned life insurance | — | 101,720 | — | 101,720 | |||||||||||
Interest rate contracts | — | 5,429 | — | 5,429 | |||||||||||
Total financial assets | $ | 102,447 | $ | 2,629,076 | $ | — | $ | 2,731,523 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate contracts | — | 5,429 | — | 5,429 | |||||||||||
Long term borrowing hedge | — | 3,914 | — | 3,914 | |||||||||||
Total financial liabilities | $ | — | $ | 9,343 | $ | — | $ | 9,343 |
Fair Value at September 30, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | |||||||||||||||
Financial Assets | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Equity securities | $ | 101,387 | $ | — | $ | — | $ | 101,387 | |||||||
Obligations of U.S. government | — | 731,943 | — | 731,943 | |||||||||||
Obligations of states and political subdivisions | — | 23,681 | — | 23,681 | |||||||||||
Obligations of foreign governments | — | — | — | — | |||||||||||
Corporate debt securities | — | 509,007 | — | 509,007 | |||||||||||
Mortgage-backed securities | |||||||||||||||
Agency pass-through certificates | — | 1,584,508 | — | 1,584,508 | |||||||||||
Other Commercial MBS | — | 98,916 | — | 98,916 | |||||||||||
Total available-for-sale securities | 101,387 | 2,948,055 | — | 3,049,442 | |||||||||||
Interest rate contracts | — | 2,879 | — | 2,879 | |||||||||||
Total financial assets | $ | 101,387 | $ | 2,950,934 | $ | — | $ | 3,052,321 | |||||||
Financial Liabilities | |||||||||||||||
Interest rate contracts | — | 2,879 | — | 2,879 | |||||||||||
Long term borrowing hedge | — | 268 | — | 268 | |||||||||||
Total financial liabilities | $ | — | $ | 3,147 | $ | — | $ | 3,147 |
Nine Months Ended June 30, 2015 | Quarter Ended June 30, 2015 | Nine Months Ended June 30, 2015 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total Losses (Gains) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Impaired loans (1) | $ | — | $ | — | $ | 6,735 | $ | 6,735 | $ | 3,621 | $ | 4,201 | |||||||||||
Covered REO (2) | — | — | 1,950 | 1,950 | (20 | ) | 168 | ||||||||||||||||
Real estate held for sale (2) | — | — | 71,831 | 71,831 | 2,386 | (8,571 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | — | $ | 80,516 | $ | 80,516 | $ | 5,987 | $ | (4,202 | ) |
Nine Months Ended June 30, 2014 | Quarter Ended June 30, 2014 | Nine Months Ended June 30, 2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total Losses (Gains) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Impaired loans (1) | $ | — | $ | — | $ | 10,156 | $ | 10,156 | $ | (775 | ) | $ | (1,311 | ) | |||||||||
Covered REO (2) | — | — | 8,935 | 8,935 | 374 | 503 | |||||||||||||||||
Real estate held for sale (2) | — | — | 43,082 | 43,082 | 10,400 | 16,782 | |||||||||||||||||
Balance at end of period | $ | — | $ | — | $ | 62,173 | $ | 62,173 | $ | 9,999 | $ | 15,974 |
(1) | The gains represents remeasurements of collateral-dependent loans. |
(2) | The losses represent aggregate net writedowns and charge-offs on real estate held for sale. |
• | The fair value of the collateral, which may take the form of real estate or personal property, is based on internal estimates, field observations, assessments provided by third-party appraisers and other valuation models. The Company performs or reaffirms valuations of collateral-dependent impaired loans at least annually. Adjustments are made if management believes that more recent information is available and relevant with respect to the fair value of the collateral. |
• | The present value of the expected future cash flows of the collateral is used for measurement of non collateral-dependent loans to test for impairment. The Company calculates the amount and timing of the future cash flows, the effective interest rate to be used to discount the cash flows and the basis for determination of the cash flows, including consideration of current economic and environmental factors, as well as other information relating to current or previous conditions. |
June 30, 2015 | September 30, 2014 | |||||||||||||||||
Level in Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
(In thousands) | ||||||||||||||||||
Financial assets | ||||||||||||||||||
Cash and cash equivalents | 1 | $ | 349,550 | $ | 349,550 | $ | 781,843 | $ | 781,843 | |||||||||
Available-for-sale securities | ||||||||||||||||||
Equity securities | 1 | 102,447 | 102,447 | 101,387 | 101,387 | |||||||||||||
Obligations of U.S. government | 2 | 529,472 | 529,472 | 731,943 | 731,943 | |||||||||||||
Obligations of states and political subdivisions | 2 | 27,275 | 27,275 | 23,681 | 23,681 | |||||||||||||
Corporate debt securities | 2 | 528,716 | 528,716 | 509,007 | 509,007 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 2 | 1,328,852 | 1,328,852 | 1,584,508 | 1,584,508 | |||||||||||||
Other Commercial MBS | 2 | 107,612 | 107,612 | 98,916 | 98,916 | |||||||||||||
Total available-for-sale securities | 2,624,374 | 2,624,374 | 3,049,442 | 3,049,442 | ||||||||||||||
Held-to-maturity securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 2 | 1,586,514 | 1,553,716 | 1,548,265 | 1,499,218 | |||||||||||||
Total held-to-maturity securities | 1,586,514 | 1,553,716 | 1,548,265 | 1,499,218 | ||||||||||||||
Loans receivable | 3 | 8,645,609 | 9,175,928 | 8,148,322 | 8,667,771 | |||||||||||||
Covered loans | 3 | 77,311 | 81,737 | 176,476 | 176,761 | |||||||||||||
FDIC indemnification asset | 3 | 18,783 | 18,263 | 36,860 | 35,976 | |||||||||||||
FHLB and FRB stock | 2 | 103,189 | 103,189 | 158,839 | 158,839 | |||||||||||||
Bank owned life insurance | 2 | 101,720 | 101,720 | — | — | |||||||||||||
Other assets - interest rate contracts | 2 | — | 5,429 | — | 2,879 | |||||||||||||
Financial liabilities | ||||||||||||||||||
Customer accounts | 2 | 10,578,385 | 9,830,817 | 10,716,928 | 9,946,586 | |||||||||||||
FHLB advances | 2 | 1,730,000 | 1,833,413 | 1,930,000 | 2,054,437 | |||||||||||||
Other liabilities - interest rate contracts | 2 | — | 5,429 | — | 2,879 | |||||||||||||
Other liabilities - long term borrowing hedge | 2 | — | 3,914 | — | 268 |
June 30, 2015 | ||||||||||||||||||
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 | $ | 135,967 | $ | 2,078 | $ | (460 | ) | $ | 137,585 | 1.43 | % | |||||||
5 to 10 years | 75,441 | 149 | (7 | ) | 75,583 | 1.20 | ||||||||||||
Over 10 years | 316,929 | 435 | (1,060 | ) | 316,304 | 1.31 | ||||||||||||
Equity Securities | ||||||||||||||||||
Within 1 year | 500 | 18 | — | 518 | 1.80 | |||||||||||||
1 to 5 years | 100,000 | 1,929 | — | 101,929 | 1.90 | |||||||||||||
5 to 10 years | — | — | — | — | — | |||||||||||||
Corporate bonds due | ||||||||||||||||||
Within 1 year | 39,702 | 283 | — | 39,985 | 0.68 | |||||||||||||
1 to 5 years | 303,094 | 1,414 | — | 304,508 | 0.81 | |||||||||||||
5 to 10 years | 133,306 | 1,814 | (1,647 | ) | 133,473 | 1.54 | ||||||||||||
Over 10 years | 50,000 | 750 | — | 50,750 | 3.00 | |||||||||||||
Municipal bonds due | ||||||||||||||||||
1 to 5 years | 2,278 | — | (1 | ) | 2,277 | 1.23 | ||||||||||||
5 to 10 years | 1,295 | — | (14 | ) | 1,281 | 2.05 | ||||||||||||
Over 10 years | 20,387 | 3,330 | — | 23,717 | 6.45 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,316,686 | 14,988 | (2,822 | ) | 1,328,852 | 2.58 | ||||||||||||
Other Commercial MBS | 107,512 | 151 | (51 | ) | 107,612 | 1.48 | ||||||||||||
2,603,097 | 27,339 | (6,062 | ) | 2,624,374 | 2.00 | |||||||||||||
Held-to-maturity securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,586,514 | 6,193 | (38,991 | ) | 1,553,716 | 3.16 | ||||||||||||
$ | 4,189,611 | $ | 33,532 | $ | (45,053 | ) | $ | 4,178,090 | 2.43 | % |
September 30, 2014 | ||||||||||||||||||
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 | $ | 171,154 | $ | 2,585 | $ | (748 | ) | $ | 172,991 | 1.26 | % | |||||||
5 to 10 years | 203,317 | 300 | (102 | ) | 203,515 | 1.45 | ||||||||||||
Over 10 years | 354,828 | 1,028 | (419 | ) | 355,437 | 1.25 | ||||||||||||
Equity Securities | ||||||||||||||||||
1 to 5 years | 100,500 | 887 | — | 101,387 | 1.90 | |||||||||||||
Corporate bonds due | ||||||||||||||||||
Within 1 year | 15,000 | 75 | — | 15,075 | 1.00 | |||||||||||||
1 to 5 years | 302,540 | 2,372 | — | 304,912 | 0.71 | |||||||||||||
5 to 10 years | 138,201 | 1,789 | (970 | ) | 139,020 | 1.43 | ||||||||||||
Over 10 years | 50,000 | — | — | 50,000 | 3.00 | |||||||||||||
Municipal bonds due | ||||||||||||||||||
Over 10 years | 20,402 | 3,279 | — | 23,681 | 6.45 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,561,639 | 24,893 | (2,024 | ) | 1,584,508 | 2.57 | ||||||||||||
Other Commercial MBS | 98,851 | 65 | — | 98,916 | 1.49 | |||||||||||||
3,016,432 | 37,273 | (4,263 | ) | 3,049,442 | 1.99 | |||||||||||||
Held-to-maturity securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,548,265 | 4,855 | (53,902 | ) | 1,499,218 | 3.13 | ||||||||||||
$ | 4,564,697 | $ | 42,128 | $ | (58,165 | ) | $ | 4,548,660 | 2.38 | % |
June 30, 2015 | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Corporate bonds due | $ | (1,022 | ) | $ | 23,978 | $ | (625 | ) | $ | 34,375 | $ | (1,647 | ) | $ | 58,353 | ||||||||
Municipal bonds due | (15 | ) | 3,558 | — | — | (15 | ) | 3,558 | |||||||||||||||
U.S. government and agency securities due | (558 | ) | 140,285 | (969 | ) | 142,318 | (1,527 | ) | 282,603 | ||||||||||||||
Agency pass-through certificates | (1,919 | ) | 454,980 | (39,945 | ) | 1,360,218 | (41,864 | ) | 1,815,198 | ||||||||||||||
$ | (3,514 | ) | $ | 622,801 | $ | (41,539 | ) | $ | 1,536,911 | $ | (45,053 | ) | $ | 2,159,712 |
September 30, 2014 | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Corporate bonds due | $ | (125 | ) | $ | 24,875 | $ | (845 | ) | $ | 24,155 | $ | (970 | ) | $ | 49,030 | ||||||||
U.S. government and agency securities due | (472 | ) | 316,578 | (797 | ) | 109,354 | (1,269 | ) | 425,932 | ||||||||||||||
Agency pass-through certificates | (215 | ) | 19,212 | (55,711 | ) | 1,509,209 | (55,926 | ) | 1,528,421 | ||||||||||||||
$ | (812 | ) | $ | 360,665 | $ | (57,353 | ) | $ | 1,642,718 | $ | (58,165 | ) | $ | 2,003,383 |
June 30, 2015 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Net Carrying Amount of Loans | Accretable Yield | Net Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 64,534 | $ | 78,055 | $ | 10,259 | $ | 98,422 | |||||||
Transfer to non-covered | (23,167 | ) | (15,866 | ) | (1,482 | ) | (33,649 | ) | |||||||
Reclassification from nonaccretable balance, net | 6,307 | — | — | — | |||||||||||
Accretion | (11,577 | ) | 11,577 | (4,358 | ) | 4,358 | |||||||||
Transfers to REO | — | (1,893 | ) | — | — | ||||||||||
Payments received, net | — | (19,845 | ) | — | (43,848 | ) | |||||||||
Balance at end of period | $ | 36,097 | $ | 52,028 | $ | 4,419 | $ | 25,283 |
September 30, 2014 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Net 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 | |||||||
Reclassification from nonaccretable balance, net | 10,186 | (2,069 | ) | — | — | ||||||||||
Accretion | (23,929 | ) | 23,929 | (7,004 | ) | 7,004 | |||||||||
Transfers to REO | — | (8,943 | ) | — | — | ||||||||||
Payments received, net | — | (72,953 | ) | — | (66,438 | ) | |||||||||
Balance at end of period | $ | 64,534 | $ | 78,055 | $ | 10,259 | $ | 98,422 |
June 30, 2015 | September 30, 2014 | ||||||
(In thousands) | |||||||
Balance at beginning of fiscal year 2015 and 2014 | $ | 36,860 | $ | 64,615 | |||
Additions and deletions (1) | (1,795 | ) | 1,795 | ||||
Payments made (received) | 714 | (2,502 | ) | ||||
Amortization | (17,418 | ) | (27,850 | ) | |||
Accretion | 422 | 802 | |||||
Balance at end of period | $ | 18,783 | $ | 36,860 | |||
(1) reclassification of ALLL allowance due to changes in cash flows |
June 30, 2015 | Internally Assigned Grade | Total Net Loans | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Acquired non-impaired loans: | |||||||||||||||||||||||
Single-family residential | $ | 15,300 | $ | — | $ | 593 | $ | — | $ | — | $ | 15,893 | |||||||||||
Commercial & industrial | — | — | 28 | — | — | 28 | |||||||||||||||||
HELOC | 9,214 | — | — | — | — | 9,214 | |||||||||||||||||
$ | 24,514 | $ | — | $ | 621 | $ | — | $ | — | $ | 25,135 | ||||||||||||
Total grade as a % of total net loans | 97.5 | % | — | % | 2.5 | % | — | % | — | % | |||||||||||||
Acquired credit-impaired loans: | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | $ | 151 | $ | — | $ | 1,613 | $ | — | $ | — | $ | 1,764 | |||||||||||
Pool 2 - Single-family residential | 14,375 | — | 331 | — | — | 14,706 | |||||||||||||||||
Pool 3 - Multi-family | 48 | — | 377 | — | — | 425 | |||||||||||||||||
Pool 4 - HELOC & other consumer | 2,611 | — | — | — | — | 2,611 | |||||||||||||||||
Pool 5 - Commercial real estate | 23,805 | — | 11,048 | — | — | 34,853 | |||||||||||||||||
Pool 6 - Commercial & industrial | 394 | — | 1,276 | — | — | 1,670 | |||||||||||||||||
$ | 41,384 | $ | — | $ | 14,645 | $ | — | $ | — | 56,029 | |||||||||||||
Total covered loans | 81,164 | ||||||||||||||||||||||
Discount | (3,853 | ) | |||||||||||||||||||||
Allowance | — | ||||||||||||||||||||||
Covered loans, net | $ | 77,311 |
September 30, 2014 | Internally Assigned Grade | Total Net Loans | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Acquired non-impaired loans: | |||||||||||||||||||||||
Single-family residential | $ | 21,311 | $ | — | $ | 1,756 | $ | — | $ | — | $ | 23,067 | |||||||||||
Land - acquisition & development | 972 | — | 392 | — | — | 1,364 | |||||||||||||||||
Land - consumer lot loans | 73 | — | — | — | — | 73 | |||||||||||||||||
Multi-family | 6,598 | — | — | — | — | 6,598 | |||||||||||||||||
Commercial real estate | 26,940 | 115 | 24,281 | — | — | 51,336 | |||||||||||||||||
Commercial & industrial | 2,801 | — | 2,691 | — | — | 5,492 | |||||||||||||||||
HELOC | 11,777 | — | — | — | — | 11,777 | |||||||||||||||||
Consumer | 454 | — | — | — | — | 454 | |||||||||||||||||
$ | 70,926 | $ | 115 | $ | 29,120 | $ | — | $ | — | $ | 100,161 | ||||||||||||
Total grade as a % of total net loans | 70.8 | % | 0.1 | % | 29.1 | % | — | % | — | % | |||||||||||||
Acquired credit-impaired loans: | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | $ | 8,349 | $ | — | $ | 11,912 | $ | — | $ | — | $ | 20,261 | |||||||||||
Pool 2 - Single-family residential | 15,585 | — | 379 | — | — | 15,964 | |||||||||||||||||
Pool 3 - Multi-family | 52 | — | 471 | — | — | 523 | |||||||||||||||||
Pool 4 - HELOC & other consumer | 2,804 | — | 1,173 | — | — | 3,977 | |||||||||||||||||
Pool 5 - Commercial real estate | 33,909 | 700 | 29,782 | — | — | 64,391 | |||||||||||||||||
Pool 6 - Commercial & industrial | 3,509 | — | 3,892 | 525 | — | 7,926 | |||||||||||||||||
$ | 64,208 | $ | 700 | $ | 47,609 | $ | 525 | $ | — | 113,042 | |||||||||||||
Total covered loans | 213,203 | ||||||||||||||||||||||
Discount | (34,483 | ) | |||||||||||||||||||||
Allowance | (2,244 | ) | |||||||||||||||||||||
Covered loans, net | $ | 176,476 |
June 30, 2015 | Amount of Loans Net of LIP & Chg.-Offs | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loans | Current | 30 | 60 | 90 | Total Past Due | |||||||||||||||||||||
Single-family residential | $ | 15,893 | $ | 15,300 | $ | — | $ | 214 | $ | 379 | $ | 593 | 3.73 | % | ||||||||||||
Commercial & industrial | 28 | 28 | — | — | — | — | — | |||||||||||||||||||
HELOC | 9,214 | 9,204 | 10 | — | — | 10 | 0.11 | |||||||||||||||||||
$ | 25,135 | $ | 24,532 | $ | 10 | $ | 214 | $ | 379 | $ | 603 | 2.40 | % |
September 30, 2014 | Amount of Loans Net of LIP & Chg.-Offs | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loans | Current | 30 | 60 | 90 | Total Past Due | |||||||||||||||||||||
Single-family residential | $ | 23,067 | $ | 22,391 | $ | 230 | $ | 40 | $ | 406 | $ | 676 | 2.93 | % | ||||||||||||
Land - acquisition & development | 1,364 | 1,328 | — | — | 36 | 36 | 2.64 | |||||||||||||||||||
Land - consumer lot loans | 73 | 73 | — | — | — | — | — | |||||||||||||||||||
Multi-family | 6,598 | 5,502 | — | — | 1,096 | 1,096 | 16.61 | |||||||||||||||||||
Commercial real estate | 51,336 | 51,336 | — | — | — | — | — | |||||||||||||||||||
Commercial & industrial | 5,492 | 5,492 | — | — | — | — | — | |||||||||||||||||||
HELOC | 11,777 | 11,777 | — | — | — | — | — | |||||||||||||||||||
Consumer | 454 | 443 | 11 | — | — | 11 | 2.42 | |||||||||||||||||||
$ | 100,161 | $ | 98,342 | $ | 241 | $ | 40 | $ | 1,538 | $ | 1,819 | 1.82 | % |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
June 30, 2015 | September 30, 2014 | June 30, 2015 | September 30, 2014 | |||||||||||||||||||||
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 | $ | 5,429 | Other assets | $ | 2,879 | Other liabilities | $ | 5,429 | Other liabilities | $ | 2,879 | ||||||||||||
Long term borrowing hedge | Other assets | — | Other assets | — | Other liabilities | 3,914 | Other liabilities | 268 |
Quarter Ended June 30, 2015 | Quarter Ended June 30, 2014 | ||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Loans and covered loans | $ | 8,628,345 | $ | 107,250 | 4.99 | % | $ | 8,040,819 | $ | 108,089 | 5.39 | % | |||||||||
Mortgaged-backed securities | 3,024,821 | 16,995 | 2.25 | 3,341,969 | 20,507 | 2.46 | |||||||||||||||
Cash & Investments | 1,543,556 | 4,625 | 1.20 | 2,011,154 | 6,003 | 1.20 | |||||||||||||||
FHLB & FRB stock | 134,692 | 430 | 1.28 | 166,522 | 412 | 0.99 | |||||||||||||||
Total interest-earning assets | 13,331,414 | 129,300 | 3.89 | % | 13,560,464 | 135,011 | 3.99 | % | |||||||||||||
Other assets | 1,124,750 | 988,917 | |||||||||||||||||||
Total assets | $ | 14,456,164 | $ | 14,549,381 | |||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||
Customer accounts | $ | 10,635,364 | $ | 12,485 | 0.47 | % | $ | 10,608,318 | $ | 14,239 | 0.54 | % | |||||||||
FHLB advances | 1,820,110 | 16,250 | 3.58 | 1,930,000 | 17,493 | 3.64 | |||||||||||||||
Other borrowings | — | — | — | — | — | — | |||||||||||||||
Total interest-bearing liabilities | 12,455,474 | 28,735 | 0.93 | % | 12,538,318 | 31,732 | 1.02 | % | |||||||||||||
Other liabilities | 46,980 | 26,278 | |||||||||||||||||||
Total liabilities | 12,502,454 | 12,564,596 | |||||||||||||||||||
Stockholder's equity | 1,953,710 | 1,984,785 | |||||||||||||||||||
Total liabilities and equity | $ | 14,456,164 | $ | 14,549,381 | |||||||||||||||||
Net interest income | $ | 100,565 | $ | 103,279 | |||||||||||||||||
Net interest margin | 3.02 | % | 3.05 | % |
Actual | Minimum Capital Adequacy Guidelines | Minimum Well-Capitalized Guidelines | ||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||||||
(In thousands) | ||||||||||||||||||||
June 30, 2015 | ||||||||||||||||||||
Common Equity Tier I risk-based capital ratio: | ||||||||||||||||||||
The Company | $ | 1,651,546 | 19.60 | % | $ | 638,737 | 4.50 | % | $ | 922,620 | 6.50 | % | ||||||||
The Bank | 1,630,586 | 19.35 | % | 638,683 | 4.50 | % | 922,542 | 6.50 | % | |||||||||||
Tier I risk-based capital ratio: | ||||||||||||||||||||
The Company | 1,651,546 | 19.60 | % | 505,489 | 6.00 | % | 673,985 | 8.00 | % | |||||||||||
The Bank | 1,630,586 | 19.35 | % | 505,547 | 6.00 | % | 674,063 | 8.00 | % | |||||||||||
Total risk-based capital ratio: | ||||||||||||||||||||
The Company | 1,757,778 | 20.86 | % | 673,985 | 8.00 | % | 842,482 | 10.00 | % | |||||||||||
The Bank | 1,736,830 | 20.61 | % | 674,063 | 8.00 | % | 842,579 | 10.00 | % | |||||||||||
Tier 1 Leverage ratio: | ||||||||||||||||||||
The Company | 1,651,546 | 11.64 | % | 567,766 | 4.00 | % | 709708 | 5.00 | % | |||||||||||
The Bank | 1,630,586 | 11.49 | % | 567,718 | 4.00 | % | 709,648 | 5.00 | % | |||||||||||
September 30, 2014 | ||||||||||||||||||||
Tier I risk-based capital ratio: | ||||||||||||||||||||
The Company | 1,648,199 | 22.71 | % | 290,335 | 4.00 | % | NA | NA | ||||||||||||
The Bank | 1,658,704 | 22.85 | % | 290,386 | 4.00 | % | 435,579 | 6.00 | % | |||||||||||
Total risk-based capital ratio: | ||||||||||||||||||||
The Company | 1,739,658 | 23.97 | % | 580,671 | 8.00 | % | NA | NA | ||||||||||||
The Bank | 1,750,179 | 24.11 | % | 580,772 | 8.00 | % | 725,965 | 10.00 | % | |||||||||||
Tier 1 Leverage ratio: | ||||||||||||||||||||
The Company | 1,648,199 | 11.39 | % | 578,804 | 4.00 | % | NA | N/A | ||||||||||||
The Bank | 1,658,704 | 11.46 | % | 578,816 | 4.00 | % | 723,520 | 5.00 | % |
Loan Portfolio by Category * | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||||
Non-Acquired loans | (In thousands) | |||||||||||||||||||
Single-family residential | $ | 5,549,746 | 60.1 | % | $ | 5,535,104 | 61.4 | % | $ | 5,608,208 | 63.9 | % | ||||||||
Construction - speculative | 181,668 | 2.0 | 163,657 | 1.8 | 152,450 | 1.7 | ||||||||||||||
Construction - custom | 375,425 | 4.1 | 370,693 | 4.1 | 377,561 | 4.3 | ||||||||||||||
Land - acquisition & development | 87,382 | 0.9 | 105,058 | 1.2 | 84,000 | 1.0 | ||||||||||||||
Land - consumer lot loans | 102,495 | 1.1 | 102,082 | 1.2 | 104,492 | 1.2 | ||||||||||||||
Multi-family | 1,089,682 | 11.8 | 1,010,003 | 11.2 | 977,752 | 11.2 | ||||||||||||||
Commercial real estate | 808,539 | 8.7 | 741,137 | 8.2 | 597,436 | 6.8 | ||||||||||||||
Commercial & industrial | 451,478 | 4.9 | 408,358 | 4.6 | 391,327 | 4.5 | ||||||||||||||
HELOC | 122,870 | 1.3 | 120,901 | 1.3 | 118,047 | 1.3 | ||||||||||||||
Consumer | 205,932 | 2.2 | 218,680 | 2.5 | 126,929 | 1.4 | ||||||||||||||
Total non-acquired loans | 8,975,217 | 97.1 | 8,775,673 | 97.5 | 8,538,202 | 97.3 | ||||||||||||||
Non-impaired acquired loans | ||||||||||||||||||||
Single-family residential | 12,895 | 0.1 | 10,977 | 0.1 | 11,163 | 0.1 | ||||||||||||||
Land - acquisition & development | 1,028 | — | 728 | — | 872 | — | ||||||||||||||
Land - consumer lot loans | 2,472 | — | 2,476 | — | 2,496 | — | ||||||||||||||
Multi-family | 3,692 | — | 2,912 | — | 2,954 | — | ||||||||||||||
Commercial real estate | 102,089 | 1.1 | 87,313 | 1.0 | 92,133 | 1.0 | ||||||||||||||
Commercial & industrial | 57,614 | 0.6 | 55,659 | 0.6 | 58,836 | 0.7 | ||||||||||||||
HELOC | 6,414 | 0.1 | 6,700 | 0.1 | 7,749 | 0.1 | ||||||||||||||
Consumer | 2,916 | — | 2,794 | — | 4,369 | — | ||||||||||||||
Total non-impaired acquired loans | 189,120 | 1.9 | 169,559 | 1.8 | 180,572 | 1.9 | ||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||
Single-family residential | 6,288 | 0.1 | 322 | — | 323 | — | ||||||||||||||
Land - acquisition & development | 1,842 | — | 1,395 | — | 1,533 | — | ||||||||||||||
Land - consumer lot loans | 496 | — | — | — | — | — | ||||||||||||||
Commercial real estate | 71,196 | 0.8 | 56,727 | 0.6 | 60,287 | 0.7 | ||||||||||||||
Commercial & industrial | 3,881 | — | 2,190 | — | 3,255 | — | ||||||||||||||
HELOC | 8,553 | 0.1 | 8,838 | 0.1 | 9,202 | 0.1 | ||||||||||||||
Consumer | 108 | — | 51 | — | 54 | — | ||||||||||||||
Total credit-impaired acquired loans | 92,364 | 1.0 | 69,523 | 0.7 | 74,654 | 0.8 | ||||||||||||||
Total Loans | ||||||||||||||||||||
Single-family residential | 5,568,929 | 60.3 | 5,546,403 | 61.5 | 5,619,694 | 64.0 | ||||||||||||||
Construction - speculative | 181,668 | 2.0 | 163,657 | 1.8 | 152,450 | 1.7 |
Construction - custom | 375,425 | 4.1 | 370,693 | 4.1 | 377,561 | 4.3 | ||||||||||||||
Land - acquisition & development | 90,252 | 0.9 | 107,181 | 1.2 | 86,405 | 1.0 | ||||||||||||||
Land - consumer lot loans | 105,463 | 1.1 | 104,558 | 1.2 | 106,988 | 1.2 | ||||||||||||||
Multi-family | 1,093,374 | 11.8 | 1,012,915 | 11.2 | 980,706 | 11.2 | ||||||||||||||
Commercial real estate | 981,824 | 10.6 | 885,177 | 9.8 | 749,856 | 8.5 | ||||||||||||||
Commercial & industrial | 512,973 | 5.5 | 466,207 | 5.2 | 453,418 | 5.2 | ||||||||||||||
HELOC | 137,837 | 1.5 | 136,439 | 1.5 | 134,998 | 1.5 | ||||||||||||||
Consumer | 208,956 | 2.2 | 221,525 | 2.5 | 131,352 | 1.4 | ||||||||||||||
Total Loans | 9,256,701 | 100 | % | 9,014,755 | 100 | % | 8,793,428 | 100 | % | |||||||||||
Less: | ||||||||||||||||||||
Allowance for probable losses | 105,611 | 108,323 | 108,700 | |||||||||||||||||
Loans in process | 438,941 | 426,836 | 370,655 | |||||||||||||||||
Discount on acquired loans | 28,399 | 20,845 | 22,535 | |||||||||||||||||
Deferred net origination fees | 38,141 | 37,763 | 37,621 | |||||||||||||||||
611,092 | 593,767 | 539,511 | ||||||||||||||||||
$ | 8,645,609 | $ | 8,420,988 | $ | 8,253,917 |
June 30, 2015 | September 30, 2014 | ||||||||||||
(In thousands) | |||||||||||||
Restructured loans: | |||||||||||||
Single-family residential | $ | 275,428 | 85.7 | % | $ | 323,732 | 86.3 | % | |||||
Construction - speculative | 6,370 | 2.0 | 7,360 | 2.0 | |||||||||
Land - acquisition & development | 3,536 | 1.1 | 4,737 | 1.3 | |||||||||
Land - consumer lot loans | 11,539 | 3.6 | 13,002 | 3.5 | |||||||||
Multi - family | 3,843 | 1.2 | 5,243 | 1.4 | |||||||||
Commercial real estate | 19,251 | 6.0 | 19,140 | 5.1 | |||||||||
HELOC | 1,394 | 0.4 | 1,486 | 0.4 | |||||||||
Consumer | 120 | — | 43 | — | |||||||||
Total restructured loans (1) | $ | 321,481 | 100 | % | $ | 374,743 | 100 | % | |||||
Non-accrual loans: | |||||||||||||
Single-family residential | $ | 56,638 | 86.7 | % | $ | 74,067 | 84.8 | % | |||||
Construction - speculative | 762 | 1.2 | 1,477 | 1.7 | |||||||||
Construction - custom | 355 | 0.5 | — | — | |||||||||
Land - consumer lot loans | 1,308 | 2.0 | 2,637 | 3.0 | |||||||||
Multi-family | 786 | 1.2 | 1,742 | 2.0 | |||||||||
Commercial real estate | 2,852 | 4.4 | 5,106 | 5.8 | |||||||||
Commercial & industrial | 1,205 | 1.8 | 7 | — | |||||||||
HELOC | 889 | 1.4 | 795 | 0.9 | |||||||||
Consumer | 513 | 0.8 | 789 | 0.9 | |||||||||
Total non-accrual loans (2) | 65,308 | 100 | % | 87,431 | 100 | % | |||||||
Total REO (3) | 59,239 | 55,072 | |||||||||||
Total REHI (3) | 4,336 | 4,808 | |||||||||||
Total non-performing assets | $ | 128,883 | $ | 147,311 | |||||||||
Total non-performing assets and performing restructured loans as a percentage of total assets | 3.04 | % | 3.37 | % | |||||||||
(1) Restructured loans were as follows: | |||||||||||||
Performing | $ | 308,355 | 95.9 | % | $ | 350,653 | 93.6 | % | |||||
Non-performing (included in non-accrual loans above) | 13,126 | 4.1 | 24,090 | 6.4 | |||||||||
$ | 321,481 | 100 | % | $ | 374,743 | 100 | % |
(2) | The Company recognized interest income on cash payments received from the borrower on nonaccrual loans of approximately $5,272,000 in the nine months ended June 30, 2015. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $2,421,000 for the nine months ended June 30, 2015. The recognized interest income may include more than nine months of interest for some of the loans that were brought current. In addition to the nonaccrual loans reflected in the above table, the Company had $94,346,000 of loans that were less than 90 days delinquent at June 30, 2015 but which it had classified as substandard for one or more reasons. If these loans were deemed non-performing, the Company’s ratio of total NPAs and performing restructured loans as a percent of total assets would have increased to 3.04% at June 30, 2015. |
(3) | Total REO and REHI includes real estate held for sale acquired in settlement of loans or acquired from purchased institutions in settlement of loans. Includes net exposure to covered REO of $3,748,000. |
June 30, 2015 | September 30, 2014 | ||||||||||||||||||
Amount | Loans to Total Loans (1) | Coverage Ratio (2) | Amount | Loans to Total Loans (1) | Coverage Ratio (2) | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Single-family residential | $ | 52,004 | 64.8 | % | 0.9 | % | $ | 62,763 | 65.6 | % | 1.1 | % | |||||||
Construction - speculative | 5,933 | 1.4 | 5.0 | 6,742 | 1.7 | 5.2 | |||||||||||||
Construction - custom | 985 | 2.4 | 0.5 | 1,695 | 4.6 | 0.5 | |||||||||||||
Land - acquisition & development | 5,772 | 0.8 | 8.1 | 5,592 | 0.9 | 7.2 | |||||||||||||
Land - consumer lot loans | 2,999 | 1.2 | 2.9 | 3,077 | 1.3 | 2.8 | |||||||||||||
Multi-family | 5,035 | 11.8 | 0.5 | 4,248 | 10.9 | 0.5 | |||||||||||||
Commercial real estate | 7,268 | 8.1 | 1.0 | 7,548 | 7.0 | 1.3 | |||||||||||||
Commercial & industrial | 21,662 | 5.7 | 4.5 | 16,527 | 5.0 | 4.6 | |||||||||||||
HELOC | 864 | 1.4 | 0.7 | 928 | 1.4 | 0.9 | |||||||||||||
Consumer | 3,089 | 2.4 | 1.5 | 3,227 | 1.6 | 2.4 | |||||||||||||
$ | 105,611 | 100 | % | $ | 112,347 | 100 | % |
(1) | Represents the total amount of the loan category as a % of total gross loans, excluding non-acquired and non-covered loans outstanding not subject to the allowance for loan loss. |
(2) | Represents the allocated allowance of the loan category as a % of total gross loans, excluding non-acquired and non-covered loans outstanding not subject to the allowance for loan loss, for the same loan category. |
June 30, 2015 | September 30, 2014 | ||||||||||||||||||
Deposit Account Balance | As a % of Total Deposits | Wtd. Avg. Rate | Deposit Account Balance | As a % of Total Deposits | Wtd. Avg. Rate | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Non-interest checking | $ | 933,645 | 8.8 | % | — | % | $ | 883,601 | 8.2 | % | — | % | |||||||
Interest checking | 1,556,136 | 14.7 | 0.06 | % | 1,447,569 | 13.5 | 0.09 | % | |||||||||||
Savings (passbook/stmt) | 671,426 | 6.4 | 0.10 | % | 622,546 | 5.8 | 0.10 | % | |||||||||||
Money Market | 2,535,329 | 24.0 | 0.14 | % | 2,536,971 | 23.7 | 0.18 | % | |||||||||||
CD’s | 4,881,849 | 46.1 | 0.93 | % | 5,226,241 | 48.8 | 0.92 | % | |||||||||||
Total | $ | 10,578,385 | 100 | % | 0.48 | % | $ | 10,716,928 | 100 | % | 0.51 | % |
Comparison of Quarters Ended 6/30/15 and 6/30/14 | Comparison of Nine Months Ended 6/30/15 and 6/30/14 | ||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans and covered loans | $ | 7,510 | $ | (8,349 | ) | $ | (839 | ) | $ | 21,831 | $ | (18,664 | ) | $ | 3,167 | ||||||||
Mortgaged-backed securities | (1,848 | ) | (1,664 | ) | (3,512 | ) | (3,041 | ) | (3,593 | ) | (6,634 | ) | |||||||||||
Investments (1) | (1,463 | ) | 103 | (1,360 | ) | (195 | ) | 256 | 61 | ||||||||||||||
All interest-earning assets | 4,199 | (9,910 | ) | (5,711 | ) | 18,595 | (22,001 | ) | (3,406 | ) | |||||||||||||
Interest expense: | |||||||||||||||||||||||
Customer accounts | 38 | (1,791 | ) | (1,753 | ) | 2,226 | (8,239 | ) | (6,013 | ) | |||||||||||||
FHLB advances and other borrowings | (960 | ) | (284 | ) | (1,244 | ) | (2,452 | ) | 657 | (1,795 | ) | ||||||||||||
All interest-bearing liabilities | (922 | ) | (2,075 | ) | (2,997 | ) | (226 | ) | (7,582 | ) | (7,808 | ) | |||||||||||
Change in net interest income | $ | 5,121 | $ | (7,835 | ) | $ | (2,714 | ) | $ | 18,821 | $ | (14,419 | ) | $ | 4,402 |
(1) | Includes interest on cash equivalents and dividends on FHLB & FRB stock |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Net Gain on Sale | $ | 2,970 | $ | 2,466 | $ | 8,446 | $ | 7,161 | |||||||
REO Net Writedowns | (57 | ) | (2,953 | ) | (1,489 | ) | (6,069 | ) | |||||||
REO Operating Expenses | 275 | (1,569 | ) | (1,982 | ) | (4,546 | ) | ||||||||
Gain (loss) on real estate acquired through foreclosure, net | $ | 3,188 | $ | (2,056 | ) | $ | 4,975 | $ | (3,454 | ) |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (1) | Maximum Number of Shares That May Yet Be Purchased Under the Plan at the End of the Period | ||||||||
April 1, 2015 to April 30, 2015 | 278,327 | $ | 22.08 | 278,327 | 6,147,942 | |||||||
May 1, 2015 to May 31, 2015 | 787,647 | 21.87 | 787,647 | 5,360,295 | ||||||||
June 1, 2015 to June 30, 2015 | 105,688 | 22.00 | 105,688 | 5,254,607 | ||||||||
Total | 1,171,662 | $ | 21.93 | 1,171,662 | 5,254,607 |
(1) | The Company's only stock repurchase program was publicly announced by its Board of Directors on February 3, 1995 and has no expiration date. Under this ongoing program, a total of 46,956,264 shares have been authorized for repurchase. This includes the authorization of an additional 5 million shares that may be repurchased under Washington Federal's share repurchase program that was announced in May 2015. |
(a) | Exhibits | |||
31.1 | Section 302 Certification by the Chief Executive Officer | |||
31.2 | Section 302 Certification by the Chief Financial Officer | |||
32 | Section 906 Certification by the Chief Executive Officer and the Chief Financial Officer | |||
101 | Financial Statements from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 formatted in XBRL |
August 7, 2015 | /S/ ROY M. WHITEHEAD |
ROY M. WHITEHEAD Chairman, President and Chief Executive Officer | |
August 7, 2015 | /S/ DIANE L. KELLEHER |
DIANE L. KELLEHER Senior Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 7, 2015 | /s/ Roy M. Whitehead | |
ROY M. WHITEHEAD Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 7, 2015 | /s/ Diane L. Kelleher | |
DIANE L. KELLEHER | |||
Senior Vice President and Chief Financial Officer |
(a) | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Washington Federal, Inc. | |
(Company) | |
/s/ Roy M. Whitehead | |
ROY M. WHITEHEAD | |
Chairman, President and Chief Executive Officer | |
/s/ Diane L. Kelleher | |
DIANE L. KELLEHER | |
Senior Vice President and Chief Financial Officer |
Covered Assets - FDIC Indemnification Asset (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2015 |
Sep. 30, 2014 |
|
FDIC Indemnification Asset Movement Analysis [Roll Forward] | ||
Balance at beginning of period | $ 36,860 | $ 64,615 |
Additions and deletions | (1,795) | 1,795 |
Payments made (received) | 714 | (2,502) |
Amortization | (17,418) | (27,850) |
Accretion | 422 | 802 |
Balance at end of period | $ 18,783 | $ 36,860 |